Shutterstock (SSTK) Misses Q2 EPS by 2c, Slight Beat on Revenues; Offers FY Revenue Views

Shutterstock (NYSE: SSTK) reported Q2 EPS of $0.30, $0.02 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $156.6 million versus the consensus estimate of $156.44 million.

Commenting on the Company's performance, founder and CEO Jon Oringer said "We continued to see strong results as we closed out the first half of the year, including an acceleration of our organic revenue growth and improvements in cost management as compared to both the prior year and the first quarter of this year. The investments we have made in our technology and product offerings over the past several years are yielding promising operational and financial returns. We are especially pleased to see a return to double-digit growth in our e-commerce sales channel with the second quarter delivering the strongest growth in that channel since the fourth quarter of 2015. We are focused on continuing to execute on our key strategic initiatives and to improve efficiency of operating costs, which we expect will result in sustained growth and improved profitability.

"This quarter we also celebrated the fifteenth anniversary of the Company. Since the launch of Shutterstock, more than 450,000 photographers, artists and designers have become contributors to our platform, and those contributors have earned nearly $650 million from their content being licensed. We continue to work to drive sustained customer and contributor engagement by focusing on enhancing and improving our technologies and products to put the right content and workflow tools in the hands of our customers today and in the future."

FINANCIAL OUTLOOK

The Company's current expectations for the full year 2018, excluding the contribution of Webdam, remain unchanged as follows:

• Revenue of $625 - $635 million, representing growth of approximately 15% - 17%.
• Adjusted EBITDA of $105 - $110 million, representing growth of approximately 19% - 25%.
• Income from Operations of $30 - $35 million.
• Non-cash equity-based compensation expense of approximately $28 million.
• Capital expenditures, including capitalized labor, of approximately $48 million.
• Effective tax rate in mid-20's%.

GUIDANCE:

Shutterstock sees FY2018 revenue of $625-635 million.

For earnings history and earnings-related data on Shutterstock (SSTK) click here.

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