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Shutterstock (SSTK) AI Stock Analysis

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SSTK

Shutterstock

(NYSE:SSTK)

Rating:75Outperform
Price Target:
$23.50
▲(16.63%Upside)
Shutterstock shows robust financial health with strong revenue growth and a reasonable valuation. Positive technical indicators and strategic corporate events, like the merger with Getty Images, bolster long-term prospects despite some profitability pressures.
Positive Factors
Content Revenue
The acquisition of Envato has driven total content revenues to grow by 20% year-over-year, surpassing management's original expectations.
Revenue Growth
Execution across Content and DDS, along with the acquisition of Envato, helped Shutterstock achieve 15% revenue growth with a 24% AEBITDA margin.
Valuation
The valuation supports a Buy rating on shares, as the combined GETY-SSTK entity is considered inexpensive compared to future earnings projections.
Negative Factors
Free Trials Impact
Shutterstock eliminated free trials, impacting top-of-funnel demand and creating elevated churn from lower-quality free trial subscribers.
Merger Uncertainty
The lack of visibility into the future combination of Shutterstock and Getty Images contributes to a cautious approach from analysts.
Organic Content Trends
There is a significant cut to the target multiple due to worse than expected organic content trends.

Shutterstock (SSTK) vs. SPDR S&P 500 ETF (SPY)

Shutterstock Business Overview & Revenue Model

Company DescriptionShutterstock, Inc. (SSTK) is a leading global provider of high-quality licensed photographs, vectors, illustrations, videos, and music to businesses, marketing agencies, and media organizations. Operating primarily in the creative content sector, Shutterstock offers a vast library of digital assets to its clients, facilitating creative projects across various industries. The company also provides innovative tools and services to help users create, manage, and distribute visual content effectively.
How the Company Makes MoneyShutterstock generates revenue primarily through the sale of licenses for its digital content. This includes subscription services and image packs that allow customers to download a specific number of assets per month or on-demand. The company also earns money from extended licenses that offer broader usage rights for its content. Additionally, Shutterstock's revenue streams are supported by its enterprise solutions, which provide custom content management services and access to a dedicated account team for large clients. Strategic partnerships with other media and technology companies, as well as the integration of AI-driven tools to enhance content discovery and creation, also contribute to its earnings.

Shutterstock Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Breaks down revenue across different regions, revealing where Shutterstock is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Chart InsightsShutterstock's revenue in North America has shown strong growth, particularly from late 2023, indicating robust market demand and possibly successful strategic initiatives in this region. In contrast, Europe and the Rest of World segments experienced volatility with a notable uptick in late 2024, suggesting potential recovery or strategic shifts. The sustained growth in North America could be a key driver for the company's overall performance, while the recent improvements in other regions may signal a broader recovery.
Data provided by:Main Street Data

Shutterstock Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q3-2024)
|
% Change Since: 24.92%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record revenues and EBITDA, strong performance from the Envato acquisition, and growth in Data Distribution and Services. However, there was a decline in core Content revenues, although improvement was noted. The overall sentiment is upbeat with raised guidance and strategic growth initiatives.
Q3-2024 Updates
Positive Updates
Record Third Quarter Revenues and Adjusted EBITDA
Shutterstock achieved record third quarter revenues of $251 million, representing a 7.4% year-over-year growth, and record adjusted EBITDA of $70 million with a 28% margin.
Envato Acquisition Success
Envato contributed $38 million to Content revenues in Q3, exceeding expectations with strong subscriber growth driven by a brand refresh and site improvements.
Data Distribution and Services Growth
Data Distribution and Services achieved revenues of $47 million in Q3, showing over 40% growth year-to-date, with large contract expansions and new customer demand driving the growth.
GIPHY and TikTok Partnership
GIPHY views reached approximately 19 billion per day, up over 10% year-over-year, and a new partnership with TikTok was announced to enhance GIF sharing capabilities.
Positive Outlook and Raised Guidance
Shutterstock raised its guidance for 2024, expecting revenue between $935 million and $940 million, and adjusted EBITDA between $247 million and $250 million.
Negative Updates
Decline in Core Content Revenues
Excluding the Envato contribution, Content revenues declined 7% year-over-year, although this was an improvement from previous quarters' declines.
Company Guidance
During the Q3 2024 earnings call for Shutterstock (SSTK), the company provided updated guidance, raising its revenue expectations to between $935 million and $940 million, representing a 7% to 7.5% year-over-year growth. Adjusted EBITDA guidance was also increased to a range of $247 million to $250 million. The call highlighted record third-quarter revenues of $251 million, a 7.4% year-over-year increase, and adjusted EBITDA of $70 million with a 28% margin. Content revenue reached $204 million, a 14% year-over-year increase, bolstered by Envato's $38 million contribution. Shutterstock's Data Distribution and Services segment generated $47 million in revenue, with substantial growth driven by AI-generated content and partnerships such as GIPHY's collaboration with TikTok. The company remains optimistic about achieving its 2027 targets of $1.2 billion in revenue and $350 million in EBITDA.

