Shutterstock, Inc. (NYSE:SSTK) shares climbed 2.12% in premarket trading Wednesday after the visual content and creative platform reported third-quarter results that topped analyst expectations, led by continued strength in its Data, Distribution, and Services segment.
The company posted adjusted earnings of $0.99 per share, far above consensus forecasts of $0.63, while revenue rose 4% year-over-year to $260.1 million, beating the $255.6 million estimate.
Shutterstock’s Content business declined 5% year-over-year to $194.4 million, but this was more than offset by a 40% surge in its Data, Distribution, and Services division, which generated $65.7 million, or roughly a quarter of total revenue. The company also maintained robust profitability, with adjusted EBITDA margins above 30% for the second consecutive quarter.
“Shutterstock achieved another strong quarter of financial results,” said Paul Hennessy, Chief Executive Officer. “Revenue grew 4% on the back of the fast-growing Data, Distribution, and Services business, while Adjusted EBITDA margins remained over 30% for the second consecutive quarter, and Free Cash Flow significantly increased.”
Adjusted EBITDA rose 13% year-over-year to $79.4 million, with margins improving to 30.5% from 27.9% a year earlier. Free cash flow jumped to $75.2 million, up from $45.7 million in the same quarter of 2024.
Shutterstock ended the quarter with 1.06 million subscribers, slightly down from 1.105 million a year ago. The company said it continues to enhance its AI-powered content tools, integrating image, video, and audio generative models into its platform to drive future growth.
On the pending merger with Getty Images, Hennessy reiterated that Shutterstock remains “committed to completing the transaction” and is working to obtain regulatory approval from the UK’s Competition and Markets Authority.