SSTK - Earnings call 3 2023 | Shutterstock, Inc.

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Operator

Good morning, ladies and gentlemen. Thank you for standing by and welcome to the third quarter 2023 Shutterstock, Inc. Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Chris Suh, Vice President of Investor Relations and Corporate Development. ahead. go Please

Chris Suh

morning, for Good thank for you Thanks, Third everyone, Quarter us Shutterstock's XXXX joining Michelle. and Earnings Call.

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

to free the Hennessy, Officer. I'd now press in call comparable EBITDA turn financial results we GAAP today, factors the including XX-Q. margin, and tables release the the Form For adjusted factors and net Reconciliations on can call. We'll SEC press actual statements in the release recently most discussions more non-GAAP and included channel XX-K non-GAAP could flow. distribution by time discussing growth, cause financial we to Paul including to our a materially today's directly filed Chief diluted adjusted net for on and information, currency to filed the differ most of with income over important please certain any in risk our revenue time, reports income, the measures refer today's from found be discussed may billings Executive from cash adjusted adjusted that of make share, including measures constant like EBITDA basis, per to to be forward-looking measures risk these with

Paul Hennessy

everyone wish and further further transformation picked the the quarter, for fourth the into Thank engines a Shutterstock's joining of third us creative Enterprise Thank a data and I Good you business. everyone. morning, growth Chris. expect and acceleration demand Happy we our you, today, Halloween. In faster quarter. and up, fueled

seeing are quarter and recovery e-commerce drive strong of innovation. On with next operational top revenues several in by the over operationally representing executing supported XX% a and to quarters, year-on-year. record We financial product delivered strong also of growth performance, are this performance stabilization marketing $XXX million, of exceptionally Shutterstock

first we margins. EBITDA be on consecutive to digits has of X $XX highly or XX% quarter exceeded for continue quarters, EBITDA are We and profitable, million track strong EBITDA this on to million every our generating year. Based grow double $XX by performance the in for and guidance business, marked confidence raising in XXXX, both we more enterprise quarter for and revenues exceeded discuss detail. QX improved where our visibility e-commerce revenue also revenue which and EBITDA will again Jarrod Shutterstock. are year-to-date

channel total growth consistent enterprise XX% and third X%, in posting the grew is data. and Our grew excluding quarter, in

strong and Studios entertainment our ever. Studios XD largest enterprise momentum grew market gamification legs Studios experience view XX% strong growth our strong media product, fourth the third saw And the for to this we SMB the X% assets beachhead and production, subscription in expected as accelerated opportunity data. XX% is products virtual and of growth has We having quarter, Strength ecosystem. excluding for quarter. in in We at between as gaming FLEX of with X continue continues. tremendous interactive enterprises medium-sized drive to leveraging a which in deals also offerings in Shutterstock signing

we'll the On XD on the fourth be in and front, generative XD progress quarter. and NVIDIA are our Shutterstock making good offering, testing

across diverse model earlier outset lower XD the production generative our wider that offering XD the communicated As we cost use the adoption year, believe of this partnership will of and we drive basis text through purchase. Meanwhile, for XX% XXXX. as our a model XD channel e-commerce capabilities year-over-year to as declined QX cases our on of expand simple available models in well generation library

the We driving drive capabilities. the that next of quarters, and AI growth several in over have the retention recovery plan our in and low-cost launch a funnel of conversion in our unlimited including recent confidence and in marketing changes e-commerce top initiatives both traffic. Essentials will Improvements latest customer content our generative effectiveness featuring

we we in As earnings last last several that on the we believe in underinvested mentioned call, our marketing quarters.

