Technology

Shutterstock Reports Full Year 2023 and Fourth Quarter Financial Results

Published

10 months ago

February 21, 2024

NEW YORK, Feb. 21, 2024 /PRNewswire/ — Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a leading global creative platform connecting brands and businesses to high-quality content, today announced financial results for the full year and fourth quarter ended December 31, 2023.

Commenting on the Company’s performance, Paul Hennessy, the Company’s Chief Executive Officer, said, “Shutterstock delivered record revenues and profitability in 2023 and significantly exceeded our targets set out at the beginning of the year.

Our success in building a leading content platform has allowed us to make key investments in Data, Distribution and Services where we have an exciting growth opportunity supported by strong industry tailwinds and a large TAM. Going forward, we’ll be shining a light on these exciting growth businesses, and providing revenue breakouts across two categories – Content and Data, Distribution and Services. As part of today’s release, we are also pleased to announce Shutterstock’s 2027 long-term financial targets.”

Full Year 2023 highlights as compared to Full Year 2022:

Financial Highlights

Revenue increased 6% to $874.6 million. On a constant currency basis, revenue increased 5%.Income from operations decreased 27% to $68.4 million.Net income increased 45% to $110.3 million.Adjusted EBITDA increased 10% to $240.8 million.Net income per diluted share increased 46% to $3.04 per share.Adjusted net income per diluted share increased 12% to $4.35 per share.Operating cash flows decreased $17.9 million to $140.6 million.Free cash flow increased $40.1 million to $138.5 million.

Fourth Quarter 2023 highlights as compared to Fourth Quarter 2022:

Financial Highlights

Revenues decreased $0.5 million to $217.2 million.Income from operations decreased 72% to $2.1 million.Net income / (loss) decreased 114% to a $1.0 million net loss.Adjusted EBITDA decreased 21% to $46.3 million.Net income per diluted share decreased $0.22 to $(0.03).Adjusted net income per diluted share decreased $0.33 to $0.72.Operating cash flows decreased $27.2 million to $33.9 million.Free cash flow decreased $3.6 million to $41.6 million.

FULL YEAR RESULTS

Revenue

Full year revenue of $874.6 million increased $46.8 million or 6% as compared to 2022.

Revenue generated through our Content product offering decreased 7% as compared to the full year 2022, to $737.3 million, and represented 84% of our total revenue in 2023. The decline in Content revenue was primarily driven by weakness in new customer acquisition. Revenue from our Data, Distribution, and Services product offering increased 256% as compared to 2022, to $137.3 million and represented 16% of our total revenue in 2023. The increase in Data, Distribution, and Services revenues was primarily driven by growth in our data offering and revenue generated from Giphy.

On a constant currency basis, revenue increased 5% in 2023 as compared to 2022. On a constant currency basis, Content revenues decreased 7% and Data, Distribution, and Services revenues increased by 256% in 2023, as compared to 2022.

Net income and Income per diluted share

Net income of $110.3 million increased $34.2 million as compared to $76.1 million for the full year 2022. Net income per diluted share was $3.04 as compared to $2.08 for the full year 2022. These increases were driven by the growth in our Data, Distribution, and Services product offering and a $50.3 million bargain purchase gain recorded in connection with the Giphy acquisition. In addition, 2022 was impacted by an $18.7 million impairment of leases and related assets .

Adjusted net income per diluted share, which excludes the bargain purchase in 2023 and the impairment of lease and related assets in 2022, was $4.35 as compared to $3.87 for the full year 2022.

Adjusted EBITDA

Adjusted EBITDA of $240.8 million for 2023 increased $22.7 million or 10% as compared to the full year 2022, attributable to growth in revenues partially offset by operating expenses associated with our acquisition of Giphy.

Adjusted EBITDA margin of 27.5% for 2023 increased by 120 basis points, as compared to 26.3% for the full year 2022.

FOURTH QUARTER RESULTS

Revenue

Fourth quarter revenue was $217.2 million, which remained flat as compared to the fourth quarter of 2022.

Revenue from our Content product offering decreased 10% as compared to the fourth quarter of 2022, to $177.5 million, and represented 82% of our total revenue in the fourth quarter of 2023. Revenue generated from our Data, Distribution, and Services product offering increased 96.4% as compared to the fourth quarter of 2022, to $39.7 million, and represented 18% of fourth quarter revenue in 2023.

Revenues were not impacted on a constant currency basis in the fourth quarter of 2023 as compared to the fourth quarter of 2022.

Net income and net income per diluted share

The net loss in fourth quarter of $1.0 million decreased $8.1 million as compared to net income of $7.0 million for the fourth quarter in 2022. Net (loss) income per diluted share was ($0.03), as compared to $0.19 for the same period in 2022.

