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Author Topic: Shutterstock Payout $83,605,000 In 2014  (Read 3711 times)

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« on: March 10, 2015, 10:43 »
+4
Shutterstocks report yesterday of paying out $83,605,000 in royalties in 2014 raises a few interesting questions. While it is a lot of money it is only 25% of $328 million.  Shutterstock has said they paid out about 28% of revenue collected in three of the four quarters in 2014 and about 30% in the Q3 2014.

It turns out that the $83,605,000 only includes Shutterstock sales. It does not include Bigstock, Offset or Weddam. If the $83 million is really 28% of revenue total Shutterstock sales would be about $298 million, not $328 million, or a $30 million difference. About can mean a lot, but I think it is safe to say that the combined revenue of Bigstock, Offset and Webdam was in the range of $30 million. It might even be more if the average payout was above 28% (remember that 30% quarter).

Based on everything they have been saying, I think they are earning very little from Webdam so about $30 million is split between BigStock and Offset. Any guesses as to which generates the most?

I also understand from Shutterstock PR that royalty rates for Offset are higher than our norm, due to the unique content somewhat above 40% on average. Also, they say they havent broken out the royalty rates for Bigstock which indicates they might be lower than 28%.

Any thoughts?



« Reply #1 on: March 10, 2015, 11:17 »
0
Where did you get the quote about offset paying 40% or more?  A google search does not find that quote.
« Last Edit: March 10, 2015, 11:44 by tickstock »

Semmick Photo

« Reply #2 on: March 10, 2015, 11:18 »
+9
I'll trade my thoughts for one year of unlimited access to your articles.  ;D

« Reply #3 on: March 10, 2015, 11:25 »
+2
I'll trade my thoughts for one year of unlimited access to your articles.  ;D

LOL!

« Reply #4 on: March 10, 2015, 11:38 »
0
Wow I'm earning 0.015% of Shutterstock's payouts :D

Shelma1

« Reply #5 on: March 10, 2015, 11:50 »
+10
This would be great news if they had 83 contributors.

Dook

« Reply #6 on: March 10, 2015, 11:57 »
+1
This info means nothing to me, honestly. I have no slightest idea if it's good, bad or whatever. They could easily say $ 8,000,000, or $800,000,000, I wouldn't see a difference.

« Reply #7 on: March 10, 2015, 12:20 »
+3
Shutterstocks report yesterday of paying out $83,605,000 in royalties in 2014 raises a few interesting questions. While it is a lot of money it is only 25% of $328 million.

I believe you are forgetting the expenses of running the business

« Reply #8 on: March 10, 2015, 12:26 »
+3
Most companies spend more than 28% to produce their products or services. I don't know if the are bragging or complaining.

« Reply #9 on: March 10, 2015, 12:40 »
+1
Tickstock: I got the quote from Shutterstock Public Relations in answer to my question.


« Reply #10 on: March 10, 2015, 13:51 »
0
I do not see number of contributors in this report or even better growth in  number over the years.

« Reply #11 on: March 10, 2015, 13:58 »
+1
I do not see number of contributors in this report or even better growth in  number over the years.

right but I am sure it went up and a lot, you just don't go from 200k to 400k files approved per week with the same number of contributors

« Reply #12 on: March 10, 2015, 14:49 »
-1
This would be great news if they had 83 contributors.

...and we were all one of the 83 :)  I actually see this as the main issue at least for my grumpiness. Too many contributors just exacerbates an already painful commodity model. Only way to beat it is to get and stay better.

Semmick Photo

« Reply #13 on: March 10, 2015, 15:00 »
0
Been thinking about the 25% and 28%. They could still pay us 28% of the actual sales, because the % is only for ODDs, SODs. Subs and ELs are fixed.

What is not fixed is the amount of images are downloaded from the monthly purchased subscription quota. Thats where SS makes money, and that will vary from buyer to buyer from month to month. So that revenue or take rate will vary with it.

Based on those arguments I think you cant compare the 25% in the report and the statement that they pay out 28% to contributors.

And as Luis says, they have a lot more cost than royalty pay out.

My thoughts? You are making wrong assumptions. But then again, I could be wrong as well.

« Reply #14 on: March 10, 2015, 15:12 »
0
$83,605,000 for 1000 contributors with year income 83.000$

65.000 contributors have ss?

« Reply #15 on: March 10, 2015, 16:34 »
+1
Good numbers.  Approximately 30% for suppliers, 30% to run the business, 30% for shareholders, 10% for reserve.  Seems very reasonable to me.

