Business News

Shutterfly Announces Second Quarter 2013 Financial Results

Wednesday 07. August 2013 - Net revenues increase 35% year-over-year to $133.5 million

GAAP net loss of ($0.31) per diluted share
Adjusted EBITDA of $6.3 million
50th 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 second quarter ended June 30, 2013.
“We had a strong second quarter demonstrating continued execution and momentum in our business,” said Jeffrey Housenbold, president and CEO. “We are playing to win, in what we believe are the early stages of large market opportunities and as such, are making investments for both short and long-term success”
Second Quarter 2013 Financial Highlights
Net revenues totaled $133.5 million, a 35% year-over-year increase.
Second quarter 2013 represents the 50th consecutive quarter of year-over-year net revenue growth.
Consumer net revenues totaled $124.9 million, a 32% year-over-year increase.
Enterprise net revenues totaled $8.6 million, an 86% year-over-year increase.
Gross profit margin was 46% of net revenues, compared to 49% in the second quarter of 2012.
Operating expenses, excluding $12.1 million of stock-based compensation, totaled $73.6 million.
GAAP net loss was ($11.8) million, compared to ($9.5) million in the second quarter of 2012.
GAAP net loss per diluted share was ($0.31), compared to ($0.27) in the second quarter of 2012.
Non-GAAP net loss per diluted share was ($0.29), compared to ($0.27) in the second quarter of 2012.
Adjusted EBITDA was $6.3 million, compared to $3.6 million in the second quarter of 2012.
At June 30, 2013, cash and cash equivalents totaled $365.8 million.
Second Quarter 2013 Operating Metrics
Transacting customers totaled 2.3 million, a 24% year-over-year increase.
Orders totaled 3.6 million, a 20% year-over-year increase.
Average order value was $34.96, an increase of 10% year-over-year.
Business Outlook
Third Quarter 2013:
Net revenues to range from $115.5 million to $117.5 million, a year-over-year increase of 17.2% to 19.2%.
GAAP gross profit margin to range from 40.5% to 41.5% of net revenues.
Non-GAAP gross profit margin to range from 43.4% to 44.4% of net revenues.
GAAP operating loss to range from ($41.0) million to ($43.0) million.
Non-GAAP operating loss to range from ($18.0) million to ($20.0) million.
GAAP effective tax rate to range from 46% to 47%.
GAAP net loss per diluted share to range from ($0.63) to ($0.67).
Non-GAAP net loss per diluted share to range from ($0.58) to ($0.62).
Weighted average diluted shares of approximately 37.9 million.
Adjusted EBITDA loss to range from ($6.0) million to ($8.0) million.
Full Year 2013:
Net revenues to range from $776.0 million to $781.0 million, a year-over-year increase of 21.1% to 21.9%.
GAAP gross profit margin to range from 53.0% to 54.0% of net revenues.
Non-GAAP gross profit margin to range from 54.7% to 55.7% of net revenues.
GAAP operating income to range from $14.2 million to $20.4 million.
Non-GAAP operating income to range from $96.9 million to $103.1 million.
GAAP effective tax rate to range from 30% to 32%.
GAAP net income per diluted share to range from $0.08 to $0.19.
Non-GAAP net income per diluted share to range from $0.23 to $0.33.
Weighted average diluted shares of approximately 39.7 million.
Adjusted EBITDA to range from $139.7 million to $148.4 million, or 18% to 19% of net revenues.
Capital expenditures to range from 10.0% to 10.4% of net revenues.
Notes to the Second 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.
Non-GAAP earnings per share is defined as non-GAAP net income (loss), which excludes interest expense related to the issuance of 0.25% convertible senior notes in May 2013, divided by diluted non-GAAP shares outstanding, which is GAAP diluted weighted average shares outstanding less any shares issuable under the Company’s convertible senior notes.
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.