Vistaprint 2014 Annual Report Download - page 40

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customer count has grown significantly over the years, and we expect it will continue to grow as we see
additional opportunity to drive both new customer acquisitions as well as increased retention rates. A
retained customer is any unique customer in a specific period who has also purchased in any prior period.
• Average bookings per unique active customer. Average bookings per unique active customer are total
bookings, which represents the value of total customer orders received on our websites, for a given period
of time divided by the total number of unique active customers, regardless of brand, who purchased during
that same period of time. We seek to increase average bookings per unique active customer as a means of
increasing revenue. Average bookings per unique active customer are influenced by the frequency that a
customer purchases from us, the number of products and feature upgrades a customer purchases in a
given period, as well as the mix of tenured customers versus new customers within the unique active
customer count, as tenured customers tend to purchase more than new customers. Average bookings per
unique active customer have grown over a multi-year period, though they do sometimes fluctuate from one
quarter to the next depending upon the type of products we promote during a period and promotional
discounts we offer. For example, among other things, seasonal product offerings, such as holiday cards,
can cause changes in bookings per customer in our second fiscal quarter ended December 31.
Revenue for the fiscal year ended June 30, 2014 increased 9% to $1,270.2 million compared to the fiscal
year ended June 30, 2013 due to increases in sales across our product and service offerings, as well as revenue
from the People & Print Group and Pixartprinting businesses that we acquired in the fourth quarter of fiscal 2014
included as part of our European business. Excluding the People & Print Group and Pixartprinting businesses, we
had 16.7 million unique active customers and our average order value for the period increased by 7%, contributing
positively to our 9% reported revenue growth and 4% annual constant-currency revenue growth in fiscal 2014
excluding the impact of the 2014 acquisitions. During the third quarter, we rolled out significant pricing changes in
two of our top markets: the U.S. and Germany. These changes are designed to help us improve customer lifetime
value and loyalty over time, but created near-term revenue headwinds in North America and Europe for the second
half of fiscal 2014, particularly in our third fiscal quarter. The North American business delivered annual reported
and constant-currency revenue growth of 9% during the fiscal year ended June 30, 2014, as successful programs to
drive customer value that we started two years ago helped to offset the negative impact of the pricing changes. The
reported revenue of our European business increased 11% but declined 3% on a constant-currency basis excluding
the impact of the 2014 acquisitions as we implemented changes to our customer value proposition and reduced
certain advertising expenditures with lower returns to make more focused investments in the region. Most of World
reported revenue declined 4% but grew 6% on a constant-currency basis in fiscal 2014 excluding the 2014
acquisitions, as compared to fiscal 2013.
Revenue for the fiscal year ended June 30, 2013 increased 14% to $1,167.5 million compared to the fiscal
year ended June 30, 2012 due to increases in sales across our product and service offerings in our business,
including the revenue from the Albumprinter and Webs businesses that were included for only a portion of our fiscal
2012 results. The number of unique active customers, inclusive of our Albumprinter and Webs customer activity,
increased by 13% to 17.0 million during fiscal 2013, contributing positively to our total reported revenue growth. The
North American business continued to deliver a solid performance with 18% reported revenue growth and 17%
constant-currency revenue growth excluding the impact of our acquisition of Albumprinter and Webs in fiscal 2012
(the "2012 acquisitions"), leveraging successful programs to drive customer value that we started two years ago.
Our European business delivered 9% reported revenue growth but disappointing constant-currency revenue growth
excluding the impact of the 2012 acquisitions of just 5% during the fiscal year ended June 30, 2013. Most of World
reported revenue growth declined to 16% from 44% for the prior comparative period, and to 17% from 38%, on a
constant-currency basis, as we reached relative maturity in certain markets which comprise a majority of the
region's revenue activity.
We monitor unique active customers and average bookings per unique active customer on a trailing twelve-
month, or TTM, basis. We have historically reported these metrics for our Vistaprint-branded business only;
however, in fiscal 2014 we began including the Albumprinter and Webs activity since their respective acquisition
dates. We have revised the June 30, 2013 and 2012 information to include Albumprinter and Webs and presented it
on a consolidated basis for comparative purposes. The consolidated unique active customer count is the number of
individual customers who purchased from us in a given period, with no regards to the frequency of purchase. For
the purposes of this consolidated presentation, a customer that has purchased from more than one of our brands is
only counted once. New customers include those who purchased from any one of our brands for the first time in a
given time period. Any existing Albumprinter or Webs customers prior to the 2012 acquisitions who placed an order