NEW YORK, July 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 second quarter ended June 30, 2020.
Commenting on the Company's performance, Stan Pavlovsky, the Company's Chief Executive
Officer, said, "Shutterstock delivered a strong second quarter
characterized by revenue that surpassed our expectations. Our
margin expansion initiatives have begun to take hold, which has
resulted in record adjusted EBITDA for the quarter. I am impressed
by the resiliency of our business and our ability to deliver strong
performance in the current operating environment. Based on a higher
level of confidence we have in our business outlook, we are
accelerating several targeted investments in our platform solutions
offering and marketing and brand building to support growth in our
subscriptions products.
Jarrod Yahes, the Company's Chief
Financial Officer, said, "As our business evolves towards a
primarily subscription-based model, we are now disclosing
additional key operating metrics to the investor community. We
expect the increase in subscriber revenues to result in greater
operating leverage and allow us to consistently deliver incremental
margin expansion over a sustained period of time. In order to
highlight our market opportunity and business model, we have made a
new interactive investor relations microsite available to investors
this quarter."
Second Quarter 2020 highlights compared to Second Quarter
2019:
Key Operating
Metrics
- Subscribers increased 29%, to 223,000.
- Subscriber revenue increased 8% to $62.7
million.
- Average revenue per customer, increased 0.2% to $326.
- Paid downloads decreased 6% to 44.0 million.
- Revenue per download increased by $0.17 to $3.61.
- Image collection expanded 21% to approximately 340 million
images.
- Footage collection expanded 27% to approximately 19 million
clips.
Financial
Highlights
- Revenue decreased 2% to $159.2
million. On a constant currency basis, revenue decreased
1%.
- Income from operations increased by $19.5 million to $22.5
million.
- Net income increased by $15.7
million to $19.0 million.
- Adjusted EBITDA increased by $11.9
million to $37.0 million.
- Diluted EPS increased by $0.44 to
$0.53 per share.
SHUTTERSTOCK INVESTOR RELATIONS MICRO SITE
Accessible at
content.shutterstock.com/investor-report/index.html
SECOND QUARTER RESULTS
Revenue
Second quarter revenue of $159.2 million decreased $2.5 million or 2% as compared to 2019. Revenue
generated through our E-commerce sales channel increased 1% as
compared to the second quarter of 2019, to $98.2 million, and represented 62% of total
revenue in the second quarter of 2020. Revenue from our Enterprise
sales channel decreased 6% as compared to the second quarter of
2019, to $61.1 million, and
represented 38% of second quarter revenue in 2020.
On a constant currency basis, revenue decreased 1% in the second
quarter of 2020 as compared to the second quarter of 2019. On a
constant currency basis, E-commerce revenue increased by 2.0% in
the second quarter of 2020, as compared to the second quarter of
2019. On a constant currency basis, Enterprise revenue decreased by
approximately 5% in the second quarter of 2020, as compared to the
second quarter of 2019.
Net income and Income per diluted share
Net income of $19.0 million,
increased $15.7 million as compared
to $3.3 million for the second
quarter in 2019. Net income per diluted share was $0.53, as compared to $0.09 for the same period in 2019. This increase
is primarily due to our margin expansion initiatives which have
resulted in lower operating expenses in the second quarter of
2020.
Adjusted net income per diluted share was $0.62 as compared to $0.33 for the second quarter of 2019, a increase
of $0.29 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $37.0 million
for the second quarter of 2020 increased $11.9 million, or 48%, as compared to the
second quarter of 2019, driven primarily by lower operating
expenses resulting from our margin expansion. The adjusted EBITDA
margin increased to 23.3% from 15.5% in the second quarter of
2019.
LIQUIDITY
Our cash and cash equivalents increased by $7.9 million to $311.2 million at June 30, 2020, as
compared with $303.3 million at
December 31, 2019. This increase was driven by $36.3 million of net cash provided by our
operating activities, partially offset by $15.4 million used in investing activities and
$14.9 million used in financing
activities. Net cash provided by our operating activities was
impacted 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
unfavorable impacts due to changes in the timing of payments
pertaining to operating expenses. Cash used in investing activities
primarily consists of $14.0 million
related to capital expenditures. Cash used in financing activities
includes $12.1 million related to the
payment of the quarterly cash dividend.
Free cash flow was $28.6 million
for 2020, a decrease of $3.2 million
from 2019. This change was primarily driven by lower cash
flows from operating activities. Free cash flow for the six months
ended June 30, 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 $0.34 per common share, or $12.1 million during the six months ended
June 30, 2020.
