Financial Data and Key Metrics Changes - In Q4 FY 2024, consolidated revenue grew 6% on both a reported basis and organic constant currency basis [3] - For the full year, revenue grew 7% on a reported basis and over 5% on an organic constant currency basis [3] - Adjusted EBITDA increased by $5 million year-over-year in Q4 to $119 million, despite currency headwinds of over $3 million [3][4] - Full year adjusted EBITDA grew $129 million year-over-year to $469 million, representing a 38% increase [4] - Adjusted EBITDA margins improved by over 300 basis points to 14.2% in FY 2024 [4] Business Segment Data and Key Metrics Changes - Every segment accelerated revenue growth sequentially in Q4, except for National Pen, which reduced advertising spend impacting revenue growth but improved profitability [4] - Vista experienced growth in per customer value and had its sixth consecutive quarter of growth in the number of customers served [5] Market Data and Key Metrics Changes - The company noted a shift towards direct-to-customer e-commerce models, impacting reseller dynamics in the Print Group [12][13] - Revenue growth in Upload and Print has been primarily driven by volume, with a muted growth in businesses serving resellers [14] Company Strategy and Development Direction - The company plans to increase capital expenditures to enhance manufacturing and supply chain advantages, focusing on operational execution [16][18] - Investments will target production efficiency, new product introductions, and quality improvements [18][19] - The multiyear outlook remains positive, with expectations for mid-single-digit organic constant currency revenue growth and adjusted EBITDA growth slightly faster than revenue [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and operational capabilities, attributing it to significant investments made over the past six years [31] - The company is focused on leveraging scale-based advantages and improving customer value [31] Other Important Information - Adjusted free cash flow was $117 million for Q4 and $261 million for the full year, marking the highest cash flow results for both periods [5][6] - The company repurchased 1.7 million shares for $157 million in FY 2024, reducing shares outstanding by 7% [6] Q&A Session Summary Question: Can you provide an apples-to-apples breakdown of run rate EBITDA growth for Q4 FY '24 versus Q4 FY '23? - Management highlighted that currency negatively impacted EBITDA by over $3 million and noted onetime benefits from the previous year that did not repeat [9][10] Question: Can you talk about the reseller challenges in Print Group? - Management clarified that they do not see competitors "eating their lunch" and emphasized the shift towards direct-to-customer models [12][13] Question: What makes now the time to accelerate capital expenditures? - Management indicated that the focus on operational execution and the financial strength achieved over the past years justify the increase in capital expenditures [16][18] Question: Any new thinking about refinancing the 2026 bonds? - Management stated there are no new developments but confirmed they are regularly considering refinancing options [20] Question: What are the plans for the small EUR 46 million TLB tranche? - Management confirmed the plan is to hold the tranche until maturity unless circumstances change [21] Question: How do we increase the likelihood that organic investments in Vista are attractive? - Management discussed improvements in data analytics, organizational changes, and regular progress reviews to enhance investment outcomes [22][24][27]

Core Viewpoint - Cimpress plc reported strong fourth-quarter fiscal 2024 results, with adjusted earnings significantly exceeding expectations and revenue growth driven by all business segments [1][2]. Financial Performance - Adjusted earnings per share for Q4 fiscal 2024 were $4.33, surpassing the Zacks Consensus Estimate of 77 cents, and up from $1.08 in the same quarter last year [1]. - Total revenues reached $832.6 million, a 5.6% increase from $788.8 million year-over-year, with organic constant-currency revenue growth of 6% [2]. Segmental Information - The National Pen segment generated revenues of $84 million, slightly up from $83 million year-over-year, but below the estimate of $87.8 million [3]. - The Vista segment, the largest revenue contributor, reported revenues of $442 million, an increase from $410 million year-over-year, exceeding the estimate of $437.8 million [3]. - The Upload and Print segment's revenues rose to $267 million from $253 million year-over-year, with PrintBrothers generating $170 million and The Print Group $97 million [4]. - Revenues from All Other Businesses were $55 million, up from $53 million year-over-year, surpassing the estimate of $52.6 million [5]. Margin and Cost Analysis - Cost of revenues increased to $428.2 million, a 3.8% rise year-over-year, while marketing and selling expenses rose by 7.5% to $194.3 million [6]. - Gross profit increased by 7.5% year-over-year to $404 million, with a gross margin of 49%, up 100 basis points from the previous year [6]. Balance Sheet and Cash Flow - As of June 30, 2024, Cimpress had $203.8 million in cash and cash equivalents, up from $130.3 million a year ago [7]. - Long-term debt decreased to $1.59 billion from $1.63 billion at the end of the previous fiscal year [7]. - Net cash provided by operating activities was $360.7 million, significantly higher than $130.3 million in the year-ago period [7]. Outlook - For fiscal 2025, the company anticipates that currency movements will have a neutral impact on adjusted EBITDA compared to fiscal 2024 [8].

