In This Article:
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Q4 Revenue Growth: 6% on both reported and organic constant currency basis.
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Full Year Revenue Growth: 7% on a reported basis, over 5% on an organic constant currency basis.
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Q4 Adjusted EBITDA: $190 million, a $5 million increase year-over-year.
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Full Year Adjusted EBITDA: $469 million, 38% growth year-over-year.
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Adjusted EBITDA Margin: Increased by over 300 basis points to 14.2% in fiscal 2024.
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Adjusted Free Cash Flow: $117 million for Q4, $261 million for the full year.
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Share Repurchase: 1.7 million shares for $157 million during fiscal 2024.
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Net Leverage: Reduced to just under 3.0 times trailing 12-month EBITDA.
Release Date: August 01, 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 strong finish to the fiscal year with Q4 consolidated revenue growth of 6% on both a reported and organic constant currency basis.
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Adjusted EBITDA grew by $5 million year-over-year in Q4, reaching $190 million, despite currency headwinds.
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The company achieved its highest ever adjusted free cash flow for a fiscal year and fourth quarter, with $117 million for Q4 and $261 million for the full year.
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Cimpress PLC (NASDAQ:CMPR) successfully repurchased 1.7 million shares, reducing shares outstanding by 7% while decreasing leverage and increasing liquidity.
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The company maintains a positive multiyear outlook, expecting to grow organic constant currency revenue at mid-single digit rates and adjusted EBITDA slightly faster than revenue.
Negative Points
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National Pen segment experienced a decline in revenue growth due to reduced advertising spend, although profitability improved.
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Currency headwinds negatively impacted adjusted EBITDA by $90 million for the full year and $3 million for Q4.
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Some segments, particularly those serving resellers, faced challenges due to market shifts towards direct-to-customer e-commerce models.
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The company plans to increase capital expenditures, which may impact cash flow, although it is within the context of their deleveraging policy.
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There are concerns about the subjectivity in estimating the attractiveness of organic investments in Vista, with past investments having been value-destroying.
Q & A Highlights
Q: Can you provide an apples-to-apples breakdown of run rate EBITDA growth for Q4 FY24 versus Q4 FY23, considering currency impacts and one-time items? A: Sean Quinn, EVP and CFO, explained that currency negatively impacted EBITDA by over $3 million, and one-time benefits from the previous year did not repeat, totaling about $6 million in differences. Despite these factors, consolidated gross profit grew by $20 million year-over-year, and advertising spend increased by $9 million, primarily due to Vista. The run rate EBITDA growth was higher than the reported $5 million increase when normalizing for these items.