Cimpress PLC (CMPR) 2025 Q1 法說會逐字稿

Welcome to the Cimpress quarter one fiscal year 2025 Earnings Call. I will introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Thank you, Michell and thank you, everyone, for joining us and Happy Halloween to those you celebrate. With us today are Robert Keane, Founder, Chairman and Chief Executive Officer and Sean Quinn EVP and Chief Financial Officer. We appreciate the time that you have dedicated to understand our results, commentary and outlook. This live question and answer session will last about 45 minutes and we will answer both pre-submitted and live questions. You can submit questions via the live questions and answers box at the bottom left of the screen. Before we start, I will 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 have also published Non-GAAP reconciliations for our financial results on our website as well. We invite you to read them and now I will turn things over to Robert.

Thank you, Meredith, and thank you to all of you for joining us. Sean in a moment is going to speak about our first quarter financial results. But first, let me share some personal insights on how across impress are talented and are engaged. Team members are driving significant customer value and efficiency through focused execution. And this call in particular is a great time to do so because I personally have just spent the month of October visiting over 20 different Cimpress locations across North America and Europe. And the observations I want to share with you today are coming really straight from the front lines.

So first of all, we are continually improving our customer experience. For example, in the past week, I sat side-by-side with team members from product development, with front line designers, with service team members, who all showed me improvements. They are driving to things like file revision and design creation and file upload processes.

And as an even more specific example, in one sit down session, I was with one of our designers in our team in Tunisia and he was designing beautiful product labels for a high-value customer in our Upload and Print group, who was extending her line of aroma therapy products, and these are capabilities. We simply did not have a few years ago.

Second, we are driving efficiency, improving quality, increasing speed of delivery across the value chain. And as part of that month of travel, I was at about a dozen of our production facilities and no matter what size of facility or what product focus, team members consistently demonstrated a combination of continuous improvement and capital investment which together are reducing costs and improving quality.

Third, we are growing lifetime customer value and the lifetime value of our customers as well as our revenues through more complex products and supporting those complex products with customer experience improvements. For example, I visited our team in Europe, who is responsible for flexible packaging and our US team who is leading our drive into corrugated packaging. Both of these are small currently, but they are potentially large product categories in which we are currently growing at well over 25% a year.

And the average lifetime value of these customers is many times our typical or our average customer and almost all of these packaging, customers are small and medium-sized businesses who form the core of Cimpress' total addressable market.

Fourth, I really saw firsthand how Vista has continued building momentum based on the foundations we have been investing in for 5 years or more and that includes a modern flexible technology and data Jinfrastructure, the strengthening of vista's product development capabilities and the repositioning of Vista print away from the previous discount driven brand image. And the results are really an improved customer experience that attracts and retains high value customers.

During my travels, team members who are part of the Vista teams who are driving growth in packaging and logo, apparel and large format, walked me through production floor operations where I could personally touch and feel these gorgeous quality products of countless real life customers in these important growth categories. And last but not least across all my visits, I saw how our select few shared strategic capabilities are really deeply integrated into the ways of working and they are helping us drive customer value and competitive advantage.

As one of 2 examples, I will describe I was at an equipment supplier with a capital equipment specialist from our global procurement team and multiple leaders from 2 different reporting segments. And we were at a half-day deep dive at the engineering facility of an innovative equipment supplier with whom we are working to develop yet even more innovation applications for a new product category we are working on.

And likewise in all my visits to our facilities, I saw how our businesses are leveraging MCP's functionality for artwork, for E-commerce, for fulfillment operations for cross film across I fulfillment and for data.

So 3 months ago, sim price completed our record best fiscal year in terms of revenue and profitability and looking forward the type of focused execution that I am describing today, which I personally saw over the last month.

And our clear and consistent strategy makes us confident that in fiscal '25 we are going to again set new records for both revenue and profits.

More importantly, the type of frontline talent and the initiatives that I have had the pleasure of seeing. Reassure me that for many years to come, we can relentlessly improve the value we deliver to our customers and strengthen our print mass customization capabilities. And in doing so, we expect to continue to earn market share gains in this very large fragmented landscape where traditional competitors still account for the majority of the market.

With that, Sean. Let me turn it over to you to talk about our first quarter financial results.

Thanks a lot, Robert and thanks for that summary. To start, and as we noted in the earnings document that we released after the market yesterday, suppress delivered solid results for the quarter, consolidated revenue grew 6% on both a reported basis and an organic constant currency basis adjusted EBITDA declined slightly year over year in quarter one to $88 million inclusive of currency headwinds of just under a million dollars.

