Shutterstock Shares Rise as Data and Services Fuel Q3 Beat

Core Insights - Shutterstock Inc. reported third-quarter earnings that exceeded expectations, driven by strong growth in its Data, Distribution, and Services division [1] - Adjusted earnings per share were $0.99, surpassing analyst estimates of $0.63, while revenue increased 4% year over year to $260.1 million, exceeding forecasts of $255.6 million [1] Financial Performance - The Content segment experienced a decline of 5% year over year to $194.4 million, whereas the Data, Distribution, and Services business surged 40% to $65.7 million, accounting for 25% of total revenue [2] - Adjusted EBITDA rose 13% to $79.4 million, with the margin expanding to 30.5% from 27.9% a year ago [2] - Free cash flow increased significantly to $75.2 million from $45.7 million in the same period last year, and the company maintained adjusted EBITDA margins above 30% for a second consecutive quarter [2] Subscriber Metrics - The subscriber base stood at 1.06 million at quarter-end, a slight decrease from 1.105 million a year earlier [3] - The company is integrating AI image, video, and audio generation tools into its unlimited content offerings to enhance its creative ecosystem [3]