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Dec 31, 2023
Cimpress Q2 2024 Earnings Report
Achieved strong financial results driven by revenue growth, gross margin expansion, advertising leverage, and reduced operating expenses.
Key Takeaways
Cimpress' Q2 2024 results showed strong revenue growth of 9% and significant improvements in profitability and cash flow, leading to increased expectations for fiscal 2024.
Consolidated revenue grew 9% on a reported basis and 6% on an organic constant-currency basis.
Consolidated operating income increased $74.1 million year over year to $107.7 million.
Adjusted free cash flow increased $96.2 million year over year to $150.0 million.
Liquidity position is strong with cash and marketable securities of $291.4 million.
Cimpress
Cimpress
Cimpress Revenue by Segment
Revenue by Segment
PrintBrothers Revenue
CapyFin.comThe Print Group Revenue
CapyFin.comNational Pen Revenue
CapyFin.comAll Other Businesses Revenue
CapyFin.com Forward Guidance
Cimpress increased its FY2024 operating income guidance from at least $206 million to at least $230 million and increased adjusted EBITDA guidance from at least $425 million to at least $455 million.
Positive Outlook
- Expects consolidated FY2024 reported revenue growth of at least 7%.
- Expects organic constant-currency revenue growth of at least 5%.
- Expects an additional year-over-year benefit of approximately $25 million from March 2023 cost reductions in Q3 FY2024.
- Expects adjusted EBITDA to convert to adjusted free cash flow at approximately 45%, an increase from 40% in prior guidance.
- Board has authorized the repurchase of up to $150 million of Cimpress shares.
Challenges Ahead
- Revenue growth in Upload & Print and BuildASign in the first half of the year has been slower than planned and is expected to continue for the remainder of the fiscal year.
- Continues to expect a negative year-over-year impact from currency on our full-year adjusted EBITDA of about $20 million.
- Expects approximately $8.5 million of negative currency impact in the second half of FY2024.
- Will be lapping stronger adjusted EBITDA performance, particularly in Vista, as compared to the first half of last year.
- Any share repurchases in the remainder of this fiscal year will be done with the expectation of exiting FY2024 with net leverage at or below approximately 3.0x trailing-twelve-month EBITDA.
Revenue & Expenses
Visualization of income flow from segment revenue to net income