Shares of Shutterstock (SSTK -1.05%) -- 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.
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.
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.
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.