Vistaprint 2008 Annual Report Download - page 54

The $144.7 million, or 57%, increase in revenue from fiscal 2007 to fiscal 2008 was primarily
attributable to increases in sales of our small business marketing products. The overall growth during this
period was driven by increases in website sessions, conversion rates and a positive impact from new
product and service offerings. In addition our revenue was positively impacted by 5.7% resulting from a
weaker U.S. dollar as compared to the prior fiscal year. During this period, our website sessions grew by
47% to 193.0 million, conversion rates grew by 7% to 5.9% and our average order value remained constant
at approximately $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 63% of total
revenue in fiscal 2007 to 64% of total revenue in fiscal 2008. Revenue from our non-United States websites
accounted for 38% of total revenues for fiscal 2008 as compared to 32% of total revenue during fiscal 2007.
The $103.8 million, or 68%, increase in revenue from fiscal 2006 to fiscal 2007 was primarily
attributable to increases in sales of our small business marketing 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 2007.
The increase in cost of revenue from fiscal 2007 to fiscal 2008 was primarily attributable to the
production costs associated with increased volume of shipments of products during this period. The
increase in the cost of revenue as a percentage of total revenue for fiscal 2008 compared to fiscal
2007 was primarily driven by a shift in our overall product mix, which includes the impact of postage
from our mailing services offering which has a higher cost of revenue than the majority of our product
and service offerings and a decline in referral fees as a percent of total revenue. The increase in cost
of revenue as a percentage of revenue was also driven by a strong Canadian dollar which negatively
impacted the raw material and labor costs of our Canadian production operations.
The increase in cost of revenue from fiscal 2006 to fiscal 2007 was primarily attributable to the
production costs associated with increased volume of shipments of products during this period. The
increase in the cost of revenue as a percentage of total revenue for fiscal 2007 compared to fiscal
2006 was primarily driven by a shift in our overall product mix and higher equipment depreciation and
production labor costs which are the result of our continuing efforts to expand the capacity at our
manufacturing facilities in order to meet the increased demand for our products. During the second half
of fiscal 2007, we incurred approximately $1.0 million of consulting costs relating to projects targeting
further process improvements and efficiencies within the global manufacturing operations. Additionally,
during the second half of fiscal 2007, we identified certain production equipment in our Ontario facility
that would no longer be used, and thus were deemed impaired. As a result, we recorded an
impairment charge of $0.9 million to write the assets down to their estimated fair value.
In thousands
Year Ended June 30, 2007-2008
% Change
2006-2007
% Change2008 2007 2006
Technology and development expense .... $ 44,828 $27,176 $15,628 65% 74%
% of revenue .............................. 11.2% 10.6% 10.3%
Marketing and selling expense ............ $127,975 $87,887 $51,174 46% 72%
% of revenue .............................. 31.9% 34.3% 33.6%
General and administrative expense ...... $ 32,572 $23,694 $16,624 37% 43%
% of revenue .............................. 8.1% 9.3% 10.9%
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