CafePress Reports Results For Third Quarter 2016

CafePress Inc. (NASDAQ: PRSS) today reported financial results for the three months ended September 30, 2016.

Management Commentary

"CafePress' third quarter was highlighted by a 9% year over year increase in total orders, our highest volume for a non-peak quarter since 2014. While we have not turned the corner on revenue growth, we have substantially narrowed the net revenue decline. We believe that these are early proof points that we have positioned the company for a return to growth," commented Fred Durham, Chief Executive Officer.

"CafePress helps bring passions to life through unique and creative items and gifts. We are excited to share another holiday season filled with unique, creative gift ideas with our customers. Looking forward, we believe CafePress will continue to deliver steady improvements as we focus on growth channels and optimizing the customer experience," concluded Durham.

Third Quarter 2016 Financial Highlights 1
  • Net revenues totaled $19.2 million, down 2% compared to $19.5 million in the third quarter of 2015.
  • Gross profit margin was 41.5% of net revenues, compared to 41.1% in the third quarter of 2015.
  • GAAP net loss from continuing operations was $(3.4) million, or $(0.20) per diluted share, compared to a net loss of $(3.7) million, or $(0.21) per diluted share, in the third quarter of 2015.
  • Non-GAAP Adjusted EBITDA from continuing operations was $(0.9) million, compared to Adjusted EBITDA of $0.0 million in the third quarter of 2015.
  • Non-GAAP Contribution margin was 27.9% of net revenues, compared to 28.4% in the third quarter of 2015.

Cash and Share Repurchase Activity
  • Within the third quarter, the company repurchased approximately 77,000 shares of common stock totaling $0.2 million.
  • Since authorization of the program in the second quarter of 2015, the company has repurchased a total of approximately 1,155,000 shares of common stock totaling $4.9 million.
  • At September 30, 2016, cash, cash equivalents, and short-term investments totaled $36.0 million, or approximately $2.15 per share.

Third Quarter 2016 Operating Metrics
  • Average Order Value (AOV) was $31, an 11% year-over-year decline.
  • Orders totaled 0.6 million, a 9% year-over-year increase.

1Continuing operations includes results from CafePress.com and Retail Partners Channels. The Financial Highlights, Operating Metrics, and accompanying tables reflect the results of the Company's divestitures of its Art, Logo, and EZ Prints businesses in discontinued operations for all periods presented.

Please see "Non-GAAP Financial Information" for definitions of the terms Non-GAAP Adjusted EBITDA and Non-GAAP Contribution margin.

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