NEW YORK, Feb. 13, 2020
/PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the
"Company"), a leading global technology company offering a creative
platform for high-quality content, tools and services, today
announced financial results for the fourth quarter and full year
ended December 31, 2019.
Commenting on the Company's performance, founder and CEO
Jon Oringer said, "We ended 2019
with solid performance, achieving profitable revenue growth,
generating significant cash flow and filling some key leadership
roles. We also demonstrated the strong network effect of our
platform, with our contributor base reaching a milestone of over
$1 billion in earnings paid.
"We have a consistent and unique track record of profitable
growth and robust cash flow generation. With our strong balance
sheet and desire to return value to our shareholders, we are very
pleased to announce that for the first time in our history as a
public company, our board has authorized a quarterly cash dividend
of $0.17 per share, effective
beginning this quarter. Historically, we have maintained a
significant cash balance for investment in our business and
strategic opportunities and intend to continue to do so in the
future, while delivering long-term value to our shareholders."
Fourth Quarter 2019 highlights as compared to Fourth Quarter
2018:
Key Operating Metrics
- Paid downloads increased 2% to 47.7 million.
- Revenue per download increased 1% to $3.44.
- Image collection expanded 30% to 314 million images.
- Footage collection expanded 30% to 17 million footage
clips.
Financial Highlights
- Revenue increased 3% to $166.4
million. On a constant currency basis, revenue increased
3%.
- Net income decreased 71% to $4.4
million.
- Adjusted EBITDA decreased 29% to $24.1
million.
- Net income per diluted share decreased by $0.30 to $0.12.
- Adjusted net income per diluted share decreased by $0.33 to $0.26.
Full Year 2019 highlights as compared to Full Year
2018:
Key Operating
Metrics
- Paid downloads increased 5% to 187.8 million.
- Revenue per download increased 1% to $3.43.
Financial Highlights
- Revenue increased 4% to $650.5
million. On a constant currency basis, revenue increased
6%.
- Net income decreased 63% to $20.1
million.
- Adjusted EBITDA decreased 8% to $96.3
million.
- Net income per diluted share decreased by $0.97 to $0.57.
- Adjusted net income per diluted share decreased by $0.34 to $1.23.
FOURTH QUARTER RESULTS
Revenue
Fourth quarter revenue of $166.4 million increased $4.3 million or 3% as compared to 2018. Revenue
generated through our E-commerce sales channel increased 6% as
compared to the fourth quarter of 2018, to $100.9 million, and represented 61% of total
revenue in the fourth quarter of 2019. Revenue from our Enterprise
sales channel decreased 2% as compared to the fourth quarter of
2018, to $65.5 million, and
represented 39% of fourth quarter revenue in 2019. Foreign currency
fluctuations did not have a significant impact on fourth quarter
revenue.
Net income and Income per diluted share
Net income of $4.4 million,
decreased $10.6 million as compared
to $14.9 million for the fourth
quarter in 2018. Net income per diluted share was $0.12, as compared to $0.42 for the same period in 2018. This decrease
is primarily due to a reduction in income from operations in the
fourth quarter of 2019 caused by higher spending in performance
marketing initiatives and higher general and administrative
expenses, largely attributable to investments made across cyber
security, data science and analytics, and technology spend.
Adjusted net income per diluted share was $0.26 as compared to $0.59 for the fourth quarter of 2018, a decrease
of 56%.
Adjusted EBITDA
Adjusted EBITDA of $24.1 million
for the fourth quarter of 2019 decreased $9.8 million, or 29%, as compared to the
fourth quarter of 2018, driven primarily by sales and marketing
expenses which increased due to higher spending in performance
marketing initiatives and higher general and administrative
expenses, largely attributable to investments made across cyber
security, data science and analytics, and technology spend.
FULL YEAR RESULTS
Revenue
Full year revenue of $650.5 million increased $27.3 million or 4% as compared to 2018, or
6% on a constant currency basis. Revenue generated through
our E-commerce sales channel increased 7% as compared to the full
year 2018, to $392.2 million, or
9% on a constant currency basis, and represented 60% of total
revenue in 2019. Revenue from our Enterprise sales channel
increased 1% as compared to 2018, to $258.3 million, or 3% on a constant currency
basis, and represented 40% of total revenue in 2019.
