Slide 1: Third Quarter 2020
Third Quarter 2020 October 27, 2020 Please remember this information is confidential.
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
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
Slide 4: Third Quarter 2020 Financial Highlights
Third Quarter 2020 Financial Highlights Compared to Third Quarter 2019: • Revenue increased 4% to $165.2 million. ▪ On a constant currency basis, revenue increased 3%. • Net income increased $17.6 million to $22.6 million. • Adjusted EBITDA increased $25.8 million to $47.4 million. • Net income per
Slide 5: Third Quarter 2020 Operating Highlights
Third Quarter 2020 Operating Highlights Compared to Third Quarter 2019: • Subscribers increased 39%, to 255,000. • Subscriber revenue increased 12%, to $67.6 million. • Average revenue per customer increased 0.3% to $328. • Paid downloads decreased 6% to 43.4 million. • Image library expanded to app
Slide 6: Liquidity and Capital Allocation
Liquidity and Capital Allocation Cash Flows: • Cash and cash equivalents increased $72.0 million during the three months ended September 30, 2020 to $383.1 million. • For the three months ended September 30, 2020: ◦ Operating cash inflows were $63.9 million. ◦ Investing cash outflows were $6.7 milli
Slide 7: Consolidated Quarterly Financial Results
Consolidated Quarterly Financial Results ($ in millions) Three Months Ended September 30, % Change 2020 2019 Inc. / (Dec.) Total Revenues $ 165.2 $ 159.1 4 % Cost of revenue 60.3 68.6 (12) % Sales and marketing 36.7 45.6 (20) % Product development 10.6 13.5 (22) % General and administrative 28.3 28.
Slide 8: Adjusted Net Income
Adjusted Net Income (in millions, except per share data) Three Months Ended September 30, 2020 2019 Net Income $ 22.6 $ 4.9 Add / (Less): Non-Cash Equity-Based Compensation 8.3 5.5 Acquisition-Related Intangible Amortization 0.5 0.7 Acquisition-Related Long-Term Incentives and Contingent Considerati
Slide 9: Free Cash Flow
Free Cash Flow ($ in millions) Three Months Ended September 30, 2020 2019 Net Cash From Operations $ 63.9 $ 30.3 Less: Capital Expenditures (6.3) (5.8) Less: Content Acquisitions (0.5) (0.6) Free Cash Flow $ 57.0 $ 23.8 Note: Totals may not sum exactly due to rounding. 9
Slide 10: Revenue by Sales Channel and Billings
Revenue by Sales Channel and Billings ($ in millions) 2020 2019 Q3 Q2 Q1 Q4 Q3 Q2 Q1 E-commerce Revenue $102.8 $ 98.2 $ 99.7 $100.9 $ 96.2 $ 97.0 $ 98.1 Enterprise Revenue 62.4 61.1 61.5 65.5 62.8 64.7 65.2 Total Revenue $165.2 $159.2 $161.3 $166.4 $159.1 $161.7 $163.3 Change in Total Deferred Reven
Slide 11: Key Operating Metrics
Key Operating Metrics 2020 2019 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Subscribers (end of period, in thousands) (1) 255 223 209 194 184 173 161 Subscriber revenue (in millions) (2) $ 67.6 $ 62.7 $ 63.9 $ 60.5 $ 60.1 $ 57.9 $ 58.0 Average revenue per customer (trailing twelve months) (3) $ 328 $ 326 $ 329 $ 330 $ 327
Slide 12: 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 ($ in millions) September 30, 2020 2019 Cost of revenue $ 0.1 $ 0.1 Sales and Marketing 0.5 0.4 Product development 1.3 1
Slide 13: © 2020 Shutterstock, Inc. All rights reserved.
Please remember this information is confidential. © 2020 Shutterstock, Inc. All rights reserved.