Shutterstock, Inc. · NYSE:SSTK
Shutterstock — Investor Presentation (February 2024)
20 slides from Shutterstock's investor presentation, Feb 21, 2024
Slide 1: Shutterstock 2027: Long-range Financial Targets
1 February 21, 2024 Shutterstock 2027: Long-range Financial Targets
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly in the discussion of 2027 projected financial information. All statements other than statements of historical fact are forward-l
Slide 3: Executive Summary: Targeting Double Digit Growth in Revenue and Adjusted EBITDA
3NOTE: $mm unless otherwise noted Guidance Industry leading content business Shutterstock 2027: Targeting Double Digit Growth in Revenue and Adjusted EBITDA Track record of standing up new growth businesses Extending TAM opportunity by >10x ContentExecutive Summary Data, Distribution & Services 30%
Slide 4: Shutterstock is a Disciplined Capital Allocator Geared Towards Growth
4NOTE: Dividend yield equal to annualized dividend divided by February 20, 2024 closing share price. Drive operating leverageReturn value to shareholders ● 2023 gross margin ex-D&A: 69% ● 2023 Adj. EBITDA margins: 27.5% ● 2023 FCF margins: 15.8% ● 2019-23 Adj. EBITDA: 26% CAGR ● Unique content asset
Slide 5: Generative AI Creates New Opportunities Across Our Business
5SOURCES: Nvidia Blog (August 8, 2023) and Fast Company (February 2, 2024) Lower cost of content creation Generative AI Creates New Opportunities Across Our Business Introduce new generative AI products (3D / video / image) Leverage generative editing to increase conversion & retention Lead the way
Slide 6: Shutterstock Has Built an Industry Leading Content Business
6 Large Subscription Revenue Stream Shutterstock Has Built an Industry Leading Content Business 771 million Images 54 million Videos 4+ million Music Tracks & SFX 1.3 million 3D Models 3.2 million Contributors 2.1 million Customers 5 Downloads Per Second 35% Video, Music, 3D & Other Revenue as % of
Slide 7: Mix Shift Towards 3D & Video Expected to Drive Faster Growth in Content
7 2027E 7% CAGR Content Revenue Composition of Content Revenue 2019 2023 25% 35% 37% 48% 2019 2023 Video, Music, 3D & Other Revenue as % of Content Revenue Subscription Revenue as % of Content Revenue Non-Image as % of Content 2019 25% 2023 35% 2027 [ ]% Sub Revenue as % of Content 2019 37% 2023 48%
Slide 8: Data, Distribution & Services Customers
8 ContentExecutive Summary Data, Distribution & Services 2027 Data, Distribution & Services Customers Extending Our Global Relationships Across 44k Businesses Beyond Content
Slide 9: Shutterstock Has Stood Up Three Growth Businesses Leveraging Unique Assets
9 Shutterstock Has Stood Up Three Growth Businesses Leveraging Unique Assets Data licensing for customers’ AI/ML model training and analytics needs Data Distribution Services Advertising and API-based content solutions Custom content production servicesDescription Growth in generative AI application
Slide 10: Data, Distribution & Services Multiplies Estimated TAM by >10x
10 Data $9 billion TAM by 2030 / 22% CAGR 2021-2030 Growth Services $47 billion TAM / >10% Growth Distribution $95 billion TAM / 14% CAGR 2023-2025 Growth Stock Content Stock Content $8 billion TAM / 5%-7% Growth Data Services (Virtual Production & Game Development) Distribution (Native Advertising)
Slide 11: Plan in Place to Capitalize on Data, Distribution & Services TAM Opportunity
11 How Shutterstock Wins Monetize Giphy’s audience reach via advertising and premium API offerings Leverage Shutterstock’s 3D assets and generative 3D capabilities Leverage Shutterstock’s global talent network Build a scalable and expanded GTM channel that leverages cloud partners (wholesale → retai
Slide 12: Data, Distribution & Services Expected to Drive Double Digit Revenue Growth
12 2% 5% Data, Distribution & Services Expected to Drive Double Digit Revenue Growth Revenue from Data, Distribution & Services Data, Distribution & Services’ Impact on Total Company Revenue Growth Content Growth (2024E-2027E CAGR) DDS Impact Total Company Growth (2024E-2027E CAGR) 7% 10% +3% 22% CA
Slide 13: Exceptional Profitability with Further Potential to Expand Margins
13 NOTE: Percentages for Gross Margin, Product Development, Sales & Marketing, and General & Administrative have been calculated using the reported balances adjusted for amounts used to reconcile Net Income to Adjusted EBITDA Exceptional Profitability with Further Potential to Expand Margins Content
Slide 14: Shutterstock 2027: Targeting Double Digit Growth in Revenue and Adjusted EBITDA
14 Shutterstock 2027: Targeting Double Digit Growth in Revenue and Adjusted EBITDA ContentExecutive Summary Data, Distribution & Services 2027 Industry leading content business Track record of standing up new growth businesses Extending TAM opportunity by >10x 30% Adjusted EBITDA margins with strong
Slide 15: Appendix
15Proprietary and confidential 15 Appendix
Slide 16: Non-GAAP Financial Measures
16Proprietary and confidential 16 To supplement Shutterstock’s 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
Slide 17: Non-GAAP Financial Measures Usage
17Proprietary and confidential 17 Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other thing
Slide 18: Reconciliation of Non-GAAP Financial Information to GAAP: Adjusted EBITDA
18Proprietary and confidential 18 (in thousands) We define adjusted EBITDA as net income adjusted for depreciation and amortization, write-off of property and equipment, gain on sale of webdam, non-cash equity-based compensation, impairment of lease and related assets, foreign currency transaction g
Slide 19: Reconciliation of Non-GAAP Financial Information to GAAP: Free Cash Flow
19Proprietary and confidential 19 (in thousands) We define free cash flow as cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, and payments related to long-
Slide 20: 20Proprietary and
20Proprietary and confidential 20