Slide 1: Q2 Fiscal Year 2012 Earnings Presentation, Commentary & Financial Results Supplement
Exhibit 99.2 Q2 Fiscal Year 2012 Earnings Presentation, Commentary & Financial Results Supplement January 26, 2012
Slide 2: About this earnings commentary document
This document is Vistaprint’s second quarter fiscal year 2012 earnings commentary. Vistaprint has ceased to provide pre-recorded audio presentations based on the relative popularity of our downloadable presentations and transcripts. We have streamlined our commentary to a single PDF document that in
Slide 3: Safe Harbor Statement
SafeWebs under and strategy, materially guidance fluctuations systems current manage financial which quarter Harbor the we customers ended the and and covenants are Private are acquisitions from growth that Statement operations the based; subject, September those affect anticipated Securities and an
Slide 4: Safe harbor and non-GAAP note
Please read the above safe harbor statement. Additionally, a detailed reconciliation of GAAP and non-GAAP measures is posted in the appendix of the Q2 fiscal 2012 earnings presentation that accompanies these remarks.
Slide 5: Presentation Organization
Presentation results Non-GAAP Organization Live Q&A & Call Session: Details5:15 5 Presentation p.m. EasternOrganization: Link from theOperational IR section results of www.vistaprint.com Strategic highlights Hosted Financial by: Robert performance Keane President Q3 and FY12 & CEO guidance Ernst Teu
Slide 6: Presentation organization and categories
This presentation is organized into the following categories: • General commentary and review of Vistaprint’s Q2 operational performance • Updates from the quarter in light of the company’s well-communicated long-term investment strategy • Review of financial results • Financial guidance • Supplemen
Slide 7: Q2 Highlights
Q2 Highlights proposition quarter World 7 Organic class manufacturing business success LTVSolid based holiday marketing performance Foundations in allfor geographies future growth Strong Acquisitions customer acquisition to support foundations Gaining momentum for futureongrowth: core strategic Albu
Slide 8: Execution during biggest revenue quarter
We are pleased with our execution during our biggest revenue quarter of the year. We delivered strong organic results in the business across all geographies for both holiday and small business offerings, our consolidated revenue was in the upper half of our guidance range, and we had a record quarte
Slide 9: Quarterly Financial Results
Quarterly acquisition *amortization Per diluted Financial ofof share Webs, acquired *Results which Per diluted intangible closed 9 9 Revenue share December assets. * Per and Please diluted EPS 28, 2011. see results share reconciliation Non-GAAP for * Per thediluted consolidated adjusted to GAAP shar
Slide 10: Organic revenue record $284.2 million
Our organic revenue was strong at a record $284.2 million. This steep sequential increase in revenue is typical due to our seasonal holiday business. Combined with Albumprinter revenue of $15.7 million, Vistaprint’s total revenue on a consolidated basis was $299.9 million. From an earnings per share
Slide 11: Reinvigorating core growth
Reinvigorating product stream doorstep substrate Online substrate throughput and shipping &Growth offline quality time method through channels Site Q2 Examples: experience upgrades Core World Initiatives Class 30%+ Customer Manufacturing new 11 Customer service customer Life Value growth Achieve Tim
Slide 12: Multi-year growth strategy implementation
We are only six months into the implementation of that multi-year growth strategy so the various initiatives that constitute our overall strategy remain in their early stages. That being said, our progress in the December quarter illustrates the building of momentum across the board. One of the majo
Slide 13: Q2: Webs acquisition
Q2: Webs micro-business Webs acquiring Acquisition marketing 7M+ customers 13 Physical Great per talent, Social, yearfocused with Mobile, digital on Local digital products Web products Uniquely Long-term Provides positioned monetization 2nd pillar as aof via leader customer cross in digital sellacqu
Slide 14: Albumprinter and Webs acquisitions
In the last earnings call, three months ago, we announced the acquisition of Albumprinter. We are pleased that, by the end of the same quarter, we announced a second acquisition: Webs, Inc. Webs serves millions of customers through easy-to-use web, mobile and social marketing solutions, something we
Slide 15: Summary: Operational & Strategic Review
Summary: & advantage Operational shareholder& value Strategic Review 15 Pleased with Q2 FY2012 performance On track to deliver against FY 2012 targets for organic business Continue to focus on long-term growth Long term competitive
