Shutterfly 2014 Annual Report Download - page 62
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Shakopee production facilities, an increase of $0.5 million related to our credit facility and an increase of
$0.1 million related to our capital leases.
Year Ended December 31,
2014 2013
(in thousands)
Income tax benefit/(provision) .................................. $ 2,119 $ (3,635)
Effective tax rate ........................................... 21% 28%
The benefit for income taxes was $2.1 million for 2014, compared to a provision for income taxes of
$3.6 million for 2013. The current year tax benefit was due to the loss before income taxes. Our effective
tax rate was 21% in 2014 and 28% in 2013. The year over year change in our effective tax rate was
primarily the result of higher non-deductible executive compensation, a lower federal research and
development credit benefit and a decrease in disqualifying dispositions of incentive stock option awards.
Year Ended December 31,
2014 2013 $ Change % Change
(in thousands)
Income/(loss) before income taxes ........... $ (9,979) $ 12,920 $ (22,899) (177)%
Net income/(loss) ....................... (7,860) 9,285 (17,145) (185)%
Percentage of net revenues ................ —% 1% ——
Comparison of the Years Ended December 31, 2013 and 2012
Year Ended December 31,
2013 2012 $ Change % Change
(in thousands, except AOV amounts)
Net revenues
Consumer ........................... $ 745,969 $ 613,445 $ 132,524 22%
Enterprise ........................... 37,673 27,179 10,494 39%
Total net revenues ................... 783,642 640,624 143,018 22%
Cost of net revenues ..................... 369,593 294,857 74,736 25%
Gross profit ........................... $ 414,049 $ 345,767 $ 68,282 20%
Percentage of net revenues ................ 53% 54% ——
Key Consumer Metrics
Customers ............................ 8,094 7,062 1,032 15%
Orders ............................... 18,561 16,322 2,239 14%
Average order value ..................... $ 40.19 $ 37.58 $ 2.61 7%
Net revenues increased $143.0 million, or 22%, in 2013 compared to 2012. Revenue growth was
attributable to increases in both reportable segments. Consumer net revenues increased $132.5 million, or
22%, in 2013 compared to 2012, and represented 95% of total net revenues in 2013 compared to 96% in
2012. The increase in Consumer net revenues is primarily the result of increased sales of greeting and
stationery cards, photo books, including net revenues from the recently acquired MyPublisher brand, and
other photo-based merchandise. The increase is also reflected in the increases in all of our key metrics in
2013, as compared to 2012, as noted above. Partially offsetting this increase were larger than expected
refunds during the fourth quarter of 2013 due to production issues at our Tiny Prints brand, as well as the
impact of losing an important sales partner in the fourth quarter, primarily for our Tiny Prints brand.
Enterprise revenues increased $10.5 million, or 39%, in 2013 compared to 2012, and represented 5% of
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