Getty Images (NYSE:GETY) Posts Earnings Results

Getty Images (NYSE:GETY) posted its earnings results on Monday, August 10th. The company reported ($0.21) earnings per share (EPS) for the quarter, Zacks reports. Getty Images had a negative net margin of 16.24% and a negative return on equity of 26.82%. The firm had revenue of $229.10 million during the quarter, compared to analyst estimates of $235.23 million.

Here are the key takeaways from Getty Images’ conference call:

• Negative Sentiment: Q2 revenue fell 2.5% year over year to $229.1 million, while adjusted EBITDA declined 8.4% to $62.3 million. Weakness in iStock and the agency business outweighed growth in Getty Images’ corporate and media operations.
• Negative Sentiment: Liquidity and leverage remain major concerns: free cash flow was negative $122.6 million after a $110.9 million warrant-litigation payment, cash ended the quarter at $51.6 million, and total debt was $2.1 billion. Management has hired Guggenheim Securities to evaluate financing and balance-sheet alternatives.
• Negative Sentiment: Management terminated the proposed Shutterstock merger after spending more than $100 million on professional fees and financing costs. The company also withdrew financial guidance while its capital-structure review continues through the third and potentially fourth quarters.
• Positive Sentiment: Getty Images reported continued momentum in higher-value areas, including 9.2% growth in editorial revenue, more than 350% growth in custom content solutions, and over 15% growth in Unsplash+ subscriptions. Premium Access represented more than 40% of total revenue and had retention of nearly 100%.
• Neutral Sentiment: The company plans to refocus iStock on premium offerings, reduce marketing with substandard returns, rationalize agency resources, and expand AI-related tools, content verification, natural-language search, and partnerships with technology and media platforms.

Getty Images Stock Performance

Shares of NYSE GETY traded down $0.01 during mid-day trading on Thursday, reaching $0.08. 3,077,863 shares of the company were exchanged, compared to its average volume of 4,733,149. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 2.67. The company’s 50-day simple moving average is $0.29 and its 200-day simple moving average is $0.64. Getty Images has a twelve month low of $0.05 and a twelve month high of $3.21. The stock has a market capitalization of $33.06 million, a P/E ratio of -0.20 and a beta of 2.07.

Analyst Ratings Changes

Several brokerages have recently commented on GETY. Benchmark restated a “hold” rating on shares of Getty Images in a report on Tuesday, August 11th. Zacks Research raised shares of Getty Images to a “hold” rating in a report on Tuesday, September 15th. Weiss Ratings restated a “sell (e+)” rating on shares of Getty Images in a research report on Friday, August 7th. Finally, JPMorgan Chase & Co. began coverage on shares of Getty Images in a research note on Friday, September 11th. They set an “underweight” rating for the company. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $3.92.

Getty Images Company Profile

Getty Images Holdings, Inc is a visual content company that provides stock photography, illustrations, video, music and other digital media for commercial and editorial use. Its content is used by businesses, advertising agencies, media organizations, publishers and creative professionals for marketing, communications, news and entertainment projects.

The company operates through well-known brands including Getty Images, iStock and Unsplash. Getty Images offers premium creative and editorial content, while iStock provides licensed visual assets aimed at a broad range of businesses and creators.