[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Shutterstock reported record financial performance in Q2 2025, driven by strong revenue and Adjusted EBITDA growth, significantly boosted by the Envato acquisition [Second Quarter 2025 Results](index=1&type=section&id=Second%20Quarter%202025%20Results) Shutterstock reported record Q2 2025 financial performance, with revenue reaching **$267.0 million** and Adjusted EBITDA growing **32%**, primarily driven by the Envato acquisition and data services Q2 2025 vs. Q2 2024 Financial Summary | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $267.0M | $220.1M | +21% | | **Net Income** | $29.4M | $3.6M | +717% | | **Net Income per Diluted Share** | $0.82 | $0.10 | +720% | | **Adjusted Net Income** | $42.9M | $35.9M | +19% | | **Adjusted Net Income per Diluted Share** | $1.19 | $1.00 | +19% | | **Adjusted EBITDA** | $82.2M | $62.1M | +32% | - Revenue growth was broad-based, with content revenue increasing by **18% to $199.8 million** due to the Envato acquisition, and Data, Distribution, and Services revenue growing by **34% to $67.2 million** from data deal recognition[4](index=4&type=chunk)[5](index=5&type=chunk) - The significant increase in net income was attributed to profitability from the Envato acquisition and unrealized gains from the company's investment in Meitu, Inc, partially offset by a **$3.7 million** increase in interest expense and **$8.7 million** in professional fees for the proposed merger with Getty Images[6](index=6&type=chunk) - Adjusted EBITDA margin improved to **30.8%** in Q2 2025, up from **28.2%** in Q2 2024, primarily due to contributions from Envato and data deal revenue[10](index=10&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity saw a modest increase in Q2 2025, driven by operating cash flow despite significant investing and financing activities [Second Quarter Liquidity](index=2&type=section&id=Second%20Quarter%20Liquidity) Cash and cash equivalents increased by **$4.2 million** to **$116.4 million** in Q2 2025, primarily from operations, partially offset by investing and financing outflows - Cash and cash equivalents rose to **$116.4 million** as of June 30, 2025, an increase of **$4.2 million** during the quarter[11](index=11&type=chunk) - Cash from operations was unfavorably impacted by **$5.7 million** in expenses related to the proposed merger with Getty Images[12](index=12&type=chunk) - Financing activities included an **$11.6 million** dividend payment and a **$0.8 million** repayment of the credit facility[14](index=14&type=chunk) - Adjusted free cash flow decreased by **$18.7 million** year-over-year to **$17.5 million** for Q2 2025[14](index=14&type=chunk) [Quarterly Cash Dividend](index=2&type=section&id=Quarterly%20Cash%20Dividend) The company maintained its commitment to shareholder returns by paying a **$0.33 per common share** dividend in Q2 2025 and declaring an identical dividend for September 2025 - In Q2 2025, the company paid a cash dividend of **$0.33 per share**, amounting to a total of **$11.6 million**[15](index=15&type=chunk) - The Board of Directors declared a further dividend of **$0.33 per share**, payable on September 18, 2025[15](index=15&type=chunk) [Key Operating Metrics](index=3&type=section&id=Key%20Operating%20Metrics) Envato's integration significantly impacted Q2 2025 operating metrics, doubling subscribers and surging paid downloads, though average revenue per customer decreased Key Operating Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Subscribers (end of period)** | 1,073,000 | 490,000 | +119% | | **Subscriber revenue** | $108.0M | $80.3M | +34.5% | | **Average revenue per customer (LTM)** | $266 | $434 | -38.7% | | **Paid downloads** | 112.6M | 33.4M | +237% | - The metrics for 2025 include counts and revenues from Envato, acquired in July 2024, leading to significant year-over-year changes in subscriber and download figures[16](index=16&type=chunk) [Merger with Getty Images](index=5&type=section&id=Merger%20with%20Getty%20Images) Shutterstock is proceeding with its merger of equals with Getty Images, approved by stockholders, with completion contingent on regulatory approvals - On January 7, 2025, Shutterstock entered into a merger agreement with Getty Images for a merger of equals[29](index=29&type=chunk) - A majority of Shutterstock stockholders approved the merger agreement at a special meeting on June 10, 2025[29](index=29&type=chunk) - Due to the pending transaction, Shutterstock will not host a conference call or provide financial guidance for Q2 2025[30](index=30&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures to provide a clearer understanding of core operational performance by excluding certain non-cash and one-time items - The company uses non-GAAP financial measures such as adjusted EBITDA, adjusted net income, adjusted free cash flow, and constant currency revenue growth[21](index=21&type=chunk) - Management believes these measures help investors analyze operating results on the same basis as management by eliminating