In Wednesday trading, shares of Shutterfly Inc. (SFLY, Financial) jumped more than 15% after reporting a first-quarter loss of 73 cents on revenue of $199.73 million, up 4% year over year. The company managed to beat earnings estimates by 20 cents and revenue expectations by $7.67 million.
“We showed a significant improvement in profitability over the first quarter of 2017, thanks to organic Shutterfly brand growth of 10% and the benefits of last year’s platform consolidation," President and CEO Christopher North said. "We continue to execute against our strategic plan, with notable progress in mobile as well as pricing and promotion optimization. Finally, we closed the transformational acquisition of Lifetouch, and are now fully focused on achieving the cost and revenue synergies that will contribute to our target of a minimum of $450 million in combined company Adjusted EBITDA by 2020.”
Looking ahead, the company sees the acquisition of Lifetouch as a driver of the company´s overall profitability.
Snap Inc. (SNAP, Financial) declined nearly 17% on the back of the company reporting its financial results for the first quarter. The company posted a loss of 17 cents, which was in line with expectations. Revenue of $230.66 million grew 54.1% year over year, but fell short of expectations of $12.89 million.
Daily active users increased 15% to 191 million from 166 million in the prior-year quarter. Average revenue per user was $1.21, an increase of 34% year over year. Cost of revenue per user was $1.03, up 5% year over year. Further, adjusted earnings before interest, taxes, depreciation and amortization was a loss of $217.9 million, a 16% increase year over year.
Disclosure: The author holds no position in any stocks mentioned.
