Shutterstock Q3 2020 Financial Results

Posted on 10/27/2020 by Jim Pickerell | Printable Version | Comments (0)

Shutterstock has reported Q3 2020 revenue of $165.2 million up 4% compared to $159.1 million in Q2 2019 and down from $159.2 million the previous quarter. Revenue per download was $3.79 per-image compared to $3.40 in Q3 2019 and $3.61 the previous quarter.

Total image and video downloads for Q3 were 43.4 million compared to 46.3 million a year earlier and down from 44 million from the previous quarter. At the end of the quarter Shutterstock had over 350 million images and 20 million video clips in its collection, for a total of 370 million pieces of content.

For the quarter E-commerce revenue was $102.8 million and represented 62% of total revenue.  Enterprise revenue was about $62.4 million and represented 38% of total revenue. Compared to Q3 2019 E-commerce revenue increased about 7% and Enterprise decreased by approximately 1%.

The number of subscribers increased to 255,000 compared to 184,000 in Q3 2019, but an increasing number of these subscribers are Prosumers and Small Business who tend to purchase the 10 image monthly subscriptions for $49 per month. Average revenue per subscriber was $265.10 while the average revenue per customer, increased 0.3% to $328. This would seem to indicate that non-subscribers are purchasing more higher priced content.
Commenting on the Company's performance, Stan Pavlovsky, the Company's Chief Executive Officer, said, "Shutterstock had a tremendous third quarter and I am pleased with the acceleration in revenue growth and the momentum in our subscription products. Our margins have improved significantly, providing us the confidence to make further investments in product innovation and sales and marketing to enable us to capitalize on the improving demand environment."

For more information check out the Interactive Investor Relations Microsite.


The chart below shows some of the trends in downloads, images in the collection and revenue growth since Q2 2018. Video downloads are included in this calculation. (For earlier data going back to Q1 2016 see here.  The “Rev Per DL” is the “Downloads” times the “Avg Rev per DL.” This differs slightly from “Total Rev.” because a small percentage of revenue comes from other activities not associated with stock content downloads. The "Rev/Image" row is "the average revenue per image in the collection." For this figure, I divide total revenue by the sum of still images.

  Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
  2018 2018 2018 2019 2019 2019 2019 2020 2020 2020
Downloads (millions) 45.2 43.9 46.8 47.2 46.6 46.3 47.7 46.8 44 43.4
Avg Rev per DL $3.41 $3.40 $3.40 $3.42 $3.44 $3.40 $3.44 $3.42 $3.61 $3.79
Images in collection 204 221 242 260 280 297 314 330 340 350
Video in collection 11 12 13 14 15 16 17 18 19 20
Total Rev. (millions) $156.6 $151.6 $162.1 $163.3 $161.7 $159.1 $166.4 $161.3 $159.2 $165.2
Rev. Per DL (millions) $154.13 $149.26 $159.10 $161.42 $160.30 $157.42 $163.06 $160.05 $158.54 $164.49
Rev/Image $0.73 $0.65 $0.62 $0.59 $0.54 $0.51 $0.50 $0.46 $0.44 $0.45
% Image Lic 21% 18% 18% 17% 15% 14.8% 14.4% 13.4% 12.3% 11.7%

    The "% Image Lic” row measures the odds that a single image in the collection will have been licensed one time within the quarter. To arrive at this number, I divide the total downloads by the number of images in the collection at the end of the quarter. This number is significant because it shows that new images are being added at a much faster rate than image downloads are increasing. For example, if a contributor had 1,000 images in the collection in Q2 2018 on average he would have had 210 downloads in the quarter. In Q2 2020 a collection with 1,000 image would only have had 117 downloads. Back in Q3 2015 a contributor with a 1,000 image collection could have expected to see 600 downloads in a quarter.

Net income and Income per diluted share

Net income of $22.6 million, increased $17.6 million as compared to $4.9 million for the third quarter in 2019. Net income per diluted share was $0.62, as compared to $0.14 for the same period in 2019. This increase is due primarily to our margin expansion initiatives, which have resulted in lower operating expenses, and, in part, to our increased revenue in the third quarter of 2020, as compared to the third quarter of 2019.

Adjusted net income per diluted share was $0.80 as compared to $0.29 for the third quarter of 2019, an increase of $0.51 per diluted share.

Adjusted EBITDA

Adjusted EBITDA of $47.4 million for the third quarter of 2020 increased by $25.8 million, or 120%, as compared to the third quarter of 2019, due primarily to our margin expansion initiatives, and, in part, to our increased revenue. The adjusted EBITDA margin increased to 28.7% from 13.6% in the third quarter of 2019.


Our cash and cash equivalents increased by $72.0 million to $383.1 million at September 30, 2020, as compared with $311.2 million as of June 30, 2020. This increase was driven by $63.9 million of net cash provided by our operating activities and $16.6 million provided by financing activities, partially offset by $6.7 million used in investing activities. Net cash provided by our operating activities was favorably affected by our increased operating income, in addition to changes in the timing of payments pertaining to operating expenses. Cash used in investing activities primarily consists of $6.3 million related to capital expenditures. Cash provided by financing activities consists primarily of $23.2 million of net proceeds from the Stock Offering, partially offset by $6.1 million related to the payment of the quarterly cash dividend. 

Copyright © 2020 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz


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