Shutterstock, Inc. · NYSE:SSTK
Shutterstock — Q3 2017 Earnings Presentation
12 slides from Shutterstock's earnings presentation, Oct 31, 2017
Slide 1: Third Quarter 2017
Third Quarter 2017 October 31, 2017
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: Non-GAAP Financial Measures
3 In addition to reporting financial results in accordance with GAAP, we also refer to adjusted EBITDA, adjusted net income, revenue growth on a constant currency basis, adjusted EBITDA margin and adjusted EBITDA growth on a constant currency basis and free cash flow. We define adjusted EBITDA as ne
Slide 4: Q3'17 Financial Highlights
4 Compared to Q3'16: • Revenue increased 15% to $141.1 million primarily driven by new customers, an increase in paid downloads and increased activity from enterprise clients • Revenue increased 14% on a constant currency basis • Income from Operations decreased 51% to $5.6 million, driven by higher
Slide 5: Q3'17 Operating Highlights
5 Q3'17 Operating Highlights Compared to Q3'16: • Paid downloads of 41.9 million up 2% • Image library expanded to 155.8 million images, up 52% • Video library expanded to 8.3 million video clips, up 54% • More than 300,000 contributors made their images, video clips & music tracks available • More
Slide 6: Consolidated Financial Results
6 Consolidated Financial Results ($ in millions) Three Months Ended September 30, 2017 2016 % Δ Total Revenues $ 141.1 $ 123.1 15 % Total Expenses 136.1 113.7 20 % Net Income 5.0 9.4 (47 )% Plus: Depreciation & Amortization 10.2 5.2 96 % Plus: Equity-Based Compensation 6.9 6.5 6 % Plus: Other Adjust
Slide 7: Revenue by Sales Channel
7 Revenue by Sales Channel 2017 2016 2015 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 E-commerce $ 85.9 $ 85.9 $ 83.8 $ 84.2 $ 80.8 $ 83.5 $ 79.9 $ 81.3 $ 75.5 $ 75.1 $ 72.1 Enterprise 49.3 42.9 41.9 41.3 38.2 37.1 33.4 31.7 28.8 26.5 23.0 Other 5.8 5.1 4.6 4.7 4.1 3.8 3.4 3.0 3.0 2.8 2.4 Total Revenues $ 141.
Slide 8: Free Cash Flow
8 Free Cash Flow ($ in millions) Three Months Ended September 30, 2017 2016 Net Cash From Operations $ 31.1 $ 35.9 Less: Capital Expenditures (11.9 ) (10.5 ) Less: Content Acquisitions (1.0 ) (4.8 ) Free Cash Flow $ 18.2 $ 20.7 Note: Totals may not sum exactly due to rounding.
Slide 9: Adjusted Net Income
9 Adjusted Net Income ($ in millions, except per share data) Three Months Ended September 30, 2017 2016 Net Income $ 5.0 $ 9.4 Add: Non-Cash Equity-Based Comp 6.9 6.5 Add: Acquisition-Related Amortization 1.9 1.1 Add: Acquisition-related long-term incentives and contingent consideration 0.5 0.1 Less
Slide 10: Share Repurchase Activity
10 Share Repurchase Activity Note: Share repurchase plan implemented in Nov’15. Activity to date through 9/30/2017. Note: Total repurchase activity % and % of shares acquired calculated on shares outstanding at 9/30/15. Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Total Activity S
Slide 11: 2017 Guidance
11 2017 Guidance Current 2017 Guidance Previously Announced 2017 Guidance Revenue $535 - $545 million Income from Operations $30 - $40 million Adjusted EBITDA $85 - $95 million Non-Cash Equity Based Comp. ~$30 million Capital Expenditures ~$55 million ~$45 million Capitalized Labor (included in tota
Slide 12: All rights reserved.
© 2017 Shutterstock, Inc. All rights reserved.