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CafePress Reports First Quarter 2013 Results

Stocks in this article: PRSS

LOUISVILLE, Ky., May 2, 2013 (GLOBE NEWSWIRE) -- CafePress Inc. (Nasdaq:PRSS), The World's Customization Engine ®, today reported financial results for the three months ended March 31, 2013.

"CafePress posted a strong first quarter with robust year-over-year net revenue growth of 32%," said Chief Executive Officer Bob Marino. "We experienced strong demand for customized products across all of our businesses and particularly strong growth in our e-commerce activities for strategic partners and corporate shops. Our manufacturing consolidation is on track and our investment in operations should drive gross margin expansion as we exit 2013. Looking ahead, we intend to drive growth by exposing more consumers to our wealth of customizable on-demand products via search, social and mobile channels -- not only on the CafePress family of brands but by enabling customization wherever e-commerce occurs."

First Quarter 2013 Financial Highlights

  • Net revenues totaled $52.5 million, compared to $39.9 million in the first quarter of 2012.
  • Adjusted EBITDA was $0.1 million, compared to $2.8 million in the first quarter of 2012.
  • Gross profit margin was 37.4% of net revenues, compared to 42.5% in the first quarter of 2012.
  • GAAP net loss was $(4.0) million (including stock-based compensation, amortization of intangible assets, and acquisition costs), compared to a loss of $(0.5) million in the first quarter of 2012.
  • GAAP net loss per diluted share was $(0.23), compared to $(0.06) in the first quarter of 2012.
  • Non-GAAP net loss (excluding stock-based compensation, amortization of intangible assets and acquisition costs) was $(1.4) million, compared to non-GAAP net income of $0.9 million in the first quarter of 2012.
  • Non-GAAP net loss per diluted share was $(0.08), compared to non-GAAP net income per diluted share of $0.06 in the first quarter of 2012.
  • At March 31, 2013, cash, cash equivalents, and short-term investments totaled $26.1 million. The Company is comfortable with its cash position and expects to generate significant cash from operations in the fourth quarter, ending 2013 with a strong balance sheet. 

First Quarter 2013 Operating Metrics

  • Orders totaled 1,429,106, a 70% year-over-year increase, including the consolidation of EZ Prints, Inc. into CafePress' business.
  • Average Order Size (AOS) was $35 including the consolidation of EZ Prints, a 27% decrease year-over-year, reflecting the smaller order size of the EZ Prints B2B business. AOS excluding the impact of EZ Prints was $53, a 10% increase year-over-year.

Recent Operating Highlights

  • Announced CafePress Services to provide turnkey, unique e-commerce solutions for corporate partners.
  • Integrated CafePress products into the popular Facebook Gifts marketplace.
  • Signed agreement to develop corporate shop and custom online experiences for Marvel Entertainment, LLC, including the Iron Man 3 movie.
  • Launched new corporate shops for Paramount Pictures, including the upcoming movie World War Z, and for children's entertainment network Sprout®.
  • Enabled personalization and customization tools on consumer products company Jarden Corporation for Crock-Pot.com including designs showcasing all 32 NFL teams.
  • Expanded the relationship with long-time partner Iconix Brand Group, Inc. to create a state-of-the-art website and leverage the Peanuts® brand on CafePress.com and other channels.
  • Partnered with interactive ecommerce company Delivery Agent, Inc. to add customized products and technology tools to more than 40 entertainment sites including Discovery Channel, The History Channel and CBS.
  • Expanded relationship with Getty Images to include portfolio of work in the CafePress.com marketplace.
  • Added Fan Portals for fans to design and create user-generated merchandise, including both Elvis Presley and Army-inspired merchandise due to partnerships with Elvis Presley Enterprises and the US Army, respectively.
  • Increased the number of products and base goods on CafePress.com including categories such as home, apparel and automobile accessories.

Business Outlook

"Given the strong start to 2013, we are raising our full year revenue guidance," said Monica Johnson, Chief Financial Officer. "Our second quarter guidance reflects a shift in the historical weighting of our business due to the revenue and profit seasonality of newly acquired businesses, the expected timing of partner programs and the continued investment in the consolidation of our manufacturing operations. All of these factors point toward a higher percentage of revenue and profit in the fourth quarter for CafePress." 

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