Investing in Shutterstock (SSTK)? Don't Miss Assessing Its International Revenue Trends

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Mon, Mar 3, 2025, 7:15 AM 4 min read

Have you assessed how the international operations of Shutterstock (SSTK) performed in the quarter ended December 2024? For this online marketplace for royalty-free images and videos, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

Our review of SSTK's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $250.31 million, showing rise of 15.2%. We will now explore the breakdown of SSTK's overseas revenue to assess the impact of its international operations.

Exploring SSTK's International Revenue Patterns

Of the total revenue, $59.26 million came from Rest of the world during the last fiscal quarter, accounting for 23.68%. This represented a surprise of +1.56% as analysts had expected the region to contribute $58.35 million to the total revenue. In comparison, the region contributed $60.59 million, or 24.18%, and $51.1 million, or 23.53%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Europe contributed $67.45 million in revenue, making up 26.95% of the total revenue. When compared to the consensus estimate of $66.54 million, this meant a surprise of +1.37%. Looking back, Europe contributed $69.46 million, or 27.72%, in the previous quarter, and $57.04 million, or 26.26%, in the same quarter of the previous year.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect Shutterstock to report a total revenue of $262.1 million in the current fiscal quarter, which suggests an increase of 22.3% from the prior-year quarter. Revenue shares from Rest of the world and Europe are predicted to be 23.2% and 26.5%, corresponding to amounts of $60.89 million and $69.37 million, respectively.

Analysts expect the company to report a total annual revenue of $1.06 billion for the full year, marking an increase of 13.3% compared to last year. The expected revenue contributions from Rest of the world and Europe are projected to be 23.6% ($249.66 million) and 26.9% ($284.63 million) of the total revenue, in that order.

In Conclusion

Relying on international markets for revenues, Shutterstock faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Currently, Shutterstock holds a Zacks Rank #2 (Buy), signifying its potential to outperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Shutterstock's Stock Price Movement in Recent Times

Over the past month, the stock has seen a decline of 27.2% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 1.3%. The Zacks Computer and Technology sector, Shutterstock's industry group, has descended 4.6% over the identical span. In the past three months, there's been a decline of 33.6% in the company's stock price, against a fall of 1% in the S&P 500 index. The broader sector has declined by 1.2% during this interval.

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This article originally published on Zacks Investment Research (zacks.com).

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