Cimpress plc (CMPR) Earnings Call Transcript & Summary

Hello, and welcome to Cimpress' 2024 Investor Day. My name is Meredith Burns, Vice President of Investor Relations and Sustainability. I'm so happy that you're here with us to learn about the progress we're making across Cimpress. Today, we will hear from executives representing Cimpress, Vista and Upload and Print. If you have participated in past Investor Day events, you will recognize everyone on this slide. There are management bios available in the speakers' tab of the webcast viewer. So I will not spend time today introducing everyone. All right. Let's talk about how we'll spend the next roughly 3 hours together. Robert will start with some perspective on FY '24, our advantages and market dynamics across Cimpress. Then Maarten will provide an update on our mass customization platform and the state of generative AI capabilities our businesses are adopting. Then Paolo will provide an update on the strong performance of our Upload and Print businesses. Next, Florian will demonstrate the great progress we're making in Vista. At that point, we'll all take a short break and then come back for our financial review and outlook with Sean. Finally, we'll finish with a Q&A session with all of our presenters plus Michael, Emily and Christina from the Vista executive team. Okay. In terms of what to expect today. We will cover both presubmitted and live questions in the event. You can submit questions any time on the Ask a Question tab, and we will take as many as we can in the Q&A session at the end of the event. A replay and supporting content will be available on our website after the event at ir.cimpress.com. Some of the numbers that we will show or discussed today are non-GAAP. You can find reconciliations to GAAP measures posted on ir.cimpress.com or in the downloads tab of the live webcast viewer. And finally, you can expect that we will be sharing our thoughts about the future. So this is a great time to note that our actual results may differ materially from these statements about the future due to risk factors that are outlined in detail in our SEC filings and also here on this slide. We invite you to read them. With that, I'd like to turn the presentation over to Robert Keane. Robert?

Well, thank you, Meredith. Thanks again. Welcome to our shareholders, debt holders and others who are joining us this year for this Investor Day. We are really excited to share our progress with you to show you how the investments we've been making over the last multiple years, and our relentless focus on execution have driven Cimpress to have record financial results and laid foundations for a strong future. Now there are four messages I hope that you'll take away from today's sessions. First, we've been improving, and we're going to continue to regularly improve our customer experience. Next, we've been investing and we're going to continue to invest in capabilities to drive efficiency, improve [ quality ], increase speed of delivery and grow our scale-based competitive advantages. As we have discussed for several years, third, we are going to continue to drive per customer lifetime value and revenues via a shift into what we call more complex products. And this type of product expansion and the supporting experience improvements that go along with that allow us to serve more of our customer needs and to further penetrate the large markets in which we operate. And fourth, our largest business, Vista, has continued building momentum based on the foundations we've invested in over the past 4 to 5 years. The results are an improved customer experience that attracts and retains higher-value customers. That's thanks to a modern, flexible technology and data infrastructure, strengthening of our product development capabilities and our repositioning of Vistaprint away from its previous discount-driven brand image. So let's get started. This slide shows Cimpress' long track record of profitable growth from fiscal 2006. That's the year we went public through last year fiscal 2024. Last year, when I showed these charts to you 12 months ago, I noticed that the progress we've been making really happens in a straight line. And although I also noted at the same time, we had turned the corner in fiscal '23, and we were quite optimistic about fiscal '24 and beyond. And as expected, fiscal '24 was a successful year, in which our financial results returned to and actually extended our historical trend line. You'll see the revenue acceleration at certain points in these charts, and that was often when we supplemented organic growth with significant acquisitions. And you'll see some volume revenues during the pandemic, but otherwise, revenues have steadily marched up to the right. In terms of EBITDA on the right, you can see there were reductions where we focused on investing more deeply than normal, for example, enhancing our customer value proposition, rebuilding our technology infrastructure, accelerating talent recruitment, dealing with supply chain inflation and investing more deeply in LTV-based advertising. We finished fiscal 2024 with $3.3 billion in revenues and $469 million in adjusted EBITDA, extending the upswing in our bottom line that we started in FY '23, when we pivoted the focus of our execution towards leveraging the changes in investments that we had been executing on from FY '19 to FY '22. We committed ourselves to the FY '19 to FY '22 investment, and we continue to invest -- we continued to invest despite the financial pressures of the pandemic and the pressures of the subsequent supply chain turbulence, because we wanted to ensure that we remain the clear leader of the print mass customization revolution, which we introduced to the world 25 years ago. Our mastery of the print mass customization model has powered a multi-decade transformation of very large and fragmented print and print-related markets. And as you see on the chart on the left, we produce small quantity orders at a cost per unit, which is well below the cost quantity trade-off curve of traditional printing. Beyond providing us with substantial cost advantages compared to traditional print business models. The mass customization business model delivers great value to customers through convenience, breadth and depth of product choice, fast production and fast delivery times, reduced obsolescence since customers can only order -- they can order only what they need, the small quantities, which are right for their needs. Print mass customization leverages the three capabilities that you see on the right-hand side of this slide. The first two, e-commerce and software-driven order aggregation as well as the software-driven production systems, are required no matter who the customer is. The third on bottom right, democratized design is required to serve customers who don't have graphic design skills. And you'll hear more about this -- the progress that Vista is making to expand the design capabilities it provides to its millions of customers. You also hear examples of our Upload and Print businesses. We've also started to provide design services and tools to expand their current offering to appeal to a wide variety of customers. Cimpress' growth and profitability contrast really sharply with the state of the printing industry overall, especially the state of traditional printers. The upper left-hand chart here shows that at the same time, Cimpress has grown rapidly over the past decades. There's been a slow and steady decline in the number of our traditional print providers. And the chart at the lower left shows that the vast majority of the 21,000 remaining competitors in the U.S. are very small, 73% employ fewer than 10 people, 93% employ fewer than 50 people. The statistics are very similar in Europe, Australia and elsewhere. We have over $3 billion in revenues, Cimpress is the polar opposite of these small-scale competitors and that gives us scale-based competitive advantage. A small traditional players like the ones in the pictures on this slide still account for the majority of the revenue in our market, and that provides Cimpress with a long runway for future growth, fueled by continued market disruption as customers continue to shift towards our value proposition and all the advantages of online print mass customization. Cimpress' unique combination of capabilities each individually with their own scale-based advantages collectively drive our success. And our scale is unmatched in the industry. In fiscal '24, we produced and delivered about 30 million custom orders with many multiple custom products in the average order. Delivering that's that many small custom orders in a way that delights customers while also being profitable, requires us to orchestrate all the differentiated scale-based capabilities that you can see on the left-hand side of this chart. These include software engineering, product development, data and analytics, manufacturing and supply chain, design and service, globally competitive talent locations, procurement, e-commerce marketing and team members who are experienced at driving synergies through mergers and acquisitions. As shown to the right, we are continuously increasing customer value via a flywheel in which better customer value drives market share gains. That in turn generates both strong steady state cash flow, which we use to fund investments, but it also helps us attract and retain strong talent. Our investment and our talent work together to drive our product development and to improve efficiency of our production, design, service and marketing operations, and that leads back to better customer value and a repeat of the same cycle again. In other words, customer value that we drive via these self-reinforcing scale advantages is the key to Cimpress' long history of profitable growth and of market disruption. In my annual letter, which we published at the end of this July, I emphasized several ways in which our scale-based advantages can drive and do drive better customer value. In terms of manufacturing and supply chain, we operate over 20 production facilities, and we closely work with hundreds of third-party print fulfillment partners. Giving us the ability to direct our order flow to specialized production lines with focus and whose volume drive quality and cost advantages. We have procurement teams, both centrally and in each of our businesses who leverage Cimpress-wide scale across our decentralized production operations and our major suppliers. The combination of central and distributed procurement talent drives Cimpress-wide negotiating power, while maximizing the hugely value-generating innovation and the supplier partnerships that take place on the front line of our production operations. Our continued investment in the latest generations of printing equipment from many high-quality capital equipment suppliers, rapidly improves our press and our post-press technology in terms of quality, capacity and cost. And because Cimpress is such an important customer to the leading equipment suppliers, they are happy to cooperate closely with us to push the envelope of this type of innovation. Next, software is another crucial driver of our capabilities across most parts of our value chain. Centrally, Cimpress' proprietary mass customization platform provides access to market-leading software capabilities that enable our businesses to introduce our new products more easily, to access a broad assortment of products at lowest cost production centers from across the Cimpress wide production network and increasingly to aggregate production volumes to gain efficiency via focused production hubs that serve multiple Cimpress businesses. And we pair our central MCP software expenditures with complementary additional software investment in each of our businesses. From FY '19 through FY '22, the modernization of our technology platforms in some of our businesses consumed a large portion of our software development expenditures. And now that we're operating primarily on a modern set of technology stacks, our software development is able to drive a steady stream and a growing stream of customer experience improvements, productivity improvements and products and capabilities that better serve higher-value customers. You're going to hear a lot about this from Maarten as well as from Paolo and Florian in their presentations later today. Next, design and service. The quality of a custom printed product is dependent on the quality of its graphic design. So we dedicate a significant minority of our product development and other operating expenses to capabilities that help our customers create, upload or work with an expert to get a design they love. Different parts of Cimpress take a wide variety of approaches to doing so, and that's done in function of the relevant customer needs and positioning of each brand within Cimpress. Again, you're going to hear more about this today in other presentations. Last, but not least, we spend a significant amount each year on advertising to attract new customers and to retain other one -- existing ones. Advertising intensity does vary considerably across different Cimpress businesses. And sometimes, by different brands within any given Cimpress business. That variation is a function of the type of customers each business serves, and the relative lifetime value of each customer has for the various Cimpress brands. We've expanded our product breadth and improved our customer experience. And as we've done that, we've increased the per customer lifetime value, which allows us to pay higher customer acquisition costs, while retaining attractive financial returns to our advertising. Scale also drives our ability to invest in talent and systems to drive advertising efficiencies through sophisticated analytics. We continue to invest in these scale-based advantages because we are in the midst of leading a multi-decade shift from traditional business models to mass customization of print. The market opportunity is enormous. It exceeds $100 billion across North America, Europe and Australia. The chart to the left shows the major product categories of our total addressable market. The chart on the right shows that for each of those categories, offline competitors who employ largely traditional print business model still account for over 60% of the market, and Cimpress has invested as we've -- just as we have in the past years -- in past decades, in order to continue to drive into those traditional parts of the printing market for a long time to come. We have some mature product categories with higher penetration that have slowed down in terms of growth. Although they've done so with improved profitability. And importantly, as those product lines have matured, we've created new growth opportunities by bringing our mass customization print paradigm to entirely new and more complex products within the same four major categories you see on this slide. Let me explain this shift by using this 2x2 metrics on this slide. We've shown this to you and other investors many times over the past several years. It illustrates how over time, Cimpress and our various businesses have expanded in part by bringing the mass customization paradigm to new markets. Let's start with the axis. The horizontal axis represents the graphic design skills of customers, novices on the left, professionals on the right. The vertical axis represents the complexity of production of physical products, lower complexity in the bottom, higher on the top. For 2 decades, or more, Vistaprint has been the leader in the lower left quadrant. These are lower complexity production products, their print products for people who have limited graphic design skills. On the lower right, our Upload and Print businesses initially built their market leadership, serving graphic design professionals or products that were similar to Vistaprint, but were uploaded by graphic design professionals rather than designed with templates on the site. Under Cimpress' ownership, our Upload and Print businesses have expanded to the upper right quadrant, selling again to the same types of graphic professionals but for products with a higher level of production complexity. Now our investments in the democratization of design and in new product introductions are moving Cimpress into the upper left, where we're serving customers who have limited graphic design skills, but we are expanding the product line to higher complexity physical products, which we have already developed in Cimpress' Upload and Print businesses. Because of that constant innovation and that expansion into new product categories across our total addressable market, today, Cimpress offers customers an unparalleled breadth and depth of product choice, product attributes, options, all with the convenience of online ordering, and we are far from finished with this product expansion. This push into more complex products drives more value to customers. It also allows us to grow the lifetime value of each customer. That's because the lifetime value for more complex products is typically higher than for simpler products like business cards or consumer products like invitations or announcements or holiday cards. Why is that? So it's -- first of all, because larger order sizes and product complexity drive higher gross profit per order. Secondly, because customers often employ these newer products as a nondiscretionary part of their cost of goods sold, for example, the custom printed packaging or the labels they use every day in their business to present and protect their product that drives a need for regular replenishment of the product. More complex products as well as several growing categories in our traditional product categories, for example, marketing materials, now drive the majority of Cimpress' revenue. Our oldest product categories, business cards and consumer products combined now account for less than 1/4 of our revenues. You see business cards and consumer products in the gray columns on the left, from fiscal '19 to fiscal 2024, the revenues from these products is down slightly as we cut back on unprofitable advertising, repositioned our Vista brand and faced headwinds from consumer behavioral changes in event-related consumer purchasing that came with a pandemic. All of this means that we had about a negative 1.7% CAGR over this 5-year time period. The yellow columns represent all our other product categories. These faster-growing categories made up 77% of Cimpress revenue in 2024, have grown from FY '19 to FY '24 at a 7.1% CAGR. When combined, this has yielded a 4.6% CAGR in constant currencies for Cimpress overall, despite very significant pandemic-related headwinds right in the middle of this FY '19 to FY '24 time frame. Our growing product categories typically drive, as I mentioned before, higher lifetime value and very importantly, they represent a larger portion of our total addressable market, which is why we're optimistic about their prospects. You'll hear today about how we've been setting ourselves up to continue this multiyear success with important growth drivers. We have a long, long history of innovation here, and we think there's much more opportunity for new product introduction in the years ahead that's going to help us continue to take share in a large market that still has a long way to go, even the print mass customization revolution. Even as other products become an increasingly important part of our revenue, we have successfully been protecting the profitability of our legacy product categories. For example, this does contribution profit, which is revenues minus cost of goods sold minus advertising. In these categories is up significantly from FY '19 to FY '24, despite approximately flat revenues for business cards and pandemic-driven declines in several consumer product categories. We've achieved this through improved product experience, expanded product range, premium substrates, sophisticated finishing, price optimization, discount reductions and significantly improved advertising efficiency. These traditional product categories now operate on a new economically healthy foundation. We see signs of a slow, but steady growth in several of these categories, and we're going to continue to improve the offering going forward and the experience within these categories in ways that delight our customers and further protect our contribution profit. Looking forward, in fiscal '25 and beyond, we're going to continue to fortify and leverage our strong foundations by a continued relentless focus on execution and by continuing to fortify and leverage our scale-based advantages. Our manufacturing and supply chain advantages are driving new product, quality and speed improvements, cost reductions and have many more opportunities ahead. This includes steadily increasing transactions, in which, one Cimpress business produces for another Cimpress business, which we refer to as cross Cimpress fulfillment. Our software platform modernization has also accelerated our development philosophy -- development velocity, excuse me. Our design tools, expert design assistance and great customer service are driving customer satisfaction. And we are improving brand awareness by continuing to optimize lower funnel advertising, while testing and expanding mid- and upper-funnel advertising. Financially speaking, fiscal '24 was an important year that demonstrated our underlying financial strength after years of investment and transformation. It was a milestone on our way towards what we believe will be further growth in revenues and profitability, while we consistently operate with lower net leverage than we have had for years. And with that, I'd like to turn this over to Maarten Wensveen, who's going to discuss progress we've had with our mass customization platform.

