Q2 2024 Getty Images Holdings Inc Earnings Call

August 12, 2024

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Operator: Good morning, and welcome to Getty Images' second quarter 2024 earnings conference call. Today's story is being recorded. You have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Stephen Kanner, Vice President of Investor Relations and Treasury, at Getty Images. Thank you.

Speaker Change: Good morning, and welcome to Getty images second quarter 'twenty to 'twenty four earnings conference call.

Operator: Please stand by; your program is about to begin. Good morning and welcome to Getty Images' second quarter 2024 earnings conference call. Today's call is being recorded. We have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Stephen Kanner, Vice President of Investor Relations and Treasury at Getty Images. Thank you. You may begin.

Speaker Change: Today's call is being recorded we have allocated one hour for prepared remarks and Q&A.

Justin Cantor: At this time I would like to conference over just given Cantor Vice President of Investor Relations and Treasury, how do you get any images. Thank you you may begin.

Stephen Kanner: Good afternoon, and welcome to the Getty Images second quarter 2024 earnings call. Joining me on today's call are Craig Peters, Chief Executive Officer, and Jen Layden, Chief Financial Officer. Before we begin, we would like to remind you that this call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks, uncertainties, and assumptions, which could cause our actual results to differ materially from these statements.

Justin Cantor: Good afternoon, and welcome to the Getty images second quarter 2024 earnings call.

Speaker Change: Joining me on today's call are Greg Peters, Chief Executive Officer, and John Leighton Chief Financial Officer.

Stephen Kanner: Before we begin, we would like to remind you that this call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks, uncertainties, and assumptions, which could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are highlighted in the forward-looking statements section of Friday's press release and in our filings with the SEC. Links to these filings and Friday's press release can be found on our Investor Relations website at investors.gettyimages.com.

Stephen Kanner: These risks, uncertainties, and assumptions are highlighted in the forward-looking statements section of Friday's press release and in our filings with the SEC. Links to these filings and Friday's press release can be found on our Investor Relations website at investors.gettyimages.com. During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less CapEx, and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they represent our operational performance and underlying results of our business. Reconciliations of GAAP to non-GAAP measures, as well as a description, limitations, and rationale for using each measure, can be found in our filings with the SEC.

Speaker Change: Before we begin we.

Speaker Change: We would like to remind you that this call will include forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Speaker Change: Statements are subject to various risks uncertainties and assumptions, which could cause our actual results to differ materially from these statements.

Speaker Change: These risks uncertainties and assumptions are highlighted in the forward looking statements section of <unk> press release and in our filings with the SEC.

Speaker Change: Links to these filings since Friday's press release can be found on our Investor Relations website at investors got Getty images Dot com.

Stephen Kanner: During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less CapEx, and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they represent our operational performance and underlying results of our business. Reconciliations of GAAP to non-GAAP measures, as well as the description, limitations, and rationale for using each measure, can be found in our filings with the SEC. After our prepared remarks, we'll open the call to your questions. With that, I will hand the call over to our Chief Executive Officer, Craig Peters.

During our call today, we will also reference certain non-GAAP financial information.

Speaker Change: Including adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA, less capex and free cash flow.

Speaker Change: We use non-GAAP measures in some of our financial discussions as we believe they represent our operational performance and underlying results of our business.

Speaker Change: Reconciliations of GAAP to non-GAAP measures as well as the description limitations and rationale for using each measure can be found in our filings with the SEC.

Stephen Kanner: After our prepared remarks, we'll open the call to your questions. With that, I will hand the call over to our Chief Executive Officer, Craig Peters. Thanks, Stephen, and thank you to everyone for joining Getty Images' second quarter earnings call. I will touch on our performance and progress at a high level before Jen takes you through the full second quarter financial results. I am pleased to report, as expected, we returned to growth in the second quarter with revenue of $229.1 million, representing a year-on-year increase of 1.5% on a reported basis and 2.1% on a currency-neutral basis. Adjusted to EBITDA, it came in at $68.8 million for the quarter.

Speaker Change: After our prepared remarks, well open the call to your questions.

Speaker Change: With that I will hand, the call over to our Chief Executive Officer, Greg Peters.

Craig Peters: Down 5.4% on a reported basis and 4.7% currency neutral, but continuing to represent a healthy EBITDA margin of 30%. We continue to see some softness from our agency and production customers, impacting both creative and editorial, and most notably, our video revenue. However, we achieve growth across each of our Getty Images, iStock, and Unsplash brands, and we continue to see strong utilization of our offerings, reflected by growth in paid downloads with consumption centered on our exclusive creative and editorial content.

Craig Peters: Thanks, Stephen, and thank you to everyone for joining us on the Getty Images second quarter earnings call. I will touch on our performance and progress at a high level before Jen takes you through the full second quarter financial report. I am pleased to report, as expected, we returned to growth in the second quarter with revenue of $229.1 million, representing a year-on-year increase of 1.5% on a reported basis and 2.1% on a currency-neutral basis. Adjusted EBITDA came in at $68.8 million for the quarter, down 5.4% on a reported basis and 4.7% on a currency-neutral basis but continuing to represent a healthy E

Greg Peters: Thanks, Steven and thank you to everyone for joining Getty images second quarter earnings call.

Greg Peters: I will touch on our performance and progress at a high level before John takes you through the full second quarter financial results.

John Leighton: I am pleased to report as expected we returned to growth in the second quarter with revenue of $229 1 million.

John Leighton: Representing a year on year increase of one 5% on a reported basis.

John Leighton: And two 1% on a currency neutral basis adjusted.

Adjusted EBITDA.

John Leighton: And at $68 8 million for the quarter.

Five 4% on a reported basis and four 7% currency neutral, but continuing to represent a healthy EBITDA margin of 30%.

Craig Peters: We continue to see some softness from our agency and production customers, impacting both creative and editorial, and most notably our video revenue. However, we achieve growth across each of our Getty Images, iStock, and Unsplash brands, and we continue to see strong utilization of our offerings reflected by growth in paid downloads, with consumption centered on our exclusive creative and editorial content. It would not be an earnings call if the CEO did not speak to our embrace of AI, but I want to start by grounding us in what really sets Getty Images apart, our partnerships and unique access, our deep expertise embedded across our staff and exclusive contributors, and comprehensive coverage in archives.

John Leighton: We continue to see some softness from our agency and production customers impacting both creative and editorial and most notably our video revenues.

John Leighton: However, we achieved growth across each of our Getty images.

John Leighton: And on Splash brands and.

John Leighton: And we continue to see strong utilization of our offerings reflected by growth in paid downloads with consumption is centered on our exclusive creative and editorial content.

Craig Peters: It would not be an earnings call if the CEO did not speak to our embrace of AI, but I want to start by grounding us in what really sets Getty Images apart, our partnerships and unique access, our deep expertise embedded across our staff and exclusive contributors, our comprehensive coverage and archive, our best in class, sir, and our deep customer relations. I was extremely fortunate to spend last week in Paris and observe how this uniqueness is demonstrated at an event like the Summer Olympics.

Speaker Change: It would not be an earnings call if the C O did not speak to our embrace of AI.

I want to start by grounding us in like really that's Getty images apart.

Speaker Change: Our partnerships and unique access our deep expertise embedded across our staff and exclusive contributors.

Speaker Change: Our comprehensive coverage and archive.

Craig Peters: Our best in class, sir, and our deep customer relations. I was extremely fortunate to spend last week in Paris and observe how this uniqueness is demonstrated at an event like the Summer Olympics. We've been the official photographic agency of the International Olympic Committee for more than 25 years. Our experienced team of more than 140 individuals captured every moment across more than 70 sports for both men's and women's competitions. We captured the grandeur of the host city and the celebrities and dignitaries performing and in attendance. We also captured the action from every angle, including from the air and below the water.

Speaker Change: Our best in class search.

Speaker Change: Our deep customer relationships.

I was extremely fortunate to spend last week in Paris and observe how this uniqueness is demonstrated in an event like the Summer Olympics.

Craig Peters: We have been the official photographic agency of the International Olympic Committee for more than 25 years. Our experienced team of more than 140 individuals captured every moment across more than 70 sports for both men's and women's competitions. We captured the grandeur of the host city and the celebrities and dignitaries performing and in attendance. We captured the action from every angle, including from the air and below the water.

Craig Peters: All told, we shot and edited more than 5 million images over the course of the games, and we delivered this content to our customers with unmatched speed. Our archive allowed customers to tell deeper stories about Paris and tie the Paris Games and its athletes to their rightful place in history. Our commercial team was also on the ground, delivering best-in-class service to the International Olympic Committee and its family of partners and sponsors, including NBCUniversal, Comcast, and Coca-Cola. Procter & Gamble, Visa, Toyota AB InBev, and Samsung Electronics, to name a few.

Speaker Change: We've been the official photographic agency of the International Olympic Committee for more than 25 years.

Speaker Change: Our experienced team of more than 140 individuals' captured every moment across more than 70 sports for both men's and women's competition with.

Speaker Change: We captured the grandeur of the host city and the celebrities and dignitaries performing and then in attendance.

Speaker Change: We captured the action from every angle, including from the air and below the water.

Craig Peters: All told, we shot and edited more than 5 million images over the course of the games, and we delivered this content to our customers with unmatched speed. Our archive allowed customers to tell deeper stories about Paris and tie the Paris Games and its athletes to their rightful place in history. Our commercial team was also on the ground, delivering best-in-class service to the International Olympic Committee and its family of partners and sponsors, including NBCUniversal, Comcast, and Coca-Cola. Procter & Gamble, Viva, Toyota AB InBev, and Samsung Electronics, to name a few. And we did all of this while covering the world beyond Paris, global elections and conflict.

Speaker Change: All told we shot and edited more than 5 million images over the course of the games and.

And we delivered this content to our customers with unmatched speed.

Speaker Change: Our archive allowed customers to tell them deeper stories about Paris and.

Speaker Change: And tied to Paris games, and as athletes to their rightful place in history.

Speaker Change: Our commercial team was also on the ground.

Speaker Change: Delivering best in class service to the International Olympic Committee, and its family of partners and sponsors, including NBC Universal Comcast Coca Cola.

Speaker Change: <unk> and Gamble.

Speaker Change: Visa.

Speaker Change: Toyota.

A b inbev.

Speaker Change: And Samsung electronics to name a few.

Craig Peters: And we did all of this while covering the world beyond Paris. Global Elections and Conflicts, climate events, the latest concert performance, a movie premiere, and major sporting events, such as Formula One, where we're also their official photographic partner. If you remember, in April, we announced the acquisition of Motorsport Images to deepen our footprint within the sport, and I'm pleased to report we added more than 300,000 images to our archive and worked closely to support new commercial partners such as McLaren Racing and Aston Martin.

Speaker Change: And we did all of this while covering the world beyond Paris.

Speaker Change: Global elections and conflicts.

Craig Peters: Climate Events, The latest concert performance, a movie premiere, and major sporting events, such as Formula One, where we're also their official photographic partner. If you remember, in April, we announced the acquisition of Motorsport Images to deepen our footprint within the sport, and I'm pleased to report we added more than 300,000 images to our archive and worked closely to support new commercial partners such as McLaren Racing and Aston Martin. I am proud of the scale and scope of what our team accomplished. I am proud of the level of professionalism displayed.

Speaker Change: Climate events.

Speaker Change: The latest concert performances movie premieres.

Speaker Change: And major sporting events, such as Formula One where we're also their official photographic partner.

Speaker Change: If you remember in April we announced the acquisition of Motorsport images to deepen our footprint within the sport and I am pleased to report we added more than 300000 images to our archive.

Speaker Change: And worked closely support new commercial partners, such as Mclaren racing at Aston Martin.

Craig Peters: I am proud of the scale and scope of what our team accomplished. I am proud of the level of professionalism displayed. I'm reminded of what truly sets Givety Images apart and of the durable value we convey to our customers. On the technology front, we continue to innovate to bring true, commercially safe, high-quality generative AI services to our customers. We launched an updated model of our commercially-safe generative AI services and tools in partnership with NVIDIA that brings lightning-fast speeds and higher-quality visuals, including improved detail for high-resolution 4K output.

I am proud of the scale and scope of what our team accomplished I am proud of the level of professionalism displayed.

Craig Peters: I'm reminded of what truly sets Getty Images apart and of the durable value we convey to our customers. On the technology front, we continue to innovate to bring true, commercially safe, high-quality generative AI services to our customers. We launched an updated model of our commercially-safe generative AI services and tools in partnership with NVIDIA that brings lightning-fast speeds and higher-quality visuals, including improved detail for high-resolution 4K output.

Speaker Change: Im reminded of what truly sets <unk> images apart.

