Getty Images (GETY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 1.5% year-over-year to $229.1 million, with 2.1% currency-neutral growth and net income of $3.7 million, reversing a net loss in Q2 2023.

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

• Growth was led by editorial and data licensing, offsetting a decline in creative revenue.

• Editorial business rebounded after four quarters of decline, driven by major events and sports coverage.

• Continued investment in AI, launching new generative AI services and expanding partnerships with NVIDIA, Picsart, and Canva.

Financial highlights

• Revenue: $229.1M (+1.5% reported, +2.1% currency-neutral year-over-year).

• Adjusted EBITDA: $68.8M (30% margin), down 5.4% year-over-year.

• Free cash flow: $31.1M, up from $27.9M in Q2 2023.

• CapEx: $15.4M (6.7% of revenue), up $1.5M year-over-year.

• Ending cash balance: $121.7M, with total available liquidity of $271.7M including an undrawn $150M revolver.

Outlook and guidance

• Full-year 2024 revenue guidance: $924M–$943M (0.9%–2.9% growth reported, 1%–3% currency-neutral).

• Adjusted EBITDA guidance: $290M–$294M (down 2.5%–3.8% year-over-year), margin expected above 31%.

• Positive momentum expected in H2 2024, driven by editorial events and gradual recovery in production and agency channels.

• Management expects continued FX volatility and ongoing legal expenses related to warrant litigation.