the effects of unusual or infrequent charges not attributable to underlying performance[25](index=25&type=chunk) - Key adjustments to derive non-GAAP figures include depreciation and amortization, non-cash equity-based compensation, merger-related costs, and unrealized gains/losses on investments[22](index=22&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents Shutterstock's consolidated financial statements, including detailed statements of operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, Shutterstock's revenue increased to **$267.0 million**, with net income surging to **$29.4 million** ($0.82 per diluted share), driven by higher revenue and other income Consolidated Statements of Operations (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | $266,990 | $220,053 | | **Income from operations** | $34,731 | $20,666 | | **Net income** | $29,440 | $3,625 | | **Diluted EPS** | $0.82 | $0.10 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Shutterstock's total assets increased to **$1.376 billion**, primarily in current assets, leading to higher stockholders' equity while total liabilities remained stable Consolidated Balance Sheet Summary | (In thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $308,706 | $255,958 | | **Total assets** | $1,376,451 | $1,309,156 | | **Total current liabilities** | $634,303 | $625,286 | | **Total liabilities** | $790,288 | $790,806 | | **Total stockholders' equity** | $586,163 | $518,350 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, the company generated **$26.8 million** in cash from operating activities, with overall cash and cash equivalents increasing by **$4.2 million** despite investing and financing outflows Consolidated Cash Flow Summary (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $26,836 | $27,965 | | **Net cash (used in) / provided by investing activities** | $(14,965) | $8,301 | | **Net cash used in financing activities** | $(13,878) | $(32,149) | | **Net increase in cash and cash equivalents** | $4,179 | $3,060 | [Reconciliation of Non-GAAP Financial Information to GAAP](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Information%20to%20GAAP) This section provides detailed reconciliations from GAAP to non-GAAP metrics, including Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow, for Q2 2025 Q2 2025 Reconciliation of Net Income to Adjusted Net Income | (In thousands) | Amount | | :--- | :--- | | **Net income (GAAP)** | **$29,440** | | Non-cash equity-based compensation | $15,625 | | Acquisition-related amortization expense | $9,581 | | Merger related costs | $8,710 | | Other (incl. unrealized gains) | $(17,908) | | Tax effects of adjustments | $(7,514) | | **Adjusted net income (Non-GAAP)** | **$42,872** | Q2 2025 Reconciliation of Net Income to Adjusted EBITDA | (In thousands) | Amount | | :--- | :--- | | **Net income (GAAP)** | **$29,440** | | Interest, Taxes, Depreciation & Amortization | $40,526 | | **EBITDA** | **$68,889** | | Non-cash equity-based compensation | $15,625 | | Merger related costs | $8,710 | | Unrealized gain on investment | $(18,029) | | Other adjustments | $7,041 | | **Adjusted EBITDA (Non-GAAP)** | **$82,236** | Q2 2025 Adjusted Free Cash Flow Calculation | (In thousands) | Amount | | :--- | :--- | | **Net cash provided by operating activities** | **$26,836** | | Capital expenditures | $(11,312) | | Content acquisitions | $(4,081) | | Merger related costs (cash paid) | $5,686 | | Other adjustments | $369 | | **Adjusted Free Cash Flow** | **$17,498** | [Supplemental Financial Data](index=13&type=section&id=Supplemental%20Financial%20Data) This section provides historical quarterly data, highlighting operational trends and expense allocations, with Envato's inclusion significantly increasing subscribers and paid downloads from Q1 2025 - Historical operating metrics show a significant increase in subscribers (from **459k** in Q4'24 to **1,079k** in Q1'25) and paid downloads (from **33.0 million** in Q4'24 to **120.9 million** in Q1'25), coinciding with the inclusion of Envato's results[51](index=51&type=chunk) Total Non-Cash Equity-Based Compensation (Quarterly) | ($ in thousands) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | $15,625 | $17,884 | $15,110 | $15,094 | $14,976 | Total Depreciation and Amortization (Quarterly) | ($ in thousands) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | $22,611 | $22,671 | $23,287 | $21,644 | $21,433 |