Fourth quarter 2023 net loss was unfavorably impacted by expenses associated with reimbursable costs paid to the Giphy workforce in addition to increased marketing expenses.

Adjusted net income per diluted share was $0.72 as compared to $1.05 for the fourth quarter of 2022, an decrease of $0.33 per diluted share.

Adjusted EBITDA

Adjusted EBITDA of $46.3 million for the fourth quarter of 2023 decreased by $12.0 million, or 21%, as compared to the fourth quarter of 2022, due primarily to higher operating expenses operating expenses associated with our acquisition of Giphy. The adjusted EBITDA margin of 21.3% for the fourth quarter of 2023 decreased by 550 basis points, as compared to 26.8% in the fourth quarter of 2022.

LIQUIDITY

For the full year 2023, our cash and cash equivalents decreased by $14.7 million to $100.5 million at December 31, 2023, as compared with $115.2 million as of December 31, 2022. This decrease was driven by $54.3 million used in investing activities and $102.7 million used in financing activities, partially offset by $140.6 million of net cash provided by our operating activities. Net cash provided by our operating activities was affected by our operating income, offset by payments made to Giphy employees, which were fully reimbursed by Meta and reported in investing cash flows as Giphy Retention Compensation, and changes in the timing of cash receipts and payments pertaining to our revenues and operating expenses.

Cash used in investing activities primarily consisted of capital expenditures of $44.6 million for internal-use software and website development costs, and $11.1 million paid to acquire the rights to distribute certain digital content in perpetuity. In addition, cash of $53.7 million used in the acquisition of Giphy was offset by $53.7 million of cash reimbursements from Meta for Giphy Retention Compensation.

Cash used in financing activities primarily consisted of (i) $38.7 million related to the payment of the quarterly cash dividend; (ii) $28.2 million paid in connection with the repurchase of common stock under our share repurchase program; (iii) $15.8 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and (iv) a $20.0 million reduction in our revolver.

Free cash flow was $138.5 million for the full year 2023, an increase of $40.1 million from the full year 2022. This increase was primarily driven by the increase in our adjusted EBITDA in addition to changes in the timing of cash receipts and payments pertaining to our revenues and operating expenses.

QUARTERLY CASH DIVIDEND

During the three months ended December 31, 2023, the Company declared and paid a cash dividend of $0.27 per common share or $9.6 million.

On January 29, 2024, the Board of Directors declared a dividend of $0.30 per share of outstanding common stock, payable on March 14, 2024 to stockholders of record at the close of business on February 29, 2024.

KEY OPERATING METRICS

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Subscribers (end of period)(1)

523,000

586,000

523,000

586,000

Subscriber revenue (in millions)(2)

$ 85.2

$ 88.8

$ 351.5

$ 346.6

Average revenue per customer (last twelve months)(3)

$ 412

$ 341

$ 412

$ 341

Paid downloads (in millions)(4)

35.4

42.5

153.0

173.3

Revenue per download(5)

$ 5.02

$ 4.49

$ 4.72

$ 4.40

Content in our collection (end of period, in millions)(6):

Images

771

719

771

719

Footage clips

____________________________________________________________________________

Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from TurboSquid beginning February 2022, from PicMonkey beginning September 2022, and from Pond5 and Splash News beginning May 2023. These metrics exclude the respective counts and revenues from Giphy.

(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.

(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.

(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and downloads associated with our computer vision offering.

(5) Revenue per download is the amount of revenue recognized in a given period divided by the number of paid downloads in that period excluding revenue from our Studios business, revenue that is not derived from or associated with content licenses and revenue associated with our computer vision offering.

(6) Content in our collection represents approved images (photographs, vectors and illustrations) and footage (in number of clips) in our library at the end of the period. This metric excludes content that is not uploaded directly to our site but is available for license by our customers through an application program interface, content from our Studios business and AI generated content. Prior to December 31, 2022, this metric only included approved images and footage clips in our library on shutterstock.com at the end of the period.

2027 LONG TERM TARGETS

Details of our 2027 Long Term Targets may be found below and in our investor presentation titled “Shutterstock 2027: Long-range Financial Targets,” available at https://investor.shutterstock.com/.

Revenue growth CAGR of 10% and 2027 revenues of $1.2 billion.Content revenue growth CAGR of 7% and Data, Distribution, and Services revenue growth CAGR of 22%.EBITDA margin expansion from 28% to 30% and 2027 EBITDA of $350 million.Cumulative Free Cash Flow of $800 million allocated to strategic acquisitions, dividends, and share repurchases.