Net income and Income per diluted share
Net income of $20.1 million
decreased $34.6 million as compared
to $54.7 million for the full year
2018. Net income per diluted share was $0.57 as compared to $1.54 for the full year 2018. This decrease is
primarily due to a reduction in income from operations during 2019
caused by higher spending in performance marketing initiatives and
higher general and administrative expenses, largely attributable to
investments made across cyber security, data science and analytics,
and technology spend and a gain recognized in 2018 on the sale of
Webdam of $27.6 million, or
$0.78 per diluted share, net of tax,
partially offset by a 2018 impairment charge of $4.9 million, or $0.14 per diluted share, net of tax, related to
our long-term investment in SilverHub Media Limited.
Adjusted net income per diluted share of $1.23 decreased by $0.34, as compared to $1.57 for the full year 2018.
Adjusted EBITDA
Adjusted EBITDA of $96.3 million for 2019 decreased
$8.8 million or 8% as compared
to the full year 2018, driven primarily by sales and marketing
expenses which increased due to higher spending in performance
marketing initiatives and higher general and administrative
expenses, largely attributable to investments made across cyber
security, data science and analytics, and technology spend.
LIQUIDITY
Our cash and cash equivalents increased by $72.4 million to $303.3 million at December 31, 2019, as
compared with $230.9 million at
December 31, 2018. This increase was driven by $102.6 million of net cash provided by our
operating activities, partially offset by $27.2 million used in investing activities and
$1.7 million used in financing
activities.
Free cash flow was $73.2 million
for 2019, an increase of $9.7 million
from 2018. This change was primarily driven by lower capital
expenditures.
QUARTERLY CASH DIVIDEND
On February 11, 2020, the Board of
Directors approved the initiation of a quarterly cash dividend and
declared a dividend of $0.17 per
share of outstanding common stock, payable on March 19, 2020 to stockholders of record at the
close of business on March 5, 2020.
We currently expect to continue to pay comparable cash dividends on
a quarterly basis in the future, subject to the final determination
of our Board of Directors.
OPERATING METRICS
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(in millions, except revenue per download)
|
|
Paid downloads
(during the period)(1)
|
|
47.7
|
|
|
46.8
|
|
|
187.8
|
|
|
179.6
|
|
|
Revenue per download
(during the period) (2)
|
|
$3.44
|
|
|
$3.40
|
|
|
$3.43
|
|
|
$3.40
|
|
|
Content in our
collection (end of period)(3):
|
|
|
|
|
|
|
|
|
|
Images
|
|
314
|
|
|
242
|
|
|
314
|
|
|
242
|
|
|
Footage
clips
|
|
17
|
|
|
13
|
|
|
17
|
|
|
13
|
|
|
(1) Paid downloads is
the number of downloads that our customers make in a given period
of our photographs, vectors, illustrations, footage or music
tracks. Paid downloads exclude custom content, re-downloads
of content that a customer has downloaded in the past (which do not
generate incremental revenue or contributor royalty expense) and
downloads of content that are offered to customers for no charge,
including our free image of the week.
|
|
|
(2) 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.
|
|
|
(3) Represents images
(photographs, vectors and illustrations) and footage (in number of
clips) available to customers for commercial license on
shutterstock.com at the end of the period. We exclude content from
this collection metric 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.
|
FINANCIAL OUTLOOK
The Company's current expectations for full year 2020, are as
follows:
- Revenue of $665 million to
$690 million, representing growth of
2% to 6%.
- Adjusted EBITDA of between $100
million to $107 million,
representing growth of 4% to 11%.
- Adjusted net income per diluted share of between $1.42 and $1.58,
representing growth of 15% to 28%.
