NEW YORK - Getty Images Holdings, Inc. (NYSE: GETY), a leading global visual content creator and marketplace, reported a significant beat on both earnings and revenue for the fourth quarter, sending shares up 7.39%. The company announced a fourth-quarter EPS of $0.09, surpassing analyst expectations of $0.03. Revenue also exceeded forecasts, coming in at $225.9 million against the consensus estimate of $214.94 million.
The company's fourth-quarter performance marked a 2.4% decline in revenue compared to the same period last year, mainly attributed to a slowdown due to the Hollywood actors and writers strikes. Despite the year-over-year dip, Getty Images' creative revenue saw a slight increase of 0.5%, while editorial revenue experienced a 7.9% decrease. The company's focus on fiscal discipline and strategic initiatives, including a growing percentage of annual subscription revenue, contributed to a net income of $39.1 million, a notable improvement from the net loss of $23.3 million in the fourth quarter of the previous year.
CEO Craig Peters highlighted the company's commitment to its core value propositions, which include helping customers create at a higher level, saving them time and money, and eliminating risk. CFO Jenn Leyden emphasized the generation of healthy levels of free cash flow and a strong balance sheet, positioning the company for a return to top-line growth while maintaining profitability in 2024.
For the full year 2024, Getty Images provided guidance with revenue expected to range between $928 million and $947 million, representing a year-over-year growth of 1.3% to 3.3%. The midpoint of this guidance is slightly below the analyst consensus. Adjusted EBITDA is anticipated to be around $298 million, indicating a slight decline from the previous year on a currency-neutral basis.
Investors reacted positively to the earnings and revenue beat, as reflected in the stock's upward movement. The company's robust balance sheet and liquidity, combined with a disciplined approach to managing costs, have instilled confidence in its ability to navigate the challenges and capitalize on growth opportunities in the year ahead.
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