2024 GUIDANCE

The Company increased its guidance for the full year 2024, to the following:

Revenue of $875 million and Adjusted EBITDA of $241 million. unchanged from 2023.Adjusted net income per diluted share of between $4.15 to $4.30.

NON-GAAP FINANCIAL MEASURES

To supplement Shutterstock’s consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock’s management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and free cash flow.

Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, bargain purchase gain related to the acquisition of Giphy, Giphy Retention Compensation Expense – non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, interest income and expense and income taxes; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, bargain purchase gain related to the acquisition of Giphy, Giphy Retention Compensation Expense – non-recurring, severance costs associated with strategic workforce optimizations and the estimated tax impact of such adjustments; adjusted net income per diluted share as adjusted net income divided by weighted average diluted shares; revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods in the comparison; billings as revenue adjusted for the change in deferred revenue, excluding deferred revenue acquired through business combinations; and free cash flow as cash provided by operating activities, adjusted for capital expenditures, content acquisition and cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy.

The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the “Giphy Retention Compensation Expense – non-recurring”), are required payments in accordance with the terms of the acquisition. Meta’s sale of Giphy was directed by the CMA and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense – non-recurring is not considered an ongoing expense necessary to operate the Company’s business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. For the three months ended December 31, 2023, the Company also incurred $6.6 million of Giphy Retention Compensation expense related to recurring employee costs, which is included in operating expenses, and are not included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.

These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

Shutterstock’s management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and free cash flow are useful to investors because these measures enable investors to analyze Shutterstock’s operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted share provide useful information to investors about the performance of the Company’s overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock’s underlying operating performance; and revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock’s operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock’s financial reporting. Shutterstock’s management believes that free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company’s ongoing business operations and provides them with the same measures that management uses as the basis for making resource allocation decisions.

Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock’s business operations, financial performance and overall liquidity; (ii) facilitate management’s internal comparisons of the historical operating performance of its business operations; (iii) facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock’s management team and, together with other operational objectives, as a measure in evaluating employee compensation and bonuses; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

Reconciliations of the differences between adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings, free cash flow, and the most comparable financial measures calculated and presented in accordance with GAAP, are presented under the headings “Reconciliation of Non-GAAP Financial Information to GAAP” and “Supplemental Financial Data” immediately following the Consolidated Balance Sheets.

We do not provide a reconciliation of adjusted EBITDA guidance to net income guidance or a reconciliation of adjusted net income per diluted share guidance to net income per diluted share guidance, because we are unable to calculate with reasonable certainty the impact of potential future transactions, including, but not limited to, capital structure transactions, restructuring, acquisitions, divestitures or other events and asset impairments, without unreasonable effort. These amounts depend on various factors and could have a material impact on net income and net income per diluted share, but may be excluded from adjusted EBITDA and adjusted net income per diluted share. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

EARNINGS TELECONFERENCE INFORMATION

The Company will discuss its fourth quarter and full year financial results during a teleconference today, February 21, 2024, at 8:30 AM Eastern Time. The conference call is being webcast live at the Company’s website at http://investor.shutterstock.com/. The webcast is listen-only. Those interested in participating in the question-and-answer session should register using the link below.

Participants may register for the call here (https://edge.media-server.com/mmc/p/cmuiaecy). It is recommended that you join 10 minutes prior to the event start (although you may register and join at any time during the call).

A webcast replay of the call will be available on the Company’s website beginning on February 21, 2024 at approximately 10:30 AM Eastern Time.

ABOUT SHUTTERSTOCK

Shutterstock, Inc. (NYSE: SSTK) is a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies. Fueled by millions of creators around the world, a growing data engine and a dedication to product innovation, Shutterstock is the leading global platform for licensing from the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations. From the world’s largest content marketplace, to breaking news and A-list entertainment editorial access, to all-in-one content editing platform and studio production service—all using the latest in innovative technology—Shutterstock offers the most comprehensive selection of resources to bring storytelling to life.

Learn more at www.shutterstock.com and follow us on LinkedIn, Instagram, Twitter, Facebook and YouTube.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly in the discussion under the captions “2027 Long Term Targets” and “2024 Guidance.” All statements other than statements of historical fact are forward-looking. Examples of forward-looking statements include, but are not limited to, statements regarding guidance, industry prospects, future business, future results of operations or financial condition, new or planned features, products or services, management strategies and our competitive position. You can identify forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “aim,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “predict,” “project,” “seek,” “potential,” “opportunities,” “targets” and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements contained herein. Such risks and uncertainties include, among others, those risks discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in other documents that the Company may file from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, Shutterstock’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. The forward-looking statements contained in this press release are made only as of this date and Shutterstock assumes no obligation to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

