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.