Shuterstock Net Falls 10%, CEO Resigns

Scott Peters
03 May, 2022
New York City

Shutterstock, Inc reported first quarter 2022 revenues increased 9% to $199 million and net income fell 10% to $26.5 million from a year ago. 

Diluted earnings per share declined to 71 cents from 79 cents a year ago. 

E-commerce revenues increased 7% to $127 million enterprise revenues rose 11% to $72 million. 

E-commerce revenues represent 64% and enterprise sales channel represent 36% of total revenues.  

E-commerce revenue growth was driven by higher subscriber revenue and also benefited from acquisitions of TurboSquid and PicMonkey.

Revenues in constant currency increased 11% in the quarter matching the growth rate in the prior year's period. 

Free cash flow in the quarter declined to $10.2 million from $26.8 million a year ago. 

The company plans to pay a quarterly dividend of 24 cents per outstanding common stock, payable on June 16, 2022 to stockholders of record at the close of business on June 2, 2022

Total subscribers at the end of the quarter increased to 359,000 from 306,000 a year ago. 

Average revenues per customer in the last twelve months increased to $355 from $342 a year ago, average paid image downloads per month declined to 44.6 million from 45.8 million, and revenue per download increased to $4.22 from $3.96. 

Shutterstock stock declined 10.8% to $68.77 and has dropped 37% in the year 2022 so far. 

Guidance and Outlook 

The company reiterated its previous full-year 2022 outlook. 

The company guided full-year revenues to grow between 8% and 10% to between $835 million and $850 million. 

The company estimated adjusted operating earnings between $210 million and $217 million and adjusted earnings per share between $3.65 and $3.80 

Separately, the company said Stan Pavlovsky resigned as chief executive and a director to purse other interests. 

The company said its executive chairman and founder Jonathan Oringer will serve as interim CEO until the license content provider names a successor.