News Column

Shutterfly Announces First Quarter 2014 Financial Results

May 17, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Shutterfly, Inc. (NASDAQ:SFLY), the leading manufacturer and digital retailer of high-quality personalized products and services offered through a family of lifestyle brands, announced financial results for the first quarter ended March 31, 2014.

"Q1 was a strong start to the fiscal year, with solid growth in our consumer business," said Jeffrey Housenbold, president and CEO. "Leveraging our integrated marketing approach and data driven pricing and promotional strategies, we were able to improve our brand awareness and customer engagement and drive healthy increases in customers, orders and average order value. I am pleased with our sustained high level of execution and remain confident in our strategy and ability to transform the multi-billion dollar memories, social expression and personalized products markets from offline to online." First Quarter 2014 Financial Highlights Net revenues totaled $137.1 million, a 17.5% year-over-year increase.

First quarter 2014 represents the 53rd consecutive quarter of year-over-year net revenue growth.

Consumer net revenues totaled $130.6 million, a 19% year-over-year increase.

Enterprise net revenues totaled $6.5 million, a 6% year-over-year decrease.

Gross profit margin was 44.3% of net revenues, compared to 47.0% in the first quarter of 2013.

Operating expenses, excluding $15.0 million of stock-based compensation, totaled $84.4 million.

GAAP net loss was ($34.2) million, compared to ($12.4) million in the first quarter of 2013.

GAAP net loss per share was ($0.89), compared to ($0.33) in the first quarter of 2013.

Adjusted EBITDA was $0.2 million, compared to $3.3 million in the first quarter of 2013.

At March 31, 2014, cash and cash equivalents and investments totaled $370.3 million. First Quarter 2014 Operating Metrics Transacting customers totaled 2.6 million, a 14% year-over-year increase.

Orders totaled 3.9 million, a 13% year-over-year increase.

Average order value was $33.76, an increase of 5% year-over-year. Business Outlook Second Quarter 2014: Net revenues to range from $154.0 million to $158.0 million, a year-over-year increase of 15.4% to 18.4%.

GAAP gross profit margin to range from 46.0% to 47.0% of net revenues.

Non-GAAP gross profit margin to range from 48.4% to 49.3% of net revenues.

GAAP operating loss to range from ($32.9) million to ($33.2) million.

Non-GAAP operating loss to range from ($8.2) million to ($9.0) million.

GAAP effective tax rate to range from 22.0% to 25.0%.

GAAP net loss per share to range from ($0.72) to ($0.75).

Weighted average shares of approximately 38.5 million.

Adjusted EBITDA to range from $6.0 million to $7.0 million. Full Year 2014: Net revenues to range from $903.0 million to $920.0 million, a year-over-year increase of 15.2% to 17.4%.

GAAP gross profit margin to range from 52.0% to 53.0% of net revenues.

Non-GAAP gross profit margin to range from 53.6% to 54.6% of net revenues.

GAAP operating income/(loss) to range from ($0.6) million to $9.2 million.

Non-GAAP operating income to range from $96.7 million to $109.1 million.

GAAP effective tax rate to range from 15% to 23%.

GAAP net loss per share to range from ($0.38) to ($0.15).

Weighted average shares of approximately 38.6 million.

Adjusted EBITDA to range from $160.6 million to $174.8 million, or 17.8% to 19.0% of net revenues.

Capital expenditures to range from 9.5% to 10.5% of net revenues. Notes to the First Quarter 2014 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 Company's 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 and rental revenue. 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. First Quarter 2014 Conference Call Management will review the first quarter 2014 financial results and its expectations for the second quarter and full year 2014 on a conference call on Wednesday, April 30, 2014 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To listen to the call and view the accompanying slides, 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, May 14, 2014. To hear the replay, please dial 404-537-3406, replay passcode 23607371. Non-GAAP Financial Information This press release contains non-GAAP financial measures. Tables are provided at the end of this press release that reconcile the non-GAAP financial measures that the Company uses to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP gross profit margin, non-GAAP operating income (loss) and operating margin, adjusted EBITDA, free cash flow, and non-GAAP net income (loss) per share. The method the Company uses to produce non-GAAP financial measures is not computed according to GAAP and may differ from methods used by other companies.

Keywords for this news article include: Marketing, Advertising, Shutterfly Inc, Investment and Finance.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Investment Weekly News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters