Group 1 - Getty Images Holdings, Inc. plans to release its second quarter 2025 results after market close on August 11, 2025, followed by a conference call at 4:30 p.m. Eastern Time [1] - The conference call can be accessed via phone or through a webcast on the company's Investor Relations website [2][3] - Getty Images is a leading global visual content creator and marketplace, serving customers worldwide through its brands including Getty Images, iStock, and Unsplash [4] Group 2 - The company collaborates with nearly 600,000 content creators and over 350 content partners, covering more than 160,000 events annually [4] - Getty Images offers innovative solutions, including generative AI technologies, to enhance the creative process for its customers [5]

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]

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][17] - Annual subscription revenue was 57.2% of total revenue in Q1, up from 54.7% in Q1 of last year [12] - Free cash flow was negative $0.3 million, down from $7.1 million in Q1 2024 [19] 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 were down slightly at $93 million, while video attachment rate rose to 16.7% from 14% in the previous year [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] Market Data and Key Metrics Changes - Revenue growth of 6.4% in The Americas, while EMEA was down 3% and APAC was down less than 1% [15] - The annual subscription revenue retention rate was 92.7%, up from 90% in the previous year [12] Company Strategy and Development Direction - The company is committed to investing in core assets and evolving offerings to deepen relevance for customers [10] - The annual subscription business represents more than half of total revenue, positioning the company to adapt to macroeconomic uncertainties [9] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue was impacted by early FX pressures, tariff-driven uncertainty, and softness in agency and entertainment sectors [5][11] - The company expects to close the merger with Shutterstock in the second half of 2025, pending regulatory approvals [9][8] - 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 [22] Other Important Information - The company completed refinancing of its term loan structure, extending maturity to February 2030 [20] - Total debt outstanding was $1.36 billion, with a net leverage of 4.1 times [20] Q&A Session Summary Question: Can you elaborate on the mix shift to corporate subscriptions and the demand perspective? - Management indicated a continued trend of building internal corporate marketing groups, which drives subscription growth [29] Question: Are the impacts from FX, tariff uncertainty, and LA fires resolved? - Management confirmed that while some impacts persist, they are largely baked into the guidance [32] Question: What is the expected acceleration in currency neutral guidance and data licensing revenue? - Management stated that data licensing revenue remains unchanged, with growth expected from new customers and geographic markets [42] Question: Can you provide an update on litigation regarding copyright protections against AI training? - Management explained ongoing litigation with Stability AI to clarify whether training on copyrighted material requires permission [46] Question: What is the current status of the company's Gen AI offering and client adoption? - Management reported consistent but slow adoption of Gen AI offerings, with revenue still in the single-digit millions [55]

Core Insights - Getty Images reported a revenue of $224.1 million for Q1 2025, reflecting a year-over-year increase of 0.8% and a currency neutral growth of 2.6% [5][6] - The company experienced a net loss of $102.6 million in Q1 2025, compared to a net income of $13.6 million in Q1 2024, primarily due to increased tax expenses and foreign exchange losses [6][31] - Annual subscription revenue grew to 57.2% of total revenue, up from 54.7% in Q1 2024, with a 5.4% increase in annual subscription revenue year-over-year [5][6] Financial Performance - Q1 2025 revenue breakdown: Creative revenue was $132.2 million (down 4.8% YoY), Editorial revenue was $82.6 million (up 4.0% YoY) [6][48] - Adjusted EBITDA for Q1 2025 was $70.1 million, slightly down 0.1% year-over-year, with an adjusted EBITDA margin of 31.3% [6][44] - Free cash flow for Q1 2025 was $(0.3) million, a decrease from $7.1 million in the prior year [6][47] Liquidity and Balance Sheet - As of March 31, 2025, the company had an ending cash balance of $114.6 million, down from $121.2 million at the end of 2024 [6][49] - Total debt stood at $1.36 billion, including $300 million in senior notes and a term loan balance of $1.06 billion [6][14] - The company has $150 million available through its undrawn Revolver, resulting in total available liquidity of $264.6 million [6][49] Business Highlights - The company signed new exclusive partnerships with WWE, Major League Soccer, and the National Women's Soccer League, and renewed partnerships with UEFA [15] - Getty Images is working towards a merger with Shutterstock, which is expected to close in the second half of 2025, pending regulatory approvals [17][19] Key Performance Indicators - Total purchasing customers decreased by 7.9% to 708,000, while active annual subscribers increased by 21.2% to 318,000 [7][8] - The annual subscriber revenue retention rate improved to 92.7%, up from 90.0% in the previous year [8] - The image collection grew to 582 million, and the video collection increased to 34 million, reflecting growth of 6.9% and 16.3% respectively [8]

