- Scott Peters
- 05 May, 2022
- New York City
Wayfair Inc, the online home furnishing platform reported March quarter total net revenues declined 13.9% to $3.0 billion and the U.S. net revenues fell 9.9% to $2.5 billion.
The company also reported a quarterly loss of $319 million compared to $18 million a year ago.
International revenues fell 31.4% to $500 million and the decline in constant currency was 29.6%.
Revenues per customer in the last 12 months increased 12.8% to $520 and order per customer decreased to 1.87 from 1.98 in the period ending in the first quarter 2021.
Number of active subscribers fell 23.4% to 25,6 million and orders delivered plunged 33% to 10 million from a year ago.
Average order increased 21% to $287 from $237 a year ago and about 60% of all orders were placed using mobile
Wayfair Inc is headquartered in Boston, Massachusetts and employs about 18,000 people.
Wayfair stock fell 24.25% to $68.73 and has fallen 65% in the year so far.
- Barry Adams
- 05 May, 2022
- New York City
EPAM System, Inc surged 13.6% to $354.72 after the tech support services for social media marketing said first quarter revenues rose 50.1% to $1.2 billion but net income decreased 18% to $89.7 million.
The company also guided second quarter revenues of at least $1.14 billion and diluted earnings per share of at least 73 cents.
Etsy, Inc plunged 14.8% to $92.80 after the online marketplace reported consolidated gross market sales increased 3.5% to $3.3 billion.
First quarter revenues increased 5.2% to $579.2 million and net income fell 40.1% to $86.1 million from a year ago.
Active sellers in the quarter increased 63% to 7.6 million and buyers rose 4.9% to 95.1 million.
The company guided between $540 million and $590 million revenues in the second quarter and gross marketplace sales between $2.9 billion and $3.2 billion and adjusted operating earnings margin of 25%.
The Hain Celestial Group dropped 18.2% to $27.46 after the organic food maker reported March quarter revenues rose 2.1% to $502.9 million and net income fell about 30% to $24.5 million from a year ago.
Earnings per share declined to 24 cents in the quarter compared to 34 cents a year ago.
The company guided fiscal year fourth quarter 2022 adjusted revenues to increase in low to mid-single digit and adjusted annual net sales to be flat.
Shopify Inc plunged 17.6% to $399.10 after the online merchant services provider reported lower-than-expected quarterly revenues of $1.2 billion, an increase of 22% from a year ago.
Monthly recurring revenues increased 17% to $105.2 million.
Adjusted operating earnings were $31.9 million or 3% of revenues in the quarter compared to $210.8 million or 21% of revenues in the quarter a year ago.
The company also announced plans to acquire San Francisco-based merchant fulfillment services provider Deliverr for $2.1 billion.
Sprouts Farmers Markets Inc plunged 24% to $23.83 after the organic food retailer said first quarter revenues increased 4% to $1.6 billion and net income increased 6% to $88.3 million.
Earnings per share increased to 80 cents from 70 cents a year ago.
The food retailer also said its annual earnings per share, earnings, and revenues outlook is more likely to be near the low end of the previous guidance. Rising inflation is forcing more customers to buy fewer items in the store.
The company also guided second quarter comparable store sales to be "relatively flat" and earnings per share between 49 cents and 53 cents.
Tripadvisor, Inc rose 5.6% to $25.93 after the travel support services provider reported first quarter revenues increased 113% to $262 million and net loss declined to $34 million from $80 million.
The company also appointed media veteran Matt Goldberg as its chief executive officer.
Wayfair Inc plunged 18% to $75.05 after the online home furnishing store reported March quarter total net revenues declined 13.9% to $3.0 billion and the U.S. net revenues fell 9.9% to $2.5 billion.
The company also reported a quarterly loss of $319 million compared to $18 million a year ago.
Number of active subscribers fell 23.4% to 25,6 million and orders delivered plunged 33% to 10 million from a year ago.
