Technology
Shutterstock Reports Second Quarter 2024 Financial Results
Published
2 years agoon
By
NEW YORK, Aug. 6, 2024 /PRNewswire/ — Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, today announced financial results for the second quarter ended June 30, 2024.
Commenting on the Company’s performance, Paul Hennessy, the Company’s Chief Executive Officer, said, “Shutterstock’s second quarter results exceeded our expectations for revenue and adjusted EBITDA driven by exceptional growth in Data, Distribution and Services. We are thrilled to have closed the Envato acquisition and added a value-packed unlimited subscription to enhance our Content business. And our innovation around GenAI continues with our launches of Gen3D and ImageAI models trained exclusively on Shutterstock data.”
Second Quarter 2024 measures as compared to Second Quarter 2023:
Financial Measures
Revenues were $220.1 million compared to $208.8 million.Net income was $3.6 million compared to $50.0 million.Net income per diluted common share was $0.10 compared to $1.37.Adjusted net income was $35.9 million compared to $39.1 million.Adjusted net income per diluted common share was $1.00 compared to $1.07.Adjusted EBITDA was $62.1 million compared to $60.1 million.
Acquisition of Envato Pty Ltd.
On July 22, 2024, the Company completed its previously announced acquisition of Envato Pty Ltd. (“Envato”) pursuant to a Share Purchase Agreement entered into May 1, 2024, and the Company purchased all of the issued and outstanding capital stock of Envato. The aggregate consideration paid by the Company, after customary working capital and other adjustments, was $250 million.
SECOND QUARTER RESULTS
Revenue
Second quarter revenue of $220.1 million increased $11.2 million or 5% as compared to the second quarter of 2023.
Revenue from our Content product offering decreased $17.0 million, or 9%, as compared to the second quarter of 2023, to $170.0 million. The decline in our Content revenues was driven by weakness in new customer acquisition. Content revenue represented 77% of our total revenue in the second quarter of 2024. Revenue generated from our Data, Distribution, and Services product offering increased $28.2 million, or 129%, as compared to the second quarter of 2023, to $50.1 million, and represented 23% of second quarter revenue in 2024.
On a constant currency basis, revenue increased approximately 6% in the second quarter of 2024 as compared to the second quarter of 2023.
Net income and net income per diluted common share
Net income in the second quarter of 2024 of $3.6 million decreased $46.4 million as compared to net income of $50.0 million for the second quarter in 2023. Net income per diluted common share was $0.10, as compared to $1.37 for the same period in 2023. The decline in net income was driven by a bargain purchase gain of $41.9 million related to the acquisition of Giphy recognized in the second quarter of 2023 and expenses associated with reimbursable costs paid to the Giphy workforce.
Adjusted net income and adjusted net income per diluted common share
Adjusted net income in the second quarter of 2024 of $35.9 million decreased $3.2 million as compared to adjusted net income of $39.1 million for the second quarter in 2023. Second quarter 2024 adjusted net income was unfavorably impacted by expenses associated with reimbursable costs paid to the Giphy workforce.
Adjusted net income per diluted common share was $1.00 as compared to $1.07 for the second quarter of 2023, a decrease of $0.07 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $62.1 million for the second quarter of 2024 increased by $2.0 million, or 3%, as compared to the second quarter of 2023, primarily due to higher revenue partially offset by the increase in expenses associated with reimbursable costs paid to the Giphy workforce.
Net income margin of 1.6% for the second quarter of 2024 decreased by 22.3%, as compared to 23.9% in the second quarter of 2023. The adjusted EBITDA margin of 28.2% for the second quarter of 2024 decreased by 0.6%, as compared to 28.8% in the second quarter of 2023.
SECOND QUARTER LIQUIDITY
Our cash and cash equivalents increased by $3.1 million to $74.9 million at June 30, 2024, as compared with $71.8 million as of March 31, 2024. This increase was driven by $28.0 million of net cash provided by our operating activities and $8.3 million of net cash provided by investing activities, partially offset by $32.1 million of net cash used in financing activities.
Net cash provided by our operating activities was driven by our operating income, in addition to changes in the timing of cash collections from our customers and payments pertaining to operating expenses. Operating cash flows were unfavorably impacted by payments made to the Giphy workforce, the reimbursement of which is reflected in Investing Activities.
Cash provided by investing activities for the three months ended June 30, 2024 consisted of $18.1 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller, partially offset by $9.9 million related to capital expenditures and content acquisition.
Cash used in financing activities for the three months ended June 30, 2024 consisted of $20.6 million paid for the repurchase of common stock under our share repurchase program, $10.7 million related to the payment of the quarterly cash dividend and $0.9 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards.
