Shutterstock Inc (SSTK) 2023 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q4 2023 Shutterstock Inc earnings conference call. (Operator Instructions) Please be advised that the conference is being recorded. I would now like to hand over to your speaker today, Chris Suh, Vice President, Investor Relations, Corporate Development. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 Shutterstock Inc 2023 年第四季財報電話會議。 （操作員說明）請注意，會議正在錄製中。現在我想請今天的發言人克里斯蘇 (Chris Suh) 發言，他是負責投資者關係和企業發展的副總裁。請繼續。

Thanks, Kevin. Good morning, everyone. And thank you for joining us for Shutterstock's fourth quarter 2023 earnings call. Joining us today are Paul Hennessy, Shutterstock's CEO; and Jarrod Yahes, Shutterstock's CFO.

謝謝，凱文。大家，早安。感謝您參加 Shutterstock 的 2023 年第四季財報電話會議。今天加入我們的是 Shutterstock 執行長 Paul Hennessy；和 Shutterstock 財務長 Jarrod Yahes。

Please note that some of the information that you'll hear in our discussion today will consist of forward looking statements including without limitations the long term effects of investments in our business, the future success and financial impact of new and existing product offerings, our ability to continue acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, our future growth margins and profitability, our long-term strategy and our performance targets, including 2024 guidance and long-range financial targets.

請注意，您在今天的討論中聽到的一些資訊將包含前瞻性陳述，包括但不限於我們業務投資的長期影響、新產品和現有產品的未來成功和財務影響、我們的能力繼續收購並將我們已收購或可能收購的業務整合到我們現有的業務、未來的成長利潤和獲利能力、我們的長期策略和業績目標中，包括2024 年指導和長期財務目標。

Actual results or trends could differ materially from our forecast.

實際結果或趨勢可能與我們的預測有重大差異。

For more information, please refer to today's press release and the presentation materials discussing our long-range financial targets, which we've (technical difficulty) in our website.

欲了解更多信息，請參閱今天的新聞稿和討論我們的長期財務目標的演示材料，我們已將其（技術難度）發佈在我們的網站上。

Please also refer to the reports we filed with the SEC from time to time, including the risk factors discussed in our most recent (technical difficulty) for discussion of important risk factors that could cause results to differ could differ materially from any forward-looking statements we make on the call.

另請參閱我們不時向 SEC 提交的報告，包括我們最近討論的風險因素（技術難度），以了解可能導致結果不同的重要風險因素的討論可能與任何前瞻性陳述存在重大差異我們打電話。

We'll be discussing certain non-GAAP financial measures today, including adjusted EBITDA and adjusted margin, adjusted net income, adjusted net income per diluted share, revenue growth including our distribution channel on a constant currency basis, billings and free cash flow.

今天我們將討論某些非公認會計準則財務指標，包括調整後的EBITDA 和調整後的利潤率、調整後的淨利潤、調整後的每股攤薄淨利潤、收入增長（包括按固定匯率計算的分銷通路）、帳單和自由現金流。

Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the financial papers included with today's press release in our 10-K.

這些非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的調整可以在我們今天的 10-K 新聞稿中包含的財務文件中找到。

I'd now like to turn the call over to Paul Hennessy, CEO.

我現在想將電話轉給執行長 Paul Hennessy。

Thank you, Chris, and good morning to everyone on the call.

謝謝你，克里斯，祝所有參加電話會議的人早安。

We appreciate you joining us.

我們感謝您加入我們。

We have a lot of ground to cover today.

今天我們有很多內容要講。

We'll be discussing Shutterstock's 2023 results and 2024 guidance.

我們將討論 Shutterstock 的 2023 年業績和 2024 年指導。

In addition, we will introduce a new framework to help investors better understand the company's long-term trajectory, including long-term financial targets for 2027.

此外，我們將引入一個新的框架，幫助投資人更了解公司的長期軌跡，包括2027年的長期財務目標。

We have posted material that outlines our framework for Shutterstock 2027 on our Investor Relations website.

我們已在投資者關係網站上發布了概述 Shutterstock 2027 框架的資料。

I'll turn first to Shutterstock's strong performance in 2023, Shutterstock generated a record $241 million of EBITDA and $875 million of revenue in 2023, in line with our most recent guidance and well ahead of the initial guidance we had issued a year ago.