SEM in partner. spend marketing new expanded a paid our channel increased since and affiliate our and both have significant We brand with

accelerated continue. As a of and result, traffic believe will trap October, in we this growth X% have growth trend to and accelerate seen

to We growth have marketing, drive next in into in continue funnel and quarter the and to we'll improvements, future traffic year. opportunities on of will fourth which SEO numerous drive top additional spend

we and Second, retention begin improve. effectiveness to conversion are seeing

in Our have conversion improved rates October over XX%. by

we churn We with products a improvements We now we are that also core retention point customer seeing at our are of have over quality the of up given the in stable acquired years. likely base rates subscription some believe off the lower building may more growth during have lowest and past X.X in pandemic their customers.

premium creative image low library types. to on of editing access by images of cost recently other small giving with ] have market attractive AI-powered unlimited Shutterstock X.X simple marries images access point, our and that and Essentials. business is plan over e-commerce content product content new launched just exciting to all brought target a generation of monthly to owned million Shutterstock including and a at generative generation discount tools, our AI-powered is $X.XX an generative them [ editing in plan that our and our Essentials and Third, an tier and image unlimited wholly AI, customers price a tools and capabilities we casual

need Essential addition serving videos, upselling opportunity and and these our there music customers. higher-priced to XD believe to customers product, we premium to In customer of a cross-selling as evolving an acquisition serve the Essentials assets is by images,

last suite AI-powered week, our editing generative which be Essentials Shutterstock's also in launched will We included Creative plan. AI,

a new or better an can to than lens generate function images a a to to a images to proportionate specific other are a alike edit includes As a in to brush wider components look customers AI-powered with par X tools out that and portion to preexisting remover. today, any generate alternatives, a features are stock of use variations resizer function to anything generate and magic quickly correctly available generative on the make image, smart zoom perspective, market AI own. Creative image modify their automated result, of ensure both each background

results through latest and the DALL·E technology, generative in generation In to terms the our priority our of best access class. collaboration OpenAI, including are AI finding preliminary has image Shutterstock with teams

quality to marketplace, the focus that change and believe improving to is as of ecosystem starts result a and licensable and images. is positioned monetization across a generation in shift more for Shutterstock the benefit platforms As image editing we sharper in high-quality

in Beyond I'd content of XX,XXX at and To events and of the X platform growth personal shared our most areas data, billions businesses, communications our audience through are sits remind discuss API enjoys and impressions that a intersection emotions. is generates which both partners. enterprise the investors, to over like of important moments and reach e-commerce exciting and strategy. massive monthly of Getty scaled Getty It revolving in around content of parts

customers we opportunity and proposals platform business, with brands. To a are into our that and first the is other translates with officially on running open Getty end, for up now multiple exciting unique out. this ad of and All for

with in skip strong advertisers. are beverage food We services. these has something seeing The share is resonance receptivity that CPG, financial you idea retail, strong by something you and brands content and than Getty's rather

grows, exciting and expect the to We to developments advertiser Getty execute scale the we our ability as for campaigns. on come customer in in platform quarters interest

tactic. Turning Shutterstock. is the Scraping challenges. generative explosive and customers to strength AI and AI proprietary for by of opportunity across for application reputational It's financial is fraught as unsustainable we with The for video, and an now now and is sales data. licensable data universally scale data our clear XD. to It music model data ethically partners. because incredible growth and models commercial ML legal, offer and training recognized is an that train stores unique scale evident metadata Shutterstock of our roster including images, plays at quality media, business This

pleased we a with I'm deal to have signed report quarter, Amazon. multiyear new This

multiple well existing strategic relationships with customers. as expanded As

looking a seeing different across platforms, potential who some to our approach train will we applications detail, next tier technology distribution. In really closing, customers and require to have diligence success in due this ingredient world's source customers far, evaluation that decided reviewed their critical Shutterstock ultimately had data and conducted AI proprietary extensive are build which was needs. Thus consumption their testing business. to own models AI and and generative tremendous are Our our partner from signs working believe in we but encouraging the the of for largest key the with we've

Our demand. Getty extremely are future showing data in of engines strong growth and

expect and up we several Our to over e-commerce our and business expecting the stronger even and is recovery finish an the is next year. enterprise picked stabilizing, business quarters

We with the business that, call and in quarter have With rolling our exciting the engines, creative new to tremendous in over our the we that lead transformation. Jarrod. some fourth be and out in future we'll potential products I'll upside data taking see Shutterstock's turn

