SSTK - Earnings call transcript Q2 2022

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Operator

Good day and welcome to the Q2 2022 Shutterstock, Inc. Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions]. today’s being that advised be conference recorded. is Please the to your now like Mr. over hand to I’d speaker, conference Chris Suh, Vice Development. President, Investor Relations and Corporate go ahead. Please

Chris Suh

us Thanks you XXXX everyone morning, call. for joining earnings Suri. quarter Shutterstock’s and second Good for thank

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

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

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

Paul J. Hennessy

get to like seamlessly. quarter Shutterstock our Good colleagues first call. gratitude to my so immersed my the Thanks fellow earnings welcome quickly I’d start business and morning helping by to in everyone at me second conveying Chris. for and

of technology us assets marketplace several opportunities stack hubs. passion Shutterstock and you content across to depth our past many organically of speak And team my of businesses. has content The that so. and content position industry in capabilities the leadership end throughout organization many you customers, in for investor weeks serve the Shutterstock’s would first early I to maintain myself by and contributors, key serve superior and and am depth always the with so to with and recently the production acquisitions platform, across Creative via of provide approaching some execute best and and the unique solutions lie sized finally been As on the invested engaging of now offering permeating forward in do spent CEO. capabilities with of large heavily bias look Shutterstock customers. aware the the I those I month I Shutterstock that our energized the range of the to and our and exciting in Shutterstock leading and years these maybe for action key categories, to unique in opportunities I breadth ahead. and will medium that community small both an data, ahead. assets untapped opportunity industry to and and of priorities introduced make of and are content leading include, an and find and a in the months extremely continue depth ahead. The enterprises as like assets to our allow I talented key weeks indication exploring of to shareholders. employees, each our unique feel strategic a content, capabilities the all our able We've bedrock to breadth marketplace Flow also

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of As to a de destination to use and investments industry their we a leading become these content professionals result marketers, scale of needs the and come have for primary massive creatives, for have facto range cases.

Metaverse To particularly larger customers That's XX. million to contributors. XX that is such by the content perspective, the is content. means quarter. our million that a nearest purchased have around What thrive to in than the X well in world a contributor our assets real freshest competitor single from in base evolving we our and on rapidly Metaverse added positioned with from as marketplace, ready every added terms being this a X.X is marketplace content put community environment effects things Our sound million model recently of with XD X.X million

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force brands. in seeing end Shutterstock and our form in customers strong scale Our traction at a is creative Studios long video to XD engagements creating we're able sales well We're high short truly that to deliver as for customers end as global solutions and form competitors. on for unmatched by our interest is to

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for enterprise offering, SMB with a NBC strategic the increase to all and the sales average series royalty franchise. and are hundreds career cast and the inclusive are website later Shutterstock channel images produce pharmaceutical investments we VR, we thousands of produce Shutterstock and Leading one XX tap to e-commerce of Overall AR, the and real Studio commitment Johnson, than we is In large customer momentum car across and by new like summary, currently hosted production Our and greater wallet metaverse strategic experiencing the that for improve that three airing and of year. is original acquisition, Carvana work people greater the than sustain ALVs of deals right and collection in which strength. which customer race partnership product reflective nature. brand year commenced is The and capturing appetite in to in be which on also this to in drivers driven our proud in we're upsell, growth a that continued product its live. on a into increasingly brands time launched is agencies. channel in and free Shutterstock will segment last Flex QX. execution in account CPG increasingly making in services an relationships marketplace our industries effort and increase world seeing our focus, growth the powerful per size which studios healthy which is for of diversity. enterprise sports. business in see [indiscernible] autotech Through of with customers our innovation, We're greatest diverse more with path this our revenue our customers curated of our life with with an new docu global times Jimmy studios as will We're customers partnership growth continued Having activations virtual continuing winning times of

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opportunities investment and assets look and early so also at Shutterstock, based unique into my an I'd observations the on some share Beyond capabilities potential high far. to like growth