Shutterstock Financial Statement Overview

Summary
Shutterstock demonstrates robust revenue growth and solid gross profit margins. However, net profitability has been pressured with a decreased net profit margin. The balance sheet is stable with prudent leverage, although free cash flow is low, which may limit future investments.
Income Statement
80
Positive
Shutterstock shows strong revenue growth over multiple years, with TTM revenue increasing by 10.4% compared to the previous year. Gross profit margin remains solid at 57.4% TTM, indicating effective cost management. However, net profit margin has decreased to 4.0% TTM, signaling some pressure on net profitability despite a positive trend in revenue growth.
Balance Sheet
70
Positive
The company's balance sheet reveals a manageable debt-to-equity ratio of 0.26 TTM, highlighting prudent leverage use. Return on equity is modest at 7.0% TTM, reflecting moderate efficiency in generating returns from shareholders' equity. The equity ratio remains steady at 41.3% TTM, suggesting a balanced approach between debt and equity financing.
Cash Flow
65
Positive
Operating cash flow shows improvement, with a 51.9% growth in TTM. However, free cash flow remains low at $4.6 million, indicating limited cash available after capital expenditures. The operating cash flow to net income ratio is 1.29 TTM, demonstrating adequate cash generation relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue935.26M874.59M827.83M773.41M666.69M
Gross Profit538.97M521.96M513.52M495.76M407.11M
EBITDA160.74M204.05M160.84M153.51M126.63M
Net Income35.93M110.27M76.10M91.88M71.77M
Balance Sheet
Total Assets1.31B1.04B881.18M851.71M729.64M
Cash, Cash Equivalents and Short-Term Investments111.25M100.49M115.15M314.02M428.57M
Total Debt301.07M59.40M85.61M36.97M41.62M
Total Liabilities790.81M508.92M433.70M383.23M307.72M
Stockholders Equity518.35M527.09M447.48M468.48M421.93M
Cash Flow
Free Cash Flow-14.57M84.81M98.33M179.37M136.47M
Operating Cash Flow32.65M140.55M158.45M216.37M165.07M
Investing Cash Flow-166.17M-54.32M-275.55M-250.44M-35.31M
Financing Cash Flow150.10M-102.70M-79.49M-77.72M-4.59M

Shutterstock Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.15
Price Trends
50DMA
18.66
Positive
100DMA
18.09
Positive
200DMA
23.62
Negative
Market Momentum
MACD
0.29
Negative
RSI
58.42
Neutral
STOCH
80.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTK, the sentiment is Positive. The current price of 20.15 is above the 20-day moving average (MA) of 19.33, above the 50-day MA of 18.66, and below the 200-day MA of 23.62, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 80.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSTK.

Shutterstock Risk Analysis

Shutterstock disclosed 55 risk factors in its most recent earnings report. Shutterstock 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

Shutterstock Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$710.36M18.567.07%6.25%10.30%-57.87%
73
Outperform
$105.90B326.784.41%23.35%
67
Neutral
$925.38M54.524.85%10.41%122.27%
63
Neutral
$767.40M19.73-12.40%4.20%-350.95%
62
Neutral
$42.09B-1.57-12.06%2.81%2.10%-71.01%
56
Neutral
$351.14M25.25-1.00%0.82%-102.72%
55
Neutral
$278.19M-14.61%4.15%-394.93%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSTK
Shutterstock
20.15
-20.45
-50.37%
FVRR
Fiverr International
25.77
3.48
15.61%
GETY
Getty Images Holdings
1.85
-1.85
-50.00%
SEAT
Vivid Seats
1.70
-3.28
-65.86%
DASH
DoorDash
249.92
143.93
135.80%
TEAD
Teads Holding
2.95
-1.85
-38.54%

Shutterstock Corporate Events

Dividends
Shutterstock Declares Cash Dividend for Shareholders
Positive
Jul 21, 2025

On July 21, 2025, Shutterstock‘s Board of Directors announced a cash dividend of $0.33 per common share, which will be distributed to shareholders of record as of September 4, 2025, and payable on September 18, 2025. This decision reflects the company’s commitment to returning value to its shareholders and may impact investor sentiment positively.

The most recent analyst rating on (SSTK) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Shutterstock stock, see the SSTK Stock Forecast page.

M&A TransactionsShareholder Meetings
Shutterstock Stockholders Approve Merger with Getty Images
Positive
Jun 10, 2025

On June 10, 2025, Shutterstock‘s stockholders approved a merger with Getty Images Holdings, Inc., marking a significant step towards creating a premier visual content company. The merger, which received approximately 82% approval from Shutterstock’s common stockholders, is expected to enhance the company’s ability to meet customer needs through combined investments in content creation and technology innovation. The transaction is anticipated to close in the second half of 2025, pending regulatory approvals and customary conditions.

The most recent analyst rating on (SSTK) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Shutterstock stock, see the SSTK Stock Forecast page.

M&A TransactionsLegal ProceedingsShareholder Meetings
Shutterstock Faces Legal Challenges in Getty Merger
Negative
May 30, 2025

On January 6, 2025, Shutterstock entered into a merger agreement with Getty Images, involving a series of mergers that will result in Shutterstock becoming a wholly owned subsidiary of Getty Images. The merger proposal, set to be voted on June 10, 2025, has faced legal challenges, with stockholder actions alleging misinformation in the proxy statement. Despite these challenges, Shutterstock plans to supplement its proxy statement to avoid delays, although it denies any wrongdoing.

The most recent analyst rating on (SSTK) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Shutterstock stock, see the SSTK Stock Forecast page.

M&A TransactionsFinancial Disclosures
Shutterstock Reports Strong Q1 2025 Financial Results
Positive
May 2, 2025

Shutterstock reported strong financial results for the first quarter of 2025, with a 13% increase in revenue to $242.6 million compared to the same period in 2024. The company’s net income rose to $18.7 million, driven by the profitability of the Envato acquisition, despite increased interest expenses and professional fees related to a proposed merger with Getty Images. The company also saw growth in its Content revenue by 17%, while revenue from Data, Distribution, and Services slightly decreased. The company’s cash flow and liquidity improved, with adjusted free cash flow increasing by $12.1 million from the previous year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 24, 2025