SSTK - Earnings call transcript Q1 2022

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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. thank earnings joining call. and first for everyone XXXX quarter morning, you us for Sutterstock’s Good

Officer. consummate some product into our Joining investments existing profitability, integrate effects Chief offerings, hear forward-looking from our and acquisitions Jarrod new future Actual Financial forecast. statements, to acquired Executive the today acquire during in Officer; and strategy performance note us businesses is ability will and may limitation, success future and of guidance. our Yahes, Stan materially XXXX our our our results have we discussion and including Shutterstock’s business, impact including our consist you without the long-term of information of and Pavlovsky, today the Shutterstock’s trends Please financial our or will differ operations, that targets, of Chief growth, or margins existing long-term could the

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

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

Stan Pavlovsky

thank quarter joining and will discussing we be for today. Thanks, results. Shutterstock’s you everyone first us Today, morning, Chris. Good

Shutterstock, a currency finally, quarter XX% growth improved, our uniquely growth. per Shutterstock will of products, in XX% more roadmap, dramatically for enterprise year-over-year which customer also FLEX e-commerce in past believe product And and detail of or Ukraine we a contributor our address X% our and basis, momentum our in further and grew war constant driven enterprise from the to reflects Shutterstock on acceleration in and XX% of expectations. growth strength editorial Shutterstock’s X% ongoing channel execution wanted impact of we The a positions by businesses. family in We and both continued on talk this perspective. growth studios the the year-over-year to continued about its

FLEX part products Our offering team our now key customers. are and subscription geared businesses and Premium towards medium FLEX small a middle-market and of

strong multifaceted both needs. the overall win serving complex AOVs has and most credibility creative in capable Studios partner maintain a which and strong Shutterstock presence full-service Studios Additionally, blue-chip Editorial increase market, Shutterstock quarters. strong in a our retention, for positioning as contracts of and Shutterstock strategic turned while built customers’ all to us enabled brands, has businesses customer our

by continuing driven in in offering, we out is Our which innovation rolled rate, Editorial new at growing business our healthy a newsroom XXXX.

our as first proud customers introduced Studios at year-over-year accelerating a end-to-end XX%, We XX% a our this coverage media with X% Editorial key being X.X% revenue, in quarter, net their entertainment especially photographers our XX% basis, offering to by are and needs. and channel, as grew In driven events. subscription growth some In solutions position such quarters subscription saw change discussed customers and great done our enterprise all-time an of in the by subscription our resulting several our strategic ourselves meet the subscriber revenue to which conversation experienced past the of over enterprise quarter. continuing shift on our the short, and basis, in which focus with our October. work we and was better and grew able total their XX to partner the the This product increased last currency on percent has past with we year-over-year line by e-commerce constant Shutterstock offerings a enabled expectations, reaching subscriber of high. FLEX We past overall revenue count quarter, as a on additions

growth channel momentum in These effects predictive reaccelerate sound including our will subscriptions also XXXX. see subscribers of the I subscriptions, and with better we to which We new new taking select about discuss feel content, next. e-commerce our throughout expect helped are some content content value a workflow good actions actions in subscription create applications positive to music our introducing QX, that enhancing with the unlimited and insights and include

towards may you year am and acquisitions are integrating out and I acquisitions And workflow. say made happy we capabilities. our As data and remember, several progress making exciting key we these last core in building that tangible to

entering market QX. are rapid capabilities period testing, We iteration in features exciting to we very as a new and learning of and bring

These organized and to e-commerce enterprise to Datasine part e-commerce objectives week, audiences set of AI-powered our content are in this These and value customers plan immediate saved new define to Meanwhile, organize subscribers. the content second by Shotzr. e-commerce search PatternXX, through in and applications Plan add-ons subscribers most results seeing year. stay our to and search customers Our we of engagement. for and released to early market April, customers. centralized and feature features of This target In as discover Catalog half available subscribers are customers adding promising content allows our acquisitions to of our catalog and on customers in for existing subscriptions is enterprise focus to released their the perform and license content bringing for And goals. allows early powered and their value-enhancing free our calendar. we on to for a our our their already we are place. allows likely one terms customers

predictive key This performance. behind why our technology recommendations, our predictive elements now search photo understand power customers content is with of of provides what our specificity drivers core helping the a are experience. feature in each Additionally, the

this our released we addition, underpins AI-powered have In customers. application, Predict a which enterprise to of newly search beta handful launched

reduced their and third-party cookies and ever-expanding device increasingly IDs the sea with reliance facing available audience choose, on are the to reaching marketers Given of right which the challenges content and from content. target

customers overcome challenge to helps providing enable app asset this the Predict their select tools specific Our for that content right our by needs.

