Shutterstock, Inc. · NYSE:SSTK
Shutterstock — Q2 2017 Earnings Presentation
10 slides from Shutterstock's earnings presentation, Aug 2, 2017
Slide 1: Second Quarter 2017
Second Quarter 2017 August 2, 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: Q2'17 Financial Highlights
4 Compared to Q2'16: • Revenue increased 8% to $134.0 million primarily driven by new customers, an increase in paid downloads and increased activity from enterprise clients • Revenue increased 9% on a constant currency basis • Income from Operations decreased 69% to $3.3 million driven by higher ro
Slide 5: Q2'17 Operating Highlights
5 Q2’17 Operating Highlights • Image library expanded to 144.7 million images, up 57% vs. Q2'16 • Video library expanded to 7.6 million video clips, up 55% vs. Q2'16 • More than 250,000 contributors made their images, video clips & music tracks available • Paid downloads of 42.7 million decreased 2%
Slide 6: Consolidated Financial Results
6 Consolidated Financial Results ($ in millions) Three Months Ended June 30, 2017 2016 % Δ Total Revenues $ 134.0 $ 124.4 8 % Total Expenses 130.9 117.2 12 % Net Income 3.1 7.2 (57)% Plus: Depreciation & Amortization 7.8 4.8 63 % Plus: Equity-Based Compensation 7.3 7.3 — % Plus: Other Adjustments (1
Slide 7: Free Cash Flow
7 Free Cash Flow ($ in millions) Three Months Ended June 30, 2017 2016 Net Cash From Operations $ 23.2 $ 18.8 Less: Capital Expenditures (12.3) (8.5) Less: Content Acquisitions (0.8) (0.8) Free Cash Flow $ 10.1 $ 9.4 Note: Totals may not sum exactly due to rounding.
Slide 8: Adjusted Net Income
8 Adjusted Net Income ($ in millions, except per share data) Three Months Ended June 30, 2017 2016 Net Income $ 3.1 $ 7.2 Add: Non-Cash Equity-Based Comp 7.3 7.3 Add: Acquisition-Related Amortization 1.1 1.1 Add: Change in Fair Value of Contingent Consideration — 0.1 Less: Tax Effect of Adjustments
Slide 9: Share Repurchase Activity
9 Share Repurchase Activity Note: Share repurchase plan implemented in Nov’15. Activity to date through 6/30/2017. 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 Total Activity Share Repu
Slide 10: Revised 2017 Guidance
10 Revised 2017 Guidance Current 2017 Guidance Previously Announced 2017 Guidance Revenue $535 - $545 million $545 - 560 million Income from Operations $30 - $40 million $47 - 52 million Adjusted EBITDA $85 - $95 million $105 - 110 million Non-Cash Equity Based Comp. ~$30 million Capital Expenditure