Shutterfly (SFLY) calls itself an Internet-based social expression and personal publishing service. In reality, it is a simple online photo storage, swapping, and printing service.
No matter what it is, the company is not doing very well. Its shares fell over 17% today after it announced Q1 earnings. The stock fell through its 52-week low and traded down to $12.65. The stock has been as high as $37 during the period.
Shutterfly is not growing like a Web 2.0 company. Revenue rose 29% to $34,3 million. The company forecast Q2 revenue to be up 17% to 27% to a revenue range of $35 to $38 million. In other words, no growth quarter-over-previous-quarter.
Shutterfly also displayed the uncanny ability to lose more money that it did last year. The company’s net loss went to $3.6 million from $1.1 million in the quarter a year ago.
A look at the company’s P&L shows another source of the trouble. Shutterfly is spending way too much money. Expenses rose from $17 million in Q1 last year to $28.4 million in the last quarter.
If the company is not going to grow very fast, at least it could control expenditures.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
