surf1944
13 years ago
Shutterfly Announces Second Quarter 2011 Financial Results
short SFLY for now
Net revenues increase 62% year-over-year to $75.8 million
PP&S net revenues increase 85% year-over-year to $58.5 million
Company increases FY 2011 net revenue and EBITDA profitability outlook
Press Release Source: Shutterfly, Inc. On Wednesday July 27, 2011, 4:02 pm
REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Shutterfly, Inc. (NASDAQ:SFLY - News), a leading Internet-based social expression and personal publishing service, today announced financial results for the three months ended June 30, 2011.
"Bolstered by contributions from our Tiny Prints acquisition, Cards & 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 Chief Executive Officer 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% year-over-year to $75.8 million.
Personalized Products & Services (PP&S) net revenues increased 85% year-over-year to $58.5 million.
Net revenues from Prints increased 1% year-over-year to $14.5 million.
Commercial Print net revenues totaled $2.8 million.
Gross profit margin was 47.4% of net revenues, compared to 50.5% in Q2 2010.
GAAP net loss was ($3.6) million, compared to ($5.9) million in Q2 2010.
GAAP net loss per share was ($0.11), compared to ($0.22) 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
Shutterfly
Existing customers generated 72% of consumer net revenues.
Transacting customers totaled 1.4 million, a 26% year-over-year increase.
Orders totaled 2.2 million, a 24% year-over-year increase.
Average order value was $26.10, a 2% year-over-year increase.
Tiny Prints (Pro Forma for the full quarter ended June 30, 2011)
Existing customers generated 36% of Tiny Prints net revenues.
Transacting customers totaled 224 thousand, a 67% year-over-year increase.
Orders totaled 362 thousand, a 124% year-over-year increase.
Average order value was $56.43; $112.13 excluding 1:1 greeting cards, a 12% year-over-year increase.
Recent Operating Highlights
Tiny Prints acquisition already proving successful, evidenced by its 44% 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 & Stationery shopping experience with icon-based navigation, Quick View launching point and infinite scrolling features to facilitate ease of browsing.
Business Outlook
Third Quarter 2011
Net revenues to range from $73 million to $75 million.
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 ($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% to 55%.
GAAP net loss per share to range from ($0.32) to ($0.44).
Weighted average shares of approximately 34.8 million.
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% to 55.5% of net revenues.
Non-GAAP gross profit margin to range from 56.2% to 57.2% 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% to 35%.
GAAP diluted net income per share to range from $0.38 to $0.46.
Weighted average diluted shares of 35.5 million.
Adjusted EBITDA to range from 18.7% to 19.7% of net revenues.
Capital expenditures to range from 7.0% to 7.5% 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, 2x6, 4x6, 5x7, 8x10 and various large format sizes; as well as personalized Photo Cards manufactured using a silver halide process.
Commercial Print net revenues are excluded from PP&S and Print revenues, and primarily include variable, four-color direct marketing collateral manufactured and fulfilled for business customers.
Average Order Value (AOV) is defined as total net revenues (excluding Commercial Print) 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.
Second Quarter 2011 Conference Call
Management will review the second quarter 2011 financial results and its outlook for the third quarter and full year 2011 on a conference call on Wednesday, July 27, 2011 at 2:00 p.m. Pacific Daylight Time (5:00 p.m. Eastern Time). To listen to the call and view the accompanying slide presentation, please visit http://www.shutterfly.com in the Investor Relations area, found in the "About Us" section. Click on the link provided for the webcast, or dial 970-315-0490. The webcast, as well as a podcast, will be archived and available at http://www.shutterfly.com. A replay of the conference call will be available through Wednesday, August 11, 2011. To hear the replay, please dial 706-645-9291, replay passcode 80980083.