Core Viewpoint - Shutterstock reported quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.26 per share, and down from $1.13 per share a year ago [1][2] Financial Performance - The earnings surprise was -18.25%, and the company had a previous quarter surprise of -27.17% with actual earnings of $0.67 per share against an expectation of $0.92 [2] - Revenues for the quarter were $242.62 million, missing the Zacks Consensus Estimate by 8%, compared to $214.32 million in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus revenue estimates twice [3] Stock Performance - Shutterstock shares have declined approximately 45.9% since the beginning of the year, while the S&P 500 has decreased by 4.7% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $274.77 million, and for the current fiscal year, it is $5.39 on revenues of $1.07 billion [8] - The outlook for the industry, specifically the Internet - Content sector, is in the bottom 31% of over 250 Zacks industries, which may impact stock performance [9]

Financial Performance - Revenue for Q1 2025 was $242.62 million, a 13.2% increase from $214.32 million in Q1 2024[16] - Net income for Q1 2025 was $18.69 million, compared to $16.12 million in Q1 2024, representing a 15.9% increase[16] - Earnings per share (EPS) for Q1 2025 were $0.54 (basic) and $0.53 (diluted), up from $0.45 (both) in Q1 2024[16] - Total revenue for the three months ended March 31, 2025, was $242.62 million, a 13.2% increase from $214.32 million in the same period of 2024[240] - Content revenue increased to $202.9 million in Q1 2025 from $173.8 million in Q1 2024, representing a 16.7% growth[112] - Net income for the three months ended March 31, 2025, was $18.7 million, compared to $16.1 million in Q1 2024, reflecting a 16.3% increase[121] - Basic net income per share rose to $0.54 in Q1 2025 from $0.45 in Q1 2024, while diluted net income per share increased to $0.53 from $0.45[121] - Total other income for Q1 2025 was $14.5 million, significantly higher than $4.2 million in Q1 2024, driven by increased interest income and unrealized gains[113] Assets and Liabilities - Total assets increased to $1.32 billion as of March 31, 2025, compared to $1.31 billion at the end of 2024[14] - Total liabilities decreased to $777.04 million as of March 31, 2025, from $790.81 million at the end of 2024[14] - Cash and cash equivalents at the end of the period were $112.231 million, up from $71.811 million at the end of the same period last year[24] - The company had total long-lived tangible assets of $65.6 million as of March 31, 2025, slightly down from $66.4 million at the end of 2024[127] - As of March 31, 2025, the company had approximately $40.4 million in total other non-lease obligations, primarily related to minimum royalty guarantees[128] Cash Flow and Dividends - Cash dividends paid in Q1 2025 amounted to $11.50 million, compared to $10.66 million in Q1 2024[21] - The company paid cash dividends totaling $11.501 million during the three months ended March 31, 2025, compared to $10.663 million in the same period of 2024[24] - The company experienced a net increase in cash and cash equivalents of $0.980 million for the three months ended March 31, 2025, compared to a decrease of $28.679 million in the same period of 2024[24] Mergers and Acquisitions - The company plans to continue its proposed merger with Getty Images Holdings, Inc., which may impact future financial performance[10] - The company has entered into a merger agreement with Getty Images, with a cash consideration of $9.50 per share and 9.17 shares of Getty Images common stock for each share of Shutterstock common stock[33] - The Company completed the acquisition of Envato for $250.2 million on July 22, 2024, which is expected to enhance its offerings and reach faster-growing audiences[65][66] - The acquisition of Backgrid was completed for approximately $20 million on February 1, 2024, expanding Shutterstock's editorial content offerings[68][69] - The Company incurred approximately $7.0 million in transaction costs related to the Envato acquisition, included in general and administrative expenses[65] Expenses and Costs - Operating expenses for Q1 2025 totaled $232.42 million, an increase from $197.57 million in Q1 2024[16] - The company recorded a bad debt expense of $0.593 million for the three months ended March 31, 2025, compared to a recovery of $1.510 million in the same period of 2024[24] - Depreciation and amortization expense for property and equipment was $10.6 million for the three months ended March 31, 2025, compared to $10.3 million for the same period in 2024[77] - Amortization expense for the three months ended March 31, 2025, was $12.1 million, an increase from $11.0 million in the same period of 2024[84] Revenue Sources - Revenue from U.S. dollars amounted to $177.11 million, up from $153.53 million, reflecting a growth of 15.4% year-over-year[240] - Total foreign currency revenue reached $65.51 million, compared to $60.78 million, indicating an increase of 7.1%[240] - Revenue from Euro was $38.12 million, a rise of 6.8% from $35.85 million in the previous year[240] - Revenue from British pounds increased to $14.70 million, up 25.5% from $11.68 million[240] Tax and Interest - The effective tax rate for Q1 2025 was 8.5%, down from 20.9% in Q1 2024, primarily due to the net effect of discrete items[114] - The company recognized interest expense of $4.3 million for the three months ended March 31, 2025[96] - The interest rate on borrowed amounts ranges from 0.375% to 0.750% based on the company's consolidated net leverage ratio[242] Market and Economic Conditions - The company does not expect a material impact on interest expense from a hypothetical 10% change in interest rates as of March 31, 2025[242] - The company believes inflation has not materially affected its business or financial condition[243] - The company aims to preserve principal while maximizing income through its cash and cash equivalents[241] - The company may face challenges in offsetting significant inflationary pressures through price increases[243] Other Financial Metrics - Total accrued expenses decreased to $107.88 million as of March 31, 2025, from $126.64 million as of December 31, 2024[87] - The company had a remaining borrowing capacity of $94 million under its amended and restated credit agreement as of March 31, 2025[91] - As of March 31, 2025, the company had $53.8 million in unbilled receivables, with $34.4 million recorded in accounts receivable[45] - The allowance for doubtful accounts increased to approximately $3.6 million as of March 31, 2025, from $3.1 million as of December 31, 2024[46] - The identifiable intangible assets from the Envato acquisition include trademarks valued at $31.0 million and developed technology valued at $61.0 million[67]

