Shutterfly, Inc. (NASDAQ: SFLY) is a leading Internet-based social expression and personal publishing service that enables consumers to share, print and preserve their memories by leveraging the company's technology-based platform and manufacturing processes. The company offers services for users to store, edit, and organize their digital photos. In the past fiscal year, new mobile technology, such as smartphones and iPads have given Shutterfly new channels for its products. Shutterfly's products have predominantly sold during the Holiday Season as gifts, giving the firm a risk of expecting most of its revenues during that time period.
In the past fiscal year, SFLY achieved year-over-year revenue and net income growth due to expanded mobile technology services As the mobile technology industry strengthens, and photography continues to shift to digital media, Shutterfly should expect continued growth in the 2011 fiscal year.
Shutterfly's consumer products, such as photo albums and personalized coffee mugs, are typically bought as gifts and not as everyday items. From this, the firm typically receives a majority of its annual sales during the Holiday Season (mid October to mid January). Weak Holiday Season sales can possibly cause a net loss for SFLY during the fiscal year.
The market for digital photography is large, fragmented, evolving, and intensely competitive, and the company expects competition to increase in the future. The company faces challenges from a variety of companies including: