Getty Images Holdings, Inc. (GETY) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.04. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.01, delivering a surprise of -50%.Over the last four quarters, the company has su ...

Litigation and Legal Risks - Getty Images is involved in multiple lawsuits in New York State Supreme Court, alleging breaches of the Warrant Agreement, with potential monetary damages that could materially affect the company's financial condition[73] - Getty Images is suing Stability AI for unauthorized reproduction of approximately 12 million images, seeking monetary damages and injunctive relief[74] - Getty Images is also pursuing legal action against Stability AI in the High Court of England & Wales for copyright infringement, trademark infringement, and other claims, with a trial date set for late June or early July 2025[75][76] - The company has made litigation reserves for the Initial Warrant Litigation but does not currently believe a material loss is probable[77] - Getty Images may be required to pay up to $18.1 million in 2024 as part of a tax appeal process in Canada, with a potential maximum outcome of $26.4 million if the appeal is unsuccessful[80] - The company's financial condition could be materially affected by unfavorable outcomes in ongoing litigation and regulatory proceedings[77] - The company is subject to certain legal proceedings and claims incidental to the operation of its business, but does not anticipate a material adverse impact on its financial results[214] Financial Performance and Metrics - Total revenue for Q3 2024 increased by 4.9% to $240.5 million compared to $229.3 million in Q3 2023[129] - Creative revenue decreased by 7.9% to $133.7 million, driven by declines in Premium Access subscriptions and ALC credit sales[130][131] - Editorial revenue increased by 16.1% to $92.8 million, driven by growth in Sport, News, and Entertainment sectors[131][133] - Other revenue surged by 239.3% to $14.1 million, primarily due to a 5-year Creative content deal with an existing customer[134] - Cost of revenue increased by 5.2% to $64.1 million, maintaining a consistent percentage of total revenue at 26.6%[136] - SG&A expenses rose by 3.0% to $100.1 million, driven by higher travel and staff costs[138][139] - Depreciation expense increased by 7.9% to $14.9 million due to capital investments in software development[141] - Amortization expense decreased by 91.9% to $0.6 million as several intangible assets became fully amortized[143] - Loss on litigation decreased significantly by 97.0% to $3.2 million compared to $106.1 million in Q3 2023[144] - Interest expense increased by 5.4% to $34.0 million due to the maturity of the interest rate swap[147] - Unrealized foreign exchange losses of $28.7 million for Q3 2024, compared to gains of $16.5 million in Q3 2023, driven by EUR fluctuations related to EUR Term Loans[150] - Other non-operating income increased to $1.5 million in Q3 2024 from $1.1 million in Q3 2023, primarily due to higher U.S. interest rates[151] - Income tax expense decreased by $6.6 million to a benefit of $1.2 million in Q3 2024, with an effective tax rate of 33.0% compared to (41.3%) in Q3 2023[154] - Total revenue for the nine months ended September 30, 2024, was $692.0 million, a 0.2% increase from $690.6 million in the same period in 2023[155] - Creative revenue decreased by 5.2% to $410.4 million for the nine months ended September 30, 2024, driven by declines in ALC credit sales and ultra packs[156] - Editorial revenue increased by 4.5% to $255.8 million for the nine months ended September 30, 2024, driven by growth in sports coverage[157] - Other revenue increased by 101.1% to $25.7 million for the nine months ended September 30, 2024, primarily due to data access and licensing deals[158] - Cost of revenue was $187.4 million for the nine months ended September 30, 2024, representing 27.1% of total revenue, a slight decrease from 27.2% in 2023[161] - Depreciation expense increased by 8.9% to $43.9 million for the nine months ended September 30, 2024, due to capital investments in software development[166] - Amortization expense decreased by 92.1% to $1.7 million for the nine months ended September 30, 2024, as several intangible assets became fully amortized[167] - Cash provided by operating activities decreased by 20.6% to $78.6 million for the nine months ended September 30, 2024, compared to $99.0 million for the same period in 2023[182][183] - Cash used in investing activities increased by 37.0% to $57.4 million for the nine months ended September 30, 2024, driven by the acquisition of Motorsport Images LLC and Motorsport.com, Inc.[182][185] - Cash used in financing activities increased by 29.8% to $53.9 million for the nine months ended September 30, 2024, compared to $41.5 million for the same period in 2023[182][186] - Net loss for the three months ended September 30, 2024, was $2.527 million, compared to a net loss of $18.448 million for the same period in 2023[206] - Adjusted EBITDA for the three months ended September 30, 2024, was $80.629 million, with a margin of 33.5%, compared to $80.282 million and a margin of 35.0% for the same period in 2023[206] - Capex for the three months ended September 30, 2024, was $12.482 million, compared to $12.416 million for the same period in 2023[206] - Adjusted EBITDA less capex for the three months ended September 30, 2024, was $68.147 million, compared to $67.866 million for the same period in 2023[206] - Net income margin for the three months ended September 30, 2024, was -1.1%, compared to -8.0% for the same period in 2023[206] Operational and Market Risks - Getty Images faces risks related to the use of AI technologies, including potential harm to its brand, reputation, and intellectual property[86] - The company is subject to risks from international operations, including political, regulatory, and economic uncertainties[87] - Getty Images is exposed to risks from technological interruptions, cybersecurity breaches, and the inability to protect proprietary information[87] - The company qualifies as a "smaller reporting company" due to the market value of its Class A common stock held by non-affiliates being less than $250 million[84] - The company's 5-year interest rate swap with a notional amount of $355.0 million matured on February 19, 2024, and no new interest rate hedging arrangements have been entered into since[208] - There have been no material changes in the company's market risk exposures for the quarter ended September 30, 2024, compared to those discussed in the 2023 Form 10-K[209] Content and Customer Metrics - Getty Images offers over 593 million visual assets, with 11 million new assets added each quarter and 2.7 billion searches annually[97] - The company has almost 720,000 purchasing customers globally, with websites in 23 languages[97] - Getty Images employs over 110 staff photographers and videographers, and distributes content from over 576,000 contributors and 340 premium content partners[98] - Creative content represents 59.3% of revenue for the nine months ended September 30, 2024, with 55.5% generated through annual subscription products[101] - Editorial content represents 37.0% of revenue for the nine months ended September 30, 2024, with 52.5% generated through annual subscription products[101] - Annual subscriptions now comprise approximately 53% of total revenue for the nine months ended September 30, 2024[115] - Contributors generated annual royalties of nearly $220 million for the trailing twelve months ending September 30, 2024[109] - Total purchasing customers decreased by 12.9% to 719 thousand for the last twelve months ended September 30, 2024, compared to 826 thousand for the same period in 2023[191][193] - Total active annual subscribers increased by 47.7% to 298 thousand for the last twelve months ended September 30, 2024, compared to 202 thousand for the same period in 2023[191][195] - Paid download volume decreased by 0.7% to 94 million for the last twelve months ended September 30, 2024, compared to 95 million for the same period in 2023[191][196] - Annual subscriber revenue retention rate decreased to 92.2% for the last twelve months ended September 30, 2024, from 94.5% for the same period in 2023[191][200] - Image collection grew by 7.2% to 563 million as of September 30, 2024, compared to 525 million as of September 30, 2023[191][201] - Video collection grew by 17.2% to 31 million as of September 30, 2024, compared to 27 million as of September 30, 2023[191][201] - Video attachment rate increased to 16.4% for the last twelve months ended September 30, 2024, from 13.7% for the same period in 2023[191][203] Internal Controls and Reporting - The company's disclosure controls and procedures were effective as of September 30, 2024, in recording, processing, summarizing, and reporting required information[212] - There have been no changes in the company's internal controls over financial reporting that materially affected, or are reasonably likely to materially affect, the internal control over financial reporting during the quarter ended September 30, 2024[213] Foreign Currency and Taxation - The company recognized net foreign currency translation adjustment gains of $7.5 million during the nine months ended September 30, 2024[124] - Net unrealized foreign currency transaction losses of $9.8 million were recognized for the nine months ended September 30, 2024[125] - Getty Images may be required to pay up to $18.1 million in 2024 as part of a tax appeal process in Canada, with a potential maximum outcome of $26.4 million if the appeal is unsuccessful[80] AI and Technological Initiatives - Getty Images launched Generative AI by Getty Images and Generative AI by iStock in September 2023 and January 2024, respectively[111] - Getty Images faces risks related to the use of AI technologies, including potential harm to its brand, reputation, and intellectual property[86]

