NEW YORK, April 27, 2021
/PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the
"Company"), a leading global creative platform offering
full-service solutions, high-quality content, and tools for brands,
businesses and media companies, today announced financial results
for the first quarter ended March 31, 2021.
Commenting on the Company's performance, Stan Pavlovsky, the Company's Chief Executive
Officer, said, "Shutterstock's strong first quarter results
demonstrate that our subscription products are resonating in the
market. We believe that by continually investing in product
innovation, fresh content, and data & insights, we are well
positioned to take advantage of the current rebound in industry
demand for digital content and creative tools. Our newest content
type, 3D, is performing above our expectations and offers
tremendous untapped future growth opportunities. With three
consecutive quarters of accelerating revenue growth, Shutterstock
is building momentum and I am pleased that we have the confidence
to increase our full year 2021 revenue and EBITDA guidance."
First Quarter 2021 highlights compared to First Quarter
2020:
Shutterstock completed the acquisition of TurboSquid, Inc.
("TurboSquid") on February 1, 2021,
and as a result, TurboSquid's financial results have been included
in the Company's consolidated financial statements subsequent to
the acquisition date.
Key Operating Metrics
- Subscribers increased 46% to 306,000.
- Subscriber revenue increased 20% to $76.5 million.
- Average revenue per customer, increased 4.0% to $342.
- Paid downloads decreased 2% to 45.8 million.
- Revenue per download increased 16% to $3.96.
- Image collection expanded 12% to approximately 370 million
images.
- Footage collection expanded 17% to approximately 21 million
clips.
Financial Highlights
- Revenue increased 14% to $183.3
million. On a constant currency basis, revenue increased
11%.
- Income from operations increased 559% to $38.1 million.
- Net income increased 584% to $29.5
million.
- Adjusted EBITDA increased 156% to $56.4
million.
- Diluted EPS increased by $0.67 to
$0.79 per share.
- Adjusted net income per diluted share increased by $0.72 to $0.98 per
share.
SHUTTERSTOCK INVESTOR RELATIONS MICRO SITE
Accessible at
content.shutterstock.com/investor-report/index.html
FIRST QUARTER RESULTS
Revenue
First quarter revenue of $183.3 million increased $22.0 million or 14% as compared to the first
quarter of 2020. Revenue generated through our E-commerce sales
channel increased 19% as compared to the first quarter of 2020, to
$118.4 million, and represented
65% of total revenue in the first quarter of 2021. Revenue from our
Enterprise sales channel increased 5% as compared to the first
quarter of 2020, to $64.9 million, and represented 35% of first
quarter revenue in 2021.
On a constant currency basis, revenue increased 11% in the first
quarter of 2021 as compared to the first quarter of 2020. On a
constant currency basis, E-commerce revenue increased by 16% in the
first quarter of 2021, as compared to the first quarter of 2020. On
a constant currency basis, Enterprise revenue increased by 3% in
the first quarter of 2021, as compared to the first quarter of
2020.
Net income and Income per diluted share
Net income of $29.5 million,
increased $25.2 million as compared
to $4.3 million for the first quarter
in 2020. Net income per diluted share was $0.79, as compared to $0.12 for the same period in 2020. This increase
is due primarily to increased revenue in the first quarter of 2021,
as compared to the first quarter of 2020 and to margin expansion
initiatives, which have resulted in lower operating expenses.
Adjusted net income per diluted share was $0.98 as compared to $0.26 for the first quarter of 2020, an increase
of $0.72 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $56.4 million
for the first quarter of 2021 increased by $34.4 million, or 156%, as compared to the
first quarter of 2020, due primarily to increased revenue, and to
our margin expansion initiatives. The adjusted EBITDA margin
increased to 30.8% from 13.7% in the first quarter of 2020.
FIRST QUARTER LIQUIDITY
Our cash and cash equivalents decreased by $64.6 million to $363.9 million at March 31, 2021, as
compared with $428.6 million as
of December 31, 2020. This decrease was driven by $81.2 million used in investing activities
and $19.4 million used in
financing activities, partially offset by $35.8 million of net cash provided by our
operating activities.
Net cash provided by our operating activities was favorably
affected by our increased operating income, in addition to changes
in the timing of payments pertaining to operating expenses. Cash
used in investing activities primarily consists of $72.2 million cash used in the acquisition of
TurboSquid and $8.5 million
related to capital expenditures. Cash used in financing activities
consists primarily of $13.0 million paid in settlement of tax
withholding obligations related to employee stock-based
compensation awards and $7.6 million related to the payment of the
quarterly cash dividend.
