Shutterstock Q3 revenue falls 33% on weak new customer additions
Overview
Creative content platform's Q3 revenue fell 33% yr/yr due to weakness in core segments
Adjusted EPS for Q3 declined yr/yr as revenue dropped
Net loss driven by $195.6 mln goodwill impairment and revenue declines outpacing cost reductions
Outlook
Company expects to achieve $60 mln in annualized run-rate operating expense reductions
Company sees AI trends creating new opportunities in content and data capabilities
Shutterstock says it is focused on operational performance and long-term growth
Result Drivers
CONTENT SEGMENT WEAKNESS - Co said lower Content revenue was primarily due to weakness in new customer acquisition
DATA LICENSING VOLATILITY - Co attributed sharp drop in Data, Distribution, and Services revenue to deal timing volatility and variable revenue recognition
COST REDUCTIONS - Co said it reduced operating expenses and headcount to offset revenue declines
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $173.90 mln | ||
Q3 Adjusted EPS | $0.45 | ||
Q3 Net Loss | $197.80 mln | ||
Q3 Adjusted EBITDA | $41.80 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)