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SHUTTERSTOCK REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS
--------------------------------------------------------------------------------
News provided by
Shutterstock, Inc.
Oct 25, 2022, 07:01 ET
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NEW YORK, Oct. 25, 2022 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the
"Company"), the leading global creative platform for transformative brands and
media companies, today announced financial results for the third quarter ended
September 30, 2022.
"I'm excited to announce our partnership with OpenAI to bring Generative AI to
benefit Shutterstock's customers and contributors," said Paul Hennessy, the
Company's Chief Executive Officer. "With this partnership, Shutterstock
positions itself at the forefront of emerging technology -- supercharging
ethical, creative storytelling for all. We also strengthened our leadership
position in video content, by progressing with the integration of Pond5 and
securing an exclusive relationship with Filmpac for cinematic quality video. And
financially, we are delivering exceptional profitability and margins despite
macroeconomic and demand headwinds."
Third Quarter 2022 highlights compared to Third Quarter 2021:
Financial Highlights
* Revenue increased 5% to $204.1 million. On a constant currency basis, revenue
increased 10%.
* Income from operations increased 29% to $28.7 million.
* Net income increased 44% to $23.0 million.
* Adjusted EBITDA increased 26% to $56.0 million.
* Net income per diluted share increased $0.21 to $0.64.
* Adjusted net income per diluted share increased $0.30 to $1.00.
* Operating cash flows decreased 31% to $37.7 million.
* Free cash flow decreased 52% to $21.4 million.
Key Operating Metrics
* Subscribers increased to 607,000.
* Subscriber revenue increased to $87.7 million.
* Average revenue per customer decreased to $329.
* Paid downloads decreased 3% to 42.8 million.
* Revenue per download increased 5% to $4.43.
* Image collection expanded 9% to over 424 million images.
* Footage collection expanded 17% to over 27 million clips, excluding Pond5
footage clips.
SHUTTERSTOCK INVESTOR RELATIONS MICRO SITE
Accessible at content.shutterstock.com/investor-report/index.html.
THIRD QUARTER RESULTS
Revenue
Third quarter revenue of $204.1 million increased $9.7 million or 5% as compared
to the third quarter of 2021. Revenue generated through our E-commerce sales
channel increased 2% as compared to the third quarter of 2021, to
$124.6 million, and represented 61% of total revenue in the third quarter of
2022. E-commerce revenue growth was primarily driven by revenue generated from
our acquisitions of PicMonkey and Pond5. Revenue from our Enterprise sales
channel increased 9% as compared to the third quarter of 2021, to $79.5 million,
and represented 39% of third quarter revenue in 2022. Enterprise revenue growth
was driven by our multi-asset product offerings and continued momentum in
Shutterstock Studios and Shutterstock Editorial. Enterprise revenue growth also
benefited from our acquisitions of Pond5 and Splash News.
On a constant currency basis, revenue increased 10% in the third quarter of 2022
as compared to the third quarter of 2021. On a constant currency basis,
E-commerce and Enterprise revenues increased by 6% and 15%, respectively, in the
third quarter of 2022, as compared to 2021. Over 30% of the Company's revenues
are denominated in foreign currencies, many of which have depreciated to
historically low values in comparison to the U.S. Dollar.
Net income and net income per diluted share
Net income of $23.0 million increased $7.0 million as compared to $16.0 million
for the third quarter in 2021. Net income per diluted share was $0.64, as
compared to $0.43 for the same period in 2021. This increase was due primarily
to revenue growth in the third quarter of 2022 as compared to 2021, partially
offset by higher operating expenses. The increase in operating expenses was
driven by costs associated with the PicMonkey, Pond5 and Splash News acquired
businesses.
Adjusted net income per diluted share was $1.00 as compared to $0.70 for the
third quarter of 2021, an increase of $0.30 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $56.0 million for the third quarter of 2022 increased by
$11.6 million, or 26%, as compared to the third quarter of 2021, due primarily
to increased revenue, partially offset by higher operating expenses. The
adjusted EBITDA margin increased to 27.5% from 22.8% in the third quarter of
2021.
THIRD QUARTER LIQUIDITY
Our cash and cash equivalents decreased by $7.8 million to $76.2 million at
September 30, 2022, as compared with $84.0 million as of June 30, 2022. This
decrease was driven by $24.9 million used in financing activities and
$17.6 million used in investing activities, partially offset by $37.7 million of
net cash provided by our operating activities.
