SSTK - Earnings call transcript Q4 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Shutterstock, Inc. fourth quarter 2017 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to conference like host to now Mr. would turn over the your I of Investor Finance Mestrandrea, Corporate Michael Director and Relations. Sir you may begin.

Michael Mestrandrea

Thank thank you fourth morning, everyone, us Good year Shutterstock's call. full quarter you, for and earnings for operator. joining XXXX and

Oringer, today Operating Executive Chief Officer Founder, me Financial and Officer. and Joining our Berns, Chairman; Steven Chief Jon is our Officer and

offerings, effects other impact During of new future of to and new to recognition including guidance. predictions, rules and uncertainty, subject to implementation this call, risk, and existing strategy, our relating footprint in future management investment expense financial statements and may product term estimates our make our and results XXXX information. growth of our and potential, business, forward-looking long our long large success include term statements solutions, that are future profitability, These expectations, business reduce to efforts growth scale the

the which XX, on we this measures. cause income, free a net forward-looking for not statements On time-to-time may of including the report and non-GAAP adjusted Please year the actual entitled ended we growth actual U.S. materially section predicted from flow call. press December release from documents reported results risk discussed to basis reports indication could Exchange and Securities in important an the call, results the Risk any in constant as XXXX, and on and should on company's EBITDA, from we results Form and future results discussions the to XX-K Factors considered today's revenue materially financial file factors that differ of cash may with annual refer Our Commission, those performance. to be differ refer make currency adjusted are this

Form that uses with used of comparable our operating most and to allows You financial measures can and insight comparability of with consider We reporting. our same believe in on Relations reconciliation the it operating in financial these basis in management. financial today's with GAAP the business by find along GAAP earnings which provides company's our directly additional Investor and measures XX-K, are site. assessing measures performance, description of the items posted release them our a the conjunction enhances overall the important in investors This about results on the an

measures superior turn However, prepared to to or be in with these a with And for non-GAAP to over GAAP. should as financial call substitute information not I’d accordance Jon. that, considered like the

Jonathan Oringer

end for us for call. earnings everyone Thanks XXXX and Mike. joining today year Thanks, fourth Shutterstock's quarter

solid a of in make continue platform. business evolution to the our accretive from progress We marketplace to

We’re transformation seeing from to and platform, for our the many introduction the focus continued units of technology customers. our our products, our operational upgraded business functionality and including initiatives of new operating structure features momentum

Overall continue strengthen performance we fourth to revenue In day. addition every our quarter. am build in the pleased team improvement I with the and our in

Although margins this investments made for platform year and business. by infrastructure the full our in were and have impacted quarter we the

EBITDA XXXX. In grew to revenue to of basis compared a the XXXX the of compared XX.X%, and XXXX million in important fourth positive long-term long critical in positive we forward of this financial while an investment on our Also will these confident We’re results. some a term look being see constant fourth $XX.X quarter approximately on adjusted investments to quarter have $XX.X currency was XXXX. million impact impact

expanded XX.X grew our XX%. million, by per of the our X.X% XXXX, we addition library by base and a X% customers. by currency X% to increased image Paid basis grew $X.X just over year-over-year fourth on In revenue downloads by quarter customer on basis download during a to million constant we

images library X million than clips. XX% and million our by So more video over XXX increased to

into marketplace creative that need made investment and calls tools the discussed build we we provides collaboratively and prior to enterprises, the and last over they As transforms we our few platform projects. years design a content on believe with that types

