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Jun 30, 2024
Cimpress Q4 2024 Earnings Report
Delivered strong financial results, topping off a strong FY2024 with highest-ever fiscal year results.
Key Takeaways
Cimpress reported strong Q4 FY2024 results with revenue growth, increased operating income, and adjusted EBITDA. The company continued to reduce net leverage and increase liquidity while executing share repurchases.
Revenue grew 6% on a reported basis and on an organic constant-currency basis.
Consolidated operating income increased $12.4 million year over year to $66.3 million.
Adjusted EBITDA increased $5.4 million year over year to $119.4 million.
Adjusted free cash flow increased $82.1 million year over year to $116.8 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 expects to benefit from print market dynamics and deliver customer experience improvements. The company anticipates annual constant-currency organic revenue growth at mid-single-digit rates, with adjusted EBITDA growing slightly faster. They target net leverage at or below approximately 2.5x trailing-twelve-month EBITDA but may increase leverage to approximately 3.0x for investments.
Positive Outlook
- Consolidated constant-currency organic revenue to grow annually at mid-single-digit rates, possibly a little higher.
- Adjusted EBITDA to grow slightly faster than revenue.
- The multi-year conversion rate of adjusted EBITDA to adjusted free cash flow to be approximately 45% to 50%, with fluctuations from year to year.
- Make roughly similar levels of operating expense organic growth investment as we did in FY2024.
- Repurchase shares and/or debt if available at an attractive price.
Challenges Ahead
- Changes in net working capital to be a source of cash, but less favorable than it was in FY2024.
- Increase capital expenditures to capitalize on opportunities we see for new products and productivity- enhancing production equipment.
- Not deploy significant capital to M&A.
- We may, from time-to-time, increase leverage to as high as approximately 3.0x for investments that we believe to have good returns and with a clear path to delever to the target of approximately 2.5x or below.
- However, if we continue to have attractive opportunities for share repurchases next fiscal year, we expect to exit FY2025 with net leverage at or below approximately 2.75x.
Revenue & Expenses
Visualization of income flow from segment revenue to net income