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Getty Images Reports Third Quarter 2024 Results

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Getty Images (NYSE: GETY) reported Q3 2024 results with revenue of $240.5 million, up 4.9% year-over-year (5.4% currency neutral). The company posted a net loss of $2.5 million, compared to an $18.4 million loss in Q3'23. Adjusted EBITDA reached $80.6 million with a 33.5% margin.

Key highlights include nearly 50% growth in annual subscribers, with subscriber revenue representing 52.4% of total revenue. The company demonstrated growth across Getty Images, iStock, and Unsplash+ platforms, as well as all customer categories. Based on strong performance, management raised both Revenue and Adjusted EBITDA guidance for 2024.

Getty Images (NYSE: GETY) ha riportato i risultati del terzo trimestre del 2024 con un fatturato di 240,5 milioni di dollari, in aumento del 4,9% rispetto all'anno precedente (5,4% a valuta stabile). L'azienda ha registrato una perdita netta di 2,5 milioni di dollari, rispetto a una perdita di 18,4 milioni di dollari nel terzo trimestre 2023. L'EBITDA adjusted ha raggiunto 80,6 milioni di dollari con un margine del 33,5%.

I principali punti salienti includono una crescita di quasi il 50% degli abbonati annuali, con i ricavi da abbonamento che rappresentano il 52,4% del fatturato totale. L'azienda ha mostrato crescita su tutte le piattaforme Getty Images, iStock e Unsplash+, così come in tutte le categorie di clienti. Sulla base di una forte performance, la direzione ha aumentato sia le previsioni di fatturato che quelle di EBITDA adjusted per il 2024.

Getty Images (NYSE: GETY) reportó los resultados del tercer trimestre de 2024 con ingresos de 240.5 millones de dólares, un aumento del 4.9% interanual (5.4% ajustado por moneda). La compañía registró una pérdida neta de 2.5 millones de dólares, en comparación con una pérdida de 18.4 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado alcanzó los 80.6 millones de dólares con un margen del 33.5%.

Los puntos destacados incluyen un crecimiento de casi el 50% en suscriptores anuales, con los ingresos por suscripción representando el 52.4% de los ingresos totales. La empresa demostró crecimiento en las plataformas Getty Images, iStock y Unsplash+, así como en todas las categorías de clientes. Basándose en un rendimiento sólido, la dirección aumentó las proyecciones de ingresos y EBITDA ajustado para 2024.

게티 이미지 (NYSE: GETY)는 2024년 3분기 결과를 발표하며 2억 4050만 달러의 매출을 기록하여 전년 대비 4.9% 증가했습니다(환율 중립 기준 5.4%). 회사는 250만 달러의 순손실을 기록했으며, 이는 2023년 3분기의 1840만 달러 손실에 비해 줄어든 수치입니다. 조정된 EBITDA는 8060만 달러에 도달했으며, 매출총이익률은 33.5%입니다.

주요 내용으로는 연간 가입자 수가 거의 50% 성장했으며, 가입자 수익이 총 수익의 52.4%를 차지합니다. 회사는 Getty Images, iStock 및 Unsplash+ 플랫폼에서 그리고 모든 고객 카테고리에서 성장세를 보였습니다. 강력한 실적을 바탕으로 경영진은 2024년 매출 및 조정된 EBITDA 전망을 상향 조정했습니다.

Getty Images (NYSE: GETY) a publié ses résultats du troisième trimestre 2024, avec un chiffre d'affaires de 240,5 millions de dollars, en hausse de 4,9 % par rapport à l'année précédente (5,4 % à taux de change constant). L'entreprise a enregistré une perte nette de 2,5 millions de dollars, contre une perte de 18,4 millions de dollars au T3 2023. L'EBITDA ajusté a atteint 80,6 millions de dollars avec une marge de 33,5 %.

Les principaux temps forts incluent une croissance de près de 50 % des abonnés annuels, les revenus d'abonnement représentant 52,4 % du chiffre d'affaires total. L'entreprise a démontré une croissance sur les plateformes Getty Images, iStock et Unsplash+, ainsi que dans toutes les catégories de clients. Sur la base d'une performance solide, la direction a rehaussé ses prévisions de chiffre d'affaires et d'EBITDA ajusté pour 2024.

