NEW YORK - Shutterstock , Inc. (NYSE: NYSE:SSTK), a leading global creative platform, announced its financial results for the first quarter ended March 31, 2024, with earnings surpassing analyst expectations.
The company reported an adjusted EPS of $1.13, which was $0.25 higher than the analyst estimate of $0.88. However, the company experienced a slight dip in revenue, reporting $214.3 million, which was consistent with the $215.3 million from the first quarter of the previous year but still above the consensus estimate of $208.54 million.
Shutterstock's CEO, Paul Hennessy, expressed satisfaction with the company's performance, noting strong results that exceeded expectations. He attributed the success to increased demand in the Data, Distribution & Services segment and promising indicators in the Content segment. Hennessy also highlighted the strategic acquisition of Envato, which is expected to accelerate Shutterstock's long-term goals and expand its reach.
Despite the steady revenue, the company saw a decline in net income, which fell to $16.1 million from $32.8 million in the first quarter of the previous year, a decrease of 50.9%. Adjusted EBITDA also decreased by 20%, from $69.8 million to $56.0 million, with the company citing higher operating expenses related to workforce costs, marketing, and acquisitions as contributing factors. The net income margin dropped significantly, from 15.3% to 7.5%, and the adjusted EBITDA margin fell from 32.4% to 26.1%.
For the full year 2024, Shutterstock has raised its revenue guidance to a range of $923 million to $936 million, representing a 5.5% to 7% annual growth, which is above the analyst consensus of $875.7 million. The company also forecasts an adjusted EPS between $4.18 and $4.32, compared to the consensus of $4.22.
The Content product offering saw a 10% decline in revenue, primarily due to a decrease in new customer acquisition, while revenue from the Data, Distribution, and Services product offering increased by 90%. The company's cash and cash equivalents also saw a decrease, ending the quarter at $71.8 million compared to $100.5 million at the end of the previous quarter.
Shutterstock declared and paid a quarterly cash dividend of $0.30 per common share during the first quarter and announced another dividend of the same amount to be paid on June 13, 2024, to stockholders of record as of May 30, 2024.
In terms of operating metrics, the company ended the quarter with 499,000 subscribers, a decline from 559,000 in the same period last year. Subscriber revenue also decreased to $83.9 million from $90.6 million, while the average revenue per customer increased from $356 to $418. Paid downloads decreased from 42.7 million to 35.0 million, although the revenue per download increased from $4.41 to $4.97.
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