The obvious question that we would expect from investors is with the context of our multiyear commentary that we have provided. Why did not we see the revenue growth that I just mentioned translate into increased profitability, specifically increased adjusted EBITDA in quarter one versus last year.

And there is no change to our multiyear guidance commentary, and we remain confident in our ability to deliver against the growth in revenue adjusted free cash flow that we have outlined. But let me just walk through the quarter one results with that question in mind. First, if you look at the results at a consolidated level, our gross margins and our advertising as a percentage of revenue were flat year over year. So the growth in the contribution profit dollars that we had in quarter one was consumed by increases in operating expenses. In quarter one, it is typically our lowest volume revenue quarter, and so OpEx increases like annual merit increases that we have including those for our central teams are less absorbed by revenue in our first quarter than they are during other quarters.

From a segment perspective, segment EBITDA increased in upload and print. It increased in National Pen and also in our all other businesses segment with higher gross margins across the board. And also in some cases lower advertising as a percentage of revenue in vista organic constant currency revenue growth was strong, it was 8%. And from a category perspective, what we saw in quarter one was very consistent with what we shared at our September Investor Day in terms of where we are seeing strength, and also where we see headwinds.

Vista had a strong quarter in Europe across the board. In North America, revenue growth was solid there. But this is where we have a slight decline in revenue from business cards that has a bit more impact on product mix and therefore also a bit more impact on gross margin.

We had also planned in quarter one to have a heavier advertising spend not only actually in quarter one, but also in the for the full first half of the year. And you see that this quarter and that is not any material shift of mode in terms of our advertising approach, but it does impact the year over year results for quarter one. So, if you take a step back for vista, the organic constant currency revenue growth of 8% that we reported translated to 6% gross profit growth, but advertising spend grew about 12% year over year and that is really the main impact of the flow through in quarter one. We also had a $1.8 million benefit in last year's Vista results and that did not repeat this year.

Panning back out to our consolidated results from a free cash flow perspective. Free cash flow was lower year over year. The biggest driver of this was higher outflows from changes in working capital. You will recall that last year the working capital impacts of supply chain disruption. We still normalizing. And so last year, we had favorable inventory trends from a working capital perspective.

The other significant driver of the free cash flow decrease year over year was cash interest payments that increased $10.6 million versus the year ago period. And that was due to our senior notes refinancing which brought forward the timing of our typical semi annual interest payments on our prior senior notes that were due in 2026 that have now been redeemed. From a balance sheet perspective, as just mentioned during the quarter, we successfully completed a high yield note offering for new 8-year notes that replaced our prior 2026 notes, and we concurrently extended the maturity and amended the interest rate of our existing revolving credit facility.

These steps combined with the substantial reduction in that leverage since the peak in December of 2022 have significantly strengthened our balance sheet and also our debt maturity profile.

Very importantly, we have been able to make these balance sheet improvements and maintain strong liquidity while also allocating capital to significant organic investments that we have outlined in more detail in our annual letter that was published back in July and over the last 3 quarters, we have also allocated $168 million to the repurchase of about 8% of our shares at what we believe to be very attractive multiples of earnings, cash flow and steady state free cash flow.

We also allocated another $9 million to repurchases in the month of October and we plan to continue to do so if prices remain attractive, but all of that will still be subject to the leverage commentary that we previously outlined, which as a reminder would be to end this fiscal year with net leverage at or below approximately 2.75 times our current 12 month EBITDA defined by our credit agreement if we are repurchasing shares.

Finally, we are of course now. In our second quarter of the fiscal year and that includes the holiday peak season. We had a pre submitted question around our expectations for for the upcoming season. We feel very good about our preparations and plans as that starts to ramp up. Also trends in Vista's consumer product category have been good with growth in each of the last 5 quarters. Also quarter one that we just reported here was strong and that is really been benefiting from the focus of our consumer team from new product introductions, but also the overall experience, improvements that we have talked about over the last few years that said compared to last year, we do have 5 fewer selling days between American Thanksgiving and Christmas. And we also have the US election. So we planned accordingly for those to the extent that we can, but those could dampen overall demand and year over year growth with that. I will turn it back to you Meredith for question and answer.