NON-GAAP FINANCIAL MEASURES
In addition to reporting results in accordance with United States generally accepted accounting
principles (GAAP), Shutterstock also refers to adjusted EBITDA,
adjusted net income, revenue growth (including by distribution
channel) on a constant currency basis, revenue excluding the impact
of Webdam (including on a constant currency basis), adjusted EBITDA
margin 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, charges related to
the impairment of a long-term investment asset, expenses related to
long-term incentives and contingent consideration related to
acquisitions, interest income and expense, income taxes and the
gain on sale of Webdam; adjusted net income as net income adjusted
for the impact of non-cash equity-based compensation, the
amortization of acquisition-related intangible assets, expenses
related to long-term incentives and contingent consideration
related to acquisitions, the gain on sale of Webdam, charges
related to the impairment of a long-term investment asset and the
estimated tax impact of such adjustments; 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; revenue excluding the
impact of Webdam as total Company revenue for each period presented
less the amount of revenue generated by the Webdam business during
that period; revenue growth excluding the impact of Webdam on a
constant currency basis as total Company revenue for each period
presented, less the amount of revenue generated by the Webdam
business during that period utilizing fixed exchange rates for
translating foreign currency revenues for both periods; adjusted
EBITDA margin as the ratio of adjusted EBITDA to revenue; 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 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 net income, revenue growth (including by distribution
channel) on a constant currency basis, revenue excluding the impact
of Webdam (including on a constant currency basis), adjusted EBITDA
margin and free cash flow are useful to investors to provide them
with disclosures of Shutterstock's operating results on the same
basis as that used by management. Additionally, management believes
that adjusted EBITDA, adjusted EBITDA margin and adjusted net
income 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; revenue growth (including by distribution
channel) on a constant currency basis provides useful information
to investors by eliminating the effect of foreign currency
fluctuations that are not directly attributable to Shutterstock's
operating performance; and revenue excluding the impact of Webdam
(including on a constant currency basis, expressed as a percentage)
provide useful information to investors by eliminating the impact
of a historical revenue source that is not part of the Company's
current business and, as applicable, also provides useful
information to investors by eliminating the effect of foreign
currency fluctuations that are not directly attributable to
Shutterstock's ongoing business. Additionally, management believes
that providing these non-GAAP financial measures enhances the
comparability for investors in assessing Shutterstock's financial
reporting. 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 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 net income, revenue growth
(including by distribution channel) on a constant currency basis,
revenue excluding the impact of Webdam (including on a constant
currency basis), adjusted EBITDA margin and free cash flow, in
conjunction with GAAP financial measures, as an integral part of
managing the business and to: (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.
A reconciliation of the differences between adjusted EBITDA,
adjusted net income, revenue excluding the impact of Webdam and
free cash flow, and the most comparable financial measures
calculated and presented in accordance with GAAP, is presented
under the heading "Reconciliation of Non-GAAP Financial Information
to GAAP" 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 fourth quarter and full year
financial results during a teleconference today, February 13,
2020, 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#
8793299. 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 February 20, 2020 in
the U.S. at (855) 859-2056 or outside the U.S. at (404) 537-3406
with the conference ID# 8793299.
Additional investor information can be accessed at
http://investor.shutterstock.com.
ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK), directly and through
its group subsidiaries, is a leading global provider of
high-quality licensed photographs, vectors, illustrations, videos
and music to businesses, marketing agencies and media organizations
around the world. Working with its growing community of over 1
million contributors, Shutterstock adds hundreds of thousands of
images each week, and currently has more than 310 million images
and more than 17 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 Bigstock, a
value-oriented stock media offering; Shutterstock Custom, a custom
content creation platform; Offset, a high-end image collection;
PremiumBeat, a curated royalty-free music library; and Shutterstock
Editorial, a premier source of editorial images for the world's
media.
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, future
dividends, new or planned features, products or services,
management strategies and Shutterstock's expectations regarding
financial outlook, future growth and profitability. You can
identify forward-looking statements by words such as "may," "will,"
"would," "should," "could," "expect," "anticipate," "believe,"
"estimate," "intend," "plan" 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 digital 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; general economic and political
conditions worldwide; 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 we 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
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
166,371
|
|
|
$
|
162,072
|
|
|
$
|
650,523
|
|
|
$
|
623,250
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
71,797
|
|
|
68,829
|
|
|
278,176
|
|
|
267,671
|
|
|
Sales and
marketing
|
|
47,182
|
|
|
43,034
|
|
|
181,730
|
|
|
166,448
|
|
|
Product
development
|
|
15,103
|
|
|
11,689
|
|
|
57,216
|
|
|
58,897
|
|
|
General and
administrative
|
|
26,486
|
|
|
22,881
|
|
|
113,246
|
|
|
97,782
|
|
|
Total operating
expenses
|
|
160,568
|
|
|
146,433
|
|
|
630,368
|
|
|
590,798
|
|
|
Income from
operations
|
|
5,803
|
|
|
15,639
|
|
|
20,155
|
|
|
32,452
|
|
|
Gain on Sale of
Webdam
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,613
|
|
|
Other income /
(expense), net
|
|
2,816
|
|
|
1,048
|
|
|
4,761
|
|
|
(4,952)
|
|
|
Income before income
taxes
|
|
8,619
|
|
|
16,687
|
|
|
24,916
|
|
|
66,113
|
|
|
Provision for income
taxes
|
|
4,266
|
|
|
1,774
|
|
|
4,808
|
|
|
11,426
|
|
|
Net income
|
|
$
|
4,353
|
|
|
$
|
14,913
|
|
|
$
|
20,108
|
|
|
$
|
54,687
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
|
$
|
0.43
|
|
|
$
|
0.57
|
|
|
$
|
1.57
|
|
|
Diluted
|
|
$
|
0.12
|
|
|
$
|
0.42
|
|
|
$
|
0.57
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
35,478
|
|
|
35,047
|
|
|
35,285
|
|
|
34,935
|
|
|
Diluted
|
|
35,786
|
|
|
35,421
|
|
|
35,581
|
|
|
35,420
|
|
|
Shutterstock, Inc.
