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Shutterstock (SSTK)
NYSE:SSTK
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Shutterstock
(NYSE:SSTK)
66Neutral
Positive Factors
Revenue Growth
Execution across Content and DDS, and the acquisition of Envato helped SSTK achieve 15% revenue growth with 24% AEBITDA margin.
Strategic Merger Benefits
The merger between SSTK and GETY is viewed as beneficial because it creates a larger pool of content and significant cost synergies.
Negative Factors
Organic Content Challenges
There are concerns about the near-term trajectory of the business due to potential declines in SSTK's organic content.
Shutterstock (SSTK) vs. S&P 500 (SPY)
Market Cap
$705.90M
Dividend Yield5.93%
Average Volume (3M)506.84K
Price to Earnings (P/E)20.3
Beta (1Y)1.52
Revenue Growth6.94%
EPS Growth-66.92%
CountryUS
Employees1,715
SectorCommunication Services
Sector Strength82
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)1.00
Shares Outstanding34,893,658
10 Day Avg. Volume643,316
30 Day Avg. Volume506,843
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.75
Price to Cash Flow (P/CF)22.20
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
$29.43Price Target Upside48.79% Upside
Rating ConsensusHold
Number of Analyst Covering4
Shutterstock Business Overview & Revenue Model
Company DescriptionShutterstock, Inc. (SSTK) is a leading global technology company in the creative industry, offering a comprehensive platform for high-quality content, including photos, vectors, illustrations, videos, and music. It serves a diverse customer base, ranging from individual creatives to large enterprises, by providing creative tools and services that cater to the needs of marketing and creative professionals. The company's offerings empower users worldwide to create, edit, and distribute compelling visual content efficiently.
How the Company Makes MoneyShutterstock makes money primarily through its subscription and on-demand services, where customers pay for access to its extensive library of digital content. The company offers various subscription plans tailored to different customer needs, providing a steady revenue stream. Additionally, Shutterstock generates income from enterprise clients through customized solutions and licensing agreements. The company also benefits from its editorial arm and partnerships with other companies to distribute content, further enhancing its revenue potential. These diverse revenue streams, combined with a significant global user base and strategic partnerships, contribute to Shutterstock's financial performance.
Shutterstock Financial Statement Overview
Summary
Shutterstock's financial health shows strong revenue growth and operational efficiency. However, declining net income and free cash flow indicate potential profitability concerns. The balance sheet is stable with manageable leverage, but decreased return on equity highlights declining profitability. Cash flow management is challenged by negative free cash flow, yet the company demonstrates resilience in operational cash generation.Income Statement
Shutterstock has demonstrated consistent revenue growth over the years, with a revenue growth rate of approximately 7% from 2023 to 2024. The company maintains a healthy gross profit margin of 57.6% for 2024, showcasing strong operational efficiency. However, the decline in net income from 2023 to 2024 has impacted the net profit margin, which stands at 3.8% for 2024, compared to 12.6% in 2023. The EBIT margin is stable at 7.3%, though there's a decline in EBITDA margin due to reduced EBITDA figures.78
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.28 for 2024, indicating manageable leverage. The return on equity (ROE) has decreased significantly to 6.9% in 2024 from 20.9% in 2023, reflecting decreased profitability. The equity ratio remains robust at 39.6%, indicating a solid equity base relative to total assets.74
Positive
Cash Flow
Shutterstock's cash flow statement shows a decline in operating cash flow from 2023 to 2024, leading to negative free cash flow in 2024. The free cash flow to net income ratio is negative due to capital expenditures exceeding operating cash flow. Despite this, the operating cash flow to net income ratio remains positive at 0.91, showing that the company can still generate cash relative to its net income.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 806.23M | 935.26M | 874.59M | 827.83M | 773.41M | 666.69M | Gross Profit |
| 511.69M | 538.97M | 521.96M | 513.52M | 495.76M | 407.11M | EBIT |
| 94.06M | 68.71M | 68.40M | 130.95M | 108.11M | 85.27M | EBITDA |
| 154.22M | 160.74M | 204.05M | 160.84M | 153.51M | 126.63M | Net Income Common Stockholders |
| 78.93M | 35.93M | 110.27M | 76.10M | 91.88M | 71.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 111.25M | 111.25M | 100.49M | 115.15M | 314.02M | 428.57M | Total Assets |
| 1.31B | 1.31B | 1.04B | 881.18M | 851.71M | 729.64M | Total Debt |
| 142.96M | 142.96M | 59.40M | 85.61M | 36.97M | 41.62M | Net Debt |
| 31.71M | 31.71M | -41.09M | -29.54M | -277.05M | -386.95M | Total Liabilities |
| 790.81M | 790.81M | 508.92M | 433.70M | 383.23M | 307.72M | Stockholders Equity |
| 518.35M | 518.35M | 527.09M | 447.48M | 468.48M | 421.93M |
| Cash Flow | Free Cash Flow | ||||
| 122.67M | -14.57M | 84.81M | 98.33M | 179.37M | 136.47M | Operating Cash Flow |
| 168.73M | 32.65M | 140.55M | 158.45M | 216.37M | 165.07M | Investing Cash Flow |
| -399.80M | -166.17M | -54.32M | -275.55M | -250.44M | -35.31M | Financing Cash Flow |
| -89.37M | 150.10M | -102.70M | -79.49M | -77.72M | -4.59M |
Shutterstock Technical Analysis
Negative
19.78
Price Trends
27.18
Negative
28.98
Negative
32.31
Negative
Market Momentum
-2.34
Positive
20.55
Positive
17.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTK, the sentiment is Negative. The current price of 19.78 is below the 20-day moving average (MA) of 23.25, below the 50-day MA of 27.18, and below the 200-day MA of 32.31, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 20.55 is Positive, neither overbought nor oversold. The STOCH value of 17.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSTK.