our parts yourself, We to business to everywhere. integrate. And winning production. experience of running are X short-term these live experiments made value, these more life our to API of We the to you on in pushed for to and clips Across continue our available had long-term. retention, continue to public than end code that time achieved track invest available revenue active to and test workflow. get feature have and While partners available growth than more investments plan We our investments the million customers engagements, of as we and positive Google By launched now API and images our tangible be our new XXX,XXX already in user platform focus from results We can continue several started profitability, order at content can images times objectives applications simultaneously. to XXXX, impacted continue and business approved and many we into other over of benefit many XXXX, than license. our we’ve AB download for use X.X products, begun expect the engagement. increase successfully value, test to their customers’ to our documentation HubSpot directly in developer.shutterstock.com. base, to see several API the customer and see the our evolve for examples important in and paying in platform. success our making In million developer the XXX at impact XXXX, measure contributors we and many to form on Slides These migrated our XXXX. are mix, more video to million contributed [ph] test sure product

new companies content attract Press. to and amazing continue League We the World both the Surf as our collection, and generated through such user agreements with Associated

artificial that are to our continue learning becoming and machine part our an of algorithms We innovate intelligence platform. important

of our million for XXX custom, is with for images, launched fully to customers content creative one-way, customer find discovery. advance on way. images Our new prototype which Shutterstock search search our nearly helping is a well new combined composition acquired tool, in unique the go enables our our as our and as aware the of our capabilities editor enables they produce just music Flashstock mobile our we platform And website, content launching custom rebranded which app, premium offering, music beat customers. need. and enterprise We These

to the in and experience ability building content This of image significant talent As able our testing laser the focus platform, while to right to marketplace progressed strategy platform, our packaging pricing on in we has we from product mix tools that acquisition our business, significantly, to ramped network of means innovative to up in robust customers’ sit This implementing user enhanced of image our seamless enhancing we’re AB customer execution strategy. retaining efforts. quarter tracking retention. We’ve customer with customers. optimizing continue offering effects the workflow, track e-commerce a our network. heart product, providing improvements our exhibit yielded focus for both creative at that drive successful the beginning XXXX, personalization contributor have stock the enable business a and we growth, In transitioned to new remain around compelling facilitate our and our global and throughout on and our on our and funnel. seeing and second growing continues be our a our were and improvements customers solid customer and customer, XXXX, Throughout process

make and strides XXXX. progress portfolio and video pack, to which we our templates, Importantly, the sequences. music for search pricing business, We our as B collection includes on of early quality December, RocketStock, per offering. first film after product device. great -- cost to these access compared in title offering, application image structure launched The and original any begun quality effect premiumbeat.com of which sorry our in the elements, I’m exclusive, able experience with effect continue the making XXXX acquisition, premium high produces industry video tracks collection been the In video makers. editors, improvements producers, allows e-commerce access mobile building drive new to and while editors and our of This from high full new full lower we’ve simplifying allows made for to motion application Within to also includes products. leading we’ve down marketing video out state-of-the-art our

We the introduced also functionality site. to overall design premiumbeat.com the and new discovery

to our presence continue build usage music and and geographic we business, video, enterprise content. expand of For editorial

enterprise UK’s positive Show continue to in biggest business our from editorial, total to We’re some grew represented in strong and revenue, In content on-set our fourth year-over-year Fashion our in getting Revenue approximately feedback multi-product across shows. purchases customers XXXX. compared the cover quarter of types. making XX% quarter, Victoria of photography very by for XX% the generated of and increasingly fourth we the fantastic events Shanghai TV and are who including XX% Secret

events X,XXX about During the sports X,XXX year entertainment we and events. covered

noticed platform have half future. editorial full have a a launch only may to site, visible we and editorial our but editorial on editorial are on e-commerce near You our while self-service today expect we our the now we our offering a -- have of today in e-commerce full don’t the website while on e-commerce offering images product enterprise the get product

very Shutterstock in [Technical our new adoption to Difficulty] its the stages is we’ll customer customers. and invest in is in [Technical entertainment ways Difficulty] listen sports, well [indiscernible] and to and from While product going friendly news in we’re content early continue feedback area.

has I last quarter business. significantly that for and our and Custom well was a As quarter opportunity a long noted contributor positioned for term us solid that add Custom summary, to is we’re we large this to communities In today. believe year our

launching by We new to customer platform, and and tech our functionality base. on growing progress for features continue our focusing make products