Revenue Performance - Revenue for Q3 2024 was $240.5 million, a 4.9% year-over-year increase, with currency neutral growth of 5.4%[3] - Revenue for Q3 2024 increased to $240.5 million, up 4.9% from $229.3 million in Q3 2023[20] - Updated 2024 revenue guidance is $934 million to $943 million, representing a year-over-year growth of 1.9% to 2.9%[9] - The company raised its 2024 guidance for both revenue and Adjusted EBITDA due to strong performance and foreign currency rates[2] - Total revenue for the nine months ended September 30, 2024, was $691.963 million, a 0.2% increase compared to $690.616 million for the same period in 2023[32] - Creative revenue for the nine months ended September 30, 2024, was $410.445 million, a 5.2% decrease compared to $432.927 million for the same period in 2023[32] - Editorial revenue for the nine months ended September 30, 2024, was $255.827 million, a 4.5% increase compared to $244.911 million for the same period in 2023[32] - Other revenue for the nine months ended September 30, 2024, was $25.691 million, a 101.1% increase compared to $12.778 million for the same period in 2023[32] Subscriber Growth - Annual subscribers grew nearly 50%, with annual subscriber revenue representing 52.4% of total revenue[1] - LTM total active annual subscribers increased by 47.7% to 298,000, compared to 202,000 in the prior year[8] Profitability and Loss - Net loss for Q3 2024 was $2.5 million, compared to a net loss of $18.4 million in Q3 2023, with a net loss margin of 1.1%[3] - Net income for Q3 2024 improved to a loss of $2.5 million, compared to a loss of $18.4 million in Q3 2023[20] - Basic and diluted net loss per share for Q3 2024 was $0.01, compared to $0.05 in Q3 2023[20] - Net income for the nine months ended September 30, 2024, was $14.749 million, compared to a net loss of $19.522 million for the same period in 2023[23] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $80.6 million, up 0.4% year-over-year, with an Adjusted EBITDA margin of 33.5%[3] - Adjusted EBITDA guidance for 2024 is $292 million to $294 million, with a year-over-year decline of 3.1% to 2.5%[9] - Adjusted EBITDA for the nine months ended September 30, 2024, was $219.666 million, compared to $229.292 million for the same period in 2023[28] - Adjusted EBITDA margin for the nine months ended September 30, 2024, was 31.7%, compared to 33.2% for the same period in 2023[28] Cash Flow and Liquidity - Free cash flow for Q3 2024 was $(1.8) million, compared to $12.8 million in the prior year period[4] - Cash and cash equivalents decreased to $109.9 million as of September 30, 2024, from $136.6 million as of December 31, 2023[21] - Free Cash Flow for the nine months ended September 30, 2024, was $36.301 million, compared to $57.123 million for the same period in 2023[30] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $78.624 million, compared to $98.991 million for the same period in 2023[23] - Total liquidity stood at $259.9 million as of September 30, 2024, compared to $286.6 million as of December 31, 2023[33] - Restricted cash was $4.5 million as of September 30, 2024, $4.2 million as of December 31, 2023, and $4.3 million as of September 30, 2023[33] Debt and Financial Position - Total debt as of September 30, 2024, was $1.349 billion, including $300.0 million in senior notes and a term loan balance of $1.049 billion[5] - Long-term debt decreased to $1.35 billion as of September 30, 2024, from $1.4 billion as of December 31, 2023[21] - Term loans outstanding (USD tranche) decreased to $581.8 million as of September 30, 2024, from $637.0 million as of December 31, 2023[33] - Term loans outstanding (EUR tranche) increased to $467.6 million as of September 30, 2024, from $463.6 million as of December 31, 2023[33] - Total term loans outstanding decreased to $1,049.4 million as of September 30, 2024, from $1,100.6 million as of December 31, 2023[33] - Senior notes remained unchanged at $300.0 million as of September 30, 2024, December 31, 2023, and September 30, 2023[33] - Face value of debt is 419 million EUR, converted using the FX spot rate of 1.11 as of September 30, 2024[34] - Revolving credit facility of $150.0 million remains unchanged as of September 30, 2024, December 31, 2023, and September 30, 2023[33] Operating Expenses and Assets - Total operating expenses for Q3 2024 decreased to $183.1 million from $225.4 million in Q3 2023, primarily due to lower litigation costs[20] - Total assets slightly decreased to $2.59 billion as of September 30, 2024, from $2.60 billion as of December 31, 2023[21] - Total liabilities decreased to $1.85 billion as of September 30, 2024, from $1.92 billion as of December 31, 2023[21] - Stockholders' equity increased to $731.3 million as of September 30, 2024, from $681.4 million as of December 31, 2023[22] - Acquisition of property and equipment for the nine months ended September 30, 2024, was $42.323 million, compared to $41.868 million for the same period in 2023[23] Share Information - Weighted-average Class A common shares outstanding increased to 410.5 million in Q3 2024 from 399.7 million in Q3 2023[20]

