Shutterstock, Inc. · NYSE:SSTK

Shutterstock — Q4 2017 Earnings Presentation

14 slides from Shutterstock's earnings presentation, Feb 22, 2018

  1. Slide 1: Fourth Quarter and Full Year 2017

    Fourth Quarter and Full Year 2017 February 22, 2018

  2. Slide 2: Forward-Looking Statements

    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

  3. Slide 3: Non-GAAP Financial Measures

    3 In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (GAAP), we also refer to adjusted EBITDA, adjusted net income, revenue growth on a constant currency basis, adjusted EBITDA margin, adjusted EBITDA growth on a constant curre

  4. Slide 4: FY'17 Financial Highlights

    4 Compared to FY'16: • Revenue increased 12.7% to $557.1 million primarily driven by growth in new customers across our enterprise and e-commerce channels and an increase in paid download activity • Revenue increased 12.6% on a constant currency basis • Income from Operations decreased 42% to $26.3

  5. Slide 5: Q4'17 Financial Highlights

    5 Compared to Q4'16: • Revenue increased 16.6% to $151.8 million primarily driven by growth in new customers across our enterprise and e-commerce channels and an increase in paid download activity • Revenue increased 13.9% on a constant currency basis • Income from Operations decreased 46% to $7.2 m

  6. Slide 6: Q4'17 Operating Highlights

    6 Q4'17 Operating Highlights Compared to Q4'16: • Paid downloads of 43.9 million up 4% • Image library expanded to 170.1 million images, up 46% • Video library expanded to 9.1 million video clips, up 47% • More than 350,000 contributors made their images, video clips & music tracks available • More

  7. Slide 7: First Quarter 2018 Strategic Transactions

    7 First Quarter 2018 Strategic Transactions During Q1 2018, the following strategic transactions were executed: • On January 4, 2018, the Company invested $15.0 million in convertible preferred shares issued by Zcool Network Technology Limited, the operator of an e-commerce content platform in China

  8. Slide 8: Consolidated Annual Financial Results

    8 Consolidated Annual Financial Results ($ in millions) Year Ended December 31, 2017 2016 % Δ Total Revenues $ 557.1 $ 494.3 13 % Total Expenses 540.4 461.7 17 % Net Income 16.7 32.6 (49 )% Plus: Depreciation & Amortization 35.5 19.9 78 % Plus: Equity-Based Compensation 25.0 28.1 (11 )% Plus: Other

  9. Slide 9: Consolidated Quarterly Financial Results

    9 Consolidated Quarterly Financial Results ($ in millions) Three Months Ended December 31, 2017 2016 % Δ Total Revenues $ 151.8 $ 130.2 17 % Total Expenses 149.7 120.3 24 % Net Income 2.1 9.9 (79 )% Plus: Depreciation & Amortization 10.5 5.8 81 % Plus: Equity-Based Compensation 4.8 7.0 (31 )% Plus:

  10. Slide 10: Revenue Detail

    10 Revenue Detail 2016 2017 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Revenue by Sales Channel: E-commerce $ 79.9 $ 83.5 $ 80.8 $ 84.2 $ 328.4 $ 83.8 $ 85.9 $ 85.9 $ 92.4 $ 348.0 Enterprise 33.4 37.1 38.2 41.3 150.0 41.9 42.9 49.3 51.9 186.0 Other 3.4 3.8 4.1 4.7 16.0 4.6 5.1 5.8 7.5 23.1 Total Revenues $

  11. Slide 11: Free Cash Flow

    11 Free Cash Flow ($ in millions) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Net Cash From Operations $ 36.5 $ 24.5 $ 108.0 $ 100.7 Less: Capital Expenditures (17.4 ) (13.2 ) (55.1 ) (40.0 ) Less: Content Acquisitions (0.4 ) (1.8 ) (3.0 ) (8.0 ) Free Cash Flow $ 18.7

  12. Slide 12: Adjusted Net Income

    12 Adjusted Net Income (in millions, except per share data) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Net Income $ 2.1 $ 9.9 $ 16.7 $ 32.6 Add: Non-Cash Equity-Based Comp 4.8 7.0 25.0 28.1 Add: Acquisition-Related Amortization 0.8 1.0 4.8 4.3 Add: Acquisition-relate

  13. Slide 13: 2018 Guidance

    13 2018 Guidance 2018 Guidance YOY Growth vs. 2017 Revenue $625 - $635 million 15.5% - 17.4% Adjusted EBITDA $105 - $110 million 19.3% - 25.0% Income from Operations $30 - $35 million Non-Cash Equity Based Comp. $28 million Capital Expenditures $48 million Effective Tax Rate Mid 20’s% The Company’s

  14. Slide 14: All rights reserved.

    © 2017 Shutterstock, Inc. All rights reserved.

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