Core Points - Getty Images has been named the Official Photography Partner of Major League Soccer (MLS) [2][3] - The partnership will involve editing, distributing, and licensing MLS-owned imagery for editorial and commercial uses [3][4] - This multi-year exclusive partnership aims to enhance the quality of sports content for media, licensees, and fans [4][5] Company Overview - Getty Images is recognized for its global scale, technology, innovation, and quality of service in the visual content industry [4] - The company has a significant presence in the soccer market, recently adding the National Women's Soccer League to its portfolio [5] Industry Context - MLS is experiencing unprecedented growth, highlighted by record-setting attendance, merchandise sales, and social media engagement [6] - The 2025 season marks the 30th anniversary of MLS, with the debut of its 30th club, San Diego FC [6][7] - The partnership with Getty Images is expected to document and capture significant moments in MLS history [7] Strategic Importance - The collaboration is positioned to provide convenient access to high-quality soccer imagery across North America [5] - Getty Images has a long history of partnerships with major sports leagues and governing bodies, covering over 50,000 sports events annually [7]

Getty Images Holdings, Inc. GETY shares are trading higher on Tuesday.On Monday, the firm released its fourth-quarter results after the closing bell when it reported quarterly earnings of six cents per share, which beat the analyst consensus estimate of four cents. Quarterly revenue came in at $247.3 million, which beat the analyst consensus estimate of $246.31 million.The company sees fiscal 2025 revenue in a range of $918 million to $955 million and adjusted EBITDA in a range of $272 million to $290 milli ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue grew to $247.3 million, representing a 9.5% increase or 8.5% on a currency-neutral basis [9][18] - For the full year 2024, revenue was $939.3 million, an increase of 2.5% on both reported and currency-neutral basis [10][18] - Adjusted EBITDA for Q4 was $80.6 million, up 11.7% year-over-year, with an adjusted EBITDA margin of 32.6%, up from 31.9% in Q4 2023 [28][29] - Full year adjusted EBITDA was $300 million, with a margin of 32% compared to 32.9% in 2023 [29] Business Line Data and Key Metrics Changes - Annual subscription revenue accounted for 54.9% of total revenue in Q4, growing approximately 11% on both reported and currency-neutral basis [19] - Paid downloads decreased slightly to $93 million, while video attachment rate increased to 16.5% from 14.1% in Q4 2023 [21] - Creative revenue was $142.4 million, down 2.4% year-on-year, primarily due to a shift in download consumption from creative to editorial [22][23] - Editorial revenue increased to $90.1 million, up 19% year-on-year, driven by major events [21] Market Data and Key Metrics Changes - The Americas region saw a revenue increase of 15.9% in Q4 on a currency-neutral basis, while APAC was up 0.4% and EMEA down just under 1% [18] - The corporate segment remains the largest growth opportunity, while Agency is expected to stabilize without significant growth [60] Company Strategy and Development Direction - The merger with Shutterstock is viewed as a transformational opportunity, aimed at creating superior value for customers and shareholders [8] - Continued investment in core assets and partnerships, along with the launch of new AI capabilities, is part of the strategy to enhance customer value [14][15] - The company aims to reduce leverage and increase margins and cash flow through the merger [15][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future despite challenges such as the Los Angeles fires impacting production [15] - The company anticipates revenue for 2025 to be between $918 million and $955 million, reflecting a slight decline to modest growth [40] - Adjusted EBITDA for 2025 is expected to be between $272 million and $290 million, indicating a potential decline year-over-year [41] Other Important Information - Free cash flow for Q4 was $24.6 million, an increase from $18.6 million in Q4 2023, while full year free cash flow was $60.9 million, down from $75.7 million in 2023 [32] - The company completed a refinancing of term loans, extending maturities to 2030, which includes $1 billion of term loans outstanding [36][37] Q&A Session Summary Question: Update on generative AI consumer uptake and monetization - Management noted that AI service uptake is growing modestly, primarily among existing customers using technology to modify imagery [48][49] Question: Factors driving Q4 outperformance relative to guidance - The strong Q4 performance was attributed to a robust top line, improved gross margins, and recovery in production post-strikes [51][53] Question: Outlook for 2025 revenue growth by segment and data licensing revenue - Management does not provide specific segment guidance but expects continued stabilization in Agency and growth in Corporate [60][62]

