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Press release from Business Wire

Shutterfly Announces Second Quarter 2010 Financial Results

<p> ● Net revenues increase 20% year-over-year to $46.8 million </p> <p> ● 38th consecutive quarter of year-over year net revenue growth </p> <p> ● GAAP net loss of ($0.22) per diluted share </p> <p> ● Adjusted EBITDA of $1.2 million </p>

Wednesday, July 28, 2010

Shutterfly Announces Second Quarter 2010 Financial Results16:08 EDT Wednesday, July 28, 2010 REDWOOD CITY, Calif. (Business Wire) -- Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social expression and personal publishing service, today announced financial results for the three months ended June 30, 2010. "Shutterfly continues to gain momentum and enhance our competitive position through our commitment to innovation, design forward products and services, customer friendly policies, industry-leading quality and focused financial discipline,” said President and Chief Executive Officer Jeffrey Housenbold. “Strong growth in our personalized products and services during the Mother's Day and Father's Day holidays led to our record Q2 financial performance.” Second Quarter 2010 Financial Highlights ● Net revenues totaled $46.8 million, a 20% year-over-year increase. ● Second quarter 2010 represents the 38th consecutive quarter of year-over-year net revenue growth. ● Personalized Products & Services net revenues totaled $31.7 million, a 34% year-over-year increase. ● Personalized Products & Services net revenues represented 68% of total net revenues. ● Net revenues from prints declined 2% year-over-year, to $14.4 million. ● Commercial print net revenues totaled $0.8 million. ● Existing customers generated 74% of total net revenues. ● Gross profit margin was 50% of net revenues, compared to 48% in the second quarter of 2009. ● Operating expenses, excluding $3.9 million of stock-based compensation, totaled $29.5 million. ● GAAP net loss was ($5.9) million, compared to a net loss of ($5.7) million in the second quarter of 2009. ● GAAP net loss per diluted share was ($0.22) and in line with the second quarter of 2009. ● Adjusted EBITDA was $1.2 million, compared to $0.2 million in the second quarter of 2009. ● At June 30, 2010, the Company had $159.0 million of cash, cash equivalents and short-term investments. Second Quarter 2010 Operating Metrics ● Transacting customers totaled 1.1 million, an 18% increase over the second quarter of 2009. ● Orders totaled 1.8 million, a 9% increase over the second quarter of 2009. ● Average order value was $25.56, an 11% increase over the second quarter of 2009. Recent Operating Highlights ● Launched our Simple Path integration with Facebook, allowing users to access Facebook photos. ● Improved our attribute-based navigation to make it faster and easier for customers to find the perfect card. Introduced 5x5 square stationery cards, enhanced our 3x5 folded note cards by adding more design and layout options, and expanded selection across occasions like summer parties, moving announcements and Bar and Bat Mitzvah. ● Enhanced Baby-themed Share sites with a customized creation experience, milestone widget and 12 new site designs that coordinate with birth announcements, allowing new parents to celebrate their baby's arrival with style. ● Together with The Knot & The Wedding Channel, introduced a tool that integrates gift registries into Shutterfly Share Sites. Business Outlook The Company's current financial expectations for the third quarter and the full year 2010 are as follows: Third Quarter 2010: ● Net revenues to range from $45.5 million to $47.5 million, a year-over-year change of 12% to 17%. ● GAAP gross profit margins to range from 47% to 49% of net revenues. ● Non-GAAP gross profit margins to range from 49% to 51% of net revenues. ● GAAP operating