NEW YORK, April 28, 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 first quarter ended March 31, 2020.
Commenting on the Company's performance, Stan Pavlovsky, the Company's Chief Executive
Officer, said, "Amidst unprecedented economic uncertainty globally,
Shutterstock has remained resilient and strong, providing our
customers with custom services and fresh and relevant content they
need to reach their audiences during this time. We are grateful for
our contributor community, who continue to document the
extraordinary change in our daily lives. Our first quarter results
reflect the strength of the Shutterstock brand. We remain focused
on executing on our 2020 vision, driving long-term value for our
shareholders and are confident that our resilience will make us
stronger in the days and years to come.
I am immensely grateful to our employees for rising to the
challenge and continuing to support our customers and contributors.
On behalf of the Shutterstock community, we would like to thank
those working tirelessly and risking their well-being to support
the global community."
Financial Outlook
"Given the significant uncertainty that remains regarding the
COVID-19 pandemic, including the pace of recovery, the severity of
the impact on the global economy, our customers' ability to
maintain marketing spend, and the resulting difficulty in
forecasting, we are withdrawing the 2020 financial guidance we
previously announced on February 13,
2020.
While revenues have been negatively impacted since the onset of
the pandemic, at current volumes, we expect to produce significant
earnings and free cash flow in 2020, allowing us to continue paying
a quarterly dividend and reinvesting in our business. We are well
positioned financially with $296
million in cash and no debt. Our strong liquidity position
combined with the progress we are making against our margin
enhancement initiatives make us well positioned to meet our
financial objectives when demand returns to historical levels,"
concluded Jarrod Yahes, Chief
Financial Officer.
First Quarter 2020 highlights compared to First Quarter
2019:
Key Operating Metrics
- Paid downloads decreased 1% to 46.8 million.
- Revenue per download remained flat at $3.42.
- Image collection expanded 27% to approximately 330 million
images.
- Video collection expanded 29% to approximately 18 million
clips.
Financial Highlights
- Revenue decreased 1% to $161.3
million. On a constant currency basis, revenue decreased
0.5%.
- Income from operations decreased by 29% to $5.8 million.
- Net income decreased by 43% to $4.3
million.
- Adjusted EBITDA decreased 14% to $22.1
million.
- Diluted EPS decreased by $0.09 to
$0.12 per share.
FIRST QUARTER RESULTS
Revenue
First quarter revenue of $161.3 million decreased $2.0 million or 1% as compared to 2019. Revenue
generated through our E-commerce sales channel increased 2% as
compared to the first quarter of 2019, to $99.7 million, and represented 62% of total
revenue in the first quarter of 2020. Revenue from our Enterprise
sales channel decreased 6% as compared to the first quarter of
2019, to $61.5 million, and
represented 38% of first quarter revenue in 2020. The decline in
our Enterprise revenue was expected, as the Company continues with
its sales force optimization initiatives. In addition, revenues
were impacted unfavorably by COVID-19, as customers' advertising
spending slowed during the quarter.
On a constant currency basis, revenue decreased 0.5% in the
first quarter of 2020 as compared to the first quarter of 2019.
Foreign currency fluctuations did not have a significant impact on
first quarter E-commerce revenues. On a constant currency basis,
Enterprise revenue decreased by approximately 5% in the first
quarter of 2020, as compared to the first quarter of 2019.
Net income and Income per diluted share
Net income of $4.3 million,
decreased $3.2 million as compared to
$7.5 million for the first quarter in
2019. Net income per diluted share was $0.12, as compared to $0.21 for the same period in 2019. This decrease
is primarily due to lower revenues from our Enterprise business and
higher general and administrative expenses in the first quarter of
2020.
Adjusted net income per diluted share was $0.26 as compared to $0.35 for the first quarter of 2019, a decrease
of $0.09 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $22.1 million
for the first quarter of 2020 decreased $3.5 million, or 14%, as compared to the
first quarter of 2019, driven primarily by lower revenues from our
Enterprise business and higher general and administrative expenses.
The adjusted EBITDA margin declined to 13.7% from 15.6% in the
first quarter of 2019.
LIQUIDITY
Our cash and cash equivalents decreased by $7.6 million to $295.7 million at March 31, 2020, as
compared with $303.3 million at
December 31, 2019. This decrease was driven by $6.9 million of net cash provided by our
operating activities, partially offset by $8.4 million used in investing activities and
$7.8 million used in financing
activities.
Net cash provided by our operating activities was affected by a
one-time $7.8 million payment
related to long-term incentives made in conjunction with our 2017
acquisition of Flashstock Technology, Inc. ("Flashstock"), in
addition to lower revenues and unfavorable impacts due to changes
in the timing of payments pertaining to operating expenses. Cash
used in financing activities includes $6.0
million related to the payment of the quarterly cash
dividend.
