Group 1 - Getty Images Holdings, Inc. plans to release its second quarter 2025 results after market close on August 11, 2025, followed by a conference call at 4:30 p.m. Eastern Time [1] - The conference call can be accessed via phone or through a webcast on the company's Investor Relations website [2][3] - Getty Images is a leading global visual content creator and marketplace, serving customers worldwide through its brands including Getty Images, iStock, and Unsplash [4] Group 2 - The company collaborates with nearly 600,000 content creators and over 350 content partners, covering more than 160,000 events annually [4] - Getty Images offers innovative solutions, including generative AI technologies, to enhance the creative process for its customers [5]

Group 1 - Shutterstock has approved the merger with Getty Images by a significant margin, indicating strong support for the deal [1] - The merger is expected to close in the second quarter, providing a premium to current stock prices [1] Group 2 - The article highlights the author's extensive experience in investment analysis, focusing on identifying underappreciated companies [1]

Core Viewpoint - Getty Images' stock has seen a significant increase due to a favorable merger deal with Shutterstock, with shares rising over 13% in the week leading up to the announcement [1]. Group 1: Merger Approval - Shutterstock's shareholders overwhelmingly approved the merger with Getty Images, with approximately 82% voting in favor [2]. - The merger is characterized as a "merger of equals," but the Getty Images name will be retained for the combined entity, with Getty stockholders holding nearly 55% of the new business [4]. Group 2: Market Reaction - Following the announcement of the shareholder vote, Shutterstock's equity also experienced a rise, indicating positive market sentiment towards the merger [5]. Group 3: Insider Activity - Post-merger approval, several insiders from both companies sold portions of their equity holdings, suggesting confidence in the merger's valuation [6].

Core Insights - The report "Sustainability at the Crossroads" by Getty Images provides insights into consumer sentiment regarding sustainability and offers guidance for brands to communicate their CSR commitments effectively [5][12] - A significant 69% of global consumers acknowledge the direct impact of climate change on their daily lives, indicating a growing personal connection to the issue [6][12] - The report highlights a shift in consumer expectations, with 86% believing businesses should leverage their resources to enhance societal and environmental conditions [6][12] Consumer Expectations - 81% of consumers prefer visuals that depict the real effects of climate change, favoring transparency over idealized imagery [15] - 78% of consumers want to see improvements in sustainability efforts, emphasizing the need for storytelling that combines impactful imagery with tangible actions [15] - 83% believe that AI could positively influence the climate crisis in the next five years, although only 41% view AI as beneficial for energy efficiency [15] Brand Communication Strategies - The report stresses the importance of authentic visual storytelling that aligns with real-world impacts, as 76% of consumers question the credibility of brands' environmental claims [12][15] - Companies are encouraged to integrate sustainability into their core identity, showing how they address climate change through product design and messaging [15] - Visuals should reflect personal impacts of climate change, making sustainability relatable and accessible to consumers [15] Methodology - The report is based on global consumer surveys conducted between July 2022 and July 2024, with sample sizes ranging from 5,300 to 7,000 respondents across 25 countries [16]

Core Points - Shutterstock's stockholders approved the merger agreement with Getty Images, with approximately 82% of the shares voting in favor [1][2][3] - The merger aims to create a premier visual content company, enhancing capabilities in content creation, event coverage, and technology innovation [2][3] - The transaction is expected to close in the second half of 2025, pending regulatory approvals and customary conditions [3] Company Overview - Shutterstock is a leading global creative platform providing high-quality creative content for brands, digital media, and marketing companies [5] - The platform is supported by millions of creators and offers a diverse collection of 3D models, videos, music, photographs, vectors, and illustrations [5] - Shutterstock aims to deliver exceptional value to partners, contributors, and stockholders through its innovative technology and comprehensive resources [5]

Core Insights - Getty Images has renewed its partnership as the Official Photographer of the Tribeca Festival for the sixteenth consecutive year, highlighting its commitment to supporting independent storytelling [1][2]. Group 1: Partnership Details - The partnership will see Getty Images' award-winning photographers and videographers capturing high-quality imagery and video throughout the Tribeca Festival, which runs from June 4 to June 15 in New York City [2]. - Getty Images will cover over 100 feature films, including red carpet premieres, film screenings, and various sponsored events, often from exclusive vantage points [2][4]. Group 2: Content Production - Getty Images' team will produce high-end portraits of the Festival's talent and creators, which will be distributed exclusively through gettyimages.com [3]. - The company has been collaborating with the Tribeca Festival since 2009, emphasizing its role in delivering significant moments to global audiences through its unique access and distribution platform [4]. Group 3: Broader Industry Engagement - Beyond the Tribeca Festival, Getty Images is involved in nearly 70,000 entertainment events annually, including awards ceremonies and fashion weeks, partnering with major brands on creative content strategies [4].

