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Stock photography and footage provider Shutterstock (NYSE:SSTK) will be reporting earnings tomorrow morning. Here’s what you need to know.
Shutterstock beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $220.1 million, up 5.4% year on year. It was a mixed quarter for the company: Its paid downloads declined and fell short of Wall Street's estimates. It reported 33.4 million service requests, down 13.2% year on year.
Is Shutterstock a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Shutterstock’s revenue to grow 3.2% year on year to $240.8 million, slowing from the 14.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shutterstock has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Shutterstock’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.
Read our full analysis of Netflix’s results here and Coursera’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices flat over the last month. Shutterstock is down 17.2% during the same time and is heading into earnings with an average analyst price target of $51.25 (compared to the current share price of $29.28).
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