to Predict like features content right allows the our to find app shared addition, collaborate the their boards. with teams within In customers project

be editing the a the in text, of This coming backgrounds, who to serve as intuitive, resonate their functions. other we technology to our channels, now Across better an with In PicMonkey historic these we our create to touch-ups by either features with Create to will scores enterprise enable acquired predictive and own access easy-to-use marketing the they will no allow professionals release customized removed on and customers with Predict the will customers seek app their designs generate to approaching validate subscription short, will our evolve us on We customers are also value-enhancing leverage and data. or our templates, available at both in data through The own applications to application will able and insights able enterprise who and to assets handle acquisition custom, that e-commerce creative weeks. supplement continue professionals of and catalog e-commerce creative charge as will apps applications these based our available believe soon products. Plan, be major or insights. our existing powered XXXX, Moreover, produce and account-based professional intuition predictive interface. to base make milestone insights premium quality from scoring existing customers backed are their be

of to their Predict creative library, creative one just content the broader and marketers which work a Shutterstock’s with Shutterstock design plan organize later we this that target creative glim business. audiences will rather have a a this include wanted will Catalog, in and summary, easy-to-use Create subscription new connect previously also standalone a share, creatives This free our content content. will contains presence offering segment our that process the creative the a upsell AI-powered all product our Relations subscription, collaboration a lastly, tools massive phase. powerful our the a video Ukraine an include and search. platform, so path year And at tier product, that encourage all to editing capabilities. creative introduce will flow Shutterstock’s any with extension need addressing which which addition, We may and AI-powered of contact and you lower price and not selection In to to visit war validate to be will part had an gives Plan, on the our new than premium stock In subscriptions. a a content for will impact available Investor incorporate We represents flow can to monthly link to in point, casual new extend This place. apps these make, spend of who moment will we you and believe microsite, and insights

contributors, to provide million committed Ukraine. the first million that of over a million in In up As from and in made March, Ukraine. network supporting year collection Shutterstock the contributors in approximately an assets. X.X we to our to XX% massive had content quarter, thousands contributors are of end, organization, donation early is prior of with To XXX the $X assistance Shutterstock’s direct Shutterstock

submissions we seen world. rest history from not of impressive any We the from marketplace. that flexibility seen network and sources the the in region the responsiveness have of region is have shipped efficient of our created changes region that in the to content different with content Shutterstock, of pattern effect the is our of market Throughout part that this of significant needs meaningfully the we with have powerful to globally the and

creative a year. from crystallization Jarrod, call takeaways connection of the few performance our believe from into have the not revenues, first, final our represent expectations factored in acquisitions and we I the do will the turn our will we the revenues chain of away which large and In X% we contributor capabilities believe design year. about do region, part product our While with to impacted before impact for last conclusion, have in go supply our predictive over we rollouts

Second, we we embedding over that, perception the to And customers’ workflow the marketplace. are workflows. applications the customers’ finally, sustained enable into we launches I by are Shutterstock turn with of and believe call deeply more in of our offering recent full-service suite applications product and solutions differentiation will of growth Jarrod. and a us And that our changing pending strategic will

Jarrod Yahes

basis with growth net currency partially per was tend good than to lower launched Thank expectations quarter you, currency offset the by or grew We our first X% have the multiple Stan the to E-commerce remind fastest driven XXXX. and lower X% for and morning on Revenues the or products our subscription start To of grew an subscriber transaction products, our net good a smaller constant year. including acceleration strength subscription and investors, quarter in in in in and on XX% a witnessed transaction constant products. everyone. our October pack this revenue additions products. quarter and FLEX revenue XX basis. retention X% This by a non-subscription our quarters pack LTVs

quarter. a subscription revenues a record shift our products, mix this continued of this of towards XX% As reached subscription revenues result

counts we and X subscribers more reminder, subscriber revenues, only than our have a that months. Shutterstock include As for subscription with in been long-term

as enterprise our another Shutterstock in growth XX% of Studios or XX% in and strength FLEX editorial. basis team constant on Our growing on based turned products, quarter, currency well strong as sustained channel in a

