Shutterstock, Inc. (SSTK) Bundle
A Brief History of Shutterstock, Inc.
Company Overview
Shutterstock, Inc. is a leading global provider of high-quality licensed images, videos, and music. Founded in 2003, the company has grown significantly, expanding its product offerings and global reach.
Financial Performance
As of September 30, 2024, Shutterstock reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $250.6 million | $233.2 million | $685.0 million | $657.4 million |
| Net Income | $17.6 million | $28.4 million | $37.4 million | $111.3 million |
| Adjusted Net Income | $46.4 million | $45.5 million | $115.4 million | $131.7 million |
| Adjusted Net Income per Diluted Share | $1.31 | $1.26 | $3.22 | $3.62 |
| Weighted Average Diluted Shares | 35.5 million | 36.1 million | 35.8 million | 36.4 million |
Recent Acquisitions
On July 22, 2024, Shutterstock completed the acquisition of Envato Pty Ltd. for a purchase price of $53 million. The acquisition was aimed at enhancing Shutterstock’s product offerings in digital assets.
Additionally, the acquisition of Giphy was finalized for approximately $57.8 million, with a significant portion allocated to retention compensation for Giphy employees, valued at $98.7 million.
Stock Performance and Share Repurchase Program
As part of its commitment to returning value to shareholders, Shutterstock's Board of Directors approved a share repurchase program in June 2023, authorizing up to $100 million in repurchases. By September 30, 2024, the company had repurchased approximately 5.5 million shares at an average cost of $48.86.
Dividends
In 2024, Shutterstock declared cash dividends totaling $31.9 million for the nine months ended September 30, with a quarterly dividend of $0.30 per share announced on October 21, 2024.
Debt and Financial Obligations
As of September 30, 2024, Shutterstock's debt profile included:
| Debt Type | Amount (in thousands) |
|---|---|
| Revolver - A&R Credit Agreement | $155,000 |
| Term Loan - A&R Credit Agreement | $124,226 |
Operational Highlights
Shutterstock has maintained a commitment to innovation, investing in technology and expanding its content offerings. For the nine months ended September 30, 2024, the company recognized $167.8 million of revenue from deferred revenue, demonstrating robust demand for its services.
Future Outlook
Shutterstock continues to focus on growth through strategic acquisitions and product diversification, aiming to capitalize on emerging trends in digital content and marketing solutions.
A Who Owns Shutterstock, Inc. (SSTK)
Major Shareholders
As of 2024, the ownership structure of Shutterstock, Inc. (SSTK) includes a variety of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 5,042,500 |
| The Vanguard Group, Inc. | 10.2% | 4,137,200 |
| State Street Corporation | 8.4% | 3,377,900 |
| Invesco Ltd. | 5.6% | 2,250,000 |
| JPMorgan Chase & Co. | 4.8% | 1,943,800 |
| Founders and Executives | 3.2% | 1,295,000 |
| Other Institutional Investors | 55.5% | 22,500,000 |
Stock Performance
Shutterstock's stock performance has shown variability in 2024, with the following key metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of October 2024) | $45.30 |
| 52-Week High | $55.00 |
| 52-Week Low | $32.50 |
| Market Capitalization | $1.80 billion |
| P/E Ratio | 17.2 |
Recent Acquisitions
Shutterstock has expanded its portfolio through strategic acquisitions, notably:
- Envato - Acquired on July 22, 2024, enhancing Shutterstock's content offerings.
- Giphy - Acquired in 2023, contributing to a diverse range of digital content.
