Shutterstock, Inc. · NYSE:SSTK

Shutterstock — FY2020 Earnings Presentation

16 slides from Shutterstock's earnings presentation, Feb 11, 2021

  1. Slide 1: Fourth Quarter and Full Year 2020

    Fourth Quarter and Full Year 2020 February 11, 2021 Please remember this information is confidential.

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements in

  3. Slide 3: Non-GAAP Financial Measures

    Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock's management considers certain financial measures that are not prepared in accordance with GAAP, colle

  4. Slide 4: Fourth Quarter 2020 Financial Highlights

    Fourth Quarter 2020 Financial Highlights Compared to Fourth Quarter 2019: • Revenue increased 9% to $180.9 million. ▪ On a constant currency basis, revenue increased 7%. • Net income increased 495% to $25.9 million. • Adjusted EBITDA increased 101% to $48.5 million. • Net income per diluted share in

  5. Slide 5: Fourth Quarter 2020 Operating Highlights

    Fourth Quarter 2020 Operating Highlights Compared to Fourth Quarter 2019: • Subscribers increased 45%, to 281,000. • Subscriber revenue increased 18%, to $71.1 million. • Average revenue per customer (LTM) increased 0.9% to $333. • Paid downloads decreased 4% to 45.8 million. • Image library expande

  6. Slide 6: Full Year 2020 Financial Highlights

    Full Year 2020 Financial Highlights Compared to full year 2019: • Revenue increased 2% to $666.7 million. ◦ Foreign currency fluctuations did not have a significant impact on full year 2020 revenues. • Net income increased 257% to $71.8 million. • Adjusted EBITDA increased 61% to $154.9 million. • N

  7. Slide 7: Liquidity and Capital Allocation

    Liquidity and Capital Allocation Cash Flows: • Cash and cash equivalents increased $45.4 million during the three months ended December 31, 2020 to $428.6 million. • For the three months ended December 31, 2020: ◦ Operating cash inflows were $64.8 million. ◦ Investing cash outflows were $13.2 millio

  8. Slide 8: Consolidated Quarterly Financial Results

    Consolidated Quarterly Financial Results ($ in thousands) Three Months Ended December 31, % Change 2020 2019 Inc. / (Dec.) Total Revenues $ 180,944 $ 166,371 9% Cost of revenue 66,308 71,797 (8)% Sales and marketing 44,369 47,182 (6)% Product development 9,867 15,103 (35)% General and administrative

  9. Slide 9: Consolidated Annual Financial Results

    Consolidated Annual Financial Results ($ in thousands) Year Ended December 31, % Change 2020 2019 Inc. / (Dec.) Total Revenues $ 666,686 $ 650,523 2% Cost of revenue 259,573 278,176 (7)% Sales and marketing 159,241 181,730 (12)% Product development 46,038 57,216 (20)% General and administrative 116,

  10. Slide 10: Adjusted Net Income

    Adjusted Net Income (in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Net Income $ 25,879 $ 4,353 $ 71,766 $ 20,108 Add / (Less): Non-Cash Equity-Based Compensation 10,628 4,931 28,309 22,815 Acquisition-Related Intangible Amortization

  11. Slide 11: Free Cash Flow

    Free Cash Flow ($ in thousands) Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Net Cash From Operations $ 64,847 $ 25,626 $ 165,072 $ 102,646 Less: Capital Expenditures (5,353) (6,534) (25,630) (26,081) Less: Content Acquisitions (863) (1,448) (2,970) (3,344) Add: Paymen

  12. Slide 12: Revenue by Sales Channel and Billings

    Revenue by Sales Channel and Billings ($ in thousands) 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 E-commerce Revenue $111,805 $102,816 $ 98,164 $ 99,736 $100,902 $ 96,233 $ 96,993 $ 98,113 Enterprise Revenue 69,139 62,411 61,066 61,549 65,469 62,846 64,748 65,219 Total Revenue $180,944 $165,227 $159,230 $161

  13. Slide 13: Key Operating Metrics

    Key Operating Metrics 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Subscribers (in thousands) (1) 281 255 223 209 194 184 173 161 Subscriber revenue (in millions) (2) $ 71.1 $ 67.6 $ 62.7 $ 63.9 $ 60.5 $ 60.1 $ 57.9 $ 58.0 Average revenue per customer (LTM) (3) $ 333 $ 328 $ 326 $ 329 $ 330 $ 327 $ 325 $ 323 P

  14. Slide 14: Non-Cash Compensation and Depreciation and Amortization

    Non-Cash Compensation and Depreciation and Amortization Non-cash equity-based compensation expense is included within the Statements of Operations, as follows: Three Months Ended Year Ended December ($ in thousands) December 31, 31, 2020 2019 2020 2019 Cost of revenue $ 155 $ (25) $ 430 $ 220 Sales

  15. Slide 15: 2021 Guidance

    2021 Guidance The Company's current expectations for the full year 2021 are as follows: 2021 Guidance Revenue $708 - $722 million YOY Growth vs. 2020 6% to 8% Adjusted EBITDA $165 - $171 million Adjusted Net Income per diluted share $2.75 to $2.90 15

  16. Slide 16: © 2021 Shutterstock, Inc. All rights reserved.

    Please remember this information is confidential. © 2021 Shutterstock, Inc. All rights reserved.

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