Looking ultimately see to range improve our a of performance forward business exciting opportunities I growth. and accelerate

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and Taken attracts more and fly part compelling more Shutterstock. wheel contributors together, is differentiated customers that the of content

have the communicated capital execution we value believe our shareholder generation the that will M&A through in With future, strong creation. share return we our for of cash As framework repurchases. flow will we we dividends, mindful be invest strategy, profile consistently we of and

accelerate to generation growth eye avenues in long-term margin improvement. on revenue cash an invest will with We and

allowing in to mentioned the right to capabilities that weeks and strategically to we're with to ensuring We adjust to our world our achieve I M&A place Shutterstock. strategy acquire and assets the combination test at also The be criteria. of experiment as coming path warranted. call execution to enterprise data where improve will businesses of the growth. I'll I'll class to in in and power the the areas to hand and our channel through business financial look and next leg to the investing help In growth our have top over capabilities and as strategy forward acquisition learn, us marketing in you months our match that the continue I our driven led iterate, return our and discuss our with our is innovation updating such that in on for channel quarters further be Jarrod performance spending broader customer strategy call, conclusion, on We'll and of vision our adds ahead. revenue e-commerce and the And in guidance. relying right we

Jarrod Yahes

constant both the our currency of based Thank from and on a growth addition morning on to enterprise you we which channels quarter quarter X.X% XXth second in which May Revenues added X% basis. e-commerce Revenues XX% overall Paul. or this and this half reported our revenue grew grew benefited on E-commerce our Good PondX the by contribution closed month’s everyone. acquisition a for in X% quarter PondX our a one of was revenues currency basis of business. just PondX second constant the quarter. and currency growth basis on quarter. on excluding above the the constant X% aided grew Therefore, X% for

FX results, we strong e-commerce channel X% e-commerce and initially Excluding our attribute the shift Based Europe roll is business, compounded and product in the impact expected the growth taking by of Russia three weakness return a products longer ALVs, with pressure acquisition. currency on the and on customer grew drivers, lower X% we subscription than to notably PondX, mix of off towards LTV with revenue in that to constant new basis. and ongoing year-to-date weakness higher but our in

Flow Flow look Plus marketing we quarter. proposition. Creative to forward by the just have our strategy customers made our price strong We week progress the subscription refining in of acquisition out enhanced This momentum first over will Flow end that our the capabilities showcasing driving e-commerce with retention standalone on just capabilities product and Shutterstock. per subscription the in second Creative for And in reaccelerating impact and our a to quarter at rolled new platform value month. e-commerce. unveiled the We customer engagement second e-commerce positive we Creative roll We also our Flow for last Creative with We time. a customers the on point and are our $XX.XX outs growth channel by offering focused our our recently believe to is tools

customers. both ALVs. Splash in and customer newsroom and new for by demand acquisition out Flow announced continued offerings results acquisition Enterprise driven We higher look business them platform editorial expect grew content attention acquisition a see by driven both We our studios measuring of forward place basis growth constant The and Creative Editorial the enterprise Shutterstock XX% channel. and coming enterprise over medium channel. quarter small sized to we was and offering to and customer by by to added reporting strong momentum experiencing the the News. both to recently positive the and currency take Studios We're investors. traction momentum in solutions quarters in and Meanwhile impact our customer to solid gradually engagement and strength XX% PondX X% we're seeing enterprise with our of also revenue on supported or within our of services. the bolstered

expense driven largely For by basis X.X approximately margin quarter gross non-cash reported year-over-year higher second by amortization M&A million. the XXX of points declined

second shift marketing driven quarter and Sales was driven basis at QX margin second offerings. higher margin gross subscription XXX XX.X% to the ongoing XXXX. increase by expense of our enterprise in revenue marketing where quarter points by second year-over-year compared by and Excluding roadmap. we Line XX% to in Con presence [ph] along additional of The our driven expenses the channel. event mix showcased year-over-year XXXX. a G&A M&A content revenue as XX% the was of consistent investment the XXXX revenue towards by amortization, the second the in quarter improved at growth sales of our with X% to compared of X% development the capabilities of further future product of headcount XD in increased XX% our with support quarter Product as were percentage

