The Rise and Fall of Shutterfly Stock
There are a lot of moving parts to still photography, and this week finds Shutterfly(NASDAQ:SFLY) posing for its exit-strategy portrait. The provider of digital and traditional photofinishing products and services announced on Monday afternoon that it has accepted a buyout offer from funds managed by affiliates of Apollo Global Management(NYSE:APO).
Wall Street may not seem impressed at first glance. Apollo will be cashing out Shutterfly investors at $51 a share, a mere 1.5% premium to where the shares closed on Monday. However, if we draw the starting line seven weeks earlier -- to April 23, when media reports initially surfaced detailing Apollo's interest in Shutterfly -- we would be looking at a more reasonable 31% premium to the buyout offer.
But if we grab that same stick of chalk and arbitrarily choose June 5 of last year -- the day when Shutterfly stock peaked as it briefly cracked the $100 ceiling -- we see a company cashing out its investors at a little more than half of where it was a year ago. This doesn't mean that the private-equity giant is taking Shutterfly investors for a ride here. If anyone else was willing to pay more than $51 a share for Shutterfly, that bidding card would've been raised by now. This is just a sad tale of Shutterfly biting off more than it could chew in an earlier rally that was ultimately too good to be true.
Image source: Shutterfly.
Shutterfly has been a pioneer in digital photo storage, prints processing, and image-customized merchandise for two decades, so it seemed odd at first when it announced in early 2018 that it was acquiring Lifetouch. However, it didn't take long for investors to reframe the purchase. Lifetouch is the leading provider of traditional school photos and related photography services, but every year it adds millions of new children -- or, more specifically, their parents -- to its rolls as it snaps yearbook sports pics or welcomes graduating seniors at its off-site studios for their cap-and-gown portraits.
Shutterfly was already getting a good deal for Lifetouch, paying just a third of its enterprise value for a purchase that would nearly double its annual revenue while contributing positive adjusted EBITDA. Investors got excited over the prospects of what Shutterfly could do as it pushed its new media products to Lifetouch customers. Lifetouch takes photos of 25 million students a year, covering 10 million households. A million new families enter the system as their firstborns hit kindergarten. The stock would go on to nearly double in the first four months after the deal was announced, but reality wasn't as kind.
By the end of 2018, Shutterfly was seeing weakness in its flagship consumer digital business, and the promised synergies were slow to develop. Shutterfly's board opened itself up to explore strategic alternatives, a move that eventually led to Apollo's winning bid this week at what is ultimately an uninspiring price.
Shutterfly investors will get roughly $1.74 billion in a deal that's valued at $2.7 billion after calculating its net debt position. The $51-a-share exit price is actually slightly less than where the stock was the day before the Lifetouch deal was announced, making this a round-trip to nowhere for investors over the past 16 months.
This won't be the end for Shutterfly. Apollo wouldn't be shelling out $2.7 billion to get this deal done -- and lumping Shutterfly together with Snapfish -- if it didn't think that it will be worth more in the future. However, for public investors, this is the end of the line, and it's not a very pretty picture.
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Shutterfly Stock Price History + Charts (SFLY)
The following presents a detailed Shutterfly stock price history for your review. To help provide a sense of the short to long-term trend, included is an interactive Shutterfly stock chart which you can easily adjust to the time frame of your choosing (e.g. using the scroll bar or pinch and zoom on a touch screen). Also, 20 years of Shutterfly stock price history is presented in the form of a seasonality chart (e.g. average year chart). This can prove rather insightful due to the fact that some stocks/sectors tend to perform especially well during certain periods of the year. In addition, this page includes various stock data for Shutterfly, such as the latest Shutterfly stock price history, total returns, stock price today in addition to fundamental data such as earnings and dividends as well as valuation measures such as dividend yield and PE ratio.
FYI — The stock page of any stock can be accessed quickly by simply typing in the company name or stock symbol in the search bar at the top right of any page. Also, the included stock price chart is a Heikin-Ashi chart (a variation of a candlestick chart) that is helpful in determining the current trend of a stock. Each Dogs of the Dow stock page — as well as the entire site — is designed to work on mobile so you can get the latest whenever and wherever you are.
