Vistaprint 2009 Annual Report Download - page 61

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source of traffic to our websites. Typically, we use various advertising campaigns to increase
the number and quality of shoppers entering our websites. The number of website sessions
varies from month to month depending on variables such as product campaigns and
advertising channels used.
‰Conversion rates. The conversion rate is the number of customer orders divided by the total
number of sessions during a specific period of time. Typically, we strive to increase conversion
rates of customers entering our websites in order to increase the number of customer orders
generated. Conversion rates have fluctuated in the past and we anticipate that they will
fluctuate in the future due to, among other factors, the type of advertising campaigns and
marketing channels used.
‰Average order value. Average order value is total bookings for a given period of time divided
by the total number of customer orders recorded during that same period of time. We seek to
increase average order value as a means of increasing total revenue. Average order values
have fluctuated in the past and we anticipate that they will fluctuate in the future depending
upon the type of products promoted during a period and promotional discounts offered. For
example, among other things, seasonal product offerings, such as holiday cards, can cause
changes in average order values.
We believe the analysis of these metrics provides us with important information on customer
buying behavior, advertising campaign effectiveness and the resulting impact on overall revenue
trends and profitability. While we continually seek and test ways to increase revenue, we also attempt
to increase the number of customer acquisitions and to grow profits. As a result, fluctuations in these
metrics are usual and expected. Because changes in any one of these metrics may be offset by
changes in another metric, no single factor is determinative of our revenue and profitability trends and
we assess them together to understand their overall impact on revenue and profitability.
Total revenue increased 29% to $515.8 million, from fiscal 2008 to fiscal 2009, primarily due 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. During this period, our website sessions grew by 22% to 235.9 million, conversion
rates grew by 8% to 6.4% 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 64% of total revenue in fiscal 2008
to 66% of total revenue in fiscal 2009. Revenue from our non-United States websites accounted for
39% of total revenues for fiscal 2009 as compared to 38% of total revenue during fiscal 2008. In
addition, our revenue growth was negatively impacted by approximately 7% resulting from a stronger
U.S. dollar as compared to the prior fiscal year.
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. 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. In addition, our revenue was positively impacted by approximately 6% resulting from
a weaker U.S. dollar as compared to the prior fiscal year.
Form 10-K
55