Fri, May 2, 11:33 AM (11 days ago)
**Shutterstock, Inc. (SSTK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $242.6 million, up 13% YoY (14% on a constant currency basis). - **Net Income:** $18.7 million, up 16% YoY. - **Earnings per Share (EPS):** $0.54 basic, $0.53 diluted. - **Operating Expenses:** $232.4 million, up 18% YoY. - **Operating Income:** $10.2 million, down 39% YoY. - **Cash Flow from Operations:** $25.2 million, up 203% YoY. **Profit Margins:** - **Operating Margin:** 4.2% (down from 7.8% in Q1 2024). - **Net Margin:** 7.7% (up from 7.5% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** $25.2 million. - **Investing Cash Flow:** -$11.2 million (capital expenditures and content acquisitions). - **Financing Cash Flow:** -$15.8 million (dividends and tax payments). **Earnings Changes:** - **Revenue Growth:** Driven by the acquisition of Envato, which contributed to Content revenue growth of 17%. - **Operating Expenses:** Increased due to higher royalties, content expenses, employee-related costs, and website hosting fees, primarily driven by the acquisition of Envato. **Quarterly Performance Discussion:** - **Revenue Growth:** Content revenue increased by 17%, while Data, Distribution, and Services revenues decreased by 2%. - **Expenses:** Cost of revenue increased by 14%, sales and marketing expenses decreased by 5%, product development expenses decreased by 6%, and general and administrative expenses increased by 82%. - **Income Taxes:** Effective tax rate was 8.5%, down from 20.9% in Q1 2024, primarily due to discrete items. **Trends & Uncertainties:** - **Seasonal Trends:** Quarterly results may fluctuate due to seasonal trends in customer behavior. - **Economic Factors:** Revenue is sensitive to economic conditions, industry prospects, and budgeting constraints. - **Merger Uncertainties:** The proposed merger with Getty Images introduces regulatory and operational uncertainties. **Future Operations Impact:** - **Merger with Getty Images:** If completed, Shutterstock's common stock will be delisted from the NYSE. - **Capital Allocation:** Plans to finance operations, capital expenditures, and corporate actions through cash generated by operations and the credit facility. - **Dividends:** Declared a quarterly cash dividend of $0.33 per share. **Key Metrics:** - **Subscribers:** 1,079,000 (up from 499,000 in Q1 2024). - **Subscriber Revenue:** $109.9 million (up from $83.9 million in Q1 2024). - **Average Revenue per Customer:** $244 (down from $418 in Q1 2024). - **Paid Downloads:** 120.9 million (up from 35.0 million in Q1 2024). **Non-GAAP Measures:** - **Adjusted Net Income:** $36.3 million (up from $33.1 million in Q1 2024). - **Adjusted EBITDA:** $63.4 million (up from $56.0 million in Q1 2024). - **Adjusted Free Cash Flow:** $23.4 million (up from $11.2 million in Q1 2024).