EX-99.1 2 a2025-q2_exx991xpressrelea.htm EX-99.1 Document

    EXHIBIT 99.1
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Shutterstock Reports Second Quarter 2025 Financial Results
New York, NY - July 29, 2025 - Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced financial results for the second quarter ended June 30, 2025.
Commenting on the Company's performance, Paul Hennessy, the Company’s Chief Executive Officer, said, “I am pleased to report that Shutterstock set new high water marks in the second quarter, achieving record levels in both Revenue and Adjusted EBITDA. Our complete suite of offerings, from creative content to custom creative solutions to AI model inputs to our GIPHY distribution is now more than ever enabling us to fuel great work for our customers.”


Second Quarter 2025 highlights as compared to Second Quarter 2024:
    Financial Highlights
•Revenues were $267.0 million compared to $220.1 million.
•Net income was $29.4 million compared to $3.6 million.
•Net income per diluted common share was $0.82 compared to $0.10.
•Adjusted net income was $42.9 million compared to $35.9 million.
•Adjusted net income per diluted common share was $1.19 compared to $1.00.
•Adjusted EBITDA was $82.2 million compared to $62.1 million.

SECOND QUARTER RESULTS
Revenue
Second quarter revenue of $267.0 million increased by $46.9 million or 21% as compared to the second quarter of 2024.
Revenue from our Content product offering increased by $29.8 million, or 18%, as compared to the second quarter of 2024, to $199.8 million. Envato, which was acquired in July of 2024, contributed to the year-over-year increase. Content revenue represented 75% of our total revenue in the second quarter of 2025.
Revenue generated from our Data, Distribution, and Services product offering increased by $17.1 million, or 34%, as compared to the second quarter of 2024, to $67.2 million, and represented 25% of second quarter revenue in 2025. Second quarter revenue benefited from the timing of data deal revenue recognition, which fluctuates quarter-to-quarter based on the delivery of metadata to our customers.

Net income and net income per diluted common share
Net income in the second quarter of 2025 of $29.4 million increased $25.8 million as compared to net income of $3.6 million for the second quarter in 2024. Net income per diluted common share was $0.82, as compared to $0.10 for the same period in 2024. These increases were attributable to profitability associated with the Envato business acquired in July of 2024 and unrealized gains related to our investment in Meitu, Inc, offset by an increase in interest expense of $3.7 million due to increased debt which funded the purchase of Envato. The Company also incurred $8.7 million of professional fee expenses in the quarter associated with the proposed merger with Getty Images Holdings, Inc. (“Getty Images”).
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Adjusted net income and adjusted net income per diluted common share
Adjusted net income in the second quarter of 2025 of $42.9 million increased $7.0 million as compared to adjusted net income of $35.9 million for the second quarter in 2024. Second quarter 2025 adjusted net income was favorably impacted by profitability associated with the Envato acquisition offset by an increase in interest expense.
Adjusted net income per diluted common share was $1.19 as compared to $1.00 for the second quarter of 2024, an increase of $0.19 per diluted share.
Adjusted EBITDA
Adjusted EBITDA of $82.2 million for the second quarter of 2025 increased by $20.2 million, or 32%, as compared to the second quarter of 2024, primarily due to the contribution from Envato and data deal revenue. Net income margin of 11.0% for the second quarter of 2025 increased by 9.4%, as compared to 1.6% in the second quarter of 2024. The adjusted EBITDA margin of 30.8% for the second quarter of 2025 increased by 2.6%, as compared to 28.2% in the second quarter of 2024.

SECOND QUARTER LIQUIDITY
Our cash and cash equivalents increased by $4.2 million to $116.4 million at June 30, 2025, as compared with $112.2 million as of March 31, 2025. This increase was driven by $26.8 million of net cash provided by our operating activities and a favorable impact from foreign currency exchange rate changes, partially offset by $13.9 million of net cash used in financing activities and $15.0 million of net cash used in investing activities.
Net cash provided by our operating activities was driven by our operating income and changes in the timing of cash collections from our customers and payments pertaining to operating expenses. In addition, cash flows for the three months ended June 30, 2025 were unfavorably impacted by $5.7 million of expenses related to the Getty Images proposed merger.
Cash used in investing activities for the three months ended June 30, 2025 consisted of $15.4 million related to capital expenditures and content acquisition, partially offset by $0.4 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller.
Cash used in financing activities for the three months ended June 30, 2025 consisted of $11.6 million related to the payment of the quarterly cash dividend, $1.5 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment of our credit facility.
Adjusted free cash flow was $17.5 million for the second quarter of 2025, a decrease of $18.7 million from the second quarter of 2024.