Speaker Change: And of the durable value, we convey to our customers.

Craig Peters: We rolled out capabilities allowing customers to use AI across our pre-shot creative library, enabling customers to modify both generative AI images and existing pre-shot creative images. Additionally, we announced the option for customers to fine-tune the commercially safe foundational model using their own proprietary content. We announced our partnership with Pixar to offer a custom, commercially safe model to their millions of creators, marketers, and small business customers. We also announced the renewal of our longstanding Canva partnership, providing Canva's customers with access to millions of Getty Images award-winning creative image and video assets and an agreement to collaborate to develop responsibly trained, commercially safe generative AI for their platform.

Speaker Change: On the technology front.

Speaker Change: We continue to innovate to bring true commercially safe high quality generative AI services to our customers well.

Speaker Change: We launched an updated model of our commercially safe generative AI services and tools and partnership with Nvidia.

It brings lightning fast speeds and higher quality visuals <unk>.

Speaker Change: <unk> improved detail for high resolution <unk> outputs.

Craig Peters: We rolled out capabilities allowing customers to use AI across our pre-shot creative library, enabling customers to modify both generative AI images and existing pre-shot creative images. Additionally, we announced the option for customers to fine-tune the commercially safe foundational model using their own proprietary content. We announced our partnership with Pixar to offer a custom commercially safe model to their millions of creators, marketers, and small business customers. We announced the renewal of our longstanding Canva partnership, providing Canva's customers with access to millions of Getty Images award-winning creative image and video assets and an agreement to collaborate to develop responsibly trained, commercially safe generative AI for their platform.

Speaker Change: We rolled out capabilities, allowing customers to use AI across our pre shot create a library and.

Speaker Change: Enabling customers to modify both generative AI images and existing pre shot creative images.

Speaker Change: We announced the option for customers to fine tune, the commercially say foundational model using their own proprietary content.

Speaker Change: We announced our partnership with Pixar.

Speaker Change: To offer a custom commercially safe model. So there are millions of creators marketers and small business customers.

Speaker Change: We announced the renewal of our long standing camber relationship providing canvas customers with access to millions of Getty images award, winning creative image and video assets.

Speaker Change: And agreement to collaborate to develop responsibly trained commercially safe generative AI for their platform.

Craig Peters: I am proud of the progress we're making on this. I am proud of the quality of our offerings and the legality and integrity of how they are trained, and by the company we keep. I am reminded of the truly unique capabilities of Getty Images. I will end my remarks by saying that I'm excited to build on our momentum in the second half of 2024. I will now turn it over to Jen to take you through the more detailed findings.

Speaker Change: I am proud of the progress we're making on this front I am proud of the quality of our offerings and the legality and integrity with how they are trained.

Speaker Change: And by the company we keep.

I am reminded of the truly unique capabilities of Getty images.

I will end my remarks by saying that I am excited to build on our momentum over the second half of 2024.

I will now turn it over to Jen. Thank you to the more detailed financials.

Jen Layden: As Craig mentioned, our business returned to top-line growth in Q2, with headwinds turning to tailwinds. Our editorial business is back to the growth we have historically seen after four consecutive quarters of decline due to the Hollywood strike impacts. Our subscription business continues to expand, now up to 52.9% of total revenue, and our key performance metrics continue to be healthy. Positive growth momentum across our business in spite of a still challenged agency business and a slow ramp-up of post-Hollywood strike activity from our media and production customers provides a solid foundation from which we continue to execute toward a strong second half of the year.

Jen: As Craig mentioned, our business returned to topline growth in Q2 with headwinds turning to tailwind.

Jen: Our editorial business is back to the growth we have historically seen after four consecutive quarters of decline due to Hollywood strike impact.

Jen Layden: Our subscription business continues to expand, now up to 52.9% of total revenue, and our key performance metrics continue to be healthy. Positive growth momentum across our business in spite of a still challenged agency business and a slow ramp-up of post-Hollywood strike activity from our media and production customers provides a solid foundation from which we continue to execute toward a strong second half of the year. Let's begin by highlighting some of our KPIs, which were reported on a trailing 12-month basis, or the LTM period ended June 30, 2024, with comparison to the LTM period ended June 30, 2023. Total purchasing customers were 740,000, down from 830,000 in the comparable LTM period.

Jen: Our subscription business continues to expand now up to 52, 9% of total revenue and our key performance metrics continue to be healthy.

Speaker Change: Positive growth momentum across our business in spite of a still challenged agency business and a slow ramp up of post Hollywood strike activity from our media and production customers provides a solid foundation from which we continue to execute towards a strong second half of the year.

Jen Layden: The decrease is related to lower volumes of a la carte transactions, which reflects both our continued shift into committed annual subscriptions and a still pressured agency business, which consumes nearly entirely on an a la carte basis. Importantly, we continue to see the benefit of higher lifetime customer value as we shift into more committed solutions. With the total annual revenue per purchasing customer growing 10.7% to $1,232 from $1,113 in the comparable LTM period.

Jen Layden: Let's begin by highlighting some of our KPIs, which were reported on a trailing 12-month basis, or the LTM period ended June 30, 2024, with comparison to the LTM period ended June 30, 2023. Total purchasing customers were 740,000, down from 830,000 in the comparable LTM period.

Speaker Change: Let's begin by highlighting some of our Kpis, which are reported on the trailing 12 month basis. Our LTM period ended June 30th 2024th with comparison to the LTM period ended June 32023.

Total purchasing customers for 740000 down from 830000 in the comparable LTM period.

Speaker Change: The decrease was related to lower volumes of Ala Carte transaction, which reflects both our continued shift into committed annual subscription and are still pressured agency business, which consumes nearly entirely and all that.

Speaker Change: Art basis.

Speaker Change: Importantly, we continue to see the benefit of higher lifetime customer value as we shift into more committed solution.

With a total annual revenue per purchasing customer growing 10, 7% to 1232 from 1100 <unk> 13 in the comparable LTM period.

Jen Layden: We added 100,000 active annual subscribers to reach 282,000, representing growth of 55% over the corresponding 2023 LTM period. This metric has grown north of 50% in each of the last seven quarters. This growth was fueled by our e-commerce offerings, including our iStock Annual and our Unsplash Plus subscriptions, with the majority of this group coming from customers brand new to Getty Images. Of the 282,000 annual subscribers, over 60% were first time purchasers.

Speaker Change: We added 100000 active annual subscribers to reach 282000, representing growth of 55% over the corresponding 2023 LTM period.

Speaker Change: This metric has grown north of 50% in each of the last seven quarters.

Speaker Change: This growth was fueled by our e-commerce offerings, including our <unk> annual and our <unk> plus subscription.

Speaker Change: With the majority of this growth coming from customers brand new to Getty images.

Speaker Change: How does the 282000 annual subscribers over 60% were first time purchasing customers.

Jen Layden: In addition, we continue to expand our geographic reach with over 96,000 new subscribers from across our targeted growth markets in LATAM, APAC, and EMEA. Our annual subscriber revenue retention rate was 89.4% compared to 98.5% in the comparable LTN period, but held relatively steady to 90% reported for the LTN Q1-24 period. The year-on-year LTM decline was driven by the same factors that have impacted this metric over the past several quarters, including subscriber count growth and our lower retention, smaller e-commerce subscribers.

Jen Layden: In addition, we continue to expand our geographic reach with over 96,000 new subscribers from across our targeted growth markets in Madaim, APAC, and EMEA. Our annual subscriber revenue retention rate was 89.4% compared to 98.5% in the comparable LTM period, but held relatively steady to 90% reported for the LTM Q1-24 period. The year-on-year LTM decline was driven by the same factors that have impacted this metric over the past several quarters, including subscriber count growth and our lower retention of smaller e-commerce subscribers. A Hollywood strike impacted the reduction in incremental a la carte subscriber revenue from some of our media, broadcast, and production customers, and a decline related to one-time project spend in the prior period from certain corporate customers.

Speaker Change: In addition, we continue to expand our geographic reach with over 96000, new subscribers from across our targeted growth markets and whether an APAC and in EMEA.

Speaker Change: Our annual subscriber revenue retention rate was 89, 4% compared to 98, 5% and the comparable LTM period, but held relatively steady to 90% reported for the LTM Q1, 2000 and for a period.

Speaker Change: The year on year LTM decline was driven by the same factors that have impacted this metric over the past several quarters.

Speaker Change: <unk> subscriber count growth in our lower retention smaller e-commerce subscribers.

Jen Layden: A Hollywood strike impacted reduction in incremental a la carte subscriber revenue from some of our media, broadcast, and production customers, and a decline related to one-time project spend in the prior period from certain corporate customers. However, on a sequential basis, the impact from some of these items does appear to be stabilizing, and our subscription revenue renewal rates remain very healthy, averaging in the 90% range. Paid download volume was up 0.9% to 95 million, an ever-compelling data point demonstrating the continued demand for high-quality, differentiated, commercially safe content.

Speaker Change: We would strike impacted reduction and incremental Ala carte subscriber revenue from some of our media broadcast and production customers Andrew decline related to onetime project spend in the prior period includes certain corporate customers.

Jen Layden: On a sequential basis, the impact of some of these items does appear to be stabilizing, and our subscription revenue renewal rates remain very healthy, averaging in the 90% range. Paid download volume was up 0.9% to 95 million, an ever-compelling data point demonstrating the continued demand for high-quality, differentiated, commercially safe content. Our video attachment rate rose to 15.6% from 13.5% in the LTM Q2 2023 period, another quarter of year-on-year growth.

Speaker Change: On a sequential basis the impact from some of these items does appear to be stabilizing.

Speaker Change: And our subscription revenue renewal rates remained very healthy averaging in the 90% range.

Speaker Change: Paid download volume was up 9% to $95 million ever compelling data point, demonstrating the continued demand for high quality differentiated commercially.

Speaker Change: Yes.

Jen Layden: Our video attachment rate rose to 15.6% from 13.5% in the LTM Q2 2023 period, another quarter of year-on-year growth. Turning to our financial performance, revenue was $229.1 million, an increase of 1.5% and 2.1% on a currency-neutral basis. However, included in these results are certain impacts of the timing of revenue recognition, which reduce year-on-year growth by 100 basis points.

Speaker Change: Our video attachment rate rose to 15, 6% from 13, 5% and the LTM Q2 2023 period.

Speaker Change: Another quarter of a year on year growth.

Jen Layden: Turning to our financial performance, revenue was $229.1 million, an increase of 1.5% and 2.1% on a currency-neutral basis. Included in these results are certain impacts of the timing of revenue recognition, which reduce year-on-year growth by 100 basis points.

Speaker Change: Turning to our financial performance.

Speaker Change: Revenue was $229 1 million, an increase of one 5% and two 1% on a currency neutral basis.

Included in these results are certain impact the timing of revenue recognition.

Speaker Change: Year on year by 100 basis points.

Jen Layden: Annual subscription revenue was 52.9% of total revenue, up from 51.1% in Q2 2023. This is our seventh consecutive quarter with subscription revenue comprising north of 50% of our total revenue. In total, subscription revenue increased 5.2% on a reported basis and 5.7% on a currency-neutral basis, driven primarily by growth across our e-commerce subscription offerings. Editorial revenue was $83.6 million, an increase of 4.1% year-on-year and 4.6% on a currency-neutral basis. We are seeing a strong rebound in editorial, with the business delivering its first quarter of growth since the Hollywood strikes began impacting our financial performance in Q2 of 2023.

Speaker Change: Annual subscription revenue was 52, 9% of total revenue up from 51, 1% in Q2 2023.

Speaker Change: This is our seventh consecutive quarter with subscription revenue comprising north of 50% of our total revenue.

Speaker Change: In total subscription revenue increased five 2% on a reported basis and five 7% currency neutral driven primarily by growth across our e-commerce subscription offering.

Speaker Change: Editorial revenue was $83 6 million, an increase of four 1% year on year and four 6% on a currency neutral basis, we are seeing a strong rebound in editorial with the business delivering its first quarter of growth since the Hollywood strikes began impacting our final.

Jen Layden: We are seeing a strong rebound in editorial, with the business delivering its first quarter of growth since the Hollywood strikes began impacting our financial performance in Q2 of 2023. We saw growth across sports, news, and entertainment, with the largest gain in sports, which was double-digit year-on-year growth. We are seeing lift from our impressive coverage of major events, such as the European soccer season and the lead-up to the UEFA Championship, as well as our coverage of the U.S. and U.K. election cycles.

Speaker Change: <unk> performance in Q2 of 2023.

Jen Layden: We saw growth across sports, news, and entertainment, with the largest gain in sport, which was double-digit year-on-year growth. We are seeing lift from our impressive coverage of major events, such as the European soccer season and the lead up to the UEFA Championship, as well as our coverage of the U.S. and U.K. election cycles.

