This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shutterfly Announces Second Quarter 2012 Financial Results

Shutterfly, Inc. (NASDAQ:SFLY), a leading Internet-based social expression and personal publishing service, today announced financial results for the second quarter ended June 30, 2012.

“We continued our financial momentum during the second quarter across our Consumer and Enterprise businesses through robust organic growth, strategic partnerships, and disciplined acquisitions,” said President and Chief Executive Officer Jeffrey Housenbold. “We are building four trusted lifestyle brands (Shutterfly, TinyPrints, Wedding Paper Divas & Treat) that leverage Shutterfly’s cloud based ecommerce and print on demand platforms to help millions of people stay connected and deepen their personal relationships by transforming their more than 15 billion photos into personalized products and gifts.”

Second Quarter 2012 Financial Highlights
  • Net revenues totaled $99.0 million, a 31% year-over-year increase.
  • Second quarter 2012 represents the 46th consecutive quarter of year-over-year net revenue growth.
  • Consumer net revenues totaled $94.4 million, a 29% year-over-year increase.
  • Enterprise net revenues totaled $4.6 million, a 68% year-over-year increase.
  • Gross profit margin was 48.8% of net revenues, compared to 47.4% in the second quarter of 2011.
  • Operating expenses, excluding $9.1 million of stock-based compensation, totaled $57.0 million.
  • GAAP net loss was ($9.5) million, compared to ($3.7) million in the second quarter of 2011.
  • GAAP net loss per diluted share was ($0.27), compared to ($0.11) in the second quarter of 2011.
  • Adjusted EBITDA was $3.6 million, compared to a loss of ($0.3) million in the second quarter of 2011.
  • At June 30, 2012, cash and cash equivalents totaled $118.1 million.

Second Quarter 2012 Consumer Metrics
  • Transacting customers totaled 1.9 million, a 14% pro forma year-over-year increase.
  • Orders totaled 3.0 million, a 15% pro forma year-over-year increase.
  • Average order value was $31.70, a pro forma increase of 5% year-over-year.
  • Average order value, excluding Treat, was $33.30, a pro forma increase of 3% year-over-year.

Recent Operating Highlights
  • Completed the acquisition of Kodak Gallery customers and their photos. Began migrating Kodak Gallery customers and their photos to Shutterfly in July.
  • Completed the acquisition of Photoccino Ltd., a company which has developed ground breaking image analysis and selection technologies.
  • Introduced double spread layouts for Photo Books.
  • Added Sorority cards to our Tiny Prints graduation product line.
  • Added Instagram as a picture source for Photo Books.
  • Added a Store page for all newly created Shutterfly share sites.
  • Introduced new personalized plates, cups and water bottles to our Photo Gift product line.
  • Added hundreds of new card designs across Shutterfly and Tiny Prints.
  • Launched Same Sex Collection and Religious/Ethnic Collection at Wedding Paper Divas.
  • Added the ability to compare products across multiple sessions.
  • Added hundreds of Hallmark designs, styles and sentiments to our Treat product line.
  • Partnered with other leading brands such as Coke, Hallmark, Disney, Post, Kimberly-Clark, Symantec, Leapfrog and Great Wolf Lodge to increase the awareness and trial of our products.

Business Outlook

Third Quarter 2012:
  • Net revenues to range from $89.5 million to $91.5 million, a year-over-year increase of 17% to 20%.
  • GAAP gross profit margin to range from 45% to 46% of net revenues.
  • Non-GAAP gross profit margin to range from 47.5% to 48.5% of net revenues.
  • GAAP operating loss to range from ($28.8) million to ($30.3) million.
  • Non-GAAP operating loss to range from ($14.2) million to ($15.7) million.
  • GAAP effective tax rate to be approximately 48%.
  • GAAP net loss per diluted share to range from ($0.41) to ($0.44).
  • Weighted average diluted shares of approximately 36.0 million.
  • Adjusted EBITDA loss to range from ($6.0) million to ($7.5) million.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs