NEW
YORK, July 26, 2022 /PRNewswire/ --
Shutterstock, Inc. (NYSE: SSTK) (the "Company"), a leading
global creative platform for transformative brands and media
companies, today announced financial results for the second quarter
ended June 30, 2022.
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive
Officer, said, "With the acquisitions of Pond5 and Splash News and
the release of our Creative Flow suite of workflow applications and
the Creative Flow+ subscription product during the quarter, we made
significant progress on our journey towards becoming a creative
platform that allows our customers to create with confidence.
Despite macro headwinds, we grew revenues 13% on a constant
currency basis driven by our recent acquisitions and supported by
strong growth across a range of solutions in our Enterprise
channel."
Second Quarter 2022 highlights compared to Second Quarter
2021:
Financial
Highlights
- Revenue increased 9% to $206.9
million. On a constant currency basis, revenue increased
13%.
- Income from operations decreased 24% to $25.4 million.
- Net income decreased 34% to $19.4
million.
- Adjusted EBITDA decreased 8% to $48.9
million.
- Net income per diluted share decreased $0.26 to $0.53.
- Adjusted net income per diluted share decreased $0.19 to $0.83.
- Operating cash flows decreased 48% to $36.9 million.
- Free cash flow decreased 65% to $21.6
million.
Key Operating
Metrics
- Subscribers increased 15% to 368,000.
- Subscriber revenue increased 8% to $84.7
million.
- Average revenue per customer increased 1% to $359.
- Paid downloads decreased 3% to 43.4 million.
- Revenue per download increased 7% to $4.46.
- Image collection expanded 9% to over 415 million images.
- Footage collection expanded 18% to over 26 million clips,
excluding Pond5 footage clips.
SHUTTERSTOCK INVESTOR RELATIONS MICRO SITE
Accessible at
content.shutterstock.com/investor-report/index.html.
SECOND QUARTER RESULTS
Revenue
Second quarter revenue of $206.9 million increased $17.0 million or 9% as compared to the second
quarter of 2021. Revenue generated through our E-commerce sales
channel increased 6% as compared to the second quarter of 2021, to
$127.4 million, and represented
62% of total revenue in the second quarter of 2022. E-commerce
revenue growth was primarily driven by revenue generated from our
acquisitions of PicMonkey and Pond5. Revenue from our Enterprise
sales channel increased 15% as compared to the second quarter of
2021, to $79.5 million, and
represented 38% of second quarter revenue in 2022. Enterprise
revenue growth was driven by our multi-asset product offerings and
continued momentum in Shutterstock Studios and Shutterstock
Editorial. Enterprise revenue growth also benefited from our
acquisitions of Pond5 and Splash News.
On a constant currency basis, revenue increased 13% in the
second quarter of 2022 as compared to the second quarter of 2021.
On a constant currency basis, E-commerce and Enterprise revenues
increased by 9% and 19%, respectively, in the second quarter of
2022, as compared to 2021.
Net income and net income per diluted share
Net income of $19.4 million
decreased $10.0 million as compared
to $29.5 million for the second
quarter in 2021. Net income per diluted share was $0.53, as compared to $0.79 for the same period in 2021. This decrease
was due primarily to increases in operating expenses partially
offset by revenue growth in the second quarter of 2022 as compared
to 2021. The increase in operating expenses was driven by higher
acquisition-related amortization expense reported in cost of
revenues, higher marketing expenses and transaction costs incurred
to complete our second quarter 2022 acquisitions.
Adjusted net income per diluted share was $0.83 as compared to $1.02 for the second quarter of 2021, a decrease
of $0.19 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $48.9 million
for the second quarter of 2022 decreased by $4.1 million, or 8%, as compared to the
second quarter of 2021, due primarily to higher operating expenses,
partially offset by increased revenue. The adjusted EBITDA margin
decreased to 23.7% from 27.9% in the second quarter of 2021.