Jarrod Yahes

up a was in the well and well strong driven showcasing with revenue our as profitability quarter, $XX QX and over record EBITDA good grew XX%, margins, of with million, with was data of and beyond morning, Paul, enterprise with Google, performance business. record expectations. our channel XX% by growth quarter third a third from XX% Amazon. revenues Shutterstock strong which our reported revenue $XX to recent our exceptionally win The an and everyone. win million of Thank a driven $XXX you, as new engine, the by just adjusted quarter million

multiple booking data contract are existing new in the process value with We million in $XX additional total and an customers. of

period result On are manner consistent over recognition time. structuring deals a will that in these quarterly an more in of our extended we new revenue bookings,

a flow not sustainable new most of this the revenue creates more into time, data visibility and and business. while and and a so XXXX greater And beyond. Over the bookings more approach bookings predictability scalable will impact backlog, will ultimately, significant XXXX,

as from Giphy data, as growth, channel ramp enterprise X% FLEX by strong well to Our starting up. excluding was driven growth subscriptions

Studios that Day at expect The creative revenue we XX% mentioned, our accelerating growth growth quarter into of momentum. engines in at enterprise Paul to bookings our Shutterstock Investor accelerate XX% on clearly is to fourth our to impacting overall and channel. and positively data further the based discussed we February, landmark and some wins As and

channel was third XX% down the e-commerce Our in quarter.

stabilization additions new quarters current and of but are the cohort with from the customers that counts a customer the we seeing quarters. We've subscriber churn in we seen past improvement discussed, was the the revenue having durable that expect customers. slightly down, resulting the left recovery sequentially, beginning a indicating that of and meaningful and several and on base in stabilized have for Paul customer of are business to up also rates quarter, based Subscriber XXXX come in attrition As to business, the into believe in came in more match business many improvements a initiatives.

the Shutterstock of retention to the and expense impact quarter was declined by to margins e-commerce recent compensation. noncash expect be XX% revenue the third Giphy the we amortization retention were marketing have reimbursed. Sales costs of quarter to as compared just royalties over through revenue third by compensation trends reversing revenue M&A that We in and higher had gross data Giphy of to quarter related these XX% revenues the minimal fourth driven quarter generated cash stable sales, net seen. Reported XXXX. in in sequentially, X%, in

higher with full with fourth be to marketing significantly year additional our expect as marketing performance sales channel quarter. quarter and marketing branding spend is the e-commerce we SEM. expected and XX%, in consistent than in Sales least fourth We at the in of dial spend spend million QX XXXX on spending $XX up

we As $X.X of in to X% Paul reimbursed of compared quarter business. Product costs up, million to expenses incurred mentioned, around revenue the the to of XX% for we Nearly severance the strong and going revenue the costs retention severance quarter. this to higher to with annual compared us compensation into that compensation are this Severance grow development gives the performance XXXX is was third that costs, XXXX. third revenue due conversion in profitability to increase in spend Giphy-related of we noncash stock higher $X.X costs the ensure year. structure as XX% million was that costs further G&A of XX% XXXX. effectiveness addition of our were driven due expectations opportunity quarter cost right by greater in of all totaled compensation have reimbursed. Stock compensation to retention Giphy

QX manage This a adjusted and we As million. EBITDA costs adjusted across up to margin X% were revenue from consistently structure. We to are improvement both driven an costs cash $XX.X Adjusted squarely despite on reimbursed and Giphy but our by growth. executive expense team, were margins impact EBITDA EBITDA. in focused grew points driving revenue year-over-year by we that was included growth reported profitability, XX.X% year-over-year basis in XX% XX

at above invest are We where year-to-date well have growth. to XX.X% our across expected we business to perspective and a the margin flexibility accelerate from

more expect coming we While are margin the quarters. our performance normal by a in profile year-to-date, encouraged we margin

were We the to balance of the at the cash our grow by customer the to million quarter flow after free quarter. just we record $XX Turning meaningfully sheet. $XX back received of and the Free is of cash cash quarter million impacted end cash balances had that of receipts on close, fourth negatively expect flow. into

from million, $XXX was $XXX Our million deferred last quarter. balance revenue down

