Getty Images Holdings, Inc. (NYSE:GETY) Q3 2023 Earnings Conference Call November 14, 2023 5:00 PM ET Company Participants Steven Kanner - VP, IR and Treasury Craig Peters - CEO Jen Leyden - CFO Conference Call Participants Ron Josey - Citi Danny Pfeiffer - JPMorgan Mark Zgutowicz - The Benchmark Company Tim Nollen - Macquarie Operator Good afternoon, and welcome to Getty Images Third Quarter of 2023 Earnings Call. Today's call is being recorded. We have allocated one hour for prepared remarks and Q&A. At t ...

Revenue and Subscriptions - Total purchasing customers decreased to 826,000 from 837,000 year-over-year, while total active annual subscribers increased by approximately 88% to 202,000[120]. - Creative content represented 62.7% of revenue for the nine months ended September 30, 2023, with 52.9% generated through annual subscription products[106]. - Editorial content accounted for 35.5% of revenue, with 52.9% of that revenue also coming from annual subscription products[107]. - Revenue for the three months ended September 30, 2023, was $229.3 million, a decrease of 0.5% from $230.5 million in the same period in 2022[138]. - Revenue from iStock annual subscriptions increased by $3.0 million, and Getty Images annual subscriptions increased by $8.5 million for the three months ended September 30, 2023[140]. - Revenue from Creative products decreased by 1.7% to $432.9 million, with significant declines in Getty Images Stills and Video ($17.3 million) and iStock subscriptions ($10.8 million)[157]. - For the nine months ended September 30, 2023, total revenue was $690.6 million, a decrease of 0.6% compared to $694.8 million in the same period in 2022[156]. - Revenue from Other products increased by 22.2% to $12.8 million, driven by music licensing ($0.3 million), data licensing ($0.2 million), and digital asset management services ($0.2 million)[142]. Costs and Expenses - Cost of revenue for the three months ended September 30, 2023, was $60.9 million, down 4.8% from $64.0 million in the same period in 2022[137]. - Selling, general and administrative expenses increased by 6.2% to $97.3 million for the three months ended September 30, 2023, compared to $91.6 million in the same period in 2022[137]. - SG&A expenses for the nine months ended September 30, 2023, increased by $20.7 million or 7.4%, with a notable increase in staff costs driven by equity-based compensation[162]. - Selling, general and administrative (SG&A) expenses increased by $5.7 million or 6.2% for the three months ended September 30, 2023, with a notable increase in professional fees related to ongoing litigation[144]. Net Loss and Financial Performance - Net loss for the three months ended September 30, 2023, was $18.4 million, compared to a net loss of $118.1 million in the same period in 2022, a decrease of $99.7 million[137]. - The company recorded a net loss of $19.5 million for the nine months ended September 30, 2023, adjusted for noncash expenses of $100.4 million[189]. Cash Flow and Liquidity - Net cash provided by operating activities was $99.0 million for the nine months ended September 30, 2023, a decrease of 23.4% from $129.2 million in the prior year[189]. - Cash used in financing activities was $41.5 million for the nine months ended September 30, 2023, significantly lower than $178.6 million in the same period of 2022[191]. - The company had cash and cash equivalents of $113.5 million as of September 30, 2023, compared to $97.9 million at the end of 2022[180]. - 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[185]. Business Combination and Financing - The company issued 66 million shares of Class A common stock for gross proceeds of $660 million as part of the Business Combination[117]. - The Business Combination resulted in gross proceeds of approximately $864.2 million, significantly reducing the company's balance sheet obligations[186]. - The Business Combination resulted in aggregate gross proceeds of approximately $864.2 million, with $615.0 million used for redeeming Redeemable Preferred Stock and $300.0 million for repaying a portion of USD Term Loans, leading to a total reduction of approximately $1.1 billion in balance sheet obligations[186]. - The company increased and extended its revolving credit facility to $150.0 million, which expires on May 4, 2028[180]. Legal and Litigation Matters - The Company recognized a loss on litigation of $106.1 million for the three months ended September 30, 2023, which includes summary judgment amounts and associated legal fees[146]. - The company recognized a loss on litigation of $60.0 million, which represents the limit of its insurance coverage for ongoing legal matters[181]. - The company recognizes litigation reserves when a loss is probable and material, with estimates subject to change based on new information[215]. - The company recognizes recoveries of losses on litigation when it is probable that such recoveries will be received from third-party insurance carriers[216]. Tax and Foreign Exchange - The company's income tax expense decreased by $27.5 million to $11.5 million for the nine months ended September 30, 2023, from $39.0 million in the prior year, with an effective income tax rate of (143.9)%[173]. - The effective tax rate is subject to significant variation due to factors such as geographical mix of pre-tax earnings and potential outcomes of tax audits[202]. - The company recognized unrealized foreign exchange gains of $2.4 million for the nine months ended September 30, 2023, compared to $71.9 million in the same period in 2022[169]. - The company recognized net foreign currency transaction gains of $2.4 million for the nine months ended September 30, 2023, compared to $71.9 million for the same period in 2022[213]. Content and Product Development - Getty Images had over 551 million visual assets available, adding more than 10 million new assets each quarter, with 2.8 billion searches annually[100]. - The image collection increased to 525 million from 484 million year-over-year, while the video collection grew to 27 million from 23 million[120]. - The company launched Unsplash+ in Q4 2022, contributing to the growth in annual subscribers[120]. - The company launched Generative AI by Getty Images in September 2023, a tool trained exclusively on Getty Images' content[126]. - The video attachment rate improved to 13.7% from 12.7% year-over-year[120]. - The video attachment rate increased from the LTM period ended September 30, 2022, to the period ended September 30, 2023, reflecting higher customer engagement with video content[125]. Revenue Recognition - Revenue is primarily derived from licensing rights to digital content, with a significant portion generated through subscription-based and credit-based sales[204]. - The company recognizes revenue gross of contributor royalties, as it is the principal in the transaction, with approximately 3% of total revenues coming from third-party delegates[206]. - Revenue for digital content licenses is recognized when content is downloaded, with estimates for unused licenses impacting revenue recognition timing[210]. - Revenue associated with unused licenses is recognized throughout the subscription or credit period based on historical download activity[210]. - The company applies a five-step approach to revenue recognition, ensuring that performance obligations are identified and transaction prices allocated accordingly[208]. - The company assesses product offerings at contract inception to identify distinct performance obligations for revenue recognition[209]. Financial Obligations - As of December 31, 2022, total contractual cash obligations amounted to $2,111,644,000, with long-term indebtedness accounting for $1,869,175,000[192]. - Operating lease obligations were reported at $71,206,000, while minimum royalty guarantee payments to content suppliers totaled $158,253,000[192]. - The company has no material letters of credit outstanding or other off-balance sheet arrangements as of September 30, 2023[195]. - The company has historically maintained predictable capital expenditures, primarily related to content creation and software development, with a significant portion being discretionary and growth-related[194].

