Karen Kenny's questions to Shutterstock Inc (SSTK) leadership • Q1 2024
Question
Karen Kenny asked whether the data deals signed in the quarter were recognized ratably and if data revenue grew year-over-year. She also inquired about the organic and inorganic trends driving the significant growth in Shutterstock's contributor base and content library.
Answer
CFO Jarrod Yahes confirmed that data deals are increasingly structured for revenue to be recognized over time, which improves visibility but still carries inherent lumpiness. He highlighted that the Data, Distribution, and Services business grew 90% year-over-year. CEO Paul Hennessy explained that contributor and library growth is accelerating due to a flywheel effect; the expanding use case for content in AI data training is attracting a massive influx of new supply, which in turn helps serve both data and traditional creative customers more effectively.