Shutterfly Inc. more than doubled sales to businesses in its first quarter ended March 31.

The online provider of photographic product and services to businesses and consumers still earns most of its revenue through retail sales, which accounted for more than 85% of total Q1 sales of $181.7 million. But while Q1 sales increased a relatively modest 13.6% year over year, business-to-business sales surged $134.8% to $26.3 million from $11.2 million.

Shutterfly sells marketing materials to businesses as well as photography products and services to consumers through Shuttefly.com and other sites, including: ThisLife.com, WeddingPaperDivas.com and TinyPrints.com. It also operates a photography equipment rental site at BorrowLenses.com.

A stepped-up focus on business customers in recent years has resulted in sharp increases in B2B revenue—what the company refers to as “enterprise revenue”—generated by Shutterfly Business Solutions, or SBS. In Q1, the company gained a new Fortune 250 customer, interim CEO Philip Marineau said in a Q1 earnings call with stock analysts. He declined to name the client.

During the call, Marineau also mentioned the company was making progress developing Shutterfly 3.0, an Internet-based data management system customized to serve six business verticals—which may include financial services, insurance, healthcare, retail, education, and leisure and entertainment, former CEO Jeff Housenbold told investors in a Q4 2015 call—that will enable these business clients to gather data on everything from creative to pre-press to post-press printing. This will help business clients segment and analyze data on customers’ past buying patterns, responses to marketing campaigns and other information to manage marketing campaigns, Marineau said.

ThisLife’s web and mobile photo storage platform will be integrated into Shutterfly by the fourth quarter as part of this initiative, Marineau said. In Q1, ThisLife stopped allowing new customers to register on its web and mobile sites and the company began migrating ThisLife customers to the Shutterfly brand. New features—some from ThisLife—added to Shutterfly’s online and mobile platforms in Q1 include a user interface that allows customers to organize photos chronologically or into separate albums, as well as search for photos by people, places or other keyword. Users can now also tag people in their photos.

20% of the Shutterfly brand revenue was processed through mobile devices in Q1, and a record 1 million users downloaded the Shutterfly app in the first quarter, Michael Pope, chief financial officer, said in a call with analysts. Helping to drive mobile growth was a marketing campaign that included unlimited free prints, Marineau said. The company plans to add cards and stationery products to the mobile app by Q4, as well as improve some of the functionality related to photo books, he said.

Across its brand portfolio, Shutterfly processed 5.5 million orders in Q1 “with nearly double-digit growth in our Shutterfly flagship brand,” Pope said. “Weaker revenue from our Tiny Prints and Wedding Paper Divas brands partially offset this strength in Shutterfly.”

Shutterfly in mid-March appointed Christopher North, the head of Amazon.com’s operations in the United Kingdom, as its new president and CEO effective May 31. North, who will also serve on Shutterfly’s board, will succeed interim CEO Marineau, who has served in the top job since the February departure of former CEO Jeffrey Housenbold.

Shutterfly is No. 152 in the B2B E-Commerce 300, and No. 50 in the Internet Retailer Top 500 Guide.

For the first quarter ended March 31, Shutterfly also reported:

• Total sales were $181.7 million, a 13.6% increase from $160.0 million in the year-ago period;
• Sales to consumers reached $155.4 million, up 4.4% from $148.8 million;
• Total unique customers grew to 3.3 million, up 3.1% from 3.2 million;
• The number of orders increased to 5.5 million, up 5.8% from 5.2 million;
• Average order value for the quarter was $28.04, down 2.8% from $28.86;
• Net loss of $29.4 million, compared to a net loss of $45.1 million.

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