Shutterstock (SSTK) shares plummeted 6.74% on Tuesday after the company reported disappointing fourth-quarter earnings results that missed Wall Street's expectations. The stock decline was likely driven by the following factors:
Shutterstock reported a Q4 revenue of $250.3 million, falling short of analysts' estimates of $254.9 million. The revenue growth of 15.2% year-over-year failed to meet market expectations. Additionally, the company's adjusted earnings per share (EPS) of $0.67 missed the consensus estimate of $0.85 by a significant 20.9%.
Another concerning metric was the decline in paid downloads, a key performance indicator for Shutterstock's online marketplace. The company reported 33 million paid downloads in Q4, a decrease of 2.4 million or 6.8% compared to the same period last year. This decline suggests that Shutterstock's new initiatives and offerings are not gaining traction as expected, potentially impacting future growth prospects.
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