06 Aug 2015 Shutterstock’s Share Price Down 30% Overnight [Updated]
[Updated to add new hires in senior positions]
Shutterstock shares are trading around $35 per share this morning after closing at $50.75 last night, a drop of over 30%. They dipped to $32.61 in the first hour of trade.
The company released their quarterly earnings report this morning, which was mostly positive. But news of yet another senior executive departure, this time CFO, Tim Bixby, was not so positive.
Quarterly Earnings Report
Shutterstock’s revenues surpassed the total from the same quarter last year by 30%, at $104.4M on an increase of 13% in revenue per download –for both on-demand and subs– and paid downloads were also up 14%, mostly due to new customers. The collection expanded by 47% to 57.2 million images and 2.9 million footage clips.
Acquisitions and partnerships were cited as strategic highlights of the quarter, where Shutterstock appears to have excelled. The recently purchased PremiumBeat and Rex Features contributed 3% of this quarter’s revenue. They also had that high profile deal with Penske Media.
Tim Bixby and The Senior Executive Exodus
The announcement of Tim Bixby’s departure may well have been what sent Wall Street dumping Shutterstock shares today. He’s being replaced internally by Steve Berns, who resigned his seat on the Shutterstock board last week in preparation to take the position. But Bixby is just the latest in a string of senior executives departing the company.
Scott Braut, former VP of Content, left in January and in June popped up as Head of Content for Adobe’s Creative Cloud – which many are starting to see as Shutterstock’s biggest threat. David Fraga, former Director of Corporate Development, also left earlier this year and took the COO role at InVision. Thilo Semmelbauer, President and COO, left this January.
Last year Wyatt Jenkins, Vp of Product, left in December for the same position in Optimizely. Joshua Black, PR/Communications Manager, also left around then to work as PR Manager at Getty Images. And Anthony Correia, former Director for Contributor Success, left in April.
To my knowledge, the new CFO is the only announced replacement, and I can’t see any of the other vacated positions advertised on Shutterstock’s job site.
[Update:] Kenny Herman just joined as the VP of Business Development; Catherine Ulrich joined last year as their first Chief Product Officer; and Paul Brennan has remained the VP of Content Operations (covering Correia’s position). The contributor success team and the PR team have also added team members.
It’s Tough at the Top
Shutterstock has enjoyed a relatively fast rise to the top of the market, with long-standing market dominator Getty Images clearly considering Shutterstock its primary competitive threat. They’ve fought off competition from other microstock agencies with similar business models, stealing the microstock crown away from the original innovator iStock (with a lot of help from Getty).
But now it looks like the cracks are starting to show. A company cannot lose so many senior executives in such a short time without something being up. Releasing financial results showing revenue and profit growth, even marginally below company guidance as it was, wouldn’t normally wipe 30% of the value off the market.
Investors and analysts interested in going deeper on this and similar issues can do so at Stock Photo Insight.