Moms also love memories.
Our basement is filled with bin upon bin of old photos from every family gathering, vacation, holiday, first day of school and extracurricular activity you can think of. You want to organize those, you go to Michaels or a craft shop.
But recent photos are on hard drives and memory cards — and that’s where Shutterfly (NASDAQ:SFLY) comes in. The company allows you to make photo books — either allowing SFLY to take the controls, or adding a bit more of your own creative input — and offers just about any other product you can match with a picture, from frames to mugs to wall art. (However, I draw the line at a pillow with someone’s face on it.)
SFLY isn’t for the weak of stomach, though. The company has turned a decent profit for years, but all of that comes from its Q4, which makes up for three quarters of red ink (and then some) like clockwork. For instance, Shutterfly in 2012 made 61 cents per share despite losses of 29, 27 and 29 cents in Q1, Q2 and Q3, respectively. That’s because the all-important holiday Q4 brought in $1.40.
Even then, SFLY this year is expected to only earn half of what it did in 2012, but the company has been busy on the M&A front in the past few quarters, snapping up TinyPrints and Penguin Digital, among others … and those new branches should accelerate growth by about 60% in FY2014. In the meantime, investors can just hope Mother’s Day helps pare down what’s expected to be a 56-cent loss for Q2.