Getty Images Revenue Declines to $579M in 2023

Getty Images recently released its financial highlights for the year 2023, showcasing several key changes and developments compared to the previous period.

The company's financial performance reveals that its total revenue has experienced a modest decline, dropping from $597 million in 2021 to $579 million in 2023. However, the revenue generated from the creative segment decreased from $307 million in 2021 to $321 million in 2023, while the editorial segment witnessed a slight decrease from $326 million in 2021 to $321 million in 2023. The year 2023 was notably affected by the adverse impact of Hollywood strikes, whereas excluding the impact of these strikes and the COVID-19 pandemic, the business has consistently grown over the last 10 years, averaging an annual currency-neutral growth rate of approximately 7.5%.

Despite these revenue fluctuations, the company's gross margin has remained quite stable, standing at 73% in 2023, slightly up from 71% in 2019. Additionally, the company's customer acquisition cost (CAC) has seen a significant reduction, dropping from $200 in 2019 to $109 in 2023, signifying improved cost efficiency in acquiring new customers.

Furthermore, Getty Images highlighted its strategic transformation, which involved significant investments to position the company for capital-light growth. This transformation included migrating its end-to-end platform to the cloud, forming leading tech partnerships, prioritizing the shift to high-retention subscriptions, exiting legacy declining products, and revamping marketing through SEO and iStock growth vector.

In terms of engagement and subscription, the company has seen a decline in purchasing customers due to a shift to committed subscriptions. However, the total active annual subscribers have increased from 794 thousand in 2021 to 799 thousand in 2023, with subscriptions accounting for 33% of total revenue in 2023, up from 30% in 2021.

Following these announcements, the company's shares moved 3.5%, and are now trading at a price of $3.53. For the full picture, make sure to review Getty Images's 8-K report.

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