Getty Images (GETY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 1.5% year-over-year to $229.1 million, with net income of $3.7 million reversing a prior net loss and currency neutral growth of 2.1%.

• Adjusted EBITDA was $68.8 million (30% margin), down 5.4% year-over-year; net income margin was 1.6%.

• Editorial business rebounded with 4.1% growth, while creative revenue declined 2.4% due to agency pressures.

• Subscription revenue rose to 52.9% of total, up from 51.1% a year ago; annual subscription revenue grew 5.2%.

• Investments in AI and partnerships with NVIDIA, PicsArt, and Canva advanced technology offerings.

Financial highlights

• Paid download volume increased 0.9% to 95 million; image and video collections grew 7.7% and 17.5%, respectively.

• Editorial revenue grew 4.1% to $83.6 million; creative revenue declined 2.4% to $137.9 million.

• Free cash flow was $31.1 million, up from $27.9 million a year ago; net cash from operations was $68.0 million.

• Operating income for Q2 rose 38.8% to $46.5 million; cost of revenue as a percentage of revenue decreased to 27.5%.

• Cash and equivalents at quarter-end were $121.7 million, with total available liquidity of $271.7 million.

Outlook and guidance

• Full-year 2024 revenue guidance updated to $924–$943 million, up 0.9%–2.9% year-over-year.

• Adjusted EBITDA guidance set at $290–$294 million, a decrease of 2.5%–3.8% year-over-year; margin expected above 31%.

• Positive momentum expected in H2 2024, driven by editorial events like the Olympics and U.S. elections.

• Management expects continued FX volatility and ongoing legal expenses.

• Sufficient liquidity is expected to fund operations and investing activities for at least the next 12 months.