What happened
Shares of Shutterstock (SSTK 1.70%) -- a marketplace for digital images, video, and music -- were tumbling this morning after the company reported worse-than-expected second-quarter results.
The company's sales and earnings for the quarter both missed analysts' consensus estimates, sending the tech stock down by as much as 15% today. Shutterstock had fallen by 5.9% as of 11:29 a.m. ET.
So what
The company's second-quarter sales of $206.9 million -- up 9% from the year-ago quarter -- were below analysts' average estimate of $209.2 million. Additionally, Shutterstock's non-GAAP (adjusted) earnings of $0.83 was a drop of $0.12 from the year-ago quarter and missed Wall Street's consensus estimate of $0.93 per share.
Image source: Getty Images.
Shutterstock CEO Paul Hennessy said in a release, "Despite macro headwinds, we grew revenues 13% on a constant currency basis driven by our recent acquisitions and supported by strong growth across a range of solutions in our Enterprise channel."
But investors focused their attention on the fact that the company missed analysts' consensus estimates and that its net income fell 19% from the year-ago quarter to $19.4 million.
Part of Shutterstock's earnings slide came from the company's purchase of PicMonkey and Pond5, which increased its operating expenses.
NYSE: SSTK
Key Data Points
Now what
Despite some disappointing quarterly results, Shutterstock's management reiterated its guidance for the full year. The company expects revenue to be in the range of $835 million to $850 million, an increase of 9% at the midpoint.
Additionally, management said 2022 earnings per diluted share will be between $3.65 and $3.80, which would be up from earnings of $3.48 per share in 2021.
