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Getty Images Holdings Inc (GETY)
:GETY
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Getty Images Holdings
(NYSE:GETY)
73Outperform
Positive Factors
Financial Performance
Getty accelerated YoY revenue growth in 3Q, lapping Hollywood strikes and the worst of agency spending declines; political & elections helped.
Revenue Growth
Getty continued its revenue growth up 4.9% to $241m vs. a $236m estimate, attributable to strong growth in its Editorial segment.
Negative Factors
Revenue Retention
Revenue retention rate dropped to 92.2% from 94.5% mainly from the increase in newer and smaller e-commerce subscribers who typically come in at lower levels of spending.
Getty Images Holdings (GETY) vs. S&P 500 (SPY)
Market Cap
$845.15M
Dividend YieldN/A
Average Volume (3M)1.25M
Price to Earnings (P/E)15.3
Beta (1Y)0.70
Revenue Growth-0.45%
EPS GrowthN/A
CountryUS
Employees1,700
SectorCommunication Services
Sector Strength79
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)0.13
Shares Outstanding412,270,420
10 Day Avg. Volume921,378
30 Day Avg. Volume1,248,465
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.92
Price to Cash Flow (P/CF)19.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.88Price Target Upside138.05% Upside
Rating ConsensusHold
Number of Analyst Covering3
Getty Images Holdings Business Overview & Revenue Model
Company DescriptionCC Neuberger Principal Holdings II is a blank check company.
How the Company Makes MoneyGetty Images makes money primarily through licensing its extensive library of visual content to customers on a rights-managed or royalty-free basis. The company offers subscription services that provide clients with access to a predefined number of images or downloads per month. Additionally, Getty Images generates revenue from custom creative services and the sale of exclusive content. Key revenue streams include licensing fees, subscription fees, and custom content services. Partnerships with media companies, advertising agencies, and digital platforms also play a significant role in expanding Getty Images' reach and revenue-generating opportunities.
Getty Images Holdings Financial Statement Overview
Summary
Getty Images Holdings demonstrates solid financial performance with strong profitability metrics and effective cash flow management. However, revenue growth is modest, and the balance sheet shows some reliance on debt. Opportunities exist to optimize the capital structure.Income Statement
Getty Images Holdings has demonstrated steady revenue performance with a slight increase in revenue for the TTM period compared to previous years. The gross profit margin remains robust at approximately 67.7% for TTM, indicating strong cost management. Net profit margin improved to 5.6% in TTM from previous periods, reflecting enhanced profitability. However, revenue growth has been relatively flat, with only a marginal increase over the past year.75
Positive
Balance Sheet
The company's balance sheet shows moderate stability with a debt-to-equity ratio of approximately 2.04 in the TTM, indicating reliance on debt financing. Return on equity improved significantly to 7.5% in TTM, highlighting better utilization of equity. The equity ratio of 26.4% suggests a moderate leverage position, though there is room for improvement in financial structure to enhance stability.68
Positive
Cash Flow
Cash flow analysis reveals a strong free cash flow growth of 28.4% in TTM, driven by efficient capital management. Operating cash flow to net income ratio is favorable at 2.19, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio of 1.89 further underscores robust cash conversion, positioning the company well for reinvestment and debt servicing.80
Positive
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 917.90M | 916.55M | 926.24M | 918.69M | 815.40M | Gross Profit |
| 621.28M | 666.31M | 671.25M | 670.54M | 589.34M | EBIT |
| 193.96M | 127.67M | 202.03M | 201.99M | 156.26M | EBITDA |
| 230.24M | 190.59M | 186.69M | 303.82M | 264.89M | Net Income Common Stockholders |
| 51.39M | 19.34M | -77.64M | 117.07M | -37.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 678.07K | 138.08M | 97.91M | 186.30M | 156.48M | Total Assets |
| 829.72M | 2.60B | 2.47B | 2.58B | 2.51B | Total Debt |
| 0.00 | 1.45B | 1.48B | 1.76B | 1.81B | Net Debt |
| -678.07K | 1.31B | 1.38B | 1.57B | 1.65B | Total Liabilities |
| 89.61M | 1.92B | 1.88B | 2.88B | 2.83B | Stockholders Equity |
| 740.11M | 633.23M | 545.08M | -346.74M | -367.29M |
| Cash Flow | Free Cash Flow | |||
| 97.22M | 75.72M | 103.83M | 139.57M | 103.60M | Operating Cash Flow |
| 112.35M | 132.72M | 163.12M | 188.89M | 148.46M | Investing Cash Flow |
| -72.49M | -57.00M | -61.29M | -136.93M | -53.48M | Financing Cash Flow |
| -55.50M | -45.35M | -184.35M | -19.27M | -52.00M |
Getty Images Holdings Technical Analysis
Negative
2.05
Price Trends
2.44
Negative
2.82
Negative
3.18
Negative
Market Momentum
-0.14
Positive
33.19
Neutral
51.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GETY, the sentiment is Negative. The current price of 2.05 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 2.44, and below the 200-day MA of 3.18, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 51.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GETY.
