On February 25, 2025, Shutterstock Inc (SSTK, Financial) released its 8-K filing detailing the financial results for the full year and fourth quarter ended December 31, 2024. Shutterstock Inc, a U.S.-based company, is engaged in providing digital content, including licenses for images, footage, music, 3D, and generative AI content. The company generates the majority of its revenue from content offerings, primarily from the domestic market.
Performance Overview and Challenges
Shutterstock Inc reported a full-year revenue of $935.3 million, a 7% increase from $874.6 million in 2023. However, net income decreased significantly to $35.9 million from $110.3 million in the previous year. The net income per diluted share also fell to $1.01 from $3.04. The decline in net income was primarily due to a non-recurring bargain purchase gain of $50.3 million recognized in 2023 and increased interest and tax expenses related to acquisitions.
Financial Achievements and Industry Context
Despite challenges, Shutterstock achieved record revenues and adjusted EBITDA in 2024. The content business grew by 3% year-over-year, contributing $760 million, while the Data, Distribution, and Services segment saw a 28% increase, reaching $175.3 million. These achievements are crucial in the interactive media industry, where innovation and expansion are key to maintaining competitive advantage.
Income Statement and Key Metrics
For the fourth quarter of 2024, Shutterstock reported revenues of $250.3 million, falling short of the analyst estimate of $254.94 million. However, the company posted a net loss of $1.4 million, translating to a loss per diluted share of $0.04, which is below the estimated earnings per share of $0.40. Adjusted net income for the quarter was $23.4 million, down from $25.8 million in the same period last year.
Paul Hennessy, CEO, stated, "We are proud that Shutterstock achieved record revenues and Adjusted EBITDA in 2024. Our Content business grew on a year-over-year basis, and each component of our Data, Distribution, and Services business grew double digits or greater."
Balance Sheet and Cash Flow Insights
Shutterstock's total assets increased to $1.31 billion from $1.04 billion at the end of 2023, driven by acquisitions. Cash and cash equivalents rose by $10.8 million to $111.3 million. The company generated $32.6 million in net cash from operating activities, while investing activities used $166.2 million, primarily for acquisitions. Financing activities provided $150.1 million, reflecting new borrowings and share repurchases.
Analysis of Performance
Shutterstock's revenue growth, particularly in the Data, Distribution, and Services segment, highlights its strategic focus on diversifying income streams. However, the decline in net income and EPS indicates challenges in managing acquisition-related expenses and tax impacts. The company's ability to leverage its acquisitions, such as Envato, will be crucial for future profitability.
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $935.3 million | $874.6 million |
| Net Income | $35.9 million | $110.3 million |
| Net Income per Diluted Share | $1.01 | $3.04 |
| Adjusted EBITDA | $247.1 million | $240.8 million |
Shutterstock's financial results reflect a mixed performance, with strong revenue growth but challenges in profitability. The company's strategic acquisitions and focus on expanding its content and services offerings will be key to navigating the competitive landscape of the interactive media industry.
Explore the complete 8-K earnings release (here) from Shutterstock Inc for further details.
