Company Overview - Getty Images had over 534 million assets available, adding 8-10 million new assets each quarter and conducting over 2.7 billion searches annually[87]. - The company maintains one of the largest privately-owned photographic archives with over 135 million images[88]. - Unsplash launched Unsplash+, an unlimited paid subscription, providing access to unique content in an ad-free environment[97]. Customer Metrics - The company reported 829,000 total purchasing customers for the twelve months ended March 31, 2023, a slight increase from 825,000 in the previous year[108]. - Total active annual subscribers increased to 150,000 for the twelve months ended March 31, 2023, up from 81,000 in the prior year[108]. - Annual subscriber base grew to 135 thousand, reflecting a 66% increase from March 31, 2022[109]. - Paid download volume increased in the LTM ended March 31, 2023, compared to the prior year, indicating continued customer engagement[110]. - Annual subscriber revenue retention rate was 99.8% for the period ended March 31, 2023, compared to the prior year, although it decreased from 99.0% under legacy reporting[111]. Revenue Breakdown - Total revenue for the three months ended March 31, 2023, was 230.978 million in the same period of 2022[124]. - Creative content represented 62.2% of revenue for the three months ended March 31, 2023, with 49.4% generated through annual subscription products[92]. - Editorial content accounted for 35.9% of revenue for the same period, with 53.4% derived from annual subscription products[93]. - Editorial revenue increased by 7.5% (11.3% CN) for the three months ended March 31, 2023, driven by higher assignments and subscription offerings[129]. - Other revenue, including music licensing and data licensing, increased by 18.1% (22.4% CN) for the three months ended March 31, 2023[130]. Financial Performance - Net income for the three months ended March 31, 2023, was 25.1 million in the same period of 2022[124]. - Adjusted EBITDA for Q1 2023 was 77.7 million in Q1 2022, with an adjusted EBITDA margin of 32.3%[144]. - Cash provided by operating activities decreased by 35.3% to 49.4 million in Q1 2022[155]. - Interest expense for Q1 2023 was 29.6 million in Q1 2022, primarily due to term loans and senior notes[135]. - Fair value adjustment losses for swaps and foreign currency exchange contracts were 12.1 million in Q1 2022[136]. Business Combination - Getty Images completed a Business Combination that resulted in gross proceeds of approximately 660 million from the issuance of Class A Common Shares[103]. - The Business Combination resulted in aggregate gross proceeds of approximately 615.0 million used for redeeming Redeemable Preferred Stock and 1.1 billion[150]. Liquidity and Obligations - Total liquidity as of March 31, 2023, included cash and cash equivalents of 80.0 million[146]. - The company expects to fund operations and planned investing activities for at least the next 12 months from existing cash and cash flows[149]. - Contractual obligations total approximately 1.9 billion[158]. Foreign Currency and Impairment - The company recognized net foreign currency transaction losses of 7.0 million for the same period in 2022[184]. - The company evaluates goodwill for impairment annually, with the last assessment indicating significant headroom in excess of 100%[187]. - The company maintains an allowance for doubtful accounts based on historical losses and specific account analysis, with no significant impairments reported during the periods presented[186]. Accounting Policies - Revenue is recognized gross of contributor royalties, with approximately 3% of total revenues for the three months ended March 31, 2023, generated through third-party delegates[175]. - Identifiable intangible assets are amortized on a straight-line basis over their estimated useful lives, with no significant impairments reported during the periods presented[188]. - The company uses the Black-Scholes option pricing model to determine the fair value of stock options, with estimates involving inherent uncertainties[194]. - The Company computes income taxes and accruals for uncertain tax positions under the asset and liability method in accordance with ASC 740[203].
Getty Images (GETY) - 2023 Q1 - Quarterly Report