NASDAQ$CMPR

Cimpress Plc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Revenue declined but operating loss improved due to cost controls and non-recurrence of goodwill impairment.

Cimpress' Q3 FY2021 revenue decreased by 3% year-over-year, but GAAP operating loss improved significantly due to the non-recurrence of a goodwill impairment and cost controls. The company is seeing increased signs of recovery as pandemic restrictions ease in some markets.

  • Consolidated revenue was down 18% for the first two months of the quarter, but saw a pick up in demand in March and April in markets where pandemic restrictions have been lifted.
  • Vistaprint bookings in Australia grew approximately 10% for the third quarter, while bookings across European countries declined by approximately 7%.
  • The $1.15 billion Term Loan B offering is expected to facilitate refinancing of the 12% second lien debt.
  • Businesses are increasingly leveraging the mass customization platform (MCP) for the benefit of customers and financial performance.

Headline financials

Total Revenue

$579M

Previous: $598M-3.2%
EPS (adj)

-$1.50

Previous: $0.61-345.9%
Capital Expenditures

-$22.7M

Previous: -$38.6M+41.2%
Free Cash Flow

-$61.8M

Previous: -$124M+50.0%
Net Income

-$39.1M

Previous: -$84.9M+54.0%
Operating Income

-$15.7M

Previous: -$87.7M+82.1%
Gross Profit

$277M

Previous: $288M-4.0%
Cash & Equivalents

$36.4M

Previous: $228M-84.1%
Total Assets

$1.78B

Previous: $2.04B-12.6%
Stock-Based Comp

$9.55M

Previous: $8.89M+7.3%

Revenue & EPS history

Cimpress · Revenue · Quarterly

$579M

Q3 2021-3.2%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cimpress · $588M total across 5 segments · Q3 2021

  • Vista
    $327M+3.5%
  • PrintBrothers
    $94M-14.2%
  • National Pen
    $62.2M-9.0%
  • The Print Group
    $59.9M-12.5%
  • All Other Businesses
    $44.1M+12.3%

Forward guidance

Cimpress expects continued volatility in financial results due to pandemic-related restrictions, but anticipates higher year-over-year revenue growth as they lap depressed periods of demand from last year. Higher advertising spend and cash compensation costs are expected in Q4 FY2021.

Tailwinds

  • Month-to-date consolidated bookings through April 24, 2021, increased approximately 95% over the same period last year.
  • April month-to-date results through April 24, 2021, have been stronger than any month in Q3 FY2021, primarily driven by continued recovery in North America.
  • Permanent fixed cost reductions of over $30 million compared to pre-pandemic cost base remain in place.
  • Expect to refinance 12% second lien debt in May 2021 at materially improved interest rates.
  • Successful completion of Term Loan B transaction will bring liquidity onto the balance sheet.

Headwinds

  • Financial results will continue to experience volatility connected to the extent of pandemic-related restrictions.
  • Expect higher advertising spend year over year in absolute dollars and as a percent of revenue.
  • Expect materially higher cash compensation costs relative to Q4 FY2020.
  • Expect one more quarter of elevated cash interest expense related to the second lien debt in May 2021.
  • Expect the year-over-year adjusted EBITDA impact from currency to be negative in the fourth quarter due to less favorable average contracted rates on currency hedges relative to FY2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.6%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.3%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+24.2%

Q4 2020

Best reaction

-29.1%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+8.6%+12.8%+21.0%
Q2 2026+0.3%-1.7%-6.2%
Q1 2026+11.1%-1.0%+3.1%
Q3 2025-6.6%-4.6%+5.3%
Q2 2025-5.5%-18.4%-35.2%
Q1 2025-8.7%-2.6%+6.2%
Q4 2024+4.7%-8.8%+8.3%
Q3 2024-3.1%-2.2%-3.2%
Q2 2024+17.2%+15.3%+27.6%
Q1 2024-2.3%-5.5%+14.1%
Q4 2023+6.3%+8.5%-2.1%
Q3 2023+20.1%+17.2%+13.0%
Q2 2023-9.3%-6.2%+0.3%
Q1 2023-16.0%+1.4%+21.7%
Q4 2022+14.2%+13.6%+5.9%
Q3 2022-7.7%-9.6%-20.9%
Q2 2022-6.6%-6.5%-13.5%
Q1 2022-1.3%+2.0%-12.6%
Q4 2021-9.9%-10.6%-18.7%
Q3 2021+0.2%+2.3%+3.5%
Q2 2021+6.4%-10.9%-4.0%
Q1 2021-3.1%-2.2%+18.5%
Q4 2020+24.2%+17.9%+15.1%
Q3 2020+4.5%+3.6%+13.4%
Q2 2020-3.9%-3.4%-0.5%
Q1 2020+1.6%+7.8%-1.4%
Q4 2019+8.8%+7.9%+20.7%
Q3 2019-5.1%-4.3%-3.2%
Q2 2019-29.1%-29.8%-29.7%
Q1 2019-10.4%-10.4%-3.1%
Q4 2018-2.2%+0.5%-4.2%
Q3 2018-1.3%-2.9%-1.9%
Q2 2018+16.5%+21.8%+22.5%
Q1 2018+7.7%+8.9%+11.8%
Q4 2017-5.1%-3.9%-2.0%
Q3 2017-1.3%-3.8%+4.5%
Q2 2017-11.5%-12.5%-14.9%
Q1 2017-13.0%-13.0%-9.5%
Q4 2016-2.8%-0.5%+2.4%
Q3 2016-6.9%
Q2 2016+4.2%
Q1 2016+2.9%
Q4 2015-16.3%
Q3 2015+1.3%
Q2 2015+10.1%
Q1 2015+2.8%
Q4 2014+1.3%
Q3 2014-27.8%
Q2 2014-4.1%
Q1 2014+2.7%
Q4 2013-3.1%
Q3 2013+1.2%
Q2 2013-8.8%
Q1 2013-0.7%
Q4 2012+5.4%
Q3 2012-12.8%
Q2 2012+8.2%
Q1 2012-7.1%
Q4 2009-5.5%
Q4 2011-5.5%
Q3 2010+1.4%
Q3 2011+1.4%
Q2 2011+7.9%
Q1 2010+4.9%
Q1 2011+4.9%
Q4 2010+4.9%
Q2 2010+4.9%

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