Shutterfly Inc., Redwood City, Calif., reported fourth-quarter net revenues increased 27 percent to $166.2 million, and full-year 2010 revenues increased 25 percent to $307.7 million. Net income in the quarter was $32.5 million, compared to $24.1 million. Net income for the year was $17.1 million, compared to $5.8 million the year prior.
“Our strategic investments throughout 2010, combined with our focus on strong execution, innovation and improved efficiencies
led to record revenues, profits, and free cash flows” says Jeffrey Housenbold, president and CEO. “We continue to outpace the industry in terms of innovation, user experience, on-trend designs, quality, and customer service. With the social expression and personal publishing markets still in the early stages, Shutterfly will focus on extending our leadership position in these large markets throughout 2011.”
For the fourth quarter, Personalized Products & Services (PPS) net revenues totaled $123.8 million, a 33-percent year-over-year increase, and represented 75 percent of total net revenues. Net revenues from Prints totaled $40.1 million, a 10-percent year-over-year increase. Commercial Print net revenues totaled $2.3 million.
Also, in the quarter, existing customers generated 72 percent of total net revenues, and transacting customers totaled 2.3 million, a 23-percent year-over-year increase. Average order value was $44.41, a 5 percent year-over-year increase.
For the full year, PPS net revenues totaled $218.7 million, a 35-percent year-over-year increase, represented 71 percent of total net revenues. Net revenues from prints totaled $83.9 million, a 4 percent year-over-year increase. Commercial Print net revenues totaled $5.1 million. Existing customers generated 73 percent of total net revenues. Transacting customers totaled 4.1 million, a 24 percent year-over-year increase. Orders increased 17 percent to 9.2 million, with the average order value was $32.88, a 7 percent year-over-year increase.
For the first quarter 2011, the company expects net revenues to range from $52 million to $53 million, a year-over-year increase of 14 to 16 percent. For the full year, the company expects net revenues to range from $363 million to $373 million, a year-over-year increase of 18 to 21 percent.
Personalized Products and Services net revenues primarily include Photo Books, Stationery and folded Greeting Cards, Calendars and Photo-based Merchandise. PPS also includes net revenues from advertising and sponsorship programs and referral fees. The company’s referral fee program was discontinued effective March 31, 2010, and no referral fee revenues have been recorded subsequent to that date. Print net revenues consist of photo print from wallet to large-format sizes. Commercial Print net revenues are excluded from net revenues from PPS and Prints.