Shutterstock Reports Full Year 2024 and Fourth Quarter Financial Results

Core Insights - Shutterstock achieved record revenues and Adjusted EBITDA in 2024, with expectations for continued growth in 2025 across its Content and Data, Distribution, and Services businesses [2][3][4] Financial Highlights - Full year revenue for 2024 was $935.3 million, an increase of $60.7 million or 7% compared to 2023 [3][4] - Content revenue increased by 3% to $760.0 million, representing 81% of total revenue, while Data, Distribution, and Services revenue grew by 28% to $175.3 million, accounting for 19% of total revenue [4] - Net income for 2024 was $35.9 million, a decrease of $74.3 million from $110.3 million in 2023, primarily due to a non-recurring bargain purchase gain in 2023 [6][10] - Adjusted net income for 2024 was $138.7 million, down from $157.6 million in 2023, impacted by increased interest and tax expenses [7][8] Adjusted EBITDA - Adjusted EBITDA for 2024 was $247.1 million, an increase of $6.3 million or 3% compared to 2023, driven by contributions from the Envato acquisition [9][10] - Adjusted EBITDA margin for 2024 was 26.4%, a decrease of 110 basis points from 27.5% in 2023 [10] Quarterly Results - Fourth quarter revenue was $250.3 million, up 15% from $217.2 million in Q4 2023 [12][13] - Net loss in Q4 2024 was $1.4 million, compared to a net loss of $1.0 million in Q4 2023 [16] - Adjusted net income for Q4 2024 was $23.4 million, down from $25.8 million in Q4 2023 [17][18] - Adjusted EBITDA for Q4 2024 was $59.1 million, an increase of 28% compared to Q4 2023 [19] Liquidity and Cash Flow - Cash and cash equivalents increased by $10.8 million to $111.3 million as of December 31, 2024 [20] - Adjusted free cash flow for 2024 was $108.7 million, a decrease of $29.8 million from 2023 [23] Key Operating Metrics - As of December 31, 2024, Shutterstock had 459,000 subscribers, while Envato had 629,000 subscribers, totaling 1,088,000 [25][26] - Average revenue per customer for Shutterstock was $450, while for Envato it was $90 [26] Merger Agreement - On January 7, 2025, Shutterstock announced a merger agreement with Getty Images, creating a premier visual content company, subject to regulatory approvals and stockholder approval [36]