Financial Performance - First quarter 2025 revenue was $242.6 million, an increase of $28.3 million or 13% compared to the first quarter of 2024[4] - Content revenue grew by $29.1 million, or 17%, to $202.9 million, representing 84% of total revenue[4] - Net income for the first quarter of 2025 was $18.7 million, up $2.6 million from $16.1 million in the same period last year[6] - Adjusted net income increased to $36.3 million, a rise of $3.2 million compared to $33.1 million in the first quarter of 2024[8] - Adjusted EBITDA for the first quarter of 2025 was $63.4 million, reflecting a 13% increase from $56.0 million in the prior year[10] - Subscriber revenue for the first quarter was $109.9 million, compared to $83.9 million in the same period last year[16] - Net income for Q1 2025 was $18.69 million, compared to $16.12 million in Q1 2024, reflecting a 15.9% year-over-year growth[39] - Basic earnings per share increased to $0.54 in Q1 2025 from $0.45 in Q1 2024, while diluted earnings per share rose from $0.45 to $0.53[39] - Adjusted free cash flow was $23.4 million, an increase of $12.1 million from the first quarter of 2024[14] Subscriber Growth - The number of subscribers at the end of the first quarter 2025 reached 1,079,000, a significant increase from 499,000 in the previous year[16] - The number of subscribers at the end of March 31, 2025, reached 1,079,000, up from 523,000 at the end of March 31, 2024[53] Expenses and Liabilities - Operating expenses totaled $232.42 million in Q1 2025, up from $197.57 million in Q1 2024, with a notable increase in general and administrative expenses from $32.08 million to $58.31 million[39] - Total liabilities decreased to $777.04 million from $790.81 million, reflecting a reduction in current liabilities[41] - The company incurred $11.9 million in professional fees related to the proposed merger with Getty Images[6] - The company incurred merger-related costs of $11,861,000 during the three months ended March 31, 2025[49] Merger and Acquisition - Shutterstock announced a merger agreement with Getty Images, creating a premier visual content company, subject to regulatory approvals[28] - The company is in the process of a proposed acquisition of Getty Images, with relevant documents filed with the SEC[32][33] - Forward-looking statements indicate potential risks related to regulatory approvals and integration challenges associated with the acquisition[36] Asset Management - Total assets as of March 31, 2025, were $1.32 billion, up from $1.31 billion at the end of 2024[41] - Cash and cash equivalents increased slightly to $112.23 million from $111.25 million[41] - Accounts receivable rose to $111.74 million, compared to $95.23 million at the end of 2024, indicating improved sales performance[41] Depreciation and Amortization - Total depreciation and amortization for the three months ended March 31, 2025, was $22,671,000, a decrease of 2.6% from $23,287,000 in the previous quarter[58] - Cost of revenue depreciation was $20,742,000 for the quarter, down from $21,191,000 in the prior quarter, reflecting a decrease of 2.1%[58] - General and administrative depreciation increased to $1,929,000, compared to $2,096,000 in the previous quarter, a decrease of 8.0%[58] - Year-over-year comparison shows total depreciation and amortization increased from $21,263,000 in Q1 2024 to $22,671,000 in Q1 2025, representing a growth of 6.6%[58] - The cost of revenue depreciation has shown a consistent increase from $19,874,000 in Q1 2024 to $20,742,000 in Q1 2025, indicating a growth of 4.4%[58] - General and administrative expenses have fluctuated, with a notable increase from $1,346,000 in Q2 2024 to $1,929,000 in Q1 2025, marking a significant rise of 43.2%[58] - The overall trend indicates a gradual increase in depreciation and amortization expenses, which may impact future profitability metrics[58] - The data suggests that the company is managing its depreciation expenses effectively while still investing in growth[58]