Thank you, Robert. Hello. I'm Maarten Wensveen, CTO of Cimpress and the Head of our Mass Customization Platform or MCP. I'm happy to give a brief update today on the progress of our platform strategy, which is ultimately focused on enabling our businesses to deliver great customer value fast and at scale. By uniting the power of our businesses, MCP enables innovation at a scale and sophistication that wouldn't be feasible individually. As Robert said, we're focusing on leveraging our skill advantages from investments throughout Cimpress and this includes our proprietary mass customization platform. Software is a critical driver of our capabilities across the company including nearly all aspects of delivering an exceptional customer experience. Through modern, modular, API-driven cloud-based architecture, the MCP provides an -- provides all Cimpress businesses with access to market-leading capabilities in areas like fulfillment, production management, hardware creation, e-commerce, security, data and analytics and our custom product catalog management. And the list keeps goes on. In a minute, we'll take a look at some of the impacts for data from this past year that illustrates the true value that MCP has delivered in each of these areas. The power of MCP can also be seen in the synergies it creates, enabling businesses to leverage strength of our network with faster new product introduction as well as production and shipping efficiencies. This is especially evident in the exciting growth we have been seeing in cross Cimpress fulfillment. E-commerce. Our e-commerce delivers robust, scalable, extensible multi-tenant e-commerce solutions that enable Cimpress businesses of all sizes and technical capabilities to swiftly and efficiently launch and manage modern e-commerce experience. [indiscernible] websites, these MCP e-commerce infrastructure businesses -- business can launch and merchandise products, physical products faster than they could do on their own. And that ensure scalability of product attribute modeling and leverage the full scale of Cimpress-wide fulfillment options by using additional platform capabilities such as prepress or the routing, they recognize even more value. Thus, the e-commerce offering is strongest when taking full advantage of the entire platform. And that is how we have achieved over 22 million orders flowing over in fiscal year 2024, equating to about 70% of Cimpress volume over MCP, and it's growing. Our product catalog gives businesses access to tens of thousands of products for new and existing businesses on the MCP, providing them with easy-to-use Product Information Management system, PIM, the PIM. The PIM provides innovative infrastructure to enable pricing strategies to sell to end customers and to other businesses transacting over the platform. Through the PIM, we have configured over 54,000 customizable products that far exceed over 500 million unique variance. Managing this massive amount of complex data behind our product and pricing configuration from paper-based products of all sizes to signage and apparel, and even digital products and services become significantly easier with this PIM. We are focused on allowing our businesses to easily build and manage a global network of fulfillers to save time, money and deliver the best possible customer experience. As shown in the graph of quarterly transaction volumes between production fulfillers and the customer-facing merchants, we're seeing strong growth in both third-party fulfillment and cross Cimpress fulfillment. And this expansion is driven by our efforts to reduce the friction in onboarding and transacting processes. And as a result, we're accelerating new product introductions for our customers, while improving cost efficiencies, which then enhances the return of investment in MCP. Of course, security and privacy is critical for Cimpress customers and also its stakeholders. We utilize cloud vulnerability management with central managed security services that are -- that all of our Cimpress businesses are required to adopt. Detecting and triaging potential vulnerabilities early allows us to address risk proactively and prevent security incidents before they start. This is how we have scanned over 1.5 million assets by centrally managed cloud vulnerability management tools. But more importantly, that the sheer number of assets covered is our ability to separate the signal from the noise and deliver actionable alert to developers and others in our organization, so they stay secure while they're focusing on innovating for our customers. Fully digital manufacturing information systems have been at the heart of Cimpress' print mass customization capabilities, since we even launched Vistaprint in 1999 and many other Cimpress business do the same with our own systems or with the help of MCP. MCP fulfillment is both helping Vistaprint become even more sophisticated and helping Cimpress businesses who are earlier in their journey towards automated and computer prioritized manufacturing. We are combining insights from our most advanced businesses, especially Vistaprint, and our most advanced Upload and Print businesses to bring these capabilities to Cimpress businesses, who lack the multi-decade base of expertise. Just in a recent example, we converted the production of a small tuck-in acquisition from manual-based paper forms to a fully digital production flow to [ vertically ] simplify production and to offer rush services and to produce orders coming in from multiple Cimpress businesses to that. And at a much larger scale, MCP is also at the heart of Vistaprint and National Pen production. And it is one of the many fulfillment capabilities that have allowed us to ship over 31 million parcels in fiscal year 2024. Leveraging our customer enrichment solution developed by the teams within the MCP data stack, we can tailor the entire customer journey and optimize value at every interaction in our process. As an example, in fiscal year 2024, we enriched over 2 million records for Vistaprint, providing data such as company size, industry, address, website and more. The data is now being utilized across various applications, including analytics and decision-making and such as identifying emerging customer segments, determining which segments to target with advertisement. Additionally, other businesses have used enriched data from e-mail conveyance and support prioritization, ensuring that the most relevant content reaches the right customers, and that high value leads and customers receive prioritized support. Recently, Vistaprint also has used this data to begin to test personalized home-based experience with product recommendations. For instance, when a restaurant customer logs in, they would see recommended specifically for their industry based on purchasing behaviors of other small business -- similar businesses. Thereby enhancing the engagement and the conversion rates. Looking ahead in fiscal year 2025, this data will play an even more crucial role in our operation with a greater emphasis on delivering more unique customer experience. Additionally, we will focus on creating ready-made designs for customers using this data, further reducing the design burden and driving higher conversions. More advantages are really -- of scale are work here. Customizing the design of a product is central to the concept of print mass customization. We provide customers super easy ways to create appealing designs for their customized products. This includes AI capabilities. We've invested deeply in AI and machine learning. Some examples of these capabilities include background removal, sharpening images like you see in the top example here on the slide, recolorization, smart crop, vectorization and broader redigitization. At the bottom, you see a nice example of that. And just to name a few. We have over 75 of these AI capabilities within our artwork tools alone and the number is continuously growing. We're also investing in generative AI to offer automated generation of customizable artwork. This includes the creation of content assets like the logos we see [indiscernible] all over here, we're seeing previews where you see the product in action in different environments and various other design generations. The artwork that is generated is highly customizable and compatible with our MCP capabilities to meet the needs of our businesses and our customers. I'm happy to say that we as a company have been and will continue to stay on top of these AI trends. Back in fiscal year 2019, we started adopting AI functionalities to improve image processing. But from there, we have kept on pace with the innovations from different AI tools. We take a strong look at AI available in the market and then determine which tools will be the most beneficial to improve MCP and support our customers and stakeholders with the best return of investment. We're not only using AI within our artwork technology domain, but have also used AI to improve that personalization framework, like the example in data or our data model mapping in our PIM or made to ensure that our systems are secure and enhance our collaboration tools within our organization. AI is truly revolutionizing our business in many places. So while we certainly made a lot of [ progress ] over the past fiscal year in building a more robust MCP for our businesses, our work, of course, is not done, and we remain laser focused on driving business success Cimpress-wide. In fiscal year 2025, we will continue to innovate and drive technology solutions to further improve the customer experience, expand the product range and serve a broader set of customer needs at scale. You'll soon hear from Paolo about some of this work as it relates to Upload and Print and later in the call from Florian regarding Vista. Thank you. And I'll now turn things over to Paolo for an Upload and Print update.

