Shutterstock, Inc. (SSTK) has reported a 7.66 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $6.60 million, or $0.19 a share in the quarter, compared with $6.13 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.02 million, or $0.31 a share compared with $13.14 million or $0.36 a share, a year ago. Revenue during the quarter grew 11.63 percent to $130.22 million from $116.65 million in the previous year period. Gross margin for the quarter expanded 96 basis points over the previous year period to 59.75 percent. Total expenses were 92.09 percent of quarterly revenues, up from 90.72 percent for the same period last year. That has resulted in a contraction of 137 basis points in operating margin to 7.91 percent.
Operating income for the quarter was $10.30 million, compared with $10.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.22 million compared with $24.03 million in the prior year period. At the same time, adjusted EBITDA margin contracted 277 basis points in the quarter to 17.83 percent from 20.60 percent in the last year period.
Founder and chief executive officer Jon Oringer said, "We had a solid start to the year. On a constant currency basis, we grew revenue 14% and Adjusted EBITDA increased 4%. We also grew our customer base by 13% and increased paid downloads by 6%. These strong metrics are the result of the work we are doing to transition Shutterstock from a stock image marketplace to a broader platform that provides individuals and enterprises with the various content types and tools needed to collaboratively design, build and distribute their creative projects. We are confident that as we continue to develop and broaden our solution set, acquire more and different asset types, offer localized services to our increasingly global customer base and build an organizational framework that enables us to more quickly respond to customer demand and market dynamics, we will further differentiate our business from the competition and create significant value for our customers, contributors, employees and shareholders."
For financial year 2017, Shutterstock, Inc. expects revenue to be in the range of $545 million to $560 million. The company expects operating income to be in the range of $47 million to $52 million.
Working capital declines
Shutterstock, Inc. has witnessed a decline in the working capital over the last year. It stood at $120.17 million as at Mar. 31, 2017, down 24.35 percent or $38.68 million from $158.84 million on Mar. 31, 2016. Current ratio was at 1.61 as on Mar. 31, 2017, down from 1.93 on Mar. 31, 2016. Days sales outstanding went down to 23 days for the quarter compared with 25 days for the same period last year.
At the same time, days payable outstanding was almost stable at 16 days for the quarter, when compared with the previous year period.
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