Getty Images (NYSE: GETY) veröffentlichte die Ergebnisse für das 3. Quartal 2024 mit einem Umsatz von 240,5 Millionen US-Dollar, was einem Anstieg von 4,9% im Jahresvergleich entspricht (währungsneutral 5,4%). Das Unternehmen verbuchte einen Nettoverlust von 2,5 Millionen US-Dollar, verglichen mit einem Verlust von 18,4 Millionen US-Dollar im Q3 2023. Das bereinigte EBITDA erreichte 80,6 Millionen US-Dollar mit einer Marge von 33,5%.

Zu den wichtigsten Highlights gehört ein nahezu 50%iger Anstieg der jährlichen Abonnenten, wobei die Abonnienteinnahmen 52,4% des Gesamterlöses ausmachen. Das Unternehmen zeigte Wachstum in den Plattformen Getty Images, iStock und Unsplash+ sowie in allen Kundengruppen. Basierend auf der starken Leistung hat das Management sowohl die Umsatz- als auch die bereinigte EBITDA-Prognose für 2024 angehoben.

Positive
  • Revenue growth of 4.9% YoY to $240.5 million
  • Annual subscribers grew 47.7% YoY
  • Video collection expanded 17.2% YoY
  • Raised full-year 2024 revenue guidance to $934-943 million
  • Reduced net loss to $2.5 million from $18.4 million YoY
Negative
  • Total purchasing customers declined 12.9% YoY
  • Annual subscriber revenue retention rate decreased 230 bps to 92.2%
  • Negative free cash flow of $1.8 million compared to positive $12.8 million YoY
  • Projected Adjusted EBITDA decline of 2.5-3.1% for FY2024

Insights

Getty Images delivered a mixed Q3 2024 with some notable strengths and concerns. Revenue grew 4.9% to $240.5 million, with solid performance across all segments. The nearly 50% growth in annual subscribers is particularly impressive, now representing 52.4% of total revenue - a strong indicator of recurring revenue stability.

However, there are some cautionary signals: The company posted a $2.5 million net loss, though improved from last year's $18.4 million loss. The 33.5% Adjusted EBITDA margin, while strong, declined slightly year-over-year. The $1.349 billion total debt load remains significant, though management's proactive $20 million debt paydown this quarter shows commitment to deleveraging.

The raised guidance suggests management's confidence in near-term execution, but the projected currency-neutral Adjusted EBITDA decline of 2.8% to 3.4% for full-year 2024 warrants attention.

  • Revenue Growth of 4.9%, Currency Neutral Growth of 5.4%
  • Corporate, Media, and Agency Customer Categories in Growth
  • Getty Images, iStock, and Unsplash+ in Growth
  • Annual Subscribers Grew Nearly 50%
  • Annual Subscriber Revenue Represents 52.4% of Total Revenue
  • Raises Revenue and Adjusted EBITDA Outlook

NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Getty Images Holdings, Inc. (“Getty Images” or the “Company”) (NYSE: GETY), a preeminent global visual content creator and marketplace, today reported financial results for the third quarter ended September 30, 2024.

“Getty Images reported strong performance in the third quarter, with growth across Getty Images, iStock, and Unsplash+, as well as across all customer categories, and a nearly 50 percent increase in our subscribers compared to the LTM period,” said Craig Peters, Chief Executive Officer for Getty Images. “As we look ahead to closing out the year and into 2025, I am confident in our trajectory. Our differentiation, execution, and commitment to providing durable value to our customers will continue to drive our success.”

“We executed and delivered strong revenue growth and profitability that reflect the positive momentum we have built across our business,” said Jenn Leyden, Chief Financial Officer for Getty Images. “Taking into consideration our performance to date and the foreign currency rates, we are raising our 2024 guidance for both Revenue and Adjusted EBITDA. We are confident that we are well positioned to execute with our differentiated, high quality, powerful content and our steadfast customer focus at the core of our financial performance.”

Third Quarter 2024 Financial Summary:

  • Revenue for the period was $240.5 million, an increase of 4.9% year-over-year and 5.4% on a currency neutral basis.
  • Net Loss of $2.5 million, compared to Net Loss of $18.4 million in Q3'23. Included in Q3'24 results is a $28.7 million unrealized loss primarily related to the change in fair value of the Company’s Euro Term Loan, compared to an unrealized gain of $16.5 million in Q3'23. Separately, the Q3’23 results included $106.1 million Loss on Litigation related to the previously disclosed warrant litigation, partially offset by $60.0 million Recovery of Loss on Litigation from the Company’s D&O insurance policy. Net Loss Margin for Q3'24 was 1.1% compared to Net Loss Margin of 8.0% in Q3'23.
  • Adjusted EBITDA* of $80.6 million, up 0.4% year over year and up 0.8% on a currency neutral basis. Adjusted EBITDA Margin* was strong at 33.5% and 35.0% for Q3'24 and Q3'23, respectively.
  • Adjusted EBITDA less capex* was $68.1 million, up 0.4% year over year and up 1.2% on a currency neutral basis.