Adjusted free cash flow was $36.2 million for the second quarter of 2024, an increase of $2.8 million from the second quarter of 2023.
QUARTERLY CASH DIVIDEND
During the three months ended June 30, 2024, the Company declared and paid a cash dividend of $0.30 per common share or $10.7 million.
On July 22, 2024, the Board of Directors declared a dividend of $0.30 per share of outstanding common stock, payable on September 12, 2024 to stockholders of record at the close of business on August 29, 2024.
KEY OPERATING METRICS
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Subscribers (end of period)(1)
490,000
556,000
490,000
556,000
Subscriber revenue (in millions)(2)
$ 80.3
$ 87.4
$ 164.2
$ 178.0
Average revenue per customer (last twelve months)(3)
$ 434
$ 374
$ 434
$ 374
Paid downloads (in millions)(4)
33.4
38.5
68.4
81.2
Revenue per download(5)
$ 5.09
$ 4.71
$ 5.03
$ 4.56
Content in our collection (end of period, in millions)(6):
Images
837
734
837
734
Footage clips
58
50
58
50
Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Pond5 and Splash News beginning May 2023. These metrics exclude the respective counts and revenues from Giphy and Backgrid.
(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.
(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.
(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.
(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.
(5) Revenue per download is the amount of revenue recognized in a given period divided by the number of paid downloads in that period excluding revenue from our Studios business, revenue that is not derived from or associated with content licenses and revenue associated with our data deal offering.
(6) Content in our collection represents approved images (photographs, vectors and illustrations) and footage (in number of clips) in our library at the end of the period. This metric excludes content that is not uploaded directly to our site but is available for license by our customers through an application program interface, content from our Studios business and AI generated content.
SHUTTERSTOCK DATA BUSINESS UPDATE
Details of our Data Business Update as of June 30, 2024 may be found in our investor presentation titled “Shutterstock Data Business Update,” available at https://investor.shutterstock.com/.
2024 GUIDANCE
The Company is updating its guidance as follows:
Revenue guidance of $927 million to $936 million, representing growth of 6% to 7% year-over-year.Adjusted net income per diluted share of between $4.18 to $4.32.Adjusted EBITDA of $245 million to $248 million.
NON-GAAP FINANCIAL MEASURES
To supplement Shutterstock’s consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock’s management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow.
Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, bargain purchase gain related to the acquisition of Giphy, Giphy Retention Compensation Expense – non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, unrealized losses / gains on investments, interest income and expense and income taxes; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, bargain purchase gain related to the acquisition of Giphy, Giphy Retention Compensation Expense – non-recurring, severance costs associated with strategic workforce optimizations, unrealized losses / gains on investments and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods in the comparison; billings as revenue adjusted for the change in deferred revenue, excluding deferred revenue acquired through business combinations; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition and cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy.
The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the “Giphy Retention Compensation Expense – non-recurring”), are required payments in accordance with the terms of the acquisition. Meta’s sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the “CMA”) and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense – non-recurring is not considered an ongoing expense necessary to operate the Company’s business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. For the three months ended June 30, 2024, the Company also incurred $5.1 million of Giphy Retention Compensation expense related to recurring employee costs, which is included in operating expenses, and are not included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.
These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Shutterstock’s management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock’s operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company’s overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock’s underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock’s operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock’s financial reporting. Shutterstock’s management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company’s ongoing business operations and provides them with the same measures that management uses as the basis for making resource allocation decisions.
Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock’s business operations, financial performance and overall liquidity; (ii) facilitate management’s internal comparisons of the historical operating performance of its business operations; (iii) facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock’s management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.
Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings, adjusted free cash flow), and each measure’s most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings “Reconciliation of Non-GAAP Financial Information to GAAP” and “Supplemental Financial Data” immediately following the Consolidated Balance Sheets.
We do not provide a reconciliation of adjusted EBITDA guidance to net income guidance or a reconciliation of adjusted net income per diluted share guidance to net income per diluted share guidance, because this cannot be done without unreasonable effort due to the impact of potential future transactions, including, but not limited to, capital structure transactions, restructuring, acquisitions, divestitures or other events and asset impairments. These amounts which lack predictability depend on various factors and could have a material impact on net income and net income per diluted share, but may be excluded from adjusted EBITDA and adjusted net income per diluted share. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
EARNINGS TELECONFERENCE INFORMATION
The Company will discuss its second quarter and financial results during a teleconference today, August 6, 2024, at 8:30 AM Eastern Time. The conference call is being webcast live and can be accessed by either visiting the Company’s website at http://investor.shutterstock.com/ or clicking here (https://edge.media-server.com/mmc/p/fffgc3rf/) for direct access. The webcast is listen-only.
