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Shutterstock Reports Second Quarter 2024 Financial Results

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5 months ago

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NEW YORK, Aug. 6, 2024 /PRNewswire/ — Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, today announced financial results for the second quarter ended June 30, 2024.

Commenting on the Company’s performance, Paul Hennessy, the Company’s Chief Executive Officer, said, “Shutterstock’s second quarter results exceeded our expectations for revenue and adjusted EBITDA driven by exceptional growth in Data, Distribution and Services. We are thrilled to have closed the Envato acquisition and added a value-packed unlimited subscription to enhance our Content business. And our innovation around GenAI continues with our launches of Gen3D and ImageAI models trained exclusively on Shutterstock data.”

Second Quarter 2024 measures as compared to Second Quarter 2023:

Financial Measures

Revenues were $220.1 million compared to $208.8 million.Net income was $3.6 million compared to $50.0 million.Net income per diluted common share was $0.10 compared to $1.37.Adjusted net income was $35.9 million compared to $39.1 million.Adjusted net income per diluted common share was $1.00 compared to $1.07.Adjusted EBITDA was $62.1 million compared to $60.1 million.

Acquisition of Envato Pty Ltd.

On July 22, 2024, the Company completed its previously announced acquisition of Envato Pty Ltd. (“Envato”) pursuant to a Share Purchase Agreement entered into May 1, 2024, and the Company purchased all of the issued and outstanding capital stock of Envato. The aggregate consideration paid by the Company, after customary working capital and other adjustments, was $250 million.

SECOND QUARTER RESULTS

Revenue

Second quarter revenue of $220.1 million increased $11.2 million or 5% as compared to the second quarter of 2023.

Revenue from our Content product offering decreased $17.0 million, or 9%, as compared to the second quarter of 2023, to $170.0 million. The decline in our Content revenues was driven by weakness in new customer acquisition. Content revenue represented 77% of our total revenue in the second quarter of 2024. Revenue generated from our Data, Distribution, and Services product offering increased $28.2 million, or 129%, as compared to the second quarter of 2023, to $50.1 million, and represented 23% of second quarter revenue in 2024.

On a constant currency basis, revenue increased approximately 6% in the second quarter of 2024 as compared to the second quarter of 2023.

Net income and net income per diluted common share

Net income in the second quarter of 2024 of $3.6 million decreased $46.4 million as compared to net income of $50.0 million for the second quarter in 2023. Net income per diluted common share was $0.10, as compared to $1.37 for the same period in 2023. The decline in net income was driven by a bargain purchase gain of $41.9 million related to the acquisition of Giphy recognized in the second quarter of 2023 and expenses associated with reimbursable costs paid to the Giphy workforce.

Adjusted net income and adjusted net income per diluted common share

Adjusted net income in the second quarter of 2024 of $35.9 million decreased $3.2 million as compared to adjusted net income of $39.1 million for the second quarter in 2023. Second quarter 2024 adjusted net income was unfavorably impacted by expenses associated with reimbursable costs paid to the Giphy workforce.

Adjusted net income per diluted common share was $1.00 as compared to $1.07 for the second quarter of 2023, a decrease of $0.07 per diluted share.

Adjusted EBITDA

Adjusted EBITDA of $62.1 million for the second quarter of 2024 increased by $2.0 million, or 3%, as compared to the second quarter of 2023, primarily due to higher revenue partially offset by the increase in expenses associated with reimbursable costs paid to the Giphy workforce.  

Net income margin of 1.6% for the second quarter of 2024 decreased by 22.3%, as compared to 23.9% in the second quarter of 2023. The adjusted EBITDA margin of 28.2% for the second quarter of 2024 decreased by 0.6%, as compared to 28.8% in the second quarter of 2023.

SECOND QUARTER LIQUIDITY

Our cash and cash equivalents increased by $3.1 million to $74.9 million at June 30, 2024, as compared with $71.8 million as of March 31, 2024. This increase was driven by $28.0 million of net cash provided by our operating activities and $8.3 million of net cash provided by investing activities, partially offset by $32.1 million of net cash used in financing activities.

Net cash provided by our operating activities was driven by our operating income, in addition to changes in the timing of cash collections from our customers and payments pertaining to operating expenses. Operating cash flows were unfavorably impacted by payments made to the Giphy workforce, the reimbursement of which is reflected in Investing Activities.

