Shutterstock, Inc. (NYSE:SSTK) Q3 2020 Earnings Conference Call October 27, 2020 8:30 AM ET Company Participants Chris Suh - Vice President, Investor Relations and Corporate Development Stan Pavlovsky - Chief Executive Officer Jarrod Yahes - Chief Financial Officer Conference Call Participants Youssef Squali - Truist Securities Brad Erickson - Needham & Company Ron Josey - JMP Securities John Egbert - Stifel Operator Ladies and gentlemen, thank you for standing by and welcome to the Q3 2020 Shutterstock, In ...

| --- | --- | --- | --- | --- | |-------------------------------------|-------|-------|-------|-------| | | | | | | | shutterstsck: | | | | | | | | | | | | Third Quarter 2020 October 27, 2020 | | | ● ● | | | | | | | | | | | . + | | | ● Forward-Looking Statements 2 This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our management's beliefs and assumptions and on information currently available to management. For ...

Financial Data and Key Metrics Changes - Shutterstock's Q2 2020 revenues were $159 million, down 2% year-over-year, and down 1% on a constant currency basis [11][26] - Adjusted EBITDA was $37 million, representing a margin of 23%, up from 15% in the previous year, marking a record quarterly EBITDA for the company [23][30] - Gross margins improved to 60%, up approximately 200 basis points from 58% in Q2 2019 [27][30] - GAAP net income was $19 million or $0.53 per diluted share, compared to $11.8 million or $0.33 per diluted share in Q2 2019 [30] Business Line Data and Key Metrics Changes - E-commerce channel revenue increased 2% to $98.2 million, while Enterprise channel revenue decreased 6% to $61.1 million [26] - Subscriber count increased by 30% to 223,000, with subscriber revenue rising 8% to $62.6 million, representing 39% of total revenues [34][35] - Paid downloads declined by 6% to $44 million, but revenue per download increased by $0.17 to $3.61 [37] Market Data and Key Metrics Changes - The North America and European regions saw a decline of 3%, while the rest of the world, including Asia, grew modestly [11] - The European geography has not yet recovered to 2019 levels, indicating ongoing challenges in that market [26] Company Strategy and Development Direction - The company is focusing on workflow innovation, content services, and data and insights to deliver strong returns for shareholders [10] - Significant investments are being made in platform solutions and global expansion of sales and technical integration teams [12] - The introduction of new subscription products in music and multi-asset offerings is planned for the second half of the year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to overall quarterly revenue growth by Q4 2020, contingent on the resolution of the pandemic [41] - The company aims for year-over-year margin expansion of at least 50 basis points in 2020 compared to 2019 [43] - Management acknowledged the need for continued investment in marketing and brand building to support new subscription products [16][41] Other Important Information - The company introduced three new KPIs to track the transition towards a subscription-based model [22] - Free cash flow for Q2 was $22.4 million, up from $19.8 million in Q2 2019 [31] - The company is actively looking for M&A opportunities to enhance its business and expand its market presence [39][96] Q&A Session Summary Question: Performance relative to expectations and future EBITDA margins - Management noted strong performance in the SMB sector and the introduction of new subscription products contributed to revenue outperformance [53] - Future EBITDA margins are expected to benefit from operational leverage in G&A and sales and marketing expenses [56][58] Question: Drivers of higher revenue per download - Higher revenue per download was attributed to reduced utilization and the subscription nature of revenues [61] Question: Enterprise segment growth drivers - Growth in the Enterprise segment is expected from new services and deeper penetration into existing accounts [66][70] Question: Changes to contributor royalty payouts - Management clarified that gross margins were impacted by various factors, including lower download activity and automation in content ingestion [74][76] Question: Growth in subscriber numbers - Subscriber growth is driven by new lower-priced subscription products targeting the prosumer segment [82]

| --- | --- | --- | --- | --- | --- | --- | |-------|---------------------|-------|-------|-------|-------|-------| | | shutterstsck® | | | | | | | | Second Quarter 2020 | | | | | | | | July 28, 2020 | | | | | | | | | | | | ● | | | | | | | | | | | | | | | | ● | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ● | | | | | | | | | | | Forward-Looking Statements This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act ...

Shutterstock, Inc. (NYSE:SSTK) Q1 2020 Earnings Conference Call April 28, 2020 8:30 AM ET Company Participants Heidi Garfield - General Counsel Stan Pavlovsky - CEO Jarrod Yahes - CFO Conference Call Participants Youssef Squali - SunTrust Alex Giaimo - Jefferies Operator Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2020 Shutterstock, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a qu ...

| --- | --- | --- | --- | --- | |------------------------------------|-------|-------|-------|-------| | shutterstsck® \nFirst Quarter 2020 | | | | | | | | | | | | April 28, 2020 | | | | | | | | | ● | | | | | | ● | | | | | | | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our management's beliefs and assumptions and on information currently a ...

| --- | --- | --- | --- | --- | |-----------------------------------|-------|-------|-------|-------| | | | | | | | shutterstsck® | | | | | | Fourth Quarter and Full Year 2019 | | | | | | February 13, 2020 | | | | | | | | | ● | | | | | | | | | | | | ● | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our management's beliefs and assumptions and ...

Shutterstock, Inc. (NYSE:SSTK) Q4 2019 Earnings Conference Call February 13, 2020 8:30 AM ET Company Participants Heidi Garfield â General Counsel Jon Oringer â Founder, Chief Executive Officer and Chairman Stan Pavlovsky â President and Chief Operating Officer Jarrod Yahes â Chief Financial Officer Conference Call Participants Nate Mitchell â SunTrust Alex Giaimo â Jefferies Operator Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the Quarter Four 2019 Shutterstock, Inc. Earni ...

Shutterstock Inc (NYSE:SSTK) Q3 2019 Earnings Conference Call November 5, 2019 8:30 AM ET Company Participants Heidi Garfield – Vice President, General Counsel and Corporate Secretary Jon Oringer – Founder, Chief Executive Officer and Chairman Stan Pavlovsky – President and Chief Operating Officer Steve Ciardiello – Interim Chief Financial Officer and Chief Accounting Officer Conference Call Participants Nate Mitchell – SunTrust Alex Giaimo – Jefferies Seth Gilbert – Deutsche Bank Operator Ladies and gentle ...

| --- | --- | --- | --- | --- | |--------------------|-------|-------|-------|-------| | | | | | | | shutterstsck® | | | | | | Third Quarter 2019 | | | | | | | | | | | | November 5, 2019 | | | | | | | | | ● | | | | | | ● | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our management's beliefs and assumptions and on inf ...