Shutterstock Reports Second Quarter 2024 Financial Results

Core Insights - Shutterstock reported second quarter 2024 financial results, showing revenue growth driven by Data, Distribution, and Services, despite a decline in Content revenue [2][4][5] - The company completed the acquisition of Envato for $250 million, enhancing its Content business with an unlimited subscription model [3] - Innovations in Generative AI, including Gen3D and ImageAI models, were highlighted as part of the company's ongoing product development [2] Financial Performance - Revenue for Q2 2024 was $220.1 million, a 5% increase from $208.8 million in Q2 2023 [4] - Net income decreased to $3.6 million from $50.0 million year-over-year, with net income per diluted share dropping to $0.10 from $1.37 [7][9] - Adjusted net income was $35.9 million, down from $39.1 million, with adjusted net income per diluted share at $1.00 compared to $1.07 [8][9] Revenue Breakdown - Content revenue fell by $17.0 million, or 9%, to $170.0 million, representing 77% of total revenue [5] - Revenue from Data, Distribution, and Services surged by $28.2 million, or 129%, to $50.1 million, accounting for 23% of total revenue [5] - On a constant currency basis, revenue increased approximately 6% compared to Q2 2023 [6] Adjusted Metrics - Adjusted EBITDA for Q2 2024 was $62.1 million, a 3% increase from $60.1 million in Q2 2023 [10] - The adjusted EBITDA margin was 28.2%, slightly down from 28.8% in the previous year [11] Liquidity and Cash Flow - Cash and cash equivalents rose by $3.1 million to $74.9 million as of June 30, 2024 [12] - Net cash provided by operating activities was $28.0 million, with cash used in financing activities totaling $32.1 million [12][15] Subscriber Metrics - Subscribers at the end of Q2 2024 totaled 490,000, down from 556,000 in Q2 2023 [16] - Subscriber revenue decreased to $80.3 million from $87.4 million year-over-year [16] 2024 Guidance - The company updated its revenue guidance to between $927 million and $936 million, indicating a growth of 6% to 7% year-over-year [23] - Adjusted net income per diluted share is projected to be between $4.18 and $4.32, with adjusted EBITDA expected to be between $245 million and $248 million [23]