first out year-over-year the and For Sales we The revenue, revenue have our of as offerings, had marketing to experiencing products. margins the quarter and our was non-cash of the gross increase approximately compared which higher margin the expense are improving investment impact in of down to enterprise and with points due XX% the QX down of as our G&A year-over-year. in in shift points increased driven margin Gross to by also than development lower spend, pack towards points declined XX.X% XXX tend support our acquisitions utilization amortization by quarter. quarter. was to the M&A to transaction basis channel. of of expense due by to the in continues marketing a million fourth million. subscription XXX to point gross XX% quarter a to were additions marketing as $X.X sales costs donation Backing included partially in contributors in count are our as revenues from of performance head sales by ongoing additional with future basis M&A XX% and percentage year-over-year XXXX Product well XXXX in basis business which largely improved quarter, XX investment the margins driven $X first first amortization, from basis XXX XXXX EBITDA XX% growth along Ukraine, as as leverage G&A roadmap. product for expenses to grow. associated G&A further X% mix

Excluding the Adjusted would by year, points G&A by costs to XXX additional down have EBITDA XXX marketing XX.X%, basis basis spend. donation from year-over-year. margins down Ukraine, were mainly been last points driven

diluted earnings was per quarter, per first share GAAP the For diluted earnings was $X. and $X.XX share adjusted

XXXX. down of million driven primarily in XX, payment we cash, from the quarter. bonus to $XX buyback balance million and is program $XXX the our of cash from share Turning $XXX well the end at the during quarter December million as as had in The decline annual our our at cash quarter, sheet flows, first

for during million. we fourth As back indicated quarter, XXX,XXX and shares aggressive $XX.X about were our buying more we stock repurchased the

our to result, decreased a the end the of total shares XX.X at by million quarter. XXX,XXX As shares shares outstanding

taxes we cover on further issued share awards, of equity related withhold addition, are a paid also creep. to to In $XX.X million basis, the on vesting which count our limiting

value million over increased We in our $X.X during and Cash utilized and we total cash $XX which acquisitions. also share included quarterly for $X.XX the CapEx $XX also content dividend, that million to This shareholders paid of outflows return per to is million a our of quarter. recently of January. announced to

M&A complement to in generated an growth, revenue baseline believe described As that margin and previous dividends, is of our calls, and shareholder increasing share value we our expansion. framework attractive buybacks of from consistent creation

for XXXX, was year-over-year than XX% deferred faster revenue $XXX million of revenue growth increased growth overall our quarter. the representing Adjusting deferred balance first PicMonkey, deferred from of for revenue balance the grew and XX%. Our $XX million quarter revenue the for year-over-year,

million a represented subscriber product XX% quarter our key increased net of driven download. sequential the quarter, to the to metric in increased driven TurboSquid X% count to basis. and our highest per by to Turning ever. increased last Average revenues revenue X.X% and year. $X.XX and ARPU from introduction X,XXX of $XX.X sequentially by basis operating accelerated were the quarter. of increased per Paid XX,XXX additions last sequential with subscriber decreased of customer in this by The and in the additions revenue for a down X% on the by Subscriber per to decline revenues, first time XX metrics on revenue to introduced $XXX,XXX $XXX one-third XX% and download by year-over-year for this October of downloads was our customers revenue FLEX XX% inclusion

to experienced exchange end current the to and the through XX% We are margins rates, maintaining year, in represents headwinds basis At of to the of we for Ukraine, both an FX for guidance reported year. X.X% additional revenue taken compared We’ve the when full the into account loss in also gave headwind X% and representing full year the year despite the at XX spot we’ve points our full Ukraine. projected X% up quarter. war with revenues of to the related to fourth the revenues Russia flat revenue from growth guidance as for growth foreign

feel are quarter quite and revenue So good total. growth about prospects for X.X% these headwinds year. our Regardless, performance first approximately in the we our

own evolving in been guidance a adjust to making into expectations with positive quarter. We’re we EBITDA and we towards accordingly. model a thrilled business our tools are that Should continue, and a content great outperformance XX.X% the above with team our data integrating the our subscription start Overall, our off into will our margins margin progress first year. workflow past creative and offerings the we’ve as over at

while our line pleased are now still with delivering we the us with to to operator, for growth, would margins for open on annual any to the that, our like start the We margin questions. expansion. giving around invest year, commitments And flexibility

Operator

Squali with comes Instructions] first Youssef Securities. Truist question [Operator Our from

