Cimpress plc

Ladies and gentlemen, thank you for standing by. Welcome to the SEMPRESS Third Quarter Fiscal Year 2025 Earnings Call. Now I will introduce Meredith Barnes, Vice President of Investor Relations and Sustainability. Please go ahead.

Thank you, Carmen, and thank you everyone for joining us. With us today are Robert Keene, our Founder, Chairman, and Chief Executive Officer, and Sean Quinn, our EVP and Chief Financial Officer. We appreciate the time that you've dedicated to understanding our results, our commentary, and our outlook. This live Q&A session will last about 45 minutes or so and will answer both pre-submitted and live questions. You can submit questions 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 on our IR website, and we invite you to read them. Now I will turn things over to Robert.

Thanks, Meredith. And thank you to our investors for joining us today. I'm going to start with some overall remarks that I'll pass it to Sean to cover our Q3 results and the tariff topic. Then we'll go to your questions. As I noted in the earnings document in the letter that was attached to that, which we published yesterday, in the third quarter, we remained focused on the exact same things we've been talking about throughout this year. That consistent focus and the operational progress which we've made gives me and gives us confidence that we can deliver attractive growth in per share cash flow over the coming years despite what is a pretty noisy backdrop right now. At the highest level, there were a few themes to the quarter. First, we continue to see strong growth in what we now refer to as elevated products. Examples of these are promotional products, apparel, signage, packaging, and labels. Expanding into elevated products helps us serve customers with a higher lifetime value because it both increases our share of wallet with existing customers and helps us acquire new customers directly into these categories. For example, at Vista, the number of new customers acquired via signage, packaging, and labels in Q3 grew more than 10% over the prior year. And we think these markets have a lot of opportunity ahead of them. Another bright spot is cross-SIMPRESS fulfillment, which continues to grow quickly. This is when one business unit in SIMPRESS produces for another and cross-SIMPRESS fulfillment is both accelerating our rate of new product introductions and lowering our cost of goods. Likewise, At Pixar Printings, we have their new production facility live in the U.S. on schedule. That facility is already fulfilling for Vista. That's allowing for new product introductions and access to lower-cost production, much of it which was outsourced in the U.S. market. And it's things we've honed in Europe in our upload and print businesses for quite some time. Likewise, PixArt Printing will soon be launching its U.S. website at pixartprinting.com over the coming month or two, and that's going to mark our entry into the U.S. uploaded print market. So we have a lot of strong progress throughout the company. On the other hand, as we've discussed over recent quarters, we do face headwinds in some of our legacy products and legacy channels that are reducing our consolidated growth rate. Of course, A lot of our time this past quarter was spent dealing with tariffs and the threat of future tariffs, the uncertainty of what those tariffs are going to be. Teams across SimPress have responded with impressive velocity and are focusing on how to assess an ever-changing situation to develop action plans, action scenarios, depending on what happens. to reduce our impact on our customers and our shareholders. Based on what we know today, we have a good handle on that impact for tariffs. We have a relatively strong position, and we're confident in our plans. To help you understand where we stand as of now, in an 8 filing in early March, we provided a framework for how tariffs impact our business, and we have updated that information in last night's earnings document. We certainly do not enjoy the volatility the tariffs are imposing on us or on our market. That being said, it's often in times of volatility that we've shown that our competitive advantages can become even clearer. And we've always strived to build a transformational, enduring business. We value customer focus, innovation, learning from mistakes, data-driven decision-making, attracting and retaining great talent, driving for greater scale, and all of that is in service of disrupting a market so that we can profitably serve the world's small, medium businesses, which power so much of the economy. Now, those traits, which we've pursued for decades, have served us well over our history, including in multiple periods of adversity, That could be startup challenges long ago. It could be the global financial crisis. It could be the challenges of staying nimble as we get big, the COVID pandemic, the post-COVID supply chain challenges. Through all of that, we've not only navigated those periods of adversity, but we've extended our industry leadership. We've leveraged our scale-based advantages. and we've taken market share. So we're focused on doing the same thing here, and we look forward to the longer term because of that response we're able to bring to this period of challenge and adversity from tariffs. Let me now turn things over to Sean to go through our financial results and our tariff response as well as some outlook commentary.