Consolidated
Balance Sheets
(In thousands,
except par value amount)
(unaudited)
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
303,261
|
|
|
$
|
230,852
|
|
|
Accounts receivable,
net
|
|
47,016
|
|
|
41,028
|
|
|
Prepaid expenses and
other current assets
|
|
26,703
|
|
|
34,841
|
|
|
Total current
assets
|
|
376,980
|
|
|
306,721
|
|
|
Property and
equipment, net
|
|
58,834
|
|
|
76,188
|
|
|
Right-of-use
assets
|
|
45,453
|
|
|
—
|
|
|
Intangibles assets,
net
|
|
26,669
|
|
|
29,540
|
|
|
Goodwill
|
|
88,974
|
|
|
88,576
|
|
|
Deferred tax assets,
net
|
|
14,387
|
|
|
12,375
|
|
|
Other
assets
|
|
19,215
|
|
|
18,088
|
|
|
Total
assets
|
|
$
|
630,512
|
|
|
$
|
531,488
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
|
6,104
|
|
|
$
|
7,212
|
|
|
Accrued
expenses
|
|
53,864
|
|
|
51,385
|
|
|
Contributor royalties
payable
|
|
25,193
|
|
|
22,971
|
|
|
Deferred
revenue
|
|
141,922
|
|
|
139,604
|
|
|
Other
liabilities
|
|
18,811
|
|
|
2,131
|
|
|
Total current
liabilities
|
|
245,894
|
|
|
223,303
|
|
|
Lease
liabilities
|
|
47,313
|
|
|
—
|
|
|
Other non-current
liabilities
|
|
9,160
|
|
|
21,518
|
|
|
Total
liabilities
|
|
302,367
|
|
|
244,821
|
|
|
Commitment and
contingencies
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.01
par value; 200,000 shares authorized; 38,055 and 37,618 shares
issued and 35,497 and 35,060 shares outstanding as of
December 31, 2019 and
December 31, 2018, respectively
|
|
381
|
|
|
376
|
|
|
Treasury stock, at
cost; 2,558 shares as of December 31, 2019 and
December 31, 2018
|
|
(100,027)
|
|
|
(100,027)
|
|
|
Additional paid-in
capital
|
|
312,824
|
|
|
291,710
|
|
|
Accumulated other
comprehensive loss
|
|
(6,220)
|
|
|
(6,471)
|
|
|
Retained
earnings
|
|
121,187
|
|
|
101,079
|
|
|
Total stockholders'
equity
|
|
328,145
|
|
|
286,667
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
630,512
|
|
|
$
|
531,488
|
|
|
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, revenue excluding the impact
of Webdam (including on a constant currency basis) 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. We caution 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.
