Q4 2015 Results Earnings Conference Call
February 23, 2016, 05:00 PM ET
Whitney Kukulka - IR, The Blueshirt Group
Fred Durham - Chief Executive Officer
Garett Jackson - Chief Financial Officer
Youssef Squali - Cantor Fitzgerald
Aaron Kessler - Raymond James
Good day ladies and gentlemen. Welcome to the CafePress Fourth Quarter 2015 Earnings Conference Call. Today’s call is being recorded.
At this time, I would like to turn the conference over to Whitney Kukulka for opening remarks and introductions. Please go ahead, Ma’am.
Thank you. Good afternoon. And welcome to the CafePress fourth quarter and fiscal year 2015 financial results conference call. Joining me on today’s call are Fred Durham, Chief Executive Officer; and Garett Jackson, Chief Financial Officer.
Please note, this call is being broadcast on the Internet. A replay of this call along with our SEC filings and earnings release will be available on the Investor Relations section of our website at cafepressinc.com.
Before we get started, I need to remind everybody that part of today’s discussion will include forward-looking statements, such as statements regarding our strategy and continued streamlining and optimizing effort and the impacts thereof, our focus on customer experience and relationships, expenses, marketing efficiencies and our plans and expectations as to our partners, employees, investments and facilities.
In addition, these forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially. These risks and uncertainties include, but are not limited to anticipated trends and challenges in our business, in the market in which we operate, the impact of any production issues and delayed orders and our ability to retain and attract customers and drive traffic to our website.
These statements are based on what we expect as of this conference call as well as the current market and industry conditions, financial and otherwise. And we undertake no obligation to update these statements. These forward-looking statements are not guarantees of future performance or plans and therefore investors should not place undue reliance on them.
All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC, specifically the most report filed on Form 10-Q for the quarter ended September 30, 2015.
We refer all of you to our SEC filings, including our annual and quarterly reports for a more detailed discussions of the risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements, and that could affect our future operating results and financial conditions.
I also want to inform our listeners that we’ll make some references to non-GAAP financial measures during today’s call. You will find supplemental data in our press release, which reconciles our non-GAAP measures to our GAAP results.
With that said, I will turn the call over to Fred Durham. Fred?
Thank you, Whitney. Good afternoon, everyone, and thanks for joining us on today’s call. In 2015, our strategy was to do fewer things, but to do them better. And we spent the year sharpening our focus on our customers, on profitability and then directing CafePress towards a path, where we can return to healthy growth.
In 2015, we successfully finished divesting non-strategic businesses which allows us to focus on the core cafepress.com business. We made reductions to our product line and ended low margin unbranded partnerships and relationships. We rebalanced our business with sharp attention to contribution margins, re-establishing the discipline necessary to focus on the profitable areas of our business. And with the emphasis on customer experience we invested in our fulfilment operations resulting in improved quality and delivery times.
I believe this strategy has worked. We improved our customer service and satisfaction indicators and extended EBITDA profitability on a much lower revenue base. Top and bottom line results were better than consensus in Q4 and we have greatly improved our core operating metrics including contribution margin and adjusted EBITDA.
On today’s call, I’ll give you an overview of our Q4 and 2015 financial results and highlight that progress that we’ve made, then I’ll discuss the vision for what’s next for the company in 2016. After that, Garett will review the financial results, and we will open up the call for your questions.
CafePress performed very well in the fourth quarter capturing higher levels of gross margins contribution margin relative to the past two peak seasons. Specifically, we had a 40% gross margin and 28% contribution margin up significantly from the 35% and 19% of last year and stable with our Q2 and Q3 margins.
For 2015, we achieved a gross margin of 40% and a contribution margin of 27% compared to the 36% and 17% last year. Our focus on driving EBITDA profitability also paid off in the holiday season. In Q4, we reported adjusted EBITDA of $4.1 million, up sharply from the $0.7 million in the fourth quarter last year.
And for the year, adjusted EBITDA improved by over $10 million from a loss of $6.4 million in 2014 to a positive $3.9 million in 2015, the highest since 2012. Ending the quarter with $50 million in the bank and no debt, we have a tighter balance sheet today than we did a year ago and a cash position that is also the best in 2012.
We achieved these impressive result despite a 21% year-over-year decline in revenue from continuing operations and while the team was in the midst of cleaning up operations throughout the business. This is a clear sign of our dedication to focused execution and our ability to hit our targets.
