Stock photography and footage provider Shutterstock (NYSE:SSTK) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 13.2% year on year to $242.6 million. Its non-GAAP profit of $1.03 per share was 1.4% below analysts’ consensus estimates.
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Revenue: $242.6 million vs analyst estimates of $253 million (13.2% year-on-year growth, 4.1% miss)
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Adjusted EPS: $1.03 vs analyst expectations of $1.05 (1.4% miss)
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Adjusted EBITDA: $63.36 million vs analyst estimates of $64.73 million (26.1% margin, 2.1% miss)
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Operating Margin: 4.2%, down from 7.8% in the same quarter last year
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Free Cash Flow was $14.44 million, up from -$952,000 in the previous quarter
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Paid Downloads: 120.9 million, up 85.9 million year on year
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Market Capitalization: $573.3 million
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.
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Shutterstock grew its sales at a tepid 6.9% compounded annual growth rate. This was below our standard for the consumer internet sector and is a poor baseline for our analysis.
This quarter, Shutterstock’s revenue grew by 13.2% year on year to $242.6 million but fell short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 8.9% over the next 12 months. Although this projection suggests its newer products and services will spur better top-line performance, it is still below average for the sector.
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As an online marketplace, Shutterstock generates revenue growth by increasing both the number of users on its platform and the average order size in dollars.
Over the last two years, Shutterstock’s paid downloads, a key performance metric for the company, increased by 46.6% annually to 120.9 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction.