We saw growth across sports news and entertainment with the largest gain in sport, which was in double digit year on year correct.

Speaker Change: We are seeing lift from our impressive coverage of major events, such as the European soccer season, and the lead up to the UEFA championship as well as our coverage of the U S and U K election cycle.

Jen Layden: It is great to see our editorial business back in growth, and we are excited to continue this momentum into the second half of the year. Creative revenue was $137.9 million, down 2.4% year-on-year and 1.8% on a currency-neutral basis. Creative performance continues to reflect the pressures in the agency business, which was down double digits, due primarily to declines at the smaller independent agencies.

Speaker Change: It is great to see our editorial business back in growth and we are excited to continue this momentum into the second half of the year.

Speaker Change: <unk> revenue was $137 9 million down two 4% year on year, and one 8% on a currency neutral basis.

Speaker Change: Greater performance continues to reflect the pressures in the agency sector, which was down double digits due primarily to decline at the smaller independent agencies.

Jen Layden: As we mentioned earlier, we are seeing a lag in recovery on the production side of things, which is also impacting creative results. Creative Annual Subscription Revenue continues to be growing at 5.7% year-on-year and 6.2% on a currency-neutral basis. Our customer acquisition efforts continue to drive growth in our iStock annual subscription, which grew 19% on both a reported and a currency-neutral basis, marking the 12th consecutive quarter of double-digit growth. In addition, our Unsplash Plus subscription, the first paid subscription for Unsplash, delivered another quarter of triple-digit growth.

Speaker Change: As we mentioned earlier, we are seeing a lag in recovery on the production side of it.

Speaker Change: Which is also impacting creative result.

Speaker Change: Great of annual subscription revenue continues to be an breath at five 7% year on year and six 2% on a currency neutral basis.

Speaker Change: Our customer acquisition efforts continue to drive growth in our ice stock annual subscription, which grew 19% on both a reported and a currency neutral basis, marking the 12th consecutive quarter of double digit growth in.

Speaker Change: In addition, our <unk> plus subscription the first paid prescription for <unk> delivered another quarter with triple digit correct.

Jen Layden: As Craig mentioned, iStock and Unsplash, largely e-commerce sites, continue to grow. These sites, on a combined basis, represent roughly 20% of our revenue, with over 50% coming from an annual subscription. Across our major geographies, on a currency-neutral basis, we saw year-on-year increases of 1.7% in the Americas, 2.4% in EMEA, and 3% in APEC. All of our major geographic regions were in growth, which is fantastic to see. Revenue less or cost of revenue as a percentage of revenue remained consistently strong at 72.5% in Q2, up from 71.9% in Q2 of 2023. Total SG&A expense was $101.2 million, down from $101.5 million in the prior year.

Speaker Change: As Craig mentioned I've spoken on splash, largely ecommerce sites continue to grow.

Craig: These sites on a combined basis represent roughly 20% of our revenue with over 50% setting an annual subscription.

Craig: Across our major geographies on a currency neutral basis, we saw year on year increase of one 7% in the Americas, two 4% in EMEA and 3% in APAC.

Speaker Change: All of our major geographic regions, where integrys fantastic activity.

Craig: Yeah.

Jen Layden: Fantastic to see! Revenue less or cost of revenue as a percentage of revenue remained consistently strong at 72.5% in Q2, up from 71.9% in Q2 of 2023. Total SG&A expense was $101.2 million, down from $101.5 million in the prior year. As a percentage of revenue, our expense rate was 44.2%, down from 45% last year. The lower expense rate was driven primarily by the increase in revenue and lower stock-based compensation in the quarter.

Craig: Revenue less cost of revenue as a percentage of revenue remained consistently strong at 72, 5% in Q2 up from 71, 9% in Q2 of 2023.

Craig: Total SG&A expense was $101 2 million down from 100 159 in the prior year.

Jen Layden: As a percentage of revenue, our expense rate was 44.2%, down from 45% last year. The lower expense rate was driven primarily by the increase in revenue and lower stock-based compensation in the quarter. Excluding stock-based compensation, SG&A rose to $97.2 million in the quarter, or 42.4% of revenue, up from $89.6 million, or 39.7% of revenue, in Q2 2023. The increase in spend reflects our planned reinvestment in the business, primarily across staffing and marketing, in addition to higher commissions tied to revenue delivery and the inclusion of Motorsport Energy's operating costs.

Craig: As a percentage of revenue our expense rate was 44, 2% down from 45% last year.

The lower expense rate was driven primarily by the increase in revenue and lower stock based compensation in the quarter.

Jen Layden: Excluding stock-based compensation, SG&A rose to $97.2 million in the quarter, or 42.4% of revenue, up from $89.6 million, or 39.7% of revenue, in Q2 2023. The increase in spend reflects our planned reinvestment in the business, primarily across staffing and marketing, in addition to higher commissions tied to revenue delivery, and the inclusion of Motorsport Images operating costs. This quarter also included some elevated severance costs as we continue to optimize our resource allocation.

Craig: Excluding stock based compensation SG&A rose to $97 2 million in the quarter or 42, 4% of revenue up from $89 6 million or 39, 7% of revenue in Q2 2023.

Craig: The increase in spend reflects our planned reinvestment in the business primarily across staffing and marketing. In addition to higher commission tied to revenue delivery and the.

Craig: The inclusion of Motorsport energy operating call.

Jen Layden: This quarter also included some elevated severance costs as we continue to optimize our resource allocation. These costs should be offset by savings in the balance of the year and higher net annualized savings going forward. Adjusted EBITDA was $68.8 million, down 5.4% year-over-year and 4.7% on a currency-neutral basis.

Craig: This quarter also included some elevated Stephane, Paul as we continue to optimize our resource allocation.

Jen Layden: These costs should be offset by savings in the balance of the year and higher net annualized savings going forward. Adjusted EBITDA was $68.8 million, down 5.4% year-over-year and 4.7% on a currency-neutral basis. Adjusted EBITDA to Margin was 30%, down from 32.2% in Q2 of 2023.

Craig: These costs should be offset by savings in the balance of the year and higher net annualized savings going forward.

Craig: Adjusted EBITDA was $68 8 million down five 4% year over year, and four 7% on a currency neutral basis.

Jen Layden: Adjusted EDA to Margin was 30%, down from 32.2% in Q2 of 2023. CapEx was 15.4 million in Q2, up 1.5 million year over year. CapEx as a percentage of revenue was 6.7% compared to 6.2% in the prior year period and well within our expected range of 5 to 7% of revenue. The year-on-year increase is largely tied to timing within the year. Free cash flow of $31.1 million, up from $27.9 million in Q2 of 2023.

Craig: Adjusted EBITDA margin was 30% down from 32, 2% in Q2 of 2023.

Jen Layden: CapEx was 15.4 million in Q2, up 1.5 million year over year. CapEx as a percentage of revenue was 6.7% compared to 6.2% in the prior year period, and well within our expected range of 5 to 7% of revenue. The year on year increase is largely tied to timing within the year.

Capex was $15 4 million in Q2 up $1 $5 million year over year Capex as a percentage of revenue was six 7% compared to six 2% in the prior year period, and well within our expected range of 5% to 7% of revenue.

Craig: The year on year increase is largely tied to.

Craig: To timing within the year.

Jen Layden: Free cash flow of $31.1 million, up from $27.9 million in Q2 of 2023. The increase in free cash flow reflects working capital changes related to the timing of receivables and payables. Free cash flow is stated net of cash interest expense of $26 million and cash taxes paid of $12.8 million in the second quarter. We finished the quarter with $121.7 million of balance sheet cash, down $12.5 million from Q1 2024 and up $0.4 million from Q2 2023.

Craig: Free cash flow was $31 1 million up from $27 9 million in Q2 of 2023.

Jen Layden: The increase in free cash flow reflects working capital changes related to the timing of receivables and payables. Free cash flow is stated net of cash interest expense of $26 million and cash taxes paid of $12.8 million in the second quarter.

Craig: The increase in free cash flow reflects working capital changes related to the timing of receivables and payables.

Craig: Cash flow if Jay did net of tax expense of $26 million and cash taxes paid of $12 8 million in the second quarter.

Jen Layden: We finished the quarter with $121.7 million of balance sheet cash, down $12.5 million from Q1 2024 and up $0.4 million from Q2 2023. This includes $32.6 million in voluntary debt repayment in the second quarter of 2024. As of June 30, we had total debt outstanding of $1.35 billion, which included $300 million of 9.75% senior notes and 601.8 million USD term loan with an applicable interest rate of 9.94%. 448.5 million euros of term loans converted using exchange rates as of June 30, 2024, with an applicable rate of 8.69%.

Craig: We finished the quarter with 121 7 million of balance sheet cash.

Craig: $12 5 million from Q1, 'twenty 'twenty, four and up <unk> 4 million from Q2 2023.

Jen Layden: This includes $32.6 million in voluntary debt repayment in the second quarter of 2024. As of June 30, we had total debt outstanding of $1.35 billion, which included $300 million of 9.75% senior notes. 601.8 million USD term loan with an applicable interest rate of 9.94%. 448.5 million Euro term loans converted using exchange rates as of June 30, 2024, with an applicable rate of 8.69%. We also have a 150 million revolver that remains on strong.

Craig: This includes 32 6 million and voluntary debt repayment in the second quarter of 2024.

Craig: As of June 30, we had total debt outstanding of 135 billion, which includes $300 million of 975% senior notes.

Craig: 601.8 million USD term loan with an applicable interest rate of 994%.

Craig: $448 5 million Euro term loan converted using exchange rates as of June 32024, with an applicable rate of 869%.

Operator: Good morning and welcome to Getty Images 2nd quarter, 2024 earnings conference goal. Today's goal is being recorded. We have allocated one hour for prepared remarks and Q&A.

Jen Layden: We also have a $150 million revolver that remains on strong. Our net leverage was 4.2 times at the end of Q2, unchanged from both Q1 and year-end 2023. We remain committed to utilizing our cash flow to further deleverage the balance sheet, and we will continue to proactively explore opportunities to refinance our debt. Based on the foreign exchange rates and applicable interest rates on our debt balance as of June 30, our 2024 cash interest expense is estimated to be $131 million.

Craig: We also have a $150 million revolver that remains.

Craig: John.

Jen Layden: Our net leverage was 4.2 times at the end of Q2, unchanged from both Q1 and year-end 2023. We remain committed to utilizing our cash flow to further deleverage the balance sheet, and we will continue to proactively explore opportunities to refinance our debt. Based on the foreign exchange rates and applicable interest rates on our debt balance as of June 30, our 2024 cash interest expense is estimated to be $131 million. Of course, our actual annual interest expense remains subject to changes in the interest rate environment, which we outline in more detail within our FDCA filing. In summary, it is good to see our business back on growth with healthy underlying key metrics. We remain fiscally disciplined.

Our net leverage to score 0.2 times at the end of Q2.

Stephen Canner: At this time, I would like to conference over to Stephen Canner, vice president of investor relations and Treasury at Getty Images. Thank you, you may begin.

Craig: Changed from both Q1 and year end 2023.

Craig: We remain committed to utilizing our cash flow to further deleverage the balance sheet and we will continue to proactively explore opportunities to refinance our debt.

Stephen Canner: Good afternoon and welcome to the Getty Images 2nd quarter, 2024 earnings call. Joining me on today's call are Craig Peters, Chief Executive Officer and Jen Layden, Chief Financial Officer. Before we begin, we would like to remind you that this call will include forward-looking statements within the meaning of the private security's litigation reform act of 1995. These statements are subject to various risks, uncertainties and assumptions, which could cause our actual results to differ materially on these statements.

Speaker Change: Based on the foreign exchange rates and applicable interest rate on our debt balance as of June 30th our 2020 for cash interest expense is estimated to be $131 million.

Jen Layden: Of course, our actual annual interest expense remains subject to changes in the interest rate environment, which we outline in more detail within our SEC filing. In summary, it is good to see our business back on growth with healthy underlying key metrics. We remain fiscally disciplined.

Speaker Change: Of course, our actual annual interest expense remains subject to changes in the interest rate environment, which we outline in more detail within our SEC filing.

Stephen Canner: These risks, uncertainties and assumptions are highlighted in the forward-looking statement section of Friday's press release and in our filings with the SEC. Links to these filings and Friday's press release can be found on our Investory Relations website at investors.gettyimages.com. During our call today, we will also reference certain non-gap financial information, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less CAPEX and free cash flow. We use non-gap measures in some of our financial discussions, as we believe that we represent our operational performance and underlying results of our business. Reconciliation of GAP to non-gap measures, as well as a description, limitations and rationale for using each measure, can be found in our filings for the SEC.