On July 20, 2020, the Board of Directors declared a
dividend of $0.17 per share of
outstanding common stock, payable on September 17, 2020 to
stockholders of record at the close of business on
September 3, 2020.
KEY OPERATING METRICS
|
|
Three Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
|
|
Subscribers (end of
period)(1)
|
|
223,000
|
|
|
173,000
|
|
Subscriber revenue
(in millions)(2)
|
|
$
|
62.7
|
|
|
$
|
57.9
|
|
|
|
|
|
|
Average revenue per
customer (trailing twelve months)(3)
|
|
$
|
326
|
|
|
$
|
325
|
|
Paid downloads (in
millions)(4)
|
|
44.0
|
|
|
46.6
|
|
Revenue per download
(5)
|
|
$3.61
|
|
|
$3.44
|
|
Content in our
collection (end of period, in millions)(6):
|
|
|
|
|
Images
|
|
340
|
|
|
280
|
|
Footage
clips
|
|
19
|
|
|
15
|
|
|
(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.
|
|
(2) Subscriber
revenue is defined as the revenue generated from subscribers during
the period.
|
|
(3) Average revenue
per customer is calculated by dividing total revenue for the
trailing twelve month period by customers. We define
customers as total active, paying customers that contributed to
total revenue over the trailing twelve month period.
|
|
(4) 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 and downloads of
content that are offered to customers for no charge, including our
free image of the week.
|
|
(5) 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.
|
|
(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. 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.
|
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 net income, revenue growth (including by
distribution channel) on a constant currency basis, adjusted EBITDA
margin, 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, 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; billings as revenue adjusted for the change in deferred
revenue during the period; 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,
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
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. 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 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, 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 net income, 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 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#
2957776. 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 August 5, 2020 in the
U.S. at (855) 859-2056 or outside the U.S. at (404) 537-3406 with
the conference ID# 2957776.
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 340 million images
and more than 19 million footage 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, new or planned
features, products or services, management strategies,
Shutterstock's expectations regarding financial outlook and future
growth and profitability and statements regarding anticipated
improvements in operations. 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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
159,230
|
|
|
$
|
161,741
|
|
|
$
|
320,515
|
|
|
$
|
325,073
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
63,811
|
|
|
68,526
|
|
|
132,934
|
|
|
137,744
|
|
Sales and
marketing
|
|
35,557
|
|
|
44,488
|
|
|
78,217
|
|
|
88,934
|
|
Product
development
|
|
12,485
|
|
|
13,594
|
|
|
25,554
|
|
|
28,580
|
|
General and
administrative
|
|
24,832
|
|
|
32,063
|
|
|
55,484
|
|
|
58,646
|
|
Total operating
expenses
|
|
136,685
|
|
|
158,671
|
|
|
292,189
|
|
|
313,904
|
|
Income from
operations
|
|
22,545
|
|
|
3,070
|
|
|
28,326
|
|
|
11,169
|
|
Other income,
net
|
|
149
