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Getty Images reports significant beat on earnings and revenue

Published 03/15/2024, 05:26 AM
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GETY
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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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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