Shutterstock, Inc. (NYSE:SSTK) Q1 2022 Earnings Conference Call April 26, 2022 8:30 AM ET

Company Participants

Chris Suh - Vice President, Investor Relations and Corporate Development

Stan Pavlovsky - Chief Executive Officer

Jarrod Yahes - Chief Financial Officer

Conference Call Participants

Youssef Squali - Truist Securities

Andrew Boone - JMP

Bernie McTernan - Needham

Operator

Good day and thank you for standing by. Welcome to the First Quarter 2022 Shutterstock Earnings Conference Call. [Operator Instructions] I’d now like to hand the conference over to your host today, Chris Suh, Vice President, Investor Relations and Corporate Development. Please go ahead.

Chris Suh

Thank you, Liz. Good morning, everyone and thank you for joining us for Sutterstock’s first quarter 2022 earnings call. Joining us today is Stan Pavlovsky, Shutterstock’s Chief Executive Officer; and Jarrod Yahes, Shutterstock’s Chief Financial Officer.

Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including without limitation, the long-term effects of investments in our business, the future success and financial impact of new and existing product offerings, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, our future growth, margins and profitability, our long-term strategy and our performance targets, including 2022 guidance.

Actual results or trends could differ materially from our forecast. For more information, please refer to today’s press release on the reports we file with the SEC from time to time, including the risk factors discussed in our most recently filed Form 10-K for discussions of important risk factors that could cause actual results to differ materially from any forward-looking statements we may make on this call.

We will be discussing certain non-GAAP financial measures today, including adjusted EBITDA and adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth, including by distribution channel on a constant currency basis, billings and free cash flow. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the financial tables included with today’s press release and in our 10-Q.

With that, I will turn the call over to Stan.

Stan Pavlovsky

Thanks, Chris. Good morning, everyone and thank you for joining us today. Today, we will be discussing Shutterstock’s first quarter results. We will also talk in more detail about Shutterstock’s product roadmap, which we believe uniquely positions Shutterstock for continued growth. And finally, we wanted to address the ongoing war in Ukraine and its impact on Shutterstock, both from a contributor and customer perspective. Shutterstock grew 9% year-over-year this past quarter or 11% on a constant currency basis, driven by a further acceleration of growth in our enterprise channel to 11% and e-commerce growth of 7% per our expectations. The 11% year-over-year growth in enterprise reflects the dramatically improved, execution the strength of our FLEX family of products, and continued momentum in our studios and editorial businesses.