Core Insights - Getty Images has released a study indicating a significant increase in social media content consumption in the Asia-Pacific (APAC) region, with a reported 10% rise in engagement [1] Group 1: Company Overview - Getty Images is focusing on the evolving landscape of social media content consumption, particularly in the APAC region, highlighting the growing importance of visual content [1] - The company utilizes its VisualGPS research to analyze trends and consumer behavior in the digital space [1] Group 2: Industry Trends - The study reveals that APAC consumers are increasingly engaging with visual content, which is crucial for brands aiming to connect with their audience [1] - There is a notable shift in how consumers perceive and interact with visual content, suggesting a need for brands to adapt their strategies accordingly [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to GETTY IMAGES HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or ...

Getty Images Holdings, Inc. (NYSE:GETY) Q2 2023 Results Conference Call August 14, 2023 5:00 PM ET Company Participants Steven Kanner - VP, IR and Treasury Craig Peters - CEO Jen Leyden - CFO Conference Call Participants Mark Zgutowicz - The Benchmark Company Cory Carpenter - JPMorgan Tim Nollen - Macquarie Brett Feldman - Goldman Sachs Operator Good afternoon, and welcome to Getty Images Second Quarter 2023 Earnings Conference Call. Today’s call is being recorded. . We have allocated one hour for prepared ...

