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Getty Images (GETY) Q3 Earnings Beat, Revenues Down Y/Y

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Getty Images (GETY - Free Report) reported third-quarter 2023 earnings of 4 cents per share, which beat the Zacks Consensus Estimate by 33.33%. The company reported break-even earnings in the year-ago quarter.

It reported revenues of $229.3 million, which declined 0.5% year over year but beat the consensus mark by 0.55%.

On a trailing 12-month basis, total purchasing customers declined 1.3% year over year to 826K.

On a trailing 12-month basis, total active annual subscribers jumped 88.4% year over year to 202K. Over the same period, paid download volume was 95 million, up 1%.

Getty Images had 525 million images in its collection as of Sep 30, 2023.

Getty Images Holdings, Inc. Price, Consensus and EPS Surprise Getty Images Holdings, Inc. Price, Consensus and EPS Surprise

Getty Images Holdings, Inc. price-consensus-eps-surprise-chart | Getty Images Holdings, Inc. Quote

Quarter Details

Creative revenues accounted for 63.3% of revenues. The figure of $145.2 million was unchanged year over year.

Editorial revenues accounted for 34.9% of revenues. Segment revenues declined 2.3% year over year to $79.9 million in the reported quarter.

Other revenues surged 22.2% year over year to $4.1 million and contributed 1.8% of reported revenues.

Adjusted EBITDA was $80.3 million, up 3.4% year over year.

In third-quarter 2023, selling, general and administrative expenses increased 6.2% year over year to $97.3 million.

Operating income declined 92.2% year over year to $3.9 million.

Balance Sheet

As of Sep 30, 2023, cash and cash equivalents were $113.5 million. Getty Images has $150 million available through its revolver.

As of Sep 30, total debt was $1.383 billion, which included $300 million in senior notes and a term loan balance of $1.083 billion.

In third-quarter 2023, net cash provided by operating activities was $25.2 million. Free cash flow was $12.8 million.

Outlook

For 2023, Getty Images expects revenues between $900 million and $910 million.

Adjusted EBITDA is now expected between $287 million and $295 million.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

NVIDIA (NVDA - Free Report) , ASANA (ASAN - Free Report) and Snowflake (SNOW - Free Report) are some better-ranked stocks that investors can consider in the broader sector.

While NVIDIA sports a Zacks Rank #1 (Strong Buy), ASANA and Snowflake carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA’s shares have jumped 239.8% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.

ASANA shares have gained 52.3% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.

Snowflake shares have returned 15.5% year to date. SNOW is set to report its third-quarter fiscal 2024 results on Nov 29.

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