In terms of our go-forward strategy, CafePress is focussed on our vision of becoming the leading retailer of unique items that bring our customers’ passions to life, connecting them to others. We strive to have the perfect item for every passion, not only for our catalogue of over 1 billion outsourced designed products, but also by allowing customers to personalize items or design their own from scratch so that they can get things exactly the way they want them.
We continue to introduce our brand through our distribution relationships with top e-commerce websites like Amazon and Wal-Mart where customers can find a curated catalogue of our branded products along with personalization experiences.
Political season is also upon us and with so many polarizing candidates we expect a contentious election cycle which in general is a positive thing for selling merchandise and we expect to [see some of it] [ph] from the political campaigns in 2016. Whoever you favor in the race, CafePress is the destination for unique products that speak not just who you support, but why you support your candidate.
We have narrowed our focus and divested parts of the business. CafePress has shifted from a market place to a consumer retail destination.
If the focus in 2015 was on simplifying operations, the focus in 2016 will be on renewing our store front. I feel it’s important to point out [audio gap] our experience. Our platform lack some of the tools in reporting that you used to drive pricing, promotion and control the site content.
We’ve already expanded the engineering team and the work that has already begun to rebuild our store in 2016 includes not just a front end work but also the behind the scenes tools. The investment in retooling our site will continue to take time in 2016, but we believe it will enable us to focus on renewed, more controlled retailer experience and growth.
And the other strategic area of investment is in the development of our customer list in segmentation to build better customer relationships for improved retention and life time value.
Starting in 2016, our content, marketing and advertising spends will increasingly take a holistic customer view where they have traditionally been focussed on traffic and conversion by order.
Overall, we’ve made excellent gains in improving our internal processes and we think there is another significant round of advancements that will drive further margin improvements in the future.
Finally, a quick update on our share repurchase program, driving shareholder value is fundamental to our plans. And as a part of that effort, we brought back 930,000 shares for approximately $4.2 million since we announced our share repurchase program in May of 2015. Throughout the year, I also added to own my personal holdings.
To sum up, the significant structural changes we made in 2015 have been successful. We had a strong Q4 showing that we can do more with less as evidenced by the expanding margin, improving customer satisfaction and significantly improving our adjusted EBITDA results despite the lower revenue base.
During 2016, we will continue to streamline the business, refine the model and set the stage for a return to revenue growth. We also expect that will result in a continued decline in Q1 revenue compared with last year, but our focus on stabilizing revenue and optimizing customer experience should produce tangible signs of growth by the fourth quarter of 2016.
Our marketing efforts will be geared to maintain a 25% contribution margin level with expected gains and losses from the 27% that we have been running for 2015 as we start to tune the levers.
We are eager to start pushing on these growth levers but we must prudently invest in the clean-up and optimization phase to do things the right way. We’ve done the heavy lifting required to right size the company and get back to solid adjusted EBTIDA profits in 2015. I’m excited about the road ahead and feel that we are well prepared for the next steps in our journey.
Garett will now walk you through the financials before we open the call to your questions.
Thank you, Fred. I’ll now review our financial results for the fourth quarter and fiscal year 2015. All comparisons will be year-over-year unless otherwise noted. As in the previous quarter, results from continuing operations include cafepress.com and our retail partner channels.
Retail partner channels consist of our offsite feeds and larger corporate shops for our licensed content partners. The results of our divestitures including EZ Prints, Art and Logo Sportswear which closed in 2015 are included in discontinued operations for all periods presented.
The results for the fourth quarter and the full year reflect our combined efforts to keep a sharp focus on returning to profitability. As I mentioned last quarter, the results also included on a GAAP basis the cumulative effect of our efforts to streamline our operations through reducing our overall footprint disposing and impairing assets that are not part of our ongoing strategy and eliminating lower margin products from our inventory.
With this framework in mind, let’s get started. CafePress reported net revenues for the fourth quarter of $39.7 million a year-over-year decline of 21%. Revenue from CafePress.com was approximately $33.5 million or 85% of total net revenue, representing a decline of approximately 18% year-over-year.
The top-line results for CafePress.com reflect our continued stabilization strategy as we concentrate on the most profitable revenue streams and eliminate products and marketing channels with the lowest ROI.
Our retail partner channels, which consists primarily of our offsite feeds in our corporate shops generated approximately $6.1 million in revenue or 15% of total net revenue and declined approximately 34% over the same period last year.