Liquidity and Balance Sheet:

  • Net cash provided by operating activities of $78.6 million in Q3'24, compared to $99.0 million in the prior year period.
  • Free cash flow* of $(1.8) million in Q3'24, compared to $12.8 million in the prior year period. The decrease in free cash flow largely reflects changes in the timing of payments and receipts, as well as higher cash interest and cash taxes paid.
  • Ending cash balance on September 30, 2024 was $109.9 million, down $26.8 million from the ending balance on December 31, 2023 and down $3.7 million from September 30, 2023. This decrease was driven in large part by the voluntary $55.2 million paydown of the USD Term Loan year-to-date, including a $20.0 million paydown in Q3’24. We have $150.0 million available through our Revolver which remains undrawn, for total available liquidity of $259.9 million.
  • Total debt was $1.349 billion, which included $300.0 million in senior notes and a term loan balance of $1.049 billion, consisting of $581.8 million in USD and $467.6 million in USD equivalent of Euros, converted using exchange rates as of September 30, 2024. We continue to evaluate opportunities to refinance our existing debt in the dollar and euro capital markets.

* Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA less capex, and Free Cash Flow are non-GAAP financial measures. Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures section below.

Key Performance Indicators (KPIs)

Our KPIs outlined below are the metrics that provide management with the most immediate understanding of the drivers of business performance and our ability to deliver shareholder return, track to financial targets and prioritize customer satisfaction. KPI comparisons for the last twelve months ended September 30, 2024 reflect Hollywood strike impact.

 Last Twelve Months Ended September 30,
 2024 2023 Increase /
(Decrease)
LTM total purchasing customers (thousands)1719 826 (12.9)%
LTM total active annual subscribers (thousands)2298 202 47.7%
LTM paid download volume (millions)394 95 (0.7)%
LTM annual subscriber revenue retention rate492.2% 94.5% -230 bps
Image collection (millions)5563 525 7.2%
Video collection (millions) 531 27 17.2%
LTM video attachment rate616.4% 13.7% +270 bps
      

Annual subscription - includes all products with a duration of 12 months or longer

1 The count of total customers who made a purchase within the reporting period based on billed revenue.
2 The count of customers who were on an annual subscription product during the reporting period.
3 A count of the number of paid downloads by our customers in the reporting period. Excludes downloads from Editorial Subscriptions, Editorial feeds and certain API structured deals, including bulk unlimited deals. Excludes downloads related to an agreement signed with Amazon, as the magnitude of the potential download volume over the deal term could result in significant fluctuations in this metric without corresponding impact to revenue in the same period.
4 This calculates retention of total revenue for customers on an annual subscription product, comparing the customer’s total billed revenue (inclusive of both annual subscription and non-annual subscription products) in the LTM period to the prior LTM period.
5 A count of the total images and videos in our content library as of the reporting date.​
6 A measure of the percentage of total paid customer downloaders who are video downloaders.

Financial Outlook for Full Year 2024

The following tables summarize Getty Images’ updated fiscal year 2024 guidance:

 Updated 2024 GuidancePrior 2024 Guidance
Revenue$934 million to $943 million$924 million to $943 million
Revenue YoY1.9% to 2.9%0.9% to 2.9%
Revenue YoY, Currency Neutral1.6% to 2.6%1.0% to 3.0%
Adjusted EBITDA$292 million to $294 million$290 million to $294 million
Adjusted EBITDA YoY(3.1)% to (2.5)%(3.8)% to (2.5)%
Adjusted EBITDA YoY, Currency Neutral(3.4)% to (2.8)%(3.6)% to (2.3)%


Guidance has been updated to reflect the Company's financial performance year to date and the impact of foreign currency exchange rates on both Revenue and Adjusted EBITDA.