loss to range from ($11) million to ($12) million. ● Non-GAAP operating loss to range from ($7) million to ($8) million. ● GAAP effective tax rate to range from 33% to 38%. ● Non-GAAP effective tax rate to range from 35% to 36%. ● GAAP diluted net loss per share to range from ($0.26) to ($0.30). ● Non-GAAP diluted net loss per share to range from ($0.16) to ($0.18). ● Weighted average diluted shares of approximately 27.3 million. ● Adjusted EBITDA loss to range from ($1.0) million to ($2.0) million. Full Year 2010: ● Net revenues to range from $277 million to $287 million, a year-over-year change of 12% to 16%. ● GAAP gross profit margins to range from 54% to 56% of net revenues. ● Non-GAAP gross profit margins to range from 55% to 57% of net revenues. ● GAAP operating income to range from $10 million to $14 million. ● Non-GAAP operating income to range from $29 million to $33 million. ● GAAP effective tax rate to range from 33% to 38%. ● Non-GAAP effective tax rate to range from 35% to 36%. ● GAAP diluted net income per share to range from $0.23 to $0.32. ● Non-GAAP diluted net income per share to range from $0.66 to $0.75. ● Weighted average diluted shares of 28.9 million. ● Adjusted EBITDA to range from 19% to 20% of net revenues. ● Capital expenditures to range from 7% to 9% of net revenues. Notes to the Second Quarter 2010 Financial Results, and Business Outlook Adjusted EBITDA is a non-GAAP financial measure that the Company defines as earnings before interest, taxes, depreciation, amortization and stock-based compensation. Free cash flow is a non-GAAP financial measure that the Company defines as Adjusted EBITDA minus purchases of property, plant, and equipment, and capitalization of software and website development costs. Print revenues consist of photo prints in wallet, 2x6, 4x6, 5x7, 8x10, photocards, and large format sizes. Personalized Products and Services (“PPS”) revenues primarily include photo books, stationery and folded greeting cards, calendars, and photo-based merchandise. PPS also includes revenue from advertising and sponsorship programs and referral fees. The Company's referral fee program was discontinued effective March 31, 2010, and no referral fee revenue has been recorded subsequent to that date. Commercial print revenues are a separate component of net revenues and are excluded from prints and PPS revenues. Average order value is defined as total net revenues, excluding commercial print revenues, divided by total orders. The foregoing financial guidance replaces any of the Company's previously issued guidance and all such previous guidance should no longer be relied upon. Second Quarter 2010 Conference Call Management will review the second quarter 2010 financial results and its expectations for the third quarter and full year 2010 on a conference call on Wednesday, July 28, 2010 at 2:00 p.m. Pacific Daylight Time (5:00 p.m. Eastern Daylight Time). To listen to the call and view the accompanying slides, please visit http://www.shutterfly.com. In the Investor Relations area, found in the "About Us" section, click on the link provided for the webcast, or dial 970-315-0490. The webcast, as well as a podcast, will be archived and available at http://www.shutterfly.com. A replay of the conference call will be available through Thursday, August 11, 2010. To hear the replay, please dial 706-645-9291, replay passcode 84668467. About Non-GAAP Financial Information This press release contains certain non-GAAP financial measures. Tables are provided at the end of this press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP gross margins, non-GAAP operating income (loss) and the related operating income (loss) margins, non-GAAP income (loss) per share, adjusted EBITDA and free cash flow. For more information, please see Shutterfly's SEC Filings. To supplement the Company's consolidated financial statements presented on a GAAP basis, we believe that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate the Company's financial results, develop budgets, manage expenditures, and determine employee compensation. