Executive Summary

Q4 2024 revenue grew 15% year over year to $250.3M; adjusted EBITDA rose 28% YoY to $59.1M (23.6% margin), but GAAP posted a net loss of $1.4M driven by higher interest expense (+$4.4M) and a discrete non‑cash tax item (+$6.4M) .
Content revenue rose 20% YoY to $212.5M on Envato contributions; Data, Distribution & Services (DDS) declined 5% YoY to $37.8M; FX was a ~1% headwind in the quarter .
No earnings call or forward guidance due to the pending merger of equals with Getty Images announced Jan 7, 2025; the Board raised the quarterly dividend to $0.33 (declared Jan 27, 2025; payable Mar 20, 2025) from $0.30 in Q4 .
Stock reaction catalysts: deal progress with Getty Images, integration/trajectory of Envato-driven Content growth, normalization of DDS growth after Q4 softness, and visibility on non-GAAP profitability amid higher interest/tax expense .

What Went Well and What Went Wrong

What Went Well

“Record revenues and Adjusted EBITDA in 2024,” with Content up YoY and all DDS components up double‑digits or more YoY; management “expect[s] continued growth” in both offerings in 2025 .
Q4 adjusted EBITDA rose 28% YoY to $59.1M (margin +230 bps to 23.6%), aided primarily by Envato; adjusted EBITDA rose to $247.1M for FY24 (+3% YoY) despite FX and transaction costs .
Ecosystem/partnership momentum: TikTok deepened GIPHY integration for AI-driven GIF recommendations, and Lightricks partnered with Shutterstock to license video for training an open‑source gen‑video model under a new “research license” construct .

What Went Wrong

DDS revenue fell 5% YoY in Q4 to $37.8M (after strong growth earlier in 2024), weighing on mix as Content surged on Envato .
GAAP net loss ($1.4M) due to higher interest (+$4.4M from Envato financing) and a discrete non‑cash tax item (+$6.4M); adjusted net income declined to $23.4M vs $25.8M YoY .
Core subscriber base and subscription revenue trended lower (Shutterstock‑only subscribers 459k vs 470k in Q3 and 523k in Q4’23; subscriber revenue $75.7M vs $78.7M in Q3 and $85.2M in Q4’23), even as ARPC improved to $450 LTM .

Financial Results

Quarterly progression (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$220.053	$250.588	$250.306
Net Income ($M)	$3.625	$17.615	$(1.429)
Diluted EPS ($)	$0.10	$0.50	$(0.04)
Adjusted Net Income ($M)	$35.897	$46.351	$23.373
Adjusted EPS ($)	$1.00	$1.31	$0.67
Adjusted EBITDA ($M)	$62.072	$69.997	$59.069
Net Income Margin (%)	1.6%	7.0%	(0.6)%
Adjusted EBITDA Margin (%)	28.2%	27.9%	23.6%

YoY – Q4 comparison

Metric	Q4 2023	Q4 2024
Revenue ($M)	$217.219	$250.306
Net Income ($M)	$(1.006)	$(1.429)
Diluted EPS ($)	$(0.03)	$(0.04)
Adjusted Net Income ($M)	$25.840	$23.373
Adjusted EPS ($)	$0.72	$0.67
Adjusted EBITDA ($M)	$46.267	$59.069
Net Income Margin (%)	(0.5)%	(0.6)%
Adjusted EBITDA Margin (%)	21.3%	23.6%

Segment revenue (oldest → newest)

Segment ($M)	Q2 2024	Q3 2024	Q4 2024
Content	$169.951	$203.713	$212.517
Data, Distribution & Services	$50.102	$46.875	$37.789
Total	$220.053	$250.588	$250.306

KPIs (Shutterstock-only; Envato shown separately in footnotes)

KPI	Q2 2024	Q3 2024	Q4 2024
Subscribers (end, k)	490	470	459
Subscriber Revenue ($M)	$80.3	$78.7	$75.7
ARPC (LTM, $)	$434	$446	$450
Paid Downloads (M)	33.4	32.9	33.0

Notes: Envato pro forma subscribers 629k and subscriber revenue $32.0M in Q4; combined pro forma subscribers 1,088k and subscriber revenue $107.7M in Q4 .

