Shutterfly’s online sales grow 18% in Q4 and for all of 2014
February 18, 2015 03:13 PM
Sales at Shutterfly Inc., an online photo processor and seller of photo-based products increased 18% for the fourth quarter and for all of 2014, compared with the year-ago periods.
For the fourth quarter of fiscal 2014, Shutterfly, No. 50 in the Internet Retailer 2014 Top 500 Guide, reported:
- Net revenue of $483.3 million, a 17.6% increase compared with $410.8 million in Q4 of 2013.
- B2B sales totaled $20.4 million, a 67.2% increase year over year from $12.2 million.
- The number of orders increased about 12% to about 7.7 million from nearly 6.9 million.
- The number of customers grew 22.6% to 5.70 million from 4.65 million.
- The overall average order value decreased about 7% to $48.26 from $51.80.
- The average order value, not including the impact of the GrooveBook acquisition, was $51.55, basically flat from $51.80 in Q4 of 2013. Shutterfly bought GrooveBook, a photo-printing app and subscription service that creates personalized photo books, in November.
- The fourth quarter of 2014 was the 56th consecutive quarter of year-over-year sales growth.
For the year ending Dec. 30, the web-only merchant reported:
- Net revenue increased 17.6% to $921.6 million compared to $783.6 million in 2013.
- B2B sales totaled $50.62 million, a 34.4% increase year over year from $37.67 million.
- The number of customers grew approximately 14% to 9.2 million from 8.1 million.
- The number of orders increased about 17% to 21.8 million from 18.6 million in 2013.
- The average order value of $40.00 was about the same as the $40.19 value in 2013.
- The average order value, not including the impact of the GrooveBook acquisition, was $41.14, a 2% year-over-year increase from $40.19.
- Net loss was $7.86 million compared with a net gain of $9.28 million in 2013.
For 2015, Shutterfly CEO Jeffrey Housenbold said, “We are also announcing a series of strategic initiatives to drive scale efficiencies and operating margins from the consolidation of several of our technology platforms, the closure of our sub-scale Elmsford manufacturing facility, and the shutdown of our Treat brand.”
Other 2015 initiatives include:
- A 15- to 18-month process to build the next generation of Shutterfly, a service that will consolidate several platforms into one. The changes will consolidate ThisLife, Tiny Prints, Wedding Paper Divas platforms and Shutterfly mobile apps into Shutterfly.com.
- Treat brand will close March 18, and consumers will be redirected to Shutterfly.com.
For 2015 Q1 Shutterfly is forecasting an increase in net revenue ranging from $153.0 million to $157.0 million, a year-over-year increase of 11.6% to 14.5%.