Segment Information

3 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

Our operating segments are based upon the manner in which our operations are managed and the availability of separate financial information reported internally to the Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), for purposes of making decisions about how to allocate resources and assess performance.

As of September 30, 2024, we have numerous operating segments under our management reporting structure which are reported in the following five reportable segments:

•Vista - Consists of the operations of our VistaPrint branded websites in North America, Western Europe, Australia, New Zealand, India, and Singapore. This business also includes our 99designs by Vista business, which provides graphic design services, VistaCreate for do-it-yourself (DIY) design, our Vista x Wix partnership for small business websites, and our Vista Corporate Solutions business, which serves medium-sized businesses and large corporations.

•PrintBrothers - Includes the results of druck.at, Printdeal, and WIRmachenDRUCK, a group of Upload & Print businesses that serve graphic professionals throughout Europe, primarily in Austria, Belgium, Germany, the Netherlands, and Switzerland.

•The Print Group - Includes the results of Easyflyer, Exaprint, Packstyle, Pixartprinting, and Tradeprint, a group of Upload & Print businesses that serve graphic professionals throughout Europe, primarily in France, Italy, Spain, and the United Kingdom.

•National Pen - Serves small businesses across geographies including North America, Europe, and Australia. The pens.com branded business sells through their ecommerce site and is supported by digital marketing methods as well as direct mail and telesales. National Pen focuses on customized writing instruments and promotional products, apparel, and gifts for small- and medium-sized businesses.

•All Other Businesses - Includes two businesses grouped together based on materiality.

◦BuildASign is a provider of canvas-print wall décor, business signage and other large-format printed products.

◦Printi, a smaller business that is an online printing leader in Brazil.

For purposes of measuring and reporting our segment financial performance, we implemented changes to the methodology used for inter-segment transactions during the first quarter of fiscal 2025. These transactions occur when one Cimpress business chooses to buy from or sell to another Cimpress business. Under the new approach, a merchant business (the buyer) is cross charged the actual cost of fulfillment that includes product (e.g., labor, materials and overhead allocation) and shipping costs. A fulfiller business (the seller) receives inter-segment revenue that includes the product costs plus a markup, as well as the shipping costs. The fulfiller profit is included in the fulfiller’s segment results, but eliminated from consolidated reporting through an inter-segment EBITDA elimination. The new approach allows our merchant businesses to access the ultimate Cimpress cost of fulfillment for a given product and therefore that ultimate Cimpress cost can be used to determine pricing, advertising spend, and other operational decisions. Prior to this change, inter-segment transactions were based on marked-up pricing that resulted in the merchant business recognizing inter-segment cost of goods sold that was equal to inter-segment revenue that were recognized by the fulfiller business, as such there was no inter-segment EBITDA elimination under our prior method. We have recast all prior periods presented for segment revenue and segment EBITDA to ensure comparability with the current fiscal year. These changes in methodology have no impact on our consolidated financial results.

Central and corporate costs consist primarily of the team of software engineers that is building our mass customization platform; shared service organizations such as global procurement; technology services such as hosting and security; administrative costs of our Cimpress India offices where numerous Cimpress businesses have dedicated business-specific team members; and corporate functions including our Board of Directors, CEO, and the team members necessary for managing corporate activities, such as treasury, tax, capital allocation, financial consolidation, internal audit and legal. These costs also include certain unallocated share-based compensation costs.

The expense value of our PSU awards is based on fair value and is required to be expensed on an accelerated basis. In order to ensure comparability in measuring our businesses' results, we allocate the straight-line portion of the fixed grant value to our businesses. Any expense in excess of this amount as a result of the fair value measurement of the PSUs and the accelerated expense profile of the awards is recognized within central and corporate costs.

Our definition of segment EBITDA is GAAP operating income excluding certain items, such as depreciation and amortization, expense recognized for contingent earn-out related charges including the changes in fair value of contingent consideration and compensation expense related to cash-based earn-out mechanisms dependent upon continued employment, share-based compensation related to investment consideration, certain impairment expense, and restructuring charges. We include insurance proceeds that are not recognized within operating income. We do not allocate non-operating income, including realized gains and losses on currency hedges, to our segment results.

Our balance sheet information is not presented to the CODM on an allocated basis, and therefore we do not present asset information by segment. We do present other segment information to the CODM, which includes purchases of property, plant and equipment and capitalization of software and website development costs, and therefore include that information in the tables below.

Revenue by segment is based on the business-specific websites or sales channel through which the customer’s order was transacted. The following tables set forth revenue by reportable segment, as well as disaggregation of revenue by major geographic region and reportable segment.

	Three Months Ended September 30,
	2024		2023 (1)
Revenue:
Vista	$	429,494	$	396,850
PrintBrothers	160,415		152,573
The Print Group	84,072		79,437
National Pen	93,404		86,796
All Other Businesses	57,143		51,425
Total segment revenue	824,528		767,081
Inter-segment eliminations (2)	(19,559)		(9,787)
Total consolidated revenue	$	804,969	$	757,294

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(1) The prior period segment results have been adjusted to ensure comparability with the new methodology used for inter-segment transactions. Refer to the discussion above for further details.

