and Stan, Thank you, everyone. good morning,
started, and comply get to like meet safe I'd regarding our with home that our at echo comments is orders, and customers of stay the stay employee’s and Before to we efforts continue needs Shutterstock contributors. very Stan's resilient. to I mobilization
debt cash. positive million healthy model of to a with close strong cash business and with sheet have flows and We balance no $XXX
been my see excitement and long-term On product view to I quarter. the financial I impressed That the Shutterstock for And has offering. last our call, strength I continues how validated opportunity was with the commented on leverage over tremendous team last success. as
both first of results to X% quarter for the prior the the on currency the financial reported and declined constant now And Revenue basis. quarter. year compared in
to Our increased quarter the XXXX. million as to of X% ecommerce channel $XX.X compared first
X% channel $XX.X Our revenue decreased enterprise million. to
communicated last in the XXXX. of negative had we first results enterprise half expected As year-over-year quarter, we
significantly our continuing realignment, that activity impacts impacted April. Italy however, slowdown of midst seen have and in largest and with seeing Stan the the France of a the in to on in COVID recovered quickly. due Asian being as key being and are we strongest mentioned results force country-by in sales -country the major customer the we're seem basis, sales into have by March varied with to These un-favorability performance on and continuing in quite personnel, countries U.K., degrees As also previously a hiring further the
XXXX. were first points our first is XX points recorded of margins points. quarter of a of for due XXXX. On our $X.X primarily in sequential basis unfavorably terms impacted basis basis the our revenues, by XX.X%, increased fourth margins XX gross In of our This to XX.X% the severance gross the basis, XX from margins of down gross charges quarter decline cost in quarter XXXX, million of in margins which
quarter first of XXXX and sales on in adhere XXXX marketing compared in marketing XX% a due or return quarter and and in to first expense was investment. spend, revenues on favorability of from an of XX% quarter decreased first XX% fourth lower a metrics the of of and headcount marketing The as is our and of Sales sales performance to basis on quarter in marketing tight expenses of the increased $X.X level expenses costs. XXXX. to to and scrutiny as the of XXXX from XXXX, as fourth we marketing marketing Accordingly, the sequential quarter million million $X.X and result the
compared quarter of development first the Product X% X% XXXX. revenue costs in the first to were of in quarter,
development expenses is Our balance which product assets of on capitalized fixed reported within are our net sheet. labor,
The favorability not to development expenses XXXX in reoccur of to year-over-year on basis XXXX. the did due and technology, a in is These both migration sequential of cloud. debt and our expenses the our product our technology consolidation reduction in incurred the to
across well severance un-favorability to expenses do G&A non-income XXXX, data and throughout as the excluding $X.X reduce and trend year and increase debt the expenses, of of first and costs. made in severance increased investments G&A in million. course to is XX% in year-over-year Also G&A we fourth to to quarter and expense percentage bad and both of of lower Sequentially, of charges the earlier. the expect revenue driven percentage analytics $X.X in XX% continue $X.X the as XXXX first quarter million a as included as of compared stock-based of million cyber we G&A XXXX. tax by We charges the as was a million terms last accelerated noted attributable G&A compensation in partially $X.X from quarter in nominal severance technology revenues security, expense XXXX. and as expenses quarter increased higher science
the first the Adjusted compared EBITDA severance EBITDA $X.X XXX XX.X% million which to Adjusted quarter includes of basis XXXX. of in expense, impacted to XX.X% in XXXX, margins by margin of quarter points. same declined
incur As headcount costs in closely revenue million. expect to growth, additional more to to currently align we QX, be we reduce to $X estimate continue with expense severance we which
first the or $XX.X $X.XX first share $X.X in GAAP million million the diluted million income was or $X.XX net quarter of Adjusted for first income was diluted net the in compared of $X.XX quarter XXXX. to quarter $X.X share diluted per per or as per share. XXXX
end quarter million XX, cash we sheet of at balance million decline had of the and our $XXX at cash $XXX down in flows, with to as The December Turning earn-out well dividend. payment in expected from of The the acquisition. cash, of as the a March, bonuses $X was payment in payout $X annual QX the XXXX. with million associated million performance prior an
Our the $XX.X due compared in first reduction cash lower slightly flow XXXX. business to to in made to first due free excludes the free changes, quarter, of of in and is earn-out cash flow capital is payments cash volumes. million in the vendor calculation QX The $X.X year-over-year the payment free flow quarter. The timing million working
