Vistaprint 2014 Annual Report Download - page 39

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Results of Operations
The following table presents our operating results for the periods indicated as a percentage of revenue:
Year Ended June 30,
2014 2013 2012
As a percentage of revenue:
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 % 100.0 % 100.0 %
Cost of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.5 % 34.3 % 34.8 %
Technology and development expense . . . . . . . . . . . . . . . . . . . . . . . . . 13.9 % 14.1 % 12.7 %
Marketing and selling expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.6 % 38.2 % 36.8 %
General and administrative expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2 % 9.4 % 10.3 %
Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8 % 4.0 % 5.4 %
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.7)% — % 0.2 %
Interest income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.6)% (0.5)% (0.1)%
Income before income taxes and loss in equity interests . . . . . . . . . . . . 4.5 % 3.5 % 5.5 %
Income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 % 0.8 % 1.2 %
Loss in equity interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 % 0.2 % — %
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 % 2.5 % 4.3 %
Add: Net loss attributable to noncontrolling interests . . . . . . . . . . . . . . . — % — % — %
Net income attributable to Vistaprint N.V.. . . . . . . . . . . . . . . . . . . . . . . . 3.4 % 2.5 % 4.3 %
In thousands
Year Ended June 30,
2014 2013 2012 2014 vs. 2013 2013 vs. 2012
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,270,236 $ 1,167,478 $ 1,020,269 9% 14%
Revenue
We generate revenue primarily from the sale and shipping of customized manufactured products, and by
providing digital services, website design and hosting, email marketing services, as well as a small percentage from
order referral fees and other third-party offerings.
We seek to increase our revenue by increasing the number of customers who purchase from us (“unique
active customers”), as well as the amount our customers spend on our offerings (“average bookings per unique
active customer”). We use the combination of unique active customers and average bookings per unique active
customer to describe our revenue performance as this approach is aligned with the way we manage our business
and our efforts to increase our revenue. Although these metrics currently exclude our People & Print Group and
Pixartprinting acquisitions, we continue to believe that metrics relating to our unique active customers and average
bookings per unique active customer offer shareholders a useful means of assessing our execution against our
strategy. Because changes in one of these metrics may be offset by changes in the other metric, no single factor is
determinative of our revenue and profitability trends, and we assess them together to understand their overall
impact on revenue and profitability. A number of factors influence our ability to drive increases in these metrics:
• Unique active customers. The consolidated unique active customer count is the number of individual
customers who purchased from us in a given period, with no regard to the frequency of purchase. For
example, if a single customer makes two distinct purchases within a twelve-month period or is a distinct
customer purchasing from Vistaprint and Albumprinter, that customer is tallied only once in the unique
active customer count. We determine the uniqueness of a customer by looking at certain customer data,
specifically a customer's unique email address. Unique active customers are driven by both the number of
new customers we acquire, as well as our ability to retain customers after their first purchase. During our
early growth phase, we focused more resources on the acquisition of new customers through the value of
our offering and our broad-based marketing efforts targeted at the mass market for micro business
customers. As we have grown larger, our acquisition focus has been supplemented with expanded retention
efforts, such as email offers, customer service, and expanding our product offering. Our unique active
Form 10-K