« Reply #16 on: March 10, 2015, 18:03 »
+4
Shutterstocks report yesterday of paying out $83,605,000 in royalties in 2014 raises a few interesting questions. While it is a lot of money it is only 25% of $328 million.

I believe you are forgetting the expenses of running the business

Contributors have expenses too!


« Reply #17 on: March 10, 2015, 18:31 »
+2
obviously the average # of images over the year is not 50,000,000 but if so that would be under .60 per image... whatever it really is, it seems that it is falling.

I am guessing that BS is not paying out 28% considering their severe RC scheme even if many artists are bridge to bigstocked into a higher rate than they would get for RC (is that still going on?)

« Reply #18 on: March 10, 2015, 23:01 »
0
Tickstock: I got the quote from Shutterstock Public Relations in answer to my question.

Interesting, Jon Oringer seemed to say just a few months ago that they paid around 30%.

Jonathan Oringer - Founder, CEO and Chairman
I'll take the royalty rate one first. I think that we've done a nice job I think of structuring royalties with our eye on the contributor. We want contributors to do well and make money be happy and bring us more content and part of that is kind of keeping things stable, at a good range. So, nearly all of our royalties are in a pretty tight range around that 30% payout rate.

That feels quite stable. If you look at a quarter-to-quarter, it's super strong and stable. Even as the newer piece of the business grow faster, whether it's offset or enterprise or even now music is getting going. We would not expect to see much variability in that percentage relative to revenue.

http://seekingalpha.com/article/2654535-shutterstock-inc-s-sstk-ceo-jonathan-oringer-on-q3-2014-results-earnings-call-transcript?page=5

There is also this quote where he seems to say some people get a higher rate but that will be lowered in the future:

Jonathan Oringer - Founder, CEO, and Chairman
We'll take the payout question first. So, it has been part of our strategy for quite some time to target a similar payout range across our entire business. So, we strive to do that when we structure new payout levels. We think it's good for the business. We think it's also fair and correct for our contributors. It encourages them to bring in new content and it has worked very well.

On occasion where we think it makes sense for everyone involved, we will be a little more strategic. Offset, for example, in some cases we have had higher payout ratios because we are building in new brand in our new business and bringing something new to the market. But even there over time our goal is to continue to pay a high fair rate, but directionally get a closer over time to the overall rate of the company. So that has really enabled us to keep that flat over time.

http://seekingalpha.com/article/2399635-shutterstocks-sstk-ceo-jonathan-oringer-on-q2-2014-results-earnings-call-transcript?page=5
« Last Edit: March 10, 2015, 23:05 by tickstock »

« Reply #19 on: March 11, 2015, 13:09 »
0
Shutterstocks report yesterday of paying out $83,605,000 in royalties in 2014 raises a few interesting questions. While it is a lot of money it is only 25% of $328 million.  Shutterstock has said they paid out about 28% of revenue collected in three of the four quarters in 2014 and about 30% in the Q3 2014.

It turns out that the $83,605,000 only includes Shutterstock sales. It does not include Bigstock, Offset or Weddam. If the $83 million is really 28% of revenue total Shutterstock sales would be about $298 million, not $328 million, or a $30 million difference. About can mean a lot, but I think it is safe to say that the combined revenue of Bigstock, Offset and Webdam was in the range of $30 million. It might even be more if the average payout was above 28% (remember that 30% quarter).

Based on everything they have been saying, I think they are earning very little from Webdam so about $30 million is split between BigStock and Offset. Any guesses as to which generates the most?

I also understand from Shutterstock PR that royalty rates for Offset are higher than our norm, due to the unique content somewhat above 40% on average. Also, they say they havent broken out the royalty rates for Bigstock which indicates they might be lower than 28%.

Any thoughts?


Did you factor in "non-cash equity-based compensation expense"

http://tinyurl.com/qcq8jgb

Uncle Pete

« Reply #20 on: March 15, 2015, 09:50 »
0
Still good reading...


Did you factor in "non-cash equity-based compensation expense"

http://tinyurl.com/qcq8jgb
« Last Edit: March 15, 2015, 09:59 by Uncle Pete »

« Reply #21 on: March 15, 2015, 09:57 »
0
Pete I think you are replying in the wrong thread but what I see is different.  This the text from what I'm being shown, there is nothing here or anywhere I can find that mentions 25/day. 

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Uncle Pete

« Reply #22 on: March 15, 2015, 10:00 »
0
Rescued too late, sorry. I was trying to move it to SS forum. Not fast enough.  :)

Pete I think you are replying in the wrong thread but what I see is different.  This the text from what I'm being shown, there is nothing here or anywhere I can find that mentions 25/day. 

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