While retail partnered channels declined, a greater focus was placed on pricing parity in product selection as well as ensuring that the contribution margins were consistent with our website. Providing sell CafePress branded merchandize through these key e-commerce channels extends the reach of our retail brand beyond our own website.
For the full year 2015, net revenues totaled $104.5 million, a year-over-year decline of 21%. Revenue from CafePress.com declined 24% to $87.7 million. Our retail partner channels revenue declined by 3% to $16.8 million for the year.
Our fourth quarter adjusted EBITDA was $4.1 million compared to $0.7 million a year ago. Our EBITDA improvement demonstrate the progress we’ve made in the past several quarters optimizing towards profitability on a lower revenue run-rate.
In short, our strategy of focusing our attention and effort on the most profitable and sustainable revenue streams simplifying our operations in the short-term and setting a strategy to rebuild for the long-term is continuing to payoff.
Our full year adjusted EBITDA was $3.9 million compared to a loss of $6.4 million for the full year of 2014. As a percentage of revenue, EBITDA increased to 3.7%. I will now review some key financial metrics for the fourth quarter and the full year. I encourage consulting the tables accompanying our press release for full details.
On a non-GAAP basis, our fourth quarter net income from continuing operations was $1.8 million or $0.11 per diluted share compared to a net loss of $0.7 million or $0.04 last year. For the full year, our non-GAAP net loss from continuing operations was $1.5 million or $09 per diluted share compared to a non-GAAP net loss of $8.8 million or $0.51 per diluted share in 2014. We continued to place a strong emphasis on improving contribution margin in 2015. For the fourth quarter, contribution margin was $11.1 million or 28% of revenue, an improvement of over $1.5 million and 900 basis points over the previous year.
For the full year we achieved a 27% contribution margin compared to 17% in 2014. We believe that the results for the year and the quarter reflect the consistency in which we have been able to operate at these levels and our ability to add scale at profitable levels.
For the fourth quarter, gross margin on a non-GAAP basis was 40%, an improvement of over 500 basis points compared to the same period last year; this is consistent with our full year results for gross profit margin of 39.8% compared to 35.6% in 2014. The year-over-year improvement was driven by improving material costs and commissions.
For the quarter, our non-GAAP operating expenses totaled $13.1 million a reduction of over $5 million versus last year. For the full year, non-GAAP operating expenses were $44 million, a reduction of almost $17 million versus 2014. We continue to be mindful of our expense structure and believe our discipline in managing OpEx levels, while balancing our needed investments will be important as we begin to rebuild the company and scale.
Our fourth quarter sales and marketing expense on a non-GAAP basis was approximately $6.7 million or 17% of revenue. This represents over 250 basis point reduction over last year. Full year 2015 sales and marketing expense totaled $20.2 million, or 19%. This represents over 400 basis point reduction for 2014. Our marketing team under the leadership of co-founder Mahesh Jain have done a tremendous job reducing our variable expenses and driving improved efficiency on each dollar spent. In addition, the overall improvements in our operating performance are also very evident in customer service, where costs are over 30% lower than a year ago.
Our fourth quarter technology and development expense on a non-GAAP basis was approximately $3.7 million, or 19% of revenue this quarter, representing a $0.4 million increases versus last year. For the full year, technology and development expense totaled $12.7 million or 12% of revenue. As Fred mentioned, we have begun the early stages of our efforts to invest in our optimization strategies.
For the quarter, our general and administrative expenses on a non-GAAP basis totaled approximately $2.7 million or 7% of revenue and were [Indiscernible] nearly in half compared to last year. For full year 2015, general and administrative expense totaled $11.1 million or 11% of revenue, a reduction of over $6 million from 2014. The savings were primarily a result of reductions in legal expenses and cost associated with the resignation of our CEO in 2014. We believe we can hold our G&A expense at or near these levels.
On a GAAP basis our fourth quarter net income from continuing operations was $0.8 million, or $0.05 per fully diluted share, compared to a GAAP net loss of $0.6 million, or $0.03 per fully diluted share in the Q4, 2014.
On a GAAP basis for full year 2015 we posted a net loss from continuing operations of $6.3 million or $0.36 per fully diluted share. That compares to a GAAP net loss of $14.9 million, or $0.86 per fully diluted share in 2014.
