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The Business of Art – A Cafepress Update

 

You might remember Cafepress from an earlier post here at Pink Ink where I mentioned that Cafepress had chosen to unlist a shirt because it supposedly infringed on Frito Lays trademark by calling Donald trump a cheeto faced shit gibbon.

 

Well, now we’re going to take a quick look at how the business aspects of Cafepress are going!

 

Cafepress’ Products

A partial list of the products Cafepress.com currently offers:

  • T-SHIRTS & CLOTHING
  • Sweatshirts & Hoodies
  • Pajamas
  • Baseball Jerseys
  • Sweatshirts & Hoodies
  • Bibs, Blankets, and Diaper Bags
  • Jewelry, Scarves, Neck Ties, and Watches
  • Mugs, Water Bottles, and Drinking Glasses
  • Shower Curtains, Pillows, and Bedding
  • Area Rugs and Duvet Covers
  • Buttons and Stickers
  • Posters, Framed Prints, and Wall Decals
  • Greeting Cards, Note Cards, Invitations, and Calendars
  • Phone Cases, iPad Cases & Covers, and Laptop Covers

So basically if you can print on it they have it! Which may or may not be the best idea… That is a heck of a lot of inventory to keep track of and pay for after all…

I’m guessing this is their ‘licensed brands’ section…

*sigh*

There’s a lot going on at Cafepress.

 

 

Cafepress’ Finances – A Quickie

Rundown;
Cafepress trades under the ticker symbol PRSS
Share Price: $3.06 at time of writing
Earnings Per Share: -$1.72
Market Cap: $49 million USD
Financial information can be found herehttps://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1475611200000&chddm=451996&chls=IntervalBasedLine&q=NASDAQ:PRSS&ntsp=0&ei=pq_zV_mQF4TGigLe8r7wCQ&authuser=0

So onto the finances! Monies!! Numbers!!!

Cafepress has lost money 4 out of the last 5 quarters, with the 3 months ending 2016-06-30 being their worst quarter with a loss of $23.35 million… which is almost half of their entire current market cap.

Cash has dwindled from $28 million on 2015-06-30 to $15.33 million on 2016-06-30. For that same period Cash and Short Term investments have dropped from $42.72 million to $38.4 million… which is obviously not as stark as the drop in cash alone.

Revenue is down historically, with revenue dropping from $21.76 million on 2015-06-30 to $19.84 million on 2016-06-30… Revenue has also dropped dramatically from 2012 when Cafepress reported revenue of $156 million to 2015 when Cafepress reported revenue of only $104 million.

 

 

Cafepress’ Competitors

Cafepress’ closest competitor based off of products offered would have to be Zazzle.com. They both offer the same mixture of T-shirts and knickknacks as each other and both feature a ‘design your own’ and ‘professional designs’ business model for the products they offer.
But Cafepress’ products also overlap with other companies product offerings ranging from Snapfish, Amazon’s new photo service, and Shutterfly.

 

Zazzle

Zazzle.com has a nearly identical product selection and business model as Cafepress

 

Shutterfly, Snapfish, and Amazon…

Cafepress competes with Shutterfly.com, Snapfish.com, and Amazon.com for your basic greeting cards / calendars / custom paper and photo products.

 

 

 

Summarize

Cafepress’ business model does not seem to be unique, its revenue has dropped significantly, and it’s cash resources are showing signs of that drop. Where their business is going to be in the next few years is anybody’s guess…

 

 

 


This article in no way represents financial advice and the accuracy is in no way guaranteed. Be responsible.

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