Leicarras/iStock via Getty ImagesShutterstock (NYSE:SSTK) is a misunderstood company that boasts strong growth prospects and a reasonable valuation. The company has a bright future, and a growth investor should purchase shares at the current enterprise value of ~$1.7B. How the Market Views Shutterstock: When investors hear the name Shutterstock, they think of the commodified stock image market. They think of a transaction-based business where marketers need a picture such as, “woman drinking coffee”, th ...

Shutterstock Editorial and Shutterstock Studios Return for 40th Edition of the World Renowned Sundance Film Festival with Special Events, Portrait Studios and moreShutterstock Studios' Hosts Panel Featuring their Breakthrough Documentary, "Surfing Through the Odds" on Friday, January 19 at 2pm CTNEW YORK, Jan. 4, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform connecting brands and businesses to high-quality content, today announced that they are the Official House P ...

Shutterstock, Inc. (NYSE:SSTK) Q3 2023 Earnings Conference Call October 31, 2023 8:30 AM ET Company Participants Chris Suh – Vice President-Investor Relations and Corporate Development Paul Hennessy – Chief Executive Officer Jarrod Yahes – Chief Financial Officer Conference Call Participants Bernie McTernan – Needham & Company Youssef Squali – Truist Andrew Boone – JMP Securities Curtis Nagle – Bank of America Operator Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the Third ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________________________________________________ FORM 10-Q ___________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA growth of 23% year-over-year to $60.1 million, with adjusted EBITDA margins increasing by 510 basis points to 28.8% due to modest revenue growth and effective cost management [37][60]. - Revenue for the second quarter was $209 million, with the Enterprise channel growing by 22% driven by data engine revenue of $70 million, marking a record quarter [60][61]. - The company raised its full-year revenue guidance to a growth range of 3% to 5%, translating to revenues of $852 million to $869 million [41][67]. Business Line Data and Key Metrics Changes - The E-commerce channel experienced a decline of 12% in the second quarter, primarily due to challenges in new customer acquisition [61]. - Editorial subscriptions have shown strong early momentum, contributing to growth in the Enterprise channel alongside SMB subscription products [50][60]. - The creative engine has expanded significantly, with Shutterstock Studios delivering approximately 50,000 unique productions in the past year [10][24]. Market Data and Key Metrics Changes - The average total contract value (TCV) for data partnerships increased from $350,000 in 2021 to over $7 million in 2023, reflecting heightened customer interest in licensing larger elements of the library [27][60]. - The contributor base has doubled year-over-year, with submissions up nearly 30% year-to-date, resulting in a content library of 784 million licensable assets [29][56]. Company Strategy and Development Direction - The company is focusing on enhancing its data engine and creative offerings, particularly through partnerships with major tech firms like Google and OpenAI [6][55]. - There is a strong emphasis on generative AI, with the company positioning itself to capitalize on the growing demand for AI-generated content [8][58]. - The acquisition of Giphy is expected to significantly enhance the company's advertising capabilities and expand its reach into conversational content [52][65]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the potential for growth in generative AI and the importance of indemnification for enterprise clients [9][22]. - The company acknowledged challenges in the E-commerce segment but is implementing strategies to improve conversion rates and marketing effectiveness [34][48]. - Management highlighted the importance of ongoing experimentation to understand customer needs and improve product offerings [73][86]. Other Important Information - The company announced a new $100 million share buyback program and repurchased 80,000 shares for $4 million during the quarter [40][66]. - The acquisition of Giphy was completed for $53 million, recognized as a bargain purchase gain of $42 million [65]. Q&A Session Summary Question: Any early progress on conversations with enterprises regarding the new indemnification product? - Management indicated that conversations are underway, and while optimism exists, the indemnification product's impact is not included in the guidance for the second half of the year [46][47]. Question: Can you provide insights on E-commerce performance and marketing strategies? - Management acknowledged underperformance in E-commerce and emphasized the need for increased marketing investment and improved conversion strategies [48][73]. Question: What is the outlook for data revenue retention in 2024? - Management noted that the ability to grow data revenue will depend on expanding existing relationships and acquiring new clients, with no specific guidance provided for 2024 [75][76]. Question: How significant is the advertising opportunity with Giphy? - Management believes the advertising potential from Giphy could reach hundreds of millions of dollars over time, indicating a strong long-term outlook [77][78]. Question: Can you elaborate on the traction in Editorial and Studios? - Management highlighted strong demand in Editorial, particularly after the Splash News acquisition, and expressed optimism about the growth potential in Studios [93][94].

