Vistaprint Q3 Profit Rises, Lifts FY11 Outlook

Vistaprint N.V., an online provider of professional marketing products and services to micro businesses and the home, announced financial results for the three month period ended March 31, 2011, the third quarter of its 2011 fiscal year.

"Vistaprint just completed a very strong third quarter," said Robert Keane, president and chief executive officer. "Earnings exceeded our expectations for three reasons: total revenue that was higher than our previous guidance, gross margin improvements that are the result of prior decisions to invest in manufacturing and procurement capabilities, and a delay in the timing of planned operating expenses."

Keane continued, "Additionally, though it is still very early, we are progressing against the multi-year growth strategy we outlined at our recent investor day in New York. During the quarter, we researched and tested initiatives to deliver greater value to our customers; we moved forward to further drive manufacturing excellence; we invested more in established marketing channels; and we tested investments in new marketing channels."

Financial Metrics:
• Revenue for the third quarter of fiscal year 2011 grew to $203.7 million, a 23 percent increase over revenue of $166.0 million reported in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations, total revenue grew 22 percent from the same quarter a year ago.

• Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the third quarter was 65.3 percent, compared to 64.1 percent in the same quarter a year ago.

• Operating income in the third quarter was $25.6 million, or 12.6 percent of revenue, which was a 44 percent increase compared to $17.8 million, or 10.7 percent of revenue in the same quarter a year ago.

• GAAP net income for the third quarter was $22.9 million, or 11.3 percent of revenue, a 42 percent increase compared to $16.2 million, or 9.7 percent of revenue in the same quarter a year ago.