Net cash provided by our operating activities was driven by our operating
income, in addition to changes in the timing of payments pertaining to operating
expenses. Cash used in investing activities primarily consists of $16.3 million
related to capital expenditures and content acquisition. Cash used in financing
activities primarily consists of $16.6 million paid for the repurchase of common
stock under our share repurchase program and $8.6 million related to the payment
of the quarterly cash dividend.
Free cash flow was $21.4 million for the third quarter of 2022, a decrease of
$22.9 million from the third quarter of 2021. This change was primarily driven
by lower cash flows from operating activities impacted by working capital and
timing of cash expenditures.
QUARTERLY CASH DIVIDEND
During the three months ended September 30, 2022, the Company declared and paid
cash dividends of $0.24 per common share, or $8.6 million.
On October 17, 2022, the Board of Directors declared a dividend of $0.24 per
share of outstanding common stock, payable on December 15, 2022 to stockholders
of record at the close of business on December 1, 2022.
KEY OPERATING METRICS
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Subscribers (end of period)(1)
607,000
336,000
607,000
336,000
Subscriber revenue (in millions)(2)
$ 87.7
$ 81.5
$ 257.8
$ 236.1
Average revenue per customer (last twelve months)(3)
$ 329
$ 361
$ 329
$ 361
Paid downloads (in millions)(4)
42.8
44.3
130.8
135.0
Revenue per download(5)
$4.43
$4.20
$4.37
$4.11
Content in our collection (end of period, in millions)(6):
Images
424
390
424
390
Footage clips
27
23
27
23
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 and from PicMonkey beginning September 2022.
These metrics exclude the respective counts and revenues from our acquisitions
of Pond5 and Splash News.
(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 custom content,
downloads of content that are offered to customers for no charge, including our
free image of the week 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
custom content, revenue that is not derived from or associated with content
licenses and revenue associated with our computer vision offering.
(6) Represents approved images (photographs, vectors and illustrations) and
footage (in number of clips) in our library on shutterstock.com at the end of
the period. This collection metric excludes content that is not uploaded
directly to our site but is available for license by our customers through an
application program interface, custom content and certain content that may be
licensed for editorial use only.
2022 GUIDANCE
We are revising our full year revenue target to $815 million based on weak
demand in Europe and foreign currency pressures, and assuming no improvement in
underlying demand through the rest of the year. Our profitability remains
strong, and we expect 2022 Adjusted EBITDA to come in towards the high end of
our previously provided guidance.
2022 full-year guidance, including the revised revenue guidance, is as follows:
* Revenue of $815 million, representing annual growth of 5% and 9% on a
constant currency basis.
* Adjusted EBITDA of between $214 million to $217 million.
* Adjusted net income per diluted share of between $3.75 to $3.80.
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, foreign currency transaction
gains and losses, 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, the
amortization of acquisition-related intangible assets 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, and content acquisition. 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 third quarter and full year financial results
during a teleconference today, October 25, 2022, at 8:30 AM ET. 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://register.vevent.com/register/BI3f1637ebd8804c66a8f44d166b421e0c) to
receive the dial-in numbers and unique PIN to access the call seamlessly. It is
recommended that you join 10 minutes prior to the event start (although you may
register and dial in at any time during the call).
A webcast replay of the call will be available on the Company's website
beginning on October 25, 2022 at approximately 10:30 AM Eastern Time.
ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK), is the leading global creative platform for
transformative brands and media companies. Directly and through its group
subsidiaries, Shutterstock's comprehensive collection includes high-quality
licensed photographs, vectors, illustrations, 3D models, videos and music.
Working with its growing community of over 2 million contributors, Shutterstock
adds hundreds of thousands of images each week, and currently has more than 424
million images and more than 27 million video clips available.
Headquartered in New York City, Shutterstock has offices around the world and
customers in more than 150 countries. The Company also owns Splash News, the
world's leading entertainment news agency for newsrooms and media companies
worldwide; Pond5, the world's largest video marketplace, TurboSquid, the world's
largest 3D content marketplace; PicMonkey, a leading online graphic design and
image editing platform; Offset, a high-end image collection; Shutterstock
Studios, an end-to-end custom creative shop; PremiumBeat, a curated royalty-free
music library; Shutterstock Editorial, a premier source of editorial images and
videos for the world's media; Amper Music, an AI-driven music platform; and
Bigstock, a value-oriented stock media offering.
