Vistaprint 2013 Annual Report Download - page 41

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In thousands
Year Ended June 30,
2013 2012 2011 2013 vs. 2012 2012 vs. 2011
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,167,478 $ 1,020,269 $ 817,009 14% 25%
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
more resources on the acquisition of new customers through the value of our offering and our broad-based
marketing efforts targeted at the mass market for micro business customers. As we have grown larger, our
acquisition focus has been supplemented with expanded retention efforts, such as email offers, customer
service, and expanding our product offering. Our unique active customer count has grown significantly over
the years, and we expect it will continue to grow as we see additional opportunity to drive both new
customer acquisitions as well as increased retention rates. A retained customer is any unique customer in a
specific period who has also purchased in any prior period.
• Average bookings per unique active customer. Average bookings per unique active customer is total
bookings, which represents the value of total customer orders received on our websites, for a given period
of time divided by the total number of unique active customers who purchased during that same period of
time. We seek to increase average bookings per unique active customer as a means of increasing revenue.
Average bookings per unique active customer are influenced by the frequency that a customer purchases
from us, the number of products and feature upgrades a customer purchases in a given period, as well as
the mix of tenured customers versus new customers within the unique active customer count, as tenured
customers tend to purchase more than new customers. Average bookings per unique active customer have
grown over a multi-year period, though they do sometimes fluctuate from one quarter to the next depending
upon the type of products we promote during a period and promotional discounts we offer. For example,
among other things, seasonal product offerings, such as holiday cards, can cause changes in bookings per
customer in our second fiscal quarter ended December 31.
Revenue for the fiscal year ended June 30, 2013 increased 14% to $1,167.5 million compared to the
fiscal year ended June 30, 2012 due to increases in sales across our product and service offerings in our organic
business, as well as revenue from the Albumprinter and Webs businesses that were included for only a portion of
our fiscal 2012 results. The number of unique active customers increased by 10% to 15.8 million during fiscal 2013,
contributing positively to our 12% total organic business revenue growth. The organic North American business
continued to deliver a solid performance with 17% constant-currency revenue growth, leveraging successful
programs to drive customer value that we started two years ago. Our organic European business delivered
disappointing constant-currency growth of just 5% during the fiscal year ended June 30, 2013 as compared to the
prior comparative period. We expect our fiscal 2014 European revenue growth rate to remain below our historical