- Barry Adams
- 05 May, 2022
- New York City
U.S. stocks turned negative at the opening and began erasing most of the gains logged a day ago after the Fed lifted rates as widely anticipated and for now rejected the need for faster rate hike.
The S&P 500 index gained 1.1% to 4,249.34 and the Nasdaq Composite index declined 1.8% to 12,738.02.
Chairman Jerome Powell at a press conference after the rate decision yesterday highlighted the need to bring down the inflation from the current 8.5% rate to the Fed target rate of 2%.
However, Powell also added "our tools do not do well" with supply side shocks.
Chairman Powell added that the Fed is powerless in impacting the Inflation emanating from the rising energy prices and supply disruptions linked to China's Covid-19 lockdowns.
Powell went on to add that the "economy is strong" and "labor markets are stronger" and the labor market imbalance can be brought in sync using monetary policy tools.
The JOLT report released by the U.S. Department of Labor indicated there are at least 11.5 million job openings and 6.5 million people are looking for work.
Yet, the labor participation rate is held steady between 61% and 63% and the rate is expected to decline.
European markets traded higher and the pound tumbled after the Bank of England lifted the key interest rate by 25 basis points to 1%.
The central bank raised rates for the fourth time in a row and highlighted the risk of economic slowdown and added that the inflation is likely to peak around 10%.
The pound dropped 2% and fell to $1.23.
Markets in Japan and South Korea were closed today.
Market indexes in Mumbai surged at opening after the U.S. Federal Reserve raised its key rate 50 basis points and said that the faster rate increase of 75 basis points is not discussed at least for the next couple of meetings.
Benchmark indexes soared as much as 2% after 20 minutes of trading and traded in a tight range for the next two hours but erased most of the gains near close.
Tech stocks led the gainers followed by the strength in auto, steel, real estate and banks.
Tech Mahindra, Infosys, Tata Consultancy, Nestle India, Maruti Suzuki and Ultratech Cement led gainers.
Life Insurance Corporation public offering was subscribed 91% with policyholders nearly three times and employees nearly two times subscribing the allocated quota.
The Hang Seng Index in Hong Kong fell 0.4% after China's service sector contracted at the second fastest pace in April and on the ongoing China lockdowns and tech sector crackdown worries.
The ASX 200 index in Sydney rose 0.8%.
- Brian Turner
- 04 May, 2022
- New York City
U.S. trade deficit surged to a record high $109.8 billion in March from a revised $89.8 billion in February.
The trade deficit in goods and services are on the rise since the onset of the Covid-19 pandemic on the rising demand driven by the government stimulus and near doubling of energy prices.
U.S. trade deficit in March 2020 was $47 billion and has risen steadily on the growing goods deficit from $68 billion to $128 billion in two years and the falling services surplus from $22 billion to $18 billion.
Total value of goods and services imports in the month soared 10.3% to $351.5 billion and exports rose 5.6% to $241.7 billion.
March merchandise exports increased $12.9 billion from February to $241.7 billion, and merchandise imports gained $32.9 billion to $351.5 billion.
Merchandise trade deficit increased to $128 billion from $107.7 billion in February.
Services exports in March increased slightly to $71 billion and imports edged up a fraction to $52.7 billion resulting in a slight increase in service surplus to $18.3 billion.
Year-to-date total exports increased 17.7% to $983.8 billion, total imports rose 23.8% to $485.6 billion and the trade deficit rose 41.5% to $288.8 billion from the same period a year ago.
- Barry Adams
- 04 May, 2022
- New York City
U.S. stocks rallied after the Fed announced a widely expected rate hike of 0.5% and a plan to reduce the portfolio of government debt beginning next month.
The benchmark indexes rose sharply after the Fed Chairman Jerome Powell quashed the possibilities of larger rate hikes of 75 basis points.
The S&P 500 index jumped 3% to 4,300.17 and the Nasdaq Composite index added 3.2% to 12,964,86.
