Shutterstock (SSTK) Misses Q1 EPS by 7c, Revenues Miss; FY19 Revenue Mid-Point Guidance Above Consensus

Shutterstock (NYSE: SSTK) reported Q1 EPS of $0.35, $0.07 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $163.3 million versus the consensus estimate of $166.8 million.

Key Operating Metrics

• Paid downloads increased 8.0% to 47.2 million.
• Revenue per download increased 0.6% to $3.42.
• Image collection expanded 39.3% to over 260 million images.
• Video collection expanded 43.7% to over 14 million clips.

Financial Highlights

• Revenue increased 6.7% to $163.3 million. Excluding revenue from Webdam (which was sold in the first quarter of 2018), on a constant currency basis, revenue increased 11.1%.
• Income from operations increased 80.4% to $8.1 million.
• Net income decreased 76.9% to $7.5 million, as a result of the $27.9 million after-tax gain on the sale of Webdam in the first quarter of 2018.
• Adjusted EBITDA increased 15.7% to $25.5 million.
• Diluted EPS decreased 77.2% to $0.21 per share, as a result of the gain on the sale of Webdam in the first quarter of 2018.

Commenting on the Company's performance, founder and CEO Jon Oringer said, "We had a solid start to 2019 with continued profitable revenue growth as well as progress on key strategic initiatives. Our customers are responding positively to the many ways we are enhancing their experience by providing them with the content and tools they need. In the first quarter, we continued ongoing localization efforts, making our contributor site available in 21 languages, and launching in-app contributor registration making it easier than ever to sign up as a Shutterstock contributor. We also improved the performance of our site and continued to make improvements to the customer experience on our platform.

"We also launched our first brand campaign in six years, 'It's not stock, it's Shutterstock,' which is designed to showcase the unparalleled quality and depth of our creative content library and results show that it is resonating with the creative community."

GUIDANCE:

Shutterstock sees FY2019 revenue of $685-695 million, versus the consensus of $687.98 million.

• Revenue of between $685 and $695 million, representing growth of 10% to 12%.
• Adjusted EBITDA of between $118 million and $123 million, representing growth of 12% to 17%.
• Income from operations of between $37 million and $47 million.
• Non-cash equity-based compensation expense of approximately $25 million.
• Capital expenditures, including capitalized labor, of approximately $37 million.
• Effective tax rate in low to mid 20's%.

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

You May Also Be Interested In

• Bristol-Myers Squibb (BMY) stock slips despite earnings beat
• Central Securities (CET) Releases Report to Stockholders
• Merck (MRK) hikes outlook for 2024 as Q1 print beats analyst estimates