Sales Slowdown Hits Shutterstock
Shutterstock (NYSE: SSTK) has amassed an impressive library of content, and for several years now, the company has worked to convince would-be clients that they need to update their image in order to connect better with their own customers. Yet even as demand for the images, videos, and other content that Shutterstock provides has risen, so too have the number of competitors seeking to provide similar services to potential customers.
Coming into Tuesday's second-quarter financial report, Shutterstock investors had expected to see solid sales gains with modest profit growth. Shutterstock was able to boost its bottom line more than many had foreseen, but some sluggish growth on the revenue front raised some questions about the company's longer-term growth trajectory.
Shutterstock's second-quarter results gave shareholders only part of what they were looking for. Revenue was up just 3% to $161.7 million, badly missing the 9% sales growth that most of those following the stock had anticipated. However, Shutterstock did manage to post adjusted net income of $11.8 million, and the resulting adjusted earnings of $0.33 per share topped the consensus forecast among investors for $0.31 per share.
Quelle Fool.com