Slide 16: Operational and strategic performance summary
To summarize our operational and strategic performance, we are pleased with the strong results we had in Q2. Our results support our belief that we are putting into place the right strategy to enable Vistaprint to remain a strong growth company for years to come. This is a multi-year effort, so it i
Slide 17: Q2 FY2012 Key Financial Metrics
Q2 FYincrease acquisition acquired organic EPS^ 17.3% last 2012: constant intangible year^ ofKey Webs, ofcurrency decrease 9% Financial assets. which y/y $39.9 growth of Please closed Metrics* 6%million^ y/y$0.97 see $512.2 December reconciliation 17 7.8% *million Diluted Financial 28, net2011. 27%
Slide 18: Revenue and net income results
Turning to financials, Vistaprint generated revenues of $299.9 million in the second fiscal quarter, reflecting a 28% increase over the second quarter of the prior fiscal year. In organic constant-currency terms, excluding Albumprinter, this reflects 21% year over year growth for the business, in li
Slide 19: Organic vs acquired business results
Q2 FYincludes Growth Webs intangible 2012: calculated assets. Organic $1.6M Please using deal Business see Euro-based costs reconciliation and incurred Acquired results. intoQ2. Albumprinter GAAP Company Non-GAAP net Results income results adjusted 19 and include $299.9 EPS net at income all $0.82 t
Slide 20: Organic versus acquisition impact
The charts above separate our results on an organic basis versus the impact of the Albumprinter and Webs acquisitions for revenue, GAAP EPS and Non-GAAP EPS. For the initial reporting periods following these transactions, we believe this level of transparency is helpful for investors to understand h
Slide 21: Geographic Revenue
Geographic revenue in currency European 41% to the Segment segment. y/y U.S. growth Dollar. Revenue—Quarterly Note: 37% Please Constant y/y growth seecurrency reconciliation (constant (millions) basiscurrency) is to 47% estimated reported of total Revenue revenue by revenue translating results growt
Slide 22: Revenue performance by geography
Revenue performance by geography, inclusive of Albumprinter revenues, was as follows: • North American revenue was $139.8 million, reflecting 20% growth year over year as reported as well as in constant currency. • European revenue was $143.0 million, reflecting 36% growth year over year as reported
Slide 23: Income Statement Comparison to Prior Year
Q2 Income include dealStatement costs associated Comparison with the to Prior acquisition Year (as of aWebs, percentage which of closed revenue) December 23 Income 28, 2011. statement Consolidated for the consolidated business, including Albumprinter results since October 31, 2011 (date of purchase)
Slide 24: Income statement versus Q2 fiscal 2011
Looking at the Q2 fiscal 2012 income statement versus Q2 of fiscal 2011, one can see that as a percent of revenue: • Cost of revenue decreased 50 basis points year over year to 33.2% of revenue resulting in gross margin of 66.8%. Excluding Albumprinter, cost of revenue would have decreased to 33.0%
Slide 25: Income Statement Comparison to Prior Quarter
Q2 Income include dealStatement costs associated Comparison with the to Prior acquisition Quarter of(as Webs, a percentage which closed of revenue) December 25 Income 28, 2011.statement Consolidated for the consolidated business, including Albumprinter results since October 31, 2011 (date of purchas
Slide 26: Sequential income statement comparison
Looking sequentially at the Q2 fiscal year 2012 income statement versus the prior quarter, Q1 of fiscal 2012, one can see that as a percent of revenue: • Cost of revenue decreased by 360 basis points, translating to gross margin of 66.8%. The improvement was driven by the seasonal increase in revenu
Slide 27: Operational Metrics (Excludes Albumprinter and Webs)
Operational Metrics (Excludes Albumprinter and Webs) 27 Organic
Slide 28: Orders and average order value
This slide illustrates operating metrics that provide color on Vistaprint’s organic business during the quarter: Please note that none of the figures on this slide include Albumprinter or Webs. • Total orders processed in the quarter were approximately 8.3 million reflecting growth of 28% year over
Slide 29: Operational Metrics: new customers and COCA
Operational Metrics (Excludes Albumprinter and Webs) 29 2.9 Organic
Slide 30: Additional customer metrics
Additional customer metrics for the business on an organic basis, for the period ending December 31, 2011, are as follows: • Quarterly new customer adds were approximately 2.9 million, reflecting 32% year over year growth over the approximately 2.2 million new customer adds in Q2 of last fiscal year
Slide 31: Operational Metrics (cont.)
