pancakes

MicrostockGroup Sponsors


Author Topic: Latest results  (Read 3068 times)

0 Members and 1 Guest are viewing this topic.

« on: May 04, 2016, 09:32 »
+4
http://seekingalpha.com/pr/16475815-shutterstock-reports-first-quarter-2016-financial-results

Something for those that believe in facts rather than anecdotes. I'm surprised Adobe don't seem to be making any inroads the bad news for us contributors is that the portfolio growth still far exceeds earnings growth so more hard work to stand still but its not armageddon 


« Reply #1 on: May 04, 2016, 09:48 »
+6
Increase in paid downloads mainly due to new customers. They can thank Pond5 for that  :D
Oringer says they are adding more high quality content than ever before, that's far from the truth, I see a lot of garbage being approved.

« Reply #2 on: May 04, 2016, 10:00 »
+3
They seem to think size of collection is of itself good at some point they might wake up and wonder how much its costing them to maintain millions of pics that never sell and their customers may get fed up with wading through the trash.

« Reply #3 on: May 04, 2016, 12:21 »
+4
Some press coverage - seems to be viewed as a positive report. Price pressure produced a 10 cent drop in per download revenue. If Adobe's hurting them, it's not immediately obvious?

http://www.fool.com/investing/general/2016/05/04/shutterstock-comes-into-focus-with-strong-earnings.aspx

http://sonoranweeklyreview.com/shutterstock-q1-exceeds-projections-on-eps-and-revenues-affirms-revenue-guidance-nysesstk/

I have to guess that the collection size is just for marketing messages (and it's a risky strategy IMO to rely on your search to hide the piles of rubbish from buyers). Messages of the "We're bigger than Adobe Stock" variety - some analysts had been describing the two libraries as essentially the same content while AdobeStock was cheaper. If you can say that yours is 50% larger or twice the size, perhaps that's seen as an effective way to deal with that investor worry?

« Reply #4 on: May 04, 2016, 12:25 »
+1
81 million images already? OMG!

« Reply #5 on: May 04, 2016, 13:01 »
+5
Sometime this year they will have 100 million files.

I am amazed I still have sales.

« Reply #6 on: May 04, 2016, 13:16 »
0
Sometime this year they will have 100 million files...

Sooner rather than later...

SHUTTERSTOCK STATS: 84,834,254 royalty-free stock images / 857,236 new stock images added this week

At 2.5 to 3 million images a month (ish) they should hit the 100 million mark around Independence Day?

« Reply #7 on: May 04, 2016, 13:28 »
+2
Some press coverage - seems to be viewed as a positive report. Price pressure produced a 10 cent drop in per download revenue. If Adobe's hurting them, it's not immediately obvious?

http://www.fool.com/investing/general/2016/05/04/shutterstock-comes-into-focus-with-strong-earnings.aspx

http://sonoranweeklyreview.com/shutterstock-q1-exceeds-projections-on-eps-and-revenues-affirms-revenue-guidance-nysesstk/

I have to guess that the collection size is just for marketing messages (and it's a risky strategy IMO to rely on your search to hide the piles of rubbish from buyers). Messages of the "We're bigger than Adobe Stock" variety - some analysts had been describing the two libraries as essentially the same content while AdobeStock was cheaper. If you can say that yours is 50% larger or twice the size, perhaps that's seen as an effective way to deal with that investor worry?


Since that man exists, his main argument is "mine is bigger"
Nothing changed

« Reply #8 on: May 04, 2016, 13:47 »
0
I am seeing a lot of growth in FL sales and no real drop in SS sales, so it adds up. I suspect there's enough to go round as long as IS continues to plummet. When the other sites have soaked up all those buyers then we'll see what's what.

« Reply #9 on: May 04, 2016, 16:18 »
0
Transcript of the call with analysts

http://seekingalpha.com/article/3971237-shutterstock-sstk-jonathan-oringer-q1-2016-results-earnings-call-transcript

"Content matters is something you've heard us say consistentl...With over 100,000 contributors submitting content, we continue to build scale while ensuring our content remains fresh and hot. During the first quarter, we added nearly 10 million high-quality inputs (03:00) for our royalty-free library, twice as many as we added in Q1 of 2015. And Shutterstock now provides over 81 million photos, vectors, illustrations to customers of all types and sizes.

We also continued to expand our unique video offerings with over 4 million video clips, 62% growth from a year ago. ... it's not just the size of the library, but also the quality and diversity of our offering that's being embraced by the creative community."

"Over 1.5 million customers downloaded content over the past 12 months, and we continue to see remarkably high level of revenue retention, with rates exceeding 95% over the past year."

"We now have nearly 28,000 Enterprise [accounts] (06:42), up 80% from the same period a year ago."

"We also saw a 23% increase in paid downloads, primarily from new subscribers but also from a higher level of activity across our existing subscriber base, in conjunction with the new monthly download limit we introduced during the second quarter of 2015"

"Currently, 40% of our revenues are from customers in North America, 34% from European customers, and 26% from the rest of the world. Each of these regions is growing at double-digit growth rates for us, and we continue to see strong momentum in nearly every country and region, including most notably, India, Korea, and Germany."

