Shutterstock reports second-quarter 2022 financial results

GaryPageau

Shutterstock, Inc. announced second-quarter revenue for the ended June 30, 2022, increased 9% to $206.9 million (on a constant currency basis, revenue increased 13%). Income from operations dropped 24% to $25.4 million and net income decreased 34% to $19.4 million. 

“With the acquisitions of Pond5 and Splash News and the release of our Creative Flow suite of workflow applications and the Creative Flow+ subscription product during the quarter, we made significant progress on our journey towards becoming a creative platform that allows our customers to create with confidence,” says Paul Hennessy, CEO. “Despite macro headwinds, we grew revenues 13% on a constant currency basis driven by our recent acquisitions and supported by strong growth across a range of solutions in our Enterprise channel.”

Second-quarter revenue of $206.9 million increased $17.0 million or 9% as compared to the second quarter of 2021. Revenue generated through E-commerce sales channel increased 6% as compared to the second quarter of 2021, to $127.4 million, and represented 62% of total revenue in the second quarter of 2022. E-commerce revenue growth was primarily driven by revenue generated from the acquisitions of PicMonkey and Pond5, the company said. Revenue from Enterprise sales channel increased 15% as compared to the second quarter of 2021, to $79.5 million, and represented 38% of second-quarter revenue in 2022.

KEY OPERATING METRICS

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2022

2021

Subscribers (end of period)(1)

368,000

321,000

368,000

321,000

Subscriber revenue (in millions)(2)

$                   84.7

$                   78.1

$                   170.1

$                  154.6

Average revenue per customer (last twelve months)(3)

$                    359

$                    356

$                      359

$                     356

Paid downloads (in millions)(4)

43.4

44.9

88.0

90.7

Revenue per download(5)

$4.46

$4.17

$4.34

$4.07

Content in our collection (end of period, in millions)(6):

Images

415

380

415

380

Footage clips

26

22

26

22

_______________________________________________________________________________________________________________________ 

(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. For the three and six months ended June 30, 2021, subscribers excludes customers related to our acquisitions of TurboSquid, PicMonkey, Pond5 and Splash News. For the three and six months ended June 30, 2022, subscribers excludes customers related to PicMonkey, Pond5 and Splash News.

(2) Subscriber revenue is defined as the revenue generated from subscribers during the period. For the three and six months ended June 30, 2021, subscriber revenue excludes revenues related to our acquisitions of TurboSquid, PicMonkey, Pond5 and Splash News.  For the  three and six months ended June 30, 2022, subscriber revenue excludes revenues related to PicMonkey, Pond5 and Splash News.

(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.  For three and six months ended June 30, 2021, average revenue per customer excludes revenues and customers related to our acquisitions of TurboSquid, PicMonkey, Pond5 and Splash News. For the three and six months ended June 30, 2022, average revenue per customer excludes revenues and customers related to PicMonkey, Pond5 and Splash News.

(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to custom content, downloads of content that are offered to customers for no charge, including our free image of the week and downloads associated with our computer vision offering.

(5) Revenue per download is the amount of revenue recognized in a given period divided by the number of paid downloads in that period excluding revenue from custom content, revenue that is not derived from or associated with content licenses and revenue associated with our computer vision offering.

(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. This collection metric excludes content 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.

2022 GUIDANCE

The Company’s current expectations for the full year 2022, remain unchanged as follows:

  • Revenue of $835 million to $850 million, representing annual growth of 8% – 10%.
  • Adjusted EBITDA of between $210 million to $217 million.
  • Adjusted net income per diluted share of between $3.65 to $3.80.