On Monday, Shutterstock , Inc. (NYSE:SSTK) retained its Market Perform rating from analysts at JMP Securities following the company’s first-quarter financial report for 2025. The results revealed that both revenue and EBITDA fell short of consensus estimates by 4% and 5%, respectively. Shutterstock’s recent merger agreement with Getty Images, announced in January, led to the company foregoing its earnings call and abstaining from providing future guidance.
The report highlighted a 17% year-over-year increase in content revenue, reaching $202.9 million, largely attributed to the acquisition of Envato completed in July 2024. This acquisition is estimated to have contributed approximately $50 million in inorganic revenue for the quarter. While the company maintains a healthy 57.6% gross profit margin according to InvestingPro data, concerns were raised regarding the company’s organic content revenue, which is believed to be declining due to persistent challenges in new customer acquisition and a weaker demand at the top of the sales funnel. The stock has faced significant pressure, declining over 55% in the past year.
Moreover, the company’s sales and marketing expenses have decreased by about $3 million year-over-year, which may reflect ongoing issues in attracting new customers. Despite these challenges, the improved valuation of Shutterstock after the Envato acquisition has not prompted a change in the Market Perform rating by JMP Securities.
The financial performance of Shutterstock comes in the context of its merger with Getty Images, a move that is part of the broader industry trend of consolidation. The analysts at JMP Securities have chosen to maintain their stance on the stock, suggesting that the market should not expect significant changes in the company’s rating in the near term.
In other recent news, Shutterstock reported its first quarter 2025 financial results, showcasing significant revenue growth. The company achieved a revenue of $242.6 million, marking a 13% increase year-over-year, although this figure fell short of analyst estimates of $254.77 million. Shutterstock’s adjusted earnings per share were $0.53, missing the expected $0.61. The company’s Content revenue, which forms a substantial part of its total income, rose 17% to $202.9 million. Additionally, Shutterstock’s subscriber base more than doubled, reaching 1.08 million by the end of the quarter. The company reported an adjusted EBITDA of $63.4 million, which is a 13% increase from the previous year, with an adjusted EBITDA margin of 26.1%. Shutterstock also maintained its quarterly dividend at $0.33 per share. Despite the earnings miss, the strong revenue growth and subscriber expansion have been positively received by investors.
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