Shutterfly is an American Internet-based image publishing service based in Redwood City, California. Shutterfly’s flagship product is its photo book line. The company was founded in 1999 and is currently led by Christopher North. The company went public in 2006. The customer base is heavily skewed toward women, who accounted for 80% of customers as reported in 2013.
Shutterfly’s revenue derives from “turning digital snapshots into tangible things”.
Shutterfly enables users to create personalized photo gifts (including photos and text) such as Samsung Galaxy and iPhone cases, photo books, wall art, and home décor. It competes with Snapfish, an online photo service.
In August 2014, the total number of customers was 2.6 million, reflecting an increase of 13% from the prior-year quarter. Total orders generated were 4.2 million, up 16% year over year. Average order value was $36.14, up 3% year over year driven by promotional strategies and integrated marketing campaigns adopted by the company. Their Q4 2013 earnings grew 17% year-over-year to $410.8 million and resulted in a 12% year-over-year increase in adjusted EBITDA despite a shortened holiday shopping season.
Shutterfly also partnered with Brit Morin, Michelle Workman and Olivia Palermo to showcase how to use their different products within a New York townhouse to create unique design opportunities. The project is called “Shutterfly by Design.”
Its company Tiny Prints has launched “Tiny Prints for iPad” in September 2014; a mobile version of their online stationery boutique the company acquired in 2011.
Shutterfly was founded in December 1999 as an internet-based social expression and personal publishing service. Its corporate headquarters are located in Redwood City, California. The company’s flagship product is its photo book line.
In 2000, Shutterfly partnered with Kodak to offer their customers film developing and scanning services. In 2012, the Shutterfly acquired Kodak Gallery from Eastman Kodak Co. for $23.8 million.
In 2001, Shutterfly secured $3 million in incremental capital which was used to expand its infrastructure. The funds includ e an equipment financing line from Silicon Valley bank. In 2002, the company exceeded its expected earnings and began considering an IPO for 2004 however, it did not take place until 2006. In September 2006, the completed their initial public offering and their common stock was officially listed on the NASDAQ Global Select Market under the symbol “SFLY.”
In 2007 Shutterfly was recognized by Deloitte & Touche as Fast 50 Technology Company for Silicon Valley and a Fast 500 Company for North America. Shutterfly ranked #20 in the Internet, Media & Entertainment and Communication category on the Fast 50 list and ranked #241 on the Fast 500 list. The annual rankings identify technology, media, telecommunications and life sciences companies that have shown the fastest growth over the past year. Rankings are based on percentage of fiscal year revenue growth over five years, from 2002-2006. Shutterfly grew 671 percent during this period.
In 2009, Shutterfly began its acquisition plans with the purchase of Tiny Pictures, a mobile photo-sharing application centered on photo commenting. This is the first of several acquisitions the company made over the next few years. In 2011, Shutterfly acquired Tiny Prints, Inc. and Wedding Paper Divas. In 2013, the company acquired This Life, a cloud-based solution for organizing and sharing photos and videos. Most recently, Shutterfly acquired BorrowLenses, a rental company for high-end photography equipment. In 2014 it opened a new manufacturing facility in Shakopee, Minnesota.