QUARTERLY CASH DIVIDEND
During the three months ended June 30, 2025, the Company declared and paid a cash dividend of $0.33 per common share or $11.6 million.
On July 21, 2025, the Board of Directors declared a dividend of $0.33 per share of outstanding common stock, payable on September 18, 2025 to stockholders of record at the close of business on September 4, 2025.
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KEY OPERATING METRICS
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
 
Subscribers (end of period)(1)
1,073,000 490,000 1,073,000 490,000 
Subscriber revenue (in millions)(2)
$108.0 $80.3 $217.9 $164.2 
Average revenue per customer (last twelve months)(3)
$266 $434 $266 $434 
Paid downloads (in millions)(4)
112.6 33.4 233.5 68.4 
_______________________________________________________________________________________________________________________ 
Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato.
(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.
(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.
(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.
(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

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NON-GAAP FINANCIAL MEASURES
To supplement Shutterstock’s consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock’s management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow.
Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense - non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, impairment loss on long-term investment, unrealized losses / gains on investments, interest income and expense, income taxes and Merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, Giphy Retention Compensation Expense - non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), impairment loss on long-term investment, Merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods in the comparison; billings as revenue adjusted for the change in deferred revenue, excluding deferred revenue acquired through business combinations; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, and cash paid for costs related to the Getty Images merger.
The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the “Giphy Retention Compensation Expense - non-recurring”), are required payments in accordance with the terms of the acquisition. Meta’s sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the “CMA”) and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense - non-recurring is not considered an ongoing expense necessary to operate the Company’s business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. For the three months ended June 30, 2025, the Company also incurred $4.3 million of Giphy Retention Compensation expense related to recurring employee costs, which is included in operating expenses, and are not included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.
These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Shutterstock’s management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock’s operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company’s overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock’s underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock’s operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock’s financial reporting. Shutterstock’s management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development
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costs to support the Company’s ongoing business operations and provides them with the same measures that management uses as the basis for making resource allocation decisions.
Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock’s business operations, financial performance and overall liquidity; (ii) facilitate management’s internal comparisons of the historical operating performance of its business operations; (iii) facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock’s management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.
Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings, adjusted free cash flow), and each measure’s most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings “Reconciliation of Non-GAAP Financial Information to GAAP” and “Supplemental Financial Data” immediately following the Consolidated Balance Sheets.

Previously Announced Merger Agreement with Getty Images

On January 7, 2025, Shutterstock announced that it entered into a merger agreement with Getty Images to combine in a merger of equals transaction, creating a premier visual content company. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and the extension or refinancing of Getty Images’ existing debt obligations. As previously announced, a majority of Shutterstock stockholders approved the adoption of the merger agreement at a special meeting of stockholders held on June 10, 2025.

As previously communicated, in light of the pending transaction with Getty Images, Shutterstock will not be hosting a conference call or providing financial guidance in conjunction with its second quarter 2025 results.

For additional information associated with the transaction, please see the Company’s filings from time to time with the Securities and Exchange Commission.

ABOUT SHUTTERSTOCK
Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock is home to the world’s largest and most diverse collection of high-quality licensable assets, data and AI solutions, advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.

Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

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FORWARD-LOOKING STATEMENTS
The statements in this press release, and any related oral statements, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “could,” “might,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, statements regarding guidance, industry prospects, future business, future results of operations or financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services, management strategies, our competitive position and the expected timing and completion of the proposed transaction with Getty Images. Important factors that could cause actual results to differ materially from the forward-looking statements include, among other things: risks and uncertainties associated with our proposed transaction with Getty Images and those risks discussed under the section captioned “Risk Factors” in Shutterstock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Shutterstock does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.

