Shutterstock(US:SSTK)2025-11-05 12:38Financial Performance - Total revenue for Q3 2025 was $260.1 million, a 3.0% increase from $250.6 million in Q3 2024[17] - Net income for Q3 2025 decreased to $13.4 million, down 24.8% from $17.6 million in Q3 2024[17] - Earnings per share (EPS) for Q3 2025 was $0.38, compared to $0.50 in Q3 2024, reflecting a 24.0% decline[17] - The company reported a comprehensive income of $11.0 million for Q3 2025, down from $21.9 million in Q3 2024[20] - Net income for the nine months ended September 30, 2025, was $61,515,000, compared to $37,361,000 for the same period in 2024, representing a 64.5% increase[24] - Pro forma revenue for the three months ended September 30, 2025, was reported at $260.1 million, compared to $261.6 million for the same period in 2024[74] - The Company reported a net income before income taxes of $31.4 million for the three months ended September 30, 2025, compared to $21.2 million for the same period in 2024[74] - For the three months ended September 30, 2025, total revenue was $260.1 million, a 3.0% increase from $250.6 million in the same period of 2024[109] - Revenue for the three months ended September 30, 2025, was $260.1 million, up from $250.6 million in 2024, reflecting a growth of 3.0%[123] - Total revenue for the nine months ended September 30, 2025, was $769.704 million, compared to $684.956 million for the same period in 2024, indicating a year-over-year increase of approximately 12.4%[256] Assets and Liabilities - Total current assets increased to $336.8 million as of September 30, 2025, up from $256.0 million at the end of 2024, representing a 31.2% growth[15] - Total liabilities decreased slightly to $781.2 million as of September 30, 2025, compared to $790.8 million at the end of 2024[15] - Cash and cash equivalents increased to $165.5 million as of September 30, 2025, compared to $111.3 million at the end of 2024, a growth of 48.8%[15] - Total cash and cash equivalents at the end of the period increased to $165,536,000 from $131,393,000 year-over-year, marking a 26% growth[24] - As of September 30, 2025, the Company reported $76.3 million in unbilled receivables, with $53.7 million recorded in Accounts Receivable and $22.6 million in Other Assets[44] - The Company’s long-lived tangible assets totaled $62.7 million as of September 30, 2025, down from $66.4 million as of December 31, 2024[125] Operating Expenses - Operating expenses for Q3 2025 totaled $227.6 million, a decrease of 2.0% from $232.4 million in Q3 2024[17] - Total operating expenses for the nine months ended September 30, 2025, were $692.3 million, compared to $629.4 million in 2024, indicating an increase of 10.0%[123] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $130,473,000, significantly higher than $24,680,000 in 2024[24] - The Company reported a net cash used in investing activities of $37,438,000 for the nine months ended September 30, 2025, compared to $156,120,000 in 2024[24] - The Company completed the acquisition of Envato Pty Ltd. on July 22, 2024, for an aggregate amount of $250.2 million, incurring approximately $7.0 million in transaction costs[64] - The Company completed the acquisition of Envato for approximately $63.4 million, which includes $90.6 million in cash and cash equivalents, and $106.2 million in identifiable intangible assets[72] - The acquisition of Backgrid was finalized for about $20 million, with transaction costs of approximately $1.5 million included in general and administrative expenses[67] - The total assets acquired from Envato and Backgrid amounted to $439.9 million, with total liabilities assumed of $168.5 million, resulting in net assets acquired of $271.4 million[72] Shareholder Returns - Cash dividends paid in the nine months ended September 30, 2025, totaled $34,823,000, compared to $31,938,000 in 2024[24] - The Company declared cash dividends of $0.33 per share, totaling $11.7 million for the three months ended September 30, 2025, compared to $0.30 per share and $10.6 million in 2024[99] - The company repurchased treasury shares amounting to $41,591,000 in 2024, with no repurchases reported in 2025[24] - The Company has repurchased approximately 5.5 million shares of common stock since 2015 at an average cost of $48.86, with $30.2 million remaining authorization under the 2023 Share Repurchase Program[98] Mergers and Acquisitions - The proposed merger with Getty Images Holdings, Inc. is expected to enhance market position and expand product offerings[11] - The merger agreement with Getty Images was approved by a majority of Shutterstock stockholders on June 10, 2025, with the transaction expected to close subject to regulatory approvals[32][33] - The Company is in the process of a merger with Getty Images, with cash consideration of $9.50 per share and 9.17 shares of Getty Images common stock for each share of Shutterstock common stock outstanding prior to the transaction close[34] Tax and Regulatory - The effective tax rate for the three months ended September 30, 2025, was a net expense of 57.4%[111] - The effective tax rate for the nine months ended September 30, 2024, was 23.2%, while it would have been 32.4% excluding discrete items[115] - The Company recorded additions to unrecognized tax benefits of $4.4 million and $5.0 million for the three and nine months ended September 30, 2024, respectively[117] Other Financial Metrics - The Company recognized interest expense of $4.2 million for the three months ended September 30, 2025[94] - The interest rates on amounts borrowed under the A&R Credit Agreement range from 0.375% to 0.750% based on the company's consolidated net leverage ratio[258] - A hypothetical 10% change in interest rates would not have a material impact on the company's interest expense as of September 30, 2025[258] - The company does not currently use derivatives or other financial instruments to hedge foreign currency exchange risk but may consider doing so in the future[255] - The company does not believe inflation has had a material effect on its business or financial condition[259]