Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to Getty Images Second Quarter 2023 Earnings Conference Call. Today’s call is being recorded. .

We have allocated one hour for prepared remarks and Q&A.

At this time, I would like to turn the conference over to Steven Kanner, Vice President of Investor Relations and Treasury at Getty Images. you. Thank

begin. may You

Steven Kanner

welcome Images and Earnings Quarter Call. to afternoon, Second Getty XXXX Good

today’s Peters, are and me call Joining on Craig Chief Officer. Jen Financial Chief Leyden, Officer; Executive

date may not audit the release, As allowed XXb-XX today’s the response to to due XXXX with able a Exchange by The additional prior be this work of delay due file and XXXX, the August the Company arising form. auditors comment second in Company’s comparisons quarter Commission included the financial the statements. that a are financial and Company’s noted its and Securities XX, its related in ended press period it for an file not to requiring extension Form results the processes XX-Q Form inspection time release of in is periods expects XXXX, XX, June papers to file audit five-day will in for The to from disclose the filing preliminary. to within of by independent additional XX-Q

we not this XXXX date, misstatement statements. the our of any are advised of aware material to has of, financial independent As auditor nor us

website and These differ release will to assumptions investors.gettyimages.com. of SEC. which our be Reform statements. the today’s risks, the assumptions filings could cause We that highlighted section in filings Investor would on various actual meaning today’s to our can these and uncertainties materially from These and to statements to risks and press these Relations found of Links include remind the forward-looking statements the release this at XXXX. are Private in like uncertainties within call press forward-looking Act statements with Litigation you of Securities are results subject our

to also in of We EBITDA currency-neutral discussions non-GAAP non-GAAP our for evaluate non-GAAP will well cash can using investors as measures core we assist with EBITDA, EBITDA rationale understanding filings SEC. Reconciliations adjusted adjusted to CapEx, the as certain information, our During in business. as some less use limitations the that management in and the growth and margin, reference the we rates. description, each measure adjusted of believe financial they uses including today, found be free our GAAP operating call results measures flow financial

open will After over I hand our we to Craig for prepared Chief Officer, that, remarks, Executive call questions. will the your call With our Peters. the

Craig Peters

joining high performance quarter through Thanks, Steven, by I will results. level and the quarter’s second everyone earnings the second quarter Jen and XXXX for progress, takes before business financial our thanks call. Images to full you start Getty addressing the

a Second revenue was decline XXXX representing million, basis on reported currency-neutral a quarter a year-on-year decline of X.X% $XXX.X reported X%. of of and

decline a year-on-year Our costs of with finished This for and million of at currency-neutral heavily adjusted previously EBITDA with reflects X.X% the litigation. reported decline quarter. by EBITDA associated legal disclosed more XX.X% a $XX.X impacted

business. what The the agency impacted continue and actor entertainment production While and customer finish conditions increased increased also writer overall, of and have media content and wanted these our we see our to pressuring are Macroeconomic numbers not are quarter. utilization to our customers. we commitment strikes our business

challenging committed our we in are to happy factors our of control, largely and conditions. performance our market While of face not are the with these outside execution are sales elevating

and League the as It Major great has agreements Soccer Images new It’s competition’s since a designation authorized world-class renew photographic a multiyear editorial the of with ground as Baseball in Getty Film execution has Zealand, We New and see in our pleased Women’s team were to World agreement also Cup on to Australia covering XXXX. FIFA agency. held stellar the the and Festival. the Tribeca our partner been a add US

and term, On fully indemnified, the pleased services. in service other viable, launch the AI commercially with long alongside industry-leading partnership high-quality, with highly creator-responsible our gets I’m to the AI and to progress front, a NVIDIA we continue build are generative to making differentiated we that play set

We expect this limited alpha and launch to quarter. in later are now

excited of our our in better to Natural needs. deployment to surface also the Language We’re to expand response content search customer pre-shot

a compelling content authenticity as pre-shot of time to customer quality. and Our continues it’s to provides creativity, more offer efficient, search, and a free value substantially level for unique

most Using complex now much broader high-quality against even set return Natural a we search processing, Language of results terms. the

below and a at you the go street” Then other at those action, in and providers. see to umbrellas results. see to this to try hanging from browser, encourage I content wait For a to would over same “Colorful seen istock.com search the

same, about colleagues long and control. to asked through the what term performance my committed our answer difficult on. second by assets. required always high-quality is our our building unique are through environment preservation entirely our is on elevating to focused head the and customers execution. and execution I differentiated is night, of within throughout keeps needs extremely we match When My me It and a It it the half, and the at more our offerings for up remain

over I’ll who you will that, through call to With take financials. detailed the Jen, the more hand