Core Insights - Shutterstock achieved record levels in both revenue and adjusted EBITDA for the second quarter of 2025, driven by a comprehensive suite of offerings including creative content and AI solutions [2][3]. Financial Highlights - Revenue for the second quarter of 2025 was $267.0 million, an increase of $46.9 million or 21% compared to the second quarter of 2024 [3][14]. - Content product revenue increased by $29.8 million, or 18%, to $199.8 million, representing 75% of total revenue [3][14]. - Revenue from Data, Distribution, and Services rose by $17.1 million, or 34%, to $67.2 million, accounting for 25% of total revenue [4][14]. Net Income and Earnings - Net income for the second quarter of 2025 was $29.4 million, up from $3.6 million in the same period of 2024, with net income per diluted share increasing to $0.82 from $0.10 [5][14]. - Adjusted net income rose to $42.9 million, an increase of $7.0 million compared to $35.9 million in the second quarter of 2024, with adjusted net income per diluted share at $1.19, up from $1.00 [6][7][14]. Adjusted EBITDA - Adjusted EBITDA for the second quarter of 2025 was $82.2 million, a 32% increase from $62.1 million in the second quarter of 2024, with an adjusted EBITDA margin of 30.8% [8][14]. Liquidity and Cash Flow - Cash and cash equivalents increased by $4.2 million to $116.4 million as of June 30, 2025, driven by $26.8 million of net cash from operating activities [9][10]. - Adjusted free cash flow was $17.5 million for the second quarter of 2025, a decrease of $18.7 million from the same period in 2024 [12][14]. Subscriber Metrics - Subscribers at the end of the period reached 1,073,000, up from 490,000 in the previous year [16][43]. - Subscriber revenue for the second quarter was $108.0 million, compared to $80.3 million in the same period of 2024 [16][43]. Merger Activity - The company is in the process of a merger with Getty Images, which was approved by a majority of Shutterstock stockholders [28][29].

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Company Overview - Shutterstock (SSTK) shares increased by 9.3% to $20.83 in the last trading session, with a higher-than-average trading volume, contrasting with a 1% gain over the past four weeks [1] - The company is experiencing growth due to an expanding clientele and the acquisition of Envato, alongside strong demand for AI-generated content [2] Financial Performance - Shutterstock is expected to report quarterly earnings of $1.65 per share, reflecting a year-over-year increase of 65%, with revenues projected at $274.77 million, up 24.9% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [4] Industry Context - Shutterstock operates within the Zacks Internet - Content industry, where Genius Sports Limited (GENI) also resides, having closed 2.9% higher at $10.96, with a 5.7% return over the past month [4] - Genius Sports Limited's consensus EPS estimate has increased by 156.5% over the past month, indicating a significant change compared to the previous year's EPS [5]

Core Perspective - Shutterstock is redefining its brand identity and offerings to enhance its role in the creative industry, focusing on AI-powered solutions to empower businesses and creatives [1][4][8] Company Overview - Shutterstock has over two decades of experience supporting creative successes across various industries, including entertainment, tech, finance, and healthcare [4] - The company aims to provide scalable creative and generative AI solutions to meet modern storytelling demands [1][4] New Offerings - The company has launched an Unlimited downloads subscription, allowing individual users access to unlimited downloads from a library of over 80 million high-quality images, videos, and audio content [5] - Generative AI Pro is a new offering designed for business use, enabling the creation of high-quality visuals at 4K resolution, enhancing creative variety and brand relevance [5][6] AI and Data Solutions - Shutterstock's AI offerings include a proprietary Model Recommender that selects the best-fit model for each prompt, ensuring higher quality results [6] - The company provides one of the largest rights-cleared multimodal datasets for AI model builders, evolving with content refreshes and new asset types [10] Creative Production and Distribution - Shutterstock Studios offers a streamlined, end-to-end creative production model, leveraging advanced production tools to meet the content needs of major marketers [10] - GIPHY Ads expands Shutterstock's capabilities in creative content distribution, connecting brands with customers through engaging ads [10] Strategic Developments - The rebrand coincides with a merger agreement between Shutterstock and Getty Images, aimed at creating a premier visual content company [9]

Core Viewpoint - Getty Images' stock has seen a significant increase due to a favorable merger deal with Shutterstock, with shares rising over 13% in the week leading up to the announcement [1]. Group 1: Merger Approval - Shutterstock's shareholders overwhelmingly approved the merger with Getty Images, with approximately 82% voting in favor [2]. - The merger is characterized as a "merger of equals," but the Getty Images name will be retained for the combined entity, with Getty stockholders holding nearly 55% of the new business [4]. Group 2: Market Reaction - Following the announcement of the shareholder vote, Shutterstock's equity also experienced a rise, indicating positive market sentiment towards the merger [5]. Group 3: Insider Activity - Post-merger approval, several insiders from both companies sold portions of their equity holdings, suggesting confidence in the merger's valuation [6].

