Getty Images Beats Earnings Expectations, But Analyst Downgrades 2025 Revenue & EBITDA Forecast

Getty Images Holdings, Inc. GETY shares are trading higher on Tuesday.

On Monday, the firm released its fourth-quarter results after the closing bell when it reported quarterly earnings of six cents per share, which beat the analyst consensus estimate of four cents. Quarterly revenue came in at $247.3 million, which beat the analyst consensus estimate of $246.31 million.

The company sees fiscal 2025 revenue in a range of $918 million to $955 million and adjusted EBITDA in a range of $272 million to $290 million.

According to JP Morgan analyst Cory A Carpenter, the initial outlook for 2025 suggests revenue will remain almost the same as the previous year, while adjusted EBITDA is expected to decrease by a mid-single-digit percentage.

This is below both the analyst's and market expectations. The decline is attributed to several factors, including currency exchange impacts, a lighter event calendar for odd years, production disruption caused by the Los Angeles’ fires and a one-time increase in SG&A costs related to compliance with SOX regulations as part of the ongoing Shutterstock merger.

Read More: Getty Images and Shutterstock Agree To Merge To Dominate Visual Content, Shares Jump

As a result, the analyst has lowered his 2025 revenue forecast by 2% and adjusted EBITDA forecast by 7%.

The analyst mentions that management has indicated production has not yet fully recovered to pre-strike levels.

Adjusted EBITDA forecast takes into account a $5 million headwind from foreign exchange and includes an $8 million one-time increase in SG&A expenses, as the company accelerates its efforts to comply with SOX regulations in preparation for the Shutterstock merger.

Additionally, the FX guidance is based on a Euro spot rate of 1.05 and a GBP spot rate of 1.26, which is more conservative compared to the current spot rates of 1.09 for the Euro and 1.30 for the GBP.

This difference could provide some potential upside if current exchange rates remain stable, Carpenter writes.

Price Action: GETY shares are trading higher by 2.79% to $2.210 at last check Tuesday.

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Photo: Shutterstock