In summary, it is good to see our business back in growth with healthy underlying key metrics. We remain fiscally disciplined we continue to invest in this business and we look forward to building on our Q2 momentum.

Jen Layden: We continue to invest in this business, and we look forward to building on our Q2 momentum. Now, we turn to our outlook for the full year 2024. Taking into consideration the estimated impact of the stronger U.S. dollar and assuming the current FX rate is pulled, we're updating our reported revenue guidance range to $924 million to $943 million, representing year-on-year growth of 0.9% to 2.9%. On a currency-neutral basis, this represents growth of 1% to 3%, which remains unchanged from our prior guidance.

Speaker Change: Yeah.

Jen Layden: We now expect adjusted EBITDA of $290 million to $294 million, which translates to a year-on-year decrease of 3.8% to 2.5% or 3.6% to 2.3%, currency neutral. The update to our Adjusted EBITDA Outlook reflects a $2 million impact barring currency pressure, approximately $2 million of integration-related expenses that are more one-time in nature, and some higher than expected employee health insurance costs. Please note the estimated FX impacts include an assumption that FX rates will remain consistent with those as of August 1, 2024, with the Euro at 1.08 and GDP at 1.29 for the remainder of the year.

Speaker Change: Now turning to our outlook for the full year 2024.

Speaker Change: Taking into consideration the estimated impact of the stronger U S dollar and that's assuming current FX rates hold we're updating our reported revenue guidance range to 924 million to $943 million representing year on year growth of 9%.

Two 9%.

Speaker Change: On a currency neutral basis. This represents growth of 1% to 3%, which remains unchanged from our prior guidance.

Stephen Canner: After I will prepare remarks, we will open the call to your questions.

Craig Peters: With that, I will hand the call over to our Chief Executive Officer, Craig Peters. Thanks, Stephen, and thank you to everyone for joining Getty Images Second Quarter earnings call. I will touch on our performance and progress at a high level before Jen takes you through the full second quarter financial results. I am pleased to report, as expected, we return to growth in the second quarter, with revenue of 229.1 million, representing a year-on-year increase of 1.5% on a reported basis, and 2.1% on a currency neutral basis.

Speaker Change: We now expect adjusted EBITDA of $290 million to $294 million, which translates to a year on year decrease of three 8% to two 5% or three 6% to two 3% currency neutral.

Speaker Change: The update to our adjusted EBITDA outlook reflects the $2 million impact from current foreign currency pressure approximately $2 million and integration related expenses that are more onetime in nature and some higher than expected and just play health insurance call.

Speaker Change: Please note the estimated FX impact include an assumption that FX rates remain consistent with those as of August one 2024 with the Euro at 1.0, H and then GDP at 1.29 for the remainder of the year.

Craig Peters: Adjusted EBITDA came in at 68.8 million for the quarter, down 5.4% on a reported basis, and 4.7% currency neutral, but continuing to represent a healthy EBITDA margin of 30%. We continue to see some softness from our agency and production customers, impacting both creative and editorial, and most notably, our video revenues. However, we achieve growth across each of our Getty Images, Istock, and Unsplash Brands, and we continue to see strong utilization of our offerings reflected by growth and paid downloads, with consumption centered on our exclusive creative and editorial content.

Jen Layden: Despite these unplanned impacts, our operating efficiency remains strong, with adjusted EBITDA margins expected to be north of 31%. With positive momentum building, we remain optimistic about our full year return to growth while maintaining the fiscal discipline that has long been embedded in our business. With that, Operator, please open the call to questions.

Operator: Despite these unplanned impacts, our operating efficiency remains strong, with adjusted EBITDA margins expected to be north of 31%. With positive momentum building, we remain optimistic about our full year return to growth, while maintaining the fiscal discipline that has long been embedded in our business. With that, operator, please open the call for questions. At this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may withdraw your question. The briefing is Star 2.

Speaker Change: Despite these unplanned impacts our operating efficiency remains strong with adjusted EBITDA margins expected to be north of 31%.

Speaker Change: With positive momentum building, we remain optimistic for a full year return to growth while maintaining the fiscal discipline that has long been embedded in our business.

Speaker Change: With that operator, please open the call for questions.

Operator: And at this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may withdraw your question by pressing star 2. Once again, to ask a question, please press the star and 1 on your telephone keypad. We'll take our first question from Corey Carpenter with J.P. Morgan. Please go ahead.

Speaker Change: And at this time.

Speaker Change: Like to ask a question. Please press star one on your telephone keypad.

Craig Peters: It would not be an earnings call if the CEO did not speak to our embrace of AI, but I want to start by grounding us in what really sets Getty Images apart. Our partnerships and unique access. Our deep expertise embedded across our staff and exclusive contributors. Our comprehensive coverage in our archive. Our best-in-class search, and our deep customer relationships.

Speaker Change: We draw your question breaking start to.

Operator: Once again, to ask a question, please press the star and 1 on your telephone keypad. We'll take our first question from Corey Carpenter on J.P. Morgan. Please go ahead.

Speaker Change: Once again to ask a question. Please press the star and one your telephone keypad.

Speaker Change: We'll take our first question from Cory Carpenter with JP Morgan. Please go ahead.

Craig Peters: Morning. Thanks for the questions. Craig, one for you and one for Jen. Maybe for you, Craig, just on generative AI. You rolled out a lot this quarter, made a lot of progress. I'm hoping you could talk about the consumer engagement you're seeing. And then also, I know it's still early, but your latest thoughts on the potential monetization of that over time. And Jen, for you, could you touch more on the drivers of the reacceleration in the second half of the year and the assumptions you're making, in particular around the agency channel? Thank you both.

Corey Carpenter: Morning. Thanks for the questions. Craig, one for you and one for Jen.

Cory Carpenter: Good morning, Thanks for the questions, Greg one for you and one for Jim.

Craig Peters: Maybe for you, Craig, just on generative AI, you rolled out a lot this quarter, made a lot of progress. I'm hoping you could talk about the consumer engagement you're seeing. And then also, I know it's still early, but your latest thoughts on the potential monetization of that over time. And Jen, for you, could you touch more on the drivers of the reacceleration in the second half of the year and the assumptions you're making, in particular, around the agency channel? Thank you both.

Cory Carpenter: Maybe for you Craig just on generative AI roll down a lot. This quarter made a lot of progress hoping you could talk about the consumer engagement Youre seeing and then also I know, it's still early but you thought ladies Scotland the potential monetization of that.

Craig Peters: I was extremely fortunate to spend last week in Paris and observe how this uniqueness is demonstrated at an event like the Summer Olympics. We've been the official photographic agency of the International Olympic Committee for more than 25 years. Our experience team of more than 140 individuals captured every moment across more than 70 sports for both men and women's competitions. We captured the grandeur of the host city and the celebrities in dignitaries performing and in attendance.

Speaker Change: Your time and.

Jane: Jane for you just could you touch more on the drivers of the Reacceleration and the SEC.

Jane: Half of the year is the assumption that youre, making in particular around the agency channel. Thank you Bob.

Jane: Yeah.

Craig Peters: Thanks for the question, Corey. On the Gen-A front, we continue to see really positive feedback from our customers across each and every segment of the business. And that's really due to the quality of the model and services that we're providing, but also the truly commercially safe nature of how these are built and what they can do. It's still early days in the adoption curve, though, within the commercial sector. And so it's not material to the business.

Craig Peters: Thanks for the question, Corey. On the GenEye front, we continue to see really positive feedback from our customers across each and every segment of the business. And that's really due to the quality of the model and services that we're providing, but also the truly commercially safe nature of how these are built and what they can do. It's still early days in the adoption curve, though, within the commercial sector. And so it's not material to the business.

Jane: Thanks for the question Corey on the G&A front, we continue to see really positive feedback from our customers across each and every segment.

Jane: Of the business.

Craig Peters: We captured the action from every angle, including from the air and below the water. All told, we shot and edited more than 5 million images over the course of the games. And we delivered this content to our customers with unmatched speed. Our archives allowed customers to tell deeper stories about Paris and tie the Paris Games and its athletes to the rightful place in history. Our commercial team was also on the ground, delivering best-in-class service to the International Olympic Committee, and its family of partners and sponsors, including NBC Universal so Comcast, Coca-Cola, Procter & Gamble, Visa, Toyota, AB Imbev, and Samsung Electronics to name a few.

Jane: And.

Speaker Change: And that's really due to the quality of the model and services that we're providing but also the truly commercially safe nature of how these are built in and what these can do.

Speaker Change: It's still early days in the adoption curve now.

Speaker Change: Within.

Speaker Change: Within the commercial sector.

Craig Peters: We expect, over time, it can be a meaningful contributor to the revenues of the business, but it's still early days and a fairly limited contribution to the business at this point. But it is on a growth trajectory, and as that becomes more material, it'll be something we'll probably report back on.

Speaker Change: And so it's not material to the business, we expect over time it can be a meaningful contributor contributor to the to the revenues of the business.

Craig Peters: We expect, over time, it can be a meaningful contributor to the revenues of the business. But it's still early days, and it's making a fairly limited contribution to the business at this point. But it is on a growth trajectory, and as that becomes more material, it'll be something we'll probably report back on. Jen?

Speaker Change: But but it's still early days in and.

Speaker Change: And fairly limited contribution to the business at this point, but it is.

Speaker Change: You know on a growth trajectory and as that becomes more material that would be something we will probably report back to you.

Jen Layden: Yeah, and yes, and on guidance and just as we noted acceleration into the 2nd half. So there's a few things there for top line performance. 1, as we mentioned, we're still seeing.

Jen Layden: Yeah, and yes, and on guidance and just, as you noted, acceleration into the second half. So, there's a few things there for top-line performance. 1, as we mentioned, we're still seeing, certainly through the 1st half of Q2, some continued lag on the production side of things recovery. So, a bit of continuing improvement there, but we have seen those declines start to taper off, but largely still a slower recovery than we anticipated. So, a bit of pickup there.

John Yes, and yes, and on guidance and just as we know that acceleration into the second half. So there's a few things there.

Craig Peters: And we did all of this while covering the world beyond Paris, global elections and conflicts, climate events, the latest concert performances and movie premieres, and major sporting events, such as Formula One, where we're also their official photographic partner.

Speaker Change: For topline performance one as we mentioned we're still seeing a.

Jen Layden: Uh, certainly through the 1st half of Q2, some continued lag on the production side of things recovery. So a bit of continuing improvement there. We have seen those declines start to taper off, but largely still. A slower recovery than we anticipated. So a bit of pick up on their agency side of things.

Speaker Change: Certainly through the first half Q2, some continued lag on that production side of things recovery. So.

Speaker Change: A bit of continuing improvement there we have seen those declines start to taper off but largely still.

Craig Peters: If you remember in April, we announced the acquisition of motorsport images to deepen our footprint within the sport. And I'm pleased to report we added more than 300,000 images to our archive and worked closely to support new commercial partners such as McLaren Racing and Aston Martin. I am proud of the scale and scope of what our team accomplished. I am proud of the level of professionalism displayed. I'm reminded of what truly sets gimme the images apart, and of the durable value we convey to our customers.

A slower recovery than we anticipated a bit of pick up there.

Jen Layden: Agency side of things. We're not necessarily expecting any material changes there, but again, slow, gritty, slow, gradual improvement to those double digit declines that we're seeing. Another big piece of this, which we've spent some time talking about before, is the editorial, outside of our business, or just keep you think. And so it's a little bit more of a short presentation. And I think we'll cover a lot of things that have been woven in there.

Speaker Change: <unk> side of things, we're not necessarily expecting any material changes there, but again slow griddy slow gradual improvement.

Operator: We're not necessarily expecting any material changes there. But again, slow, gritty, slow, gradual improvement to those double-digit declines that we're seeing. You know, the other big piece of this, which we spent some time talking about before, is the editorial. So, I'm going to start with a little bit about Q3. We've got a couple of things that are on the Q3 side of our business. There are a few things woven in there.

Speaker Change: Improvement to those double digit declines that we're seeing other big piece of that which we've spent some time talking about before as the editorial.

Speaker Change: Side of our business, there's a few things.

Speaker Change: Woven in there one obviously as we move into the second half of the year, we've got a really favorable year on year comp with the strike impact starting to.

Jen Layden: One, obviously, as we move into the second half of the year, we've got a really favorable year-on-year comp with those strike impacts starting to impact us largely in Q3 in the second half of last year. So we've got a built-in favorable comp there. And then our editorial event calendar and the U.S. political cycle are both shaping up pretty healthy. Thank you. Our next question comes from Ron Josie with Citi. Please go ahead.

