Getty Images Holdings (GETY) AI Stock Analysis

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Getty Images Holdings

(NYSE:GETY)

60Neutral

Getty Images Holdings shows solid financial performance with strong revenue growth and reduced leverage. However, the stock faces bearish technical indicators and moderate valuation concerns. The earnings call highlights growth amid external challenges, while successful refinancing improves future stability. Overall, the stock is positioned for potential growth but faces near-term uncertainties.

Positive Factors

Market Recovery

Media customer revenue increased, reflecting ongoing recovery from the Hollywood strikes, providing an opportunity for continued improvement.

Merger Potential

Getty's proposed merger with Shutterstock is seen as positive due to the potential for increased subscriptions and significant annualized cost synergies.

Revenue Performance

Getty’s 4Q revenue beat expectations by +1%, attributable to outperformance within 'Other' reflecting data licensing revenue incrementality.

Negative Factors

Market Leverage

Getty's lack of exercising price leverage indicates it has little leverage in the market.

Revenue Challenges

Creative and Editorial revenue was lower than expected, missing expectations by -3%/-4%, respectively.

Revenue Decline

Agency revenue reverted to year-over-year declines in 4Q with stabilization factored into '25E guidance.

Getty Images Holdings (GETY) vs. S&P 500 (SPY)

Market Cap

$783.88M

Dividend YieldN/A

Average Volume (3M)1.20M

Price to Earnings (P/E)19.3

Beta (1Y)1.14

Revenue Growth2.48%

EPS Growth103.37%

CountryUS

Employees1,700

SectorCommunication Services

Sector Strength76

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.10

Shares Outstanding412,567,840

10 Day Avg. Volume949,738

30 Day Avg. Volume1,199,876

Financial Highlights & Ratios

PEG Ratio0.19

Price to Book (P/B)N/A

Price to Sales (P/S)0.96

Price to Cash Flow (P/CF)5.70

P/FCF Ratio9.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.16

Price Target Upside560.87% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Getty Images Holdings Business Overview & Revenue Model

Company DescriptionGetty Images Holdings (GETY) is a leading global visual content company, specializing in the creation and distribution of high-quality stock photos, videos, music, and editorial content. The company serves a diverse range of industries including media, advertising, and corporate sectors, providing creative professionals and businesses with access to a vast library of digital assets through its robust online platforms. Getty Images is known for its extensive and curated collections that cater to the visual storytelling needs of its clients worldwide.

How the Company Makes MoneyGetty Images generates revenue primarily through licensing fees for its visual content. Clients, ranging from individuals to large corporations, pay to license images, videos, and music for various uses such as advertising, marketing, and editorial purposes. The company offers both rights-managed and royalty-free licensing options, allowing customers to choose the best fit for their specific needs. Additionally, Getty Images has developed strategic partnerships with major content creators and distributors to expand its library and enhance its offerings. Subscription services also contribute to the company's revenue, providing clients with access to a set number of downloads for a recurring fee. Furthermore, Getty Images capitalizes on exclusive content agreements and collaborations with renowned photographers and media organizations, ensuring a unique and diverse portfolio that attracts and retains a broad customer base.

Getty Images Holdings Financial Statement Overview

Summary

Getty Images Holdings displayed commendable financial performance with robust revenue growth and improved profitability. The company reduced its leverage, enhancing its financial stability. Cash flow generation also strengthened, although cash profitability remains an area for improvement. Overall, the financial statements indicate a positive trajectory with ongoing potential for growth.

Income Statement

Positive

Getty Images Holdings demonstrated a robust gross profit margin of 73.06% in 2024, supported by consistent revenue growth compared to 2023. The net profit margin improved significantly from 2.11% in 2023 to 14.32% in 2024, indicating enhanced profitability. However, the EBIT and EBITDA margins, while healthy, showed no substantial improvement over the previous year.

