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Mar 31, 2023
Cimpress Q3 2023 Earnings Report
Cimpress' Q3 2023 financial results were strong, exceeding guidance with revenue growth and improved profitability.
Key Takeaways
Cimpress' Q3 FY2023 results showcased strong performance with a 13% increase in consolidated revenue and a 16% rise on an organic constant-currency basis. Vista led this acceleration, driven by product mix and platform migration benefits. Improved pricing and stable input costs boosted gross profits. Adjusted EBITDA reached $69.1 million, surpassing expectations, while operating loss decreased year-over-year. Liquidity remained strong at $189.8 million, and net leverage decreased to 4.83.
Consolidated revenue grew 13% as reported and 16% on an organic constant-currency basis.
Adjusted EBITDA increased to $69.1 million, exceeding prior guidance.
Operating loss improved $16.2 million year over year, despite restructuring charges.
Liquidity remained strong at $189.8 million in cash and marketable securities.
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 anticipates continued profitability expansion in Q4 FY2023, driven by recent operating performance, which is expected to be accompanied by strong free cash flow conversion even after restructuring payments. For FY2024, the company expects adjusted EBITDA to convert to adjusted free cash flow at approximately 40%. Furthermore, Cimpress aims to reduce net leverage to below 4.5x by the end of FY2023 and below 3.5x by the end of FY2024.
Positive Outlook
- Profitability expansion in Q4 FY2023
- Seasonally strong free cash flow conversion in Q4 FY2023
- Adjusted EBITDA to convert to adjusted free cash flow at approximately 40% in FY2024
- Net leverage reduction to below 4.5x by the end of FY2023
- Net leverage reduction to below 3.5x by the end of FY2024
Revenue & Expenses
Visualization of income flow from segment revenue to net income