Youssef Squali

and you Hi, Thank Jarrod. much. very Great. Stan

Just for two me. questions

First, sequential though, it maybe quantify and on impact headwinds if year, just Russia you bps. the on just the from think a impact? XX relative so basis, you can earlier I on you FX on at Russia said to just maybe the quarter, the look that the for I it’s

Russia you So that maybe XX Russia, I think, quarter assumes know in that as conducted guys, it of business bps was about February. And for well. end the until I

back So in that February? Stan the to about on half. any where up thanks bundles? relative PicMonkey the just integration? other that maybe in any that set you all And I’m guys from on gave that guys second integrate number products was Thanks. what FLEX thinking expectations metric retention color maybe a just so are for are back the the you the FLEX can we But the to you planning net-net XX into then plans in into this feedback you or early

Jarrod Yahes

with can Stan. Sure. it your Youssef over And help I question, turn first I’ll then part to the of

when we basis that to seen points exchange. impact in year-over-year. our had and of GDP saw revenues prior about gave and the revenues third impact, year depreciated denominated XX as Year-over-year, our terms guidance, in euros about we year-over-year my remarks. a X% the depreciated that fourth of guidance X% from We by We’ve into foreign factored we from about FX Just euro think the the we accelerate about quarter about have X% GDP. are in about it, full

revenue. you impact approximately first million XX there in quarter, at that of the bps of If $X be look would

month be come from of some of the revenues March. our that annual million revenue. of Russia off and about of X% That about saw $X revenue have would also We in We Ukraine.

that annualized of our the we numbers. impact forward, full will Going in have

factored And so into guidance. we that our

guidance. Our for quarter, reported of middle in the was really right revenues the our

And our so about comfortable growth and that X.X% guidance despite feel current feel good the the do of still headwind, business. we with prospects

Stan Pavlovsky

this the and of we Stan. answer that went is about applications kind Youssef, realize detail the all into your application. of applications, on the I Hi, To the of launch and question some and

application, So then And out early just was sort search and away also weeks couple then currently in then beta with is week. integration quick enterprise in into experience. core of we’re AI-powered Plan past of Shutterstock PicMonkey our Create and Catalog application the April. customers And some just is of the reminder, released from released our the predict this was a a which

very is to quarter This features. with much on follow and continuing focused learning additional

fact, rest the In be of year like the will that.

be However, will of more doing a half second applications. the the lot these year around marketing in we

As retention launched, what’s far applications, seeing the applications which – the goes, most these about as we’re about that XX% of already. applications about is for with seeing important we’ve XX% sort we’re engagement a

engaging flow and customers our creative Flow the the new suite twice of we’re stock leverage content your introduce actually to with content are will but completely available, products for FLEX maybe tells of Creative what able going to that coming to be our previously will and do also will which just question a the we to also with For with those subscription subscription being FLEX capture them a stock who engage this they includes stock available us not And of allows perform. of is products. content be effectiveness what free all don’t they able leverage about how new customers have to audience to them This a and And had have not apps, of tier about making stand-alone to start need then applications – being a data the as that the for that content. with content well. have And engagement apps. to

our well. So of content Creative applications the available it thinking add a it’s that as is way value will a subscription, make existing and for we’re subscriptions without about then the for who want we all customers Flow

Youssef Squali

with XX, the Can maybe that? outcome. the your to you. very on There you FLEX a think you a FLEX an happy Thank on bundles, I give update which the And be year, last launched XX. just of Excellent. was – talk on you so us seem

Stan Pavlovsky

Yes.

So we as to be a well. are going XX and product testing testing FLEX

stages that planning is of releases. that. We’re we on still do Part major testing in we testing the the AB all of do

are becoming video that to especially of that Some the and of music has then each combination individual robust we’re ensuring fact just given within content of our more with much that also the to that with tied content do our the categories. and launching are subscriptions products subs

have this a do But what around audiences lot testing with these we and to products, that thinking plan yes, support of of to product. best of We products, test lot should how these target we to a pricing the the do quarter.