The Fed plans to let some of the maturing bonds roll-off and adjust the amount reinvested in government securities.
The Fed plans to let $30 billion of U.S. Treasury bonds and $17.5 billion of mortgage securities roll off for the next three months and then increase the cap to $60 billion a month.
At the proposed rate of caps, the Fed will shrink its portfolio by less than 10% over a year, if the plan is executed every month.
The 50 basis points is the largest increase that the policy committee has approved since May 2000 when the rates were increased to 6.5% after the collapse of internet stocks and dot com bubble.
In other economic news, U.S. trade deficit surged to a record high $109.8 billion in March from a revised $89.8 billion in February.
Imports in the month soared 10.3% to $351.5 billion and exports rose 5.6% to $241.7 billion.
Earnings were in focus also after AMD reported a surge in quarterly revenues and lifted the 2022 outlook, CVS earnings were ahead of expectations, and Airbnb said bookings have crossed pre-pandemic levels.
Stocks have rebounded for the second day in a row after the Nasdaq index lost the most since 2008 in April and the S&P 500's decline was the worst since March 2020 in the month.
In Europe, the DAX index fell 0.5%, and the FTSE 100 index dropped 0.9% and the CAC-40 index declined 1.3%.
The European Union proposed a ban on Russian oil imports and is working to prepare sanctions on Russian military officials accused of war crimes.
Eurozone private sector activities rose to the highest level in seven months in April on the strength in the service sector. The economic activities are roaring back on the easing of pandemic related restrictions.
The S&P Global composite output index increased to 55.8 in April, the most since September 2021 and the services Purchasing Managers' Index increased to an eight-month high of 57.7 in April from 55.6 in March.
Activities in France picked up at the fastest pace in April since the start of 2018 and in Italy the activities rose for the fifteenth month in a row.
Volkswagen AG posted higher quarterly profit and said vehicle deliveries are expected to increase between 5% and 10% and said semiconductor supplies are expected to improve in the second-half.
First quarter earnings surged to 6.56 billion euros or 13.05 euros per share from 3.24 billion euros or 6.45 euros per share in the previous year.
In Asia, markets in Japan were closed for Greenery Day holiday, China for Labor Day, and Indonesia and Malaysia for Eid celebration.
The benchmark index in Hong Kong fell 1% and in Taiwan gained 0.4%. Market indexes in South Korea, New Zealand, and Singapore closed nearly unchanged.
Stocks in Mumbai plunged after the Reserve Bank of India announced a rate hike in a surprise move citing acute inflationary pressures.
The Sensex index declined 1,306.96 or 2.3% to 55,669.03 and the Nifty index fell 391.50 or 2.3% to 16,677.60.
The Reserve Bank of India increased repo rate 40 basis points to 4.4% and cash reserve ratio by 50 basis points to 4.5% from May 21.
- Brian Turner
- 04 May, 2022
- New York City
The Federal Reserve on Wednesday lifted fed fund rates by 50 basis points and set the new target rate between 0.75% and 1%.
The central bank also proposed a plan to shrink its $9 trillion portfolio of government bonds beginning next month.
The two moves were widely anticipated by the market and stocks rallied after the release of the policy committee meeting statement and the plan.
The focus quickly shifted to the next policy meeting and investors are anticipating more aggressive rate hikes beginning June.
The Fed plans to let some of the maturing bonds roll-off and adjust the amount reinvested in government securities.
The Fed plans to let $30 billion of U.S. Treasury bonds and $17.5 billion of mortgage securities roll off for the next three months and then increase the cap to $60 billion a month.
At the proposed rate of caps, the Fed will shrink its portfolio by less than 10% over a year, if the plan is executed every month.
The 50 basis points is the largest increase that the policy committee has approved since May 2000 when the rates were increased to 6.5% after the collapse of internet stocks and dot com bubble.
Sustained hike in energy and home prices has lifted the consumer price inflation to a 4-decade high of 8.5% in March.
