Shutterfly Announces First Quarter 2017 Financial Results 

GaryPageau

(BUSINESS WIRE)–Shutterfly, Inc. (NASDAQ:SFLY), the leading online retailer and manufacturer of high-quality personalized products and services, today announced financial results for the first quarter ended March 31, 2017.

Christopher North, CEO, Shutterfly

“In the first quarter, we announced a major initiative to simplify our business over the course of 2017, focusing our resources on our industry-leading Shutterfly and Tiny Prints Consumer brands and our Enterprise business, and bringing all of our Consumer brands together on a single platform,” said Christopher North, President and Chief Executive Officer. “I’m pleased to report that we’re making good progress in both the restructuring and the migration to a single platform, and remain on track to complete migration prior to our peak season in the fourth quarter.”

“The team delivered good results for the first quarter, led by continued growth in our flagship Shutterfly brand and in Shutterfly Business Solutions. At the same time, we added new features and products to our mobile apps, improved the speed and reliability of our Shutterfly website, launched several new products in the Home Décor, Personalized Gifts, and Wedding categories, and completed the migration of active customers to our Shutterfly Photos cloud photo management service, migrating millions of additional users and billions of images in the quarter.”

First Quarter 2017 Financial Highlights

  • Net revenues totaled $192.0 million, a 6% year-over-year increase.
  • Consumer net revenues totaled $160.7 million, a 3% year-over-year increase.
  • Shutterfly Business Solutions net revenues totaled $31.3 million, a 19% year-over-year increase.
  • Operating loss totaled $49.8 million. Excluding $9.0 million of restructuring charges, operating loss totaled $40.8 million.
  • Adjusted EBITDA loss was $7.2 million. Excluding $5.3 million of restructuring charges, adjusted EBITDA loss was $1.9 million.
  • Net loss was $33.2 million or $0.98 per share. Excluding $5.0 million of after tax restructuring charges, net loss was $28.2 million or $0.84 per share.

Business Outlook [1]Second Quarter 2017:

  • Net revenues to range from $205.0 million to $212.0 million.
  • Gross profit margin to range from 43.0% to 43.5% of net revenues
  • Operating loss to range from $24.5 million to $21.0 million.
  • Effective tax rate of 38.5%.
  • Net loss per share to range from $0.55 to $0.50.
  • Weighted average shares of approximately 33.6 million.
  • Adjusted EBITDA to range from $14.0 million to $17.5 million.

Full Year 2017:

  • Net revenues to range from $1.135 billion to $1.165 billion.[2]
  • Gross profit margin to range from 49.0% to 50.0% of net revenues.
  • Operating income to range from $48.5 million to $68.5 million.
  • Effective tax rate of 37.5%.
  • Net income per share to range from $0.45 to $0.80.
  • Weighted average shares of approximately 34.5 million.
  • Adjusted EBITDA to range from $210.0 million to $230.0 million.
  • Capital expenditures to be approximately $75.0 million.

[1] Excludes full year restructuring charges ranging from $15 million to $20 million as well as any costs related to refinancing our convertible debt.[2] In 2017, net revenues from SBS segment to increase 20% over 2016.

 

More and Source: Shutterfly Announces First Quarter 2017 Financial Results | Business Wire

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