Executive Summary

Q4 2024 delivered solid top-line growth with revenue of $247.3M (+9.5% YoY; +8.5% currency-neutral), subscription mix up to 54.9%, and strong adjusted EBITDA of $80.6M (32.6% margin), while GAAP net income margin fell to 10.0% due to non-operating items and lapping a prior-year tax benefit .
Editorial strength (U.S. elections, global sports, entertainment recovery post 2023 strikes) offset a creative shift; management highlighted content deals including AI rights lifting “Other” revenue to $14.8M .
FY2025 guidance: revenue $918–$955M and adjusted EBITDA $272–$290M, embedding FX headwinds (~$12.5M revenue, ~$5M EBITDA) and ~$8M one-off SOX acceleration in SG&A, plus production disruptions from L.A. fires; estimated 2025 cash interest ~$133M following refinancing .
Near-term stock catalysts: regulatory progress and integration planning on the Shutterstock merger, deleveraging below 4x net leverage, and continued subscription retention strength; risks include agency softness, FX volatility, and higher interest expense post refinancing .

What Went Well and What Went Wrong

What Went Well

Subscription momentum: Annual subscriber revenue grew ~11% and rose to 54.9% of sales; retention strengthened to 92.9% LTM, with 78k net adds to 314k annual subscribers and rising video attach rate to 16.5% .
Editorial outperformance: Q4 Editorial revenue rose 19.0% (17.7% currency-neutral), driven by elections and major sporting events, and entertainment/archive recovery from 2023 strikes .
Non-GAAP profitability: Adjusted EBITDA increased 11.7% to $80.6M (32.6% margin) with improved expense rate and favorable mix; adjusted EBITDA less capex up 14.8% to $65.5M .

What Went Wrong

Creative softness: Creative revenue fell 2.4% YoY, pressured by a customer download shift toward editorial (~3.2 points impact); agency weakness re-emerged in Q4, consistent with broader agency softness (e.g., WPP Q4 commentary) .
GAAP net income decline: Q4 GAAP net income fell to $24.7M from $39.1M in Q4’23; prior-year benefited from a $58.0M tax benefit and had FX losses, while Q4’24 included a $45.9M FX gain and a $7.5M investment impairment—net margin fell to 10.0% from 17.3% .
2025 headwinds: Guidance embeds FX headwinds, L.A. fires production disruptions, odd-year event calendar comparisons, and ~$8M SOX-related SG&A one-off, with adjusted EBITDA guided down 9.5% to 3.3% YoY .

Financial Results

Consolidated Performance vs Prior Quarters

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$229.1	$240.5	$247.3
Net Income ($USD Millions)	$3.7	$(2.5)	$24.7
Diluted EPS ($)	$0.01	$(0.01)	$0.06
Adjusted EBITDA ($USD Millions)	$68.8	$80.6	$80.6
Adjusted EBITDA Margin (%)	30.0%	33.5%	32.6%
Net Income Margin (%)	1.6%	(1.1%)	10.0%

Segment Revenue Breakdown

Segment ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
Creative	$137.9	$133.7	$142.4
Editorial	$83.6	$92.8	$90.1
Other	$7.6	$14.1	$14.8
Total Revenue	$229.1	$240.5	$247.3

KPIs (LTM)

KPI	Q2 2024 LTM	Q3 2024 LTM	Q4 2024 LTM
Paid Download Volume (Millions)	95	94	93
Annual Subscriber Revenue Retention Rate (%)	89.4%	92.2%	92.9%
Video Attachment Rate (%)	15.6%	16.4%	16.5%
Image Collection (Millions)	553	563	572
Video Collection (Millions)	30	31	32
Active Annual Subscribers (Thousands)	—	—	314

