Vistaprint 2013 Annual Report Download - page 17

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optimized for mobile devices, and the development of mobile-oriented user interfaces and other technologies is
complex. Although we are investing to update our technology to be more effective on mobile devices and have
made some mobile functionality available to our customers, we cannot predict the success of those investments.
We also rely heavily on email to contact and market to our customers, and we believe we may be losing potential
sales to customers who use mobile devices to skim and then delete emails without opening them. If we fail to make
changes to our websites, technologies, and marketing methods to facilitate the design and purchase of our products
with mobile devices, or if the market shift to mobile devices accelerates faster than we are able to make the
necessary changes, then we could find it increasingly difficult to attract new and repeat visitors to our websites and
convert these visitors to customers, and our revenue could decline.
Purchasers of micro business marketing products and services, including graphic design and customized
printing, may not choose to shop online, which would prevent us from acquiring new customers that are
necessary to the success of our business.
The online market for micro business marketing products and services is less developed than the online
market for other business and home and family products, and our success depends in part on our ability to attract
customers who have historically purchased products and services we offer through offline channels. Specific factors
that could prevent prospective customers from purchasing from us as an online retailer include:
• concerns about buying graphic design services and marketing products without face-to-face interaction
with sales personnel;
• the inability to physically handle and examine product samples;
• delivery time associated with Internet orders;
• concerns about the security of online transactions and the privacy of personal information;
• delayed shipments or shipments of incorrect or damaged products; and
• the inconvenience associated with returning or exchanging purchased items.
We may not succeed in promoting and strengthening our brands, which could prevent us from acquiring
new customers and increasing revenues.
A primary component of our business strategy is to promote and strengthen the Vistaprint brand and the
brands of our acquired companies in order to attract new and repeat customers to our websites, and we face
significant competition from other companies in the various markets we serve who also seek to establish strong
brands. To promote our brands, we have incurred and will continue to incur substantial expenses related to
advertising and other marketing efforts, but we cannot be sure that these investments will be profitable. If we are
unable to successfully promote our brands, we may fail to attract new customers, maintain customer relationships,
and increase our revenues.
A component of our brand promotion strategy is establishing a relationship of trust with our customers by
providing a high-quality customer experience, which requires us to invest substantial amounts of resources in our
website development, design and technology, graphic design operations, production operations, and customer
service operations. Our ability to provide a high-quality customer experience is also dependent on external factors
over which we may have little or no control, including the reliability and performance of our suppliers, third-party
carriers, and communication infrastructure providers. If we are unable to provide customers with a high-quality
customer experience for any reason, our reputation and brands would be harmed.
Our quarterly financial results will often fluctuate, which may lead to volatility in our share price.
Our revenues and operating results often vary significantly from quarter to quarter due to a number of
factors, some of which are inherent in our business strategies but many of which are outside of our control. We
target annual, rather than quarterly, EPS objectives which can lead to fluctuations in our quarterly results. Other
factors that could cause our quarterly revenue and operating results to fluctuate include among others:
• seasonality-driven or other variations in the demand for our products and services;