Getty Images (GETY) - 2024 Q4 - Annual Report

Revenue and Subscription Growth - Getty Images' annual subscriptions represented more than half of total revenue as of December 31, 2024, indicating a strong shift towards subscription products[30] - For the year ended December 31, 2024, Creative content accounted for 58.9% of revenue, with 56.0% generated through annual subscription products[30] - Editorial content represented 36.8% of revenue for the same period, with 53.7% derived from annual subscription products[30] - The company reported a total of 717,000 purchasing customers for the year ended December 31, 2024, a decrease from 799,000 in 2023[407] - Total active annual subscribers increased to 314,000 in 2024, up from 236,000 in 2023, indicating strong growth in subscription services[407] - The LTM annual subscriber revenue retention rate improved to 92.9% in 2024, compared to 92.4% in 2023[407] - Total purchasing customers decreased to 717 thousand for the LTM ended December 31, 2024, down from 799 thousand in 2023 and 835 thousand in 2022, attributed to a shift towards more committed annual subscription products[409] - Total active annual subscribers increased to 314 thousand for the LTM ended December 31, 2024, compared to 236 thousand in 2023 and 129 thousand in 2022, driven by expanded e-commerce subscriptions[411] - Annual subscriber revenue retention rate was 92.9% for the LTM ended December 31, 2024, compared to the prior period, indicating strong retention of revenue from annual subscription customers[414] - The shift to more committed solutions positively impacted annual revenue per purchasing customer, which grew by 14.2% to $1,310 for the LTM ended December 31, 2024[409] Customer Growth and Engagement - The company added more than 385,000 new customers during the year ended December 31, 2024, demonstrating strong customer growth[34] - Marketing efficiency improved, with new customers per million dollars of digital marketing spend increasing by over 30$300.3 million, compared to $301.4 million in 2023 and$305.0 million in 2022[422] - Net income for the year ended December 31, 2024, was $39.5 million, an increase from$19.6 million in 2023, compared to a net loss of $77.6 million in 2022[422] - Adjusted EBITDA margin for the year ended December 31, 2024, was 32.0$133 in 2024[38] - The company has a successful track record of executing and integrating strategic acquisitions to enter adjacent markets and accelerate growth[50] - The company continues to focus on subscription offerings to provide comprehensive content solutions, with a strong pipeline of new customers[411] Diversity and Workforce - The company had almost 1,700 employees as of December 31, 2024, with a diverse workforce representing over 32 countries[60] - The company is committed to a culture of diversity and inclusion, ensuring equal opportunities and respect for all employees[62] Cash Flow and Financial Obligations - For the year ended December 31, 2024, cash provided by operating activities was $118.3 million, a decrease of 10.8$132.7 million in 2023[376] - Cash used in investing activities increased to $72.5 million in 2024 from$57.0 million in 2023, primarily due to the acquisition of Motorsport Images LLC and Motorsport.com, Inc.[380] - Cash used in financing activities was $56.2 million in 2024, compared to$45.4 million in 2023, reflecting debt issuance costs and principal payments on Term Loans[381] - The Business Combination resulted in gross proceeds of approximately $864.0 million, which included a cash payment of$615.0 million to redeem preferred stock and $300.0 million to repay a portion of outstanding indebtedness[373] - The company expects to fund its ordinary course operating activities from existing cash and cash flows from operations for at least the next 12 months[372] - The net cash provided by operating activities decreased by$30.4 million from 2022 to 2023, primarily due to increased interest expenses[382] - The company’s liquidity could be adversely affected by pending tax audits and legal proceedings, which may result in tax liabilities exceeding reserved amounts[374] - The company’s cash flows from investing activities are primarily related to property and equipment purchases and internal software development[379] - As of December 31, 2024, total contractual cash obligations amount to $1,658,217,000, with long-term indebtedness accounting for$1,481,680,000[385] - The company has no material off-balance sheet arrangements as of December 31, 2024, except for operating leases[387] Economic and Market Conditions - Management believes that inflation has not materially affected the business, but acknowledges potential risks if significant inflationary pressures arise[388] - The company’s cash flows are subject to fluctuations due to economic conditions and customer behavior, impacting revenue from subscription plans[72]