Page 1

shutterstock Shutterstock Reports Third Quarter 2021 Financial Results October 26 , 2021 Raises 2021 Full Year Guidance NEW YORK , Oct. 26 , 2021 / PRNewswire / -- Shutterstock , Inc. ( NYSE : SSTK ) ( the " Company " ) , a leading global creative platform offering full - service solutions , high - quality content , and applications for brands , businesses and media companies , today announced financial results for the third quarter ended September 30 , 2021 . shutterstock Commenting on the Company's performance , Stan Pavlovsky , the Company's Chief Executive Officer , said , " In the third quarter , Shutterstock experienced strong revenue growth bolstered by continued momentum in our Enterprise channel . I am also pleased to announce today the launch of FLEX 25 , our first multi - asset eCommerce subscription product . " With the acquisition of PicMonkey , we have made significant progress towards our strategy of incorporating easy - to - use design and editing tools into our creative platform . Our platform , Creative Flow , brings together a suite of applications powered by creative insights designed to enhance creativity , encourage collaboration and allows customers - from small businesses to global enterprises - to create with confidence . " Third Quarter 2021 highlights compared to Third Quarter 2020 : Financial Highlights • Revenue increased 18 % to $ 194.4 million . On a constant currency basis , revenue increased 17 % . • Income from operations decreased 24 % to $ 22.2 million . • Net income decreased 29 % to $ 16.0 million . • Adjusted EBITDA decreased 6 % to $ 44.4 million . • Diluted EPS decreased by 31 % to $ 0.43 per share . Adjusted net income per diluted share decreased by 13 % to $ 0.70 per share . Key Operating Metrics • Subscribers increased 32 % to 336,000 . • Subscriber revenue increased 21 % to $ 81.5 million . • Average revenue per customer , increased 10 % to $ 361 . • Paid downloads increased 2 % to 44.3 million . • Revenue per download increased 11 % to $ 4.20 . • Image collection of approximately 390 million images . • Footage collection of approximately 23 million clips . SHUTTERSTOCK INVESTOR RELATIONS MICRO SITE Accessible at content.shutterstock.com/investor-report/index.html . THIRD QUARTER RESULTS Revenue Third quarter revenue of $ 194.4 million increased $ 29.2 million or 18 % as compared to the third quarter of 2020. Revenue generated through our E - commerce sales channel increased 18 % as compared to the third quarter of 2020 , to $ 121.7 million , and represented 63 % of total revenue in the third quarter of 2021. E - commerce revenue growth was driven by higher subscriber revenue and also benefited from our acquisitions of TurboSquid and PicMonkey , which were completed on February 1 , 2021 and September 3 , 2021 , respectively . Revenue from our Enterprise sales channel increased 17 % as compared to the third quarter of 2020 , to $ 72.7 million , and represented 37 % of third 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 17 % in the third quarter of 2021 as compared to the third quarter of 2020. On a constant currency basis , E - commerce revenue increased by 18 % in the third quarter of 2021 , as compared to the third quarter of 2020. On a constant currency basis , Enterprise revenue increased by 15 % in the third quarter of 2021 , as compared to the third quarter of 2020 . Net income and net income per diluted share Net income of $ 16.0 million decreased $ 6.6 million as compared to $ 22.6 million for the third quarter in 2020. Net income per diluted share was $ 0.43 , as compared to $ 0.62 for the same period in 2020. This decrease is due primarily to growth in our operating expenses , driven by increased investment in