Reacceleration Drivers
Q: What will drive growth in the second half, especially regarding agencies?
A: The company expects acceleration in the second half due to several factors. " The production side, which has lagged, is anticipated to pick up. " The agency channel is expected to see slow gradual improvement from the double-digit declines. " Additionally, the editorial side will benefit from favorable year-on-year comparisons due to last year's strike impact starting in Q3. " Major events like the Olympics and the U.S. political cycle are also shaping up to be healthy-sized events contributing to growth. "

Subscription Growth and Retention
Q: Can you explain the drivers behind subscription growth and retention rates?
A: The company has been driving more annual subscriptions across iStock and Unsplash, resulting in higher ARPU and lifetime value. " Unsplash introduced a paid subscription, Unsplash+, offering indemnification and higher-end content. " On iStock, more subscription SKUs and free trials have been introduced, attracting new customers. " The retention rate has come down to around 90%, partly due to higher churn among small businesses and freelancers. " However, this is expected to hover around 89%-90% and ramp back up to the low mid-90s over time. " "

Hollywood Strike Impact and Recovery
Q: Are we beyond the heavy lifting from the writers' strike, and what's the recovery outlook?
A: The company believes they are past the heavy lifting and are now in a gradual re-ramp over time. " Recovery is expected to continue over the second half and into 2025. " The strike impacted all product lines, including creative and editorial. " During the peak of the strike, the industry was down double digits; in the first half, declines moderated to lower single digits. " They anticipate returning to pre-strike levels by 2025. "

Generative AI Monetization
Q: What's the engagement and monetization outlook for Generative AI offerings?
A: Positive feedback has been received across all customer segments due to the quality and commercial safety of the Generative AI models. " However, it's still early days in the adoption curve within the commercial sector, and it's not yet material to the business. " Over time, Generative AI is expected to become a meaningful contributor to revenues. "

Agency Performance Outlook
Q: What gives optimism for agency performance in the second half?
A: The company is seeing stabilization in the agency segment, moving from double-digit declines to moderation as economic certainty improves. " Sectors like tech are bringing back spend, which flows through agencies. " While not expecting a major shift, trends of normalization are evident, led by large network agencies. "

Premium Access Performance
Q: How did Premium Access perform, and what's the outlook for e-commerce products?
A: Premium Access continues to show strong performance in customer uptake, retention, and utilization. " There has been no moderation in its performance over the last couple of years. " The company expects continued growth in iStock and Unsplash, offering differentiated content that resonates with customers. "

Data Licensing Revenues
Q: How do you characterize data licensing growth, and is it recurring?
A: The company engaged in some small data licensing deals consistent with their approach to build recurring, durable revenue streams over time. " While there's some lumpiness due to accounting and revenue recognition, they aim for these revenues to be recurring rather than one-time. "

Editorial Events Contribution
Q: What's the expected contribution from the Olympics and political cycle?
A: The company expects incremental revenue of around $8 million to $10 million this year, slightly lower than the $10 million to $12 million in the previous cycle. " This is largely driven by the political side, with potential for upside given the current election shaping up in the U.S.. " The incremental revenue will lift both creative and editorial revenues, historically split roughly 50-50 between them. "