Youssef Squali

you. Great. Thank

Operator

Our next comes question JMP. with Boone from Andrew

Andrew Boone

how educating Can about you about think more think on tools of Good apps about then talk morning. in is you these the taking you in off of feature talk newer in Thanks year just you of question, platform? to big in just somewhat on-ramp kind Thanks. are a marketing on broadly, for you the a – mentioned Youssef’s new about can users you of plans my investment mentioned themselves. terms terms questions. tools? of back as plan predict as the How and but half the it? about this how Can we of terms should that marketing. on the double-click and made we of you And being users the talk new users on educate these AI

Stan Pavlovsky

thanks Yes. question. Hi, Great the for question.

just they right learning through that also their that a is whereas discovering And applications applications bar if a experience. of way applications the had on to that is effectively these today, part to see as you start that you own. previously, sidebar we now, these are go Shutterstock you search So the way discovering are today, has the customers

specific half complete everything move have back year, site forward marketing. of a to we the the from we include go-to-market plan, As will which

our the have in have, consumers responsible are they things for our in on call-outs sort team that So, of will that across that help UX videos where terms site. of based we helping is will we

So, page, whether we have experience. engage they on our into page, they asset a customers a the will are on detail to ways whether are search unique application

perspective We complete applications, as are to a support have that percent content Shutterstock are about our plan – can going marketing will reach and way, perspective. from upper in do funnel a Jarrod of going for the really revenue. talk specifics of a templates enormous a of brand in we content customers from well. be to drive who drive also to these tools to in spend – both of them But to be expand educate the our talk of but marketing discovery some in an also as looking a amount completely new subscribers, to creating and creative to get new support new we terms marketing existing doing help and

to I will Jarrod, don’t over half, additional back providing any I about you. know we guidance that So if turn are point in at the but this marketing

Jarrod Yahes

Sure.

first are going spend a to quarter. we We percentage marketing. X.X% We and the for as of in slightly last year-over-year quarter, we the expect embarked mentioned you reinvesting bottom a fourth we towards about compared of of in let Andrew, back remember, line, and to decrease sales television or the of sales all if to that on half revenues. spend fall about were was $XX that million don’t at about marketing to do linear year, be as we sales campaign as and to So, and expense XX% the marketing XXXX. expect

But pace you the back that approached sales up fourth tick and so expect spend of to is more will going XX% are last marketing to of year. to what the over sales and spend see year. of quarter you the even in course us that of revenue, we see marketing a And not

year-on-year as and linear some redeploy dollars overall sales into than we last lower So, of marketing to other slightly those be investments. advertising year

However, and compared year last even more sales half marketing weighted. second more as to pace a of year, was what this spend

Andrew Boone

Thanks so much, guys.

Operator

next with Our Instructions] comes McTernan Needham. Bernie question [Operator from

Bernie McTernan

revenue to same. on out basis the impact but start just taking XXX revenue Thanks point Great. guidance, Maybe for the called Good keeping morning. to so questions. growth, the guidance

what original offsetting So, or the expectations tailwinds that is impacted guide? outperforming

Jarrod Yahes

couple Bernie, points. of just a

I our a enterprise one, stand really including sheet data the think growth and you to in And have of We lot the backdrop of I of that. continuing can look strongly. at But for perform. multiple the clearly, very think look channel into points, at reasons can deferred executing some revenue growth you on that that sequential the balance business of in confidence business. just improvement is

Secondly, we product about feel good roadmap. our quite

have heavily We very this the year. of past in invested the course over

we First, in associated really migration the a which frankly, subscribers. a evolving as as And the through conservatism. revenue of better because organic acquisitions, well year our us net our a platform becoming visibility subscription creative efforts of revenue into business, retention quite off towards gives started better the with revenue with healthy degree

these business. exceed absorb in for still ourselves be to and our lumps the and to for built meet able have enough we so cushion And expectations

great reinvest a business dry growth. up further. put revenue we even of the margin great There half despite powder business able also top us terms quarter And put our we and think of growth it percent be pick business. back to profitability. virtuous the prospects and feel to a I So, gives in while line your to quite really able be headwind, you in accelerate bit growth that good into those is lastly, great to put of cycle profitability And up monies a about that’s of terms in expansion, the to when up the

we to exceed It’s top make and And on to dry can our it’s towards execution sure business. a the that subscription us numbers. business able evolution put be the our It’s think back lastly, I channel. enterprise in So, gives line. powder strong meet the and profitability

Bernie McTernan

going on in Europe in And both were of further just flat XQ Understood. Rest World, ‘XX. and year-over-year maybe

to out Europe were that standpoint else there there, some growth in call from think comparisons anything was I Ukraine like impacting revenue macro Russia? a was there difficult from maybe aside and

Jarrod Yahes

of of that all that’s in revenues. the depreciation externally, FX geography of a X% about to European about you in our to the which and the things Europe we result is note when one of is headwind in which So, that GBP disclose euro, revenues, important third the is our is think as a

the X% to X%. your So, is you revenue on think growth, constant headwind of currency if X% third division that to about a growth European to revenues, of the closer

actually it’s with sell-through U.S. to I is success in would speaking, the our What So, subscription that broadly flat better evolution products say we Europe our our had and not have as of and compared Asia. year-over-year.

