Slide 1: Second Quarter 2020
Second Quarter 2020 July 28, 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 To supplement our consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock's management considers certain financial measures that are not prepared in accordance with GAAP, colle
Slide 4: Second Quarter 2020 Financial Highlights
Second Quarter 2020 Financial Highlights Compared to Second Quarter 2019: • Revenue decreased 2% to $159.2 million. ▪ On a constant currency basis, revenue decreased 1%. • Net income increased $15.7 million to $19.0 million. • Adjusted EBITDA increased $11.9 million to $37.0 million. • Net income pe
Slide 5: Second Quarter 2020 Operating Highlights
Second Quarter 2020 Operating Highlights Compared to Second Quarter 2019: • Subscribers increased 29%, to 223,000. • Subscriber revenue increased 8% to $62.7 million. • Average revenue per customer increased 0.2% to $326. • Paid downloads decreased 6% to 44.0 million. • Image library expanded to app
Slide 6: Liquidity and Capital Allocation
Liquidity and Capital Allocation Cash Flows: • Cash and cash equivalents of $311.2 million as of June 30, 2020, compared to $303.3 million as of December 31, 2019. • In the six months ended June 30, 2020: ◦ Cash provided by operations of $36.3 million. ◦ Free cash flow1 of $28.6 million in 2020, a d
Slide 7: Consolidated Quarterly Financial Results
Consolidated Quarterly Financial Results ($ in millions) Three Months Ended June 30, % Change 2020 2019 Inc. / (Dec.) Total Revenues $ 159.2 $ 161.7 (2)% Cost of revenue 63.8 68.5 (7)% Sales and marketing 35.6 44.5 (20)% Product development 12.5 13.6 (8)% General and administrative 24.8 32.1 (23)% T
Slide 8: Adjusted Net Income
Adjusted Net Income (in millions, except per share data) Three Months Ended June 30, 2020 2019 Net Income $ 19.0 $ 3.3 Add / (Less): Non-Cash Equity-Based Compensation 3.6 7.8 Acquisition-Related Intangible Amortization 0.5 2.4 Acquisition-Related Long-Term Incentives and Contingent Consideration —
Slide 9: Free Cash Flow
Free Cash Flow ($ in millions) Three Months Ended June 30, 2020 2019 Net Cash From Operations $ 29.5 $ 27.0 Less: Capital Expenditures (6.2) (6.5) Less: Content Acquisitions (0.9) (0.7) Free Cash Flow $ 22.4 $ 19.8 Note: Totals may not sum exactly due to rounding. 9
Slide 10: Revenue and Billings by Sales Channel
Revenue and Billings by Sales Channel ($ in millions) 2020 2019 Q2 Q1 Q4 Q3 Q2 Q1 E-commerce Revenue $ 98.2 $ 99.7 $ 100.9 $ 96.2 $ 97.0 $ 98.1 Enterprise Revenue 61.1 61.5 65.5 62.8 64.7 65.2 Total Revenue $ 159.2 $ 161.3 $ 166.4 $ 159.1 $ 161.7 $ 163.3 Change in Total Deferred Revenue $ (0.7) $ (3
Slide 11: Key Operating Metrics
Key Operating Metrics 2020 2019 Q2 Q1 Q4 Q3 Q2 Q1 Subscribers (end of period, in thousands) (1) 223 209 194 184 173 161 Subscriber revenue (in millions) (2) $ 62.7 $ 63.9 $ 60.5 $ 60.1 $ 57.9 $ 58.0 Average revenue per customer (trailing twelve months) (3) $ 326 $ 329 $ 330 $ 327 $ 325 $ 323 Paid do
Slide 12: Depreciation and Amortization
Depreciation and Amortization Depreciation and amortization expense is included within the Statements of Operations, as follows: Three Months Ended Six Months Ended June ($ in millions) June 30, 30, 2020 2019 2020 2019 Cost of revenue $ 9.3 $ 9.8 $ 18.1 $ 19.5 General and administrative 1.5 3.6 3.3
Slide 13: © 2020 Shutterstock, Inc. All rights reserved.
Please remember this information is confidential. © 2020 Shutterstock, Inc. All rights reserved.