Stock Update (NASDAQ:PRSS): CafePress Inc Reports Results for Third Quarter 2015


CafePress Inc (NASDAQ:PRSS) reported financial results for the three months ended September 30, 2015.

Management Commentary

“I believe that CafePress’ third quarter results demonstrate effective expense and cash management and our acute focus on quickly right-sizing the business. We are retaining only the best performing products, employing thoughtful pricing and promotional offers and engaging smart marketing techniques to stabilize margins,” said Fred Durham, Chief Executive Officer. “CafePress is a much leaner and more efficient organization today than it was a year ago, and we believe we are well positioned to capitalize on a busy holiday season.”

Third Quarter 2015 Financial Highlights1

  • Net revenues totaled $19.5 million, compared to $25.9 million in the third quarter of 2014.
  • Gross profit margin was 41.1% of net revenues, compared to 35.6% in the third quarter of 2014.
  • GAAP net loss from continuing operations was $(3.7) million, or $(0.21) per diluted share, compared to a net loss of $(5.4) million, or $(0.31) per diluted share, in the third quarter of 2014.
  • Non-GAAP Adjusted EBITDA from continuing operations was $(45) thousand, compared to Adjusted EBITDA of $(3.2) million in the third quarter of 2014.
  • Non-GAAP Contribution margin was 28% of net revenues, compared to 17% in the third quarter of 2014.
  • Non-GAAP net loss from continuing operations was $(1.1) million, or $(0.07) per diluted share, compared to a non-GAAP net loss of $(3.2) million, or $(0.18) per diluted share in the third quarter of 2014.

Cash and Share Repurchase Activity

  • At September 30, 2015, cash, cash equivalents, and short-term investments totaled $40.5 million.
  • Within the third quarter, the company repurchased approximately 150,000 shares of common stock totalling $0.7 million.
  • As of September 30, 2015, the company repurchased a total of approximately 650,000 shares of common stock totalling $3 million.

Third Quarter 2015 Operating Metrics

  • Average Order Size (AOS) was $35, a 3% decline from Q2 2015 and down 12% year-over-year.
  • Orders totaled 0.6 million, a 7% decline compared to Q2 2015 and a 14% year-over-year decline.

The year-over-year decrease in order count in the third quarter was primarily driven by the shift in our marketing focus toward higher quality ROI channels. The year-over-year decrease in average order size is primarily due to an increase in volume of single-item orders through our Retail Partner Channel.

Third Quarter 2015 Operating Highlights

  • Signed contract renewal with Marvel that extends partnership through the end of 2017 and launched new super hero content and marketing campaign with customizable products.
  • Launched new content for the upcoming Marvel original series, “Jessica Jones” on Netflix, and Disney XD’s new animated series, “Guardians of the Galaxy”.
  • Partnered with CBS “Television City” to provide merchandise shops for over 30 classic TV properties.
  • Launched content for the Peanuts movie to become a leading destination for Peanuts apparel and gifts.

1Financial Highlights, Operating Metrics, and the accompanying tables reflect the results of the company’s divestitures of its Art, Logo, InvitationBox, and EZ Prints businesses in discontinued operations for all periods presented. Please see “Non-GAAP Financial Information” for definitions of the terms Non-GAAP Adjusted EBITDA, Non-GAAP Contribution margin and Non-GAAP net loss and Non-GAAP net loss per diluted share. (Original Source)

Shares of CafePress closed today at $4.70, up $0.04 or 0.86%. PRSS has a 1-year high of $5.36 and a 1-year low of $1.95. The stock’s 50-day moving average is $4.50 and its 200-day moving average is $4.47.

On the ratings front, Cantor Fitzgerald analyst Youssef Squali reiterated a Hold rating on PRSS, with a price target of $4.50, in a report issued on August 14. The current price target represents a slight downside potential from current levels. According to TipRanks.com, Squali has a total average return of 20.1%, a 64.0% success rate, and is ranked #7 out of 3840 analysts.

CafePress Inc provides e-commerce platform which enables customers to create, buy and sell a wide variety of customized and personalized products.