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shutterstock Shutterstock Reports Second Quarter 2021 Financial Results July 27 , 2021 Raises 2021 Full Year Guidance NEW YORK , July 27 , 2021 / PRNewswire / -- Shutterstock , Inc. ( NYSE : SSTK ) ( the " Company " ) , a leading global creative platform offering full - service solutions , high - quality content , and tools for brands , businesses and media companies , today announced financial results for the second quarter ended June 30 , 2021 . shutterstock Commenting on the Company's performance , Stan Pavlovsky , the Company's Chief Executive Officer , said , " Revenue growth accelerated in the second quarter supported by robust demand across revenue channels , content types and product offerings . Our subscription offerings are resonating strongly in the market and we are encouraged by the execution in our enterprise revenue channel . " I am also excited to launch Shutterstock . Al and welcome Pattern89 , Datasine and Shotzr to Shutterstock . The acquisition of these leading artificial intelligence platforms will power our predictive performance capabilities to help creatives and customers accomplish their goals by making more data - informed content decisions . " Second Quarter 2021 highlights compared to Second Quarter 2020 : Financial Highlights • Revenue increased 19 % to $ 189.9 million . On a constant currency basis , revenue increased 16 % . • Income from operations increased 47 % to $ 33.2 million . • Net income increased 55 % to $ 29.5 million . • Adjusted EBITDA increased 43 % to $ 53.1 million . • Diluted EPS increased by 49 % to $ 0.79 per share . • Adjusted net income per diluted share increased Key Operating Metrics 65 % to $ 1.02 per share . • Subscribers increased 44 % to 321,000 . • Subscriber revenue increased 25 % to $ 78.1 million . • Average revenue per customer , increased 9 % to $ 356 . • Paid downloads increased 2 % to 44.9 million . • Revenue per download increased 16 % to $ 4.17 . ● Image collection expanded 12 % to approximately 380 million images . • Footage collection expanded 16 % to approximately 22 million clips . Shutterstock Acquires Three Artificial Intelligence Platforms In July 2021 , Shutterstock acquired Pattern89 Inc. , Datasine Limited and assets from Shotzr , Inc. The aggregate cash consideration was approximately $ 35 million , and is subject to customary working capital and other adjustments , paid from existing cash on hand . SHUTTERSTOCK INVESTOR RELATIONS MICRO SITE Accessible at content.shutterstock.com/investor-report/index.html . SECOND QUARTER RESULTS Revenue Second quarter revenue of $ 189.9 million increased $ 30.7 million or 19 % as compared to the second quarter of 2020. Revenue generated through our E - commerce sales channel increased 23 % as compared to the second quarter of 2020 , to $ 120.7 million , and represented 64 % of total revenue in the second quarter of 2021. E - commerce revenue growth was driven by higher subscriber revenue and also benefited from our acquisition of TurboSquid on February 1 , 2021. Revenue from our Enterprise sales channel increased 13 % as compared to the second quarter of 2020 , to $ 69.2 million , and represented 36 % of second quarter revenue in 2021. Enterprise revenue growth was driven by billings momentum over the last several quarters , supported by sales execution , and the introduction of new subscription products such as SMB Flex . On a constant currency basis , revenue increased 16 % in the second quarter of 2021 as compared to the second quarter of 2020. On a constant currency basis , E - commerce revenue increased by 20 % in the second quarter of 2021 , as compared to the second quarter of 2020. On a constant currency basis , Enterprise revenue increased by 9 % in the second quarter of 2021 , as compared to the second quarter of 2020 . Net income and net income per diluted share Net income of $ 29.5 million increased $ 10.5 million as compared to $ 19.0 million for the second quarter in 2020. Net income per diluted share was $ 0.79 , as compared to $ 0.53 for the same period in 2020. This increase is due primarily to increased revenue in the second quarter of 2021 as compared to the second quarter of 2020 , which has outpaced the growth of expenses . Growth in our operating expenses was driven by higher royalty expense related to our increased revenues , increased sales commissions associated with higher enterprise billings and non - cash compensation expense associated with certain performance - based awards . Adjusted net income per diluted share was $ 1.02 as compared to $ 0.62 for the second quarter of 2020 , an increase of $ 0.40 per diluted share . Adjusted EBITDA Adjusted EBITDA of $ 53.1 million for the second quarter of 2021 increased by $ 16.0 million , or 43 % , as compared to the second quarter of 2020 , due primarily to increased revenue , and to our margin expansion initiatives . The adjusted EBITDA margin increased to 27.9 % from 23.3 % in the second quarter of 2020 . SECOND QUARTER LIQUIDITY Our cash and cash equivalents increased by $ 47.1 million to $ 411.0 million at June 30 , 2021 , as compared with $ 363.9 million as of March 31 , 2021. This increase was driven by $ 71.4 million of net cash provided by our operating activities , partially offset by $ 9.8 million used in investing activities and $ 14.4 million used in financing activities . Net cash provided by our operating activities was favorably affected by our increased operating income , in addition to changes in the timing of payments pertaining to operating expenses . Cash used in investing activities primarily consists $ 6.8 million related to capital expenditures . Cash used in financing activities consists primarily of $ 7.7 million related to the payment of the quarterly cash dividend and $ 7.2 million paid in settlement of tax withholding obligations related to employee stock - based compensation awards . Free cash flow was $ 61.7 million for the second quarter of 2021 , an increase of $ 39.3 million from the second quarter of 2020. This change was primarily driven by higher cash flows from