Investor Relations ContactPress Contact
Scott GrossmanLori Rodney
ir@shutterstock.compress@shutterstock.com
917-563-4991
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Shutterstock, Inc.
Consolidated Statements of Operations
(In thousands, except for per share data)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Revenue$266,990 $220,053 $509,610 $434,368 
Operating expenses:
Cost of revenue105,994 91,254 206,882 179,458 
Sales and marketing57,077 51,881 110,436 108,117 
Product development20,754 19,859 40,619 40,910 
General and administrative48,434 36,393 106,741 68,471 
Total operating expenses232,259 199,387 464,678 396,956 
Income from operations34,731 20,666 44,932 37,412 
Interest expense(4,224)(561)(8,522)(1,123)
Other income / (expense), net12,624 (3,545)27,139 661 
Income before income taxes43,131 16,560 63,549 36,950 
Provision for income taxes13,691 12,935 15,421 17,204 
Net income$29,440 $3,625 $48,128 $19,746 
Earnings per share:    
Basic$0.84 $0.10 $1.37 $0.55 
Diluted$0.82 $0.10 $1.35 $0.55 
Weighted average common shares outstanding:    
Basic35,257 35,697 35,075 35,644 
Diluted35,958 35,982 35,642 36,023 









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Shutterstock, Inc.
Consolidated Balance Sheets
(In thousands, except par value amount)
(unaudited)
 
 June 30, 2025December 31, 2024
ASSETS  
Current assets:  
Cash and cash equivalents$116,410 $111,251 
Accounts receivable, net of allowance of $3,652 and $3,101
151,752 95,225 
Prepaid expenses and other current assets40,544 49,482 
Total current assets308,706 255,958 
Property and equipment, net63,291 66,400 
Right-of-use assets12,861 13,956 
Intangible assets, net238,037 248,477 
Goodwill575,249 569,668 
Deferred tax assets, net77,079 70,982 
Other assets101,228 83,715 
Total assets$1,376,451 $1,309,156 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$15,987 $9,221 
Accrued expenses121,451 126,643 
Contributor royalties payable93,026 81,076 
Deferred revenue226,719 225,489 
Debt158,108 158,106 
Other current liabilities19,012 24,751 
Total current liabilities634,303 625,286 
Deferred tax liability, net1,933 2,174 
Long-term debt118,119 119,598 
Lease liabilities20,806 23,365 
Other non-current liabilities15,127 20,383 
Total liabilities790,288 790,806 
Commitments and contingencies  
Stockholders’ equity:  
Common stock, $0.01 par value; 200,000 shares authorized; 40,808 and 40,395 shares issued and 35,287 and 34,874 shares outstanding as of June 30, 2025 and December 31, 2024, respectively
407 403 
Treasury stock, at cost; 5,521 shares as of June 30, 2025 and December 31, 2024
(269,804)(269,804)
Additional paid-in capital496,883 468,390 
Accumulated other comprehensive loss(2,529)(16,841)
Retained earnings361,206 336,202 
Total stockholders’ equity586,163 518,350 
Total liabilities and stockholders’ equity$1,376,451 $1,309,156 

