Shutterstock(SSTK) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 revenue was $242.6 million, an increase of $28.3 million or 13% compared to the first quarter of 2024[4] - Content revenue grew by $29.1 million, or 17%, to $202.9 million, representing 84% of total revenue[4] - Net income for the first quarter of 2025 was $18.7 million, up $2.6 million from $16.1 million in the same period last year[6] - Adjusted net income increased to $36.3 million, a rise of $3.2 million compared to $33.1 million in the first quarter of 2024[8] - Adjusted EBITDA for the first quarter of 2025 was $63.4 million, reflecting a 13% increase from $56.0 million in the prior year[10] - Subscriber revenue for the first quarter was $109.9 million, compared to $83.9 million in the same period last year[16] - Net income for Q1 2025 was $18.69 million, compared to $16.12 million in Q1 2024, reflecting a 15.9% year-over-year growth[39] - Basic earnings per share increased to $0.54 in Q1 2025 from $0.45 in Q1 2024, while diluted earnings per share rose from $0.45 to $0.53[39] - Adjusted free cash flow was $23.4 million, an increase of $12.1 million from the first quarter of 2024[14] Subscriber Growth - The number of subscribers at the end of the first quarter 2025 reached 1,079,000, a significant increase from 499,000 in the previous year[16] - The number of subscribers at the end of March 31, 2025, reached 1,079,000, up from 523,000 at the end of March 31, 2024[53] Expenses and Liabilities - Operating expenses totaled $232.42 million in Q1 2025, up from $197.57 million in Q1 2024, with a notable increase in general and administrative expenses from $32.08 million to $58.31 million[39] - Total liabilities decreased to $777.04 million from $790.81 million, reflecting a reduction in current liabilities[41] - The company incurred $11.9 million in professional fees related to the proposed merger with Getty Images[6] - The company incurred merger-related costs of $11,861,000 during the three months ended March 31, 2025[49] Merger and Acquisition - Shutterstock announced a merger agreement with Getty Images, creating a premier visual content company, subject to regulatory approvals[28] - The company is in the process of a proposed acquisition of Getty Images, with relevant documents filed with the SEC[32][33] - Forward-looking statements indicate potential risks related to regulatory approvals and integration challenges associated with the acquisition[36] Asset Management - Total assets as of March 31, 2025, were $1.32 billion, up from $1.31 billion at the end of 2024[41] - Cash and cash equivalents increased slightly to $112.23 million from $111.25 million[41] - Accounts receivable rose to $111.74 million, compared to $95.23 million at the end of 2024, indicating improved sales performance[41] Depreciation and Amortization - Total depreciation and amortization for the three months ended March 31, 2025, was $22,671,000, a decrease of 2.6% from $23,287,000 in the previous quarter[58] - Cost of revenue depreciation was $20,742,000 for the quarter, down from $21,191,000 in the prior quarter, reflecting a decrease of 2.1%[58] - General and administrative depreciation increased to $1,929,000, compared to $2,096,000 in the previous quarter, a decrease of 8.0%[58] - Year-over-year comparison shows total depreciation and amortization increased from $21,263,000 in Q1 2024 to $22,671,000 in Q1 2025, representing a growth of 6.6%[58] - The cost of revenue depreciation has shown a consistent increase from $19,874,000 in Q1 2024 to $20,742,000 in Q1 2025, indicating a growth of 4.4%[58] - General and administrative expenses have fluctuated, with a notable increase from $1,346,000 in Q2 2024 to $1,929,000 in Q1 2025, marking a significant rise of 43.2%[58] - The overall trend indicates a gradual increase in depreciation and amortization expenses, which may impact future profitability metrics[58] - The data suggests that the company is managing its depreciation expenses effectively while still investing in growth[58]