Core Points - Shutterstock's stockholders approved the merger agreement with Getty Images, with approximately 82% of the shares voting in favor [1][2][3] - The merger aims to create a premier visual content company, enhancing capabilities in content creation, event coverage, and technology innovation [2][3] - The transaction is expected to close in the second half of 2025, pending regulatory approvals and customary conditions [3] Company Overview - Shutterstock is a leading global creative platform providing high-quality creative content for brands, digital media, and marketing companies [5] - The platform is supported by millions of creators and offers a diverse collection of 3D models, videos, music, photographs, vectors, and illustrations [5] - Shutterstock aims to deliver exceptional value to partners, contributors, and stockholders through its innovative technology and comprehensive resources [5]

Veritone (VERI) FY Conference Summary Company Overview - **Company Name**: Veritone - **Founded**: 2014 - **CEO**: Ryan Stielberg - **IPO Revenue**: $100 million - **Core Business**: AI-driven audio and video indexing and understanding [1][27] Industry Context - **Industry**: AI and Media Technology - **Market Dynamics**: Shift towards leveraging unstructured data (80% of new data) for advertising and content management [11][12] - **Emerging Trends**: Increased demand for training data for AI models, particularly with the rise of large language models [37][39] Key Points and Arguments Historical Context and Evolution - Veritone's journey began in the mid-90s with ad tech, evolving through various phases to focus on AI and unstructured data [3][4][10] - The company initially aimed to build a large infrastructure (aiWARE) but pivoted to develop end applications due to market readiness [28][30][31] Business Model and Revenue Streams - Current revenue is primarily derived from applications built on the aiWARE platform, with a significant focus on media and entertainment [31][36] - The introduction of Veritone Data Refinery (VDR) is expected to drive substantial growth, targeting a $17 billion market for training data in the next 5-7 years [37][41] Customer Engagement and Use Cases - Major clients include ESPN and Disney, with Veritone automating content ingestion and indexing processes [16][24] - The company processes over 60 million hours of audio and video annually, equating to approximately 11 petabytes of data [25] Public Sector Expansion - Veritone has made significant inroads into the public sector, working with the Department of Defense (DOD) and Department of Justice (DOJ) [48][55] - The technology aids in data management for law enforcement, enhancing the speed and efficiency of investigations [53][54] Additional Insights - Veritone's platform is agnostic, operating on AWS and Azure, allowing flexibility for clients [26] - The company maintains a high customer retention rate (90 percentile), indicating strong client satisfaction and loyalty [58] - Veritone positions itself as a leader in audio and video understanding, claiming no other company matches its capabilities in this domain [27] Financial Metrics - Revenue from end applications is approximately $60 million, with expectations for significant growth from VDR in 2025 and beyond [31][43] - Contracts for VDR are six figures and higher, indicating strong market interest and potential for revenue generation [44] Conclusion - Veritone is transitioning back to its core AI focus after diversifying into various sectors, with a strong emphasis on leveraging unstructured data for both commercial and public sector applications [36][60] - The company is poised for growth, particularly with the introduction of VDR and its established presence in the media and public sectors, making it a potentially undervalued stock in the AI market [62]

Core Insights - The performance of Shutterstock's international operations is crucial for understanding its financial strength and growth potential [1][2] - The company's total revenue for the quarter ending March 2025 was $242.62 million, reflecting a year-over-year increase of 13.2% [4] International Revenue Breakdown - Europe generated $66.18 million in revenue, accounting for 27.28% of total revenue, which was a surprise of -4.6% compared to the consensus estimate of $69.37 million [5] - The Rest of the World contributed $56.23 million, representing 23.18% of total revenue, with a surprise of -7.65% against the expected $60.89 million [6] Future Revenue Predictions - Analysts project Shutterstock's revenues for the ongoing fiscal quarter to reach $274.77 