Shutterstock (SSTK) Gives Indemnification for AI Image Creation
Shutterstock SSTK has introduced an offering for Enterprise customers, ensuring complete indemnification for the licensing and utilization of generative artificial intelligence (AI) images available on its platform. By conducting thorough human reviews, Shutterstock aims to promptly address and safeguard its customers against any potential claims associated with the use of generative AI images obtained and licensed through shutterstock.com.
After its initial announcement at the Shutterstock Showcase, the company took the lead in the market by providing this assurance to a global technology customer. The customer utilized an AI-generated image from the Shutterstock platform for the worldwide virtual developer conference in May 2023. Now, the company is extending this offering to all enterprise customers upon request, further expanding its reach.
SSTK plans to maintain its commitment to investment, innovation and strategic long-term collaborations that enhance the value and influence of its extensive content library. With its vast metadata and unparalleled size, diversity and annotation, the library stands out in the industry and serves as an exceptional resource for training AI capabilities.
Shutterstock, Inc. Price and Consensus
Shutterstock, Inc. price-consensus-chart | Shutterstock, Inc. Quote
Shutterstock’s Acquisition of GIPHY to Aid Top-Line Growth
Shutterstock has made a recent announcement regarding its definitive agreement to acquire GIPHY, Inc. from Meta Platforms META. GIPHY is renowned as the largest collection of GIFs and stickers globally, providing a vast array of casual conversational content.
The acquisition of GIPHY by SSTK complements its generative AI and metadata strategy, with a particular focus on mobile generative AI at global scale. This move allows the company to tap into a sizable and expanding Total Addressable Market related to native advertising, catering to brands that aim to engage customers in real-time through mobile phones and communication tools.
Moreover, the inclusion of GIFs and stickers used in casual conversations expands Shutterstock's content library as GIFs have more than 75% positive sentiment among consumers.
The transaction for acquiring GIPHY by SSTK involves a consideration of $53 million in net cash, which will be paid at the closing. The cash consideration will be financed using existing cash reserves and revolving credit facility. Meta Platforms, the current owner of GIPHY, will enter into an API agreement to ensure ongoing access to GIPHY's content on Meta's platform.
This acquisition is set to boost Shutterstock’s top-line performance in the upcoming quarters and establish a dominant position in the market with a vast audience to cater to.
The Zacks Consensus Estimate for SSTK’s 2023 earnings is pegged at $4.11 per share, indicating year-over-year growth of 6.2%. The consensus estimate for 2023 revenues is pegged at $853.41 million, indicating year-over-year growth of 3.09%.
Zacks Rank & Key Picks
Currently, Shutterstock carries a Zacks Rank #3 (Hold).
Shares of SSTK have declined 7.2% year to date against the Zacks Computer and Technology sector’s rise of 37%.
Some better-ranked stocks from the broader sector are Salesforce CRM and Baidu BIDU, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Salesforce have gained 58.5% year to date. The Zacks Consensus Estimate for CRM’s second-quarter 2023 revenues is pegged at $8.52 billion, indicating year-over-year growth of 10.41%. The consensus mark for earnings is pegged at $1.90 per share, which has increased by 1 cent over the past 30 days.
Shares of Baidu have gained 20.8% year to date. The Zacks Consensus Estimate for BIDU’s second-quarter 2023 revenues is pegged at $4.76 billion, indicating year-over-year growth of 7.47%. The consensus mark for earnings is pegged at $2.64 per share, which has decreased by 3 cents over the past 30 days.
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