Technology

Shutterstock Reports Second Quarter 2024 Financial Results

Published

2 years ago

August 6, 2024

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

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

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

(7)

(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

—

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

1,005

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

(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

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.

Technology

Atomic Object Selected as Finalist for 2026 NC TECH Awards

Published

58 minutes ago

November 9, 2026

RALEIGH, N.C., Nov. 9, 2026 /PRNewswire/ — Atomic Object has been selected as a finalist for the NC Tech Awards Software Solutions award. The NC TECH Awards is North Carolina’s only statewide technology awards program that recognizes innovation, growth and leadership in the tech sector and is presented by the NC TECH (North Carolina Technology Association). Winners will be announced November 16 at the Sheraton in Durham.

Since entering the Raleigh market in 2022, Atomic Object has been recognized as one of the area’s top software development partners. The finalist nod reflects the trust the Raleigh team has built with Triangle startups and enterprise clients. That momentum led the office to move from a coworking space into a 6,000-square-foot suite in downtown Raleigh in 2025.

The majority female Raleigh office is led by Managing Partners, Taylor Vanden Hoek and Ryan Abel. Vanden Hoek and Abel have partnered with the Downtown Raleigh Alliance, Digital Health Institute for Transformation, and Duke University’s Pratt School of Engineering.

“For over 20 years, NC TECH has celebrated companies, organizations and individuals for outstanding achievement at the NC TECH Awards. As a finalist this year, Atomic Object has distinguished itself as one of the state’s innovative and emergent leaders,” stated Michelle Calton, NC TECH’s Interim CEO.

“When we opened our Raleigh office in 2022, we knew earning a place in this community would take time. Being named an NC TECH Awards finalist tells us Atomic Object has put down real roots in the Triangle, and we’re proud of the team and the clients who helped us get here,” said Taylor Vanden Hoek, Managing Partner of Atomic Object Raleigh.

About NC TECH

NC TECH is a not-for-profit, membership-driven trade association and the primary voice of the technology industry in North Carolina. NC TECH’s membership includes more than 600 member companies, organizations and institutions employing more than 250,000 workers in North Carolina. Visit nctech.org.

About Atomic Object

Atomic Object is an employee-owned custom software design and development consultancy founded in 2001. Its teams of designers, developers and delivery leads build web, mobile, desktop, IoT, cloud and AI-powered software for clients in healthcare, financial services, education, and insurance. The Raleigh office is located in the heart of downtown on Fayetteville Street. Visit atomicobject.com.

View original content:https://www.prnewswire.com/news-releases/atomic-object-selected-as-finalist-for-2026-nc-tech-awards-302932797.html

SOURCE Atomic Object

Technology

Ceva, Inc. Announces Third Quarter 2026 Financial Results

Published

58 minutes ago

November 9, 2026

18% sequential royalty revenue growth and record AI licensing revenues, with multi-year smartphone modem ramp ahead

ROCKVILLE, Md., Nov. 9, 2026 /PRNewswire/ — Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP for the Smart Edge, today announced its financial results for the third quarter ended September 30, 2026.

Third Quarter Highlights: *

Total revenues of $29.1 million, up 2% YoY.Licensing and related revenues of $16.3 million, up 2% YoY.Record AI licensing revenues, accounting for more than 35% of total licensing and related revenues.Royalty revenues of $12.7 million, up 3% YoY and 18% sequentially.623 million Ceva-powered devices shipped by customers, matching all-time quarterly record, including record cellular IoT and Wi-Fi 6 shipments.

*Unless otherwise stated, all comparisons are to the third quarter 2025.

Amir Panush, Chief Executive Officer of Ceva, commented, “We continued to grow our business in the third quarter, with 18% sequential royalty revenue growth and Ceva-powered device shipments matching our all-time quarterly record. In licensing, we achieved our highest-ever AI licensing revenues and expanded our relationships with three of our highest-volume connectivity customers, building a broader base of potential future royalty-generating products.