Cash provided by investing activities for the three months ended June 30, 2024 consisted of $18.1 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller, partially offset by $9.9 million related to capital expenditures and content acquisition.

Cash used in financing activities for the three months ended June 30, 2024 consisted of $20.6 million paid for the repurchase of common stock under our share repurchase program, $10.7 million related to the payment of the quarterly cash dividend and $0.9 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards.

Adjusted free cash flow was $36.2 million for the second quarter of 2024, an increase of $2.8 million from the second quarter of 2023.

QUARTERLY CASH DIVIDEND

During the three months ended June 30, 2024, the Company declared and paid a cash dividend of $0.30 per common share or $10.7 million.

On July 22, 2024, the Board of Directors declared a dividend of $0.30 per share of outstanding common stock, payable on September 12, 2024 to stockholders of record at the close of business on August 29, 2024.

KEY OPERATING METRICS

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Subscribers (end of period)(1)

490,000

556,000

490,000

556,000

Subscriber revenue (in millions)(2)

$                   80.3

$                   87.4

$                   164.2

$                  178.0

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

$                    434

$                    374

$                      434

$                     374

Paid downloads (in millions)(4)

33.4

38.5

68.4

81.2

Revenue per download(5)

$                   5.09

$                   4.71

$                     5.03

$                    4.56

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

Images

837

734

837

734

Footage clips

58

50

58

50

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 Pond5 and Splash News beginning May 2023. These metrics exclude the respective counts and revenues from Giphy and Backgrid. 

(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 metadata delivered through our data deal 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 data deal 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.

SHUTTERSTOCK DATA BUSINESS UPDATE

Details of our Data Business Update as of June 30, 2024 may be found in our investor presentation titled “Shutterstock Data Business Update,” available at https://investor.shutterstock.com/.

2024 GUIDANCE

The Company is updating its guidance as follows:   

Revenue guidance of $927 million to $936 million, representing growth of 6% to 7% year-over-year.Adjusted net income per diluted share of between $4.18 to $4.32.Adjusted EBITDA of $245 million to $248 million.

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 adjusted 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, unrealized losses / gains on investments, 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, unrealized losses / gains on investments and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) 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 adjusted free cash flow as net 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 United Kingdom Competition and Markets Authority (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 June 30, 2024, the Company also incurred $5.1 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 common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted 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 common 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 product offering) 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 adjusted 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 common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted 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; (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 each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings, adjusted free cash flow), and each measure’s most directly comparable financial measure 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 this cannot be done without unreasonable effort due to the impact of potential future transactions, including, but not limited to, capital structure transactions, restructuring, acquisitions, divestitures or other events and asset impairments. These amounts which lack predictability 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. 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 second quarter and financial results during a teleconference today, August 6, 2024, at 8:30 AM Eastern Time. The conference call is being webcast live and can be accessed by either visiting the Company’s website at http://investor.shutterstock.com/ or clicking here (https://edge.media-server.com/mmc/p/fffgc3rf/) for direct access. The webcast is listen-only.

A webcast replay of the call will be available on the Company’s website beginning on August 6, 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 services—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, X, 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 caption “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,” “guidance” 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 June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Revenue

$           220,053

$           208,840

$           434,368

$           424,120

Operating expenses:

Cost of revenue

91,254

84,416

179,458

162,579

Sales and marketing

51,881

48,392

108,117

95,919

Product development

19,859

29,218

40,910

44,624

General and administrative

36,393

38,099

68,471

71,914

Total operating expenses

199,387

200,125

396,956

375,036

Income from operations

20,666

8,715

37,412

49,084

Bargain purchase gain

—

41,940

—

41,940

Other (expense) /  income, net

(4,106)

726

(462)

1,771

Income before income taxes

16,560

51,381

36,950

92,795

 Provision for income taxes

12,935

1,368

17,204

9,939

Net income

$               3,625

$             50,013

$             19,746

$             82,856

Earnings per share:

Basic

$                 0.10

$                 1.39

$                 0.55

$                 2.31

Diluted

$                 0.10

$                 1.37

$                 0.55

$                 2.27

Weighted average common shares outstanding:

Basic

35,697

36,047

35,644

35,952

Diluted

35,982

36,406

36,023

36,490

 

Shutterstock, Inc.

