Neuberger Berman Group LLC, a significant shareholder in Getty Images Holdings, Inc. (NYSE:GETY), has disclosed the sale of 4.1 million shares of Class A common stock. The transaction, which took place on November 20, 2024, was executed at a price of $2.46 per share, amounting to a total of approximately $10.1 million. Following this sale, Neuberger Berman continues to hold over 74 million shares indirectly through its investment vehicle, Neuberger Berman Opportunistic Capital Solutions Master Fund LP. This move reflects part of the firm's ongoing strategic portfolio management.
In other recent news, Getty Images reported a year-on-year revenue growth of 4.9% in its Q3 2024 earnings call, with the revenue reaching $240.5 million. The company's adjusted EBITDA stood at $80.6 million. Subscription revenue, which now makes up over half of the total revenue, saw a significant increase, as did editorial revenue, boosted by major events like the Paris Olympics. However, there was a decrease in creative revenue and a free cash flow deficit.
CEO Craig Peters expressed optimism about the company's future, particularly regarding its generative AI initiatives and data licensing efforts. Despite a drop in creative revenue and a free cash flow deficit, Getty Images remains committed to growth and debt reduction. The company has raised its revenue guidance for 2024 to a range of $934 million to $943 million.
These are just a few of the recent developments at Getty Images. As the company navigates the evolving digital content landscape, it is strategically positioning itself for future growth with a focus on generative AI and data licensing.
InvestingPro Insights
The recent sale of Getty Images Holdings, Inc. (NYSE:GETY) shares by Neuberger Berman Group LLC comes at a time when the stock is facing significant headwinds. According to InvestingPro data, GETY's stock has experienced a 26.48% decline in the past month and a 45.52% drop year-to-date. This downward trend is further emphasized by the fact that the stock is trading near its 52-week low, with its current price at just 49.57% of its 52-week high.
Despite these challenges, InvestingPro Tips suggest that Getty Images' net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook is supported by the company's strong gross profit margin of 72.75% for the last twelve months as of Q3 2024, indicating efficient cost management.
However, investors should note that the stock's price movements are quite volatile, and short-term obligations exceed liquid assets, which could pose financial challenges. For those considering an investment in GETY, InvestingPro offers 11 additional tips that could provide valuable insights into the company's financial health and market position.
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