Vistaprint 2012 Annual Report Download - page 45

41
Recently Issued Accounting Pronouncements
See Item 8 of Part II, “Financial Statements and Supplementary Data — Note 2 — Summary of Significant
Accounting Policies — Recently Adopted Accounting Pronouncements."
Results of Operations
The following table presents our historical operating results for the periods indicated as a percentage of
revenue:
Year Ended June 30,
2012 2011 2010
As a percentage of revenue:
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0 % 100.0 %
Cost of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.8% 35.2 % 35.8%
Technology and development expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.7% 11.5 % 11.7 %
Marketing and selling expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.8% 33.3 % 32.3 %
General and administrative expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3% 8.6 % 8.7 %
Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4% 11.4 % 11.5 %
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% 0.1 % 0.1 %
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2% (0.3)% (0.2)%
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1% — % 0.2 %
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5% 11.2 % 11.2 %
Income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2% 1.2 % 1.1 %
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3% 10.0 % 10.1%
In thousands
Year Ended June 30,
2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,020,269 $ 817,009 $ 670,035 25% 22%
Revenue
We generate revenue primarily from the sale and shipping of customized manufactured products, and the
provision of digital services, website design and hosting, email marketing services as well as a small percentage
from order referral fees and other third-party offerings.
We seek to increase our revenue by increasing the number of customers who purchase from us (“unique
active customers”), as well as the amount our customers spend on our offerings (“average bookings per unique
active customer”). We use the combination of unique active customers and average bookings per unique active
customer to describe our revenue performance as this approach is aligned with the way we manage our business
and our efforts to increase our revenue. We believe that metrics relating to our unique active customers and
average bookings per unique active customer offer shareholders a useful means of assessing our execution against
our strategy. Because changes in one of these metrics may be offset by changes in the other metric, no single
factor is determinative of our revenue and profitability trends, and we assess them together to understand their
overall impact on revenue and profitability. A number of factors influence our ability to drive increases in these
metrics:
• Unique active customers. The unique active customer count is the number of individual customers who
purchased from us in a given period, with no regard to the frequency of purchase. For example, if a single
customer makes two distinct purchases within a twelve-month period, that customer is tallied only once in
the unique active customer count. We determine the uniqueness of a customer by looking at certain
customer data. Unique active customers are driven by both the number of new customers we acquire, as
well as our ability to retain customers after their first purchase. During our early growth phase, we focused
Form 10-K