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NEW YORK - On Wednesday, Shutterstock, Inc. (NYSE:SSTK) reported third-quarter financial results that exceeded analyst expectations, driven by strong performance in its Data, Distribution, and Services segment.
The visual content company’s shares rose 2.12% in pre-market trading after the release.
The company posted adjusted earnings per share of $0.99, significantly beating the analyst consensus of $0.63. Revenue reached $260.1 million, surpassing the $255.6 million estimate and representing a 4% increase compared to $250.6 million in the same quarter last year.
While Shutterstock ’s Content business declined 5% YoY to $194.4 million, its Data, Distribution, and Services segment surged 40% to $65.7 million, accounting for 25% of total revenue. The company maintained strong profitability with adjusted EBITDA margins exceeding 30% for the second consecutive quarter.
"Shutterstock achieved another strong quarter of financial results," said CEO Paul Hennessy. "Revenue grew 4% on the back of the fast-growing Data, Distribution, and Services business, while Adjusted EBITDA margins remained over 30% for the second consecutive quarter, and Free Cash Flow significantly increased."
The company’s adjusted EBITDA rose 13% YoY to $79.4 million, with margins improving to 30.5% from 27.9% in the prior year period. Free cash flow increased substantially to $75.2 million, up from $45.7 million in Q3 2024.
Shutterstock’s subscriber base stood at 1.06 million at quarter-end, slightly down from 1.105 million a year ago. The company continues to enhance its unlimited content products by incorporating AI image, video, and audio generative models into its offerings.
Regarding the pending merger with Getty Images, Hennessy affirmed the company remains committed to the deal and is working to secure necessary regulatory clearances from the UK’s Competition and Markets Authority.
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