Shutterstock(SSTK) - 2023 Q4 - Annual Results

Financial Performance - Full year 2023 revenue increased 6% to $874.6 million compared to 2022, with a constant currency increase of 5%[10] - Net income for 2023 rose 45% to $110.3 million, with net income per diluted share increasing 46% to $3.04[13] - Adjusted EBITDA for 2023 increased 10% to $240.8 million, with an adjusted EBITDA margin of 27.5%, up 120 basis points from 2022[15] - Free cash flow for the full year 2023 was $138.5 million, an increase of $40.1 million from 2022[25] - Adjusted net income for 2023 was $110,269,000, up from $76,103,000 in 2022, reflecting a growth of 45%[50] - Adjusted EBITDA for the year ended December 31, 2023, was $240,776,000, up from $218,074,000 in 2022, with an adjusted EBITDA margin of 27.5%[59] Revenue Breakdown - Content revenue decreased 7% to $737.3 million, representing 84% of total revenue, while Data, Distribution, and Services revenue surged 256% to $137.3 million, accounting for 16% of total revenue[11] - Fourth quarter 2023 revenue was $217.2 million, remaining flat compared to Q4 2022, with Content revenue down 10% to $177.5 million[16][17] - Revenue for Q4 2023 was $217,219,000, a slight decrease of 0.2% compared to Q4 2022's $217,726,000[50] - Total revenue for the year ended December 31, 2023, was $874,587,000, reflecting a 6% increase compared to $827,826,000 in 2022[61] - Content revenue decreased by 10% year-over-year for the three months ended December 31, 2023, totaling $177,526,000 compared to $197,513,000 in 2022[61] - Data, Distribution, and Services revenue saw significant growth of 96% for the three months ended December 31, 2023, reaching $39,693,000 compared to $20,213,000 in 2022[61] Subscriber Metrics - As of December 31, 2023, the number of subscribers decreased to 523,000 from 586,000 in 2022, while average revenue per customer increased to $412 from $341[27] - Subscribers at the end of the period decreased to 523,000 from 586,000 a year ago, representing a decline of 10.7%[63] - Subscriber revenue for the quarter was $85.2 million, down from $88.8 million in the same quarter last year, a decrease of 4.1%[63] - Average revenue per customer increased to $412 from $341 a year ago, reflecting a growth of 20.8%[63] Cash Flow and Assets - Cash and cash equivalents decreased to $100,490,000 as of December 31, 2023, down from $115,154,000 in 2022[53] - Total assets increased to $1,036,015,000 in 2023, up from $881,184,000 in 2022, marking a growth of 17.6%[53] - Total liabilities rose to $508,921,000 in 2023, compared to $433,702,000 in 2022, an increase of 17.4%[53] - The company generated $33,949,000 in net cash from operating activities for the three months ended December 31, 2023, down from $61,162,000 in the same period of 2022[61] - Free cash flow for the year ended December 31, 2023, was $138,468,000, compared to $98,334,000 in 2022[61] Future Guidance and Strategy - The company announced 2024 guidance with revenue of $875 million and adjusted EBITDA of $241 million, unchanged from 2023[34] - The company aims for a revenue growth CAGR of 10% and 2027 revenues of $1.2 billion, with EBITDA margin expansion from 28% to 30%[34] - The company plans to discuss its 2024 guidance and long-term targets during the earnings teleconference on February 21, 2024[43] - The company plans to continue expanding its content offerings and enhancing user engagement through new product developments and acquisitions[63] - Future guidance indicates a focus on improving subscriber growth and revenue per customer through strategic marketing initiatives and product enhancements[63] Operating Expenses and Losses - Fourth quarter net loss was $1.0 million, a decrease of $8.1 million compared to net income of $7.0 million in Q4 2022[19] - The company reported a net loss of $1,006,000 for Q4 2023, contrasting with a net income of $7,046,000 in Q4 2022[50] - For the three months ended December 31, 2023, the company reported a net loss of $1,006,000 compared to a net income of $7,046,000 for the same period in 2022[58] - Total operating expenses for Q4 2023 were $215,095,000, compared to $210,079,000 in Q4 2022, indicating an increase of 2%[50] Other Metrics - Total non-cash equity-based compensation for the quarter was $11.988 million, a decrease from $13.003 million in the previous quarter, down by 7.8%[69] - Total depreciation and amortization for the quarter was $20.356 million, compared to $18.636 million a year ago, an increase of 9.2%[70] - The content collection at the end of the period included 771 million images, up from 719 million a year ago, an increase of 7.2%[63] - Paid downloads for the quarter were 35.4 million, a decrease from 42.5 million in the same quarter last year, down by 16.5%[63] - Revenue per download increased to $5.02 from $4.49 a year ago, an increase of 11.8%[63] - Cash paid for income taxes in the three months ended December 31, 2023, was $17,097,000, significantly higher than $3,968,000 in the same period of 2022[61]