Cimpress PLC (NASDAQ:CMPR) Q1 2024 Earnings Conference Call October 26, 2023 8:00 AM ET

Company Participants

Meredith Burns - VP, IR

Robert Keane - Founder, Chairman and CEO

Sean Quinn - EVP and CFO

Conference Call Participants

Operator

Welcome to the Cimpress Q1 Fiscal Year 2024 Earnings Call.

I will introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Meredith Burns

Thank you, Tanya, 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.

I hope you've all had a chance to read our earnings document published yesterday. We appreciate the time you have dedicated to understand our results, commentary, and outlook. This live Q&A session will last 45 minutes to an hour, and we'll answer both pre-submitted and live questions. You can 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 has joined us today. Before we take questions, I'll just highlight a few key points from the financial results and also the updated outlook that we published yesterday.

First of all, we delivered solid results in the first quarter. Consolidated revenue grew 8% on a reported basis and 4% on an organic constant currency basis. Growth did vary by segment and it was also reduced by approximately 200 basis points from year-over-year revenue timing changes.

Consolidated profits were very strong. Adjusted EBITDA grew $43 million year-over-year in Q1 to $89 million. Adjusted EBITDA margin was up from 6.5% last year to 11.7% this year. This benefited from gross margin expansion from leverage and advertising spend and reduced operating expenses.

Adjusted EBITDA expansion over the last three quarters has been very significant. Our trailing 12-month adjusted EBITDA at the end of September was $383 million, and that compares to $228 million at the end of December, a 68% increase in just nine months and still with a significant benefit from our prior cost reductions yet to impact those reported results.