Vistaprint N.V. of the Netherlands today released financial results for the three-month period ended September 30, 2013, the first quarter of its 2014 fiscal year, which CEO Robert Keane describes as being consistent with expectations across all geographic regions. The online-printing giant also announced new investment plans to expand manufacturing capablities in 2014.
“Our operating profitability this quarter was also in line with our expectations,” stated Keane. “With the first quarter behind us, we are focused on delivering against our holiday expectations during our second quarter, as well as continued improvement of our customer value proposition globally and our marketing execution in Europe.”
Revenue for Vistaprint’s first quarter of fiscal year 2014 grew to US$275.1 million, a nine percent increase over revenue of US$251.4 million reported in the same quarter a year ago. Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the first quarter was 65.2 percent, up from 65.0 percent in the same quarter a year ago. Operating income in the first quarter was US$8.4 million, or 3.1 percent of revenue, and reflected an increase compared to operating income of US$0.2 million, or 0.1 percent of revenue, in the same quarter a year ago.
“We expect to deliver lower year-over-year revenue growth in Europe than in North America, primarily due to planned changes we are making in our business in Europe to improve our customer value proposition, marketing execution and profitability,” stated Ernst Teunissen, VP and CFO of Vistaprint. For the full fiscal year ending June 30, 2014, Vistaprint expects revenue of approximately US$1.25 billion to $1.3 billion, or seven percent to 11 percent growth year over year in reported terms.
Vistaprint also reports it expects to make capital expenditures of approximately US$85 million to US$100 million in the full fiscal year ending June 30, 2014. This planned capital investment is to be focused on new manufacturing capabilities.