Free cash flow was $26.8 million for the first quarter of 2021,
an increase of $20.6 million
from the first quarter of 2020. This change was primarily driven by
higher cash flows from operating activities.
QUARTERLY CASH DIVIDEND
During the three months ended March 31, 2021, the Company
declared and paid cash dividends of $0.21 per common share, or $7.6 million.
On April 19, 2021, the Board of Directors declared a
dividend of $0.21 per share of
outstanding common stock, payable on June 17, 2021 to
stockholders of record at the close of business on June 3,
2021.
KEY OPERATING METRICS
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
|
Subscribers (end of
period)(1)
|
|
306,000
|
|
|
209,000
|
|
Subscriber revenue
(in millions)(2)
|
|
$
|
76.5
|
|
|
$
|
63.9
|
|
|
|
|
|
|
Average revenue per
customer (last twelve months)(3)
|
|
$
|
342
|
|
|
$
|
329
|
|
Paid downloads (in
millions)(4)
|
|
45.8
|
|
|
46.8
|
|
Revenue per download
(5)
|
|
$3.96
|
|
|
$3.42
|
|
Content in our
collection (end of period, in millions)(6):
|
|
|
|
|
Images
|
|
370
|
|
|
330
|
|
Footage
clips
|
|
21
|
|
|
18
|
|
|
________________________________________________
|
(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 custom content and downloads
of content that are offered to customers for no charge, including
our free image of the week.
|
|
(5) Revenue per
download is the amount of content-related revenue recognized in a
given period divided by the number of paid downloads in that period
excluding revenue from custom content and the impact of revenue
that is not derived from or associated with content
licenses.
|
|
(6) Represents
approved images (photographs, vectors and illustrations) and
footage (in number of clips) in our library on shutterstock.com at
the end of the period. This collection metric excludes content that
is not uploaded directly to our site but is available for license
by our customers through an application program interface, custom
content and certain content that may be licensed for editorial use
only.
|
2021 GUIDANCE UPDATE
The Company's revised expectations for the full year 2021, are
as follows:
- Revenue of $720 million to
$730 million, representing annual
growth of 8% to 9.5%, an increase from the previous guidance of
$708 million to $722 million.
- Adjusted EBITDA of between $171
million to $177 million, an
increase from the previous guidance of $165
million to $171 million.
- Adjusted net income per diluted share of between $2.78 to $2.93, an
increase from the previous guidance of $2.75 to $2.90 per
diluted share.
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 free cash flow.
Shutterstock defines adjusted EBITDA as net income adjusted for
depreciation and amortization, non-cash equity-based compensation,
foreign currency transaction gains and losses, 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, the
amortization of acquisition-related intangible assets 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
distribution channel) on a constant currency basis 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 during the period; and free cash flow as
cash provided by operating activities, adjusted for capital
expenditures, content acquisition, and, with respect to the year
ended December 31, 2020, a payment
associated with long-term incentives related to our 2017
acquisition of Flashstock. 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 share, revenue growth (including by distribution
channel) on a constant currency basis (expressed as a percentage),
billings and 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 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 distribution channel)
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 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 property and equipment to
support the Company's ongoing business operations and after
excluding the impact of nonrecurring payments associated with
long-term incentives related to our 2017 acquisition of Flashstock,
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 share, revenue growth
(including by distribution channel) on a constant currency basis
(expressed as a percentage), billings and 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 and bonuses; (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 adjusted EBITDA,
adjusted EBITDA margin, adjusted net income, adjusted net income
per diluted share, billings, free cash flow, and the most
comparable financial measures 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 we are unable to calculate with
reasonable certainty the impact of potential future transactions,
including, but not limited to, capital structure transactions,
restructuring, acquisitions, divestitures or other events and asset
impairments, without unreasonable effort. These amounts 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. In addition, we
believe such reconciliations would imply a degree of precision that
would be confusing or misleading to investors.
EARNINGS TELECONFERENCE INFORMATION
The Company will discuss its first quarter and full year
financial results during a teleconference today, April 27,
2021, at 8:30 AM ET. The
conference call can be accessed in the U.S. at (844) 634-1442 or
outside the U.S. at (615) 247-0239 with the conference ID#
8919625. A live audio webcast of the call will also be
available simultaneously at http://investor.shutterstock.com.