Operational Metrics (cont.) (Excludes Albumprinter and Webs) 31 10.0 10.6 11.1 11.4 11.9 *trailing twelve month at period end 12.9 Organic
Slide 32: Trailing twelve month customer metrics
Our customer metrics for the core business on a trailing twelve month basis are as follows: • On a TTM basis, unique customer count was 12.9 million, indicating 22% year over year growth of unique customers. First-time unique customers in the TTM period ending December 31, 2011 grew 20% year over ye
Slide 33: Cash Flow and ROIC Highlights
Cash Flow purchase). Cash) compensation transaction Net operating ** & costs, ROIC FCF expense in=millions Highlights* profit Cash andFlow after its$118.6 related taxes from Cash$209.6 tax (NOPAT) Operations Flow effect Consolidated & ROIC on Excess –NOPAT Capital Highlights* cash Balance 33 Expendi
Slide 34: Cash, cash flow and share repurchases
Cash and cash equivalents were approximately $67.5 million as of December 31, 2011. During the quarter, Vistaprint generated $81.1 million in cash from operations, compared with $73.9 million in the second quarter of fiscal 2011. Free cash flow was $66.4 million in the second quarter, slightly up fr
Slide 35: High Level Cash Movements
(CHART)ofQ2 payment RSU FY12: witholding High Level taxes, Cash tax Movements benefits from35SBC, Net Sources proceedsoffrom $227MM the exercise Net Uses of options of $321MM and effect Note:ofNet exchange organicrate cashonis cash operating Consolidated cash flow less interest expense, plus the net
Slide 36: Cash position and credit facility
Turning to more detail on our cash position, especially in light of the recent acquisitions, this chart lays out the uses of cash from last quarter to this quarter. At September 30, 2011, our beginning cash balance was $161 million. During the quarter, organic cash contributed $80 million and our cr
Slide 37: Balance Sheet Highlights
Balance Sheet Highlights Balance Sheet Highlights 37 Consolidated
Slide 38: Balance sheet highlights commentary
Over the last few quarters, we have discussed our intent to leverage our balance sheet in order to fund our long-term strategy investments. The balance sheet highlights, shown here, reflect the impact of these investments. Goodwill and intangible assets are up significantly from the prior period due
Slide 39: Financial Guidance
Financial related $246—$261 from growth ** GAAP FYexpenses, (decline) 2011 Guidance* share Revenue period count from amortization (as (46%)—(53%) growth for FYofQ3 2011 January isfrom ofperiod basic acquired FY 26, (108%)—(137%) shares (21%)—(26%) 2011 2012) intangible as period The we Company are 2
Slide 40: Guidance as of January 26, 2012
The table above is Vistaprint’s financial guidance as of January 26, 2012. This guidance reflects our expected market opportunity and our ongoing commitment to making investments for growth and competitive advantage. Vistaprint specifically disclaims any obligation to update any forward-looking stat
Slide 41: Financial Guidance (continued)
Financial compensation —$1,036 growth $0.14—$0.29 amounts(decline) and Guidance* $246—$261 asEPS related noted from growth Continued expenses, ** FY Revenue GAAP 2011 (decline) period amortization (as growth share of from count January (46%)—(53%) from FYfor of FY 2011 26, acquired Q3 2011 2012) per
Slide 42: Guidance assumptions
We are providing the assumptions noted on our guidance slide to facilitate comparisons with non-GAAP adjusted net income per diluted share. • Based on these assumptions, for the full fiscal year 2012, non-GAAP adjusted EPS, is expected to be between $1.71 and $1.83, and excludes expected acquisition
Slide 43: Drivers of updated guidance
Prior Driver Albumprinter Revaluations ** related Webs Fiscal Changes estimates andYear Albumprinter NA Acquisition since are Guidance ~$0.08 subject November ~$0.08 (excludes EPS vstoUpdated completion impact Total 2011 currency)** Change Guidance Fiscal includes of provisional Year from effect Rev
Slide 44: Review of guidance drivers
The table above reviews in more detail the drivers of our updated guidance. Our operational expectations for the organic Vistaprint business have not changed, and therefore we have narrowed the guidance range for revenue around the midpoint we set in July and maintained in October excluding currency
Slide 45: Capital Expenditures
Capital Expenditures $101M $37M 45 Consolidated Guidance (as of January 26, 2012) Expressed as percent of revenue FY 2012 Guidance: $60M—$70M 6%—7% of revenue guidance midpoint Actuals Guidance $63M $63M $76M $70M $60M
Slide 46: Capital expenditures guidance
This chart shows capital expenditures in dollars and as a percentage of revenue for the past several years, and also shows our expectations for 2012 at the midpoint of our revenue guidance range. We expect capital expenditures as a percentage of revenue and in absolute dollars to increase in 2012 ov
Slide 47: Summary
Summary Strong Q2 results Continued execution of strategy via disciplined investments On track for full fiscal year Well-positioned to capitalize on large market opportunity 47
Slide 48: Summary commentary
In summary, we are pleased to have delivered solid second quarter results. We are on track with our long-term strategy to improve our customer value, to drive further customer acquisition through lifetime value based marketing initiatives, to advance our manufacturing capabilities and to expand into
Slide 49: Q&A Session
Q&A Session Please go to the Investor Relations section of www.vistaprint.com for the live Q&A call at 5:15 pm EST on January 26, 2012
Slide 50: Thank you and live call details
We’d like to thank you for your time and attention, and we look forward to answering questions and comments on our live call at 5:15pm Eastern time.