million, a 24.9% increase from the previous year, with Europe and Rest of the World expected to contribute $67.89 million and $59.41 million, respectively [7] - For the full year, total revenue is anticipated to be $1.07 billion, indicating a 14.3% increase from the prior year, with Europe and Rest of the World expected to account for $284.63 million and $249.66 million, respectively [8] Market Dependency and Trends - Shutterstock's reliance on global markets for revenue presents both opportunities and risks, making the monitoring of international revenue trends essential for predicting future performance [9] - The increasing global interconnections and geopolitical tensions are factors that analysts consider when adjusting earnings predictions for companies with international operations [10] Stock Performance - Over the past month, Shutterstock's stock has increased by 30.6%, outperforming the Zacks S&P 500 composite's 9.1% rise [12] - In contrast, the company's shares have declined by 31% over the past three months, while the S&P 500 has only seen a 3.1% decline [12]

Financial Data and Key Metrics Changes - First quarter revenue for 2025 was $224.1 million, representing growth of 0.8% or 2.6% on a currency neutral basis [4][11] - Adjusted EBITDA was $70.1 million for the quarter, down 0.1% or up 2.2% on a currency neutral basis [4][16] - Annual subscription revenue accounted for 57.2% of total revenue, up from 54.7% in Q1 of the previous year [12] - Free cash flow was negative $0.3 million, down from $7.1 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Subscription revenue grew by 5.4% or 7.2% on a currency neutral basis, driven primarily by growth in premium access [12] - Paid downloads decreased slightly to $93 million, while video attachment rate increased to 16.7% from 14% [13] - Editorial revenue increased by 4% year on year to $82.6 million, while creative revenue decreased by 4.8% year on year to $132.2 million [13][14] - Other revenue increased to $9.3 million, driven by new multiyear creative content deals [15] Market Data and Key Metrics Changes - Currency neutral revenue growth of 6.4% in The Americas, while EMEA was down 3% and APAC was down less than 1% [15] - The company experienced a mid single-digit decline in its media business, primarily due to the impact of the LA fires [14] Company Strategy and Development Direction - The company is committed to investing in core assets and evolving its offerings to deepen relevance for customers [10] - The annual subscription business represents more than half of total revenue, positioning the company to adapt to potential macroeconomic uncertainties [9] - The company is focused on expanding its customer base, annual subscription business, and geographic footprint [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged early FX pressures and tariff-driven uncertainty impacting customer investments [5][11] - The company expects to navigate challenging environments by remaining flexible and financially disciplined [9] - Guidance for full year 2025 anticipates revenue of $931 million to $968 million, reflecting a decrease of 0.9% to an increase of 3.1% year over year [21] Other Important Information - The proposed merger with Shutterstock is under regulatory review, with expectations for closure in the second half of 2025 [8][9] - The company completed refinancing of its term loan structure, extending maturity to February 2030 [19] Q&A Session Summary Question: Can you elaborate on the subscription mix shift to corporate and the demand perspective? - Management noted a continued trend of building internal corporate marketing groups, which drives subscription growth [28] Question: Are the impacts from LA fires, FX pressures, and broader macro uncertainties resolved? - Management confirmed that while some impacts are expected to continue, they have baked these uncertainties into their guidance [33] Question: What is the expected acceleration in currency neutral guidance and data licensing revenue? - Management indicated no significant changes in data licensing revenue expectations and noted growth opportunities in subscription and video [44] Question: Can you provide an update on the company's Gen AI offering and client adoption? - Management reported consistent adoption of Gen AI offerings, with revenue still in the single-digit millions but growing steadily [54] Question: How has client spending been affected by tariff uncertainty since Liberation Day? - Management observed a decline in agency business, attributing it to macro uncertainties rather than direct tariff impacts [58]