SECOND QUARTER LIQUIDITY
Our cash and cash equivalents decreased by $174.1 million to $84.0 million at June 30, 2022, as
compared with $258.1 million as
of March 31, 2022. This decrease was
driven by $227.8 million used in
investing activities, partially offset by $36.9 million of net cash provided by our
operating activities and $20.2 million provided by financing
activities.
Net cash provided by our operating activities was driven by our
operating income, in addition to changes in the timing of payments
pertaining to operating expenses. Cash used in investing activities
primarily consists of $212.1 million related to our acquisitions
of Pond5 and Splash News and $15.3 million related to capital
expenditures and content acquisition. Cash provided by financing
activities consists primarily of a $50.0 million drawdown from our credit
facility, partially offset by $18.6 million paid for the repurchase of
common stock under our share repurchase program, $8.7 million related to the payment of the
quarterly cash dividend and $2.5 million paid in settlement of tax
withholding obligations related to employee stock-based
compensation awards.
Free cash flow was $21.6 million for the second quarter of
2022, a decrease of $40.1 million from the second quarter of
2021. This change was primarily driven by lower cash flows from
operating activities.
QUARTERLY CASH DIVIDEND
During the three months ended June 30, 2022, the Company
declared and paid cash dividends of $0.24 per common share, or $8.7 million.
On July 18, 2022, the Board of Directors declared a
dividend of $0.24 per share of
outstanding common stock, payable on September 15, 2022 to
stockholders of record at the close of business on
September 1, 2022.
KEY OPERATING METRICS
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
Subscribers (end of
period)(1)
|
|
368,000
|
|
321,000
|
|
368,000
|
|
321,000
|
Subscriber revenue (in
millions)(2)
|
|
$
84.7
|
|
$
78.1
|
|
$
170.1
|
|
$
154.6
|
|
|
|
|
|
|
|
|
|
Average revenue per
customer (last twelve months)(3)
|
|
$
359
|
|
$
356
|
|
$
359
|
|
$
356
|
Paid downloads (in
millions)(4)
|
|
43.4
|
|
44.9
|
|
88.0
|
|
90.7
|
Revenue per
download(5)
|
|
$4.46
|
|
$4.17
|
|
$4.34
|
|
$4.07
|
Content in our
collection (end of period, in millions)(6):
|
|
|
|
|
|
|
|
|
Images
|
|
415
|
|
380
|
|
415
|
|
380
|
Footage
clips
|
|
26
|
|
22
|
|
26
|
|
22
|
_______________________________________________________________________________________________________________________
|
(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. For the
three and six months ended June 30, 2021, subscribers excludes
customers related to our acquisitions of TurboSquid, PicMonkey,
Pond5 and Splash News. For the three and six months ended June 30,
2022, subscribers excludes customers related to PicMonkey, Pond5
and Splash News.
|
|
(2) Subscriber
revenue is defined as the revenue generated from subscribers during
the period. For the three and six months ended June 30, 2021,
subscriber revenue excludes revenues related to our acquisitions of
TurboSquid, PicMonkey, Pond5 and Splash News. For the
three and six months ended June 30, 2022, subscriber revenue
excludes revenues related to PicMonkey, Pond5 and Splash
News.
|
|
(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. For three and six months ended June
30, 2021, average revenue per customer excludes revenues and
customers related to our acquisitions of TurboSquid, PicMonkey,
Pond5 and Splash News. For the three and six months ended June 30,
2022, average revenue per customer excludes revenues and customers
related to PicMonkey, Pond5 and Splash News.
|
|
(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 custom
content, downloads of content that are offered to customers for no
charge, including our free image of the week and downloads
associated with our computer vision 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 custom content, revenue that is not derived from or
associated with content licenses and revenue associated with our
computer vision offering.
|
|
(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.
|
2022 GUIDANCE
The Company's current expectations for the full year 2022,
remain unchanged as follows:
- Revenue of $835 million to
$850 million, representing annual
growth of 8% - 10%.
- Adjusted EBITDA of between $210
million to $217 million.
