Shutterstock Analyst Highlights Mixed Q3 With Margins Offsetting Demand Headwinds

Needham analyst Bernie McTernan reiterated a Buy on Shutterstock, Inc SSTK with a $70 price target.
Shutterstock reported third-quarter FY22 revenue growth of 10% year-on-year to $204.1 million in constant currencies, missing the consensus of $213.8 million.
Adjusted EPS of $1.00 beat the consensus of $0.89.
SSTK reported a mixed quarter with the macro and demand headwinds weighing on revenue, causing SSTK to miss consensus expectations and lower the FY'22E guide.
Still, SSTK beat on adjusted EBITDA in the quarter and raised the midpoint of FY'22E guidance driven by higher margins.
He expects the focus of the call to be on analyzing SSTK's ability to grow in a more challenging macro environment while also balancing competition and disruptive technology with SSTK announcing a partnership with OpenAI, an AI-content creation platform.
Price Action: SSTK shares traded higher by 13.44% at $51.98 on the last check Tuesday.
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