Shutterstock bolsters offerings with Envato acquisition By Investing.com

NEW YORK – Shutterstock , Inc. (NYSE: NYSE:), a prominent global provider of creative content, has completed its acquisition of digital assets company Envato Pty Ltd., significantly expanding its subscription base and content library.

The deal, which was finalized today, more than doubles Shutterstock’s subscriber count to 1.15 million and enhances its revenue from diverse creative content, including video, audio, and graphics.

The acquisition brings Envato Elements, known for its unlimited multi-asset subscription service, under Shutterstock’s umbrella, extending its reach to new audiences such as freelancers, hobbyists, small businesses, and agencies.

With the inclusion of Envato’s assets, Shutterstock’s content library has grown by 10 million images, 6 million videos, 1 million audio clips, 500,000 templates, and 200,000 graphics and fonts.

This strategic move also diversifies Shutterstock’s offerings into new content types, encompassing code, web themes, product mock-ups, and various templates suitable for slides, social media posts, gaming, podcasts, and print-on-demand services. Moreover, Envato has unveiled a new visual brand identity, signifying a commitment to its creative community and marking a milestone in the company’s evolution.

The acquisition is expected to bolster Shutterstock’s position in the creative content market, providing customers with an even broader range of high-quality 3D models, videos, music, photographs, vectors, and illustrations. Shutterstock’s platform, fueled by a global network of creators and a focus on data-driven product innovation, aims to be the go-to source for licensing a diverse collection of content.

While the press release includes forward-looking statements, these are subject to various risks and uncertainties that could cause actual results to differ from projected outcomes. This information is based on a press release statement and does not imply any endorsement of claims or future performance.

Shutterstock’s latest move underscores its dedication to expanding its content offerings and solidifying its market position as a comprehensive resource for creative storytelling. With the integration of Envato’s assets and subscriber base, Shutterstock is poised to cater to an even wider audience of content creators and marketers.

In other recent news, Shutterstock, Inc. has announced significant developments. The company reported exceeding revenue and EBITDA expectations for Q1 2024 with figures of $214 million and $56 million respectively.

Moreover, Shutterstock unveiled plans to acquire Envato, a move anticipated to bolster its product offerings and expand audience reach. The acquisition is expected to be finalized in the third quarter of 2024.

Shutterstock also announced the appointment of Jaime Teevan, Chief Scientist and Technical Fellow at Microsoft (NASDAQ:), to its board of directors. Teevan’s expertise in artificial intelligence (AI) is expected to significantly contribute to Shutterstock’s strategic direction, particularly in the AI field.

Changes to CEO Paul J. Hennessy’s compensation were disclosed, including a new equity award intended to incentivize his continued service until July 1, 2026. The award comprises performance stock units and time-based restricted stock units, with performance goals reflecting key business metrics such as adjusted EBITDA margin and revenue growth targets.

Analyst firms Truist Securities and Needham responded to these developments by adjusting their price targets for Shutterstock. While Truist Securities lowered its target from $70 to $65, maintaining a Buy rating, Needham raised its target from $60 to $65, also maintaining a Buy rating. Both firms expressed confidence in Shutterstock’s ability to reverse a recent decline in its content segment.

InvestingPro Insights

Shutterstock, Inc. (NYSE: SSTK) has recently fortified its competitive edge in the creative content arena through the acquisition of Envato Pty Ltd. As the company integrates Envato’s assets, Shutterstock’s financial health and market position become focal points for investors and analysts alike.

According to InvestingPro data, Shutterstock boasts a robust market capitalization of $1.48 billion, reflecting investor confidence in its business model and growth prospects. The company’s commitment to shareholder returns is evident in its track record of raising dividends for four consecutive years, aligning with a current dividend yield of 2.95% as of the last dividend ex-date on May 30, 2024.

Shutterstock’s prudent financial management is highlighted by its ability to hold more cash than debt, a reassuring sign for investors concerned about the company’s liquidity and long-term solvency, especially following a significant acquisition like that of Envato. An InvestingPro Tip points to Shutterstock’s capacity to cover interest payments comfortably with its cash flows, further underlining its fiscal responsibility and operational efficiency.

On the earnings front, Shutterstock’s P/E ratio stands at 15.72, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 18.36. While this indicates a high valuation relative to near-term earnings growth, the PEG ratio of 1.11 suggests a balance between the stock price and expected earnings growth, which might be appealing for growth-oriented investors. Moreover, analysts predict the company will maintain profitability this year, a sentiment backed by Shutterstock’s positive performance over the last twelve months.

For investors seeking a deeper dive into Shutterstock’s financial metrics and future performance, additional InvestingPro Tips are available, providing a comprehensive analysis of the company’s strategic moves and their potential impact on the stock. To explore these insights, visit the dedicated Shutterstock page on InvestingPro at https://www.investing.com/pro/SSTK. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable investment information.

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