- Adjusted net income per diluted share of between $3.65 to $3.80.
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 share as adjusted net income divided by weighted average
diluted shares; revenue growth (including by distribution channel)
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 free cash flow
as cash provided by operating activities, adjusted for capital
expenditures, and content acquisition. 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 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 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, revenue growth (including by distribution
channel) on a constant currency basis (expressed as a percentage),
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.
EARNINGS TELECONFERENCE INFORMATION
The Company will discuss its second quarter and full year
financial results during a teleconference today, July 26,
2022, at 8:30 AM ET. The
conference call is being webcast live at the Company's website at
http://investor.shutterstock.com/. The webcast is
listen-only. Those interested in participating in the
question-and-answer session should register using the link
below.
Participants may register for the call here
(https://register.vevent.com/register/BI3879892262844c06939b2a0ed7c0e6a2)
to receive the dial-in numbers and unique PIN to access the call
seamlessly. It is recommended that you join 10 minutes prior to the
event start (although you may register and dial in at any time
during the call).
A webcast replay of the call will be available on the Company's
website beginning on July 26, 2022 at approximately
10:30 AM Eastern Time.
ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK), is a leading global
creative platform for transformative brands 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 2 million contributors,
Shutterstock adds hundreds of thousands of images each week, and
currently has more than 415 million images and more than 26 million
video clips available.
Headquartered in New York City,
Shutterstock has offices around the world and customers in more
than 150 countries. The Company also owns Splash News, the world's
leading entertainment news agency for newsrooms and media companies
worldwide; Pond5, the world's largest video marketplace,
TurboSquid, the world's largest 3D content marketplace; PicMonkey,
a leading online graphic design and image editing platform; Offset,
a high-end image collection; Shutterstock Studios, an end-to-end
custom creative shop; 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
Bigstock, a value-oriented stock media offering.
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. 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, future dividends, our ability to consummate
acquisitions and integrate the businesses we have acquired or may
acquire into our existing operations, new or planned features,
products or services, management strategies, our competitive
position and the COVID-19 pandemic. 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" 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
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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
206,872
|
|
$
189,912
|
|
$
406,004
|
|
$
373,193
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
77,019
|
|
67,757
|
|
146,470
|
|
129,589
|
Sales and
marketing
|
|
54,229
|
|
45,896
|
|
107,558
|
|
87,817
|
Product
development
|
|
17,162
|
|
11,993
|
|
30,788
|
|
22,724
|
General and
administrative
|
|
33,088
|
|
31,041
|
|
63,896
|
|
61,720
|
Total operating
expenses
|
|
181,498
|
|
156,687
|
|
348,712
|
|
301,850
|
Income from
operations
|
|
25,374
|
|
33,225
|
|
57,292
|
|
71,343
|
Other (expense) /