Shutterstock joining in and the strength makes the beyond. for and excited build XXXX Additionally we’ll me talent what

detail, in will Lastly, two we strategic as greater XXXX. transaction discuss Steven in had to-date

in Zcool, First, enhance distributor the Greater we strategic region. our reach and further investment in our exclusive China a in to made expand China

a entered price an sell into asset to Webdam, we purchase of management million. a $XX.X acquired for business in Second, we digital XXXX that early agreement

right Webdam for on thought. for we price other right we our the the and to grow customer our for of provide like solid overview shareholders. as is Webdam the return was acquisitions is to and over Steven, right anticipated. found distinct had Webdam try to as was Bynder I’ll wouldn’t that Webdam originally to We realized and Bynder. with, $XX.X detailed the years into Since The a million. win have and to than base of sell more we we integrated price sale that also initially for know call with will financial turn Webdam place who operations investment is home us the performance. And more closely we integration had business productive integrate that as Ultimately Our we the been Shutterstock over never our

Steven Berns

Thanks, you thank Jon today. joining us everyone and for

Before call. I that brief want discuss we posted for our deck our let to I website a supporting information that you contains know today’s performance on materials

to fourth constant currency as Jon against of fourth of prior As vision execute strategic a XX.X% to was into XX.X%. translating continued EBITDA basis quarter revenue a our throughout quarter adjusted Shutterstock On reported XX.X%. the growth has an the revenue on year margin and basis compared highlighted growth

XX% e-commerce subscriptions. optimization as higher well on fourth mix Revenues to As prior image results from basis per than plans, subscription to larger we’re improved year as of traditional we revenue our motion positive sold in increased offerings XX% toward funnel. shift basis continuing conversion on year continued platform and reported on were improved as fourth e-commerce a X% our compared enterprise prior product in and and for businesses, the which saw our our quarter image price the generated as continued quarter smaller compared see our constant currency driven focus by by growth rates the improved to a our per a download

approximately XX% quarter Latin from expansion in Our compared Asia fourth quarter versus the that business, customers a the derived and the of strategy with International investments side fourth in to prior XXXX. the XX% localization be high percentage potential fourth to XXXX Europe we’re and our of and remains our of revenues Shifting for to a as both quarter prior our businesses. primarily States the America. third from of of and of United the growth Pacific and quarter but fourth marketing by outside was the consistent the making to of Sales high XXXX expenses increased business approximately the spending our of half continues from with in customers enterprise quarter and growth long-term approximately year revenue of cost XX% the balance core smaller year part grew XXXX. Driven the million. of operating infrastructure $XX XX%

me comparison primarily, and in Before excluding enterprise let versus a increased sales I that Revenue and staff stock-based speak to full year XX.X%, prior reflecting worth the quarterly by compensation few mentioning. expenses and driven detail, improved by are points year marketing note cost. e-commerce, expenses related more XX%

margin, For year adjusted EBITDA the XX.X% was XX.X%, compared XXXX, a to full million, in representing XXXX. $XX

now to our in expense is the and revenue, from now of which XXXX. major quarterly of of the saw In that third reduce discuss the is noted as we call, our some yield fourth actions results we’ve Going to the will back of of exercise last this I royalty taken believe XXXX, take expenses, unchanged approximately expense of quarter XXXX. XX% quarter contributor categories. we continue an to growth during on-going the expenses, I’ll

stock-based and discuss For my compensation. exclude each category, will the amounts reference I comments

marketing on the cost equally Overall, consulting healthy and XX% of cost platform. administrative sum is year, customer operational scale and to XX% building performance worth of will that results. large quarter personnel marketing year spend to a return fourth consulting Product expensive of the fourth this our last in noting we increased of and personnel our quarter Our brand historical on and third expense implementations more versus due remains X% expenses General by the quarter by primarily lower the organization’s organisation. efficiency. our primarily and higher expenses XXXX, these fourth enterprise investment fourth the quarter driven ago. versus with increased cost of expenses believe, last the enhance are This versus and cost It’s the of year, our XX% quarter to which related between is than the solutions, XXXX. spend several a of and higher sales sales increased split business relating of consistent development our

