Shutterstock (SSTK) AI Stock Analysis

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Shutterstock

(NYSE:SSTK)

70Outperform

Shutterstock's overall score reflects strong revenue growth and a solid dividend yield, but is tempered by declining profitability and negative free cash flow. The company shows resilience in its operational efficiency, but bearish technical indicators and significant net income decline weigh on the score. Positive corporate events related to record revenues and strategic acquisitions provide a boost to the outlook.

Positive Factors

Competitive Position

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

Merger Benefits

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

Revenue Growth

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

Negative Factors

Generative AI Competition

Lower-than-expected results highlight the ongoing challenges for stock media as generative AI quality improves and awareness and implementation of these tools grow.

Merger Uncertainty

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

Organic Content Decline

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

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

Market Cap

$557.01M

Dividend Yield7.71%

Average Volume (3M)518.59K

Price to Earnings (P/E)15.8

Beta (1Y)1.41

Revenue Growth6.94%

EPS Growth-66.92%

CountryUS

Employees1,715

SectorCommunication Services

Sector Strength85

IndustryInternet Content & Information

Share Statistics

EPS (TTM)1.00

Shares Outstanding34,900,257

10 Day Avg. Volume344,196

30 Day Avg. Volume518,589

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.26

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.33

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$29.43

Price Target Upside79.12% Upside

Rating ConsensusHold

Number of Analyst Covering4

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's financial health shows strong revenue growth and operational efficiency. However, the decline in net income and free cash flow indicates potential profitability concerns. The balance sheet is stable with manageable leverage, but declining return on equity highlights reduced profitability. Cash flow management is challenging, given the negative free cash flow, but operational cash generation remains resilient.

Income Statement

Positive

Shutterstock has demonstrated consistent revenue growth over the years, with a revenue growth rate of approximately 7% from 2023 to 2024. The company maintains a healthy gross profit margin of 57.6% for 2024, showcasing strong operational efficiency. However, the decline in net income from 2023 to 2024 has impacted the net profit margin, which stands at 3.8% for 2024, compared to 12.6% in 2023. The EBIT margin is stable at 7.3%, though there's a decline in EBITDA margin due to reduced EBITDA figures.

Balance Sheet

Positive

The balance sheet reveals a moderate debt-to-equity ratio of 0.28 for 2024, indicating manageable leverage. The return on equity (ROE) has decreased significantly to 6.9% in 2024 from 20.9% in 2023, reflecting decreased profitability. The equity ratio remains robust at 39.6%, indicating a solid equity base relative to total assets.

Cash Flow

Positive

Shutterstock's cash flow statement shows a decline in operating cash flow from 2023 to 2024, leading to negative free cash flow in 2024. The free cash flow to net income ratio is negative due to capital expenditures exceeding operating cash flow. Despite this, the operating cash flow to net income ratio remains positive at 0.91, showing that the company can still generate cash relative to its net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
935.26M	874.59M	827.83M	773.41M	666.69M
	Gross Profit
538.97M	521.96M	513.52M	495.76M	407.11M
	EBIT
68.71M	68.40M	130.95M	108.11M	85.27M
	EBITDA
160.74M	204.05M	160.84M	153.51M	126.63M
	Net Income Common Stockholders
35.93M	110.27M	76.10M	91.88M	71.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
111.25M	100.49M	115.15M	314.02M	428.57M
	Total Assets
1.31B	1.04B	881.18M	851.71M	729.64M
	Total Debt
142.96M	59.40M	85.61M	36.97M	41.62M
	Net Debt
31.71M	-41.09M	-29.54M	-277.05M	-386.95M
	Total Liabilities
790.81M	508.92M	433.70M	383.23M	307.72M
	Stockholders Equity
518.35M	527.09M	447.48M	468.48M	421.93M
Cash Flow		Free Cash Flow
-14.57M	84.81M	98.33M	179.37M	136.47M
	Operating Cash Flow
32.65M	140.55M	158.45M	216.37M	165.07M
	Investing Cash Flow
-166.17M	-54.32M	-275.55M	-250.44M	-35.31M
	Financing Cash Flow
150.10M	-102.70M	-79.49M	-77.72M	-4.59M

Shutterstock Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.43

Price Trends

50DMA

18.58

Negative

100DMA

24.27

Negative

200DMA

28.85

Negative

Market Momentum

MACD

-0.65

Negative

RSI

44.48

Neutral

STOCH

66.86

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 16.43 is above the 20-day moving average (MA) of 15.95, below the 50-day MA of 18.58, and below the 200-day MA of 28.85, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 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 0 New Risks

Shutterstock Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVRR	73 Outperform	$913.89M	54.01	5.08%	―	8.33%	436.49%
SSTK	70 Outperform	$557.01M	15.84	6.87%	7.71%	6.94%	-66.92%
DASH	70 Outperform	$81.74B	727.89	1.68%	―	24.17%	―
GETY	67 Neutral	$788.00M	20.04	6.07%	―	2.48%	103.37%
Sector *	59 Neutral	$13.50B	7.28	-2.06%	3.86%	2.39%	-36.82%
SEAT	54 Neutral	$555.71M	39.01	5.15%	―	8.80%	-91.33%
OB	53 Neutral	$333.81M	―	-0.31%	―	-4.91%	-107.37%

* Communication Services Sector Average

Performance Comparison

SSTK

Shutterstock

16.43

-23.59

-58.95%

FVRR

Fiverr International

26.12

5.32

25.58%

GETY

Getty Images Holdings

1.92

-1.87

-49.34%

SEAT

Vivid Seats

2.68

-2.70

-50.19%

DASH

DoorDash

196.20

81.89

71.64%

Outbrain

3.59

-0.85

-19.14%

Shutterstock Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q3-2024)

% Change Since: -2.90%|

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 Record Revenues for 2024

Positive

Feb 25, 2025

Shutterstock announced its financial results for the full year and fourth quarter of 2024, reporting record revenues and Adjusted EBITDA. Despite a decrease in net income due to non-recurring expenses and acquisitions, the company experienced growth in its Content and Data, Distribution, and Services segments, driven by the Envato acquisition. The company anticipates continued growth in 2025.

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.