The feature is currently being tested in several of Drizly’s markets. It is expected to launch early next year.
Shutterfly, a specialty web retailer that offers digital photo prints and photo-based merchandise to over 1.2 million customers, has priced its initial public offering at $15 per share on NASDAQ and expects to receive net proceeds of $80.9 million.
Shutterfly, a specialty web retailer that offers digital photo prints and photo-based merchandise to over 1.2 million customers, has priced its initial public offering and is now trading on NASDAQ.
The company expects to receive net proceeds (including underwriting discounts but before other expenses) of approximately $80.9 million from the offering and will use the proceeds for general corporate purposes. All 5,800,000 shares sold were offered by Shutterfly. In addition, the underwriters have been granted an option to purchase up to an additional 870,000 shares from selling stockholders within the next 30 days. Shutterfly began trading as a public company on Sept. 29.
J. P. Morgan Securities Inc. acted as sole booking manager for the offering with Piper Jaffray & Co. and Jefferies & Company, Inc. acting as co-managers. For the six months ending in June, Shutterfly reported a net loss of $3.6 million on revenue of $36.5 million compared to a net loss of $1.3 million on revenue of $27.2 million for the first six months of 2005. For 2005, Shutterfly had net income of $28.9 million on revenue of $83.9 million, compared with net income of $3.7 million on revenue of $54.5 million in 2004. Net income for 2005 included an income tax benefit of approximately $24.1 million, the company says.
Since launching in 1999, Shutterfly has fulfilled more than 12 million orders, sold approximately 370 million prints and stored approximately 1 billion photos in its image archives. Shutterfly competes in a niche against digital photo service companies such as Kodak EasyShare Gallery (formerly known as Ofoto), Snapfish, a service of Hewlett-Packard, and Sony ImageStation. Large retail chains and wholesale clubs, including Wal-Mart, Costco, CVS, Walgreen and others, also offer in-store pick-up from Internet orders. Shutterfly’s core customers are 84% female, age 25-44, mothers of young families and have annual household income greater than $70,000.
With the proceeds, the company expects to spend heavily on new e-commerce and information technology systems. “We expect to have ongoing capital expenditure requirements to support our growing web site infrastructure and to meet production and manufacturing requirements,” the company says in its recently updated S-1 filing. “We expect capital expenditures to be between $30 million and $35 million in the second half of 2006 and through 2007.”