Shutterfly 2014 Annual Report Download - page 75

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SHUTTERFLY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Year Ended December 31,
2014 2013 2012
Net revenues ................................ $ 921,580 $ 783,642 $ 640,624
Cost of net revenues ........................... 452,720 369,593 294,857
Gross profit .............................. 468,860 414,049 345,767
Operating expenses:
Technology and development ................... 133,623 108,995 85,746
Sales and marketing ......................... 216,035 189,985 148,806
General and administrative .................... 112,957 93,011 70,502
Total operating expenses ..................... 462,615 391,991 305,054
Income from operations ........................ 6,245 22,058 40,713
Interest expense .............................. (16,732) (9,446) (597)
Interest and other income, net .................... 508 308 42
Income/(loss) before income taxes ................. (9,979) 12,920 40,158
Benefit from/(provision for) income taxes ............ 2,119 (3,635) (17,160)
Net income/(loss) ............................. $ (7,860) $ 9,285 $ 22,998
Net income/(loss) per share:
Basic .................................... $ (0.20) $ 0.25 $ 0.64
Diluted ................................... $ (0.20) $ 0.24 $ 0.61
Weighted average shares:
Basic .................................... 38,452 37,680 35,826
Diluted ................................... 38,452 39,493 37,432
Stock-based compensation is allocated as follows
(Notes 2 and 8):
Cost of net revenues ......................... $ 3,657 $ 2,485 $ 1,696
Technology and development ................... 9,236 9,477 8,635
Sales and marketing ......................... 22,670 19,774 11,559
General and administrative .................... 26,199 21,792 15,432
The accompanying notes are an integral part of these consolidated financial statements.
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