Core Insights - Cimpress reported revenue of $832.61 million for the quarter ended June 2024, reflecting a year-over-year increase of 5.6% and an EPS of $4.33, significantly up from $1.08 in the same quarter last year [1] - The revenue slightly missed the Zacks Consensus Estimate of $832.9 million by 0.04%, while the EPS exceeded expectations by 462.34% against a consensus estimate of $0.77 [1] Revenue Breakdown - Revenue from Vista was $441.91 million, surpassing the average estimate of $438.34 million, marking a year-over-year increase of 7.8% [3] - Revenue from Inter-segment eliminations was reported at -$15.53 million, worse than the estimated -$13.60 million, but showed a significant year-over-year improvement of 61.2% [4] - Revenue from All Other Businesses reached $54.62 million, exceeding the average estimate of $52.60 million, with a year-over-year change of 3.9% [5] - National Pen generated revenue of $84.18 million, below the estimated $89.04 million, but still reflecting a year-over-year increase of 1.6% [6] Stock Performance - Cimpress shares have returned 2.8% over the past month, outperforming the Zacks S&P 500 composite, which declined by 0.4% [6] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [6]

分组1 - Cimpress reported quarterly earnings of $4.33 per share, significantly exceeding the Zacks Consensus Estimate of $0.77 per share, representing an earnings surprise of 462.34% [1] - The company posted revenues of $832.61 million for the quarter ended June 2024, slightly missing the Zacks Consensus Estimate by 0.04%, compared to $788.85 million in the same quarter last year [2] - Cimpress has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates only once during the same period [2] 分组2 - The stock has gained approximately 14% since the beginning of the year, matching the S&P 500's gain of 14% [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $808.19 million, and for the current fiscal year, it is $4.25 on revenues of $3.48 billion [7] - The Zacks Industry Rank for Consumer Services - Miscellaneous is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Revenue Growth - Revenue for Q4 FY2024 grew 6% on a reported basis and on an organic constant-currency basis, totaling $832.6 million[3]. - Full-year FY2024 revenue grew 7% on a reported basis and 5% on an organic constant-currency basis, reaching $3.29 billion[5]. - Vista segment revenue grew 8% in Q4 FY2024, driven by customer experience improvements and new product introductions[7]. - National Pen revenue grew 2% in Q4 FY2024, supported by strong e-commerce performance[9]. - The company anticipates a revenue increase in PrintBrothers, projecting Q4 FY2024 revenue at $24,900, up from $20,480 in Q4 FY2023[18]. - The company expects a revenue growth in constant currency of 5% for FY2024[92]. - The overall reported revenue growth for FY2023 was 7%, with a constant currency growth of 5% projected for FY2024[92]. - National Pen segment reported revenue growth of 7% in FY2023, with constant currency growth of 12%[94]. Profitability and EBITDA - Adjusted EBITDA for Q4 FY2024 increased by $5.4 million year over year to $119.4 million, with a negative impact of $3.1 million from currency movements[3]. - Consolidated operating income for FY2024 increased by $190 million year over year to $247.4 million[5]. - Adjusted EBITDA for FY2023 was $339,832, reflecting a year-over-year growth of 21% from FY2022's $281,063[18]. - Adjusted EBITDA margin improved to 14% in FY2023, up from 10% in FY2022, with expectations to maintain this margin in FY2024[18]. - The company expects adjusted EBITDA to reach $468.7 million in FY2024, indicating a projected growth of 37.9%[100]. Cash Flow and Capital Expenditures - Operating cash flow for Q4 FY2024 rose by $63.3 million year over year to $125.1 million[4]. - Net cash provided by operating activities in Q4 FY2023 was $61,815, a decline from Q4 FY2022's $87,820, but expected to rebound to $125,095 in Q4 FY2024[19]. - Capital expenditures for FY2023 totaled $54,927, with a forecast of $58,307 for FY2024, indicating ongoing investment in growth[20]. - Net cash provided by operating activities was $125,095 for the three months ended June 30, 2024, up from $61,815 in the same period last year[85]. - Cash interest paid in Q4 FY23 was $132.3 million, compared to $98.1 million in Q4 FY22, indicating a 34.7% rise[104]. Share Repurchase and Debt Management - The company repurchased 1.7 million shares for $157 million during FY2024, representing a 7% reduction in shares outstanding[5]. - The company’s net debt as of Q4 FY2023 was $1,473 million, a slight decrease from $1,494 million in Q2 FY2023[34]. - Consolidated net leverage decreased from 5.52 in Q4 FY22 to 1.78 in Q4 FY24, indicating improved financial stability[36]. - The company emphasizes the importance of maintaining compliance with debt covenants and managing economic conditions[108]. Market Outlook and Future Guidance - The company expects consolidated constant-currency organic revenue to grow annually at mid-single-digit rates in the coming years[11]. - Future outlook includes expectations for revenue growth and adjusted EBITDA, with a focus on capital allocation strategies[107]. - Forward-looking statements indicate potential risks including supply chain constraints and market changes that could affect performance[109]. Segment Performance - VISTA's quarterly revenue reached $485 million in Q4 FY24, reflecting a 14% growth compared to the previous year[37]. - Annual revenue for VISTA in FY24 was $1,742 million, representing an 11% increase from FY23[43]. - Segment EBITDA for VISTA was $103 million in Q4 FY24, with a margin of 21%[41]. - Segment EBITDA for FY2024 was $90 million, representing a margin of 14%[56]. - Segment EBITDA for the Upload & Print segment in FY2024 was $5.2 million, with a negative impact of $0.5 million from currency[78]. Currency Impact - Currency impacts negatively affected reported revenue growth in Q4 FY2024 by less than 100 basis points[75]. - Adjusted EBITDA for FY2024 was negatively impacted by currency fluctuations, with a reported loss of $0.8 million in other income[75]. - The impact of currency fluctuations on total company revenue was a positive 3% in Q4FY23, while the impact on PrintBrothers was a negative 2%[90]. - Currency impact on reported revenue for FY2023 was 8%, with a negative impact projected at (3%) for FY2024[94].