is Giphy. amortization largely to deferred However, due balances the revenues acquisition in from of reduction

to and Our focus returns. revenue profitability shareholder amplify strong is attractive growth with

we million quarterly dividend, $XX a to related of the our yield over During paid quarter, X%. providing

million. repurchased also authorization, can share for shares repurchase shares our of with XXX,XXX we repurchase We current $XX our annually. X% And

third revenues our to this stable we we enterprise For its X% quarter, guidance XX% and of time X% to year. In $XXX XX% the e-commerce. to our to fourth EBITDA million adjusted raising growth the channel, expect million this X%, data from from performance expect are our year, revenue year, guidance to million, raising a best accelerate adjusted excluding our million X% to a full EBITDA $XXX sequential $XXX revenue of see $XXX range in growth range to to to to and we and

in in the year. data, the We above expect half quarter first slightly quarterly strong another the revenues of

next up existing growth Google customers. Furthermore, have from from as expectations providing of we also that in year are We customers but significant million. the over accelerate contracts clear is expand bookings XXXX, revenue and over wins are and such in increasing and coming from million $XXX for of for or is our revenue is completed expectations line dramatically, to sight pipeline data before is data being expectations even now. business in to multiple that $XX this increase demand us from prior in XXXX in dramatically. in complete. And The already revenue land It has signed is $XX million our new Amazon, already grown XXXX place our with seeing

per about some marketing cash least the in past at for guidance EBITDA as well business. client Our the expenses year of flows. full seeing. in received reimbursed, quarter the of will fourth progressed cash are free quarter, third factors year significant ramp QX, say neutral excited the it Shutterstock as that inflows $XX we and to has million Giphy are million With signals also expect demand record be just Suffice how $XX of in that them we making the year we generate the to

And improved Giphy new for Our platform is digits, the is e-commerce at ad soon support. marketing now by to the enterprise is and channel to expect and with open quarter growing turn bolstered mid-single officially be stabilizing that it business. products steadily

business excited applications. in to demand out as well We train generative customers the these the as core for and addressable a of existing the capabilities from data about market for ethically total range dramatic clients model broaden are become to clean for uptick sourced metadata AI as for potential new

growth are open We for against line that that, in on time. questions. focused team emerging Shutterstock we'll extremely as operator, And some for the opportunities these executing exciting of a any with real are

Operator

McTernan comes with question first & from The Company. Instructions] Needham Bernie [Operator

Bernard McTernan

in purposes. attitude I script Am ] the Paul, what on their the correctly? interpreting really comments that content prepared caused so, align towards crossed And if training like your web remarks, change?? start, to for your industry Maybe sand seems it [

Paul Hennessy

Yes.

regulatory there's a the have I them issues. I brand think we of reasons, second variety metadata and largest in large some needs the us and There around players issues. emerging like uniquely in prepared my their the legal will that industry find players also that are is And of to what reputation remarks. think meet ethically Bernie, articulated that and I There have able believe is found be AI. players to sourced Shutterstock has tier the positions crossed

that we're to out. and the the pleased And So we're that. is assets, pleased winning leverage we content that position good the have

Bernard McTernan

in what's XX% the I Understood. the comments e-commerce X% love provide higher. conversion on platform. would some on growth And traffic then appreciate some the of going of more in in But of context I you could if terms quarter,

kind of to relative norms? historical those Just where stand

Paul Hennessy

Yes. they're improvement. Clearly, an

testing and and now. think addition I drive work think what you've better and about in articulated stabilization customers my product market by we're we're new the in on of And the is way, a business as you are new we've to that traffic launches remarks. And articulated products to, calling gives told retention the the confidence attractive experimentation in everyone -- putting what to better, e-commerce find incremental starts in that doing The level we're improvement [indiscernible]. the that's that I I converting better, of prepared when you're with what with trend us to got combined doing overall.