Jen Leyden

impact macroeconomic costs. adverse business second adjusted ongoing also strike writers As Craig mentioned, with the pressures, disappointing, by results and EBITDA and challenges litigation revenue our agency impacted were in from ongoing impacted with actors quarter and by our

I’ll period the or on trailing of comparison KPI XX XX, as reviewing XXXX. June of our by information release are All or June of begin KPIs. KPIs. months press all XXXX, key LTM ended contains X LTM ended the with metrics the to Note, some metrics period today’s XX, operating

these go-forward impacted total reporting. and on I’ll to KPIs our two XXXX the those the changes highlight impact As active made with beginning changes. our results, a annual of changes customer purchasing we are subscribers more total which by QX data meaningfully customers, reminder, on

in comparisons We will and changes like-for-like third the anniversary these have quarter will thereafter.

QX reporting. period to due large steady in Absent would have to reporting levels. comparable sequential purchasing customers Total from the been XXX,XXX. the total purchasing basis, changes the changes, XX-month total data purchasing were discussed compared XXX,XXX in customers On a customer to customers part XXX,XXX remained previously

in quarter active We reach as been newer Absent in our changes strong ago, annual growth over another the of would moment at data growth or or approximately driven of adding XX% XX,XXX growth XX,XXX added. premium subscription noted the annual XXX% growth XXXX. e-commerce was The sub a access as iStock in XXX,XXX including customer increase subscribers subscriptions. annual the our subscribers in delivered period offerings, strength smaller have to reporting the corresponding subscribers, and significant by well steady Unsplash+ of still

to efforts footprint geographic LATAM, our markets in and Germany, the new offering France, XX,XXX the to expand which and e-commerce see to over growth subscription U.S., subscribers Australia. UK, Japan Notably, in APAC over Canada, leveraging and we annual include progress across in are markets our in our markets, XX,XXX new annual various our subscribers pleased our EMEA, substantial core attract

quarter growing XX.X% to as QX of QX up from Our in subscription and products from third from mix and revenue the XX.X% grew exceeded for XX.X%, straight XX% of XXXX.

rate driven subscription was our some LTM in on Our rates for the annual XXX.X% revenue The June e-commerce healthy by decline compared XXXX. our ended of XX.X% was retention to in a retention revenue primarily period rate smaller subscriber revenue customers. slight XX, lower customers retention our

rate XX.X% offerings. to rose continued XX.X% the download to And delivered through volume video our in attachment our Paid year-over-year, customer X.X% value million XXXX. rose QX last, by speaking to being from XX

of to While video upselling increased and on we prominence growth video offering, across metric, key for we this executing subscription. remains our continue content our steady video continue focus see awareness customer us in it a search growth as site improved into and a opportunity to for

Turning performance. to our financial

pound. addition were strikes also headwinds mentioned, from agency and from between impacted than to reported and QX stronger dollar, These the headwinds differences quarters. currency-neutral the and drove results euro with the revenue adverse In macro, respect few by of foreign more prior some U.S. our performance, a U.S. the Hollywood to moderate primarily previously although impact currency the

to the foreign a turn Assuming XXXX. them expect currency we half tailwind of see where today, relatively steady rates back in to we to slight hold

reported and basis. on down X% year-on-year a X.X% was on Total a revenue basis currency-neutral

remiss business, sector across While we of on tenth in headwinds acquisition the healthy growth, growth I’d continued our commented KPIs. not performance across positive have subscription customer of and be to quarter, corporate our new this highlight quarter momentum our our consecutive some revenue also our

of reported gains basis, driven rose XX.X% Our revenue and XX.X% as to This percentage a XXXX. X.X% premium total access a across X% to QX, offering. up on on from annual in year-on-year growth further equates subscription currency-neutral basis and by revenue e-commerce in QX of our of a

year-on-year million, $XXX.X was a revenue basis. Creative down and currency-neutral X.X% on X.X%

of year-on-year and market, the due a products currency-neutral creative, which agency down and on within and was the within in primary a is grew driver sits macro X.X% business, Annual double to creative. Our X% ad creative softer conditions subscription digits this declines quarter basis. entirely

annual strong offerings, some gains our driven la annual growth from across gains our Within into currency-neutral. iStock XX.X% coupled core offerings. basis by by our The e-commerce carte in business, we contributions success acquisition subscription XX.X% and efforts which à the a our existing were customers on and reported customer of markets, grew with had monthly upsizing or

network grew which or Images’ and of currency-neutral. to specific needs, create meet XX.X% exclusive content, cost-effective, content Getty global contributors year-on-year, leverages Custom to X.X% customized customer

