Cimpress plc (NASDAQ:CMPR) Q2 2024 Earnings Call Transcript
Cimpress plc (NASDAQ:CMPR) Q2 2024 Earnings Call Transcript February 1, 2024
Cimpress plc isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Welcome to the Cimpress Q2 Fiscal Year 2024 Earnings follow-up call. I will introduce Meredith Burns, Vice President of Investor Relations and Sustainability.
Meredith Burns : Thank you, Michelle, and thank you everyone for joining us. With us today are Robert Keane, our Founder; Chairman and Chief Executive Officer and Sean Quinn; EVP and Chief Financial Officer. We really appreciate the time that you have dedicated to understand our results, commentary and outlook. This live Q&A session will last about 45 minutes and will answer both pre-submitted and live questions. You could submit questions live via the questions and answers box at the bottom left of your screen. Before we start, I'll note that in this session, we will make statements about the future. Our actual results may differ materially from these statements due to risk factors that are outlined in detail in our SEC filings and in the documents we published yesterday on our website.
We also have published non-GAAP reconciliations for our financial results and outlook on our IR website. We invite you to read them. And now I will turn things over to Sean for some brief remarks before we take questions. Sean?
Sean Quinn : Thanks a lot, Meredith, and thanks to everyone who's joined us today or on the recording. Before I take your questions along with Robert and Meredith, just want to highlight a few key points from the financial results and the updated outlook that we published yesterday. First of all, Cimpress delivered strong results in the second quarter. Our consolidated revenue grew 9% on a reported basis and 6% on an organic constant currency basis. Adjusted EBITDA grew $55 million year-over-year in Q2 to $266 million and adjusted EBITDA margins were up nearly 500 basis points to 18.1% this year with gross margin expansion, leverage in advertising spend and reduced operating expenses. That was also helped by more favorable input costs compared to last year, and there were also a few beneficial year-over-year improvements that will not repeat that we called out in the earnings document as well.
Adjusted free cash flow for the quarter increased significantly year-over-year by $96 million with the higher adjusted EBITDA, but also significantly more favorable net working capital compared to the year ago period, which was helped by the normalization of our working capital trends. While we had growth in EBITDA across all of our segments, as you would have seen in the release, Vista experienced significant profitability expansion on strong results for its holiday peak. Vista's revenue grew 9% on an organic constant currency basis, which was better than expected. We saw strong growth across business product categories, but we also had 7% growth in our consumer products category. We continue to benefit from the range of improvements made in recent years that we talked about extensively in our last two Investor Days.
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