For more information, please visit www.shutterstock.com and follow Shutterstock
on Twitter and on Facebook.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. 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, future dividends, our ability to consummate acquisitions and
integrate the businesses we have acquired or may acquire into our existing
operations, new or planned features, products or services, management
strategies, our competitive position and the COVID-19 pandemic. 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" 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 discussed under the caption "Risk Factors" in our
most recent Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for
the quarter ended June 30, 2022, 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 September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Revenue
$ 204,096
$ 194,439
$ 610,100
$ 567,632
Operating expenses:
Cost of revenue
79,911
69,634
226,381
199,223
Sales and marketing
47,777
54,456
155,335
142,273
Product development
17,534
13,565
48,322
36,289
General and administrative
30,189
34,615
94,085
96,335
Total operating expenses
175,411
172,270
524,123
474,120
Income from operations
28,685
22,169
85,977
93,512
Other expense, net
(1,546)
(1,749)
(3,449)
(2,888)
Income before income taxes
27,139
20,420
82,528
90,624
Provision for income taxes
4,099
4,391
13,471
15,627
Net income
$ 23,040
$ 16,029
$ 69,057
$ 74,997
Earnings per share
Basic
$ 0.64
$ 0.44
$ 1.91
$ 2.05
Diluted
$ 0.64
$ 0.43
$ 1.88
$ 2.01
Weighted average common shares outstanding:
Basic
35,929
36,622
36,117
36,510
Diluted
36,269
37,417
36,681
37,285
Shutterstock, Inc.
Consolidated Balance Sheets
(In thousands, except par value amount)
(unaudited)
September 30, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$ 76,244
$ 314,017
Accounts receivable, net of allowance of $3,498 and $1,910
52,713
47,707
Prepaid expenses and other current assets
32,095
26,491
Total current assets
161,052
388,215
Property and equipment, net
55,141
48,074
Right-of-use assets
32,946
34,570
Intangibles assets, net
172,916
123,822
Goodwill
379,505
219,816
Deferred tax assets, net
12,391
10,512
Other assets
26,229
26,701
Total assets
$ 840,180
$ 851,710
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 6,467
$ 10,092
Accrued expenses
80,699
99,529
Contributor royalties payable
35,974
29,004
Deferred revenue
174,384
180,979
Debt
50,000
—
Other liabilities
12,549
14,180
Total current liabilities
360,073
333,784
Deferred tax liability, net
3,495
2,781
Lease liabilities
35,871
36,966
Other non-current liabilities
10,158
9,697
Total liabilities
409,597
383,228
Commitment and contingencies
Stockholders' equity:
Common stock, $0.01 par value; 200,000 shares authorized; 39,585 and 39,209
shares
issued and 35,809 and 36,417 shares outstanding as of September 30, 2022 and
December 31, 2021, respectively
396
392
Treasury stock, at cost; 3,776 and 2,792 shares as of September 30, 2022 and
December 31,
2021, respectively
(200,008)
(127,196)
Additional paid-in capital
380,325
376,537
Accumulated other comprehensive loss
(22,720)
(10,788)
Retained earnings
272,590
229,537
Total stockholders' equity
430,583
468,482
Total liabilities and stockholders' equity
$ 840,180
$ 851,710
Shutterstock, Inc.
