Getty Images stock plunged almost 8% in afterhours trade Tuesday as the visual content business downwardly revised its full-year guidance and reported third quarter earnings that missed estimates.
For 2023, Getty now expects revenue in the range of $900 million to $910 million, down from its prior guidance range of $920 million to $925 million.
This is also below analysts’ forecasts of $986.3 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be in the range of $287 million to $295 million, down from its prior guidance of $292 million to $303 million.
“We are revising our 2023 guidance due to the ongoing challenging market conditions, including the adverse impacts from the Hollywood strikes and pressures on our agency business, as well as due to the impact from the unexpected strengthening of the U.S. dollar,” Getty CFO Jennifer Leyden said.
“We believe these impacts will continue through the fourth quarter.”
For 3Q, Getty narrowed its loss from $118.1 million, or a loss per share of $0.47, in 3Q 2022 to $18.4 million, or a loss per share of $0.05, missing estimates of earnings per share of $0.03.
Revenue declined by 0.5% year-over-year to $229.3 million, ahead of estimates of $228 million.
“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 e-commerce where annual subscriber numbers were up across target markets,” Getty CEO Craig Peters said.
Getty shares were down 7.8% at US$4.12 shortly following the release of its quarterly results.
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