A webcast replay of the call will be available on the Company’s website beginning on August 6, 2024 at approximately 10:30 AM Eastern Time.
ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK) is a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies. Fueled by millions of creators around the world, a growing data engine and a dedication to product innovation, Shutterstock is the leading global platform for licensing from the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations. From the world’s largest content marketplace, to breaking news and A-list entertainment editorial access, to all-in-one content editing platform and studio production services—all using the latest in innovative technology—Shutterstock offers the most comprehensive selection of resources to bring storytelling to life.
Learn more at www.shutterstock.com and follow us on LinkedIn, Instagram, X, Facebook and YouTube.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly in the discussion under the caption “2024 Guidance.” All statements other than statements of historical fact are forward-looking. Examples of forward-looking statements include, but are not limited to, statements regarding guidance, industry prospects, future business, future results of operations or financial condition, new or planned features, products or services, management strategies and our competitive position. You can identify forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “aim,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “predict,” “project,” “seek,” “potential,” “opportunities,” “targets,” “guidance” and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements contained herein. Such risks and uncertainties include, among others, those risks discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in other documents that the Company may file from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, Shutterstock’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. The forward-looking statements contained in this press release are made only as of this date and Shutterstock assumes no obligation to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.
Shutterstock, Inc.
Consolidated Statements of Operations
(In thousands, except for per share data)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenue
$ 220,053
$ 208,840
$ 434,368
$ 424,120
Operating expenses:
Cost of revenue
91,254
84,416
179,458
162,579
Sales and marketing
51,881
48,392
108,117
95,919
Product development
19,859
29,218
40,910
44,624
General and administrative
36,393
38,099
68,471
71,914
Total operating expenses
199,387
200,125
396,956
375,036
Income from operations
20,666
8,715
37,412
49,084
Bargain purchase gain
—
41,940
—
41,940
Other (expense) / income, net
(4,106)
726
(462)
1,771
Income before income taxes
16,560
51,381
36,950
92,795
Provision for income taxes
12,935
1,368
17,204
9,939
Net income
$ 3,625
$ 50,013
$ 19,746
$ 82,856
Earnings per share:
Basic
$ 0.10
$ 1.39
$ 0.55
$ 2.31
Diluted
$ 0.10
$ 1.37
$ 0.55
$ 2.27
Weighted average common shares outstanding:
Basic
35,697
36,047
35,644
35,952
Diluted
35,982
36,406
36,023
36,490
Shutterstock, Inc.
Consolidated Balance Sheets
(In thousands, except par value amount)
(unaudited)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$ 74,871
$ 100,490
Accounts receivable, net of allowance of $4,616 and $6,335
97,442
91,139
Prepaid expenses and other current assets
68,534
100,944
Total current assets
240,847
292,573
Property and equipment, net
63,069
64,300
Right-of-use assets
15,392
15,395
Intangible assets, net
164,508
184,396
Goodwill
402,774
383,325
Deferred tax assets, net
23,779
24,874
Other assets
93,497
71,152
Total assets
$ 1,003,866
$ 1,036,015
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 10,545
$ 9,108
Accrued expenses
96,910
131,443
Contributor royalties payable
65,705
54,859
Deferred revenue
186,522
203,463
Debt
30,000
30,000
Other current liabilities
42,649
23,513
Total current liabilities
432,331
452,386
Deferred tax liability, net
3,744
4,182
Lease liabilities
26,433
29,404
Other non-current liabilities
20,946
22,949
Total liabilities
483,454
508,921
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 40,286 and 39,982 shares
issued and 35,359 and 35,572 shares outstanding as of June 30, 2024 and December 31,
2023, respectively
402
399
Treasury stock, at cost; 4,927 and 4,410 shares as of June 30, 2024 and December 31, 2023
(248,805)
(228,213)
Additional paid-in capital
441,497
424,229
Accumulated other comprehensive loss
(13,754)
(11,974)
Retained earnings
341,072
342,653
Total stockholders’ equity
520,412
527,094
Total liabilities and stockholders’ equity
$ 1,003,866
$ 1,036,015
Shutterstock, Inc.
