| | REDWOOD CITY, Calif. (AP) -- Shutterfly Inc., operator of a photo printing and sharing Web site, on Tuesday posted a wider third-quarter loss -- its first report as a public company.
Losses after paying preferred dividends grew to $2.7 million, or 70 cents per share, from $1.3 million, or 38 cents per share, a year ago. Adjusting for the preferred shares that converted into 13.8 million common shares in connection with the company's October IPO, Shutterfly posted a much smaller loss of 15 cents per share in the latest period.
Revenue increased 36 percent to $21.2 million from $15.6 million, last year, with non-print revenue more than tripling to $7.7 million. Non-print revenue as a percent of total sales increased to 36 percent from 24 percent in the third quarter of 2005.
Shares closed earlier down 16 cents at $12.10 on the Nasdaq, then rose 56 cents, or 4.6 percent, to $12.66 in after-hours trading on the INET electronic exchange.
The company said 77 percent of sales were generated by existing customers. Total costs grew to $15.4 million from $10.3 million last year. Transacting customers totaled 623,000, up 40 percent from the third quarter of 2005 and orders grew 42 percent to more than 1.2 million. However, average order size dipped 5 percent to $17.
On Oct. 4, Shutterfly received gross proceeds from its initial public offering of $80.9 million. The company plans to use a portion of the net proceeds to invest in technology and process development, customer retention and marketing programs.
"We are extremely pleased with our financial performance this quarter and believe that we are well positioned for a successful fourth quarter. From an investment standpoint, we continue to plan to invest to grow the business and therefore expect to spend $20 million to $25 million on capital expenditures over the next 15 months," said Steve Recht, chief financial officer.
Looking ahead, the company forecast fourth-quarter revenue growth of 37 percent to 44 percent to between $56 million and $59 million, and full-year revenue of $114 to $117 million, representing 36 percent to nearly 40 percent growth. For fiscal 2007, Shutterfly predicted sales growth of about 30 percent. |
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