The Fed is hoping that its two-prong approach will cool down inflation and slow down the housing market.
For the year 2022, stocks and bonds have diverged in different directions and the S&P 500 index has fallen nearly 13% and the yield on 10-year U.S. Treasury bonds has jumped to 3%.
- Scott Peters
- 04 May, 2022
- New York City
Airbnb, Inc reported first quarter revenues increased 70% to $1,5 billion and net loss shrank to $19 million from $1.2 billion a year ago.
Diluted loss per share in the quarter fell to 3 cents from $1.95 a year ago.
Nights and experiences booked in the quarter jumped to $02.1 million from 64.4 million a year ago.
In the first quarter, gross booking volume soared to $17.2 billion from $10.3 billion a year ago.
The long-term stays of 28 days or more continue to be the fastest-growing category by trip length compared to 2019 and are at an all-time high.
Long-term stays accounted for 21% of gross nights booked in the first quarter 2022, up from 13% in the first quarter 2019 and down from 24% in the first quarter 2021.
In the quarter, the non-urban gross nights booked soared 80% from the first quarter in 2019 domestic gross nights booked also increased 65% in the period.
Gross nights booked to high-density urban destinations grew 80% compared to first quarter 2021, exceeding pre-pandemic first quarter 2019 levels, and gross nights booked for cross-border travel more than tripled from first quarter 2021, returning to near pre-pandemic first quarter 2019 levels.
U.S. and North America bookings in the quarter rose 25% from a year ago and jumped 55% from the first quarter in 2019.
EMEA bookings in the quarter rose 20% above the first quarter levels in 2019 but Asia Pacific travel remained depressed in the period as the region historically has relied on cross-border travel.
Latin America bookings in the quarter were 65% above the levels reached in the first quarter 2019.
Average daily rate increased 5% to $168 from the quarter a year ago surged 37% from the same period in 2019 driven by the price increase and business mix shift towards booking in North America, entire homes, non-urban destinations.
- Scott Peters
- 04 May, 2022
- New York City
Lyft Inc, the ride-hailing company, reported first quarter revenues soared 44% to $875.6 million and net loss shrank more than 50% to $196.9 million.
Diluted loss per share shrank to 57 cents from $1.31 a year ago.
Total active riders increased 32% to 17.8 million and revenue per active rider increased 9% to $49.18 from a year ago. i
The company also said second quarter higher marketing expenses are likely to depress the adjusted EBITDA to between $10 million and $20 million from $54.8 million in the first quarter.
At the end of the quarter the company reported $2 billion of cash and cash equivalent.
- Barry Adams
- 04 May, 2022
- New York City
Advanced Micro Devices, Inc increased 5.6% to $96.34 after the advanced chip maker reported first quarter revenues surged 71% to $5.9 billion and gross margin increased two percentage points to 48%.
Net income in the quarter increased 48% to $786 million and earnings per share 24% to 56 cents from 45 cents a year ago.
The chipmaker also lifted the full-year 2022 revenue growth outlook to 60% to $26.3 billion from the previous estimate of 31% increase.
Airbnb Inc increased 7% to $155.10 after the online travel booking site reported March quarter revenues soared 70% to $1.5 billion and net loss shrank to $19 million from $1.2 billion a year ago.
The company also reported the average daily room rate increased to $168, an increase of 5% from a year ago and 37% from the same quarter in 2019.
Nights and experiences booked on the platform exceeded 100 million for the first time ever and surpassed pre-pandemic levels.
Akamai Technologies Inc declined 11.8% to $100.39 after the network security company reported first quarter revenues increased 7% to $904 million and net revenues declined 23% to $119 million.
The adjusted earnings per share declined 1% to $1.39 below analysts' estimates on the account of blocking Russia related traffic and currency headwinds.
CVS Health Corp increased 1.2% to $97.57 after the pharmacy retailer's first quarter profit beat estimates and cited strong momentum across all business segments.