Thank you, Maarten, and good morning, everyone. I'm Paolo Roatta, CEO of the Print Group. I'm honored to represent Cimpress Upload and Print businesses, the portfolio of companies that make up 2 segments, PrintBrothers and the Print Group. PrintBrothers businesses include druck.at, Printdeal and WIRmachenDRUCK. Meanwhile, the Print Group businesses are Easyflyer, Exaprint, Packstyle, Pixartprinting and Tradeprint. I'm excited to share our progress with you today. So let's start with the video. [Presentation]

You can feel the power of Cimpress Upload and Print in that video. We are a great team, and we are focused on delivering great customer value, as I will show you in this presentation. But first, since this is an Investor Day, let me take a couple of slides to show what this means for shareholders. Fiscal year '24 financial results across the collection of Upload and Print businesses we are strong, our revenue, EBITDA and unlevered free cash flow were at record levels. Reported revenues was $996 million, up 8%. Combined Upload and Print EBITDA was $160 million, up 23%. EBITDA margin expanded from 14% to 16%, driven by a combination of good execution on efficiency gains and lower input costs relatively to fiscal year '23 levels for some of our raw materials and energy costs. Combined Upload and Print unlevered free cash flow grew 26% to $116 million as a result of the EBITDA growth and some favorable working capital changes compared to fiscal year '23. We continue to focus on new product introduction and improving our customer experience. As I hope to show you in this presentation, this group of businesses that collectively represent the largest online player in the Upload and Print market worldwide is constantly evolving to address customer needs and take advantage of market dynamics. We also focus much of our effort on driving our costs even lower, so that our customers and Cimpress can benefit. Our strong fiscal year '24 financial results are not unique. In fact, they are a continuation of consistently favorable returns and the strong growth since Cimpress acquired these businesses starting around 2014. These charts show the combined revenue and EBITDA for the trailing 12-month period before Cimpress acquired each business compared to fiscal year '24 results. Now in euros, that is a predominant currency issue we used to acquire the businesses. Now the cumulative unlevered free cash flow generated by these businesses since acquisition is nearly $700 million -- sorry, EUR 700 million, an amount that is higher than the total consideration paid, which was EUR 599 million. In fiscal year '24, our combined unlevered free cash flow was 18% of that total consideration, and we expect to continue to grow, which means we expect the returns will grow as well. On behalf of all of the leaders in our Upload and Print businesses, I can say that this makes us quite proud. We are empowered to drive these returns through Cimpress strategy of combining business level autonomy with advantages of Cimpress select few shared strategic capabilities. It's quite unique to be in that position and we are incentivized to continue building on our success. That consistent Cimpress strategy has allowed the Upload and Print businesses to focus on relentless execution year-after-year. Each Upload and Print business made progress against strategic goals in fiscal year '24. And I'll share just a few examples in this presentation. Let me start with some improvements to the customer design experience with our supporting improved customer acquisition, conversion, loyalty and lifetime value. Design enablement is an area that many of our businesses have improved. We find that even though Upload and Print customers have relatively sophisticated graphic design capabilities, they do appreciate it when we provide them with assurance along the way and make it as easy as possible to purchase something beautiful. Here you see two examples of this. The one on the left is a Pixartprinting design service offering, either file revision or file creation. The talented designers and graphic professionals who deliver these services are full-time team members of Pixartprinting and we are able to scale up quickly, thanks to Cimpress talent and operational infrastructure in Tunisia and in India. The combination means high-quality design services that customers love at a great low cost. The second one on the right is a template-based design tool and QR code generator that customers love. This leverages Cimpress group capabilities and helps Printdeal in this case, to attract a wider variety of customers. Multiple Upload and Print businesses have launched this type of capability. Now let's discuss two additional examples of innovation for the benefit of customers. The first is expansion of our product portfolio, which is happening both in the PrintBrothers segment and in the Print Group at a very rapid pace. Over 100 new products are introduced on a monthly basis, driving growth and meeting diverse customer needs through innovation. Another example of a customer experience improvement in fiscal year '24 is in customer assistance. Several of our Upload and Print businesses have introduced generative AI to assist customers 24/7 via chat. This allows our agents to focus on higher-value service capabilities. And thus, it has a double benefit to our customers in terms of the responsiveness and quality of assistance we provide. For example, in Pixartprinting gain, we currently have about 20% of all our chat volume fully managed by this generative AI system. At this end, it's increasing rapidly. We plan to continue to expand assistance channels that use this powerful tool. This introduction is positively impacting the conversion rate as customers are now receiving assistance 24/7, allowing us to address cases at times of the day that were previously beyond our capacity. We also made great strides in fiscal year '24 in manufacturing and supply chain advantages. Here, I show you just three examples of these improvements that drive product innovation and efficiency gains. I said last year in my Investor Day presentation that our drive for innovation isn't just about newness, it's about unlocking opportunities. Our goal is to enable our customers to order smaller quantities of custom products that previously were only available in high quantities with long lead times. We are consistently rolling out new products and features that are not only affordable, but also yield a healthy profit margin for us. And we are far from done here. In fact, as Robert and Maarten have mentioned in their presentations, our businesses have additional opportunities when we innovate, as it only -- as it not only benefits the business who has launched the product or who has driven efficiency gains through MCP powered cross Cimpress fulfillment, it increasingly benefits other Cimpress businesses as well. And we expect to continue to accelerate this in fiscal year '25 and beyond. This is about driving high volume of custom orders through specialized production lines, optimized for prototypes, specific unit volumes or other key attributes. As we move forward, we envision further specialization of some of our production into focused hubs, where that makes sense for improving the customer experience. We believe this will amplify the work done by an individual business, and so it benefits both customers of Cimpress businesses and Cimpress investors. The second way that we innovate is in partnership with the top equipment providers in our industry, who we consider to be our partners. We often approach this development collaboratively for mutual benefit. When we unlock and improved capability together, our businesses typically have an exclusive right to use that new capability for a period of time. We benefit in terms of capturing efficiency gains that aren't accessible by our competitors allowing us to establish a new product or production technique that enhances our competitiveness in areas such as quality, flexibility and cost. And finally, our businesses are great at using ever greater scale to reinvest in equipment upgrades and automation that help us improve our capacity utilization of our existing production footprint. And I will also share a couple of fiscal year '24 successes towards our journey to provide more sustainable and responsible products. Our investment of time and resources here reflects customer sentiment as well as our own commitment to environmental responsibility, reducing risk and capitalizing on the opportunity of further innovation. I will share two examples. First, you may know of Cimpress overall commitment to improve the profile of the plastic products we sell. One of the targets in this area is to eliminate problematic plastics from our portfolio. PVC and polystyrene are both problematic when they degrade in landfills after the useful life. So we're working to find suitable alternatives to products in our portfolio that include these plastics and importantly, we're working together across Cimpress businesses and with our central procurement team to bring down the cost of the alternate materials, so that we can eventually replace the problematic products without impacting our bottom line and perhaps with great execution, contributing to profit growth from more sustainable products. Through the initial project phase of our work here, we have already reduced the cost of non-PVC banner material by $2 million annually just in Europe. Expanding this to North America will drive further savings. Subsequent phases of this project will focus on other products like foam boards as well as a big challenge for the whole industry, ensuring the recyclability of the products we launch. This is not always easy, but we are excited about the possibilities to make further changes that are appealing to our customers and our stakeholders. The next example is from Printdeal in the Netherlands and to explain that, let me share a video now. [Presentation]

Team members across our Upload and Print businesses are passionate about driving initiatives like Seaqual, our manufacturing efficiency initiatives and constantly expanding our product range. In summary, Upload and Print success comes from relentless focused execution within the long-standing Cimpress strategy and organizational structure, which combines autonomy with a select few shared strategic capabilities, always centered on improving how we serve customers via print mass customization. In fiscal year '25 and beyond, we will continue the same relentless focused execution. A continued drive to improve manufacturing and supply chain advantages to foster product innovation and efficiency, ensuring our customers receive superior value. A continued drive to improve customer experience and engagement with personalization and design tools, improving our already strong customer service and expert design services, driving more cross Cimpress fulfillment to further improve our offering and reduce costs, expanding our customer reach through products and capability enhancements and geographic expansion. Delivering operating efficiency gains that have been a part of our growing profits and cash flow over the years. And finally, to further improve customer retention and lifetime value by everyday earning the loyalty of customers. As I described in the years past, we have a long history of creating opportunity where it didn't exist before. And we will continue this focus in fiscal year '25, working to leverage the strength of each of our businesses and also the collective benefits of being part of Cimpress. Thank you very much. And now let me introduce Florian from Vista.

