NASDAQ$CMPR

Cimpress Plc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cimpress delivered strong Q3 financial results driven by revenue growth and margin expansion.

Cimpress delivered strong financial results in the third quarter, driven by a combination of revenue growth, gross margin expansion, and year-over-year operating expense efficiencies. The company's outlook remains positive.

  • Revenue grew 5% on a reported basis and 4% on an organic constant-currency basis.
  • Consolidated operating income increased $51.4 million year over year to $39.2 million.
  • Adjusted EBITDA increased $25.0 million year over year to $94.2 million.
  • The company repurchased 1.1 million shares for $100.7 million during the third quarter.

Headline financials

Total Revenue

$781M

Previous: $742M+5.2%
EPS

-$0.15

Previous: -$1.88+92.0%
Adj. EBITDA Margin

12.0%

No prior period
Capital Expenditures

-$44.4M

Previous: -$37.5M-18.5%
Free Cash Flow

-$48.4M

Previous: -$86.8M+44.2%
Net Income

-$3.98M

Previous: -$49.3M+91.9%
Operating Income

$39.2M

Previous: -$12.2M+421.7%
Gross Profit

$376M

Previous: $347M+8.3%
Cash & Equivalents

$154M

Previous: $115M+34.2%
Total Assets

$1.78B

Previous: $1.89B-5.8%
R&D Expense

$83.8M

No prior period
Stock-Based Comp

$18.4M

Previous: $8.73M+110.6%

Revenue & EPS history

Cimpress · Revenue · Quarterly

$781M

Q3 2024+5.2%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Cimpress · $355M total across 4 segments · Q3 2023

  • PrintBrothers
    $140M+16.3%
  • The Print Group
    $85.5M+13.5%
  • National Pen
    $81.1M+12.3%
  • All Other Businesses
    $49M+1.1%

Forward guidance

Cimpress expects to grow consolidated constant-currency organic revenue on an annual basis at mid-single-digit growth rates, possibly a little higher. They also expect to drive further adjusted EBITDA margin leverage, resulting in annual adjusted EBITDA that grows slightly faster than revenue. The annual conversion rate of adjusted EBITDA to adjusted free cash flow is expected to be approximately 45% to 50%.

Tailwinds

  • Anticipates mid-single-digit growth rates in consolidated constant-currency organic revenue annually.
  • Expects adjusted EBITDA to grow slightly faster than revenue, indicating improved profitability.
  • Projects an annual conversion rate of adjusted EBITDA to adjusted free cash flow to be approximately 45% to 50%.
  • Plans to continue with roughly similar levels of operating expense growth investment as the current run rate.
  • Aims to increase capital expenditures based on opportunities seen for new products and productivity-enhancing production equipment.

Headwinds

  • Fluctuations within the 45% to 50% range for the annual conversion rate of adjusted EBITDA to adjusted free cash flow from year to year.
  • Potential for increasing leverage to as high as approximately 3.0x for investments.
  • Possible exit from FY2025 with net leverage at or below approximately 2.75x if attractive opportunities for share repurchases continue.
  • Net leverage target at or below approximately 2.5x trailing-twelve-month EBITDA as defined by their credit facility.
  • Not planning to deploy significant capital to M&A.

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 2024

Historical avgQ3 2024

-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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