Technology
Shutterstock Reports First Quarter 2025 Financial Results
Published
1 year agoon
By
NEW YORK, May 2, 2025 /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 first quarter ended March 31, 2025.
Commenting on the Company’s performance, Paul Hennessy, the Company’s Chief Executive Officer, said, “I am pleased to report that Shutterstock started the year strong, with a first quarter that achieved year over year Content revenue growth of 17%, as well as improvements across many of our key financial metrics. As we continue to generate strong free cash flow at attractive margins, we remain committed to growth in both the Content and Data, Distribution and Services businesses in 2025.”
First Quarter 2025 highlights as compared to First Quarter 2024:
Financial Highlights
Revenues were $242.6 million compared to $214.3 million.Net income was $18.7 million compared to $16.1 million.Net income per diluted common share was $0.53 compared to $0.45.Adjusted net income was $36.3 million compared to $33.1 million.Adjusted net income per diluted common share was $1.03 compared to $0.92.Adjusted EBITDA was $63.4 million compared to $56.0 million.
FIRST QUARTER RESULTS
Revenue
First quarter revenue of $242.6 million increased $28.3 million or 13% as compared to the first quarter of 2024.
Revenue from our Content product offering increased $29.1 million, or 17%, as compared to the first quarter of 2024, to $202.9 million. Content revenue represented 84% of our total revenue in the first quarter of 2025.
Revenue generated from our Data, Distribution, and Services product offering decreased $0.8 million, or 2%, as compared to the first quarter of 2024, to $39.7 million, and represented 16% of first quarter revenue in 2025. Revenue growth was unfavorably impacted by 1% due to fluctuations in foreign currencies for the three months ended March 31, 2025, compared to the same period in 2024.
Net income and net income per diluted common share
Net income in the first quarter of 2025 of $18.7 million increased $2.6 million as compared to net income of $16.1 million for the first quarter in 2024. Net income per diluted common share was $0.53, as compared to $0.45 for the same period in 2024. These increases were attributable to profitability associated with the Envato business acquired in July of 2024, offset by an increase in interest expense of $3.7 million due to increased debt which funded the purchase of Envato. The Company also incurred $11.9 million of professional fee expenses in the quarter associated with the proposed merger with Getty Images Holdings, Inc. (“Getty Images”).
Adjusted net income and adjusted net income per diluted common share
Adjusted net income in the first quarter of 2025 of $36.3 million increased $3.2 million as compared to adjusted net income of $33.1 million for the first quarter in 2024. First quarter 2025 adjusted net income was favorably impacted by profitability associated with the Envato acquisition offset by an increase in interest expense.
Adjusted net income per diluted common share was $1.03 as compared to $0.92 for the first quarter of 2024, an increase of $0.11 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $63.4 million for the first quarter of 2025 increased by $7.4 million, or 13%, as compared to the first quarter of 2024, primarily due to the contribution from Envato. Net income margin of 7.7% for the first quarter of 2025 increased by 0.2%, as compared to 7.5% in the first quarter of 2024. The adjusted EBITDA margin of 26.1% for the first quarter of 2025 was consistent with the first quarter of 2024.
FIRST QUARTER LIQUIDITY
Our cash and cash equivalents increased by $0.9 million to $112.2 million at March 31, 2025, as compared with $111.3 million as of December 31, 2024. This increase was driven by $25.2 million of net cash provided by our operating activities, partially offset by $15.8 million of net cash used in financing activities and $11.2 million of net cash used in investing activities.
Net cash provided by our operating activities was driven by our operating income and changes in the timing of cash collections from our customers and payments pertaining to operating expenses, offset by payments of year-end bonuses and commissions. In addition, cash flows for the three months ended March 31, 2025 were unfavorably impacted by $9.4 million of expenses related to the Getty Images proposed merger.
Cash used in investing activities for the three months ended March 31, 2025 consisted of $11.7 million related to capital expenditures and content acquisition, partially offset by $0.5 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller.
Cash used in financing activities for the three months ended March 31, 2025 consisted of $11.5 million related to the payment of the quarterly cash dividend, $3.5 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment of our credit facility.
Adjusted free cash flow was $23.4 million for the first quarter of 2025, an increase of $12.1 million from the first quarter of 2024.
