Shutterstock Reports Record Q3 Revenues

By Tamara Parker • Tuesday, October 29 10:29 • Permanent Link

Shutterstock, Inc. (NYSE: SSTK) has reported its financial results for the third quarter of 2024, achieving record revenues and adjusted EBITDA. The company also announced the departure of its CFO and the appointment of a new CFO.

In terms of financial performance, revenues for the third quarter of 2024 were $250.6 million, up from $233.2 million in the third quarter of 2023. However, net income decreased to $17.6 million from $28.4 million, and net income per diluted common share dropped to $0.50 from $0.79 during the same period. Adjusted net income increased to $46.4 million from $45.5 million, and adjusted net income per diluted common share rose to $1.31 from $1.26. Adjusted EBITDA also increased to $70.0 million from $64.7 million year-over-year.

The company completed its acquisition of Envato Pty Ltd. on July 22, 2024, for an aggregate consideration of $250 million. Third quarter revenue of $250.6 million represented a 7% increase compared to the same period in 2023, with content revenue accounting for 81% of total revenue. Revenue from the content product offering increased by 14% to $203.7 million, driven by revenue generated from Envato.

Shutterstock's cash and cash equivalents increased to $131.4 million at September 30, 2024, from $74.9 million at June 30, 2024. The company's adjusted free cash flow for the third quarter of 2024 was $45.7 million, up from the third quarter of 2023.

Key operating metrics for the third quarter of 2024 showed that subscribers at the end of the period were at 470,000 for Shutterstock and 635,000 for Envato. Paid downloads for the quarter were 32.9 million for Shutterstock and 79.4 million for Envato.

Looking ahead, Shutterstock has increased its guidance for 2024, with revenue expected to be in the range of $935 million to $940 million, representing a 7% to 7.5% year-over-year growth. Adjusted net income per diluted share is anticipated to be between $4.22 and $4.31, with adjusted EBITDA projected to be $247 million to $250 million.

These figures reflect Shutterstock's strong performance and strategic moves in the creative content market, setting the stage for continued growth and profitability. Today the company's shares have moved 11.2% to a price of $32.84. For more information, read the company's full 8-K submission here.

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