Getty Images (NYSE:GETY) Issues Earnings Results

Getty Images (NYSE:GETY) announced its earnings results on Monday. The company reported ($0.05) earnings per share for the quarter, FiscalAI reports. The business had revenue of $229.10 million during the quarter, compared to analysts’ expectations of $235.23 million. Getty Images had a negative return on equity of 17.01% and a negative net margin of 10.94%.

Here are the key takeaways from Getty Images’ conference call:

• Negative Sentiment: Q2 revenue fell 2.5% year over year to $229.1 million, while adjusted EBITDA declined 8.4% to $62.3 million. Weakness in iStock and the agency business outweighed growth in Getty Images’ corporate and media operations.
• Negative Sentiment: Liquidity and leverage remain major concerns: free cash flow was negative $122.6 million after a $110.9 million warrant-litigation payment, cash ended the quarter at $51.6 million, and total debt was $2.1 billion. Management has hired Guggenheim Securities to evaluate financing and balance-sheet alternatives.
• Negative Sentiment: Management terminated the proposed Shutterstock merger after spending more than $100 million on professional fees and financing costs. The company also withdrew financial guidance while its capital-structure review continues through the third and potentially fourth quarters.
• Positive Sentiment: Getty Images reported continued momentum in higher-value areas, including 9.2% growth in editorial revenue, more than 350% growth in custom content solutions, and over 15% growth in Unsplash+ subscriptions. Premium Access represented more than 40% of total revenue and had retention of nearly 100%.
• Neutral Sentiment: The company plans to refocus iStock on premium offerings, reduce marketing with substandard returns, rationalize agency resources, and expand AI-related tools, content verification, natural-language search, and partnerships with technology and media platforms.

Getty Images Stock Performance

Shares of GETY stock traded up $0.00 on Monday, hitting $0.44. 8,755,827 shares of the stock were exchanged, compared to its average volume of 4,710,950. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 2.13. The firm has a market capitalization of $184.76 million, a PE ratio of -1.70 and a beta of 2.11. Getty Images has a one year low of $0.36 and a one year high of $3.21. The firm’s 50 day moving average is $0.69 and its two-hundred day moving average is $0.84.

Analysts Set New Price Targets

A number of research firms recently issued reports on GETY. Zacks Research upgraded shares of Getty Images from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 4th. Wedbush reissued an “outperform” rating and set a $7.00 target price on shares of Getty Images in a research report on Tuesday, May 12th. Finally, Weiss Ratings lowered shares of Getty Images from a “sell (d)” rating to a “sell (e+)” rating in a research note on Tuesday, May 12th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $3.78.

Insider Transactions at Getty Images

In other Getty Images news, insider Michael Teaster sold 38,100 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $0.79, for a total transaction of $30,099.00. Following the completion of the transaction, the insider owned 488,862 shares in the company, valued at $386,200.98. This trade represents a 7.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Cho Mikael sold 33,143 shares of Getty Images stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $0.94, for a total transaction of $31,154.42. Following the completion of the transaction, the senior vice president owned 162,904 shares of the company’s stock, valued at $153,129.76. The trade was a 16.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 133,355 shares of company stock worth $120,542 over the last 90 days. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Getty Images

Institutional investors have recently modified their holdings of the business. JPMorgan Chase & Co. raised its holdings in Getty Images by 43.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,434,545 shares of the company’s stock valued at $4,041,000 after acquiring an additional 742,008 shares during the period. Readystate Asset Management LP bought a new position in shares of Getty Images in the fourth quarter worth $3,071,000. Geode Capital Management LLC grew its position in shares of Getty Images by 14.0% in the second quarter. Geode Capital Management LLC now owns 1,866,490 shares of the company’s stock valued at $3,099,000 after purchasing an additional 228,532 shares in the last quarter. Millennium Management LLC raised its stake in shares of Getty Images by 160.7% during the 4th quarter. Millennium Management LLC now owns 1,530,821 shares of the company’s stock valued at $2,051,000 after purchasing an additional 943,567 shares during the period. Finally, Callodine Capital Management LP bought a new stake in shares of Getty Images during the 4th quarter valued at $670,000. 45.75% of the stock is currently owned by hedge funds and other institutional investors.

About Getty Images

Getty Images (NYSE: GETY) is a leading global provider of digital visual content, offering an extensive library of stock photography, editorial imagery, video footage and music. The company supplies creative and rights-managed assets to a broad range of industries, including advertising, media, corporate communications and publishing. Through its online platform and licensing services, Getty Images enables customers to search, license and download multimedia content for commercial and editorial use.

Founded in 1995 by Mark Getty and Jonathan Klein, Getty Images pioneered the aggregation of photographic archives into a centralized, digital marketplace.