Shutterstock Risk Analysis
Shutterstock disclosed 45 risk factors in its most recent earnings report. Shutterstock 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
Shutterstock Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $188.60B | 35.35 | 36.31% | ― | 11.02% | 4.96% | |
73 Outperform | $869.89M | 15.68 | 8.73% | ― | -0.45% | ― | |
73 Outperform | $22.34B | 23.09 | 11.92% | ― | 3.05% | 55.96% | |
71 Outperform | $193.49M | ― | -12.48% | ― | 19.39% | 81.08% | |
68 Neutral | $22.38B | 29.56 | -72.04% | ― | 4.31% | 1.07% | |
66 Neutral | $705.90M | 20.27 | 6.87% | 5.93% | 6.94% | -66.92% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% |
* Communication Services Sector Average
Performance Comparison
SSTK
Shutterstock
19.78
-29.48
-59.85%
ADBE
Adobe
438.60
-134.95
-23.53%
VRSN
Verisign
235.60
44.43
23.24%
SSTI
SoundThinking Inc
15.50
-0.70
-4.32%
ZM
Zoom Video Communications
73.95
5.51
8.05%
GETY
Getty Images Holdings
2.05
-3.55
-63.39%
Shutterstock Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -17.89% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record revenues and EBITDA, strong performance from the Envato acquisition, and growth in Data Distribution and Services. However, there was a decline in core Content revenues, although improvement was noted. The overall sentiment is upbeat with raised guidance and strategic growth initiatives.Highlights
Record Third Quarter Revenues and Adjusted EBITDA
Shutterstock achieved record third quarter revenues of $251 million, representing a 7.4% year-over-year growth, and record adjusted EBITDA of $70 million with a 28% margin.
Envato Acquisition Success
Envato contributed $38 million to Content revenues in Q3, exceeding expectations with strong subscriber growth driven by a brand refresh and site improvements.
Data Distribution and Services Growth
Data Distribution and Services achieved revenues of $47 million in Q3, showing over 40% growth year-to-date, with large contract expansions and new customer demand driving the growth.
GIPHY and TikTok Partnership
GIPHY views reached approximately 19 billion per day, up over 10% year-over-year, and a new partnership with TikTok was announced to enhance GIF sharing capabilities.
Positive Outlook and Raised Guidance
Shutterstock raised its guidance for 2024, expecting revenue between $935 million and $940 million, and adjusted EBITDA between $247 million and $250 million.
Lowlights
Decline in Core Content Revenues
Excluding the Envato contribution, Content revenues declined 7% year-over-year, although this was an improvement from previous quarters' declines.
Company Guidance
During the Q3 2024 earnings call for Shutterstock (SSTK), the company provided updated guidance, raising its revenue expectations to between $935 million and $940 million, representing a 7% to 7.5% year-over-year growth. Adjusted EBITDA guidance was also increased to a range of $247 million to $250 million. The call highlighted record third-quarter revenues of $251 million, a 7.4% year-over-year increase, and adjusted EBITDA of $70 million with a 28% margin. Content revenue reached $204 million, a 14% year-over-year increase, bolstered by Envato's $38 million contribution. Shutterstock's Data Distribution and Services segment generated $47 million in revenue, with substantial growth driven by AI-generated content and partnerships such as GIPHY's collaboration with TikTok. The company remains optimistic about achieving its 2027 targets of $1.2 billion in revenue and $350 million in EBITDA.Shutterstock Corporate Events
M&A TransactionsFinancial Disclosures
Shutterstock Reports Record Revenues for 2024
Positive
Feb 25, 2025
Shutterstock announced its financial results for the full year and fourth quarter of 2024, reporting record revenues and Adjusted EBITDA. Despite a decrease in net income due to non-recurring expenses and acquisitions, the company experienced growth in its Content and Data, Distribution, and Services segments, driven by the Envato acquisition. The company anticipates continued growth in 2025.
Executive/Board ChangesBusiness Operations and Strategy
Shutterstock Appoints Matt Furlong as Chief Marketplace Officer
Neutral
Jan 8, 2025
Shutterstock has appointed Matt Furlong as its Chief Marketplace Officer, starting January 13, 2025. With his previous roles at GameStop and Amazon, Furlong brings significant leadership experience to Shutterstock, where he will oversee the strategy, operations, and growth of the Marketplace division, aiming to enhance customer experience and align business goals across the company’s creative content brands.
M&A TransactionsBusiness Operations and Strategy
Shutterstock Merges with Getty Images for $3.7 Billion
Positive
Jan 7, 2025
Shutterstock has entered into a merger agreement with Getty Images, creating a major visual content provider with a combined enterprise value of approximately $3.7 billion. This strategic merger is expected to enhance content offerings, drive innovation, and realize significant cost synergies, benefiting both customers and stockholders with improved financial performance and expanded market opportunities.
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.