income, net
|
|
(2,661)
|
|
1,323
|
|
(1,903)
|
|
(1,139)
|
Income before income
taxes
|
|
22,713
|
|
34,548
|
|
55,389
|
|
70,204
|
Provision for income
taxes
|
|
3,268
|
|
5,094
|
|
9,372
|
|
11,236
|
Net income
|
|
$
19,445
|
|
$
29,454
|
|
$
46,017
|
|
$
58,968
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.54
|
|
$
0.81
|
|
$
1.27
|
|
$
1.62
|
Diluted
|
|
$
0.53
|
|
$
0.79
|
|
$
1.25
|
|
$
1.58
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
36,123
|
|
36,570
|
|
36,213
|
|
36,453
|
Diluted
|
|
36,578
|
|
37,189
|
|
36,890
|
|
37,218
|
Shutterstock, Inc. Consolidated
Balance Sheets (In thousands, except par value
amount) (unaudited)
|
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
84,046
|
|
$
314,017
|
Accounts receivable,
net of allowance of $2,990 and $1,910
|
|
48,816
|
|
47,707
|
Prepaid expenses and
other current assets
|
|
30,394
|
|
26,491
|
Total current
assets
|
|
163,256
|
|
388,215
|
Property and
equipment, net
|
|
52,549
|
|
48,074
|
Right-of-use
assets
|
|
34,293
|
|
34,570
|
Intangibles assets,
net
|
|
185,860
|
|
123,822
|
Goodwill
|
|
377,654
|
|
219,816
|
Deferred tax assets,
net
|
|
8,709
|
|
10,512
|
Other
assets
|
|
26,247
|
|
26,701
|
Total
assets
|
|
$
848,568
|
|
$
851,710
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
5,889
|
|
$
10,092
|
Accrued
expenses
|
|
84,547
|
|
99,529
|
Contributor royalties
payable
|
|
34,853
|
|
29,004
|
Deferred
revenue
|
|
178,353
|
|
180,979
|
Debt
|
|
50,000
|
|
—
|
Other
liabilities
|
|
14,309
|
|
14,180
|
Total current
liabilities
|
|
367,951
|
|
333,784
|
Deferred tax
liability, net
|
|
4,592
|
|
2,781
|
Lease
liabilities
|
|
37,397
|
|
36,966
|
Other non-current
liabilities
|
|
9,535
|
|
9,697
|
Total
liabilities
|
|
419,475
|
|
383,228
|
Commitment and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.01
par value; 200,000 shares authorized; 39,482 and 39,209 shares
issued and 35,981 and 36,417 shares outstanding as of
June 30, 2022 and
December 31, 2021, respectively
|
|
395
|
|
392
|
Treasury stock, at
cost; 3,501 and 2,792 shares as of June 30, 2022 and
December 31, 2021,
respectively
|
|
(183,800)
|
|
(127,196)
|
Additional paid-in
capital
|
|
370,934
|
|
376,537
|
Accumulated other
comprehensive loss
|
|
(16,619)
|
|
(10,788)
|
Retained
earnings
|
|
258,183
|
|
229,537
|
Total stockholders'
equity
|
|
429,093
|
|
468,482
|
Total liabilities and
stockholders' equity
|
|
$
848,568
|
|
$
851,710
|
Shutterstock, Inc. Consolidated
Statements of Cash Flows (In thousands, except par value
amount) (unaudited)
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
|
$
19,445
|
|
$
29,454
|
|
$
46,017
|
|
$
58,968
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
16,510
|
|
10,152
|
|
31,575
|
|
20,243
|
Deferred
taxes
|
|
(2,360)
|
|
2,215
|
|
(3,602)
|
|
1,782
|
Non-cash equity-based
compensation
|
|
7,043
|
|
9,686
|
|
14,869
|
|
17,896
|
Bad debt
expense
|
|
259
|
|
(313)
|
|
620
|
|
213
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(3,128)
|
|
(164)
|
|
(762)
|
|
(6,056)
|
Prepaid expenses and
other current and non-current assets
|
|
169
|
|
3,414
|
|
(1,207)
|
|
(5,892)
|
Accounts payable and
other current and non-current liabilities
|
|
(2,263)
|
|
6,431
|
|
(28,980)
|
|
6,359
|
Contributor royalties
payable
|
|
2,683
|
|
2,119
|
|
3,713
|
|
1,750
|
Deferred
revenue
|
|
(1,507)
|
|
8,394
|
|
(2,669)
|
|
11,953
|
Net cash provided by
operating activities
|
|
$
36,851
|
|
$
71,388
|
|
$
59,574
|
|
$
107,216
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(9,022)
|
|
(6,789)
|
|
(20,797)
|
|
(15,337)
|
Business combination,
net of cash acquired
|
|
(212,096)
|
|
—
|
|
(212,096)
|
|
(72,165)
|
Asset
acquisitions
|
|
(150)
|
|
—
|
|
(150)
|
