Shutterstock(SSTK) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Shutterstock reported a 16% revenue growth for the full year 2021, the highest annual growth rate since 2016 [7] - For the fourth quarter, revenue grew 14%, with e-commerce revenue increasing by 16% and enterprise revenue growing by 10% [26] - Gross margins for the full year were 64.1%, up 300 basis points from 61.1% in 2020, while Q4 gross margin declined by approximately 150 basis points to 61.9% year-over-year [27] - Adjusted EBITDA margins increased to 25% for the full year 2021, up from 23.2% in 2020, with a 19% margin in Q4 [31][45] - GAAP diluted earnings per share for the full year was $2.46, representing a growth of 25$100,000 grew almost 80% in 2021 [16] Market Data and Key Metrics Changes - The deferred revenue balance increased to $181 million, up almost$10 million from the third quarter and over $31 million from Q4 2020, representing a growth of 21$835 million to $850 million [40][41] - Management emphasized the importance of customer engagement and retention through enhanced subscription offerings and workflow integration [21] Other Important Information - The company announced a 14$0.24 per share, reflecting positive cash flow results in 2021 [35] - Share repurchase program is expected to increase from $75 million to$100 million annually, allowing for the buyback of approximately 3% of outstanding shares each year [37] Q&A Session Summary Question: Addressing customer needs with new subscription products - Management acknowledged that pricing and packaging of content will continue to drive growth, particularly with new content types and workflow integration [50] Question: Trends in customer content and computer vision revenue - Management clarified that various businesses do not conform neatly to traditional revenue models, and they are focused on maintaining unit pricing while adding value to subscriptions [54] Question: Integration of TurboSquid and new customer types - Management indicated that they will enable 3D services within enterprise, catering to agencies and other clients, and will launch services similar to their 2D content offerings [57] Question: Insights from the brand campaign - Management noted that they learned about the effectiveness of different channels and will focus on high ROI channels while launching new products that require customer education [59]