Wonderful. Thank you, Sean. As a reminder, you can submit questions during this webcast via the questions and answers box at the bottom left of the screen. And we received a number of pre submitted questions and we also look forward to taking your live questions as well. So let us jump in with our first question that was pre submitted. Robert, this question is going to be for you. What makes you confident enough to make such high levels of growth, investments and share repurchases?

Thanks for the question. Let me take those two subjects in turn, starting with growth investments and I will come to share repurchases.

So we are confident in continuing at a similar level of growth investment as we had in fiscal '23 and fiscal '24. Because of the strong performance we have demonstrated in terms of customer value improvements, competitive advantage, enhancements, and financial results. And our strong opportunity for the years ahead of us would not exist in the absence of those consistent investments in technology talent, new product introductions, design enablement, next generation, manufacturing excellence and advertising They collectively underpin our customer value improvement and our competitive advantage of enhancements. So for fiscal '24 we reported that those growth investments from a cash flow perspective were about $146 million at the midpoint estimate. And that, as you note in your question, we expected to continue with a growth investment level similar to that in this fiscal '25.

Now, as to my comment about strong financial results, let me be a little more explicit about what I mean. In my letter to shareholders from July, I spoke about our multiyear multi decade growth in terms of revenue and profitability, but focusing on where that trend has brought us to. In the last fiscal year, we generated about $10 in adjusted free cash flow per diluted share.

Now, even after you adjust that for asset sales and some unusually favorable working capital. The cash flow per share was still about $8. And all of these cash flow numbers are after the roughly $146 million in growth investments.

So that free cash flow per share leads to the second subject of your question, which is share repurchases. Share repurchases make even more sense when, or especially makes sense when our share price is trading today where it is relative to that free cash flow per share after growth investments.

Now, for the reasons, we talk about very regularly. For example, in our Investor Day presentations, we think those $146 million of growth investments are really creating shareholder value and we will see that in future years. But even if someone disagrees and considers that some of that growth investment is necessary just to keep our business steady. The cash flow per share we are seeing is robust to say the least relative to our share price. And that is in summary, why we invested an additional $168 million for share repurchases in the trailing 12 months through September.

Now, the final reason we are confident in deploying so much capital is because we are doing so within a clearly communicated leverage policy and a demonstrated track record of being able to deliver when we want to or need to. And as the most recent example of that track record, the growth investments and the share repurchase I just described have totaled over $300 million in the past 12 months alone.

Yet, over that same period, we have reduced our leverage from 3.5 to 3.1 times EBITDA.

Thank you, Robert. So I am going to ask another question that we received last night. That is along similar lines. So here goes, we suspect that you agree that the returns associated with repurchasing our shares today are materially more attractive than they were a few weeks ago. Will this impact? What sorts of investment activities we prioritize given the 2.75 times leverage constraint that have been communicated. For example, are there higher uncertainty CapEx investments that we may postpone to take advantage of the irrational price being offered by market?

Okay. The short answer is yes, because right now I think Cimpress is a case study or a poster child of Benjamin Graham's description of market when he gets especially moody and irrational and the cash flow math that I just shared a few moments ago. What is a good illustration of that value to price mismatch?

So we plan to take advantage of that opportunity and if the share price stays attractive, I would not be surprised if we invest north of $100 million in share repurchases this fiscal year while still ending up at around 2.75 leverage or below at the end of this fiscal year.

Now the trade off you mentioned is something we do talk about. And when there is opportunities, big or small, we are looking not only at CapEx, which you mentioned, but also OpEx and advertising and payment terms. And that being said, so we are looking at them, but I would also caution to you to say that a lot of our success has come from operational execution and what we call a focus on focus, and that requires consistency and planning across what is a pretty large organization. And there can be very high cost to flipping back and forth in our organic investment levels and operating plans based on monthly fluctuations in our share price.

We have high conviction in the CapEx and the software development, the talent recruitment and the advertisement that we have planned, and those projects are not very far out on the risk curve.

Now, we do recognize within that there are still tradeoffs we can make, and we expect to make. But my comments are just to say it is not a switch, we can turn on and off.

Now, I am not sure if in your question, you were also asking about the 2.75 leverage objective for the end of fiscal '25. But let me address that in case you are like with operational management, I think the consistency in where we are going from a balance sheet perspective has significant bad and that I think we should be aware of and protect other than in extreme circumstances. And we are maintaining our leverage, expecting expectation for this year as communicated, even though one could make a pretty good argument that given cimpress is proven ability to delever when we want to. Now is not the time to deploy capital to lever to reduce leverage given market's current state of mind. But we think that consistency like operational consistency is very helpful.

