Bob Marino - Jefferies · forward-looking statements largely on its estimates of its financial results and its current expectations and projections about future events and financial

1 All content copyright © 2013 CafePress. All rights reserved. CafePress is a registered trademarks of CafePress Inc. All other trademarks noted herein are those of their respective owners 1 All content copyright © 2013 CafePress. All rights reserved. CafePress is a registered trademarks of CafePress Inc. All other trademarks noted herein are those of their respective owners

May 2013

2 All content copyright © 2013 CafePress. All rights reserved. CafePress is a registered trademarks of CafePress Inc. All other trademarks noted herein are those of their respective owners

These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical facts contained in these slides and the accompanying oral

presentation, including statements regarding CafePress’ (“CafePress” or the “Company”) future operations, future financial position, future revenue, projected expenses, opportunities, prospects and

plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intent,”

“may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “continue,” “objective,” or the negative of these terms or similar expressions. The Company has based these

forward-looking statements largely on its estimates of its financial results and its current expectations and projections about future events and financial trends that it believes may affect its financial

condition, results of operations, business strategy, short term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks,

uncertainties and assumptions, including, but not limited to, our operation in an emerging market and our relatively new and evolving business model, our ability to evaluate our current and future

prospects, our ability to generate additional revenue on a cost-effective basis, our ability to attract and retain advertisers, our ability to increase our customer base, our ability to continue operating under

existing laws and a number of other factors outside of our control. These risks and uncertainties may also include those described under the heading “Risk Factors” and elsewhere in the Company’s

periodic reports on file with the Securities and Exchange Commission (the “SEC”). Moreover, the Company operates in a very competitive and rapidly changing environment. New risks emerge from

time to time. It is not possible for Company management to predict all risks, nor can the Company assess the impact of all factors on its business or the extent to which any factor, or combination of

factors, may cause actual results to differ materially from those contained in any forward-looking statements the Company may make. In light of these risks, uncertainties and assumptions, the forward-

looking events and circumstances discussed in these slides and the accompanying oral presentation may not occur and actual results could differ materially and adversely from those anticipated or

implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the

forward-looking statements are reasonable, the Company cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking

statements will be achieved or occur. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Any forward-

looking statement speaks only as of its date. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this

presentation, to conform these statements to actual results or to changes in the Company’s expectations.

This presentation includes Adjusted EBITDA, a non-GAAP measure that the Company’s management uses to assess operating performance. The Company uses Adjusted EBITDA as a key

performance measure because it believes that it facilitates operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures

(affecting net interest expense), tax positions (such as the impact on periods of changes in effective tax rates or fluctuations in permanent differences or discrete quarterly items), the impact of

depreciation and amortization, amortization of intangible assets, acquisition-related costs, stock-based compensation and impairment charges. Because Adjusted EBITDA facilitates internal

comparisons of our historical operating performance on a more consistent basis, the Company also uses Adjusted EBITDA for business planning purposes and to incentivize and compensate its

management personnel.

The Company’s use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under

GAAP as the excluded items may have significant effects on our operating results and financial condition. When evaluating our performance, you should consider Adjusted EBITDA alongside other

financial performance measures, including various cash flow metrics, net income and our other GAAP results.

SAFE HARBOR


BOB MARINO CHIEF EXECUTIVE OFFICER


Net Revenues

$52.5M

EBITDA $0.1M

Margin 37.4%

Orders 1.4 Million

FAST FACTS 7 brands

19 million members

500+ base goods

100,000 new designs/week (average)