Bernard McTernan

And maybe -- Understood. off. maybe just sorry, ] just you cut I [

Jarrod Yahes

sequentially be in up levels from marketing. in sales it profitability been other invest marketing another Bernie. the We're Sales and XX% expect in year-to-date. us and thing up That's to EBITDA given at No, and fourth really add those strong million was $XX we margins third the just is the million ability $X would year-to-date. quarter, we've One almost I delivering quarter. to

running We're in when the and is and you're reinvesting the significantly you one same at of we're doing company. profitable time. business, reinvest, to So that outcomes do ability a the we're that highly have profitable business, running a of the highly both

Bernard McTernan

second next a -- year as e-commerce constant time to half like me assume can of Should get the for year-over-year kind growth? is follow-up there. lastly back to right just of currency we Maybe

Paul Hennessy

Yes, Bernie, it's Halloween.

not we're on over. I'm bullish the still. trend. when our the calling October cross in performance, on day But the month we So I like We're or and

Operator

The comes Youssef with next question from Squali Truist.

Youssef Squali

been to ethic there on have are and even journey in Paul, case. case their have topic. copyright AI to Yesterday, core that seems seems metadata favorably the to So legal resourced a the biased stability

to that Shutterstock. [ be comment view view data on reliance your you or can may how maybe more just buyers' maybe these on sourced will importantly, metadata? place and of that demand So Is ] impact ethically

Paul Hennessy

you in tell I'll space. largest come our the And players Sure. inputs the that from the in thinking

dialogues they're sourced. And the literally level some they're from clean current of buying direct that largest as to and their the the reasons suit with these highest they're we ethically and course Shutterstock. large and and having for we're and the are at the because voting us And of So -- really giving needs. us Shutterstock to coming goods companies about we've that notwithstanding, cases input and articulated in are world feedback why I've got their goods companies voting their the quite with strategy engaging wallets value for

to I brand. our but actual a there's customers of emergence court than lot with truer multiple nothing the engaging think there's going of be So cases,

Youssef Squali

of for Okay. you working to hear. on That's version topic about potential cannot Maybe deals? of X-digit that tier great can And a staying companies slim-down your smaller a or sec, your afford comments data that customers? of X- the deals for maybe on type elaborate next on

Paul Hennessy

largest and are be in discussions is to of the expect, customers going than customers, playbook, the out you the companies of needs that customers, we're but different might world. we the size the different We approach as And a there not give will probably Yes. the in the approach. articulated the of the

as customer-centric does, can our expect be services. we and way it adapt together in And the products and so always you Shutterstock put to

meet it that got, we're we So we're demand. playing the hand we've like and the -- customer to

Youssef Squali

lastly, implies again if And mentioned go helpful. Super on low just the you right. year-on-year -- is walk you think maybe just digits low Jarrod, growth your of guidance, the it mid-XXs. in maybe And to math is their over look there? single trend basis, margins some back my we're I Can All the them that the assumption a in QX on maybe XXXX, you importantly, the prepared in to correct, do margins can recent more at remarks. most as maybe And line? go through we math and

Jarrod Yahes

Sure.

on think as correct, your Youssef, revenue both So, you're well I EBITDA. overall both in as QX, assessment

percentage I $XX revenue if year, the math, full the for growth you'll marketing think of think spend, I at low mid-single and of EBITDA the get look EBITDA, incremental terms get the you'll in for you digits the do to in sales And in sort terms. of you quarter. you look to million the at and guidance XXs

marketing clearly incremental period us. marketing of this and million of very think incremental investment sales on A putting is $XX spend I heavy million spend. the sales and back of $X for

I expect sort forward. back the that do are the doing rate year-to-date the run business is think not level EBITDA We that going on stable that exceptional of our of margin profitability. you for QX

growth this X think that the both the change. I seen or I at back X would point, history on if very last over you revenue company expect to consistent on profitability, focus the a not years, of and look you've

Operator

comes The with Securities. Andrew next from question JMP Boone

Andrew Boone

XXXX going of I go and trade-offs give versus be more $XX Can more maybe details the It about contracts back talk sounds data that? in more recurring revenue revenue just million. forward. there elongating you you the of terms wanted disclosure like from guys had new us that to the recognizing upfront will about

Jarrod Yahes

Sure, Andrew.