Following completion of the call, a recorded replay of the
webcast will be available in the investor relations section of
Shutterstock's website. A telephone replay of the call will also be
available until May 4, 2021 in the
U.S. at (855) 859-2056 or outside the U.S. at (404) 537-3406 with
the conference ID# 8919625.
Additional investor information can be accessed at
http://investor.shutterstock.com.
ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK), is a leading global
creative platform offering full-service solutions, high-quality
content, and tools for brands, businesses and media companies.
Directly and through its group subsidiaries, Shutterstock's
comprehensive collection includes high-quality licensed
photographs, vectors, illustrations, 3D models, videos and music.
Working with its growing community of over 1.7 million
contributors, Shutterstock adds hundreds of thousands of images
each week, and currently has more than 370 million images and more
than 21 million footage clips available.
Headquartered in New York City,
Shutterstock has offices around the world and customers in more
than 150 countries. The Company also owns Bigstock, a
value-oriented stock media offering; Shutterstock Studios, an
end-to-end custom creative shop; Offset, a high-end image
collection; PremiumBeat, a curated royalty-free music library;
Shutterstock Editorial, a premier source of editorial images and
videos for the world's media, Amper
Music, an AI-driven music platform; and TurboSquid, a
leading 3D content marketplace.
For more information, please visit www.shutterstock.com and
follow Shutterstock on Twitter and on Facebook.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Examples of forward-looking statements include, but are not
limited to, statements regarding management's future business,
future results of operations or financial condition, including full
year 2021 guidance, new or planned features, products or services,
management strategies, Shutterstock's expectations regarding
financial outlook and future growth and profitability, statements
regarding anticipated effects of the Company's acquisition of
TurboSquid and statements regarding anticipated improvements in
operations. You can identify forward-looking statements by words
such as "may," "will," "would," "should," "could," "expect,"
"anticipate," "believe," "estimate," "intend," "plan,"
"opportunities" and other similar expressions. However, not all
forward-looking statements contain these words. Such
forward-looking statements are subject to known and unknown risks,
uncertainties and other factors including risks related to any
changes to or the effects on liabilities, financial condition,
future capital expenditures, revenue, expenses, net income or loss,
synergies and future prospects; our inability to continue to
attract and retain customers and contributors to our online
marketplace for creative content; competitive factors; our
inability to innovate technologically or develop, market and offer
new products and services; costs related to litigation or
infringement claims, indemnification claims and the inability to
prevent misuse of our content; our inability to increase market
awareness of Shutterstock and our products and services; our
inability to effectively manage our growth; our inability to grow
at historic growth rates or at all; technological interruptions
that impair access to our websites; assertions by third parties of
infringement of intellectual property rights by Shutterstock, our
inability to effectively manage risks associated with operating
internationally; our exposure to foreign exchange rate risk; our
inability to address risks associated with sales to large corporate
customers; government regulation of the internet; increasing
regulation related to the handling of personal data; actions by
governments to restrict access to our products and services; our
inability to effectively expand our operations into new products,
services and technologies; our inability to protect the
confidential information of customers; increased tax liabilities
associated with our worldwide operations, including our exposure to
withholding, sales and transaction tax liabilities; the effect of
the Tax Cuts and Jobs Act of 2017; public health crises including
the COVID-19 pandemic; general economic and political conditions
worldwide, including disruption and volatility caused by COVID-19
and any resulting economic recession; our inability to successfully
integrate acquisitions and the associated technology and achieve
operational efficiencies; and other factors and 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
March 31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Revenue
|
|
$
|