|
—
|
Acquisition of
content
|
|
(6,265)
|
|
(2,907)
|
|
(6,999)
|
|
(3,396)
|
Security deposit
payment
|
|
(265)
|
|
(54)
|
|
(281)
|
|
(65)
|
Net cash used in
investing activities
|
|
$
(227,798)
|
|
$
(9,750)
|
|
$
(240,323)
|
|
$
(90,963)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Repurchase of treasury
shares
|
|
(18,565)
|
|
—
|
|
(56,937)
|
|
—
|
Proceeds from exercise
of stock options
|
|
568
|
|
492
|
|
568
|
|
1,801
|
Cash paid related to
settlement of employee taxes related to RSU vesting
|
|
(2,542)
|
|
(7,195)
|
|
(21,038)
|
|
(20,229)
|
Payment of cash
dividend
|
|
(8,665)
|
|
(7,671)
|
|
(17,371)
|
|
(15,317)
|
Proceeds from credit
facility
|
|
50,000
|
|
—
|
|
50,000
|
|
—
|
Payment of debt
issuance costs
|
|
(619)
|
|
—
|
|
(619)
|
|
—
|
Net cash used in
financing activities
|
|
$
20,177
|
|
$
(14,374)
|
|
$
(45,397)
|
|
$
(33,745)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
(3,296)
|
|
(144)
|
|
(3,825)
|
|
(36)
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(174,066)
|
|
47,120
|
|
(229,971)
|
|
(17,528)
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
258,112
|
|
363,926
|
|
314,017
|
|
428,574
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
84,046
|
|
$
411,046
|
|
$
84,046
|
|
$
411,046
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Information:
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
11,034
|
|
$
6,132
|
|
$
12,700
|
|
$
9,495
|
Cash paid for
interest
|
|
90
|
|
—
|
|
90
|
|
—
|
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 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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
|
$
19,445
|
|
$
29,454
|
|
$
46,017
|
|
$
58,968
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
16,510
|
|
10,152
|
|
31,575
|
|
20,243
|
Non-cash equity-based
compensation
|
|
7,043
|
|
9,686
|
|
14,869
|
|
17,896
|
Other adjustments, net
(1)
|
|
2,661
|
|
(1,323)
|
|
1,903
|
|
1,139
|
Provision for income
taxes
|
|
3,268
|
|
5,094
|
|
9,372
|
|
11,236
|
Adjusted
EBITDA
|
|
$
48,927
|
|
$
53,063
|
|
$
103,736
|
|
$
109,482
|
Adjusted EBITDA
margin
|
|
23.7 %
|
|
27.9 %
|
|
25.6 %
|
|
29.3 %
|
_______________________________________________________________________
|
(1) Other adjustments,
net includes unrealized foreign currency transaction gains and
losses, and interest income and expense.
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
|
$
19,445
|
|
$
29,454
|
|
$
46,017
|
|
$
58,968
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Non-cash equity-based
compensation
|
|
7,043
|
|
9,686
|
|
14,869
|
|
17,896
|
Tax effect of non-cash
equity-based compensation (2)
|
|
(1,655)
|
|
(2,276)
|
|
(3,493)
|
|
(4,205)
|
Acquisition-related
amortization expense (3)
|
|
7,110
|
|
1,400
|
|
13,155
|
|
2,499
|
Tax effect of
acquisition-related amortization expense (2)
|
|
(1,671)
|
|
(329)
|
|
(3,092)
|
|
(587)
|
Adjusted net
income
|
|
$
30,272
|
|
$
37,935
|
|
$
67,456
|
|
$
74,571
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share
|
|
$
0.53
|
|
$
0.79
|
|
$
1.25
|
|
$
1.58
|
Adjusted net income per
diluted share
|
|
$
0.83
|
|
$
1.02
|
|
$
1.83
|
|
$
2.00
|
Weighted average
diluted shares
|
|
36,578
|
|
37,189
|
|
36,890
|
|
37,218
|
__________________________________________________________________________
|
(2)
|
Statutory tax rates are
used to calculate the tax effect of the adjustments.
|
(3)
|
Of these amounts, $6.6
million and $0.6 million for the three months ended June 30, 2022
and 2021, respectively, are included within cost of revenue in the
Statements of
Operations. The remainder of acquisition-related amortization
expense is included in general and administrative expense in the
Statements of Operations.