in X there's prepared $XX XXXX that total new are, made our X both in-year of either in that that beyond. contract we disclosures helpful. So revenues incremental the booked customers there's million remarks the largely is in or that contribute to being about pipeline driving have that One and value booked, process I of beyond revenues and is will been think, of

itself. we we into revenue today of XXXX really and sell that's continue the $XX in sight and of in at deliver line And end million least and so to year have before XXXX,

other model and and a business So transition position that is a stability. an we're build on with over there perpetual impact clearly continue seen revenue in be license Whenever from from deal believe years. a recognition good do of build very more We've a revenue this strength you growth. the will that ratable can But model, this it create invest a able much have the forecastability to be because where visibility Shutterstock. a that that towards think think business a model greater customers And greater behind of forecast for We of will greater it's this we and are. we'll to we in trend will a I our the of ability number business. of have we position smaller this to companies to benefit and to visibility also sense

So that about business I in demand, this new respect delivering servicing this are against needs. of evolving part and undergoes, be way think way we'll really and their is coming any the way respect the feel to line the natural and customers service the maturation we the to with good is with

Andrew Boone

then on partnerships? divergence And what's Why talk versus 'XX. The Great. difference the question self-service? of enterprise XQ enterprise is data between in partnerships to data ex adoption and ask enterprise I ex different about accelerated the want revenue can you side the

Jarrod Yahes

to question. Sorry, clarify Andrew, just your

talking adoption about You're of what specifically?

Andrew Boone

going I is the about And opportunity? forward? again, that to that's right, how case? enterprise between ex we risk? you And versus more out enterprise What's the why What the the about the think seeing much stable difference on the revenue just What's do think just stock e-com? media, is data talk get partnerships you're do X. And want

Paul Hennessy

Great Andrew. question,

Here's it. how we think about

of images, side, other. product, of stable or that it's a got set very their have and you've customers If consistent about you with side, video, us clearly music high because front users are and time, very for on aspect large-scale center whether that workflow. and a you And long customers been small Shutterstock the think medium our retention enterprise e-commerce critical have very with a of is rates just the

And point lower And level and created is bear about, so use, their product be enterprise a see to at infrequent can which price that get of why a you high bring the that services meets more Essentials, new we tends engage retention, there product for high so that customers on is what I needs. a as e-commerce to Shutterstock customers. our growth and exactly high-value still side, we the products talked

categories is different right make kinds and within our just sure of e-commerce there that segments for super and subclassifications have to of are So product the each customers we've mix X those of And even enterprise, of goal segments. customers. you got of one the

Andrew Boone

In points. just you decline basis XQ, XX saw Great. margins gross And question. then last for my

XXX the saw talk gross you about as You mix? points any in profile? newer enter XQ. Is the Can a there just margin products change

Jarrod Yahes

past, a of and our Andrew, they expected with see core we quite we our result that for So did compensate partially have, that we up stock which called the up because of as margin. flows is some through the in remarks, our the of something into excited business. ticks paying our gross expense quarter, mentioned content an our that's business impacting stock to contributors content this the move There potential model. in gross prepared our keenly of Giphy has we're the improve, opportunities that interesting our It's results we're as Giphy that the when P&L. data higher out But slight that advertising-based in gross ticks of and be have also the as compensation aware the partially Shutterstock comparable business a future, about however. are compression restricted year a our compensation we in and a expense and expense do for as team through through flows performance stock result And some the that as units. compensation gross are commensurate margins. There is margin very the to core because margins nothing that structural in margins. we've And deals gross today royalties business is

Operator

Curtis from comes question Nagle next with of America. The Bank

Curtis Nagle

on Giphy. Obviously, the it's just guess, it Paul, I a line. that a staying follow-up I really thinking could you after know the it? monetization guys can, much about, level early to for but would big given how just Maybe as But days, you're as getting potential maybe a be business bit little of talk And curious in that. of be hear team yes, about impressions the then place. and you just are kind Great.