我首先談談Shutterstock 在2023 年的強勁表現，Shutterstock 在2023 年實現了創紀錄的2.41 億美元EBITDA 和8.75 億美元的收入，這與我們最新的指導一致，並且遠遠領先於我們一年前發布的初步指導。

In 2023, 6% top line growth was paired with 27.5% EBITDA margins and 10% EBITDA growth.

2023 年，6% 的營收成長與 27.5% 的 EBITDA 利潤率和 10% 的 EBITDA 成長相匹配。

For the full year, our Enterprise channel grew 33%.

我們的企業通路全年成長了 33%。

As investors are aware, the exceptional growth in our Enterprise channel was driven by the strength of our data revenues, which more than quintupled to $104 million in 2023.

正如投資者所知，我們的企業通路的出色成長是由我們的數據收入強勁推動的，該收入到 2023 年將增加五倍多，達到 1.04 億美元。

Excluding data, Enterprise had another strong year growing 8% in 2023, with growth accelerating to 12% in Q4 2023, driven by continued strength across content, studios, and GIPHY.

不包括數據，企業業務在 2023 年又迎來強勁增長 8%，在內容、工作室和 GIPHY 持續強勁的推動下，成長在 2023 年第四季加速至 12%。

For the full year, our e-commerce channel declined 12%, while e-commerce revenues were softer than expected.

全年來看，我們的電子商務管道下降了 12%，而電子商務收入則低於預期。

Operational improvements to the top of the funnel to the broader customer journey are stabilizing the business, and we are confident it will improve gradually over the course of 2024 and return to growth.

從漏斗頂部到更廣泛的客戶旅程的營運改善正在穩定業務，我們相信業務將在 2024 年逐步改善並恢復成長。

To that end, we have a number of initiatives underway to drive a recovery in revenues from our small and medium customers that constitute the bulk of e-commerce revenue.

為此，我們正在採取一系列舉措，以推動中小型客戶的收入復甦，這些客戶構成了電子商務收入的大部分。

These initiatives span two core areas.

這些舉措涵蓋兩個核心領域。

One, driving higher traffic and higher conversion rates at the top of the funnel.

第一，在漏斗頂部推動更高的流量和更高的轉換率。

And two, driving higher retention for the customers we've already converted.

第二，提高我們已經轉換的客戶的保留率。

We are also in the process of dramatically reducing free trial as part of our conversion funnel.

作為轉換管道的一部分，我們也正在大幅減少免費試用。

Reducing the use of free trial as a conversion tool has led to some short-term pain in new customer additions and subscriber counts.

減少免費試用作為轉換工具的使用導致了新客戶增加和訂戶數量的一些短期痛苦。

However, we believe this is the right course of action to build a strong base of highly retentive customers seeking a premium stock content offering.

然而，我們相信這是為尋求優質庫存內容產品的高保留性客戶建立強大基礎的正確行動方針。

We also believe that new and higher AOV content types will help us back to growth.

我們也相信，新的、更高的 AOV 內容類型將幫助我們恢復成長。

Video and 3D have begun to pick up steam.

影片和 3D 已開始蓬勃發展。

For Shutterstock, the revenue from video, 3D, and music has grown at double digits for the past four years.

對 Shutterstock 來說，過去四年來自影片、3D 和音樂的收入以兩位數成長。

Video, 3D, music, and other non-image revenues as a percentage of total content revenue have increased from 25% to 35%, driven by higher AOV and revenue per download.

在較高的 AOV 和每次下載收入的推動下，影片、3D、音樂和其他非圖像收入佔內容總收入的百分比從 25% 增加到 35%。

We expect this trend to continue.

我們預計這一趨勢將持續下去。

And on the generative AI front, we are squarely focused on monetization and creating generative AI focused product SKUs.

在生成人工智慧方面，我們完全專注於貨幣化和創建以產生人工智慧為中心的產品 SKU。

We have now deployed multiple image generation APIs accessible within each of our products and are optimizing the technology to this specific customer behavior and the product SKU.