Now, rest assured this question of share repurchases is a regular topic especially recently we have had with the board of directors given the share price relative to our cash flow per share before and after our growth investments and we will continue to take it very seriously.

Thanks very much, Robert. All right, we are going to shift gears, and this next question will be for Sean. Please help me understand the $18 million quarter over quarter swing in other income flash expense. What are the main components of that line? And how do they flow through to adjusted free cash flow?

Sure, we will drop right into the details here. And there are some more details around our currency impacts. In our document, there is a section on currency impacts that I would point you to. There are sometimes some larger movements in this line in the P&L the year over year change as was mentioned in the question in our other income and expense was just under $18 million. That line is mostly driven by realized and unrealized currency gains and losses. So let me just explain the activity that goes through there and then I will just put some numbers against that for quarter one. So it is clear we from a currency perspective, we have an active currency hedging program, and we average into a combination of forwards and options each quarter based on our currency exposures, all based on currency exposures from an adjusted EBITDA perspective. And you might ask, why do you do that? And the reason we do that is that in the past, we have had EBITDA based maintenance covenants. And so the program is designed to reduce volatility in our adjusted EBITDA. So if there is ever a large move in currencies, we would have time to adjust. And then we also factor that into how much cushion we would need against those maintenance covenants. Now, of course, today, we do not have any EBITDA based maintenance covenant. However, on our revolver, if in the future, we were to have a drawn balance, we might and so we keep that program running as it as it was. And that program importantly has met its objective of reducing currency volatility.

The realized currency gains or losses from those hedges are included in our adjusted EBITDA that we report every quarter, the unrealized gains and losses are not in that adjusted EBITDA. And that also flows through this other income line and tends to be the source of the majority of what is in that line. So quarter one the realized gains that we had from our currency hedges went from a gain last year of $2 million to losses this year of $2 million. And so that is a total change of $4 million of that, about $$18 million that went through that line. So that is the real piece.

There is that realized piece is included in our adjusted EBITDA. It also then flows through to our cash flow as well.

We also, it is important to note when we have losses like we did in quarter one realized losses on our currency hedges. There is also there is also positive impacts above that line, whether it be in our revenue or in our cost base. And so there is some offset there and that is what gets you to a little bit under $1 million of neg negative impact to our EBITDA overall versus last year from currency. And that is probably the most important takeaway for quarter one. And as said, that flows through to our adjusted free cash flow that remaining $14 million year over year changes, mostly the changes in our unrealized currency gains and losses. That does not impact our free cash flow in this quarter. And those will continue to move around over time as they get more to market. And they will be realized over the next 12 to 24 months. But if there are losses there again, that also it means that there will be positive impacts from currency above that line. Over that period, I think if you take a step way back on all this stuff, the most important takeaway is we said last we said in our commentary last quarter that for the full year fiscal '25 based on our contracted rates going into the year that we expected the year over year impact of currency on our adjusted EBITDA to be approximately neutral. And we still expect that to be the case. So, there is some ins and outs there and markets will create some volatility in that line. But from an overall adjusted EBITDA perspective, we expect the impact of currency to be approximately neutral for the year.

Great. Thank you, Sean.

All right, Sean. I am going to stick with you. We got a trio of questions from investors on working capital. And so, I will ask you all of these questions at once and you can combine for a single answer. We were surprised at how much of a use of cash our payables consumed last quarter. What drove this large use of cash? Second question related to the above. We know that there has been some noise in our working capital over the past few years. Would you mind reminding us of which quarters you expect receivables, inventory and payables will continue to be sources or which quarters they will be uses of cash. For example, inventory continuing to be a source in Q2. And the last question at Investor Day, you predicted working capital to be a source of cash for the full year. Though less so than it was in FY24 have the quarter one results altered your view? And if yes, what has changed?