Financial Data and Key Metrics Changes - In Q4 2024, revenue grew to $247.3 million, representing a 9.5% increase or 8.5% on a currency-neutral basis [9][18] - For the full year 2024, revenue was $939.3 million, an increase of 2.5% on both reported and currency-neutral basis [10][18] - Adjusted EBITDA for Q4 was $80.6 million, up 11.7% year-over-year, with an adjusted EBITDA margin of 32.6%, an increase from 31.9% in Q4 2023 [28][29] - Full year adjusted EBITDA was $300.3 million, down 0.4% reported and 0.3% on a currency-neutral basis, with a margin of 32% compared to 32.9% in 2023 [29] Business Line Data and Key Metrics Changes - Annual subscription revenue accounted for 54.9% of total revenue in Q4, growing approximately 11% on both reported and currency-neutral basis [19] - Paid downloads decreased slightly to $93 million, while video attachment rate increased to 16.5% from 14.1% in Q4 2023 [21] - Editorial revenue was $90.1 million, up 19% year-on-year, driven by demand for editorial content during major events [22] - Creative revenue was $142.4 million, down 2.4% year-on-year, primarily due to a shift in consumption from creative to editorial content [23] Market Data and Key Metrics Changes - The Americas region saw a revenue increase of 15.9% in Q4 on a currency-neutral basis, while APAC was up 0.4% and EMEA down just under 1% [18] - The company added 78,000 active annual subscribers, reaching a total of 314,000, with 54% being new customers [19] Company Strategy and Development Direction - The merger with Shutterstock is viewed as a transformational opportunity, aimed at creating a strong financial foundation and enhancing value for customers and shareholders [8] - The company continues to invest in core assets and evolve its offerings, including the launch of natural language search and AI capabilities [14][15] - Focus remains on delivering sustainable customer value and increasing margins and cash flow through the merger [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future despite challenges such as the Los Angeles fires impacting operations [15] - The company anticipates revenue for 2025 to be between $918 million and $955 million, reflecting a slight decline to modest growth year-over-year [40] - Adjusted EBITDA for 2025 is expected to be between $272 million and $290 million, down 9.5% to 3.3% year-over-year [41] Other Important Information - Free cash flow for Q4 was $24.6 million, an increase from $18.6 million in Q4 2023, while full year free cash flow was $60.9 million, down from $75.7 million in 2023 [32] - The company finished 2024 with $121.2 million in cash and total debt outstanding of $1.3 billion, with a net leverage of 3.97 times, down from 4.2 times at year-end 2023 [33][34][35] Q&A Session Summary Question: Update on generative AI uptake and monetization - Management noted that AI service uptake is growing at a modest pace, primarily among existing customers using the technology to modify imagery [48][49] Question: Factors driving Q4 outperformance relative to guidance - The outperformance was attributed to strong top-line growth, favorable gross margin, and recovery in production post-strikes [51][53] Question: Outlook for 2025 revenue growth by segment and data licensing revenue - Management does not provide specific segment guidance but expects continued stabilization in Agency and growth in Corporate, with modest data licensing revenue [60][62]

Financial Performance - Getty Images Holdings, Inc. reported a quarterly loss of $0.01 per share, missing the Zacks Consensus Estimate of $0.04, and a decline from earnings of $0.09 per share a year ago, representing an earnings surprise of -125% [1] - The company posted revenues of $247.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.32%, and an increase from year-ago revenues of $225.94 million [2] - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $235.43 million, and for the current fiscal year, it is $0.14 on revenues of $951.36 million [7] Stock Performance - Shares of Getty Images Holdings, Inc. have lost about 5.6% since the beginning of the year, compared to a decline of -4.1% for the S&P 500 [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Outlook - The Internet - Software industry, to which Getty Images belongs, is currently in the top 48% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by a factor of more than 2 to 1 [8]