Consolidated Balance Sheets

(In thousands, except par value amount)

(unaudited)

June 30, 2024

December 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

$                  74,871

$                100,490

Accounts receivable, net of allowance of $4,616 and $6,335

97,442

91,139

Prepaid expenses and other current assets

68,534

100,944

Total current assets

240,847

292,573

Property and equipment, net

63,069

64,300

Right-of-use assets

15,392

15,395

Intangible assets, net

164,508

184,396

Goodwill

402,774

383,325

Deferred tax assets, net

23,779

24,874

Other assets

93,497

71,152

Total assets

$             1,003,866

$             1,036,015

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                  10,545

$                    9,108

Accrued expenses

96,910

131,443

Contributor royalties payable

65,705

54,859

Deferred revenue

186,522

203,463

Debt

30,000

30,000

Other current liabilities

42,649

23,513

Total current liabilities

432,331

452,386

Deferred tax liability, net

3,744

4,182

Lease liabilities

26,433

29,404

Other non-current liabilities

20,946

22,949

Total liabilities

483,454

508,921

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value; 200,000 shares authorized; 40,286 and 39,982 shares
issued and 35,359 and 35,572 shares outstanding as of June 30, 2024 and December 31,
2023, respectively

402

399

Treasury stock, at cost; 4,927  and 4,410 shares as of June 30, 2024 and December 31, 2023

(248,805)

(228,213)

Additional paid-in capital

441,497

424,229

Accumulated other comprehensive loss

(13,754)

(11,974)

Retained earnings

341,072

342,653

Total stockholders’ equity

520,412

527,094

Total liabilities and stockholders’ equity

$             1,003,866

$             1,036,015

 

Shutterstock, Inc.

Consolidated Statements of Cash Flows

(In thousands, except par value amount) (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$      3,625

$    50,013

$    19,746

$    82,856

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

Depreciation and amortization

21,433

19,206

42,696

38,102

Deferred taxes

4,357

831

503

(146)

Non-cash equity-based compensation

14,976

14,943

26,126

23,586

Bad debt expense

(262)

235

(1,772)

1,025

Bargain purchase gain

—

(41,940)

—

(41,940)

Unrealized gain on investments

3,624

—

(131)

—

Changes in operating assets and liabilities:

Accounts receivable

(3,143)

(13,459)

(3,879)

5,709

Prepaid expenses and other current and non-current assets

(13,300)

(35,023)

(25,299)

(29,834)

Accounts payable and other current and non-current liabilities

3,283

8,572

(16,899)

(4,144)

Contributor royalties payable

4,561

(424)

10,688

1,822

Deferred revenue

(11,189)

26,860

(15,514)

19,553

Net cash provided by operating activities

$    27,965

$    29,814

$    36,265

$    96,589

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(9,075)

(10,490)

(23,536)

(22,870)

Business combination, net of cash acquired

—

(53,721)

(19,474)

(53,721)

Cash received related to Giphy Retention Compensation

18,121

15,752

36,522

15,752

Acquisition of content

(827)

(1,725)

(1,821)

(5,252)

Security deposit payment

82

(7)

82

(37)

Net cash provided by / (used) in investing activities

$      8,301

$  (50,191)

$    (8,227)

$  (66,128)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchase of treasury shares

(20,592)

(4,000)

(20,592)

(4,000)

Proceeds from exercise of stock options

—

—

—

3

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

(893)

(3,537)

(8,859)

(14,545)

Payment of cash dividends

(10,664)

(9,725)

(21,327)

(19,387)

Proceeds from credit facility

—

30,000

—

30,000

Repayment of credit facility

—

—

—

(50,000)

Net cash (used in) / provided by financing activities

$  (32,149)

$    12,738

$  (50,778)

$  (57,929)

Effect of foreign exchange rate changes on cash

(1,057)

(1,047)

(2,879)

(540)

Net increase / (decrease) in cash and cash equivalents

3,060

(8,686)

(25,619)

(28,008)

Cash and cash equivalents, beginning of period

71,811

95,832

100,490

115,154

Cash and cash equivalents, end of period

$    74,871

$    87,146

$    74,871

$    87,146

Supplemental Disclosure of Cash Information:

Cash paid for income taxes

$      9,659

$    11,945

$    12,560

$      6,795

Cash paid for interest

496

1

1,005

429

 

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 adjusted 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 June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Net income