Operator: One, obviously, as we move into the second half of the year, we've got a really favorable year-on-year comp with those strike impacts starting to impact us largely in Q3 in the second half of last year. So, we've got a built-in favorable comp there. We've got the Olympics and the U.S. political cycle, both of those shaping up to be pretty healthy-sized events for us. So, those are the primary drivers of that top-line performance in the second half.

Speaker Change: Impact us largely in Q3 in the second half of last year. So we've got a built in favorable comp there and then our editorial event calendar.

Craig Peters: On the technology front, we continue to innovate to bring true, commercially safe, high-quality, generative AI services to our customers. We launched an updated model of our commercially safe generative AI services and tools in partnership with NVIDIA that brings lightning fast speeds and higher quality visuals, including improved detail for high resolution 4K outputs. We rolled out capabilities allowing customers to use AI across our pre-shot creative library, enabling customers to modify both generative AI images and existing pre-shot creative images.

Speaker Change: Largely stacked in the second half of the year. So that's a big events like the Olympics.

Speaker Change: In the U S political cycle, both of those shaping up to be pretty healthy.

Speaker Change: Sized events for instance, so those are the primary drivers of that top line performance in the second half.

Thank you.

Okay.

Operator: Our next question comes from Ron Josie with Citi. Please go ahead.

Speaker Change: Our next question comes from Brian Josey with Citi. Please go ahead.

Craig Peters: Great. Thanks for taking the question. And I wanted to double down a little bit more and understand on the subscription side, Craig and Jen, and specifically, you know, clearly over 50% of revenue for the past four quarters. That's a good thing here. I want to understand the drivers.

Operator: Great, thanks for taking the question. And I wanted to double down a little bit more and understand on the subscription side, Craig and Jen, and specifically, you know, clearly over 50% of revenue for the past four quarters, that's a good thing here. I want to understand the drivers.

Brian Josey: Great. Thanks for taking my question I wanted to double double down a little bit more I understand on the subscription side, Craig in Jan and specifically you know.

Craig Peters: We announced the option for customers to fine-tune the commercially safe foundational model using their own proprietary content. We announced our partnership with Pixar to offer a custom, commercially safe model to their millions of creators, marketers, and small business customers. We announced the renewal of our long-standing Canva relationship, providing Canva's customers with access to millions of Getty Images award-winning creative image and video assets, and agreement to collaborate, to develop, responsibly trained, commercially safe, generative AI for their platform.

Speaker Change: Currently over 50% of revenue for the past four quarters that that's a good thing here I want to understand about the driver. So you mentioned high stock on Splash now 20% of revenue 50% of that some subscribers tell us more about what youre doing to drive that subscription from ice stock or call. It the tripping benefit from EIS documents, Washington also the strength.

Ron Josie: So you mentioned iStock and Unsplash, now 20% of revenue, 50% of that from subscribers. Tell us more about what you're doing to drive that subscription from iStock or call it the subscription benefit from iStock and Unsplash, but then also the strength of iStock and Unsplash. And then back to the subscription side, growth did decel here in 2Q from a revenue and annual active subscriber perspective. Can you provide any insights on the decel and growth?

Craig Peters: So you mentioned iStock and Unsplash now, 20% of revenue, 50% of that from subscribers. Just tell us more about what you're doing to drive that subscription from iStock, or call it the subscription benefit from iStock and Unsplash, and also the strength of iStock and Unsplash. And then back to the subscription side, growth did decel here in 2Q from a revenue and annual active subscriber perspective. Can you provide any insights on the decel and growth? And then from a retention rate standpoint, it looks like retention rates have been relatively steady. Should we assume this is the right rate going forward here? Thanks for the questions.

Speaker Change: This document slashed.

Speaker Change: Then back to the subscription side growth did decelerate here in <unk> from a revenue from an annual active subscriber perspective can you provide any insights on the details and gross and then from a retention rate. It looks like retention rate has been relatively steady should we assume this is the right rate going forward here. Thanks for the questions.

Ron Josie: And then from a retention rate standpoint, it looks like retention rates have been relatively steady. Should we assume this is the right rate going forward here? Thanks for the question. Great. Thanks, Ron. And Jen, I'll take a stab at this up front, and then Jen can fill in on anything that I might have missed.

Craig Peters: I am proud of the progress we're making on this front. I am proud of the quality of our offerings and the legality and integrity of how they are trained. And by the company we keep, I am reminded of the truly unique capabilities of Getty Images.

Craig Peters: Great. Thanks, Ron. And Jen, if you can, I'll take a stab at this up front, and then Jen can fill in on anything that I might have missed.

Speaker Change: Great. Thanks, Ron and Jan if you can I'll take a stab at this upfront and then Jan can fill in anything that I might have missed.

Craig Peters: In terms of the, you know, kind of unsplash and iStock side of things, we've been making a concerted effort over the last, really, two years to drive more annual subscriptions across those products, which results in higher ARPU. It results in higher lifetime values, and we think we deliver more value to our customers through those offers and become more embedded in their day-to-day use and workflows. So we think it's a good thing for the customer; we think it's a good thing for Getty Images overall.

Craig Peters: In terms of the, you know, kind of unsplash and iStock side of things, we've been making a concerted effort over the last, really, two years to drive more annual subscriptions across those products, which results in higher ARPU. It results in higher lifetime values, and we think we deliver more value to our customers through those offerings and become more embedded in their day-to-day use and workflows. So we think it's a good thing for the customer. And we think it's a good thing for Getty Images overall. The way we've been doing that, obviously, on Unsplash, we introduced a paid subscription in Unsplash Plus that had not been there before.

Speaker Change: In terms of the.

Craig Peters: I will end my remarks by saying that I am excited to build on our momentum of the second half of 2024.

Speaker Change: On splash in ice stock side of things, where we've been making a concerted effort over the last really two years to drive more annual subscriptions across those products.

Jen Layden: I will now turn over to Jen to take you to the more detailed financials. As I mentioned, our business returns to top-line growth in Q2 with headwinds turning to talent. Our editorial business is back to the growth we have historically seen after four consecutive quarters of decline due to hollywood strike impacts. Our subscription business continues to expand now up to 52.9% of total revenue and our key performance metrics continue to be healthy.

Jan: It results in higher ARPA.

Jan: It results in and ultimately higher lifetime values.

And we think we deliver more value to our customers through those kudos offerings and become more embedded in their day to day.

Jan: Use and workflows. So we think it's a good thing for the customer we think it's a good thing.

Jan: For Getty images overall.

Craig Peters: The way we've been doing that, obviously, on Unsplash, we introduced a paid subscription called Unsplash Plus that had not been there before, and it brings new value to those customers. It brings indemnification, it brings higher-end content into there that is fully released content, so ultimately, it's providing additional value to the Unsplash universe. On iStock, we've introduced more SKUs within the paid, sorry, subscription product side of things.

Jan: We've been doing that obviously on splash, we introduced a paid subscription and on spot loss that had not sat there before and it brings new value to those customers. It brings.

Jen Layden: Positive growth momentum across our business in spite of a still challenged agency business and a slow ramp-up of post-tollywood strike activity from our media and production customers provides a solid foundation from which we continue to execute towards the strong second half of the year.

Craig Peters: And it brings new value to those customers. It brings indemnification. It brings higher-end content into there that is fully released content. So, ultimately, it's providing additional value to the Unsplash universe. On iStock, we've introduced more SKUs within the subscription product side of things.

Jan: I am unification, it brings higher and content.

Jan: And there that is fully released.

Content. So ultimately is providing additional value to the on slash universe.

Jen Layden: Let's begin by highlighting some of our KPIs which are reported on the trailing 12-month basis or LTM period ended June 30th, 2024, with comparisons to the LTM period ended June 30th, 2023. Total purchasing customers were 740,000 down from 830,000 in the comparable LTM period. The decrease is related to lower volumes of all a cart transaction which reflects both our continued shift into committed annual subscription and a still pressured agency business which consumes nearly entirely of an all apart basis.

Jan: On ice stock.

Jan: We've introduced more skus.

Speaker Change: Within the paid alright, sorry within the subscription product side of things.

Craig Peters: And we've been increasing the use of free trials against that. I'd say it's been largely positive. There is slightly lower retention coming out of the free trial, but it's been one that we get people to try the product who are largely new to the iStock platform, as Jen mentioned.

Craig Peters: We've been increasing the use of free trials against that, and I'd say the results have been largely positive. There is a slightly lower retention rate coming out of the free trial, but it's been one that we get people to try the product who are largely new to the iStock platform, as Jen mentioned. We think that's a good thing and it's been largely net positive. We're obviously going through a test cycle to continue to optimize that by geography and traffic source.

Speaker Change: And we've been.

Speaker Change: Increasing the use of.

Speaker Change: Free trials against that.

Speaker Change: I'd say, it's been largely positive.

Speaker Change: There is a slightly lower retention coming out of the free trial.

Speaker Change: But it's been one that we are getting people to try the product and are largely new to the ice stock platform as Jen mentioned, and we think Thats a good thing and it's been largely net positive, we're obviously going through a tough cycle to.

Craig Peters: And we think that's a good thing, and it's been largely net positive. We're obviously going through a test cycle to continue to optimize that by geography and traffic source, but that's been a driver behind that, in addition to offering lower-end annual subscriptions, like 10 downloads per month. That has led to great growth across those two platforms in terms of their annual subscription revenues and, ultimately, as a percentage of the overall revenue business. However, those do, as mentioned on previous calls, they deal with lower net retention.

Jen Layden: Importantly, we continue to see the benefit of higher lifetime customer value as we shift into more committed solutions with the total annual revenue per purchasing customer growing 10.7% to 1,232 from 1,113 in the comparable LTM period. We added 100,000 active annual subscribers to reach 282,000 representing growth of 55% over the corresponding 2023 LTM period. This metric has grown north at 50% in each of the last seven quarters. This growth was fueled by our e-commerce offerings including our i-stock annual and our unsplash plus subscription.

Speaker Change: To continue to optimize that by Geo and traffic source, but that's been a driver behind that in addition to offering.

Craig Peters: But that's been a driver behind that, in addition to offering lower-end annual subscriptions like 10 downloads per month. That has led to great growth across those two platforms in terms of their annual subscription revenues and, ultimately, as a percentage of the overall business. Those do, as mentioned on previous calls, they deal with lower net retention. Obviously, we're dealing with small businesses and freelancers, and those have higher degrees of churn in and out of products.

Speaker Change: And annual subscriptions like 10 downloads per month.

Speaker Change: That has led to great growth across those two platforms in terms of their annual.

Speaker Change: Subscription revenues and ultimately as a percentage of the overall.

Craig Peters: And so that's been impacting that retention rate that you referenced, which has kind of come down a bit. But again, I still think it's a net trade positive for the business. And so I think on a go-forward basis, yeah, you should expect revenue retention rates for subscribers to kind of maintain in that kind of 90% range. And we'll continue to test and learn and optimize. But again, I go back to that we had growth across Getty Images, growth across iStock, and growth across Unsplash in the quarter. And I think the annual subscription component of that was a big driver to ultimately achieving growth across each of those brands. Jens, anything to add?

Speaker Change: Business.

Speaker Change: <unk> mentioned on previous calls with lower net retention, obviously, we're dealing with small businesses and freelancers and those have higher degrees of churn in it.

Craig Peters: Obviously, we're dealing with small businesses and freelancers, and those have higher degrees of churn in and out of products. And so that's been impacting that retention rate that you referenced, which has kind of come down a bit. But again, I still think it's a net trade positive for the business. And so I think on a go-forward basis, yeah, you should expect to probably see revenue retention rates for subscribers to kind of maintain in that kind of 90% range.

Speaker Change: Out of products.

Speaker Change: And so that's been impacting that retention rate.

Speaker Change: That you referenced.

Speaker Change: Which is kind of come down a bit.

Jen Layden: With the majority of this growth coming from customers brand new to getting images. Added to 282,000 annual subscribers over 60% were first time purchasing customers. In addition, we continue to expand our geographic reach with over 96,000 new subscribers across our targeted growth markets in Madam, APAC, and Indonesia. Our annual subscriber revenue retention rate was 89.4% compared to 98.5% in the comparable LTM period but held relatively steady to 90% reported for the LTM Q1-24 period.

Speaker Change: But again I still think it's a net trade positive to the business.

Speaker Change: And so I think on a go forward basis, you should expect to probably see revs.

Speaker Change: Our revenue retention rates for subscribers to kind of maintain in that kind of 90% range.

Craig Peters: And we'll continue to test and learn and optimize. But again, I go back to that we had growth across Getty Images, growth across iStock, and growth across Unsplash in the quarter. And I think the annual subscription component of that was a big driver to ultimately achieving growth across each of those brands. Jens, anything to add?

