Shutterfly 2014 Annual Report Download - page 19
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Please find page 19 of the 2014 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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Our quarterly financial results may fluctuate, which may lead to volatility in our stock price.
Our future revenues and operating results may vary significantly from quarter to quarter due to a
number of factors, many of which are difficult for us to predict and control. Factors that could cause our
quarterly operating results to fluctuate include:
• general economic conditions, including recession and slow economic growth in the U.S. and
worldwide and higher inflation;
• demand for our products and services, including seasonal demand;
• our pricing and marketing strategies and those of our competitors;
• our ability to attract visitors to our websites and convert those visitors into customers;
• our ability to retain customers and encourage repeat purchases;
• the costs of customer acquisition;
• our ability to manage our production and fulfillment operations;
• the costs to produce our prints and photo-based products and merchandise and to provide our
services;
• the costs of expanding or enhancing our technology or websites;
• a significant increase in returns and credits, beyond our estimated allowances, for customers
who are not satisfied with our products;
• our ability to achieve the expected benefits of strategic partnerships or the loss of any such
partnership;
• declines or disruptions to the travel industry;
• variations in weather, particularly heavy rain and snow which tend to depress travel and
picture taking;
• the timing of holidays and the duration of the holiday shopping season;
• our ability to address increased shipping delays caused by our third party shippers’ inability to
handle the ever increasing number of consumers ordering goods online, particularly during
the holiday shopping season;
• volatility in our stock price, which may lead to higher stock-based compensation expense;
• consumer preferences for digital photography services;
• improvements to the quality, cost and convenience of desktop printing of digital pictures and
products; and
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