Okay, let me try and hit all those at once. And I know that the topic of working capital can be difficult to understand that there is a quarter-to-quarter volatility there. I think first thing to say is that there are no structural changes in our working capital. That if you look at any one quarter, it can be challenging because there is typically some timing differences, sometimes some discrete items that drive fluctuations of working capital and that could be that could be in either direction. But absent any specific events like the supply chain disruption that impacted inventory trends over the last few years, we would expect to have working capital inflows in Q2, which is typically the largest and also in Q4, so the December quarter and the June quarter working capital inflows. And that follows the seasonality of our revenues. So the quarters where we have our highest volume revenue. Just to make that specific, if you look at like the December quarter, for example, we have our holiday peak in revenue. We receive cash from customers in most instances in the December quarter. And then we have payments for materials for shipping, for advertising, remittances of all the sales tax or VAT that we collect and so on. And so that is what drives that sort of mismatch from a working capital perspective. On the outflow side, we would then typically have outflows from working capital in quarter one and Q3, and quarter one is typically small outflow. Q3 is the larger one. We did guide, as part of the question asked about the full year for fiscal year 25. We did guide to have working capital inflows for the full year in fiscal year 25, although less than fiscal year 24. Fiscal year 24 is a particularly strong year with some specific drivers.

That remains our expectation that we will have working capital inflows for the full year, although less than fiscal year 24. For quarter one, specifically, let me get to some of those questions. Again, as always, there is a lot of timing in here. Q4 of last year was quite strong and sometimes what that means is you will see sort of the other side of that the following quarter. So there is a little bit of that in here. Again. That is all timing stuff. In quarter one, we did have a little bit more inventories ramp up for the holiday preparation, part of that just due to some of the challenges in shipping through the Red Sea and so on. That is relatively minor, but when you compare it against last year, we were still unwinding some of that safety stock that we had ramped up. So year-over-year that creates a bit of an unfavorable swing. And then there were also a few other things, there was a question about the impact of payables on working capital. There are a few one off things related to specific suppliers, and I will just give you a few examples to make it tangible. Last year, we had a technology contract that was reasonably material where we approved terms. And so, we had that favorability last year that does not repeat this year. This year we had in the other direction, we had another technology contract where we had unusually favorable terms, which were born in a zero-interest rate world that shifted to more typical commercial terms in quarter one. Again, that one was kind of unique, but even just those two things alone are well over $5 million of year, over year impact just as examples to make it tangible. So again, no structural changes in working capital, quarter to quarter. You have these specific things that play a role. One other thing that I'd point out because I think the question, whoever asked the question, I think was probably looking at it from the cash flow statement. I usually look at accounts payable and accrued expenses together in terms of those trends. There is cash interest payments I mentioned in the earlier remarks that were $10.6 million higher in quarter one versus last year. And that was because we brought forward the payments on our interest payments on our bonds as part of the redemption. So if you are looking at it from a cash flow perspective, that also flows through those lines, That is just a timing thing but has had some impact as well in quarter one.

Great. Thank you, Sean.

All right. So I am going to move to Robert with a question about CapEx. Robert in Q4, fiscal year 24 you said you planned to increase CapEx in 2025 but the cash outflow for PP&E was lower this quarter. Have your plans changed, or will those investments still happen just later in the year?

I think the investments will still happen just later in the year. With the caveat around the discussion, we had a few minutes ago about we are looking at all this stuff. In terms of other capital allocation opportunities and share buybacks. But given all my comments which are very important about the consistency of operational execution, we are planning on those will still happen similar to working capital, this can fluctuate quarter to quarter. It is also common for us to be testing capital equipment to ensure it hits our operating requirements and key performance indicators before we make full payment, that can delay the cash out. So based on those initial installation test and our payment terms is not uncommon that much of the CapEx from a cash flow perspective appears in quarters after the equipment was actually received.

Thank you, Robert. I will stick with you for the next question, that is on our Build A Sign business. Actually 2 questions. We would have assumed that sales for Build A Sign would have increased materially this quarter as a result of the election cycle. However, sales in North America for all other businesses which we perhaps incorrectly assume our Build A Sign increased only marginally relative to last year. Our election cycle is not that big of a sales driver for this business. And out of curiosity, why was there a spike in inter segment revenue for all other business segment in quarter one fiscal year '25 relative to quarter one fiscal year '24

Okay. For the first question, our external revenue trends in quarter one for Build A Sign were very consistent with the recent past. Specifically, we see growth in signage that is being partially offset by decline in direct sales of and customer sales of home decor products.

You are correct that the election cycle did have some impact, a positive impact on signages revenue. But I would characterize that as a helpful increment to our revenue. Not as a major material impact. For the second question, the rapid growth in inter segment revenue comes from a very successful collaboration for cross Cimpress fulfillment between vista and Build a Sign. Just as a reminder, cross Cimpress fulfillment is when one Cimpress business produces for another Cimpress business. And we remain in the early stage of a multiyear effort to increase cross Cimpress fulfillment because it allows us to accelerate new product introduction and to drive down production costs. Thanks to the aggregation of volumes into focused production lines.

