In This Article:
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Revenue Growth: 6% increase on both a reported and organic constant currency basis.
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Adjusted EBITDA: Declined slightly to $88 million, including currency headwinds of just under $1 million.
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Gross Margins: Flat year over year.
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Advertising Spend: Increased by 12% year over year.
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Vista Organic Constant Currency Revenue Growth: 8% increase.
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Free Cash Flow: Lower year over year due to higher outflows from changes in working capital and increased cash interest payments.
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Cash Interest Payments: Increased by $10.6 million due to senior notes refinancing.
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Share Repurchases: $168 million allocated over the last three quarters, repurchasing about 8% of shares.
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Net Leverage Target: Aim to end fiscal year with net leverage at or below approximately 2.75 times current 12-month EBITDA.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cimpress PLC (NASDAQ:CMPR) reported a 6% growth in consolidated revenue on both a reported and organic constant currency basis.
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The company is continually improving customer experience through enhancements in product development and service processes.
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Cimpress PLC (NASDAQ:CMPR) is driving efficiency and improving quality across its production facilities, which is reducing costs and improving delivery speed.
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The company is experiencing strong growth in new product categories such as flexible and corrugated packaging, with growth rates over 25% annually.
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Cimpress PLC (NASDAQ:CMPR) has successfully strengthened its balance sheet by reducing leverage and extending debt maturities, while also repurchasing shares at attractive valuations.
Negative Points
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Adjusted EBITDA declined slightly year over year in Q1, impacted by increased operating expenses.
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Despite revenue growth, profitability did not increase due to flat gross margins and higher advertising spend.
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Free cash flow was lower year over year, driven by higher outflows from changes in working capital and increased cash interest payments.
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The company faces a modest ongoing revenue headwind in its mature product categories, such as business cards and consumer products.
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Currency fluctuations resulted in realized losses on currency hedges, impacting financial results.
Q & A Highlights
Q: What makes you confident enough to make such high levels of growth investments and share repurchases? A: Robert Keane, CEO, explained that the confidence stems from Cimpress's strong performance in customer value improvements, competitive advantage, and financial results. The company plans to continue growth investments similar to previous years, as these investments underpin customer value and competitive advantage. Share repurchases are considered attractive due to the current share price relative to cash flow per share, even after growth investments.