Speaker Change: And we will continue to test and learn and optimize but but again I go back that we had growth across Getty images.

Speaker Change: Hi, stock and growth from cross ons Bosch in the quarter and I think the annual subscription component of that was a big driver.

Speaker Change: To ultimately achieving growth across each of those brands.

Ken: Ken anything that.

Jen Layden: Yeah, I think the only thing I'd add is, you know, Ron, you asked specifically if that 89-90% retention rate is sort of the go forward. I think probably, you know, if we cycle through this year, it'll hover somewhere around there and then start to ramp back up to the low mid-90s over time.

Jen Layden: Yeah, I think the only thing I'd add is, you know, Ron, you asked specifically, I think that 89 or 90% retention rate is sort of the go forward. I think probably, you know, if we cycle through this year, it'll hover somewhere around there and then start to ramp back up to the low mid 90s over time. And one of the things that we are seeing, as we've touched on here, one of the other drivers of that retention rate is that we're seeing a little bit of contraction in spend from subscribers outside of their subscription. And that is very much a Hollywood strike impact. So if you go back to last year, pre-Hollywood strike, in those low to mid 90s,

Ken: Yeah, I think the only thing I would add Ronny you asked specifically I think if that 80, 990% retention rate and sort of the go forward I think probably you know as we cycle through this year it'll hover somewhere around there.

Jen Layden: The year-on-year LTM decline was driven by the same factors that had impacted this metric over the past several quarters, including subscriber count growth and our lower retention smaller e-commerce subscribers. A Hollywood strike impacted reduction in incremental, all-acquired subscriber revenue from some of our media, broadcast, and production customers and to decline related to one-time project spend in the prior periods in certain corporate customers. On a sequential basis, the impact from some of these items does appear to be stabilizing, and our subscription revenue renewal rates remain very healthy, averaging in the 90 percent range.

Speaker Change: And then start to ramp back up.

Craig Peters: And one of the things that we are seeing, and we've touched on here, one of the other drivers of that retention rate is that we're seeing a little bit of contraction in spend from subscribers outside of their subscription. And that is very much a Hollywood strike impact. So if you go back to last year, pre-Hollywood strike, this number was, you know, in those low to mid-90s. So we're starting to see that consumption level, that a la carte spend outside of subscription start to tick back up. Again, we're, you know, far from full recovery on that, but that's one of the drivers of this. But I think, you know, slowly over time, we'll start to see that come back a bit.

Speaker Change: To low mid Ninety's over time, and one of the things that we are seeing when we've touched on here one of the other drivers.

Speaker Change: Of that retention rate is we're seeing a little bit of contraction.

Speaker Change: Spend from these subscribers outside of their subscription and that is very much.

Speaker Change: Hollywood strike impact. So if you go back to last year are pretty Hollywood strike. This number was.

Speaker Change: In those low to mid 90, so we're starting to see that consumption level that olive garden spend outside of subscriptions start to tick back up again, where we're far from full recovery on that but that's one of the drivers of that but I think you know slowly over time, we'll start to see that come back a bit.

Jen Layden: So we're starting to see that consumption level that a la carte spend outside of subscription start to tick back up. Again, we're, you know, far from full recovery on that. But that's one of the drivers of this.

Jen Layden: Paid downward volume was up 0.9 percent to 95 million and ever compelling data points, demonstrating the continued demand for high quality, differentiated, commercially-safe content. Our video attachment rate rose to 15.6 percent from 13.5 percent in the LTM Q2 2023 period, another quarter of a year-on-year growth. Turning to our financial performance, revenue was 229.1 million, an increase of 1.5 percent and 2.1 percent on a current sea neutral basis. Included in these results are certain impacts of the timing of revenue recognition, which reduced year-on-year growth by 100 basis points.

Craig Peters: But I think, you know, slowly over time, we'll start to see that come back. Very helpful on both. Could you, and one quick follow-up, just talking about the Rider-Strike and the recovery, you know, we still have, I think we're still recovering. Would you say we're beyond the heavy lifting, so to speak, and now it's a matter of time, or would you have expected the recovery to be faster, slower? Any thoughts there would be helpful.

Craig Peters: Super helpful on both. Could you, and one quick follow-up, just talking about the Rider-Strike and the recovery, you know, we still have, I think we're still recovering. Would you say we're beyond the heavy lifting, so to speak, and now it's just a matter of time? Or would you have expected the recovery to be faster, slower? Any thoughts there would be helpful. Thank you very much.

Speaker Change: Super helpful. On both could you and one quick follow up just talking to the writers strike in the recovery.

Speaker Change: We still have I think we are still recovering.

Speaker Change: Would you say were beyond the heavy lifting so to speak and now it's a matter of time or would you have expected the recovery to be faster or slower any thoughts there would be helpful. Thank you very much.

Craig Peters: Yeah, Ron, I think we're beyond the heavy lifting, but we're just in a gradual re-ramp over time. And so we're hopeful that we'll continue to see that in the second half and into 2025. It's one where it will impact kind of all of our product lines. So it's not just an editorial item; it's an editorial plus creative. In fact, a lot of the content that is consumed in productions is creative.

Craig Peters: Thank you very much. Yeah, Ron, I think we're beyond the heavy lifting, but we're just in a gradual re-ramp over time. And so we're hopeful that we'll continue to see that over the second half and into 2025. It's one where that will impact kind of all of our product lines. So it's not just an editorial item. It's an editorial plus creative. In fact, a lot of the content that is consumed in these productions is creative.

Speaker Change: Yes, Ron I think I think we're well beyond the heavy lifting but we're just in a gradual ramp over time.

Speaker Change: And.

Speaker Change: And so we're hopeful that we'll continue to see that over over the second half and into 2025.

Speaker Change: It's one where that will impact kind of all of our product line. So it's not just the <unk>.

Mario: It's Mario.

Jen Layden: Manual subscription revenues was 52.9 percent of total revenue, up from 51.1 percent in Q2 2023. This is our seventh consecutive quarter with subscription revenue comprising north of 50 percent of our total revenue. In total, subscription revenue increased 5.2 percent on a reported basis and 5.7 percent currency neutral, driven primarily by growth across our e-commerce subscription offerings. Editorial revenue was 83.6 million, an increase of 4.1 percent year-on-year and 4.6 percent on a current sea neutral basis.

Mario: It's an editorial plus creative in fact, a lot of the content that is consumed in our productions is greater.

Craig Peters: So, yeah, we expect that we'll see that. Clearly, you know, following the media sector, it's one where that's been a bit more gradual by all reports. But all expectations are that by 2025, we should probably be back to where we were. But yeah, we're kind of past the heavy lifting side of things and should be in a situation where it's just a gradual return over time. And again, we've got deep embedded relationships within that community and those customer spaces and are in tight conversations with them. So I think that expectation is one that's grounded in good, solid customer communication.

Craig Peters: So, yeah, we expect that we'll see that. Clearly, following the media sector, it's one where that has been a bit more gradual by all reports. But all expectations are that by 2025, we should probably be back to where we were.

Mario: So we expect that we will see that clear.

Mario: Clearly you know following the media sector.

Mario: It's one where that's been a bit more gradual by all reports.

Mario: But all expectations are is that by 2025.

Mario: Probably we'd be back to where we were.

Craig Peters: But, yeah, we're kind of past the heavy lifting side of things and should be in a situation where it's just a gradual return over time. And, again, we've got deep embedded relationships within that community and those customer spaces and are in tight conversations with them. So I think that expectation is one that's grounded in good, solid customer communication and feedback. Thank you.

Mario: But yes.

Mario: Yes.

Mario: We're kind of past the heavy lifting side of things in and should be in a situation, where it's just a gradual.

Mario: Earned over time, and yes, we've got deep embedded relationships within that community and that those customer space.

Mario: And our conversations with them. So I think that that expectation is one that is grounded in good solid customer communication and feedback.

Jen Layden: We are seeing a strong rebound in editorial with the business delivering its first quarter of growth since the Hollywood Strikes began impacting our financial performance in Q2 of 2023. We saw growth across sports, news, and entertainment with the largest game in sports, which was in double-digit year-on-year growth. We are seeing lift from our impressive coverage of major events such as the European soccer season and the lead-up to the U.A.F.A, championship, as well as our coverage of the U.S, and U.K, election cycles.

Jen Layden: I'd just add there just to give some numbers, you know, if we look at specifically kind of that production side of things, when we were in the heart of Strike Impact last year, we saw that, you know, that industry down double digits. As we move into this first half of the year, still in decline, but now sort of in that lower single-digit range. So, you know, if you look at those numbers, we've gone from double-digit declines down to single-digit declines. So, we are seeing some improvement, but as Craig noted, we expect that recovery to continue for a bit longer.

Jen Layden: I just add there just to give some numbers, you know, if we look at the specifically conduct production side of things when we were in the heart of the strike impact last year, we saw that the industry was down double digits, as we move into this first half of the year, still in decline, but now sort of in that lower single digit range. So, you know, if you look at those numbers, we've gone from double-digit declines down to single-digit declines. So we are seeing some improvement, but as Craig noted, we expect that recovery to continue for a bit longer. Thank you. The question comes from Mark Sutoic with Benchmark.

Mario: Thank you Craig Thank you Joe.

Speaker Change: I'd just add there just to get some numbers.

Speaker Change: Look at specifically on that production side of things when we were in the heart.

Speaker Change: Strike impact last year, we saw that you know that industry down double digits.

As we move into this first half of the year is still in decline, but now sort of in that lower.

Speaker Change: Single digit range. So if you look at those numbers they've gone from double digit declines down to single digit decline so seeing some improvement.

Jen Layden: It is great to see our editorial business back in growth and we are excited to continue this momentum into the second half of the year. Creative revenues was 137.9 million, down 2.4 percent year-on-year, and 1.8 percent on a current sea neutral basis. Creative performance continues to reflect the pressures in the agency business, which down double-digit, due primarily to decline at the smaller, independent agency. As we mentioned earlier, we are seeing a lag in recovery on the productions that have been, which is also impacting creative results.

Speaker Change: As Craig noted, we expect that recovery to continue on a bit longer.

Speaker Change: Thank you.

Operator: Our next question comes from Mark Sutoic with Benchmark. Please go ahead.

Mark <unk>: Our next question comes from Mark <unk> with benchmark. Please go ahead.

Operator: Thank you. Good morning, Craig and Jen. A couple from me.

Operator: Please go ahead. Thank you. Good morning, Cray and Jen. A couple for me on, Well, one premium access question is curious how that report performed in the quarter and your expectations for the Ecom product. Basically, uh... roughly a 20% base today, so just growth in the second half. And then also, curious. I might have missed it, but I was curious what drove the big quarter over quarter growth within the other segment. Thanks, Mark. On PA, premium access is our largest subscription offering.

Mark <unk>: Thank you good morning, Craig and John.

Mark <unk>: A couple from me on <unk>.

Craig Peters: Well, one premium access question: just curious how that report performed in the quarter and your expectations for the econ product. Basically, I think it's roughly a 20% base today, so just growth in the second half. And then also curious, I might have missed it, but I was curious what drove the big quarter over quarter growth within the other segment. Thanks.

Speaker Change: Well one.

Speaker Change: Premium access just curious how that.

Speaker Change: Formed in the quarter.

Speaker Change: And.

Speaker Change: Your expectations for the economy product basically.

Speaker Change: Thank you.

Speaker Change: Roughly a 20% base today, so just growth in the second half.

Jen Layden: Creative annual subscription revenue continues to be in growth at 5.7 percent year on year and 6.2 percent on a currency neutral basis. Our customer acquisition efforts continue to drive growth in our I-stock annual subscription, which grew 19 percent on both a reported and a currency neutral basis, marking the 12th consecutive quarter of double digit growth. In addition, our unsplash plus subscription, the first paid subscription for unsplash, delivered another quarter with triple digit growth.

Speaker Change: Then also curious I might've missed it but I was curious what drove the big quarter over quarter growth within the other segment.

Craig Peters: Thanks, Mark. On PA, Premium Access is our largest subscription offering. It's our primary subscription offering. It includes a lot of our really premium content across editorial and creative, video, and stills, and can bring our archive into play. We continue to see really strong performance in that product, not just in the take-up of new customers but, more importantly, on the retention side of things and the utilization side. So it's a really strong product, and we haven't really seen any moderation in its performance at any point in the last couple of years.

Speaker Change: Thanks Mark.

Speaker Change: <unk> premium access is our largest subscription offering it's our it's our primary subscription offering.