Thank you, Paolo, and good morning, everyone. I'm Florian, the CEO of Vista. And I'm excited to be here today to tell you the Vista story, update you on the progress that we made in the last fiscal year and tell you about how we're going to deliver value for our customers and for our shareholders in FY '25. At Vista, we always put customers first. So let's start there and play a short video, please. [Presentation]

11 million customers, just like the ones you just heard from, rely on Vista every year to fit out trade show and farmers market stalls to create eye-catching, packaging, custom stickers and marketing materials or high-quality merch that their customers are proud to wear. Supporting these 11 million customers, our 6,800 Vista team members working from over 25 countries around the globe. And we're here, they're here to help our customers at every step from finding the perfect item to helping them design it, produce it and get it to their doorstep. And of course, our backbone is our incredible manufacturing and supply chain, the DNA of Cimpress that Robert and Maarten also talked about. Our mass customization technologies mean customers can bring their business and brand to life on almost anything that can be printed. We're putting all of this talent and all of these capabilities behind one thing are North Star, to become the expert design and marketing partner to small businesses. Why do customers like those you just saw choose Vista. There are three things that set us apart. Our customers can create and apply designs to the most complete product assortment. They can find expert help anywhere in their journey, and they get a fair price across all order quantities. With that, let's look at FY '24 and how we did in the last fiscal year. A reminder for you all. First, in FY '23, when we talked last at Investor Day, we had just completed large-scale cost savings actions. And we had also just started our product development journey, having completed the switch over to a new tech stack. I'm proud to be here today to share the strong business performance results that we've driven in FY '24. So let's go through these results and start with variable gross profit. Variable gross profit continues to increase on a per customer basis for both new and repeat customers. And in the last few Investor Days, we've shown you that we're improving the per customer value for both new and repeat each year, and this year is no different. Remember, the major changes that drove this development were first and foremost, the shift away from discount-driven growth, which we started to address, starting in the mid-FY '19, and then our ability to more than offset inflation in cost of goods sold from mid-FY '20 through much of FY '22 through pricing actions, raw material deflation and an improved and evolving value proposition and rapid growth from higher-value customers, especially in FY '23 and FY '24. As we've also shared with you in the past, while we were able to improve these per customer economics, we suffered from a loss of customer volumes, many unprofitable after advertising but also some profitable, but still very discount-driven and also pandemic-driven volume drops. FY '24 marked a big change in that regard because in addition to the growth in per customer economics, which you ship, as you can see on this chart, we're now also seeing customer counts grow again. So let's take a deeper look at that. Over the last 6 quarters, we've been growing the number of customers we serve. One way to look at the health of the business is to ask the question, out of 100 customers who bought with us last year, how many came back this year? And in FY '24, that percentage number was the highest it's been in the last 14 years. Not only are we getting a repeat, we're also attracting new customers at a higher rate, 4.8 million in FY '24, which was 6% more than in FY '23. So let me again repeat why this is important. In recent years, we've driven customer cohort value by increasing the profit per customer. Now the lifetime value from our customer cohorts is growing again, not just because each customer is spending more, but also because we're getting better at both retaining and attracting customers who like our value proposition, which has come so far from Vista's pre-transformation discount-driven business card brand reputation. And the customers who are acquiring and retaining aren't just any customers. They are high-value customers. We're seeing outsized growth coming from our top two customer deciles, as measured by their variable gross profit growth relative to the average across all other deciles. So please take note that these numbers on this chart are variable gross profit deciles. These are not revenue deciles. In fact, the top 2 deciles accounted for 75% of our variable gross profit growth in FY '24. Orders and variable gross profit after customer service costs grew also disproportionately for our top 2 customer deciles at 6.1% and 12.5% year-on-year, respectively. Now we've done a lot to improve the experience for these high-value customers. And what happens when you focus so rigorously on the needs of your highest value customers, there's also a lot of good things for all other customers, and you can see that on this chart as well. It wasn't just the top two customers that grew. We're also seeing increases across all of our deciles. Even our least profitable decile 10 on the left-hand side of this chart, recorded an increase, thanks to optimization actions that we delivered successfully. There are many examples of how we're improving the experience for our high-value customers, and I'm going to just highlight 1 year that we found to be very impactful. One of the defining characteristics of a high-value customer is that they typically explore and purchase a much wider range of products within our assortment. And of course, we can influence this behavior. We can influence this behavior by making changes to the website experience, for example, how and where we surface product recommendations. And this also underpins our strategy to focus on categories like promotional products, apparel and gifts, signage, packaging, et cetera, that are attractive categories for the customers who spend the most with Vistaprint or with small traditional printers who still represent the majority of our addressable market. You just heard me say that we're both retaining and attracting customers at a higher rate. Well, trust me, this is happening in conjunction with the data-driven improvements that we talked about in the past that we continue to make to our marketing, which allows us to stay disciplined with our ad spend. This chart, which we've shown in several other occasions, shows the variable gross profit return on advertising spend for the paid search nonbranded channel. And you can see we've been reaching close to 100% return threshold. And of course, when you're serving higher-value customers, that helps returns too. So let me bring this all together, and we're looking here at contribution profit. As you can see on the chart, contribution profit is up from $577 million in FY '23 to $659 million in FY '24. And let me just summarize again what's driving that growth in contribution profit. It's, as we've just seen, more gross profit per customer, more customers retained and acquired, winning with higher value customers, while at the same time, spending underproportionally on advertising. And you can see that in the line, the light blue line here, which shows our total ad spend as a percent of revenue, and that includes all advertising spend, not only paid search, but also upper mid-funnel spend. And you can see here that as a percent that number has been going down. Combined what I just said with our operating expense reductions and what this leads to a significant expansion of EBITDA in UFCF that we've been able to deliver. And the improvements we've made to the lifetime value of our customers, combined with last year's broad cost savings measures, underpin our delivery against all of our key financial metrics in FY '24, which we're obviously very happy about. Even with that increased focus and prioritization, there remains a meaningful amount of growth investment in the business, and that's primarily focused on product development and marketing and brand-oriented advertising spend. In FY '23, we set two priorities, and these two priorities will remain, build products that customers love, elevate the speed and quality of our execution. This uppermost focus -- this focus on these uppermost priorities helped us deliver all the progress you just saw, winning back customers, keeping them for longer, monetizing them better. Investing in our overall product experience to make Vistaprint more intuitive and easy to use from discovery to purchase. And internally, we're operating with increased clarity in a new operating model that allows us to be more nimble and to focus on the right goals. We are heartened by the progress that we're seeing, but we also know this is a long game. And so we continue to focus on the priorities that served us well. Let's talk a little bit about what those are for FY '25, and I'd love to briefly walk you through the five key drivers that will help us deliver value to our customers and shareholders in FY '25. There's five of them. Seasoned growth opportunities in print, driving efficiency in manufacturing and supply chain, improving the product experience, making customers fans for life to help and expert services and evolving our media mix for better returns across the marketing funnel. I'm going to quickly walk you through each of these five drivers. And let's start here seizing growth opportunities in print. As you can see on the chart, more than half of our variable gross profit now comes from categories such as promotional products, apparel and gifts, signage, marketing materials, packaging and labels. These categories are growing at rates well over 10% annually, and they all represent sizable opportunities for us to acquire and retain high-value customers and serve them more holistically across all of their print needs. And in case you're wondering, the leftmost column here, FY '18, it's there because it's the last full fiscal year, before we started to significantly reduce nonperforming advertising spend and optimize our discounting and pricing strategies. We're uniquely positioned to continue to seize these opportunities. Thanks to our manufacturing capabilities, including capabilities that you heard about from Robert and Maarten and that we share with all the Cimpress businesses, our proprietary MIS system, investments in bespoke website experiences and our ability to help customers with design and expert advice, something that they often find the need, especially for more complex product categories like packaging or booklets. Let's look at the second driver, efficiency in our manufacturing and supply chain. Our manufacturing and supply chain is a serious competitive advantage that we're determined to extend. And as I just mentioned, we're convinced that there is a big value creation opportunity by leveraging the Cimpress MCP product catalog and product marketplace, allowing Vistaprint customers to benefit from new product introductions produced by other businesses like Paolo's including third-party fulfillers, driving manufacturing costs down by leveraging specialized production lines in other Cimpress businesses, for example, that BuildASign in North America, or helping other Cimpress businesses serve their own customers better with products that Vista has created a special competency for, be that business cards or apparel products. Besides, we're driving efficiencies and continue to invest in CapEx that will make our production processes more efficient and improve quality. And we're also adapting our capabilities to customer preferences like fast delivery or sustainable options. Let's look at our third driver, improving the product experience. In FY '24, we worked really, really hard across all aspects of the product experience, mostly focusing on the basics, but with an ultimate goal to make it incredibly simple for our customers to find, design and purchase the products they want. And this work will continue in FY '25 and it's intentionally broad. I did want to still highlight a few specific initiatives that are aimed at our highest value customers. And as I mentioned earlier, these customers are already shopping across our entire product portfolio. And therefore, we figured that finding intuitive ways to reinforce this cross-category shopping behavior is an important value driver. A key initiative that we ran is what we call smart recommendations. This is a feature that surfaces relevant products and allows customers to see their personal designs across various items. When we launched this feature, it led to an increase in engagement rates, add to cart rates and multi-category purchases depending on the product category. So there's some real good traction that we continue to build on in FY '25. Another initiative aims at making it easier for customers to apply designs consistently across multiple products. Over 100,000 customers contact us every year, to request that we apply a design of theirs to an additional product. We, therefore, started to build experiences that surface groups of products with a cohesive design and brand look, and are making improvements to our design experience to allow customers to apply the same design across a wider group of products. A key design for any customer is, of course, their logo. And remember that last year, I talked to you about the recent launch of our DIY, do-it-yourself logo maker tool. I did want to talk about that briefly because we continue to see real good traction there, and remain excited about the opportunity to create a deep connection with customers early on in their life cycle, when they start to create the identity of their own business, which surfaces through their logo. In FY '24, our customers downloaded 1.1 million logos that they created with our DIY logo maker tool. And the size of a portion of these logos do end up on a printed product, and the gross profit associated with our DIY logo maker tool grew 67% year-on-year. Of course, we're starting from a small base, but we really like these growth rates. And these lower customers have a higher value than our average customers and therefore, we'll continue to invest in our logo maker experience. Zooming out from this a little bit, this is just one example of the types of capabilities that we've been building including at the Cimpress level and that we can now turn to products that have a real impact for our customers. So we're extremely excited about what's ahead of us in FY '25 as we continue on that journey. Let's talk about how we're working hard to make our customers' fans for life. And the key to that is offering help and expert advice. This is a key to our customer success. A customer who has a positive interaction with one of our care agents or experts has a higher likelihood of ending up as a high-value customer. And these types of interactions just give you a sense for what those are. A lot of times, our customers just want that bit of reassurance. They're asking, "Hey, does this look good to you or just want some light advice on how to improve their design." And while that will continue to be a customer need forever, I'm convinced. And the technology, of course, to meet those needs, keeps changing. And so we also keep adjusting our capabilities and our service delivery model, specific opportunities that we see are providing customers help anywhere across the journey. And we see additional opportunity to provide them with live design support and advice on -- particularly for the complex and higher-value product categories that you heard us talk about throughout this call. Speaking of expert services, we simplified our expert services offering, which helped lead to a volume growth of 52% year-on-year in the last fiscal, but we still think we can do a lot more to expose the service and enlarge our offering. And of course, we're embracing Gen AI. We're making strides to use Gen AI to help our care specialists and designers, reduce time-consuming and repetitive work and provide our customers with additional ways to self-serve. The delight that customers get from knowing that there is an expert on the other side of the phone or chat is incredible. It helps them to trust that their design will work, that it will apply well to the products that they chose and that they can purchase in confidence because we were there to help. The final area that I wanted to highlight to you today is how we're evolving our media mix for better returns across the marketing funnel. While we've made significant improvements to both the efficiency and the volume of our performance channels, our experimentation has taught us that we can drive incremental profit after advertising through a more diverse marketing mix. It's, of course, a delicate balance between driving the longer-term media mix shift and delivering near-term results. But our full funnel tests demonstrated that a more diverse marketing mix can increase branded search volume. And we believe that the increase in branded search volume will help us move towards our goal of improving our marketing spend effectiveness overall. What does this look like in execution? Over the past 2 years, we introduced our We Print That campaign. This campaign gives us a consistent platform to double down on our print products and solutions, showing how we can be a partner and it scales incredibly well across all funnel stages, channels, campaigns and categories, small business and consumer, as we bring awareness and consideration to a broader set of products and also customers. Following the success we've had; we're currently rolling out the We Print That 2.0 campaign with our refreshed branding. So let's take a quick look at the broadcast creative plane in our North American markets. [Presentation]