Free cash flow was $6.2 million
for 2020, a decrease of $5.7 million
from 2019. This change was primarily driven by lower revenues and
changes in timing of payments pertaining to operating expenses.
Free cash flow for the three months ended March 31, 2020 is
presented excluding a nonrecurring payment of $7.8 million with respect to long-term
incentives related to our 2017 acquisition of Flashstock.
QUARTERLY CASH DIVIDEND
We declared and paid cash dividends of $0.17 per common share, or $6.0 million during the three months ended
March 31, 2020.
On April 20, 2020, the Board of Directors declared a
dividend of $0.17 per share of
outstanding common stock, payable on June 18, 2020 to
stockholders of record at the close of business on June 4,
2020.
OPERATING
METRICS
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
|
|
(in millions, except revenue per download)
|
Paid downloads
(during the period)(1)
|
|
46.8
|
|
|
47.2
|
|
Revenue per download
(during the period) (2)
|
|
$3.42
|
|
|
$3.42
|
|
Content in our
collection (end of period)(3):
|
|
|
|
|
Images
|
|
330
|
|
|
260
|
|
Footage
clips
|
|
18
|
|
|
14
|
|
|
(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.
|
2020 GUIDANCE UPDATE
Due to the unprecedented nature of the COVID-19 pandemic, and
the uncertainty with respect to the severity and duration of its
impacts to the Company's business, the Company has withdrawn its
2020 financial guidance previously announced on February 13, 2020.
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, 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, expenses related to
long-term incentives and contingent consideration related to
acquisitions, interest income and expense and income taxes;
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 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; 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, content acquisition,
and, with respect to the three months ended March 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 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, 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; and 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 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 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 net income, revenue growth
(including by distribution channel) 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 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.
EARNINGS TELECONFERENCE INFORMATION
The Company will discuss its first quarter and full year
financial results during a teleconference today, April 28,
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#
4398652. 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 5, 2020 in the
U.S. at (855) 859-2056 or outside the U.S. at (404) 537-3406 with
the conference ID# 4398652.
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 330 million images
and more than 18 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, Shutterstock's expectations regarding
financial outlook, future growth and profitability and statements
regarding the COVID-19 pandemic. 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 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 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
March 31,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Revenue
|
|
$
|
161,285
|
|
|
$
|
163,332
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Cost of
revenue
|
|
69,123
|
|
|
69,218
|
|
Sales and
marketing
|
|
42,660
|
|
|
44,446
|
|
Product
development
|
|
13,069
|
|
|
14,986
|
|
General and
administrative
|
|
30,652
|
|
|
26,583
|
|
Total operating
expenses
|
|
155,504
|
|
|
155,233
|
|
Income from
operations
|
|
5,781
|
|
|
8,099
|
|
Other income,
net
|
|
513
|
|
|
896
|
|
Income before income
taxes
|
|
6,294
|
|
|
8,995
|
|
Provision for income
taxes
|
|
1,976
|
|
|
1,473
|
|
Net income
|
|
$
|
4,318
|
|
|
$
|
7,522
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
|
$
|
0.21
|
|
Diluted
|
|
$
|
0.12
|
|
|
$
|
0.21
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
Basic
|
|
35,521
|
|
|
35,114
|
|
Diluted
|
|
35,882
|
|
|
35,491
|
|
Shutterstock, Inc.
Consolidated
Balance Sheets
(In thousands,
except par value amount)
(unaudited)
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
295,711
|
|
|
$
|
303,261
|
|
Accounts receivable,
net of allowance of $4,553 and $3,579
|
|
45,216
|
|
|
47,016
|
|
Prepaid expenses and
other current assets
|
|
28,769
|
|
|
26,703
|
|
Total current
assets
|
|
369,696
|
|
|
376,980
|
|
Property and
equipment, net
|
|
56,896
|
|
|
58,834
|
|
Right-of-use
assets
|
|
43,430
|
|
|
45,453
|
|
Intangibles assets,
net
|
|
25,499
|
|
|
26,669
|
|
Goodwill
|
|
88,144
|
|
|
88,974
|
|
Deferred tax assets,
net
|
|
14,803
|
|
|
14,387
|
|
Other
assets
|
|
16,497
|
|
|
19,215
|
|
Total
assets
|
|
$
|
614,965
|
|
|
$
|
630,512
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
4,125
|
|
|
$
|
6,104
|
|
Accrued
expenses
|
|
53,294
|
|
|
53,864
|
|
Contributor royalties
payable
|
|
25,637
|
|
|
25,193
|
|
Deferred
revenue
|
|
138,883
|
|
|
141,922
|
|
Other
liabilities
|
|
10,367
|
|
|
18,811
|
|
Total current
liabilities
|
|
232,306
|
|
|
245,894
|
|
Lease
liabilities
|
|
45,522
|
|
|
47,313
|
|
Other non-current
liabilities
|
|
9,410
|
|
|
9,160
|
|
Total
liabilities
|
|
287,238
|
|
|
302,367
|
|
Commitment and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.01
par value; 200,000 shares authorized; 38,119 and 38,055 shares
issued and 35,561 and 35,497 shares outstanding as of
March 31, 2020 and December 31, 2019,
respectively
|
|
381
|
|
|
381
|
|
Treasury stock, at
cost; 2,558 shares as of March 31, 2020 and
December 31, 2019
|
|
(100,027)
|
|
|
(100,027)
|
|
Additional paid-in
capital
|
|
316,823
|
|
|
312,824
|
|
Accumulated other
comprehensive loss
|
|
(8,668)
|
|
|
(6,220)
|
|
Retained
earnings
|
|
119,218
|
|
|
121,187
|
|
Total stockholders'
equity
|
|
327,727
|
|
|
328,145
|
|
Total liabilities and
stockholders' equity
|
|
$
|
614,965
|
|
|
$
|
630,512
|
|
Shutterstock, Inc.
