Stock photography and footage provider Shutterstock (NYSE:SSTK) will be reporting earnings tomorrow before market hours. Here's what you need to know.
Last quarter Shutterstock reported revenues of $215.3 million, up 8.11% year on year, beating analyst revenue expectations by 1.77%. It was a solid quarter for the company, with impressive growth in its user base and a decent beat of analysts' revenue estimates. The company reported 0.56 million users, up 55.7% year on year.
Is Shutterstock buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Shutterstock's revenue to grow 3.65% year on year to $214.4 million, slowing down from the 8.93% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.01 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at Shutterstock's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Teladoc delivered top-line growth of 10.1% year on year, beating analyst estimates by 0.5% and Overstock reported revenue decline of 20.1% year on year, exceeding estimates by 3.06%. Teladoc traded up 7.59% on the results, Overstock was up 5.05%. Read our full analysis of Teladoc's results here and Overstock's results here.
There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 9.23% over the last month. Shutterstock is up 2.1% during the same time, and is heading into the earnings with analysts' price target of $87.21, compared to share price of $50.64.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.