Shares of global creative platform provider Shutterstock, Inc. (SSTK) have declined 15.8% so far this year. Recently, SSTK delivered a robust fourth-quarter performance marked by better-than-expected numbers on both its top-line and bottom-line fronts.
Driven by enterprise sales and the popularity of subscription products, revenue increased 13.7% year-over-year to $205.8 million, beating estimates by $3.9 million. Earnings per share at $0.77 came in ahead of expectations by $0.29. Notably, the company’s number of subscribers jumped 22% to 343,000, and average revenue per customer increased 14% to $368 during this period.
Moreover, SSTK’s image collection increased 11% to more than 400 million images, and footage collection increased 14% to more than 24 million clips during this period.
With these developments in mind, let us take a look at the changes in SSTK’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, Shutterstock’s top risk category is Finance & Corporate, contributing 16 of the total 45 risks identified for the stock.
In its recent report, the company has added one key risk factor under the Legal & Regulatory risk category. Compared to a sector average of 6 Legal & Regulatory risk factors, SSTK has 5.
SSTK highlighted that while its global provision for income taxes is sufficient, the final tax liability could differ from the amount recorded by the company in its financial statements. SSTK’s financial results could see an adverse impact if there is an additional income tax liability.
Further, laws and regulations associated with income tax could be changed or enacted, and current laws and regulations could be applied to the company in a way that may result in higher costs of its products and services, which may negatively impact its results of operations.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Shutterstock by 3.5 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock based on activities of 4 hedge funds. Notably, Joel Greenblatt’s Gotham Asset Management has a holding worth about $1.77 million in SSTK.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Yamana’s Q4 Earnings Exceed Estimates on Higher Gold Production
Amazon and Reliance Fight for Indian Cricket League Media Rights – Report
Aon Raises Share Buyback Authority to $9.2B, Hikes Dividend