Vistaprint 2009 Annual Report Download - page 29

In addition, management investment decisions may lead to fluctuations in our quarterly financial
results. We base our operating expense budgets in part on expected revenue trends. A portion of our
expenses, such as office leases and personnel costs, are relatively fixed. We may be unable to adjust
spending quickly enough to offset any revenue shortfall. Accordingly, any shortfall in revenue may
cause significant variation in operating results in any quarter.
Based on the factors cited above, among others, we believe that quarter-to-quarter comparisons
of our operating results may not be a good indication of our future performance. It is possible that in
one or more future quarters, our operating results may be below the expectations of public market
analysts and investors. In that event, the trading price of our common shares will likely fall.
The markets for customized marketing products and services for small businesses and custom
consumer products are intensely competitive and we may be unsuccessful in competing
against current and future competitors, which could result in price reductions and/or decreased
demand for our products.
The markets for small business marketing products and services and consumer custom products,
including the printing and graphic design market, are intensely competitive, with many existing and
potential competitors, and we expect competition for online small business marketing and consumer
custom products and services to increase in the future. Competition may result in price pressure,
reduced profit margins and loss of market share, any of which could substantially harm our business
and results of operations. The markets for small business marketing products and services and for
consumer custom products traditionally are highly fragmented and geographically dispersed. The
increased use of the Internet for commerce and other technical advances have allowed traditional
providers of these products and services to improve the quality of their offerings, produce those
products and deliver those services more efficiently and reach a broader purchasing public. Current
and potential competitors include:
‰traditional storefront printing and graphic design companies;
‰office superstores, drug store chains, food retailers and other major retailers targeting small
business and consumer markets such as Staples, UPS Stores, Office Depot, Costco, CVS,
Schleker, Walgreens, Carrefour and Wal-Mart;
‰wholesale printers such as Taylor Corporation and Business Cards Tomorrow;
‰other online printing and graphic design companies. We are aware of many online print shops
that provide printed products and services similar to ours, such as Overnight Prints, 123Print,
Moo.com and UPrinting for small business marketing products and services; TinyPrints,
Invitation Consultants and Fine Stationery for invitations and announcements; and Shutterfly,
Snapfish, and Kodak for photo products;
‰self-service desktop design and publishing using personal computer software with a laser or
inkjet printer and specialty paper;
‰other email marketing services companies such as Constant Contact and iContact;
‰other website design and hosting companies such as United Internet, Web.com and Network
Solutions;
‰other suppliers of custom apparel, promotional products and customized gifts, such as Zazzle,
Café Press and Customization Mall;
‰online photo product companies, such as Kodak Gallery, Snapfish by HP, Shutterfly and
Photobox; and
‰other internet firms, such as Google (Picasa), Yahoo (Flickr), Amazon, Facebook, MySpace,
the Knot and many smaller firms.
Many of our current and potential competitors have advantages over us, including longer
operating histories, greater brand recognition, existing customer and supplier relationships, and
Form 10-K
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