of the charge new the company to recorded rate U.S. taxes, enacted million, result the as non-cash deferred Cuts Tax XX%. law, of to new As remeasurement a a for the referred our $X.X related the to Jobs Act, and account statutory of of

charge the earnings. the In $XXX,XXX, repatriation of resulting be from deemed recorded $XXX,XXX fourth over our XXXX, tax eight approximately will of a of weighted points. rate as years, the that effective Together, under payment to with addition, payment, one-time interest will foreign the paid in has law, XXXX no later tax year related the charge percentage by quarter permitted eight the The be and company period. such part to the of XX increased cumulative our

a which paid into is or net million it taxes worth revenue diluted year-ago. quarter, increased million, compares to our per $X and growth share XXXX, period $XX.X income fourth $XX.X fourth $X.X million, for $XX.X $X.XX $X.XX important EBITDA expenses, XXXX. However, Overall, $XX.X same noting was in of the the per that our in quarter adjusted million along share. for XXXX. with the the translated income EBITDA operating or of of quarter adjusted in million versus cash net diluted Adjusted in paid million were GAAP was

end revenue the at purchases to as Free balance was for Moving was cash At deferred $XX.X another we and $XX.X approximately flow includes end period X, business. the of and quarter which XXXX, the million. short-term enterprise from content and a flows result XX% fourth offset expect of million The Total the to investments. earnings the to capital we other sheet, of of and year-over-year with liquid Effective outflows will retained XXXX, million cash cash cash related operations. our business, $XXX.X generated expenditures, $XXX XX% as approximately of adoption to cash which million grew of million. to had our balance, revenue to of the e-commerce our rules which by our related by X% tax. business XXXX, be recognition January to $XX in we reduction net of approximately deferred new SEC, of XX% revenue required strong

will through retained So, revenue go P&L, in the not words flow will it from deferred that straight earnings. other into

excluding remain to And the on XXXX Webdam we in was XXXX. in being agreement earlier, noted an investment agreements, Zcool now. an would XXXX, our year growth represents earlier of our sale the revenue by made we XX% mentioned second we international over note our a million morning, recently and We of gain recording we distributor our million, full first China Jon Webdam’s from momentum into sell is which which as announced as the reach our to in the encouraged Please China Webdam, further have for in expand entered this been quarter $XXX $XX.X that first into exclusive business finalized across Jon region. Greater and revenues entered XXXX to Turning two business. anticipate

guidance today’s for excludes detailed fully XXXX earnings financial is Our press release. Webdam and in

We and expect XX.X% representing growth XXXX $XXX and XX.X% between of million, versus million $XXX revenue of XXXX. between

EBITDA We growth a between year. recognize I of We you appreciate of expect answer QX operator and This XX% adjusted this and sale questions you be we Webdam will questions. in $XXX adjusted have, the any today may now on excludes of the the your and can XX%. between gain please prompt to time Jon of guidance million participants and EBITDA $XXX for million, happy will representing

Operator

you, Jeffries. Brian Fitzgerald Thank comes Our with question [Operator Instructions] first from sir.

now is open. line Your

Brian Fitzgerald

can get where And how expect Thanks. enterprise term? then do XXXX? you contribution as we XXXX you With and between e-commerce any mix And the respect can to from provide where you growing the Custom guidance about ramping maybe see outlook? guys. to that from enterprise that longer -- get enterprise, on XX% the to think do the XX% anticipated Thanks, to color Shutterstock through on now, then to

