Shutterstock Reports $72.8 Million For Q1 2014

Posted on 5/9/2014 by Jim Pickerell | Printable Version | Comments (0)

Shutterstock has reported $72.8 million in revenue and total downloads of 29.7 million for Q1 2014. About 28% of the revenue was paid out to contributors in royalties. At the end of the quarter the company has 407 employees worldwide and over 55,000 active contributors.

The average price per download was $2.45, up from $2.43 in the previous quarter and a 7% increase compared to Q1 2013. This increase in the average price is due primarily to a growing number of enterprise and video footage sales. However, more than 90% of downloads still result from subscriptions.
Thilo Semmelbauer, President and COO said, “For large enterprise customers revenue in Q1 continued to double year over year which is a strong testament to the offering and the team we’ve put in place around the world. Large enterprise customers typically require different licensing, account features and indemnification terms which leads to higher revenue per download.”

During the quarter the company added 3.2 million images. The company ended the quarter with 35.4 million images and over 1.7 million video clips. Today Shutterstock reports 36,801,881 images in the collection.
During the quarterly conference call no new details were provided regarding the Offset or the Facebook initiatives. This would indicate that neither are generating significant revenue at this time.

According to Jon Oringer, CEO & Chairman, there was, “continued momentum in the first quarter across all regions with North America, Europe/Africa and Asia/Pacific all growing in excess of 40% annually. The company’s three key growth strategies are:
    (1)    increasing penetration in all markets around the world
    (2)    investing in emerging content types, particularly video footage, and
    (3)    expanding our relationships with large enterprises, which they reach primarily through our enterprise sales team.”

Revenue And Download Trends

The chart below shows some of the trends in downloads, images in the collection and revenue growth since the third quarter of 2011. (For earlier data going back to Q3 2010 see here). The "Rev/Imagel" row is "revenue per image in the collection." For this figure we divide total revenue by the sum of still images and video clips since the video makes up a portion of the revenue.

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 we 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 to the collection at a rate faster than image downloads are increasing. For example, if a contributor had 1000 images in the collection in Q1 2012 on average he would have had 940 downloads in that quarter. The same 1000 images in the collection in Q1 2014 would have only resulted in 800 downloads.

  Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
  2011 2012 2012 2012 2012 2013 2013 2013 2013 2014
16.2 17.6 18.3 18.7 21.4 22.4 24.3 25.4 28 29.7
Rev.per DL $2.14 $2.13 $2.22 $2.26 $2.30 $2.28 $2.33 $2.35 $2.43 $2.45
17.4 18.8 20.2 21.7 23.3 25 28 31.3 34.5 37.1
Total Rev. $34.67 $37.49 $40.63 $42.26 $49.22 $51.5 $56.8 $56.8 $68 $72.8
$1.99 $1.99 $2.01 $1.95 $2.11 $1.98 $1.96 $1.81 $1.97 $1.96
% Image Lic 93% 94% 91% 86% 92% 89% 87% 81% 81% 80%

Financial Outlook

Adjusted EBITDA for the first quarter of 2014 was $14.2 million as compared to $11.8 million in the first quarter of 2013.  Adjusted EBITDA is defined as net income adjusted for interest income/(expense), income taxes, depreciation, amortization and non-cash equity-based compensation.

Net income for the first quarter of 2014 was $4.9 million as compared to $5.6 million in the first quarter of 2013. Net income available to common stockholders/members for the first quarter of 2014 was $4.9 million or $0.14 per share on a fully diluted basis as compared to $5.5 million or $0.16 per share on a fully diluted basis in the first quarter of 2013.

Future Guidance

Revenue for Q2 2014 is expected to be between $76 and $78 million. For all of 2014 revenue is expected to be between $315 and $320 million for a growth rate of roughly 35%.


On the expense side during the quarter:
    Sales and Marketing was $19.3 million, 26% of revenue and roughly 70% of brand marketing was outside the U.S.
    Product Development was $7.8 million or 11% of revenue
    General and Administrative was $7.5 million or 10% of revenue
    There were $10.9 million in Capital Expenditures of which $7.6 million was carryover related to home office relocation.

Copyright © 2014 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

Jim Pickerell is founder of, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to:  


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