Shutterstock Q2 2019 Financial Results

Posted on 8/6/2019 by Jim Pickerell | Printable Version | Comments (0)

Shutterstock has reported Q2 2019 revenue of $161.7 million up 3% compared to Q2 2018 and down from $163.3 million the previous quarter. Revenue per download averaged $3.44 per image, compared to $3.41 in Q2 2018.

Total image and video downloads for Q2 were 46.6 million, up from 45.2 million a year earlier, and down from 47.2 million in Q1 2019. At the end of the quarter Shutterstock had over 280 million images and 15 million video clips, or 295 million pieces of content in its collection.

E-commerce revenue increased approximately 6% as compared to Q2 2018, to $97.0 million and represented 60% of total revenue for the quarter. Enterprise customer revenue remained relatively flat, decreasing 0.2% as compared to Q2 2018, to $64.7 million and represented 40% of total revenue.

At they end of the Q1 2018 the company said it had 750,000 photographers, videographers, musicians, artists and designers who had contributed to the Shutterstock collection. Today, they said they added more than 150,000 contributors during the quarter for a total of over 900,000 contributors.

About 27% of revenue or $43,659,000 was paid out to contributors during the quarter. This would mean that on average contributor earned about $48.51 during the quarter or less than $200 annually.

Shutterstock reports that they have 1.9 million customers and about 40,000 Enterprise accounts. We know that in many cases multiple art directors working for a particular company have access to the same Enterprise account. It is unclear whether the 1.9 million customers includes multiple individuals from each Enterprise account, or if there are 1,860,000 E-commerce customers separate from the Enterprise customers.
If there are about 1,860,000 E-commerce customers the average customer spend about $52.15 during the quarter. The total number of customers does not seem to have grown in the last 12 months, but the number of contributors has doubled.

About 40% of the revenue, or $64.7 million, came from Enterprise customers. The last we were told there were about 40,000 Enterprise customers meaning that the average Enterprise customer spent about $1,618 during the quarter, or $6,470 annually. We are told that several Enterprise customers spend over one hundred thousand dollars annually so a significant percentage spend much less than the $6,470 figure.

Sales and marketing expenses were about 27% of total revenue, or about $43,659,000. These costs are roughly split between the amount spent to operate the Enterprise sales operation and direct marketing to bring in E-commerce customers. Most of the E-commerce spend is in online advertising.

Product development costs were about 8% of total revenue. General and Administrative expenses represented about 16% of total revenue.

Future Guidance

Revenue for all of 2019 is expected to between $645 and $670 million, down from $685 to $695 million offered last quarter. Adjusted EBITDA is now expected to be between $93 and $107 million compared to $118 to $123 million they estimated last quarter. Income from operations is expected to be between $18 and $32 million down from the previously estimated $37 to $47 million last quarter. Capital expenditures, including capitalized labor, should be approximately $32 million for the year and the effective tax rate should be in the teens.

Commenting on the Company's performance, founder and CEO Jon Oringer said, “We have some immediate issues to address, particularly in out Enterprise sales channel that demand a critical re-evaluation of how we drive renewed growth. As a team we are now taking this opportunity to carefully evaluate all aspects of out Enterprise sales channel and we have recently made some changes that we think will have a positive impact. The potential for this business remains significant. The marketplace is quickly evolving as are the challenges out\r customers face. We believe we are the best positioned platform in out competitive landscape to capture these opportunities. Now, more than ever, users turn to our platform to deliver solutions that meet their rapidly changing needs. We think we can do more for them, and do it even better.”


The chart below shows some of the trends in downloads, images in the collection and revenue growth since Q4 2016. Video downloads are included in this calculation. (For earlier data going back to Q3 2014 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 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.

  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
  2017 2017 2017 2017 2018 2018 2018 2018 2019 2019
Downloads (millions) 43.5 42.7 41.9 43.9 43.7 45.2 43.9 46.8 47.2 46.6
Avg Rev per DL $2.96 $3.05 $3.23 $3.33 $3.40 $3.41 $3.40 $3.40 $3.42 $3.44
Images in collection 132 145 156 1704 187 204 221 242 260 280
Video in collection 8 8 8 9 10 11 12 13 14 15
Total Rev. (millions) $130.2 $134.0 $141.1 $151.8 $153 $156.6 $151.6 $162.1 $163.3 $161.7
Rev. Per DL (millions) $128.76 $130.24 $135.34 $146.19 $148.58 $154.13 $149.26 $159.1 $161.42 $160.30
Rev/Image $0.98 $0.93 $0.90 $0.89 $0.81 $0.73 $0.65 $0.62 $0.59 $0.54
% Image Lic 32% 30% 26% 25% 23% 21% 18% 18% 17% 15%

    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 Q4 2016 on average he would have had 350 downloads in the quarter. In Q2 2019 a collection with 1,000 image would have only had 150 downloads. Back in Q2 2014 a contributor with a 1,000 image collection could have expected to see 840 downloads in a quarter.

Income from Operations

Income from operations was $3.1 million, a decrease of $2.6 million, or 45%, compared to the second quarter of 2018, primarily as a result of an increase in operating expenses of $7.7 million, or 5%, partially offset by the increase in revenue. The increase in operating expenses is attributable to general and administrative expenses, which include increases in compensation, one-time severance costs, and depreciation and amortization.

Net Income

Net income of $3.3 million, or $0.09 per diluted share, increased $3.6 million for the second quarter of 2019 as compared with a net loss of $0.3 million, or a loss per diluted share of $0.01, for the second quarter of 2018, primarily driven by the previously reported $4.8 million after-tax charge related to the impairment of a long-term investment asset recorded in the second quarter of 2018.

Adjusted EBITDA

Adjusted EBITDA of $25.1 million for the second quarter of 2019 increased $1.1 million, or 4%, as compared to the second quarter of 2018, driven primarily by growth in revenue partially offset by higher operating costs. We define adjusted EBITDA as net income adjusted for foreign currency transaction gains and losses, expenses related to long-term incentives and contingent consideration related to acquisitions, impairment charges related to a long-term investment asset, interest income and expense, income taxes, depreciation, amortization, non-cash equity-based compensation and the gain on the Sale of Webdam.

Adjusted Net Income

Adjusted net income was $11.8 million, or $0.33 per diluted share, for the second quarter of 2019 as compared to $10.7 million, or $0.30 per diluted share, in the second quarter of 2018, an increase of $1.1 million, or 10%.

Copyright © 2019 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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