Getty Images Holdings, Inc. (NYSE:GETY) Q1 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants Steven Kanner – Vice President-Investor Relations and Treasury Craig Peters – Chief Executive Officer Jen Leyden – Chief Financial Officer Conference Call Participants Ron Josey – Citi Mark Zgutowicz – Benchmark Company Tim Nollen – Macquarie Brett Feldman – Goldman Sachs Cory Carpenter – JPMorgan Operator Good afternoon, and welcome to Getty Images First Quarter 2023 Earnings Conference Cal ...

Company Overview - Getty Images had over 534 million assets available, adding 8-10 million new assets each quarter and conducting over 2.7 billion searches annually[87]. - The company maintains one of the largest privately-owned photographic archives with over 135 million images[88]. - Unsplash launched Unsplash+, an unlimited paid subscription, providing access to unique content in an ad-free environment[97]. Customer Metrics - The company reported 829,000 total purchasing customers for the twelve months ended March 31, 2023, a slight increase from 825,000 in the previous year[108]. - Total active annual subscribers increased to 150,000 for the twelve months ended March 31, 2023, up from 81,000 in the prior year[108]. - Annual subscriber base grew to 135 thousand, reflecting a 66% increase from March 31, 2022[109]. - Paid download volume increased in the LTM ended March 31, 2023, compared to the prior year, indicating continued customer engagement[110]. - Annual subscriber revenue retention rate was 99.8% for the period ended March 31, 2023, compared to the prior year, although it decreased from 99.0% under legacy reporting[111]. Revenue Breakdown - Total revenue for the three months ended March 31, 2023, was $235.6 million, an increase of 2.0% from $230.978 million in the same period of 2022[124]. - Creative content represented 62.2% of revenue for the three months ended March 31, 2023, with 49.4% generated through annual subscription products[92]. - Editorial content accounted for 35.9% of revenue for the same period, with 53.4% derived from annual subscription products[93]. - Editorial revenue increased by 7.5% (11.3% CN) for the three months ended March 31, 2023, driven by higher assignments and subscription offerings[129]. - Other revenue, including music licensing and data licensing, increased by 18.1% (22.4% CN) for the three months ended March 31, 2023[130]. Financial Performance - Net income for the three months ended March 31, 2023, was $3.2 million, a decrease of 87% from $25.1 million in the same period of 2022[124]. - Adjusted EBITDA for Q1 2023 was $76.1 million, slightly down from $77.7 million in Q1 2022, with an adjusted EBITDA margin of 32.3%[144]. - Cash provided by operating activities decreased by 35.3% to $31.9 million in Q1 2023 from $49.4 million in Q1 2022[155]. - Interest expense for Q1 2023 was $30.5 million, up from $29.6 million in Q1 2022, primarily due to term loans and senior notes[135]. - Fair value adjustment losses for swaps and foreign currency exchange contracts were $2.1 million in Q1 2023, compared to gains of $12.1 million in Q1 2022[136]. Business Combination - Getty Images completed a Business Combination that resulted in gross proceeds of approximately $864.2 million, which included $660 million from the issuance of Class A Common Shares[103]. - The Business Combination resulted in aggregate gross proceeds of approximately $864.2 million, with $615.0 million used for redeeming Redeemable Preferred Stock and $300.0 million for repaying a portion of outstanding indebtedness[150]. - The Business Combination significantly reduced balance sheet obligations by about $1.1 billion[150]. Liquidity and Obligations - Total liquidity as of March 31, 2023, included cash and cash equivalents of $116.8 million and availability under the revolving credit facility of $80.0 million[146]. - The company expects to fund operations and planned investing activities for at least the next 12 months from existing cash and cash flows[149]. - Contractual obligations total approximately $2.1 billion, including long-term indebtedness of $1.9 billion[158]. Foreign Currency and Impairment - The company recognized net foreign currency transaction losses of $10.9 million for the three months ended March 31, 2023, compared to gains of $7.0 million for the same period in 2022[184]. - The company evaluates goodwill for impairment annually, with the last assessment indicating significant headroom in excess of 100%[187]. - The company maintains an allowance for doubtful accounts based on historical losses and specific account analysis, with no significant impairments reported during the periods presented[186]. Accounting Policies - Revenue is recognized gross of contributor royalties, with approximately 3% of total revenues for the three months ended March 31, 2023, generated through third-party delegates[175]. - Identifiable intangible assets are amortized on a straight-line basis over their estimated useful lives, with no significant impairments reported during the periods presented[188]. - The company uses the Black-Scholes option pricing model to determine the fair value of stock options, with estimates involving inherent uncertainties[194]. - The Company computes income taxes and accruals for uncertain tax positions under the asset and liability method in accordance with ASC 740[203].