Mark Sutoic: It's our primary subscription offering. It includes a lot of our really premium content across editorial and creative, video, and stills, and can bring our archive into play. We continue to see really strong performance in that product, not just in the take-up of new customers but, more importantly, on the retention side of things and the utilization side. So it's a really strong product, and we haven't really seen any moderation in its performance at any point in the last couple of years.

Speaker Change: It includes a lot of our really premium content across editorial and creative in video and skills can.

Speaker Change: Can bring our archive into play.

Speaker Change: We continue to see really strong performance in that product.

Speaker Change: Not just in in and take up of new customers, but more importantly on the retention side of things and the utilization side of things.

Jen Layden: As Craig mentioned, I-stock and unsplash largely e-commerce sites continue to grow. These sites on a combined basis represent roughly 20 percent of our revenue with over 50 percent fitting an annual subscription. Across our major geographies on a currency neutral basis, we saw year-on-year increases 1.7 percent in the Americas, 2.4 percent in Amia, and 3 percent in A-PAC. All of our major geographic regions were in growth, fantastic to see. Revenue lesser cost of revenue as a percentage of revenue remained consistently strong at 72.5 percent in Q2 up from 71.9 percent in Q2 of 2023.

Speaker Change: So it's a really strong product and we haven't really seen any.

Speaker Change: Moderation in its performance at any point.

Speaker Change: In the last couple of years.

Craig Peters: It's really about building the strength of that deep customer-embedded workflows and utilization. And that's kind of what we're bringing to the e-commerce side of things through those subscriptions on iStock and Unsplash. With respect to, you know, the performance going forward on iStock and on Splash, we continue to expect them to be in growth. These are platforms that are, again, really offering a differentiated content offering relative to competition. And it's one that we believe fundamentally resonates with our customers. We see them consuming that content relative to non-exclusive or other sources at a much higher level. And it's one that we think is a durable point of differentiation.

Speaker Change: It just it's it's really about building the strength of that deep customer embedded workflows.

Speaker Change: And utilization and Thats kind of what we're bringing to the e-commerce side of things do those subscriptions on ice lock in on Splash.

Speaker Change: With respect to how the performance going forward on an ice Bakken on splash.

Speaker Change: We continue to expect them to be in growth.

Speaker Change: These are platforms that are again.

Jen Layden: Total FGNA expense was 101.2 million down from 101.5 million in the prior year. As a percentage of revenue, our expense rate was 44.2 percent down from 45 percent last year. The lower expense rate was driven primarily by the increase in revenue and lower stock-based compensation in the quarter. Excluding stock-based compensation, FGNA rose to 97.2 million in the quarter or 42.4 percent of revenue up from 89.6 million or 39.7 percent of revenue in Q2 2023.

Speaker Change: Really offering a differentiated con.

Speaker Change: Content offering relative to competition and it's one that we believe fundamentally resonates with our customers, we see them consuming that content relative to nonexclusive or other sources at a much higher level.

Craig Peters: We see them consuming that content relative to non-exclusive or other sources at a much higher level, and it's one that we think is a durable point of differentiation. And we believe, based on paid download metrics, revenue metrics, and customer metrics, that we're taking share within those spaces, through those platforms, given their unique positioning and fundamentally the content that underpins that. And we expect that to continue. With respect to other, that includes our media manager offering and music offering, but also some data licensing.

Speaker Change: And it's one that we think thats a durable.

Craig Peters: And we believe, based on paid download metrics, revenue metrics, and customer metrics, that we're taking share within those spaces through those platforms, given their unique positioning and fundamentally the content that underpins that. And we expect that to continue. With respect to other, that includes our media manager offering and music offering, but also some data licensing.

Speaker Change: And the differentiation that we believe based off of paid download metrics revenue metrics.

Speaker Change: Customer metrics that we're taking share.

Speaker Change: And those spaces through those platforms.

Speaker Change: Given our unique positioning and fundamentally the content that underpins that and we expect that to continue.

Jen Layden: The increase in spend reflects our planned reinvestment in the business, primarily across staffing and marketing, in addition to higher commissions tied to revenue delivery and the inclusion of motorsport imaging operating costs. This quarter also included some elevated severance costs as we continue to optimize our resource allocation. These costs should be offset by saving from the balance of the year and higher net annualized savings going forward. Adjusted even, I was 68.8 million down 5.4 percent year over year and 4.7 percent on a currency neutral basis.

With respect to other.

Speaker Change: That includes our media managing immediate manager offering and music offering but also some data licensing and we did some small data licensing deals that are consistent with.

Craig Peters: And we did some small data licensing deals that are consistent with our view about really how we bring our content into the data licensing market, or if we bring our content into the data licensing market, which is, you know, really staying away from one-time kind of perpetual licenses and trying to do it more in a partnership model. So there was some slight data licensing that's consistent with that framework in Q2 off of a very small base historically. So that's what drives that in on the course. Jen, anything to add there? No, I think I think you touched on it.

Craig Peters: And we did some small data licensing deals that are consistent with our view about really how we bring our content into the data licensing market, or whether we bring our content into the data licensing market, which is, you know, really staying away from one-time kind of perpetual licenses and trying to do it more in a partnership model. So there was some slight data licensing that's consistent with that framework in Q2 off of a very small base historically. So that's what drives that in the course. Jen, anything to add there?

Speaker Change: With our view about.

Speaker Change: Really.

Speaker Change: How we bring our content into the data licensing market or if we bring our content licensing market, which is really staying away from one time kind of perpetual licenses and trying to do it more on the kind of partnership model. So there was some slight data licensing.

Speaker Change: With that framework.

Jen Layden: Adjusted even margin was 30 percent down from 32.2 percent in Q2 of 2023. FabEx was 15.4 million in Q2 up 1.5 million year over year. FabEx as a percentage of revenue was 6.7 percent compared to 6.2 percent in the prior year period and well within our expected range of 5 to 7 percent of revenue. The year-on-year increase is largely tied to timing within the year. Free cash flow of $31.1 million up from $27.9 million in Q2 of 2023.

Speaker Change: In Q2.

Speaker Change: Off of a very small base.

Speaker Change: Historically so.

That's what drives that in.

Speaker Change: And in the quarter.

Speaker Change: John anything to add there.

Jen Layden: No, I think you touched on it. You know, there's some other smaller individually immature immaterial contributors. There are the print business, or the music business, both of those also in growth. But again, these are fairly, fairly small numbers, as is that other grouping overall.

Jen Layden: You know, there's some other smaller individually immature immaterial contributors. There are principal, our music business, both of those also in growth, but these are fairly, fairly small numbers as is that other grouping overall. That's helpful. And just on the license, the data licensing side, how would you characterize that growth as, you know, more one-time in nature versus Carey Forward over the next 12 months? Just maybe... if you could frame that, Craig.

John Leighton: No I think I think you touched on it you know there are some other smaller individually inventory immaterial contributors there are prince business, our music business both of those also in growth, but again.

John Leighton: Is there a fairly fairly small numbers as is that other grouping overall.

Craig Peters: That's helpful. And just on the license, the data licensing side, how would you characterize that growth as, you know, more one-time in nature versus, you know, carry forward over the next 12 months? Just maybe. And one last one for me, just in terms of politics, in the Olympics, if you could maybe quantify that, your expected contribution relative to the last cycle, that would be helpful.

Speaker Change: That's helpful and just on the license the data licensing side is that how would you characterize that growth.

Speaker Change: Yes, no more onetime in nature versus.

Jen Layden: The increase in free cash flow reflects working capital changes related to the timing of receivables and payables. Free cash flow is dated net of cash from $6.20 million and cash tax is paid of $12.8 million in the second quarter. We finished the quarter with $121.7 million of balance sheet cash, down $12.5 million from Q1 2024 and up $0.4 million from Q2 2023. This includes $32.6 million in voluntary debt repayment in the second quarter of 2024.

Speaker Change: Carry forward over the next 12 months just maybe.

Speaker Change: If you could frame that Craig.

Craig Peters: And one last one for me, just in terms of politics and the Olympics, if you could maybe quantify that, your expected contribution relative to the last cycle. Yeah, thanks, Mark. You know, there's a bit of accounting with 606 and revenue recognition that makes that a little bit of a pull forward on some of the data licensing, but these are kind of within the model that we've always stressed, which is kind of, you know, more recurring in nature, kind of more partnership in nature.

Speaker Change: One last one for me just in terms of political.

Speaker Change: And the Olympics, if you could maybe quantify that.

Speaker Change: Your expected contribution relative to the last cycle.

Speaker Change: It would be helpful. Thanks.

Craig Peters: Yeah, thanks, Mark. There's a bit of accounting with 606 and revenue recognition that makes that a little bit of a pull forward on some of the data licensing, but these are kind of within the model that we've always stressed, which is kind of, you know, more recurring in nature, kind of more partnership in nature. So, I would see, you know, some level of lumpiness just due to the different recognition aspects relative to kind of linear time-based recognition, but for the most part, we're trying to build recurring durable revenue streams over time.

Craig: Yeah. Thanks Mark.

Speaker Change: It should be there is a bit of accounting with <unk> and revenue recognition that makes that a little bit of a pull forward on some of the on the data licensing, but these are kind of within the model that we've always stressed which is kind of more recurring in nature kind of more partnership in nature.

Craig Peters: So, I would see, you know, some level of lumpiness just due to the different recognition aspects relative to kind of linear time-based recognition, but for the most part, we're trying to build recurring durable revenue streams over time. That is our focus as a leadership team and as a business and how we're approaching this. So, probably a little bit of lumpiness, but ultimately, you can think about it as something that we're building relationships and revenue that we believe will be recurring over time, but how they're recognized might vary a little bit.

Speaker Change: So I would see some level of lumpiness just different recognition aspects.

Jen Layden: As of June 30, we had total debt outstanding of $1.35 billion, which includes $300 million of $9.75% senior notes, $601.8 million U.S.D, term loans with an applicable interest rate of 9.94% $448.5 million Euro term loans converted using exchange rates as of June 30 of 2024 with an applicable rate of 8.69%. We also have a 150 million revolver that remains withdrawn. Our net leverage was 4.2 times at the end of Q2 unchanged from both Q1 and year end 2023.

Speaker Change: Relative to kind of linear time based.

Speaker Change: Recognition, but for the most part where we're trying to build recurring durable revenue streams over time.

Craig Peters: That is our focus as a leadership team and as a business and how we're entering this. So, probably a little bit of lumpiness, but ultimately, you can think about it as something that we're building relationships and revenue that we believe will be recurring over time, but how they're recognized might vary a little bit. And as for the, you know, the editorial calendar in terms of the elections and the, and, and the Olympics and Euros.

Speaker Change: That is our focus as a leadership team and as a business.

Speaker Change: And how were entering this so probably a little bit of Lumpiness.

Speaker Change: But but ultimately you can think about it is something that we're building.

Relationships and revenue that we believe will will be recurring over time, but how they recognize Mike Berry a little bit.

Craig Peters: And as for the, you know, the editorial calendar in terms of the elections and the, and, and the Olympics and Euros. We expected that to be slightly lower than the historic contribution on a four-year cycle, presidential, so 2020 versus 24. We were probably closer to 10 to 12 million in the previous cycle, largely driven by the political side of things, and we expected this year to be around 8 to 10, again largely driven by a differential on the political side of things.

Speaker Change: And as for the the editorial calendar in terms of the elections and the.

Speaker Change: And in the Olympics in euros.

Craig Peters: We expected that to be slightly lower than the historic contribution on a four-year cycle, presidential, so 2020 versus 24. We were probably closer to 10 to 12 million in the previous cycle, largely driven by the political side of things, and we expected this year to be around 8 to 10, and again largely driven by a differential on the political side of things. We'll see how that plays out.

Jen Layden: We remain committed to utilizing our cash flow to further deliver to the balance sheet and we will continue to proactively explore opportunities to refinance our debt. Based on the foreign exchange rates and applicable interest rates on our debt balance, as of June 30, our 2024 cash interest expense is estimated to be $131 million. Of course, our actual annual interest expense remains subject to changes in the interest rate environment, which we outline in more detail within our FUC filing.

Mike Berry: We expected that to be slightly lower than the historic contribution on a four year cycle.

Speaker Change: Yeah.

Speaker Change: Presidential So 2020 versus 24, we were probably closer to $10 million to $12 million.

Speaker Change: In the previous cycle, largely driven by the political side of things and we expected this year to be around 8% to 10, and again largely driven by a differential on the political side of things.

Craig Peters: We believe that that might be a conservative point of view, given how the election is now shaping up in the U. S. And I can tell you, having come out of Paris and sat with a lot of our commercial partners in Paris, there's a lot of activity that is flowing out of that. So, you know, we're hopeful that there might be some upside relative to what we set in our initial guidance. But I think you can think about it in that 8 to 10 million range.

