Getty Images Reports Second Quarter 2024 Results

Core Insights - Getty Images reported a revenue of $229.1 million for Q2 2024, reflecting a year-over-year increase of 1.5% and a currency-neutral growth of 2.1% [3] - The company experienced a return to growth driven by increased annual subscribers and paid downloads across its platforms, including Getty Images, iStock, and Unsplash [2] - Annual subscription revenue grew by 5.2%, now representing 52.9% of total revenue, up from 51.1% in Q2 2023 [3] Financial Performance - Creative revenue decreased by 2.4% year-over-year to $137.9 million, while editorial revenue increased by 4.1% to $83.6 million [3] - Net income for Q2 2024 was $3.7 million, a significant improvement from a net loss of $4.3 million in Q2 2023 [3] - Adjusted EBITDA for the quarter was $68.8 million, down 5.4% year-over-year, with an adjusted EBITDA margin of 30.0% [3][28] Liquidity and Balance Sheet - The company reported net cash provided by operating activities of $68.0 million for Q2 2024, compared to $73.8 million in the prior year [4] - Free cash flow for the quarter was $31.1 million, an increase from $27.9 million in Q2 2023 [4] - As of June 30, 2024, the ending cash balance was $121.7 million, with total available liquidity of $271.7 million [4][35] Key Performance Indicators - The total number of purchasing customers decreased by 10.8% to 740,000, while active annual subscribers increased by 54.7% to 282,000 [6] - The company’s image collection grew by 7.7% to 553 million, and the video collection increased by 17.5% to 30 million [6] - The annual subscriber revenue retention rate fell to 89.4%, down from 98.5% [6] Business Highlights - Getty Images provided extensive coverage of the Paris 2024 Olympics, producing over 5 million images from various sports [7] - The company launched an updated generative AI model in partnership with NVIDIA, enhancing its AI capabilities [7] - A renewed partnership with Canva allows access to Getty's creative assets, further expanding its market reach [7] Financial Outlook - Updated guidance for full-year 2024 revenue is projected between $924 million and $943 million, reflecting a year-over-year growth of 0.9% to 2.9% [8] - Adjusted EBITDA for the full year is expected to be between $290 million and $294 million, indicating a decline of 3.8% to 2.5% year-over-year [8]