Getty Images Holdings, Inc. (NYSE:GETY) Q4 2022 Earnings Conference Call March 13, 2023 5:00 PM ET Company Participants Steven Kanner - Vice President of Investor Relations & Treasury Craig Peters - Chief Executive Officer Jennifer Leyden - Chief Financial Officer Conference Call Participants Mark Zgutowicz - Benchmark Company Tim Nollen - Macquarie Ron Josey - Citi Brett Feldman - Goldman Sachs Operator Good afternoon and welcome to the Getty Images Fourth Quarter and Full Year 2022 Earnings Conference Cal ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-41453 GETTY IMAGES HOLDINGS, INC. (Exact name of registrant as specified in its charter) | Delaware 87-3764229 | ...

Financial Data and Key Metrics Changes - Reported revenues for Q3 2022 were $230.5 million, down 2.8% year-on-year, but up 2.8% on a currency-neutral basis [8] - Adjusted EBITDA was $77.7 million, down 4.8% year-on-year, but up 2.3% on a currency-neutral basis [8][35] - Annual subscription revenue as a percentage of total revenue grew to 49.4%, up from 47.1% in Q3 2021 [28] - Free cash flow was $33.2 million in Q3 compared to $31.2 million in Q3 2021 [37] Business Line Data and Key Metrics Changes - Total purchasing customers increased to 837,000, a 9.3% year-on-year increase [23] - Net total active annual subscribers rose to 107,000, up approximately 53% year-on-year [23] - Paid download volume increased by approximately 7.4% to 94 million [24] - Video attachment rate increased to 12.7%, up from 12.1% in Q3 2021 [25] Market Data and Key Metrics Changes - Revenue grew across all major geographies on a currency-neutral basis, with year-on-year growth of 2.8% in the Americas, 0.7% in EMEA, and 9.2% in APAC [33] - Creative revenue was $145.2 million, down 2.1% year-on-year but up 3.2% on a currency-neutral basis [29] - Editorial revenue was $81.8 million, down 3% year-on-year but up 3.1% on a currency-neutral basis [32] Company Strategy and Development Direction - The company is focusing on driving customer growth through annual subscriptions and enhancing the value of its offerings [9] - Multi-year agreements with major companies like Amazon and Microsoft were announced, indicating a strategic focus on partnerships [12] - The launch of Unsplash+ aims to expand the customer base and service content needs [15] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic headwinds, particularly in Europe, but emphasized the countercyclical nature of their offerings [11] - The company expects ongoing foreign currency headwinds to impact results for the remainder of 2022 [26] - Guidance for full-year 2022 remains unchanged, with currency-neutral revenues expected between $955 million and $980 million [41] Other Important Information - The company announced it would not accept AI-generated content on its platform due to copyright concerns [17] - Total SG&A expense was $91.6 million, down $2.9 million year-on-year [34] - The company ended the quarter with $71.9 million in cash, a significant decrease due to a $300 million debt paydown [38] Q&A Session Summary Question: Macro pressures and agency revenue - Management acknowledged softness in certain geographies, particularly Europe, but highlighted the cost-saving nature of their offerings [47] Question: Debt retirement plans - The company remains committed to paying down debt, aiming for net leverage of 2.5x to 3x over the next 24 to 36 months [49] Question: Demand for custom content - Management noted strong demand for custom content, leveraging existing sales teams and infrastructure [55] Question: Average revenue per customer trends - The transition from a la carte to subscription models may lower average revenue per customer, but overall customer growth is prioritized [58] Question: Advertising revenue exposure - Unsplash's advertising revenue is less than 5% of total revenue, showing strong growth despite broader advertising market weaknesses [67] Question: Seasonal and structural effects on KPIs - Management clarified that purchasing customer metrics may fluctuate due to the interplay with annual subscriptions [74] Question: Future trends for subscription and video attachment rates - Management expects subscription rates to potentially reach around 60% in the coming years, with video usage also anticipated to grow [80][82]