This Report contains forward-looking statements that involve risks and
uncertainties. The statements contained in this Report that are not purely
historical are forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, including but not limited to our statements about the anticipated growth
and development of our businesses and financial results, including
profitability, cash flows, liquidity, and capital allocation; the expected
effects of our cost reductions and recent restructuring, including future cost
savings and restructuring charges; the expected impacts of our mass
customization platform; the expected effects of mid- and upper-funnel
advertising in Vista; sufficiency of our liquidity position; legal proceedings;
and sufficiency of our tax reserves and expectation pf a reduction in
unrecognized tax benefits. Without limiting the foregoing, the words "may,"
"should," "could," "expect," "plan," "intend," "anticipate," "believe,"
"estimate," "predict," "designed," "potential," "continue," "target," "seek" and
similar expressions are intended to identify forward-looking statements. All
forward-looking statements included in this Report are based on information
available to us up to, and including the date of this document, and we disclaim
any obligation to update any such forward-looking statements. Our actual results
could differ materially from those anticipated in these forward-looking
statements as a result of various important factors, including but not limited
to flaws in the assumptions and judgments upon which our forecasts and estimates
are based; the development, severity, and duration of supply chain constraints,
inflation, and the lingering effects of the COVID-19 pandemic; the failure of
our cost reductions to affect our financial results as expected; our inability
to make the investments that we plan to make or the failure of those investments
to achieve the results we expect; our failure to execute on the transformation
of the Vista business; loss of key personnel or our inability to recruit
talented personnel to drive performance of our businesses; costs and disruptions
caused by acquisitions and minority investments; the failure of businesses we
acquire or invest in to perform as expected; our failure to develop and deploy
our mass customization platform or the failure of the platform to drive the
efficiencies and competitive advantages we expect; unanticipated changes in our
markets, customers, or businesses; changes in the laws and regulations, or in
the interpretation of laws and regulations, that affect our businesses; our
failure to manage the growth and complexity of our business and expand our
operations; our failure to maintain compliance with the covenants in our debt
documents or to pay our debts when due; competitive pressures; general economic
conditions, including the possibility of an economic downturn in some or all of
our markets; and other factors described in this Report and the documents that
we periodically file with the
Executive Overview
As of
We announced plans on
Financial Summary
The primary financial metric by which we set quarterly and annual budgets both
for individual businesses and
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"Consolidated Results of Operations" and "Additional Non-GAAP Financial
Measures" sections of Management's Discussion and Analysis. A summary of these
key financial metrics for the three and nine months ended
Third Quarter Fiscal Year 2023
•Revenue increased by 13% to
•Constant-currency revenue increased 16% when excluding the revenue of acquired companies for the first twelve months after acquisition (a non-GAAP financial measure).
•Operating income increased by
•Adjusted EBITDA (a non-GAAP financial measure) increased by
•Diluted net loss per share attributable to
Year to Date Fiscal Year 2023
•Revenue increased by 6% to
•Constant-currency revenue increased by 12% and 11% when excluding the revenue of acquired companies for the first twelve months after acquisition (both non-GAAP financial measures).
•Operating income decreased by
•Adjusted EBITDA (a non-GAAP financial measure) decreased by
•Diluted net loss per share attributable to
•Cash provided by operating activities decreased by
•Adjusted free cash flow (a non-GAAP financial measure) decreased by
For the three months ended
For the three months ended
Adjusted EBITDA increased year over year for the three months ended
Diluted net loss per share attributable to
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year impact from the net effect of unrealized currency losses caused by exchange rate volatility that more than offset realized gains recognized in the current quarter.
During the nine months ended
Adjusted free cash flow decreased year over year by
Consolidated Results of Operations
Consolidated Revenue
Our businesses generate revenue primarily from the sale and shipment of customized products. We also generate revenue, to a much lesser extent (and primarily in our Vista business), from digital services, graphic design services, website design and hosting, and email marketing services, as well as a small percentage of revenue from order referral fees and other third-party offerings. For additional discussion relating to segment revenue results, refer to the "Reportable Segment Results" section included below.
Total revenue and revenue growth by reportable segment for the three and nine
months ended
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