Additional context: FX reduced Q4 revenue growth by ~1% vs prior year . Full‑year adjusted FCF was $108.7M vs $138.5M in 2023; Q4 adjusted FCF was $15.6M vs $41.6M in Q4’23 . Cash and equivalents ended Q4 at $111.3M; total debt was $277.7M ($158.1M current; $119.6M long‑term) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$927–$936M (Q2 update)	$935–$940M (Q3 update)	Raised
Adjusted EPS	FY 2024	$4.18–$4.32 (Q2 update)	$4.22–$4.31 (Q3 update)	Raised/Narrowed
Adjusted EBITDA	FY 2024	$245–$248M (Q2 update)	$247–$250M (Q3 update)	Raised
Company Guidance Policy	Q4 2024	N/A	No call or guidance due to pending Getty Images merger	Maintained “no guidance” posture in Q4
Dividend per share	Q4 2024 vs Q1 2025	$0.30 (declared Oct 21, 2024; paid Dec 13, 2024)	$0.33 (declared Jan 27, 2025; payable Mar 20, 2025)	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2024)	Trend
AI/data licensing demand	Q2: Strong DDS growth; launched Gen3D, ImageAI, and growing data deals . Q3: DDS $47M; “land‑and‑expand” with large tech and VC‑backed AI companies; expanding into new asset types and metadata services .	Company reiterated record FY24 and continued DDS growth expectations into 2025; FX was minor; no call held .	Positive, expanding use‑cases; quarterly lumpiness persists.
Generative AI in Content	Q3: Generative Plus subscriptions rising; AI use appears additive to stock licensing, bringing in new customers .	ARPC rose to $450 LTM; Content +20% YoY helped by Envato; AI strategy intact (no new metrics) .	Improving monetization; supportive of core content.
Envato integration	Q2: Closed July 22; added unlimited multi‑asset subscription . Q3: Envato outperformed, driving Content growth; improving subs after rebrand .	Content +20% YoY; pro forma subscribers 1.09M; Envato subscriber revenue $32.0M in Q4 .	Strong contribution; scaling.
GIPHY monetization & distribution	Q3: TikTok DM integration announced; run‑rate at acquisition ~ $20M; scaling sales hires; rising customer count .	TikTok partnership highlighted in Q4 period; DDS -5% YoY in Q4 despite partnership progress .	Strategic momentum; near‑term variability.
Macro/FX	Q2: Constant‑currency +6% . Q3: CC neutral for revenue YoY .	FX reduced Q4 YoY revenue growth by ~1% .	Modest headwind.
Capital allocation	Q3: Repurchased $21M; prioritized buybacks/dividends/M&A; net debt/LTM EBITDA ~0.6x .	Dividend raised to $0.33 for Mar 2025; debt balances reflect Envato financing .	Ongoing shareholder returns with moderate leverage.
Regulatory/strategic	Q3: —	Jan 7, 2025 merger of equals agreement with Getty Images; Q4 provided no call/guidance pending approvals .	Deal overhang/catalyst.

Management Commentary

“We are proud that Shutterstock achieved record revenues and Adjusted EBITDA in 2024… our Content business grew… and each component of our Data, Distribution and Services business grew double digits or greater… we expect continued growth across both of these offerings in 2025.” — Paul Hennessy, CEO .
Q4 drivers of GAAP loss: interest expense rose $4.4M (Envato borrowings) and income tax expense increased $6.4M due to a non‑recurring, non‑cash discrete item; partially offset by Envato profitability .
FX: revenue growth was reduced by ~1% in Q4; FX impact was negligible for full‑year growth .

Q&A Highlights

No Q4 earnings call or Q&A due to the pending Getty Images transaction . Themes from Q3 Q&A for context:

GIPHY monetization path and TikTok DM integration; management reiterated bullishness on scaling GIPHY without breaking out revenue detail .
Core Content trajectory excluding Envato improving sequentially; management expects further improvement toward returning to growth .
Data business visibility remains lumpy but is strengthening via re‑licensing and “land‑and‑expand” with existing customers; vertical AI apps are an emerging demand driver .
Envato brings strong templates/fonts supply beneficial to both core content and data training offerings .

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2024 (revenue, EPS, EBITDA) but could not access due to API rate limits at the time of request; therefore, we do not present formal consensus comparisons for this quarter [SPGI request error].
The company did not provide guidance in Q4 because of the pending Getty Images transaction .

Key Takeaways for Investors

Mix shift and M&A: Content growth (+20% YoY) is being driven by Envato; watch for organic content inflection and cross‑sell with unlimited subscription in 2025 .
DDS normalization: Despite strategic wins (TikTok, AI data deals), DDS declined 5% YoY in Q4; expect lumpiness, but full‑year DDS grew 28% and was up ~40% YTD by Q3—track bookings cadence and re‑licensing activity .
Profitability quality: Adjusted EBITDA trends remain solid (Q4 +28% YoY), but GAAP earnings were pressured by higher interest and discrete tax; monitor financing costs and tax normalization to translate non‑GAAP strength into GAAP EPS .
Cash returns and balance sheet: Dividend raised to $0.33; share repurchases active in 2H 2024; debt increased to fund Envato—capital deployment remains shareholder‑friendly with moderate leverage .
AI flywheel: Generative tools appear additive to stock licensing; ARPC rising and partnerships expanding (e.g., Lightricks). Continued execution in AI data licensing and content monetization could be multiple‑expanding drivers .
Deal overhang/catalyst: The Getty Images merger introduces uncertainty (timing, approvals, financing) and can overshadow near‑term fundamentals; milestones on regulatory and shareholder approvals likely to drive the stock short‑term .

Relevant source documents and data points are cited inline:

Q4 2024 8‑K press release and financials
Q3 2024 8‑K press release and financials
Q2 2024 8‑K press release and financials
Q4‑period press releases (GIPHY–TikTok, Lightricks partnership)
No Q4 call/guidance due to Getty Images merger .

Shutterstock, Inc. (SSTK)·Q4 2024 Earnings Summary