Revenue and Subscription Growth - Getty Images' annual subscriptions represented more than half of total revenue as of December 31, 2024, indicating a strong shift towards subscription products[30] - For the year ended December 31, 2024, Creative content accounted for 58.9% of revenue, with 56.0% generated through annual subscription products[30] - Editorial content represented 36.8% of revenue for the same period, with 53.7% derived from annual subscription products[30] - The company reported a total of 717,000 purchasing customers for the year ended December 31, 2024, a decrease from 799,000 in 2023[407] - Total active annual subscribers increased to 314,000 in 2024, up from 236,000 in 2023, indicating strong growth in subscription services[407] - The LTM annual subscriber revenue retention rate improved to 92.9% in 2024, compared to 92.4% in 2023[407] - Total purchasing customers decreased to 717 thousand for the LTM ended December 31, 2024, down from 799 thousand in 2023 and 835 thousand in 2022, attributed to a shift towards more committed annual subscription products[409] - Total active annual subscribers increased to 314 thousand for the LTM ended December 31, 2024, compared to 236 thousand in 2023 and 129 thousand in 2022, driven by expanded e-commerce subscriptions[411] - Annual subscriber revenue retention rate was 92.9% for the LTM ended December 31, 2024, compared to the prior period, indicating strong retention of revenue from annual subscription customers[414] - The shift to more committed solutions positively impacted annual revenue per purchasing customer, which grew by 14.2% to $1,310 for the LTM ended December 31, 2024[409] Customer Growth and Engagement - The company added more than 385,000 new customers during the year ended December 31, 2024, demonstrating strong customer growth[34] - Marketing efficiency improved, with new customers per million dollars of digital marketing spend increasing by over 30% in 2024 compared to 2019[38] - The video attachment rate increased to 16.5% for the year ended December 31, 2024, up from 14.1% in 2023[44] - The LTM video attachment rate increased to 16.5% in 2024, up from 14.1% in 2023, indicating higher engagement with video content[407] Content and Product Offerings - The company launched Generative AI by Getty Images in partnership with NVIDIA in fall 2023, designed to be a commercially safe AI image generation service[27] - The company launched Generative AI services in 2023 and early 2024, leveraging partnerships with AI innovators to enhance image and video generation and editing capabilities[49] - The acquisition of Unsplash has strengthened the company's position in the creative long-tail economy, attracting over 16 million visitors per month and averaging more than 96 million monthly image downloads[48] - As of December 31, 2024, the company owned or licensed over 604 million images and videos, with nearly 70% of revenue generated from exclusive content[52] - The company has a total of 572 million image collections and 32 million video collections as of December 31, 2024, reflecting growth in content offerings[407] - Image collection grew by 7% to 572 thousand images as of December 31, 2024, from 535 thousand in 2023, while video collection increased by 17% to 32 million videos[416] Financial Performance - Adjusted EBITDA for the year ended December 31, 2024, was $300.3 million, compared to $301.4 million in 2023 and $305.0 million in 2022[422] - Net income for the year ended December 31, 2024, was $39.5 million, an increase from $19.6 million in 2023, compared to a net loss of $77.6 million in 2022[422] - Adjusted EBITDA margin for the year ended December 31, 2024, was 32.0%, slightly down from 32.9% in 2023[422] Operational and Strategic Insights - The corporate market contributed approximately 56% of revenue for the year ended December 31, 2024, highlighting its importance to growth[33] - The company has successfully reduced customer acquisition costs by over 20% since 2019, bringing it down to $133 in 2024[38] - The company has a successful track record of executing and integrating strategic acquisitions to enter adjacent markets and accelerate growth[50] - The company continues to focus on subscription offerings to provide comprehensive content solutions, with a strong pipeline of new customers[411] Diversity and Workforce - The company had almost 1,700 employees as of December 31, 2024, with a diverse workforce representing over 32 countries[60] - The company is committed to a culture of diversity and inclusion, ensuring equal opportunities and respect for all employees[62] Cash Flow and Financial Obligations - For the year ended December 31, 2024, cash provided by operating activities was $118.3 million, a decrease of 10.8% from $132.7 million in 2023[376] - Cash used in investing activities increased to $72.5 million in 2024 from $57.0 million in 2023, primarily due to the acquisition of Motorsport Images LLC and Motorsport.com, Inc.