A Glance at the Shutterfly IPO
Amit Chowdhry | Monday October 2, 2006 | 526 views
Shutterfly.com (SFLY), one of the world’s largest picture sharing and printing websites raised a large sum of money from their initial public offering (IPO). Within the first day of trading, SFLY stock rose 12% from $15 to $15.25/share.
Techcrunch reported that “J.P. Morgan, Piper Jaffray and Jefferies sold 5.8 million of Shutterfly’s 23.6 million shares, the company ended the day with a market value of more than $350 million.” Shutterfly has 208 employees and was founded in 1999.
Last year, Shutterfly’s net income was $28.9 million and made $83.9 million in revenues. However between January and June, Shutterfly had reported a net loss of $3.65 million. Currently, Shutterfly and has had a market cap of $367.15 according to Google Finance.
On September 29, 2006, the CEO of Shutterfly had rang the Nasdaq bell to celebrate their IPO. I could imagine the excitement that ensued over the opening because I have also witnessed such an event when the Nasdaq bell was rang at the Infosys Technologies campus in Mysore, India. On July 31, A screen in Mysore projected a feed from the Times Square screen in New York displaying “Nasdaq welcomes Infosys Technologies, Ltd.”
The CEO of Shutterfly is Jeffrey Housenbold. According to the Shutterfly website, Housenbold “received the Ernst & Young Entrepreneur of the Year®. Housenbold was also a former VP of Business Development & Internet Marketing at eBay.
Amit’s Thoughts:
Personally I am not a user of Shutterfly, but I do know several very satisfied customers that have benefitted from Shutterfly’s low-cost printing services. You can’t really go wrong with a price of $0.19 per print. I’ve seen people using Shutterfly developed pictures all over Michigan State’s dorm rooms and apartments.
The IPO seems to have launched successfully despite the lawsuit that was filed on August 29 by former CFO of Shutterfly, Virender Ahluwalia. Ahluwalia alleged Shutterfly of “alleging breach of contract and claiming that he is entitled to exercise 15,535 stock options.”
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