Shutterstock, Inc.
Consolidated Statements of Operations
(In thousands, except for per share data)
(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Revenue

$ 217,219

$ 217,726

$ 874,587

$ 827,826

Operating expenses:

Cost of revenue

95,832

87,925

352,630

314,306

Sales and marketing

62,665

47,819

214,749

203,154

Product development

23,440

17,112

96,162

65,434

General and administrative

33,158

38,559

142,646

132,644

Impairment of lease and related assets

—

18,664

—

18,664

Total operating expenses

215,095

210,079

806,187

734,202

Income from operations

2,124

7,647

68,400

93,624

Bargain purchase gain

(1,543)

—

50,261

—

Other income / (expense), net

1,479

862

3,807

(2,587)

Income before income taxes

2,060

8,509

122,468

91,037

Provision for income taxes

3,066

1,463

12,199

14,934

Net (loss) / income

$ (1,006)

$ 7,046

$ 110,269

$ 76,103

Earnings per share

Basic

$ (0.03)

$ 0.20

$ 3.07

$ 2.11

Diluted

$ (0.03)

$ 0.19

$ 3.04

$ 2.08

Weighted average common shares outstanding:

Basic

35,699

35,821

35,878

36,042

Diluted

35,915

36,147

36,242

36,546

Shutterstock, Inc.
Consolidated Balance Sheets
(In thousands, except par value amount)
(unaudited)

December 31, 2023

December 31, 2022

ASSETS

Current assets:

Cash and cash equivalents

$ 100,490

$ 115,154

Accounts receivable, net of allowance of $6,335 and $5,830

91,139

67,249

Prepaid expenses and other current assets

100,944

33,268

Total current assets

292,573

215,671

Property and equipment, net

64,300

54,548

Right-of-use assets

15,395

17,593

Intangibles assets, net

184,396

173,087

Goodwill

383,325

381,920

Deferred tax assets, net

24,874

16,533

Other assets

71,152

21,832

Total assets

$ 1,036,015

$ 881,184

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 9,108

$ 7,183

Accrued expenses

131,443

89,387

Contributor royalties payable

54,859

38,649

Deferred revenue

203,463

187,070

Debt

30,000

50,000

Other current liabilities

23,513

11,445

Total current liabilities

452,386

383,734

Deferred tax liability, net

4,182

4,465

Lease liabilities

29,404

35,611

Other non-current liabilities

22,949

9,892

Total liabilities

508,921

433,702

Commitment and contingencies

Stockholders’ equity:

Common stock, $0.01 par value; 200,000 shares authorized; 39,981 and 39,605 shares
issued and 35,571 and 35,829 shares outstanding as of December 31, 2023 and
December 31, 2022, respectively

399

396

Treasury stock, at cost; 4,410 and 3,776 shares as of December 31, 2023 and December 31,
2022

(228,213)

(200,008)

Additional paid-in capital

424,229

391,482

Accumulated other comprehensive loss

(11,974)

(15,439)

Retained earnings

342,653

271,051

Total stockholders’ equity

527,094

447,482

Total liabilities and stockholders’ equity

$ 1,036,015

$ 881,184

Shutterstock, Inc.
Consolidated Statements of Cash Flows
(In thousands, except par value amount) (unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2023

2022

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) / income

$ (1,006)

$ 7,046

$ 110,269

$ 76,103

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

20,356

18,636

79,729

68,470

Deferred taxes

(5,216)

(3,713)

(26,176)

(10,587)

Non-cash equity-based compensation

11,988

11,782

48,577

35,740

Impairment of lease and related assets

—

18,664

—

18,664

Bad debt expense

500

2,704

1,894

3,697

Bargain purchase gain

1,543

—

(50,261)

—

Changes in operating assets and liabilities:

Accounts receivable

(5,768)

(16,564)

(24,409)

(22,105)

Prepaid expenses and other current and non-current assets

(8,334)

3,689

(50,501)

532

Accounts payable and other current and non-current liabilities

16,999

8,599

20,892

(24,328)

Contributor royalties payable

4,560

2,536

15,841

7,772

Deferred revenue

(1,673)

7,783

14,697

4,493

Net cash provided by operating activities

$ 33,949

$ 61,162

$ 140,552

$ 158,451

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(9,930)

(10,374)

(44,645)

(43,296)

Business combination, net of cash acquired

—

(53,721)

(211,843)

Cash received related to Giphy Retention Compensation

18,950

—

53,657

—

Asset acquisitions

—

(1,750)

—

(3,417)

Content acquisitions

(1,371)

(5,630)

(11,096)

(16,821)

Security deposit release / (payment)

(50)

109

1,489

(173)