我們現在已經在每個產品中部署了多個可存取的映像生成 API，並正在根據特定的客戶行為和產品 SKU 優化技術。

And we expect to be in market with our 3D generative capabilities this year.

我們預計今年將憑藉 3D 生成能力進入市場。

Switching gears, let's look ahead to our 2027 long-range targets over the past several years.

換個話題，讓我們展望一下過去幾年 2027 年的長期目標。

The profitability of our content business has allowed us the flexibility and freedom to invest in other areas that offer faster opportunities for growth.

我們內容業務的獲利能力使我們能夠靈活、自由地投資於其他領域，從而提供更快的成長機會。

These investment opportunities are both adjacent to and highly complementary to content.

這些投資機會與內容既相鄰又高度互補。

And now these investments are rapidly transforming into true businesses with multi-billion dollar TAMs with high growth potential.

現在，這些投資正在迅速轉變為真正的業務，擁有數十億美元的 TAM，具有高成長潛力。

And going forward, we'll be shining a light on them and providing revenue breakouts across two categories, content, and data distribution and services.

展望未來，我們將重點關注它們，並提供內容、數據分發和服務兩個類別的收入突破。

This transition and reporting reflects the shift to emphasize our offerings rather than the sales channels we used to go to market.

這種轉變和報告反映了我們的轉變，重點是我們的產品，而不是我們過去進入市場的銷售管道。

Content is sold both online and through our global sales team.

內容透過線上和我們的全球銷售團隊銷售。

As a company, we are focused on acquiring and retaining customers, small, medium, and large in a cohesive and integrated fashion.

作為一家公司，我們致力於以凝聚力和整合的方式獲取和留住小型、中型和大型客戶。

And the e-commerce versus Enterprise dividing line is become increasingly blurry.

電子商務與企業的分界線變得越來越模糊。

Furthermore, the new reporting line enables us to provide greater line of sight into our non content revenue streams which before had been embedded in Enterprise.

此外，新的報告範圍使我們能夠更深入地了解先前嵌入企業版的非內容收入流。

As we think about our content category, since inception, Shutterstock has been and will continue to be a leading global creative platform that connects brands and businesses to high-quality content.

當我們思考我們的內容類別時，自成立以來，Shutterstock 一直並將繼續成為全球領先的創意平台，將品牌和企業與高品質內容聯繫起來。

Across a range of brands and content types, our content business grows steadily, operates globally at massive scale, and generate large amounts of cash.

我們的內容業務在一系列品牌和內容類型中穩步增長，在全球範圍內大規模運營，並產生大量現金。

Our content business generated $737 million in revenue last year, making us one of the largest players in our industry, and is powered by the industry's largest content library across content types.

我們的內容業務去年創造了 7.37 億美元的收入，使我們成為業內最大的參與者之一，並由業界最大的跨內容類型的內容庫提供支援。

We also have the largest network of contributors and multiple channels with which to go to market including a global sales force and multiple web properties that service a range of customers.

我們也擁有最大的貢獻者網路和多個進入市場的管道，包括全球銷售團隊和為一系列客戶提供服務的多個網路資產。

This past year, we layered generative image creation and generative editing capabilities into our offering, thereby making both stock content and AI generated content available to our customers.

去年，我們將生成圖像創建和生成編輯功能融入我們的產品中，從而為我們的客戶提供庫存內容和人工智慧生成的內容。

Shutterstock content business occupies a leadership position within the stock content industry and enjoys significant scale, brand recognition, and operating leverage.

Shutterstock 內容業務在股票內容產業中佔據領導地位，並享有顯著的規模、品牌知名度和營運槓桿。

However, the stock content industry is a more mature market with a TAM that approximates $8 billion growing at 5% to 7%.

然而，股票內容產業是一個更成熟的市場，其 TAM 約為 80 億美元，並以 5% 至 7% 的速度成長。

We expect to return to growth at the higher end of this range by leveraging our current strengths in areas like video and 3D, and leading with newer content types like generative image, video, and 3D.

我們預計，透過利用我們目前在影片和 3D 等領域的優勢，並引領產生影像、影片和 3D 等更新的內容類型，我們將在該範圍的高端恢復成長。

We intend to improve our leadership position in stock content by being attuned to customer demand signals for content and meeting their evolving needs.

