Vistaprint 2010 Annual Report Download - page 23
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Form 10-K
Our quarterly financial results will often fluctuate, which may lead to volatility in our share
price.
Our revenues and operating results often vary significantly from quarter-to-quarter due to a
number of factors, many of which are outside of our control. Factors that could cause our quarterly
revenue and operating results to fluctuate include, among others:
• seasonality-driven or other variations in the demand for our services and products;
• currency fluctuations, which affect our revenues and our costs;
• our ability to attract visitors to our websites and convert those visitors into customers;
• our ability to retain customers and encourage repeat purchases;
• business and consumer preferences for our products and services;
• shifts in product mix toward lower gross margin products;
• our ability to manage our production and fulfillment operations;
• costs to produce our products and to provide our services;
• our pricing and marketing strategies and those of our competitors;
• improvements to the quality, cost and convenience of desktop printing;
• costs of expanding or enhancing our technology or websites;
• compensation expense and charges related to our awarding of share-based compensation;
• costs and charges resulting from litigation; and
• a significant increase in credits, beyond our estimated allowances, for customers who are
not satisfied with our products.
In addition, management investment decisions may lead to fluctuations in our quarterly financial
results. For instance, since we seek to deliver on annual earnings per share objectives, and not
quarterly, we may choose to make discretionary, above planned investments that result in lower than
anticipated quarterly earnings and/or quarterly earnings that are lower than provided in prior quarterly
guidance.
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 price of our ordinary shares will likely fall.
Seasonal fluctuations in our business place a strain on our operations and resources.
Our business has become increasingly seasonal in recent years due to increased sales of
products targeted to the consumer marketplace, such as holiday cards, calendars and personalized
gifts. Our second fiscal quarter, ending December 31, includes the majority of the holiday shopping
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