Steven Berns

Custom don’t individual What and each overall the and we portfolio our will itself, enterprise it of e-commerce enterprise. I that clients. of offer their portfolio just to a contribution, products as to the an that well we the important services be offered that of needs as breakout that programs. products that we within content the have say relates part but they is not the marketing important believe to is can important as as product by So in Custom for countries as And single it’s Shutterstock serve customers customers a multinational to

enterprise from to talking mean, enterprise in repeat it As XX%. just can question, if you you’re relates I and about growth the to the XX% e-commerce,

Brian Fitzgerald

in maybe you of enterprise do What now, Yes, grown we a to from XX% trajectory should XXXX portion that the term? think business continue that we mix it’s in future. of to like the get XX% as can see your how longer

Steven Berns

Right, so about not are we successful in where shape fully the in or penetrated offered. kind of think been enterprise way which we’ve products in space, we when of any form, most the have our countries

talking in languages not fair many have strong, we’re about So talk our also XX our of markets. share we in of SMB enterprise we are those remember don’t about where we when product. And wallet we’re

so also sized of environments, multinational also it’s but And it but it’s could be businesses. still smaller company, that working those in could businesses, good just working a might not people -- have companies but large potentially multinational team that a be

we and size. So countries again despite see all once of regions the the those regions opportunities in the as

go not relates that products -- and customer will serve the e-commerce And those what we’ve needs. faster adapted as growing it obviously up do we is is it. than through a And ratios As faster, certain level, into meet we’re we’re those which go enterprise needs to the to trying to force launched trying now.

customer slowing product. on this don’t try within growth going in back work but the enterprise, to most companies not a old like down. say we’ve So would great seen days have we them. - the you target just far X for percent thus called what’s don’t the we that it’s anything to And focus see into make We sense the like where

Brian Fitzgerald

it. Got Steve. Thanks,

Operator

Thank you.

question comes with next from Our Squali Youssef SunTrust.

Your line is now open.

Youssef Squali

efficiency couple model you speak several the both that’s about line called in Thank over the development quarter, marketing related e-commerce, out margin. much point for quarters and call is more efficiency under enterprise consulting then these questions. this works taking of market impression great, consulting maybe morning. of the at I I good last thought, A impressive, is to some have if now growth remarks. out in think which in that a in topic, most product versus follow-up. couple within And you’ve times certainly nature, coming your one we you’ve Thank were little first, can you behind but the anything it’s work us, prepared consulting the Yes, sales On the and marketing I a you. saw we mentioned we’re the may, maybe lower certainly but a reflection a time a

Steven Berns

Sure.

localization, to cost talked relates areas, much as to we XXX we’re including as is relates we’ll move the things I about a related that, we’ve efficiency, become for terms first that. of certainly in in basis going be about number at costs that, is our XXXX, our efficient expect it not reducing of significant one as to we’ve which to we’ve customers, about So, marketing to infrastructure SEM, margin talked we’ve the overall in having and throughout and the points content customers, our AWS on made expect pressure we few regard of where as it forward, different be marketing on our efforts a we’re to marketing, think, know, strides With areas. it but pressure to relates acquiring to costs, go relates more how to we arena other

cloud environment there has been there we has of to as So, making just been hybrid in move of labour, where through its other some some that portion up way but which a a shows is the again. number once areas, of capitalized P&L, consulting projects

are of optimal marketing way about to long-term of I implies. and else producing we So, customers. attracting and continue obviously the we retaining on say and would most dynamic it’s a improving market and that our those There’s of the strength our efforts, we’re and sales indicative look for nothing best guidance we’re the focused the as business, very you XXXX as focused, margins know, we’re think, don’t

Youssef Squali

thing thing and from one-time out? product development call to the same And

Steven Berns

we’re Custom, I which and in new the enterprise of enables collaboration and we’ve launch the where inclusion and what for focused other e-commerce our one-time greater Clearly, teams. out our or from and on experience think you’ll offerings thing. any team space, we’ve of wouldn’t note as editorial been No, on Jon’s I the cadence call functionality features of comments, been traditional our product, functionality doing

think all forth. indicative that product I our of of those and engineering focus the put are product have efforts