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Shutterstock, Inc.
Consolidated Statements of Cash Flows
(In thousands, except par value amount)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$29,440 $3,625 $48,128 $19,746 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization22,611 21,433 45,282 42,696 
Deferred taxes974 4,357 (6,798)503 
Non-cash equity-based compensation15,625 14,976 33,509 26,126 
Loss on impairment of long-term investment
5,000 — 5,000 — 
Bad debt expense367 (262)960 (1,772)
Unrealized (gain) / loss on investments, net
(18,028)3,624 (31,288)(131)
Changes in operating assets and liabilities:
Accounts receivable(39,056)(3,143)(55,674)(3,879)
Prepaid expenses and other current and non-current assets4,775 (13,300)22,757 (25,299)
Accounts payable and other current and non-current liabilities2,677 3,283 (14,587)(16,899)
Contributor royalties payable6,401 4,561 9,780 10,688 
Deferred revenue(3,950)(11,189)(4,986)(15,514)
Net cash provided by operating activities
$26,836 $27,965 $52,083 $36,265 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(11,312)(9,075)(22,120)(23,536)
Business combination, net of cash acquired
— — — (19,474)
Cash received related to Giphy Retention Compensation
369 18,121 861 36,522 
Acquisition of content
(4,081)(827)(4,978)(1,821)
Security deposit payment
59 82 38 82 
Net cash (used in) / provided by investing activities
$(14,965)$8,301 $(26,199)$(8,227)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of treasury shares
— (20,592)— (20,592)
Cash paid related to settlement of employee taxes related to RSU vesting(1,473)(893)(5,012)(8,859)
Payment of cash dividends
(11,623)(10,664)(23,124)(21,327)
Repayment of credit facility
(782)— (1,563)— 
Net cash used in financing activities
$(13,878)$(32,149)$(29,699)$(50,778)
Effect of foreign exchange rate changes on cash6,186 (1,057)8,974 (2,879)
Net increase / (decrease) in cash and cash equivalents
4,179 3,060 5,159 (25,619)
Cash and cash equivalents, beginning of period
112,231 71,811 111,251 100,490 
Cash and cash equivalents, end of period
$116,410 $74,871 $116,410 $74,871 
Supplemental Disclosure of Cash Information:
Cash paid for income taxes
$15,293 $9,659 $14,689 $12,560 
Cash paid for interest
4,106 496 8,465 1,005 
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Shutterstock, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In thousands, except per share information)
(unaudited)
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Net income$29,440 $3,625 $48,128 $19,746 
Add / (less) Non-GAAP adjustments:
Non-cash equity-based compensation15,625 14,976 33,509 26,126 
Tax effect of non-cash equity-based compensation (1)(2)
(3,672)2,835 (7,875)215 
Acquisition-related amortization expense (3)
9,581 9,163 19,278 18,326 
Tax effect of acquisition-related amortization expense (1)
(2,252)(2,153)(4,531)(4,306)
Impairment loss on long-term investment5,000 — 5,000 — 
Giphy Retention Compensation Expense - non-recurring
438 4,715 1,005 11,544 
Tax effect of Giphy Retention Compensation Expense - non-recurring(1)
(103)(1,108)(236)(2,713)
Merger related costs8,710 — 20,571 — 
Tax effect of Merger related costs(1)
(1,960)— (4,629)— 
Other(4)
(17,908)3,907 (30,988)141 
Tax effect of other(1)
(27)(63)(68)(61)
Adjusted net income$42,872 $35,897 $79,164 $69,018 
Net income per diluted common share$0.82 $0.10 $1.35 $0.55 
Adjusted net income per diluted common share$1.19 $1.00 $2.22 $1.92 
Weighted average diluted shares35,958 35,982 35,642 36,023 
____________________________________________________________________________________________________________________ 
(1)Statutory tax rates are used to calculate the tax effect of the adjustments.
(2)The tax effect of non-cash equity-based compensation in 2024 includes a $6.3 million add-back for the reduction of deferred tax assets associated with the expiration of performance-based stock options and restricted stock units granted the Company’s Founder and Executive Chairman in 2014. The performance-based metrics were not met, the awards were not exercisable, and the Company recognized a non-cash tax expense for the change in deferred taxes.
(3)Of these amounts, $8.9 million and $8.2 million are included in cost of revenue for the three months ended June 30, 2025 and 2024, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.
(4)Other consists of unrealized gains and losses on investments and severance costs associated with strategic workforce optimizations.
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Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Net income$29,440 $3,625 $48,128 $19,746 
Add / (less) Non-GAAP adjustments:
Interest expense4,224 561 8,522 1,123 
Interest income(1,077)(1,348)(2,012)(2,391)
Provision for income taxes13,691 12,935 15,421 17,204 
Depreciation and amortization22,611 21,433 45,282 42,696 
EBITDA$68,889 $37,206 $115,341 $78,378 
Non-cash equity-based compensation15,625 14,976 33,509 26,126 
Giphy Retention Compensation Expense - non-recurring
438 4,715 1,005 11,544 
Merger related costs8,710 — 20,571 — 
Foreign currency (gain) / loss1,482 1,268 1,162 1,860 
Unrealized gain on investment(18,029)3,625 (31,289)(130)
Workforce optimization - severance121 282 301 271 
Impairment loss on long-term investment5,000 — 5,000 — 
Adjusted EBITDA$82,236 $62,072 $145,600 $118,049 
Revenue$266,990 $220,053 $509,610 $434,368 
Net income margin11.0 %1.6 %9.4 %4.5 %
Adjusted EBITDA margin30.8 %28.2 %28.6 %27.2 %

Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Reported Revenue (in thousands)$266,990 $220,053 $509,610 $434,368 
Revenue growth21 %5 %17 %2 %
Revenue growth on a constant currency basis20 %6 %17 %3 %
Content reported revenue (in thousands)$199,796 $169,951 $402,684 $343,781 
Content revenue growth18 %(9)%17 %(10)%
Content revenue growth on a constant currency basis16 %(9)%17 %(9)%
Data, Distribution, and Services reported revenue (in thousands)$67,194 $50,102 $106,926 $90,587 
Data, Distribution, and Services revenue growth34 %129 %18 %110 %
Data, Distribution, and Services revenue growth on a constant currency basis35 %129 %18 %110 %

Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Cash flow information:
Net cash provided by operating activities$26,836 $27,965 $52,083 $36,265 
Net cash (used in) / provided by investing activities$(14,965)$8,301 $(26,199)$(8,227)
Net cash used in financing activities$(13,878)$(32,149)$(29,699)$(50,778)
Adjusted free cash flow:
Net cash provided by operating activities$26,836 $27,965 $52,083 $36,265 
Capital expenditures(11,312)(9,075)(22,120)(23,536)
Content acquisitions(4,081)(827)(4,978)(1,821)
Cash received related to Giphy Retention Compensation
369 18,121 861 36,522 
Merger related costs5,686 — 15,036 — 
Adjusted Free Cash Flow$17,498 $36,184 $40,882 $47,430 
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Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Content$199,796 $169,951 $402,684 $343,781 
Data, Distribution, and Services$67,194 $50,102 $106,926 $90,587 
Total revenue$266,990 $220,053 $509,610 $434,368 
Change in total deferred revenue(1)
$477 $(11,519)$1,230 $(16,941)
Total billings$267,467 $208,534 $510,840 $417,427 
_______________________________________________________________________________________________________________________ 
(1) Change in total deferred revenue excludes deferred revenue acquired through business combinations.



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Shutterstock, Inc.
Supplemental Financial Data
(unaudited)

 Historical Operating Metrics
Three Months Ended
 6/30/253/31/2512/31/249/30/246/30/243/31/2412/31/239/30/23
 
Subscribers (end of period, in thousands) (1)
1,073 1,079 459 470 490 499 523 551 
Subscriber revenue (in millions) (2)
$108.0 $109.9 $75.7 $78.7 $80.3 $83.9 $85.2 $88.3 
Average revenue per customer (last twelve months) (3)
$266 $244 $450 $446 $434 $418 $412 $401 
Paid downloads (in millions) (4)
112.6 120.9 33.0 32.9 33.4 35.0 35.4 36.4 
Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato.
(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.
(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.
(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.
(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

Equity-Based Compensation by expense category
Three Months Ended
($ in thousands)6/30/253/31/2512/31/249/30/246/30/243/31/2412/31/239/30/23
 
Cost of revenue$532 $396 $505 $443 $300 $224 $145 $180 
Sales and marketing2,559 2,255 2,627 3,226 3,167 2,011 2,201 2,067 
Product development3,529 2,912 2,722 2,745 4,171 2,285 3,022 3,509 
General and administrative9,005 12,321 9,256 8,680 7,338 6,630 6,620 7,247 
Total non-cash equity-based compensation$15,625 $17,884 $15,110 $15,094 $14,976 $11,150 $11,988 $13,003 

Depreciation and Amortization by expense category
Three Months Ended
($ in thousands)6/30/253/31/2512/31/249/30/246/30/243/31/2412/31/239/30/23
 
Cost of revenue$20,804 $20,742 $21,191 $19,653 $20,087 $19,874 $18,952 $19,872 
General and administrative1,807 1,929 2,096 1,991 1,346 1,389 1,404 1,400 
Total depreciation and amortization$22,611 $22,671 $23,287 $21,644 $21,433 $21,263 $20,356 $21,272 


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