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Jun 30, 2021
Cimpress Q4 2021 Earnings Report
Cimpress' Q4 2021 financial performance reflected a recovery in revenue and strategic investments.
Key Takeaways
Cimpress experienced a 49% increase in reported revenue in Q4, driven by economic recovery and strategic investments, particularly in Vistaprint. GAAP operating income improved, and the company focused on cost savings and strategic positioning for future growth.
Investments in Vistaprint increased, focusing on talent acquisition, performance advertising, and brand building.
Over $30 million in permanent annualized cost reductions were achieved compared to the pre-pandemic cost structure.
A flexible capital structure was implemented, lowering the weighted average cost of debt and extending the maturity profile.
Optimism for sustainable organic growth in FY2022 and beyond due to investments, economic recovery, and improved competitive positioning.
Cimpress
Cimpress
Cimpress Revenue by Segment
Revenue by Segment
Vista Revenue
CapyFin.comPrintBrothers Revenue
CapyFin.comThe Print Group Revenue
CapyFin.comNational Pen Revenue
CapyFin.comAll Other Businesses Revenue
CapyFin.com Forward Guidance
Cimpress anticipates continued volatility in financial results due to the pandemic, but expects sustainable revenue growth as investments gain momentum. Fixed cost reductions are expected to provide ongoing benefits, with increased advertising spend and organic growth investments planned for FY2022.
Positive Outlook
- Improved efficiency of performance spend.
- Full year with payback thresholds at similar levels to those used in the second half of FY2021
- Cash interest costs are expected to decrease approximately $20 million in FY2022 compared to FY2021
- Expect the year-over-year impact of currency in FY2022 to be slightly positive to adjusted EBITDA based on average hedged rates.
- Expect capital expenditures to be slightly higher than where we were just before the pandemic in the range of 3% of consolidated revenue.
Challenges Ahead
- Financial results will continue to experience volatility connected to the extent of pandemic-related restrictions
- Expect net leverage to tick up in Q1 FY2022.
- Expect a modest increase in cash taxes in FY2022 as we did receive refunds in FY2021 that will not repeat.
- Advertising spend as a percentage of revenue is expected to increase.
- Expect to significantly increase organic growth investment in FY2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income