Shutterstock Reports $80.2 Million For Q2 2014

Posted on 8/7/2014 by Jim Pickerell | Printable Version | Comments (0)

Shutterstock has reported $80.2 million in revenue and total downloads of 31.5 million for Q2 2014. About 28 percent of the revenue was paid out to contributors in royalties. At the end of the quarter the company had 478 employees worldwide. The average price per download was $2.52 up from $2.45 in the previous quarter and an 8% increase compared to Q2 2013.  This increase in the average price was due primarily to a growing number of Enterprise and Video sales.

Net income for the second quarter of 2014 was $4.9 million as compared to $6.9 million in the second quarter of 2013. Net income available to common stockholders for the second quarter of 2014 was $4.9 million or $0.14 per share on a fully diluted basis as compared to $6.8 million or $0.20 per share on a fully diluted basis in the second quarter of 2013.

Future Guidance

Revenue for Q3 2014 is expected to be between $81 and $83 million and for all of 2014 revenue is expected to be between $323 and $327 million for a growth rate of roughly 32%. Adjusted EBITDA is expected to be between $68 million and $69.50 million.

Revenue And Download Trends

The chart below shows some of the trends in downloads, images in the collection and revenue growth since Q1 2012. (For earlier data going back to Q3 2010 see here). The "Rev/Imagel" row is "revenue per image in the collection." For this figure I 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 Q2 2014 would have only resulted in 800 downloads.

  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
  2012 2012 2012 2012 2013 2013 2013 2013 2014 2014
17.6 18.3 18.7 21.4 22.4 24.3 25.4 28 29.7 31.5
Rev.per DL $2.13 $2.22 $2.26 $2.30 $2.28 $2.33 $2.35 $2.43 $2.45 $2.52
Images & Video
18.8 20.2 21.7 23.3 25 28 31.3 34.5 37.1 40.7
Total Rev. $37.49 $40.63 $42.26 $49.22 $51.5 $56.8 $56.8 $68 $72.8 $80.2

$1.99 $2.01 $1.95 $2.11 $1.98 $1.96 $1.81 $1.97 $1.96 $1.97
% Image Lic 94% 91% 86% 92% 89% 87% 81% 81% 80% 77%

One of the interesting questions is the number of downloads and the average price per download of each segment of the business. It was reported that 7% of the revenue this quarter came from video downloads. Last quarter they said that 15% of the revenue came from Enterprise sales to large customers. In the chart below, I will estimate Enterprise sales at 18% of revenue for this quarter.

They reported that 20 Enterprise customers pay them over $100,000 per year, and over 500 pay them more than $10,000 per year. In January Thilo Semmelbauer, President & COO described Enterprise sales as follows: “it's a combination of the license and the rights they get, the indemnification, the service, as well as the functionality that we provide. So as an example, agencies use a platform where they can download what's called comps for free. Comps are sort of full resolution files without watermarks that they can use in their discussions with clients in their workflow. And until their clients decide yes we want to use this image they're actually not paying for that.

“So now, when they do license that image it's going to be in the hundreds of dollars per image. So that's a very different type of workflow that's very suited to the agency market. And I won't go through all the other categories but it's an example of how we've customized our offering for publishers, large corporations, agencies. And the price point for image varies based on some of those suites of things.”

The figures in the chart below are my ballpark estimates of how the revenue breaks down and the average price per download. They may not be totally accurate, but they should give the reader some idea of the relative importance of each segment of the business. While some of the downloads by Enterprise customers may "be in the hundreds of dollars per image" the vast majority are subscription downloads so the average price per download is significantly less than a hundred dollars.

  Percent Gross Average Total Percent
  Revenue Revenue Price Downloads Total DL
Video 7.0% $5,614,000 $60.00 93,567 0.29%
Enterprise 18.0% $14,436,000 $6.81 2,119,823 6.62%
Images on Demand 35.0% $28,070,000 $11.00 2,551,818 7.97%
Subscription 40.0% $32,080,000 $1.20 26,733,333 83.54%
  100.0% $80,200,000   $31,498,541  

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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