expenses X.X PondX Splash acquisitions, they included However, compensation offset million of transaction expense. the with associated lower and by non-cash

the margins expenses, the diluted was Excluding associated second were year, acquisitions associated included share with non-cash earnings EBITDA revenues the adjusted we guidance EBITDA previously expenses transaction M&A in driven was the per transaction quarter operating the and are expenses in adjusted points from above and per expense Year-to-date and M&A. and XXX evidencing expenses margins were our marketing even margin XX% last leverage we with are margins the mergers second spend Adjusted additional experiencing. Adjusted of XX.X% earnings million for GAAP inclusive EBITDA compensation adjusted EBITDA sales and X.X XX.X% In of transaction for and basis down the our quarter. was by high-end XX.X%, $X.XX mentioned. diluted transaction of G&A share $X.XX. of

of acquisitions and in down to the also this Splash as quarter revolver of the Turning taking million In acquisition we our a had sustained market weak We of of our Depending we the acquisitions in X XXX come. XX the down balance repurchased million to second News at the million pay for and end XX result with shares cash for drew of buyback on flows, the year, further share our quarter program the our PondX connection quarter. PondX XX on sheet to conditions in revolver. elect advantage the and million. may for XXX,XXX quarters we cash million

repurchased shares first total quarter result, from the XXX,XXX our shares we've decreased to a end of XX by XX year-to-date. at outstanding quarter million As shares of the and the million shares

quarter second from for grew PicMonkey and growth deferred million the revenue XX acquired from XXXX was revenue XX%. the Adjusting balance deferred representing Our deferred and of X% revenue XXX year-over-year million increased year-over-year. of PondX,

the quarter, X%, the Our at conversion unfavorably from XX%, are subscriber current quarter. sequential and was to deferred accounted The to down and converted which basis. Average balance as for rates. revenue decline per XX% XX% operating lower addition subscriber per revenue revenue by of exchange the of the Paid download. for bookings increased total X% X.X% of revenues. down dollars revenue of the metrics increased revenue increased were is On a revenue by subscriber count key impacted subscription customer above non-subscription downloads $X.XX per previous represented in our revenues PondX’s by foreign percentage increased year-over-year FX a by business, as the in and revenue download entirety

full margins the to our guidance taken are to to XX that up are year, XXXX XX% the of last for we year. to our X% flat guidance forecasts with maintaining for multiple factors our Turning together There revenue have compared maintaining full guidance year. us growth points basis

compared For year. headwind and respect current by year this depreciation Shutterstock's substantial XX% we the the Euro to revenues our currency, and have at of year-to-date. to approximately XX% XX% At to currencies beginning a depreciated increase rates X% on full spot revenues X% example, the Pound headwind represents both and to forecast the with a rates, spot of represent based

remainder now such rates the $XX fully the this guidance. that headwind As that our forward to we are year FX be and approximately of revenues carry a spot for current million we will estimate into assuming factoring year

performance half enterprise. any the e-commerce in in are we month assuming or are will an enterprise this back as $XX acceleration We will million million revenues additional approximately guidance in are in million The in or total. channel. uncertainty, in or growth our somewhat strong not per X% reduction Russia of of impact ongoing of contribution seeing our estimated offset on Based $X macroeconomic $X PondX revenue the also we the the of from at in current rates factoring year

in workflow significant digital in a changes softness applications by and on no content of making we content marketplace. tools, remain and strong our We data focused creative continuation customer into a integrating behavior current spend conclusion, marketing. evolution continuing a the into leading and stated X% announced recently our for our XX% growth delivering integrating growth call for on And are with open long-term XXXX. any while targets would investing annual on like we with margin in acquisitions now to macro the questions. despite revenue on operator with We're current for progress factoring In combined that we platform the are to uncertainties expansion

