VPRT

Vistaprint N.V. (VPRT)

$47.64
*  
0.94
1.93%
Get VPRT Alerts
*Delayed - data as of Aug. 28, 2014  -  Find a broker to begin trading VPRT now
Exchange: NASDAQ
Industry: Miscellaneous
Community Rating:
View:    VPRT Pre-Market
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

Vistaprint N.V. (VPRT)

Q3 2013 Earnings Call

April 25, 2013 5:15 pm ET

Executives

Ernst J. Teunissen - Chief Financial Officer, Executive Vice President and Member of Management Board

Trynka Shineman

Robert S. Keane - Founder, Chairman of The Management Board, Chief Executive Officer and President

Analysts

Youssef H. Squali - Cantor Fitzgerald & Co., Research Division

Brian Patrick Fitzgerald - Jefferies & Company, Inc., Research Division

Carter Malloy - Stephens Inc., Research Division

Mitchell O. Bartlett - Craig-Hallum Capital Group LLC, Research Division

Presentation

Operator

Ladies and gentlemen, welcome to the Vistaprint Third Quarter Fiscal Year 2013 Q&A Earnings Conference Call. My name is Patrick, and I'll be your operator for today. This call is being hosted by Robert Keane, President and CEO; and Ernst Teunissen, Executive Vice President and CFO.

Before we take the first call, as noted in the Safe Harbor statement at the beginning of the earnings presentation, comments may include forward-looking statements, including statements regarding revenue and earnings guidance, and actual results may differ materially. Risk that could impact those statements are described in the documents that are periodically filed with the Securities and Exchange Commission.

Now we'll proceed with the first call.

Question-and-Answer Session

Operator

And gentlemen, your first call comes from the line of Youssef Squali with Cantor Fitzgerald.

Youssef H. Squali - Cantor Fitzgerald & Co., Research Division

2 questions, please, maybe starting with Ernst. Just a clarification, can you just please expand on your EPS and guidance for the June quarter and why do you expect it to be -- or to come in at a lower EPS in Q4 than in Q3? And then just broadly speaking, I know you're not guiding to 2014 just yet, but as you look at the business historically, you've talked about 20% growth. Is there any reason why at least we shouldn't see some sustainability in growth in 2014 over 2013, or is that still off the table?

Ernst J. Teunissen

So we have increased our guidance for EPS for the full year, as you can see, by $0.10 and that was really on the back of very good performance in the third quarter. We saw some favorability on margins. We saw some advertising favorability. We have good gross margins. And you're correct, if you look at the fourth quarter, you see that there is, on a GAAP basis, the parts have arranged [ph] actually indicate potential loss and that is because we have some expenses in the fourth quarter. The timing is not always perfect quarter-to-quarter that we can see. There are some nonrecurring expenses that are going to happen in the fourth quarter, and there's some operational expenses that we see happening in the fourth quarter as well.

Youssef H. Squali - Cantor Fitzgerald & Co., Research Division

Can you expand on that just a little bit on those expenses, just the nature of them?

Ernst J. Teunissen

Some of -- there are some balance sheet related charges, and some are some projects that we're doing that we -- and some research that we're doing that we incur expenses for in the fourth quarter.

Trynka Shineman

The other thing, Youssef, to note is that our revenue at the midpoint of the Q4 revenue guidance range is $17 million lower than our revenue in Q3.

Youssef H. Squali - Cantor Fitzgerald & Co., Research Division

Okay. And then on the revenue, the 2014 question?

Robert S. Keane

So on 2014, I want to stay away from giving guidance for '14. We'll do that obviously 3 months from now. We have just started to see some signs of stabilization in Europe in execution. Well, we have said that turnaround would be a longer-term effort, and we continue to believe that. In APAC, our growth is slow. That's partly self-inflicted because we've made some significant changes to our pricing and marketing and merchandising approach. In North America, we're executing well. We have seen growth in the mid to high teens, and we haven't [ph] seen yet the strong retention improvements that we would like to see long term, but we've been fairly consistent in our North America performance to date, and we'll say more in 3 months where we see that go in '14.

Operator

Your next question comes from the line of Brian Fitzgerald with Jefferies.

Brian Patrick Fitzgerald - Jefferies & Company, Inc., Research Division

A couple of quick questions. As you've kind of taken your foot off the gas in terms of more aggressive marketing to attract a higher-valued customer in North America, what do you think the right level of repeat rate you would feel comfortable with? And then secondly, in Europe, can you segment that a bit for us? Is there a country or countries over there where your marketing strategy is generating the higher AOVs as you'd like to see?

Robert S. Keane

Just to be sure, your first question, we are not taking our foot off the gas in terms of investment that are meeting our hurdle rates. We have pulled back on advertising a bit where we found that we were spending in programs that were not where we wanted them to be. But the North American business continues to be very strong, and we see it coming in where we hope it to be -- we hoped that it would be when we looked at the business 12 and 24 months ago. Clearly, in Europe, we are having these challenges we've spoken about for quite some time now. We really see Europe as requiring us to step back and build proper -- a really proper foundation of systems and processes and organization, and we are making a lot of progress on that. In terms of advertising that's targeted at a high value or lower-value customers, we don't really target our advertising that way, so to speak. There are certain channels who will, in a targeted word, search that might have very high-value customers, but we have not done anything to strategy to change what we've done in the past there. We manage all our advertising on a cash flow return or an LTV basis relative to the cohort that we're acquiring.

Read the rest of this transcript for free on seekingalpha.com