Mikael Cho, Senior Vice President at Getty Images Holdings, Inc. (NYSE:GETY), reported selling shares worth approximately $17,786, according to a recent SEC filing. The company, currently trading near its 52-week low of $2.10, has seen its stock decline over 58% in the past year, according to InvestingPro data. The transactions, executed on December 24, involved the sale of 5,348 shares and 2,737 shares at an average price of $2.20 per share. These transactions were part of non-discretionary sales to cover mandatory tax withholding obligations related to the vesting of restricted stock units. Following these transactions, Cho holds 113,299 shares directly, and 100,575 shares indirectly through his spouse. Despite recent price volatility, Getty Images maintains a healthy gross profit margin of 73% and is expected to remain profitable this year. For deeper insights into insider trading patterns and comprehensive analysis, including 10+ additional ProTips, check out the Getty Images InvestingPro Research Report.
In other recent news, Getty Images has reported a 4.9% year-on-year increase in its third quarter 2024 revenue, reaching $240.5 million. The company's adjusted EBITDA stood at $80.6 million for the same period. Subscription and editorial revenues saw significant growth, with subscriptions now accounting for over half of the total revenue, and editorial revenue benefiting from major events such as the Paris Olympics. However, creative revenue experienced a decrease, and there was a deficit in free cash flow.
In a strategic partnership, Getty Images and AI development company Clarifai are providing Clarifai's enterprise customers with access to AI-generated images. This collaboration aims to offer an alternative to traditional stock imagery, enabling the creation of unique visual content directly through the Clarifai platform. The partnership emphasizes commercial safety, respect for intellectual property, and customer confidence in using AI-generated visuals for commercial purposes.
These recent developments indicate Getty Images' commitment to strategic growth and debt reduction. The company has raised its revenue guidance for 2024 to a range of $934 million to $943 million, with adjusted EBITDA expectations set between $292 million and $294 million. Despite facing challenges such as a decrease in creative revenue and free cash flow, Getty Images remains optimistic about growth through generative AI initiatives and data licensing efforts.
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