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Net
income
|
|
$
|
4,353
|
|
|
$
|
14,913
|
|
|
$
|
20,108
|
|
|
$
|
54,687
|
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
12,604
|
|
|
11,718
|
|
|
49,915
|
|
|
45,652
|
|
|
Non-cash equity-based
compensation
|
|
4,931
|
|
|
5,875
|
|
|
22,815
|
|
|
23,869
|
|
|
Other adjustments,
net (1)
|
|
(2,054)
|
|
|
(346)
|
|
|
(1,332)
|
|
|
8,093
|
|
|
Provision for income
taxes
|
|
4,266
|
|
|
1,774
|
|
|
4,808
|
|
|
11,426
|
|
|
Gain on Sale of
Webdam
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,613)
|
|
|
Adjusted
EBITDA
|
|
$
|
24,100
|
|
|
$
|
33,934
|
|
|
$
|
96,314
|
|
|
$
|
105,114
|
|
|
Adjusted EBITDA
margin
|
|
14.5
|
%
|
|
20.9
|
%
|
|
14.8
|
%
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Net income
|
|
$
|
4,353
|
|
|
$
|
14,913
|
|
|
$
|
20,108
|
|
|
$
|
54,687
|
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Non-cash equity-based
compensation
|
|
4,931
|
|
|
5,875
|
|
|
22,815
|
|
|
23,869
|
|
|
Tax effect of
non-cash equity-based compensation (2)
|
|
(1,159)
|
|
|
(1,337)
|
|
|
(5,363)
|
|
|
(5,434)
|
|
|
Acquisition-related
amortization expense
|
|
704
|
|
|
906
|
|
|
4,691
|
|
|
3,841
|
|
|
Tax effect of
acquisition-related amortization expense (2)
|
|
(165)
|
|
|
(206)
|
|
|
(1,034)
|
|
|
(874)
|
|
|
Acquisition-related
long-term incentives and contingent consideration
|
|
762
|
|
|
702
|
|
|
3,430
|
|
|
3,141
|
|
|
Tax effect of
acquisition-related long-term incentives and contingent
consideration (2)
|
|
(202)
|
|
|
(238)
|
|
|
(910)
|
|
|
(832)
|
|
|
Gain on Sale of
Webdam
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,613)
|
|
|
Tax effect of gain on
Sale of Webdam (2)
|
|
—
|
|
|
263
|
|
|
—
|
|
|
10,996
|
|
|
Impairment of
long-term investment asset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,881
|
|
|
Tax effect of
impairment of long-term investment asset (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(999)
|
|
|
Adjusted net
income
|
|
$
|
9,224
|
|
|
$
|
20,878
|
|
|
$
|
43,737
|
|
|
$
|
55,663
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
diluted share
|
|
$
|
0.12
|
|
|
$
|
0.42
|
|
|
$
|
0.57
|
|
|
$
|
1.54
|
|
|
Adjusted net income
per diluted share
|
|
$
|
0.26
|
|
|
$
|
0.59
|
|
|
$
|
1.23
|
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares
|
|
35,786
|
|
|
35,421
|
|
|
35,581
|
|
|
35,420
|
|
|
(1)
|
Other adjustments,
net includes foreign currency transaction gains and losses, charges
related to the impairment of a long-term investment asset, expenses
related to long-term incentives and contingent consideration
related to acquisitions, and interest income and
expense.
|
|
|
|
(2)
|
Tax effect reflects
the estimated impact of the adjustment on the provision for income
taxes.
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Total
Revenues
|
|
$
|
166,371
|
|
|
$
|
162,072
|
|
|
$
|
650,523
|
|
|
$
|
623,250
|
|
|
Less: Revenue from
the Webdam business(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,711)
|
|
|
Revenue excluding the
impact of Webdam
|
|
$
|
166,371
|
|
|
$
|
162,072
|
|
|
$
|
650,523
|
|
|
$
|
620,539
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
growth
|
|
3
|
%
|
|
7
|
%
|
|
4
|
%
|
|
12
|
%
|
|
Revenue growth on
a constant currency basis
|
|
3
|
%
|
|
8
|
%
|
|
6
|
%
|
|
11
|
%
|
|
Revenue growth
excluding the impact of Webdam on a constant
currency basis
|
|
3
|
%
|
|
11
|
%
|
|
6
|
%
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
E-commerce
revenues
|
|
$
|
100,902
|
|
|
$
|
95,564
|
|
|
$
|
392,241
|
|
|
$
|
365,730
|
|
|
Revenue growth:
E-commerce
|
|
6
|
%
|
|
9
|
%
|
|
7
|
%
|
|
10
|
%
|
|
Revenue growth:
E-commerce on a constant currency basis
|
|
6
|
%
|
|
10
|
%
|
|
9
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
Enterprise
revenues
|
|
$
|
65,469
|
|
|
$
|
66,508
|
|
|
$
|
258,282
|
|
|
$
|
254,809
|
|
|
Revenue growth:
Enterprise
|
|
(2)
|
%
|
|
12
|
%
|
|
1
|
%
|
|
22
|
%
|
|
Revenue growth:
Enterprise on a constant currency basis
|
|
—
|
%
|
|
13
|
%
|
|
3
|
%
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Net cash provided by
operating activities
|
|
$
|
25,626
|
|
|
$
|
33,685
|
|
|
$
|
102,646
|
|
|
$
|
102,202
|
|
|
Capital
expenditures
|
|
(6,534)
|
|
|
(5,344)
|
|
|
(26,081)
|
|
|
(34,890)
|
|
|
Content
acquisition
|
|
(1,448)
|
|
|
(1,016)
|
|
|
(3,344)
|
|
|
(3,838)
|
|
|
Free cash
flow
|
|
$
|
17,644
|
|
|
$
|
27,325
|
|
|
$
|
73,221
|
|
|
$
|
63,474
|
|
|
(1)
|
On February 26, 2018,
the Company completed the Sale of Webdam. 2018 amounts include
revenue earned during the period from January 1, 2018 through
February 26, 2018.