XXXX. decline results year-on-year and sports, currency-neutral basis, was archive news year-on-year crypto the our on events as down The NFT million, well a as where in one-off largest editorial and revenue to seen in have in space compares was due we reduced sports, X.X% QX verticals. $XX.X X% by and driven across activity challenging

currency-neutral Breaking were while in down year-on-year in X.X%. our growth the APAC performance we X.X% across X.X% geographies, posted down of major our and Americas EMEA,

cost XX.X% at percentage of a variations XX.X% product mix. strong slight a driven primarily QX by revenue of in and compared of QX decrease remained our less with Revenue as in with consistent in XXXX, revenue

markets. expense previously up year year ongoing to to million equity-based XX.X% our expense public concentrated of with $XXX.X tied $XX.X our earn-out half $XX.X The year. higher year-on-year of included the which of comp this million our vesting disclosed was compared our in million be related to to due the shares rate and up prior also Total quarter largely QX SG&A restricted litigation, due units and to XX.X% stock this legal and to revenue, return first of to the to was from last XXXX primarily our higher costs, expected of expenses in of staff $X.X higher compensation of increasing million expense stock-based the to employee

of management cost measures result proactive SG&A prior executed would That year. as quarter of the in XX.X% the XXX SG&A XX.X% Excluding the stock-based revenue, the totaled which compared of Further excluding million in compensation, basis both or prior and a of from revenue year. $X the percentage towards to declined QX. expense, dollars revenue in a have start of was is points litigation

the optimization macroeconomic and in we plan these to We of included we, anticipate Earlier plan the a spend marketing other This through year. with hiring our a X.X% down marketing global companies, of percentage reduction our rate end slow of backdrop. a better executed down more quarter, to from ourselves proactively million QX X.X% XXXX. navigate of deployment as position and in to of as to similar revenue dropping challenging total the $X.X spend to maintaining plans a

Adjusted down EBITDA X.X%. year-over-year. basis, down XX.X% adjusted $XX.X EBITDA a On million, currency-neutral was was

compared rate legal Our the expense. driven to of XXXX adjusted in the SG&A XX.X% XX.X% of lower elevated within impact was EBITDA with QX margin costs by

margin delivered costs, litigation would the of basis XX points Excluding expansion. we have

percentage prior X.X% year. year XX.X% in a to was QX CapEx prior $XX.X less down X.X% Adjusted was $XX.X the CapEx year. in of CapEx period. from EBITDA XXXX. was million, less QX, in the revenue Adjusted versus QX in EBITDA $XX.X margin CapEx as down from XX.X% compared million million of million in of last $XX.X was

in for expense increase to Free in $XX.X was of capital $XX.X QX the of is free million quarter year. QX million $XX.X taxes $X.X million, working at receivables. million The timing an came $XX.X from net XXXX. from stated increase a cash cash in Free prior million decrease of related interest cash Cash of QX, flow $XX.X million, the up of over the of XXXX. primarily in reflects cash in flow flow changes

$XX.X from ending million XX QX from XXXX. of million year-over-year Our balance June ending our a cash $XX.X up in million cash of this total on was balance term $XXX.X of cash XXXX inclusive in That quarter USD reflects $XXX.X of paydown the in change debt loan, repayment second on balance and QX million, a $X.X of our decrease million our of year.

in nearly a year-end June X.X ended net of reduction down turn X.X unchanged X.X representing quarter We with the leverage one-year leverage a of times, times XXXX from XXXX, and XX, as period. from of

As rates of notes, XXXX, loan June loan interest of rate of of million senior USD outstanding an of interest which with an exchange $XXX.X using June X.XX%, XX, million of million included we $XXX.X as had of $X.XXX applicable term rate billion, total term applicable X.XX% debt converted with euro X.XXX%. XX, $XXX

cash addition, our USD August we paydown, used of free on to sheet $XX applied a we term sheet. balance loan. over or to XX, the Year-to-date, demonstrating commitment our balance towards flow million repay deleverage debt In further of portion our of cash XXX% our have ongoing million $XX.X