QUARTERLY CASH DIVIDEND
During the three months ended March 31, 2025, the Company declared and paid a cash dividend of $0.33 per common share or $11.5 million.
On April 21, 2025, the Board of Directors declared a dividend of $0.33 per share of outstanding common stock, payable on June 19, 2025 to stockholders of record at the close of business on June 5, 2025.
KEY OPERATING METRICS
Three Months Ended March 31,
2025
2024
Subscribers (end of period)(1)
1,079,000
499,000
Subscriber revenue (in millions)(2)
$ 109.9
$ 83.9
Average revenue per customer (last twelve months)(3)
$ 244
$ 418
Paid downloads (in millions)(4)
120.9
35.0
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 Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato.
(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.
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, 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, income taxes and Merger related costs; 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, Giphy Retention Compensation Expense – non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), Merger related costs 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, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, and cash paid for costs related to the Getty Images merger.
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 March 31, 2025, the Company also incurred $4.8 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.
Previously Announced Merger Agreement with Getty Images Holdings, Inc. (“Getty Images”)
On January 7, 2025, Shutterstock announced that it entered into a merger agreement with Getty Images to combine in a merger of equals transaction, creating a premier visual content company. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, the approval of Shutterstock stockholders and the extension or refinancing of Getty Images’ existing debt obligations.
As previously communicated, in light of pending transaction with Getty Images, Shutterstock will not be hosting a conference call or providing financial guidance in conjunction with its first quarter 2025 results.
For additional information associated with the transaction, please see the Company’s filings from time to time with the Securities and Exchange Commission.
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.
ADDITIONAL INFORMATION ABOUT THE ACQUISITION AND WHERE TO FIND IT
In connection with the proposed transaction, on March 31, 2025, Getty Images filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4, as amended on April 28, 2025 , that includes an information statement of Getty Images and a proxy statement of Shutterstock and that also constitutes a prospectus with respect to shares of Getty Images’ common stock to be issued in the proposed transaction (the “information statement and proxy statement/prospectus”). The registration statement on Form S-4 was declared effective by the SEC on April 30, 2025. Shutterstock filed a definitive proxy statement and Getty Images filed a definitive information statement and prospectus with the SEC on April 30, 2025 and commenced mailing to their respective stockholders on April 30, 2025. Each of Getty Images and Shutterstock may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This filing is not a substitute for the information statement and proxy statement/prospectus or any other document that Getty Images or Shutterstock has filed or may file with or furnish to the SEC. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE INFORMATION STATEMENT AND PROXY STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH, OR FURNISHED TO, THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders are able to obtain free copies of the information statement and proxy statement/prospectus and other documents containing important information about Getty Images, Shutterstock and the proposed transaction filed with or furnished to the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by Getty Images are available free of charge on Getty Images’ website at investors.gettyimages.com or by contacting Getty Images’ Investor Relations department by email at investorrelations@gettyimages.com. Copies of the documents filed with or furnished to the SEC by Shutterstock are available free of charge on Shutterstock’s website at investor.shutterstock.com or by contacting Shutterstock’s Investor Relations department by email at IR@Shutterstock.com.
PARTICIPANTS IN THE SOLICITATION
This communication is not a solicitation of proxies in connection with the proposed transaction. Getty Images, Shutterstock and certain of their respective directors and executive officers and other members of their respective management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Getty Images, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Getty Images’ Form 10-K for the year ended December 31, 2024 filed with the SEC on March 17, 2025 and in the information statement and proxy statement/prospectus filed with the SEC on April 30, 2025. Information about the directors and executive officers of Shutterstock, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Shutterstock’s Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025, as amended by Amendment No. 1 to such Form 10-K filed with the SEC on March 28, 2025. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the information statement and proxy statement/prospectus filed with the SEC on April 30, 2025 and other relevant materials to be filed with or furnished to the SEC regarding the proposed transaction. You may obtain free copies of these documents using the sources indicated above.
