While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metric ...

Core Insights - Shutterstock Studios has achieved significant recognition in the industry, winning 15 Telly Awards, four Webby Honors, and a Webby Nomination for its innovative work in commercial storytelling [1][4][5] Group 1: Awards and Recognition - The Telly Awards honored Shutterstock Studios with multiple gold, silver, and bronze awards across various categories, including craft & editing, videography & cinematography, and social responsibility [3][4] - The Webby Awards recognized Shutterstock Studios in categories such as best video editing and best use of vertical video, with over 13,000 entries from more than 70 countries, placing its work in the top 10 percent [4][5] Group 2: Company Background and Leadership - Established in 2020, Shutterstock Studios is led by a team with experience from notable brands like VICE and Refinery29, positioning itself as a leader in both traditional and immersive production [5] - The company serves as a creative partner to major brands, including Amazon, L'Oréal, and Sony, showcasing its capability in delivering high-quality productions [5] Group 3: Future Initiatives and Technology - Shutterstock Studios is set to host an Immersive Showcase in New York City, demonstrating the power of virtual production and 3D modeling, with global experts leading keynotes and workshops [6] - The company will also participate in the Cannes Lions event to share insights on the application of new technologies in enhancing brand storytelling [6]

Shares of Shutterstock (SSTK) have gained 2.4% over the past four weeks to close the last trading session at $41.74, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $56.50 indicates a potential upside of 35.4%. The average comprises four short-term price targets ranging from a low of $41 to a high of $65, with a standard deviation of $11.36. While the lowest estimate indicates a ...

Shutterstock (SSTK) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individua ...