June $XXX on applicable XXXX account week’s million foreign swap and agreements to and interest the and taking interest our as million Based debt into about cash rate last XXth the debt exchange is expense be of million. rates our on repayment, of expected rates $XX $XXX balance interest

ongoing performance through the U.S. first litigation revising guidance. and costs, sector agency and are Hollywood we half year, pressures, strike turning guidance expected our this for the Now our of impacts on Based from macroeconomic XXXX. our to

$XXX $XXX X.X% expect basis, a revenue We X%. of up down million up year-on-year down and to currency-neutral to X.X% million, to X.X% on

Assuming have includes $X year will $XX.X tailwind the half on This from overall FX $XX.X hold, estimated an impact negative an revenue. half of first embedded million expectation approximately in XXXX, impact this the in benefit includes million of rates current the third second to This guidance million the approximately in that of FX quarter. turning of XXXX. an is full neutral

approximately the to full basis second EBITDA on year-on-year to million half, the relatively down a a adjusted the basis. EBITDA about impact the for This of $XXX the adjusted $X and X.X% X.X% reported $X.X including currency-neutral million We in again, neutral half. a quarter. in benefit year, in FX expect on expectation is Included impact third of $XXX $X.X from million, million the a first includes in million assuming tailwind

This guidance Please of cost, be year, operating largely as built a note, which to litigation this company. into cost half the related first to this to in ongoing for public expect costs are litigation and the includes concentrated we XXXX.

Craig our I’ll we begin turn some to comments over closing Q&A. it back before for

Craig Peters

Jen. Thanks,

remain space XX we and years, in and ever-changing landscape. Images competitive Today, over the thrived and this customers leader rely content on value. a Getty For services with industry trust, has our in

provide and creative community We the our continue to with innovate incremental technology reward value across same customers and our time, content, to our at partners. services and

on in exciting place focused we shareholder have team laser the through uncertainty, opportunities navigate are and and We the value. believe to current long-term execution growth strategies capture and drive

With call that, questions. operator, please the for open

Operator

first Ron our And from comes line Instructions] Citibank. the [Operator with question Josey of

Unidentified Analyst

Hi. This is for Jake questions. on for Ron. the Thanks

really, digits, Maybe down first, you us more clearly in shift the agency. to and to subscriptions. you pressures with seeing ramping commented percent of -- traction sector agency remind given mix double Because corporate? the talk the could you us corporate revenues could mix So you’re about

the And slowdown media then, how second, customers in your there’s -- how factoring the that your just it how clearly, last? uncertainty long much. then are into us And Thanks so will given space guidance in around some talk could you’re strike, to what’s on like writers’ you responding?

Craig Peters

then, I’ll free start Sure. chime with to Thanks, feel in and anything. Jake. Jen,

historically, time agency have it recent I’d in driven the the segment for So, are obviously segment offset for more row. recent pressures. declines, one that has delivering of, we periods. that has it growth as doesn’t think a quarters offset declines say, which agency is for persisted Jen kind but by has largely disclosed, in consecutive been macro noted, -- we than over haven’t the us But more fully That corporate XX growth, been

seen it’s segment. that in continues the more some one forward environment it’s seen we’ve grow. We’ve gives lot us time And which to on out. continues say challenged a deal subscription, it. durable inbound, corporate shift very in that would seen we reduced slightly We’ve a lines but be to visibility a quarter. of So, that one It’s

net it’s from and decline short the term, shift away to the market. creative of the agency market the corporate So, in kind into relative

to positive net we a long going it to and has expect be forward. continue haul, positive a the Over that business, to been net the

With respect productions basically in to that are the hold. itself we manifest seeing are put on Hollywood, strikes as

shows. other be red shows. be and could could Those movies. could events Those could television theatrical those such. Those be productions. So, award be could carpet Those be

QX. had So, impact those have kind over of an

to and We to expect the year. planning that persist are for largely that the guidance given persist of that calendar terms we’ve in through full you

on would anything a Jen, parties the the and we’re is reflective that of you more together come obviously, that strike a resolve able immediate But are basis. hopeful add? year-end. of So to that right the that continuation now, to guidance

Jen Leyden

No, I think that’s right.

a we mean, we and out like noted, we Craig strike several through in saw guidance, been think year-end. as to goes the already are took I few big pushed assuming the months. have days, conservative Emmys events that just view past I by

So, that’s the approach we’ve taken.

us shift recent on mix Jake, agency-corporate, think, of in your history. revenue probably I you’ve speak agency being XX% question, our roughly to heard

dip We’re below seeing that XX%.

there, of we far certainly, while piece business. have it is the by exposure largest So, not our

Operator

Our line Benchmark The with next the question of from Zgutowicz Mark comes Company.