X% we European that at feel do some that quite in some are going X% the things headway in making forward. constant our business think and rate. I growing and frankly, think is about growth in are channel of But Asia, that particularly focused doing And basis on we I currency good the it. are regard, we we a quite enterprise very to on

Bernie McTernan

was news over And past month weeks, stock the just last competitors X Understood. lastly content me, some with this AI-based for there on over coming imaging the few like into at then that competition, least market. some flow Dali happened potentially

other imaging terms well, as like there be looks the market. the still we should stock it’s market, three, Is it still – focused in out big on in like or thoughts are any or if what competitors there content maybe too? Just competition stock of of kind

Stan Pavlovsky

hey to you. Bernie, good and Well talking

think to I with fact in we you our think When think leverage that market. cookies lot about you us. how content, that be going investments we a what of of think standpoint continues are a there category, that I the how look a you effective from it away, about as deal is terms when innovation at is proprietary of make, the we how creative to in

affinity on library we assets, really segments It’s segments against and is acquisitions etcetera, aesthetics, content that affinity, this XXX the in tied to audience library equally we across these when take not data data score for example, we competitors the or that is to our and and us. marketplace. somehow we segments – have distributed is that like unique IED based that So, million third-party

sets now think type target The have the are about with is our we have think to we developed they to lot you audiences definitely lot of in about very that the internally, actually a think companies library we make unparalleled when and think help customers content is compelling investments when because trying is a our training you when decided you of that size a target there so about these we And ability the our product. that of space. AI the reason of library, to

So, to right, are and space, you it’s ways. be tens in competitive to are there going to is we very different leverage very that AI companies – hundreds going are in of continue a and

is the have of really the have our it’s library well strengths very that about acquired data Shutterstock, proprietary us, on application proprietary and that based that the depth which For a we to as as we at practical is us.

Bernie McTernan

Thanks questions. taking the all Understood. for

Operator

Truist [Operator Securities. Youssef Instructions] a from Squali follow-up with We have

Youssef Squali

guys. Hey Thank you.

Just include – that you EBITDA I quarter, more you think spoke ARPU. other, of your two the guidance because maybe as you bps you up areas year? than subcount But keeping did you for know the unchanged. sets And aggressively delivering other reinvesting months money do for are subs I more plans XX basically think the the Thanks. ago? guys One, to didn’t QX potentially do this three it clarifications. have PicMonkey that you performance How the that Jarrod, in of of nicely so in you zero part to

Jarrod Yahes

numbers. not in the have yet we Youssef PicMonkey included So, subscribers our

I time include comparable, period prior think pro point in in of a as them misleading. forma would be a to little the a include if at we as kind were well bit we didn’t them

acquisition annualized kind do of probably have will part those to are so, KPIs. out from when subs for investors we include a specifically going we that we the... of And So, our until to we call in wait the

Youssef Squali

it part am that I sorry. ARPU you before, had of Was discussion

Jarrod Yahes

the What part numbers. part of done ARPU. had not But the either. the we was in of in TurboSquid, which in inclusion ARPU so was it’s last included not that of is of the is pickup No, February year,

we are And is made very terms the the donation Ukraine. the with performance the of quarter. that In margin pleased margins margins, in the in inclusive by we first of way,

we still we obviously our to that, year great the expansion. made about around being like feel margin So, ability start our to We do while invest business. and realize in our commitments have something able to that

in of and opportunities our we press roadmap. of Head been product CMO release seen our pretty business, in we in yesterday new have about put terms also may We executing those have Brands. some our have you our that important And on and out growth

can are prospects and So, marketing what about perspective. and our we we branding the a very of excited from team do

to going are we our our business to for So, in have commitments expansion. margin that of also balance investing growth, while around adhering

Operator

to showing remarks. for Stan I further call the no like questions turn am I would time. at closing Pavlovsky back queue to this in

Stan Pavlovsky

our and always, to thank And to for today. as I want joining to want our you. ends Thank our for express gratitude customers, our contributors That today. all employees. you us call we

Operator

This conference for today’s you Thank concludes participating. call.

You may now disconnect.

Shutterstock (SSTK) 26 Apr 222022 Q1 Earnings call transcript