Vistaprint 2012 Annual Report Download - page 40

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36
Executive Overview
For the fiscal year ended June 30, 2012, we reported revenue of $1,020.3 million representing 25%
revenue growth over the prior year. Constant-currency revenue growth was also 25% for this period. Constant-
currency organic revenue growth, which excludes the impact of acquisitions, was 20% for the fiscal year ended
June 30, 2012. The year included solid operational results, with our highest ever new customer additions,
increased revenue from existing customers, continued geographic expansion, and healthy growth across our
businesses including two acquisitions that we expect will contribute to our long-term growth strategy.
Despite our revenue growth and significant share repurchase activity, diluted earnings per share ("EPS") for
the year ended June 30, 2012 declined 38% from the same prior year period to $1.13. This was due to investments
we made in support of our long-term growth strategy. These investments include increased cost levels in our
organic business as well as the acquisitions of Albumprinter Holding B.V. (“Albumprinter”), a leading provider of
photo books and other photo products to consumers in Europe, and Webs, Inc. (“Webs”), a leading provider of do-it-
yourself websites, Facebook pages and mobile presence solutions for small businesses.
Over the last 16 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 an 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 EPS 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 drive continued new customer growth and reach offline audiences that are not currently looking to
online partners for marketing needs.