Shutterfly, Inc. (NASDAQ: SFLY) shares rose sharply Wednesday, after the company reported a narrower-than-expected loss for its first quarter on Tuesday.
Net revenues were $199.7 million, a 4% year-over-year increase. Shutterfly Consumer net revenues totaled $152.1 million, a 5% year-over-year decrease which was consistent with the Company's expectations of a mid-single digit decline in the first quarter of 2018 as indicated on prior earnings calls.
Shutterfly brand growth was supported by strong performance in Photo Books as well as the Wedding Shop, which was launched in the third quarter of 2017, and was offset by anticipated revenue declines in the non-Shutterfly brands due to the platform consolidation and the brand shutdowns over the course of 2017.
GAAP operating loss totaled $34.1 million and net loss was $27.2 million or a $0.83 loss per share.
"The first quarter of 2018 was a good start to the year for Shutterfly, led by healthy Shutterfly organic growth and overperformance in Shutterfly Business Solutions," said Christopher North, President and Chief Executive Officer.
"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. We continue to execute against our strategic plan, with notable progress in mobile as well as pricing and promotion optimization."
Shares skyrocketed $12.29, or 15.1%, as noon approached on Wednesday, topping its 52-week high, and a far cry from a gully of $39.75.
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