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American photography, photography products, and image sharing company
For the computer application, see Shutterfly Studio.
Not to be confused with Fluttershy.
Shutterfly, LLC. is an American photography, photography products, and image sharing company, headquartered in Redwood City, California. Founded in 1999, the company is currently led by Hilary Schneider as the President and CEO, and owned by Apollo Global Management (majority) and District Photo (minority). The company went public in 2006, and returned to private ownership in 2019.
Shutterfly was founded in December 1999 as an internet-based social expression and personal publishing service. Its corporate headquarters are located in Redwood City, California. The company's flagship product is its photo book line.
In 2000, Shutterfly partnered with Kodak to offer their customers film developing and scanning services. In 2012, Shutterfly acquired Kodak Gallery from the Eastman Kodak Company for $23.8 million.
In 2001, Shutterfly secured $3 million in incremental capital which was used to expand its infrastructure. The funds include an equipment financing line from Silicon Valley bank. In 2002, the company exceeded its expected earnings and began considering an IPO for 2004 however, it did not take place until 2006. In September 2006, they completed their initial public offering and their common stock was officially listed on the NASDAQ Global Select Market under the symbol “SFLY."
In 2007 Shutterfly was recognized by Deloitte & Touche as Fast 50 Technology Company for Silicon Valley and a Fast 500 Company for North America. Shutterfly ranked #20 in the Internet, Media & Entertainment and Communication category on the Fast 50 list and ranked #241 on the Fast 500 list. The annual rankings identify technology, media, telecommunications and life sciences companies that have shown the fastest growth over the past year. Rankings are based on percentage of fiscal year revenue growth over five years, from 2002 to 2006. Shutterfly grew 671 percent during this period.
In 2009, Shutterfly began its acquisition plans with the purchase of Tiny Pictures, a mobile photo-sharing application centered on photo commenting. This is the first of several acquisitions the company made over the next few years. In 2011, Shutterfly acquired Tiny Prints, Inc. and Wedding Paper Divas. In 2012, the company acquired Penguin Digital, the makers of the MoPho app which they transitioned into the Shutterfly Mobile App. In 2013, the company acquired This Life, a cloud-based solution for organizing and sharing photos and videos. In 2013, Shutterfly acquired BorrowLenses, a rental company for high-end photography equipment. In 2014, Shutterfly acquired mobile app company Groovebook for $14.5 Million which had secured a deal on Shark Tank eleven months prior. In 2018, Shutterfly acquired Lifetouch for $825 million.
On June 10, 2019, Apollo Global Management announced that it would acquire Shutterfly for $2.7 billion, as well as its competitor Snapfish in a separate transaction valued at around $300 million. Apollo plans to merge both companies into a single entity, with Snapfish parent company District Photo as a minority stakeholder. On September 25, 2019, Apollo's acquisition of Shutterfly was completed, while the proposed merger of Shutterfly and Snapfish was still in process. The merger of Shutterfly and Snapfish was completed on January 8, 2020.
Products and services
Shutterfly enables users to create personalized photo gifts (including photos and text) such as smartphone cases, photo books, wall art, and home décor. Through its Lifetouch division, it also provides portraiture services. It competes with Snapfish and other online photo services. As of 2019, Shutterfly serves 10+ million customers with 26+ million orders per year, and hosts more than 50 billion photos on its photo storage platform.
Tiny Prints and Wedding Paper Divas: In March 2011, Shutterfly acquired personalized card and stationery seller Tiny Prints, Inc. and partner-company Wedding Paper Divas for $141 million in cash and 3.9 million shares. The total transaction was valued at $333 million. The company has received multiple celebrity endorsements including Kelly Ripa, Jason Priestley, and Tori Spelling. Their products have also been highlighted on the Rachel Ray Show and InStyle Magazine. Wedding Paper Divas has been highlighted on ABC News. In September 2014, the company launched “Tiny Prints for iPad” in September 2014; a mobile version of their online stationery boutique the company acquired in 2011. TinyPrints products are currently available in the TP Boutique as a standalone tab on shutterfly.com, or via tinyprints.com. Shutterfly also currently offers a Wedding Shop within Shutterfly.com that provides end-to-end products and inspiration for the Big Day.
