Shutterstock, which provides commercial photography licenses to small businesses and others, saw its revenue increase this quarter by 30 percent, according to its latest Shutterstock financial report.
The company’s second quarter revenue was $104.4 million, a $13 million or 30 percent increase when compared to the second quarter of 2014.
Shutterstock CEO and founder John Oringer said in a news release:
“Shutterstock delivered another quarter of strong growth as the quality, breadth and diversity of our content library, along with unparalleled search functionality, continues to attract more users to our platform.
“We also took several strategic steps this past quarter to further strengthen our long-term growth profile, most notably expanding our subscription offerings and securing a broad-based editorial partnership with Penske Media. Meeting the evolving needs of the creative community remains our primary focus as we look to create additional value for our customers, contributors and shareholders.”
The Shutterstock financial report also showed revenue per download increasing by 13 percent, and the number of paid downloads increasing by 14 percent. The company’s overall image collection expanded by 47 percent. Shutterstock’s adjusted EBITDA income increased 24 percent to $20.7 million.
Shutterstock says it expects revenues for 2015 to be between $425 million and $430 million, lower than the $440 million analysts had projected.
Although Shutterstock’s report showed a growth in earnings for this quarter, The Motley Fool wondered if the company’s future was as bright, pointing to adjusted earnings projections that were lower than expected, and to the departure of CFO Tim Bixby, who will be replaced by Steve Berns, a member of the company’s board of directors.
Bixby has resigned to pursue other opportunities. Oringer said he was confident Berns — expected to move into office by the end of September — would help lead the company in the right direction.
“Nevertheless, abrupt changes in the executive suite always come with a measure of consternation from shareholders, especially when results haven’t lived up to expectations,” Motley Fool contributor Dan Caplinger wrote.
And Shutterstock’s report led the company’s stock to fall by 31 percent after the numbers were released Thursday, according to The Street.com.
Headquartered in New York City, Shutterstock has customers in 150 countries, accessing a digital library that contains more than 57 million images and nearly 3 million video clips coming from more than 80,000 contributors.
I think that this is because images have become more in demand than before. Back in the day, images are just supplements to written content. But now, you can use mere images to share content especially in some image-based social platforms.
So despite earnings being up 30% YoY, the stock fell 31% because they revised the yearly revenue target down by $10 million? It’s a tough job being a publicly traded company.