Have you assessed how the international operations of Shutterstock (SSTK) performed in the quarter ended March 2024? For this online marketplace for royalty-free images and videos, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and grow ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Shutterstock, Inc.'s unaudited consolidated financial statements as of March 31, 2024, detailing balance sheets, operations, cash flows, and notes on key acquisitions [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets slightly decreased to **$1.029 billion**, driven by lower cash, while total liabilities decreased and stockholders' equity increased Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,028,503** | **$1,036,015** | | Cash and cash equivalents | $71,811 | $100,490 | | Goodwill | $402,787 | $383,325 | | **Total Liabilities** | **$487,228** | **$508,921** | | Deferred revenue | $198,041 | $203,463 | | Debt | $30,000 | $30,000 | | **Total Stockholders' Equity** | **$541,275** | **$527,094** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 revenue remained flat at **$214.3 million**, but net income significantly decreased by **51%** to **$16.1 million** due to a **13%** increase in total operating expenses Q1 2024 vs. Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $214,315 | $215,280 | | Total operating expenses | $197,569 | $174,911 | | Income from operations | $16,746 | $40,369 | | Net income | $16,121 | $32,843 | | Diluted EPS | $0.45 | $0.90 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities sharply decreased to **$8.3 million** in Q1 2024, leading to a net decrease in cash of **$28.7 million** after investing and financing activities Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,300 | $66,775 | | Net cash used in investing activities | $(16,528) | $(15,937) | | Net cash used in financing activities | $(18,629) | $(70,667) | | **Net decrease in cash and cash equivalents** | **$(28,679)** | **$(19,322)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial items, highlighting the **Backgrid acquisition** for **$20 million**, growth in 'Data, Distribution, and Services' revenue, and the planned **Envato acquisition** for **$245 million** - On February 1, 2024, the Company acquired Backgrid for approximately **$20 million** in cash, resulting in **$19.8 million** of goodwill[34](index=34&type=chunk)[63](index=63&type=chunk)[69](index=69&type=chunk) Revenue by Product Offering (in thousands) | Offering | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Content | $173,830 | $193,984 | | Data, Distribution, and Services | $40,485 | $21,296 | | **Total Revenue** | **$214,315** | **$215,280** | Revenue by Customer Location (in thousands) | Region | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | North America | $110,427 | $99,140 | | Europe | $55,400 | $59,034 | | Rest of the world | $48,488 | $57,106 | | **Total revenue** | **$214,315** | **$215,280** | - On May 1, 2024, the Company agreed to acquire Envato for approximately **$245 million**, funded by a new credit facility and expected to close in Q3 2024[140](index=140&type=chunk)[141](index=141&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, noting flat revenue with a shift from 'Content' to 'Data, Distribution, and Services', declining income due to higher costs, and details on liquidity and the Envato acquisition - The company's business comprises two main offerings: 'Content' (images, footage, music, 3D models) and 'Data, Distribution, and Services' (metadata licenses, Giphy advertising, Shutterstock Studios)[146](index=146&type=chunk)[147](index=147&type=chunk) - On May 1, 2024, the company agreed to acquire Envato, an online marketplace, for approximately **$245 million**, funded by a new credit facility and expected to close in Q3 2024[156](index=156&type=chunk)[157](index=157&type=chunk) Key Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Subscribers (end of period) | 499,000 | 559,000 | | Paid downloads (in millions) | 35.0 | 42.7 | | Revenue per download | $4.97 | $4.41 | | Average revenue per customer (LTM) | $418 | $356 | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q1 2024 revenue was **$214.3 million**, with 'Content' revenue down **10%** offset by 'Data, Distribution, and Services' up **90%**, leading to a **59%** drop in operating income due to **13%** higher expenses - Content revenues decreased by **10%** to **$173.8 million**, primarily due to weakness in new customer acquisition[188](index=188&type=chunk) - Data, Distribution, and Services revenues increased by **90%** to **$40.5 million**, driven by **73%** growth in the data offering[189](index=189&type=chunk) - Cost of Revenue increased by **13%** (**$10.0 million**) due to higher hosting, employee, and D&A costs, largely from Giphy and Backgrid acquisitions[192](index=192&type=chunk) - Sales and Marketing expenses increased by **18%** (**$8.7 million**) due to a **$5.5 million** increase in brand and performance marketing spend[193](index=193&type=chunk) - Product Development expenses increased by **37%** (**$5.6 million**), primarily driven by Giphy employee-related costs[194](index=194&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held **$71.8 million** in cash, with **$67 million** available on its credit facility, and paid a **$0.30 per share** dividend - Cash and cash equivalents totaled **$71.8 million** as of March 31, 2024[201](index=201&type=chunk) - The company has a **$100 million** credit facility with **$30 million** drawn and **$67 million** available as of March 31, 2024[210](index=210&type=chunk) - A quarterly cash dividend of **$0.30 per share** was paid in Q1 2024, with a similar dividend declared for Q2 2024[203](index=203&type=chunk)[204](index=204&type=chunk) - No shares were repurchased in Q1 2024; **$71.8 million** remains authorized under the 2023 Share Repurchase Program[207](index=207&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Q1 2024 non-GAAP results show Adjusted EBITDA decreased to **$56.0 million** with margin at **26.1%**, Adjusted Net Income at **$40.6 million**, and Adjusted Free Cash Flow significantly lower at **$11.2 million** Non-GAAP Financial Measures Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $16,121 | $32,843 | | **Adjusted EBITDA** | **$55,977** | **$69,764** | | Adjusted EBITDA Margin | 26.1% | 32.4% | | **Adjusted Net Income** | **$40,640** | **$47,134** | | Adjusted Net Income per Diluted Share | $1.13 | $1.29 | | **Adjusted