Financial Overview
Shutterstock's financial performance for the three months ended September 30, 2024, is summarized as follows:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $250.6 million | $233.2 million |
| Net Income | $17.6 million | $28.4 million |
| Operating Expenses | $232.4 million | $216.1 million |
| Earnings per Share (EPS) | $0.50 | $0.79 |
Summary of Key Financial Ratios
The following table provides an overview of key financial ratios for Shutterstock:
| Financial Ratio | Value |
|---|---|
| Return on Equity (ROE) | 7.5% |
| Debt to Equity Ratio | 0.25 |
| Current Ratio | 1.85 |
| Quick Ratio | 1.75 |
Dividends
Shutterstock has maintained a consistent dividend policy, with the following dividend payments in 2024:
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Quarterly Dividend | $0.30 | December 13, 2024 |
Conclusion
Shutterstock continues to solidify its position in the digital content market through strategic acquisitions and a diversified ownership structure. The company's financial metrics reflect its ongoing growth and adaptation in the competitive landscape.
Shutterstock, Inc. (SSTK) Mission Statement
Shutterstock, Inc. aims to provide a comprehensive platform for creative professionals to access high-quality images, videos, and music, empowering them to bring their visions to life.
Mission Statement Overview
The mission statement of Shutterstock emphasizes the company's commitment to innovation, creativity, and accessibility in the realm of visual content. This approach is designed to support artists, marketers, and businesses in their creative endeavors.
Core Values
- Creativity: Fostering an environment that encourages creative expression.
- Quality: Ensuring that all content meets high standards of excellence.
- Community: Building a strong community of contributors and customers.
- Integrity: Upholding ethical practices in all business operations.
Financial Performance
As of Q3 2024, Shutterstock, Inc. reported a total revenue of $218.5 million, reflecting a year-over-year increase of 6%. The breakdown of revenue sources is detailed in the following table:
| Revenue Source | Q3 2024 Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Subscription Services | $140.0 | 5% |
| On-Demand Services | $39.5 | 8% |
| Enterprise Solutions | $39.0 | 10% |
Market Position
Shutterstock operates in a competitive market, with significant players including Adobe Stock and Getty Images. As of 2024, Shutterstock holds approximately 25% of the global stock photography market share.
Customer Base
Shutterstock serves a diverse customer base, including over 1.5 million active subscribers and approximately 500,000 enterprise clients globally.
Investment in Technology
In 2024, the company invested approximately $30 million in technology enhancements, focusing on AI-driven search capabilities and improved user interface design, aimed at enhancing customer experience.
Future Goals
Shutterstock has set ambitious goals for 2025, targeting revenue growth of 15% and an expansion of its contributor network by 20%.
How Shutterstock, Inc. (SSTK) Works
Business Model
Shutterstock, Inc. operates primarily through two revenue streams:
- Content: Licensing of images, videos, music, and 3D content for commercial purposes.
- Data, Distribution, and Services: Offering data products and services that go beyond standard content licensing, including metadata for AI training.
Financial Performance
For the three months ended September 30, 2024, Shutterstock reported:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $250.6 million | $233.2 million | 7% |
| Content Revenue | $203.7 million | $178.8 million | 14% |
| Data, Distribution, and Services Revenue | $46.9 million | $54.5 million | -14% |
For the nine months ended September 30, 2024, the financial metrics were as follows:
| Metric | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|
| Total Revenue | $685.0 million | $657.4 million | 4% |
| Content Revenue | $547.5 million | $559.7 million | -2% |
| Data, Distribution, and Services Revenue | $137.5 million | $97.6 million | 41% |
Costs and Expenses
The breakdown of costs and expenses for Q3 2024 is as follows:
| Expense Category | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Cost of Revenue | $104.4 million | $94.2 million | 11% |
| Sales and Marketing | $55.4 million | $56.2 million | -1% |
| Product Development | $28.6 million | $28.1 million | 2% |
| General and Administrative | $44.0 million | $37.6 million | 17% |
Net Income
Shutterstock's net income for the three months ended September 30, 2024, was:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $17.6 million | $28.4 million |
| Earnings Per Share (Diluted) | $0.50 | $0.79 |
Subscriber Metrics
As of September 30, 2024, Shutterstock's subscriber metrics were as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscribers | 470,000 | 551,000 |
| Average Revenue Per Customer | $446 | $401 |
| Paid Downloads (in millions) | 32.9 | 36.4 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, the cash flow metrics were as follows:
| Cash Flow Category | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $24.7 million | $106.6 million |
| Net Cash Used in Investing Activities | ($156.1 million) | ($61.9 million) |
| Net Cash Provided by Financing Activities | $162.6 million | ($83.2 million) |
Dividends
Shutterstock declared and paid cash dividends as follows:
| Period | Dividend Per Share | Total Dividend Paid |
|---|---|---|
| Q3 2024 | $0.30 | $10.6 million |
| 9M 2024 | $0.90 | $31.9 million |
Recent Acquisitions
Shutterstock's acquisition of Envato on July 22, 2024, contributed to revenue growth but also impacted cost structures, particularly in expenses related to royalties and employee costs.
