Vistaprint 2009 Annual Report Download - page 56

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
The following discussion and analysis of the financial condition and results of our operations should
be read in conjunction with the consolidated financial statements and the notes to those statements
included elsewhere in this Annual Report. This discussion contains forward-looking statements that
involve risks and uncertainties. Our actual results could differ materially from those discussed below.
Factors that could cause or contribute to such differences include, but are not limited to, those identified
below, and those discussed in the section titled “Risk Factors” included elsewhere in this Annual Report.
Executive Overview
In 2009, we reported 29% revenue growth to $515.8 million, and 44% fully diluted earnings per
share (“EPS”) growth to $1.25. We achieved these strong results despite two negative macroeconomic
factors: a global economic recession and significant currency fluctuations that negatively impacted our
revenue and EPS results.
Our long-term goal is to continue to grow profitably and become the leading online provider of
small business marketing solutions. We believe that the strength of our solution gives us the
opportunity not only to capture an increasing share of the existing printing needs in our targeted
markets, but also to address marketing services demand by making available to our customers cost-
effective solutions to grow their businesses. In order to accomplish this objective, we intend to execute
on the following:
Provide “All Things Marketing” for Small Business
We believe our customers currently spend only a small portion of their annual budget for
marketing products and services with us. By expanding the scope of our services and by improving the
quality and selection of our products and services along with the customer experience, we intend to
increase the amount of money our customers spend with us each year. During fiscal year 2009, we
added email marketing services, banners, key chains, mouse pads, tote bags, and other offerings. We
plan to continue to expand and enhance our product and service offerings in order to provide a greater
selection to our existing customers and to attract customers seeking different products and services.
Additionally, by continuing to improve our customer acquisition and retention marketing programs, our
customer support and design services, and our value proposition, we intend to increase the number of
products purchased by each customer.
Expand Global Reach
For the fiscal year ended June 30, 2009, revenue generated from non-United States websites
accounted for approximately 39% of our total revenue. We believe that we have significant opportunity
to expand our revenue both in the countries we currently service and in additional countries worldwide.
We opened an office in Barcelona, Spain in January 2007 to focus on the implementation of our
European growth initiatives. Our North American operations in Lexington, Massachusetts and our
European operations in Barcelona, Spain, support our global growth opportunities. We also serve
Australia, New Zealand and Japan from these locations. We intend to continue expansion of our global
marketing efforts and customer service capabilities. In addition, we intend to further extend our
geographic and international scope by continuing to introduce localized websites in different countries
and languages and by offering graphic design content specific to local markets.
Home & Family
Although we expect to maintain our primary focus on the small business market, we believe that
our customer support, sales and design services, and low costs are differentiating factors that make
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