Getty Images (NYSE:GETY) Announces Earnings Results

Getty Images (NYSE:GETY) posted its quarterly earnings data on Monday. The company reported ($0.05) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $229.10 million for the quarter, compared to analyst estimates of $235.23 million. Getty Images had a negative return on equity of 17.01% and a negative net margin of 10.94%.

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 Up 1.0%

GETY traded up $0.00 during trading on Monday, reaching $0.44. 8,398,000 shares of the stock traded hands, compared to its average volume of 4,710,950. The stock’s 50-day simple moving average is $0.69 and its two-hundred day simple moving average is $0.84. The company has a debt-to-equity ratio of 2.13, a current ratio of 0.76 and a quick ratio of 0.76. Getty Images has a fifty-two week low of $0.36 and a fifty-two week high of $3.21. The stock has a market cap of $184.76 million, a price-to-earnings ratio of -1.70 and a beta of 2.11.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Weiss Ratings downgraded shares of Getty Images from a “sell (d)” rating to a “sell (e+)” rating in a research report on Tuesday, May 12th. Wedbush reiterated an “outperform” rating and set a $7.00 price objective on shares of Getty Images in a research report on Tuesday, May 12th. Finally, Zacks Research raised shares of Getty Images from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 4th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Getty Images currently has a consensus rating of “Hold” and a consensus target price of $3.78.

Insider Activity

In related news, insider Michael Teaster sold 38,100 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $0.79, for a total value of $30,099.00. Following the transaction, the insider owned 488,862 shares in the company, valued at approximately $386,200.98. This represents a 7.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Cho Mikael sold 59,604 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $0.94, for a total transaction of $56,027.76. Following the transaction, the senior vice president directly owned 121,650 shares in the company, valued at approximately $114,351. The trade was a 32.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 133,355 shares of company stock worth $120,542. Insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Barclays PLC lifted its stake in shares of Getty Images by 10.5% in the 4th quarter. Barclays PLC now owns 171,777 shares of the company’s stock valued at $230,000 after purchasing an additional 16,347 shares during the last quarter. Wells Fargo & Company MN increased its position in Getty Images by 46.8% during the fourth quarter. Wells Fargo & Company MN now owns 123,926 shares of the company’s stock worth $166,000 after buying an additional 39,495 shares during the last quarter. Cerity Partners LLC increased its position in Getty Images by 548.6% during the fourth quarter. Cerity Partners LLC now owns 160,469 shares of the company’s stock worth $215,000 after buying an additional 135,728 shares during the last quarter. Alliancebernstein L.P. raised its holdings in Getty Images by 12.4% during the third quarter. Alliancebernstein L.P. now owns 80,520 shares of the company’s stock valued at $159,000 after buying an additional 8,900 shares in the last quarter. Finally, Sei Investments Co. bought a new position in Getty Images during the second quarter valued at about $141,000. Institutional investors and hedge funds own 45.75% of the company’s stock.

Getty Images Company Profile

Getty Images (NYSE: GETY) is a leading global provider of digital visual content, offering an extensive library of stock photography, editorial imagery, video footage and music. The company supplies creative and rights-managed assets to a broad range of industries, including advertising, media, corporate communications and publishing. Through its online platform and licensing services, Getty Images enables customers to search, license and download multimedia content for commercial and editorial use.

Founded in 1995 by Mark Getty and Jonathan Klein, Getty Images pioneered the aggregation of photographic archives into a centralized, digital marketplace.