$                3,625

$              50,013

$              19,746

$              82,856

Add / (less) Non-GAAP adjustments:

Non-cash equity-based compensation

14,976

14,943

26,126

23,586

Tax effect of non-cash equity-based compensation (1)(2)

2,835

(3,512)

215

(5,543)

Acquisition-related amortization expense (3)

9,163

8,370

18,326

16,528

Tax effect of acquisition-related amortization expense (1)

(2,153)

(1,967)

(4,306)

(3,884)

Bargain purchase gain

—

(41,940)

—

(41,940)

Giphy Retention Compensation Expense – non-recurring

4,715

17,191

11,544

17,191

Tax effect of Giphy Retention Compensation Expense – non-
recurring(1)

(1,108)

(4,040)

(2,713)

(4,040)

Other(4)

3,907

—

141

1,856

Tax effect of other(1)

(63)

—

(61)

(418)

Adjusted net income(4)

$              35,897

$              39,058

$              69,018

$              86,192

Net income per diluted common share

$                  0.10

$                  1.37

$                  0.55

$                  2.27

Adjusted net income per diluted common share

$                  1.00

$                  1.07

$                  1.92

$                  2.36

Weighted average diluted shares

35,982

36,406

36,023

36,490

(1)

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

(2)

The tax effect of non-cash equity-based compensation includes a $6.3 million add-back for the reduction of deferred tax assets associated with the expiration of performance-based stock options and restricted stock units granted the Company’s Founder and Executive Chairman in 2014. The performance-based metrics were not met, the awards were not exercisable, and the Company recognized a non-cash tax expense for the change in deferred taxes.

(3)

Of these amounts, $8.2 million and $7.7 million are included in cost of revenue for the three months ended June 30, 2024 and 2023, respectively, and $16.4 million and $15.3 million are included in cost of revenue for the six months ended June 30, 2024 and 2023, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.

(4)

The amount for the six months ended June 30, 2024 is updated to correct an error in the calculation of adjusted net income previously presented for the three months ended March 31, 2024.Other consists of unrealized gains and losses on investments and severance costs associated with strategic workforce optimizations.

 

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Net income

$              3,625

$            50,013

$            19,746

$            82,856

Add / (less) Non-GAAP adjustments:

Interest (income) / expense, net

(787)

(175)

(1,268)

(109)

Provision for income taxes

12,935

1,368

17,204

9,939

Depreciation and amortization

21,433

19,206

42,696

38,102

EBITDA

$            37,206

$            70,412

$            78,378

$          130,788

Non-cash equity-based compensation

14,976

14,943

26,126

23,586

Bargain purchase gain

—

(41,940)

—

(41,940)

Giphy Retention Compensation Expense – non-recurring

4,715

17,191

11,544

17,191

Foreign currency loss / (gain)

1,268

(551)

1,860

(1,662)

Unrealized loss / (gain) on investment

3,625

—

(130)

—

Workforce optimization – severance

282

—

271

1,856

Adjusted EBITDA

$            62,072

$            60,055

$          118,049

$          129,819

Revenue

$          220,053

$          208,840

$          434,368

$          424,120

Net income margin

1.6 %

23.9 %

4.5 %

19.5 %

Adjusted EBITDA margin

28.2 %

28.8 %

27.2 %

30.6 %

 

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Reported Revenue (in thousands)

$          220,053

$          208,840

$          434,368

$          424,120

Revenue growth

5 %

1 %

2 %

4 %

Revenue growth on a constant currency basis

6 %

1 %

3 %

5 %

Content reported revenue (in thousands)

$          169,951

$          186,963

$          343,781

$          380,947

Content revenue growth

(9) %

(7) %

(10) %

(4) %

Content revenue growth on a constant currency basis

(9) %

(7) %

(9) %

(3) %

Data, Distribution, and Services reported revenue (in thousands)

$            50,102

$            21,877

$            90,587

$            43,173

Data, Distribution, and Services revenue growth

129 %

228 %

110 %

306 %

Data, Distribution, and Services revenue growth on a constant currency
basis

129 %

228 %

110 %

306 %

 

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Cash flow information:

Net cash provided by operating activities

$               27,965

$               29,814

$               36,265

$               96,589

Net cash provided by / (used in) investing activities

$                 8,301

$             (50,191)

$               (8,227)