我們打算透過適應客戶對內容的需求訊號並滿足他們不斷變化的需求來提高我們在庫存內容方面的領導地位。

Our acquisition of Backgrid last month is a prime example of meeting customer demand for content.

我們上個月收購 Backgrid 是滿足客戶內容需求的典型例子。

With this acquisition, we expanded our editorial library with an additional 13 million images and videos across candid celebrity, red carpet, and live events, and added more than 1,400 contributors.

透過此次收購，我們擴大了我們的編輯庫，新增了 1,300 萬張涉及名人、紅毯和現場活動的圖像和視頻，並增加了 1,400 多名貢獻者。

In short, we acquired exclusive trending content from our key customers and a loyal customer base.

簡而言之，我們從主要客戶和忠實客戶群中獲得了獨家趨勢內容。

Backgrid augments the launch of our editorial subscription last year and combined with our Splash acquisition positions us well to be a supplier of choice for entertainment content.

Backgrid 增強了我們去年推出的社論訂閱服務，再加上我們對 Splash 的收購，使我們成為娛樂內容的首選供應商。

And so now having reviewed our core content category, I'd like to talk to investors about our emerging growth businesses which, going forward, we will be reporting out as data, distribution, and services.

因此，現在回顧了我們的核心內容類別後，我想與投資者討論我們的新興成長業務，並展望未來，我們將作為數據、分銷和服務進行報告。

Shutterstock's data business occupies a pivotal position on the generative AI value chain.

Shutterstock 的數據業務在生成人工智慧價值鏈上佔據著舉足輕重的地位。

Today, we are a preferred provider of training data for generative AI models due to the depth and quality of our ethically sourced content and metadata and the accompanying legal protection we provide across images, video, music, and 3D.

如今，由於我們道德來源的內容和元資料的深度和質量，以及我們在圖像、影片、音樂和 3D 領域提供的相應法律保護，我們已成為產生 AI 模型訓練資料的首選提供者。

As we look ahead, AI and machine learning model training will continue to be a growth opportunity, especially as we look to diversify our revenue base by targeting new buyers beyond the hyperscalers.

展望未來，人工智慧和機器學習模型培訓將繼續成為一個成長機會，特別是當我們希望透過瞄準超大規模企業以外的新買家來實現收入基礎多元化時。

In fact, we just won our first seven-figure contract involving a venture back startup in the generative AI ecosystem and we feel there are much more such opportunities ahead.

事實上，我們剛剛贏得了第一份七位數的合同，涉及生成人工智慧生態系統中的一家風險投資新創公司，我們認為未來還有更多這樣的機會。

We'll also be expanding our delivery model by leveraging our cloud marketplace partners.

我們也將利用我們的雲端市場合作夥伴來擴展我們的交付模式。

This will allow us to go from being a wholesale provider of data to the likes of Meta and OpenAI to a retail provider of data to the hundreds of companies we believe are going to custom train their own models.

這將使我們從 Meta 和 OpenAI 等資料的批發提供者轉變為我們相信將客製化訓練自己模型的數百家公司的資料零售提供者。

To that end, we are in the process of rolling out Shutterstock's training data onto data marketplaces of Databricks, Snowflake, Amazon, and Google Cloud.

為此，我們正在將 Shutterstock 的訓練資料推出到 Databricks、Snowflake、Amazon 和 Google Cloud 的資料市場上。

We are just starting to gain traction through this expanded distribution and we are excited about leveraging the large scale sales teams and marketing support of these major parts.

我們剛開始透過這種擴大的分銷管道獲得吸引力，我們很高興能夠利用這些主要部分的大規模銷售團隊和行銷支援。

Data is a sizable TAM with enormous growth potential.

數據是一個規模龐大的 TAM，具有巨大的成長潛力。

Licensing data sales for train generative AI models is estimated to be $9 billion TAM by 2030 with a growth rate of over 20%.

到 2030 年，火車生成 AI 模型的授權數據銷售額預計將達到 90 億美元 TAM，成長率超過 20%。

And we believe we have some of the most unique and differentiated assets in this space to be able to win here as reflected in the growth of our data business, which grew to $104 million in 2023.

