Financial Data and Key Metrics Changes - Revenue in Q2 2019 grew 3% from 2018 on a reported basis, with e-commerce channel revenue increasing 6% to $97 million, while enterprise channel revenue remained flat at $64.7 million [12][37] - Adjusted EBITDA grew 4.4% from Q2 2018, reaching $25.1 million, with an adjusted EBITDA margin of 15.5%, up 17 basis points year-over-year [13][39] - GAAP net income was $3.3 million or $0.09 per diluted share, an increase from a net loss of $300,000 in Q2 2018 [40] - Free cash flow increased to $19.8 million, up $11.6 million from Q2 2018 [48] Business Line Data and Key Metrics Changes - E-commerce channel revenue grew 6% to $97 million, while enterprise channel revenue was flat at $64.7 million [12][37] - Paid downloads increased by 3% to 46.6 million, and revenue per download rose 1% to $3.44 [38] Market Data and Key Metrics Changes - Approximately one-third of revenues are denominated in foreign currencies, primarily in euros and British pounds, impacting reported revenue growth [37] Company Strategy and Development Direction - The company is focusing on enhancing its enterprise sales channel and reevaluating its go-to-market strategy to drive renewed growth [10][28] - A new footage offering, Shutterstock Elements, was introduced, and the company is enhancing user experience across its platforms [31][32] - The management team has been repositioned to better capture long-term growth opportunities [19][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for operational improvements and emphasized the importance of customer and contributor engagement [18][20] - The company revised its full-year 2019 revenue guidance down to $645 million to $670 million due to weaker-than-expected revenue growth [51][52] Other Important Information - The company added over 150,000 contributors and $20 million assets to its marketplace in Q2 [14] - A new Director, Rachna Bhasin, was welcomed to the Board, bringing strategic industry knowledge [21] Q&A Session Summary Question: E-commerce marketing efficiency and competitive pressures - Management noted that the increase in customer acquisition costs is a trend across industries, but they believe they are well-positioned to target leads effectively [56] Question: Softness in the enterprise segment - Management indicated that the main cause for softness is internal operations, but they believe the market is still growing [62][65] Question: Timeline for changes in enterprise strategy - Management stated that they are focused on identifying immediate opportunities while also considering long-term investments that may take longer to yield results [73] Question: Buyback authorization and cash deployment - Management confirmed a $100 million buyback authorization and emphasized the priority of investing in the business for returns [75]