Shutterstock (SSTK) Q3 Earnings Report Preview: What To Look For

Radek Strnad /
2023/10/30 3:05 am EDT

Stock photography and footage provider Shutterstock (NYSE:SSTK) will be reporting earnings tomorrow. Here's what to look for.

Last quarter Shutterstock reported revenues of $208.8 million, flat 0.95% year on year, missing analyst expectations by 2.6%. It was a mixed quarter for the company, with impressive growth in its user base but a miss of analysts' revenue estimates. The company reported 0.56 million users, up 51.1% year on year.

Is Shutterstock buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Shutterstock's revenue to grow 5.08% year on year to $214.5 million, in line with the 4.97% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.

Shutterstock Total Revenue

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 four times over the last two years.

Looking at Shutterstock's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Teladoc delivered top-line growth of 7.99% year on year, missing analyst estimates by 0.43% and Snap reported revenues up 5.32% year on year, exceeding estimates by 7.04%. Teladoc traded down 4.3% on the results, Snap was down 3.7%.

Read our full analysis of Teladoc's results here and Snap's results here.

The technology sell-off has been putting pressure on stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 9.17% over the last month. Shutterstock is down 11.5% during the same time, and is heading into the earnings with analyst price target of $71.3, compared to share price of $33.91.

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.

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The author has no position in any of the stocks mentioned.