Vistaprint Reports Its Earnings Exceed Expectations

VENLO, NETHERLANDS—April 28, 2011—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, 2011, the third quarter of its 2011 fiscal year.

“Vistaprint just completed a very strong third quarter,” said Robert Keane, president and CEO. “Earnings exceeded our expectations for three reasons: total revenue that was higher than our previous guidance, gross margin improvements that are the result of prior decisions to invest in manufacturing and procurement capabilities, and a delay in the timing of planned operating expenses.”

Keane continued, “Additionally, though it is still very early, we are progressing against the multi-year growth strategy we outlined at our recent investor day in New York. During the quarter, we researched and tested initiatives to deliver greater value to our customers; we moved forward to further drive manufacturing excellence; we invested more in established marketing channels; and we tested investments in new marketing channels."

Third-quarter Financial Metrics:

Revenue for the third quarter of its fiscal year 2011 grew to $203.7 million, a 23 percent increase from the $166 million reported in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations, total revenue grew 22 percent from the same quarter a year ago.

Vistaprint’s gross margin (revenue minus the cost of revenue as a percent of total revenue) in the quarter was 65.3 percent, compared to 64.1 percent in the same quarter a year ago.

Operating income was $25.6 million, or 12.6 percent of revenue, which was a 44 percent increase compared to $17.8 million, or 10.7 percent of revenue, in the same quarter a year ago.

GAAP net income was $22.9 million, or 11.3 percent of revenue, a 42 percent increase compared to $16.2 million, or 9.7 percent of revenue in the same quarter a year ago.

Non-GAAP adjusted net income for the quarter, which excludes share-based compensation expense and its related tax effect, was $28.2 million, or 13.8 percent of revenue, a 31 percent increase compared to $21.5 million, or 12.9 percent of revenue in the same quarter a year ago.

Capital expenditures in the third quarter were $4.2 million, or 2.1 percent of revenue.

During the third quarter, the company generated $33.7 million in cash from operations and $27.8 million in free cash flow, defined as cash from operations less purchases of property, plant and equipment, purchases of intangible assets, and capitalization of software and website development costs.