Core Viewpoint - The upcoming earnings report for Cimpress (CMPR) is anticipated to show a year-over-year decline in earnings despite an increase in revenues, with the stock's movement heavily dependent on the actual results compared to expectations [5]. Earnings Expectations - Cimpress is expected to report quarterly earnings of $0.77 per share, reflecting a year-over-year decrease of 28.7% [2]. - Revenues are projected to be $832.9 million, which is a 5.6% increase from the same quarter last year [15]. Analyst Consensus and Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have reassessed their initial estimates collectively [3]. - The Zacks Earnings ESP, which compares the Most Accurate Estimate to the Zacks Consensus Estimate, shows a negative reading of -6.90% for Cimpress, suggesting a bearish outlook from analysts [4][8]. Historical Performance - Over the last four quarters, Cimpress has beaten consensus EPS estimates three times, indicating some level of reliability in past performance [11]. - In the last reported quarter, the company was expected to post earnings of $0.14 per share but instead reported a loss of $0.15, resulting in a surprise of -207.14% [19]. Predictive Factors - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [17]. - Cimpress currently holds a Zacks Rank of 2, which may enhance the predictive power of its Earnings ESP [18]. Conclusion - While Cimpress does not appear to be a compelling earnings-beat candidate, investors should consider other factors influencing stock performance ahead of the earnings release [13].

Core Insights - The article emphasizes the importance of identifying stocks with strong price trends and solid fundamentals for potential investment opportunities [1][2]. Group 1: Stock Performance - Cimpress (CMPR) has shown a price increase of 11.1% over the past four weeks, indicating a sustained upward trend [2]. - Over a 12-week period, CMPR has gained 5.7%, reflecting investor confidence in its potential upside [7]. - CMPR is currently trading at 81.5% of its 52-week high-low range, suggesting it may be on the verge of a breakout [2]. Group 2: Fundamental Strength - CMPR holds an Average Broker Recommendation of 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [3]. - The stock carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [8]. - The Zacks Rank system has a strong track record, with Rank 1 stocks generating an average annual return of +25% since 1988, suggesting that CMPR's price trend may remain stable [9]. Group 3: Investment Strategy - The article highlights the significance of ensuring that a stock's price trend is sustainable, supported by sound fundamentals and positive earnings estimate revisions [6]. - Investors are encouraged to utilize tools like the Zacks Research Wizard to backtest stock-picking strategies and identify profitable opportunities [4][10].