[380] - Cash used in financing activities was $56.2 million in 2024, compared to $45.4 million in 2023, reflecting debt issuance costs and principal payments on Term Loans[381] - The Business Combination resulted in gross proceeds of approximately $864.0 million, which included a cash payment of $615.0 million to redeem preferred stock and $300.0 million to repay a portion of outstanding indebtedness[373] - The company expects to fund its ordinary course operating activities from existing cash and cash flows from operations for at least the next 12 months[372] - The net cash provided by operating activities decreased by $30.4 million from 2022 to 2023, primarily due to increased interest expenses[382] - The company’s liquidity could be adversely affected by pending tax audits and legal proceedings, which may result in tax liabilities exceeding reserved amounts[374] - The company’s cash flows from investing activities are primarily related to property and equipment purchases and internal software development[379] - As of December 31, 2024, total contractual cash obligations amount to $1,658,217,000, with long-term indebtedness accounting for $1,481,680,000[385] - The company has no material off-balance sheet arrangements as of December 31, 2024, except for operating leases[387] Economic and Market Conditions - Management believes that inflation has not materially affected the business, but acknowledges potential risks if significant inflationary pressures arise[388] - The company’s cash flows are subject to fluctuations due to economic conditions and customer behavior, impacting revenue from subscription plans[72]

Revenue Performance - Q4 2024 revenue increased by 9.5% year over year to $247.3 million, with currency neutral growth of 8.5%[6] - Annual subscriber revenue grew by 11.8% in Q4 2024, representing 54.9% of total revenue, up from 53.8% in Q4 2023[5] - Full year 2024 revenue increased by 2.5% to $939.3 million, with creative revenue down 4.5% and editorial revenue up 7.9% year over year[6] - Revenue for Q4 2024 was $247.3 million, an increase of 9.5% from $225.9 million in Q4 2023[26] - Total revenue for the twelve months ended December 31, 2024, reached $939.3 million, up from $916.6 million in the previous year, reflecting a growth of 2.5%[26] - Total revenue for the year ended December 31, 2024, reached $939,287,000, up 2.5% from $916,555,000 in 2023[40] - The Creative segment generated $552,828,000 in revenue for the year, a decrease of 4.5% from $578,739,000 in 2023[40] - The Editorial segment saw revenue increase by 7.9% to $345,932,000 for the year ended December 31, 2024, compared to $320,643,000 in 2023[40] Profitability - Net income for Q4 2024 was $24.7 million, down from $39.1 million in Q4 2023, with a net income margin of 10.0%[6] - Adjusted EBITDA for Q4 2024 was $80.6 million, up 11.7% year over year, with an adjusted EBITDA margin of 32.6%[6] - Net income attributable to Getty Images Holdings, Inc. for Q4 2024 was $24.4 million, down from $39.1 million in Q4 2023, a decrease of 37.5%[26] - Net income for the year ended December 31, 2024, was $39,472,000, a significant increase from $19,577,000 in 2023, representing a growth of 101.5%[30] - Adjusted EBITDA for the year ended December 31, 2024, was $300,271,000, slightly down from $301,442,000 in 2023, indicating a margin of 32.0%[35] - Free Cash Flow for the year ended December 31, 2024, was $60,900,000, compared to $75,700,000 in 2023, reflecting a decrease of 19.6%[38] Customer Metrics - Total purchasing customers decreased by 10.3% to 717,000, while active annual subscribers increased by 33.4% to 314,000[11] Guidance and Future Outlook - The company expects 2025 revenue guidance between $918 million and $955 million, reflecting a year-over-year decline of 2.3% to growth of 1.6%[13] - The company highlighted risks related to competition, technology adaptation, and international market expansion in its forward-looking statements[21] Debt and Liquidity - Total debt as of December 31, 2024, was $1.314 billion, including $300 million in senior notes and a term loan balance of $1.014 billion[12] - The company has $150 million available through its revolver, resulting in total available liquidity of $271.2 million[12] - The total balance of term loans outstanding was $1,014,400,000 as of December 31, 2024, down from $1,100,600,000 in 2023[41] Assets and Liabilities - The company reported a total of $1.51 billion in goodwill as of December 31, 2024, slightly up from $1.50 billion in 2023[28] - Total assets decreased to $2.56 billion in 2024 from $2.60 billion in 2023, a decline of 1.5%[28] - Total liabilities decreased to $1.85 billion in 2024 from $1.92 billion in 2023, a reduction of 3.6%[28] - The company’s cash and cash equivalents decreased to $121.2 million in 2024 from $136.6 million in 2023, a decline of 11.0%[28] - Cash and cash equivalents at the end of the period were $125,304,000, down from $140,850,000 at the end of 2023[30] Operating Expenses - Operating expenses for Q4 2024 totaled $211.4 million, compared to $185.1 million in Q4 2023, representing an increase of 14.2%[26] - The company reported a net cash provided by operating activities of $118,320,000 for the year, down from $132,716,000 in 2023[30] - The company incurred $57,450,000 in capital expenditures for the year ended December 31, 2024, compared to $56,999,000 in 2023[30] Merger Announcement - Getty Images announced a merger agreement with Shutterstock on January 7, 2025, to create a premier visual content company[14] Shareholder Information - The weighted-average Class A common shares outstanding increased to 411.4 million in Q4 2024 from 403.6 million in Q4 2023[26]