Core Insights - Shutterstock reported strong financial performance in Q1 2025, with a 13% increase in total revenue year-over-year, reaching $242.6 million [3][11] - Content revenue grew by 17% to $202.9 million, accounting for 84% of total revenue, while revenue from Data, Distribution, and Services decreased by 2% to $39.7 million [3][4][11] - The company achieved a net income of $18.7 million, up from $16.1 million in Q1 2024, with diluted earnings per share increasing to $0.53 from $0.45 [5][11] Financial Highlights - Total revenue for Q1 2025 was $242.6 million, an increase of $28.3 million compared to Q1 2024 [3][11] - Content revenue increased by $29.1 million, or 17%, to $202.9 million, while Data, Distribution, and Services revenue decreased by $0.8 million, or 2%, to $39.7 million [3][4] - Net income rose to $18.7 million, with adjusted net income increasing to $36.3 million, reflecting a $3.2 million increase from the previous year [5][6][11] Adjusted Metrics - Adjusted EBITDA for Q1 2025 was $63.4 million, a 13% increase from $56.0 million in Q1 2024, maintaining an adjusted EBITDA margin of 26.1% [8][11] - Adjusted net income per diluted common share was $1.03, up from $0.92 in Q1 2024 [7][11] Cash Flow and Liquidity - Cash and cash equivalents increased to $112.2 million as of March 31, 2025, driven by $25.2 million in net cash from operating activities [9][11] - Adjusted free cash flow for Q1 2025 was $23.4 million, an increase of $12.1 million from Q1 2024 [13][11] Subscriber Metrics - The number of subscribers reached 1,079,000, significantly up from 499,000 in Q1 2024 [15][11] - Subscriber revenue increased to $109.9 million, with an average revenue per customer of $244 [15][11] Merger Activity - Shutterstock is in the process of merging with Getty Images, which is expected to create a leading visual content company [24][25]

Today, I want to take a look at Shutterstock (NYSE: SSTK ), and understand why I rate the company as a BUY. My thesis is that even though AI is taking over the image services market, as AI images still I am a value dividend investor with an eye for heavy long term compounding. Whenever I see a company that is heavily undervalued with large upside, I always jump in to take my share of the riches. I have been investing since I can remember, specialising in long term growth dividend companies, so that one day ...

