Shutterfly Reports Big Revenue Jump, Boosted by Acquisition
REDWOOD CITY, CA—July 27, 2011—Shutterfly Inc., a leading Internet-based social expression and personal publishing service, announced financial results for the three months ended June 30, 2011.
“Bolstered by contributions from our Tiny Prints acquisition, cards and stationery and photo books once again fueled our strong second-quarter performance, reinforcing what we believe is a winning combination of our two companies,” said President and CEO Jeffrey Housenbold. “Our multi-brand strategy combined with our loyal and growing customer base is strengthening our leading position in the online personal expression and photo publishing market.”
Second Quarter 2011 Financial Highlights
- Net revenues increased 62 percent year-over-year to $75.8 million.
- Personalized Products & Services (PP&S) net revenues increased 85 percent year-over-year to $58.5 million.
- Net revenues from Prints increased 1 percent year-over-year to $14.5 million.
- Commercial Print net revenues totaled $2.8 million.
- Gross profit margin was 47.4 percent of net revenues, compared to 50.5 percent in Q2 2010.
- GAAP net loss was ($3.6) million, compared to ($5.9) million in Q2 2010.
- Adjusted EBITDA was ($0.3) million, compared to $1.2 million in Q2 2010.
- At June 30, 2011, cash and cash equivalents totaled $75.9 million.
Second Quarter 2011 Operating Metrics
- Existing customers generated 72 percent of consumer net revenues.
- Transacting customers totaled 1.4 million, a 26 percent year-over-year increase.
- Orders totaled 2.2 million, a 24 percent year-over-year increase.
- Average order value was $26.10, a 2 percent year-over-year increase.
Tiny Prints (Pro Forma for the full quarter ended June 30, 2011)
- Existing customers generated 36 percent of Tiny Prints net revenues.
- Transacting customers totaled 224 thousand, a 67 percent year-over-year increase.
- Orders totaled 362 thousand, a 124 percent year-over-year increase.
- Average order value was $56.43; $112.13 excluding 1:1 greeting cards, a 12 percent year-over-year increase.
Recent Operating Highlights
- Tiny Prints acquisition already proving successful, evidenced by its 44 percent year-over-year pro forma second quarter revenue growth, expanding customer base and improvements in key metrics.
- Made significant progress on Tiny Prints integration, completing the 2011 manufacturing transition plan, migrating Finance and HR systems and coordinating key marketing and merchandising strategies.
- Introduced the “All New Custom Path” photo book creation experience, which gives consumers full creative control to tell their story with more designs and the ability to access photos from multiple sources.
- New and improved Share Site welcome page and site creation path, with an “Events and Celebrations” category, sample sites, larger previews and easier site selection and development.
- Updates to the cards and stationery shopping experience with icon-based navigation, Quick View launching point and infinite scrolling features to facilitate ease of browsing.