Slide 1: Fourth Quarter and Full Year 2019
Fourth Quarter and Full Year 2019 February 13, 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 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 Webdam1, adjusted EBITDA
Slide 4: Fourth Quarter 2019 Financial Highlights
Fourth Quarter 2019 Financial Highlights Compared to Fourth Quarter 2018: • Revenue increased 3% to $166.4 million. ◦ Foreign currency did not have a significant impact on fourth quarter revenue growth. • Net income decreased 71% to $4.4 million. • Adjusted EBITDA decreased 29% to $24.1 million. • N
Slide 5: Fourth Quarter 2019 Operating Highlights
Fourth Quarter 2019 Operating Highlights Compared to Fourth Quarter 2018: • Paid downloads of 47.7 million, up 2%. • Image library expanded to approximately 314 million images, up 30%. • Footage library expanded to approximately 17 million video clips, up 30%. • More than 1.1 million contributors ma
Slide 6: Full Year 2019 Financial Highlights
Full Year 2019 Financial Highlights Compared to full year 2018: • Revenue increased 4% to $650.5 million. On a constant currency basis, revenue increased 6%. • Net income decreased 63% to $20.1 million. • Adjusted EBITDA decreased 8% to $96.3 million. • Net income per diluted share decreased by $0.9
Slide 7: Liquidity and Capital Allocation
Liquidity and Capital Allocation • Cash and cash equivalents of $303.3 million as of December 31, 2019, compared to $230.9 million as of December 31, 2018. • In the year ended December 31, 2019: ◦ Cash provided by operations of $102.6 million. ◦ Net cash taxes paid of $1.9 million, compared to $0.6
Slide 8: Consolidated Quarterly Financial Results
Consolidated Quarterly Financial Results ($ in millions) Three Months Ended December 31, % Change 2019 2018 Inc. / (Dec.) Total Revenues $ 166.4 $ 162.1 3% Cost of revenue 71.8 68.8 4% Sales and marketing 47.2 43.0 10 % Product development 15.1 11.7 29 % General and administrative 26.5 22.9 16 % Tot
Slide 9: Consolidated Annual Financial Results
Consolidated Annual Financial Results ($ in millions) Year Ended December 31, % Change 2019 2018 Inc. / (Dec.) Total Revenues $ 650.5 $ 623.3 4% Cost of revenue 278.2 267.7 4% Sales and marketing 181.7 166.4 9% Product development 57.2 58.9 (3)% General and administrative 113.2 97.8 16 % Total opera
Slide 10: Adjusted Net Income
Adjusted Net Income (in millions, except per share data) Three Months Ended Year Ended December 31, December 31, 2019 2018 2019 2018 Net Income $ 4.4 $ 14.9 $ 20.1 $ 54.7 Add / (Less): Non-Cash Equity-Based Compensation 4.9 5.9 22.8 23.9 Acquisition-Related Intangible Amortization 0.7 0.9 4.7 3.8 Ac
Slide 11: Free Cash Flow
Free Cash Flow ($ in millions) Three Months Ended Year Ended December 31, December 31, 2019 2018 2019 2018 Net Cash From Operations $ 25.6 $ 33.7 $ 102.6 $ 102.2 Less: Capital Expenditures (6.5) (5.3) (26.1) (34.9) Less: Content Acquisitions (1.4) (1.0) (3.3) (3.8) Free Cash Flow $ 17.6 $ 27.3 $ 73.
Slide 12: Historical Revenue Detail by Sales Channel
Historical Revenue Detail by Sales Channel ($ in millions) 2019 2018 Q4 Q3 Q2 Q1 Annual Q4 Q3 Q2 Q1 Annual E-commerce $ 100.9 $ 96.2 $ 97.0 $ 98.1 $ 392.2 $ 95.6 $ 88.7 $ 91.7 $ 89.7 $ 365.7 YOY Growth 6% 9% 6% 9% 7% 9% 9% 12% 11% 10% Enterprise 65.5 62.8 64.7 65.2 258.2 66.5 62.9 64.9 60.6 254.9 YO
Slide 13: Depreciation and Amortization
Depreciation and Amortization Depreciation and amortization expense is included within the Statements of Operations, as follows: ($ in millions) Three Months Ended December 31, Year Ended December 31, % Change % Change 2019 2018 Fav / (Unfav) 2019 2018 Fav / (Unfav) Cost of revenue $ 10.8 $ 9.4 (15)
Slide 14: 2020 Guidance
2020 Guidance The Company's current expectations for the full year 2020 are as follows: 2020 Guidance Revenue $665 - $690 million YOY Growth vs. 2019 2% to 6% Adjusted EBITDA $100 - $107 million YOY Growth vs. 2019 4% to 11% Adjusted Net Income per diluted share $1.42 to $1.58 YOY Growth vs. 2019 15
Slide 15: © 2020 Shutterstock, Inc. All rights reserved.
Please remember this information is confidential. © 2020 Shutterstock, Inc. All rights reserved.