|
|
|
584
|
|
|
662
|
|
|
1,480
|
|
Income before income
taxes
|
|
22,694
|
|
|
3,654
|
|
|
28,988
|
|
|
12,649
|
|
Provision for income
taxes
|
|
3,707
|
|
|
355
|
|
|
5,683
|
|
|
1,828
|
|
Net income
|
|
$
|
18,987
|
|
|
$
|
3,299
|
|
|
$
|
23,305
|
|
|
$
|
10,821
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.53
|
|
|
$
|
0.09
|
|
|
$
|
0.65
|
|
|
$
|
0.31
|
|
Diluted
|
|
$
|
0.53
|
|
|
$
|
0.09
|
|
|
$
|
0.65
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
35,652
|
|
|
35,232
|
|
|
35,587
|
|
|
35,174
|
|
Diluted
|
|
35,906
|
|
|
35,504
|
|
|
35,894
|
|
|
35,499
|
|
Shutterstock, Inc. Consolidated
Balance Sheets (In thousands, except par value
amount) (unaudited)
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
311,157
|
|
|
$
|
303,261
|
|
Accounts receivable,
net of allowance of $3,608 and $3,579
|
|
48,744
|
|
|
47,016
|
|
Prepaid expenses and
other current assets
|
|
26,590
|
|
|
26,703
|
|
Total current
assets
|
|
386,491
|
|
|
376,980
|
|
Property and
equipment, net
|
|
54,240
|
|
|
58,834
|
|
Right-of-use
assets
|
|
42,097
|
|
|
45,453
|
|
Intangibles assets,
net
|
|
25,182
|
|
|
26,669
|
|
Goodwill
|
|
88,167
|
|
|
88,974
|
|
Deferred tax assets,
net
|
|
13,727
|
|
|
14,387
|
|
Other
assets
|
|
16,427
|
|
|
19,215
|
|
Total
assets
|
|
$
|
626,331
|
|
|
$
|
630,512
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
4,504
|
|
|
$
|
6,104
|
|
Accrued
expenses
|
|
51,554
|
|
|
53,864
|
|
Contributor royalties
payable
|
|
24,248
|
|
|
25,193
|
|
Deferred
revenue
|
|
138,229
|
|
|
141,922
|
|
Other
liabilities
|
|
10,347
|
|
|
18,811
|
|
Total current
liabilities
|
|
228,882
|
|
|
245,894
|
|
Lease
liabilities
|
|
44,280
|
|
|
47,313
|
|
Other non-current
liabilities
|
|
9,669
|
|
|
9,160
|
|
Total
liabilities
|
|
282,831
|
|
|
302,367
|
|
Commitment and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $0.01
par value; 200,000 shares authorized; 38,245 and 38,055 shares
issued and 35,687 and 35,497 shares outstanding as of
June 30, 2020 and
December 31, 2019, respectively
|
|
382
|
|
|
381
|
|
Treasury stock, at
cost; 2,558 shares as of June 30, 2020 and
December 31, 2019
|
|
(100,027)
|
|
|
(100,027)
|
|
Additional paid-in
capital
|
|
319,412
|
|
|
312,824
|
|
Accumulated other
comprehensive loss
|
|
(8,414)
|
|
|
(6,220)
|
|
Retained
earnings
|
|
132,147
|
|
|
121,187
|
|
Total stockholders'
equity
|
|
343,500
|
|
|
328,145
|
|
Total liabilities and
stockholders' equity
|
|
$
|
626,331
|
|
|
$
|
630,512
|
|
Shutterstock, Inc. Consolidated
Statements of Cash Flows (In thousands, except par value
amount) (unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
18,987
|
|
|
$
|
3,299
|
|
|
$
|
23,305
|
|
|
$
|
10,821
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,851
|
|
|
13,403
|
|
|
21,370
|
|
|
25,319
|
|
Deferred
taxes
|
|
1,079
|
|
|
(2,011)
|
|
|
693
|
|
|
(1,312)
|
|
Non-cash equity-based
compensation
|
|
3,636
|
|
|
7,751
|
|
|
9,396
|
|
|
12,375
|
|
Bad debt
expense
|
|
428
|
|
|
(3)
|
|
|
1,086
|
|
|
(635)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(3,952)
|
|
|
1,066
|
|
|
(3,279)
|
|
|
(2,746)
|
|
Prepaid expenses and
other current and non-current assets
|
|
2,256
|
|
|
4,726
|
|
|
49
|
|
|
1,944
|
|
Accounts payable and
other current and non-current liabilities
|
|
(1,759)
|
|
|
(95)
|
|
|
(4,045)
|
|
|
1,899
|
|
Long-term incentives
related to acquisitions
|
|
—
|
|
|
—
|
|
|
(7,759)
|
|
|
—
|
|
Contributor royalties
payable
|
|
(1,391)
|
|
|
(1,079)
|
|
|
(840)
|
|
|
1,059
|
|
Deferred
revenue
|
|
(651)
|
|
|
(23)
|
|
|
(3,633)
|
|
|
(1,981)
|
|
Net cash provided by