I will end by reiterating what I said to you all last year. There's a big opportunity ahead of Vista, and we're bringing strong momentum into FY '25. We'll continue to execute well and deliver value to our customers by building products they love and that will help them market and grow their own small business. Thank you all for your time today.

Okay. Thank you, Florian. Great presentation so far at Cimpress's Investor Day. We are now going to take a 10-minute break to allow folks to stretch your legs or grab a coffee. But you'll want to come back, obviously, because then Sean is going to provide a financial review, and then we'll have the Q&A session. So as a reminder, if you want to submit a question, you can do that in the Ask a Question tab of your webcast viewer. So with that, it's 9:18 right now. We'll see you back here, let's say, 9:30. We'll see you back here to finish the rest of the presentation. Thank you. [Break]

Hey, everyone, and welcome back in this last session here before we go to Q&A. We're going to cover a few things. First, a brief look back at our financial performance in 2024. Then we'll cover several capital allocation and capital structure topics. And then finally, I'll discuss our multiyear outlook and some housekeeping items. As Robert mentioned in his presentation, and you've also seen in the prior sections, 2024 was a really strong year for Cimpress. We've been able to turn our focus to relentless execution, leveraging all the changes and the investments that we've made over recent years. And we delivered in turn, our highest ever revenue, adjusted EBITDA and adjusted free cash flow. I'd like to say that this is a new financial foundation from which we now can continue to improve. And so with that, let's jump in. I'm going to click through relatively quickly our consolidated results. We published these results at the end of July, so they've been out there for a little bit. And to start, in fiscal '24, Cimpress revenue grew 7% on a reported basis and 5% from a constant currency revenue perspective, supported by growth across all of our business segments. Moving to our profitability on the next slide. On the left here, you can see our GAAP operating income and on the right is our adjusted EBITDA. For fiscal '24, our adjusted EBITDA was $469 million. That was up 38% from the $340 million in fiscal '23. And it was up 67% from the $281 million in fiscal '22. We're really proud of the progress that we've made, and that progress has been made through a combination of revenue growth, from gross margin expansion, advertising spend leverage, which you heard a little bit about from Florian and also cost reductions, which included the focusing of our investments. And I think the ingredients to that progress that we've made remain very much in focus as we move forward as well. On this next slide, you can see our cash flow trends. On the left is our cash flow from operations. And on the right is our adjusted free cash flow, which also shows our net cash interest cost so that you can get back to an unlevered free cash flow. The strong profitability that we had in fiscal '24 contributed to the significant increase in free cash flow as well along with strong working capital inflows and over $20 million in proceeds from asset sales that we had during the year. Fiscal '24 was a very strong cash flow year. I think it's important to note, as I'll cover later, that we achieved that profitability and the cash flow results you see here, while we're still investing significantly for our future growth. On the next slide, you'll see on the left is our net debt over the last 12 years, going from a starting position of a cash position in 2011 to $1.4 billion of net debt at the end of fiscal year 2024. And during fiscal '24, we repurchased a little over $26 million notional amount of our 7% senior notes, which were due 2026 at an aggregate purchase price of $24.5 million. And our strong free cash flow generation in this last year helped us to lower net debt as well, even while we allocated $157 million to the repurchase of 1.7 million shares, which you can see in the decrease in our shares outstanding on the right side of the slide. You'll note that despite the reduction in shares outstanding, our weighted average diluted share count we use for GAAP purposes increased, and that was primarily due to the increase in our share price which resulted in equity awards and warrants that are now dilutive when in the past they were anti-dilutive. Turning to the next slide. You can see here our net leverage profile over time. We ended the year at 3.0x our trailing 12-month EBITDA, and that's as defined by our credit agreement. That's down year-over-year from 3.9x, and we ended the year better than the initial target that we set for FY '24 that we were talking about in this event last year. I'll give some more commentary in a bit about our leverage policy going forward. But the progress that we made since the high point on this chart, when our profits were burdened by both planned investments, but also inflation. That progress that we've made is something we feel really good about having delivered and we did exactly what we said we would do and more, and we made this balance sheet progress while still investing organically while repurchasing 7% of our shares outstanding as of the end of last year, all at attractive prices in our view, and we bought in some of our bonds at high returns. So I think that's been a very good set of progress for this last year. That progress on the balance sheet and also our decreased net leverage has also been recognized by the credit rating agencies. Over the last 2 weeks, we've received upgrades from both S&P and Moody's, that was the second upgrade from each of those agencies since this time last year. And now our current corporate family or issuer rating is Ba3/BB-. On the next 5 slides here, I'll just provide a quick financial overview of our results this past fiscal year for each of our business segments, especially the ones that we haven't heard already covered through the presentations here today. And as I go through these, I'd really encourage you to focus not only on the changes from last year, but rather to look at the arc of progress over time, and for these segment slides, we show our results back to 2017, which is the first year in which we started to report our segments in this way. And I think it's that in the understanding of the ingredients of that progress over a longer period of time that provides confidence in the ways in which we can deliver the multiyear outlook that I'll talk about later. And there's also been a lot of consistency in the management teams across Cimpress that are tasked with delivering that continued progress. So here on the slide, starting with Vista. Very good results, as Florian highlighted, and that was driven by the continued progress that we had in increasing per customer value, but also in improving customer acquisition and retention, thereby growing the number of customers that we serve. Again, all that done through the initiatives that Florian summarized earlier. The significant increase in EBITDA and our unlevered free cash flow was also driven by OpEx reductions, which included the focusing of where we're investing. It was helped by gross margin expansion, including from the reduction or stabilization of input costs and also the higher pace of new product introduction, strong year. Turning to Upload and Print, and Paolo, walked through the Upload and Print results already. Organic constant currency revenue growth was a little bit lighter this year after a couple of incredibly strong years of growth. But the profitability gains are notable in FY '24. And in our view, there's a long runway for these businesses to continue to grow in the coming years. And that growth, in our view, is going to be driven by increased innovation and production and supply chain, enabling new products, which is something that these businesses have done consistently for many years, improvements in production efficiencies, our relentless focus on customer experience, and also increasing cross Cimpress fulfillment. I'm going to share a little bit later an overview of returns on M&A later. For Upload and Print, again here, I would just emphasize the longer arc of progress in these businesses that you can see on the slide. For National Pen next, National Pen reported revenue of $391 million last year with an organic constant currency revenue growth of 5%. And that 5% growth is really driven mostly through their growing e-commerce sales and fulfillment for other Cimpress businesses. That was partially offset by a reduction in direct mail sales which was driven by a choice to spend less in advertising for that legacy channel. That reduction in advertising or choice to spend less in advertising plus gross margin expansion and some other efficiency gains translated to EBITDA of $32 million for the year. That was up from $24 million in FY '23. And unlevered free cash flow was better too in FY '24. That was mostly driven by the increased profitability, but there's also some working capital improvements and National Pen, relatively speaking, holds a little bit more inventory than our other businesses, and there were some improvements there. For BuildASign, BuildASign is part of our all other businesses reportable segment. BuildASign reported $189 million in revenue last year, translating to 1% growth in reported and constant currencies. Strength in signage sales and also cross Cimpress fulfillment, mostly for Vista was offset by some of the headwinds they experienced in the home decor segment, but also for real estate-related products in their enterprise customer division. EBITDA for the year declined just a little bit from $28 million to $27 million and that was partly due to earlier in the year some less efficient advertising. The team there, we have a really strong team at BuildASign. They're executing a plan to drive continued efficiencies to do that in production, to do that in advertising. And from an advertising perspective, also test into a differing channel mix as well. It will take a little time for those to show through the results, but we feel confident in the plan and the team that's delivering that. The unlevered free cash flow decline they see from FY '23 to FY '24 includes some CapEx spending, which was related to the build-out of a new facility in Mexico that should allow for a lower cost of production and also for future growth both in BuildASign, but also will benefit Vista in North America as both a source of efficient production, but also for new product introduction. Next up and finally is our early-stage business category, which over time has included different things. This is also part of our all other businesses segment. And in fiscal '24, this segment -- or sorry, this business category only includes Printi, which is our business in Brazil, which reported revenue of $27 million for fiscal '24. That was a 2% increase in organic constant currency revenue compared to fiscal '23. Printi was just below EBITDA breakeven this last fiscal year. And we really -- we believe this business is on a good trajectory now to be able to deliver sustained profitable growth. You can see also cash outflows decreased year-over-year, and that was despite some investments in CapEx for new product categories in FY '24 as well. Just as a reminder, we exited our loss-making business in China during FY '23. So that impacts the comparison to '24 as well. Turning to our steady-state free cash flow. On the next slide here, you can see the results of our steady-state free cash flow calculation. And just definitionally, that's an annual estimate we make of the range of our unlevered free cash flow that we believe we would have delivered if we had not invested other than to just maintain that steady state. The difference between what is our actual reported unlevered free cash flow and the estimates of steady-state free cash flow that you see here represents an approximate range estimate of the capital that we allocate to organic investments to grow our business beyond steady state or the things that we believe weren't otherwise needed to maintain our steady state. And as you can see from the chart here, our approximate estimate of our likely range for steady-state free cash flow for this last fiscal year is between $449 million on the low end and $479 million on the high end. In addition to the estimates that we make of our growth investments as part of this calculation, we also had about $61 million of collective downward adjustments that we made to our underlying reported free cash flow results that we believe are not steady state. And you can see those enumerated there in that yellow box. The largest components of that $61 million downward adjustment that we made are: one, our non-steady-state working capital. And a reminder that in FY '24, we had a very significant working capital inflows, which are higher in our view than what we would have in a steady state. So we have a downward adjustment for that. And then we also removed the proceeds from asset sales that we wouldn't have in a steady state. Turning to this next slide here, you can see the trend in our steady-state free cash flow over time. Our estimate at the midpoint grew 6% this year when you compare it to fiscal '23. And that's even though in last year's estimates, we had already pro forma-ed for the expected full year impact of the cost reduction actions that we had taken. We