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total
Revenues
|
|
$
206,872
|
|
$
189,912
|
|
$
406,004
|
|
$
373,193
|
|
|
|
|
|
|
|
|
|
Revenue
growth
|
|
9 %
|
|
19 %
|
|
9 %
|
|
16 %
|
Revenue growth on a
constant currency basis
|
|
13 %
|
|
16 %
|
|
12 %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
E-commerce
revenues
|
|
$
127,388
|
|
$
120,715
|
|
$
254,458
|
|
$
239,115
|
Revenue growth:
E-commerce
|
|
6 %
|
|
23 %
|
|
6 %
|
|
21 %
|
Revenue growth:
E-commerce on a constant currency basis
|
|
9 %
|
|
20 %
|
|
9 %
|
|
18 %
|
|
|
|
|
|
|
|
|
|
Enterprise
revenues
|
|
$
79,484
|
|
$
69,197
|
|
$
151,546
|
|
$
134,078
|
Revenue growth:
Enterprise
|
|
15 %
|
|
13 %
|
|
13 %
|
|
9 %
|
Revenue growth:
Enterprise on a constant currency basis
|
|
19 %
|
|
9 %
|
|
16 %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
|
$
36,851
|
|
$
71,388
|
|
$
59,574
|
|
$
107,216
|
Capital
expenditures
|
|
(9,022)
|
|
(6,789)
|
|
(20,797)
|
|
(15,337)
|
Content
acquisition
|
|
(6,265)
|
|
(2,907)
|
|
(6,999)
|
|
(3,396)
|
Free cash
flow
|
|
$
21,564
|
|
$
61,692
|
|
$
31,778
|
|
$
88,483
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
E-commerce
revenue
|
|
$
127,388
|
|
$
120,715
|
|
$
254,458
|
|
$
239,115
|
Enterprise
revenue
|
|
$
79,484
|
|
$
69,197
|
|
$
151,546
|
|
$
134,078
|
Total
revenue
|
|
$
206,872
|
|
$
189,912
|
|
$
406,004
|
|
$
373,193
|
|
|
|
|
|
|
|
|
|
Change in total
deferred revenue(1)
|
|
$
(4,086)
|
|
$
8,305
|
|
$
(6,331)
|
|
$
12,092
|
Total
billings
|
|
$
202,786
|
|
$
198,217
|
|
$
399,673
|
|
$
385,285
|
______________________________________________________________________________
|
(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
|
|
|
6/30/22
|
|
3/31/22
|
|
12/31/21
|
|
9/30/21
|
|
6/30/21
|
|
3/31/21
|
|
12/31/20
|
|
9/30/20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribers (end of
period, in thousands) (1)
|
|
368
|
|
359
|
|
343
|
|
336
|
|
321
|
|
306
|
|
281
|
|
255
|
Subscriber revenue (in
millions) (2)
|
|
$
84.7
|
|
$
85.4
|
|
$
81.4
|
|
$
81.5
|
|
$
78.1
|
|
$
76.5
|
|
$
71.1
|
|
$
67.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
customer (last twelve months) (3)
|
|
$ 359
|
|
$ 355
|
|
$ 368
|
|
$ 361
|
|
$ 356
|
|
$ 342
|
|
$ 333
|
|
$ 328
|
Paid downloads (in
millions) (4)
|
|
43.4
|
|
44.6
|
|
45.0
|
|
44.3
|
|
44.9
|
|
45.8
|
|
45.8
|
|
43.4
|
Revenue per download
(5)
|
|
$
4.46
|
|
$
4.22
|
|
$
4.29
|
|
$
4.20
|
|
$
4.17
|
|
$
3.96
|
|
$
3.91
|
|
$
3.79
|
Content in our
collection (end of period, in millions): (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Images
|
|
415
|
|
405
|
|
400
|
|
390
|
|
380
|
|
370
|
|
360
|
|
350
|
Footage
clips
|
|
26
|
|
25
|
|
24
|
|
23
|
|
22
|
|
21
|
|
21
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-Based
Compensation by expense category
|
|
|
|
|
|
Three Months
Ended
|
($ in
thousands)
|
|
6/30/22
|
|
3/31/22
|
|
12/31/21
|
|
9/30/21
|
|
6/30/21
|
|
3/31/21
|
|
12/31/20
|
|
9/30/20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$ 156
