Getty Images, a leading visual content provider, released its third-quarter 2024 earnings report, highlighting significant revenue growth and strong financial performance. The company's CEO, Craig Peters, and CFO, Jennifer Leyden, shared insights into the company's achievements and future outlook during the earnings call.
Strong Performance and Growth
Getty Images reported a revenue of $240.5 million for the third quarter, representing a year-on-year increase of 4.9% on a reported basis and 5.4% on a currency-neutral basis. The company's adjusted EBITDA stood at $80.6 million, up 0.4% on a reported basis and 0.8% on a currency-neutral basis, with a healthy EBITDA margin of 33.5%. These figures underscore Getty Images' robust financial health and growth across its businesses, including Getty Images, iStock, and Unsplash+.
Subscription Growth and Editorial Content
Getty Images' subscription business saw outstanding performance, growing subscribers by nearly 50% versus the comparable LTM period. The company's unique e-commerce offerings across editorial and creative categories have been instrumental in driving this growth. With subscriptions now accounting for more than 50% of the company's revenue, Getty Images is capitalizing on the demand for high-quality editorial content, particularly during major events like the Paris Olympics and the U.S. election. This trend highlights the company's ability to adapt to evolving customer needs and preferences.
Creative Offerings and AI Integration
The company's creative offerings, including iStock and Unsplash+, continue to thrive, with iStock experiencing approximately 17% growth and Unsplash+ growing triple digits. Getty Images' AI integration, particularly in the areas of generative models and content customization, is also gaining traction. The Venom movie promotion activation with Sony Pictures is a notable example of how AI is contributing to the business. While adoption rates are still in the single digits, the company expects AI to become a more material contributor to the business in 2025.
Financial Highlights and Outlook
Getty Images' financial performance is backed by a strong balance sheet, with a net leverage of 4.2x and a commitment to deleveraging. The company is also exploring opportunities to refinance its debt. For the full year 2024, Getty Images has increased its reported revenue guidance range to $934 million to $943 million, representing a 1.9% to 2.9% year-on-year growth. The company's adjusted EBITDA guidance has been set at $292 million to $294 million, with a focus on maintaining fiscal discipline and paying down debts.
Strategic Investments and Future Outlook
Getty Images is investing in its business, with plans to expand into new markets and deepen its relationships with clients. The company's strategic focus on subscriptions and e-commerce, coupled with its AI integration and commitment to high-quality editorial content, positions it well for future growth. With a strong financial foundation and a strategic outlook, Getty Images is poised to capitalize on opportunities in the evolving visual content market.
In conclusion, Getty Images' strong third-quarter performance, driven by subscription growth and strategic investments in AI integration, underscores the company's resilience and ability to adapt to the changing market landscape. With a focus on high-quality content, strategic partnerships, and a commitment to innovation, Getty Images is well-positioned for continued growth and success in the years ahead.