As Fred mentioned earlier, our result also reflects some significant infrastructure changes. Our 2015 GAAP net loss include several onetime adjustments related to efforts to stabilize and streamline our infrastructure.
These adjustments include $1.3 million restructuring charges related to plant and office relocations in California and Kentucky, and $0.8 million impairment of capitalized software related to projects and functionality that will no longer be a part of our ongoing mission.
We believe these efforts reflect our commitment to get the company on solid footing for the future and also ensure that our balance sheet reflects the assets we expect to be the most productive for us moving forward.
Turning to our balance sheet and cash flows, we ended the quarter over $50.3 million of cash and short-term investments, or nearly $0.03 per share compared to $27 million in 2014.
We significantly improved our free cash flow, which we define as adjusted EBITDA less CapEx over last year. We generated $1.3 million in positive free cash flow in the fourth quarter compared to $0.6 million outflow for the same period last year.
For the year we had an outflow of $1.4 million compared to an outflow of $12.1 million in 2014. Our capital expenditures for Q5 totaled $2.8 million compared to $1.3 million in Q4, 2014 driven mostly by the purchase of 25,000 square foot corporate facility in Kentucky for $1.8 million.
For the year our capital expenditures were $5.2 million compared to $5.7 million in 2014. We expect our plant and facility costs to come down in 2016 as we’ve reduced our footprint by over 100,000 square feet across locations.
Our fully diluted weighted average shares outstanding were 17 million. We continued buying back shares under our repurchase plan, within the quarter we repurchased just under 290,000 shares of our common stock at a market value of approximately $1.2 million. For the year we’ve repurchased approximately 930,000 shares at a market value of approximately $4.2 million. We will continue to evaluate the most appropriate use of our resources to maximize shareholder value.
To summarize, our results this quarter represent that we have found the stabilization we were looking for on our margins. We capitalized on our peak season with significant EBITDA positive contributions and our customer satisfaction metrics were better than they have been since 2012.
Our cash position has a strong as they has been since the year of our IPO even after repurchasing over $4 million of our common stock and we have completed our divestitures meaning that all of our attention is now on our core CafePress brand. In 2016 we will be looking to stabilize the revenue stream and scale the marketing spend, a contribution margins that are sustainable.
We will be investing in our site and shopping experience as well as the backend tools to enhance our operations and appropriately scale the business as we restore profitability. Lastly, we look forward to rolling our new brand marketing and reconnecting with our customer to gain repeat visits.
While we are not giving guidance, we have some general goals that we intend to keep our focus on 2016. Our goal is to stabilize revenues we do believe the first of the year will be similar to Q2 and Q3 of 2015 with more stabilization happening in the second half.
We will target a contribution margin of at least 25% and expect operating expenses to remain stable with 2015 level. Lastly, we will maintain CapEx levels between 5% to 8% of revenue with the resulting impact of our operations leading to a similar range of free cash flow as that experienced in 2015.
I’d like to thank the team at CafePress for the time and dedication they exhibited in 2015. A truly was a team effort with improvements in all areas. And for sticking to the mission on keeping the customer in mind with the actions we have taken.
With that, I will open the call to questions. Operator?
Thank you. [Operator Instructions] We’ll hear first from Brian Fitzgerald with Jefferies.
Hi, guys. This is John on for Brian. Thanks for taking my question. Just kind of curious about how you see these investments taking place throughout the year, how are they kind of going to trend. Is it going to be early on in the first half of the year where a lot of these investments are taking place?
And then secondly just on the retail partner channels, what trends were you seeing there during the fourth quarter and anything coming up in the year that you’re excited about that might help drive the channel? Thanks.
So, on the timing of investments I think it would be pretty steady throughout the year. A lot of that’s going to be in our website experience and so it’s going to be on capitalization of the software development. And that’s probably the lion’s share. There will be continued investments in the fulfilment operations but not to the same magnitude I think is in the past. Some of them will be in some upgrading of printing equipment thing, so we think it could have some pretty significant impacts on service levels and costs and quality. We have some pretty exciting things to [roll out] [ph], but it will be pretty steady throughout the year on the timing of the investments of the capital.