Paul Hennessy

We and the be the of in us said customers with enthusiastic. ahead advertisers and have of officially QX. in relaunching XXXX. throughout We're for asset but us you our Giphy, that seriously thinking we when advertising business. are schedule to QX open are including of the not is campaigns their very level And in that. that We would delivery are were that alert of the started kind engagement platform Yes. We size enthusiastically only about for scale we

are as the and of And enthusiastic. that start campaigns think up start performance, to get all and we to running signs encouraging. more the get advertisers these very that, we early even So spreads deliver and

So and I'm bullish more back the quality in bullish than and of team execution. fact, bought we level in the we June. the of our seeing asset remain when the

Curtis Nagle

Okay. a Jarrod. Very And helpful. question then for

'XX? be about ones can, and original bit duration more sounds what little you as the revenues much As of The would just in a And the the structure would a you the just of data any were curious XQ right? deals, then but could, be guidance of front-loaded, spread, kind helpful. more new to data hear like if very were

Jarrod Yahes

$XX you, call. fourth and forward were our fourth Data specifically joining Curtis, quarter. I you in quarter about And revenues the for Curtis. working thanks joining. And XXXX the We thanks with Sure, of to for look million. think asked

on million. X question deals. how in duration. on depending could to think going contracts your was The are duration. we think X about range years X done of long I specific of just $X then Ultimately, needs about be was And in as was one data duration XXXX We've the as and a of duration, of be look there the that third Those our much quarter contracts we second customers. lighter years year contracts in at, years

are and at customer models. lengths going building training So expected we for depends range a to on look metadata applications of AI contract generative really their of consumption of and pace it

providing in data. seen growth also customers, incremental our We library training to on and data plan fresh significant we've with our

us that we and our our that incremental the back growth fairly high today If data build create And seen customers year. a coming waterfall the acceleration a for a visibility you of stream single the give more contracts excited about going think course revenue better we the that in of We've upon look traditionally reflective at in visible that's metadata both very years was that this Ultimately, are our fresh revenues and world past to is of for consistent to business. as it growth come. data going over to exists. us around is digits. in It's library, to

Operator

with The next comes Karen Morgan from question Kenny Stanley.

Karen Kenny

X. have I

any composition deals. the provide you different half TCV deal expansion I'm types of year? count deals content examples first included on you're on extension in changed And wondering you're XQ how comment into specifically signing? Jarrod, that then if and the the can in First, seeing the types relative of can some the original weren't to And second, you

Paul Hennessy

question. it's We large see exactly partners described. Karen, Paul. you as Great across our

particular the type a Some portion large content that and start and back lot of other. and type with one the taking moving some a now content from come us a of are are to give say, particular content type more it

so allows and profit for by creates going a customers And large opportunity us models. also our train revenue that to but horizontal, vertical partners and both better both and their

the sourced makes compelling. well so data have it's library as we of data that it the of metadata asset that of comprehensive and the as that and cleanness the So entire nature underlying the nature that ethically

Jarrod Yahes

of customers, million incremental half to the to component. types existing we're new $XX content on to actually content types. additional Karen, I of volumes about you are think purchase from When add that significant demand or customers of customers just fairly existing the electing our bookings a us about would seeing from is and that. existing estimate

remainder customers demand the we've secured. from be from that customers, significant that's incremental So would new existing coming very there's

that. Nothing very, has very This It's about we're that So different business is count count. customer a where terms growing. our of in materially a excited business still customers. not is hundreds to customer report of

and customers us seeing, different very demand expand being excited a for in but Our least, pipeline expand. a customer if proposition offerings about make and and the attractive obviously, of signal list the more is more to announcing plans exciting of do a demand provide the for TAM not new build existing part of to a customer and TCV we significant is growing. expand very types terms the customers land new we're we're have We're quarter, that every more. We this affordable at

Operator

like remarks. questions. Paul call closing to I turn further I time, now this back show no for At would to the Hennessy

Paul Hennessy

for we much. joining Thank for always, This ends as And employees. you very our and to our us. Thank customers, our our want to today. gratitude express call our especially you contributors

Operator

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

You may disconnect. now

Shutterstock (SSTK) 31 Oct 232023 Q3 Earnings call transcript