Now Build a Sign specifically has very competitive production capabilities and signage and in-home decor products. So, over the course of fiscal year '25, we are shifting most of Vista's North American production volume for those two categories from Vista to Build a Sign.

And this has cost savings that are nearly immediate but importantly, it frees up production space in just as North American production facilities for new lines which we are installing for other product categories is largely focused almost exclusively focused around the growth categories we talked about. And those new investments will likewise be made available through cross and fulfillment to all of Cimpress businesses in North America.

And so, as a point of reference, the inter segment sales are not included in the regional split for revenue that we provide in our financial and operating metrics spreadsheet, for example, in this case, Build a Sign which constitutes the majority of our all-other business, inter segment revenue is fulfilling products and shipping them to Vista customers in North America.

Thank you, Robert. Stick with you for this question that came in live. At the Investor Day, you discussed a modest multi year revenue decline in the combined business cards and consumer products categories. You mentioned consumer products growing for the last five quarters and have previously discussed business cards growing at low single digit rate due to customers finding different use cases for business cards. Do you think the modest decline in these combined product categories can be reversed or should we think of this as a modest ongoing revenue headwind?

So most of this question applies to vista. Let me focus on what we see happening there, but I will note that the story is similar for the minority of this which applies to other parts of Cimpress.

Yes, we do think we can stop the modest decline, and we are planning for roughly flat revenues between across these 2 mature traditional product categories.

At our September Investor Day, Florian showed a slide that unlike the strong growth we see in categories like signage, marketing materials, promotional products, apparel, packaging, which account for the majority of this growth. We have seen that flat growth in business cards and consumer and as a percentage of revenue, it declined substantially. These newer categories that are growing are the majority of our gross profit now. And they are also the most important categories for high value customers who are driving our growth. They also have very attractive lifetime value which makes their contribution profit after advertising favorable compared to the more mature categories like business cards and consumer. And also, as we have discussed, that mix shift does mean the gross margin percentage is pressured because business cards and consumer products have a higher gross margin percentage. But Vista is continuing to really excel well at protecting the profitability of these mature product categories through improved customer experiences, improved and expanded product ranges, premium substrates, sophisticated finishing options, price optimization, reducing discounts and advertising efficiency.

Thank you, Sean. Did you want to add anything.

Yes, If I could just I think one of the things that might be, I do not know, a little confusing for some is that in Investor Day, we were comparing business cards and consumer and lumping them together because of for some of the reasons Robert just described, these are the larger legacy categories differentiated from some of the more complex products that have high growth and we are very focused on now. But we were comparing those back to 2018. Now, from 2018, there happened to be a large pandemic, in the middle of that, there was also a transformation in the Vista business that included a substantial reduction in advertising. So there is a lot of noise when you look at it from fiscal year '18 to let us say fiscal year '24. There is some noise in that is other than the sort of outside of the trends you might expect now. So just to bring that forward. And I mentioned this in the earlier remarks from a consumer perspective, that have been growing over the last five quarters. And we have an expectation that can continue to grow and there is a lot of benefits from the new product introduction that is happening broadly across rent that has consumer relevance to the experience, improvement, design improvements and so on. And so we believe that that can continue to grow the business cards. I also mentioned in the earlier remarks that that we saw a slight decline there. I just differentiate business cards and consumer in that way in terms of the more recent trends. And, hopefully that is helpful and kind of a bridge back to also what we talked about in Investor Day.

Thanks Sean. We have run out of questions. I am going to turn things back to Robert to wrap.

Okay. Thank you, Meredith. In summary, we continue to execute in line with all the plans we have laid out for you in the September 10th Investor Day. Hopefully, some of the examples and the details we have shared with you today are helpful. I speak with team members across Cimpress on a very regular basis and I am very inspired by their talent. I am motivated how they are seizing opportunities. Now, they are addressing challenges, and I want to thank them for their support and execution of our strategy. They are more than 15,000 Cimpress team members and they really are successfully driving customer experience improvements, efficiency gains, new product introductions, great high-quality marketing and a lot more. So, these are keys to extending our 30-year trends of growth in revenues and profitability and market share. So, I will wrap up by saying thank you to them and thank you to you our investors for joining the call and continuing to trust your capital with us.