Net cash provided by / (used in) investing activities

$ 7,599

$ (17,645)

$ (54,316)

$ (275,550)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchase of treasury shares

(9,201)

—

(28,205)

(73,488)

Proceeds from exercise of stock options

—

1,810

Cash paid related to settlement of employee taxes related to RSU vesting

(625)

(15,834)

(22,601)

Payment of cash dividend

(9,644)

(8,585)

(38,667)

(34,589)

Proceeds from credit facility

—

30,000

50,000

Payment of credit facility

—

(50,000)

—

Payment of debt issuance costs

—

(619)

Net cash used in financing activities

$ (19,470)

$ (9,210)

$ (102,704)

$ (79,487)

Effect of foreign exchange rate changes on cash

3,184

4,603

1,804

(2,277)

Net increase / (decrease) in cash and cash equivalents

25,262

38,910

(14,664)

(198,863)

Cash and cash equivalents, beginning of period

75,228

76,244

115,154

314,017

Cash and cash equivalents, end of period

$ 100,490

$ 115,154

$ 100,490

$ 115,154

Supplemental Disclosure of Cash Information:

Cash paid for income taxes

$ 17,097

$ 3,968

$ 33,067

$ 23,444

Cash paid for interest

492

571

1,724

1,045

Shutterstock, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In thousands, except per share information)
(unaudited)

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Net (loss) / income

$ (1,006)

$ 7,046

$ 110,269

$ 76,103

Add / (less) Non-GAAP adjustments:

Depreciation and amortization

20,356

18,636

79,729

68,470

Non-cash equity-based compensation

11,988

11,782

48,577

35,740

Impairment of lease and related assets

—

18,664

—

18,664

Bargain purchase gain

1,543

—

(50,261)

—

Giphy Retention Compensation Expense – non-recurring

6,188

—

31,577

—

Other adjustments, net (1)

4,132

714

8,686

4,163

Provision for income taxes

3,066

1,463

12,199

14,934

Adjusted EBITDA

$ 46,267

$ 58,305

$ 240,776

$ 218,074

Adjusted EBITDA margin

21.3 %

26.8 %

27.5 %

26.3 %

________________________________________________________________________________________

(1)

Other adjustments, net includes unrealized foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations and interest income and expense.

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Net (loss) / income

$ (1,006)

$ 7,046

$ 110,269

$ 76,103

Add / (less) Non-GAAP adjustments:

Non-cash equity-based compensation

11,988

11,782

48,577

35,740

Tax effect of non-cash equity-based compensation (2)

(2,817)

(2,768)

(11,416)

(8,397)

Acquisition-related amortization expense (3)

9,157

8,078

34,737

29,302

Tax effect of acquisition-related amortization expense (2)

(2,152)

(1,898)

(8,163)

(6,886)

Impairment of lease and related assets

—

18,664

—

18,664

Tax effect of impairment of lease and related assets(2)

—

(4,199)

—

(4,199)

Bargain purchase gain

1,543

—

(50,261)

—

Giphy Retention Compensation Expense – non-recurring

6,188

—

31,577

—

Tax effect of Giphy Retention Compensation Expense – non-
recurring

(1,454)

—

(7,421)

—

Other

5,668

1,576

12,493

1,576

Tax effect of other(2)

(1,275)

(355)

(2,811)

(355)

Adjusted net income

$ 25,840

$ 37,926

$ 157,581

$ 141,548

Net income per diluted share

$ (0.03)

$ 0.19

$ 3.04

$ 2.08

Adjusted net income per diluted share

$ 0.72

$ 1.05

$ 4.35

$ 3.87

Weighted average diluted shares

35,915

36,147

36,242

36,546

____________________________________________________________________________________________

(2)

Statutory tax rates are used to calculate the tax effect of the adjustments.

(3)

Of these amounts, $8.2 million and $7.5 million are included in cost of revenue for the three months ended December 31, 2023 and 2022, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Total Revenue

$ 217,219

$ 217,726

$ 874,587

$ 827,826

Revenue growth

— %

6 %

7 %

Revenue growth on a constant currency basis

— %

9 %

5 %

11 %

Content revenue

$ 177,526

$ 197,513

$ 737,264

$ 789,306

Revenue growth: Content

(10) %

(1) %

(7) %

4 %

Revenue growth: Content on a constant currency basis

(10) %

2 %

(7) %

8 %

Data, Distribution, and Services revenue

$ 39,693

$ 20,213

$ 137,323

$ 38,520

Revenue growth: Data, Distribution, and Services

96 %

265 %

256 %

142 %

Revenue growth: Data, Distribution, and Services on a constant
currency basis

96 %

268 %

256 %

144 %

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Cash flow information:

