Shutterstock Q3 revenue beats expectations, withholds guidance on pending Getty Images merger

Overview

• Shutterstock Q3 revenue grows 4% yr/yr, beating analyst expectations

• Net income for Q3 decreased due to merger-related expenses

• Adjusted EBITDA increased 13% yr/yr, driven by Envato and data deal revenue

Outlook

• Shutterstock will not provide financial guidance due to the pending Getty Images merger

Result Drivers

• DATA, DISTRIBUTION, AND SERVICES - Revenue increased 40% due to strong performance in this segment, offsetting declines in Content revenue

• CONTENT REVENUE DECLINE - Content revenue decreased 5% due to weak new customer acquisition, partially offset by Envato contribution

• MERGER EXPENSES - Net income decreased due to $7.1 mln of professional fees related to the proposed merger with Getty Images

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Shutterstock Inc is $26.93, about 19.4% above its November 4 closing price of $21.70

Press Release: ID:nPn5W0VvHa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)