Slide 1: Second Quarter 2016 Summary
Second Quarter 2016 Summary August 4, 2016
Slide 2: Safe Harbor Statement
2 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 include information concern
Slide 3: The Leading Global Marketplace for Stock Content
3 The Leading Global Marketplace for Stock Content Contributors Photographers Illustrators Videographers Musicians Customers Designers Businesses Marketing Agencies Media Organizations
Slide 4: Q2'16 Financial Highlights
4 - Revenue increased 19% to $124.4 million - Revenue increased approximately 22% excluding the impact of currency primarily driven by new customers, an increase in paid downloads and higher activity from enterprise clients - Income from Operations increased 8% to $10.5 million and Adjusted EBITDA i
Slide 5: Q2'16 Operating Highlights
5 - Image library expanded 61% to 92.1 million images - Video library expanded 69% to 4.9 million video clips - Paid downloads grew 21% to 43.4 million - Revenue per download of $2.81, up 1% excluding the impact of foreign currency movements - More than 1.5 million customers contributed to revenue i
Slide 6: Consolidated Financial Results
Consolidated Financial Results ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 % 2016 2015 % Revenues $124.4 $104.4 19% $241.1 $201.9 19% Operating Expenses 113.9 94.7 20% 219.8 184.0 19% Income from Operations 10.5 9.7 8% 21.3 17.9 19% Add: Dep. & Amort. 4.8 3.5 37%
Slide 7: Key Financial Results
Key Financial Results Q2’16 Y/Y Change Reported Adjusted Revenue Growth 19% 22% Income from Operations Growth 8% 20% Adjusted EBITDA Growth 9% 15% Revenue per Download Growth (1%) 1% Paid Downloads 21% 21% Adjusted EBITDA Margin 18% 22% Note: Adjusted growth excludes the impact of foreign currency w
Slide 8: Free Cash Flow
Free Cash Flow 8 ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Cash From Operations $18.6 $18.6 $41.6 $40.1 CapEx and Content Acquisitions (9.3) (4.5) (17.8) (7.6) Free Cash Flow $9.3 $14.1 $23.8 $32.5 Note: Totals may not sum exactly due to rounding.
Slide 9: Non-GAAP Net Income
Non-GAAP Net Income 9 ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 GAAP Net Income $7.2 $5.3 $13.4 $8.6 Add: Non-Cash Equity-Based Comp 7.3 7.6 14.6 15.1 Add: Acquisition-Related Amortization 1.1 1.2 2.3 2.1 Add: Change in Fair Value of Contingent Conside
Slide 10: Share Repurchase Activity
Share Repurchase Activity 10 Note: Share repurchase plan implemented in Nov’15. To date activity through 8/2/16. Note: % of shares acquired calculated as % of shares outstanding at beginning of each period. Note: Total repurchase activity % calculated as % of shares outstanding at 9/30/15. 2015 Q1 2
Slide 11: 2016 Guidance
2016 Guidance 2016 Guidance Implied Y/Y Growth Revenue $495 - $510 million 17% - 20% Income from Operations $43 - $51 million 5% - 24% Adjusted EBITDA $95 - $100 million 12% - 18% Non-Cash Equity Based Comp. $28 - $33 million Capital Expenditures $30 - $35 million 11 2016 Guidance Numbers Assume Cur
Slide 12: Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, we also refer to adjusted EBITDA, non-GAAP net income and free cash flow. Shutterstock defines adjusted EBITDA as income from operations adjusted for depreciation, amortization, disposals, non-cash equity-based compensation and acce