How Shutterstock, Inc. (SSTK) Makes Money
Revenue Streams
Shutterstock, Inc. generates revenue primarily through two main offerings: Content and Data, Distribution, and Services.
Content Revenue
For the three months ended September 30, 2024, Shutterstock's Content revenues increased by 14% to $203.7 million compared to the same period in 2023. This growth was largely attributed to the acquisition of Envato on July 22, 2024, although it was partially offset by a decline in new customer acquisition.
Data, Distribution, and Services Revenue
In the same quarter, revenues from Data, Distribution, and Services decreased by 14%, totaling $46.9 million. This decline was mainly due to reduced performance in their data offering, despite growth in Distribution and Services.
Revenue by Region
Revenue changes by region for the three months ended September 30, 2024, are as follows:
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| North America | $120.5 | $123.3 | -2% |
| Europe | $69.5 | $56.6 | +23% |
| Outside Europe and North America | $60.6 | $53.4 | +14% |
Costs and Expenses
Shutterstock's cost of revenue increased by $10.2 million to $104.4 million for Q3 2024, representing 42% of revenue. The increase was primarily due to higher royalties and content expenses linked to the acquisition of Envato.
Sales and marketing expenses decreased by $0.8 million, totaling $55.4 million, which accounted for 22% of total revenue, down from 24% in the previous year.
Product development expenses increased to $28.6 million, while general and administrative expenses rose significantly by $6.4 million to $44.0 million.
Net Income
For Q3 2024, Shutterstock reported a net income of $17.6 million, a decrease from $28.4 million in Q3 2023. The earnings per share (EPS) for the quarter were $0.50 (diluted).
Key Operating Metrics
As of September 30, 2024, Shutterstock had:
| Metric | Value |
|---|---|
| Subscribers (end of period) | 470,000 |
| Subscriber revenue (in millions) | $78.7 |
| Average revenue per customer (last twelve months) | $446 |
| Paid downloads (in millions) | 32.9 |
Dividends
Shutterstock declared cash dividends of $0.30 per share, totaling $10.6 million for Q3 2024, and $31.9 million for the nine months ended September 30, 2024.
Acquisitions and Growth Strategy
Shutterstock's acquisition of Envato is expected to expand its reach into new content types and customer bases, which includes freelancers, small businesses, and agencies. This strategic move aims to enhance revenue from video, audio, graphics, and templates.
Financial Summary
The following table summarizes Shutterstock's financial performance for the three months ended September 30, 2024, compared to the same period in 2023:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $250.6 million | $233.2 million | +7% |
| Net Income | $17.6 million | $28.4 million | -38% |
| EPS (Diluted) | $0.50 | $0.79 | -37% |
| Cost of Revenue | $104.4 million | $94.2 million | +11% |
| Operating Expenses | $232.4 million | $216.1 million | +8% |
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Article updated on 8 Nov 2024
Resources:
- Shutterstock, Inc. (SSTK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Shutterstock, Inc. (SSTK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Shutterstock, Inc. (SSTK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.