Vistaprint 2007 Annual Report Download - page 7

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PART I
Item 1. Business
This annual report on Form 10-K and the documents that we incorporate by reference in this report
contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to risks and uncertainties and are based on the
beliefs and assumptions of our management and information currently available to our management. Use
of words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “goal,” “should,”
“likely” or similar expressions, indicate a forward-looking statement. While we may elect to update these
forward-looking statements, we specifically disclaim any obligation to do so, even if our expectations
change. Important factors that could cause actual results to differ materially from the forward-looking
statements include, but are not limited to, those set forth under the heading “Risk Factors.”
Overview
We are the leading online supplier of high-quality graphic design services and customized printed
products to small businesses and consumers worldwide. Since the launch of our website in May 2000,
we have served over 10,000,000 paying customers in more than 120 countries. We offer a broad
spectrum of products and services ranging from business cards, brochures and invitations to mailing
and creative services. We seek to offer compelling value to our customers through an innovative use of
technology, a broad selection of customized printed products and services, low pricing and
personalized customer service. Through our use of proprietary Internet-based graphic design software,
localized websites, proprietary order receiving and processing technologies and advanced computer
integrated printing facilities, we offer a meaningful economic advantage relative to traditional graphic
design and printing methods. Our value proposition has allowed us to successfully penetrate the large,
fragmented and geographically dispersed small business and consumer markets.
We have standardized, automated and integrated the entire graphic design and print process,
from design conceptualization to product shipment. Customers visiting our websites can use our
graphic design software to easily create and order full-color, personalized, professional-looking printed
products, without any prior graphic design training or experience. Customers have access to graphic
designs, content suggestions, logo design services, design templates and over 70,000 photographs
and illustrations. Through technology, we are also able to automatically generate and display
complementary products incorporating graphic elements from the customer’s original design. In
addition, our design support staff is available to provide design assistance to customers in English-
speaking markets. During the fiscal year ended June 30, 2007, customers used our design
technologies to place an average of over 19,000 customized orders per day, 365 days per year.
Our proprietary Internet-based order processing systems receive and store tens of thousands of
individual print jobs on a daily basis and, using complex algorithms, efficiently aggregate these print
jobs for printing as a single press-run. Our systems intelligently search pending individual print jobs,
select jobs having similar printing parameters for combination into a single larger aggregate job and
calculate the optimal allocation of print orders that will result in the lowest production cost and on-time
delivery. By combining this order aggregation technology with our computer integrated print
manufacturing facilities, we are able to significantly reduce the costs and inefficiencies associated with
traditional short run printing and can provide customized finished products in as little as three days
from design to delivery.
Our large and diverse customer base reduces our dependence on individual products and
lessens the impact of shifts in demand for graphic design services and printed products by any
individual customer. Our total revenues have grown from $6.1 million for the fiscal year ended June 30,
2001 to $255.9 million for the fiscal year ended June 30, 2007. All of this growth has been organic.
Form 10-K
3