The company's shares fell as much as 11 percent in extended trading.

Shutterfly forecast current-quarter adjusted loss of 86-92 cents per share, more than twice as big as the 42 cent loss analysts on average were expecting, according to Thomson Reuters I/B/E/S.

The company said it expects revenue of $132 million to $135 million, missing the average analyst estimate of $138.4 million.

Shutterfly gets most of its revenue from selling photo books, greeting cards and stationery from users' photos and competes with Hewlett-Packard's Snapfish and Facebook Inc.

Shutterfly's fourth-quarter profit fell to $43.6 million, or $1.10 per share, from $53.0 million, or $1.40 per share, a year earlier.

Operating expenses rose 27 percent to $141.5 million.

On an adjusted basis, Shutterfly earned $1.20 per share, beating analysts' average estimate of $1.07 per share.

Revenue in the holiday shopping quarter — which accounts for about half of the company's total revenue — rose 17 percent to $410.8 million, above analysts' expectation of $406.3 million.

At 6 p.m. in New York, shares of the Redwood City, California-based company were down 8 percent at $45.70. The shares closed at $49.67 on the Nasdaq on Wednesday.