Getty Images Holdings Risk Analysis
Getty Images Holdings disclosed 47 risk factors in its most recent earnings report. Getty Images Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Getty Images Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $22.07B | 22.63 | 10.12% | 1.09% | -3.71% | 24.71% | |
73 Outperform | $845.15M | 15.30 | 8.73% | ― | -0.45% | ― | |
66 Neutral | $690.20M | 19.63 | 6.87% | 6.07% | 6.94% | -66.92% | |
65 Neutral | $15.94B | 36.92 | 5.23% | 0.75% | -1.51% | 82.74% | |
58 Neutral | $29.51B | -0.64 | -15.44% | 4.07% | 2.03% | -50.31% | |
57 Neutral | $36.53B | ― | -628.33% | ― | 28.68% | 22.57% | |
55 Neutral | $3.65B | ― | -9.29% | ― | -12.78% | -343.35% |
* Communication Services Sector Average
Performance Comparison
GETY
Getty Images Holdings
2.00
-3.15
-61.17%
NWSA
News Corp
26.29
0.40
1.54%
SSTK
Shutterstock
19.41
-27.70
-58.80%
TME
Tencent Music Entertainment Group
12.40
2.03
19.58%
IAC
IAC/InteractiveCorp.
43.53
-7.60
-14.86%
RBLX
Roblox
55.73
15.08
37.10%
Getty Images Holdings Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -53.09% | Next Earnings Date: Mar 17, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with notable revenue growth, particularly in the subscription and editorial segments. Despite some challenges in creative revenue and cash flow, the company's strategic initiatives, including AI partnerships and API integrations, demonstrate a strong growth trajectory.Highlights
Revenue Growth
Getty Images reported Q3 2024 revenue of $240.5 million, representing a year-on-year increase of 4.9% on a reported basis and 5.4% on a currency-neutral basis.
Subscription Business Performance
The subscription business saw a growth of subscribers by nearly 50% versus the comparable LTM period, with subscriptions now accounting for more than 50% of total revenue.
Editorial Revenue Increase
Editorial revenue increased by 16.1% year-on-year and 16.3% on a currency-neutral basis, marking a return to growth after 4 consecutive quarters of decline.
Creative API Integrations
Renewals with major brands like Squarespace, enhancing the reach and integration of Getty's creative offerings.
AI Partnerships
Successful AI partnership with Sony Pictures to promote their latest Venom series using Getty's generative AI model.
Lowlights
Creative Revenue Decline
Creative revenue was $133.7 million, down 7.9% year-on-year, primarily due to a shift in Premium Access revenue allocation.
Free Cash Flow Deficit
Free cash flow showed a deficit of $1.8 million in Q3 compared to $12.8 million generated in Q3 2023.
Lower Cash Balance
End of quarter cash balance was $109.9 million, down $11.8 million from Q2 2024 and down $3.6 million from Q3 2023.
Company Guidance
During Getty Images' Q3 2024 earnings call, the company provided an optimistic outlook based on strong quarterly performance. Revenue reached $240.5 million, representing a year-over-year increase of 4.9% on a reported basis and 5.4% on a currency-neutral basis, while adjusted EBITDA was $80.6 million with a margin of 33.5%. The subscription business, which now accounts for over 50% of total revenue, showed significant growth with a 48% increase in subscribers. Editorial revenue increased by 16.1% year-over-year, while creative revenue saw a decline, primarily due to shifts in Premium Access revenue allocation. The company is projecting full-year 2024 revenue between $934 million and $943 million, with an adjusted EBITDA range of $292 million to $294 million. Furthermore, Getty Images continues to focus on strategic investments and debt reduction, with a net leverage of 4.2x.Getty Images Holdings Corporate Events
M&A TransactionsBusiness Operations and Strategy
Getty Images Merges with Shutterstock for Major Synergies
Positive
Jan 7, 2025
Getty Images Holdings and Shutterstock have entered into a merger agreement to form a leading visual content company with an enterprise value of approximately $3.7 billion. This merger is expected to leverage both companies’ strengths, enhancing their content offerings and innovation capabilities, while generating significant cost synergies of $150 million to $200 million by the third year. The combined entity aims to better serve customers and expand opportunities for contributors, with expectations of improved earnings and cash flow from the second year post-merger. The transaction is subject to standard regulatory approvals and stockholder consent, with the merged company continuing to trade under the Getty Images name.
M&A TransactionsBusiness Operations and Strategy
Getty Images and Shutterstock Announce Strategic Merger
Neutral
Jan 7, 2025
Getty Images Holdings, Inc. has announced a strategic merger with Shutterstock, Inc., aiming to create a premier visual content company. This merger is expected to enhance their combined market presence, offering increased benefits and synergies for stakeholders, although it is subject to regulatory and stockholder approvals, and carries potential risks and uncertainties during integration.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.