“The continued ramp of internally developed modems at a major U.S. customer is creating a multi-year smartphone royalty growth opportunity through 2027 and beyond. We are also extending our AI business into infrastructure applications and moving closer to initial NPU royalties. Together, we believe these developments reinforce the long-term growth potential of our Connect, Sense and Infer portfolio.”

Business and Market Highlights
During the quarter, Ceva signed 10 IP licensing agreements, including three with first-time customers. Six were for AI technologies, including one with a new customer targeting AI infrastructure, and Edge AI agreements targeting consumer, automotive and industrial markets.

In wireless connectivity, three of Ceva’s highest-volume customers extended their agreements for multiple years and added more Ceva IP, including one adding Wi-Fi 6 and Wi-Fi 7 to its existing Bluetooth and DSP deployments. In sensing, Ceva expanded its presence in smart TVs with a customer targeting advanced motion-based interaction.

Other Third Quarter Financial Data: *

GAAP gross margin was 85%, as compared to GAAP gross margin of 88%GAAP operating loss was $3.5 million, as compared to a GAAP operating loss of $2.1 millionGAAP net loss was $2.3 million, as compared to a GAAP net loss of $2.5 millionGAAP diluted loss per share was $0.08, as compared to GAAP diluted loss per share of $0.10Non-GAAP gross margin was 86%, as compared to non-GAAP gross margin of 89%Non-GAAP operating income was $2.5 million, as compared to non-GAAP operating income of $3.1 millionNon-GAAP net income and non-GAAP diluted earnings per share were $3.8 million and $0.13, respectively, as compared to non-GAAP net income and non-GAAP diluted earnings per share of $2.7 million and $0.11, respectively

*Unless otherwise stated, all comparisons are to the third quarter 2025.

Yaniv Arieli, Chief Financial Officer of Ceva, added, “Royalty revenues grew 18% sequentially, led by the ramp of internally developed modems at a major U.S. customer and continued strength in broad-based IoT and connectivity, partially offset by memory-related softness in compute-intensive consumer devices. A significant multi-year connectivity agreement we expected in the third quarter was signed early in the fourth quarter. With a robust licensing pipeline and a step-up in smartphone royalties, we expect a strong fourth quarter on both the top and bottom lines.”

Ceva Conference Call

On November 9, 2026, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

The conference call will be available via the following dial-in numbers:

U.S. Participants: Dial +1 844-435-0316 (Access Code: Ceva)International Participants: Dial +1 412-317-6365 (Access Code: Ceva)

The conference call will also be available live via webcast at the following link: https://app.webinar.net/oKLP6DwbXyv. Please go to the website at least fifteen minutes prior to the call to register.

For those who cannot access the live broadcast, a replay will be available by dialing +1 855-669-9658 or +1 412-317-0088 (access code: 7028120) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 16, 2026. The replay will also be available at Ceva’s website at www.ceva-ip.com.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they materialize or prove incorrect, could cause the results of Ceva to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements about Ceva’s positioning for future growth and to serve as a foundational technology provider for intelligent, connected devices, licensing agreement wins, future industry demand, our market position for the future and future growth in the demand for our products, our forecast of financial measures for the following quarter and 2026, our long-term targets and underlying assumptions, our future investments, expectations about future markets, the success of our strategies and agreements, visibility into future revenue streams, and Ceva’s focus on expense management and profitability improvement. The risks, uncertainties and assumptions that could cause differing Ceva results include: the effect of intense industry competition; the ability of Ceva’s technologies and products incorporating Ceva’s technologies to achieve market acceptance; Ceva’s ability to meet changing needs of end-users and evolving market demands; the lengthy sales cycle for IP and related solutions; Ceva’s ability to diversify royalty streams and license revenues; geopolitical risks and instability, including the impact of tariffs and other trade measures and potential disruptions related to ongoing conflicts in the Middle East; and general market conditions and other risks relating to Ceva’s business and industry, including, but not limited to, those that are described from time to time in our SEC filings. Ceva assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

About Ceva, Inc.
Ceva powers the Smart Edge, bridging the digital and physical worlds to bring AI-driven products to life. Our Ceva AI fabric portfolio of silicon and software IP enables devices to Connect, Sense, and Infer – the essential capabilities for the intelligent edge. From 5G, cellular IoT, Bluetooth, Wi-Fi, and UWB connectivity to scalable Edge AI NPUs, AI DSPs, sensor fusion processors and embedded software, Ceva provides the foundational IP for devices that connect, understand their environment, and act in real time.

