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]

Core Viewpoint - Shutterstock (SSTK) shows potential for significant upside, with a mean price target of $40.46 indicating a 30.4% increase from its current price of $31.02 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $12.50, indicating variability among analysts; the lowest estimate is $28.85 (7% decline), while the highest is $56 (80.5% increase) [2] - A low standard deviation suggests strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about SSTK's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which correlates with potential stock price increases [9] - Over the past 30 days, one estimate has increased, leading to a 12.1% rise in the Zacks Consensus Estimate for the current year [10] Zacks Rank and Investment Potential - SSTK holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [12]

Core Insights - Shutterstock, Inc. will report its fourth quarter 2024 business and financial results on February 25, 2025, before the market opens [1] - The company has entered into a definitive merger agreement with Getty Images Holdings, Inc., and will not host a conference call or provide financial guidance for its fourth quarter results [2] Company Overview - Shutterstock, Inc. is a leading global creative platform that offers high-quality creative content for transformative brands, digital media, and marketing companies [3] - The company provides a diverse collection of resources including 3D models, videos, music, photographs, vectors, and illustrations, supported by millions of creators worldwide [3] - Shutterstock is recognized for its innovative technology and comprehensive selection of resources that empower storytelling [3]

Group 1: Stock Performance and Price Targets - Shutterstock (SSTK) closed at $31.44, with a 4.6% gain over the past four weeks, and a mean price target of $40.46 indicating a 28.7% upside potential [1] - The average price target ranges from a low of $28.85 to a high of $56, with a standard deviation of $12.50, suggesting variability in analyst estimates [2] - The consensus price target is often viewed as a key metric, but relying solely on it for investment decisions may not be prudent due to concerns about analysts' biases [3] Group 2: Analyst Sentiment and Earnings Estimates - Strong agreement among analysts regarding SSTK's ability to report better earnings than previously predicted supports the potential for stock upside [4] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 12.1%, indicating positive sentiment in earnings revisions [10] - SSTK holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong near-term potential [11] Group 3: Caution on Price Targets - Price targets, while informative, can mislead investors and do not reliably indicate actual stock price movements [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - A low standard deviation in price targets indicates a high degree of agreement among analysts, which can be a starting point for further research [7]

Shutterstock's Participation in Sundance Film Festival 2025 - Shutterstock returns as the Official House Photographer and Portrait Studio Partner for the 2025 Sundance Film Festival, showcasing its editorial capabilities and capturing high-quality moments from the event [4][8] - The company will bring back its exclusive Shutterstock Chalet, a VIP house for high-profile guests, and co-host an invitation-only Awardist Party with Entertainment Weekly [1] - GIPHY, the world's leading GIF platform, will be integrated into Shutterstock's digital content collection, creating bespoke GIFs on-site at the festival [1] Shutterstock's Editorial and Creative Services - Shutterstock Editorial covers over 12,000 VIP events annually, capturing iconic content through raw footage, media edits, and social media-ready assets [2] - Shutterstock Studios, the company's creative division, will participate in BrandStorytelling 2025, hosting a panel session on audience engagement and brand storytelling [5][9] - The company offers end-to-end custom creative services, including data-driven content strategy, full-scale production, and brand amplification for influential brands [9] Shutterstock's Global Platform and Resources - Shutterstock is a leading global platform for licensing high-quality 3D models, videos, music, photographs, vectors, and illustrations, empowering transformative storytelling [3][6] - The company boasts the world's largest network of top photographers and creators, along with tools that enhance the creative process for businesses and creatives [6] - Shutterstock's resources are designed to help storytellers and business leaders achieve impactful storytelling through its extensive and diverse content collection [3][6]

Core Viewpoint - The merger between Shutterstock and Getty Images, valued at $3.7 billion, aims to create a dominant entity in the visual content market, responding to the evolving digital media landscape and presenting both opportunities and challenges for investors [1][13]. Industry Overview - The visual content market is experiencing rapid transformation due to increasing demand across industries and the rise of social media platforms, prompting the merger as a strategic response [2]. - The merger is expected to enhance the competitive edge of the combined entity by leveraging extensive libraries and resources, particularly in the context of rising AI-generated content [3][9]. Deal Structure - The merger is structured as a "merger of equals," allowing Shutterstock shareholders to choose between cash, shares of the new entity, or a mixed consideration [5][6]. - Post-merger, Getty Images stockholders will hold approximately 54.7% of the combined company, while Shutterstock stockholders will retain 45.3% [6]. Synergies and Cost Savings - The merger is projected to unlock annual cost savings of $150 million to $200 million within the first three years through streamlined operations [8]. - The combined company plans to accelerate investment in innovative technologies, including AI-driven tools, to enhance content creation and delivery [9]. Financial Outlook - The merger is expected to strengthen the financial profile of the new entity, improving cash flow and enabling accelerated debt repayment, which could reduce borrowing costs [9]. - Earnings per share and cash flow per share are anticipated to increase in the second year following the merger [9]. Competitive Landscape - The merged entity will face significant competition from established players like Adobe and emerging companies utilizing AI for visual content generation [12]. - The integration of two large organizations presents challenges, including potential inefficiencies and the need to address regulatory approvals [10][11]. Future Considerations - The success of the merger will depend on regulatory approvals, effective integration, and navigating the competitive landscape, particularly the threat posed by AI-generated content [13]. - Investors are advised to monitor the merger's progress closely, focusing on regulatory developments and the financial performance of the combined company [14].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers a wide range of sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, and Sydney [2] Group 2 - The company emphasizes the use of technology to enhance workflows and improve content delivery [4] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5] - The team consists of experienced journalists who bring valuable expertise to the production of financial news [4]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Getty Images is acquiring Shutterstock to form a visual content company valued at $3.7 billion, responding to competition from AI-generated images [1][2]. Company Overview - The merger aims to combine complementary portfolios, offering a wider range of still imagery, video, music, 3D, and other media to customers [2]. - Getty Images CEO Craig Peters will lead the combined entity, emphasizing the growing demand for compelling visual content [2][3]. Shareholder Structure - Upon completion of the merger, Getty Images shareholders will hold approximately 54.7% of the new company, while Shutterstock shareholders will own about 45.3% [3]. Shareholder Options - Shutterstock shareholders have the option to receive either approximately $28.85 in cash per share, about 13.67 shares of Getty Images for each share of Shutterstock, or a combination of 9.17 shares of Getty Images plus $9.50 in cash for each share of Shutterstock [4]. Corporate Structure - The merged company will operate under the Getty Images name and will continue trading on the New York Stock Exchange with the ticker symbol 'GETY' [5]. - The board will consist of 11 members, including Peters, six directors from Getty Images, and four from Shutterstock, with Mark Getty as chairman [5]. Market Reaction - Following the announcement, shares of Shutterstock increased by over 30%, while Getty Images' stock rose more than 58% [7].

Shares of Getty Images Holdings, Inc. GETY are blasting off Tuesday. The company announced that it is merging with Shutterstock, Inc. SSTK. This will create a $3.7 billion visual content company.The chart of Getty illustrates an important market dynamic. Even when there is major fundamental news, technicals can still come into play. This is why it is our Stock of the Day.In the market, certain price levels are more important than others. This can be seen on the chart below. The $3.85 level has been importan ...