Cimpress Reports Q4, 2015 Year-Over-Year Growth

Cimpress N.V. announced financial results for the three month period ended June 30, 2015, the fourth quarter of its 2015 fiscal year.

“Our fourth quarter and full year fiscal 2015 performance reflects the great strides made in service of the strategy we communicated at our August 2014 investor meeting,” said Robert Keane, president and CEO.

“In our Vistaprint business unit, the constant currency revenue growth doubled in fiscal 2015 compared to fiscal 2014, reflecting net positive returns from the many improvements we have made to reposition the Vistaprint customer value proposition toward ‘higher expectations’ customers, even as many of those investments continue to create short-term revenue headwinds,” Keane added.

“Over the past year, we allocated capital to the acquisition of several high-quality businesses that we believe will bring important additional capabilities to our future mass customization platform as well as brands with which we can go to market via distinct and differentiated customer value propositions. In Japan and India, we continued to build foundations for growth, and we entered the market in Brazil via an equity investment of just under 50%. Across our company we broadened product offerings in categories such as signage, apparel and soft goods, flyers and promotional products.”

“Our fourth quarter results were in line with expectations,” said CFO Ernst Teunissen. “Our GAAP net income results continue to be impacted by non-operational, non-cash currency items, which caused GAAP EPS to be at the lower end of our previous guidance range.”

Revenue for the fourth quarter of fiscal year 2015 was $380.5 million, a 13% increase compared to revenue of $338.2 million reported in the same quarter a year ago. The year-over-year strengthening of the U.S. dollar has negatively impacted the U.S. dollar value of revenues generated from countries other than the U.S. For the full year, total consolidated revenue grew 18% year over year and 23% in constant currencies.

Gross margin (revenue minus the cost of revenue as a% of total revenue) in the fourth quarter was 58.9%, down from 60.5% in the same quarter a year ago. For the full fiscal year, gross margin was 61.9% compared to 64.5% in fiscal year 2014.

Operating income in the fourth quarter was $15.2 million, or 4.0% of revenue, a decrease in both absolute dollars and as a% of revenue compared to $19.7 million, or 5.8% of revenue, in the same quarter a year ago. For the full fiscal year, operating income was $96.3 million, or 6.4% of revenue, a 12% increase compared to operating income of $85.9 million, or 6.8% of revenue, in the prior fiscal year.

During the fourth quarter, the company generated $36.5 million of cash from operations and $12.7 million in free cash flow. During the full fiscal year, the company generated $228.9 million of cash from operations and $143.5 million in free cash flow.