And on the retail channels the most exciting thing I think is that we’ve really gotten rid of a lot of the noise of I think last year and so the margins are very similar, the contribution margins at least across the different channels, and so we are really – and across our different products sets whereas before felt like if the quarter was a little unpredictable in terms of revenue or margin. There’s a lot of shift, it could be mix shift amongst different channels, it could be mix shift amongst different product lines or different advertising channels that made managing the business is very difficult. We have very similar margins across the channels and the product lines now. So what’s going to be exciting is really within the life time value strategy. Now without the noise we can look and say where are the highest value customers coming in, which channels, which products and we can start to tune our marketing and readjust it, so maybe things aren’t even from a transaction product or channels standpoint but from [Indiscernible] value of customer standpoint. And we think there is really interesting game changing levers for us in that we’ll tests and tune through 2016 and really excited for what that could mean for 2017 and beyond.
And John, I think I’ll only add on the investment that revenues are typically less in the first couple of quarters, so as a percentage of revenue our cash burn will be a little heavier in those quarters as well as investments don’t have the revenue streams like they would say in fourth quarter to offset that. So the investment levels will be throughout the year as Fred said. We’ll see the cash burn similar to how it has been in past years with it burning a little heavier in the first part of the year and lighting up in the second part of the year.
Great. Make sense. Thanks guys.
Our next question comes from Youssef Squali with Cantor Fitzgerald.
Thank you very much. Hi, guys. So, you seem to have made great strides in stabilizing the bottom line, so congrats on that. Talking about the top line, and Garett, I just want to parse out some of things you said about 2016. So, number one, are you basically talking about stabilizing the business for the full year 2016 relative to 2015 or you’re talking about basically exiting the year having stabilized the business?
So, and I guess part of that if I listen to your guidance I think you said first half of 2016 should be similar to Q2 and Q3 of last year of 2015, which basically implies plus or minus basically 5%. Is that a good read into how the first half may become which basically implies that the second half of the year doesn’t have to be heroic for you guys to still come out stable to maybe slightly up for the year?
Yes, Youssef, good question. I think it’s kind of hit on the trending. Q1 is likely going to have a similar revenue decline trend that we’ve seen and you say the Q3, Q4 area as we start to that’s the last quarter that we had some of the adjustments that we’ve been trying to make this and 2014 come out. What I would typically say is that we do plan on seeing the revenue trend closer back to even by the end of the year, and we’re looking to close that gap as the quarters move on through the year. So first half is probably little wider, the second half we might start to see some gains as it kind of trends out to a kind of flattish maybe year overall.
Yes. To add color to that, the way I look at it is Q1 – we’re really not going to lap ourselves in terms of how we’re running the business for Q2, Q1 last year we still had really attuned pricing and advertising as much as we had for the rest of the year. So, those two quarters will still kind of look more like the pattern we had last year. The rest of the year we start to lap ourselves in that behavior, so that should stabilize. And that sort of grow stuff for the year. We do anticipate that we could have some stuff that’s really dependent on sort of new development and so it’s really hard to predict. I don’t want to say we’re going to develop new projects and we can definitely say how they’re going to respond; hopefully we’ll respond to those as the year goes on and give them a color, right.
And Youssef just to add a couple of more things, first we aren’t giving guidance. Those are really what the trends that we think we’re going to see in these quarters. Second, as we did provide in the tables some quarterly trend over the last two years, 2014, and 2015 to help everybody try to see what the revenues look like as CafePress only for the last couple of years.
That was helpful. And then I guess as you look at the business once its stabilizes and I think you also talked about plans for media campaign or new brand marketing campaign, can you maybe help us understand what are your aspirations in terms of growth, I mean, this business historically used to grow obviously much faster, e-commerce is growing call it little to mid-teens, I can think of others in the space that are going anywhere between high single-digit and 20%, aspirationally how fast do you think this business can grow?
Garett and I are looking at each other. You got the – you have the entrepreneur here. You’re asking the word aspiration which is a trick question. My aspirations are of course very high and potentially unrealistic. We should definitely be able to do well eventually compared vis-à-vis competitors and other e-commerce companies, there was absolutely no reason why we can’t rejoin that path if not even boomerang a little bit from where we’re at now. There should be some pent up demand and stuff we can just fix. So I do anticipate that the engine should absolutely be able to grow in a healthy fashion.
This first step is really about making sure what we’re growing is something that we want to have growth and so I really like the margin structure, [Indiscernible] solid about it, so that as we scale it produces results at the bottom or gives us scale to accelerate growth one way the other, so really like what happens with that, how that bottom line and the margin structure really fuels itself, but I do think growth [could fit] [ph] industry for sure in the future.