Craig Peters: We'll see how that plays out. We believe that might be a conservative point of view, given how the election is now shaping up in the U. S. And I can tell you, having come out of Paris and sat with a lot of our commercial partners in Paris, there's a lot of activity that is flowing out of that. So, you know, hopeful that there might be some upside relative to what we set in our initial guidance. But I think you can think about it in that 8 to 10 million range.

Speaker Change: We'll see how that plays out we believe that that might be conservative.

Jen Layden: In summary, it is good to see our business back and growth with healthy underlying key metrics. We remain fiscally disciplined. We continue to invest in this business and we look forward to building on our Q2 momentum.

Speaker Change: Point of view given how the election is now shaping up in the U S.

Speaker Change: And I can tell you having come out of Paris, and sat with a lot of our commercial partners in Paris.

Speaker Change: A lot of activity that has that is flowing out of that so.

Jen Layden: Now turning to our outlook for the full year 2024. Taking into consideration the estimated impact of the stronger U.S, dollar and assuming current effects were pulled, we are updating our reported revenue guidance range to 924 million to 943 million, representing year-on-year growth of 0.9% to 2.9%. On a currency neutral basis, this represents growth of 1% to 3%, which remains unchanged from our prior guidance.

Speaker Change: Hopeful that there might be.

Some upside relative to what we said in our initial guidance with them, but I think you can think about it in that $8 million to $10 million range.

Speaker Change: Yeah.

Craig Peters: Excellent. We're certainly seeing consumption of that content out of that premium access subscription offering, and it just speaks to, again, the quality of the content coverage that that team, our team, the Getty Images team, you know, pulled together in Paris. The speed, the quality, the depth, the breadth, the innovation around how we're covering games. I think, you know, some of the new content and new content types we were producing were just fantastic, and customers really reacted to them well.

Speaker Change: So we're certainly we're seeing.

Speaker Change: We're certainly seeing consumption of that content out of that premium access subscription offering and it just speaks to again the quad.

Speaker Change: Any of the contract coverage that that team our team to get the images team pulled.

Speaker Change: Pulled together in Paris, the speed the quality the depth breadth the innovation around how we're covering games I think.

Jen Layden: We now expect adjusted EBITDA of 290 million to 294 million, which translates to a year-on-year decrease of 3.8% to 2.5% or 3.6% to 2.3% currency neutral. The update toward adjusted EBITDA Outlook reflects the $2 million impact on current barring current due pressure, approximately $2 million at the integration related expenses that are more one-time in nature, and some higher than expected in toy health insurance costs. Please note, the estimated FX impacts include an assumption that FX rates remain consistent with those out of August 1, 2024, with the Euro at 1.08 and the GDP at 1.29 for the remainder of the year.

Speaker Change: Some of the new content and new content types were producing were just fantastic and customers really reacted to them well so.

Jen Layden: And one thing I'd add specifically on the political side, you know, that incremental revenue for us will be a lift for both creative and editorial. So historically, when we look back at political spend, it's roughly 50-50 in terms of how it hits creative and editorial. Sometimes it skews even higher on the creative side of things. So that, you know, political impact while we talk about it in the editorial side of the business, that impacts our creative revenue as well. Good point! That's helpful. Thanks, Jim.

Speaker Change: And one thing I'd add there specifically on the political side.

Jen Layden: That incremental revenue for us, that'll be a lift for both creative and editorial. So historically, when we look back at political spend, it's roughly 50-50 in terms of how it impacts creative and editorial. Sometimes it skews even higher on the creative side of things. So that political impact, while we talk about it in the editorial side of the business, that impacts our creative.

Speaker Change: That that incremental revenue for us that'll be electrical both created and editorial so historically when we look back at political spend it's roughly 50 50.

Speaker Change: In terms of how it hits creative editorial sometimes it skews even higher on the creative side of things. So that you know political impact while we talk about it and in the editorial side of the business that impacts our creative revenue as well.

Jen Layden: That's helpful. Thanks, Jim. Yep.

Speaker Change: Good point its helpful. Thanks, Jim.

Mark <unk>: Yes, thanks Mark.

Mark <unk>: Oh.

Operator: Our next question comes from Tim Nolan with Macquarie. Please go ahead.

Operator: Thanks, Mark. Our next question comes from Tim Nolan with Macquarie. Please go ahead. Hi.

Speaker Change: Our next question comes from Tim Nolan with Macquarie. Please go ahead.

Operator: Hi. I'd like to come back to the agencies topic, please. The agencies themselves have had kind of mixed-ish results. I'm just wondering what gives you the optimism going into the second half of the year. I mean, I think they've been stable overall. But I'm talking to larger agencies, which we cover on the public side. Maybe you're focused more on the smaller agencies. So, I was just wondering where the optimism comes from there. And secondly, and relatedly, I think last time we were talking a bit about agencies adopting more of the generative AI tools, and I'm wondering if there's any indication yet that they are shifting away from an a la carte to more of a subscription payment model as they adopt these tools. Thanks. Thanks, Tim.

Tim Nolan: I'd like to come back to the agencies topic, please. The agencies themselves have had kind of mixed-ish results. I'm just wondering what gives you the optimism going into the second half of the year. I mean, I think they've been stable overall.

Jen Layden: Despite these unplanned impacts, our operating efficiency remains strong, with adjusted even margins expected to be north of 31 percent, with positive momentum building, we remain optimistic for our full year return to growth while maintaining the fiscal discipline that has long been embedded in our business.

Tim Nolan: Hi, I'd like to come back to the agencies topic. Please the agencies themselves at that kind of mixed ish results. Just wondering what gives you the optimism going into the second half of the year I mean, I think they've been stable overall, but I'm talking to larger agencies.

Tim Nolan: But I'm talking to larger agencies, which we cover on the public side. Maybe you're focused more on the smaller agencies. So, I was just wondering where the optimism comes from there.

Speaker Change: On the public side, maybe your focus more on the smaller agencies. So just wondering where the optimism comes from there and then secondly, and Relatedly I think last time, we were talking a bit about agencies adopting more of a generative AI tools and I'm wondering if there's any indication yet that they are shifting away from an Ala Carte tomorrow.

Tim Nolan: And then, secondly, and relatedly, I think last time we were talking a bit about agencies adopting more of the generative AI tools, and I'm wondering if there's any indication yet that they are shifting away from an a la carte to more of a subscription payment model as they adopt these tools. Thanks. Thanks, Tim.

Operator: With that, operator, please open the call for questions. And at this time, if you would like to ask a question, please press the store and one on your telephone keypad. You may withdraw your question, pressing store 2. Once again, to ask a question, please press the store and one on your telephone keypad.

Speaker Change: Subscription payment model as they adopt these tools.

Corey Garbringer: We'll take our first question from Corey Garbringer with JP Morgan. Please go ahead. Good morning. Thanks for the questions. Craig, one for you and one for Jen. Maybe for you Craig, just on generative AI, you rolled out a lot, this quarter made a lot of progress. Hoping you could talk about the consumer engagement you're seeing, and then also, I know it's still early, but your thoughtfully has gotten on the potential monetization of that over time.

Craig Peters: Thanks, Tim. On the agency front, I would say that, you know, what we're really seeing is a stabilization within that portion of the business. This is, again, a segment where we're seeing double-digit declines, and we're seeing that start to moderate as, you know, we see some of the economic certainty start to improve as we see some of the sectors of the economy, like the tech sector, kind of bring back some spend and investment that flows through the agencies. So, you know, it's not anything that we're expecting in terms of a heroic change, as Jen referenced in her remarks, but it is one that we are seeing the trends of normalization.

Craig Peters: On the agency front, I would say that, you know, what we're really seeing is a stabilization within that portion of the business. This is, again, a segment where we're seeing double-digit declines, and we're seeing that start to moderate as, you know, we see some of the economic certainty start to improve as we see some of the sectors of the economy, like the tech sector, kind of bring back some spend and investment that flows through the agencies.

Tim Nolan: Thanks, Tim.

Speaker Change: The agency front I would say that.

Speaker Change: What we're really seeing is a stabilization.

Speaker Change: Within that portion of the business. This is a segment where were seeing double digit declines and we're seeing that start to moderate.

Speaker Change: As.

Speaker Change: As we see some of the economic certainty start to improve.

Corey Garbringer: And Jen, for you, could you touch more on the drivers of the reacceleration in the second half of the year, and the assumptions you're making in particular around the agency channel? Thank you both. Thanks for the question, Corey. On the generative front, we continuously really positive feedback from our customers across each and every segment of the business, and that's really due to the quality of the model and services that we're providing, but also the truly commercially safe nature of how these are built and what these can do.

Speaker Change: We see some of the sectors.

Speaker Change: Of the economy like the tech sector kind of bring back some spend and investment that flows through the agencies.

Craig Peters: So, you know, it's not anything that we're expecting in terms of a heroic change, as Jen referenced in her remarks, but it is one that we are seeing the trends of normalization. That's kind of led out through the large network agencies, and we're seeing, you know, early signs of that in the indie agencies. So we don't see a major shift to AI or subscription within those agencies, and that's largely because of how they work with their clients and what that means in terms of how they need to bill back to their clients.

Speaker Change: No.

Speaker Change: It's not anything that we're expecting in terms of a heroic changes Jane referenced in her in her remarks, but it is one that we are seeing that the trends of normalization.

Craig Peters: That's kind of led out through the large network agencies, and we're seeing, you know, early signs of that in the indie agencies. But we don't see a major shift to AI or subscription within those agencies, and that's largely because of how they work with their clients and what that means in terms of how they need to bill back to their clients. They still need to bill back on a per-project basis.

That's kind of led out through the large network agencies and we're seeing early signs of that in the <unk>.

Speaker Change: In the NDA agencies.

Speaker Change: So we don't see a major shift to AI or subscription within those agencies and that's largely again because of how they work with their clients and what that means in terms of how they need to build back to their clients. They still need to build back on a per project basis.

Corey Garbringer: It's still early days in the adoption curve, though, within the commercial sector. And so it's not material to the business. We expect over time. It can be a meaningful contributor to the revenues of the business, but it's still early days and fairly limited contribution to the business at this point, but it is on a growth trajectory.

Craig Peters: They still need to bill back on a per-project basis, so we're not seeing a shift into subscription. We're not really seeing any major shift into AI there in terms of end-project needs, but we are seeing experimentation, and that is certainly something that we see in there. And in many cases, that's in partnership with Getty Images.

Craig Peters: And as that becomes more material, there will be something we'll probably report back to.

Craig Peters: So we're not seeing a shift into subscription. We're not really seeing any major shift into AI there in terms of end-project needs, but we are seeing experimentation, and that is certainly something that we see there. And in many cases, that's in partnership with Getty Images. Okay, thank you. Thank you. This will conclude our Q&A session as well as our conference call.

So we're not seeing a shift into subscription.

Speaker Change: We're not really seeing any major shift into AI. There in terms of end project needs.

Speaker Change: But we are seeing experimentation.

Speaker Change: And that is certainly something that we.

Speaker Change: We see in there in many cases, that's in partnership with Getty images. So.

Operator: Okay, thank you. Thank you. This will conclude our Q&A session, as well as our conference. Thank you for your participation, and you may disconnect at any time. Thank you, www.youtube.com or www.youtube.com only. [inaudible] chadwickTV out.

Jen Layden: Jen? Yeah. And on guidance, and just as we noted, acceleration into the second half. So there's a few things there for top line performance. One, as we mentioned, we're still seeing certainly through the first half Q2 some continued lag on that production side of things recovery. So a bit of continuing improvement there. We have seen those declines start to taper off, but largely still a slower recovery than we anticipated. So a bit of pickup there agency side of things were not necessarily expecting any material changes there, but again, slow, ready, slow gradual improvement to those double digit declines that we're seeing.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you.

Operator: Thank you. And this will conclude our Q&A session as well as our presentation.

Speaker Change #100: Thank you and this will conclude our Q&A session as well as our conference call. Thank you all for your participation and you may disconnect at any time.

Speaker Change #100: Thank you.

Yeah.

Speaker Change #100: Okay.

Speaker Change #100: Yes.

Speaker Change #100: Yeah.

Speaker Change #100: Hum.

Speaker Change #100: Okay.

unknown: the the the the the the the the the the the the the the there the the them the the the the A A in in in in and and in the the the

Speaker Change #100: Uh-huh Uh-huh.

Jen Layden: You know, other big piece of this, which which we spent some time talking about before is the editorial, side of our business. There's a few things woven in there. One, obviously, as we move into the second half of the year, we've got a really favorable year on your comp with those strike impacts, starting to impact us largely in Q3 in the second half of last year. So we've got built-in favorable comp there.