Shutterstock released their second quarter 2017 results and they are miserable, which is why they're down 17% on NYSE today.

Their results in a nutshell:

Revenue increased 8% to $134.0 million
Income from operations decreased 69% to $3.3 million
Net income decreased 58% to $3.1 million
Adjusted EBITDA decreased 19% to $18.3 million
Diluted EPS decreased 55% to $0.09 per share
Key Operating Metrics             

Paid downloads decreased 2%
Revenue per download increased 9%
Image collection expanded 57% to 144.7 million images
Video collection expanded 55% to 7.6 million clips

More on: http://investor.shutterstock.com/phoenix.zhtml?c=251362&p=irol-newsArticle&ID=2290950

Struck by their explanation of the plummeted income from operations: "driven by an increase in operating expenses primarily due to higher royalty costs associated with increased levels of revenue, increased spend in marketing and increased administrative expenses." My royalties at SS are the lowest during the last four or 5 months in the last 2 years, despite constant and significant increase of my portfolio.

Similarly, explanation for low net income: "due to the decline in operating performance and a higher-effective tax rate, which was partly offset by non-operating transactional gains related to foreign currency as compared to the second quarter of 2016." Time to start worrying about the "leading global technology company offering a creative platform for high-quality assets, tools and services", with their own outlook in mind:

"The Company's current expectations for the full year 2017, reduced from those previously announced, are as follows:

Revenue of $535-545 million, down from $545-560 million
Income from Operations of $30-40 million, down from $47-52 million
Adjusted EBITDA of $85-$95 million, down from $105-110 million
Non-cash equity-based compensation expense of approximately $30 million
Effective tax rate in mid-30's%
Capital Expenditures of approximately $45 million, including capitalized labor of approximately $20 million"

Not surprised at all!

did they say how many of the vultures short their stocks in anticipation for a killing
or how many of those who insisted on $cr*wing the contributors have already taken profit and now gone to another stock
to cannibalize???

not to forget their employees benefit. time for another bunch of good husbands to announce they are going to "quit" to  "spend more time with family" 

...and according to this phone conference, the number of subscription dls per buyer dropped and dls are down.

Isn't it better for them when the buyers take fewer dls from their subs, as they haven't had to pay out to contributors.
Unless they don't renew.
But I see they're going to start smaller packages, presumably charging more per dl. Are they going to share that with the contributors?

Quote from: Shelma1 on August 02, 2017, 13:46

...and according to this phone conference, the number of subscription dls per buyer dropped and dls are down.

Isn't it better for them when the buyers take fewer dls from their subs, as they haven't had to pay out to contributors.
Unless they don't renew.
But I see they're going to start smaller packages, presumably charging more per dl. Are they going to share that with the contributors?

They're already offering smaller subs packs, which is what led to fewer dls per buyer. Whatever changes they're making aren't having positive results for anyone, it seems...not even them.

did they say how many of the vultures short their stocks in anticipation for a killing
or how many of those who insisted on $cr*wing the contributors have already taken profit and now gone to another stock
to cannibalize???

not to forget their employees benefit. time for another bunch of good husbands to announce they are going to "quit" to  "spend more time with family" 

quoting: Cannibalizing other sites!!   and thats exactly whats happening, there are many examples without mentioning any names!

Oh dear, that's bad news. It's pretty much the last man standing among the sites I've supplied. I guess we're approaching "game over".

Not sure Simon?? something happened there. Yesterday it was like being back to normal over 100 bucks in daily earnings and without any EL's. Something might have changed??  hang in there

It's more likely Oringer will be ousted in a corporate coup and replaced with a bean counter

The boat is sinking....?

Poor by shareholder standards, but they're pretty decent. I don't think they can keep growing the way they did since the market is struggle to grow any larger than it already is. I just hope they don't cut contributor rates in the future.

The market doesn't grow as the buying power hasn't changed since few years back. Lowering contributor rates would be just another shoot in the foot as sales numbers will not increase, whatever they forecast!

My reading is they have lost sight of the core part of their business ..people need to be able to find images they want to buy and they have lost control of costs......they have been seduced by the consultant talk of shiny new products with higher margins.

144.7 million images X 57% annual growth = 1 billion images in less than 5 years.  They had less than 5 million when I started. 

We need to figure our how to compete in a billion image environment.  Or accept being buried.