$             (66,128)

Net cash (used in) / provided by financing activities

$             (32,149)

$               12,738

$             (50,778)

$             (57,929)

Adjusted free cash flow:

Net cash provided by operating activities

$               27,965

$               29,814

$               36,265

$               96,589

Capital expenditures

(9,075)

(10,490)

(23,536)

(22,870)

Content acquisitions

(827)

(1,725)

(1,821)

(5,252)

Cash received related to Giphy Retention Compensation

18,121

15,752

36,522

15,752

Adjusted Free Cash Flow

$               36,184

$               33,351

$               47,430

$               84,219

 

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Content

$             169,951

$             186,963

$             343,781

$             380,947

Data, Distribution, and Services

$               50,102

$               21,877

$               90,587

$               43,173

Total revenue

$             220,053

$             208,840

$             434,368

$             424,120

Change in total deferred revenue

$             (11,519)

$               26,785

$             (16,941)

$               20,413

Total billings

$             208,534

$             235,625

$             417,427

$             444,533

 

Shutterstock, Inc.

Supplemental Financial Data

(unaudited)

Historical Operating Metrics

Three Months Ended

6/30/24

3/31/24

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

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

490

499

523

551

556

559

586

607

Subscriber revenue (in millions) (2)

$    80.3

$    83.9

$    85.2

$    88.3

$    87.4

$    90.6

$    88.8

$    87.7

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

$     434

$     418

$     412

$     401

$     374

$     356

$     341

$     329

Paid downloads (in millions) (4)

33.4

35.0

35.4

36.4

38.5

42.7

42.5

42.8

Revenue per download (5)

$    5.09

$    4.97

$    5.02

$    4.76

$    4.71

$    4.41

$    4.49

$    4.43

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

Images

837

832

771

757

734

731

719

527

Footage clips

58

56

54

52

50

48

47

28

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 Pond5 and Splash News beginning May 2023. These metrics exclude the respective counts and revenues from Giphy and Backgrid. 

(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 metadata delivered through our data deal 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 data deal 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.

 

Equity-Based Compensation by expense category

Three Months Ended

($ in thousands)

6/30/24

3/31/24

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

Cost of revenue

$      300

$      224

$      145

$      180

$      306

$      184

$      160

$      173

Sales and marketing

3,167

2,011

2,201

2,067

2,487

604

1,426

1,503

Product development

4,171

2,285

3,022

3,509

4,221

2,448

3,085

2,957

General and administrative

7,338

6,630

6,620

7,247

7,929

5,407

7,111

4,455

Total non-cash equity-based compensation

$ 14,976

$ 11,150

$ 11,988

$ 13,003

$ 14,943

$   8,643

$ 11,782

$   9,088

 

Depreciation and Amortization by expense category

Three Months Ended

($ in thousands)

6/30/24

3/31/24

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

Cost of revenue

$ 20,087

$ 19,874

$ 18,952

$ 19,872

$ 18,134

$ 17,866

$ 17,341

$ 16,856

General and administrative

1,346

1,389

1,404

1,400

1,070

1,031

1,295

1,404

Total depreciation and amortization

$ 21,433

$ 21,263

$ 20,356

$ 21,272

$ 19,204

$ 18,897

$ 18,636

$ 18,260

 

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SOURCE Shutterstock, Inc.

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FUTURE OF CARBON POLICY FORUM FEATURED A “RACE” OF SEDANS TO SEMIS & THE GIULIANI CLEAN ENERGY AWARD

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January 8, 2025

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AUBURN, Wash., Jan. 7, 2025 /PRNewswire/ — Clean & Prosperous Institute’s 7th Annual Future of Carbon Policy Forum showcased the state’s latest advancements in clean energy while featuring a “race” of electric vehicles, from sedans to semis, around the Pacific Raceways track in Kent. 

“We put I-2117 in the rear-view mirror, but we are still in a race against time to transition to a clean energy economy,” said the Institute’s Executive Director, Michael Mann. “Given the latest news on emissions in Washington, we need to accelerate our transition from polluting and expensive fossil fuels to cheaper and cleaner sources of energy for our transportation needs.

“These big rigs being featured here today will help make it possible to beat the clock and realize that clean energy economy.” 

In order to encourage the purchase of zero-emission medium and heavy-duty vehicles, Washington State has allocated over $100 million for incentives. This funding aims to offset the costs associated with transitioning to cleaner vehicle options.

