Table of Contents FORM 10-Q ___________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35669 _____________________________________________________________________ SHUTT ...

Shutterstock, Inc. (NYSE:SSTK) Q1 2024 Earnings Conference Call May 2, 2024 8:30 AM ET Company Participants Chris Suh - VP, IR & Corporate Development Paul Hennessy - CEO Jarrod Yahes - CFO Conference Call Participants Bernie McTernan - Needham Agnieszka Pustula - Redburn Nitin Bansal - Bank of America Kieran Kenny - Morgan Stanley Operator Thank you for standing by. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 2024 Shutterstock Earn ...

Execution Version SHARE PURCHASE AGREEMENT BY AND AMONG SHUTTERSTOCK AUS EMU PTY LTD, ENVATO PTY LTD, THE SHAREHOLDERS OF ENVATO PTY LTD, SHUTTERSTOCK, INC. Exhibit 2.1 AND THE SELLERS' REPRESENTATIVE Dated as of May 1, 2024 | | SECTION 1 DEFINITIONS AND INTERPRETATIONS | 1 | | --- | --- | --- | | 1.1 | Certain Definitions | 1 | | 1.2 | Interpretation | 29 | | | SECTION 2 DESCRIPTION OF TRANSACTION | 31 | | 2.1 | Share Purchase | 31 | | 2.2 | Consideration | 31 | | 2.3 | No Further Right of Transfers | 32 | ...

Shutterstock (SSTK) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.95%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $0.68 per share when it actually produced earnings of $0.72, delivering a surprise of 5.88% ...

NEW YORK, May 2, 2024 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, today announced that it entered into a definitive agreement to acquire Envato Pty Ltd. ("Envato"), a leader in digital creative assets and templates. Envato's flagship product, Elements, is a creative subscription providing unlimited downloads of a diverse array of assets, templates and more—an intel ...

NEW YORK, April 11, 2024  /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, will report its first quarter 2024 business and financial results on Thursday May 2, 2024 before the market opens.The company will host a conference call at 8:30 a.m. ET to discuss the results. The conference call is being webcast live and can be accessed by either visiting the Company's website ...