Core Viewpoint - Getty Images is taking legal action against Stability AI for allegedly using copyrighted material to train its AI models without permission, which the company views as unfair competition and theft [1][2][3] Group 1: Legal Action - Getty Images is suing Stability AI in both the U.K. and U.S. for copying 12 million images without permission or compensation [3] - The lawsuit claims that Stability AI's actions benefit its commercial interests at the expense of content creators [3] Group 2: Industry Perspective - The CEO of Getty Images, Craig Peters, argues that the AI industry is misusing the concept of innovation to justify the theft of copyrighted material [2] - Peters emphasizes that while competition is welcome, the current practices of some AI firms represent unfair competition [2] Group 3: AI Industry Response - Stability AI contests the legal claims made by Getty Images, asserting that it does not consider them to have merit [3] - The company acknowledges using some images from Getty's websites for training its Stable Diffusion model but denies liability for the claims [3]

Core Insights - Getty Images Holdings, Inc. reported a quarterly loss of $0.14 per share, significantly missing the Zacks Consensus Estimate of $0.03, marking an earnings surprise of -566.67% [1] - The company generated revenues of $224.08 million for the quarter ended March 2025, which was 4.71% below the Zacks Consensus Estimate, but slightly above the year-ago revenues of $222.28 million [2] - The stock has underperformed the market, losing about 13% since the beginning of the year compared to the S&P 500's decline of -3.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $236.26 million, and for the current fiscal year, it is $0.10 on revenues of $948.07 million [7] - The estimate revisions trend for Getty Images is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Getty Images belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a relatively strong industry performance [8] - Another company in the same industry, Domo, is expected to report a quarterly loss of $0.20 per share, with revenues projected to decline by 2.8% year-over-year [9]

Getty Images (GETY) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Company Participants Steven Kanner - Vice President of Investor Relations & TreasuryCraig Peters - Chief Executive OfficerJennifer Leyden - CFORonald Josey - Managing DirectorDanny Pfeiffer - Equity Research Associate Conference Call Participants Mark Zgutowicz - Equity Research Analyst Steven Kanner Before we begin, we would like to note that due to the ongoing regulatory review process, we will not be able to comment on the status of the m ...

Financial Data and Key Metrics Changes - First quarter revenue for 2025 was $224.1 million, representing growth of 0.8% or 2.6% on a currency neutral basis [4][11] - Adjusted EBITDA was $70.1 million for the quarter, down 0.1% or up 2.2% on a currency neutral basis [4][17] - Annual subscription revenue was 57.2% of total revenue in Q1, up from 54.7% in Q1 of last year [12] - Free cash flow was negative $0.3 million, down from $7.1 million in Q1 2024 [19] Business Line Data and Key Metrics Changes - Subscription revenue grew by 5.4% or 7.2% on a currency neutral basis, driven primarily by growth in premium access [12] - Paid downloads were down slightly at $93 million, while video attachment rate rose to 16.7% from 14% in the previous year [13] - Editorial revenue increased by 4% year on year to $82.6 million, while creative revenue decreased by 4.8% year on year to $132.2 million [13][14] Market Data and Key Metrics Changes - Revenue growth of 6.4% in The Americas, while EMEA was down 3% and APAC was down less than 1% [15] - The annual subscription revenue retention rate was 92.7%, up from 90% in the previous year [12] Company Strategy and Development Direction - The company is committed to investing in core assets and evolving offerings to deepen relevance for customers [10] - The annual subscription business represents more than half of total revenue, positioning the company to adapt to macroeconomic uncertainties [9] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue was impacted by early FX pressures, tariff-driven uncertainty, and softness in agency and entertainment sectors [5][11] - The company expects to close the merger with Shutterstock in the second half of 2025, pending regulatory approvals [9][8] - Guidance for full year 2025 anticipates revenue of $931 million to $968 million, reflecting a decrease of 0.9% to an increase of 3.1% year over year [22] Other Important Information - The company completed refinancing of its term loan structure, extending maturity to February 2030 [20] - Total debt outstanding was $1.36 billion, with a net leverage of 4.1 times [20] Q&A Session Summary Question: Can you elaborate on the mix shift to corporate subscriptions and the demand perspective? - Management indicated a continued trend of building internal corporate marketing groups, which drives subscription growth [29] Question: Are the impacts from FX, tariff uncertainty, and LA fires resolved? - Management confirmed that while some impacts persist, they are largely baked into the guidance [32] Question: What is the expected acceleration in currency neutral guidance and data licensing revenue? - Management stated that data licensing revenue remains unchanged, with growth expected from new customers and geographic markets [42] Question: Can you provide an update on litigation regarding copyright protections against AI training? - Management explained ongoing litigation with Stability AI to clarify whether training on copyrighted material requires permission [46] Question: What is the current status of the company's Gen AI offering and client adoption? - Management reported consistent but slow adoption of Gen AI offerings, with revenue still in the single-digit millions [55]