Shutterfly 2015 Annual Report Download - page 110
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In addition to the above reportable segments, the Company has a corporate category that includes activities
that are not directly attributable or allocable to a specific segment. This category consists of stock-based
compensation and amortization of intangible assets.
The Company’s segment results for fiscal 2015, 2014 and 2013 were as follows (dollars in thousands):
Year Ended December 31,
2015 2014 2013
Consumer
Net revenues ....................................... $ 961,418 $ 870,959 $ 745,970
Cost of net revenues ................................. 436,050 394,265 327,145
Gross profit ........................................ $ 525,368 $ 476,694 $ 418,825
Gross profit as a percentage of net revenues ............... 55% 55% 56%
Enterprise
Net revenues ....................................... $ 98,011 $ 50,621 $ 37,672
Cost of net revenues ................................. 79,789 43,456 29,480
Gross profit ........................................ $ 18,222 $ 7,165 $ 8,192
Gross profit as a percentage of net revenues ............... 19% 14% 22%
Corporate
Net revenues ....................................... $ — $ — $ —
Cost of net revenues ................................. 12,239 14,999 12,968
Gross profit ........................................ $ (12,239) $ (14,999) $ (12,968)
Consolidated
Net revenues ....................................... $ 1,059,429 $ 921,580 $ 783,642
Cost of net revenues ................................. 528,078 452,720 369,593
Gross profit ........................................ $ 531,351 $ 468,860 $ 414,049
Gross profit as a percentage of net revenues ............... 50% 51% 53%
Note 14 — Related Party Transactions
The Company’s Chief Executive Officer, Jeffrey Housenbold, was appointed to Chegg, Inc.’s (“Chegg”)
Board of Directors in May 2013 and to Groupon, Inc.’s (“Groupon”) Board of Directors in October 2013. During
the year ended December 31, 2015, the Company conducted business with both Groupon and Chegg. The
Company’s business with Groupon during the year consisted primarily of offering its products as part of
Groupon’s flash deals. The Company’s business with Chegg primarily consisted of advertising campaigns, and
commercial print services with its Enterprise segment.
During the years ended December 31, 2015, 2014 and 2013, the Company paid approximately $3.5 million,
$3.3 million, and $2.7 million, respectively, in commissions to Groupon related to these Flash deals. As of
December 31, 2015 and 2014, the Company had a receivable balance of approximately $0.8 million and $0.5
million, respectively, with Groupon.
During the years ended December 31, 2015 and 2014, the Company earned revenue of approximately $0.5
million from Chegg. The Company did not earn any revenue from Chegg in 2013. As of December 31, 2015, the
Company did not have a receivable balance with Chegg. The Company had a receivable balance of
approximately $0.5 million as of December 31, 2014.
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