Stock photography and footage provider Shutterstock (NYSE:SSTK) will be reporting earnings tomorrow before market hours. Here’s what to look for.
Shutterstock beat analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $250.6 million, up 7.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of paid downloads estimates. It reported 112.3 million service requests, up 209% year on year.
Is Shutterstock a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Shutterstock’s revenue to grow 16.9% year on year to $254 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shutterstock has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Shutterstock’s peers in the online marketplace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ACV Auctions delivered year-on-year revenue growth of 34.8%, beating analysts’ expectations by 2.4%, and The RealReal reported revenues up 14.4%, in line with consensus estimates. ACV Auctions traded down 9.8% following the results while The RealReal was also down 19%.
Read our full analysis of ACV Auctions’s results here and The RealReal’s results here.
Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. Shutterstock is down 9.5% during the same time and is heading into earnings with an average analyst price target of $43.28 (compared to the current share price of $26.16).
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