Net cash provided by operating activities

$ 33,949

$ 61,162

$ 140,552

$ 158,451

Net cash provided by / (used in) investing activities

$ 7,599

$ (17,645)

$ (54,316)

$ (275,550)

Net cash used in financing activities

$ (19,470)

$ (9,210)

$ (102,704)

$ (79,487)

Free cash flow:

Net cash provided by operating activities

$ 33,949

$ 61,162

$ 140,552

$ 158,451

Capital expenditures

(9,930)

(10,374)

(44,645)

(43,296)

Content acquisitions

(1,371)

(5,630)

(11,096)

(16,821)

Cash received related to Giphy Retention Compensation

18,950

—

53,657

—

Free cash flow

$ 41,598

$ 45,158

$ 138,468

$ 98,334

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Content revenue

$ 177,526

$ 197,513

$ 737,264

$ 789,306

Data, Distribution, and Services revenue

$ 39,693

$ 20,213

$ 137,323

$ 38,520

Total revenue

$ 217,219

$ 217,726

$ 874,587

$ 827,826

Change in total deferred revenue

$ 363

$ 12,686

$ 16,393

$ 2,386

Total billings

$ 217,582

$ 230,412

$ 890,980

$ 830,212

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

E-commerce revenue

$ 102,247

$ 122,332

$ 439,941

$ 501,384

Enterprise revenue

$ 114,972

$ 95,394

$ 434,646

$ 326,442

Total revenue

$ 217,219

$ 217,726

$ 874,587

$ 827,826

Shutterstock, Inc.
Supplemental Financial Data
(unaudited)

Historical Operating Metrics

Three Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

6/30/22

3/31/22

Subscribers (end of period, in thousands) (1)

523

551

556

559

586

607

368

359

Subscriber revenue (in millions) (2)

$ 85.2

$ 88.3

$ 87.4

$ 90.6

$ 88.8

$ 87.7

$ 84.7

$ 85.4

Average revenue per customer (last twelve months) (3)

$ 412

$ 401

$ 374

$ 356

$ 341

$ 329

$ 359

$ 355

Paid downloads (in millions) (4)

35.4

36.4

38.5

42.7

42.5

42.8

43.4

44.6

Revenue per download (5)

$ 5.02

$ 4.76

$ 4.71

$ 4.41

$ 4.49

$ 4.43

$ 4.46

$ 4.22

Content in our collection (end of period, in millions): (6)

Images

771

757

734

731

719

527

511

471

Footage clips

(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

Equity-Based Compensation by expense category

Three Months Ended

($ in thousands)

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

6/30/22

3/31/22

Cost of revenue

$ 145

$ 180

$ 306

$ 184

$ 160

$ 173

$ 156

$ 78

Sales and marketing

2,201

2,067

2,487

604

1,426

1,503

1,629

928

Product development

3,022

3,509

4,221

2,448

3,085

2,957

2,557

1,781

General and administrative

6,620

7,247

7,929

5,407

7,111

4,455

2,702

5,039

Total non-cash equity-based compensation

$ 11,988

$ 13,003

$ 14,943

$ 8,643

$ 11,782

$ 9,088

$ 7,044

$ 7,826

Depreciation and Amortization by expense category

Three Months Ended

($ in thousands)

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

6/30/22

3/31/22

Cost of revenue

$ 18,952

$ 19,872

$ 18,134

$ 17,866

$ 17,341

$ 16,856

$ 15,172

$ 13,759

General and administrative

1,404

1,400

1,070

1,031

1,295

1,404

1,338

1,305

Total depreciation and amortization

$ 20,356

$ 21,272

$ 19,204

$ 18,897

$ 18,636

$ 18,260

$ 16,510

$ 15,064

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SOURCE Shutterstock, Inc.

Technology

ZT Mining Pioneers Innovative Solutions in the Cloud Mining Industry

Published

4 hours ago

December 28, 2024

ZT Mining launches user-friendly cloud mining services with free options, renewable energy integration, and educational resources, promoting sustainable cryptocurrency mining.

READING, England, Dec. 28, 2024 /PRNewswire-PRWeb/ — As the cryptocurrency industry grows, the demand for accessible and efficient mining solutions has never been higher. ZT Mining, a leading innovator in cloud mining, announces a new range of services designed to democratize access to cryptocurrency mining while addressing environmental concerns.

free cloud mining site, best cloud mining, crypto mining

Cloud Mining Made Simple

ZT Mining provides a platform for users to mine Bitcoin and other cryptocurrencies without the need for specialized hardware or technical expertise. By simplifying the process, the company caters to a broad audience, from crypto enthusiasts to first-time investors. Its streamlined registration and user-friendly interface allow participants to start mining in minutes.

