Financial Data and Key Metrics - Revenue for Q3 2024 was 80.6 million, up 0.4% on a reported basis and 0.8% on a currency-neutral basis, with an EBITDA margin of 33.5% [4] - Annual subscription revenue accounted for 52.4% of total revenue, with 96,000 new active annual subscribers added, reaching a total of 298,000, a 48% increase over the comparable LTM period [10] - Editorial revenue was 133.7 million, down 7.9% year-on-year [11][13] - Free cash flow showed a deficit of 12.8 million generated in Q3 2023 [16] Business Line Performance - Subscription business saw outstanding performance, with subscribers growing by nearly 50% versus the comparable LTM period, driven by iStock and Unsplash+ offerings [5] - Custom Content offering saw success with brands like Citi, Mitsubishi Motors, HSBC, Asahi, and 3M leveraging Getty Images for their content needs [6] - AI-related activations, such as the partnership with Sony Pictures for the Venom series, demonstrated the company's capabilities in generative AI [7] - iStock annual subscriptions grew approximately 17%, while Unsplash+ subscriptions grew triple digits [14] Market Performance - On a currency-neutral basis, revenue increased by 9.9% in the Americas, 1.3% in APAC, and EMEA was down less than 1% [10] - The company added approximately 18,000 new customers from targeted growth markets in EMEA, LATAM, and APAC [10] Strategic Direction and Industry Competition - The company is focused on driving growth through subscriptions, cross-selling, and upselling opportunities, particularly with its Premium Access subscription offering [5][6] - AI and generative AI capabilities are seen as a key growth area, with incremental adoption expected to contribute more significantly in 2025 [22][23] - Data licensing opportunities are being explored, with a focus on long-term alignment with the company's interests and those of its creators [24] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, citing differentiation, execution, and commitment to providing durable value to customers [8] - The company is strategically investing in the business while maintaining fiscal discipline and paying down debt [20] - Full-year 2024 revenue guidance was increased to 943 million, with adjusted EBITDA guidance raised to 294 million [18][19] Other Important Information - The company repaid 55.2 million applied towards debt repayment year-to-date [17] - Total debt outstanding as of September 30, 2024, was $1.35 billion, with a net leverage ratio of 4.2x [17] Q&A Session Summary Question: Update on GenAI adoption and data licensing opportunities - GenAI adoption is still in the early stages, with single-digit percentages of customers adopting these capabilities, but it is expected to become more material in 2025 [22] - Data licensing deals are being pursued selectively, with a focus on long-term alignment with the company's interests and those of its creators [24]
Getty Images (GETY) - 2024 Q3 - Earnings Call Transcript