Consolidated Statements of Cash Flows
(In thousands, except par value amount) (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 3,625
$ 50,013
$ 19,746
$ 82,856
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
21,433
19,206
42,696
38,102
Deferred taxes
4,357
831
503
(146)
Non-cash equity-based compensation
14,976
14,943
26,126
23,586
Bad debt expense
(262)
235
(1,772)
1,025
Bargain purchase gain
—
(41,940)
—
(41,940)
Unrealized gain on investments
3,624
—
(131)
—
Changes in operating assets and liabilities:
Accounts receivable
(3,143)
(13,459)
(3,879)
5,709
Prepaid expenses and other current and non-current assets
(13,300)
(35,023)
(25,299)
(29,834)
Accounts payable and other current and non-current liabilities
3,283
8,572
(16,899)
(4,144)
Contributor royalties payable
4,561
(424)
10,688
1,822
Deferred revenue
(11,189)
26,860
(15,514)
19,553
Net cash provided by operating activities
$ 27,965
$ 29,814
$ 36,265
$ 96,589
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(9,075)
(10,490)
(23,536)
(22,870)
Business combination, net of cash acquired
—
(53,721)
(19,474)
(53,721)
Cash received related to Giphy Retention Compensation
18,121
15,752
36,522
15,752
Acquisition of content
(827)
(1,725)
(1,821)
(5,252)
Security deposit payment
82
(7)
82
(37)
Net cash provided by / (used) in investing activities
$ 8,301
$ (50,191)
$ (8,227)
$ (66,128)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of treasury shares
(20,592)
(4,000)
(20,592)
(4,000)
Proceeds from exercise of stock options
—
—
—
3
Cash paid related to settlement of employee taxes related to RSU vesting
(893)
(3,537)
(8,859)
(14,545)
Payment of cash dividends
(10,664)
(9,725)
(21,327)
(19,387)
Proceeds from credit facility
—
30,000
—
30,000
Repayment of credit facility
—
—
—
(50,000)
Net cash (used in) / provided by financing activities
$ (32,149)
$ 12,738
$ (50,778)
$ (57,929)
Effect of foreign exchange rate changes on cash
(1,057)
(1,047)
(2,879)
(540)
Net increase / (decrease) in cash and cash equivalents
3,060
(8,686)
(25,619)
(28,008)
Cash and cash equivalents, beginning of period
71,811
95,832
100,490
115,154
Cash and cash equivalents, end of period
$ 74,871
$ 87,146
$ 74,871
$ 87,146
Supplemental Disclosure of Cash Information:
Cash paid for income taxes
$ 9,659
$ 11,945
$ 12,560
$ 6,795
Cash paid for interest
496
1
1,005
429
Shutterstock, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In thousands, except per share information)
(unaudited)
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Net income
$ 3,625
$ 50,013
$ 19,746
$ 82,856
Add / (less) Non-GAAP adjustments:
Non-cash equity-based compensation
14,976
14,943
26,126
23,586
Tax effect of non-cash equity-based compensation (1)(2)
2,835
(3,512)
215
(5,543)
Acquisition-related amortization expense (3)
9,163
8,370
18,326
16,528
Tax effect of acquisition-related amortization expense (1)
(2,153)
(1,967)
(4,306)
(3,884)
Bargain purchase gain
—
(41,940)
—
(41,940)
Giphy Retention Compensation Expense – non-recurring
4,715
17,191
11,544
17,191
Tax effect of Giphy Retention Compensation Expense – non-
recurring(1)
(1,108)
(4,040)
(2,713)
(4,040)
Other(4)
3,907
—
141
1,856
Tax effect of other(1)
(63)
—
(61)
(418)
Adjusted net income(4)
$ 35,897
$ 39,058
$ 69,018
$ 86,192
Net income per diluted common share
$ 0.10
$ 1.37
$ 0.55
$ 2.27
Adjusted net income per diluted common share
$ 1.00
$ 1.07
$ 1.92
$ 2.36
Weighted average diluted shares
35,982
36,406
36,023
36,490
(1)
Statutory tax rates are used to calculate the tax effect of the adjustments.
(2)
The tax effect of non-cash equity-based compensation includes a $6.3 million add-back for the reduction of deferred tax assets associated with the expiration of performance-based stock options and restricted stock units granted the Company’s Founder and Executive Chairman in 2014. The performance-based metrics were not met, the awards were not exercisable, and the Company recognized a non-cash tax expense for the change in deferred taxes.
(3)
Of these amounts, $8.2 million and $7.7 million are included in cost of revenue for the three months ended June 30, 2024 and 2023, respectively, and $16.4 million and $15.3 million are included in cost of revenue for the six months ended June 30, 2024 and 2023, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.
(4)
The amount for the six months ended June 30, 2024 is updated to correct an error in the calculation of adjusted net income previously presented for the three months ended March 31, 2024.Other consists of unrealized gains and losses on investments and severance costs associated with strategic workforce optimizations.
