Shutterfly reports higher third-quarter revenues and net loss

Shutterfly Inc., Redwood City, Calif., reported third-quarter revenues increased 13 percent to $40.5 million — the 13th consecutive month of growth — , the leading Internet-based social expression and personal publishing service, today announced financial results for the three months ended September 30, 2009. The net loss increased to $6.3 million, compared to $2.83 million a year ago.

In the Personalized Products and Services segment, net revenues totaled $23.6 million, a 22 percent year-over-year increase; this segment now accounts for 58 percent of total net revenues. Print revenues continued to decline, dropping 6 percent to $15.6 million. Existing customers generated 76 percent of total net revenues.

In the third quarter, transacting customers totaled 982,000, a 7 percent increase over the third quarter of 2008, with orders totaling 1.7 million, a 3 percent increase over the third quarter of 2008. The average order value4 was $23.03, a  percent increase over the third quarter of 2008.

“Shutterfly delivered very solid third quarter results with better than expected revenue and EBITDA growth, despite an increasingly tough macro-economic environment,” says Jeffrey Housenbold, president and CEO. “During the quarter we launched the innovative Simple Path photo book creation experience, enhanced our cards and stationery offering and acquired Tiny Pictures. We also made strong progress on our commercial printing initiative and prepared our manufacturing facilities in Charlotte and Phoenix for the seasonally busy fourth quarter.”