With more than 23 billion devices shipped and trusted by 400+ customers worldwide, Ceva is the backbone of today’s most advanced smart edge products—from AI-infused wearables and IoT devices to autonomous vehicles and 5G infrastructure. Our differentiated solutions deliver seamless integration into existing design flows, total flexibility to combine solutions based on design needs and ultra‑low‑power performance in a minimal silicon footprint, helping customers accelerate development, reduce risk, and bring innovative products to market faster. As technology evolves toward Physical AI, Ceva’s IP portfolio lays the foundation for systems that are always connected, contextually aware, and capable of intelligent, real-time decision-making.

Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.

For more information, contact:

Yaniv Arieli

Ceva, Inc.

CFO

+972.9.961.3770

yaniv.arieli@ceva-ip.com

Richard Kingston

Ceva, Inc.

VP Market Intelligence, Investor & Public Relations

+1.650.220.1948

richard.kingston@ceva-ip.com

CEVA, INC. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS – U.S. GAAP

U.S. dollars in thousands, except per share data

Three months ended

Nine months ended

September 30,

2026

2025

2026

2025

Unaudited

Revenues:

Licensing and related revenues

$ 16,338

$ 16,028

$ 52,379

$ 46,092

Royalties

12,725

12,356

32,741

32,215

Total revenues

29,063

28,384

85,120

78,307

Cost of revenues

4,252

3,392

11,627

10,428

Gross profit

24,811

24,992

73,493

67,879

Operating expenses:

Research and development, net

18,128

19,532

57,297

55,899

Sales and marketing

3,935

3,012

10,980

9,783

General and administrative

6,154

4,383

15,557

12,697

Amortization of intangible assets

110

149

336

448

Total operating expenses

28,327

27,076

84,170

78,827

Operating loss

(3,516)

(2,084)

(10,677)

(10,948)

Financial income, net

2,301

1,245

5,156

5,466

Remeasurement of marketable equity securities

(16)

(261)

Loss before taxes on income

(1,231)

(838)

(5,449)

(5,743)

Income tax expense

1,070

1,671

4,221

3,797

Net loss

$ (2,301)

$ (2,509)

$ (9,670)

$ (9,540)

Basic and diluted net loss per share

$ (0.08)

$ (0.10)

$ (0.35)

$ (0.40)

Weighted-average shares used to compute net loss
per share (in thousands):

Basic and diluted

28,323

23,942

28,001

23,869

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. dollars in thousands, except per share data

Three months ended

Nine months ended

September 30,

2026

2025

2026

2025

Unaudited

GAAP net loss

(2,301)

(2,509)

(9,670)

(9,540)

Equity-based compensation expense included in cost of
revenues

173

168

533

493

Equity-based compensation expense included in research
and development expenses

2,130

2,639

7,651

7,778

Equity-based compensation expense included in sales
and marketing expenses

880

571

2,310

1,735

Equity-based compensation expense included in general
and administrative expenses

1,809

1,495

5,041

4,092

Amortization of intangible assets related to acquisition of
businesses

168

208

302

625

Acquisition and deal-related costs

893

145

1,014

433

Loss (income) associated with the remeasurement of
marketable equity securities

(1)

(72)

261

Non-GAAP net income

3,768

2,716

7,109

5,877

GAAP weighted-average number of Common Stock used
in computation of diluted net loss per share (in
thousands)

28,323

23,942

28,001

23,869

Weighted-average number of shares related to
outstanding stock-based awards (in thousands)

1,579

1,763

1,733

1,714

Non-GAAP weighted-average number of
Common Stock used in computation of diluted earnings
per share (in thousands)

29,902

25,705

29,734

25,583

GAAP diluted loss per share

(0.08)

(0.10)

(0.35)

(0.40)