NO OFFER OR SOLICITATION
This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
FORWARD-LOOKING STATEMENTS
The statements in this press release, and any related oral statements, include forward-looking statements concerning Getty Images, Shutterstock, the proposed transaction described herein and other matters. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “could,” “might,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, obtaining applicable regulatory and stockholder approvals for the proposed transaction on a timely basis or otherwise, satisfying other closing conditions to the proposed transaction, on a timely basis or otherwise, the expected tax treatment of the proposed transaction, the expected timing of the proposed transaction, and the integration of the businesses and the expected benefits, cost savings, accretion, synergies and growth to result therefrom. Important factors that could cause actual results to differ materially from the forward-looking statements include, among other things: failure to obtain applicable regulatory or stockholder approvals in a timely manner or otherwise; interloper risk; failure to satisfy other closing conditions to the transaction or to complete the transaction on anticipated terms and timing (or at all); negative effects of the announcement of the transaction on the ability of Shutterstock or Getty Images to retain and hire key personnel and maintain relationships with customers, suppliers and others who Shutterstock or Getty Images does business, or on Shutterstock or Getty Images’ operating results and business generally; risks that the businesses will not be integrated successfully or that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth, as expected (or at all), or that such benefits may take longer to realize or may be more costly to achieve than expected; the risk that disruptions from the transaction will harm business plans and operations; risks relating to unanticipated costs of integration; significant transaction and/or integration costs, or difficulties in connection with the transaction and/or unknown or inestimable liabilities; restrictions during the pendency of the transaction that may impact the ability to pursue certain business opportunities or strategic transactions; potential litigation associated with the transaction; the potential impact of the announcement or consummation of the transaction on Getty Images’, Shutterstock’s or the combined company’s relationships with suppliers, customers, employers and regulators; demand for the combined company’s products; potential changes in the Getty Images stock price that could negatively impact the value of the consideration offered to the Shutterstock stockholders; the occurrence of any event that could give rise to the termination of the proposed transaction; and Getty Images’ ability to complete any refinancing of its debt or new debt financing on a timely basis, on favorable terms or at all. A more fulsome discussion of the risks related to the proposed transaction will be included in the information statement and proxy statement/prospectus. For a discussion of factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the section captioned “Risk Factors” in each of Getty Images’ and Shutterstock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is, and the list of factors presented in the joint proxy and information statement/prospectus will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Neither Getty Images nor Shutterstock assumes, and each hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.
Shutterstock, Inc.
Consolidated Statements of Operations
(In thousands, except for per share data)
(unaudited)
Three Months Ended March 31,
2025
2024
Revenue
$ 242,620
$ 214,315
Operating expenses:
Cost of revenue
100,888
88,204
Sales and marketing
53,359
56,236
Product development
19,865
21,051
General and administrative
58,307
32,078
Total operating expenses
232,419
197,569
Income from operations
10,201
16,746
Interest expense
(4,298)
(562)
Other income, net
14,515
4,206
Income before income taxes
20,418
20,390
Provision for income taxes
1,730
4,269
Net income
$ 18,688
$ 16,121
Earnings per share:
Basic
$ 0.54
$ 0.45
Diluted
$ 0.53
$ 0.45
Weighted average common shares outstanding:
Basic
34,890
35,591
Diluted
35,322
36,066
Shutterstock, Inc.
Consolidated Balance Sheets
(In thousands, except par value amount)
(unaudited)
March 31, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$ 112,231
$ 111,251
Accounts receivable, net of allowance of $3,577 and $3,101
111,739
95,225
Prepaid expenses and other current assets
40,043
49,482
Total current assets
264,013
255,958
Property and equipment, net
65,624
66,400
Right-of-use assets
12,913
13,956
Intangible assets, net
238,278
248,477
Goodwill
572,420
569,668
Deferred tax assets, net
78,053
70,982
Other assets
92,917
83,715
Total assets
$ 1,324,218
$ 1,309,156
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 16,119
$ 9,221
Accrued expenses
107,878
126,643
Contributor royalties payable
85,022
81,076
Deferred revenue
226,242
225,489
Debt
158,107
158,106
Other current liabilities
21,854
24,751
Total current liabilities
615,222
625,286
Deferred tax liability, net
1,853
2,174
Long-term debt
118,858
119,598
Lease liabilities
21,706
23,365
Other non-current liabilities
19,399
20,383
Total liabilities
777,038
790,806
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 40,422 and 40,395 shares
issued and 34,901 and 34,874 shares outstanding as of March 31, 2025 and December 31,
2024, respectively
403
403
Treasury stock, at cost; 5,521 shares as of March 31, 2025 and December 31, 2024
(269,804)
(269,804)
Additional paid-in capital
485,736
468,390
Accumulated other comprehensive loss
(12,544)
(16,841)
Retained earnings
343,389
336,202
Total stockholders’ equity
547,180
518,350
Total liabilities and stockholders’ equity
$ 1,324,218
$ 1,309,156
Shutterstock, Inc.
