Buoyed by strong sales to businesses and a big increase in mobile shopping, Shutterfly Inc. scored a 15% jump in sales in 2015.
The online retailer of personalized products and photo books, No. 50 in the Internet Retailer 2015 Top 500 Guide, said sales to businesses—or what it calls enterprise revenue—grew 94% to $98.0 million from $50.6 million in 2014. Enterprise sales represented 9.3% of total 2015 revenue.
Mobile revenue grew 38% year over year in 2015 and the $65.8 million in mobile sales in the fourth quarter represented 12% of Shutterfly’s sales for the quarter, up from 10% in the same period last year. The retailer introduced a universal mobile iOS app (a single app that is optimized for iPhone, iPad touch, and iPad devices) in Q4 and made several new products available for purchase through that app, including customizable playing cards, fleece blankets and metal ornaments.
Also during Q4, Shutterfly kicked off a multiyear project to unite its three online retail brands—Shutterfly, Tiny Prints and Wedding Paper Divas—and various mobile properties onto a single e-commerce platform, which the merchant is calling Shutterfly 3.0.
“By modernizing our technology platform, focusing on mobile and introducing new customer-friendly features, we aim to address the friction points caused by multiple devices, fragmented storage options, and limited organization and search capabilities for interacting with photos and videos,” CEO Jeffrey Housenbold told analysts on a conference call. “The 3.0 initiative also includes delivering a better overall user experience with more products and innovations to our customers.”
In December, the merchant announced Housenbold would step down as CEO on Feb. 19. Chairman Philip Marineau will step in as interim CEO, Shutterfly says.
For the fourth quarter ended Dec. 31, Shutterfly reported:
- Online sales were $548.1 million, a 13.4% increase from $483.3 million in the year-ago period.
- Sales to consumers reached $503.3 million, up 9% from $462.9 million.
- B2B sales were $44.7 million, up 119.1% from $20.4 million.
- Total unique customers grew to 6.1 million, up 8.2% from 5.7 million.
- The number of orders increased to 10.3 million, up 7.2% from 9.6 million.
- Average order value for the quarter was $48.96, up 1.5% up from $48.26.
- Net income of $131.1 million, up 31.5% from $99.7 million.
For the year ended Dec. 31, Shutterfly also reported:
- Online sales were $1.06 billion, up 15.0% from $921.6 million in 2014. For the first time the company, which sells only online, surpassed $1 billion in revenue.
- Sales to consumers totaled $961.4 million, up 10% versus $871.0 million.
- B2B sales totaled $98.0 million, up 93.6% versus $50.6 million.
- The number of orders increased to 25.8 million, up 19% from 21.8 million.
- The number of customers was 9.8 million, a 6% year-over-year increase from 9.2 million.
- Average order value in 2015 was $37.26, a 7% decrease from $40.00.
- Net loss of $800,000 compared with a net loss of $7.9 million.