NEW YORK - Shutterstock , Inc. (NYSE: NYSE:SSTK), a leading global creative platform, reported mixed results for the fourth quarter ended December 31, 2023. The company posted adjusted earnings per share (EPS) of $0.72, surpassing the analyst estimate of $0.60. Despite the earnings beat, quarterly revenue fell short at $217.2 million, missing the consensus estimate of $224.01 million. Following the announcement, Shutterstock's stock saw a marginal decline of 0.01%.
Shutterstock's revenue for the fourth quarter remained flat compared to the same period last year. The company's Content product offering saw a 10% decline in revenue to $177.5 million, which was 82% of the total revenue for the quarter. However, the Data, Distribution, and Services product offering showed a significant increase of 96.4% to $39.7 million, representing 18% of the fourth quarter revenue.
The net loss for the quarter was $1.0 million, a decrease from a net income of $7.0 million in the fourth quarter of the previous year. The company attributed the net loss to expenses associated with reimbursable costs paid to the Giphy workforce and increased marketing expenses. Adjusted EBITDA for the quarter decreased by 21% to $46.3 million, with the adjusted EBITDA margin falling to 21.3% from 26.8% in the same quarter of the previous year.
For the full year 2023, Shutterstock's revenue increased by 6% to $874.6 million, with net income rising by 45% to $110.3 million. The adjusted net income per diluted share for the full year increased to $4.35 from $3.87 in 2022.
Looking ahead, Shutterstock provided guidance for the full year 2024, projecting an adjusted EPS range of $4.15 to $4.30, which is below the analyst consensus of $4.41. The company also forecasts revenue to be around $875 million for the year, which falls short of the consensus estimate of $903.7 million.
CEO Paul Hennessy commented on the company's performance, stating, "Shutterstock delivered record revenues and profitability in 2023 and significantly exceeded our targets set out at the beginning of the year." He highlighted the company's successful investments in Data, Distribution, and Services as a key driver of growth, supported by strong industry tailwinds and a large Total Addressable Market (TAM).
Investors reacted cautiously to the mixed results, with the stock showing a negligible change. The company's performance in the Data, Distribution, and Services segment and the full-year revenue growth were positive highlights, while the flat fourth-quarter revenue and lower-than-expected guidance for the upcoming year tempered the market response.
InvestingPro Insights
Shutterstock, Inc. (NYSE: SSTK) has shown resilience in its financial performance, as indicated by the key metrics from InvestingPro. With a market capitalization of $1.59 billion, the company's valuation is grounded in solid fundamentals. The adjusted P/E ratio stands at a compelling 13.25 for the last twelve months as of Q3 2023, which, combined with a PEG ratio of 0.34, suggests that Shutterstock is trading at an attractive price relative to its near-term earnings growth potential.
InvestingPro Tips highlight the company's financial prudence and reward to shareholders. Shutterstock holds more cash than debt on its balance sheet, providing a cushion for operational flexibility and potential investments. Additionally, the company has demonstrated a commitment to returning value to shareholders, having raised its dividend for 4 consecutive years. This is further underscored by a 25.0% dividend growth over the last twelve months, reflecting confidence in its financial health and future prospects.
Investors monitoring Shutterstock's stock can take encouragement from the company's profitability track record. Analysts predict that the company will maintain profitability this year, a sentiment supported by Shutterstock being profitable over the last twelve months. For those looking to delve deeper into Shutterstock's financials and future outlook, InvestingPro offers additional insights and tips. There are currently 6 more InvestingPro Tips available for SSTK, which can be explored further at Investing.com/pro/SSTK. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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