Share Repurchases and Dividends - The company repurchased approximately 634,500 shares of common stock at an average cost of $44.45 per share under the 2023 Share Repurchase Program, with $71.8 million remaining authorization as of December 31, 2023[229] - Total repurchases under the 2015, 2017, and 2023 Share Repurchase Programs amounted to approximately 4.4 million shares at an average per-share cost of $51.74[235] - The company repurchased 203,168 shares of its common stock in Q4 2023 at an average price of $45.29 per share, with $71.8 million remaining under the $100 million repurchase authorization[230][233] - The company's dividend policy, initiated in 2020, continues with quarterly cash dividends, subject to board approval and financial conditions[227] - The company's share repurchase programs authorized up to $200 million in repurchases, which were fully utilized by December 31, 2022[228] Ownership and Governance - The company's founder and Executive Chairman, Jonathan Oringer, owns approximately 31% of the outstanding common stock, which may influence major strategic decisions and stockholder approvals[188] - The company had 35,544,416 shares of common stock outstanding as of February 21, 2024[193] - The company's market value of voting and non-voting common stock held by non-affiliates was $1,203,063,393 as of June 30, 2023[5] Revenue and Financial Performance - The company's total revenue for 2023 was $874.6 million, with Content revenue contributing $737.3 million and Data, Distribution, and Services revenue contributing $137.3 million[245] - Revenue increased by $46.8 million (6%) to $874.6 million in 2023 compared to 2022, with a 5% increase on a constant currency basis[281] - Data, Distribution, and Services revenues surged by 256% to $137.3 million in 2023, driven by growth in data offerings and $10.5 million from Giphy[283] - Enterprise revenues grew by 33% to $434.6 million in 2023, fueled by data offerings and contributions from acquisitions like Pond5 and Splash News[285] - E-commerce revenues declined by 12% to $439.9 million in 2023, impacted by weak new customer acquisition, partially offset by Pond5's full-year contribution[284] - Content license revenues declined by 7% to $737.3 million in 2023, impacted by weak customer acquisition, partially offset by Pond5's growth[282] - Net income increased by $34.2 million (45%) to $110.3 million in 2023, driven by a $50.3 million bargain purchase gain and lower tax provisions[280] - Revenue increased by $54.4 million (7%) to $827.8 million in 2022, with 18% and 7% of revenues denominated in Euro and Pounds Sterling, respectively[299] - Data, Distribution, and Services revenues increased by 142% to $38.5 million in 2022, driven by growth in the data offering and Shutterstock Studios[301] - Enterprise revenues increased by 15% to $326.4 million in 2022, driven by growth in the data offering and acquisitions of Pond5 and Splash News[303] - Shutterstock's total revenue for 2023 was $874.6 million, with Content revenue at $737.3 million and Data, Distribution, and Services revenue at $137.3 million[18] Customer and Subscriber Metrics - The company had over 2.0 million active, paying customers in 2023, with 153.0 million paid downloads across all brands[249] - Subscriber revenue for 2023 was $351.5 million, with 523,000 subscribers at the end of the period[264] - Average revenue per customer for the last twelve months was $412 in 2023, up from $341 in 2022[264] - Revenue per download increased to $4.72 in 2023, compared to $4.40 in 2022[264] - Paid downloads decreased to 153.0 million in 2023 from 173.3 million in 2022, with revenue per download rising to $4.72 from $4.40[286] - Revenue per download increased by 6% to $4.40 in 2022, primarily due to changes in product mix and a reduction in paid download volumes[304] - Subscribers are defined as customers purchasing monthly recurring products for at least three months, with subscriber growth seen as an indicator of platform engagement and future growth potential[258] Content and Data Offerings - The company's Data, Distribution, and Services offerings include metadata utilization, Giphy platform integration, and Shutterstock Studios' customized content creation solutions[252][255] - The company's metadata offering has seen increased demand for machine learning and generative AI model training, serving a diverse customer base from large tech companies to startups[253] - The company's content collection grew to 771 million images and 54 million footage clips as of December 31, 2023[249] - Shutterstock's Data, Distribution, and Services offerings include metadata licenses, Giphy distribution and advertising services, and Shutterstock Studios' custom content and production tools[17] - The company's metadata is in high demand for machine learning and generative AI model training, with customers ranging from large tech companies to startups[24] - Shutterstock launched AI image creator and Creative AI-powered editing tools in 2023, offering features like Magic Brush, Variations, Expand Image, Smart Resize, and Background Remover[28] Cybersecurity and Privacy - The company has implemented a layered governance structure for privacy and cybersecurity, including compliance with GDPR, UK Data Protection Law, LGPD, and CPRA[212] - The company conducts annual PCI compliance certification and maintains a bug bounty program and penetration testing to identify and remediate vulnerabilities[213] - The company's cybersecurity strategy includes oversight by a CISO with over 20 years of experience, supported by management-level committees and a cybersecurity incident team[217] - The EU-U.S. Data Privacy Framework, established in October 2022 and extended to the U.K. in October 2023, requires self-certification for data transfers, impacting compliance efforts[147] - Cybersecurity risks could lead to significant capital expenditures, business interruptions, and reputational harm, despite ongoing efforts to safeguard systems[156] Costs and Expenses - The company's cost of revenue includes royalties paid to contributors, which represent the largest component of operating expenses and fluctuate proportionately with revenue and paid downloads[250][270] - Cost of revenue increased by $38.3 million (12%) to $352.6 million in 2023, primarily due to higher depreciation, royalty costs, and Giphy-related expenses[289] - Product development expenses rose by $30.7 million (47%) to $96.2 million in 2023, driven by Giphy-related costs and investments in new products[291] - Sales and marketing expenses grew by $11.6 million (6%) to $214.7 million in 2023, driven by higher employee and consultant costs, including Giphy-related expenses[290] - General and administrative expenses increased by $10.0 million (8%) to $142.6 million in 2023, driven by higher non-cash equity-based compensation and Giphy employee-related costs[292] - Cost of revenue increased by $36.6 million (13%) to $314.3 million in 2022, driven by increased depreciation, royalty costs, and website hosting expenses[306] - Product development expenses increased by $13.4 million (26%) to $65.4 million in 2022, driven by higher employee and third-party contractor costs[308] - Marketing expenses in 2023, 2022, and 2021 were approximately $93.1 million, $97.2 million, and $112.9 million, respectively, with expectations for continued significant spending[93] - Product and development costs in 2023, 2022, and 2021 were approximately $96.2 million, $65.4 million, and $52.0 million, respectively, with potential future increases as the company continues to innovate[96] Tax