Shutterfly Inc., Redwood City, Calif., said third-quarter net revenues increased 56 percent to $76.5 million, but the net loss widened to $10.0 million, compared to $4.8-million loss in 2010.
Personalized Products & Services (PP&S) net revenues increased 73 percent year-over-year to $56.5 million. Net revenues from Prints increased 3 percent year-over-year to $16.1 million. Commercial Print net revenues totaled $3.9 million.
Shutterfly said existing customers generated 77 percent of consumer net revenues, while transacting customers rose 16 percent to 1.4 million. Orders totaled 2.4 million, a 17 percent year-over-year increase, but order values were flat at $23.71.
In the Tiny Prints segment, existing customers generated 35 percent of Tiny Prints net revenues. Transacting customers totaled 144,000, a 6-percent year-over-year increase. Orders totaled 189,000, a 12 percent year-over-year increase.
“Shutterfly delivered strong third quarter results as we continued to see healthy customer behavior and solid revenue growth in each of our businesses despite the challenging economic environment,” says Jeffrey Housenbold, president and CEO. “Investments in our product and service offerings, platform infrastructure and people throughout 2011 have positioned us well for the Q4 holiday shopping period. Our commitment to innovation, design forward products and services, customer friendly policies, industry-leading quality and focused financial discipline continue to differentiate Shutterfly from the competition.”
For the fourth quarter, the company expects net revenues in the range of $270.5 million to $275.5 million. For the full year, net revenues are projected to range from $480 million to $485 million.