Equity-based compensation expense

$ 0.18

$ 0.19

$ 0.54

$ 0.57

Amortization of intangible assets related to acquisition of
businesses

$ 0.00

$ 0.01

$ 0.03

Acquisition and deal-related costs

$ 0.03

$ 0.01

$ 0.04

$ 0.02

Loss (income) associated with the remeasurement of
marketable equity securities

$ 0.00

$ 0.01

Non-GAAP diluted earnings per share

$ 0.13

$ 0.11

$ 0.24

$ 0.23

Three months ended

Nine months ended

September 30,

2026

2025

2026

2025

Unaudited

GAAP operating loss

$ (3,516)

$ (2,084)

$ (10,677)

$ (10,948)

Equity-based compensation expense included in cost of
revenues

173

168

533

493

Equity-based compensation expense included in research
and development expenses

2,130

2,639

7,651

7,778

Equity-based compensation expense included in sales
and marketing expenses

880

571

2,310

1,735

Equity-based compensation expense included in general
and administrative expenses

1,809

1,495

5,041

4,092

Amortization of intangible assets related to acquisition of
businesses

168

208

302

625

Acquisition and deal-related costs

893

145

1,014

433

Total non-GAAP operating income

$ 2,537

$ 3,142

$ 6,174

$ 4,208

Three months ended

Nine months ended

September 30,

2026

2025

2026

2025

Unaudited

GAAP gross profit

$ 24,811

$ 24,992

$ 73,493

$ 67,879

GAAP gross margin

85 %

88 %

86 %

87 %

Equity-based compensation expense included in cost of
revenues

173

168

533

493

Amortization of intangible assets related to acquisition of
businesses

(34)

177

Total non-GAAP gross profit

$ 25,042

$ 25,219

$ 73,992

$ 68,549

Non-GAAP gross margin

86 %

89 %

87 %

88 %

Three months ended

Nine months ended

September 30,

2026

2025

2026

2025

Unaudited

GAAP operating expenses

$ 28,327

$27,076

$84,170

$ 78,827

Equity-based compensation expense included in
research and development expenses

(2,130)

(2,639)

(7,651)

(7,778)

Equity-based compensation expense included in sales
and marketing expenses

(880)

(571)

(2,310)

(1,735)

Equity-based compensation expense included in
general and administrative expenses

(1,809)

(1,495)

(5,041)

(4,092)

Amortization of intangible assets related to acquisition
of businesses

(110)

(149)

(336)

(448)

Acquisition and deal-related costs

(893)

(145)

(1,014)

(433)

Total non-GAAP operating expenses

$ 22,505

$ 22,077

$ 67,818

$ 64,341

CEVA, INC. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30,

December 31,

2026

2025 (*)

Unaudited

ASSETS

Current assets:

Cash and cash equivalents

$ 29,608

$ 40,586

Marketable securities and short-term bank deposits

191,072

181,397

Trade receivables, net

17,806

19,495

Unbilled receivables

28,683

29,860

Prepaid expenses and other current assets

14,235

13,498

Total current assets

281,404

284,836

Long-term assets:

Severance pay fund

6,901

7,530

Deferred tax assets, net

303

257

Property and equipment, net

9,161

7,054

Operating lease right-of-use assets

16,727

17,486

Investment in marketable equity securities

127

Goodwill

58,308

Intangible assets, net

532

1,044

Other long-term assets

17,148

11,686

Total assets

$ 390,611

$ 388,256

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Trade payables

$ 1,243

$ 2,418

Deferred revenues

3,444

3,496

Accrued expenses and other payables

18,378

21,026

Operating lease liabilities

2,797

1,743

Total current liabilities

25,862

28,683

Long-term liabilities:

Accrued severance pay

7,113

7,690

Operating lease liabilities

14,040

14,388

Other accrued liabilities

1,224

1,037

Total liabilities

48,239

51,798

Stockholders’ equity:

Common stock

Additional paid-in capital

354,941

337,966

Treasury stock

(1,591)

Accumulated other comprehensive income (loss)

(2,904)

Accumulated deficit

(9,694)

(24)

Total stockholders’ equity

342,372

336,458

Total liabilities and stockholders’ equity

$ 390,611

$ 388,256

(*) Derived from audited financial statements.