Free Cloud Mining Option for Starters

The platform introduces free cloud mining opportunities, enabling users to begin their mining journey without upfront costs. This initiative lowers barriers to entry, making it easier for individuals to explore the cryptocurrency space.

Sustainability at the Core

Recognizing the environmental impact of traditional mining, ZT Mining incorporates renewable energy into its operations. By leveraging green energy sources, the company reduces its carbon footprint, aligning with global sustainability goals.

A Trusted Name in Cloud Mining

ZT Mining emphasizes transparency and reliability. Contracts come with clear terms, competitive rates, and no hidden fees. The platform also offers robust security measures, ensuring user data and funds remain protected.

Empowering Users Through Education

To support informed decision-making, ZT Mining provides educational resources on cryptocurrency and cloud mining. Users can access guides and insights to better understand mining profitability and industry trends.

Industry Recognition

ZT Mining’s innovative approach has positioned it as one of the best cloud mining platforms in the industry. With endorsements from leading crypto analysts and positive user feedback, the company is quickly becoming a trusted name for mining solutions.

Looking Ahead

ZT Mining continues to innovate, aiming to provide even more opportunities for users to benefit from cloud mining. With plans to expand its renewable energy partnerships and introduce advanced mining algorithms, the company is setting the standard for sustainable and user-friendly cryptocurrency mining.

For more information, visit ZT Mining’s official website.

Media Contact

Nancy Delia, ZT CLOUD SERVICES LIMITED, 44 7301463290, nancy.delia@ztmining.com, https://ztmining.com

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SOURCE ZT CLOUD SERVICES LIMITED

Technology

UBHOME Collaborates with Qualcomm to Release the Smart Lawn Mower, Co-Creating a New Era of Smart Life

Published

9 hours ago

December 28, 2024

The 2025 CES in the United States is about to unveil a brand-new chapter in the future intelligent home gardening

LAS VEGAS, Dec. 28, 2024 /PRNewswire/ — UBHOME, a sub-brand of UBTECH Robotics, announced an intelligent service robot in collaboration with Qualcomm Technologies, Inc. The Robotic Mower M10 is a revolutionary smart lawn mower announced at the 2025 International Consumer Electronics Show (CES) in the United States. This product is powered by the Qualcomm® RB1 Robotics Platform, showcases UBHOME’s rich experience in robot research and development, and focuses on solving the pain points of traditional lawn-mowing equipment, providing users with a worry-free and labor-saving smart gardening experience, and creates a new model of gardening intelligence.

User-Oriented: The All-New Convenience Brought by the Smart Lawn Mower to Life

The Robotic Mower M10 is not only a high performance tool but also an upgrade of the smart lifestyle. In response to the pain points of users when using traditional lawn-mowing equipment, this product offers a series of practical functions, bringing brand-new convenience to home gardening:

Wireless and Borderless Mowing: There is no need for cumbersome boundary wire installation anymore. The device relies on accurate environmental perception and navigation technology to independently plan the work area, allowing users to use it right out of the box, saving installation time and energy.

Automatic Mowing, Saving Time and Effort: The device can automatically complete the lawn mowing work according to the preset schedule or real-time instructions, enabling users to manage the lawn care through delegation to the mower.

Wide Coverage and Stable Signal: It supports a large-scale signal connection of up to 130,000 square meters. Even for extremely large courtyards, stable operation can be ensured, and there is no need to worry about signal loss.

Real-time Online, in-control Anytime: Through APP remote control and real-time monitoring, users can adjust the mowing plan or check the device status at any time, managing the courtyard work as they like.

The combination of these functions not only greatly simplifies the complexity of mowing work but also liberates users from repetitive physical labor, allowing them to focus on enjoying the wonderful moments of life.

UBHOME: In-depth Layout in Smart Home

UBHOME is a brand under UBTECH Robotics that focuses on providing smart solutions for families. As a world-leading robot enterprise, UBTECH, with its strong R&D strength and technological accumulation, has successfully launched Walker, China’s first commercial bipedal human-sized humanoid robot. The launch of the Robotic Mower M10 by UBHOME this time is an important step in its layout in the smart home field.

Relying on UBTECH’s technological accumulation in robots and its in-depth understanding of user needs, the Robotic Mower M10 achieves the best mowing effect through environmental recognition and dynamic adjustment. Whether it is complex terrain, steep slopes, or high requirements for fine mowing, it can perform perfectly, demonstrating its excellent technical capabilities and brand commitment.

