Cimpress NV (NASDAQ:CMPR) announced strong fiscal second-quarter 2018 results on Wednesday after the market closed, including exceptional growth from each of its core businesses and an encouraging update on its recent restructuring of Vistaprint. 

With shares up more than 20% today, let's dig deeper to see what drove Cimpress over the past few months, as well as what investors can expect from the company as we look ahead.

Workers using Cimpress' mass customization platform

IMAGE SOURCE: CIMPRESS.

Cimpress results: The raw numbers

Metric

Fiscal Q2 2018*

Fiscal Q2 2017

Year-Over-Year Change

Revenue

$762.1 million

$576.9 million

32.1%

GAAP net income attributable to Cimpress NV

$29.9 million

$35.0 million

(14.6%)

GAAP earnings per diluted share

$0.93

$1.07

(15.1%)

*For the quarter ended Dec. 31, 2017. Data source: Cimpress. GAAP = generally accepted accounting principles.

What happened with Cimpress this quarter?

  • Cimpress doesn't provide specific financial guidance. But for perspective, investors were looking for significantly lower earnings of $0.83 per share on revenue of $692.4 million.
  • Organic revenue -- which excludes contributions from acquisitions -- grew 11% on a constant-currency basis.
  • By business segment:
    • Vistaprint sales climbed 13% to $428.9 million.
    • Upload and print segment revenue increased 26% to $192.5 million.
    • National Pen revenue was $126.1 million, up 28% at constant currency on a pro forma basis. Cimpress acquired National Pen for $218 million just over a year ago.
    • Revenue from all other businesses declined 53% to $21 million, primarily driven by last quarter's divestment of Albumprinter.
  • Generated cash flow from operations of $160.4 million, up from $105.1 million in the same year-ago period.
  • Generated free cash flow of $132.7 million, up from $77.3 million in the same year-ago period.
  • Repurchased 121,444 shares for $14.5 million during the quarter. Subsequent to the end of the quarter, Cimpress also repurchased another 321,113 shares for $39.3 million.
  • In implementing the restructuring of Vistaprint -- which was first announced last quarter -- Cimpress incurred a restructuring charge of $11.5 million this quarter -- far below the $15 million to $17 million it initially expected -- primarily related to severance payments to affected employees. Cimpress continues to expect the initiative will reduce fiscal-year 2018 expenses by $20 million to $22 million. 

What management had to say

Cimpress CEO Robert Keane stated the company's decentralization over the past year has helped it "stay small as we get big," elaborating:

That organizational change has significantly increased the accountability for key success drivers, including but not limited to customer value improvements, the attraction and motivation of talented team members, the operation of our businesses in a socially responsible manner, and the delivery of attractive returns on investment. In summary, Q2 was a strong quarter and we are on track to deliver on our plans for the remainder of this fiscal year. We believe the capital we are allocating across our company, combined with the organizational and strategic changes we have implemented recently, are solidifying our leadership position in mass customization and continuing to increase our intrinsic value per share.

Looking forward

All things considered, this was a straightforward quarterly beat from Cimpress in the key holiday period, demonstrating the effectiveness of the company's unique approach for driving profitable growth and consistently generating long-term shareholder value. And it's hard to blame the market for so aggressively bidding up Cimpress stock to a fresh all-time high in response.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Cimpress. The Motley Fool has a disclosure policy.