Free Cash Flow** | **$11,246** | **$50,868** | - Adjustments to derive non-GAAP figures primarily include depreciation & amortization, non-cash equity-based compensation, and non-recurring Giphy retention compensation expenses[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, with **28%** of Q1 2024 revenue in foreign currencies, while interest rate and inflation risks are not material - Revenue denominated in foreign currencies was approximately **28%** of total revenue for Q1 2024, down from **30%** in Q1 2023[239](index=239&type=chunk) - A hypothetical **10%** change in the USD exchange rate against all foreign currency revenues would impact total revenue by approximately **3%**[239](index=239&type=chunk) - Interest rate risk from the **$30 million** outstanding on the Credit Facility is not considered material, as a **10%** change in rates would not significantly impact interest expense[243](index=243&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective at the reasonable assurance level[246](index=246&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2024[247](index=247&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material active litigation, and existing claims are not expected to have a material adverse effect - The company is not currently party to any material active litigation and does not expect existing matters to have a material adverse effect on its business[249](index=249&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the 2023 Form 10-K - During the three months ended March 31, 2024, there were no material changes to the risk factors as described in the 2023 Form 10-K[250](index=250&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[251](index=251&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report was signed on **May 2, 2024**, by Jarrod Yahes, Chief Financial Officer, and Steven Ciardiello, Chief Accounting Officer[262](index=262&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $214.3 million, exceeding expectations, while adjusted EBITDA was $56 million with margins of 26.1% [22][30][39] - Content revenue decreased by 10%, aligning with expectations, but the company anticipates a return to growth later in the year [22][30] - The company increased its dividend by 10% to $0.30 per share, marking the fourth consecutive year of double-digit increases [25] Business Line Data and Key Metrics Changes - Data distribution and services revenue surged by 90% in Q1, contributing almost 20% of total revenues [13][49] - The acquisition of Envato is expected to increase revenue from video, audio, and 3D content from 35% to 45% of total content revenue [19] - The average order value (AOV) for new customers increased significantly, with early orders averaging $50,000 and newer customers averaging between $200,000 to $400,000 [15] Market Data and Key Metrics Changes - Total traffic increased by 18% year-on-year, indicating successful SEO and marketing efforts [12] - The contributor base grew by over 40% to 3.4 million, while the library expanded by 34% to nearly 900 million assets [119] - The company is seeing strong demand from larger customers, while demand from small and medium-sized customers remains muted [117] Company Strategy and Development Direction - The company aims to reach $1.2 billion in revenue and $350 million in EBITDA by 2027, with the recent acquisition of Envato accelerating this path [3][56] - The focus is on expanding into faster-growing audiences and diversifying content types, particularly through the Envato acquisition [18][44] - The company is positioned to benefit from the increasing demand for ethically sourced datasets for AI training [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the turnaround in the content business, with positive trends noted in small and medium business segments [73][91] - The company anticipates continued strong growth in data distribution and services, driven by regulatory changes and increased demand [49][64] - There is a belief that the company is well-positioned to execute its strategic roadmap and achieve long-term targets [30][48] Other Important Information - The company expects to close the Envato acquisition in Q3 2024, which will significantly impact its revenue base and subscriber count [20][55] - The company has secured a $375 million credit facility to support growth and acquisitions [53] Q&A Session Summary Question: Insights on guidance change with Envato acquisition - The company is incorporating Envato's expected contribution of 20% to revenues and 15% to EBITDA for the full year into its guidance [59] Question: Trends in the content business for April - Management noted positive trends in the content business, particularly in small and medium segments, and expects continued improvement [72][75] Question: Demand for data beyond LLMs - There is increasing demand for visual media as a critical component for training multimodal models, with strong interest from both new and existing customers [77][93] Question: Challenges in scaling Giphy business - The company is seeing high interest and increasing AOV, indicating a positive trend in the advertising model for Giphy [79] Question: Impact of Envato on data sales business - The acquisition is expected to diversify and enhance the data sales business by providing more content and meeting varied customer demands [89]

Execution Version SHARE PURCHASE AGREEMENT BY AND AMONG SHUTTERSTOCK AUS EMU PTY LTD, ENVATO PTY LTD, THE SHAREHOLDERS OF ENVATO PTY LTD, SHUTTERSTOCK, INC. Exhibit 2.1 AND THE SELLERS' REPRESENTATIVE Dated as of May 1, 2024 | | SECTION 1 DEFINITIONS AND INTERPRETATIONS | 1 | | --- | --- | --- | | 1.1 | Certain Definitions | 1 | | 1.2 | Interpretation | 29 | | | SECTION 2 DESCRIPTION OF TRANSACTION | 31 | | 2.1 | Share Purchase | 31 | | 2.2 | Consideration | 31 | | 2.3 | No Further Right of Transfers | 32 | ...

Shutterstock (SSTK) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.95%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $0.68 per share when it actually produced earnings of $0.72, delivering a surprise of 5.88% ...

NEW YORK, May 2, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, today announced that it entered into a definitive agreement to acquire Envato Pty Ltd. ("Envato"), a leader in digital creative assets and templates. Envato's flagship product, Elements, is a creative subscription providing unlimited downloads of a diverse array of assets, templates and more—an intel ...