Mark Zgutowicz

Craig, then follow-up a question, Jen, business. and high-level the just you. Thank a subscription on

terms which priority. the it about In I’m at priority, talked starts a sort curious as I worst-case and of you I’m your execution reflects current bar think if curious, that’s the fulfill Craig, guidance -- with obviously helps low set. end, that a scenario of execution

your is ARPS absolute quantify on you you’re just seeing some you’re strong on side but creative mix Jen, subscription XX%. it not and or within then, revenue separately. what what subscription the is editorial seeing obviously share the if could growth, then, and was business, the subscription perhaps I wondering And of down -- And

quite that as as is ARPS to XX%, XXX%, you’d fast us grows scaling premium perhaps subscription isn’t means down access So like.

around on well. may turn what maybe of that could you touch sort as if So,

Craig Peters

Mark. question, the for Thanks

I’ll first the ARPS the So, subscription let question. and to can Jen and take respond then

with So, I would conservative We we certainly beat say from an to we’ve respect a to that hope view the second half end that. guidance. would of taken that bottom the standpoint execution

-- opportunities bit in bit longer is They this out think little view are there us proactive. again, They there. I a take more a my take environment. being

We’re for -- elements the of talked for in that clear have macro we some there’s backfill and demand going to strike. the our content. But about to

tells increased We’re again, our solution. are us satisfied in commitment that that seeing, with customers

We’re seeing increased downloads.

up were downloads in year-over-year. So quarter the our X%

there are to signs we’re in end just that second to execute the that So, there. and bottom over step of the half better order our seeing game opportunities up need beat. We guidance hopefully and over

do elements then, And pick you on want ARPS things the of just up e-commerce to the and subscription Jen, and that? to the side really

Jen Leyden

Yes. north editorial, How in of mix subscription. are and of annual So in you? Hi, are the both Mark. terms creative of XX%

On at our in so metric. probably the and phenomenal more looking side specifically active subscriber subscription annual you’re growth metric, continued that

over subscribers, to growth up XXX,XXX annual We’re XXX% the from period. that LTM

correct actually day on in You’re impressive there, which new customers to and seeing will we’re seeing out coming make pointing every some this take subscriptions. what we’re all day, trade actually

growth subscriptions. e-commerce lot smaller a seeing We’re in those some of of

new that getting iStock that products. could or be customers could annual carte customers, into be So smaller à we’re both that previously on who those la monthly subscription were consuming

markets, EMEA. traction starting really in growth Importantly, we’re APAC, our make also to of some specifically LATAM, some

key new in might geographic subscriptions growth driving talked one We’re And expansion of remember, our markets. being we’ve those actually levers. you about

and tapping see subscription. that into with those it doing we’re we’re So, to markets, we’re excited annual

we’re growth and metric the So, happy seeing. with we’re really that this

You PA our of be to mentioned well over a continues PA. third revenue.

seeing We’re any there. deterioration not

customers. to we to still continue customers, We opportunity subscription, well. well, premium in largest as there which and as our continue growth access largely expand our growth enterprise to in have larger have We is see PA,

Craig Peters

our revenue of subscription. larger as I would And average just add, historically, kind that been at Mark, per customers into more converted you subscriber, have look our Yes.

of so, has And the subscribers been opportunity to side add of the therefore, kind continue in spending to customer smaller things.

on increasingly and So businesses, emphasis Unsplash. medium-sized small businesses, through now iStock

seeing are lower we’re download lower those products. -- products, So, spend that’s why

commitment. or loss It’s it get not that’s in But the on And customer but subscriber so shift positive per on revenue the bring those to to of we’re through subscriptions, side. Jen terms opportunity that’s where higher commitment, subscribers the the aggregate as due average of more getting does the more larger access premium spend down, about in per highlighted.

