How Is Shutterstock Doing? Checkout Their Q2 Financial Report
NEW YORK, Aug. 6, 2019 /PRNewswire/ –Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a leading global technology company offering a creative platform for high-quality content, tools and services, today announced financial results for the second quarter ended June 30, 2019.
Commenting on the Company’s performance, founder and CEO Jon Oringer said, “This quarter we continued to see demand from our customers around the globe, resulting in further revenue growth and the strengthening of our working capital position. Shutterstock has always been an innovative technology company, focused on developing creative solutions and driving long-term growth. However, we recognize that there is room for improvement in our Enterprise sales channel and, in the near-term, have revised our outlook for the year as our team develops strategies to reaccelerate growth. This includes assessing initiatives to optimize our existing assets and our go-to-market approach. During the second quarter, we continued to innovate and bring more services onto a common platform, addressing the evolving needs of our customers and enabling their success.
“We are confident that we are well positioned to continue improving and building on our cutting-edge technology, offering innovative content and products for our customers and contributors while fueling our growth and success.”
Second Quarter 2019 highlights compared to Second Quarter 2018:
Key Operating Metrics
- Paid downloads increased 3% to 46.6 million.
- Revenue per download increased 1% to $3.44.
- Image collection expanded 37% to approximately 280 million images.
- Video collection expanded 37% to approximately 15 million clips.
Financial Highlights
- Revenue increased 3% to $161.7 million. On a constant currency basis, revenue increased 5%.
- Income from operations decreased 45% to $3.1 million.
- Net income increased to $3.3 million from a net loss of $0.3 million.
- Adjusted EBITDA increased 4% to $25.1 million.
- Diluted EPS increased to $0.09 per share, from a loss per share of $0.01.
SECOND QUARTER RESULTS
Revenue
Revenue was $161.7 million for the second quarter of 2019, an increase of $5.2 million, or 3%, as compared to the second quarter of 2018, driven by positive year-over-year growth in our e-commerce channel. Revenue generated through our e-commerce channel increased approximately 6% as compared to the second quarter of 2018, to $97.0 million and represented 60% of total revenue in the second quarter of 2019. Revenue from enterprise customers remained relatively flat, decreasing 0.2% as compared to 2018, to $64.7 million and represented 40% of total revenue in the second quarter of 2019.
Revenue growth on a constant currency basis was approximately 5% in the second quarter of 2019, as compared to the second quarter of 2018. E-commerce and enterprise revenue growth on a constant currency basis was approximately 7% and 2%, respectively in the second quarter of 2019, as compared to the second quarter of 2018. The number of paid downloads increased by 3% and changes in our product mix drove a 1% increase in revenue per download.
Income from Operations
Income from operations was $3.1 million, a decrease of $2.6 million, or 45%, compared to the second quarter of 2018, primarily as a result of an increase in operating expenses of $7.7 million, or 5%, partially offset by the increase in revenue. The increase in operating expenses is attributable to general and administrative expenses, which include increases in compensation, one-time severance costs, and depreciation and amortization.