Getty Images (NYSE:GETY) has reported earnings of 4 cents per share for the third quarter of 2023, surpassing the Zacks Consensus Estimate by 33.33%. This marks a notable improvement from break-even earnings in the same quarter last year. Although the company’s revenues of $229.3 million for the quarter showed a 0.5% year-over-year decline, they exceeded the consensus estimate by 0.55%.
Over the trailing 12-month period, total purchasing customers saw a 1.3% decline from the previous year, totaling 826,000. On the positive side, total active annual subscribers experienced a significant 88.4% year-over-year increase, reaching 202,000. During the same period, paid download volume grew by 1%, totaling 95 million.
As of September 30, 2023, Getty Images boasted a collection of 525 million images. Quarter details reveal that creative revenues accounted for 63.3% of total revenues, remaining unchanged at $145.2 million year over year. Editorial revenues, constituting 34.9% of total revenues, declined by 2.3% year over year to $79.9 million. Other revenues, contributing 1.8% to the total, surged by 22.2% year over year to $4.1 million.
The company reported adjusted EBITDA of $80.3 million, reflecting a 3.4% year-over-year increase. However, in the third quarter of 2023, selling, general, and administrative expenses rose by 6.2% year over year to $97.3 million, resulting in a 92.2% year-over-year decline in operating income, which reached $3.9 million.
Getty Images closed the quarter with $113.5 million in cash and cash equivalents, with $150 million available through its revolver. Meanwhile, total debt as of September 30, 2023, amounted to $1.383 billion, inclusive of $300 million in senior notes and a term loan balance of $1.083 billion. Net cash provided by operating activities for the quarter was $25.2 million, and free cash flow stood at $12.8 million.
Looking ahead to 2023, Getty Images anticipates revenues in the range of $900 million to $910 million, with adjusted EBITDA expected to fall between $287 million and $295 million.
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