Vistaprint 2008 Annual Report Download - page 23

Item 1A. Risk Factors
We caution you that the following important factors, among others, could cause our actual results
to differ materially from those expressed in forward-looking statements made by us or on our behalf in
filings with the Securities and Exchange Commission, press releases, communications with investors
and oral statements. Any or all of our forward-looking statements in this Annual Report on Form 10-K,
as amended and in any other public statements we make may turn out to be wrong. These statements
can be affected by, among other things, inaccurate assumptions we might make or by known or
unknown risks and uncertainties or risks we currently deem immaterial. Many factors mentioned in the
discussion below will be important in determining future results and performance. Consequently, no
forward looking statement can be guaranteed. Actual future results may vary materially from those
contained in forward looking statements made in this Annual Report on Form 10-K, as amended and in
our public statements. We undertake no obligation to update any forward-looking statements, whether
as a result of new information, future events or otherwise.
Risks Related to Our Business
If we are unable to attract customers in a cost-effective manner, our business and results of
operations could be harmed.
Our success depends on our ability to attract customers in a cost-effective manner. We rely on a
variety of methods to draw visitors to our websites and promote our products and services, including
purchased search results from online search engines, e-mail, telesales, and direct mail. We pay
providers of online services, search engines, directories and other websites and e-commerce
businesses to provide content, advertising banners and other links that direct customers to our
websites. We also promote our products and special offers through e-mail, telesales and direct mail,
targeted to repeat and potential customers. In addition, we rely heavily upon word of mouth customer
referrals. If we are unable to develop or maintain an effective means of reaching small businesses and
consumers, the costs of attracting customers using these methods significantly increase, or we are
unable to develop new cost-effective means to obtain customers, our ability to attract new and repeat
customers would be harmed, traffic to our websites would be reduced and our business and results of
operations would be harmed.
Purchasers of small business marketing products and services, including graphic design and
customized printing, may not choose to shop online, which would prevent us from acquiring
new customers which are necessary to the success of our business.
The online market for small business marketing products and services is less developed than the
online market for other business and consumer products. If this market does not gain widespread
acceptance, our business may suffer. Our success will depend in part on our ability to attract
customers who have historically purchased printed products and graphic design services through
traditional printing operations and graphic design businesses or who have produced graphic design
and printed products using self-service alternatives. Furthermore, we may have to incur significantly
higher and more sustained advertising and promotional expenditures or price our services and
products more competitively than we currently anticipate in order to attract additional online consumers
to our websites and convert them into purchasing customers. Specific factors that could prevent
prospective customers from purchasing from us include:
‰concerns about buying graphic design services and printed products without face-to-face
interaction with sales personnel;
‰the inability to physically handle and examine product samples;
‰delivery time associated with Internet orders;
Form 10-K
19