![]() This indicates that Shutterstock has relatively less cash on hand to meet short-term debt obligations, and a continuation of this trend would likely be of concern to investors.įrom looking at the income statement and balance sheet, we can see that while net income may be higher overall - revenue growth itself has been lagging and relative cash levels to meet current liabilities have been lower than in previous quarters. Cash to total current liabilities calculated by author. More broadly, the cash to total liabilities ratio has seen a significant drop from previous levels in the past three quarters:įigures sourced from Shutterstock 2022 First Quarter Financial Information. In terms of the company's balance sheet, we can see that Shutterstock saw a drop in cash and cash equivalents of nearly 18% from the previous quarter. Therefore, while containing operating expenses has bolstered net income growth - investors will increasingly look for revenue growth to sustain this over the longer term. Shutterstock: 2022 First Quarter Financial Informationįrom a longer-term standpoint, we can see that while net income in Q1 2022 is almost 6 times as large as that in Q4 2019, revenue growth over this period has come in at just under 20%. ![]() Revenue itself came in lower, across both the e-commerce and enterprise segments: With Shutterstock having released Q1 2022 financial information on 25th April, it is notable that while Shutterstock's net earnings saw an increase from the previous quarter, this was primarily due to a reduction in operating costs. The purpose of this article is to investigate whether the decline has been due to broader market sentiment and whether the stock could see a rebound in upside from here - particularly in light of recent financial results. However, the stock has seen a decline over the past couple of months: Shutterstock is one of the leading providers of royalty-free and licensed stock photography. In a previous article back in February, I made the argument that Shutterstock could see longer-term upside going forward on the basis of strong revenue growth and a healthy cash position. However, I take the view that revenue growth will need to significantly increase in 2022 to justify further upside. ( NYSE: SSTK) could be oversold at this point with the potential for upside. I use another service and get equally good choices.Mgstudyo/E+ via Getty Images Investment Thesis Zenny in 2017 wrote “Gorgeous pictures, but the pricing is prohibitive. Maksims in March 2018 wrote “the largest selection of photos on for any tasks” ![]() Judging by the reviews I have read I am clearly not the only person to fall into this trap.” I think Shutterstock should help the customer by showing (in a very transparent way) what they are signing up for. When I bought the images, I thought I was paying for 4/5 downloads, in actual fact I had paid for an annual subscription. To be fair, they do have a vast selection, and there were quite a few images I wanted, so I decided to purchase them. James, In May 2018 wrote “I went to Shutterstock as it appears to be a household name for images. Here are a few reviews from Trustpilot relating to Shutterstock and the experience they received. When reviewing anything, the best place to start is on review sites such as Trustpilot to see what actual consumers are saying about their experience.
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