Achieves Record Revenues and Adjusted EBITDA and Increases Guidance for 2024 Announces Departure of CFO and Appointment of Incoming CFO NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the "Company"), a leading global creative platform offering highquality creative content for transformative brands, digital media and marketing companies, today announced financial results for the third quarter ended September 30, 2024. Commenting on the Company's performance, Paul Hennessy, the Compan ...

NEW YORK, Oct. 7, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, will report its third quarter 2024 business and financial results on Tuesday, October 29, 2024, before the market opens. The company will host a conference call at 8:30 a.m. ET to discuss the results. The conference call is being webcast live and can be accessed by either visiting the Company's webs ...

Financial Data and Key Metrics Changes - In Q2 2024, the company reported revenue of $220 million, representing a growth of 5.4% year-over-year, and adjusted EBITDA of $62 million with margins of 28% [5][19][21] - Content revenue was $170 million, down 9% compared to the prior year, while Data, Distribution, and Services revenue was $50 million, up 129% year-over-year [6][19] - Free cash flow conversion was strong at 36%, and the cash balance increased to $75 million despite share repurchases and dividend payments [21] Business Line Data and Key Metrics Changes - The Data, Distribution, and Services business experienced hypergrowth of 129% in Q2, with a trailing 12-month growth of 160% [10][11] - The Content business showed slight improvement but did not meet expectations, with larger customers demonstrating resilient demand while new customer acquisition remained soft [6][19] - The Services business achieved 50% growth in Q2, driven by partnerships with major marketers and media companies [15] Market Data and Key Metrics Changes - The company signed multi-year agreements with major players like Microsoft, Runway, and Reka, indicating strong demand for high-quality multimodal training data for AI projects [11][12] - The number of active paying GIPHY customers increased from 5 at the start of the year to 65 in Q2, reflecting strong market traction [14] Company Strategy and Development Direction - The acquisition of Envato is expected to enhance the Content business by adding unlimited subscription products and increasing subscriber counts to 1.15 million [8][21] - The company is focused on investing in large and rapidly growing markets in Data, Distribution, and Services, while also innovating in generative AI capabilities [17][28] - The strategy includes simplifying product offerings and enhancing customer experience to drive growth in the Content business [7][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term targets of $1.2 billion in revenue and $350 million in EBITDA by 2027, despite challenges in the Content business [4][17] - The company anticipates gradual improvement in Content revenues in the second half of the year, driven by strategic changes and the Envato acquisition [19][37] - Management highlighted the importance of adapting to evolving regulatory environments and the need for model releases in AI training data [44][45] Other Important Information - The company appointed Jaime Teevan to the Board of Directors, bringing extensive AI expertise to support strategic initiatives [12] - The company has established a $375 million credit facility to support the acquisition of Envato, with minimal amortization requirements [22] Q&A Session Summary Question: Insights on the DDS business and expected stepdown - Management indicated that the expected stepdown in the DDS business for the back half of the year would be less than $10 million, with continued strong performance anticipated [29][30] Question: Sales and marketing strategy for the back half of the year - Management noted that sales and marketing expenses would likely remain around 24% of revenue, with increased spending in areas showing significant market traction [32][34] Question: Update on the Content business and plans for improvement - Management acknowledged that while there has been sequential improvement in the Content business, it is taking longer than expected to return to growth, emphasizing the need for product simplification [35][37] Question: Use cases for the 3D GenAI product with NVIDIA - Management highlighted that the 3D GenAI product is expected to enhance workflows in various sectors, including gaming and retail, with beta customers coming on board in September [39] Question: Revenue recognition and margins for the 3D product - Management indicated that revenue from the 3D product would be recognized on a net basis, with high margins expected, although contributor royalties would impact overall margins [40] Question: Update on partnerships with hyperscalers and AI players - Management emphasized the importance of licensing AI training data and the company's role in navigating the evolving regulatory landscape [44][45] Question: Revenue from barter transactions and non-cash deals - Management reported approximately $12 million in revenue from equity-based transactions in Q2 [46]

Shutterstock (SSTK) came out with quarterly earnings of $1 per share, missing the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -0.99%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $0.95 per share when it actually produced earnings of $1.13, delivering a surprise of 18.95%. ...

