Shutterstock, Inc. (NYSE:SSTK) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 08:30 am ET


Shutterstock, Inc. (NYSE:SSTK) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Jake, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Shutterstock Q2 '20 Earnings Conference Call. [Operator Instructions]

At this time, I would like to turn the call over to your first host, Chris Suh, Vice President of Corporate Development and Investor Relations. Sir, please go ahead.

Chris Suh

Thank you, operator.

Good morning, everyone, and thank you for joining us for Shutterstock second quarter 2020 earnings call. Joining me today is Stan Pavlovsky, our Chief Executive Officer, and Jarrod Yahes, our Chief Financial Officer.

Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including without limitation, the impact of COVID-19 on our business, the long-term effects of investments in our business, the future success and financial impact of new and existing products, our future growth margins and profitability, our long-term strategy and our performance targets. Actual results or trends could differ materially from our forecasts. For more information, please refer to today's press release and the reports we've filed with the SEC from time to time, including the risk factors discussed in our most recently filed quarterly report on Form 10-Q and our Annual Report on Form 10-K for discussions of important risk factors that could cause actual results to differ materially from any forward-looking statements we may make on our call.

We'll be discussing certain non-GAAP financial measures today, including adjusted EBITDA; adjusted EBITDA margins; adjusted net income; revenue growth, including by distribution channel and on a constant currency basis; billings; and free cash flow. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the financial tables included with today's press release and in our Form 10-Q which are posted on the Investor Relations section of our website.

Finally, please refer to the brief information deck we've posted on our website that contains supporting materials for today's call as well as the new interactive IR microsite that is available on the IR section of Shutterstock's website.

And now, at this time, I'll turn the call over to Stan.

Stan Pavlovsky

Thanks, Chris, and welcome to Shutterstock. We look forward to your contributions as we continually increase our outreach and communications toward the investment community.

Good morning, everyone, and thank you for joining Shutterstock's second quarter earnings call. I wanted to begin by thanking all of our Shutterstock employees who have effectively transitioned to working remotely and have been incredibly dedicated and focused during this time to offer continuity of service to our customers. As a result of their efforts, we are making progress on our strategic plan, focused on workflow innovation, content services and data and insights, which will deliver strong returns for our shareholders.

Shutterstock's revenues proved to be much more resilient in the second quarter as compared to our expectations as well as relative to how we were trending at the end of April, down high single digits. Our second quarter