Shutterstock ( (SSTK) ) has realeased its Q3 earnings. Here is a breakdown of the information Shutterstock presented to its investors.
Shutterstock, Inc., a prominent global creative platform, offers high-quality content for brands, digital media, and marketing companies, and stands out for its vast and diverse collection of 3D models, videos, music, and images. In its latest financial report for the third quarter of 2024, Shutterstock announced record revenues and an increase in Adjusted EBITDA, alongside an upward revision of its 2024 financial guidance. The company also revealed the departure of CFO Jarrod Yahes, with Rik Powell stepping into the role.
Highlighting its financial performance, Shutterstock reported a revenue of $250.6 million, marking a 7% increase from the previous year. The adjusted EBITDA rose by 8% to $70 million, driven partially by the integration of Envato, a recent acquisition. While Content revenue saw a substantial growth of 14%, the Data, Distribution, and Services segment experienced a decline. Despite a decrease in net income due to a prior year’s one-time gain, the adjusted net income showed slight improvement.
Strategically, the acquisition of Envato for $250 million has bolstered Shutterstock’s offerings, contributing significantly to its Content revenue. The company’s cash reserves increased, underpinned by financing activities, and it continued to manage its debt effectively. Moreover, Shutterstock maintained its quarterly dividend, reflecting consistent shareholder returns.
Looking ahead, Shutterstock’s management remains optimistic, with an updated revenue guidance projecting growth between 7% and 7.5% for 2024. The leadership change and continued focus on strategic growth initiatives like the Envato acquisition are expected to play crucial roles in driving future profitability and shareholder value.