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Net income
$ 3,625
$ 50,013
$ 19,746
$ 82,856
Add / (less) Non-GAAP adjustments:
Interest (income) / expense, net
(787)
(175)
(1,268)
(109)
Provision for income taxes
12,935
1,368
17,204
9,939
Depreciation and amortization
21,433
19,206
42,696
38,102
EBITDA
$ 37,206
$ 70,412
$ 78,378
$ 130,788
Non-cash equity-based compensation
14,976
14,943
26,126
23,586
Bargain purchase gain
—
(41,940)
—
(41,940)
Giphy Retention Compensation Expense – non-recurring
4,715
17,191
11,544
17,191
Foreign currency loss / (gain)
1,268
(551)
1,860
(1,662)
Unrealized loss / (gain) on investment
3,625
—
(130)
—
Workforce optimization – severance
282
—
271
1,856
Adjusted EBITDA
$ 62,072
$ 60,055
$ 118,049
$ 129,819
Revenue
$ 220,053
$ 208,840
$ 434,368
$ 424,120
Net income margin
1.6 %
23.9 %
4.5 %
19.5 %
Adjusted EBITDA margin
28.2 %
28.8 %
27.2 %
30.6 %
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Reported Revenue (in thousands)
$ 220,053
$ 208,840
$ 434,368
$ 424,120
Revenue growth
5 %
1 %
2 %
4 %
Revenue growth on a constant currency basis
6 %
1 %
3 %
5 %
Content reported revenue (in thousands)
$ 169,951
$ 186,963
$ 343,781
$ 380,947
Content revenue growth
(9) %
(7) %
(10) %
(4) %
Content revenue growth on a constant currency basis
(9) %
(7) %
(9) %
(3) %
Data, Distribution, and Services reported revenue (in thousands)
$ 50,102
$ 21,877
$ 90,587
$ 43,173
Data, Distribution, and Services revenue growth
129 %
228 %
110 %
306 %
Data, Distribution, and Services revenue growth on a constant currency
basis
129 %
228 %
110 %
306 %
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Cash flow information:
Net cash provided by operating activities
$ 27,965
$ 29,814
$ 36,265
$ 96,589
Net cash provided by / (used in) investing activities
$ 8,301
$ (50,191)
$ (8,227)
$ (66,128)
Net cash (used in) / provided by financing activities
$ (32,149)
$ 12,738
$ (50,778)
$ (57,929)
Adjusted free cash flow:
Net cash provided by operating activities
$ 27,965
$ 29,814
$ 36,265
$ 96,589
Capital expenditures
(9,075)
(10,490)
(23,536)
(22,870)
Content acquisitions
(827)
(1,725)
(1,821)
(5,252)
Cash received related to Giphy Retention Compensation
18,121
15,752
36,522
15,752
Adjusted Free Cash Flow
$ 36,184
$ 33,351
$ 47,430
$ 84,219
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Content
$ 169,951
$ 186,963
$ 343,781
$ 380,947
Data, Distribution, and Services
$ 50,102
$ 21,877
$ 90,587
$ 43,173
Total revenue
$ 220,053
$ 208,840
$ 434,368
$ 424,120
Change in total deferred revenue
$ (11,519)
$ 26,785
$ (16,941)
$ 20,413
Total billings
$ 208,534
$ 235,625
$ 417,427
$ 444,533
Shutterstock, Inc.
Supplemental Financial Data
(unaudited)
Historical Operating Metrics
Three Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
Subscribers (end of period, in thousands) (1)
490
499
523
551
556
559
586
607
Subscriber revenue (in millions) (2)
$ 80.3
$ 83.9
$ 85.2
$ 88.3
$ 87.4
$ 90.6
$ 88.8
$ 87.7
Average revenue per customer (last twelve months) (3)
$ 434
$ 418
$ 412
$ 401
$ 374
$ 356
$ 341
$ 329
Paid downloads (in millions) (4)
33.4
35.0
35.4
36.4
38.5
42.7
42.5
42.8
Revenue per download (5)
$ 5.09
$ 4.97
$ 5.02
$ 4.76
$ 4.71
$ 4.41
$ 4.49
$ 4.43
Content in our collection (end of period, in millions): (6)
Images
837
832
771
757
734
731
719
527
Footage clips
58
56
54
52
50
48
47
28
Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Pond5 and Splash News beginning May 2023. These metrics exclude the respective counts and revenues from Giphy and Backgrid.
(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.
(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.
(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.
(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.
(5) Revenue per download is the amount of revenue recognized in a given period divided by the number of paid downloads in that period excluding revenue from our Studios business, revenue that is not derived from or associated with content licenses and revenue associated with our data deal offering.
(6) Content in our collection represents approved images (photographs, vectors and illustrations) and footage (in number of clips) in our library at the end of the period. This metric excludes content that is not uploaded directly to our site but is available for license by our customers through an application program interface, content from our Studios business and AI generated content.