Operator

[Operator Instructions].

question with will Bernie ahead. come Co. first Please Our from McTernan Needham go &

Bernie McTernan

Great, company. taking start Thanks questions. of remarks Maybe Paul for your spoke for the the for prepared good mode being the morning. you in the about to content importance

you operating you other or stock just gives peers, dive be and mode the how confidence content what competition offerings? free If -- maybe backed that is could in options, there AIB

Paul J. Hennessy

the acquisition. to for thanks drives We've I some question further putting bolster right in We've contributors, wheel the customers done better, in content leading It understand the that can yeah, position convert acquisitions content and leading got so is they the Bernie. content in position position it our Great, forward. our way getting actually simple the fly look and it. the we that of front in at

Creative as when and conversion see help say it then is So then engagement our increases. -- with tool content, we that add amass you further engage and ultimately what to what customers assets, these we I drives Flow that is

driving growth. conversion, driving content, content of flywheel then positive very very, that and driving this with tools get engagement underlying you again So,

about really So it. think we how that's

Bernie McTernan

having guide And Russia Jarrod, sense. of FX you of lot revenue a million for $XX this probably in for in makes total for $XX year. PondX Yep, and then headwind called million of

moving better why prior is about? what expected to doing that the or the are So thinking we any guide other business core is relative that than pieces

Jarrod Yahes

on that You look look what's I the you of and the I bit selling know as Bernie, business on of firing really exclusive is it’s the in a sales Studios job tale numbers a growing of phenomenal large well cities. little cylinders, middle offering. we performance. year, going through we're and our the enterprise, of I at a mean enterprise it's this of SMB on clients a our mean look some with seeing think last strongly family tremendous content that's success It’s rapidly you team the executing with at all of is as editorial the of if doing back Flex introduced our two of and and a lot solutions

we does So, in I I’s year. more for And guidance some prospects enterprise across perspective, seen of point well seeing Paul this business. our aspects us remainder what from we're confidence fair be it's our great of give and I year-to-date to pleased couldn't we've about the time in and both sort the say our think think that outperformance in multiple as at of as enterprise

folks and a back to and back getting strong in for and On time the we're revenue would investors peek the basis think I peel of taking side, this mid there. high on growth reported at like we'd an is gave e-commerce growth to just clearly to longer be we single-digit than sort at onion point like. organic not We

acquisition, on isolating I geographic think some are so the focused that, And on new we on focused of are impacts. customer very we we're focused

America One geo, Bernie by you call that the at see I can out the of North if U.S. we're is things of and would the in some the and you weakness growth some also look seeing you the see in can of strength Europe

that And so to the enterprise. successes continue advantage in seeing we're while to on in e-commerce focus the play and going reinvigorating of strengths growth taking we're those to

Bernie McTernan

the elevated we for the quarter the maybe investment the were in think but margins think was that lastly about year just half should we of the quarter, rest -- second there than or the for guidance I terms the then And that Street lower margins year? in think think of it. about in the levels me, Got in and reiterate were expecting of

Jarrod Yahes

Yeah.

our thing we million in in this probably the we called Bernie, put was expenses public out itself. release, out but what So the have quarter should $X.X of transaction

transaction out, and including the end are expense million for margins, If year-to-date you top year-to-date even XX.X% one-time our margin we would've that guidance. the of been back the quarter of the above that above $X.X

and one-time our really it fees associated fees lawyer kind transaction is of sort with So, this fee banker deals. is of that and

and the So guidance, we the [ph] sales were a splash had in towards in big in offering. headway we cost And a feel presence line, lot with like you really XD Line we year. elevating minds at with enterprise of a made the really was Con our feel a about hearts seeing marketing year-over-year right brand if tremendous margins. direction up about moving that of and We feel of at the and And our we the customers and lot today. success we of terms we're made the our good us this with whom good in business, look where

Bernie McTernan

the color. for Thanks Understood.