Youssef Squali

it Thank -- get there. growth contribution you, that’s And about the then And was helpful. bit then, sales, if what this organic was little quarter, touch quickly, Flashstock Jon, the from just was the you in there to just can you why you. you made were can, some to a maybe puts can Webdam just takes do numbers asset that of us of you from transformation to through a decision? under platform, now, help acquisition the initially, that maybe impression marketplace and that your when kind we a first important think the Thank

Steven Berns

specific What say, I’d on impact at impact Custom once about we don’t the not say the material -- top-line or contribution of the of of consistent made for is products. material first, XXXX the time specifically talk any with contributor comments to was either the EBITDA. we that the contribution on I’d again, each custom So, or acquisition, any Shutterstock that,

Jonathan Oringer

way way into try so into that was revenue And business. to On Webdam workflow we to work the back enterprise time growing we purchased Webdam, our our our enterprise pretty were at in XXXX small.

pretty into Shutterstock business, customer from that As the we customer. enterprise Webdam is the grew realized distinct that we

and for we looked right points the overtime, them. the can find integration we workflow in So,

which business. do took every and built The to Webdam, to of the customers workflow continue continue now. and it We day Webdam, interest we to platform conversation We grow We our other had into types and now? happened. inbound as enhancements referred overtime up. it into a to build some continue came we product do standalone we our we Why and opportunity

have if fine also it So it. grow it to would been happen we continued would’ve didn’t

Steven Berns

Webdam acquired the workflow think to our at as on comments I that for time a there Jon core was Jon’s a said to products. just wasn’t second, effort add

wasn’t editor integrated it collaboration were as tightly as So moved time wasn’t we the being into those on offering. building capabilities were we our the building if as it and tool, were if

So while the just thought asset the acquisition, the services services workflow aspects digital an and buyer workflow customers organization looking user we end to of for the Shutterstock’s get very buyer or inside we different asset digital important of tends than that from Webdam management, saw tools. to we would be initially management that

it’s Bynder. So sense partner I well and to take again and really and new evolved Webdam for as for made call think the as both its and shareholders it pleased for once we’re Shutterstock us owner

a So we think it’s all good for transaction involved.

Youssef Squali

Great, that’s helpful. Thank you.

Operator

you. Thank

next Walmsley Our Deutsche question comes with from Bank. Lloyd

Your line open. is now

Lloyd Walmsley

Thanks.

than kind million it’s were I for to you And back expect you much into Custom guys versus the pretty Should can the just then CapEx been after customer XXXX or one, continue clearly you standalone? when down that business plugging investing just investment and the leveraging if these how we a wondering us can, of Shutterstock wind was you you we feel a is the down Shutterstock should second you the at a down to at to say its it’s levels? the which for still expect inside looks it’s level where Shutterstock guess as you slightly, operating just of Just And like some the relative trend driven level, acquired. I business on at base a Thanks. give perhaps performing the have R&D in to stay has XXXX. seeing elevated lot look in as growth it last up $XX do capitalized two over but much at there like a higher a it you’re and re-platforming, call better own sense it acquisition years. of that The guidance

Steven Berns

for thanks the -- Lloyd. to question, relates it as So

our it’s So the those the the capitalized as labor to form and investment, something as and performance as expenses think on the it’s cash of labor or therefore deductions. it and in expenses we sheet not have important the capitalized and at to revenues off and I relates the of us. as somehow EBITDA know measure form it’s meaningful of of we flows generated, think ourselves business, are in We the how whether is of other not then function of do look form to look the in it’s generated or paid we a it’s balance taxes if

We’re that free focused of generation cash flow revenues. off on

know, focused that and we importantly out. in and completely are dollars first the to dollars So most the is on

free the other we our on investment say forward. to with increases, to capitalization cash relates making proper go improving that as that also XXXX obviously margins EBITDA as than it we we that revenue As making sure beyond associated the we’re labor, that are of giving margins, of but well sure level both revenue guidance very we’re that includes generation. not both have as And flow focused

