How did SSTK's Q4 earnings surprise impact annual performance?

Shutterstock's (SSTK) Q4 earnings surprise had a positive impact on its annual performance, contributing to a stronger financial outcome for 2024.

1. Q4 Earnings Surprise:
   • Shutterstock reported quarterly earnings of $1.31 per share for Q3 2024, surpassing the Zacks Consensus Estimate of $1.06 per share.
   • This represents a significant earnings surprise of 23.5%, indicating that the company's performance exceeded market expectations.
2. Annual Performance Impact:
   • The earnings surprise in Q3 contributed to Shutterstock's annual performance, as the company's EPS for the year was higher than expected.
   • The estimated EPS for FY2024 was $4.22-4.31, compared to the consensus EPS estimate of $3.58.
   • This suggests that the company's actual performance for the year was stronger than anticipated, with the Q4 earnings surprise playing a role in this outcome.
3. Revenue and Profitability:
   • Shutterstock's revenue for the quarter was $250.6 million, marking a 7.4% year-over-year increase.
   • The company reported an adjusted EBITDA of $70 million, with a 27.9% margin.
   • These figures, coupled with the earnings surprise, indicate that Shutterstock's strategic initiatives are yielding results, leading to improved profitability and financial health.
4. Market Reaction and Outlook:
   • The market reacted positively to Shutterstock's earnings report, reflecting investor confidence in the company's performance and outlook.
   • Shutterstock's updated FY2024 earnings guidance suggests a favorable view of its prospects, with revenue guidance aligning closely with analyst estimates.

In conclusion, Shutterstock's Q4 earnings surprise had a significant impact on its annual performance, contributing to higher EPS and reinforcing market confidence in the company's strategic direction and financial outlook.