Shutterstock Inc (SSTK) Reports 14% Revenue Increase in Q3 2023
Shutterstock Inc (NYSE:SSTK) reports a 14% increase in revenue to $233.2 million in Q3 2023.
Net income increased by 23% to $28.4 million, despite a 40% decrease in income from operations.
Enterprise sales channel revenue increased by 60% compared to Q3 2022, while E-commerce sales channel revenue decreased by 15%.
The company raised both revenue and EBITDA guidance for 2023 based on strong year-to-date performance.
On October 31, 2023, Shutterstock Inc (NYSE:SSTK), a leading global creative platform offering high-quality creative content, announced its financial results for the third quarter ended September 30, 2023. The company reported a 14% increase in revenue to $233.2 million, while net income increased by 23% to $28.4 million. However, income from operations decreased by 40% to $17.2 million.
Financial Highlights
Shutterstock's Q3 2023 financial highlights compared to Q3 2022 include a 15% increase in adjusted EBITDA to $64.7 million and a $0.15 increase in net income per diluted share to $0.79. However, operating cash flows decreased by $27.7 million to $10.0 million, and free cash flow decreased by $8.7 million to $12.7 million.
Operating Metrics
The number of subscribers decreased to 551,000, but subscriber revenue increased to $88.3 million. The average revenue per customer increased to $401, while paid downloads decreased to 36.4 million. The revenue per download increased to $4.76. The image collection expanded to 757 million images, and the footage collection expanded to 52 million clips.
Revenue and Net Income
Shutterstock's Q3 2023 revenue of $233.2 million increased by $29.2 million or 14% compared to Q3 2022. The net income of $28.4 million increased by $5.4 million compared to $23.0 million for Q3 2022. The net income per diluted share was $0.79, compared to $0.64 for the same period in 2022.
2023 Guidance
Based on its strong year-to-date performance, Shutterstock increased its guidance for the full year 2023. The company now expects revenue of $869 million to $886 million, representing annual growth of 5% to 7%. Adjusted EBITDA is expected to be between $240 million to $245 million, and adjusted net income per diluted share is expected to be between $4.18 to $4.30.
About Shutterstock Inc (NYSE:SSTK)
Shutterstock Inc (NYSE:SSTK) is a leading global creative platform offering high-quality creative content for transformative brands, digital media, and marketing companies. The company offers the most comprehensive selection of resources to bring storytelling to life, including the world's largest content marketplace, breaking news, A-list entertainment editorial access, and an all-in-one content editing platform and studio production service.
Explore the complete 8-K earnings release (here) from Shutterstock Inc for further details.
This article first appeared on GuruFocus.
