Slide 1: Third Quarter 2018
Third Quarter 2018 October 30, 2018 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 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, revenue excluding the impact of Webdam,
Slide 4: Third Quarter 2018 Financial Highlights
Third Quarter 2018 Financial Highlights Compared to Third Quarter 2017: • Revenue increased 7.5% to $151.6 million primarily driven by growth in new customers across our enterprise and e-commerce channels and an increase in paid download activity. • Revenue increased 8.0% on a constant currency basi
Slide 5: Third Quarter 2018 Operating Highlights
Third Quarter 2018 Operating Highlights Compared to Third Quarter 2017: • Paid downloads of 43.9 million, up 4.9%. • Image library expanded to approximately 221 million images, up 42%. • Video library expanded to approximately 12 million video clips, up 44%. • More than 550,000 contributors made the
Slide 6: Liquidity and Capital Allocation
Liquidity and Capital Allocation • Cash and Cash Equivalents of $206.4 million as of September 30, 2018, compared to $253.4 million as of December 31, 2017. • In the nine months ended September 30, 2018: ◦ Cash generated by operations of $68.5 million. ◦ Proceeds from the Sale of Webdam of $41.8 mil
Slide 7: Historical Revenue Detail by Sales Channel
Historical Revenue Detail by Sales Channel ($ in millions) 2018 2017(1) 2016(1) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 E-commerce $ 88.7 $ 91.7 $ 89.7 $ 87.8 $ 81.8 $ 82.2 $ 80.6 $ 81.4 $ 78.1 Enterprise 62.9 64.9 60.6 59.3 55.1 48.1 46.2 45.4 42.1 Digital Asset Management(2) (Webdam) — — 2.7 4.7 4.2 3.7 3.5 3.
Slide 8: Historical Deferred Revenue
Historical Deferred Revenue ($ in millions) 09/30/2018 06/30/2018 03/31/2018 12/31/2017 09/30/2017 Reported Deferred Revenue(a) $ 141.4 $ 139.9 $ 139.5 $ 157.8 $ 146.4 Webdam Deferred Revenue(b) (10.2) (d) Impact of Adoption of ASC 606 (Revenue Recognition)(c) (9.9) (d) $ 137.7 (a) Represents deferr
Slide 9: Adjusted EBITDA
Adjusted EBITDA ($ in millions) Three Months Ended September 30, 2018 2017 %Δ Total Revenues $ 151.6 $ 141.1 7% Total Expenses 144.2 136.1 6% Net Income 7.4 5.0 NM Plus: Depreciation & Amortization 11.7 10.2 15 % Plus: Equity-Based Compensation 6.0 6.9 (13)% Plus: Other Adjustments (1) 0.5 0.4 NM Pl
Slide 10: Free Cash Flow
Free Cash Flow ($ in millions) Three Months Ended September 30, 2018 2017 Net Cash From Operations $ 30.5 $ 31.1 Less: Capital Expenditures (6.5) (11.9) Less: Content Acquisitions (1.6) (1.0) Free Cash Flow $ 22.4 $ 18.2 10
Slide 11: Adjusted Net Income
Adjusted Net Income (in millions, except per share data) Three Months Ended September 30, 2018 2017 Net Income $ 7.4 $ 5.0 Add: Non-Cash Equity-Based Comp 6.0 6.9 Add: Acquisition-Related Amortization 0.9 1.9 Add: Acquisition-Related Long-Term Incentives and Contingent Consideration 0.7 0.5 Add: Imp
Slide 12: 2018 Guidance
2018 Guidance For the full year 2018, excluding the impact of Webdam, the Company has tightened guidance with respect to Revenue, Adjusted EBITDA, and Income from Operations and has improved guidance for Non-cash equity-based compensation expense, Capital expenditures and Effective tax rate as follo
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