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Table of Contents
SHUTTERFLY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
The accompanying notes are an integral part of these consolidated financial statements.
49
December 31,
2006
2005
2004
Net revenues
$
123,353
$
83,902
$
54,499
Cost of revenues(1)
55,491
36,941
24,878
Gross profit
67,862
46,961
29,621
Operating expenses(1):
Technology and development
19,087
13,152
7,433
Sales and marketing
21,940
15,252
7,705
General and administrative
19,216
13,657
10,126
60,243
42,061
25,264
Income from operations
7,619
4,900
4,357
Interest expense
(266
)
(367
)
(471
)
Other income (expense), net
2,387
(103
)
81
Income before income taxes and cumulative effect of change in accounting
principle
9,740
4,430
3,967
Benefit (provision) for income taxes
(3,942
)
24,060
(258
)
Net income before cumulative effect of change in accounting principle
5,798
28,490
3,709
Cumulative effect of change in accounting principle
—
442
—
Net income
$
5,798
$
28,932
$
3,709
Net income per share
—
basic and diluted:
Before cumulative effect of change in accounting principle
$
0.67
$
1.31
$
—
Cumulative effect of change in accounting principle
—
0.14
—
Net income per share
—
basic
$
0.67
$
1.45
$
—
Net income per share
—
diluted
$
0.56
$
1.02
$
—
Weighted average shares outstanding used in calculating net income per common
share:
Basic
8,622
3,255
2,231
Diluted
10,331
4,609
2,231
(1) Stock
-
based compensation is allocated as follows (Notes 2 and 8):
Cost of revenues
$
96
$
28
$
21
Technology and development
736
826
263
Sales and marketing
521
239
117
General and administrative
947
2,217
1,790