400 million + unique products

3 million + shops

Q1 2013

HIGHLIGHTS

2

3

3

1 For CafePress.com only as of 12/31/12

3 As of 12/31/12

1

2 For CafePress.com Marketplace and Shops only; for the year ended 12/31/12


A PERSONALIZED E-COMMERCE PLATFORM

PRIMAL NEED FOR SELF EXPRESSION

EXPLOSION OF

CONSUMER CHOICE

CUSTOMIZE ANY BASE

GOOD

MANUFACTURE TO A UNIT OF ONE


LARGE AND EXPANDING

ADDRESSABLE MARKET

U.S. E-COMMERCE

$197 BILLION1

BACK END: CUSTOMIZATION TECHNOLOGY AND FULFILLMENT

FRONT END: EFFICIENT CUSTOMER ACQUISITION

CUSTOMIZED

CONSUMER DEMAND FOR CUSTOMIZATION

1 U.S. Online Retail Forecast, 2010 To 2015, Forrester Research, Inc., February 2011


Examples

THE WORLD’S CUSTOMIZATION ENGINE


Examples

THE WORLD’S CUSTOMIZATION ENGINE


CREATE & BUY

MARKETPLACE SHOPS SELL BUY

PLATFORM

FIND

MARKETPLACE

DESIGN


MARKETPLACE

NETWORK EFFECT

FINANCIAL LEVERAGE

REVENUE NETWORK AMPLIFIES GROWTH

GROSS MARGIN PRICING CONTROL & ELASTICITY

MARKETING EFFICIENCY LOW COST PER ORDER

OPERATING LEVERAGE LOW FIXED COSTS

BRANDS

OUR MEMBERS (M) UNIQUE PRODUCTS (M)

CONTENT

CROWD SOURCED CONTENT ENABLES LONG TAIL MARKETING


CREATE & BUY

HOW IT WORKS WHO USES IT

Individuals

Groups


CORPORATE SHOPS SMALL SHOPS

SHOPS

Feeds long tail marketing

Focus on Design Community

LEGACY FUTURE

Acquired EZ Prints in 2012

Drive own traffic

Launched CafePress Services in Q1 ‘13

Revenue from Shops Doubled in Q1 ‘13


CONSUMER SATISFACTION

QUALITY

SPEED

PRICE

SERVICE

SELECTION


3D SUBSTRATES

VARIABLE DATA PRINTING

QUALITY AT SCALE AND SPEED

OPERATIONS:

PROPRIETARY PRINT TECHNOLOGY


Consolidating manufacturing to drive efficiency

Will impact margins in 2013 but lead to long-term margin expansion

OPERATIONS: CONSOLIDATION


EXPAND BASE

GOODS INCREASE CONTENT

GROW OUR

BRANDS GROW CORP

SHOPS ENHANCE

EXPERIENCE

MULTIPLE GROWTH PATHS


MONICA JOHNSON CHIEF FINANCIAL OFFICER


• Strong top line growth

• Demonstrated profitability

• Multiple revenue drivers

• Variable cost drivers

• ROI-driven customer acquisition

• Improving operating metrics

• Proprietary and innovative technology

• Low capex and inventory

• Consumer driven marketplace and create & buy

• Shops platform expands corporate and B2B DIVERSIFIED BUSINESS MODEL

DIVERSIFIED DRIVERS

COMPELLING ECONOMICS

CAPITAL EFFICIENCY

FINANCIAL HIGHLIGHTS

GROWTH & PROFITABILITY


1 Excludes interest and other income (expense), provision for income taxes, depreciation and amortization, amortization of intangible assets,

acquisition-related costs, stock-based compensation and impairment charges

SCALING GROWTH

REVENUE

ADJUSTED EBITDA1

($ millions)

($ millions)

SCALE: $218mm 2012 revenue

GROWTH: Grew Revenue 32% YoY for Q1 ’13

Long track record of profitability

GROWTH & PROFITABILITY


QUARTERLY GROWTH AND PROFITABILITY

REVENUE

ADJUSTED EBITDA1

($ millions)

1 Excludes interest and other income (expense), provision for income taxes, depreciation and amortization, amortization of intangible assets,

acquisition-related costs, stock-based compensation and impairment charges


COST OF GOODS

Materials

Shipping

Labor

Commissions

Fixed Costs

OPERATING EXPENSE

Variable Marketing

SG&A

Customer Acquisition

Merchandise

Partnerships

Customer Lifetime Value

Macro Drivers

REVENUE DRIVERS COST DRIVERS

LEVERS ALLOW DAILY CONTROL AND VISIBILITY INTO BUSINESS

DIVERSIFIED DRIVERS


($ millions)

WEBSITE

MANUFACTURING

CAPITAL EFFICIENCY

Positive free cash flow Generated $10M operating cash flow in 2012

ANNUAL CAPEX – Averages 5% of revenue


NASDAQ: PRSS

Bob Marino - Jefferies · forward-looking statements largely on its estimates of its financial results and its current expectations and projections about future events and financial

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