As a global leader in wireless technology and edge intelligence, Qualcomm Technologies provides cutting-edge technical support for the Robotic Mower M10, including intelligent edge computing platforms, dynamic path planning, and environmental perception technologies. These technologies ensure that the device can operate efficiently in various environments, providing users with a precise and efficient smart experience. The Robotic Mower M10 utilizes the Qualcomm RB1 Robotics Platform to ensure the superior operation of the Robotic Mower M10 in large-scale courtyards, laying a solid foundation for realizing smart life.

Industry Significance and Trend: Promoting the Development of Gardening Intelligence

With the continuous increase in the demand for home intelligence, the market for smart gardening equipment is in a period of rapid development. As a typical representative of this trend, the smart lawn mower not only meets consumers’ pursuit of a convenient lifestyle but also provides a direction for the transformation of the gardening industry from tool manufacturing to smart services.

The product released by UBHOME not only fills the gap in the high-performance lawn-mowing equipment market but also sets a new industry benchmark. Through the multiple advantages of wireless, real-time connection, and fully automated operation, it endows home gardening with new value, making users no longer regard mowing as a burden but feel the convenience and fun brought by technology.

Innovation Hand in Hand, Co-creating Smart Life

The collaboration between UBHOME and Qualcomm Technologies showcases a strong collaboration of technology and innovation. Both parties are committed to bringing more convenient and efficient life experiences to consumers through technological innovation.

At the 2025 CES, UBHOME and Qualcomm Technologies will showcase the innovative functions and application scenarios of this Robotic Mower M10.

About UBHOME

UBHOME is a brand under UBTECH Robotics, focusing on providing smart solutions for families. UBTECH is a world-leading robot enterprise dedicated to the research and development and application of artificial intelligence and robot technology and has successfully served more than 900 enterprise-level customers in more than 50 countries around the world.

Media Contact Information
For more information, please contact:
UBHOME Brand Team: mbu-sales@ubtrobot.com

Qualcomm is a trademark or registered trademark of Qualcomm Incorporated. Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. 

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SOURCE UBTECH ROBOTICS CORP LTD

Technology

Global Launch of JETOUR T2 i-DM: Reshaping the Hybrid SUV Market

Published

9 hours ago

December 28, 2024

DOHA, Qatar, Dec. 28, 2024 /PRNewswire/ — On December 25, 2024, the First JETOUR Fan’s Festival and the Launch of T2 i-DM was held in Qatar, themed “Think Future”. During the event, JETOUR launched its user brand “Traveler” in the Middle East and its first hybrid model, JETOUR T2 i-DM. The launch event highlights JETOUR’s commitment to exploring sustainable travel modes and ambition to become the “The World’s Leading Brand in Hybrid Off-road Vehicles” under the “Travel+” strategy.

JETOUR T2 i-DM not only inherits the strengths of T2 series, but also achieves high energy efficiency, high performance, high safety, and high intelligence with its advanced hybrid technology, i-DM. With a maximum combined power of 280kW and torque of 610N•m, T2 i-DM boasts a NEDC pure electric range of 139km and an overall range exceeding 1,000km at just 0.8L/100km, addressing range anxiety and promoting green travel.

Mr. Dai Lihong, executive vice president of JETOUR Auto, emphasized technology’s role in producing world-class products. The launch also introduced “Traveler”, enriching user experience through diverse products and superior performance. This year, JETOUR has ranked third in sales across the Qatari auto market. The Fan’s Festival invited user representatives from across the Middle East to witness the unveiling of “Traveler”, experiencing “Travel+” culture through city tours and co-creation workshops.

JETOUR prioritizes users, listening to their needs and co-creating products, brand, and lifestyle. Through “Traveler,” JETOUR aims to provide richer travel experiences and benefits globally, leveraging the platform to spread the “Travel+” culture worldwide. Mr. Alex Tan, Vice President of JETOUR International, said, “Serving ‘JETOUR users’ and being ‘a user-oriented JETOUR’ are JETOUR’s development philosophy. JETOUR will continue to build a travel community centered around users, cars, and lifestyles, sharing the joy of traveling together with users.”

JETOUR also partnered with Diamond League to promote athletics in Qatar and the Middle East, embodying JETOUR Speed and the brand’s image of breakthroughs and innovations. With T2 selling over 150,000 units globally, T2 i-DM will continue its success to meet customers’ needs and reshape the hybrid SUV market.

The launch of T2 i-DM marks JETOUR’s new journey towards “the World’s Leading Brand in Hybrid Off-road Vehicles.” JETOUR plans to introduce more hybrid and off-road models, providing customers with eco-friendly and diversified travel choices. With its innovative spirit and user-oriented philosophy, JETOUR will lead the global automotive industry towards a more sustainable and smarter future.

SOURCE JETOUR AUTO