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    Getty Images Holdings (GETY)

    Q4 2023 Earnings Summary

    Reported on Mar 17, 2025 (After Market Close)
    Pre-Earnings Price$5.15Last close (Mar 14, 2024)
    Post-Earnings Price$5.56Open (Mar 15, 2024)
    Price Change
    $0.41(+7.96%)
    • Getty Images is experiencing positive adoption and feedback on their Generative AI products, which, while not expected to contribute significantly in the short term, aligns with their expectations and lays a strong foundation for future growth.
    • The corporate segment is expected to continue growing in 2024, driven by internal marketing teams bringing sales and marketing efforts in-house to manage websites, social media, and marketing materials, which has been a long-standing growth driver for Getty Images.
    • High retention rates among large enterprise customers, with retention rates pretty much at 100%, coupled with growth in smaller e-commerce subscriptions on the Creative side, presents a strong base for predictable recurring revenue and future expansion opportunities.
    • Limited Near-Term Revenue Contribution from Generative AI: Getty Images does not expect significant revenue contributions from its Generative AI products in the near term. Adoption is expected to take time, and meaningful impact on revenue will only occur in the longer term. ,
    • Continued Decline in the Agency Business: The agency segment, which accounts for under 20% of total revenue, has been experiencing steady declines and is not expected to return to growth in 2024. While the rate of decline has slowed to mid-single digits, no significant turnaround is anticipated due to ongoing macroeconomic challenges. ,
    • Muted Growth in the Editorial Segment Despite Even-Year Events: The anticipated boost from major events such as the Olympics and the U.S. presidential election in 2024 is expected to be muted. Lingering impacts from the Hollywood strikes and challenging comparisons with the first half of 2023, which saw growth in the Editorial segment, are limiting potential growth in this area.
    1. Gen AI Revenue Contribution
      Q: What's the expected impact of Gen AI this year?
      A: Management expects that significant contributions from Gen AI are still longer term and won't have a material impact on this year's performance. They've been building products and bringing them to market in a subscription model, but adoption will take time.

    2. 2024 Revenue Guidance and Event Impact
      Q: What are revenue expectations for Creative vs. Editorial in 2024?
      A: In an even year, they normally expect growth due to events like the Olympics, U.S. presidential election, and Euros. However, lingering impacts from the strike will mute growth, particularly in Q1 and Q2. There's uncertainty in sizing the impact of the U.S. presidential election until they get deeper into the year.

    3. EBITDA Guidance and Expenses
      Q: What are the expense assumptions in the 2024 EBITDA guidance?
      A: They've reset the cost base entering 2024 to invest in top-line growth. Some cost pullbacks from 2023 have been eased, including incentive-based compensation tied to financial performance. It's a reset but not a full reversal of prior cost actions.

    4. Customer Retention and Churn
      Q: Can you comment on churn excluding agency?
      A: Enterprise customer retention rates are nearly 100%. Growth in smaller e-commerce subscriptions, which have lower initial retention rates, has pulled down overall retention figures. These smaller subscriptions are part of the Creative side of the business.

    5. Agency Business Outlook
      Q: What are expectations for the agency business in 2024?
      A: They aren't expecting a massive turnaround in 2024. While there was a slight improvement to mid-single-digit declines at year-end, the agency business remains affected by customers holding onto their creative and marketing budgets due to macroeconomic factors. Agency revenue is now well under 20% of total revenue.

    6. Subscription Revenue Seasonal Decline
      Q: Why did subscription revenue percentage drop from Q3 to Q4?
      A: In Q4, there was a stronger close with more a la carte purchases, including a slight rebound in the agency business. The easing of strike impacts boosted the paid assignment business, which isn't subscription-based. These factors decreased the subscription revenue percentage, but are considered positive developments.

    Research analysts covering Getty Images Holdings.