Vistaprint 2013 Annual Report Download - page 43

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Total revenue by geographic segment for the fiscal years ended June 30, 2013, 2012 and 2011 are shown
in the following table:
In thousands
Year Ended June 30, Currency Impact: Constant- Currency Impact of Acquisitions:
Constant-
Currency
Organic
2013 2012 % Change (Favorable)/ Unfavorable Revenue Growth (1) (Favorable)/ Unfavorable Revenue Growth (1)
North America . . . . . . . . . . . . . $ 644,326 $ 543,860 18% —% 18% (1)% 17%
Europe . . . . . . . . . . . . . . . . . . 452,202 415,213 9% 2% 11% (6)% 5%
Most of World . . . . . . . . . . . . . 70,950 61,196 16% 1% 17% —% 17%
Total revenue . . . . . . . . . . . . . $ 1,167,478 $ 1,020,269 14% 2% 16% (4)% 12%
Year Ended June 30, Currency Impact: Constant- Currency Impact of Acquisitions:
Constant-
Currency
Organic
2012 2011 % Change (Favorable)/ Unfavorable Revenue Growth (1) (Favorable)/ Unfavorable Revenue Growth (1)
North America . . . . . . . . . . . . . $ 543,860 $ 452,770 20% —% 20% (1)% 19%
Europe . . . . . . . . . . . . . . . . . . 415,213 321,716 29% 2% 31% (13)% 18%
Most of World . . . . . . . . . . . . . 61,196 42,523 44% (6)% 38% —% 38%
Total revenue . . . . . . . . . . . . . $ 1,020,269 $ 817,009 25% —% 25% (5)% 20%
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(1) Constant-currency revenue growth, a non-GAAP financial measure, represents the change in total revenue between current and prior year
periods at constant-currency exchange rates by translating all non-U.S. dollar denominated revenue generated in the current period using
the prior year period’s average exchange rate for each currency to the U.S. dollar and excludes the impact of gains or losses on effective
currency hedges recognized in revenue. Constant-currency organic revenue growth also excludes the impact of revenue from acquisitions.
We have provided these non-GAAP financial measures because we believe they provide meaningful information regarding our results on a
consistent and comparable basis for the periods presented. Management uses these non-GAAP financial measures, in addition to GAAP
financial measures, to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to and not a
substitute for our reported financial results prepared in accordance with GAAP.
The following table summarizes our comparative operating expenses for the period:
In thousands
Year Ended June 30,
2013 2012 2011 2013 vs 2012 2012 vs 2011
Cost of revenue . . . . . . . . . . . . . . . . . . . $ 400,293 $ 355,205 $ 287,806 13% 23%
% of revenue . . . . . . . . . . . . . . . . . . . . . . 34.3% 34.8% 35.2%
Technology and development expense $ 164,859 $ 129,162 $ 93,626 28% 38%
% of revenue . . . . . . . . . . . . . . . . . . . . . . 14.1% 12.7% 11.5%
Marketing and selling expense . . . . . . . $ 446,116 $ 375,538 $ 271,838 19% 38%
% of revenue . . . . . . . . . . . . . . . . . . . . . . 38.2% 36.8% 33.3%
General and administrative expense . . $ 110,086 $ 105,190 $ 70,659 5% 49%
% of revenue . . . . . . . . . . . . . . . . . . . . . . 9.4% 10.3% 8.6%
Cost of revenue
Cost of revenue includes materials used to manufacture our products, payroll and related expenses for
production personnel, depreciation of assets used in the production process and in support of digital marketing
service offerings, shipping, handling and processing costs, third-party production costs, production costs of free
products and other related costs of products sold by us.
The decrease in cost of revenue, as a percentage of total revenue, from fiscal 2012 to fiscal 2013 is due to
improved overhead absorption as a result of higher product sales, increased labor and production efficiency,
improvements in our materials sourcing, and better pricing of our products. In addition, the decrease in cost of
revenue, as a percentage of total revenue for the twelve months ended June 30, 2013, includes a $1.4 million
benefit from a non-cash gain related to a free piece of equipment.