M&A activity has blossomed across corporate America, but VistaPrint
VistaPrint operates a highly automated website that allows customers to design and print things like brochures, letterhead stationery, and business cards. According to the company, the site processes roughly 21,000 of these orders each day.
VistaPrint's third-quarter revenue increased 67% to $69.3 million, while net income increased 40% to $7.4 million, or $0.16 per share. Cash flow from operations was a juicy $18.5 million, and VistaPrint's got $113 million in the bank.
The company has leveraged its scalable infrastructure to keep its growth moving, launching new products such as pocket-sized self-inking stamps and personalized bank checks. VistaPrint has also established a business services unit, making it easier for firms to better manage their printing needs.
The company enjoys strong competitive advantages, including patented technology and an efficient back-end infrastructure. However, its biggest strength may be its ability to cost-effectively acquire small-business customers. VistaPrint constantly experiments with Internet search engines, email campaigns, and even traditional catalogs to draw in customers as inexpensively as possible.
Thanks to this marketing machine, VistaPrint added 800,000 new customers in the just-completed quarter, for a total of roughly 9 million. With its market size estimated at $16 billion, the company has plenty more room for further organic growth, which should help to keep its shareholders happy.
A short run of further Foolishness:
More from The Motley Fool
Why Shares of Cimpress NV Rose 15% in October
The decentralized provider of short-run printing is enjoying a fast start to its new fiscal year.
Cimpress NV Starts the Fiscal Year Strong, Announces Vistaprint Restructuring
The mass-customization leader is up big after another solid quarter and plans to further drive down costs.
Cimpress N.V. Finishes an "Important" Year
The mass-customization company dropped after posting a big loss, but the market should have known better.