Shutterfly Reports Big Revenue Jump, Boosted by Acquisition

Third Quarter 2011

  • Net revenues to range from $73 million to $75 million.
  • GAAP gross profit margin to range from 45 percent to 46 percent of net revenues.
  • Non-GAAP gross profit margin to range from 47.5 percent to 48.5 percent of net revenues.
  • GAAP operating loss to range from ($25) million to ($28) million.
  • Non-GAAP operating loss to range from ($11) million to ($14) million.
  • GAAP effective tax rate to range from 45 percent to 55 percent.
  • Adjusted EBITDA loss to range from ($6) million to ($7) million.

Full Year 2011

  • Net revenues to range from $475 million to $485 million.
  • GAAP gross profit margin to range from 54.5 percent to 55.5 percent of net revenues.
  • Non-GAAP gross profit margin to range from 56.2 percent to 57.2 percent of net revenues.
  • GAAP operating income to range from $18 million to $25 million.
  • Non-GAAP operating income to range from $67.5 million to $74.5 million.
  • GAAP effective tax rate to range from 25 percent to 35 percent.
  • Adjusted EBITDA to range from 18.7 percent to 19.7 percent of net revenues.
  • Capital expenditures to range from 7.0 percent to 7.5 percent of net revenues.

Notes to Second Quarter 2011 Financial Results and Business Outlook

Unless otherwise stated, all financial measures include the effects of the Tiny Prints acquisition effective April 25, 2011.

Adjusted EBITDA is a non-GAAP financial measure that the Company defines as earnings before interest, taxes, depreciation, amortization and stock-based compensation.

Free cash flow is a non-GAAP financial measure that the Company defines as Adjusted EBITDA less purchases of property, plant, and equipment and capitalization of software development costs.

Personalized Products and Services (“PP&S”) net revenues primarily include Photo Books, Stationery and folded Greeting Cards, Calendars and Photo-based Merchandise. PP&S also includes net revenues from advertising and sponsorship programs.

Print net revenues consist of photo prints in Wallet, 2×6, 4×6, 5×7, 8×10 and various large format sizes; as well as personalized Photo Cards manufactured using a silver halide process.

Comments