Consolidated Statements of Cash Flows
(In thousands, except par value amount) (unaudited)
Three Months Ended
March 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 18,688
$ 16,121
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
22,671
21,263
Deferred taxes
(7,772)
(3,854)
Non-cash equity-based compensation
17,884
11,150
Bad debt expense
593
(1,510)
Unrealized gain on investments, net
(13,260)
(3,755)
Changes in operating assets and liabilities:
Accounts receivable
(16,618)
(736)
Prepaid expenses and other current and non-current assets
17,982
(11,999)
Accounts payable and other current and non-current liabilities
(17,264)
(20,182)
Contributor royalties payable
3,379
6,127
Deferred revenue
(1,036)
(4,325)
Net cash provided by operating activities
$ 25,247
$ 8,300
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(10,808)
(14,461)
Business combination, net of cash acquired
—
(19,474)
Cash received related to Giphy Retention Compensation
492
18,401
Acquisition of content
(897)
(994)
Security deposit payment
(21)
—
Net cash used in investing activities
$ (11,234)
$ (16,528)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash paid related to settlement of employee taxes related to RSU vesting
(3,539)
(7,966)
Payment of cash dividends
(11,501)
(10,663)
Repayment of credit facility
(781)
—
Net cash used in financing activities
$ (15,821)
$ (18,629)
Effect of foreign exchange rate changes on cash
2,788
(1,822)
Net increase / (decrease) in cash and cash equivalents
980
(28,679)
Cash and cash equivalents, beginning of period
111,251
100,490
Cash and cash equivalents, end of period
$ 112,231
$ 71,811
Supplemental Disclosure of Cash Information:
Cash (received) / paid for income taxes
$ (604)
$ 2,901
Cash paid for interest
4,359
509
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 March 31,
2025
2024
Net income
$ 18,688
$ 16,121
Add / (less) Non-GAAP adjustments:
Non-cash equity-based compensation
17,884
11,150
Tax effect of non-cash equity-based compensation (1)
(4,203)
(2,620)
Acquisition-related amortization expense (2)
9,697
9,163
Tax effect of acquisition-related amortization expense (1)
(2,279)
(2,153)
Giphy Retention Compensation Expense – non-recurring
566
6,829
Tax effect of Giphy Retention Compensation Expense – non-recurring(1)
(133)
(1,605)
Merger related costs
11,861
—
Tax effect of Merger related costs(1)
(2,669)
—
Other(3)
(13,080)
(3,766)
Tax effect of other(1)
(41)
2
Adjusted net income
$ 36,291
$ 33,121
Net income per diluted common share
$ 0.53
$ 0.45
Adjusted net income per diluted common share
$ 1.03
$ 0.92
Weighted average diluted shares
35,322
36,066
(1)
Statutory tax rates are used to calculate the tax effect of the adjustments.
(2)
Of these amounts, $9.0 million and $8.2 million are included in cost of revenue for the three months ended March 31, 2025 and 2024, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.
(3)
Other consists of unrealized gains and losses on investments and severance costs associated with strategic workforce optimizations.