use the steady-state free cash flow estimate as an input into how we estimate our intrinsic value per share. And Robert spoken numerous times about our journey here to improve shareholder returns over time. And after we've been doing this for about a decade now, this type of analysis, we continue to learn and improve our understanding of these concepts also our ability to estimate. We think that now the range of judgment required in these estimates has narrowed from what it was in years past. And also, our focus now is remaining on ultimately how we continue to improve our steady-state free cash flow results and do that relative to the level of investments that we're making over time. In the next slide here, you can see a summary of the estimates that we've made of the organic growth investments that we're making in our business that aren't needed to maintain a steady state. This is something we publish every year in Robert's annual letter to investors. So what you're seeing on the slide here is a representation of that, there's nothing new here. This was disclosed at the end of July. But here, you can see the impact of those growth investments on the left-hand side, the impact on our EBITDA. And then on the right-hand side, the impact on our unlevered free cash flow, so that would include things like capital expenditures, capitalized software and so on. And if you just pan out here on this visual, you'll see 2 things. The first thing is that if you look at just the colors of the bars, outside of Vista and MCP, which Maarten discussed earlier, our growth investments are not that significant outside of Vista and MCP. And outside of those 2 areas, A lot of that growth investment is from growth CapEx with very calculable returns. So that's one. The second thing is that you'll note that our organic growth investments have come down since fiscal '22. And that was mostly as a result of the refocusing of our investments connected to the cost reduction exercise that we undertook in March of last year, but our investments do remain significant. For the Vista section there, which is the biggest, we estimate the growth investments in fiscal '24 were about $112 million, and that's the impact on our cash flow. So it includes CapEx and a portion of our capitalized software. We're continuing to see the higher levels of organic investment at Vista because we believe there are opportunities to continue to improve the customer experience in ways that Florian described earlier, to continue to invest in productivity enhancements and growth in new product categories. And those investments are what are helping to drive the significant growth in the gross profit of categories outside of business cards and consumer merchandise that Florian highlighted earlier, which has been quite sizable over the recent years. Our combined organic growth investment in our other businesses, BuildASign, National Pen, Upload and Print, Printi fell for a second year in a row in fiscal '24. And that's mostly because those businesses are primarily focused on leveraging the investments of recent years, including the modernization of technology in most of those businesses. And then in MCP, you can see we've actually decreased the level of growth investment we estimate by $4 million. That said, the costs, including third-party costs, to maintain MCP have increased as more of our businesses put MCP technologies into use. But we've shifted more of our assumption of what percentage of those costs are really investments from growth to maintenance spend because those services are now more and more integrated and required in our ongoing operations. In the aggregate, we expect that organic growth investments will have a similar impact on EBITDA in FY '25 as in FY '24 and therefore, to imply no sort of inflection point that weighs on profitability but for the impact on our free cash flow, we do expect higher growth investments in FY '25 as we invest in CapEx that's intended to drive new product introduction and efficiency gains, most notably in Vista and Upload and Print, but that is actually true for all of our businesses, and that's something we've been talking about for the last few quarters in our recent earnings documents. Turning here to the next slide, you'll see a history of our M&A returns. This is the same slide that we used last year just updated for 1 more year of information. And we've talked about M&A in terms of capital allocation recently, and M&A isn't in focus right now in terms of material allocation of capital towards M&A. But we do think that we're the consolidator of choice in what is, as Robert described, a really large fragmented market. And so we think over a long-term period, this is still an avenue for capital deployment that can have high returns leveraging our unique advantages. About half of the Cimpress fiscal '24 revenue and a substantial part of our EBITDA was from businesses that we've acquired over the years and then subsequently grown. Our Upload and Print businesses, National Pen and BuildASign are the larger ones that we've owned for multiple years and all 3 groups have clearly demonstrated their ability and our ability to leverage Cimpress' strategic capabilities to help drive improved financial results. On the slide here, you see the trailing 12-month revenue and EBITDA at acquisition for each of those 3 and we've compared that to the most recent results in FY '24, again, for both revenue and EBITDA. And then on the right, we show the cumulative unlevered free cash flow since ownership for each group or business and also the percentage of unlevered free cash flow in FY '24 relative to the total consideration that we paid for those businesses, therefore, sort of a cash flow yield. Paolo already walked through the Upload and Print numbers in his session, but just to reiterate there, under Cimpress ownership, our Upload and Print businesses have generated now cumulative cash flow that exceeds the total capital we invested. And as you've heard, we continue to believe that these businesses have strong prospects for future growth. The unlevered free cash flow that we generated in these businesses in fiscal '24 alone, represented 18% of the total consideration paid for those businesses. So very strong returns there for what was collectively our largest investment from an M&A perspective over the last decade. As for BuildASign and National Pen, the estimated return on capital that we've invested there in those businesses more or less approximates our cost of capital. We think that we can improve those outcomes, and we're working to do that over time, and we have plans to do so, and we look forward to updating on that in the years to come. As we've outlined in our most recent earnings document, we do plan to provide on a go-forward basis multiyear outlook commentary. And I'm just going to reiterate that now. The first of which is from a revenue perspective, we expect consolidated constant currency organic revenue to grow annually at mid-single-digit rates possibly a little higher. From an EBITDA perspective, we expect adjusted EBITDA to grow slightly faster than revenue, thereby implying margin leverage. And we expect a multiyear conversion rate of that adjusted EBITDA to adjusted free cash flow to be approximately 45% to 50% with fluctuations from year-to-year for things like timing of working capital or years where CapEx intensity may be a bit higher or lower. During fiscal '25, we do plan on continuing to delever the balance sheet, and we plan to do that while maintaining the flexibility to take advantage of opportunities. Our leverage policy remains as such and what I'm about to share is very consistent with what we've shared in the last 2 quarters. And that is we target net leverage at or below approximately 2.5x trailing 12-month EBITDA always as defined by our credit agreement. And then we may, from time to time, increase leverage to as high as approximately 3.0x for investments that we believe to have a good return but with a clear path for us to delever to the target of approximately 2.5x or below. We do anticipate that we can reach that target of approximately 2.5x by the end of the fiscal year 2025, that's if we were to not make share repurchases. So let me just kind of give an overview from a capital allocation perspective, what we expect for FY '25. And that is that we expect, as I said before, to continue with roughly similar levels of operating expense, organic growth investment as the current run rate. We do expect an increase in CapEx, as I also outlined, and that's to capitalize on opportunities we see for new products and productivity-enhancing production equipment. We don't expect to deploy significant capital to M&A and then for repurchases of shares and our debt, we do expect to do that if it's available at an attractive price. But on the share repurchase front, that would be subject to a net leverage constraint of exiting fiscal '25 at or below approximately 2.75x. In our most recent earnings document, we also provided some additional commentary that we thought would be helpful to investors just as some context and some help for building models for FY '25 in addition to some of the commentary we had already provided and I just outlined in terms of capital allocation and the higher CapEx. So let me just run through that again, which hopefully will be helpful. The first one, just from a currency perspective, we expect that the year-over-year impact of currency movements on our adjusted EBITDA will be approximately neutral relative to fiscal '24. And that's something that we have pretty good visibility on based on the way that we contract out and kind of average into hedges over time. And that's important to point out because that's in contrast to last year where we had a $19 million negative year-over-year impact in fiscal '24. So again, we expect the year-over-year impact of currency to be roughly neutral to EBITDA. For cash taxes, we expect to benefit from an approximately $10 million income tax refund that we expect to receive in fiscal '25. We've actually received a portion of that already in Q1. And then from a cash interest perspective, based on current interest rates and also our current debt structure, we expect our cash interest expense to be about $12 million lower in fiscal '25 compared to fiscal '24 and that decrease is due to mostly the 2 things. 1 is the bond repurchases that we made last year and then also the repricing of our Term Loan B that we completed back in February. And then lastly, from a working capital perspective, we do expect changes in net working capital to be a source of cash in fiscal '25, but we expect that source of cash to be much less favorable than it was in fiscal '24, which, as I said earlier, was a big working capital inflow year. So still an inflow just smaller than last year. Lastly, I just wanted to give a heads up on a reporting change that we're making as it relates to our segments, and that will take effect in Q1 of fiscal '25. So with our earnings document that we' release at the end of October. And this is just so you have some context and it only will impact our segment reporting does not have any impact on accounting and reporting of consolidated financial results. And that is that we're making a change to the way that we track financial results when our businesses buy and sell to or from one another. And that change will result in changes to segment revenue, segment gross profit and also segment EBITDA. Intersegment revenue and EBITDA will first then be eliminated. You might recall, today, we had that for intersegment revenue. We don't have it on the profitability side. So now we'll have that for both segment revenue and segment EBITDA and then that change will be recast backwards for two fiscal years, just so you have comparability. And prior to that, the impact wouldn't be material. The change that we're making here mirrors a change that we've made in our internal management reporting and so actually it required for us to update our external reporting accordingly. But that new approach allows us to -- and our businesses to access the ultimate Cimpress cost of fulfillment for a given product, which used to include a markup on that cost and therefore, that ultimate Cimpress cost can be used by our businesses to determine pricing, advertising spend, other operational decisions when the fulfillment is coming from another Cimpress business. The fulfilling business does still earn a markup on that, and so they have the appropriate incentives and then it's that markup that will be eliminated in consolidation. So from a Cimpress shareholder perspective, if you think about it that way, the only thing that matters when we have cross Cimpress fulfillment is optimizing decisions based on our ultimate Cimpress cost. And so that's what this change is doing. We tested this approach just to see how it would work for a few quarters last year. Based on that test, we think it will help us to accelerate cross Cimpress fulfillment through the use of MCP and also a marketplace approach across Cimpress, which you've already seen great examples of and we think makes a lot of sense from a Cimpress shareholder perspective. So just to reiterate again, no changes to consolidated financial results, simply a change in segment reporting, and we'll recast that backwards to help you out. So that's the end of my section here. Thanks a lot for your time. And Meredith, I'll hand it back to you, and I look forward to taking any of your questions.

