Shares of Getty Images (NYSE:GETY) dropped over 2% intra-day today after the announcement of the company’s third-quarter results and a reduction in its financial guidance.
The company reported a third-quarter earnings per share (EPS) of negative $0.05, which was below the Street estimate of a positive $0.04. However, Getty Images’ revenue for the quarter was $229.3 million, a slight 0.5% decrease from the previous year, but it still surpassed the Street forecast of $228.14 million.
Breaking down the revenue, creative segment revenue remained steady year-over-year at $145.2 million, while editorial revenue decreased by 2.3% to $79.9 million. Notably, the proportion of annual subscription revenue to total revenue increased to 55.9%, up from 49.4% in the same quarter of the previous year.
For fiscal year 2023, Getty Images has adjusted its revenue expectations to a range of $900 million to $910 million. This projection is lower than both the company’s previous forecast of $920 million to $935 million and the Street estimate of $926.88 million.