Balance Sheet

Positive

The balance sheet reflects a strong equity position with an equity ratio of 26.14% in 2024. The debt-to-equity ratio improved significantly to 0.04, indicating reduced leverage and financial risk. Return on Equity (ROE) increased to 20.06%, highlighting better utilization of equity. Despite these improvements, the overall liabilities remain substantial.

Cash Flow

Neutral

Free cash flow grew by 56.19% from 2023 to 2024, indicating improved cash generation. The operating cash flow to net income ratio stood at 0.88, suggesting efficient cash conversion despite a decrease from previous years. However, the free cash flow to net income ratio at 0.88 reflects a moderate level of cash profitability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
917.90M	939.29M	916.55M	926.24M	918.69M	815.40M
	Gross Profit
621.28M	686.22M	666.31M	671.25M	670.54M	589.34M
	EBIT
193.96M	180.81M	127.67M	202.03M	201.99M	156.26M
	EBITDA
230.24M	180.81M	190.59M	186.69M	303.82M	264.89M
	Net Income Common Stockholders
51.39M	134.44M	19.34M	-77.64M	117.07M	-37.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
678.07K	121.17M	138.08M	97.91M	186.30M	156.48M
	Total Assets
829.72M	2.56B	2.60B	2.47B	2.58B	2.51B
	Total Debt
0.00	29.03M	1.45B	1.48B	1.76B	1.81B
	Net Debt
-678.07K	-92.14M	1.31B	1.38B	1.57B	1.65B
	Total Liabilities
89.61M	1.85B	1.92B	1.88B	2.88B	2.83B
	Stockholders Equity
740.11M	670.20M	633.23M	545.08M	-346.74M	-367.29M
Cash Flow		Free Cash Flow
97.22M	118.32M	75.72M	103.83M	139.57M	103.60M
	Operating Cash Flow
112.35M	118.32M	132.72M	163.12M	188.89M	148.46M
	Investing Cash Flow
-72.49M	-72.49M	-57.00M	-61.29M	-136.93M	-53.48M
	Financing Cash Flow
-55.50M	-56.22M	-45.35M	-184.35M	-19.27M	-52.00M

Getty Images Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.84

Price Trends

50DMA

2.01

Negative

100DMA

2.31

Negative

200DMA

2.95

Negative

Market Momentum

MACD

-0.07

Negative

RSI

51.97

Neutral

STOCH

89.16

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GETY, the sentiment is Neutral. The current price of 1.84 is above the 20-day moving average (MA) of 1.67, below the 50-day MA of 2.01, and below the 200-day MA of 2.95, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GETY.

Getty Images Holdings Risk Analysis

Getty Images Holdings disclosed 58 risk factors in its most recent earnings report. Getty Images Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Getty Images Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	70 Outperform	$569.92M	16.21	6.87%	7.53%	6.94%	-66.92%
GETY	60 Neutral	$783.88M	19.31	6.07%	―	2.48%	103.37%
Sector *	58 Neutral	$13.14B	6.83	-2.45%	3.85%	2.36%	-36.75%
SMWB	56 Neutral	$559.10M	―	-53.22%	―	14.63%	62.75%
SEAT	54 Neutral	$522.31M	36.39	5.15%	―	8.80%	-91.33%
ZH	47 Neutral	$324.29M	―	-3.92%	―	-15.62%	79.81%
KIND	46 Neutral	$544.69M	―	-19.38%	―	13.27%	34.93%

* Communication Services Sector Average

Performance Comparison

GETY

Getty Images Holdings

1.84

-2.06

-52.82%

SSTK

Shutterstock

16.17

-24.27

-60.01%

SEAT

Vivid Seats

2.70

-3.23

-54.47%

KIND

Nextdoor Holdings

1.48

-0.52

-26.00%

Zhihu

3.91

0.01

0.26%

SMWB

Similarweb

7.14

-0.57

-7.39%

Getty Images Holdings Earnings Call Summary

Earnings Call Date: Mar 17, 2025 | % Change Since: -14.42% | Next Earnings Date: May 12, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture for Getty Images. While the company experienced a strong Q4 with revenue and adjusted EBITDA growth, increased subscribers, and successful refinancing, it also faced challenges such as a decline in creative revenue, impacts from the Hollywood strikes and LA fires, and a decrease in free cash flow. The sentiment of the call is balanced with notable achievements and significant challenges.