183,281
|
|
|
$
|
161,285
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Cost of
revenue
|
|
61,832
|
|
|
69,123
|
|
Sales and
marketing
|
|
41,921
|
|
|
42,660
|
|
Product
development
|
|
10,731
|
|
|
13,069
|
|
General and
administrative
|
|
30,679
|
|
|
30,652
|
|
Total operating
expenses
|
|
145,163
|
|
|
155,504
|
|
Income from
operations
|
|
38,118
|
|
|
5,781
|
|
Other (expense) /
income, net
|
|
(2,462)
|
|
|
513
|
|
Income before income
taxes
|
|
35,656
|
|
|
6,294
|
|
Provision for income
taxes
|
|
6,142
|
|
|
1,976
|
|
Net income
|
|
$
|
29,514
|
|
|
$
|
4,318
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
|
$
|
0.81
|
|
|
$
|
0.12
|
|
Diluted
|
|
$
|
0.79
|
|
|
$
|
0.12
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
Basic
|
|
36,336
|
|
|
35,521
|
|
Diluted
|
|
37,249
|
|
|
35,882
|
|
Shutterstock, Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except par value amount)
|
(unaudited)
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
363,926
|
|
|
$
|
428,574
|
|
Accounts receivable,
net of allowance of $5,487 and $4,942
|
|
49,261
|
|
|
43,846
|
|
Prepaid expenses and
other current assets
|
|
27,401
|
|
|
16,650
|
|
Total current
assets
|
|
440,588
|
|
|
489,070
|
|
Property and
equipment, net
|
|
50,366
|
|
|
50,906
|
|
Right-of-use
assets
|
|
37,908
|
|
|
39,552
|
|
Intangibles assets,
net
|
|
45,762
|
|
|
25,765
|
|
Goodwill
|
|
149,040
|
|
|
89,413
|
|
Deferred tax assets,
net
|
|
10,156
|
|
|
13,566
|
|
Other
assets
|
|
21,324
|
|
|
21,372
|
|
Total
assets
|
|
$
|
755,144
|
|
|
$
|
729,644
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
6,088
|
|
|
$
|
2,442
|
|
Accrued
expenses
|
|
65,453
|
|
|
67,909
|
|
Contributor royalties
payable
|
|
28,228
|
|
|
26,336
|
|
Deferred
revenue
|
|
153,630
|
|
|
149,843
|
|
Other
liabilities
|
|
11,924
|
|
|
10,399
|
|
Total current
liabilities
|
|
265,323
|
|
|
256,929
|
|
Lease
liabilities
|
|
40,062
|
|
|
41,620
|
|
Other non-current
liabilities
|
|
9,255
|
|
|
9,170
|
|
Total
liabilities
|
|
314,640
|
|
|
307,719
|
|
Commitment and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.01
par value; 200,000 shares authorized; 39,010 and 38,803 shares
issued
and 36,452 and 36,245 shares outstanding as of
March 31, 2021 and December 31, 2020,
respectively
|
|
391
|
|
|
389
|
|
Treasury stock, at
cost; 2,558 shares as of March 31, 2021 and
December 31, 2020
|
|
(100,027)
|
|
|
(100,027)
|
|
Additional paid-in
capital
|
|
357,422
|
|
|
360,939
|
|
Accumulated other
comprehensive loss
|
|
(7,455)
|
|
|
(7,681)
|
|
Retained
earnings
|
|
190,173
|
|
|
168,305
|
|
Total stockholders'
equity
|
|
440,504
|
|
|
421,925
|
|
Total liabilities and
stockholders' equity
|
|
$
|
755,144
|
|
|
$
|
729,644
|
|
Shutterstock, Inc.
|
Consolidated
Statements of Cash Flows
|
(In thousands,
except par value amount)
|
(unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
|
$
|
29,514
|
|
|
$
|
4,318
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
10,091
|
|
|
10,519
|
|
Deferred
taxes
|
|
(433)
|
|
|
(386)
|
|
Non-cash equity-based
compensation
|
|
8,210
|
|
|
5,760
|
|
Bad debt
expense
|
|
526
|
|
|
658
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(5,892)
|
|
|
673
|
|
Prepaid expenses and
other current and non-current assets
|
|
(9,306)
|
|
|
(2,207)
|
|
Accounts payable and
other current and non-current liabilities
|
|
(72)
|
|
|
(2,286)
|
|
Long-term incentives
related to acquisitions
|
|
—
|
|
|
(7,759)
|
|
Contributor royalties
payable
|
|
(369)
|
|
|
551
|
|
Deferred
revenue
|
|
3,559
|
|
|
(2,982)
|
|
Net cash provided by
operating activities
|
|
$
|
35,828
|
|
|
$
|
6,859
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital
expenditures
|
|
(8,548)
|
|
|
(7,719)
|
|
Business combination,
net of cash acquired
|
|
(72,165)
|
|
|
—
|
|
Acquisition of
content
|
|
(489)
|
|
|
(723)
|
|
Security deposit
(payment) / release
|
|
(11)
|
|
|
31
|
|
Net cash used in
investing activities
|
|
$
|
(81,213)
|
|
|
$
|
(8,411)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
1,309
|
|
|
—
|
|
Cash paid related to
settlement of employee taxes related to RSU vesting
|
|
(13,034)
|
|
|
(1,761)
|
|
Payment of cash
dividend
|
|
(7,646)
|
|
|
(6,040)
|
|
Net cash used in
financing activities
|
|
$
|
(19,371)
|
|
|
$
|
(7,801)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
108
|
|
|
(810)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(64,648)
|
|
|
(10,163)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
428,574
|
|
|
305,874
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
363,926
|
|
|
$
|
295,711
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Information:
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
3,363
|
|
|
$
|
494
|
|
Shutterstock, Inc.