This year’s David and Patricia Giuliani Clean Energy Entrepreneur Award, an annual feature at the forum, was presented to Edo, a company that partners with utilities to transform commercial buildings into virtual power plants (VPPs). Created by McKinstry and Avista, Edo enhances energy efficiency, reliability, and decarbonization by optimizing buildings to be grid-interactive, offering electric utilities valuable demand flexibility. Through its innovative approach to energy and demand optimization, Edo is leading the way toward a decarbonized future. 

“On behalf of Edo, I want to sincerely thank the Clean & Prosperous Institute for this incredible recognition,” said Hendrik Van Hemert, Edo’s Managing Director. “Your dedication to advancing clean energy and sustainable solutions resonates deeply with Edo’s mission, where we work tirelessly to empower communities through equitable economic development and sustainable infrastructure. This award is a testament to the collective impact we can achieve when organizations like ours come together to champion innovative and practical solutions for a cleaner, more prosperous future.”

In addition to Edo, Atlas Agro and Airbuild were also finalists for the award. Atlas Agro is revolutionizing fertilizer production with its Pacific Green Fertilizer Plant, which uses renewable energy to create low-carbon fertilizer, significantly reducing GHG emissions. Airbuild is leading the way in clean energy with its innovative biopanels and biopods systems that generate solar power, capture carbon, and filter water, offering a unique 3-in-1 solution to drive sustainability. 

For video and other assets from today, please check here.  Media, please contact Lee Keller or Danielle Mercure for interviews or additional information at lee@thekellergroup.com or danielle@thekellergroup.com.

More About Clean & Prosperous Institute
The Clean & Prosperous Institute (formerly the Low Carbon Prosperity Institute) works to responsibly tackle climate change and carbon reduction at the state level. We leverage resources, prioritize truth-telling, and strive for improved government and private-sector collaboration. Our core focus is system design, delivering technically accurate, long-term greenhouse gas reduction strategies that guide policy decisions. We thoroughly explore opportunities and complex risk factors associated with crafting climate policy from the state level upward. We strongly believe in the power of business leadership, bipartisan problem-solving, and data-driven public policy.

Media Contact: Lee Keller
Call or text: 206.799.3805
lee@thekellergroup.com

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SOURCE Clean & Prosperous Institute

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JLL APAC Applauded by Frost & Sullivan for Enhancing Property Performance and Delivering Customer Value in Real Estate

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January 8, 2025

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JLL APAC’s deep industry expertise, state-of-the-art capabilities, and customer-driven approach position it to redefine the FM industry and reinforce its leadership.

SAN ANTONIO, Jan. 7, 2025 /CNW/ — Frost & Sullivan recently researched the facility management industry and, based on its analysis, recognizes Jones Lang LaSalle (JLL) Asia-Pacific (APAC) with the 2024 Asia-Pacific Company of the Year Award. The company is a global real estate leader that helps enterprises optimize real estate strategies to meet their operational needs and business goals. The company offers comprehensive solutions and services across the real estate spectrum, including integrated facility management (IFM). With its innovative, cutting-edge solution suite, JLL APAC enhances property performance, fosters ideal work experiences, and delivers value for clients spanning multiple industries, such as finance, government, information technology, and manufacturing. It integrates advanced technology, leverages scientific insights, and designs sustainable spaces to drive innovation and deliver significant customer value. The company goes beyond traditional FM practices, exploring neuroscientific principles to develop its innovative solutions.

JLL APAC’s Work Science initiative studies unique individual work patterns and diverse cognitive styles to power its human-centric workspace designs and create optimal work environments. It enhances workforce productivity, collaboration, and employee well-being and satisfaction. Aimed at helping C-suite executives and senior leaders tackle complex challenges and drive their organizations forward, the value-added JLL Future Labs service curates immersive, multi-sensory collaboration experiences that foster innovative thinking and synergy and accelerate decision-making. JLL APAC leverages artificial intelligence (AI) and machine learning to unify operations among diverse facility management stakeholders and eliminate data silos, enhancing collaboration and decision-making toward optimized building performance. Its comprehensive AI-enhanced JLL Serve FM application streamlines operations, automates processes, digitizes maintenance and reporting, and provides real-time visibility to optimize building usage, minimize costs, save time, and boost returns.

