Q2 2024 Shutterstock Inc Earnings Call Transcript
Key Points
- Shutterstock Inc (SSTK) successfully completed the acquisition of Envato, which is expected to positively impact the Content business.
- The company reported strong overall results for Q2 2024, with revenue of $220 million, representing a growth of 5.4%, and adjusted EBITDA of $62 million with margins of 28%.
- Data, Distribution, and Services business experienced hyper growth of 129% in the second quarter.
- Shutterstock Inc (SSTK) launched innovative GenAI 3D capabilities in partnership with NVIDIA, which promises to significantly reduce the time and expense associated with 3D model creation.
- The company entered into a partnership with Databricks to offer Shutterstock ImageAI, enhancing their AI capabilities and product offerings.
- Content revenue declined by 9% year-over-year to $170 million, with new customer acquisition in small- and medium-sized customers remaining soft.
- The company acknowledged that getting back to year-over-year growth in the Content business is taking longer than expected.
- Shutterstock Inc (SSTK) had to factor reduced expectations for Content growth into their guidance.
- The company incurred $3.1 million in transaction costs associated with the Envato acquisition, impacting G&A expenses.
- Despite strong performance in Data, Distribution, and Services, the company expects a slight step-down in the second half of the year, indicating potential volatility in revenue.
Good day and thank you for standing by. Welcome to the Q2 2024 Shutterstock, Inc. Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand the conference over to your speaker today, Rik Powell, SVP Finance and Investor Relations.
Thank you, Josh. Good morning, everyone, and thank you for joining us for Shutterstock's Second Quarter 2024 Earnings Call. Joining us today is Paul Hennessy, Shutterstock's Chief Executive Officer; and Jarrod Yahes, Shutterstock's Chief Financial Officer.
Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, the long-term effects of investments in our business, the future success and financial impact of new and existing product offerings, our ability to consummate acquisitions and integrate the businesses we have acquired or may
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