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Shutterstock fails to meet Street’s expectations

Monday, February 27, 2017 7:19
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Shareholders Shutterstock Inc (NYSE:SSTK) were a picture of dismay as shares in the imagery and music provider tanked in pre-market trading.

Results for 2016 failed to come up to snuff, despite a 14% increase in revenue from the year before to US$494.3mln on the back of a 14% increase in paid downloads.

Revenue per download increased by 1% year-on-year.

Adjusted underlying earnings (EBITDA) rose 13% from the year before to US$95.5mln while net income was up two-thirds to US$32.6mln.

Fourth quarter net income of US$9.9mln equated to 27 cents, which was a couple of cents below what the market had been expecting.

The shares were down almost 11% at US$51.63 in pre-market trading following the release of the figures.

Founder and chief executive officer Jon Oringer remained upbeat, however, claiming the company made “a tremendous amount of progress in 2016”.

“We improved and expanded the content we offer; we greatly enhanced the technology on which our customers access our products; we have meaningfully diversified our offerings with video, music and editorial imagery; and we have strengthened our business in international markets,” he boasted.

“Moving forward, our focus and vision is to expand our business from a marketplace to a platform, and we are confident that this will mean accessing a larger addressable market, accelerating growth and increasing shareholder value,” he added.

Story by ProactiveInvestors


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