There are, in certain markets, we’re seeing either stable or increasing orders. But some indication of customers purchasing lower quantities per order, in some categories. So, a little bit of a trade down there in some categories. We also, saw softer revenue trends in our reseller channels, which just from an overall Cimpress perspective, is relatively small. It’s roughly mid-single-digits percentage of revenue for, overall for Cimpress, but it does impact the growth for some of these businesses in the Upload and Print group. And that’s one reason that growth was lower for print group. Within Upload and Print just because there’s more concentration on a relative basis, in the reseller channel, especially in France. That is a trend that’s been present for some time.
And it’s a trend that, has benefited the Cimpress overall in the long-term. A bucking way on growth in the near-term for some individual businesses to have more concentration there. So, we do expect that will continue to be somewhat of a headwind, to near-term growth for those businesses that have more concentration and resellers. I think important to note that, in Upload and Print, despite lower overall growth segment EBITDA still grew year-over-year, and that was helped by, lower input costs that we’ve experienced so far this quarter. And we expect that to be a feature for the remainder of the year as well. I’m not going to get through all the other segments. I think those are the most notable takeaways As we’ve mentioned in the question we held our revenue guidance for the year.
There will be variability as we go throughout the year in terms of growth rates by quarter as we lap pricing and also as we previously said, we expect the growth rate in the December quarter in Vista to be weighed down, somewhat by, consumer concentration during the holiday peak. But based on what we’ve seen, we still felt confident leaving the revenue guidance untouched.
Meredith Burns: Thanks Sean. One more quick question for you, Sean on revenue. Can you elaborate on the backlog that provided a $4.3 million drag on revenues during the quarter? Was it isolated to one product category or was this something, that was broad based — not within Vista?
Sean Quinn: Yes. We always have fluctuations in the backlog, which is the orders that we’ve received, but we haven’t yet shipped. There’s really nothing to read into on that one and not specific to a category. Those fluctuations have to do with things like, what, what, what’s the last calendar day of the quarter end, but also things like timing of promotions as we cross the quarter end or seasonality and we don’t try and manage that in any natural ways as we as we end the quarter. From an economic standpoint, all that really doesn’t matter. In Vista, we receive the cash, upfront from customers. And it’s just that there was a higher level of orders not yet shipped in the last day of the quarter. So, that’ll come into revenue when they do ship, and that’s really it. But it does impact growth rate, year-over-year.
Meredith Burns: Thanks, Sean. Okay. Let’s get Robert, involved here. And, we’ve got some questions on the Vista, customer additions. So, the 100,000 customer additions referenced in the earnings document, could you add some additional context such as what the percentage increase was, what the percentage of the total? And then, very similar question you specifically noted that Vista grew its customer base year-over-year by more than 100,000 customers. Does this represent a recent quarterly high for new Vista customer additions? What is the size of the total Vista customer base currently?
Robert Keane: Okay. Well, thanks for the question. First of all, two words were used there. One is customer base and customer additions. So, it really is customer base that we referred to, repeat customers plus new customers or, in other words, plus customer additions. So, it was good growth. New customers drove that growth. They the number of new customers grew 13% versus the same quarter of the prior year. Repeat customers were still down slightly year-over-year, but that is a trailing metric after the new customer acquisitions. And the trend in repeat customer count also improved sequentially. So, we have overall growth in the customer base. We don’t go into a lot of the details that you asked about specifically, but let me give some additional context.
First of all, It’s very important to keep in mind the customer count on its own is not the metric we seek to grow. We certainly wanted to grow, but it’s not the only metric. It’s important to know that we care most of all about the profitability per cohort and to get to that, you need to also look at how much gross profit per customer we are generating, what’s that worth over the life of a customer expressed in NPV terms, and what’s the cost of customer acquisition relative to that lifetime value. So, it’s a factor in the equation, but it’s not the, the, the top number we’re looking at. And that focus on economic value holistically, is why compared to going back five years or so in our history, for the last multiple years, we have seen, a reduction in customer count as we’ve moved away from the prior value proposition, which was based on very deep discounts towards higher value customers.
And in some of our multiple investor days over the last couple of years, we’ve shown charts and data, how We’ve greatly reduced economically negative results in our lowest decile or deciles, and we’ve strongly grown gross profit customer overall and in our top deciles, and very much driven by our top deciles. We also, over that multi year period, have really reduced value destructive advertising. We’ve greatly reduced, discounting, and we have focused on higher value products not we’ve done price increases, but even more so, we’ve moved to higher value products, before price increases. And Q1 was a continuation of all those trends. Gross profit per customer in this most recent quarter’s acquisition cohort was higher than it ever has been in the first quarter of any year.
The improvement in repeat customers of course, helps and we’re happy about that and we are also focusing on driving repeat business by giving better value to these customers. And finally, in terms of increasing the number of customers going forward, we’re optimistic about this. There’s a lot that’s gone into this. It’s not just what we’ve done in the past one or two quarters. It goes back to the multi-year repositioning of the brand, the increasing awareness of our product breadth, accelerating into growth, areas of higher value products like promotional products, improving the customer experience. And they’ve had an earlier impact on value per customer, but they clearly now are improving our ability to acquire more customers. And so we’re looking forward to seeing that continue.
Meredith Burns: Thanks Robert. Really exciting development in Vista. All right, Sean, next question for you. We thought our Upload and Print businesses were nearing the end of an investment cycle, but we were surprised to see the uptick in capital expenditures this past quarter. What investments are we making here? And do we expect these to moderate?
Sean Quinn: Yes. Yes, this is a good question. The growth investment in our Upload and Print businesses in recent years has been relatively low, but, you’re right to note that, this past quarter from a CapEx perspective, it was definitely a high CapEx quarter for these businesses. And that’s not a new run rate. The equipment purchases that we make in those businesses. And in particular, in the Print group, which is, as more vertically integrated than the Print segment, can be a little bit lumpy over time. And there happened to be some large piece of equipment that were purchased this quarter. There was also within that, about $2 million of facilities related CapEx, which that doesn’t occur often and so that’s sort of a sort of a one off.
But the rest of it is Print Production Equipment, those are investments that have clear payback and return thresholds, that have to be met. And some of that’s maintenance CapEx as well. So, it wouldn’t necessarily be captured in the growth investments that we that we outlined each year. So, yes, higher, intensity CapEx quarter for these businesses. That’s not a new run rate and there is some lumpiness there. There’s no change to our CapEx guidance for the year. And so that might be helpful in terms of when you look at the CapEx guidance that we provided for the full year and back off Q1, it would imply that, the rest of the year, it does not have that level of intensity. And so the quarterly run rate for the next three quarters will be lower.