Highlights

Revenue Growth in Q4 2024

In the fourth quarter, Getty Images grew revenue to $247.3 million, representing growth of 9.5% or 8.5% on a currency-neutral basis.

Adjusted EBITDA Increase

Adjusted EBITDA rose to $80.6 million in Q4, up 11.7% or 10.4% on a currency-neutral basis, with a margin of 32.6%.

Increase in Annual Subscribers

Getty Images added 78,000 active annual subscribers to reach 314,000 in Q4 LTM period, an increase of approximately 33% over the comparable LTM period.

Refinancing of Term Loans

Getty Images completed the refinancing of $1 billion in term loans, extending maturities to 2030.

Net Leverage Reduction

The company reduced its net leverage to 3.97 times, below four times for the first time in over a decade.

Lowlights

Challenges in Creative Revenue

Creative revenue was $142.4 million, down 2.4% year-on-year and 3.1% on a currency-neutral basis, primarily due to a shift in download consumption from creative to editorial.

Impact of Hollywood Strikes and LA Fires

The company faced continued disruption from the Hollywood strikes and new challenges due to the Los Angeles fires impacting production activity.

Agency Revenue Decline

Agency segment saw high-single-digit declines in Q4, continuing a trend of decline over the past several years.

Decreased Free Cash Flow

Free cash flow for the full year decreased to $60.9 million compared to $75.7 million in 2023, primarily due to increased cash paid for interest and taxes.

Company Guidance

During the Getty Images earnings call for the fourth quarter and full year 2024, the company reported a revenue increase to $247.3 million in Q4, marking a 9.5% growth, or 8.5% on a currency-neutral basis. Adjusted EBITDA rose by 11.7% to $80.6 million, with a margin of 32.6%. For the entire year, revenue reached $939.3 million, up 2.5%, and adjusted EBITDA was $300.3 million, maintaining a margin of 32%. The company added 78,000 new annual subscribers, totaling 314,000, with a retention rate increase to 92.9%. The Americas led regional growth with a 15.9% increase. In 2025, Getty Images expects revenues between $918 million to $955 million, with an adjusted EBITDA ranging from $272 million to $290 million, factoring in potential impacts from currency fluctuations and recent disruptions like the Los Angeles fires.

Getty Images Holdings Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

Getty Images Completes Major Refinancing to Boost Liquidity

Positive

Feb 21, 2025

On February 21, 2025, Getty Images Holdings, Inc. completed a significant refinancing of approximately $1.042 billion in existing term loans, initially set to mature in 2026. This refinancing, involving new U.S. dollar and euro term facilities, aims to enhance the company’s liquidity and strategic growth potential, allowing it to better seize emerging market opportunities and maximize shareholder returns.

Private Placements and FinancingFinancial Disclosures

Getty Images Initiates Loan Refinancing and Shares Preliminary Results

Positive

Feb 4, 2025

On February 4, 2025, Getty Images announced the initiation of a refinancing process for its senior secured term loan facilities, aiming to replace them with up to $1.05 billion in new term loan facilities. This strategic move is intended to extend the maturity of their loans, initially set to mature in February 2026. Additionally, Getty Images provided preliminary financial results for the fourth quarter and full year 2024, expecting revenues to fall in the range of $244 million to $250 million for the quarter and $936 million to $942 million for the year. The company anticipates financial performance at or above the high-end of previously announced guidance ranges. These figures are preliminary and subject to change upon completion of an audit.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.