Equity-Based Compensation by expense category
Three Months Ended
($ in thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
Cost of revenue
$ 300
$ 224
$ 145
$ 180
$ 306
$ 184
$ 160
$ 173
Sales and marketing
3,167
2,011
2,201
2,067
2,487
604
1,426
1,503
Product development
4,171
2,285
3,022
3,509
4,221
2,448
3,085
2,957
General and administrative
7,338
6,630
6,620
7,247
7,929
5,407
7,111
4,455
Total non-cash equity-based compensation
$ 14,976
$ 11,150
$ 11,988
$ 13,003
$ 14,943
$ 8,643
$ 11,782
$ 9,088
Depreciation and Amortization by expense category
Three Months Ended
($ in thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
Cost of revenue
$ 20,087
$ 19,874
$ 18,952
$ 19,872
$ 18,134
$ 17,866
$ 17,341
$ 16,856
General and administrative
1,346
1,389
1,404
1,400
1,070
1,031
1,295
1,404
Total depreciation and amortization
$ 21,433
$ 21,263
$ 20,356
$ 21,272
$ 19,204
$ 18,897
$ 18,636
$ 18,260
View original content to download multimedia:https://www.prnewswire.com/news-releases/shutterstock-reports-second-quarter-2024-financial-results-302214874.html
SOURCE Shutterstock, Inc.
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Technology
Qued Partners with Don Hummer Trucking to Bring AI-Powered Smart Appointments to a Family Fleet Trusted for More Than 70 Years
Published
39 minutes agoon
July 21, 2026By
Family-owned Iowa truckload carrier has confirmed more than 10,000 appointments through Qued, with email scheduling handled at a 98.8% success rate
BROADLANDS, Va., July 21, 2026 /PRNewswire-PRWeb/ — Qued, a leader in developing sophisticated, automated appointment scheduling solutions for supply chain and logistics companies, today announced a strategic partnership with Don Hummer Trucking Corporation, a family-owned interstate truckload carrier trusted by some of the nation’s most recognizable brands. Don Hummer Trucking has deployed Qued’s Smart Appointments platform to automate appointment scheduling across its operations, taking manual booking work off the desks of the people who keep its trucks moving.
The numbers behind the announcement:
More than 10,000 appointments confirmed through Qued94.2% confirmation rate98.8% success rate on email-based scheduling
Qued’s platform selects the best appointment slots in real time, weighing ETAs, facility capacity, historical performance, and the specific requirements of each location. It connects directly to the transportation management system a carrier already runs, and it works on every channel a facility can require: web portals, email, and AI-powered voice calls. At Don Hummer Trucking, email scheduling has been the standout, with Qued handling email-based appointment requests at a 98.8% success rate.
“Don Hummer Trucking is the kind of company this industry is built on. The president holds a CDL and delivers loads. The family name rides on every trailer,” said Tom Curee, President of Qued. “When a three-generation fleet with that much on the line trusts Qued with its appointments, we take it seriously. Hummer’s confirmation numbers show what disciplined operators get when real automation goes to work on scheduling.”
“Every load delivered safely and on time carries the opportunity to earn our customer’s trust. Qued took a job that used to eat hours of our team’s day and quietly handles it in the background. Confirmations happen, trucks keep moving, and our people stay focused on drivers and customers,” said Jake Von Feldt, Vice President of Finance at Don Hummer Trucking.
Don Hummer Trucking joins a growing roster of asset-based carriers on Qued, from family fleets to some of the largest carriers in North America.
About Qued:
Qued is a cloud-based, AI-powered smart workflow automation platform transforming load appointment scheduling for brokers, 3PLs, and carriers. By automating the scheduling process, Qued eliminates manual work, simplifies multi-stop load appointments, and ensures seamless coordination across the supply chain, improving both operational efficiency and customer satisfaction. For more information, visit www.qued.com or contact us at contact.us@qued.com.
About Don Hummer Trucking:
Don Hummer Trucking Corporation is a family-owned and operated, for-hire interstate truckload carrier headquartered in Cedar Rapids, Iowa, with terminal operations in Homestead, Iowa. The Hummer name has been trusted in freight transportation for more than 70 years, and the company today serves many of the largest shippers in the country. For more information, visit www.donhummertrucking.com.
Media Contact
Adam Robinson, The Robinson Agency, 1 2148720780, adam@the-robinson-agency.com, The Robinson Agency
View original content to download multimedia:https://www.prweb.com/releases/qued-partners-with-don-hummer-trucking-to-bring-ai-powered-smart-appointments-to-a-family-fleet-trusted-for-more-than-70-years-302830398.html
SOURCE Qued
Technology
Bank of America Enhances EricaAssist with Generative AI to Help Employees Resolve Client Needs Faster
Published
39 minutes agoon
July 21, 2026By
New AI capabilities deliver relevant insights in seconds, helping employees provide more personalized client service in real-time
Key takeaways
More than 18,000 employees use EricaAssist as a human-assisted AI agent to help serve clients.