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to net income (loss) or net income (loss) per share determined in accordance with GAAP. Notice Regarding Forward-Looking Statements This media release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements include all statements regarding the Company's financial expectations for the third quarter and full year 2010 set forth under the caption "Business Outlook." The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that might contribute to such differences include, among others, economic downturns and the general state of the economy, our ability to expand our customer base; our ability to retain and hire necessary employees, including seasonal personnel, and appropriately staff our operations; the impact of seasonality on our business; our ability to develop on a timely basis, as well as consumer acceptance of, new products and services; our ability to develop additional adjacent lines of business; unforeseen changes in expense levels; and competition, which could lead to pricing pressure. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2009, and the Company's other filings, which are available on the Securities and Exchange Commission's Web site at www.sec.gov. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. About Shutterfly Founded in 1999, Shutterfly, Inc. is an Internet-based social expression and personal publishing service. Shutterfly provides high quality products and world class services that make it easy, convenient and fun for consumers to preserve their digital photos in a creative and thoughtful manner. Shutterfly's flagship product is its award-winning photo book line, which helps consumers celebrate memories and tell their stories in professionally bound coffee table books. More information about Shutterfly (NASDAQ:SFLY) is available at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.   Shutterfly, Inc.Condensed Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited)   Three Months Ended     Six Months EndedJune 30,June 30,2010   20092010   2009   Net revenues $ 46,807 $ 38,858 $ 92,549 $ 74,870 Cost of net revenues   23,179     20,069     45,757     39,741   Gross profit   23,628     18,789     46,792     35,129   Operating expenses: Technology and development 12,477 10,963 24,646 21,957 Sales and marketing 11,311 8,901 21,468 16,698 General and administrative   9,620     8,333     18,421     15,279   Total operating expenses   33,408     28,197     64,535     53,934   Loss from operations (9,780 ) (9,408 ) (17,743 ) (18,805 ) Interest expense (21 ) (27 ) (42 ) (114 ) Interest and other income, net   194     283     436     607   Loss before income taxes (9,607 ) (9,152 ) (17,349 ) (18,312 ) Benefit from income taxes   3,722     3,497     6,733     6,426   Net loss $ (5,885 ) $ (5,655 ) $ (10,616 ) $ (11,886 )     Net loss per share - basic and diluted $ (0.22 ) $ (0.22 ) $ (0.40 ) $ (0.47 )   Weighted-average shares outstanding - basic and diluted   26,952     25,246     26,595     25,197     Stock-based compensation is allocated as follows:   Cost of net revenues $ 129 $ 82 $ 260 $ 178 Technology and development 756 582 1,557 1,214 Sales and marketing 966 757 2,068 1,473 General and administrative   2,208     1,413     4,548     2,773   $ 4,059   $ 2,834   $ 8,433   $ 5,638       Shutterfly, Inc.Condensed Consolidated Balance Sheet (In thousands, except par value amounts) (Unaudited)       June 30,December 31,20102009   ASSETS Current assets: Cash and cash equivalents $ 132,602 $ 132,812 Short-term investments 26,350 47,925 Accounts receivable, net 