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.
Shutterstock
· SSTK
October 29th, 2024
Summary
- Earnings Call Date:
- 2024-10-29
- Change Since:
- -51.12%
- Next Earnings Date:
- 2026-07-28
Earnings Call Sentiment
PositiveThe 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.
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.
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.
Operator
Good day and thank you for standing by. Welcome to the Q3 2024 Shutterstock Incorporated Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the call over to Rik Powell, SVP, Finance and Investor Relations. Please go ahead.
Rik Powell
Thank you, Latonya. Good morning, everyone. And thank you for joining us for Shutterstock’s third quarter 2024 earnings call. Joining us today is Paul Hennessy, Shutterstock’s Chief Executive Officer; and Jarrod Yahes, Shutterstock’s Chief Financial Officer. Please note that some of the information you’ll hear during our discussion today will consist of forward-looking statements, including, without limitation, the long-term effects of investments in our business, the future success and financial impact of new and existing product offerings, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, our future growth, margins and profitability, our long-term strategy and our performance targets, including 2024 guidance and long-range financial targets. Actual results or trends could differ materially from our forecast. For more information, please refer to today’s press release, which we have posted to our Investor Relations website. Please also refer to the reports we filed with the SEC from time-to-time, including the risk factors discussed in our most recently file...
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