Shutterstock (SSTK) Financials

Shutterstock Inc (SSTK) is a leading global provider of high-quality licensed photographs, vectors, illustrations, videos, and music to businesses, marketing agencies, and media organizations. The company's extensive library includes over 360 million images and over 20 million video clips, making it one of the largest and most diverse collections in the world. With a strong focus on innovation and technology, Shutterstock continues to expand its offerings and improve user experience.

Let's take a closer look at Shutterstock Inc's financials. Starting with the income statement, it provides a snapshot of the company's revenues, expenses, and net income. In recent years, Shutterstock has been able to achieve consistent revenue growth, driven by the increasing demand for high-quality digital content in various industries. The company's total revenue for the most recent fiscal year was $624 million, reflecting a growth of 15% compared to the previous year.

One important measure of profitability is EBIT (earnings before interest and taxes), which indicates the company's operating performance. Shutterstock's EBIT for the latest fiscal year was $61 million, representing a margin of approximately 10%. This indicates that the company was able to generate a decent level of profit from its operations.

Another profitability metric that investors often look at is EBITDA (earnings before interest, taxes, depreciation, and amortization). Shutterstock's EBITDA for the same period was $100 million, indicating a healthy cash flow from its core operations. This metric is particularly useful in evaluating the company's ability to generate cash and fund its growth initiatives.

Moving on to the balance sheet, we can analyze Shutterstock's financial position and its ability to meet its obligations. The company's total assets stood at $1.1 billion, with stockholders' equity accounting for $559 million. This indicates that the company has a strong asset base and a healthy level of owner's investment.

In terms of liquidity, Shutterstock had cash equivalents of $142 million, which can be readily used to meet its short-term obligations or invest in growth opportunities. It's worth noting that the company also has net debt of $125 million, which consists of borrowings and long-term liabilities. However, this level of debt seems manageable given the company's cash flow generation capabilities.

Shutterstock's total liabilities, including both short-term and long-term obligations, amounted to $530 million. This includes accounts payable, accrued expenses, and other liabilities. The company has been successful in managing its overall debt levels and maintaining a strong balance sheet.

Examining the cash flow statement provides insights into how Shutterstock is managing its cash inflows and outflows. Operating cash flow for the latest fiscal year was $75 million, indicating that the company was able to generate a significant amount of cash from its day-to-day operations.

Furthermore, Shutterstock's investing cash flow was -$20 million, primarily due to investments made in technology infrastructure, acquisitions, and other long-term investments. This highlights the company's commitment to expanding its capabilities and entering new markets.

In terms of financing cash flow, Shutterstock had a net inflow of $32 million, mainly attributed to proceeds from the issuance of debt and other financing activities. This demonstrates the company's ability to access capital markets and raise funds when needed.

Lastly, free cash flow, which indicates the amount of cash available for expansion, acquisitions, or shareholder returns, was $55 million for the latest fiscal year. This highlights Shutterstock's ability to generate healthy cash flows even after accounting for capital expenditures and other necessary investments.

In summary, Shutterstock Inc (SSTK) has demonstrated solid financial performance and a healthy balance sheet. With its vast library of digital content and focus on innovation, the company is well-positioned to capitalize on the growing demand for high-quality visuals in an increasingly digital world.