2,959 5,472 Inventories 2,484 2,968 Deferred tax asset, current portion 2,747 2,243 Prepaid expenses and other current assets   12,406     4,501   Total current assets 179,548 195,921 Property and equipment, net 40,827 41,845 Goodwill and intangible assets, net 12,464 13,406 Deferred tax asset, net of current portion 17,455 14,674 Other assets   5,177     5,467   Total assets $ 255,471   $ 271,313     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 7,143 $ 13,116 Accrued liabilities 12,810 32,793 Deferred revenue   8,256     8,602   Total current liabilities 28,209 54,511 Other liabilities   2,568     1,638   Total liabilities   30,777     56,149     Stockholders' equity Common stock, $0.0001 par value; 100,000 shares authorized; 27,213 and25,909 shares issued and outstanding on June 30, 2010 andDecember 31, 2009, respectively 3 3 Additional paid-in-capital 246,556 226,410 Accumulated deficit   (21,865 )   (11,249 ) Total stockholders' equity   224,694     215,164   Total liabilities and stockholders' equity $ 255,471   $ 271,313       Shutterfly, Inc.Condensed Consolidated Statement of Cash Flows (In thousands) (Unaudited)   Six Months EndedJune 30,2010   2009 Cash flows from operating activities: Net loss $ (10,616 ) $ (11,886 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 12,680 12,544 Amortization of intangible assets 1,289 941 Stock-based compensation, net of forfeitures 8,433 5,638 Loss/(gain) on disposal of property and equipment (88 ) 79 Deferred income taxes (3,285 ) (269 ) Tax benefit/(charge) from stock-based compensation 3,710 (183 ) Excess tax benefits from stock-based compensation (4,102 ) - Changes in operating assets and liabilities: Accounts receivable, net 2,575 2,789 Inventories 484 873 Prepaid expenses and other current assets (7,905 ) (5,759 ) Other assets (58 ) (3,009 ) Accounts payable (6,727 ) (6,895 ) Accrued and other liabilities (19,207 ) (10,780 ) Deferred revenue   (346 )   (494 ) Net cash used in operating activities   (23,163 )   (16,411 )   Cash flows from investing activities: Purchases of property and equipment (8,630 ) (6,102 ) Capitalization of software and website development costs (2,049 ) (1,938 ) Proceeds from sale of equipment 77 - Proceeds from the sale of auction rate securities   21,575     50   Net cash provided by (used in) investing activities   10,973     (7,990 )   Cash flows from financing activities: Principal payments of capital lease obligations (6 ) (62 ) Proceeds from issuance of common stock upon exercise of stock options 7,884 869 Excess tax benefits from stock-based compensation 4,102 - Shares withheld for payment of employee's withholding tax liability   -     (991 ) Net cash provided by (used in) financing activities   11,980     (184 )   Net decrease in cash and cash equivalents (210 ) (24,585 ) Cash and cash equivalents, beginning of period   132,812     88,164   Cash and cash equivalents, end of period $ 132,602   $ 63,579     Supplemental schedule of non-cash investing activities Net change in accrued purchases of property and equipment $ 914 $ (118 )     Shutterfly, Inc.User Metrics Disclosure     Three Months EndedJune 30,20102009User Metrics   Customers 1,117,960 946,213 year-over-year growth 18% 13%   Orders 1,801,740 1,653,447 year-over-year growth 9% 6%   Average order value (1) $25.56 $23.09 year-over-year growth 11% 2%   Average orders per customer 1.6x 1.7x   (1) Average order value excludes commercial printing revenue     Shutterfly, Inc.Reconciliation of Forward-Looking Guidance for Non-GAAP Financial Measures to GAAP Measures (In millions, except per share amounts)                 Forward-Looking GuidanceGAAPNon-GAAPRange of EstimateAdjustmentsRange of EstimateFromToFromToFromTo   Three Months Ending September 30, 2010   Net revenues $45.5$47.5 - - $45.5$47.5 Gross profit margin 47% 49% 2% [a] 49% 