Operator

line question next of with Carpenter Cory from Our comes JPMorgan. the

Cory Carpenter

NVIDIA the for one you, you Craig, one product I commercializing ways Craig, the Anything in different on and just had you’re around that’s limited partnership in thinking ways Jen. monetize? Maybe and for testing? expand to different about the could

Hollywood frame or the creative? editorial, And is then, for any again, Jen, mostly it the is Thank impact you? big is for in how way vertical And felt also you, entertainment strike that in just on impact you. to

Craig Peters

the Yes. up Cory, pick second. to I’m and hand happy Jen first to on the

we’re been when bring So, viable. product with AI. are And going It that kind I’ve quite view for taking we is long-term one with commercially mentioned, NVIDIA, of time respect we working very some a to -- on it now. it’s that be a is this NVIDIA to to market, have to

do brands, viable? built by I third-party mean respect respect to commercially what It’s likeness. So property. third-party and intellectual to names built It’s

produced, So means customers won’t issues basis. it essence, the on Getty gave into knowing of making the in terms back run that outputs that of our resulting will the to be creator-responsible. for that commercial will that’s we payment be us use the incredibly customers, bearing using which there’s it’s risk the our Images it high It’s on. sure any content can creators indemnified will trained quality. content a In be you It actually and is

that partnership And takes of getting of a time, to takes NVIDIA. lot a lot solution work, with

will and share generate commercialization share resulting Images predominant and customers that the Getty additive product can’t websites, we generate. data revenue. I and force to that to that a path the it’s a revenue. will be the have think NVIDIA, not into go bring I’ve specific I our the mentioned we through long-term through business in the of that’s that, that at our And -- we and partnership. revenues terms product of the will our that it’s offering in while our agreement we will of we suite And outset, with go-to-market terms licensing deal. is sales a In It’s

Now, to positioned generate the out haul, compete to is generate revenues it’s one material of it’s a the the over revenue space but not in will and think over the long of incredibly back that ton well going we haul gate, long And this long opportunities right the over think and long the business we something AI term. that’s to for overall the significant be generative we right structure for business. into structure relationship think term as the has over the continues the that

And then, Jen, up the if side the there. pick you want entertainment impacts to and on things of

Jen Leyden

Yes.

as archives. sort of a for downloads revenue. entertainment, So mix editorial the of way know, entertainment entertainment revenue is for we we’ve And then and news, And of Cory, see because sport, sports customers subscription, on subscription. and got that in of sits you about editorial between can third the our news our obviously space, within

suffice one-third entertainment and hard that So entertainment, but point that entertainment of might to content. amount to to of given of when that different of is about that it attribute the sports, quantify But again, can piece to downloads you equal say we at typically news see just any shift a parts, think specific shifting revenue into in revenue. our right, which we locked-in XX% sitting if over down, temper revenue you revenue with that have same means entertainment into subscriptions,

piece that we clients, end which our the see totality we that impacts of as assumed film media production, to that that year, as conservatively about, entertainment broadcast our just through entertainment business, right? fit on said, not that talked space. all strike that we of slow clients the the have media an That goes way So impact doesn’t in necessarily in start has also but down, to

Craig Peters

that you as if the at it Yes. And editorial impacts add, look -- creative. and I both numbers, would Cory, just you

would they as up. So, the telling be content creative so example and consume a shows, of an talk will lot the jokes the setting they’re shows, talk evening late-night things

both but does where example segment largely to can we you segment content. that an and it date go-forward through content to creative, what would on does flow media expect production and editorial be see impact I concentrated media impact, than impact will creative addition basis, the of that’s editorial say it business. it impact, content a a so, within more how but And creative actually is to in parts

Operator

with from Our Tim the line next question Macquarie. Nollen of comes

Tim Nollen

I the to that’s I this wonder but you little to more if you color it’s what just on at XX-Q to. you it if material, if do. point could the said in not is a know bit give just give indication any filing, looking us could delay as possible us related

mentioned And are already. that of first litigation the in costs addition, you half most

situation. at of updates that any you least give us on could timing So, the that Thanks.

Craig Peters

Jen, I’ll you to refer on those.

