Shutterfly Inc. (SFLY, Financial) filed Quarterly Report for the period ended 2010-03-31.
Shutterfly Inc. has a market cap of $610.96 million; its shares were traded at around $23.58 with a P/E ratio of 124.11 and P/S ratio of 2.48. SFLY is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Our technology and development expense increased $1.2 million, or 11%, for the three months ended March 31, 2010, as compared to the same period in 2009. As a percentage of revenue, this expense decreased from 31% to 27% for the same comparable period. The overall increase in technology and development expense was primarily attributable to an increase of $0.9 million related to personnel and related costs for employees and consultants involved with website development and website infrastructure support teams. Professional and outside service fees also increased by $0.3 million and stock-based compensation increased by $0.2 million. However, these factors were partially offset by a decrease in depreciation expense of $0.2 million. For the three months ended March 31, 2010, we capitalized $0.9 million in eligible costs, which includes $0.1 million of stock based compensation, associated with software developed or obtained for internal use, compared to $1.3 million in the same period in the prior year.
Our sales and marketing expense increased $2.4 million, or 30%, for the three months ended March 31, 2010, as compared to the same period in 2009. As a percentage of net revenues, total sales and marketing expense remained flat at 22%. The increase in sales and marketing expense was primarily due to an increase of $1.4 million related to expanded online advertising, direct response and partner marketing campaigns. The increase is also attributable to a $0.6 million increase in personnel and related costs associated with the expansion of our internal marketing team and an increase of $0.4 million in stock based compensation.
Our general and administrative expense increased $1.9 million, or 27%, for the three months ended March 31, 2010 as compared to the same period in 2009. As a percentage of revenue, this expense remained flat at 19%. The increase was attributable primarily to $1.0 million of stock based compensation costs, $0.8 million of professional fees mainly related to legal and accounting, and $0.2 million for personnel related costs. In the three months ended March 31, 2010, we also incurred a $0.3 million increase related to credit card fees which was driven by our increase in consumer product revenue as compared to the same period in the prior year. This increase was partially offset by the final installment payment from a cross-licensing agreement which was received in the three months ended March 31, 2010.
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Shutterfly Inc. has a market cap of $610.96 million; its shares were traded at around $23.58 with a P/E ratio of 124.11 and P/S ratio of 2.48. SFLY is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net revenues increased $9.7 million, or 27%, for the three months ended March 31, 2010, as compared to the same period in 2009. Revenue growth was attributable to an increase in personalized products and services revenues and revenue from our commercial print initiative, offset by a decrease in print revenue. PPS revenues increased $9.2 million, or 43%, to $30.5 million for the three months ended March 31, 2010 as compared to the same period in 2009. The increase in PPS is primarily a result of increased sales of photo books and stationery cards. PPS represented 67% of revenue compared to 59% in the same period in 2009. Revenue from our commercial print initiative totaled $1.5 million, and represented 3% of our total net revenues. Print revenue decreased $0.3 million, or 2%, to $13.7 million for the three months ended March 31, 2010, as compared to the same period in 2009. Print revenue represented 30% of revenue compared to 39% in the same period in 2009. The decrease in overall print revenue is primarily due to a lower average sales price for 4x6 prints offset partially by continued stable growth in unit volumes. In the first quarter of 2010, 4x6 print revenues represented 17% of total net revenues versus 23% in the first quarter of 2009.Our technology and development expense increased $1.2 million, or 11%, for the three months ended March 31, 2010, as compared to the same period in 2009. As a percentage of revenue, this expense decreased from 31% to 27% for the same comparable period. The overall increase in technology and development expense was primarily attributable to an increase of $0.9 million related to personnel and related costs for employees and consultants involved with website development and website infrastructure support teams. Professional and outside service fees also increased by $0.3 million and stock-based compensation increased by $0.2 million. However, these factors were partially offset by a decrease in depreciation expense of $0.2 million. For the three months ended March 31, 2010, we capitalized $0.9 million in eligible costs, which includes $0.1 million of stock based compensation, associated with software developed or obtained for internal use, compared to $1.3 million in the same period in the prior year.
Our sales and marketing expense increased $2.4 million, or 30%, for the three months ended March 31, 2010, as compared to the same period in 2009. As a percentage of net revenues, total sales and marketing expense remained flat at 22%. The increase in sales and marketing expense was primarily due to an increase of $1.4 million related to expanded online advertising, direct response and partner marketing campaigns. The increase is also attributable to a $0.6 million increase in personnel and related costs associated with the expansion of our internal marketing team and an increase of $0.4 million in stock based compensation.
Our general and administrative expense increased $1.9 million, or 27%, for the three months ended March 31, 2010 as compared to the same period in 2009. As a percentage of revenue, this expense remained flat at 19%. The increase was attributable primarily to $1.0 million of stock based compensation costs, $0.8 million of professional fees mainly related to legal and accounting, and $0.2 million for personnel related costs. In the three months ended March 31, 2010, we also incurred a $0.3 million increase related to credit card fees which was driven by our increase in consumer product revenue as compared to the same period in the prior year. This increase was partially offset by the final installment payment from a cross-licensing agreement which was received in the three months ended March 31, 2010.
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