The pharmacy retailer lifted its adjusted earnings per share outlook for 2022 to a range between $8.20 and $8.40 from the previous range between $8.10 and $8.30 a share.
Lyft Inc plunged 27.6% to $22.20 after ride-hailing company reported first quarter revenues soared 44% to $875.6 million and net loss shrank more than 50% to $196.9 million.
The company also said second quarter higher marketing expenses are likely to depress the adjusted EBITDA to between $10 million and $20 million from $54.8 million in the first quarter.
Match Group Inc fell 4.8% to $75.11 said revenues increased 20% to $799 million and total subscribers increased 13% to 16.3 million.
Net income increased 3.3% to $180 million and diluted earnings per share rose to 60 cents from 57 a year ago.
The company guided second quarter revenues between $800 million and $810 million and adjusted operating earnings between $285 million and $290 million compared to $273 million in the first quarter.
Starbucks Corp gained 7.2% to $79.22 after the coffee chain retailer said March quarter revenues increased 15% driven by a stronger sales increase in the U.S. offset by sales decline in China, the second largest market for the coffee chain.
Operating margins also declined on the rising wages and supply chain costs.
The company is also facing employee unionization drive across its several locations and detailed higher wages and improved benefits
Tupperware Brands Corp plunged 29.8% to $12.74 after the storage products maker reported first quarter revenues declined 16% to $348.1 million and swung to a net loss of $0.1 million from $45.3 million profit a year ago.
The company also withdrew its full-year 2022 outlook and said it is not confident that it can achieve its targets in adjusted earnings per share and cash flow on the account of geopolitical tensions, supply disruptions and inflation trends.
Uber Technologies Inc fell 7.5% to $27.25 after the ride-hailing company reported first quarter gross booking surged 35% to $26.4 billion and revenues rose 136% to $6.9 billion.
Net loss in the quarter was $5.9 billion which included $5.6 billion unrealized losses linked to equity revaluations in Didi, Grab, and Aurora.
The company guided second quarter adjusted operating earnings between $240 million and $270 million from $170 million in the first quarter.
- Barry Adams
- 04 May, 2022
- New York City
Futures of leading U.S. stock indexes point higher opening ahead of the Fed decision this afternoon.
Futures of the S&P 500 and Nasdaq Composite indexes are up 0.4%.
Investors are stepping up to add positions citing market oversold conditions ahead of widely anticipated 0.5% interest rate hike this afternoon.
Investors also digested the latest batch of earnings from CVS, Yum Brands, Starbucks, AMD, Akamai, Airbnb, Uber, Lyft and others.
Starbucks said U.S. comparable sales rose driven by price increase and higher transactions and suspended its annual earnings estimates on the ongoing lockdown uncertainties in its second largest market China.
CVS Health Corp reported first quarter profit that beat estimates and cited strong momentum across all business segments.
The pharmacy retailer lifted its adjusted earnings per share outlook for 2022 to a range between $8.20 and $8.40 from the previous range between $8.10 and $8.30 a share.
In Europe, the DAX index fell 0.2%, and FTSE 100 index and CAC-40 index declined 0.5%.
The European Union proposed a ban on Russian oil imports and is working to prepare sanctions on Russian military officials accused of war crimes.
Eurozone private sector activities rose to the highest level in seven months in April on the strength in the service sector. The economic activities are roaring back on the easing of pandemic related restrictions.
The S&P Global composite output index increased to 55.8 in April, the most since September 2021 and the services Purchasing Managers' Index increased to an eight-month high of 57.7 in April from 55.6 in March.
Activities in France picked up at the fastest pace in April since the start of 2018 and in Italy the activities rose for the fifteenth month in a row.
Volkswagen AG posted higher quarterly profit and said vehicle deliveries are expected to increase between 5% and 10% and said semiconductor supplies are expected to improve in the second-half.
First quarter earnings surged to 6.56 billion euros or 13.05 euros per share from 3.24 billion euros or 6.45 euros per share in the previous year.
