Shutterstock, Inc. reported record revenues of $250.6 million for the third quarter ended September 30, 2024, marking a 7% increase compared to the third quarter of 2023. The company also achieved record Adjusted EBITDA of $70.0 million, an 8% increase year-over-year, exceeding its own expectations.
The Content product offering generated $203.7 million in revenue, growing 14% year-over-year, primarily driven by the Envato acquisition completed on July 22, 2024, for $250 million. This segment represented 81% of total revenue, while the Data, Distribution, and Services (DDS) segment saw a 14% decrease to $46.9 million.
Net income for the quarter was $17.6 million, or $0.50 per diluted common share, a decrease from $28.4 million, or $0.79 per diluted common share, in Q3 2023, which had benefited from a one-time $9.9 million bargain purchase gain from the Giphy acquisition. Adjusted net income increased to $46.4 million, or $1.31 per diluted share, up from $45.5 million, or $1.26 per diluted share, in the prior year.
The company raised its full-year 2024 guidance, now expecting revenue between $935 million and $940 million, representing 7% to 7.5% year-over-year growth. Adjusted EBITDA is projected to be between $247 million and $250 million, with adjusted net income per diluted share expected to be $4.22 to $4.31.
Shutterstock also announced a leadership change, with Jarrod Yahes departing as Chief Financial Officer and Rik Powell, who joined in June as SVP, Finance and Investor Relations, being appointed as the new CFO. The Board of Directors declared a quarterly cash dividend of $0.30 per common share, payable on December 13, 2024.
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