Vistaprint 2010 Annual Report Download - page 3

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Dear Fellow Shareholder:
I am pleased to report that, in fiscal 2010, Vistaprint extended our multi-year track record of balancing two
important objectives:
•strong financial performance
•investment to drive competitive advantage through scale, constant innovation and financial discipline.
Compared to the prior year, our revenue grew 30% to $670.0 million and US GAAP earnings per share 19% to
$1.49. US GAAP net income expanded 22 percent to $67.7 million and cash flow from operations 28% to
$153.7 million. Return on invested capital remained high: well over two times our weighted average cost of
capital, validating the financial payback of our past decisions to invest at successively record levels for the past
many years.
In fiscal 2010 as compared to fiscal 2009, we increased technology and development expense by 29% to $78.4
million, grew marketing and selling investment 36% to $216.6 million and invested $101.3 million in capital
expenditures. Most importantly, we grew the breadth and depth of our talent by investing in the career and skills
development of our existing employees and by recruiting a record number of new employees. We ended June
2010 with over 2,300 employees, up from under 1,900 at the end of June 2009.
These investments improved our customer value proposition, drove market share gains, expanded our
geographic reach, furthered our technology leadership, improved our customer service, tested new marketing
channels, and enabled manufacturing efficiency and quality improvements.
The following selected operating highlights exemplify the progress Vistaprint made over the last year:
•9.6 million unique customers purchased from Vistaprint, and the average annual bookings per
customer reached $70.
•Revenue outside of the US reached 45% of our total. We materially expanded our European and Asia
Pacific management teams, opened two new customer service centers to support German, Dutch,
French, Spanish and Italian speaking customers, built an Australian manufacturing facility and opened
a separate Australian management and marketing office, and launched websites in Finland,
Singapore and Portugal.
•We broadened our product offerings with the introduction of folded business cards, ladiesʼ T-shirts,
mugs, photo flip books, personalized notebooks, and an online search profile tool, and expanded
design content options for our customers.
Our talented and dedicated employees deserve all credit for these results. Neither Vistaprintʼs unique value
proposition nor our competitive advantages would be possible without their drive and commitment. As both
CEO and as a shareholder, I thank them for all that they did for our company over the last year.
We have high expectations for Vistaprint and for our ability to build a transformational and enduring business
institution. We believe that we are making the right investments to deliver jaw-dropping value propositions for
our customers, long-term company value for our shareholders, and highly rewarding careers for our employees.
We believe that, more than ever before, Vistaprint is on the right path for future success.
Sincerely,
Robert S. Keane
Chairman of the Management Board, President and CEO