Thank you, Sean. That is great. So we are now going to transition to the Q&A portion of our session. [Operator Instructions] We have had many questions that have been submitted. So we will get to those now. So my first question, Sean, I'm going to throw over to you. So here's the question. Given demands skews to small and micro businesses, how has the business reacted to economic recessions in the past and with all the changes that you've made in the last few years is the business more resilient today than it was before?

Yes. It's a great question, one that we get pretty frequently. And maybe just to start some context on how we performed in the past when there's been either recessions or macroeconomic slowness, the pandemic was an extreme version of that. But let's take to kind of macroeconomic declines or slowness. And the business -- our business had performed well. And I think that there's a few reasons for that, that are somewhat countercyclical. The first one is that, at least in the past, when there's been more sensitivity in terms of pricing, that generally led to an acceleration from off-line to online because it is online and through businesses like ours that there's, I think, an increased customer appreciation for our market-leading prices that allow them to save money and so we've seen that in the past that that's led to kind of an acceleration of that shift from off-line to online. The second one is that generally speaking, when unemployment increases, and we saw this again and sort of in an extreme way during the pandemic, when unemployment increases, self-employment increases as well and there's a need for our products. Small quantities, people need to create an identity for themselves. And that could be as basic as becoming a landscaper or something more sophisticated. But in any case, they need to create an identity generally in small quantities and they come to us for that. And then I think the other thing is that when marketing budgets or kind of ad spend wallets or whatever, however you call it, which might be more formal for a medium-sized business or very informal for a very small business. When those get constrained, the need for the product is typically still there for whatever they need. But oftentimes, they may be in lower quantities. And so when you get into those lower quantities, that generally -- that's a type of an order that we can serve really well or oftentimes even uniquely able to serve and so customers come to us. So those have all been what we've experienced over last economic slowdowns. But I think maybe just to highlight some of the characteristics of the business that also lead to that. We serve over 50 million customers a year. And we don't have any concentration from a customer standpoint, any individually significant customers. And in terms of the industries and end markets we serve, it is literally, it's a broad, broad selection of industries, end markets that covers all industries and when we've done this analysis in the past, at least in the Vista business, I think maybe the highest percentage in any given industry was maybe 7%. So it really covers everything. And what you tend to see is when there's volatility economically. There might be one segment that does better, one segment that does worse or a certain product category does better and in other product category that's worse but because of that diversity that we have and the customer base and the product portfolio, which is unique relative to our smaller competitors, that's allowed us to perform well. And so even if you look at how we've navigated things like macroeconomic slowness in Europe, even recently, we've gotten this question quite a bit recently, how is Europe doing, there's some pockets of that macroeconomic weakness and our businesses in Europe have been growing quite nicely, and I think because of some of those characteristics. That's not to say that there wouldn't be any impact, and we can never completely take the past and project that forward because every one of these can feel a little bit different. But we think that we can navigate it well based on the characteristics of our business but also, I think, navigated relatively speaking, better than our small competitors. And we saw that even during the pandemic, where revenues did fall but we were able to gain market share, and we extended our competitive advantages. So over kind of a multiyear period, I think that was probably a good thing for Cimpress. And then just in terms of the bottom line as well in terms of protecting profitability, we have a lot of variable costs in our cost structure. We can flex that with volume if we need to. Advertising is a big line item. A lot of that is performance-driven, and so we can flex that quickly. There's other examples as well. The pandemic was an extreme example of that, but I think we showed that we have that playbook, we can run it. And then the last thing is that all the orders that we produce are personalized, they're made on demand. And so things like obsolescence and inventory building that are risk for a lot of businesses are not material risk for us. So hopefully, that provides a little color.

Thank you, Sean. Appreciate that response. All right. I'm going to ask the next question of Robert. So Robert, what are the two fastest-growing products today and the two slowest?

Well, as we discussed in the prepared presentations earlier this morning, the two slowest growing are business cards and consumer products like holiday cards. Before going to the fastest growing, I think it's important to remind everyone of what we spoke about today. We've increased profitability in these slower-growing categories and a significant part of the slowness has been by -- due to our own actions, for instance, reducing our advertising or shifting the focus of our merchandising and advertising. Other parts of the slowness are based on market pressures as well. In terms of things we control, remember that in the second half of fiscal '19, we reduced our advertising by over 30% and almost all of that reduction was advertising for discounted business cards or during the holiday season, discounted holiday products. And at the same time, the last 5 years, we've steadily reduced our discount rates, and we've shifted our advertising and our on-site merchandising, especially at Vista, really everywhere, towards things like you saw today in the great we print that content in today's presentation and the video that Florian showed. And that focuses our customers on more complex, higher lifetime value, faster-growing product categories. Now in terms of faster or fastest-growing categories, we don't provide that detail for competitive reasons, but I can repeat that we said in the prepared presentation, we're growing well in multiple products that includes promotional products, apparel, marketing materials, signage and packaging. This is not a single category phenomenon, and we're quite happy with what we're seeing there.

Great. Thank you, Robert. The next question, I am going to hand to Emily. So Emily, Florian talked about how you're increasing mid- and upper-funnel marketing spend in FY '25, what does that mean in terms of advertising as a percentage of revenue in FY '25? And by how much does that extend the payback period?

Thanks, Meredith. I know Cimpress has shared that through Investor Relations communications that Vista will be operating within the range of about 15% to 17% of advertising to revenue and we will do that because we're going to fund the shift towards more brand building our upper funnel media through the efficiencies in our performance channels and also through just increasing the value of the customers as they interact with us. And related to payback periods, our full funnel testing shows that the brand media spend actually pays back faster than we initially had thought. And in fact, it's more incremental. And so that means it's much more impactful. And so by reinforcing our brand and by building brand salience over time, we think that will increase the impact and effectiveness of our spend and decrease our reliance on performance channels.

Thanks, Emily. Love seeing those new advertisements as well. All right. Our next question is going to be for Sean. As you look at the business over time, do you foresee another period of heavier investments like we've had in the last few years, which could pressure margins or are future investments more incremental?

As we sit here today, we certainly don't see a need for a period of heavier investments like we had in the last few years. And there was a lot that was unique about that as well. I think going through a technology migration where it took in Vista over 3 years to complete that. Yes, there was an increase of investments in fiscal '22 and into fiscal '23. The other thing that you don't see as much in terms of the inflection point is all the opportunity cost of not being able to improve the experience, not being able to launch new products. And those two things were happening at the same time. So we're through all that. And as I said, as we sit here today, there's no obvious need to be investing more heavily like we had been. That will always change over time. But I think there's a few things that I would point you to in terms of at least where we're focused and what we've tried to direct investors as well. And that is that in the first instance, as we've talked about our multiyear outlook and I reviewed that earlier, we said that we expect adjusted EBITDA to grow slightly faster than revenue. So we are definitely targeting margin leverage, and therefore, changes in investment intensity that applies would be more sort of marginal. The second thing is that we gave updated net leverage guidance and in order to achieve that, and we generate a lot of cash, so over the years that still provide for plenty of opportunity for investment. But that also provides somewhat tighter guardrails than we had before. And so I think you can take away from that. The plan is, for things to be a bit more incremental but that's also because we've been through that heavier period of investment and I think is now also up to us to make sure that we don't -- with the new technology stack that we have in most of our businesses and all the other improvements that we made that we don't accumulate new technical debt that would require such a change 4 years, 5 years down the road. But again, we don't foresee a need for a heavier period of investment.

