Shutterstock (SSTK) AI Stock Analysis

• Market Cap: $713.38M
• Dividend Yield: 6.41%
• Average Volume (3M): 247.35K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.24
• Revenue Growth: 14.20%
• EPS Growth: 38.92%
• Country: US
• Employees: 1,715
• Sector: Communication Services
• Sector Strength: 96
• Industry: Internet Content & Information
• EPS (TTM): 0.82
• Shares Outstanding: 35,474,130
• 10 Day Avg. Volume: 195,875
• 30 Day Avg. Volume: 247,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 5.39
• 1Y Price Target: $23.00
• Price Target Upside: 14.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• Price Target: $23.00 ▲(14.37% Upside)

Shutterstock's stock is well-positioned with robust technical indicators, a strong valuation, and positive corporate developments. Financial performance is solid, though improvements in profitability and cash flow conversion are needed. The approved merger with Getty Images is a significant positive, despite some legal challenges.

Positive Factors

Synergies

The PF company is expected to benefit from less exposure to the legacy SSTK ecommerce business and there should be substantial synergies.

Valuation

The valuation keeps the Buy rating on shares as the PF GETY-SSTK is considered cheap, trading at 5.3x '25E PF adj. EBITDA without synergies or 4.8x with 40% synergies.

Negative Factors

Organic Content Business

Investor attention is focused on the trajectory of the organic content business, which is estimated to have roughly flat year-over-year declines with a large degree of uncertainty.

Target Multiple

There is a significant cut to the target multiple to ~4x '25E adj. EBITDA due to worse than expected organic content trends.

Shutterstock Business Overview & Revenue Model

Company Description

Shutterstock, Inc., a technology company, provides quality content, and creative workflow solutions in North America, Europe, and internationally. It offers image services consisting of photographs, vectors, and illustrations, which is used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications, and others; footage services, including video clips, filmed by industry experts and cinema grade video effects, and HD and 4K formats that are integrated into Websites, social media, marketing campaigns, and cinematic productions; and music services comprising music tracks and sound effects, which are used to complement images and footage. The company provides its services under the Shutterstock, Bigstock, Offset, TurboSquid,PremiumBeat brand names, as well as Application programming interface to enhance workflow and project management needs, and search capabilities. It serves corporate professionals and organizations, media and broadcast companies, and small and medium-sized businesses, and individual creators. The company was founded in 2003 and is headquartered in New York, New York.

How the Company Makes Money

Shutterstock generates revenue primarily through its subscription and on-demand licensing models. Customers can purchase credits to download images or subscribe to monthly plans offering a set number of downloads, which provides a steady revenue stream. Additionally, Shutterstock offers enterprise solutions for larger clients, which may include custom pricing and dedicated support. The company also earns income through partnerships with other platforms that integrate its content, as well as through its Shutterstock Custom service, which provides tailored content creation for brands. The diverse array of revenue streams, combined with a global customer base, contributes significantly to its overall earnings.

Shutterstock Financial Statement Overview

Summary

Shutterstock demonstrates solid financial health with strong revenue growth and efficient cost management leading to robust gross profit margins. The balance sheet shows low leverage and a healthy equity ratio, though there's room for enhancement in profitability and cash flow conversion.

Income Statement

Shutterstock demonstrates consistent revenue growth with a TTM revenue increase of 8.08% from the previous annual period. The gross profit margin for TTM is strong at 58.04%, reflecting efficient cost management. However, the net profit margin of 6.36% suggests room for improvement in profitability. Both EBIT and EBITDA margins are moderate at 7.54% and 12.35% respectively, indicating stable operating performance.

Balance Sheet

The company maintains a healthy equity ratio of 42.60% in the TTM period, ensuring stability. The debt-to-equity ratio is relatively low at 0.24, indicating prudent leverage management. ROE for TTM is 10.97%, showcasing good shareholder returns but with potential for enhancement.

Cash Flow

Operating cash flow is positive and the free cash flow has improved significantly to $2.01 million in TTM, indicating better cash management compared to the previous period. However, the operating cash flow to net income ratio is below 1, suggesting potential inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	935.26M	874.59M	827.83M	773.41M	666.69M
Gross Profit	586.78M	538.97M	521.96M	513.52M	495.76M	407.11M
EBITDA	160.09M	160.74M	204.05M	160.84M	153.51M	126.63M
Net Income	64.31M	35.93M	110.27M	76.10M	91.88M	71.77M
Balance Sheet
Total Assets	1.38B	1.31B	1.04B	881.18M	851.71M	729.64M
Cash, Cash Equivalents and Short-Term Investments	116.41M	111.25M	100.49M	115.15M	314.02M	428.57M
Total Debt	138.93M	310.79M	68.48M	94.52M	45.33M	50.72M
Total Liabilities	790.29M	790.81M	508.92M	433.70M	383.23M	307.72M
Stockholders Equity	586.16M	518.35M	527.09M	447.48M	468.48M	421.93M
Cash Flow
Free Cash Flow	2.01M	-14.57M	95.91M	98.33M	179.37M	136.47M
Operating Cash Flow	48.46M	32.65M	140.55M	158.45M	216.37M	165.07M
Investing Cash Flow	-184.14M	-166.17M	-54.32M	-275.55M	-250.44M	-35.31M
Financing Cash Flow	171.18M	150.10M	-102.70M	-79.49M	-77.72M	-4.59M

Shutterstock Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTK, the sentiment is Neutral. The current price of 20.11 is below the 20-day moving average (MA) of 20.61, above the 50-day MA of 19.76, and below the 200-day MA of 21.90, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 15.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSTK.

Shutterstock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	81 Outperform	$713.38M	11.15	11.62%	6.41%	14.20%	38.92%
DASH	78 Outperform	$105.45B	137.34	9.71%	―	23.78%	―
FVRR	69 Neutral	$873.69M	49.91	5.00%	―	12.60%	64.81%
Sector *	60 Neutral	$46.60B	4.09	-11.41%	4.12%	1.85%	-42.71%
GETY	55 Neutral	$771.55M	19.73	-18.24%	―	4.43%	-399.14%
SEAT	50 Neutral	$163.90M	25.25	-75.68%	―	-10.52%	-420.74%
TEAD	49 Neutral	$154.80M	―	-16.75%	―	19.67%	-1183.48%

Shutterstock Corporate Events

Shutterstock Reports Strong Q2 2025 Financial Results

Shutterstock reported strong financial results for the second quarter of 2025, with revenue reaching $267 million, a 21% increase from the previous year. The company’s net income rose significantly to $29.4 million, driven by the acquisition of Envato and gains from investments, despite increased interest expenses and costs related to a proposed merger with Getty Images. The company’s liquidity improved with increased cash and cash equivalents, although adjusted free cash flow decreased. The board declared a quarterly dividend, maintaining shareholder returns.

Shutterstock Declares Cash Dividend for Shareholders

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.

Shutterstock Stockholders Approve Merger with Getty Images

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.