The Press release:
finance.yahoo.com
Shutterstock Stock Clicks On IPO's Hot Q4 Earnings
By Donna Howell, Investor's Business Daily
Posted 02/22/2013 01:36 PM ET
Shutterstock ( SSTK), a stock photos provider and recent IPO, rocketed Friday after beating views with its Q4 earnings released late Thursday.
The stock was up more than 16% early afternoon in the stock market today, near 32.55, a new high by far for a stock that started trading in October at $17.
In Q4, the company said it delivered a record 21.4 million downloads at a new high of $2.30 in revenue for each one, as its image database grew, Shutterstock CEO Jon Oringer said on the company's earnings conference call with analysts.
"Every download is a business licensing an image on our platform," he said on the call. "Contributors earn money and receive feedback on what's selling and this motivates contributors to upload more content."
Its IPO brought it net proceeds of $81.8 million.
Shutterstock bills itself as a leading global provider of commercial digital imagery. It's sometimes termed a microstock photography site.
With the number of paid downloads up 32% from a year ago and revenue per download up more than 7%, the company made $49.2 million in revenue in Q4. That was up 42% from a year earlier and ahead of analyst views for $44.1 million. Earnings per share minus items hit 20 cents, according to Thomson Reuters' analysis, where analysts it polled had been looking for only 15 cents.
Shutterstock said in its earnings release that its non-GAAP income excluded a one-time tax benefit related to the company's reorganization from an LLC to a C-corporation in October. It also excluded noncash equity based compensation expense and related tax benefits.
Including items, EPS quadrupled to 88 cents from 21 cents in Q4 2011, the company said.
Shutterstock guided Q1 revenue at $48.5-$50.5 million and the full year at $213-$219 million, both above views.
The company's competitors include private Corbis Corp., which was founded by Microsoft's ( MSFT) Bill Gates, the Associated Press and Getty Images, among others. To a degree, public photo sites such as Yahoo's ( YHOO) Flickr now also compete — that one in part via a licensing deal with Getty for a royalty-free, rights-managed image collection.
"Shutterstock delivered its second consecutive solid quarter as a public company," William Blair analyst Ralph Schackart wrote in a research note Friday. "While management increased its 2013 outlook on the call, we still believe 2013 revenue estimates could be increased another 5%-7%. In our view, further appreciation of shares will likely need to be driven by positive estimate revisions rather than multiple expansion."
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