The Company believes that the presentation of non-GAAP measures in the press release is useful to investors in analyzing the results for the quarters ended September 30, 2026, and 2025 because the exclusion of the applicable expenses may provide a meaningful analysis of the Company’s core operating results and comparison of quarterly results. Further, the Company believes it is useful for investors to understand how the expenses associated with the application of FASB ASC No. 718 are reflected in its statements of loss. The reconciliation of financial measures should be reviewed in addition to and in conjunction with results presented in accordance with GAAP and is intended to provide additional insight into the Company’s operations that, when viewed with its GAAP results and the accompanying reconciliation, offers a more complete understanding of factors and trends affecting the Company’s business. The reconciliation of financial measures should not be viewed as a substitute for the Company’s reported GAAP results.

A reconciliation of non-GAAP guidance to the corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to the Company’s results computed in accordance with GAAP.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ceva-inc-announces-third-quarter-2026-financial-results-302932918.html

SOURCE Ceva, Inc.

Technology

Quest Global acquires Tests Assured to strengthen advanced wearables engineering and testing capabilities

Published

58 minutes ago

November 9, 2026

The acquisition aims to expand Quest Global’s engineering capabilities for wearable products in the high-tech consumer space

BANGALORE, India and WINDSOR, Conn., Nov. 9, 2026 /CNW/ — Quest Global Engineering Services Limited today announced the acquisition of Tests Assured, a US-based company specializing in quality assurance and technology-enabled testing for immersive products, smart devices, wearables, and related hardware and software platforms. With this acquisition, Quest Global aims to strengthen its ability to deliver engineering solutions for wearable products in the high-tech consumer space. Tests Assured brings established expertise in quality assurance and technology-enabled testing and a strong presence among global wearable-device companies, further reinforcing Quest Global’s position as a trusted engineering partner in the wearables industry.

“Wearable technology is becoming more sophisticated by the day, bringing together complex hardware, software, AI and human interaction. Tests Assured brings deep expertise in validating these experiences. It complements our engineering capabilities and strengthens our ability to support customers across the product lifecycle. This acquisition marks an important step in our goal to expand our capabilities and deepens the expertise we bring to customers across the wearable’s ecosystem,” said Ajit Prabhu, Co-Founder and CEO, Quest Global.

“Joining Quest Global represents an exciting new chapter for Tests Assured. We have built our success on technical excellence, strong client relationships, and the dedication of our talented team. By bringing together our expertise in quality assurance and emerging technologies with Quest Global’s global engineering capabilities, we aim to expand our reach, accelerate innovation, and create new opportunities for our employees and customers. I am incredibly proud of what we have accomplished and excited about what we can achieve together,” said Imad Abdelgawad, Founder and CEO, Tests Assured.

Founded in 2018, Tests Assured is headquartered in San Jose, California. Its domain expertise spans AR/VR/XR and smart-glasses testing, biometric validation, human-interaction modeling, computer-vision data collection, consumer software, and AI-enabled devices. Together, Quest Global and Tests Assured will aim to build on their combined strengths to expand solutions for existing customers and pursue new opportunities in the hi-tech and semiconductor industry.

About Quest Global

Quest Global is a global engineering services company that supports customers across a range of industries, including Aerospace & Defense, Automotive, Energy, Hi-Tech, MedTech & Healthcare, Rail and Semiconductor. The company operates in more than 22 countries with 96 delivery centers and more than 23,000 employees worldwide.

For more information, visit https://www.questglobal.com/.

About Tests Assured

Tests Assured is a specialized provider of quality assurance talent and technology-enabled testing services for immersive products, smart devices, wearables, and related hardware and software platforms. Founded in 2018 by Imadeddin “Imad” Abdelgawad, the company is headquartered in San Jose, California and operates from a 23,500 sq. ft. facility supporting QA operations, XR and wearable testing, TA Studios, training, and management. Its delivery footprint includes on-site teams in Burlingame, California, Redmond, Washington, and New York, together with remote delivery from San Jose.

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SOURCE Quest Global