Core Viewpoint - Getty Images Holdings, Inc. reported a return to full-year growth in 2024, driven by premium content and strong partnerships, while focusing on sustainable customer value and investment in core assets [2][19]. Financial Performance Summary - Fourth Quarter 2024 revenue reached $247.3 million, marking a 9.5% increase year-over-year and an 8.5% increase on a currency-neutral basis [6][7]. - Annual subscriber revenue grew by 11.8% in Q4, representing 54.9% of total revenue, up from 53.8% in Q4 2023 [6][7]. - Full-year 2024 revenue increased by 2.5% to $939.3 million, with creative revenue declining by 4.5% and editorial revenue increasing by 7.9% year-over-year [6][7]. Profitability Metrics - Net income for Q4 2024 was $24.7 million, down from $39.1 million in Q4 2023, with a net income margin of 10.0% compared to 17.3% in the prior year [7][30]. - Adjusted EBITDA for Q4 2024 was $80.6 million, up 11.7% year-over-year, with an adjusted EBITDA margin of 32.6%, an increase from 31.9% in Q4 2023 [7][43]. Liquidity and Balance Sheet - As of December 31, 2024, the company had an ending cash balance of $121.2 million, down from $136.6 million a year earlier, with total debt amounting to $1.314 billion [16][34]. - The company has $150.0 million available through its undrawn Revolver, resulting in total available liquidity of $271.2 million [16]. Key Performance Indicators (KPIs) - Total purchasing customers decreased by 10.3% to 717,000, while active annual subscribers increased by 33.4% to 314,000 [11][12]. - The annual subscriber revenue retention rate improved to 92.9%, up from 92.4% in 2023 [12]. Financial Outlook for 2025 - The company projects revenue for 2025 to be between $918 million and $955 million, reflecting a year-over-year decline of 2.3% to an increase of 1.6% [18]. - Adjusted EBITDA is expected to range from $272 million to $290 million, indicating a year-over-year decline of 9.5% to 3.3% [18]. Merger Agreement - On January 7, 2025, Getty Images announced a merger agreement with Shutterstock, aiming to create a premier visual content company, pending regulatory approvals and stockholder consent [19].

Core Insights - Getty Images has been named the Exclusive Commercial Photography and Imagery Licensing Partner of the National Women's Soccer League (NWSL) [1][2] - The partnership will cover all upcoming matches and events, including the regular season, playoffs, and championship, providing exclusive access to various on and off-the-pitch moments [2][5] - Getty Images aims to enhance the visibility of women's sports through high-quality imagery and storytelling, leveraging its extensive experience and distribution platform [3][4][5] Company Overview - Getty Images has over 30 years of experience in sports photography and is recognized for its creativity and service excellence [3] - The company is the official photographer or photographic partner to 125 leading sports governing bodies, leagues, and clubs globally, covering over 50,000 sports events annually [5] Industry Context - There is a growing interest in women's sports, necessitating intentional and inclusive visuals to maintain audience engagement [4] - Getty Images' VisualGPS research indicates that visuals are increasingly vital in sports storytelling, particularly in addressing the visibility gap for women and girls in sports [4]

Core Insights - Getty Images has been named the Exclusive Commercial Photography and Imagery Licensing Partner of the National Women's Soccer League (NWSL) [1] - The partnership will provide high-quality imagery from all upcoming NWSL matches and events, including the regular season, playoffs, and championship [2] - Getty Images aims to enhance the visibility of women's sports through intentional and inclusive visuals, addressing the visibility gap in sports storytelling [4] Company Overview - Getty Images has over 30 years of experience in sports photography and is recognized for its creativity and service excellence [3] - The company partners with 125 leading sports governing bodies, leagues, and clubs globally, covering over 50,000 sports events annually [5] Industry Context - The NWSL regular season is set to begin on March 14, 2025, with all 14 teams participating [1] - The partnership is expected to elevate the visibility of women's professional soccer and showcase the talent of NWSL athletes [5]