Vistaprint Announced Financial Results for The Three Month Period Ended March 31, 2014

Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses and the home, announced financial results for the three month period ended March 31, 2014, the third quarter of its 2014 fiscal year.

Third quarter 2014 results:
-Revenue decreased 1 percent year over year to $286.2 million
-Revenue decreased 1 percent year over year excluding the impact of currency exchange rate fluctuations
-GAAP net income per diluted share decreased 76 percent year over year to $0.04
-Non-GAAP adjusted net income per diluted share decreased 50 percent year over year to $0.24

“This is the first quarter in the past 14 years in which our revenue declined year over year. While we are not content with this performance, our underlying value creation was much better than our headline financial numbers,” said Robert Keane, president and chief executive officer.

“Based upon significant customer research that we have conducted over the past three years we are shifting our value proposition away from the deep discounts and free-offer direct marketing that characterized the Vistaprint of the past toward being simply the best way for business owners to market their business. We are making this shift in order to expand into the large market opportunity that lies beyond our traditional base of highly price sensitive customers.”

Consolidated Financial Metrics:
Revenue for the third quarter of fiscal year 2014 was $286.2 million, a 1 percent decrease compared to revenue of $287.7 million reported in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations, total revenue also decreased 1 percent year over year in the third quarter.

Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the third quarter was 64.7 percent, down from 65.5 percent in the same quarter a year ago.

Operating income in the third quarter was $5.2 million, or 1.8 percent of revenue, and reflected a 46 percent decrease compared to operating income of $9.7 million, or 3.4 percent of revenue, in the same quarter a year ago.

GAAP net income attributable to Vistaprint for the third quarter was $1.4 million, or 0.5 percent of revenue, representing a 77 percent decrease compared to $5.9 million, or 2.0 percent of revenue in the same quarter a year ago. During the quarter, we incurred transaction costs of $3.4 million related to two recently-announced acquisitions.

GAAP net income per diluted share for the third quarter was $0.04, versus $0.17 in the same quarter a year ago.