VistaPrint Ltd. (VPRT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Vistaprint Ltd. has a market cap of $2.54 billion; its shares were traded at around $58.6 with a P/E ratio of 38 and P/S ratio of 4.9. VPRT is in the portfolios of Steve Mandel of Lone Pine Capital, John Hussman of Hussman Economtrics Advisors, Inc., RS Investment Management, Jim Simons of Renaissance Technologies LLC, Ron Baron of Baron Funds.
The increase in our technology and development expenses of $4.0 million for the three months ended March 31, 2010 as compared to the same period in 2009 was primarily due to increased payroll and benefit costs of $2.5 million associated with increased employee hiring in our technology development and information technology support organizations. The increase in our technology and development expenses of $13.1 million for the nine months ended March 31, 2010 as compared to the same period in 2009 was primarily due to increased payroll and benefit costs of $8.3 million associated with increased employee hiring in our technology development and information technology support organizations. The nine month period ended March 31, 2010 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At March 31, 2010, we employed 356 employees in these organizations compared to 300 employees at March 31, 2009. In addition, to support our continued revenue growth during this period, we continued to invest in our website infrastructure, which resulted in increased depreciation and hosting services expense of $0.5 million and increased other expenses of $0.4 million for the three months ended March 31, 2010 as compared to the same period in 2009. For the nine months ended March 31, 2010, depreciation and hosting services expense increased $1.8 million and other expenses increased $1.2 million as compared to the same period in 2009. The nine month period ended March 31, 2010 included $0.9 million of expense related to the abandonment of certain acquired intangibles recorded in the Soft Sight acquisition that were measured at fair value based on the perspective of a market participant, but we determined not to have an economic use for Vistaprint and were abandoned.
The increase in our marketing and selling expenses of $14.9 million for the three months ended March 31, 2010 as compared to the same period in 2009 was driven primarily by increases of $8.8 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base, increases in payroll and benefits related costs of $3.2 million, and a non-recurring charge of $1.5 million related to indirect taxes. The increase in our marketing and selling expenses of $43.9 million for the nine months ended March 31, 2010 as compared to the same period in 2009 was driven primarily by increases of $29.1 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base and increases in payroll and benefits related costs of $9.7 million. During this period, we continued to expand our marketing organization and our design, sales and services centers. At March 31, 2010, we employed 835 employees in these organizations compared to 634 employees at March 31, 2009. In addition, payment processing fees paid to third-parties increased by $0.8 million and $2.2 million, during the three and nine months ended March 31, 2010, respectively, as compared to the same periods in 2009 due to increased order volumes. The nine month period ended March 31, 2010 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above.
$1.6 million related to ongoing litigation, and other general and administrative activities including recruitment. The increase in our general and administrative expenses of $13.3 million for the nine months ended March 31, 2010 as compared to the same period in 2009 was primarily due to increased payroll and benefit costs of $5.8 million resulting from the continued growth of our executive management, finance and human resource organizations, and increased third-party professional fees of $5.2 million related to ongoing litigation, the execution of our change of domicile to the Netherlands, and other general and administrative activities. The nine month period ended March 31, 2010 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At March 31, 2010, we employed 185 employees in these organizations compared to 137 employees at March 31, 2009.
Interest income, which consists of interest income earned on cash and cash equivalents and investments, decreased $0.2 million to $0.1 million for the three months ended March 31, 2010 from $0.3 million generated in the same period in 2009. Interest income decreased $1.2 million to $0.3 million for the nine months ended March 31, 2010 from $1.5 million generated in the same period in 2009. The decrease was primarily due to lower interest rate yields despite increased cash and investments balances.
Interest expense, which consists of interest and other related fees paid to financial institutions on outstanding balances on our credit facilities, decreased to $0.1 million for the three months ended March 31, 2010 as compared to $0.3 million for the same period in 2009. Interest expense decreased to $0.7 million for the nine months ended March 31, 2010 as compared to $1.1 million for the same period in 2009. As a result of the early repayment of $5.9 million of our euro revolving credit agreement, we incurred $0.1 million in prepayment penalties for the nine months ended March 31, 2010. We expect that interest expense will continue to decline in future periods as compared to the nine months ended March 31, 2010 as a result of our early repayment of debt and the final payment in November 2009 of our original Canadian credit facility.