operating activities
|
|
$
|
29,484
|
|
|
$
|
27,034
|
|
|
$
|
36,343
|
|
|
$
|
46,743
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(6,247)
|
|
|
(6,473)
|
|
|
(13,966)
|
|
|
(13,726)
|
|
Proceeds from sale of
Webdam, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,500
|
|
Acquisition of
content
|
|
(854)
|
|
|
(732)
|
|
|
(1,577)
|
|
|
(1,277)
|
|
Security deposit
release
|
|
74
|
|
|
25
|
|
|
105
|
|
|
25
|
|
Net cash used in
investing activities
|
|
$
|
(7,027)
|
|
|
$
|
(7,180)
|
|
|
$
|
(15,438)
|
|
|
$
|
(12,478)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
629
|
|
|
4
|
|
|
629
|
|
|
218
|
|
Cash paid related to
settlement of employee taxes related to RSU
vesting
|
|
(1,675)
|
|
|
(1,091)
|
|
|
(3,436)
|
|
|
(5,181)
|
|
Payment of cash
dividend
|
|
(6,058)
|
|
|
—
|
|
|
(12,098)
|
|
|
—
|
|
Net cash used in
financing activities
|
|
$
|
(7,104)
|
|
|
$
|
(1,087)
|
|
|
$
|
(14,905)
|
|
|
$
|
(4,963)
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
93
|
|
|
161
|
|
|
(717)
|
|
|
(1,085)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
15,446
|
|
|
18,928
|
|
|
5,283
|
|
|
28,217
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
295,711
|
|
|
242,754
|
|
|
305,874
|
|
|
233,465
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
311,157
|
|
|
$
|
261,682
|
|
|
$
|
311,157
|
|
|
$
|
261,682
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Information:
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
433
|
|
|
$
|
1,175
|
|
|
$
|
927
|
|
|
$
|
1,480
|
|
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, 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. 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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
|
|
$
|
18,987
|
|
|
$
|
3,299
|
|
|
$
|
23,305
|
|
|
$
|
10,821
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,851
|
|
|
13,403
|
|
|
21,370
|
|
|
25,319
|
|
Non-cash equity-based
compensation
|
|
3,636
|
|
|
7,751
|
|
|
9,396
|
|
|
12,375
|
|
Other adjustments, net
(1)
|
|
(149)
|
|
|
298
|
|
|
(662)
|
|
|
305
|
|
Provision for income
taxes
|
|
3,707
|
|
|
355
|
|
|
5,683
|
|
|
1,828
|
|
Adjusted
EBITDA
|
|
$
|
37,032
|
|
|
$
|
25,106
|
|
|
$
|
59,092
|
|
|
$
|
50,648
|
|
Adjusted EBITDA
margin
|
|
23.3
|
%
|
|
15.5
|
%
|
|
18.4
|
%
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
|
|
$
|
18,987
|
|
|
$
|
3,299
|
|
|
$
|
23,305
|
|
|
$
|
10,821
|
|
Add / (less) Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Non-cash equity-based
compensation
|
|
3,636
|
|
|
7,751
|
|
|
9,396
|
|
|
12,375
|
|
Tax effect of non-cash
equity-based compensation (2)
|
|
(854)
|
|
|
(1,822)
|
|
|
(2,208)
|
|
|
(2,909)
|
|
Acquisition-related
amortization expense
|
|
514
|
|
|
2,407
|
|
|
1,082
|
|
|
3,297
|
|
Tax effect of
acquisition-related amortization expense (2)
|
|
(121)
|
|
|
(498)
|
|
|
(254)
|
|
|
(707)
|
|
Acquisition-related
long-term incentives and contingent
consideration
|
|
—
|
|
|
882
|
|
|
—
|
|
|
1,786
|
|
Tax effect of
acquisition-related long-term incentives and
contingent consideration (2)
|
|
—
|
|
|
(234)
|
|
|
—
|
|
|
(474)
|
|
Adjusted net
income
|
|
$
|
22,162
|
|
|
$
|
11,785
|
|
|
$
|
31,321
|
|
|
$
|
24,189
|
|
|
|
|
|
|
|
|
|
|
Net income per
diluted share
|
|
$
|
0.53
|
|
|
$
|
0.09
|
|
|
$
|
0.65
|
|
|
$
|
0.30
|
|
Adjusted net income
per diluted share
|
|
$
|
0.62
|
|
|
$
|
0.33
|
|
|
$
|
0.87
|
|
|
$
|
0.68
|
|
Weighted average
diluted shares
|
|
35,906
|
|
|
35,504
|
|
|
35,894
|
|
|
35,499
|
|
|
|
(2)
|
Tax effect reflects
the estimated impact of the adjustment on the provision for income
taxes.