Consolidated
Statements of Cash Flows
(In thousands,
except par value amount)
(unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
|
4,318
|
|
|
$
|
7,522
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
10,519
|
|
|
11,916
|
|
Deferred
taxes
|
(386)
|
|
|
699
|
|
Non-cash equity-based
compensation
|
5,760
|
|
|
4,624
|
|
Bad debt
expense
|
658
|
|
|
(632)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
673
|
|
|
(3,812)
|
|
Prepaid expenses and
other current and non-current assets
|
(2,207)
|
|
|
(2,782)
|
|
Accounts payable and
other current and non-current liabilities
|
(2,286)
|
|
|
1,994
|
|
Long-term incentives
related to acquisitions
|
(7,759)
|
|
|
—
|
|
Contributor royalties
payable
|
551
|
|
|
2,138
|
|
Deferred
revenue
|
(2,982)
|
|
|
(1,958)
|
|
Net cash provided by
operating activities
|
$
|
6,859
|
|
|
$
|
19,709
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Capital
expenditures
|
(7,719)
|
|
|
(7,253)
|
|
Proceeds from sale of
Webdam, net
|
—
|
|
|
2,500
|
|
Acquisition of
content
|
(723)
|
|
|
(545)
|
|
Security deposit
release
|
31
|
|
|
—
|
|
Net cash used in
investing activities
|
$
|
(8,411)
|
|
|
$
|
(5,298)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
214
|
|
Cash paid related to
settlement of employee taxes related to RSU vesting
|
(1,761)
|
|
|
(4,090)
|
|
Payment of cash
dividend
|
(6,040)
|
|
|
—
|
|
Net cash used in
financing activities
|
$
|
(7,801)
|
|
|
$
|
(3,876)
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
(810)
|
|
|
(1,246)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
(10,163)
|
|
|
9,289
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
305,874
|
|
|
233,465
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
295,711
|
|
|
$
|
242,754
|
|
|
|
|
|
Supplemental
Disclosure of Cash Information:
|
|
|
|
Cash paid for income
taxes
|
$
|
494
|
|
|
$
|
305
|
|
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 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
March 31,
|
|
|
2020
|
|
2019
|
Net income
|
|
$
|
4,318
|
|
|
$
|
7,522
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
Depreciation and amortization
|
|
10,519
|
|
|
11,916
|
|
Non-cash
equity-based compensation
|
|
5,760
|
|
|
4,624
|
|
Other
adjustments, net (1)
|
|
(513)
|
|
|
8
|
|
Provision
for income taxes
|
|
1,976
|
|
|
1,473
|
|
Adjusted
EBITDA
|
|
$
|
22,060
|
|
|
$
|
25,543
|
|
Adjusted EBITDA
margin
|
|
13.7
|
%
|
|
15.6
|
%
|
|
(1) Other
adjustments, net includes foreign currency transaction gains and
losses, expenses related to long-term incentives and contingent
consideration related to acquisitions, and interest income and
expense.
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
Net income
|
|
$
|
4,318
|
|
|
$
|
7,522
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
Non-cash
equity-based compensation
|
|
5,760
|
|
|
4,624
|
|
Tax effect
of non-cash equity-based compensation (2)
|
|
(1,354)
|
|
|
(1,087)
|
|
Acquisition-related amortization
expense
|
|
568
|
|
|
890
|
|
Tax effect
of acquisition-related amortization expense
(2)
|
|
(133)
|
|
|
(209)
|
|
Acquisition-related long-term incentives
and contingent consideration
|
|
—
|
|
|
904
|
|
Tax effect
of acquisition-related long-term incentives and contingent
consideration (2)
|
|
—
|
|
|
(240)
|
|
Adjusted net
income
|
|
$
|
9,159
|
|
|
$
|
12,404
|
|
|
|
|
|
|
Net income per
diluted share
|
|
$
|
0.12
|
|
|
$
|
0.21
|
|
Adjusted net income
per diluted share
|
|
$
|
0.26
|
|
|
$
|
0.35
|
|
Weighted average
diluted shares
|
|
35,882
|
|
|
35,491
|
|
|
(2) Tax effect
reflects the estimated impact of the adjustment on the provision
for income taxes.
