Stock photography and footage provider Shutterstock (NYSE:SSTK) will be reporting earnings tomorrow before market open. Here's what to look for.
Last quarter Shutterstock reported revenues of $233.2 million, up 14.3% year on year, beating analyst revenue expectations by 8.8%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a decline in its user base. The company reported 551,000 users, down 9.2% 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 2.8% year on year to $223.9 million, slowing down from the 5.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 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 four times over the last two years.
Looking at Shutterstock's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Pinterest reported revenues up 11.9% year on year, missing analyst estimates by 0.9%. Pinterest was down 21.4%.
Read our full analysis of Pinterest's results here.
There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 4.1% over the last month. Shutterstock is down 10.2% during the same time, and is heading into the earnings with analyst price target of $60.8, compared to share price of $45.
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