Slide 51: Q2 Fiscal Year 2012 Financial Results Supplement
Q2 Fiscal Year 2012 Financial Results Supplement
Slide 52: Revenue (millions)
Revenue (millions) 21% ORGANIC y/y growth 28% including Albumprinter FY09 $516 29% y/y growth 52 FY10 $670 30% y/y growth FY11 $817 22% y/y growth YTD $512 27% y/y growth $284.2 excluding Albumprinter
Slide 53: Total Company Organic Growth Rates
Total Company period’s currency average growthOrganic exchange FY10 28% Growth rate constant-currency for Rates each(Excludes currency growth to Albumprinter) the53 U.S. FY11 Dollar. 22% Note:Please constant-currency Constant see reconciliation currencygrowth basistois YTD reported estimated 21%reve
Slide 54: Constant-Currency revenue reconciliation
Constant-Currency revenue reconciliation growthtoisreported estimated Organic revenue Growth by translating growth Ratesrates (Excludes all non-U.S. at the revenue end dollar of this from denominated presentation. Albumprinter revenue FY11 & Webs) generated 22% constant-currency 54 FY09 in the36% cu
Slide 55: Gross Margin and Gross Profit Excluding Albumprinter
Gross Margin and Gross Profit Excluding Albumprinter FY09 62.8% 55 FY10 64.2% FY11 64.8% YTD 65.4%
Slide 56: GAAP Net Income and Net Margin
GAAP Net Income and Net Margin FY09 $56 56 FY10 $68 FY11 $82 YTD $39.9
Slide 57: Non-GAAP Adjusted Net Income and Net Margin
Non-GAAP related tax effect Adjusted and amortization Net Income*ofand acquired Adjusted intangible Net Margin assets. FY09Please $76see *Non-GAAP reconciliation adjusted to GAAP net income net income per diluted at the end share of for thisall presentation. periods presented 57 FY10excludes $91 FY1
Slide 58: Share-Based Compensation (millions)
Share-Based understatement the YTD*reorganization $9.9 Compensation of share-based of our business (millions) compensation (announced * Share-based expense Octobercompensation from 2010). prior Theperiods charge (SBC)that did expense we notconcluded relate includes to any was SBC-related named not m
Slide 59: Revenue Seasonality (Excludes Albumprinter)
Revenue Seasonality (Excludes Albumprinter) * Home and family revenue are calculated using a product format-based approach 59
Slide 60: Q2 FY2012 Type-In Paid Bookings
Q2 FY 2012 Type-In Paid Bookings Search Other by Marketing Channels and Channel Partners (excludes Our Own Albumprinter Permission-Based bookings) email ~2.9Direct million URL newType- customers In First-time in Q2 FY2012 Order Bookings: Paid Search 33%Other Repeat Channels Order and Bookings: Partn
Slide 61: Q2 Capital Expenditure Breakdown
Q2 Capital digital printExpenditure lines, other printing Breakdownequipment, Q2 CapEx: pre-press $13.4Mand1 post-press 3 2 1 Land,equipment building and suchconstruction, as cutters, and leasehold automation improvements, equipment and 3 ITfurniture infrastructure, and fixtures software 2 All andma
Slide 62: Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 63: About Non-GAAP Financial Measures
Aboutfinancial following constant-currency effect, operating translating excludes financial Measures” these non-GAAP amortization information the activities measures all included impact non-U.S. measures. revenue financial less of defined of atprepared acquisition-related the currency dollar purchas
Slide 64: About non-GAAP forecasting
About non-GAAP forecasting Management should) relyand upon provides analyzing GAAP financial these statements future measures non-GAAP periods. ofcontinued. operations financial These non-GAAP Vistaprint’s measures and cash flow. as financial management a courtesy 64 measures tobelieves investors. a
