At Last Some Very Good News for Shutterfly !

Shutterfly, the photoways-like of the US, reported their Q4 earnings last week and that relieved every one, including me !

Shutterfly went public last september but the IPO had barely been a success since then, with the stock gradually lowering from $15 the first day down to around $13 early February.

They had lost money for the first 3 quarters of fiscal '06, growth was in the 30% area only (vs 45% for Netflix or 70% for VistaPrint)...and then came the Q4 report :

- A 60% revenue growth year-over-year, far greater than during previous quarters, shows how its model has evolved into a true gift model, with consumers massively buying cards, calendars and books to make presents during the greetings season. All told, Q4 revenues represent 53% of yearly sales ($123M).

- Very high profitability that more than compensates for the first 3 quarters losses. Indeed, a $22.9M EBITDA out of $65.7M is rather nice !

Shutterfly eventually proves that the online printing segment, despite a strong price pressure and commoditization of basic 4x6 porints, can be a profitable one : with a premium brand which attracts customers, a true customer-centric approach (at every level) which ensures they are satisfied, and exciting innovations that delight them and increase margins, it does pay off !

I'm now out of Photoways to build up a new Group based on an innovative approach in e-commerce (the Ushuaia Project), and I'm glad that my remaining shares, which I mostly want to sell along with my partner Martin Genot, ex Photoways COO, have a very significant value, thanks in part to Shutterfly !

Comments

[J.]

Again, I don't understand why Photoways doesn't launch a product/service like Moo.com .

[Michel de Guilhermier]

So, what is Moo doing exactly ? (by the way, we share one common shareholder, index)

[J.]

http://the-accelerator.blogspot.com/
3rd and 8th posts.

[J.]

Many companies share one common investor (calPERS etc), so what?

[Michel de Guilhermier]

so nothing !

[J.]

ok, I understand...nothing;)