Vistaprint 2006 Annual Report Download - page 48

Table of Contents
Fiscal Years Ended June 30, 2006, 2005 and 2004
In thousands
Year Ended
June 30,
2005−2006
% Change 2004−2005 % Change
2006 2005 2004
Revenue $152,149 $90,885 $58,784 67% 55%
Cost of revenue $ 49,858 $36,528 $23,837 36% 53%
% of revenue 32.8% 40.2% 40.6%
The $61.3 million, or 67%, increase in revenue from fiscal 2005 to fiscal 2006 was primarily attributable to increases in website sales of our
printed products. The overall growth during this period was driven by increases in website sessions and the average order value of shipments.
During this period, our website sessions grew by 56%, average order value grew by 4% to $30 and conversion rates remained unchanged at
4.7%. As our total customer base has grown, we also have continued to experience significant growth in purchases from existing customers.
Revenue from repeat customers increased from 57% of revenue in fiscal 2005 to 62% of revenue in fiscal 2006. Revenue from our non−United
States websites accounted for 29% of total revenues for fiscal 2006 as compared to 27% of total revenue during fiscal 2005.
The $32.1 million, or 55%, increase in revenue from fiscal 2004 to fiscal 2005 was primarily attributable to increases in website sales of our
printed products. The overall growth during this period was driven by increases in website sessions and the average order value of shipments.
During this period, our website sessions grew by 39%, average order value grew by 10% to $29 and conversion rates remained unchanged at
4.7%. Revenue from repeat customers increased from 51% of revenue in fiscal 2004 to 57% of revenue in fiscal 2005. Revenue from our
non−United States websites accounted for 27% of total revenues for fiscal 2005 as compared to 23% of total revenue during fiscal 2004.
Cost of revenue increased by 36% from fiscal 2005 to fiscal 2006. The increase was primarily attributable to the increased volume of
shipments of printed products during this period. The decrease in the cost of revenue as a percentage of total revenue for fiscal 2006 as compared
to fiscal 2005 was primarily driven by lower product costs at our Canadian printing facility as our transition from our former third party print vendor,
Mod−Pac, to our Canadian printing facility was completed in September 2005.
Cost of revenue increased by 53% from fiscal 2004 to fiscal 2005. This increase was driven by the increased volume in shipments of
printed products during this period. The decrease in the cost of revenue as a percentage of total revenue for fiscal 2005 as compared to fiscal
2004 was the result of improved labor and overhead cost efficiencies at our Dutch printing facility and an increase in customer click−through
revenue, partially offset by increased costs from our Canadian printing facility, which began shipping customer orders in May 2005. Our Dutch
printing facility began producing and shipping products for the European and Asian markets in February 2004, and the increased volume produced
at that plant in 2005 increased labor and facility overhead cost absorption, resulting in lower cost of revenue as a percentage of revenue. During
most of fiscal year 2005 and all of fiscal 2004, all of our North American shipments were printed by Mod−Pac. Under the arrangements in place
with Mod−Pac during this period, cost of revenue as a percentage of revenue for products produced by Mod−Pac and shipped to North American
customers exceeded the cost of revenue as a percentage of revenue for products produced at our Dutch facility and shipped to non−North
American customers.
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