我們相信，我們在這個領域擁有一些最獨特、最差異化的資產，能夠在這個領域獲勝，這反映在我們數據業務的成長上，該業務在 2023 年增長至 1.04 億美元。

Next, let's talk about distribution, which includes our newly acquired GIPHY platform.

接下來我們來談談發行，其中包括我們新收購的GIPHY平台。

GIPHY is a scaled content platform that reaches more than 1 billion daily users, serves more than 10 billion pieces of content daily, and has more than 20,000 API/SDK partners.

GIPHY是一個規模化的內容平台，每日覆蓋超過10億用戶，每日服務超過100億條內容，擁有超過20,000個API/SDK合作夥伴。

The GIPHY platform extends our reach into conversational content, which provides us with an enormous opportunity to build a native advertising business built on contextual signals.

GIPHY 平台將我們的業務範圍擴展到對話內容，這為我們提供了建立基於上下文訊號的原生廣告業務的巨大機會。

Native advertising is a $95 billion business in the US alone, growing at 14%.

光是在美國，原生廣告就創造了 950 億美元的業務，並且成長率為 14%。

And GIPHY is well-positioned to be an industry leader in moment marketing within real-time conversations.

GIPHY 完全有能力成為即時對話即時行銷的產業領導者。

Furthermore, GIPHY allows us to expand our API relationships with the major tech giants and other API partners.

此外，GIPHY 使我們能夠擴大與主要科技巨頭和其他 API 合作夥伴的 API 關係。

And we will be looking to convert these partners into paying customers.

我們將尋求將這些合作夥伴轉變為付費客戶。

GIPHY also bolsters our ability to be an end to end solution for advertisers who can rely on us for both custom content creation and broad media distribution.

GIPHY 也增強了我們為廣告主提供端到端解決方案的能力，廣告主可以依靠我們進行客製化內容創作和廣泛的媒體分發。

In the past few quarters, we've already developed advertising relationships with brands such as L'Oreal, Cerave, Pepsi's Pure Leaf Tea, and Sony, plus additional work for two major financial service brands and a leading delivery service.

在過去的幾個季度中，我們已經與歐萊雅、Cerave、百事可樂的純葉茶和索尼等品牌建立了廣告關係，此外還為兩個主要金融服務品牌和領先的送貨服務開展了額外的工作。

These initial test started small, but are already rapidly expanding the potential for budget and scale is tremendous here.

這些最初的測試一開始規模很小，但已經在迅速擴大預算潛力，而且規模巨大。

GIPHY has the potential to be hundreds of millions of dollars in revenue based on industry CPM rates of $5 to $10 and the billions of viewable impressions on our platform.

根據 5 至 10 美元的行業每千次曝光費用率以及我們平台上數十億的可見展示次數，GIPHY 有可能實現數億美元的收入。

Lastly, GIPHY ties into our data business and the content library contains a rich repository of data and extends the scope of our licensable dataset to now include gifs.

最後，GIPHY 與我們的資料業務聯繫在一起，內容庫包含豐富的資料儲存庫，並將我們的可授權資料集的範圍擴展到現在包括 gif。

We are very excited about the early momentum of the GIPHY business, the impressive breadth of deals already won, and the robust pipelines in place, and we're looking forward to keeping you informed as we grow the business.

我們對 GIPHY 業務的早期勢頭、已贏得的令人印象深刻的交易廣度以及強大的管道感到非常興奮，我們期待著在我們發展業務的過程中隨時向您通報情況。

Next, let's talk about services, which includes Shutterstock Studios.

接下來，我們來談談服務，其中包括 Shutterstock Studios。

We launched Shutterstock Studios in 2020.

我們於 2020 年推出了 Shutterstock Studios。

Our Studios business is growing rapidly, and we see the opportunity to grow 25% for the long term.

我們的工作室業務正在快速成長，我們看到了長期成長 25% 的機會。

Since inception, we have delivered an award-winning array of work, spanning 32nd spots, branded documentaries, animated commercials, experiential activations, episodic series, and more.