Webcast & Conference Call Information
The Company will host a conference call and live webcast with the investment community at 4:30 p.m. ET, Thursday, November 7, 2024 to discuss its third quarter 2024 results. The live webcast will be accessible through the Investor Relations section of the Company’s website at https://investors.gettyimages.com/. To access the call through a conference line, dial 1-800-717-1738 (in the U.S.) or 1-646-307-1865 (international callers). A replay of the conference call will be posted shortly after the call and will be available for fourteen days following the call. To access the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). The access code for the replay is 1153941.

About Getty Images
Getty Images (NYSE: GETY) is a preeminent global visual content creator and marketplace that offers a full range of content solutions to meet the needs of any customer around the globe, no matter their size. Through its Getty Images, iStock and Unsplash brands, websites and APIs, Getty Images serves customers in almost every country in the world and is the first-place people turn to discover, purchase and share powerful visual content from the world’s best photographers and videographers. Getty Images works with over 576,000 content creators and more than 340 content partners to deliver this powerful and comprehensive content. Each year Getty Images covers more than 160,000 news, sport and entertainment events providing depth and breadth of coverage that is unmatched. Getty Images maintains one of the largest and best privately-owned photographic archives in the world with millions of images dating back to the beginning of photography.

Through its best-in-class creative library and Custom Content solutions, Getty Images helps customers elevate their creativity and entire end‑to‑end creative process to find the right visual for any need. With the adoption and distribution of generative AI technologies and tools trained on permissioned content that include indemnification and perpetual, worldwide usage rights, Getty Images and iStock customers can use text to image generation to ideate and create commercially safe compelling visuals, further expanding Getty Images capabilities to deliver exactly what customers are looking for.

For company news and announcements, visit our Newsroom.

Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of the words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.

These forward-looking statements are subject to a number of risks and uncertainties, including: our inability to continue to license third-party content and offer relevant quality and diversity of content to satisfy customer needs; our ability to attract new customers and retain and motivate an increase in spending by our existing customers; our ability to grow our subscriptions business; the user experience of our customers on our websites; the extent to which we are able to maintain and expand the breadth and quality of our content library through content licensed from third-party suppliers, content acquisitions and imagery captured by our staff of in-house photographers; the mix of and basis upon which we license our content, including the price-points at, and the license models and purchase options through, which we license our content; the risk that we operate in a highly competitive market; the risk that we are unable to successfully execute our business strategy or effectively manage costs; our inability to effectively manage our growth; our inability to maintain an effective system of internal controls and financial reporting; the risk that we may lose the right to use “Getty Images” trademarks; our inability to evaluate our future prospects and challenges due to evolving markets and customers’ industries; the legal, social and ethical issues relating to the use of new and evolving technologies, such as Artificial Intelligence and machine learning (collectively, “AI”), including statements regarding AI and innovation momentum; the increased use of AI applications such as generative AI technologies that may result in harm to our brand, reputation, business, or intellectual property; the risk that our operations in and continued expansion into international markets bring additional business, political, regulatory, operational, financial and economic risks; our inability to adequately adapt our technology systems to ingest and deliver sufficient new content; the risk of technological interruptions or cybersecurity breaches, incidents, and vulnerabilities; the risk that any prolonged strike by, or lockout of, one or more of the unions that provide personnel essential to the production of films or television programs, such as the 2023 strike by the writers’ union and the actors' unions and including its lingering effects, could further impact our entertainment business; the inability to expand our operations into new products, services and technologies and to increase customer and supplier awareness of new and emerging products and services, including with respect to our AI initiatives; the loss of and inability to attract and retain key personnel that could negatively impact our business growth; the inability to protect the proprietary information of customers and networks against security breaches and protect and enforce intellectual property rights; our reliance on third parties; the risks related to our use of independent contractors; the risk that an increase in government regulation of the industries and markets in which we operate could negatively impact our business; the impact of worldwide and regional political, military or economic conditions, including declines in foreign currencies in relation to the value of the U.S. dollar, hyperinflation, higher interest rates, devaluation the impact of recent bank failures on the marketplace and the ability to access credit and significant political or civil disturbances in international markets where we conduct business; the risk that claims, judgements, lawsuits and other proceedings that have been, or may be, instituted against us or our predecessors could adversely affect our business; the inability to maintain the listing of our Class A common stock on the New York Stock Exchange; volatility in our stock price and in the liquidity of the trading market for our Class A common stock; the lingering effect of the COVID-19 pandemic; changes in applicable laws or regulations; the risks associated with evolving corporate governance and public disclosure requirements; the risk of greater than anticipated tax liabilities; the risks associated with the storage and use of personally identifiable information; earnings-related risks such as those associated with late payments, goodwill or other intangible assets; our ability to obtain additional capital on commercially reasonable terms; the risks associated with being an “emerging growth company” and “smaller reporting company” within the meaning of the U.S. securities laws; risks associated with our reliance on information technology in critical areas of our operations; our inability to pay dividends for the foreseeable future; the risks associated with additional issuances of Class A common stock without stockholder approval; costs related to operating as a public company; and other risks and uncertainties identified in “Item 1A Risk Factors” of our most recently filed Annual Report on Form 10-K (the “2023 Form 10-K”). If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements.

