Shutterfly

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For the computer application, see Shutterfly Studio.
Not to be confused with Fluttershy.
Shutterfly
Shutterfly.png
Type Public
Traded as NASDAQSFLY
Founded 1999
Headquarters Redwood City, California
President Jeffrey Housenbold
CEO Jeffrey Housenbold
Industry photograph-derived manufacture; photo sharing
Website http://www.shutterfly.com/
Alexa rank negative increase 1,562 (April 2014)[1]

Shutterfly is an Internet-based image publishing service based in Redwood City, California. Shutterfly's flagship product is its photo book line. The company was founded in 1999 and is currently led by Jeffrey Housenbold, who joined the company in 2005.[2] The company went public in 2006.[2] The customer base is heavily skewed toward women, who accounted for 80% of customers as reported in 2013.[2]

Shutterfly's revenue derives from "turning digital snapshots into tangible things".[2]

Company[edit]

Shutterfly enables users to create personalized photo gifts (including photos and text) such as Samsung Galaxy and iPhone cases, photo books, wall art, and home décor. It competes with Hewlett-Packard Co's Snapfish service, which Reuters reported in September 2014 is also up for sale.[3] Shutterfly has partnered with The Ellen Degeneres Show to give to those in need.[4]

In August 2014, the total number of customers was 2.6 million, reflecting an increase of 13% from the prior-year quarter. Total orders generated were 4.2 million, up 16% year over year. Average order value was $36.14, up 3% year over year driven by promotional strategies and integrated marketing campaigns adopted by the company.[5] Their Q4 2013 earnings grew 17% year-over-year to $410.8 million and resulted in a 12% year-over-year increase in adjusted EBITDA despite a shortened holiday shopping season.[6]

Shutterfly also partnered with Brit Morin, Michelle Workman and Olivia Palermo to showcase how to use their different products within a New York townhouse to create unique design opportunities. The project is called “Shutterfly by Design.” [7]

It’s company Tiny Prints has launched “Tiny Prints for iPad” in September 2014; a mobile version of their online stationery boutique the company acquired in 2011.[8]

History[edit]

Shutterfly was founded in December 1999 as an internet-based social expression and personal publishing service. [9] Its corporate headquarters are located in Redwood City, California. The company’s flagship product is its photo book line. [10]

In 2000, Shutterfly partnered with Kodak to offer their customers film developing and scanning services.[11]In 2012, the Shutterfly acquired Kodak Gallery from Eastman Kodak Co. for $23.8 million. [12]

In 2001, Shutterfly secured $3 million in incremental capital which was used to expand its infrastructure. [13] The funds include an equipment financing line from Silicon Valley bank. In 2002, the company exceeded its expected earnings and began considering an IPO for 2004[14] however, it did not take place until 2006. In September 2006, the completed their initial public offering and their common stock was officially listed on the NASDAQ Global Select Market under the symbol “SFLY." [15]

In 2007 Shutterfly was recognized by Deloitte & Touche as Fast 50 Technology Company for Silicon Valley and a Fast 500 Company for North America. Shutterfly ranked #20 in the Internet, Media & Entertainment and Communication category on the Fast 50 list and ranked #241 on the Fast 500 list. [16] The annual rankings identify technology, media, telecommunications and life sciences companies that have shown the fastest growth over the past year. Rankings are based on percentage of fiscal year revenue growth over five years, from 2002-2006. Shutterfly grew 671 percent during this period.

In 2009, Shutterfly began its acquisition plans with the purchase of Tiny Pictures, a mobile photo-sharing application centered on photo commenting. This is the first of several acquisitions the company made over the next few years. In 2011, Shutterfly acquired Tiny Prints, Inc. and Wedding Paper Divas.[17] In 2013, the company acquired This Life, a cloud-based solution for organizing and sharing photos and videos. Most recently, Shutterfly acquired BorrowLenses, a rental company for high-end photography equipment. In 2014 it opened a new manufacturing facility in Shakopee, Minnesota.[18]

Company Divisions[edit]

Tiny Prints and Wedding Paper Divas: In March 2011, Shutterfly acquired personalized card and stationery seller Tiny Prints, Inc. and partner-company Wedding Paper Divas for $141 million in cash and 3.9 million shares. The total transaction was valued at $333 million. The company has received multiple celebrity endorsements including Kelly Ripa, Jason Priestly, and Tori Spelling. Their products have also been highlighted on the Rachel Ray Show and in InStyle Magazine. Wedding Paper Divas has been highlighted on ABC news. In September 2014, the company launched “Tiny Prints for iPad” in September 2014; a mobile version of their online stationery boutique the company acquired in 2011.

This Life: In 2013, Shutterfly acquired ThisLife, a cloud-based solution for organizing and sharing photos and videos. ThisLife initially launched in 2010 by husband-and-wife team Matt and Andrea Johnson. ThisLife has raised a $2.75 million seed round led by Madrona Venture Group, with Madrona Managing Director Greg Gottesman joining its board.[19] The company was acquired by Shutterfly in January 2013 and the purchase was reported to cost $25 million.[20] ThisLife lets you pull in all your photos from different sources such as social networks, mobile devices, personal computer, or stored online into one place.[21]

Treat: In April 2012, Shutterfly Launched Treat, a service to create completely customized greeting cards. Unlike other divisions of Shutterfly that were acquired, Treat was developed internally. The site has 4,500 fully customizable card designs and has a partnership with Hallmark.[22]