Financial Performance - Total revenue for Q2 2023 was $208.84 million, a slight increase from $206.87 million in Q2 2022, representing a growth of 0.9%[19] - Net income for Q2 2023 reached $50.01 million, compared to $19.45 million in Q2 2022, marking a significant increase of 157.5%[19] - Earnings per share (EPS) for Q2 2023 were $1.39 (basic) and $1.37 (diluted), up from $0.54 and $0.53 in Q2 2022, reflecting an increase of 157.4% and 158.5% respectively[19] - Net income for the six months ended June 30, 2023, was $82.856 million, a 79.9% increase compared to $46.017 million for the same period in 2022[27] - The company reported a net income of $50.01 million for the three months ended June 30, 2023, compared to $19.45 million in 2022, and $82.86 million for the six months ended June 30, 2023, compared to $46.02 million in 2022[118] - For the six months ended June 30, 2023, revenue increased by $18.1 million, or 4%, to $424.1 million compared to the same period in 2022[183] Assets and Equity - Total current assets increased to $273.42 million as of June 30, 2023, compared to $215.67 million at the end of 2022, showing a growth of 26.7%[17] - Total assets reached $1.00 billion as of June 30, 2023, up from $881.18 million at the end of 2022, indicating an increase of 13.6%[17] - The company’s total stockholders' equity increased to $519.51 million as of June 30, 2023, compared to $447.48 million at the end of 2022, a growth of 16.1%[17] Revenue Breakdown - E-commerce revenue for the three months ended June 30, 2023, was $111.90 million, down 12.1% from $127.39 million in 2022, while enterprise revenue increased by 22.0% to $96.94 million from $79.48 million[106] - E-commerce revenues decreased by 9% to $231.7 million, while Enterprise revenues increased by 27% to $192.5 million in the same period[185][186] - The enterprise sales channel contributed approximately 45% of the company's revenue for the six months ended June 30, 2023[139] - E-commerce sales channel accounted for 55% of revenue during the same period, with most licenses coming from self-service web properties[138] Expenses and Costs - Operating expenses for Q2 2023 totaled $200.13 million, compared to $181.50 million in Q2 2022, an increase of 10.2%[19] - Cost of revenue increased by $16.1 million, or 11%, to $162.6 million, driven by increased depreciation and amortization expenses[190] - Sales and marketing expenses decreased by $11.6 million, or 11%, to $95.9 million, representing 23% of revenue[191] - Product development expenses increased by $13.8 million, or 45%, to $44.6 million, primarily due to non-recurring Giphy Retention Compensation[192] Acquisitions - The company recognized a non-taxable bargain purchase gain of $41.9 million from the acquisition of Giphy, reflecting the excess of the fair value of net assets acquired over the net consideration[62] - The total purchase price for the acquisition of Giphy was $53 million in net cash, with additional cash acquired and working capital adjustments totaling $4.75 million[52] - The Company completed the acquisition of Pond5 for approximately $218 million, funded by existing cash and a $50 million drawdown on its revolving credit facility[64] - The acquisition of Splash News was completed for approximately $6.3 million, paid with existing cash on hand[68] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2023, was $96.589 million, up from $59.574 million in the prior year, reflecting a 62.1% increase[27] - Total cash and cash equivalents at the end of June 30, 2023, were $87.146 million, compared to $84.046 million at the end of June 30, 2022[27] - As of June 30, 2023, the company had $30 million in outstanding borrowings under its $100 million credit facility, with a remaining borrowing capacity of $68 million[88] - The company entered into a five-year $100 million unsecured revolving loan facility with Bank of America on May 6, 2022[209] Subscriber Metrics - As of June 30, 2023, the company had 556,000 subscribers, an increase from 368,000 in the same period of 2022[152] - Subscriber revenue for the three months ended June 30, 2023, was $87.4 million, compared to $84.7 million in 2022, while for the six months it was $178.0 million versus $170.1 million[152] - The average revenue per customer for the last twelve months increased to $374 in 2023 from $359 in 2022[152] Tax and Compliance - The effective tax rate for the three months ended June 30, 2023, was 2.7%, significantly lower than 14.4% in 2022, primarily due to discrete items related to the acquisition of Giphy[110] - The company was in compliance with all financial covenants associated with the Credit Facility as of June 30, 2023[212]

Shutterstock Inc. (NYSE:SSTK) Q1 2023 Earnings Conference Call April 25, 2023 8:30 AM ET Company Participants Paul Hennessy - Chief Executive Officer Jarrod Yahes - Chief Financial Officer Chris Suh - Vice President, Investor Relations Conference Call Participants Lauren Schenk - Morgan Stanley Bernie McTernan - Needham & Co. Youssef Squali - Truist Securities Andrew Boone - JMP Securities Nick Delfas - Redburn Nat Schindler - Bank of America Operator Thank you for standing by, and welcome to Shutterstock’ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________________________________________________ FORM 10-Q ___________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU ...

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- ...

Shutterstock, Inc. (NYSE:SSTK) Q4 2022 Earnings Conference Call February 9, 2023 8:30 AM ET Company Participants Chris Suh - VP, IR and Corporate Development Paul Hennessy - CEO Jarrod Yahes - CFO Conference Call Participants Andrew Boone - JMP Securities Bernie McTernan - Needham & Company Youssef Squali - Truist Lauren Schenk - Morgan Stanley Nat Schindler - Bank of America Nick Deflas - Red Burn Operator Good day and thank you for standing by. Welcome to the Shutterstock Inc. Fourth Quarter Earnings Conf ...