Reconciliation of Non-GAAP
Financial Information to GAAP
(In thousands, except per
share information)
(unaudited)
Adjusted EBITDA, adjusted net income, revenue growth (including
by distribution channel) on a constant currency basis, billings and
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,
|
|
|
2021
|
|
2020
|
Net income
|
|
$
|
29,514
|
|
|
$
|
4,318
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
Depreciation and
amortization
|
|
10,091
|
|
|
10,519
|
|
Non-cash equity-based
compensation
|
|
8,210
|
|
|
5,760
|
|
Other adjustments, net
(1)
|
|
2,462
|
|
|
(513)
|
|
Provision for income
taxes
|
|
6,142
|
|
|
1,976
|
|
Adjusted
EBITDA
|
|
$
|
56,419
|
|
|
$
|
22,060
|
|
Adjusted EBITDA
margin
|
|
30.8
|
%
|
|
13.7
|
%
|
____________________________________________________________________
|
(1)
|
Other adjustments,
net includes foreign currency transaction gains and losses, and
interest income and expense.
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
Net income
|
|
$
|
29,514
|
|
|
$
|
4,318
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
Non-cash equity-based
compensation
|
|
8,210
|
|
|
5,760
|
|
Tax effect of non-cash
equity-based compensation (2)
|
|
(1,929)
|
|
|
(1,354)
|
|
Acquisition-related
amortization expense
|
|
1,099
|
|
|
568
|
|
Tax effect of
acquisition-related amortization expense (2)
|
|
(258)
|
|
|
(133)
|
|
Adjusted net
income
|
|
$
|
36,636
|
|
|
$
|
9,159
|
|
|
|
|
|
|
Net income per
diluted share
|
|
$
|
0.79
|
|
|
$
|
0.12
|
|
Adjusted net income
per diluted share
|
|
$
|
0.98
|
|
|
$
|
0.26
|
|
Weighted average
diluted shares
|
|
37,249
|
|
|
35,882
|
|
______________________________________________________________________
|
(2)
|
Tax effect reflects
the estimated impact of the adjustment on the provision for income
taxes.
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
Total
Revenues
|
|
$
|
183,281
|
|
|
$
|
161,285
|
|
|
|
|
|
|
Revenue
growth
|
|
14
|
%
|
|
(1)
|
%
|
Revenue growth on
a constant currency basis
|
|
11
|
%
|
|
(1)
|
%
|
|
|
|
|
|
E-commerce
revenues
|
|
$
|
118,400
|
|
|
$
|
99,736
|
|
Revenue growth:
E-commerce
|
|
19
|
%
|
|
2
|
%
|
Revenue growth:
E-commerce on a constant currency basis
|
|
16
|
%
|
|
2
|
%
|
|
|
|
|
|
Enterprise
revenues
|
|
$
|
64,881
|
|
|
$
|
61,549
|
|
Revenue growth:
Enterprise
|
|
5
|
%
|
|
(6)
|
%
|
Revenue growth:
Enterprise on a constant currency basis
|
|
3
|
%
|
|
(5)
|
%
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
|
$
|
35,828
|
|
|
$
|
6,859
|
|
Capital
expenditures
|
|
(8,548)
|
|
|
(7,719)
|
|
Content
acquisition
|
|
(489)
|
|
|
(723)
|
|
Payments associated
with long-term incentives related to acquisitions
|
|
—
|
|
|
7,759
|
|
Free cash
flow
|
|
$
|
26,791
|
|
|
$
|
6,176
|
|
Shutterstock, Inc.