Core Insights - Shutterstock reported second quarter 2024 financial results, showing revenue growth driven by Data, Distribution, and Services, despite a decline in Content revenue [2][4][5] - The company completed the acquisition of Envato for $250 million, enhancing its Content business with an unlimited subscription model [3] - Innovations in Generative AI, including Gen3D and ImageAI models, were highlighted as part of the company's ongoing product development [2] Financial Performance - Revenue for Q2 2024 was $220.1 million, a 5% increase from $208.8 million in Q2 2023 [4] - Net income decreased to $3.6 million from $50.0 million year-over-year, with net income per diluted share dropping to $0.10 from $1.37 [7][9] - Adjusted net income was $35.9 million, down from $39.1 million, with adjusted net income per diluted share at $1.00 compared to $1.07 [8][9] Revenue Breakdown - Content revenue fell by $17.0 million, or 9%, to $170.0 million, representing 77% of total revenue [5] - Revenue from Data, Distribution, and Services surged by $28.2 million, or 129%, to $50.1 million, accounting for 23% of total revenue [5] - On a constant currency basis, revenue increased approximately 6% compared to Q2 2023 [6] Adjusted Metrics - Adjusted EBITDA for Q2 2024 was $62.1 million, a 3% increase from $60.1 million in Q2 2023 [10] - The adjusted EBITDA margin was 28.2%, slightly down from 28.8% in the previous year [11] Liquidity and Cash Flow - Cash and cash equivalents rose by $3.1 million to $74.9 million as of June 30, 2024 [12] - Net cash provided by operating activities was $28.0 million, with cash used in financing activities totaling $32.1 million [12][15] Subscriber Metrics - Subscribers at the end of Q2 2024 totaled 490,000, down from 556,000 in Q2 2023 [16] - Subscriber revenue decreased to $80.3 million from $87.4 million year-over-year [16] 2024 Guidance - The company updated its revenue guidance to between $927 million and $936 million, indicating a growth of 6% to 7% year-over-year [23] - Adjusted net income per diluted share is projected to be between $4.18 and $4.32, with adjusted EBITDA expected to be between $245 million and $248 million [23]

Enterprises can immediately begin using Shutterstock's ethically-trained text-to-3D and image-to-3D generator API. With the recent expansion of 3D worldwide, companies face an increasing imperative to engage in ethical AI solutions. In response, Shutterstock has released this text-to-3D and image-to-3D generator API platform, allowing enterprises to immediately begin using their ethically trained AI API to accelerate pipelines, populate virtual worlds or even bring generative technology to the 3D tools arti ...

NEW YORK, July 22, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, completed its previously announced acquisition of Envato Pty Ltd. ("Envato"), a leader in digital creative assets and templates. Strategic Highlights: Shutterstock completes acquisition of Envato, a leader in digital creative assets and templatesShutterstock completes acquisition of Envato, a leade ...

The company will host a conference call at 8:30 a.m. ET to discuss the results. The conference call is being webcast live and can be accessed by either visiting the Company's website at https://investor.shutterstock.com or clicking here for direct access. The webcast is listen-only. ABOUT SHUTTERSTOCK Learn more at www.shutterstock.com and follow us on LinkedIn, Instagram, Twitter, Facebook and YouTube. SOURCE Shutterstock, Inc. NEW YORK, July 16, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a lead ...

Jaime Teevan, Chief Scientist & Technical Fellow at Microsoft, has been appointed to Shutterstock's Board of Directors. "We are thrilled to welcome Jaime to the Shutterstock Board of Directors," said Jon Oringer, Executive Chairman of the Board at Shutterstock. "Jaime is one of the most influential figures in AI globally, pioneering critical research and leading product innovation for one of the world's leading companies. Her wealth of knowledge and experience in AI, deep roots in rigorous research and expe ...

The Zacks Internet - Content industry is benefiting from solid demand for digital offerings, as well as the increasing importance of video content and cloud-based applications. The proliferation of AI and rapid deployment of generative AI is benefiting industry players. Participants like Shutterstock (SSTK) and Opera Limited (OPRA) are expanding their presence across social media, display and connected TV, and search, driving top-line growth. However, the industry has been suffering from challenging macroec ...