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Getty Images Holdings Inc (GETY)
:GETY
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Getty Images Holdings
(NYSE:GETY)
Rating:65Neutral
Price Target:
$2.00
▲( 12.99% Upside)
Positive Factors
Merger Synergies
Getty's proposed merger with Shutterstock is seen as positive due to the potential for increased subscriptions and significant annualized cost synergies.
Revenue Retention
Revenue retention rate stabilizing at 92.9% suggests improving visibility, with subscription revenue accounting for a growing portion of total revenues.
Subscriber Growth
Active annual subscribers increased by 33% year-over-year, driven by eCommerce traction at iStock & Unsplash+, with a broadening buyer base.
Negative Factors
Reduced Price Target
The price target is reduced to $3.50, reflecting reduced out-year estimates and higher WACC.
Revenue Decline
Creative and Editorial revenue was lower than expected, missing expectations by -3%/-4%, respectively.
Weaker Demand Environment
GETY’s 1Q performance was a result of a modestly weaker demand environment, particularly within Agency, reflecting macro pressures.
Getty Images Holdings (GETY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$711.08M
Dividend YieldN/A
Average Volume (3M)633.43K
Price to Earnings (P/E)19.7
Beta (1Y)1.09
Revenue Growth4.20%
EPS Growth-350.95%
CountryUS
Employees1,700
SectorCommunication Services
Sector Strength86
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.14
Shares Outstanding413,417,180
10 Day Avg. Volume691,704
30 Day Avg. Volume633,434
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)1.15
Price to Sales (P/S)0.00
P/FCF Ratio7.53
Enterprise Value/Market Cap2.83
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda2.02
Forecast
1Y Price Target
$11.81Price Target Upside567.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Getty Images Holdings Business Overview & Revenue Model
Company DescriptionGetty Images Holdings, Inc. operates as a visual content creator and marketplace in the United States and internationally. It maintains privately-owned photographic archives covering approximately 160,000 news, sport, and entertainment events, as well as variety of subjects, including lifestyle, business, science, health and beauty, sports, transportation, and travel under the Getty Images, iStock, and Unsplash brands. The company also provides music licensing, and digital asset management and distribution services; and sells wall décor products. It serves largest enterprises, smallest businesses, and individual creators. The company was founded in 1995 and is based in Seattle, Washington.
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 financial stability. Cash flow generation also strengthened, although cash profitability remains an area for improvement.Income Statement
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.75
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 939.29M | 916.55M | 926.24M | 918.69M | 815.40M | Gross Profit |
| 686.22M | 666.31M | 671.25M | 670.54M | 589.34M | EBIT |
| 180.81M | 127.67M | 202.03M | 201.99M | 156.26M | EBITDA |
| 279.66M | 190.59M | 186.69M | 303.82M | 264.89M | Net Income Common Stockholders |
| 39.53M | 19.34M | -77.64M | 117.07M | -37.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 121.17M | 138.08M | 97.91M | 186.30M | 156.48M | Total Assets |
| 2.56B | 2.60B | 2.47B | 2.58B | 2.51B | Total Debt |
| 1.35B | 1.45B | 1.48B | 1.76B | 1.81B | Net Debt |
| 1.23B | 1.31B | 1.38B | 1.57B | 1.65B | Total Liabilities |
| 1.85B | 1.92B | 1.88B | 2.88B | 2.83B | Stockholders Equity |
| 670.20M | 633.23M | 545.08M | -346.74M | -367.29M |
| Cash Flow | Free Cash Flow | |||
| 60.87M | 75.72M | 103.83M | 139.57M | 103.60M | Operating Cash Flow |
| 118.32M | 132.72M | 163.12M | 188.89M | 148.46M | Investing Cash Flow |
| -72.49M | -57.00M | -61.29M | -136.93M | -53.48M | Financing Cash Flow |
| -56.22M | -45.35M | -184.35M | -19.27M | -52.00M |
Getty Images Holdings Technical Analysis
Negative
1.77
Price Trends
1.84
Negative
2.14
Negative
2.76
Negative
Market Momentum
-0.03
Positive
41.59
Neutral
29.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GETY, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 1.87, below the 50-day MA of 1.84, and below the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 29.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
Because the exchange ratio in the Merger Agreement is fixed and because the market price of Shutterstock and our Class A common stock will fluctuate prior to the completion of the Merger, we cannot be sure of the market value of our Class A common stock that will be paid to Shutterstock stockholders as consideration in the Merger. Q4, 2024
2.
