Cimpress plc (NASDAQ:CMPR) Q3 2024 Earnings Conference Call May 2, 2024 8:00 AM ET

Company Participants

Meredith Burns - Vice President of Investor Relations and Sustainability
Sean Quinn - Executive Vice President and Chief Financial Officer
Robert Keane - Chairman and Chief Executive Officer

Conference Call Participants

Operator

Welcome to Cimpress' Third Quarter Fiscal Year 2024 Earnings Call. I will introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Meredith Burns

Thank you, Amber, and thank you, everyone, for joining us. With us today on the call are Robert Keane, Founder, Chairman and Chief Executive Officer; and Sean Quinn, EVP and Chief Financial Officer.

We appreciate the time that you've dedicated to understand our results, commentary and outlook. This live Q&A session will last about 45 minutes and we'll answer both presubmitted and live questions. You can submit questions live via the questions and answers box at the bottom left of the 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 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, along with historical financial results. We invite you to read them.

And now I'll turn things over to Sean.

Sean Quinn

Great. Thanks a lot, Meredith, and thanks to everyone who's joined us today. We're on a recording. Before we take any questions that you have, I'm just going to highlight a few key points from our earnings document that we published yesterday. Cimpress delivered strong results in the third quarter. Consolidated revenue grew 5% on a reported basis and 4% on an organic constant currency basis. The timing of the Easter holiday, which was at the end of Q3 this year versus Q4 last year, had about $6 million of impact or 80 basis points of negative impact on consolidated organic revenue growth for the quarter. So the underlying consolidated revenue growth trends were consistent with what we've seen year-to-date.

Adjusted EBITDA grew $25 million year-over-year in Q3 to $94 million, and our adjusted EBITDA margins were up nearly 300 basis points to just over 12% this year, driven by continued gross margin expansion, but also operating expense efficiency. From a segment perspective, we saw an improved trend for our Upload & Print businesses and also for National Pen, both despite a tough Q3 comp for those businesses and growth in our all other businesses remain flat, where there are puts and takes beneath the surface consistent with the last few quarters. We had a pretty submitted question on that, so we'll get into a little bit of detail there.