This Life: In 2013, Shutterfly acquired ThisLife, a cloud-based solution for organizing and sharing photos and videos. ThisLife initially launched in 2010 by husband-and-wife team Matt and Andrea Johnson. ThisLife has raised a $2.75 million seed round led by Madrona Venture Group, with Madrona Managing Director Greg Gottesman joining its board. The company was acquired by Shutterfly in January 2013 and the purchase was reported to cost $25 million. ThisLife lets you pull in all your photos from different sources such as social networks, mobile devices, personal computer, or stored online into one place. The company transitioned This Life into the all-new Shutterfly Photos platform in 2016.
Treat: In April 2012, Shutterfly launched Treat, a service to create completely customized greeting cards. Unlike other divisions of Shutterfly that were acquired, Treat was developed internally. The site has 4,500 fully customizable card designs and has a partnership with Hallmark. In February 2015, Shutterfly announced it would shut down Treat.
BorrowLenses: Mark Gurevich and Max Shevyakov launched BorrowLenses in 2007 as a way for individuals to rent high-level camera equipment and avoid making an expensive purchase. The company delivers to all 50 states and offers over 30 “pick-up” locations at local camera shops in 12 different states. The company has two headquarters in San Carlos, California and Waltham, Massachusetts. In October 2013, Shutterfly acquired BorrowLenses. Terms of the deal weren't released.
Lifetouch: The world's largest school photography company was acquired in 2018 in an all-cash deal for $825 million.
Snapfish: A web-based photo sharing and photo printing service that was acquired on January 8, 2020.
- ^"US SEC: Form 10-K Shutterfly, Inc". U.S. Securities and Exchange Commission. Retrieved February 18, 2018.
- ^Assis, Claudia (November 26, 2019). "Shutterfly names Hilary Schneider its new CEO". MarketWatch. Retrieved 10 January 2020.
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- ^Chowdhry, Amit. "This Startup Made A Deal On 'Shark Tank' And Just Sold To Shutterfly For $14.5 Million". Forbes. Retrieved 2021-02-08.
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- ^Newburger, Emma (2019-06-10). "Shutterfly strikes take-private deal with Apollo Global, valuing company at $2.7 billion". CNBC. Retrieved 2019-06-27.
- ^"Shutterfly, Inc. and Affiliates of Certain Funds Managed by Affiliates of Apollo Global Management, Inc. Announce the Closing of the Previously Announced Transaction Amongst the Parties". BusinessWire. 25 September 2019. Retrieved 28 September 2019.
- ^ ab"Affiliates of Certain Funds Managed By Affiliates Of Apollo Global Management, Inc. Announce The Closing Of The Previously Announced Transaction With Snapfish And Shutterfly". GlobeNewswire News Room. 8 January 2020. Retrieved 10 January 2020.
- ^Ryan Lawler (June 22, 2012), ThisLife Raises $2.75 Million From Madrona And Others To Organize Your Photos In The Cloud, techcrunch.com, retrieved October 5, 2014
- ^Ryan Lawler (January 3, 2013), Source: Shutterfly To Acquire Slick Photo Sharing And Storage Startup ThisLife, techcrunch.com, retrieved October 5, 2014
- ^Jackie Dove (August 6, 2014), Hands on: Shutterfly’s ThisLife masters photo management for busy families, thenextweb.com, retrieved October 5, 2014
- ^Joanna Stern (April 16, 2012), Shutterfly’s Treat Lets You Make Highly Customized Greeting Card, ABC News, retrieved October 5, 2014
- ^Sarah Perez (February 13, 2015), With Treat’s Shutdown, Shutterfly Exits The Mobile Greeting Card Business, Techcrunch, retrieved February 23, 2015
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.SELL YOUR PHOTOS ONLINE \u0026 EARN MONEY (for Mobile \u0026 DSLR camera users)
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