Notes: Active annual subscriber counts were explicitly disclosed for Q4 LTM (314k); earlier-quarter precise counts were not consistently reported in filings/transcripts.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q4 2024	$244–$250	Actual: $247.3	At high end; delivered
Revenue ($USD Millions)	FY 2024	$936–$942	Actual: $939.3	Within range
Revenue ($USD Millions)	FY 2025	—	$918–$955	New FY guide
Revenue YoY (reported)	FY 2025	—	-2.3% to +1.6%	New FY guide
Revenue YoY (currency-neutral)	FY 2025	—	-1.0% to +3.0%	New FY guide
Adjusted EBITDA ($USD Millions)	FY 2025	—	$272–$290	New FY guide
Adjusted EBITDA YoY (reported)	FY 2025	—	-9.5% to -3.3%	New FY guide
Adjusted EBITDA YoY (currency-neutral)	FY 2025	—	-8.0% to -1.7%	New FY guide
FX Assumptions	FY 2025	—	EUR 1.05; GBP 1.26	New
SG&A One-off	FY 2025	—	~$8M SOX acceleration	New
Cash Interest Expense	FY 2025	—	~$133M	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Generative AI adoption/monetization	Updated model with NVIDIA; partnerships (PicsArt, Canva renewal) focused on commercially safe AI . “Other” revenue lifted by AI-rights content deals .	Adoption growing modestly; customers use AI to modify imagery (e.g., product insertion) more than pure text-to-image; complements pre-shot content .	Gradual adoption; monetization via licensing and workflow tools; low near-term P&L dependence.
Subscription growth/retention	Annual subscription revenue ~53% in Q2; retention 89.4% . Q3 retention improved to 92.2% .	Subscription revenue 54.9%; retention 92.9%; +78k net adds to 314k annual subs LTM .	Strengthening mix and retention; supports revenue durability.
Editorial vs Creative mix	Q2 Editorial +4.1% ; Q3 Editorial +16.1% with shift from creative .	Editorial +19.0% on events; creative down 2.4% due to download mix shift (~3.2pt headwind) .	Event-driven editorial tailwinds; creative stable ex-mix impact.
Agency/customer macro	Corporate/media in growth in Q3; Agency stabilizing .	Agency down high-single digits; broader agency softness (cites WPP Q4); area most sensitive to macro .	Persistent pressure likely; watch macro risk transmission.
Debt/refinancing & leverage	Evaluating refinancing; liquidity healthy .	Refinanced term loans (USD $580M fixed 11.25%; EUR €440M ~8.63% as of 2/21/25); net leverage 3.97x; maturities extended to 2030 .	Maturity extension positive; interest burden elevated near term.
Merger with Shutterstock	—	Definitive merger agreement announced 1/7/25; limited commentary due to regulatory review; expected margin/cash flow benefits and deleveraging .	Key strategic overhang/catalyst; integration planning ahead.
FX/macro	FY2024 guidance updated for FX in prior quarters .	FY2025 embeds ~$12.5M revenue and ~$5M EBITDA FX headwinds; recent EUR/GBP moves may lessen impact later in year .	Manageable but volatile; ongoing sensitivity.
Data licensing	Not guided; modest contribution .	Guidance not dependent on data licensing; expects continuation of modest levels .	Optional upside; low dependency.
Production disruptions	—	L.A. fires causing delays in media production; odd-year event calendar comparison headwind .	Temporary headwind in media vertical.

Management Commentary

CEO Craig Peters: “We grew revenue to $247.3 million...with strong profitability with adjusted EBITDA rising to $80.6 million... Our delivery in 2024 serves as a foundation for 2025... I look forward to our announced merger with Shutterstock as a means to further delever our balance sheet, increase our margins and cash flow and accelerate investment...” .
CFO Jenn Leyden: “Annual subscription revenue was 54.9% of total revenue... retention rate continues to strengthen at 92.9%... Adjusted EBITDA margin was 32.6%... We ended the year with a net leverage below 4x... completed the refinancing... USD $580 million term loan at 11.25% fixed and €440 million euro term loan... estimated cash interest expense for 2025 is projected to be $133 million” .
Press release highlights: “Q4 Revenue Growth of 9.5%... Net Income of $24.7 million... Adjusted EBITDA of $80.6 million... Annual Subscription Revenue... 54.9%” .