and Compliance - The company is subject to a 1% excise tax on stock repurchases under the Inflation Reduction Act of 2022, which could increase the cost of future share repurchases[190] - The company faces potential tax liabilities and compliance burdens due to the taxation of e-commerce transactions across multiple jurisdictions, which could impact financial condition[183] Technology and Infrastructure - The company's proprietary AI technology and large-scale datasets power search algorithms and SEO, enhancing content discovery for customers[40] - The company's technology infrastructure supports public-facing web properties and back-office systems, with a focus on proprietary software development[46] - The company has expanded its use of content delivery network solutions to ensure high-speed global access to its platform[52] - The company primarily uses third-party cloud hosting providers to ensure scalable, reliable, and secure global infrastructure, allowing it to focus on scaling its business and meeting global customer demand[51] - The company's growth depends on technological innovation, including expanding capabilities for footage and music track management, requiring significant infrastructure investments[96] Marketing and Customer Acquisition - Marketing investments represent a significant percentage of revenue, with efforts including search engine optimization, paid search, and social media to manage customer acquisition costs and achieve targeted returns[53] - The company's marketing efforts create a self-reinforcing network effect, attracting more paying customers and increasing contributor earnings, which in turn drives more content submissions and customer retention[55] - The company's revenue growth depends on increasing brand awareness and market share, with significant resources allocated to advertising and marketing efforts[99] - Pricing strategies are sensitive to external factors, including competition and technology costs, which could impact sales and margins[92] - The company's marketing efforts, including SEM, SEO, and social media, may not succeed due to execution challenges or external factors beyond control[93] Content Licensing and Contributor Management - The company's subscription-based pricing model offers monthly subscriptions and other contractual plans for content licenses, catering to varying customer needs[36] - The company's contributor website operates in 29 languages, allowing contributors to register and upload content directly through the website or mobile application[38] - Contributors are required to add a descriptive title and up to 50 keywords to each image and footage submission, with AI-driven tools providing keyword suggestions[40] - Contributors can monitor download activity by content type and geography, with insights provided into seasonal and current customer search trends[44] - The company's content review process uses proprietary AI technology and a trained team of reviewers, ensuring high-quality and licensable content[39] - Contributors earn royalties based on a tiered earnings rate schedule tied to annual licensing volume, with the ability to remove content from the collection[43] - The company continuously enhances its content collection through direct acquisitions, strategic partnerships, and exclusive distribution agreements[45] - Content on the platform is licensed under perpetual, royalty-free licenses, with custom content offered on an exclusive basis, while contributors are not typically required to provide content exclusively[57] Intellectual Property and Legal Risks - The company's indemnification obligations under license agreements are capped at amounts ranging from $10,000 to $250,000, with exceptions for certain products where obligations may be uncapped[59] - The company owns a portfolio of trademarks, domain names, copyrights, and patents, which are critical to its business and marketing efforts[61] - The company faces risks from intellectual property claims, which are costly and time-consuming to litigate, potentially harming financial condition and reputation[141] Competition and Market Position - The company faces competition from a wide range of entities, including large media companies, emerging AI technologies, and individual content creators, with low barriers to entry in the industry[88] - Key competitive factors include content quality, licensing options, technology use, brand recognition, and customer service, with competitors potentially offering more attractive or innovative products[89] - The company's growth strategy relies on network effects, where a growing customer base attracts more contributors, increasing content selection and attracting additional paying customers[86] - The company's ability to attract and retain customers and contributors is critical to its success, with any decrease in platform attractiveness potentially leading to revenue loss[87] Expansion and Innovation - Expansion into new content categories, such as Shutterstock Editorial and AI-generated content, and new services like Shutterstock Studios, involves increased capital and marketing spend[102] - The company's growth depends on technological innovation, including expanding capabilities for footage and music track management, requiring significant infrastructure investments[96] Stock Performance and Market Trends - Shutterstock's stock price performance from 2018 to 2023 shows a growth from 100.00 to 142.39, compared to NYSE Composite's growth from 100.00 to 167.12 and S&P Software & Services Select Industry's growth from 100.00 to 204.92[238] Operational and Geographic Reach - Shutterstock operates in over 150 countries and licenses content from contributors in over 100 countries, relying on secure processing and transmission of confidential information[214] - Customer service teams operate in over 20 languages and 150 countries, with teams located in Singapore, Berlin, and New York[56] Other Financial Metrics - The company recognized a bargain purchase gain of $50.3 million in 2023 related to the acquisition of Giphy[293] - Impairment of lease and related assets was $18.7 million in 2022, primarily due to the abandonment of certain office spaces[294] - Other income in 2023 included $4.8 million of interest income and $0.9 million of favorable unrealized foreign currency fluctuations, partially offset by $1.9 million of interest expense[295]

Shares of digital photograph printing company Shutterstock (SSTK -5.20%) fell 5.5% through 12:05 p.m. ET on Wednesday, after the company reported mixed earnings last night.Heading into earnings day, analysts had forecast Shutterstock would report $0.67 per share in adjusted profit on $224 million in sales for its fourth quarter of 2023. As it turned out, Shutterstock beat the profits target, reporting a profit of $0.72 per share. Sales, however, came up short at only $217.2 million. Shutterstock Q4 earnings ...

Shutterstock, Inc. (NYSE:SSTK) Q4 2023 Earnings Conference Call February 21, 2024 8:30 AM ET Company Participants Chris Suh - Vice President of Investor Relations and Corporate Development Paul Hennessy - CEO Jarrod Yahes - CFO Conference Call Participants Bernie McTernan - Needham Youssef Squali - Truist Securities Andrew Boone - JMP Securities Nitin Bansal - Bank of America Operator Good day and thank you for standing by. Welcome to the Q4 2023 Shutterstock Earnings Conference Call. At this time, all part ...

Shutterstock (SSTK) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $0.83 per share when it actually produced earnings of $1.26, delivering a surprise of 51.81% ...