51% Operating loss ($12) ($11) $4 [b] ($8) ($7) Operating margin (27%) (24%) 10% [b] (17%) (14%)   Stock-based compensation $4.0 $4.0 $4.0 $4.0 - - Amortization of intangible assets $0.6 $0.6 $0.6 $0.6 - -   Adjusted EBITDA* ($2.0) ($1.0)   Diluted loss per share ($0.30) ($0.26) $0.12 $0.10 [c] ($0.18) ($0.16) Diluted shares 27.3 27.3 - - 27.3 27.3 Effective tax rate 33% 38% 2% (2%) [d] 35% 36%     Twelve Months Ending December 31, 2010   Net revenues $277.0$287.0 - - $277.0$287.0 Gross profit margin 54% 56% 1% [e] 55% 57% Operating income $10 $14 $19 [f] $29 $33 Operating margin 3% 5% 7% [f] 10% 12%   Stock-based compensation $16.8 $16.8 $16.8 $16.8 - - Amortization of intangible assets $2.4 $2.4 $2.4 $2.4 - -   Adjusted EBITDA* $53 $57 Adjusted EBITDA* margin 19% 20%   Diluted earnings per share $0.23 $0.32 $0.43 [g] $0.66 $0.75 Diluted shares 28.9 28.9 - - 28.9 28.9 Effective tax rate 33% 38% 2% (2%) [h] 35% 36%   Capital expenditures (% of net revenues) 7% 9% 7% 9%         * Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation, amortization and stock-based compensation. [a] Reflects estimated adjustments for stock-based compensation expense of approximately $100k and amortization of purchased intangible assets of approximately $500k. [b] Reflects estimated adjustments for stock-based compensation expense of approximately $4.0 million and amortization of purchased intangible assets of approximately $600k. [c] Reflects the estimated adjustments in item [b] and the income tax impact related to these adjustments. [d] Reflects the estimated adjustments to the effective tax rate based on the adjustments in item [b]. [e] Reflects estimated adjustments for stock-based compensation expense of approximately $500k and amortization of purchased intangible assets of approximately $2.2 million. [f] Reflects estimated adjustments for stock-based compensation expense of approximately $16.8 million and amortization of purchased intangible assets of approximately $2.4 million. [g] Reflects the estimated adjustments in item [f] and the income tax impact related to these adjustments. [h] Reflects the estimated adjustments to the effective tax rate based on the adjustments in item [f].     Shutterfly, Inc.Reconciliation of GAAP Gross Profit Margin to Non-GAAP Gross Profit Margin (In thousands) (Unaudited)   Three Months Ended   Year EndedMar. 31,   Jun. 30,   Sep. 30,   Dec. 31,   Mar. 31,   Jun. 30,Dec. 31,2009200920092009201020102009   GAAP gross profit $ 16,340 $ 18,789 $ 19,075 $ 80,580 $ 23,164 $ 23,628 $ 134,784 Stock-based compensation expense within cost of net revenues 95 82 119 119 131 129 416 Amortization of intangible assets within cost of net revenues   367     394     460     488     556     552     1,709   Non-GAAP gross profit $ 16,802   $ 19,265   $ 19,654   $ 81,187   $ 23,851   $ 24,309   $ 136,909     Non-GAAP gross profit margin   47 %   50 %   49 %   62 %   52 %   52 %   56 %   Shutterfly, Inc.Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months EndedYear EndedMar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,Dec. 31,2009200920092009201020102009   GAAP operating income (loss) $ (9,396 ) $ (9,408 ) $ (9,055 ) 36,569 (7,963 ) (9,780 ) $ 8,710 Stock-based compensation expense 2,804 2,834 4,156 4,479 4,374 4,059 14,273 Amortization of intangible assets   457     484     550     581     647     642     2,072   Non-GAAP operating income (loss) $ (6,135 ) $ (6,090 ) $ (4,349 ) $ 41,629   $ (2,942 ) $ (5,079 ) $ 25,055     Non-GAAP operating margin   (17 %)   (16 %)   (11 %)   32 %   (6 %)   (11 %)   10 %   Shutterfly, Inc.Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) (In thousands) (Unaudited) Three Months EndedYear EndedMar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,Dec. 31,2009200920092009201020102009   GAAP net income (loss) $ (6,232 ) $ (5,655 ) $ (6,346 ) $ 24,086 $ (4,731 ) $ (5,885 ) $ 5,853 Stock-based compensation expense 2,804 2,834 4,156 4,479 4,374 4,059 14,273 Amortization of intangible assets 457 484 550 581 647 642 2,072 Income taxes associated with certain non-GAAP entries   (1,168 )   (1,190 )   (1,255 )   (1,542 )   (2,028 )   (1,945 )   (5,155 ) Non-GAAP net income (loss) $ (4,139 ) $ (3,527 ) $ (2,895 ) $ 27,604   $ (1,738 ) $ (3,129 ) $ 17,043     Diluted net income (loss) per share: GAAP   ($0.25 )   ($0.22 )   ($0.25 ) $ 0.88     ($0.18 )   ($0.22 ) $ 0.22   Non-GAAP   ($0.16 )   ($0.14 )   ($0.11 ) $ 1.01     ($0.07 )   ($0.12 ) $ 0.64   Shares used in GAAP and non-GAAP diluted net income (loss) per-share calculation   25,148     25,246     25,517     27,433     26,238     26,952     26,810       Shutterfly, Inc.Reconciliation of GAAP to Non-GAAP Effective Tax Rate (In thousands) (Unaudited) Three Months EndedYear EndedMar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,Dec. 31,2009200920092009201020102009   GAAP benefit (provision) for income taxes $ 2,928 $ 3,497 $ 2,657 (12,596 ) 3,011 3,722 $ (3,514 ) Income taxes associated with certain non-GAAP entries   (1,168 )   (1,190 )   (1,255 )   (1,542 )   (2,028 )   (1,945 )   (5,155 ) Non-GAAP benefit (provision) for income taxes $ 1,760   $ 2,307   $ 1,402   $ (14,138 ) $ 983   $ 1,777   $ (8,669 )   GAAP income (loss) before income taxes $ (9,160 ) $ (9,152 ) $ (9,003 ) 36,682 (7,742 ) (9,607 ) $ 9,367 Stock-based compensation expense 2,804 2,834 4,156 4,479 4,374 4,059 14,273 Amortization of intangible assets   457     484     550     581     647     642     2,072   Non-GAAP income (loss) before income taxes $ (5,899 ) $ (5,834 ) $ (4,297 ) $ 41,742   $ (2,721 ) $ (4,906 ) $ 25,712     GAAP effective tax rate   32 %   38 %   30 %   34 %   39 %   39 %   38 %   Non-GAAP effective tax rate   30 %   40 %   33 %   34 %   36 %   36 %   34 %     Shutterfly, Inc.Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA (In thousands) (Unaudited)   Three Months EndedYear EndedMar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,Dec. 31,2009200920092009201020102009   GAAP net income (loss) $ (6,232 ) $ (5,655 ) $ (6,346 ) $ 24,086 $ (4,731 ) $ (5,885 ) 5,853 Interest expense 88 27 22 20 21 21 157 Interest and other income, net (324 ) (283 ) (74 ) (133 ) (242 ) (194 ) (814 ) Tax benefit (provision) (2,928 ) (3,497 ) (2,657 ) 12,596 (3,011 ) (3,722 ) 3,514 Depreciation and amortization 6,706 6,779 6,850 6,859 7,020 6,949 27,194 Stock-based compensation expense   2,804     2,834     4,156     4,479     4,374     4,059     14,273   Non-GAAP Adjusted EBITDA $ 114   $ 205   $ 1,951   $ 47,907   $ 3,431   $ 1,228   $ 50,177     Shutterfly, Inc.Reconciliation of Cash Flow from Operating Activities to Non-GAAP Adjusted EBITDA and Free Cash Flow (In thousands) (Unaudited) Three Months EndedYear EndedMar. 31,Jun. 30,Sep. 30,Dec. 31,Mar. 31,Jun. 30,Dec. 31,2009200920092009201020102009   Net cash provided by (used in) operating activities (19,258 ) 2,847 (1,714 ) 72,015 (28,264 ) 5,101 53,890 Interest expense 88 27 22 20 21 21 157 Interest and other income, net (324 ) (283 ) (74 ) (133 ) (242 ) (194 ) (814 ) Tax benefit (provision) (2,928 ) (3,497 ) (2,657 ) 12,596 (3,011 ) (3,722 ) 3,514 Changes in operating assets and liabilities 24,510 (1,236 ) 7,529 (38,238 ) 33,153 (1,969 ) (7,435 ) Other adjustments   (1,974 )   2,347     (1,155 )   1,647     1,774     1,991     865   Non-GAAP Adjusted EBITDA   114     205     1,951     47,907     3,431     1,228     50,177   Less: Purchases of property and equipment (4,158 ) (1,826 ) (3,811 ) (3,969 ) (5,534 ) (4,010 ) (13,764 ) Less: Capitalized technology & development costs   (824 )   (1,114 )   (1,094 )   (859 )   (802 )   (1,247 )   (3,891 ) Free cash flow $ (4,868 ) $ (2,735 ) $ (2,954 ) $ 43,079   $ (2,905 ) $ (4,029 ) $ 32,522