Vistaprint 2014 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2014 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

14
operations. Our ability to provide a high-quality customer experience is also dependent 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 promote our brands or provide customers with a
high-quality customer experience, we may fail to attract new customers, maintain customer relationships, and
sustain or increase our revenues.
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 outside of our control. We
target annual, rather than quarterly, financial objectives which can lead to fluctuations in our quarterly results. Other
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 products and services, in particular during
our second fiscal quarter;
• currency and interest rate fluctuations, which affect our revenues and/or costs;
• hedge activity that does not qualify for, or for which we do not elect, hedge accounting;
• our ability to attract visitors to our websites and convert those visitors into customers;
• our ability to retain customers and generate repeat purchases;
• shifts in product mix toward less profitable products;
• our ability to manage our production, fulfillment, and support operations;
• costs to produce and deliver our products and provide our services, including the effects of inflation;
• our pricing and marketing strategies and those of our competitors;
• investments in our business to generate or support revenues and operations in future periods, such as
incurring marketing, engineering, or consulting expenses in a current period for revenue growth or
support in future periods;
• expenses and charges related to our compensation agreements with our executives and employees;
• costs and charges resulting from litigation;
• significant increases in credits, beyond our estimated allowances, for customers who are not satisfied
with our products;
• changes in our income tax rate;
• costs to acquire businesses or integrate our acquired businesses;
• impairments of our tangible and intangible assets including goodwill; and
• the results of our minority investments and joint ventures.
Some of our expenses, such as office leases, depreciation related to previously acquired property and
equipment, and personnel costs, are relatively fixed, and we may be unable to adjust operating expenses 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 above factors, among others, we believe that quarter-to-quarter
comparisons of our operating results may not be a good indication of our future performance. Our operating results
may sometimes be below the expectations of public market analysts and investors, in which case the price of our
ordinary shares will likely decline.