Getty Images stock drops 3% on Q3 EPS miss & guidance cut

Getty Images (GETY) shares fell more than 3% after-hours following the company’s reported Q3 results and guidance cut.

Q3 EPS came in at ($0.05), worse than the consensus estimate of $0.04. Meanwhile, revenue of $229.3 million (down 0.5% year-over-year) beat the consensus estimate of $228.14M.

Creative revenue came in at $145.2 million, flat year-over-year, while editorial revenue was $79.9M, down 2.3% year-over-year. Annual subscription revenue as a percentage of total revenue increased to 55.9%, up from 49.4% in Q3/22.

“We are revising our 2003 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. We believe these impacts will continue through the fourth quarter,” said CFO Jennifer Leyden.

The company expects fiscal 2023 revenue to be in the range of $900-$910M (vs. prior $920-$935M), worse than the consensus estimate of $926.88M.