Three Months Ended March 31,
2025
2024
Net income
$ 18,688
$ 16,121
Add / (less) Non-GAAP adjustments:
Interest expense
4,298
562
Interest income
(935)
(1,043)
Provision for income taxes
1,730
4,269
Depreciation and amortization
22,671
21,263
EBITDA
$ 46,452
$ 41,172
Non-cash equity-based compensation
17,884
11,150
Giphy Retention Compensation Expense – non-recurring
566
6,829
Merger related costs
11,861
—
Foreign currency (gain) / loss
(320)
592
Unrealized gain on investment
(13,260)
(3,755)
Workforce optimization – severance
180
(11)
Adjusted EBITDA
$ 63,363
$ 55,977
Revenue
$ 242,620
$ 214,315
Net income margin
7.7 %
7.5 %
Adjusted EBITDA margin
26.1 %
26.1 %
Three Months Ended March 31,
2025
2024
Reported Revenue (in thousands)
$ 242,620
$ 214,315
Revenue growth
13 %
— %
Revenue growth on a constant currency basis
14 %
— %
Content reported revenue (in thousands)
$ 202,888
$ 173,830
Content revenue growth
17 %
(10) %
Content revenue growth on a constant currency basis
17 %
(10) %
Data, Distribution, and Services reported revenue (in thousands)
$ 39,732
$ 40,485
Data, Distribution, and Services revenue growth
(2) %
90 %
Data, Distribution, and Services revenue growth on a constant currency basis
(2) %
90 %
Three Months Ended March 31,
2025
2024
Cash flow information:
Net cash provided by operating activities
$ 25,247
$ 8,300
Net cash used in investing activities
$ (11,234)
$ (16,528)
Net cash used in financing activities
$ (15,821)
$ (18,629)
Adjusted free cash flow:
Net cash provided by operating activities
$ 25,247
$ 8,300
Capital expenditures
(10,808)
(14,461)
Content acquisitions
(897)
(994)
Cash received related to Giphy Retention Compensation
492
18,401
Merger related costs
9,350
—
Adjusted Free Cash Flow
$ 23,384
$ 11,246
Three Months Ended March 31,
2025
2024
Content
$ 202,888
$ 173,830
Data, Distribution, and Services
$ 39,732
$ 40,485
Total revenue
$ 242,620
$ 214,315
Change in total deferred revenue(1)
$ 753
$ (5,422)
Total billings
$ 243,373
$ 208,893
(1) Change in total deferred revenue excludes deferred revenue acquired through business combinations.
Shutterstock, Inc.
Supplemental Financial Data
(unaudited)
Historical Operating Metrics
Three Months Ended
3/31/25
12/31/24
9/30/24
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Subscribers (end of period, in thousands) (1)
1,079
459
470
490
499
523
551
556
Subscriber revenue (in millions) (2)
$ 109.9
$ 75.7
$ 78.7
$ 80.3
$ 83.9
$ 85.2
$ 88.3
$ 87.4
Average revenue per customer (last twelve months) (3)
$ 244
$ 450
$ 446
$ 434
$ 418
$ 412
$ 401
$ 374
Paid downloads (in millions) (4)
120.9
33.0
32.9
33.4
35.0
35.4
36.4
38.5
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 Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato.
(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.
Equity-Based Compensation by expense category
Three Months Ended
($ in thousands)
3/31/25
12/31/24
9/30/24
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Cost of revenue
$ 396
$ 505
$ 443
$ 300
$ 224
$ 145
$ 180
$ 306
Sales and marketing
2,255
2,627
3,226
3,167
2,011
2,201
2,067
2,487
Product development
2,912
2,722
2,745
4,171
2,285
3,022
3,509
4,221
General and administrative
12,321
9,256
8,680
7,338
6,630
6,620
7,247
7,929
Total non-cash equity-based compensation
$ 17,884
$ 15,110
$ 15,094
$ 14,976
$ 11,150
$ 11,988
$ 13,003
$ 14,943
Depreciation and Amortization by expense category
Three Months Ended
($ in thousands)
3/31/25
12/31/24
9/30/24
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Cost of revenue
$ 20,742
$ 21,191
$ 19,653
$ 20,087
$ 19,874
$ 18,952
$ 19,872
$ 18,134
General and administrative
1,929
2,096
1,991
1,346
1,389
1,404
1,400
1,070
Total depreciation and amortization
$ 22,671
$ 23,287
$ 21,644
$ 21,433
$ 21,263
$ 20,356
$ 21,272
$ 19,204
View original content to download multimedia:https://www.prnewswire.com/news-releases/shutterstock-reports-first-quarter-2025-financial-results-302444814.html
SOURCE Shutterstock, Inc.
You may like
Technology
Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026
Published
39 minutes agoon
October 18, 2026By
SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.
Spotlight: 1.6T LPO Performance & High Customer Traction
AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:
Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.
Surging Market Interest
Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.
Overview of Other Innovations at OCP 2026
In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:
12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.
About Linktel Technologies
Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.
For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.
View original content:https://www.prnewswire.com/news-releases/linktel-technologies-highlights-breakthrough-1-6t-lpo-performance–strong-market-pull-at-ocp-2026–302911973.html
SOURCE Linktel Technologies
Technology
Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair
Published
2 hours agoon
October 18, 2026By
GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.
