Vice President of Corporate Development and Investor Relations, Shutterstock
Search every verified Chris Suh interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. On Shutterstock’s Q2 2023 earnings call, Chris Suh discussed the company’s recent performance and strategic moves. He noted that the company signed “industry-shaping AI data partnerships” and acquired Giphy to focus on “moment marketing and conversational content.” Suh stated that Shutterstock would begin breaking out revenue from its data engine, which includes partnerships with OpenAI, LG, Meta, Nvidia, and a new five-year content and data partnership with Google. He reported that the data engine grew from $4 million in 2021 to $20 million in 2022 and $34 million year-to-date in 2023. Suh also addressed generative AI trendshare, saying that while customers are experimenting with generative AI images, they are not “substituting them for original content in marketing campaigns in any meaningful way.” He highlighted the rollout of a generative AI indemnification offering for enterprise clients, citing research that 93% of enterprise customers consider indemnification important. On financial results, Suh reported that enterprise channel revenue grew 22% in Q2, driven by the data engine, while e-commerce declined 12% due to weakness in new customer acquisition. He also noted the closure of the Giphy acquisition for $53 million in net cash, a new $100 million share buyback program, and the repurchase of 80,000 shares for $4 million.
“We are signing industry-shaping AI data partnerships and acquired Giphy to lead the way in moment marketing and conversational content. We are embracing a culture of rapid and iterative experimentation when it comes to managing our content business.”
“Beginning today we will be breaking out the revenue derived from our data engine, which includes multi-year partnerships with large tech companies such as OpenAI, LG, Meta, Nvidia, and now our newly announced transformational partnership with Google.”
“Despite customers experimenting and creating generative AI images in large quantities, they are not downloading such images and substituting them for original content in marketing campaigns in any meaningful way at this point in time.”
“We recently rolled out our generative AI indemnification offering to our Enterprise clients. Research suggests that 93% of Enterprise customers say indemnification for generative AI content is an important factor when choosing a vendor, and 45% say liability concerns are the biggest barriers to generative AI usage toda...”
“Our data engine has grown from $4 million in 2021 to $20 million in 2022 and to $34 million year-to-date in 2023. We have seen a significant uptick from the world's largest tech platforms licensing our metadata for training generative AI models.”
“In the second quarter, we signed a strategic partnership with Google that includes a five-year content and data partnership across Google products and services. This represents a multifold expansion of the long-term content API relationship we've had for many years.”
“We are reinvesting significantly into our future engines of growth while running a highly profitable and cash generative business. We see tremendous potential to benefit from generative AI and be a winner with our creative and data engines representing an increasingly important part of our business.”
“Our Enterprise channel was up 22% in the second quarter driven by revenue from our data engine, which grew to $17 million in Q2 2023, a record quarter. Our e-commerce channel was down 12% driven primarily by weakness in new customer acquisition.”
“During Q2 we closed on our acquisition of Giphy for $53 million in net cash inclusive of working capital. The transaction was determined to be at a significant discount to fair value from an accounting perspective, and so we recognized a $42 million bargain purchase gain in the second quarter.”
“We announced a new $100 million share buyback program and repurchased 80,000 shares for $4 million. We also paid $10 million related to our quarterly dividend. Even after executing on the Giphy acquisition in Q2, we are on the lookout for attractive bolt-on acquisitions.”
Shutterstock, Inc. (NYSE:SSTK) Q2 2023 Earnings Conference Call August 1, 2023 8:30 AM ET Company Participants Chris Suh ...
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