Revenue Growth of 4.9%, Currency Neutral Growth of 5.4%Corporate, Media, and Agency Customer Categories in GrowthGetty Images, iStock, and Unsplash+ in GrowthAnnual Subscribers Grew Nearly 50%Annual Subscriber Revenue Represents 52.4% of Total RevenueRaises Revenue and Adjusted EBITDA Outlook NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Getty Images Holdings, Inc. (“Getty Images” or the “Company”) (NYSE: GETY), a preeminent global visual content creator and marketplace, today reported financial results for t ...

SAN DIEGO, Oct. 25, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline on Wednesday, October 23, 2024 by Johnson Fistel, LLP, please note that in the fourth paragraph, Friday has been updated to May 31, 2024. The corrected release follows: Johnson Fistel, LLP (www.johnsonfistel.com), a shareholder rights law firm, announces its continuing investigation of whether certain directors and officers of Getty Images Holdings, Inc. (NYSE: GETY) breached their fiduciary duties to Getty Images and i ...

SAN DIEGO, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP (www.johnsonfistel.com), a shareholder rights law firm, announces its continuing investigation of whether certain directors and officers of Getty Images Holdings, Inc. (NYSE: GETY) breached their fiduciary duties to Getty Images and its shareholders. What can I do? If you are a current Getty Images shareholder, you may have legal claims that may be brought on behalf of the company, against the company’s directors and officers. If you wish to d ...

NEW YORK, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Getty Images Holdings, Inc. (“Getty Images”) (NYSE: GETY), a preeminent global visual content creator and marketplace, announced today that the company intends to release its third quarter 2024 results after market close on Thursday, November 7, 2024, followed by a conference call at 4:30 p.m. (Eastern Time) that same day to discuss the company’s results. The conference call can be accessed live over the phone by dialing 1-800-717-1738, or for international caller ...

Investors in Getty Images Holdings, Inc. (GETY) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $25 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

A Media Snippet accompanying this announcement is available by clicking on this link. NEW YORK, Sept. 20, 2024 (GLOBE NEWSWIRE) -- As text to image generative AI continues to gain momentum, the ability to craft effective prompts—concise, creative instructions for AI tools—is emerging as a key advantage for businesses looking to leverage AI for their visual content. While AI generated images have opened new possibilities to create unique visuals, the difference between good and great often comes down to the ...

NEW YORK, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Getty Images (NYSE: GETY), a preeminent global visual content creator and marketplace, today announced its award winning photographers, editors and operations staff will capture stunning imagery from the Paris 2024 Paralympic Games. As the Official Photographic Agency of the International Paralympic Committee (IPC), Getty Images will use innovative and proprietary technology to deliver thousands of images from the Opening Ceremony on August 28th to the Closing Cer ...