Getty Images Holdings, Inc. Q1 FY2025 earnings call

• First quarter revenue was $224.1 million with 0.8% growth (2.6% currency-neutral). Adjusted EBITDA was $70.1 million, down 0.1% (2.2% currency-neutral). - Annual subscription business growing, driven by corporate sector with premium access and Unsplash+ growth, strong video, news, and sport demand. - Sport business had strong start with new exclusive partners like WWE, MLS, NWSL and renewed UEFA partnership; Formula 1 coverage. - Entertainment business impacted by LA fires, but production team partnered with various events. Custom content solution popular with 3M, Fujitsu as repeat customers. - Photographers won 115 awards. - Received additional info requests from DOJ and CMA regarding merger with Shutterstock, expect transaction to close in second half of 2025. - Focus on navigating challenges, annual subscription business over half of revenue, positioning for macro uncertainty.

First quarter revenue for 2025 was $224.1 million, representing growth of 0.8% or 2.6% on a currency-neutral basis. Adjusted EBITDA was $70.1 million for the quarter, down 0.1% or up 2.2% on a currency-neutral basis. Annual subscription revenue was 57.2% of total revenue in the first quarter, up from 54.7% in Q1 of last year. Annual subscription revenue grew by 5.4% or 7.2% on a currency-neutral basis, with 56,000 active annual subscribers added to reach 318,000 in the Q1 LTM period. Editorial revenue was $82.6 million, an increase of 4% year-on-year and 5.6% on a currency-neutral basis. Creative revenue was $132.2 million, down 4.8% year-on-year and 3% on a currency-neutral basis. Other revenue was $9.3 million, an increase of $5.3 million from Q1 2024.

• Anticipate revenue of $931 million to $968 million, down 0.9% to up 3.1% YOY (down 1% to up 3% currency-neutral). - Adjusted EBITDA expected $277 million to $297 million, down 7.6% to 1.2% YOY (down 7.9% to 1.4% currency-neutral). - Guidance includes one-off $8 million SG&A increases for SOX compliance in Q2-Q4; merger-related costs excluded. - FX impact updated with prior quarter headwind offset by rest of year benefit.

• Ongoing regulatory review of merger with Shutterstock. - Early FX pressures, tariff-driven uncertainty, softness in agency, production, and entertainment sectors (impacted by LA fires). - Macro economic uncertainty, trade wars, and other global conditions not fully reflected in guidance.

Q: On subscription mix shift to corporate and subscriber base growth, A: Continued trend of corporate marketing build-out, iStock small and medium businesses growth, subscription growth slowing but retention good.

Q: On Q1 impacts and macro, A: Revenue recognition item is standard, LA fires impact continuing, FX volatility monitored, broader macro baked into guidance.

Q: On guidance acceleration and AI copyright, A: Growth from subscription, video, Unsplash+, AI adoption low-single digits, litigation vs Stability AI for copyright clarity.

Q: On AI offering adoption and client spend, A: AI adoption low-single digits, revenue in single-digit millions, bundling AI into subscriptions, agency business slowdown in macro uncertainty.