The following is a summary of the Cimpress Plc (CMPR) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Cimpress reported a Q4 year-over-year revenue growth of 6% both on a reported and organic constant currency basis, with the full year revenue up by 7% on a reported basis and over 5% on an organic constant currency basis.

• Q4 Adjusted EBITDA increased by $5 million year-over-year to $119 million, overcoming one-time benefits from the previous year and currency headwinds.

• Full year Adjusted EBITDA rose by $129 million year-over-year to $469 million, a 38% increase, with adjusted EBITDA margins growing over 300 basis points to 14.2%.

• Adjusted free cash flow reached $117 million for Q4 and $261 million for the full year, marking the highest ever for a fiscal year and for a Q4.

Business Progress:

• Cimpress made strategic cost reductions and increased investment in capital expenditures to enhance production and supply chain operations.

• Achieved six consecutive quarters of growth in customer numbers and per customer value, particularly in the Vista segment, largely driven by improvements in customer experience and new product introductions.

• The company repurchased 1.7 million shares for $157 million, reducing shares outstanding by 7%, and finished the quarter with net leverage of just under 3.0x trailing 12-month EBITDA.

Opportunities:

• Plans to grow organic constant currency revenue at mid-single-digit rates, with adjusted EBITDA expected to grow slightly faster than revenue.

• Targeting a multiyear conversion rate of adjusted EBITDA to adjusted free cash flow of approximately 45% to 50%.

• Continued investment in capital expenditures (CapEx) to leverage scale-based advantages in production and supply chain, which includes investing in new product introductions and improving quality attributes.

Risks:

• Ongoing reseller disintermediation within the Print Group's Upload and Print segment, posing challenges in revenue growth due to shifting market dynamics towards direct-to-customer e-commerce models.

More details: Cimpress IR

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