In Asia, markets in Japan were closed for Greenery Day holiday, China for Labor Day, and Indonesia and Malaysia for Eid celebration.
The benchmark index in Hong Kong fell 1% and in Taiwan gained 0.4%. Market indexes in South Korea, New Zealand, and Singapore closed nearly unchanged.
Stocks in Mumbai plunged after the Reserve Bank of India announced a rate hike in a surprise move citing acute inflationary pressures.
The Sensex index declined 1,306.96 or 2.3% to 55,669.03 and the Nifty index fell 391.50 or 2.3% to 16,677.60.
The Reserve Bank of India increased repo rate 40 basis points to 4.4% and cash reserve ratio by 50 basis points to 4.5% from May 21.
- Arjun Pandit
- 04 May, 2022
- New York City
In a surprise move, the Reserve Bank of India reversed its earlier stance on interest rate and lifted the key rate.
The central bank increased repo rate 40 basis points to 4.4% and cash reserve ratio by 50 basis points to 4.5% from May 21.
RBI Governor Shaktikanta Das announced the decision and said that the policy committee had voted unanimously to lift the rate after a meeting on May 4.
The central bank said in an accompanying statement highlighted geopolitical tensions arising from the war in Europe, persistent supply disruptions, and food and energy price surge in the last six months.
The RBI reiterated its medium term target for consumer price inflation at 4% with a 2% band.
The central bank also said it is prepared to remove its accommodative stance to achieve its inflation target while supporting growth.
The RBI lifted the repo rate for the first time since 2018 and cut the rate by 75 basis points in March 2020 at the outbreak of Covid-19 pandemic followed by another 40 basis point cut in May 2020.
The central bank highlighted inflationary pressures and noted " core inflation is likely to remain elevated in the coming months, reflecting high domestic pump prices and pressures from prices of essential medicines. Renewed lockdowns and supply chain disruptions due to resurgence of COVID-19 infections in major economies could sustain higher logistics costs for longer."
Consumer prices in India accelerated in the last few months and reached 7% in March accompanied by food price increases.
Since then, Indonesia has placed a ban on palm oil exports, energy prices have climbed higher, and runaway inflation has taken hold in domestic food prices.
The next policy meeting at the central bank is scheduled on June 6-8.
- Scott Peters
- 03 May, 2022
- New York City
Starbucks Corporation said second quarter 2022 revenues increased 15% to $7.5 billion and net income increased 2.3% to $674 million a year ago.
Diluted earnings per share increased to 58 cents from 56 cents a year ago.
Revenues at company operated stores increased 11% $6.3 billion and at licensed stores surged 43% to $850 million.
Revenues in North America increased 17% to $5.5 billion but operating margins declined to 17.1% from 19.3% primarily driven but higher supply chain costs and labor wages.
Global comparable sales increased 7% driven by a 4% increase in average ticket price and 3% increase in comparable transactions.
North America and U.S. comparable sales increased 12% driven by 7% increase in average ticket price and 5% increase in comparable transactions.
International comparable store sales fell 8%, driven by a 5% decline in average ticket price and a 3% fall in comparable transactions.
China, the second largest market for the coffee chain, comparable store sales declined 23%, driven by a 20% fall in comparable transactions and a 4% decline in average ticket price.
Total number of U.S. stores increased 1% to 16,926 and international store count increased 9% to 17,704.
The company opened 313 net new stores in the second quarter, ending the period with 34,630 stores globally and 51% company-operated and 49% licensed stores.
The coffee retailer said 15,544 stores in the U.S. and 5,654 in its second largest market China together total 61% of total stores.
Starbucks Reward Loyalty program 90-day active members increased 17% to 26.7 million.
- Brian Turner
- 03 May, 2022
- New York City
The number of available jobs and job resignations reached the highest levels in March since the record keeping began in December 2000, the U.S. Bureau of Labor Statistics reported today.
