Cimpress (CMPR) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 results for revenue, adjusted EBITDA, and adjusted free cash flow, with Q4 performance capping the year and consolidated revenue up 6% year-over-year; full-year revenue grew 7% reported and over 5% organic constant currency.

• Adjusted EBITDA increased $5.4M year-over-year in Q4 to $119.4M, despite $3.1M in currency headwinds; full-year Adjusted EBITDA rose $128.9M to $468.7M, a 38% increase, with $18.8M in currency headwinds.

• Adjusted Free Cash Flow reached $116.8M in Q4 and $261.1M for the year, both record highs, aided by strong profit growth, working capital inflows, and $16.8M from a building sale.

• Reduced net leverage to just under 3.0x trailing twelve-month EBITDA, down from 3.9x a year ago, and increased liquidity with $208.3M in cash and marketable securities.

• Repurchased 1.7M shares in FY2024 for $157M, reducing shares outstanding by 7%.

Financial highlights

• Q4 FY2024 revenue grew 6% year-over-year to $832.6M; operating income rose $12.4M to $66.3M; adjusted EBITDA increased $5.4M to $119.4M.

• Full-year FY2024 revenue up 7% to $3.29B; operating income up $190M to $247.4M; adjusted EBITDA up $128.9M to $468.7M.

• Q4 consolidated gross profit grew $28M year-over-year; advertising spend increased $9M, mainly in Vista.

• Q4 operating cash flow up $63.3M to $125.1M; adjusted free cash flow up $82.1M to $116.8M, including $16.8M from a building sale.

• Run rate EBITDA growth in Q4 was higher than the reported $5M increase after normalizing for currency and one-time items.

Outlook and guidance

• Multi-year outlook remains positive and unchanged, with expectations for mid-single digit organic constant currency revenue growth and adjusted EBITDA to grow slightly faster than revenue.

• Multi-year conversion rate of adjusted EBITDA to adjusted free cash flow expected at 45%-50%, with annual fluctuations.

• Targeting net leverage at or below 2.5x trailing-twelve-month EBITDA, possibly reaching this in FY2025.

• FY2025 cash interest expense expected to be $12M lower; cash taxes to benefit from a $10M refund; working capital changes to be a less favorable cash source.

• Increased CapEx planned for FY2025, focused on production efficiency, new product introductions, and quality improvements, within leverage policy guardrails.