Some better-ranked companies are discussed below: Significant growth in the e-commerce and telesales channels is driving the National Pen segment. The segment's revenues grew 8% year over year in the first nine months of fiscal 2024. In the same period, the Upload & Print segment's revenues rose 8.5% year over year, supported by increasing order rates. Driven by business strength, Cimpress expects total sales to increase at least 7%. Cimpress' effective cost-control measures are supporting its margin perfor ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $25 million year-over-year in Q3 to $94 million, with adjusted EBITDA margins rising nearly 300 basis points to just over 12% due to gross margin expansion and operating expense efficiency [4][6][15] - Adjusted free cash flow was an outflow of $16.6 million this quarter, which is a $3.8 million increase in outflow year-over-year despite improved adjusted EBITDA, attributed to seasonal working capital patterns [5][15] - Consolidated revenue grew 5% on a reported basis and 4% on an organic constant currency basis, with a $6 million impact from the timing of the Easter holiday [14][15] Business Line Data and Key Metrics Changes - The Upload & Print businesses and National Pen showed improved trends despite tough comparisons from the previous year, while growth in "all other businesses" remained flat [4][6] - Home decor, particularly canvas prints, is a significant part of BuildASign's revenue, but has seen a normalization of demand post-pandemic [20][21] - National Pen's capitalized software has been consistently around 1% of revenue, reflecting strong growth in its e-commerce segment [27][55] Market Data and Key Metrics Changes - BuildASign's revenue is impacted by its exposure to the real estate and DIY home decor markets, with real estate accounting for about 10% of its revenue [21][47] - The signage category in both BuildASign and Vista has been strong, with expectations of benefiting from the upcoming political cycle in the U.S. [49] Company Strategy and Development Direction - The company plans to increase CapEx in FY2025 for new product introductions and efficiency improvements, while not expecting material M&A [8][40] - The new leverage policy targets net leverage at approximately 2.5x or below, with flexibility to go up to 3.0x for attractive investments [40][62] - The company emphasizes organic investments in OpEx and CapEx, with a focus on maintaining operational rigor and high return thresholds for capital allocation [31][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding prior guidance, citing strong results and improved profitability [6][15] - The company anticipates organic constant currency revenue growth at mid-single-digit rates and adjusted EBITDA growth slightly faster than revenue [16][40] - Management acknowledged the impact of external factors, such as currency headwinds and holiday timing, on financial performance [19][45] Other Important Information - The company ended the quarter with cash and marketable securities of $160.8 million and full access to a $250 million revolving credit facility [15] - A total of 1.3 million shares were repurchased for $120 million at an average price of $93 per share, representing about 5% of shares outstanding [38][58] Q&A Session Summary Question: Why didn't EBITDA grow more than $25 million despite cost savings? - The contribution profit growth dropped through to EBITDA due to operating expense efficiency and cost reductions implemented last year, along with a slight impact from the Easter holiday timing [10][44] Question: What percentage of BuildASign's revenue comes from real estate and DIY home decor? - BuildASign's revenue is impacted by real estate and DIY home decor, with real estate accounting for about 10% of revenue, but the connection to home decor is more about channel performance than direct market exposure [21][47] Question: What is the timeline for refinancing high-yield notes? - The company has not made decisions on refinancing yet, but they have time before maturity and will continue to focus on consistent execution [29][57] Question: What IRR thresholds are targeted for capital allocation activities? - The company targets an IRR of 15% for M&A and new product introductions, with a higher threshold for organic investments [32][60] Question: Why is the leverage policy set at 2.5x instead of 1x or 4x? - The leverage policy is designed to balance risk management and operational flexibility, allowing for resilience during economic shocks while still providing returns to equity [35][62]

Segment Revenue Segment Profitability 36 Central and Corporate Costs During the three and nine months ended March 31, 2024, central and corporate costs increased by $5.0 million and $4.4 million, as compared to the prior-year periods. The increases were largely driven by $8.7 million and $15.5 million of increased share-based compensation expense, respectively, due to a higher grant pool and the impact from our 2024 PSU grants that have an accelerated expense profile as well as expense volatility from chang ...