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Total
Revenues
|
|
$
|
159,230
|
|
|
$
|
161,741
|
|
|
$
|
320,515
|
|
|
$
|
325,073
|
|
|
|
|
|
|
|
|
|
|
Revenue
growth
|
|
(2)
|
%
|
|
3
|
%
|
|
(1)
|
%
|
|
5
|
%
|
Revenue growth on
a constant currency basis
|
|
(1)
|
%
|
|
5
|
%
|
|
(1)
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
E-commerce
revenues
|
|
$
|
98,164
|
|
|
$
|
96,993
|
|
|
$
|
197,900
|
|
|
$
|
195,106
|
|
Revenue growth:
E-commerce
|
|
1
|
%
|
|
6
|
%
|
|
1
|
%
|
|
8
|
%
|
Revenue growth:
E-commerce on a constant currency basis
|
|
2
|
%
|
|
7
|
%
|
|
2
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Enterprise
revenues
|
|
$
|
61,066
|
|
|
$
|
64,748
|
|
|
$
|
122,615
|
|
|
$
|
129,967
|
|
Revenue growth:
Enterprise
|
|
(6)
|
%
|
|
0
|
%
|
|
(6)
|
%
|
|
4
|
%
|
Revenue growth:
Enterprise on a constant currency basis
|
|
(5)
|
%
|
|
2
|
%
|
|
(5)
|
%
|
|
6
|
%
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net cash provided by
operating activities
|
|
$
|
29,484
|
|
|
$
|
27,034
|
|
|
$
|
36,343
|
|
|
$
|
46,743
|
|
Capital
expenditures
|
|
(6,247)
|
|
|
(6,473)
|
|
|
(13,966)
|
|
|
(13,726)
|
|
Content
acquisition
|
|
(854)
|
|
|
(732)
|
|
|
(1,577)
|
|
|
(1,277)
|
|
Payments associated
with long-term incentives related to
acquisitions
|
|
—
|
|
|
—
|
|
|
7,759
|
|
|
—
|
|
Free cash
flow
|
|
$
|
22,383
|
|
|
$
|
19,829
|
|
|
$
|
28,559
|
|
|
$
|
31,740
|
|
Shutterstock, Inc. Supplemental
Financial Data (unaudited)
|
|
Historical
Operating Metrics
|
|
|
Three Months
Ended
|
|
|
6/30/20
|
|
3/31/20
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
3/31/19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribers (end of
period, in thousands) (1)
|
|
223
|
|
|
209
|
|
|
194
|
|
|
184
|
|
|
173
|
|
|
161
|
|
Subscriber revenue
(in millions) (2)
|
|
$
|
62.7
|
|
|
$
|
63.9
|
|
|
$
|
60.5
|
|
|
$
|
60.1
|
|
|
$
|
57.9
|
|
|
$
|
58.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
customer (trailing twelve months) (3)
|
|
$
|
326
|
|
|
$
|
329
|
|
|
$
|
330
|
|
|
$
|
327
|
|
|
$
|
325
|
|
|
$
|
323
|
|
Paid downloads (in
millions) (4)
|
|
44.0
|
|
|
46.8
|
|
|
47.7
|
|
|
46.3
|
|
|
46.6
|
|
|
47.2
|
|
Revenue per download
(5)
|
|
$
|
3.61
|
|
|
$
|
3.42
|
|
|
$
|
3.44
|
|
|
$
|
3.40
|
|
|
$
|
3.44
|
|
|
$
|
3.42
|
|
Content in our
collection (end of period, in millions): (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Images
|
|
340
|
|
|
330
|
|
|
314
|
|
|
297
|
|
|
280
|
|
|
260
|
|
Footage
clips
|
|
19
|
|
|
18
|
|
|
17
|
|
|
16
|
|
|
15
|
|
|
14
|
|
Revenue and
Billings by Sales Channel(7)
|
|
|
|
Three Months
Ended
|
|
|
6/30/20
|
|
3/31/20
|
|
12/31/19
|
|
9/30/19
|
|
6/30/19
|
|
3/31/19
|
|
|
(in millions)
|
E-commerce
revenue
|
|
$
|
98.2
|
|
|
$
|
99.7
|
|
|
$
|
100.9
|
|
|
$
|
96.2
|
|
|
$
|
97.0
|
|
|
$
|
98.1
|
|
Enterprise
revenue
|
|
61.1
|
|
|
61.5
|
|
|
65.5
|
|
|
62.8
|
|
|
64.7
|
|
|
65.2
|
|
Total
revenue
|
|
$
|
159.2
|
|
|
$
|
161.3
|
|
|
$
|
166.4
|
|
|
$
|
159.1
|
|
|
$
|
161.7
|
|
|
$
|
163.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in total
deferred revenue
|
|
$
|
(0.7)
|
|
|
$
|
(3.0)
|
|
|
$
|
4.4
|
|
|
$
|
0.4
|
|
|
$
|
(0.2)
|
|
|
$
|
(2.2)
|
|
Total
billings
|
|
$
|
158.6
|
|
|
$
|
158.2
|
|
|
$
|
170.8
|
|
|
$
|
159.5
|
|
|
$
|
161.5
|
|
|
$
|
161.1
|
|
|
|
(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.
|
(2)
|
Subscriber revenue is
defined as the revenue generated from subscribers during the
period.
|
(3)
|
Average revenue per
customer is calculated by dividing total revenue for the trailing
twelve month period by customers. We define customers as
total active, paying customers that contributed to total revenue
over the trailing twelve month period.
|
(4)
|
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 and downloads of content
that are offered to customers for no charge, including our free
image of the week.
|
(5)
|
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.
|
(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. 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.
|
(7)
|
Certain amounts in
the table may not foot due to rounding.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/shutterstock-reports-second-quarter-2020-financial-results-301100744.html
SOURCE Shutterstock, Inc.