Shutterfly 2012 Annual Report Download - page 14

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Employees
As of December 31, 2012, we had 1,107 full time employees. Below is a summary of employees by
function:
2012 2011 2010
Cost of revenue .................................. 453 422 293
Technology and development ......................... 327 264 168
Sales and marketing ............................... 213 166 79
General and administrative .......................... 114 104 71
Total .......................................... 1,107 956 611
During the peak holiday season, we hire contract workers on a temporary basis from third-party
outsourcing firms. For example, during our peak production period in the fourth quarter of 2012, we used
approximately 1,101 temporary workers to assist in our production and fulfillment operations. None of our
employees are represented by a labor union or are covered by a collective bargaining agreement. We have
never experienced any employment-related work stoppages and consider our employee relations to be
good.
Available Information
Our Internet website is located at http://www.shutterfly.com. The information on our website is not a
part of this annual report on Form 10-K. We make available free of charge on our website our annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to
those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as soon as reasonably practicable after we electronically file such material with, or furnish it to, the
Securities and Exchange Commission. Our SEC reports can be accessed through the investor relations
section of our Internet website.
The public may also read and copy any materials we file with the Securities and Exchange Commission
at the Securities and Exchange Commission’s Public Reference Room at 100 F Street, NE, Washington,
DC 20549. The public may obtain information on the operation of the Public Reference Room by calling
the Securities and Exchange Commission at 1-800-SEC-0330. The Securities and Exchange Commission
also maintains an Internet website that contains reports, proxy and information statements and other
information regarding issuers that file electronically with the Securities and Exchange Commission. The
Securities and Exchange Commission’s Internet website is located at http://www.sec.gov.
ITEM 1A. RISK FACTORS
Our net revenues, operating results and cash requirements are affected by the seasonal nature of our business and
cyclical fluctuations in the U.S. economy.
Our business is highly seasonal, with a high proportion of our net revenues, net income and operating
cash flows generated during the fourth quarter. For example, we generated more than 50% of our 2012 net
revenues in the fourth quarter of 2012, and the net income that we generated during the fourth quarter of
2012 was necessary for us to achieve profitability on an annual basis. In addition, we incur significant
additional expenses in the period leading up to the fourth quarter holiday season including expenses
related to the hiring and training of temporary workers to meet our seasonal needs, additional inventory
and equipment purchases and increased advertising. If we are unable to accurately forecast and respond to
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