Getty Images has demonstrated a notable turnaround by swinging to a profit in the second quarter of the fiscal year 2024 when compared year over year, despite adjusting its full-year revenue and core profitability forecasts. The company has projected revenue between $924 million and $943 million for 2024, which represents a decline from its previous guidance range of $928 million to $947 million.
Analysts following the company have established a consensus estimate of $938.2 million based on CapIQ data. Furthermore, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are anticipated to range from $290 million to $294 million for the year, contrasting with earlier projections, which were around $298 million.
"As we look ahead, we will remain fiscally conservative, continue to invest in the business, and are confident in our ability to return to full-year topline growth in 2024," stated Chief Financial Officer Jenn Leyden in a recent press release. The company’s stock has taken a hit with a decrease of 7.5% during Friday's trading session following the announcement.
For the three months leading to June 30, Getty reported earnings of $0.01 per share—a slight recovery from a loss of $0.01 per share seen in the previous fiscal year. Additionally, the revenue for this quarter saw a modest rise of 1.5% year over year, totaling $229.1 million. Interestingly, this figure surpassed the estimation of $228.3 million by five analysts surveyed through Capital IQ. CEO Craig Peters highlighted the company's return to growth during the second quarter, with increases noted across multiple platforms including Getty Images, iStock, and Unsplash.
This growth was driven by a surge in annual subscriptions and the number of paid downloads, showcasing a positive trend within the digital content marketplace. On the other hand, creative revenue reported a decline of 2.4% from last year, amounting to $137.9 million, while editorial revenue experienced a growth of 4.1%, reaching $83.6 million. Moreover, the proportion of annual subscription revenue in relation to total revenue increased to 52.9%, a rise from 51.1% recorded the previous year.
The company's operating expenses also showed a decrease, declining to $182.7 million for the quarter, down from $192.2 million a year ago. In summary, while Getty Images faces challenges in terms of revenue projections and profitability guidance, its ability to adapt and invest in growth opportunities is evident, positioning the company for potential recovery and expansion in the coming year..