These and other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described under the heading “Item 1A Risk Factors” in our 2023 Form 10-K and in our other filings with the SEC. The risks described under the heading “Item 1A Risk Factors” in our 2023 Form 10-K and other filings with the SEC are not exhaustive. New risk factors emerge from time to time and it is not possible to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

In addition, the statements of belief and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us, as applicable, as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements.


 
GETTY IMAGES HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
 
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Revenue$240,545  $229,298  $691,963  $690,616 
        
Operating expenses:       
Cost of revenue (exclusive of depreciation and amortization)$64,092  $60,939  $187,445  $187,579 
Selling, general and administrative expenses 100,130   97,253   302,306   300,930 
Depreciation 14,879   13,786   43,928   40,349 
Amortization 590   7,298   1,716   21,765 
Loss on litigation 3,199   106,108   8,013   112,549 
Recovery of loss on litigation    (60,000)     (60,000)
Other operating expenses (income) – net 219   (24)  3,627   588 
Total operating expenses 183,109   225,360   547,035   603,760 
Income from operations 57,436   3,938   144,928   86,856 
        
Other (expense) income, net:       
Interest expense (34,004)  (32,255)  (100,618)  (94,435)
Loss on fair value adjustment for swaps – net    (2,322)  (1,459)  (5,047)
Unrealized foreign exchange (loss) gain – net (28,657)  16,482   (9,796)  2,395 
Other non-operating income – net 1,452   1,104   4,147   2,226 
        
Total other expense – net (61,209)  (16,991)  (107,726)  (94,861)
(Loss) income before income taxes (3,773)  (13,053)  37,202   (8,005)
Income tax benefit (expense) 1,246   (5,395)  (22,453)  (11,517)
        
Net (loss) income (2,527)  (18,448)  14,749   (19,522)
Less:       
Net (loss) income attributable to non-controlling interest (332)  (45)  (358)  248 
Net (loss) income attributable to Getty Images Holdings, Inc.$(2,195) $(18,403) $15,107  $(19,770)
        
Net (loss) income share attributable to Class A Getty Images Holdings, Inc. common stockholders:       
Basic$(0.01) $(0.05) $0.04  $(0.05)
Diluted$(0.01) $(0.05) $0.04  $(0.05)
        
Weighted-average Class A common shares outstanding:       
Basic 410,473,104   399,703,684   408,373,567   397,492,201 
Diluted 410,473,104   399,703,684   413,276,301   397,492,201 


 
GETTY IMAGES HOLDINGS, INC.
BALANCE SHEETS
(Unaudited)(In thousands, except share and par value data)
 
 September 30,
2024
 December 31,
2023
ASSETS    
Current assets:   
Cash and cash equivalents$109,873  $136,623 
Restricted cash 4,515   4,227 
Accounts receivable – net of allowance of $6,911 and $6,526, respectively 136,702   138,730 
Prepaid expenses 14,645   15,798 
Insurance recovery receivable 45,969   48,615 
Taxes receivable 10,411   9,758 
Other current assets 13,459   11,253 
Total current assets 335,574   365,004 
Property and equipment, net 182,801   179,378 
Operating lease right-of-use assets 34,845   41,098 
Goodwill 1,516,979   1,501,814 
Intangible assets, net of accumulated amortization 406,586   403,805 
Deferred income taxes, net 69,240   69,400 
Other assets 39,023   41,262 
Total assets$2,585,048  $2,601,761 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$100,208  $102,525 
Accrued expenses 45,403   43,653 
Income taxes payable 7,388   11,325 
Litigation reserves 102,171   98,149 
Deferred revenue 171,345   176,349 
Total current liabilities 426,515   432,001 
Long-term debt, net 1,349,012   1,398,658 
Lease liabilities 32,170   39,858 
Deferred income taxes, net 21,901   21,580 
Uncertain tax positions 22,206   24,772 
Other long-term liabilities 1,993   3,462 
Total liabilities 1,853,797   1,920,331 
    