Core Viewpoint - Getty Images Holdings, Inc. and Shutterstock, Inc. have received a Second Request from the U.S. Department of Justice regarding their proposed merger, which will extend the regulatory waiting period until compliance is achieved [2][3] Company Overview - Getty Images is a leading global visual content creator and marketplace, serving customers worldwide through its brands including Getty Images, iStock, and Unsplash [5][6] - The company collaborates with over 576,000 content creators and maintains a vast photographic archive, covering more than 160,000 events annually [6] - Getty Images is integrating generative AI technologies to enhance its content offerings, allowing customers to create visuals using text-to-image generation [7] Shutterstock Overview - Shutterstock is a premier partner for brands and digital media companies, offering a comprehensive platform for licensing a diverse collection of content, including 3D models, videos, and illustrations [9] - The company emphasizes product innovation and provides an all-in-one content editing platform and studio production services [9] Merger Details - The proposed merger is subject to regulatory clearance and stockholder approval, with expectations for completion in the second half of 2025 [4] - Both companies are committed to cooperating with the DOJ and other regulators to expedite the merger process [4]

NEW YORK, April 02, 2025 (GLOBE NEWSWIRE) -- Getty Images Holdings, Inc. (NYSE: GETY) and Shutterstock, Inc. (NYSE: SSTK) today announced the companies have each received a Request for Additional Information and Documentary Material (Second Request) from the U.S. Department of Justice (DOJ) in connection with Getty Images’ proposed merger with Shutterstock. The Second Request was issued under notification requirements of the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as amended. The effect ...

Core Insights - The article emphasizes the importance of identifying underappreciated companies that can deliver value to investors through a contrarian investment philosophy [1]. Group 1: Company Analysis - The focus is on deep-discount value plays, highlighting the potential for significant returns from micro-cap stocks [1]. - The author has a beneficial long position in SSTK, indicating confidence in the company's future performance [2]. Group 2: Investment Philosophy - The investment strategy is influenced by the contrarian philosophy of David Dreman, which seeks to capitalize on market inefficiencies [1]. - The article suggests that past performance should not be seen as a guarantee of future results, emphasizing the need for careful analysis [3].

Core Insights - The article compares Shutterstock (SSTK) and RELX PLC (RELX) to determine which stock offers better value for investors [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - SSTK has a forward P/E ratio of 3.67, significantly lower than RELX's forward P/E of 28.41 [5] - SSTK's PEG ratio is 0.45, while RELX's PEG ratio stands at 2.58, suggesting SSTK is more undervalued relative to its expected earnings growth [5] - SSTK's P/B ratio is 1.33, compared to RELX's P/B of 19.84, further indicating SSTK's superior valuation metrics [6] Value Grades - SSTK has received a Value grade of A, while RELX has a Value grade of D, highlighting SSTK as the more attractive option for value investors [6][7]

Core Viewpoint - The performance of Shutterstock's international operations is crucial for assessing its financial resilience and growth prospects, especially in a tightly interconnected global economy [1][2][3] Group 1: Financial Performance - Shutterstock's total revenue for the quarter ended December 2024 was $250.31 million, reflecting a 15.2% increase [4] - Revenue from the Rest of the World was $59.26 million, accounting for 23.68% of total revenue, which was a surprise of +1.56% compared to analysts' expectations [5] - Europe contributed $67.45 million, making up 26.95% of total revenue, exceeding the consensus estimate by +1.37% [6] Group 2: Future Revenue Expectations - Analysts project Shutterstock's total revenue for the current fiscal quarter to be $262.1 million, indicating a 22.3% increase from the prior-year quarter [7] - For the full year, total annual revenue is expected to reach $1.06 billion, marking a 13.3% increase compared to last year [8] Group 3: Market Dynamics - The reliance on international markets presents both opportunities and challenges for Shutterstock, making it essential to track international revenue trends for future projections [9] - Financial analysts are closely monitoring international developments to refine earnings estimates for companies operating across borders [10]