Consolidated Statements of Cash Flows
(In thousands, except par value amount)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 23,040
$ 16,029
$ 69,057
$ 74,997
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
18,259
13,488
49,834
33,731
Deferred taxes
(3,272)
(1,362)
(6,874)
420
Non-cash equity-based compensation
9,089
8,743
23,958
26,639
Bad debt expense
373
(31)
993
182
Changes in operating assets and liabilities:
Accounts receivable
(4,779)
4,428
(5,541)
(1,628)
Prepaid expenses and other current and non-current assets
(1,950)
(5,577)
(3,157)
(11,469)
Accounts payable and other current and non-current liabilities
(3,947)
18,280
(32,927)
24,639
Contributor royalties payable
1,523
(550)
5,236
1,200
Deferred revenue
(621)
1,194
(3,290)
13,147
Net cash provided by operating activities
$ 37,715
$ 54,642
$ 97,289
$ 161,858
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(12,125)
(5,830)
(32,922)
(21,167)
Business combination, net of cash acquired
253
(109,607)
(211,843)
(181,772)
Asset acquisitions
(1,517)
(31,440)
(1,667)
(31,440)
Acquisition of content
(4,192)
(4,494)
(11,191)
(7,890)
Security deposit payment
(1)
(73)
(282)
(138)
Net cash used in investing activities
$ (17,582)
$ (151,444)
$ (257,905)
$ (242,407)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of treasury shares
(16,551)
(4,171)
(73,488)
(4,171)
Proceeds from exercise of stock options
1,242
217
1,810
2,018
Cash paid related to settlement of employee taxes related to RSU vesting
(938)
(1,044)
(21,976)
(21,273)
Payment of cash dividend
(8,633)
(7,683)
(26,004)
(23,000)
Proceeds from credit facility
—
—
50,000
—
Payment of debt issuance costs
—
—
(619)
—
Net cash used in financing activities
$ (24,880)
$ (12,681)
$ (70,277)
$ (46,426)
Effect of foreign exchange rate changes on cash
(3,055)
(984)
(6,880)
(1,020)
Net decrease in cash, cash equivalents and restricted cash
(7,802)
(110,467)
(237,773)
(127,995)
Cash, cash equivalents and restricted cash, beginning of period
84,046
411,046
314,017
428,574
Cash, cash equivalents and restricted cash, end of period
$ 76,244
$ 300,579
$ 76,244
$ 300,579
Supplemental Disclosure of Cash Information:
Cash paid for income taxes
$ 6,776
$ 5,316
$ 19,476
$ 14,811
Cash paid for interest
384
—
474
—
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 September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Net income
$ 23,040
$ 16,029
$ 69,057
$ 74,997
Add / (less) Non-GAAP adjustments:
Depreciation and amortization
18,259
13,488
49,834
33,731
Non-cash equity-based compensation
9,088
8,743
23,958
26,639
Other adjustments, net (1)
1,547
1,749
3,449
2,888
Provision for income taxes
4,099
4,391
13,471
15,627
Adjusted EBITDA
$ 56,033
$ 44,400
$ 159,769
$ 153,882
Adjusted EBITDA margin
27.5 %
22.8 %
26.2 %
27.1 %
(1)
Other adjustments, net includes unrealized foreign currency transaction gains
and losses, and interest income and expense.
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Net income
$ 23,040
$ 16,029
$ 69,057
$ 74,997
Add / (less) Non-GAAP adjustments:
Non-cash equity-based compensation
9,088
8,743
23,958
26,639
Tax effect of non-cash equity-based compensation (2)
(2,135)
(2,055)
(5,629)
(6,260)
Acquisition-related amortization expense (3)
8,069
4,754
21,224
7,253
Tax effect of acquisition-related amortization expense (2)
(1,896)
(1,117)
(4,988)
(1,704)
Adjusted net income
$ 36,166
$ 26,354
$ 103,622
$ 100,925
Net income per diluted share
$ 0.64
$ 0.43
$ 1.88
$ 2.01
Adjusted net income per diluted share
$ 1.00
$ 0.70
$ 2.82
$ 2.71
Weighted average diluted shares
36,269
37,417
36,681
37,285
(2)
Statutory tax rates are used to calculate the tax effect of the adjustments.
(3)
Of these amounts, $7.5 million and $3.8 million for the three months ended
September 30, 2022 and 2021, respectively, are included within cost of revenue
in the Statements of Operations. The remainder of acquisition-related
amortization expense is included in general and administrative expense in the
Statements of Operations.
