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CafePress Reports Q1 Financials

An increase in orders couldn’t prevent net revenue from declining for CafePress during the first quarter of 2017. That’s according to an earnings statement that the Louisville, KY-based company released last week regarding the three months ending March 31. CafePress, an online gift shop with web-based design tools that allow consumers to personalize an array of merchandise, said that revenue totaled $18.3 million, down from $18.5 million during the prior year’s first quarter. Orders tallied about 600,000 – an 8% jump over the same period in 2016.

According to CafePress, an 8% decrease in average order value ($31.59) and other factors combined to account for the discrepancy between a rise in orders and less revenue. “Our total revenue for the quarter was down 1% year-over-year due to the combination of an increasingly competitive online retail environment and more challenging comparisons from the presidential primary season a year ago,” said CEO Fred Durham.

In a conference call, Durham noted that revenues from political-related content declined approximately $300,000 compared with the same period last year – mainly a result of the campaign for the White House being over.

Additionally, CafePress reported that gross profit margin during Q1 2017 was 38.1% of net revenue, down from 42.5% during last year’s first quarter. Quarterly GAAP net loss totaled $3.4 million, or $0.20 per diluted share. That performance was worse than Q1 2016, when net loss was $3 million, or $0.18 per diluted share. CafePress also posted a $1.9 million loss in non-GAAP adjusted EBITDA.

Nonetheless, Durham is optimistic about the future. “We are continuing to optimize the business and our technology, and are acutely focused on re-energizing our brand, merchandising and customer experience,” he said.