Shutterstock(US:SSTK)2023-07-31 16:00Financial Performance - Total revenue for Q2 2023 was $208.84 million, a slight increase from $206.87 million in Q2 2022, representing a growth of 0.9%[19] - Net income for Q2 2023 reached $50.01 million, compared to $19.45 million in Q2 2022, marking a significant increase of 157.5%[19] - Earnings per share (EPS) for Q2 2023 were $1.39 (basic) and $1.37 (diluted), up from $0.54 and $0.53 in Q2 2022, reflecting an increase of 157.4% and 158.5% respectively[19] - Net income for the six months ended June 30, 2023, was $82.856 million, a 79.9% increase compared to $46.017 million for the same period in 2022[27] - The company reported a net income of $50.01 million for the three months ended June 30, 2023, compared to $19.45 million in 2022, and $82.86 million for the six months ended June 30, 2023, compared to $46.02 million in 2022[118] - For the six months ended June 30, 2023, revenue increased by $18.1 million, or 4%, to $424.1 million compared to the same period in 2022[183] Assets and Equity - Total current assets increased to $273.42 million as of June 30, 2023, compared to $215.67 million at the end of 2022, showing a growth of 26.7%[17] - Total assets reached $1.00 billion as of June 30, 2023, up from $881.18 million at the end of 2022, indicating an increase of 13.6%[17] - The company’s total stockholders' equity increased to $519.51 million as of June 30, 2023, compared to $447.48 million at the end of 2022, a growth of 16.1%[17] Revenue Breakdown - E-commerce revenue for the three months ended June 30, 2023, was $111.90 million, down 12.1% from $127.39 million in 2022, while enterprise revenue increased by 22.0% to $96.94 million from $79.48 million[106] - E-commerce revenues decreased by 9% to $231.7 million, while Enterprise revenues increased by 27% to $192.5 million in the same period[185][186] - The enterprise sales channel contributed approximately 45% of the company's revenue for the six months ended June 30, 2023[139] - E-commerce sales channel accounted for 55% of revenue during the same period, with most licenses coming from self-service web properties[138] Expenses and Costs - Operating expenses for Q2 2023 totaled $200.13 million, compared to $181.50 million in Q2 2022, an increase of 10.2%[19] - Cost of revenue increased by $16.1 million, or 11%, to $162.6 million, driven by increased depreciation and amortization expenses[190] - Sales and marketing expenses decreased by $11.6 million, or 11%, to $95.9 million, representing 23% of revenue[191] - Product development expenses increased by $13.8 million, or 45%, to $44.6 million, primarily due to non-recurring Giphy Retention Compensation[192] Acquisitions - The company recognized a non-taxable bargain purchase gain of $41.9 million from the acquisition of Giphy, reflecting the excess of the fair value of net assets acquired over the net consideration[62] - The total purchase price for the acquisition of Giphy was $53 million in net cash, with additional cash acquired and working capital adjustments totaling $4.75 million[52] - The Company completed the acquisition of Pond5 for approximately $218 million, funded by existing cash and a $50 million drawdown on its revolving credit facility[64] - The acquisition of Splash News was completed for approximately $6.3 million, paid with existing cash on hand[68] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2023, was $96.589 million, up from $59.574 million in the prior year, reflecting a 62.1% increase[27] - Total cash and cash equivalents at the end of June 30, 2023, were $87.146 million, compared to $84.046 million at the end of June 30, 2022[27] - As of June 30, 2023, the company had $30 million in outstanding borrowings under its $100 million credit facility, with a remaining borrowing capacity of $68 million[88] - The company entered into a five-year $100 million unsecured revolving loan facility with Bank of America on May 6, 2022[209] Subscriber Metrics - As of June 30, 2023, the company had 556,000 subscribers, an increase from 368,000 in the same period of 2022[152] - Subscriber revenue for the three months ended June 30, 2023, was $87.4 million, compared to $84.7 million in 2022, while for the six months it was $178.0 million versus $170.1 million[152] - The average revenue per customer for the last twelve months increased to $374 in 2023 from $359 in 2022[152] Tax and Compliance - The effective tax rate for the three months ended June 30, 2023, was 2.7%, significantly lower than 14.4% in 2022, primarily due to discrete items related to the acquisition of Giphy[110] - The company was in compliance with all financial covenants associated with the Credit Facility as of June 30, 2023[212]