New Generative AI (Gen AI) capabilities deliver contextual guidance in under three seconds, helping resolve client needs faster and supporting decision making by customer service representatives.
EricaAssist reduces average call times by nearly one minute per interaction, improving efficiency and client experience.
CHARLOTTE, N.C., July 21, 2026 /PRNewswire/ — Bank of America (BofA) today announced enhancements to EricaAssist, its human assisted AI agent that supports employees during client conversations, delivering real time insights that help resolve client needs faster while keeping the employee at the center of the experience.
Used by more than 18,000 customer service representatives, EricaAssist works alongside employees during calls – summarizing and surfacing relevant guidance in real time – so employees can focus on listening to and understanding clients, explaining solutions, and building stronger relationships. The enhancements are making our human agents better and providing our customers with an improved and more efficient experience.
“EricaAssist reflects our high tech, high touch approach,” said Ashley Ross, Head of Consumer Client Experience and Business Transformation at Bank of America. “By combining human judgment with real time AI guidance, we’re helping employees navigate complex topics more easily and serve clients more effectively in the moments that matter most.”
Bank of America customer service representatives use generative AI capabilities within EricaAssist to summarize why a client is calling, pull together relevant information, and recommend next steps based on the employee’s role and the client’s relationship with the bank – all without interrupting the flow of the conversation.
“This technology helps our teammates deliver relevant insights in seconds, while operating with strong governance, transparency, and accountability,” said Tom Ellis, Chief Information Officer and Head of Consumer Technology at Bank of America.
Later this year, Bank of America plans to expand EricaAssist to support additional servicing scenarios and business lines.
Frequently asked questions
Question: Why enhance EricaAssist with GenAI capabilities?
Answer: Enhancing EricaAssist reflects the bank’s focus on continuously improving how employees access and deliver personalized guidance and resolve client needs faster.
Question: How do EricaAssist enhancements reflect Bank of America’s broader investments in technology?
Answer: Bank of America spends $14 billion annually on technology, of which more than $4 billion is allocated to new initiatives, including AI. These ongoing investments, combined with our high-tech, high-touch approach, continue to enhance our client experiences across all channels and to drive operational efficiencies across the company.
Question: Why blend AI with employee decision making?
Answer: Our responsible AI strategy ensures human oversight, transparency, and accountability for all outcomes. By leveraging AI at scale across our global operations, we are optimizing performance and improving client experiences. EricaAssist works alongside employees, supporting their decision-making and service. Employees ensure clients receive thoughtful guidance, with AI operating within established governance and oversight.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Reporters may contact
Catherine Page, Bank of America
Phone: 1.704.519.7314
catherine.page@bofa.com
Don Vecchiarello, Bank of America
Phone: 1.980.387.4899
don.vecchiarello@bofa.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/bank-of-america-enhances-ericaassist-with-generative-ai-to-help-employees-resolve-client-needs-faster-302831047.html
SOURCE Bank of America Corporation
Technology
Sonilo and fal Launch Sound Effects 1.0 for Realistic Sound Effects from Video and Text
Published
39 minutes agoon
July 21, 2026By
Exclusive API co-launch brings Video-to-Sound Effects and Text-to-Sound Effects generation to developers through fal
SAN FRANCISCO, July 21, 2026 /PRNewswire/ — Sonilo, a generative audio company building video-native sound and music models, and fal, the generative media platform for developers and enterprises, today announced the launch of Sonilo Sound Effects 1.0, a new model that generates highly realistic sound effects from video or text.
With video input, Sound Effects 1.0 analyzes what is happening on screen and generates one finished audio track synced to the motion, timing and scene. With text input, developers and creators can describe a specific sound effect and generate it directly.
fal will serve as the model’s exclusive API launch partner during its initial launch period, providing developers with day zero access through fal’s production-ready infrastructure.
Sound Effects 1.0 is designed to address one of the most persistent gaps in AI video production: footage can look complete while still requiring significant manual work before it sounds complete.
When given a video, the model analyzes on-screen motion, scene context, environments, and timing before generating audio that follows what is happening on screen.
Instead of returning a collection of disconnected audio assets that still need to be placed and aligned one by one, Sound Effects 1.0 can produce a synchronized audio track that is ready to review, refine and add to the edit.
“Sound effects only work when they feel like they belong in the scene,” said Trista Hong, Co-Founder of Sonilo. “Sound Effects 1.0 was built around that complete problem: understanding the footage, generating realistic audio, and synchronizing it automatically. We’re excited to launch it together with fal and bring video-native sound into real production workflows.”