|
|
$ 78
|
|
$ 54
|
|
$ (49)
|
|
$ 194
|
|
$ 164
|
|
$ 155
|
|
$ 125
|
Sales and
marketing
|
|
1,629
|
|
928
|
|
857
|
|
638
|
|
926
|
|
467
|
|
586
|
|
467
|
Product
development
|
|
2,557
|
|
1,781
|
|
2,017
|
|
1,675
|
|
1,799
|
|
1,229
|
|
1,038
|
|
1,263
|
General and
administrative
|
|
2,701
|
|
5,039
|
|
6,612
|
|
6,479
|
|
6,767
|
|
6,350
|
|
8,849
|
|
6,430
|
Total non-cash
equity-based compensation
|
|
$
7,043
|
|
$
7,826
|
|
$
9,540
|
|
$
8,743
|
|
$
9,686
|
|
$
8,210
|
|
$ 10,628
|
|
$
8,285
|
|
Depreciation and
Amortization by expense category
|
|
|
|
Three Months
Ended
|
($ in
thousands)
|
|
6/30/22
|
|
3/31/22
|
|
12/31/21
|
|
9/30/21
|
|
6/30/21
|
|
3/31/21
|
|
12/31/20
|
|
9/30/20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$ 15,172
|
|
$ 13,759
|
|
$ 13,682
|
|
$ 11,343
|
|
$
8,214
|
|
$
8,311
|
|
$
8,679
|
|
$
8,222
|
General and
administrative
|
|
1,338
|
|
1,305
|
|
1,358
|
|
2,146
|
|
1,937
|
|
1,780
|
|
1,560
|
|
1,527
|
Total depreciation and
amortization
|
|
$ 16,510
|
|
$ 15,064
|
|
$ 15,040
|
|
$ 13,489
|
|
$ 10,151
|
|
$ 10,091
|
|
$ 10,239
|
|
$
9,749
|
|
(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. For the
three and six months ended June 30, 2021, subscribers excludes
customers related to our acquisitions of TurboSquid, PicMonkey,
Pond5 and Splash News. For the three and six months ended June 30,
2022, subscribers excludes customers related to PicMonkey, Pond5
and Splash News.
|
|
(2) Subscriber
revenue is defined as the revenue generated from subscribers during
the period. For the three and six months ended June 30, 2021,
subscriber revenue excludes revenues related to our acquisitions of
TurboSquid, PicMonkey, Pond5 and Splash News. For the
three and six months ended June 30, 2022, subscriber revenue
excludes revenues related to PicMonkey, Pond5 and Splash
News.
|
|
(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. For three and six months ended June
30, 2021, average revenue per customer excludes revenues and
customers related to our acquisitions of TurboSquid, PicMonkey,
Pond5 and Splash News. For the three and six months ended June 30,
2022, average revenue per customer excludes revenues and customers
related to PicMonkey, Pond5 and Splash News.
|
|
(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 custom
content, downloads of content that are offered to customers for no
charge, including our free image of the week and downloads
associated with our computer vision 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 custom content, revenue that is not derived from or
associated with content licenses and revenue associated with our
computer vision offering.
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(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.
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View original content to download
multimedia:https://www.prnewswire.com/news-releases/shutterstock-reports-second-quarter-2022-financial-results-301592875.html
SOURCE Shutterstock, Inc.