Okay. All right. That’s great. Thank you.
Youssef probably if I add one other thing in there is that as we are looking at the tools that Fred mentioned that we’re trying to put in place and we’re doing some pivoting even in the marketing from a standpoint of trying to look for repeat customer in LTV. The rebuild of the site and these are the things are all things that we believe one of the reasons that we’re not at the growth rate of the market, we got to get some of these things back in place and get them where we’re at to where we can accelerate pass the market and I think that is going to be possible for us in the future as we start to take a look at the investments we’re making this year.
That’s make sense. Good luck. Thanks.
And we now continue on to Aaron Kessler with Raymond James.
Thanks for the questions. Couple of things, first any verticals you would highlight during the quarter kind of outperforming or underperforming. Second, just maybe your initiative to improve the conversion funnel, how that’s going, and thirdly, move to some mobile update revenue mix as well as kind of mobile initiatives? Thank you.
I’ll try to hit quickly and then and then Garett is going to add more. In terms of verticals one that anything performing or outperforming in other areas, really just historical [ph] last year kind of normalizing different areas, so again the thing I’m excited about is whereas I think in the past we may talked about how home is growing faster in other areas like that encourage the business to them, spend more and advertise in areas like home [ph] which drove the contribution margin and channels down even further and so then we would accelerate it, more to it that was growing, so we put more advertising further shrinking the margins.
The exciting thing I think we’ve normalized all that. Interesting things are we seeing kind of our classic core products like garments which seem to be on a downward spiral have kind of rebounded and become a larger percent of the pie and there are some other sorts of just kind of balancing – there is life still in the area. So the most exciting thing is really is that no vertical really sprung away but the balance look rational to what we know our customers like. That was really an exciting part of the verticals. We look for other verticals as they expand with life and value in the future because we do think certain products are the types of products and contain given that certain types of customers that have more proclivity [ph] to come back many times a year, tend to purchase and so we that’s a big opportunity.
Yes. I would tend to agree. I think as far as and probably hit the conversion funnel, I don’t know that from a conversion funnel standpoint we’ve been focusing on the marketing spend and the traffic that we felt like was most profitable this year. We included in that is really trying to find those unprofitable channels and cut those.
I think as we get into 2016 that’s where we’re starting to look at where our acquisition dollars can be spend most efficiently to not get us just a transaction but a customer and a repeat customer and then that plays in Fred may have a little bit to say on the mobile side, I’ve got a couple of numbers here just mobile traffic was around 50% of our total traffic, mobile revenue was around $22 million this year. So just to kind of give you some statistics on where that was versus around $20 million last year. So it’s stayed about flat year-over-year.
Great. Thank you.
Fred, do you want to add.
I’d like to go and add just little bit more to the conversion funnel and mobile discussions, so I think it’ helpful for the investors to kind of understand where we’re at 2016. We did do some initial kind of pilot projects to specifically work on the content and different things on the conversion funnel to increase conversion and customer experience and that’s going to really become apparent to us that yes, we can make gains, but the infrastructure that we have was geared towards this sort of marketplace experience.
In the marketplace it’s a content provider set the price and they set the captions and descriptions for products not retailer, as we didn’t really have the nimble tools to be able to drive the retail experience and thus why we’re really going to invest in the tools before we could see significant improvements in the conversion funnel, so its going to from an external view point, look like there’s a bit of stall while we’re actually working really hard to provide the tools where we had in a more scalable fashion enhanced the conversion funnel and customer experience.
Got it. Great. Thanks.
Thank you. [Operator Instructions] And with nothing additional in the queue, I’d like to turn the floor back over to Mr. Fred Durham. Please go ahead.
Great. Thank you. Everyone here, the team at CafePress is feeling very energize. We are excited to be revitalizing CafePress for optimizing efficiencies throughout the business and creating the customer experience that will inspire repeat customers and we are ready to unlock life time value.
We also intend to start increasing or investor relations activities again and you should expect to see us at more investor conferences and on non-deal road shows in major financial centres.
In fact, Garett and I will be at the Cantor Fitzgerald Annual Internet and Technology Conference and hosting one-on-one investor meetings in New York this week, and we look forward to meeting some of you in person there. And thank you everyone for joining us on today’s call. We appreciate your support and look forward to keeping you updated on our progress and seeing you on the road.
Thank you. And again ladies and gentlemen, that does conclude today’s conference. Thank you all again for your participation.
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