|
Supplemental
Financial Data
|
(unaudited)
|
|
Historical
Operating Metrics
|
|
|
|
Three Months
Ended
|
|
|
3/31/21
|
|
12/31/20
|
|
9/30/20
|
|
6/30/20
|
|
3/31/20
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribers (end of
period, in thousands) (1)
|
|
306
|
|
|
281
|
|
|
255
|
|
|
223
|
|
|
209
|
|
|
194
|
|
|
184
|
|
|
173
|
|
Subscriber revenue
(in millions) (2)
|
|
$
|
76.5
|
|
|
$
|
71.1
|
|
|
$
|
67.6
|
|
|
$
|
62.7
|
|
|
$
|
63.9
|
|
|
$
|
60.5
|
|
|
$
|
60.1
|
|
|
$
|
57.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
customer (last twelve months) (3)
|
|
$
|
342
|
|
|
$
|
333
|
|
|
$
|
328
|
|
|
$
|
326
|
|
|
$
|
329
|
|
|
$
|
330
|
|
|
$
|
327
|
|
|
$
|
325
|
|
Paid downloads (in
millions) (4)
|
|
45.8
|
|
|
45.8
|
|
|
43.4
|
|
|
44.0
|
|
|
46.8
|
|
|
47.7
|
|
|
46.3
|
|
|
46.6
|
|
Revenue per download
(5)
|
|
$
|
3.96
|
|
|
$
|
3.91
|
|
|
$
|
3.79
|
|
|
$
|
3.61
|
|
|
$
|
3.42
|
|
|
$
|
3.44
|
|
|
$
|
3.40
|
|
|
$
|
3.44
|
|
Content in our
collection (end of period, in millions): (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Images
|
|
370
|
|
|
360
|
|
|
350
|
|
|
340
|
|
|
330
|
|
|
314
|
|
|
297
|
|
|
280
|
|
Footage
clips
|
|
21
|
|
|
21
|
|
|
20
|
|
|
19
|
|
|
18
|
|
|
17
|
|
|
16
|
|
|
15
|
|
Revenue by Sales
Channel and Billings(7)
|
|
|
|
Three Months
Ended
|
|
|
3/31/21
|
|
12/31/20
|
|
9/30/20
|
|
6/30/20
|
|
3/31/20
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
|
(in millions)
|
E-commerce
revenue
|
|
$
|
118.4
|
|
|
$
|
111.8
|
|
|
$
|
102.8
|
|
|
$
|
98.2
|
|
|
$
|
99.7
|
|
|
$
|
100.9
|
|
|
$
|
96.2
|
|
|
$
|
97.0
|
|
Enterprise
revenue
|
|
64.9
|
|
|
69.1
|
|
|
62.4
|
|
|
61.1
|
|
|
61.5
|
|
|
65.5
|
|
|
62.8
|
|
|
64.7
|
|
Total
revenue
|
|
$
|
183.3
|
|
|
$
|
180.9
|
|
|
$
|
165.2
|
|
|
$
|
159.2
|
|
|
$
|
161.3
|
|
|
$
|
166.4
|
|
|
$
|
159.1
|
|
|
$
|
161.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in total
deferred revenue
|
|
$
|
3.8
|
|
|
$
|
5.2
|
|
|
$
|
6.4
|
|
|
$
|
(0.7)
|
|
|
$
|
(3.0)
|
|
|
$
|
4.4
|
|
|
$
|
0.4
|
|
|
$
|
(0.2)
|
|
Total
billings
|
|
$
|
187.1
|
|
|
$
|
186.1
|
|
|
$
|
171.7
|
|
|
$
|
158.6
|
|
|
$
|
158.2
|
|
|
$
|
170.8
|
|
|
$
|
159.5
|
|
|
$
|
161.5
|
|
____________________________________________________________________________
|
(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 custom content and downloads of
content that are offered to customers for no charge, including our
free image of the week.
|
(5)
|
Revenue per download
is defined as the amount of revenue recognized in a given period
divided by the number of paid downloads in that period excluding
revenue from custom content and the impact of revenue that is not
derived from or associated with content licenses.
|
(6)
|
Represents approved
images (photographs, vectors and illustrations) and footage (in
number of clips) in our library on shutterstock.com at the end of
the period. This collection metric excludes content that is not
uploaded directly to our site but is available for license by our
customers through an application program interface, custom content
and certain content that may be licensed for editorial use
only.
|
(7)
|
Certain amounts in
the table may not foot due to rounding.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/shutterstock-reports-first-quarter-2021-financial-results-301277258.html
SOURCE Shutterstock, Inc.