Shutterstock Reports Mixed Q3 2024 Results with 7% Revenue Growth, 38% Decline in Net Income

Shutterstock, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue reached $250.6 million, a 7% increase from $233.2 million in Q3 2023. For the nine months, revenue was $685.0 million, up 4% from $657.4 million in the prior year. The growth in revenue was primarily driven by a 14% increase in content revenue, attributed to the acquisition of Envato, which expanded Shutterstock's offerings in digital creative assets.

Despite the revenue growth, net income for Q3 2024 fell to $17.6 million, a significant decrease of 38% from $28.4 million in Q3 2023. For the nine months, net income dropped to $37.4 million from $111.3 million in the same period last year, reflecting a 66% decline. The decrease in profitability was influenced by higher operating expenses, which rose to $232.4 million in Q3 2024 from $216.1 million in Q3 2023, and to $629.4 million for the nine months, compared to $591.1 million in the previous year. Increased costs were associated with the integration of acquired businesses and higher general and administrative expenses.

Shutterstock's operating income for Q3 2024 was $18.1 million, slightly up from $17.2 million in Q3 2023, while for the nine months, it decreased to $55.6 million from $66.3 million. The company also reported a notable increase in interest expenses, which rose to $4.5 million in Q3 2024, reflecting borrowings under a new credit agreement established to finance acquisitions.

Strategically, Shutterstock completed two significant acquisitions in 2024: Backgrid USA, Inc. and Backgrid London, Ltd. for approximately $20 million, and Envato Pty Ltd. for $250 million. These acquisitions are expected to enhance Shutterstock's content offerings and market reach. The company also reported a bargain purchase gain of $50.3 million related to the acquisition of Giphy in 2023, which contributed to its financial position.

As of September 30, 2024, Shutterstock's cash and cash equivalents totaled $131.4 million, an increase from $100.5 million at the end of 2023. The company had total assets of $1.35 billion, up from $1.04 billion at the end of the previous fiscal year, while total liabilities increased to $825.9 million from $508.9 million. The company continues to focus on integrating its acquisitions and optimizing its operations to drive future growth.