Janice Wung, industry principal at Frost & Sullivan, observed, “JLL APAC’s bold approach to exploring innovative insights beyond traditional FM scope, such as neuroscientific principles, enhance its solutions and deliver impactful results. Its foresight in technology integration is a key differentiator, empowering the company to remain at the forefront of the industry and capitalize on emerging market opportunities.”

JLL APAC’s Smart Building Platform helps clients enhance operational performance with real-time and remote asset monitoring, enabling continuous oversight, rapid problem detection, predictive maintenance, and improved occupant comfort. The platform drives cost optimization, enhances operational efficiency, and promotes sustainability while ensuring occupant comfort and safety. JLL APAC’s expert integration of the Internet of Things, big data, and intelligent technology enhances service excellence, promoting sustainability and propelling the FM industry into the future. Furthermore, its world’s first large language model specifically for the commercial real estate industry, the JLL Generative Pre-trained Transformer (JLL GPT) AI platform, performs comprehensive multi-source data analytics to provide clients with intelligent insights that drive informed strategies and enhance returns. JLL APAC’s customer-centric and collaborative approach, deep expertise, and reliability in addressing client pain points resulted in an impressive global Net Promoter Score of 100%, establishing a new regional record. Regardless of macroeconomic and business conditions, its steady growth momentum positions it to thrive and continue expanding its market presence.

“JLL APAC prioritizes mutual interests to drive value creation and sustainable growth for all stakeholders involved, redefining business partnerships in the FM industry. By adopting progressive, customer-centric strategies and fostering enduring relationships through collaboration, value creation, and service excellence, JLL APAC is well-positioned to lead the FM industry into the future,” added Rubini Kamal, best practices research analyst at Frost & Sullivan. With its strong overall performance, JLL APAC earns Frost & Sullivan’s 2024 Asia Pacific Company of the Year Award in the facility management industry.

Each year, Frost & Sullivan presents a Company of the Year award to the organization that demonstrates excellence in terms of growth strategy and implementation in its field. The award recognizes a high degree of innovation with products and technologies, and the resulting leadership in terms of customer value and market penetration.

Frost & Sullivan Best Practices awards recognize companies in various regional and global markets for demonstrating outstanding achievement and superior performance in leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analyses, and extensive secondary research to identify best practices in the industry.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders, and governments navigate economic changes and identify disruptive technologies, megatrends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion. Contact us: Start the discussion.

Contact:

Tarini Singh
E: tarini.singh@frost.com

About JLL APAC
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, please visit www.jll.com

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SOURCE Frost & Sullivan

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Inspire Greatness at CES 2025: TCL Showcases Its Latest Display Innovations and Breakthroughs Across Smart Devices

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LAS VEGAS, Jan. 7, 2025 /PRNewswire/ — TCL Electronics, a leading consumer electronics brand and the world’s top two TV brand, today showcases a diverse range of display technologies at CES 2025. This includes QD-Mini LED TVs, professional monitors, in-car displays, mobile phones, tablets, smart watches, smart projectors, and RayNeo AR Glasses. Additionally, TCL unveils its latest AI advancements in new product categories and a comprehensive smart home ecosystem, underscoring its commitment to providing smarter and healthier lifestyles and inspiring greatness globally.

Revolutionizing Display Technologies

TCL’s leadership in display innovation is highlighted by its flagship TCL X11K QD-Mini LED TV. This model redefines home entertainment with over 14,000 local dimming zones, delivering breathtaking clarity and visual precision. Enhanced by TCL’s All-domain Halo Control Technology, it offers a truly immersive viewing experience, bringing every frame to life with vivid detail. To complement these visuals, TCL has strategically partnered with Bang & Olufsen, a leader in luxury audio, to deliver their bespoke sound solution, Audio by Bang & Olufsen, which gives the users an experience as captivating as the visuals. 

This collaboration also extends to the TCL A300 Series TV, a sleek and stylish choice with a premium audio experience. At the TCL booth, the world’s largest QD-Mini LED TV, the 115” QM891G, along with the Q85 Soundbar, is showcased as the perfect companion for large TVs with immersive audio performance. For gaming enthusiasts, the R83 Professional Monitor Series offers pixel-level precision, enhancing immersive gaming and creative excellence. These products highlight TCL’s dedication to catering to diverse consumer preferences, from expansive TVs to sophisticated and design-forward solutions.

