Shutterfly (SFLY) Tops Q1 EPS by 1c, Offers Q2 and FY Guidance

Shutterfly (NASDAQ: SFLY) reported Q1 EPS of ($0.98), $0.01 better than the analyst estimate of ($0.99). Revenue for the quarter came in at $192 million versus the consensus estimate of $187.35 million.

First Quarter 2017 Financial Highlights

● Net revenues totaled $192.0 million, a 6% year-over-year increase.

● Consumer net revenues totaled $160.7 million, a 3% year-over-year increase.

● Shutterfly Business Solutions net revenues totaled $31.3 million, a 19% year-over-year increase.

● Operating loss totaled $49.8 million. Excluding $9.0 million of restructuring charges, operating loss totaled $40.8 million.

● Adjusted EBITDA loss was $7.2 million. Excluding $5.3 million of restructuring charges, adjusted EBITDA loss was $1.9 million.

● Net loss was $33.2 million or $0.98 per share. Excluding $5.0 million of after tax restructuring charges, net loss was $28.2 million or $0.84 per share.

GUIDANCE:

Shutterfly sees Q2 2017 EPS of ($0.55)-($0.50), versus the consensus of ($0.49). Shutterfly sees Q2 2017 revenue of $205-212 million, versus the consensus of $209.87 million.

Business Outlook [1]

Second Quarter 2017:

● Net revenues to range from $205.0 million to $212.0 million.

● Gross profit margin to range from 43.0% to 43.5% of net revenues.

● Operating loss to range from $24.5 million to $21.0 million.

● Effective tax rate of 38.5%.

● Net loss per share to range from $0.55 to $0.50.

● Weighted average shares of approximately 33.6 million.

● Adjusted EBITDA to range from $14.0 million to $17.5 million.

Full Year 2017:

● Net revenues to range from $1.135 billion to $1.165 billion.[2]

● Gross profit margin to range from 49.0% to 50.0% of net revenues.

● Operating income to range from $48.5 million to $68.5 million.

● Effective tax rate of 37.5%.

● Net income per share to range from $0.45 to $0.80.

● Weighted average shares of approximately 34.5 million.

● Adjusted EBITDA to range from $210.0 million to $230.0 million.

● Capital expenditures to be approximately $75.0 million.

[1] Excludes full year restructuring charges ranging from $15 million to $20 million as well as any costs related to refinancing our convertible debt.

[2] In 2017, net revenues from SBS segment to increase 20% over 2016.

For earnings history and earnings-related data on Shutterfly (SFLY) click here.

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