Shutterfly

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Shutterfly, Inc.
Shutterfly, Inc. logo.svg
Type of businessPublic
Traded asNASDAQSFLY
S&P 600 Component
Founded1999; 19 years ago (1999)
HeadquartersRedwood City, California
Key peopleWilliam Lansing
(Chairman of the Board)
Christopher North
(President & CEO)
Mike Pope
(Senior VP & CFO)
IndustryPhotograph-derived manufacture; photo sharing
RevenueIncrease US$ 1.19 billion (2017)
Operating incomeIncrease US$ 61.60 million (2017)
Net incomeIncrease US$ 30.09 million (2017)
Total assetsIncrease US$ 1.53 billion (2017)
Total equityDecrease US$ 550.72 million (2017)
Employees1,934 (2016)
Websitewww.Shutterfly.com
Alexa rankPositive decrease 1,262 (October 2016)
[1][2]
Logo of the image publishing service

Shutterfly, Inc. is an American Internet-based company based in Redwood City, California specializing in image publishing service. Shutterfly's flagship product is its photo book line. The company was founded in 1999 and is currently led by Christopher North. The company went public in 2006.[3] The customer base is heavily skewed toward women, who accounted for 80% of customers as reported in 2013.[3]

Shutterfly's revenue derives from "turning digital snapshots into tangible things".[3]

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, an online photo service.

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.[4] 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.[5]

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.”[6]

Its 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.[7]

History[edit]

Shutterfly was founded in December 1999 as an internet-based social expression and personal publishing service.[8] Its corporate headquarters are located in Redwood City, California. The company's flagship product is its photo book line.[8]

In 2000, Shutterfly partnered with Kodak to offer their customers film developing and scanning services.[9] In 2012, Shutterfly acquired Kodak Gallery from the Eastman Kodak Company for $23.8 million.[10]

In 2001, Shutterfly secured $3 million in incremental capital which was used to expand its infrastructure.[11] 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[12] 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."[13]

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.[14] 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.[15] 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.

In 2018, the company acquired privately held Eden Prairie, Minnesota-based Lifetouch, the largest national photography company, in an $825 million all-cash deal.[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

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]

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. ThisLife (Photo sharing) January 7, 2013[24]
  2. Tiny Prints, Inc. (Personalized card and stationery seller) March 21, 2011[25]
  3. Tiny Pictures (mobile photo-sharing application centered on photo commenting) September 2009[26]
  4. 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.[25]
  5. On March 1, 2012, Eastman Kodak agreed to sell Kodak Gallery to Shutterfly for $23.8 million.[27]
  6. May 2013 Shutterfly acquired MyPublisher [28]
  7. On October 24, 2013, Shutterfly acquired BorrowLenses.com.[29]
  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.[30]
  9. In November 2014, Shutterfly purchased GrooveBook, a photo-printing app that appeared on Shark Tank in 2012.[31]

See also[edit]

References[edit]

  1. ^ "Shutterfly.com Site Info". Alexa Internet. Retrieved 2016-10-07.
  2. ^ "US SEC: Form 10-K Shutterfly, Inc". U.S. Securities and Exchange Commission. Retrieved February 18, 2018.
  3. ^ a b c Ashlee Vance (January 3, 2013), "Shutterfly's Improbably Long Survival (and Success)", Bloomberg Businessweek, businessweek.com, retrieved January 26, 2013
  4. ^ "Is Shutterfly Poised to Grow with Continued Innovations?". Yahoo Finance. 25 August 2014. Retrieved 22 September 2014.
  5. ^ "Shutterfly (SFLY) Q4 2013 Earnings Call". Nasdaq. 5 February 2014. Retrieved 25 August 2014.
  6. ^ "Shutterfly By Design". Shutterfly. Retrieved 2 October 2014.
  7. ^ "Shutterfly Brings Its Online Boutique Tiny Prints To The iPad". Techcrunch.com. 5 September 2014. Retrieved 22 September 2014.
  8. ^ a b "Shutterfly Facts". Shutterfly.com. Retrieved 5 November 2014.
  9. ^ "Shutterfly Partners with Kodak". Digital Photography Review. 27 June 2000. Retrieved 5 November 2014.
  10. ^ "Shutterfly to Snap Up Kodak Site". Wall Street Journal. 25 April 2012. Retrieved 5 November 2014.
  11. ^ "Shutterfly Secures $3 Million In Incremental Capital". 19 November 2001. Retrieved 5 November 2014.
  12. ^ "Shutterfly eyes possible IPO in 2004". 15 January 2003. Retrieved 5 November 2014.
  13. ^ "Shutterfly, Inc. Stock Quote & Summary Data". Retrieved 5 November 2014.
  14. ^ "2007 Technology Fast 500" (PDF). Retrieved 5 November 2014.
  15. ^ "Shutterfly Buys Tiny Pictures For A Tiny Price". 13 September 2009. Retrieved 5 November 2014.
  16. ^ "Shutterfly to buy photography company Lifetouch for $825 million". Retrieved 31 January 2018.
  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 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 Associated Press (March 21, 2011). "Shutterfly to acquire Tiny Prints for over $300M". Bloomberg Businessweek. Retrieved May 4, 2011.
  26. ^ "Shutterfly Buys Tiny Pictures For A Tiny Price". TechCrunch. September 13, 2009. Retrieved May 6, 2011.
  27. ^ "Kodak Gallery to be sold to Shutterfly". Channel NewsAsia. Retrieved 2 March 2012.
  28. ^ "Shutterfly Acquires MyPublisher". BusinessWire.
  29. ^ "Shutterfly Acquires BorrowLenses". Market Watch.
  30. ^ "Silver Lake in the lead to acquire Shutterfly -sources". Reuters. 22 September 2014. Retrieved 22 September 2014.
  31. ^ Perez, Sarah (17 November 2014). "Shark Tank-Backed GrooveBook Acquired By Shutterfly For $14.5 Million". TechCrunch. Retrieved 29 October 2017.

External links[edit]