Shutterfly

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Shutterfly, Inc.
Shutterfly, Inc. logo.svg
Type of businessSubsidiary
Founded1999; 20 years ago (1999)
HeadquartersRedwood City, California
OwnerApollo Global Management
Key peopleWilliam Lansing
(Chairman of the Board)
Ryan O'Hara
(President & CEO)
Mike Pope
(Senior VP & CFO)
IndustryPhotograph-derived manufacture; photo sharing
RevenueIncrease US$1.961 billion (2018)
Operating incomeIncrease US$115.54 million (2018)
Net incomeIncrease US$50.37 million (2018)
Total assetsIncrease US$2.302 billion (2018)
Total equityDecrease US$674.37 million (2018)
Employees7,094 (2018)
Websitewww.Shutterflyinc.com
Alexa rankDecrease 1,975 (As of 19 March 2019)[1]
[2]
Logo of the image publishing service

Shutterfly, Inc. is headquartered in Redwood City, California, and specializes in personalized products and services owned by Apollo Global Management. Founded in 1999, Shutterfly, Inc. has three divisions: Shutterfly Consumer, Lifetouch, and Shutterfly Business Solutions. Shutterfly Consumer and Lifetouch help consumers capture, preserve, and share life’s important moments through professional and personal photography, and personalized products. The Shutterfly brand brings photos to life in photo books, gifts, home décor, and cards and stationery. Lifetouch is the national leader in school photography, built on the enduring tradition of “Picture Day”, and also serves families through portrait studios and other partnerships. Shutterfly Business Solutions delivers digital printing services that enable efficient and effective customer engagement through personalized communications. The company is currently led by Ryan O'Hara. The company went public in 2006, and returned to private ownership in 2019.[3][4]

Company[edit]

Shutterfly enables users to create personalized photo gifts (including photos and text) such as smartphone cases, photo books, wall art, and home décor. It competes with Snapfish, and other online photo services. In 2019, Shutterfly serves 10+ million customers with 26+ million orders per year, and hosts more than 50 billion photos on its photo storage platform.

Shutterfly has 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.”[5]

Lifetouch is the national leader in school photography, serving 10+ million total households. Lifetouch photographs 25+ million students in 50+ thousand schools, including 1 million new kindergartners each year. Additionally, Lifetouch Portrait Studios leads the company’s retail presence in JCPenney Portraits studios photographing newborns, special events and occasions, individuals and families; Lifetouch Church Photography connects church membership through photography products and services; and Lifetouch Preschool Photography is the nation’s preferred provider of infant and toddler photography.

In the fiscal year ending December 31, 2018, Shutterfly Inc. delivered $1.96 billion in net revenue, made up of $972 million from Shutterfly, $799 million from Lifetouch and $231 million from SBS. The company delivered $385 in adjusted EBITDA.

History[edit]

Shutterfly was founded in December 1999 as an internet-based social expression and personal publishing service.[6] Its corporate headquarters are located in Redwood City, California. The company's flagship product is its photo book line.[6]

In 2000, Shutterfly partnered with Kodak to offer their customers film developing and scanning services.[7] In 2012, Shutterfly acquired Kodak Gallery from the Eastman Kodak Company for $23.8 million.[8]

In 2001, Shutterfly secured $3 million in incremental capital which was used to expand its infrastructure.[9] 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[10] however, it did not take place until 2006. In September 2006, they completed their initial public offering and their common stock was officially listed on the NASDAQ Global Select Market under the symbol “SFLY."[11]

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.[12] 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 to 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.[13] In 2013, the company acquired This Life, a cloud-based solution for organizing and sharing photos and videos. In 2013, Shutterfly acquired BorrowLenses, a rental company for high-end photography equipment.[citation needed] In 2018, Shutterfly acquired Lifetouch for $825 million.[14]

On June 10, 2019, Apollo Global Management announced that it would acquire Shutterfly for $2.7 billion, as well as its competitor Snapfish in a separate transaction valued at around $300 million. Apollo plans to merge both companies into a single entity, with Snapfish parent company District Photo as a minority stakeholder.[15] On September 25, 2019, Apollo's acquisition of Shutterfly was completed, while the proposed merger of Shutterfly and Snapfish was still in process.[16]

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 Priestley, and Tori Spelling. Their products have also been highlighted on the Rachel Ray Show and 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. TinyPrints products are currently available in the TP Boutique as a standalone tab on shutterfly.com, or via tinyprints.com. Shutterfly also currently offers a Wedding Shop within Shutterfly.com that provides end-to-end products and inspiration for the Big Day.

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.[17] The company was acquired by Shutterfly in January 2013 and the purchase was reported to cost $25 million.[18] 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.[19] The company transitioned This Life into the all-new Shutterfly Photos platform in 2016.

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.[20] In February 2015, Shutterfly announced it would shut down Treat.[21]

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.[22]

Lifetouch: The world's largest school photography company was acquired in 2018 in an all-cash deal for $825 million.[23]

Acquisitions[edit]

  1. On September 14, 2009, Shutterfly acquired Tiny Pictures (mobile photo-sharing application centered on photo commenting).[24][25]
  2. On March 21, 2011, Shutterfly announced that it was acquiring Tiny Prints. The acquisition was completed on April 25, 2011.[26]
  3. On January 7, 2013, Shutterfly acquired ThisLife (Photo sharing).[27]
  4. On March 1, 2012, Eastman Kodak agreed to sell Kodak Gallery to Shutterfly for $23.8 million.[28]
  5. On April 30, 2013, Shutterfly acquired MyPublisher.[29]
  6. On August 29, 2013, Shutterfly acquired R and R Images.[30]
  7. On October 24, 2013, Shutterfly acquired BorrowLenses.com.[31]
  8. On November 17, 2014, Shutterfly acquired GrooveBook, a photo-printing app that appeared on Shark Tank in 2012.[32][33]
  9. On April 2, 2018, Shutterfly acquired LifeTouch for $825 Million.[34][35]
  10. On June 10th, 2019, it was announced that Shutterfly is being acquired by private equity firm Apollo Global Management in a deal valued at $2.7 billion.[36] Apollo's acquisition of Shutterfly was completed on September 25, 2019.