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Vistaprint Ltd. has a market cap of $2.54 billion; its shares were traded at around $58.6 with a P/E ratio of 38 and P/S ratio of 4.9. VPRT is in the portfolios of Steve Mandel of Lone Pine Capital, John Hussman of Hussman Economtrics Advisors, Inc., RS Investment Management, Jim Simons of Renaissance Technologies LLC, Ron Baron of Baron Funds.
Highlight of Business Operations:
For the three and nine months ended March 31, 2010, we reported 30% and 33% revenue growth over the same periods in 2009 to revenue of $166.0 million and $505.7 million, respectively. Diluted earnings per share (EPS) grew 6% and 35% for the three and nine months ended March 31, 2010 over the same period in 2009 to EPS of $0.35 and $1.24, respectively.The increase in our technology and development expenses of $4.0 million for the three months ended March 31, 2010 as compared to the same period in 2009 was primarily due to increased payroll and benefit costs of $2.5 million associated with increased employee hiring in our technology development and information technology support organizations. The increase in our technology and development expenses of $13.1 million for the nine months ended March 31, 2010 as compared to the same period in 2009 was primarily due to increased payroll and benefit costs of $8.3 million associated with increased employee hiring in our technology development and information technology support organizations. The nine month period ended March 31, 2010 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At March 31, 2010, we employed 356 employees in these organizations compared to 300 employees at March 31, 2009. In addition, to support our continued revenue growth during this period, we continued to invest in our website infrastructure, which resulted in increased depreciation and hosting services expense of $0.5 million and increased other expenses of $0.4 million for the three months ended March 31, 2010 as compared to the same period in 2009. For the nine months ended March 31, 2010, depreciation and hosting services expense increased $1.8 million and other expenses increased $1.2 million as compared to the same period in 2009. The nine month period ended March 31, 2010 included $0.9 million of expense related to the abandonment of certain acquired intangibles recorded in the Soft Sight acquisition that were measured at fair value based on the perspective of a market participant, but we determined not to have an economic use for Vistaprint and were abandoned.
The increase in our marketing and selling expenses of $14.9 million for the three months ended March 31, 2010 as compared to the same period in 2009 was driven primarily by increases of $8.8 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base, increases in payroll and benefits related costs of $3.2 million, and a non-recurring charge of $1.5 million related to indirect taxes. The increase in our marketing and selling expenses of $43.9 million for the nine months ended March 31, 2010 as compared to the same period in 2009 was driven primarily by increases of $29.1 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base and increases in payroll and benefits related costs of $9.7 million. During this period, we continued to expand our marketing organization and our design, sales and services centers. At March 31, 2010, we employed 835 employees in these organizations compared to 634 employees at March 31, 2009. In addition, payment processing fees paid to third-parties increased by $0.8 million and $2.2 million, during the three and nine months ended March 31, 2010, respectively, as compared to the same periods in 2009 due to increased order volumes. The nine month period ended March 31, 2010 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above.
$1.6 million related to ongoing litigation, and other general and administrative activities including recruitment. The increase in our general and administrative expenses of $13.3 million for the nine months ended March 31, 2010 as compared to the same period in 2009 was primarily due to increased payroll and benefit costs of $5.8 million resulting from the continued growth of our executive management, finance and human resource organizations, and increased third-party professional fees of $5.2 million related to ongoing litigation, the execution of our change of domicile to the Netherlands, and other general and administrative activities. The nine month period ended March 31, 2010 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At March 31, 2010, we employed 185 employees in these organizations compared to 137 employees at March 31, 2009.
Interest income, which consists of interest income earned on cash and cash equivalents and investments, decreased $0.2 million to $0.1 million for the three months ended March 31, 2010 from $0.3 million generated in the same period in 2009. Interest income decreased $1.2 million to $0.3 million for the nine months ended March 31, 2010 from $1.5 million generated in the same period in 2009. The decrease was primarily due to lower interest rate yields despite increased cash and investments balances.
Interest expense, which consists of interest and other related fees paid to financial institutions on outstanding balances on our credit facilities, decreased to $0.1 million for the three months ended March 31, 2010 as compared to $0.3 million for the same period in 2009. Interest expense decreased to $0.7 million for the nine months ended March 31, 2010 as compared to $1.1 million for the same period in 2009. As a result of the early repayment of $5.9 million of our euro revolving credit agreement, we incurred $0.1 million in prepayment penalties for the nine months ended March 31, 2010. We expect that interest expense will continue to decline in future periods as compared to the nine months ended March 31, 2010 as a result of our early repayment of debt and the final payment in November 2009 of our original Canadian credit facility.
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