Vistaprint 2011 Annual Report Download - page 21

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• unanticipated changes in our business, current and anticipated markets, industry or
competitive landscape; and
• general economic conditions.
In addition, projections are inherently uncertain and are based on assumptions and judgments
by management that may be flawed or based on information about our business and markets that
may change in the future, many of which are beyond our reasonable control. Our actual results may
differ materially from our projections due to various factors, including but not limited to the factors
listed immediately above; currency exchange fluctuations, which may affect our revenues and costs;
change in the laws and regulations or in the interpretations of laws and regulations to which we are
subject, including tax laws, or the institution of new laws or regulations that affect our business; costs
and judgments resulting from litigation; and costs and disruptions caused by acquisitions.
If our strategy is not successful, then our revenue and earnings may not grow as anticipated or
may decline, our reputation and brand may be damaged, and the price of our shares may decline. In
addition, we may change our financial strategy or other components of our overall business strategy if
we believe it is not effective, if our business or markets change, or for other reasons which may cause
fluctuations in our financial results and volatility in our share price.
We may not succeed in promoting, strengthening and continuing to establish the Vistaprint
brand, which would prevent us from acquiring new customers and increasing revenues.
A primary component of our business strategy is the continued promotion and strengthening of
the Vistaprint brand in order to attract new and repeat customers to our websites. In addition to the
challenges posed by establishing and promoting our brand among the many businesses that promote
products and services on the Internet, we face significant competition from graphic design and printing
companies marketing to micro businesses who also seek to establish strong brands. If we are unable
to successfully promote the Vistaprint brand, we may fail to increase our revenues. Customer
awareness of our brand and its perceived value depend largely on the success of our marketing
efforts and our ability to provide a consistent, high-quality customer experience. To promote our brand,
we have incurred and will continue to incur substantial expenses related to advertising and other
marketing efforts. We may choose to increase our branding expense materially, but we cannot be sure
that this investment will be profitable. Underperformance of significant future branding efforts could
materially damage our financial results.
A component of our brand promotion strategy is establishing a relationship of trust with our
customers by providing a high-quality customer experience. In order to provide a high-quality
customer experience, we have invested and will continue to invest substantial amounts of resources in
our website development, design and technology, graphic design operations, production operations,
and customer service operations. Our ability to provide a high-quality customer experience is also
dependent, in large part, on external factors over which we may have little or no control, including the
reliability and performance of our suppliers, third-party carriers and communication infrastructure
providers. If we are unable to provide customers with a high-quality customer experience for any
reason, our reputation would be harmed, and our efforts to develop Vistaprint as a trusted brand
would be adversely impacted. The failure of our brand promotion activities could adversely affect our
ability to attract new customers and maintain customer relationships, and, as a result, substantially
harm our business and results of operations.
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, some of which are inherent in our business strategies but many of which are
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