Overview

* Shutterstock ( SSTK ) Q3 revenue grows 4% yr/yr, beating analyst expectations

* Net income for Q3 decreased due to merger-related expenses

* Adjusted EBITDA increased 13% yr/yr, driven by Envato and data deal revenue

Outlook

* Shutterstock ( SSTK ) will not provide financial guidance due to the pending Getty Images merger

Result Drivers

* DATA, DISTRIBUTION, AND SERVICES - Revenue increased 40% due to strong performance in this segment, offsetting declines in Content revenue

* CONTENT REVENUE DECLINE - Content revenue decreased 5% due to weak new customer acquisition, partially offset by Envato contribution

* MERGER EXPENSES - Net income decreased due to $7.1 mln of professional fees related to the proposed merger with Getty Images

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $260.10 $256.09

Revenue mln mln (2

Analysts

)

Q3 $0.99

Adjusted

EPS

Q3 Net $13.40

Income mln

Q3 $79.40

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* Wall Street's median 12-month price target for Shutterstock Inc ( SSTK ) is $26.93, about 19.4% above its November 4 closing price of $21.70

Press Release:

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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.)