TCL’s product lineup also includes the award-winning NXTPAPER 4.0 technology, an evolution of the brand’s full-color electronic paper display technology. Engineered to reduce eye strain while delivering exceptional visual quality, NXTPAPER 4.0 debuted in the TCL NXTPAPER 11 Plus Tablet, with plans to expand this technology to more mobile phones.

The RayNeo X3 Pro Smart Glasses mark the arrival of the true AR era. With built-in computing power, the model eliminates the need for external devices, delivering enhanced performance in a compact, streamlined design. Additionally, TCL introduces the PLAYCUBE Projector, which redefines portable projection with style and versatility. Furthermore, TCL showcases innovations in automotive electronics with intelligent Cockpit and Driving Solutions.

Pioneering AI-featured and Smart Connectivity

Among its exciting news at CES 2025, TCL introduces TCL Ai Me, the world’s first modular AI companion robot. Designed with a charming lifelike aesthetic and a detachable space capsule base, Ai Me is a concept product seamlessly blending companionship with smart living. It elevates daily life with natural interactions and personalized experiences, adapting to individual needs and enriching the user’s lifestyle with its intelligent and interactive features.

As another highlight, TCL’s flagship TV series is set to integrate Google’s Gemini model, with plans to launch an all-new Google TV with Gemini capabilities in 2025. TCL is also showcasing an interactive demo in a dedicated showroom, unveiling the immersive and intelligent features with the help of the Gemini model on its TV, promising to transform home entertainment.

In connectivity, TCL’s LINKHUB HH516 5G AI CPE Router ensures a smart network experience with higher throughput, lower latency, and lower power consumption for diverse scenarios. TCL showcased its D1 Series Smart Lock, which includes the D1 Pro with next-gen AI palm vein recognition, and the D1 Ultra, world’s first 4-in-1 smart deadbolt that integrates a smart lock, security camera, video doorbell, and an innovative 3.5-inch display.

Leading the Way in Sustainability and Design

TCL’s CES pavilion embodies its commitment to user-centric design and innovation with a natural, stylish, and eco-conscious ambiance. Highlights include eco-friendly remote controls made from recycled tea leaves and cardboard furniture that underscores TCL’s emphasis on sustainable practices. Expanding its vision of intelligent and eco-friendly living, TCL also brings innovative products with smart and sustainable home solutions.

TCL FreshIN 3.0 Air Conditioner redefines cooling with features that promote health, boost energy efficiency, and enhance convenience. Its liftable Fresh Air Inlet brings fresh outdoor air in, removes odors, and increases indoor oxygen levels. The energy-saving technology intelligently adjusts the operation frequency, while Smart Voice Control allows for hands-free operation without an internet connection.

Meanwhile, TCL FREE BUILT-IN Refrigerator transforms modern kitchens with its sleek, space-saving design and cutting-edge technologies that improve food preservation. Similarly, the P680 Washer-Dryer Set provides stackable solutions for compact spaces, featuring anti-wrinkle technology and intuitive cycles for optimal garment care.

Essential to TCL’s green efforts is its Smart Home Energy Management Solution (HEMS), integrating solar panels, energy storage, and heat pumps for efficient energy use.

Global Partnerships and Excellence

Partnering with top-tier sports and entertainment IPs worldwide, TCL demonstrates its innovative energy to younger generations. At CES 2025, TCL highlights its partnership with the NFL, the most-watched sports league in North America, with the NFL Hall-of-Famer Charles Woodson engaging with onsite fans to strengthen connections between TCL and its audience.

TCL’s deep and vibrant engagements with local communities and global partners have earned widespread consumer recognition, as reflected in its 2024 performance—ranking second globally for TV shipments and in North America for TV retail sales volume during the first three quarters of the year.

Discover TCL at CES 2025:

Date: January 7-10, 2025Location: Las Vegas Convention Center, Central Hall, Booth #17704

About TCL Electronics

TCL Electronics (1070.HK) is a leading consumer electronics brand and leader in the global television industry. TCL now operates in more than 160 markets around the world. The company specializes in the research, development, and manufacturing of consumer electronics products ranging from TVs, audio, home appliances, mobile devices, smart glasses, commercial displays, and more. Visit the TCL website at https://www.tcl.com.

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SOURCE TCL

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