Stockholders’ equity:   
Class A common stock, $0.0001 par value: 2.0 billion shares authorized; 411.1 million shares issued and outstanding as of September 30, 2024 and 405.0 million shares issued and outstanding as of December 31, 2023 41   40 
Additional paid-in capital 2,010,856   1,983,276 
Accumulated deficit (1,247,908)  (1,263,015)
Accumulated other comprehensive loss (79,585)  (87,076)
Total Getty Images Holdings, Inc. stockholders’ equity 683,404   633,225 
Non-controlling interest 47,847   48,205 
Total stockholders’ equity 731,251   681,430 
Total liabilities and stockholders’ equity$2,585,048  $2,601,761 


 
GETTY IMAGES HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 
 Nine Months Ended
September 30,
  2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:   
Net income (loss)$14,749  $(19,522)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:   
Depreciation 43,928   40,349 
Amortization 1,716   21,765 
Unrealized exchange gains (losses) on foreign denominated debt 4,031   (3,450)
Equity-based compensation 17,454   27,185 
Deferred income taxes – net 481   (4,168)
Uncertain tax positions (2,566)  (5,952)
Non-cash fair value adjustment for swaps - net 1,459   5,047 
Amortization of debt issuance costs 1,904   2,965 
Non-cash operating lease costs 8,987   5,234 
Other 2,342   3,348 
Changes in assets and liabilities:   
Accounts receivable 760   (1,156)
Accounts payable (6,136)  2,781 
Accrued expenses 6,734   (232)
Insurance recovery receivable 2,646   (60,000)
Litigation reserves 4,022   96,711 
Lease liabilities, non-current (8,972)  (5,645)
Income taxes receivable/payable (3,860)  (1,382)
Interest payable (7,330)  (7,068)
Deferred revenue (5,157)  2,412 
Other 1,432   (231)
Net cash provided by operating activities 78,624   98,991 
    
CASH FLOWS FROM INVESTING ACTIVITIES:   
Acquisition of property and equipment (42,323)  (41,868)
Acquisition of a business, net of cash acquired (15,038)   
Net cash used in investing activities (57,361)  (41,868)
    
CASH FLOWS FROM FINANCING ACTIVITIES:   
Debt issuance costs (2,205)  (1,137)
Prepayment of debt (55,200)  (47,800)
Proceeds from common stock issuance 6,194   13,181 
Cash paid for settlement of employee taxes related to equity-based awards (2,655)  (5,607)
Cash paid for equity issuance costs    (150)
Net cash used in financing activities (53,866)  (41,513)
    
Effects of exchange rates fluctuations 6,141   (208)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (26,462)  15,402 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of period 140,850   102,394 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of period 114,388   117,796 


Non-GAAP Financial Measures
In order to assist investors in understanding the core operating results that our management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Adjusted EBITDA, (2) Adjusted EBITDA Margin, (3) Adjusted EBITDA less capex and (4) Free Cash Flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

The Company believes that these measures are relevant and provide useful information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results. We also evaluate our revenue on an as reported (U.S. GAAP) and currency neutral basis. We believe presenting currency neutral information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

Reconciliations of these non-GAAP measures to the most comparable GAAP measures are provided below.

The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EBITDA less capex        

(In thousands) Three Months Ended September 30, Nine Months Ended September 30,
   2024   2023   2024   2023 
Net (loss) income $(2,527) $(18,448) $14,749  $(19,522)
Add/(less) non-GAAP adjustments:        
Depreciation and amortization  15,469   21,084   45,644   62,114 
Loss on litigation, net of recovery  3,199   46,108   8,013   52,549 
Other operating expense (income) – net  219   (24)  3,627   588 
Interest expense  34,004   32,255   100,618   94,435 
Fair value adjustments, foreign exchange and other non-operating (income) expense 1  27,205   (15,264)  7,108   426 
Income tax expense  (1,246)  5,395   22,453   11,517 
Equity-based compensation expense, net of capitalization  4,306   9,176   17,454   27,185 
Adjusted EBITDA $80,629  $80,282  $219,666  $229,292 
Capex  12,482   12,416   42,314   41,868 
Adjusted EBITDA less capex  68,147   67,866   177,352   187,424 
Net (loss) income margin (1.1)% (8.0)%  2.1% (2.8)%
Adjusted EBITDA margin  33.5%  35.0%  31.7%  33.2%