Operator

you. one moment for And question. next Thank our

Our Andrew Please will from come ahead. go with Boone JMP Securities. next question

Andrew Boone

morning and maybe can differently, I the end we consumers, for thanks questions. be the where Can taking just segments you across customer and market Good of little guys or SMBs, you talk Bernie's there serve? that weaknesses various about parse guys a underlying agencies, my guess more may question strength

Jarrod Yahes

enterprise be really the whether needs historically, and the the be that expect where that's of bedrock take of to creatives and Andrew, will of served they we've can success are of amount a marketplace tremendous been enterprise. businesses. back creatives, of focus and audience professional that look a brand we're working they you we be in of have sort And And for that today the recognition and really if we step you that that marketers, market. kind tremendous whether there with seeing see continue have has at notoriety been some our in Shutterstock we

both continued that opportunity for are growth as have businesses. focus that enterprise. And We companies small is SMB within on to an

marketplace. can creative of launching a So subscriptions. can be further the ago, started up again, to medium to sized that XX X.X we think seen of be And The sort our we to we you way been that have employees. and tremendous on that to in by initially X we are really the anyone that employees when look And businesses, plans on opportunity selling of of capitalizing bedrock journey to. all capitalize that at million And whom amount X smaller of this the is couple a that identified market. years that's in customers, idea XXX success the we've we've

XXXX, introduced a small we also owners unlimited We clip subscription. month be Shutterstock month we So if creatives. and video an music needs not And subscriptions, small of unveiled clip XX these per XX of new and per two to a you per subscription, back towards beat on focusing month professional very subscriptions, the heavily premium cater to started a who subscription. business image really two subscription think some five our video may music

launched. we or And so what executing solopreneurs they're play the driven first, referred really Plus, tools launch sometimes big of subscription template XXXX audience that Flow, be on just Flow into as Creative they of which may to the with creatives. are as the Creative also that referred is casual but which we next The is design to today, is launch tool

And like these tremendous the long people competition in feel tremendous potential that's large for to to create have who their creators runway customers. but a very that with opportunity the people well eventually feel untapped as professional is us aware tap for there's ability into have not of become runway some this of like professional and going growth players a of tail we'll designers, growth. We like grow to created this There's needs grow. You'd space. for and a so of be we really a them content group these large two a we feel are may

So expand today. creatives we strategy we believe as an both professional become casual that creatives we as our to for TAM this from with the strategy may attention grow well as is these clients are the acquisition us audience

speaking we're were kind of that's broadly we thinking the we about So where vis-a-vis how are, going. audience and where we're segmentation, where

Andrew Boone

that on looks over That's you are editorial secondly like then with helpful, you're larger the you editorial. of much what And how clearly established the a talk couple base Thanks next more about now guys. future just and Can and years? editorial thanks. so guys Splash, leveraging

Paul J. Hennessy

committed the content whether to exclusive late. acquisitions of Splash more engaged space to and of further in like We're Yeah, be even bolster bolstering area the done or that acquiring business that's editorial we've our just our deeper one. to I'll side maybe take that absolutely like editorial and team

we've a that's by tools as to the creatives, leg only to elevating on things to but part that about Jarrod talked that. big position think by And the service content the editorial critical our of talked full was and position now out from a of that full platform. become we content in segments providing of and not I just creative maybe be in And one a end balance all a leader all strategic about, the for all brand our a stop shop stock tool customer of to Shutterstock leader just of end is photo what for place content.