Jen Leyden

Yes. Hi, Tim.

inspection audit of the XXXX a in on to of requiring from in So, financial some about Q delay release, prepared delay statements. just earnings additional all the talk of the work auditors response heard disclosed our time is filing, our comment us is of PCAOB the you as also was the to arising remarks, do which independent additional That in due a audit processes. to papers our

independent not of of statement. aware as we’re today, our importantly, financial So for any misstatement material auditors have of, XXXX advised us the nor

to them can auditors possible. add teams that I and information that working closely with provide are to judiciously and So, complete our going as independent that’s assistance our as all what their is to any work help

then that And litigation, your was second the on question.

of indication quarter. the costs, concentrated second with the largely first process, first more will there. the any do D&O insurance that with costs where that but absorb litigation and litigation comment concentrated is not litigation in we’re in has being an ongoing largely to in those that half, yes, of respect costs to half that start got specifically That we’ve fact to are in the making we balance to So kick

litigation. commentary more So, on insurance that’s and where kicking about cover in not starting we to It’s with costs. those that a sit

Craig Peters

predict is this And did thing have just the Actually, faster thought. hopefully has litigation. and would highly case say cases the to put been docket. a good that’s that move actually pacing I it’s tough one predicted, we warrant to And than be through to it’s moving faster the think of it’s we to soon. a than we the But that bed we’ll would where thing concentrated that able

much So, more related of warrant things. the side to

Operator

question of with Brett Sachs. from Feldman next our And Goldman the comes line

Brett Feldman

if Craig, mind. could I you appreciate execution little that you you see. just elaborate Two, on Thanks. a don’t you -- would opportunities hope if the would more or

focused what we what questions I guess versus I’m benefit better to to this and were clients on them. initiatives if so already thinking to flight just blocking the and processes around and market does you So, examples, into in around tackling and a from more get drawing little board from opportunities maybe something relate the maybe is, that are getting off extent can

And second there the from then unique cycle we through heard enough specifically agency what’s question feeling to downstream, be about? business that thinking feeling spending. obviously throughout is agencies you’re you pressures in about this slowdown flowing might Is earnings your any is just or have or we’re that not tech that the other the exposure

Craig Peters

Thanks, Great. Brett.

On the I would well execution, executing again. are I mean that quite things first, we’re there say

drive we’re in we’re Jen the increased Language Natural lower management as think cost in world subscriptions AI, new on to making at continuing processing, terms more of the that seeing, of progress penetration I and again, well customers, consumption, the marketing our drive and efficiency levels. custom of an So mentioned to execution launch customers subscriptions, content, the continue doing as there, spend rest our

the well. lot a that doing is business things of So, there’s

expeditious front sales We need really to up view need we and to up my on the to that. manner, activities. where think along agreements our around move to we it’s more a close need to step outbound tighten I concentrated is

the in upon products new things It’s And or really dependent that services. so, focused that’s on. not of one new we’re

to generative over of things. more contribute item. that’s outcome. environment, And we’re AI doing to we’re XX% to more some Again, of the outcomes. the long-term the sales revenue It’s that’s combat about those what see starting to difficult expecting the the harder same And second a to in get year. not offering largely of we half a think need and side work We’re hand-to-hand you on

relative discounts candid conversations do customers performance. that with current evaluate challenge. agreements to to reflective those back we something in and talked you very discount is that levels and you what at got maybe segments be that the the And through that we’ve in work customers from of getting you’re getting how have towards some warranted about think spend adjust I maybe those in some go more where aren’t place some and to and you’ve had cases,

to So, strike, go on the the and basically we it’s can for need an strike sales continue or a don’t And to control We where one external really solve in execute we our can’t actors’ but environment. I front. up writers’ we game. think

it’s spend. think technology don’t the agency front, On just in I

in. media plays side been really where and what a from tech the product So, marketplace. the top the I PR our the And businesses, doing the seeing on media they’re lot is data ad that agencies And in in creative in think that seen with of okay business, to and and of segment seeing off is think been revenue, a their pullback they’re consulting I relative growth although volume of we’re in But tech. more what seeing growth really experiencing growth why which come things. really not side they’re lot they’ve and events we’ve of but seeing that’s seeing line they’ve the they’re side

of So on hopefully, the the you that color things. agency gives side

Operator

the conclude And and time. have the participation. And today’s session. this disconnect -- this at gentlemen, lines you for and you conference, concludes also does question-and-answer your your Thank the this may we reached ladies end of

Craig Peters

Thanks, everybody.

Getty Images (GETY) 14 Aug 232023 Q2 Earnings call transcript