Shutterstock (0A8F) AI Stock Analysis

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Shutterstock

(LSE:0A8F)

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Positive Factors

Global content marketplace and diversified monetizationA broad digital content marketplace serves multiple customer groups and creative workflows, while subscriptions, enterprise contracts, data licensing and platform services diversify monetization. This business model can support recurring demand and cross-selling when content usage and customer retention remain healthy.

Negative Factors

Sharp revenue contraction and large net lossThe steep quarterly revenue decline and reversal to a large net loss indicate weakened demand or monetization across major businesses. Persistent deterioration would reduce operating leverage, constrain reinvestment, and make it harder for the company to convert its content scale into durable earnings.

Shutterstock (0A8F) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $98.65M
Dividend Yield: 49.37%
Average Volume (3M): 5,045
Price to Earnings (P/E): -0.2
Beta (1Y): 0.67
Revenue Growth: -20.09%
EPS Growth: -767.05%
Country: UK
Employees: 1,565
Sector: Communication Services
Sector Strength: 60
Industry: Internet Content & Information

Shutterstock Business Overview & Revenue Model

Company Description

Shutterstock, Inc. provides platform to connect brands and businesses to high quality content in North America, Europe, and internationally. The company offers image services consisting of photographs, vectors, and illustrations, which is used in vis...

Shutterstock Earnings Call Summary

Earnings Call Date:Oct 29, 2024(Q3-2024)|% Change Since:-89.31%|Next Earnings Date:Feb 11, 2027

Earnings Call SentimentPositive

The earnings call presented a positive outlook with record revenues and EBITDA, strong performance from the Envato acquisition, and growth in Data Distribution and Services. However, there was a decline in core Content revenues, although improvement was noted. The overall sentiment is upbeat with raised guidance and strategic growth initiatives.

Positive Updates

Record Third Quarter Revenues and Adjusted EBITDA

Shutterstock achieved record third quarter revenues of $251 million, representing a 7.4% year-over-year growth, and record adjusted EBITDA of $70 million with a 28% margin.

Negative Updates

Decline in Core Content Revenues

Excluding the Envato contribution, Content revenues declined 7% year-over-year, although this was an improvement from previous quarters' declines.

Company Guidance

During the Q3 2024 earnings call for Shutterstock (SSTK), the company provided updated guidance, raising its revenue expectations to between $935 million and $940 million, representing a 7% to 7.5% year-over-year growth. Adjusted EBITDA guidance was also increased to a range of $247 million to $250 million. The call highlighted record third-quarter revenues of $251 million, a 7.4% year-over-year increase, and adjusted EBITDA of $70 million with a 28% margin. Content revenue reached $204 million, a 14% year-over-year increase, bolstered by Envato's $38 million contribution. Shutterstock's Data Distribution and Services segment generated $47 million in revenue, with substantial growth driven by AI-generated content and partnerships such as GIPHY's collaboration with TikTok. The company remains optimistic about achieving its 2027 targets of $1.2 billion in revenue and $350 million in EBITDA.

Shutterstock Risk Analysis

Shutterstock disclosed 55 risk factors in its most recent earnings report. Shutterstock reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Shutterstock Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

GB:0A8F against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
META	68Neutral	$1.64T	21.18	30.27%	0.33%	27.53%	28.01%
ZDGE	66Neutral	$35.55M	-157.38	-0.53%	2.64%	7.58%	93.70%
FVRR	65Neutral	$294.80M	11.10	6.02%	―	-6.10%	14.87%
PINS	61Neutral	$10.87B	76.96	5.25%	―	15.38%	-91.36%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SNAP	56Neutral	$8.46B	-57.16	-7.10%	―	13.76%	68.95%

* Communication Services Sector Average

Performance Comparison

GB:0A8F and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0A8F	Shutterstock	2.77	-17.79	-86.51%
META	Meta Platforms, Inc.	628.77	20.94	3.45%
ZDGE	Zedge Inc	2.88	0.11	3.90%
SNAP	Snap Inc	5.34	-3.24	-37.76%
PINS	Pinterest	19.23	-7.54	-28.17%
FVRR	Fiverr International	7.93	-14.40	-64.49%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Shutterstock AI Stock Analysis