Shutterstock (SSTK) AI Stock Analysis

Compare

609 Followers

Top Page

Shutterstock

(NYSE:SSTK)

Rating:67Neutral

Price Target:―

Shutterstock's strong revenue growth and solid dividend yield are significant positives, but these are offset by challenges in net profitability and bearish technical indicators. While valuation remains favorable, the company's constrained free cash flow and negative short-term momentum present risks. Positive corporate events provide a supportive outlook, suggesting potential for recovery and growth in the longer term.

Positive Factors

Acquisition Benefits

The merger between SSTK and GETY is viewed as beneficial because it creates a larger pool of content and significant cost synergies.

Competitive Positioning

The merger between Shutterstock and Getty Images is expected to bolster the combined company's competitive positioning amid growing AI-based competition.

Revenue Growth

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

Negative Factors

Merger Uncertainty

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

Organic Content Challenges

There are concerns about the near-term trajectory of the business due to potential declines in SSTK's organic content.

Revenue Miss

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

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

Market Cap

$636.33M

Dividend Yield6.81%

Average Volume (3M)313.62K

Price to Earnings (P/E)16.6

Beta (1Y)1.26

Revenue Growth10.30%

EPS Growth-57.87%

CountryUS

Employees1,715

SectorCommunication Services

Sector Strength89

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.53

Shares Outstanding35,253,704

10 Day Avg. Volume242,340

30 Day Avg. Volume313,620

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)1.12

Price to Sales (P/S)0.00

P/FCF Ratio135.69

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$30.00

Price Target Upside66.20% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Shutterstock Business Overview & Revenue Model

Company DescriptionShutterstock, 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 MoneyShutterstock makes money primarily through its subscription and on-demand services, where customers pay for access to its extensive library of digital content. The company offers various subscription plans tailored to different customer needs, providing a steady revenue stream. Additionally, Shutterstock generates income from enterprise clients through customized solutions and licensing agreements. The company also benefits from its editorial arm and partnerships with other companies to distribute content, further enhancing its revenue potential. These diverse revenue streams, combined with a significant global user base and strategic partnerships, contribute to Shutterstock's financial performance.

Shutterstock Financial Statement Overview

Summary

Shutterstock demonstrates robust revenue growth with a 10.4% increase and maintains a healthy gross profit margin of 57.4%. However, net profit margin pressure at 4.0% and low free cash flow highlight areas for improvement. The balance sheet is stable with a manageable debt-to-equity ratio and moderate equity returns, but cash flow constraints could impact future investments.

Income Statement

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
65.26M	68.71M	68.40M	130.95M	108.11M	85.27M
	EBITDA
128.65M	160.74M	204.05M	160.84M	153.51M	126.63M
	Net Income Common Stockholders
38.50M	35.93M	110.27M	76.10M	91.88M	71.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.23M	111.25M	100.49M	115.15M	314.02M	428.57M
	Total Assets
1.32B	1.31B	1.04B	881.18M	851.71M	729.64M
	Total Debt
140.56M	301.07M	59.40M	85.61M	36.97M	41.62M
	Net Debt
28.33M	189.82M	-41.09M	-29.54M	-277.05M	-386.95M
	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

Negative

Last Price18.05

Price Trends

50DMA

17.58

Positive

100DMA

22.28

Negative

200DMA

27.13

Negative

Market Momentum

MACD

0.26

Negative

RSI

50.24

Neutral

STOCH

22.02

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTK, the sentiment is Negative. The current price of 18.05 is above the 20-day moving average (MA) of 17.99, above the 50-day MA of 17.58, and below the 200-day MA of 27.13, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 22.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks

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

Because the exchange ratio in the Merger Agreement is fixed and because the market price of Shutterstock and Getty Images' common stock will fluctuate prior to the completion of the Merger, our stockholders cannot be sure of the market value of the Getty Images common stock they will receive as consideration in the Merger. Q4, 2024

Our stockholders will have a reduced ownership and voting interest in Getty Images following the Merger as compared to their ownership and voting interest in us and will exercise less influence over management. Q4, 2024

Shutterstock Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVRR	76 Outperform	$1.21B	71.42	4.85%	―	10.41%	122.27%
DASH	74 Outperform	$87.35B	269.55	4.41%	―	23.35%	―
SSTK	67 Neutral	$636.33M	16.63	7.07%	6.81%	10.30%	-57.87%
GETY	65 Neutral	$711.08M	19.73	-12.40%	―	4.20%	-350.95%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
SEAT	52 Neutral	$372.99M	25.25	-1.00%	―	0.82%	-102.72%
OB	50 Neutral	$247.07M	―	-14.61%	―	4.15%	-394.93%

* Communication Services Sector Average

Performance Comparison

SSTK

Shutterstock

18.05

-17.01

-48.52%

FVRR

Fiverr International

33.76

8.73

34.88%

GETY

Getty Images Holdings

1.72

-1.84

-51.69%

SEAT

Vivid Seats

1.81

-3.05

-62.76%

DASH

DoorDash

206.15

93.71

83.34%

Outbrain

2.62

-2.07

-44.14%

Shutterstock Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q3-2024)

% Change Since: 9.86%|

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 Corporate Events

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

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.