Getty Images Q3 Earnings: Revenue Dip, Guidance Cut, Nvidia AI Partnership And More

Getty Images Holdings Inc GETY shares are trading lower Tuesday after the company reported third-quarter financial results and cut 2023 guidance below estimates. 

Q3 Earnings: Getty Images said third-quarter revenue decreased 0.5% year-over-year to $229.3 million versus the consensus estimate of $228.14 million, according to Benzinga Pro. The company reported a loss of 5 cents per share.

Net cash provided by operating activities totaled $25.2 million in the third quarter. The company generated $12.8 million of free cash flow in the quarter. Getty Images ended the quarter with $113.5 million in cash. 

"While we continue to operate in a challenging environment, we saw progress in a number of key areas in the third quarter, notably continued growth across Ecommerce where annual subscriber numbers were up across target markets," said Craig Peters, CEO of Getty Images.

"The quarter also saw us launch our generative AI service in partnership with NVIDIA which addresses fundamental customer needs around quality and commercial safety in use of generative content."

Getty Images further highlighted its partnership with Nvidia Corp NVDA, noting that its AI tool is trained solely by its own content and data and provides commercial use high-quality imagery with uncapped indemnification. 

Outlook: Getty lowered its full-year 2023 revenue guidance from a range of $920 million to $935 million to a new range of $900 million to $910 million versus estimates of $926.88 million. The company noted that the updated guidance reflects a change to how it's reporting legal fees.

Management will hold a conference call to discuss these results at 5 p.m. ET.

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GETY Price Action: Getty shares were down 5.83% after hours at $4.20 at the time of publication, according to Benzinga Pro.

Photo: Markus Spiske from Pixabay.