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Jun 30, 2022
Cimpress Q4 2022 Earnings Report
Cimpress Q4 2022 earnings were released, revealing a mix of strong revenue growth offset by increased costs and strategic investments.
Key Takeaways
Cimpress reported a 14% increase in revenue for Q4, driven by strong organic constant-currency revenue growth of 19%. However, the company recorded a GAAP operating loss of $27.2 million due to increased advertising expense, organic investment in Vista, and restructuring expenses. Adjusted EBITDA decreased to $37.8 million.
Consolidated revenue and gross profit reached all-time highs for Q4.
Upload & Print businesses experienced rapid growth with expanding margins.
National Pen delivered healthy annual revenue growth and EBITDA, excluding pandemic-driven face mask sales.
Vista's financial results remain below potential due to elevated strategic investments and cost inflation.
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 expects to delever from current levels by the end of FY2023. They have ample liquidity, no quarterly financial maintenance covenants, and robust currency and interest rate risk management programs.
Positive Outlook
- Accelerate Vista's annual organic constant-currency revenue growth in FY2023 and beyond.
- Drive substantially improved profitability over the next several years.
- Vista's clear focus is on leveraging the very significant investments that we have made over recent years and overcoming the cost inflation that weighed on its FY2022 profitability.
- Savings from cost reduction actions will help offset wage inflation and other cost increases in our businesses that are already included in our cost structure heading into FY2023.
- Ongoing investments in e-commerce, data and other technology capabilities.
Challenges Ahead
- Elevated discretionary strategic investments weighing on near-term profits.
- Revenue growth remains below what we believe to be achievable.
- Cost inflation has so far outpaced the rate of Vista's price increases.
- Macro volatility.
- Lingering pandemic impacts and supply chain challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income