A Sound Model Built Around the Video
Traditional sound-design workflows typically begin outside the footage. Editors search sound libraries, preview multiple assets, place them on a timeline, align each effect to the appropriate frame, adjust levels and repeat the process across every action in the scene.
Sound Effects 1.0 begins with the video itself.
The model uses the footage as both a source of semantic information and the timing foundation for the generated audio. It determines what is happening in the scene, what sounds are appropriate for those events and when those sounds should occur.
This video-native approach is particularly useful for scenes containing multiple actions, transitions, impacts and environmental details. Rather than requiring creators to build the sound layer one asset at a time, the model can generate audio around the structure of the footage as a whole.
Sound Effects 1.0 supports video inputs of up to three minutes, making it suitable for short-form content, advertisements, gaming footage, product videos and longer narrative scenes.
Automatic Generation When Speed Matters, Prompt Control When Direction Matters
Sound Effects 1.0 supports two complementary generation workflows.
Video-to-Sound-Effects analyzes uploaded footage and generates sound effects matched to its visible actions, environments and timing.
Text-to-Sound-Effects generates specific standalone sounds from written descriptions, giving creators and developers direct control when they need a particular audio asset.
Prompts are optional in the video workflow. Users can allow the model to interpret footage automatically or provide a prompt requesting a particular sound, emphasis or creative direction.
The prompt helps shape what the model generates, while the video continues to determine when the sound should occur.
This gives users two practical modes of working: automatic sound generation when speed and coverage are the priority, and prompt-guided generation when a scene requires more precise creative control.
Bringing Video-Native Sound Generation to Developers through fal
The co-launch gives developers access to Sound Effects 1.0 through fal’s generative media infrastructure, allowing video-conditioned sound generation to be incorporated directly into products and production workflows.
Developers can use the model to build synchronized sound generation into:
AI video editors and generation platforms;Short-form and social video tools;Advertising and branded-content workflows;Game prototypes, gameplay videos and cinematics;Film and narrative-production pipelines; andMultimodal creator products that combine video, music and sound.
“We’re entering a new era where AI applications don’t just generate assets, they produce complete experiences,” said Tina Sang, Head of Marketing at fal. “Sound is fundamental to making those experiences believable. Sonilo Sound Effects 1.0 helps developers generate context-aware, synchronized audio that matches what’s happening on screen, and we’re very excited to bring it to fal, day zero.”
The integration is designed to let teams move from initial testing to product deployment without building and operating a separate model-serving stack. Developers can access the model through fal’s API and developer tooling while keeping sound generation inside the same environment as their broader generative media workflows.
Expanding the Sonilo and fal Partnership
The launch expands an existing relationship between Sonilo and fal.
Sonilo Music v1.1 is already available through fal, giving developers access to both Video-to-Music and Text-to-Music generation. Sound Effects 1.0 extends that integration from generated music into highly realistic, video-conditioned sound effects.
Using the same source footage, creators and developers can generate sound effects around visible actions and environments, then generate music informed by the video’s pacing, scene changes, mood and timing.
This creates a broader video-first audio workflow in which a single video can serve as the timing foundation for both sound design and music. Sound effects can follow what happens on screen, while music can follow the emotional and structural movement of the edit.
By connecting both layers around the source footage, Sonilo aims to reduce manual synchronization, repetitive asset placement and unnecessary switching between separate audio tools.
Built for Real Production Workflows
For AI video creators, Sound Effects 1.0 can add action cues, environmental details, movement and transitions to generated footage that otherwise arrives without usable audio.
For high-volume creators and gaming channels, the model can reduce repetitive timeline work across content requiring dense sound design, including impacts, interface sounds, room tone and movement.
For filmmakers and narrative teams, it can generate scene-level elements such as footsteps, doors, physical interactions and ambience directly from an edit.
For brands and advertising teams, it can produce precisely timed audio around product interactions, camera transitions, packaging moments and visual reveals.
For platforms and API products, it provides a way to add video-conditioned sound generation without requiring users to leave the product and assemble audio in a separate editing workflow.
About Sonilo
Sonilo builds video-native generative audio models for creators, developers and media platforms. Its technology generates music and sound effects directly from footage or text, helping teams bring audio into the video-creation workflow and reduce manual timeline work. Sonilo is headquartered in San Francisco and backed by B Capital.
Learn more at https://sonilo.com/.
About fal
fal is a generative media platform that provides developers with access to the world’s best generative image, video, and audio models through a unified API. Trusted by over 2.5 million developers and leading companies, fal offers the fastest inference engine for diffusion models, on-demand serverless GPUs, and dedicated compute clusters for frontier research. Learn more at fal.ai.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sonilo-and-fal-launch-sound-effects-1-0-for-realistic-sound-effects-from-video-and-text-302830490.html
SOURCE Sonilo
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