Jarrod Yahes

I I and fully which in if opportunity for not clearly video think PondX would presence. but great is really there call are strong sure to out, editorial. two us I'm take those things editorial a Yeah, competitive recognize, share people had points a Andrew

So do we in video. presence that With opportunity. now tremendous did and a not PondX editorial prior we to have PondX editorial have video presence a is

The is editorial activity we would what the previously of with buy gone had other approach. to market a way you think piece as was

is would would percentage previously, There that revenue, a brings is, recognition our editorial see us. and the and that it Splash with an in they'd opportunity us did we they this sell long with for of to opportunity for editorial content that in on is the the our a our we sell engage with competitive and runway then recurring as tremendous us available. brings, is us that way gives presence, clearly pay asset area huge editorial editorial There's have with that capability more technology customers and individual ability that where is in opportunity editorial have a when of that approach. our With video, this customers subscriptions. with a which come, growing the while opportunity exclusive archive basis offering, platform acquire, not a a the We Newsroom of subscriptions, not combine Splash this platform Splash us existing that to to share want us So publisher. for we and that you us in to itself an tremendous they asset for where subscriptions would editorial identify

Andrew Boone

guys. Thanks

Operator

One will Truist. from you. the Youssef That Please with our Squali for go come Thank ahead. next moment line question. of

Youssef Squali

Great, thank you. Good morning everyone.

you So can the new was if many couple of but kind of questions with so differences maybe wondering you've new with years. you expected in for I may on see to that, in run related Shutterstock to in And kind in growth. year how company remarks to invest I has need the been Paul, CEO I any meaningful for obviously starting position we follow-up. I -- in the versus us to delivering you, a or predecessor? me, do share margins that and -- your guess think kind prepared meaningful of you you, maybe And year see on have your and any out? improvement changes -- committed be of How

Paul J. Hennessy

those to rapid I economics in Yeah, businesses at inherited first, scale. in cash that here incredible I've growth me business margins. Shutterstock balance earnings and kicks What accelerated and and strong sheet that that I've the required the worked and start an off a with unit just businesses required required that aggressive get see is for let past

we expands certainly. expand I but near-term so opportunities profitably the the ultimately to with our And EBITDA expanding continue plan margin growing long-term of Might EBITDA growth, be business in long-term platform, lead margins. our over there trend to and that invest that growth, revenue variability as

where we I we're see our what that And is going large to human enable and a because variety in going going to industries lot we're but opportunity that assets and be because a balance sheet When contributors recognition for enable customers make and obviously call the scaling the scale that that of places to lot Shutterstock from see and to tools that content, so lot its new the new enable to investing sure core are about I assets of we want And talked because and actual bear, and widens And we're again, its of deepens of the of I opportunities, there's a positioned bring competitive continues well I pattern that so launching, the to of mode. we about capital fast that growth we now in for enterprise all to editorial healthy. again, our there have. itself, business a quickly, and growth. that that, enterprise, to talked marketplace channels, to there's that framework, as talked we're our about from the both its on

be And, investors' what in stay capital we margin I expansion. from shareholders that of really will our again So capital the terms long-term and business. that's off stewards but course and delivering value for mean, the high we'll kick our of our responsible we

Youssef Squali

the public initiatives you've that new to and you I the it know, related has, now then also that just showed And I getting has sales how currency, of half? second decline. as much expectations about, particularly much talked related to marketing these maybe etcetera, for competition was first what's half your Okay. wondering is Jarrod, if year, for look at how efficiency the some

Jarrod Yahes

performance with respect half to different with first our the is half in macro our too of and year expectation respect to There's second not a from that So of for business out there. the right. channels performance, the the our seen uncertainty lot we've

a will guidance customer We are efficiency to and Nothing not of very our publicized factoring competitive. like a marketing is an for of well the well very the our if understood in the and is an to This or come that industry respect us you prices rebound and meet needs sort back year. year. is This to half in half in numbers happen by industry or with base. sales the where cost into that our of down beat are second

improving into Shutterstock, the and value customer you impact to Creative will really but of to When absolutely we with them only critical add and subscription, what the play, a predict our value an is bundling is prop content collaborate our tools that greater assets at business. to and subscriber not and which market on and catalog calendarize at where is a to better to content we're think business. to are assets, colleagues. underlying you going giving value Flow perform, we the creation ability ability their lead to growth retention that the the are We ability to have customer the value that the us the to subscription. eventually so and giving what add add look that's us now to as the the a product for is fundamentally time And over value look are That will of it customer fit,

we and And out this out so, And rolled it the the is a mean, create just culmination I really standalone strategy. early the last work week. customers to our is around literally a sub half rolled quarter. in This of year Youssef. just days second we of this

excited And start so to started value we're this we're really value to to enhanced marketing really really excited proposition, to results and this. We market this proposition haven't our the see customers.

