Shutterstock (SSTK) AI Stock Analysis

• Market Cap: $704.02M
• Dividend Yield: 6.61%
• Average Volume (3M): 260.50K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.25
• Revenue Growth: 10.30%
• EPS Growth: -57.87%
• Country: US
• Employees: 1,715
• Sector: Communication Services
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): 0.53
• Shares Outstanding: 35,253,704
• 10 Day Avg. Volume: 292,217
• 30 Day Avg. Volume: 260,495
• PEG Ratio: -1.53
• Price to Book (P/B): 4.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.32
• Enterprise Value/Market Cap: 2.66
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 3.17
• 1Y Price Target: $25.00
• Price Target Upside: 25.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $21.00 ▲(5.16%Upside)

Shutterstock demonstrates strong revenue growth and a stable balance sheet, which are critical strengths. The approved merger with Getty Images presents growth opportunities but is tempered by legal uncertainties. Short-term technical indicators are positive, while valuation metrics highlight a reasonable price level with an attractive dividend yield.

Positive Factors

Revenue Growth

Execution across Content and DDS, and the acquisition of Envato helped SSTK achieve 15% revenue growth with 24% AEBITDA margin.

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

Acquisition Concerns

The lack of visibility into the future combination of Shutterstock and Getty Images contributes to a cautious approach from analysts.

Earnings

Shutterstock reported worse-than-expected 4Q24 results as revenue and EBITDA came in below consensus and near the low end of guidance.

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 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 Financial Statement Overview

Summary

Shutterstock exhibits strong revenue growth and maintains healthy gross margins, though net profitability is under pressure. The balance sheet is stable with a reasonable debt-to-equity ratio, but moderate equity returns. Cash flow shows improvement, yet low free cash flow could constrain future investments.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	963.57M	935.26M	874.59M	827.83M	773.41M	666.69M
Gross Profit	553.19M	538.97M	521.96M	513.52M	495.76M	407.11M
EBITDA	128.65M	160.74M	204.05M	160.84M	153.51M	126.63M
Net Income	38.50M	35.93M	110.27M	76.10M	91.88M	71.77M
Balance Sheet
Total Assets	1.32B	1.31B	1.04B	881.18M	851.71M	729.64M
Cash, Cash Equivalents and Short-Term Investments	112.23M	111.25M	100.49M	115.15M	314.02M	428.57M
Total Debt	140.56M	301.07M	59.40M	85.61M	36.97M	41.62M
Total Liabilities	777.04M	790.81M	508.92M	433.70M	383.23M	307.72M
Stockholders Equity	547.18M	518.35M	527.09M	447.48M	468.48M	421.93M
Cash Flow
Free Cash Flow	4.55M	-14.57M	84.81M	98.33M	179.37M	136.47M
Operating Cash Flow	49.59M	32.65M	140.55M	158.45M	216.37M	165.07M
Investing Cash Flow	-160.87M	-166.17M	-54.32M	-275.55M	-250.44M	-35.31M
Financing Cash Flow	152.90M	150.10M	-102.70M	-79.49M	-77.72M	-4.59M

Shutterstock Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 19.97 is above the 20-day moving average (MA) of 18.65, above the 50-day MA of 18.02, and below the 200-day MA of 24.65, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSTK.

Shutterstock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DASH	73 Outperform	$101.19B	312.23	4.41%	―	23.35%	―
SSTK	71 Outperform	$704.02M	18.40	7.07%	6.61%	10.30%	-57.87%
FVRR	67 Neutral	$1.04B	61.14	4.85%	―	10.41%	122.27%
Sector *	61 Neutral	$41.24B	-0.79	-14.21%	3.80%	2.39%	-73.52%
GETY	61 Neutral	$748.29M	19.73	-12.40%	―	4.20%	-350.95%
SEAT	56 Neutral	$383.29M	25.25	-1.00%	―	0.82%	-102.72%
TEAD	53 Neutral	$252.72M	―	-14.61%	―	4.15%	-394.93%

Shutterstock Corporate Events

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.

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.

Shutterstock Faces Legal Challenges in Getty Merger

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.

Shutterstock Reports Strong Q1 2025 Financial Results

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.