Vistaprint 2015 Annual Report Download - page 44

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36
In thousands
Year Ended June 30,
Currency
Impact:
Constant-
Currency
Impact of
Acquisitions:
Constant-
Currency
Revenue
Growth
2015 2014
%
Change
(Favorable)/
Unfavorable
Revenue
Growth (1)
(Favorable)/
Unfavorable
Excluding
Acquisitions (2)
Vistaprint Business Unit . . . . $1,194,393 $ 1,144,030 4% 5% 9% —% 9%
All Other Business Units. . . . 299,813 126,206 138% 17% 155% (139)% 16%
Total revenue . . . . . . . . . . . . $1,494,206 $1,270,236 18% 5% 23% (14)% 9%
In thousands
Year Ended June 30,
Currency
Impact:
Constant-
Currency
Impact of
Acquisitions:
Constant-
Currency
Revenue
Growth
2014 2013
%
Change
(Favorable)/
Unfavorable
Revenue
Growth (1)
(Favorable)/
Unfavorable
Excluding
Acquisitions (2)
Vistaprint Business Unit . . . . $1,144,030 $ 1,091,900 5% (1)% 4% —% 4%
All Other Business Units. . . . 126,206 75,578 67% (4)% 63% (56)% 7%
Total revenue . . . . . . . . . . . . $1,270,236 $1,167,478 9% (1)% 8% (4)% 4%
___________________
(1) Constant-currency revenue growth, a non-GAAP financial measure, represents the change in total revenue between current and prior year
periods at constant-currency exchange rates by translating all non-U.S. dollar denominated revenue generated in the current period using the
prior year period’s average exchange rate for each currency to the U.S. dollar.
(2) Constant-Currency Revenue Growth Excluding Acquisitions excludes revenue results for businesses and brands in the period in which there
is no comparable year over year revenue. For example, revenue from Pixartprinting and Printdeal, which we acquired in Q4 2014, is
excluded from Q1, Q2, and Q3 2015 revenue growth but included in Q4 2015 revenue growth. Similarly, since we acquired Fotoknudsen,
Easyflyer, Exagroup, and druck.at in fiscal 2015, revenues from these businesses are excluded from both fiscal 2014 and 2015 revenue
growth, and revenues from Pixartprinting and Printdeal are excluded from fiscal 2014 revenue growth.
We have provided these non-GAAP financial measures because we believe they provide meaningful information regarding our results on a
consistent and comparable basis for the periods presented. Management uses these non-GAAP financial measures, in addition to GAAP
financial measures, to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to and not a
substitute for our reported financial results prepared in accordance with GAAP.
Vistaprint Business Unit
Reported revenue for the year ended June 30, 2015 increased 4% to $1,194.4 million as compared to the
year ended June 30, 2014 as the Vistaprint Business Unit experienced growth from the higher expectations market
segment, increased average order value and improved activity from our repeat customer base. During the year we
delivered improved revenue growth trends in the U.S., U.K., French and German markets where we made major
pricing and channel marketing changes in fiscal 2014. Our reported revenue growth was negatively affected by
currency impacts of 5% during the year ended June 30, 2015 resulting in constant-currency revenue growth of 9%.
Our constant-currency revenue growth for the Vistaprint Business Unit more than doubled from fiscal 2014 to fiscal
2015. In addition we have seen year over year improvement in our customer Net Promoter Score™ (which polls our
customers on their willingness to recommend us to friends and colleagues based on a score of 0 to 10).
We are starting to see net reductions in fiscal 2015 of the major headwinds caused by our transformation
efforts of our customer value proposition in our largest business, the Vistaprint brand. This multi-year transformation
began in 2011 and is intended over time to improve customer loyalty and long-term returns through improvements
to pricing consistency and transparency, site experience, customer communications, product selection, product
quality, merchandising, marketing messaging and customer service. Although some of these efforts continue to
create revenue headwinds in certain markets we have started to realize benefits from these investments in fiscal
2015 through improved customer retention rates and our increased Net Promoter Score.
Revenue for the year ended June 30, 2014 increased 5% to $1,144.0 million compared to the year ended
June 30, 2013 due to increases in sales across our product and service offerings. During the third quarter of 2014,
we rolled out significant pricing changes in two of our top markets: the U.S. and Germany. These changes were
designed to help us improve customer lifetime value and loyalty over time, but created near-term revenue
headwinds in the Vistaprint Business Unit for the second half of fiscal 2014, particularly in our third fiscal quarter.
The Vistaprint Business Unit delivered annual reported and constant-currency revenue growth of 4% 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.