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
Revenue
growth
|
|
(1)
|
%
|
|
7
|
%
|
Revenue growth on
a constant currency basis
|
|
(0.5)
|
%
|
|
9
|
%
|
|
|
|
|
|
E-commerce
revenues
|
|
$
|
99,736
|
|
|
$
|
98,113
|
|
Revenue growth:
E-commerce
|
|
2
|
%
|
|
9
|
%
|
Revenue growth:
E-commerce on a constant currency basis
|
|
2
|
%
|
|
12
|
%
|
|
|
|
|
|
Enterprise
revenues
|
|
$
|
61,549
|
|
|
$
|
65,219
|
|
Revenue growth:
Enterprise
|
|
(6)
|
%
|
|
8
|
%
|
Revenue growth:
Enterprise on a constant currency basis
|
|
(5)
|
%
|
|
10
|
%
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
Net cash provided by
operating activities
|
|
$
|
6,859
|
|
|
$
|
19,709
|
|
Capital
expenditures
|
|
(7,719)
|
|
|
(7,253)
|
|
Content
acquisition
|
|
(723)
|
|
|
(545)
|
|
Payments associated
with long-term incentives related to acquisitions
|
|
7,759
|
|
|
—
|
|
Free cash
flow
|
|
$
|
6,176
|
|
|
$
|
11,911
|
|
Shutterstock, Inc.
Supplemental
Financial Data
(unaudited)
|
|
Historical
Operating Metrics
|
|
|
|
Three Months
Ended
|
|
|
3/31/20
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
3/31/19
|
|
12/31/18
|
|
9/30/18
|
|
6/30/18
|
|
3/31/18
|
|
|
(in millions, except revenue per download)
|
Number of paid
downloads
|
|
46.8
|
|
|
47.7
|
|
|
46.3
|
|
|
46.6
|
|
|
47.2
|
|
|
46.8
|
|
|
43.9
|
|
|
45.2
|
|
|
43.7
|
|
Revenue per download
(1)
|
|
$
|
3.42
|
|
|
$
|
3.44
|
|
|
$
|
3.40
|
|
|
$
|
3.44
|
|
|
$
|
3.42
|
|
|
$
|
3.40
|
|
|
$
|
3.40
|
|
|
$
|
3.41
|
|
|
$
|
3.40
|
|
Content in our
collection (end of period): (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Images
|
|
330
|
|
|
314
|
|
|
297
|
|
|
280
|
|
|
260
|
|
|
242
|
|
|
221
|
|
|
204
|
|
|
187
|
|
Footage
|
|
18
|
|
|
17
|
|
|
16
|
|
|
15
|
|
|
14
|
|
|
13
|
|
|
12
|
|
|
11
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical Revenue
by Sales Channel(3)
|
|
|
|
Three Months
Ended
|
|
|
3/31/20
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
3/31/19
|
|
12/31/18
|
|
9/30/18
|
|
6/30/18
|
|
3/31/18
|
|
|
(in millions)
|
E-commerce
|
|
$
|
99.7
|
|
|
$
|
100.9
|
|
|
$
|
96.2
|
|
|
$
|
97.0
|
|
|
$
|
98.1
|
|
|
$
|
95.6
|
|
|
$
|
88.7
|
|
|
$
|
91.7
|
|
|
$
|
89.7
|
|
Enterprise
|
|
61.5
|
|
|
65.5
|
|
|
62.8
|
|
|
64.7
|
|
|
65.2
|
|
|
66.5
|
|
|
62.9
|
|
|
64.9
|
|
|
60.6
|
|
Other(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
Total
Revenue
|
|
$
|
161.3
|
|
|
$
|
166.4
|
|
|
$
|
159.1
|
|
|
$
|
161.7
|
|
|
$
|
163.3
|
|
|
$
|
162.1
|
|
|
$
|
151.6
|
|
|
$
|
156.6
|
|
|
$
|
153.0
|
|
|
|
(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, the Company's former
digital asset management business. This table includes revenue
earned during the period from January 1, 2018 through February 26,
2018.
|
View original
content:http://www.prnewswire.com/news-releases/shutterstock-reports-first-quarter-2020-financial-results-301048037.html
SOURCE Shutterstock, Inc.