|
|
Shutterstock, Inc.
Supplemental
Financial Data
(unaudited)
|
|
|
Historical
Operating Metrics
|
|
|
|
Three Months
Ended
|
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
3/31/19
|
|
12/31/18
|
|
9/30/18
|
|
6/30/18
|
|
3/31/18
|
|
12/31/17
|
|
|
(in millions, except revenue per download)
|
|
Number of paid
downloads
|
|
47.7
|
|
|
46.3
|
|
|
46.6
|
|
|
47.2
|
|
|
46.8
|
|
|
43.9
|
|
|
45.2
|
|
|
43.7
|
|
|
43.9
|
|
|
Revenue per download
(1)(5)
|
|
$
|
3.44
|
|
|
$
|
3.40
|
|
|
$
|
3.44
|
|
|
$
|
3.42
|
|
|
$
|
3.40
|
|
|
$
|
3.40
|
|
|
$
|
3.41
|
|
|
$
|
3.40
|
|
|
$
|
3.33
|
|
|
Content in our
collection (end of period): (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Images
|
|
314
|
|
|
297
|
|
|
280
|
|
|
260
|
|
|
242
|
|
|
221
|
|
|
204
|
|
|
187
|
|
|
170
|
|
|
Footage
|
|
17
|
|
|
16
|
|
|
15
|
|
|
14
|
|
|
13
|
|
|
12
|
|
|
11
|
|
|
10
|
|
|
9
|
|
|
|
|
Historical Revenue
by Sales Channel(3)
|
|
|
|
Three Months
Ended
|
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
3/31/19
|
|
12/31/18
|
|
9/30/18
|
|
6/30/18
|
|
3/31/18
|
|
12/31/17
|
|
|
(in millions)
|
|
E-commerce
|
|
$
|
100.9
|
|
|
$
|
96.2
|
|
|
$
|
97.0
|
|
|
$
|
98.1
|
|
|
$
|
95.6
|
|
|
$
|
88.7
|
|
|
$
|
91.7
|
|
|
$
|
89.7
|
|
|
$
|
87.8
|
|
|
Enterprise
|
|
65.5
|
|
|
62.8
|
|
|
64.7
|
|
|
65.2
|
|
|
66.5
|
|
|
62.9
|
|
|
64.9
|
|
|
60.6
|
|
|
59.3
|
|
|
Other(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
4.7
|
|
|
Total
Revenue(5)
|
|
$
|
166.4
|
|
|
$
|
159.1
|
|
|
$
|
161.7
|
|
|
$
|
163.3
|
|
|
$
|
162.1
|
|
|
$
|
151.6
|
|
|
$
|
156.6
|
|
|
$
|
153.0
|
|
|
$
|
151.8
|
|
|
(1)
|
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.
|
|
|
|
(2)
|
Images (photographs,
vectors and illustrations) and footage available on
shutterstock.com at the end of the period. We exclude certain
content available to customers, including custom content and
content that may be licensed for editorial use only.
|
|
|
|
(3)
|
Certain amounts in
the table may not foot due to rounding.
|
|
|
|
(4)
|
On February 26, 2018,
the Company completed the Sale of Webdam. This table includes
revenue earned during 2017 and for the period from January 1, 2018
through February 26, 2018.
|
|
|
|
(5)
|
Effective January 1,
2018, the Company adopted new revenue recognition accounting
guidance using a modified retrospective approach. Historical
revenue totals reflect those previously reported and have not been
restated. Historical presentation of the allocation of the revenue
by sales channel for periods prior to January 1, 2018 has been
adjusted to conform to current presentation.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/shutterstock-reports-fourth-quarter-and-full-year-2019-financial-results-301004212.html
SOURCE Shutterstock, Inc.