Slide 1: Fourth Quarter and Full Year 2018
Fourth Quarter and Full Year 2018 February 26, 2019 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 In addition to reporting results in accordance with United States generally accepted accounting principles (GAAP), we also refer to adjusted EBITDA, adjusted net income, revenue growth on a constant currency basis, revenue excluding the impact of Webdam, revenue growth ex
Slide 4: Full Year 2018 Financial Highlights
Full Year 2018 Financial Highlights Compared to full year 2017: • Revenue increased 11.9% to $623.3 million driven by positive year-over-year growth in both our e- commerce and enterprise channels and an increase in paid download activity. ◦ Excluding the impact from Webdam, revenue growth was appro
Slide 5: Fourth Quarter 2018 Financial Highlights
Fourth Quarter 2018 Financial Highlights Compared to Fourth Quarter 2017: • Revenue increased 6.7% to $162.1 million. ◦ Excluding the impact from Webdam, revenue growth was approximately 10.1% for 2018 compared to 2017. ◦ Revenue growth on a constant currency basis was approximately 7.9%. ◦ Revenue
Slide 6: Fourth Quarter 2018 Operating Highlights
Fourth Quarter 2018 Operating Highlights Compared to Fourth Quarter 2017: • Paid downloads of 46.8 million, up 6.6%. • Image library expanded to approximately 241.7 million images, up 42%. • Video library expanded to approximately 13.1 million video clips, up 44%. • More than 650,000 contributors ma
Slide 7: Liquidity and Capital Allocation
Liquidity and Capital Allocation • Cash and cash equivalents of $230.9 million as of December 31, 2018, compared to $253.4 million as of December 31, 2017. • In the year ended December 31, 2018: ◦ Cash generated by operations of $102.2 million. ◦ Net proceeds from the Sale of Webdam(1) of $41.8 mill
Slide 8: Consolidated Annual Financial Results
Consolidated Annual Financial Results ($ in millions) Year Ended December 31, % Change 2018 2017 Fav / (Unfav) Total Revenues (1) $ 623.3 $ 557.1 11.9 % Operating Expenses (590.8) (530.8) (11.3)% Gain on Sale of Webdam 38.6 — NM Other income / (expense) (5.0) 3.7 NM Provision for Income Taxes (11.4)
Slide 9: Consolidated Quarterly Financial Results
Consolidated Quarterly Financial Results ($ in millions) Three Months Ended December 31, % Change 2018 2017 Fav / (Unfav) Total Revenues (1) $ 162.1 $ 151.8 6.7 % Operating Expenses (146.4) (144.6) (1.2)% Other income / (expense) 1.0 1.6 NM Provision for Income Taxes (1.8) (6.8) 73.5 % Net Income $
Slide 10: Historical Revenue Detail by Sales Channel
Historical Revenue Detail by Sales Channel ($ in millions) 2018 2017(1) Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual E-commerce $ 89.7 $ 91.7 $ 88.7 $ 95.6 $ 365.7 $ 80.6 $ 82.2 $ 81.8 $ 87.8 $ 332.4 Enterprise 60.6 64.9 62.9 66.5 254.9 46.2 48.1 55.1 59.3 208.7 Other (2) 2.7 — — — 2.7 3.5 3.7 4.2 4.7 16.1
Slide 11: Historical Deferred Revenue
Historical Deferred Revenue ($ in millions) 12/31/2018 09/30/2018 06/30/2018 03/31/2018 12/31/2017 Reported Deferred Revenue(a) $ 139.6 $ 141.4 $ 139.9 $ 139.5 $ 157.8 Webdam Deferred Revenue(b) $ (10.2) Impact of Adoption of ASC 606 (Revenue Recognition)(c) $ (9.9) $ 137.7 (a) Represents deferred r
Slide 12: Free Cash Flow
Free Cash Flow ($ in millions) Three Months Ended Year Ended December 31, December 31, 2018 2017 2018 2017 Net Cash From Operations $ 33.7 $ 36.5 $ 102.2 $ 108.0 Less: Capital Expenditures (5.3) (17.4) (34.9) (55.1) Less: Content Acquisitions (1.0) (0.4) (3.8) (3.0) Free Cash Flow $ 27.3 $ 18.7 $ 63
Slide 13: Adjusted Net Income
Adjusted Net Income (in millions, except per share data) Three Months Ended Year Ended December 31, December 31, 2018 2017 2018 2017 Net Income $ 14.9 $ 2.1 $ 54.7 $ 16.7 Add: Non-Cash Equity-Based Comp 5.9 4.8 23.9 25.0 Add: Acquisition-Related Amortization 0.9 0.8 3.8 4.8 Add: Acquisition-Related
Slide 14: 2019 Guidance
2019 Guidance The Company's current expectations for the full year 2019, are as follows: 2019 Guidance Revenue $685 - $695 million YOY Growth vs. 2018 10% - 12% Adjusted EBITDA $118 - $123 million YOY Growth vs. 2018 12% - 17% Income from Operations $37 - $47 million Non-Cash Equity Based Comp. $25
Slide 15: © 2019 Shutterstock, Inc. All rights reserved.
Please remember this information is confidential. © 2019 Shutterstock, Inc. All rights reserved.