Cimpress (CMPR) Q4 2024 earnings summary

Executive summary

• Q4 FY2024 saw consolidated revenue growth of 6% year-over-year on both reported and organic constant currency bases; full-year revenue grew 7% reported and over 5% organic constant currency.

• Adjusted EBITDA increased $5 million year-over-year in Q4 to $119 million, despite $3 million in currency headwinds and tougher comps; full-year Adjusted EBITDA rose $129 million to $469 million, a 38% increase, with $19 million in currency headwinds.

• Adjusted Free Cash Flow reached $117 million in Q4 and $261 million for the year, the highest ever for both periods, aided by strong profit growth and working capital inflows, including $17 million from a building sale.

• 1.7 million shares were repurchased in FY2024 for $157 million, reducing shares outstanding by 7% and lowering net leverage to just under 3.0x trailing twelve-month EBITDA.

Financial highlights

• Full-year Adjusted EBITDA margin improved by over 300 basis points to 14.2%, driven by revenue growth, gross margin expansion, and cost reductions.

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

• Run rate EBITDA growth in Q4 was higher than the reported $5 million 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.

• Plans for FY2025 include increased CapEx, especially in production and supply chain, within leverage policy guardrails.