The chart below shows how SSTK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SSTK sees a +5.20% change in stock price 10 days leading up to the earnings, and a -3.20% change 10 days following the report. On the earnings day itself, the stock moves by +2.52%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Q3 Revenue Growth: ShutterStock reported record third quarter revenues of $250.6 million, up 7.4% year-over-year, with both business lines performing well against expectations.
Content Revenue Growth: Content revenue was $204 million, representing a 14% increase compared to the prior year, indicating strong growth in this segment.
Record Adjusted EBITDA Performance: Adjusted EBITDA for the third quarter was a record $70 million with a 27.9% EBITDA margin, showcasing effective cost management and operational efficiency.
Strong Free Cash Flow: Free cash flow was strong at $45.7 million in the third quarter, reflecting the company's solid financial health and ability to generate cash.
Strong Demand and Engagement: The company continues to see strong demand for its products, with a significant increase in customer engagement and a growing pipeline of new business opportunities.
Negative
Customer Acquisition Slowdown: Customer growth declined by 7% year-over-year, indicating a slowdown in acquiring new customers.
Content Revenue Decline: Content revenues, excluding the contribution from Envato, decreased by 7% year-over-year, reflecting challenges in the content segment.
Rising Operating Expenses: Operating expenses increased to 13% of revenue compared to 11% in the prior year, indicating rising costs.
EBITDA Margin Decline: Adjusted EBITDA margin decreased to 27.9% in the third quarter, down from previous margins, reflecting pressure on profitability.
R&D Spending Decline: The company anticipates a decline in capitalized R&D spending in the upcoming quarters, which may impact future product development.
Shutterstock, Inc. (SSTK) Q3 2024 Earnings Call Transcript
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