Shutterstock Reports $935.3M Revenue in 2024, Net Income Drops 67%

Shutterstock, Inc. reported a total revenue of $935.3 million for the fiscal year ended December 31, 2024, marking a 7% increase from $874.6 million in 2023. The company's profitability, however, saw a significant decline, with net income dropping to $35.9 million from $110.3 million in the previous year, a decrease of 67%. This decline was attributed to increased operating expenses, particularly in cost of revenue and general and administrative expenses, which rose by 12% and 12%, respectively. The cost of revenue increased to $396.3 million, driven by higher royalty payments and costs associated with the acquisition of Envato.

In terms of strategic developments, Shutterstock completed several acquisitions in 2024, including Envato for approximately $250 million and Backgrid for about $20 million. These acquisitions are expected to enhance Shutterstock's offerings, particularly in digital creative assets and editorial content. The company also entered into a merger agreement with Getty Images Holdings, Inc. on January 6, 2025, which is subject to regulatory approvals and stockholder consent. The merger is structured as a merger-of-equals, with Shutterstock stockholders receiving cash and shares of Getty Images common stock.

Operationally, Shutterstock reported over 4 million active customers in 2024, with a content library that has grown to 800 million images and 59 million footage clips. The company delivered 134.3 million paid downloads during the year. The increase in customer engagement is reflected in the growth of its Data, Distribution, and Services revenues, which surged by 28% to $175.3 million, driven by demand for metadata and Giphy services. The company also noted a shift in customer preferences towards subscription-based products, which provide a fixed number of content licenses.

Shutterstock's employee headcount increased to 1,715 as of December 31, 2024, up from 1,274 the previous year, reflecting the company's growth and expansion efforts. The company continues to invest in technology and product development, with product development expenses amounting to $88.4 million in 2024. Looking ahead, Shutterstock anticipates that its ongoing investments in technology and acquisitions will support future growth, although it acknowledges the competitive landscape and potential challenges in customer retention and acquisition.

The outlook for Shutterstock remains cautiously optimistic, with management emphasizing the importance of integrating recent acquisitions and realizing synergies from the merger with Getty Images. However, the company also faces risks related to market competition, regulatory changes, and the need to adapt to evolving customer demands in the digital content space.