BorrowLenses: Mark Gurevich and Max Shevyakov launched BorrowLenses in 2007 as a way for individuals to rent high-level camera equipment and avoid making an expensive purchase. The company delivers to all 50 states and offers over 30 “pick-up” locations at local camera shops in 12 different states. The company has two headquarters in San Carlos, California and Waltham, Massachusetts. In October 2013, Shutterfly acquired BorrowLenses. Terms of the deal weren’t released.[23]

Acquisitions[edit]

  1. ThisLife (Photo sharing) January 7, 2013[24]
  2. Kodak Gallery March 1, 2012[25]
  3. Tiny Prints, Inc (Personalized card and stationery seller) March 21, 2011[26]
  4. Tiny Pictures (mobile photo-sharing application centered on photo commenting) September 2009[27]
  5. On March 21, 2011, Shutterfly announced that it was acquiring personalized card and stationery seller a # privately held company that operates tinyprints.com and weddingpaperdivas.com, for $141 million in cash and 3.9 million shares.[26]
  6. On March 1, 2012, Eastman Kodak agreed to sell Kodak Gallery to Shutterfly for $23.8 million.[25]
  7. On October 24, 2013, Shutterfly acquired BorrowLenses.com.[28]
  8. In September 2014, it was reported by Reuters that the company is in talks with private equity firm Silver Lake to acquire for at least $2 billion.[29]

See also[edit]

References[edit]

  1. ^ "Shutterfly.com Site Info". Alexa Internet. Retrieved 2014-04-01. 
  2. ^ a b c d Ashlee Vance (January 3, 2013), Shutterfly's Improbably Long Survival (and Success), Bloomberg Businessweek, businessweek.com, retrieved January 26, 2013 
  3. ^ "Silver Lake in the lead to acquire Shutterfly -sources". Reuters. 22 September 2014. Retrieved 22 September 2014. 
  4. ^ "Partners in Giving". Shutterfly. 2 October 2014. Retrieved 22 September 2014. 
  5. ^ "Is Shutterfly Poised to Grow with Continued Innovations?". Yahoo Finance. 25 August 2014. Retrieved 22 September 2014. 
  6. ^ "Shutterfly (SFLY) Q4 2013 Earnings Call". Nasdaq. 5 February 2014. Retrieved 25 August 2014. 
  7. ^ "Shutterfly By Design". Shutterfly. Retrieved 2 October 2014. 
  8. ^ "Shutterfly Brings Its Online Boutique Tiny Prints To The iPad". Techcrunch.com. 5 September 2014. Retrieved 22 September 2014. 
  9. ^ "Shutterfly Facts". Shutterfly.com. Retrieved 5 November 2014. 
  10. ^ "Shutterfly Facts". Shutterfly.com. Retrieved 5 November 2014. 
  11. ^ "Shutterfly Partners with Kodak". Digital Photography Review. 27 June 2000. Retrieved 5 November 2014. 
  12. ^ [httpp://online.wsj.com/articles/SB10001424052702303592404577364271258571262 "Shutterfly to Snap Up Kodak Site"]. Wall Street Journal. 25 April 2012. Retrieved 5 November 2014. 
  13. ^ "Shutterfly Secures $3 Million In Incremental Capital". 19 November 2001. Retrieved 5 November 2014. 
  14. ^ "Shutterfly eyes possible IPO in 2004". 15 January 2003. Retrieved 5 November 2014. 
  15. ^ "Shutterfly, Inc. Stock Quote & Summary Data". Retrieved 5 November 2014. 
  16. ^ "2007 Technology Fast 500". Retrieved 5 November 2014. 
  17. ^ "Shutterfly Buys Tiny Pictures For A Tiny Price". 13 September 2009. Retrieved 5 November 2014. 
  18. ^ "Shutterfly’s Q3’14 Results Hit by Scaling-up Operations and Seasonal Slowdown". 30 October 2014. Retrieved 5 November 2014. 
  19. ^ Ryan Lawler (June 22, 2012), ThisLife Raises $2.75 Million From Madrona And Others To Organize Your Photos In The Cloud, techcrunch.com, retrieved October 5, 2014 
  20. ^ Ryan Lawler (January 3, 2013), Source: Shutterfly To Acquire Slick Photo Sharing And Storage Startup ThisLife, techcrunch.com, retrieved October 5, 2014 
  21. ^ Jackie Dove (August 6, 2014), Hands on: Shutterfly’s ThisLife masters photo management for busy families, thenextweb.com, retrieved October 5, 2014 
  22. ^ Joanna Stern (April 16, 2012), Shutterfly’s Treat Lets You Make Highly Customized Greeting Card, ABC News, retrieved October 5, 2014 
  23. ^ Ken Yeung (October 25, 2013), Shutterfly acquires BorrowLenses, adds photo and video equipment rentals to its offerings, The Next Life, retrieved October 5, 2014 
  24. ^ "Shutterfly Looks Like David -- Yahoo's Flickr Is Goliath". Forbes. January 7, 2013. Retrieved 2013-01-08. "Yahoo’s Flickr is the Goliath of online photo sharing. Shutterfly just became David with the acquisition of ThisLife." 
  25. ^ a b "Kodak Gallery to be sold to Shutterfly". Channel NewsAsia. Retrieved 2 March 2012. 
  26. ^ a b Associated Press (March 21, 2011). "Shutterfly to acquire Tiny Prints for over $300M". Bloomberg Businessweek. Retrieved May 4, 2011. 
  27. ^ "Shutterfly Buys Tiny Pictures For A Tiny Price". TechCrunch. September 13, 2009. Retrieved May 6, 2011. 
  28. ^ "Shutterfly Acquires BorrowLenses". Market Watch. 
  29. ^ "Silver Lake in the lead to acquire Shutterfly -sources". Reuters. 22 September 2014. Retrieved 22 September 2014. 

External links[edit]