Business News

Shutterfly Announces First Quarter 2013 Financial Results

Tuesday 07. May 2013 - Net revenues increase 28% year-over-year to $116.7 million

GAAP net loss of ($0.33) per diluted share
Adjusted EBITDA of $3.3 million
49th consecutive quarter of year-over-year net revenue growth
Shutterfly, Inc. (NASDAQ:SFLY), the leading manufacturer and digital retailer of high-quality personalized products and services offered through a family of lifestyle brands, today announced financial results for the first quarter ended March 31, 2013.
“The first quarter was a solid start to the year, with strong execution across our businesses,” said Jeffrey Housenbold, President and CEO. “Capitalizing on our scale, scope and profitability, we continued to enhance our world-class platform across our four lifestyle brands and invest in early stage customer facing initiatives including Wedding, Enterprise, Treat, Mobile and our new Enhanced Cloud Service. Our acquisition of MyPublisher will enable Shutterfly to engage with new audiences, further extending our footprint in the multi-billion dollar social expression and personal publishing markets.”
First Quarter 2013 Financial Highlights
Net revenues totaled $116.7 million, a 28% year-over-year increase.
First quarter 2013 represents the 49th consecutive quarter of year-over-year net revenue growth.
Consumer net revenues totaled $109.8 million, a 29% year-over-year increase.
Enterprise net revenues totaled $6.9 million, a 12% year-over-year increase.
Gross profit margin was 47% of net revenues, compared to 45% in the first quarter of 2012.
Operating expenses, excluding $11.0 million of stock-based compensation, totaled $67.8 million.
GAAP net loss was ($12.4) million, compared to ($10.0) million in the first quarter of 2012.
GAAP net loss per diluted share was ($0.33), compared to ($0.29) in the first quarter of 2012.
Adjusted EBITDA was $3.3 million, compared to $0.6 million in the first quarter of 2012.
At March 31, 2013, cash and cash equivalents totaled $164.5 million.
First Quarter 2013 Operating Metrics
Transacting customers totaled 2.2 million, a 20% year-over-year increase.
Orders totaled 3.4 million, a 20% year-over-year increase.
Average order value was $32.13, an increase of 7% year-over-year.
Business Outlook
Second Quarter 2013:
Net revenues to range from $118.0 million to $121.2 million, a year-over-year increase of 19.2% to 22.4%.
GAAP gross profit margin to range from 45.5% to 46.0% of net revenues.
Non-GAAP gross profit margin to range from 49.3% to 49.6% of net revenues.
GAAP operating loss to range from ($35.3) million to ($36.8) million.
Non-GAAP operating loss to range from ($12.0) million to ($13.5) million.
GAAP effective tax rate to range from 39.5% to 40.5%.
GAAP net loss per diluted share to range from ($0.55) to ($0.58).
Weighted average diluted shares of approximately 38.1 million.
Adjusted EBITDA loss to range from ($1.5) million to ($3.0) million.
Full Year 2013:
Net revenues to range from $766.0 million to $771.0 million, a year-over-year increase of 19.6% to 20.4%.
GAAP gross profit margin to range from 53.0% to 53.4% of net revenues.
Non-GAAP gross profit margin to range from 55.1% to 55.5% of net revenues.
GAAP operating income to range from $12.7 million to $18.9 million.
Non-GAAP operating income to range from $96.5 million to $104.6 million.
GAAP effective tax rate to range from 32% to 34%.
GAAP net income per diluted share to range from $0.20 to $0.30.
Weighted average diluted shares of approximately 39.9 million.
Adjusted EBITDA to range from $137.7 million to $146.8 million, or 18% to 19% of net revenues.
Capital expenditures to range from 9.4% to 10.4% of net revenues.
Notes to the First Quarter 2013 Financial Results and Business Outlook
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.
Consumer category includes net revenues from stationery and greeting cards, photo books, calendars and photo-based merchandise, photo prints, and the related shipping revenues. Consumer also includes net revenues from advertising and sponsorship programs.
Enterprise category includes net revenues primarily from variable, four-color direct marketing collateral manufactured and fulfilled for business customers.
Average Order Value (AOV) is defined as total net revenues (excluding Enterprise) divided by total orders.
The foregoing financial guidance replaces any of the Company’s previously issued financial guidance which should no longer be relied upon.