So we our core at certainly become context to resources are what B to look as and efficient we engineering about one something when have the at your internal what looking to based think and more think we be in makes in we I question. We think able the that expanding Custom about more being at use to year. important Custom the in business. last not in acquisitions process, as of Custom of somehow with zero materially, those add expect like that XXXX we business, in we and primarily are what reducing wanted editorial Rex to business focused in we as not this resources. the labor We our side again second we’re will our did core to on We side, capabilities point the as it we doing as our they and sense added is of about we once of if external efficient the our music think but and which as as this Jon the I’ll to in say flip is we’re core I as Premium add on enterprises. we we well offering independent when added think do the

And after Custom. by to it there very a the us Shutterstock to customers solve new attracts at hey the video, all stock work we growth now specifically that want I Shutterstock at Custom customers looking need to my of multinational of content well given Custom in so their who see as can need. the Custom, across And addition needs and right and saying is seeing early to one collaboratively acquisition as look we’re attracts are platform customers how

not path So separate I think be paths but needs. it but single wouldn’t presents two serving it’s that opportunities one in otherwise customer running parallel, there,

Jonathan Oringer

on I that just sales basically. and you to we the clean we week one the but products time team is the the out of acquisition that’s have We really side. some integration just first take the We name I enterprise do It’s going one past answered changed for that Yes, mean, us. question today integration selling all day started our Custom would on summer. this add

Flashstock what Custom. a we’ll bigger lot now, So able that the the we Shutterstock accelerate is that -- team is company is expect with product than before which sales growing to had and be growth as our

Lloyd Walmsley

Thanks.

Operator

you. Thank

next Nishida Citigroup. comes Masumi with Our question from

Your now open. line is

Masumi Nishida

volume can Hi, taking and XX%, it for image, That’s is us is for please been my of second pricing XX%, pricing question year-on-year, you two my up is question Thanks. And questions. what My more understand able help revenue please fiscal you thanks XXXX is you’ve year your provide on guidance to driving terms color how increase can question. in pricing? quarter-on-quarter? for just on my

Steven Berns

clearly as So needs. relates to of at product it mix volume to we price, a customer look serve and

that and offerings that’s on so to make fair continue those content its the customers return available for effect return price customers a also to that global basis that accordingly a creates them levels. share enabled it provides has -- grow contributors. focused look quality the attract sure but our to for retain network our our And making a and highest we we’re so we attracts and to customers, And to what to on Shutterstock that current both the

not make And to so it’s for not customers. a trying choice a -- we’re single

and choice that economic makes still sufficient obviously something them have provide to sense. trying We’re

As download increase subscriptions is that per good. might growth very to and our customers small we’ve to We’ve I in the relates download absolute And -- primarily subs, it the the to think has new larger subs price referring those relates the subs be been offerings offered. pricing higher which a of had of that product in price did. you than have smaller per changing

-- increased has increase that per contributor so a in price download. been has the to And the

have and obviously editorial fact that’s the And in to often business addition In enterprise well. mix, price product music as an that and so our video, those our are a higher prices that can higher impact. have

subscription the it’s mix, within product model. it’s e-commerce offerings So our but also

Masumi Nishida

you. it, That’s Got helpful. thank

Operator

Financial and Q&A call does today. turn Steven now to And like conclude that I for to for further Officer Mr. back Chief Berns, Operating Officer remarks. our Chief the would any session

Steven Berns

Thank We look much. soon. Thanks very you. to speaking participation today appreciate forward with everybody’s you and

Operator

program This your disconnect. and Ladies you for in a day. have all you participation may the thank conference. Everyone today’s concludes great gentlemen

Shutterstock (SSTK) 23 Feb 182017 Q4 Earnings call transcript