Vistaprint 2011 Annual Report Download - page 42

Form 10-K
Executive Overview
For the fiscal year ended June 30, 2011, we reported revenue of $817.0 million, representing
22% revenue growth over the prior year. Constant-currency revenue growth was 22% for this period.
Diluted earnings per share (“EPS”) grew 23% for the fiscal year ended June 30, 2011 over the prior
year to $1.83. The year included solid financial and operational results, with our highest ever new
customer additions, increased revenue from existing customers, continued geographic expansion, and
healthy growth across our businesses.
Over the last 15 years, we have grown to become a leader in the large and fragmented market
for small business marketing solutions. We have built significant competitive advantages via our
marketing approach, proprietary technology, and manufacturing expertise. We have driven strong
growth and developed substantial scale advantage by executing on our core strengths in mass
customization technologies and by introducing an unmatched breadth of small business marketing
products. We believe we are now well positioned to capitalize on our past success in order to capture
more of the large market opportunity we see ahead of us. To do so, we have adopted a new
investment approach designed to support our ability to scale faster and drive significant long-term
shareholder returns.
On July 28, 2011, we introduced new five-year organic revenue and earnings per share targets,
along with an evolved financial and investment strategy to achieve our goals. We believe that by making
disciplined but significant investments in fiscal 2012 and 2013, we will be able to sustain high revenue
growth rates over the five-year period, and position ourselves to deliver longer-term earnings per share
growth at higher rates than we would have been able to achieve at a smaller investment scale.
Our long-term goal is to be the leading online provider of micro business marketing solutions
for businesses or organizations with fewer than 10 employees. Additionally, we plan to continue to
focus on key market adjacencies where we believe we can drive additional long-term growth by
employing our unique business model and customer value proposition. These adjacencies include
digital marketing services, new geographic markets, personalized products for home and family
usage, and up-market customers.
The strategy for growth in our core micro business marketing opportunity is to make
investments and drive success in the following areas:
•Customer Value Proposition. We believe our customers currently spend only a small portion of
their annual budget for marketing products and services with us. By shifting our success metrics
from transactionally focused profit measures to longer-term customer satisfaction and economic
measures, we believe we can deliver improvements to our customer experience and value
proposition that will significantly increase customer loyalty and lifetime value. Examples of these
programs include improving the customer experience on our site, such as ease of use, less
cross selling before customers reach the checkout, and expanded customer service.
•Lifetime Value Based Marketing. We have traditionally acquired customers by targeting
micro businesses who are already shopping online through marketing channels such as
search marketing, email marketing, and other online advertising. We believe a significant
portion of micro businesses in our core markets do not currently use online providers of
marketing services. By investing more deeply into existing marketing channels, as well as
opening up new channels such as television broadcast and direct mail, we believe we can
accelerate our new customer growth and reach offline audiences that are not currently
looking to online partners for marketing needs.
•World Class Manufacturing. We believe our manufacturing processes are best-in-class
when it comes to the printing industry. But when compared to the best manufacturing
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