Slide 65: Reconciliation: GAAP to Non-GAAP Results, Net Income Annual
Reconciliation: *Note: share-based GAAP compensation to Non-GAAP expense Results includes Reconciliation: tax effectsGAAP 65 to Non-GAAP Results Net Income – Annual ($ in thousands) *Fiscal 2005 non-GAAP results exclude a contract termination payment of $21mm
Slide 66: Reconciliation: GAAP to Non-GAAP Results, Net Income Quarterly
Reconciliation: GAAP to Non-GAAP Results Reconciliation: GAAP to Non-GAAP Results Net Income – Quarterly ($ in thousands) *Note: share-based compensation expense includes tax effects 66
Slide 67: Reconciliation: Earnings Per Share, Annual
Diluted$1.98 $1.83 $1.68 $0.99 Earnings Share-based $2.30Per $1.25 Share—Annual Weighted Compensation average Reconciliation: Pershares Share*used $0.09 GAAP in computing(millions) $0.18 to Non-GAAP $0.31 $0.43Results $0.49 42.651 $0.47 67 45.825 FY$0.23 2006 46.780 Amortization FY 2007 45.099 FY 45
Slide 68: Reconciliation: Earnings Per Diluted Share, Quarterly
Reconciliation: GAAP to Non-GAAP Results Reconciliation: GAAP to Non-GAAP Results Earnings Per Diluted Share—Quarterly *Note: share-based compensation expense includes tax effects 68
Slide 69: Reconciliation: Gross Profit and Margin
Reconciliation: FY11 Reported $195 66.3%$166 Q4 65.3% Gross FY11 $164 63.9% Gross Q1 Profit $171 FY12 63.2% Margin $234 Q2$204 67.0% FY12 Organic 63.5% $209 Reported 63.1% and $212Consolidated 63.6% $284 Revenue Organic 65.1% $128 *Note: 64.1% Gross $135 share-based Profit 63.6% $145 $81 $195 63.1%
Slide 70: Reconciliation: Free Cash Flow
Reconciliation: December $plant 66,441 and $equipment 31, 61,631 December Free $ 84,213 Cash (13,447) 31, Flow $December 64,495 (10,831) (in thousands) (24,445) 31, December 70(24,978) Three 31,Months Purchases December Ended of31, intangibles Three December Months assets 31,Ended 2011 (42) 2010 Thr
Slide 71: Reconciliation: Quarterly Constant-Currency Revenue Growth
Reconciliation: FY11 growth 42% using41% the Q1inprior FY12 constant 30% year 31% Total Q2currency FY12 period’s 31% Company 32% Reported 42% average 25% Constant-Currency 41% revenue 22% exchange 30% 20% 31% growth 23% rate 31%Revenue for 22% 44%32% each 20% 32%25% currency Growth 20% 21%22% 21% 22
Slide 72: Reconciliation: Annual Constant-Currency Revenue Growth
Reconciliation: (2%) Constant-currency dollar. Revenue growth Total revenue Company in constant growth Constant-Currency currency is estimated 36%by28% translating Revenue 22% 25% Growth allImpact non-U.S. Rates of acquisition dollar Annualdenominated & YTD to growth 72 FY2009 revenue in constant FY
Slide 73: Reconciliation: Non-US Revenue Growth
Reconciliation: FY11 7% ———————— dollar 6%Q2 denominated (2%) FY11 (16%) Non-US Q3 FY11 revenue (11%)—Consolidated (13%) Constant-Currency Q4Organic generated FY11 Q1 growth inFY12 the revenue in Revenue current Q2 constant FY12 growth period Growth currency Consolidated inusing constant Rates 65% t
Slide 74: Reconciliation: Non-US Revenue Growth Q2 FY2012
Reconciliation: generated impact—— in Revenue theNon-US current growth period Constant-Currency inusing constant the prior currency Revenue year19% period’s Growth 36%average 28% Rates Impact and exchange Reported of acquisition rateGrowth for each to growth Rates currency 74inNote: constant to theC
Slide 75: Reconciliation: Geographic Segment Revenue Growth
Reconciliation: 41% generated 28% in Currency theGeographic current impact—1% period Segment using (4%)—Revenue the Constant-Currency prior yeargrowth period’s Revenue inaverage constant Growth exchange currency Rates rate 20% and for 37% Reported each 37% currency 28% Growth Note: to Rates theConst