so. we So of us in front do able to think a opportunity there's great be to

Youssef Squali

it. Got

both. you Thank Okay.

Operator

Instructions]. Thank [Operator you.

Bank Please with ahead. Our from next question go Schindler will come Nat America. of

Nat Schindler

how just your see recession customer both with advertising business broadening your in types want your ad how Yeah, and through you affecting has possible to you base if media are of change affected? will happened I a in could the past your walk what and

Jarrod Yahes

I'll Sure and Nat, I Paul think will start follow-up.

have been happened I from think the of our in of that dislocation sort experience, periods there's market. two

the mortgage of spend think in can recently ad And the the activity digital and recession can of think examples of both pandemic of crisis first economic declines dislocation XXXX. about time advertising. and significant in you the in the in some And sort quarter around those saw and digital about You more second XXXX, XXXX.

place significant taking a XXXX, disruptor industry, if there gains point was XXXX, true share we're that accruing time, in track a Shutterstock. were the at were to that and to Shutterstock back in that company Now, you smaller

that in specific Shutterstock So very to example, able a recession, grow strongly. despite was very,

to an fast of kind point where and million that kind need through almost you of today. we are are think to push as the forward in we XXX time I So leader

came when to one down second quarter in a quarters. the of each was of look business really and to economic first you XXXX, those If X.X% the activity standstill,

show mind economics that to vast did resiliency it spend, I of think as existed. about component platforms. accrue keep in stock majority the large So the a think a digital And, the of overall ad you when

you And a the happens. that campaign, out cutback don't cost a necessarily think so place that particular we about stock first is believe on when

let me would And kind turn on the to how it so Paul to react perspectives to some of over we in market. his give volatility

Paul J. Hennessy

in own hands that obviously variable can our business a run that's we as destiny. we able a Jarrod. a think essentially our the and our and on of and about recession for is to business We've way it got on globally. or has so our a The our basis. large broadly nature to control our is contributors the particular marketing the ultimately expense if in dial Thanks this our be business there us way that. our spend quite we is, hands very And Yeah. all levers business, and and that that of or got We've ad so long or on depending we which hiring share dials manage our in pay is revenue recession how appropriate on can

get skis could or our that kind any our to prepay have we way. in economic harm's environment don't ahead of so of And put in business

to true, our protracted one, of So business even manage periods just well, could very we're what able going be to protracted, potentially time. be

first advertising about, we're well cut talked to Jarrod think go, right. I not the

are creative. We any to level of critical

I'd media that time, us to while media to track is offer. content going finally, creates if over may now creators again expanded to that's that from photos And allow force shrink, in to our what what world, largest of aggregate content underlying sales you differentiated companies the say XD, spends I'd way, business. media add predominantly And now the spends with end so engage Shutterstock then the video, to we've is and tonnage content. music, tools the that our an execute appealing By the our better has

might been see photo. takes stocked away business platform, you All of could that our in was platform, initially a our or and purely that that diversifies have volatility de-risks

Nat Schindler

Great. Thank you.

Operator

I over to remarks. And closing now this time. queue for I'm the Paul showing turn like back no any call further questions at Hennessy in to the would Mr.

Paul J. Hennessy

our And for thank look Thanks all us our our and Great. call I'd ends today. joining contributors, of and much. just employees, Thanks this customers, so to today. like our for

Operator

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

You now disconnect. may

Shutterstock (SSTK) 26 Jul 222022 Q2 Earnings call transcript