Thank you, Sean. Okay. I am going to give Sean a break to review some of the other questions that came in more recently. And the next question is going to be for Christina Wick in Vista. So Christina, is progress in AI helping or hurting demand for 99design services?

I strongly believe that progress in AI is a positive thing in general as well as when it comes to design. Professional designers are becoming vastly more productive by leveraging like the fast-moving set of design-focused AI tools. And these tools, which are coming from many different sources are really accelerating the network of professionals who make up our Vista design experts, which we acquired via 99designs. That network was already highly competitive in terms of quality and due to the fact that they are predominantly freelancers who work from low-cost countries, they are highly competitive in terms of cost. So in summary, we think AI-powered design in the hands of our designer network should be analogous of what we think will happen in many other professions in which AI will drive enormous quality, speed and productivity improvements from law, to finance, to software engineering, to medicine and so on, like all of which still need human professionals. So for me personally, I'm excited to see how AI will elevate the type of design work that is produced by this community.

Thank you, Christina, and I am still waiting for an internal version of an AI tool that will help me deliver all of this content for an Investor Day presentation. But we don't have that one yet. At least we're just highlighting it. I haven't used it for this presentation, I swear. So we're going to go now to our next question for Robert. So the question is your Upload and Print segments are primarily based in Europe, what are the prospects of moving into North America, either organically or through acquisitions? If this is under consideration, what is your time frame? I love how they're asking for information that we probably would never give.

I'll give it away. So long term, this could be interesting. We get this question a lot. But our main focus today is in the businesses we're in today. In terms of M&A, specifically, we've said multiple times, we do not foresee any material M&A in the near term. But in terms of organic expansion, I do think Florian described good examples in his presentation, Vistaprint is actively improving its user experience around uploading designs that are ready to print. And that certainly is globally for Vista. But in North America, Vista is more than a $1 billion revenue business. So that is a great base upon which we can move into that market.

Great. Thank you, Robert. Robert, I'm going to stick with you for the next question. This one is, what is your position in the United States promotional products industry? What do you estimate is your current market share? And have you grown your share over the past 3 years? If yes, has it been organic or M&A driven?

The answer is yes, and it has been organic, not M&A driven. We have hundreds of millions of dollars in U.S. promotional products revenue primarily driven by National Pen and Vista. We have it outside of the U.S., but I'm going to stick to your particular question. And the majority of that U.S. revenues and global promotional products revenues, is via e-commerce. We do have some that is traditional National Pen channels like direct mail. But our e-commerce promotional products, revenues in the U.S. and once again, in other countries, are growing well over 10% annually, and they're really a great example of the type of product shift that we talked about today, which is driving our revenue growth.

Thank you, Robert. Okay, Sean, a question for you. Can you please comment on the rationale for your recent share sales?

Yes. I'm happy to -- I'll speak for myself here and Robert, please add anything you want. But I mean, I think first of all, insiders can sell from time to time, and there's all sorts of reasons for that liquidity, tax planning and so on, just like anyone else. But again, I'll speak for myself. I've been in the CFO role for 9 years. The first 8 years of that I was a net buyer of shares. Today, a significant majority of my family's assets are in Cimpress shares in terms of the potential value of my assets, we've worked really, really hard over the last 4 or 5 years to deliver improved value for shareholders. That includes ourselves. And so that was simply just some liquidity planning so that I can -- it actually -- in my mind, and I know the kind of the signal it can send in my mind, at least speaking personally, it actually allows me to think much more -- with much more clarity on the long term in the significant shares that I continue to have by freeing up a little liquidity, so that -- I know that other things can be covered. So anyway, that's my own justification, Robert. If you want to share anything, I'll turn it over to you.

Like I say I started the business 30 years ago. We've not done any share splits, and I have more shares today than I did in 2000, 2001. Now yes, I have sold. I've been paid predominantly through share-based compensation. Some years 100%, almost every year, 90% plus through share-based compensation. So it is a diversification. But again, as a family, we own over 90% of our assets are in Cimpress, and I'm very optimistic about the long term.

And we team members are very happy that the 2 of you are focused on the long term and are going to stick around for years to come. Robert, a question for you. So you showed in your presentation today that your revenue from business cards and consumer products is down over the last 5 years. I appreciate you're working to protect the profit pool of these products but why won't your other product categories have the same fate over time? How long do you think you can grow those other product categories until they mature and start to decline?

We have a long runway for these product categories. I think for several reasons. First of all, digital substitution is very, very unlikely to occur in the near future for things like apparel, drinkware, flags, banners, packaging labels. And that is different than digital alternatives to holiday cards or business cards. Second, these new categories we've shown have started to move online. It's less than 40% online, but it's moving online but in these more complex product categories, most competitors remain subscale and very few of them pursue the mass customization model, which Cimpress does so well. And that brings great customer benefits like lower prices, smaller -- more rightsized order quantities, faster delivery speed, which we believe will allow us to continue to penetrate this market. And third, if I step way back to a 10,000-foot level. At the highest level, over long periods a lot of time, it is perfectly normal. In fact, it's required that companies bring products through cycles of growth having grown maturity. In the "fate" that you mentioned, for business cards to consumers is more than 1/4 century of profitable growth, followed by a sustained period of increasing profitability. So profitable revenue growth for 25 years, followed by years of strong profits. And I really hope that all these other categories have exactly that same fate.

Great answer. Thank you, Robert. Okay. We're going to go back to Christina on the next question. A question is asking for an update, how is Vista doing to integrate 99designs and VistaCreate into its experience for Vistaprint customers. Can you provide an update there?

Yes. We are making steady progress in integrating the capabilities that these 2 acquisitions provided into the Vistaprint experience. From the design services and 99d perspective, as Florian mentioned earlier, design services volume on vistaprint.com is picking up at a rate of over 50% year-over-year. And while that's still on a small basis, remember that these are high-value customers with really strong lifetime value. Now the growth is a direct result of not only increasing the exposure of design services at the right places at the right time on vistaprint.com, but also because we're implementing and enhancing some of the software-powered workflows and the patterns that 99designs had originally invented. So for example, on the slide, you can see a lot better investments in our collaboration experience between designers and customers on vistaprint.com. We are not finished yet, and we see continued potential for growth in expert services. On the VistaCreate side, the respective product teams are entirely focused on improving the Vistaprint studio and gallery experience, leveraging the insights and the experience that they gain from building the VistaCreate product. And we are continuing to make investments in our design experience, including for social media. So we are making solid progress in improving the Vistaprint studio and gallery experience. One metric that we like to use to measure progress is the made at rate which describes what percentage of customers may get through creating a design and to the checkout stage. And we're seeing the investment reflected in that KPI year-over-year growth. So as a customer, too, you may also have noticed that we now offer you a greater choice of template than before. And that is a direct result of better workflows and automation in the technology underpinning the creation of design templates and assets. And again, this wouldn't have been possible without combining the experience of the former Vistaprint and VistaCreate teams together.

Excellent. Thank you so much, Christina. So we have 1 more question that has been submitted. And that is something that I'm going to ask both Florian and Paolo to weigh in on. So Upload and Print businesses are adding design capabilities to attract a broader set of customers. Vista is investing in design services to retain small business customers as they grow and professionalize and is improving business upload experience. Can you explain your strategy here?

Sure, let me start. There is a growing demand for more services and assistance by our customers, even those that are more skilled in terms of graphic arts. So even they're more for professional customers because they look for ways to make their daily tasks easier and more efficient. So we believe that for us, simplifying the user experience is a critical factor of success. So by adding design capabilities and support services, we aim to remove those headaches for our customers. We aim to remove those headache for our customers. So we believe that while Vista is focusing on small businesses that grow and professionalize our Upload and Print businesses are expanding their services to cater to a category of customers that are more in need of this kind of services. So regardless if our customers are small businesses, or large enterprises or professional designers, we believe that meeting their needs is what we are in the market for. So it isn't about competing. It's more about responding to market trends and meeting the needs of our customers.

Yes, I'm happy to add to what Paolo just said, so completely agree. And really, there's a notion here of internal competition. Really, that's not at all about sort of how we're thinking about driving value for the business. You remember, as part of Robert's presentation, the chart that shows the TAM that we're in. This is a massive market. It's a huge market for Cimpress, and we're much more focused on how we can get our hands around that big opportunity out there than sort of competing with each other. And bear in mind that Vista's customers aren't the print professionals that are Paolo's customers and my other Cimpress colleague's customers in Upload and Print. And really what makes us special at Cimpress is that we have this unique power to cater to the needs of these different customer groups, the professionals and the casual print buyers alike. So the best we can do really is to leverage the capabilities that we have built and that are available to all of us to win as a group and drive shareholder value. Robert, do you want to add as well?

Yes, I'll just add the following. Clearly, we've talked about for years that the high-level customer needs are different between uploaded design and in browser design. But even if we look at one of those categories or the other, and I'll give you an example in Upload and Print, we find that multiple brands can do well. As an example, we've done customer overlap analysis in France, where we have 3 very strong Upload and Print businesses. And by the way, we have a strong Vista business. And even though you'd argue those Upload and Print businesses are very similar customer needs, they have a very low percentage of customers that cross-shop between those different Cimpress uploading business -- Upload and Print businesses in France. And I haven't seen data as it overlaps to Vista, but I think the overlap would be even smaller there. So just reiterating what Paolo and Florian said, this is a big market. So Meredith, I think you've texted me that we're running out of time. So I just want to take a moment to summarize by saying, I hope you see how we've made great progress. Certainly, it's visible in the last 12 months. It was visible to turnaround financially that started last year in 2023. And I think it's a real testament to the work that's been done for the last 5 years, all the way through the last 5 months by the teams across Cimpress. We've made great progress. We have a strong opportunity in front of us. We hope that you agree with that. We really want to thank you all for your time and your interest in Cimpress, and we look forward to speaking to you again after we release our Q1 results. Thank you very much.