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Total Revenues
$ 204,096
$ 194,439
$ 610,100
$ 567,632
Revenue growth
5 %
18 %
7 %
17 %
Revenue growth on a constant currency basis
10 %
17 %
11 %
15 %
E-commerce revenues
$ 124,594
$ 121,707
$ 379,052
$ 360,822
Revenue growth: E-commerce
2 %
18 %
5 %
20 %
Revenue growth: E-commerce on a constant currency basis
6 %
18 %
8 %
18 %
Enterprise revenues
$ 79,502
$ 72,732
$ 231,048
$ 206,810
Revenue growth: Enterprise
9 %
17 %
12 %
12 %
Revenue growth: Enterprise on a constant currency basis
15 %
15 %
16 %
9 %
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Net cash provided by operating activities
$ 37,715
$ 54,642
$ 97,289
$ 161,858
Capital expenditures
(12,125)
(5,830)
(32,922)
(21,167)
Content acquisition
(4,192)
(4,494)
(11,191)
(7,890)
Free cash flow
$ 21,398
$ 44,318
$ 53,176
$ 132,801
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
E-commerce revenue
$ 124,594
$ 121,707
$ 379,052
$ 360,822
Enterprise revenue
$ 79,502
$ 72,732
$ 231,048
$ 206,810
Total revenue
$ 204,096
$ 194,439
$ 610,100
$ 567,632
Change in total deferred revenue(1)
$ (3,969)
$ 710
$ (10,300)
$ 12,802
Total billings
$ 200,127
$ 195,149
$ 599,800
$ 580,434
(1)
Change in total deferred revenue excludes deferred revenue acquired through
business combinations.
Shutterstock, Inc.
Supplemental Financial Data
(unaudited)
Historical Operating Metrics
Three Months Ended
9/30/22
6/30/22
3/31/22
12/31/21
9/30/21
6/30/21
3/31/21
12/31/20
Subscribers (end of period, in thousands) (1)
607
368
359
343
336
321
306
281
Subscriber revenue (in millions) (2)
$ 87.7
$ 84.7
$ 85.4
$ 81.4
$ 81.5
$ 78.1
$ 76.5
$ 71.1
Average revenue per customer (last twelve months) (3)
$ 329
$ 359
$ 355
$ 368
$ 361
$ 356
$ 342
$ 333
Paid downloads (in millions) (4)
42.8
43.4
44.6
45.0
44.3
44.9
45.8
45.8
Revenue per download (5)
$ 4.43
$ 4.46
$ 4.22
$ 4.29
$ 4.20
$ 4.17
$ 3.96
$ 3.91
Content in our collection (end of period, in millions): (6)
Images
424
415
405
400
390
380
370
360
Footage clips
27
26
25
24
23
22
21
21
Equity-Based Compensation by expense category
Three Months Ended
($ in thousands)
9/30/22
6/30/22
3/31/22
12/31/21
9/30/21
6/30/21
3/31/21
12/31/20
Cost of revenue
$ 173
$ 156
$ 78
$ 54
$ (49)
$ 194
$ 164
$ 155
Sales and marketing
1,503
1,629
928
857
638
926
467
586
Product development
2,957
2,557
1,781
2,017
1,675
1,799
1,229
1,038
General and administrative
4,455
2,702
5,039
6,612
6,479
6,767
6,350
8,849
Total non-cash equity-based compensation
$ 9,088
$ 7,044
$ 7,826
$ 9,540
$ 8,743
$ 9,686
$ 8,210
$ 10,628
Depreciation and Amortization by expense category
Three Months Ended
($ in thousands)
9/30/22
6/30/22
3/31/22
12/31/21
9/30/21
6/30/21
3/31/21
12/31/20
Cost of revenue
$ 16,856
$ 15,172
$ 13,759
$ 13,682
$ 11,343
$ 8,214
$ 8,311
$ 8,679
General and administrative
1,404
1,338
1,305
1,358
2,146
1,937
1,780
1,560
Total depreciation and amortization
$ 18,260
$ 16,510
$ 15,064
$ 15,040
$ 13,489
$ 10,151
$ 10,091
$ 10,239
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 and from PicMonkey beginning September 2022.
These metrics exclude the respective counts and revenues from our acquisitions
of Pond5 and Splash News.
(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 custom content,
downloads of content that are offered to customers for no charge, including our
free image of the week 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
custom content, revenue that is not derived from or associated with content
licenses and revenue associated with our computer vision offering.
(6) Represents approved images (photographs, vectors and illustrations) and
footage (in number of clips) in our library on shutterstock.com at the end of
the period. This collection metric excludes content that is not uploaded
directly to our site but is available for license by our customers through an
application program interface, custom content and certain content that may be
licensed for editorial use only.
SOURCE Shutterstock, Inc.
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