Smart Life Solutions Address an Aging and Globalized Market
A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.
For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.
Service Robots Demonstrate Expanding Real-World Applications
The Service Robot Zone remains one of the fair’s most popular attractions in this edition.
Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.
More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.
The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.
As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.
For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16
View original content to download multimedia:https://www.prnewswire.com/news-releases/advanced-manufacturing-in-focus-smart-life-and-robotics-take-the-spotlight-at-140th-canton-fair-302911955.html
SOURCE Canton Fair
Technology
October 2026 Global Sources Hong Kong Shows Phase II Opens Today
Published
2 hours agoon
October 18, 2026By
Asia’s first dedicated B2B Pre-Owned Mobile Devices focus pavilion
Tencent Brings AI Ecosystem Products to the Show
HONG KONG, Oct. 18, 2026 /PRNewswire/ — Phase II of the October 2026 Global Sources Hong Kong Shows opened today at AsiaWorld-Expo, running from October 18 to 21. The four-day event focuses on four core tracks — mobile electronics, smart home security and appliances, lifestyle electronics, and sports and outdoor — bringing together more than 2,100 quality Asian suppliers across more than 4,000 booths, showcasing approximately 160,000 new products including mobile devices, smart wearables, AR/VR, smart home, energy storage and charging, personal health care, pet products, and sports and outdoor equipment.
John Kao, Vice President of Hong Kong Shows & Overseas Shows at Global Sources, said: “Hong Kong possesses a regulatory framework aligned with international standards, efficient intellectual property protection, and proximity to the Greater Bay Area’s manufacturing heartland — enabling it to meet buyers’ dual demands for compliance and efficiency. Buyers no longer need to travel to multiple locations: right here in Hong Kong, they can assess Asian manufacturing supply, complete compliance reviews, and place orders — all in a single visit. The trust established between buyers and sellers on site is often difficult to achieve through months of email exchanges. We aim to continuously strengthen Hong Kong’s role as an international trade hub, enabling genuinely capable suppliers and serious buyers to connect efficiently on this platform.”
Asia’s First B2B Phone Trade Focus Pavilion Officially Debuts
Hong Kong has long been an important transit hub for the global second-hand phone trade. According to IDC data, global used smartphone shipments reached 225.7 million units in 2024 and are projected to maintain a compound annual growth rate of 4.9% through 2029. While the market continues to expand, compliant distribution capability remains the key threshold for entering this space.
For the first time, the show has partnered with the Hong Kong International Communications Electronic Chamber (HKICEC) to unveil the “HKICEC Global Mobile Exchange Pavilion,” Asia’s first dedicated B2B pavilion for Pre-Owned Mobile Devices. The pavilion brings together nearly 60 leading companies from Chinese Mainland, Hong Kong SAR, India, Japan, the United Arab Emirates, the United States, the United Kingdom, and beyond — including Zhuan Zhuan, ATRenew, US Mobile Phones Inc., Belong Inc., and ecoATM LLC — exhibits and services span new mobile devices, professionally tested and data-sanitized refurbished smart devices compliant with EU WEEE standards, intelligent testing technologies, recycling solutions, and compliant export services. The pavilion offers buyers from Europe, North America, and Southeast Asia a trusted and comprehensive sourcing platform, creating a green trade corridor that connects Chinese Mainland’s manufacturing strengths, Hong Kong SAR’s international platform, and global markets.
Tencent AI Makes Show Debut; AI Mass Production Enters the Delivery Phase
The product selection logic for AI products has undergone a marked shift in the second half of the year. The focus has moved entirely from “What new AI products are available?” to deployment capability and delivery efficiency — no longer chasing feature gimmicks alone, buyers place greater emphasis on whether products can effectively address real needs and ship reliably on schedule. Suppliers’ overall fulfillment capability has surpassed mere product highlights to become the primary assessment criterion in sourcing decisions. The Phase II “AI+ Theme Zone” features over 1,200 booths spanning seven segments: AI terminal devices, AI wearables, AI glasses, AI toys, AI pet products, AI personal health devices, and AI-integrated products, showcasing suppliers’ proven ability to move from concept to mass production. The zone also extends to lifestyle electronics including wearable electronics, smart pet products, personal care and beauty tech, sports, outdoor and fitness tech, gifts, and smart living, covering a wide range of real-world application scenarios.