business, revenue million shown in XXXX due to enterprise XX, rebuild deferred is at enterprise continue sales the as Our has to we not bookings The deferred in revenue balance predominantly $XXX.X million from our change December which to yet team. accelerated XXXX. declined $XXX.X
will In dividend capital XX, price. such we've comfortably X.X% in on dividend The the past allocation, Should quarterly month continue, an even next quarterly to terms yield our rebound, $X.XX share our our of without flows on current XXXX. the revenues is supportable. annual cash lower experiencing been that equates are stock of per we a pay our dividend June
we the line plan flow our based of in stated, periodically previously and grow profile As we'll growth. the with capital. on And to uses dividend cash alternative earnings payout reevaluate
has QX, in be in stock, to may look with the several in $XXX capitalize the our execute not did over and broader weakness market million authorization the we share market next against total we been that repurchases our While volatility quarters on any experiencing. particularly the
strategy, the M&A our we in distress the great to environment. actively capitalize and on looking position respect a at were With to we're assets current market in
to evaluate be logic for acquisitions, market strategic willing sellers We’ll scarce, down they contingencies. valuations valuations and disciplined the without becomes certainty the market Shutterstock. M&A capital the we to line ability opportunities close as private have and come continue integrate public in have As we and industrial compelling with we ensure and more to to provide ability that financing that fit present
we provide The performance. we intended what go annual comments are As previously a earnings our noted insight expectations in provide on performance relative guidance with around degree guidance. and morning, provide color our released a we our few that rescinding to like now this to can on I'd of is provided into forward confidence. rescinding guidance
we're COVID-XX the revenue lacked to the the that duration to precision guidance ranges forecasted needed impact severity cycle, business in around strong have investors. our this We a resulted significant pandemic and for be has in are ability through confident and on operate very resilient withstand generation manage leverage our to the to environment. we business. ability and customers’ revenue financial of in of And EBITDA and too dependent our Uncertainty current meaningful and while believe our position, the to is the
company announced current manage and with and its is our discussion continually We forecast the and our future. environment, if consider XXXX the in guidance. appropriate, providing I and the Board, given withdrawing guidance previously business, that should Stan we concluded have After when will and
months. insight While year much for some the XXXX uncertainty on to revenues, for provide there's last experiencing can expectations too we're I in what me few full into the our comment
sales year-over-year across of decline in March is each the which ecommerce the The enterprise percentage single-digits impact on high channels, the including believe our of declined attributable revenues and basis, is and weighted Our terms April of would are severely a countries to COVID-XX. a in couple average those predominantly we and last recent than I we have the others. that seen improvement seeing. impacted gradual there of levels that of are and from are more of we service, note April many XXX we weeks somewhat whom trends positive impact
revenues. to forecasting down second the of we high April timing remainder is it's the March our our for in revenue QX. and variable normalized expect rate single quarter. of when be run We present, trends the persist our XXXX revenues revenues in single-digits to The would XXXX returned the in experienced largest QX, the year-over-year late At
With revenue are aligned reducing well previous uncertainty, manage as making spend been ensuring our to the taking our margins. strong We've our revenue plans order our optimize cost of G&A and to technology as that generation. been progress we've current our concrete actions costs to costs, further and vendor outside on in
as We from the are marketing facilities monitoring such restrictions return and closely, on conferences, and and marketing of reductions course and events T&E. are expenses expenses naturally seeing also travel expense investment travel
our softness, costs, we the achieve the around quarter year. to that expansion revenue the despite discipline at guided for hope last even margin year our to With the beginning EBITDA achieved targeted targets we margin we and of the
emphasize that emphasize year. absent the the do would rate we our would ability still do even Shutterstock the we cash course remainder I and during we expect free that volumes. return Regardless on operating revenue to return to or do when this when QX, will generating I XXXX the depend for run business normal to normal And However, the of of volumes, flows. so to to meaningful is return of year
other out weather storm team as on a Shutterstock’s side. management the energized current is We business and to come resilient. the stronger
allocation the mitigate and the reduce shareholders. to profitability plan are forward and to costs pressing our We to our impact steps taking requisite capital with
have. us. We open appreciate any that may Thank time to you. thank you for now like Operator, today your questions we'd the line and for joining investors