Our stockholders will have a reduced ownership and voting interest in Getty Images following the merger and will exercise less influence over management. Q4, 2024
3.
The market price of the combined company's common stock following the anticipated closing of the Merger may be affected by factors different from those that historically have affected or currently affect our common stock. Q4, 2024
Getty Images Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $653.96M | 17.09 | 7.07% | 6.87% | 10.30% | -57.87% | |
65 Neutral | $711.08M | 19.73 | -12.40% | ― | 4.20% | -350.95% | |
60 Neutral | $14.21B | 6.47 | -3.76% | 3.69% | 2.48% | -35.46% | |
59 Neutral | $624.53M | ― | -83.47% | ― | 15.06% | 15.99% | |
52 Neutral | $381.23M | 25.25 | -1.00% | ― | 0.82% | -102.72% | |
52 Neutral | $353.50M | ― | -3.92% | ― | -15.62% | 79.81% | |
44 Neutral | $558.58M | ― | -18.77% | ― | 12.01% | 35.71% |
* Communication Services Sector Average
Performance Comparison
GETY
Getty Images Holdings
1.72
-1.69
-49.56%
SSTK
Shutterstock
18.05
-17.60
-49.37%
SEAT
Vivid Seats
1.81
-3.44
-65.52%
KIND
Nextdoor Holdings
1.47
-1.01
-40.73%
ZH
Zhihu
3.93
0.44
12.61%
SMWB
Similarweb
7.52
-0.57
-7.05%
Getty Images Holdings Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -11.94%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a mix of steady subscription growth and new partnerships, offset by challenges such as creative revenue decline, macroeconomic impacts, and increased debt-related expenses. While there are positive developments, the challenges are significant and impact key financial metrics.Q1-2025 Updates
Positive Updates
Steady Subscription Revenue Growth
Annual subscription revenue was 57.2% of total revenue in the first quarter, up from 54.7% in Q1 of last year and 53.8% in 2024, with a 5.4% growth or 7.2% on a currency-neutral basis.
New Partnerships and Renewals
Signed new exclusive partnerships with WWE, Major League Soccer, and the National Women's Soccer League, and renewed partnerships with UEFA and other notable organizations.
Strong Editorial Revenue
Editorial revenue increased by 4% year-on-year and 5.6% on a currency-neutral basis, driven by global news events and sports coverage.
Expanded Customer Base
Added 56,000 active annual subscribers to reach 318,000 in Q1 LTM period, a 21% increase over the comparable period in 2024.
Award-Winning Talent Recognized
Getty Images' photographers received 115 awards of excellence in categories such as news, sport, and politics in prestigious ceremonies.
Negative Updates
Creative Revenue Decline
Creative revenue was $132.2 million, down 4.8% year-on-year and 3% on a currency-neutral basis, with agency business down high single-digits.
Negative Free Cash Flow
Free cash flow was negative $300,000, down from $7.1 million in Q1 2024, primarily due to merger-related expenses.
Impact of LA Fires and Macro Uncertainty
The production and media businesses were affected by the LA fires, and broader macroeconomic uncertainty impacted agency and entertainment sectors.
Debt and Interest Expense
Total debt outstanding was $1.36 billion, with significant interest expenses and refinancing leading to lower cash balances.
Adjusted EBITDA Margin Slight Decline
Adjusted EBITDA margin decreased to 31.3% from 31.6% in Q1 2024.
Company Guidance
In the first quarter of 2025, Getty Images reported revenue of $224.1 million, reflecting a growth of 0.8% year-over-year, or 2.6% on a currency-neutral basis. Adjusted EBITDA was $70.1 million, down 0.1% from the previous year or up 2.2% on a currency-neutral basis. The company's annual subscription revenue accounted for 57.2% of total revenue, increasing from 54.7% in the previous year, with subscription revenue growing by 5.4% overall. Getty Images added 56,000 active annual subscribers, reaching 318,000, a 21% increase compared to the same period in 2024. The editorial segment saw revenue growth of 4% year-over-year, while the creative segment experienced a 4.8% decline. The company's adjusted EBITDA margin was 31.3%, with CapEx at $15.7 million, representing 7% of revenue. Free cash flow was negative $300,000, primarily due to merger-related expenses. Despite some challenges, including FX pressures and macroeconomic uncertainty, the company remains on track to meet its 2025 outlook, with expected annual revenue between $931 million and $968 million, and adjusted EBITDA between $277 million and $297 million.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.
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.