(2) Refer to the "Revenue by Geographic Region" tables below for detail of the inter-segment revenue within each respective segment.

	Three Months Ended September 30, 2024
	Vista		PrintBrothers		The Print Group		National Pen		All Other		Total
Revenue by Geographic Region:
North America	$	309,175	$	—	$	—	$	52,287	$	43,368	$	404,830
Europe	95,657		159,368		80,907		32,007		—		367,939
Other	23,759		—		—		1,442		6,999		32,200
Inter-segment	903		1,047		3,165		7,668		6,776		19,559
Total segment revenue	429,494		160,415		84,072		93,404		57,143		824,528
Less: inter-segment elimination	(903)		(1,047)		(3,165)		(7,668)		(6,776)		(19,559)
Total external revenue	$	428,591	$	159,368	$	80,907	$	85,736	$	50,367	$	804,969

	Three Months Ended September 30, 2023
	Vista		PrintBrothers		The Print Group		National Pen		All Other		Total
Revenue by Geographic Region:
North America	$	289,055	$	—	$	—	$	52,735	$	42,214	$	384,004
Europe	85,407		151,542		77,802		27,737		—		342,488
Other	21,890		—		—		1,377		7,535		30,802
Inter-segment (1)	498		1,031		1,635		4,947		1,676		9,787
Total segment revenue (1)	396,850		152,573		79,437		86,796		51,425		767,081
Less: inter-segment elimination (1)	(498)		(1,031)		(1,635)		(4,947)		(1,676)		(9,787)
Total external revenue	$	396,352	$	151,542	$	77,802	$	81,849	$	49,749	$	757,294

_____________________

(1) The prior period segment results have been adjusted to ensure comparability with the new methodology used for inter-segment transactions. Refer to the discussion above for further details.

The following table includes segment EBITDA by reportable segment, total income from operations and total (loss) income before income taxes:

	Three Months Ended September 30,
	2024		2023 (1)
Segment EBITDA:
Vista	$	76,847	$	78,578
PrintBrothers	20,156		20,210
The Print Group	17,902		12,507
National Pen	(4,758)		(8,762)
All Other Businesses	6,735		6,018
Inter-segment elimination	(5,500)		(2,538)
Total segment EBITDA	111,382		106,013
Central and corporate costs	(37,012)		(31,780)
Depreciation and amortization	(35,546)		(39,942)
Restructuring-related charges	(99)		334
Certain impairments and other adjustments	614		(525)
Total income from operations	39,339		34,100
Other (expense) income, net	(11,492)		6,419
Interest expense, net	(31,415)		(29,200)
Gain on early extinguishment of debt	179		1,372
(Loss) income before income taxes	$	(3,389)	$	12,691

_____________________

(1) The prior period segment results have been adjusted to ensure comparability with the new methodology used for inter-segment transactions. Refer to the discussion above for further details.

	Three Months Ended September 30,
	2024		2023
Depreciation and amortization:
Vista	$	13,055	$	14,875
PrintBrothers	3,475		3,889
The Print Group	5,211		5,822
National Pen	3,246		5,188
All Other Businesses	4,647		4,547
Central and corporate costs	5,912		5,621
Total depreciation and amortization	$	35,546	$	39,942

	Three Months Ended September 30,
	2024		2023
Purchases of property, plant and equipment:
Vista	$	7,526	$	3,611
PrintBrothers	1,367		5,152
The Print Group	3,767		8,496
National Pen	1,363		2,669
All Other Businesses	2,511		2,235
Central and corporate costs	467		402
Total purchases of property, plant and equipment	$	17,001	$	22,565

	Three Months Ended September 30,
	2024		2023
Capitalization of software and website development costs:
Vista	$	6,057	$	6,640
PrintBrothers	602		457
The Print Group	949		694
National Pen	1,100		805
All Other Businesses	1,499		1,187
Central and corporate costs	4,364		4,614
Total capitalization of software and website development costs	$	14,571	$	14,397

The following table sets forth long-lived assets by geographic area:

	September 30, 2024		June 30, 2024
Long-lived assets (1):
United States	$	72,106	$	77,095
Switzerland	70,876		67,201
Netherlands	57,773		60,974
Canada	57,455		54,848
Italy	39,042		37,380
Germany	32,088		31,656
France	28,062		28,002
Australia	22,710		22,131
Jamaica	3,639		3,782
Other	96,252		90,380
Total	$	480,003	$	473,449

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(1) Excludes goodwill of $804,806 and $787,138, intangible assets, net of $72,071 and $76,560, deferred tax assets of $97,003 and $95,059, and equity method investments of $2,128 and $1,904 as of September 30, 2024 and June 30, 2024, respectively.