1
Beginning in the third quarter 2023 reporting period, the Company reclassified historical legal fees associated with our warrant litigation from “Selling, general and administrative expenses” to “Loss on litigation” within the Condensed Consolidated Statements of Operations, and revised its Adjusted EBITDA calculation.
2 Fair value adjustments for our swaps, foreign exchange gains (losses) and other insignificant non-operating related expenses (income).


Reconciliation of Free Cash Flow

  Three Months Ended September 30, Nine Months Ended September 30,
​(In thousands)  2024   2023   2024   2023 
Net cash provided by operating activities​ $10,653  $25,208  $78,624  $98,991 
Acquisition of property and equipment​  (12,490)  (12,416)  (42,323)  (41,868)
Free Cash Flow​ $(1,837) $12,792  $36,301  $57,123 


OTHER FINANCIAL DATA

Revenue by Product

  Three Months Ended September 30, increase / (decrease)
(In thousands)  2024  % of
revenue
  2023  % of
revenue
 $ change % change CN %
change
Creative $133,709  55.6% $145,211  63.3% $(11,502) (7.9)% (7.4)%
Editorial  92,779  38.6%  79,944  34.9%  12,835  16.1% 16.3%
Other  14,057  5.8%  4,143  1.8%  9,914  239.3% 240.1%
Total revenue $240,545  100.0% $229,298  100.0% $11,247  4.9% 5.4%


  Nine Months Ended September 30, increase / (decrease)
(In thousands)  2024  % of
revenue
  2023  % of
revenue
 $ change % change CN %
change
Creative $410,445  59.3% $432,927  62.7% $(22,482) (5.2)% (4.8)%
Editorial  255,827  37.0%  244,911  35.5%  10,916  4.5% 4.6%
Other  25,691  3.7%  12,778  1.9%  12,913  101.1% 101.4%
Total revenue $691,963  100.0% $690,616  100.0% $1,347  0.2% 0.5%


Balance Sheet & Liquidity

(In millions) September 30, 2024 December 31, 2023 September 30, 2023
Cash & Cash Equivalents1 $109.9  $136.6  $113.5 
Available under Revolving Credit Facility2 $150.0  $150.0  $150.0 
Liquidity $259.9  $286.6  $263.5 
Term Loans Outstanding - USD Tranche $581.8  $637.0  $639.6 
Term Loans Outstanding - EUR Tranche3 $467.6  $463.6  $443.6 
Total Balance - Term Loans Outstanding4 $1,049.4  $1,100.6  $1,083.2 
Senior Notes $300.0  $300.0  $300.0 
             

1 Excludes restricted cash of $4.5 million as of September 30, 2024, $4.2 million as of December 31, 2023 and $4.3 million as of September 30, 2023.
2 Our Revolving Credit Facility was effective May, 2023 and matures May, 2028.
3 Face Value of Debt is 419M EUR. Converted using the FX spot rate as of September 30, 2024 of 1.11, December 31, 2023 of 1.11, and September 30, 2023 of 1.05.
4 Represents face value of debt, not GAAP carrying value.


Investor Contact:

Getty Images
Steven Kanner
Investorrelations@gettyimages.com

Media Contact:
Getty Images
Anne Flanagan
Anne.flanagan@gettyimages.com   


FAQ

What was Getty Images (GETY) revenue in Q3 2024?

Getty Images reported revenue of $240.5 million in Q3 2024, representing a 4.9% increase year-over-year and 5.4% growth on a currency neutral basis.

How much did Getty Images (GETY) subscriber base grow in Q3 2024?

Getty Images' annual subscribers grew by 47.7% year-over-year, with total active annual subscribers reaching 298,000 for the last twelve months ended September 30, 2024.

What is Getty Images (GETY) updated revenue guidance for 2024?

Getty Images raised its 2024 revenue guidance to $934-943 million, representing expected year-over-year growth of 1.9% to 2.9%.

What was Getty Images (GETY) net loss in Q3 2024?

Getty Images reported a net loss of $2.5 million in Q3 2024, compared to a net loss of $18.4 million in Q3 2023.

Getty Images Holdings, Inc.

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