Shutterfly, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported net revenue of $368,757,000 against $195,443,000 a year ago. Loss from operations was $86,536,000 against $35,821,000 a year ago. Loss before income taxes $102,340,000 against $42,267,000 a year ago. Net loss $73,543,000 against $25,607,000 a year ago. Basic and diluted net loss per share was $2.20 against $0.78 a year ago. Non-GAAP net loss was $70,796,000 against $23,959,000 a year ago. Non-GAAP net loss per share was $2.12 against $0.73 a year ago. Non-GAAP adjusted LBITDA was $26,285,000 against adjusted EBITDA $3,047,000 a year ago. Non-GAAP total net revenue was $372,715,000. Non-GAAP operating loss was $80,186,000. Non-GAAP loss before income taxes was $95,990,000.

For nine months, the company reported net revenue of $1,011,853,000 against $596,447,000 a year ago. Loss from operations was $143,557,000 against $117,422,000 a year ago. Loss before income taxes $183,454,000 against $135,352,000 a year ago. Net loss $127,220,000 against $81,639,000 a year ago. Basic and diluted net loss per share was $3.84 against $2.45 a year ago. Net cash used in operating activities was $172,524,000 against $80,659,000 a year ago. Purchases of property and equipment were $28,984,000 against $22,960,000 a year ago. Non-GAAP net loss was $81,011,000. Non-GAAP net loss per share was $2.44. Non-GAAP adjusted EBITDA was $65,178,000. Non-GAAP total net revenue was $1,049,162,000. Non-GAAP operating loss was $77,388,000. Non-GAAP loss before income taxes was $117,285,000.

The company revised earnings guidance for the fourth quarter ending December 30, 2018. For the quarter, on non- GAAP basis the company expects net revenue midpoint of $970 million against previous guidance $982 million a year ago. The company expects operating income midpoint of $273 million against previous guidance of $294 million a year ago. The company expects adjusted EBITDA midpoint of $335 million against previous guidance of $354 million a year ago. The company expects earnings per share midpoint of $5.36 against previous guidance of $5.89 a year ago. On GAAP basis, the company expects net revenue to be between $943 million to $993 million, operating income to be in the range of $261 million to $281 million, tax rate of 26.1% to 25.7% and basic and diluted net income per share to be $5.09 to $5.54.

The company provided earnings guidance for the twelve months ending December 30, 2018. For the year, on GAAP basis, the company expects net revenue to be in the range of $1,954 million to $2,004 million, operating income of $135 million to $155 million, capital expenditures of $100, tax rate of 21.5% and basic and diluted net income per share of $1.66 to $2.11. On non- GAAP basis, the company expects net revenue to be in the range of $1,994 million to $2,044 million, operating income of $185 million to $205 million, amortization of intangible assets of $39 million, depreciation of $114 million, Adjusted EBITDA of $390 million to $410 million, capital expenditures of $100, tax rate of 21.5%, and basic and diluted net income per share of $2.80 to $3.25. On non- GAAP midpoint basis, the company expects net revenue of $2,019 million, operating income of $195 million, amortization of intangible assets of $39million, depreciation of $114 million, Adjusted EBITDA of $400 million, tax rate of 21.5%, and basic and diluted net income per share of $3.02.