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

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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.)