See also[edit]

Self-printing publishers[edit]

References[edit]

  1. ^ "Shutterfly.com Traffic, Demographics and Competitors - Alexa". Alexa Internet. Retrieved 2019-03-19.
  2. ^ "US SEC: Form 10-K Shutterfly, Inc". U.S. Securities and Exchange Commission. Retrieved February 18, 2018.
  3. ^ Ashlee Vance (January 3, 2013), "Shutterfly's Improbably Long Survival (and Success)", Bloomberg Businessweek, retrieved January 26, 2013
  4. ^ Newburger, Emma (2019-06-10). "Shutterfly strikes take-private deal with Apollo Global, valuing company at $2.7 billion". CNBC. Retrieved 2019-06-24.
  5. ^ "Shutterfly By Design". Shutterfly. Retrieved 2 October 2014.
  6. ^ a b "Shutterfly Facts". Shutterfly.com. Retrieved 5 November 2014.
  7. ^ "Shutterfly Partners with Kodak". Digital Photography Review. 27 June 2000. Retrieved 5 November 2014.
  8. ^ "Shutterfly to Snap Up Kodak Site". Wall Street Journal. 25 April 2012. Retrieved 5 November 2014.
  9. ^ "Shutterfly Secures $3 Million In Incremental Capital". 19 November 2001. Retrieved 5 November 2014.
  10. ^ "Shutterfly eyes possible IPO in 2004". 15 January 2003. Retrieved 5 November 2014.
  11. ^ "Shutterfly, Inc. Stock Quote & Summary Data". Retrieved 5 November 2014.
  12. ^ "2007 Technology Fast 500" (PDF). Retrieved 5 November 2014.
  13. ^ "Shutterfly Buys Tiny Pictures For A Tiny Price". 13 September 2009. Retrieved 5 November 2014.
  14. ^ "Shutterfly to buy photography company Lifetouch for $825 million". Retrieved 31 January 2018.
  15. ^ Newburger, Emma (2019-06-10). "Shutterfly strikes take-private deal with Apollo Global, valuing company at $2.7 billion". CNBC. Retrieved 2019-06-27.
  16. ^ "Shutterfly, Inc. and Affiliates of Certain Funds Managed by Affiliates of Apollo Global Management, Inc. Announce the Closing of the Previously Announced Transaction Amongst the Parties". BusinessWire. 25 September 2019. Retrieved 28 September 2019.
  17. ^ 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
  18. ^ Ryan Lawler (January 3, 2013), Source: Shutterfly To Acquire Slick Photo Sharing And Storage Startup ThisLife, techcrunch.com, retrieved October 5, 2014
  19. ^ Jackie Dove (August 6, 2014), Hands on: Shutterfly’s ThisLife masters photo management for busy families, thenextweb.com, retrieved October 5, 2014
  20. ^ Joanna Stern (April 16, 2012), Shutterfly’s Treat Lets You Make Highly Customized Greeting Card, ABC News, retrieved October 5, 2014
  21. ^ Sarah Perez (February 13, 2015), With Treat’s Shutdown, Shutterfly Exits The Mobile Greeting Card Business, Techcrunch, retrieved February 23, 2015
  22. ^ Ken Yeung (October 25, 2013), Shutterfly acquires BorrowLenses, adds photo and video equipment rentals to its offerings, The Next Life, retrieved October 5, 2014
  23. ^ KMSP (January 30, 2018), Shutterfly buys Minnesota-based Lifetouch Photography, Fox 9, retrieved January 31, 2018
  24. ^ "Shutterfly Buys Tiny Pictures For A Tiny Price". TechCrunch. September 13, 2009. Retrieved May 6, 2011.
  25. ^ "Shutterfly Acquires Tiny Pictures". www.businesswire.com. 14 September 2009.
  26. ^ "Shutterfly Completes Acquisition of Tiny Prints, Inc". Summit Partners. April 25, 2011.
  27. ^ "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.
  28. ^ "Kodak Gallery to be sold to Shutterfly". Channel NewsAsia. Retrieved 2 March 2012.
  29. ^ "Shutterfly Acquires MyPublisher". BusinessWire.
  30. ^ Gallagher, Billy (2013). "Shutterfly Has Acquired Photo Printing Company R And R Images". TechCrunch.
  31. ^ "Shutterfly Acquires BorrowLenses". Market Watch.
  32. ^ Perez, Sarah (17 November 2014). "Shark Tank-Backed GrooveBook Acquired By Shutterfly For $14.5 Million". TechCrunch. Retrieved 29 October 2017.
  33. ^ "Shutterfly Inc. Acquires GrooveBook". www.businesswire.com. 17 November 2014.
  34. ^ "Shutterfly Inc. Closes Transformational Acquisition of Lifetouch". www.businesswire.com. 2 April 2018.
  35. ^ Danziger, Pamela N. (November 18, 2018). "With Lifetouch Acquisition, Shutterfly Claims Leadership In Picture Memories Market". Forbes.
  36. ^ Newburger, Emma (2019-06-10). "Shutterfly strikes take-private deal with Apollo Global, valuing company at $2.7 billion". CNBC. Retrieved 2019-06-13.

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