Tencent joins forces with its ecosystem partners to exhibit under the theme “AI-Empowered Business Growth,” showcasing Tencent’s AI office assistant WorkBuddy alongside enterprise-grade AI solutions from ecosystem partners, including the AI-powered business growth tool Buda.im and Busabase. Running concurrently with the fair, the “AI Agent Summit” brings together over 100 industry, investment and technology leaders to explore how AI Agents are moving beyond demos into real-world deployment and revenue generation, with in-depth discussions on commercialisation pathways, industry standardisation and emerging opportunities across the AI Agent ecosystem. In addition, the show has partnered with the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) to launch a Taiwan AI Supply Chain Theme Pavilion, showcasing the region’s established industrial cluster strengths in AI modules, components, and contract manufacturing.
Vietnamese Manufacturing and Mobile Accessories Take Center Stage; Diverse Sourcing Zones Debut
Phase II features a dedicated “Vietnam Sourcing Fair” zone, bringing together approximately 50 Vietnamese manufacturers with mature export capabilities, covering three product categories: fashion products and apparel, home and kitchenware, and gifts and packaging. For buyers seeking to diversify sourcing risks, the zone enables them to simultaneously access China’s main supply chain and Vietnam’s emerging production capacity at the same show, and negotiate directly face-to-face with Vietnamese factories.
With new-generation flagship smartphones from major brands hitting the market, demand for compatible mobile accessories is ramping up. The show floor features over 2,000 mobile-accessory booths showcasing new offerings including phone cases, charging gear, stands, and data cables, providing global buyers with an extensive range of options. The event also hosts the “Global Buyer’s Top Picks” creative phone-case contest to identify case designs with strong market potential.
The concurrent Hong Kong Security Tech Show, supported by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), showcases products and solutions spanning security surveillance, smart access control, and cybersecurity.
Best of Innovation Awards Recognize Outstanding Products; Global New Product Launches Converge in Hong Kong
The Phase II Best of Innovation Awards focus on products across mobile electronics, smart home, security and appliances, lifestyle electronics, and sports and outdoor categories, with judging criteria emphasizing practicality, cost-effectiveness, technological maturity, and market relevance — identifying innovative products with genuine commercial deployment potential. Phase II also introduces a dedicated “AI Innovation Award” to recognize exhibits with outstanding applications of AI technology. The awards program continues its partnership with the internationally renowned European Product Design Award (EPDA)™ to present the “Best Product Design Award,” honoring products that combine innovative thinking with exceptional design. The show also serves as the preferred launch platform for multiple exhibitors’ annual new products, featuring heavyweight global and Asia premieres that further consolidate Hong Kong’s position as the world’s premier stage for consumer electronics product debuts.
About Global Sources
Global Sources is an internationally recognized multi-channel trade platform, connecting Asia with the world for 55 years. The company has been dedicated to facilitating global trade by connecting verified suppliers with qualified buyers worldwide. To date, it has successfully served more than 14 million registered buyers and users globally, providing efficient and convenient trade solutions.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/october-2026-global-sources-hong-kong-shows-phase-ii-opens-today-302911972.html
SOURCE Global Sources
Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026
Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair
October 2026 Global Sources Hong Kong Shows Phase II Opens Today
Send Rakhi to UK swiftly with UK Gifts Portal
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Nullmax and Renesas Forge Strategic Partnership to Deliver Competitive ADAS Solutions for the Global Market
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days agoCresta Launches Deputy Agent: an AI Agent That Keeps Working Long After the Customer Hangs Up
-
Technology5 days agoCollective X Health Launches With a $3.2 Million Pre-Seed Round to Close the Women’s Health Data Gap
-
Technology5 days agoSUBSCRIBE Launches 1031 DST Exchange Transaction Platform
-
Technology5 days agoMassPay Adds Paymode Virtual Card and Premium ACH to Its Platform
-
Coin Market5 days agoDigital cash offers ‘cash-like privacy,’ but bank data breaches threaten users: BIS
-
Technology5 days agoCelebree School Rises on the 2026 Franchise Times Top 400 for a Third Straight Year
-
Technology5 days ago
Voxel Advances System of Reality Capabilities and Fuels Global Expansion with Addition of Ventral AI
-
Technology5 days agoSpeakeasy and Tailscale bring private networking to enterprise MCP