Seasonally adjusted new hires in the month increased to 6.5 million and total separations increased to 6.3 million which included 4.5 million resignations and 1.4 million layoffs.
The number of job openings was little changed at 11.5 million, the highest level in the history of the series.
Over the month, the job openings rate was little changed at 7.1%.
In March, the number of quits edged up 152,000 to a series high of 4.5 million. The rate was little changed at 3.0%.
Quits increased 88,000 in professional and business services and 69,000 construction.
Over the 12 months ending in March, hires totaled 77.7 million and separations totaled 71.4 million, yielding a net employment gain of 6.3 million.
These totals include workers who may have been hired and separated more than once during the year.
- Barry Adams
- 03 May, 2022
- New York City
U.S. stock market major indexes advanced slightly in a volatile session a day before a key policy meeting tomorrow.
The Fed's policy committee is set to adjust rates and investors are anticipating explanatory comments discussing how far the central bank is willing to go in lifting rates and steps on the way.
The S&P 500 index gained 0.5% to 4,175.26 and the Nasdaq Composite index rose 0.2% to 12,563.74.
Trading session was volatile and indexes lacked direction as investors digested a latest batch of 580 company earnings released in two days.
After the close, Airbnb, Akamai, AMD, Lyft, Starbucks and others are scheduled to release earnings.
The number of available jobs and job resignations reached the highest levels in March since the record keeping began in December 2000.
In Europe, the DAX index gained 0.7%, the CAC-40 index advanced 0.8%, and the FTSE 100 index increased 0.2%.
The Bank of England is set to lift its key rate after a policy meeting on Thursday.
Euro area jobless rate declined to a record low according to the latest data from Eurostat.
The seasonally adjusted unemployment rate declined to 6.8% in March from 6.9% in February and from 8.2% a year ago.
The number of unemployed in the currency zone declined 76,000 from February to 11.28 million and fell 1.93 million a year ago.
A separate report showed in March eurozone producer prices for durable goods rose 7.9% and non-durable goods rose 8.7%.
Asian markets closed mixed. Japan, India, and China markets were closed but indexes in Hong Kong and Australia gained.
After the local close, the Australian central bank also lifted its key cash rate to 0.35% from 0.1% and indicated future rate increases are likely.
- Scott Peters
- 03 May, 2022
- New York City
Shutterstock, Inc reported first quarter 2022 revenues increased 9% to $199 million and net income fell 10% to $26.5 million from a year ago.
Diluted earnings per share declined to 71 cents from 79 cents a year ago.
E-commerce revenues increased 7% to $127 million enterprise revenues rose 11% to $72 million.
E-commerce revenues represent 64% and enterprise sales channel represent 36% of total revenues.
E-commerce revenue growth was driven by higher subscriber revenue and also benefited from acquisitions of TurboSquid and PicMonkey.
Revenues in constant currency increased 11% in the quarter matching the growth rate in the prior year's period.
Free cash flow in the quarter declined to $10.2 million from $26.8 million a year ago.
The company plans to pay a quarterly dividend of 24 cents per outstanding common stock, payable on June 16, 2022 to stockholders of record at the close of business on June 2, 2022
Total subscribers at the end of the quarter increased to 359,000 from 306,000 a year ago.
Average revenues per customer in the last twelve months increased to $355 from $342 a year ago, average paid image downloads per month declined to 44.6 million from 45.8 million, and revenue per download increased to $4.22 from $3.96.
Shutterstock stock declined 10.8% to $68.77 and has dropped 37% in the year 2022 so far.
Guidance and Outlook
The company reiterated its previous full-year 2022 outlook.
The company guided full-year revenues to grow between 8% and 10% to between $835 million and $850 million.
The company estimated adjusted operating earnings between $210 million and $217 million and adjusted earnings per share between $3.65 and $3.80
Separately, the company said Stan Pavlovsky resigned as chief executive and a director to purse other interests.
The company said its executive chairman and founder Jonathan Oringer will serve as interim CEO until the license content provider names a successor.