Vistaprint 2007 Annual Report Download - page 53

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SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. We are currently
evaluating the impact, if any, the adoption of SFAS No. 159 will have on our consolidated financial
statements.
Results of Operations
The following table presents our historical operating results for the periods indicated as a
percentage of revenue:
Year Ended June 30,
2007 2006 2005
As a percentage of revenue:
Revenue .............................................................. 100.0% 100.0% 100.0%
Cost of revenue ....................................................... 35.2% 32.8% 40.2%
Technology and development expense .................................. 10.6% 10.3% 11.9%
Marketing and selling expense .......................................... 34.3% 33.6% 35.6%
General and administrative expense ..................................... 9.3% 10.9% 6.4%
Loss on contract termination ............................................ 0.0% 0.0% 23.1%
Income (loss) from operations........................................... 10.6% 12.4% (17.2)%
Interest income ........................................................ 1.8% 1.9% 0.3%
Other income (expense), net............................................ 0.0% (0.3)% (0.4)%
Interest expense....................................................... 0.7% 0.8% 0.4%
Income (loss) from operations before income taxes ....................... 11.7% 13.2% (17.7)%
Income tax provision ................................................... 1.1% 0.5% 0.1%
Net income (loss) ...................................................... 10.6% 12.7% (17.8)%
Fiscal Years Ended June 30, 2007, 2006 and 2005
In thousands
Year Ended June 30, 2006-2007
% Change
2005-2006
% Change2007 2006 2005
Revenue ................................ $255,933 $152,149 $90,885 68% 67%
Cost of revenue ......................... $ 89,971 $ 49,858 $36,528 80% 36%
% of revenue............................. 35.2% 32.8% 40.2%
The $103.8 million, or 68%, increase in revenue from fiscal 2006 to fiscal 2007 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, conversion rates and the average order value of
shipments. During this period, our website sessions grew by 30% to 131.1 million, conversion rates
grew by 17% to 5.5% and our average order value grew by 8% to $33. As our total customer base has
grown, we also have continued to experience growth in purchases from existing customers. Revenue
from repeat customers increased from 62% of total revenue in fiscal 2006 to 63% of total revenue in
fiscal 2007. Revenue from our non-United States websites accounted for 32% of total revenues for
fiscal 2007 as compared to 29% of total revenue during fiscal 2006.
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
Form 10-K
49