Shutterstock (NYSE:SSTK) Misses Q4 Revenue Estimates, Stock Drops
Stock photography and footage provider Shutterstock (NYSE:SSTK) fell short of analysts' expectations in Q4 FY2023, with revenue flat year on year at $217.2 million. The company's full-year revenue guidance of $875 million at the midpoint also came in 4.8% below analysts' estimates. It made a non-GAAP profit of $0.72 per share, down from its profit of $1.05 per share in the same quarter last year.
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Shutterstock (SSTK) Q4 FY2023 Highlights:
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Revenue: $217.2 million vs analyst estimates of $223.9 million (3% miss)
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EPS (non-GAAP): $0.72 vs analyst estimates of $0.60 (19.5% beat)
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Management's revenue guidance for the upcoming financial year 2024 is $875 million at the midpoint, missing analyst estimates by 4.8% and implying 0% growth (vs 5.8% in FY2023)
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Free Cash Flow of $41.6 million is up from -$6.30 million in the previous quarter
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Gross Margin (GAAP): 55.9%, down from 59.6% in the same quarter last year
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Subscribers: 523,000, down 63,000 year on year
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Market Capitalization: $1.59 billion
Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "Shutterstock delivered record revenues and profitability in 2023 and significantly exceeded our targets set out at the beginning of the year".
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Online Marketplace
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
Sales Growth
Shutterstock's revenue growth over the last three years has been unremarkable, averaging 9.6% annually. This quarter, Shutterstock reported a year on year revenue decline of 0.2%, missing analysts' expectations.
For the upcoming financial year, management expects revenue to reach $875 million at the midpoint, representing 0% growth compared to the 5.8% increase in FY2023.
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