Financial Data and Key Metrics Changes - In Q4 2024, revenue grew to $247.3 million, representing a 9.5% increase or 8.5% on a currency-neutral basis [9][18] - For the full year 2024, revenue was $939.3 million, an increase of 2.5% on both reported and currency-neutral basis [10][18] - Adjusted EBITDA for Q4 was $80.6 million, up 11.7% year-over-year, with an adjusted EBITDA margin of 32.6%, an increase from 31.9% in Q4 2023 [28][29] - Full year adjusted EBITDA was $300.3 million, down 0.4% reported and 0.3% on a currency-neutral basis, with a margin of 32% compared to 32.9% in 2023 [29] Business Line Data and Key Metrics Changes - Annual subscription revenue accounted for 54.9% of total revenue in Q4, growing approximately 11% on both reported and currency-neutral basis [19] - Paid downloads decreased slightly to $93 million, while video attachment rate increased to 16.5% from 14.1% in Q4 2023 [21] - Editorial revenue was $90.1 million, up 19% year-on-year, driven by demand for editorial content during major events [22] - Creative revenue was $142.4 million, down 2.4% year-on-year, primarily due to a shift in consumption from creative to editorial content [23] Market Data and Key Metrics Changes - The Americas region saw a revenue increase of 15.9% in Q4 on a currency-neutral basis, while APAC was up 0.4% and EMEA down just under 1% [18] - The company added 78,000 active annual subscribers, reaching a total of 314,000, with 54% being new customers [19] Company Strategy and Development Direction - The merger with Shutterstock is viewed as a transformational opportunity, aimed at creating a strong financial foundation and enhancing value for customers and shareholders [8] - The company continues to invest in core assets and evolve its offerings, including the launch of natural language search and AI capabilities [14][15] - Focus remains on delivering sustainable customer value and increasing margins and cash flow through the merger [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future despite challenges such as the Los Angeles fires impacting operations [15] - The company anticipates revenue for 2025 to be between $918 million and $955 million, reflecting a slight decline to modest growth year-over-year [40] - Adjusted EBITDA for 2025 is expected to be between $272 million and $290 million, down 9.5% to 3.3% year-over-year [41] Other Important Information - Free cash flow for Q4 was $24.6 million, an increase from $18.6 million in Q4 2023, while full year free cash flow was $60.9 million, down from $75.7 million in 2023 [32] - The company finished 2024 with $121.2 million in cash and total debt outstanding of $1.3 billion, with a net leverage of 3.97 times, down from 4.2 times at year-end 2023 [33][34][35] Q&A Session Summary Question: Update on generative AI uptake and monetization - Management noted that AI service uptake is growing at a modest pace, primarily among existing customers using the technology to modify imagery [48][49] Question: Factors driving Q4 outperformance relative to guidance - The outperformance was attributed to strong top-line growth, favorable gross margin, and recovery in production post-strikes [51][53] Question: Outlook for 2025 revenue growth by segment and data licensing revenue - Management does not provide specific segment guidance but expects continued stabilization in Agency and growth in Corporate, with modest data licensing revenue [60][62]