Q&A Highlights

Generative AI adoption: Customers are favoring AI to modify rather than generate from scratch; product insertion in imagery is resonating, simplifying workflows and saving time/money .
Q4 outperformance drivers: Strong top-line, favorable gross margin mix, event-year editorial strength, content deals with AI rights and recovery in entertainment/archive versus 2023 strikes; EBITDA uplift largely from revenue drop-through .
2025 outlook by segment: Agency expected to stabilize but not flip to growth; media improving but impacted by L.A. fires; corporate remains biggest growth opportunity; data licensing modest and not guidance-critical .
FX and guidance cadence: FX headwinds front-loaded; potential moderation with EUR/GBP strengthening post-ECB; SG&A one-off for SOX acceleration ahead of merger-related activities (excluded from adjusted EBITDA beyond the $8M one-off) .

Estimates Context

Q4 2024 vs S&P Global consensus: Revenue beat ($247.3M vs $245.3M*); EPS vs “Primary EPS” consensus was roughly in-line to modestly above ($0.06 diluted vs $0.0567*), noting S&P’s “Primary EPS” actual recorded $0.0203* likely due to differing normalization methodology; EBITDA comparisons depend on definition (company reports Adjusted EBITDA $80.6M vs S&P “EBITDA” consensus $74.7M* and “actual” $64.0M*). Values retrieved from S&P Global.
Limited coverage: Only ~1 EPS estimate for Q4 2024 and ~4 revenue estimates, suggesting sparse analyst coverage; future estimate revisions likely to reflect editorial strength and subscription retention, FX updates, and higher interest expense [GetEstimates Q4 2024]*.
Forward quarters: For Q3–Q4 2025, consensus implies revenue ~$240.0M and ~$244.2M*, EPS ~$0.043 and ~$0.020*, and EBITDA ~$72.4M and ~$72.9M*, aligning with a flat-to-modestly improving trajectory. Values retrieved from S&P Global.

Key Takeaways for Investors

Mix shift toward subscriptions and editorial improves durability and retention, but creates quarterly noise for creative; underlying cohort dynamics point to ongoing retention improvements .
Adjusted EBITDA quality remains strong, but higher cash interest ($~133M) and FX headwinds temper FY2025 EBITDA growth; leverage below 4x is a positive structural milestone .
Event-year comps normalize in 2025; watch media production recovery pace after L.A. fires and agency spend trajectory amid macro uncertainty .
AI monetization is incremental—deals with embedded AI rights and workflow features (image modification/product insertion) drive modest revenue; guidance does not rely on outsized data licensing .
The Shutterstock merger is the central strategic catalyst with potential for margin expansion, cash flow improvement, and deleveraging; timing subject to regulatory approvals .
Trading lens: Q4 print was clean on revenue and adjusted EBITDA; stock likely reacts to FY2025 guide (FX, interest burden) and merger path clarity; monitor estimate revisions and FX trends into 2H .
Medium-term: Subscription flywheel, content exclusivity, and editorial franchises support a resilient thesis; execution on refinancing/merger integration and cost discipline remains key .

Appendix: Additional Data

Balance Sheet & Liquidity Snapshot

Metric ($USD Millions)	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Cash & Cash Equivalents	$136.6	$109.9	$121.2
Revolver Availability	$150.0	$150.0	$150.0
Liquidity	$286.6	$259.9	$271.2
Term Loans Outstanding (Face)	$1,100.6	$1,049.4	$1,014.4
Senior Notes	$300.0	$300.0	$300.0

Q4 2024 Product Revenue Mix

Product	Q4 2024 ($M)	% of Revenue	YoY %	Currency-Neutral YoY %
Creative	$142.4	57.6%	(2.4%)	(3.1%)
Editorial	$90.1	36.4%	19.0%	17.7%
Other	$14.8	6.0%	237.1%	234.7%
Total	$247.3	100.0%	9.5%	8.5%

Notes on non-GAAP: Adjusted EBITDA and related margins exclude litigation losses/recoveries, FX and fair value adjustments, equity comp, taxes, and other adjustments; see reconciliation tables in filings .

S&P Global estimates disclaimer: Values retrieved from S&P Global.*

Getty Images Holdings, Inc. (GETY)·Q4 2024 Earnings Summary