Shutterstock(SSTK) - 2025 Q3 - Quarterly Results

Revenue Performance - Third quarter revenue was $260.1 million, an increase of $9.5 million or 4% compared to the third quarter of 2024[4] - Revenue from the Content product offering decreased by $9.3 million, or 5%, to $194.4 million, representing 75% of total revenue[5] - Revenue from Data, Distribution, and Services increased by $18.8 million, or 40%, to $65.7 million, accounting for 25% of total revenue[6] - Revenue for Q3 2025 was $260,094,000, a 3.0% increase from $250,588,000 in Q3 2024[36] - Total revenue for Q3 2025 was $260,094 million, representing a growth of 4% from $250,588 million in Q3 2024[47] Net Income and Earnings - Net income for the third quarter was $13.4 million, down from $17.6 million, with net income per diluted share at $0.37 compared to $0.50[7][8] - Net income for Q3 2025 was $13,387,000, down 24.8% from $17,615,000 in Q3 2024[36] - Basic earnings per share for Q3 2025 was $0.38, compared to $0.50 in Q3 2024, reflecting a decline of 24.0%[36] - Adjusted net income for Q3 2025 was $36,429 million, compared to $46,351 million in Q3 2024, reflecting a decline of 21.4%[43] Cash Flow and Liquidity - Cash and cash equivalents increased by $49.1 million to $165.5 million, driven by $78.4 million of net cash from operating activities[12] - Cash and cash equivalents increased to $165,536,000 as of September 30, 2025, up from $111,251,000 at the end of 2024[38] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $130,473,000, compared to $24,680,000 for the same period in 2024[40] - Net cash provided by operating activities for Q3 2025 was $78,390 million, a significant increase from a cash outflow of $11,585 million in Q3 2024[48] - Adjusted free cash flow was $75.2 million, an increase of $29.6 million from the third quarter of 2024[15] - Adjusted free cash flow for Q3 2025 was $75,224 million, compared to $45,672 million in Q3 2024, marking a growth of 64.7%[48] Subscriber Metrics - The company reported 1,060,000 subscribers at the end of the period, with average revenue per customer increasing to $279[16] - The number of subscribers at the end of Q3 2025 was 1,060,000, a decrease from 1,105,000 in Q3 2024[51] - Average revenue per customer for the last twelve months was $279 in Q3 2025, up from $254 in Q3 2024[51] Operating Expenses and Profitability - Operating expenses decreased to $227,603,000 in Q3 2025 from $232,439,000 in Q3 2024, a reduction of 2.5%[36] - Adjusted EBITDA was $79.4 million, an increase of $9.4 million or 13%, with an adjusted EBITDA margin of 30.5%[11] - Adjusted EBITDA for Q3 2025 was $79,429 million, up from $69,997 million in Q3 2024, indicating a growth of 13.0%[47] - The adjusted EBITDA margin improved to 30.5% in Q3 2025 from 27.9% in Q3 2024[47] Assets and Liabilities - Total assets rose to $1,375,599,000 as of September 30, 2025, compared to $1,309,156,000 at the end of 2024, an increase of 5.1%[38] - Total liabilities decreased slightly to $781,238,000 as of September 30, 2025, from $790,806,000 at the end of 2024[38] - The company reported a decrease in deferred revenue to $211,565,000 as of September 30, 2025, from $225,489,000 at the end of 2024[38] Strategic Developments - The pending merger with Getty Images is ongoing, with the company committed to securing necessary clearances[3][29] - The company will not provide financial guidance due to the pending merger transaction[30] - The company plans to continue focusing on new product development and market expansion strategies[33] Compensation and Depreciation - Total non-cash equity-based compensation for Q3 2025 was $12,962,000, a decrease of 17% from $15,625,000 in Q2 2025[55] - Cost of revenue depreciation for Q3 2025 was $21,028,000, an increase of 1% from $20,804,000 in Q2 2025[56] - General and administrative expenses for equity-based compensation in Q3 2025 were $6,966,000, down 23% from $9,005,000 in Q2 2025[55] - Total depreciation and amortization for Q3 2025 was $22,877,000, an increase of 1% from $22,611,000 in Q2 2025[56] - Product development equity-based compensation for Q3 2025 was $3,370,000, a decrease of 5% from $3,529,000 in Q2 2025[55] - Sales and marketing equity-based compensation for Q3 2025 was $2,098,000, a decrease of 18% from $2,559,000 in Q2 2025[55] - Cost of revenue for equity-based compensation in Q3 2025 was $528,000, a slight decrease from $532,000 in Q2 2025[55] - General and administrative depreciation for Q3 2025 was $1,849,000, an increase of 2% from $1,807,000 in Q2 2025[56] - Total equity-based compensation in Q2 2025 was $15,625,000, compared to $17,884,000 in Q1 2025, indicating a downward trend[55] - Total depreciation and amortization in Q4 2024 was $23,287,000, which is higher than the $22,877,000 reported in Q3 2025[56]