Jon Oringer was asked about getting customers to adopt the new Editor tool and his answer covered their "tech migration" as well:

"One of the things that's holding us back right now that we continue to work on and we'll be done with a lot of this, this year is our tech migration. We're spending a lot of effort right now moving our tech stack to a services-based architecture set. All of our property and all of our product can be within this one tech stack, and we can use all of our available technologies across all of our products. So, while we're even focused on doing that, we still released some amazing stuff like Editor and like Reverse Image Search. We continue to learn, and we're going to continue to innovate from there."

An analyst asked about Enterprise as a percentage of total revenue and the CFO said:

"What we've said in the past was it was in the low to mid-20%s. It accelerated from there to be between slightly over 25%. And we certainly expect it to continue to grow, given the opportunities we see both at existing and new customers."

Talking about markets in which SS is growing, the CFO said:

"So, as it relates to some of the markets in which we're expanding, Korea and India ...We have not historically been had a large business there. And so, our growth rates have been significant. We're just hitting a great user base in terms of both larger-sized enterprises as well as small and medium-sized businesses in those markets.

We have been relatively strong in Germany, and we continue to see strength. We have an office in Berlin, aggressively pursue the European market with our team there and continue to see opportunities across both Western and Eastern Europe to further expand. Asia-Pacific remains a significant opportunity,...."

« Reply #10 on: May 04, 2016, 17:50 »
0
Wow, those are all very positive numbers.  Their stock price has been going up nicely the past 6 weeks, now at just over $40.  That is still about 74 times earnings, which seems high to me, but maybe reasonable if they keep growing at the same pace.  Apparently Adobe hasn't cut them very deeply if at all.

« Reply #11 on: May 04, 2016, 23:46 »
0
74 times earnings is still crazy but not uncommon for tech stocks. It so hard to get a handle on stock price because the whole sector is insanely overpriced. If and when interest rates rise expect a crash across the board.

« Reply #12 on: May 05, 2016, 08:42 »
0
If and when interest rates rise expect a crash across the board.

You are probably right about that and it will probably happen later this year (although in the US I suspect they may wait until after the Presidential election in November).  The relationship between stock prices and interest rates in interesting.  I remember during 2007 or so when things were getting bad and they kept cutting interest rates, stocks would shoot up because interest was lower and that's good for business.  But I always thought, "Wait a minute, the reason they lowered the rate is because the economy is bad - the stock market should be going down, not up!".  Of course eventually it did crash.  Now the reverse is likely to happen - they will raise rates because the economy is improving, which should be good for business and positive for stocks, but the market will go down because higher interest rates are bad for business.  It's a very strange system.

« Reply #13 on: May 05, 2016, 11:11 »
0
Some press coverage - seems to be viewed as a positive report. Price pressure produced a 10 cent drop in per download revenue. If Adobe's hurting them, it's not immediately obvious?
Messages of the "We're bigger than Adobe Stock" variety - some analysts had been describing the two libraries as essentially the same content while AdobeStock was cheaper. If you can say that yours is 50% larger or twice the size, perhaps that's seen as an effective way to deal with that investor worry?

in the redded line, there is another way to think about it...
ie. who is fooling whom... by cannibalizing their portfolio to adobe???

They seem to think size of collection is of itself good at some point they might wake up and wonder how much its costing them to maintain millions of pics that never sell and their customers may get fed up with wading through the trash.

in the redded line, there is also another way to think about it...
ie. how long can a new or old contributor be happy about 100% and no sales ???
if that is the only reason why one would submit photos or vectors to a site,
than there have a lot of other agencies to the right of this page to submit
since they too will get you zero downloads.

the last say still depends on the contributor. whether or not ss is letting in "garbage" by newbies
and "mass-rejecting" oldies. anyone would stop submitting their work if they keep getting 100% approval and see zero downloads. 

would you not???

« Reply #14 on: May 05, 2016, 12:31 »
0
If and when interest rates rise expect a crash across the board.

You are probably right about that and it will probably happen later this year (although in the US I suspect they may wait until after the Presidential election in November).  The relationship between stock prices and interest rates in interesting.  I remember during 2007 or so when things were getting bad and they kept cutting interest rates, stocks would shoot up because interest was lower and that's good for business.  But I always thought, "Wait a minute, the reason they lowered the rate is because the economy is bad - the stock market should be going down, not up!".  Of course eventually it did crash.  Now the reverse is likely to happen - they will raise rates because the economy is improving, which should be good for business and positive for stocks, but the market will go down because higher interest rates are bad for business.  It's a very strange system.
Well when people can't get a return on their savings from the banks, thanks to low interest rates, they look for other riskier investments, like tech stocks. When rates go back up it isn't worth the risk anymore and down come the stocks.


 

Related Topics

  Subject / Started by Replies Last post
4 Replies
2375 Views
Last post April 07, 2008, 09:16
by Alatriste
0 Replies
859 Views
Last post March 26, 2018, 03:02
by Leo
2 Replies
1410 Views
Last post October 18, 2018, 17:00
by Uncle Pete
3 Replies
757 Views
Last post February 11, 2019, 09:13
by leremy
28 Replies
2206 Views
Last post May 12, 2019, 03:47
by FrankyDM

Sponsors

Microstock Poll Results