自成立以來，我們推出了一系列屢獲殊榮的作品，涵蓋 32 個廣告片、品牌紀錄片、動畫廣告、體驗式活動、劇集系列等。

We continue to see strong demand and a robust pipeline going into 2024 for customers' traditional production and creative needs from the world's biggest brands and creative agencies.

到 2024 年，我們仍然看到全球最大的品牌和創意機構對客戶的傳統製作和創意需求的強勁需求和強大的管道。

And most recently we've already won work and see significant growth opportunities in the realm of virtual production and games development.

最近，我們已經贏得了工作，並在虛擬製作和遊戲開發領域看到了巨大的成長機會。

Virtual production is a $2 billion market, and there's a very natural alignment between our Turbo Switch 3D assets and Studios offering that makes us unique.

虛擬製作是一個價值 20 億美元的市場，我們的 Turbo Switch 3D 資產和工作室產品之間存在著非常自然的一致性，這使我們獨一無二。

Now with the production power of Shutterstock Studios, we leveraged 3D and virtual production technology at scale, creating virtual environments from relocation and building fantastical worlds that are truly immersive.

現在，借助 Shutterstock Studios 的製作能力，我們大規模利用 3D 和虛擬製作技術，透過搬遷創造虛擬環境，並建立真正身臨其境的奇幻世界。

This is the same method that was initially pioneered by Hollywood studio, and we are now adapting the same technology for commercial projects worldwide.

這與好萊塢工作室最初開創的方法相同，我們現在正在將相同的技術應用於全球的商業項目。

This is completely transforming how our customers are approaching global content and marketing.

這徹底改變了我們的客戶處理全球內容和行銷的方式。

Because of the investments we've made in 3D, this has become a viable alternative to physical production creating new paths that are more sustainable, efficient, and creatively empowering.

由於我們在 3D 方面進行的投資，這已成為物理生產的可行替代方案，創造了更永續、更有效率和更具創造性的新路徑。

Meanwhile, game development is a $45 billion market and you can't talk about gaming without talking about 3D.

同時，遊戲開發是一個價值 450 億美元的市場，談論遊戲就不能不談 3D。

3D content is a critical component in games and Turbo Swift is a trusted name for that content.

3D 內容是遊戲中的關鍵組成部分，而 Turbo Swift 是該內容的值得信賴的名稱。

Moreover, companies are looking to enter the gaming space with their original IP.

此外，該公司正在尋求利用其原創IP進入遊戲領域。

Budgets are tight.

預算很緊張。

Talent is in short supply.

人才緊缺。

Shutterstock's 3D assets, studios footprint, and global talent network gives us the right to play and win in this exciting realm.

Shutterstock 的 3D 資產、工作室足跡和全球人才網絡使我們有權利在這個令人興奮的領域發揮作用並獲勝。

Taken together, our data, distribution, and services offering massively expands our TAM by over 10x.

總而言之，我們提供的數據、分發和服務將我們的 TAM 大幅擴展了 10 倍以上。

These offerings already account for 16% of Shutterstock's total revenue today, and we expect this percentage to grow to 22% of total revenues by 2027.

目前，這些產品已佔 Shutterstock 總收入的 16%，我們預計到 2027 年，這一比例將增加到總收入的 22%。

We've developed a clear leadership position in content and a massively successful and profitable business, and we intend to do the same thing in data, distribution, and services over the next several years.

我們已經在內容領域建立了明確的領導地位，並且業務取得了巨大的成功和盈利，並且我們打算在未來幾年在數據、分發和服務方面做同樣的事情。

We will be innovating and investing in these businesses, setting them up to grow over 20% per annum for the long term.

我們將對這些業務進行創新和投資，使它們的長期年增長率超過 20%。

As a result, we expect Shutterstock 2027 to result in significant reacceleration of our revenue growth to 10% with even faster growth in profitability.

因此，我們預計 Shutterstock 2027 將使我們的營收成長顯著加速至 10%，獲利能力成長甚至更快。

In conclusion, we're proud of what we accomplished in 2023 and the growth and profit we delivered for our shareholders.

總之，我們對 2023 年所取得的成就以及為股東帶來的成長和利潤感到自豪。

Across our business, we believe there are tremendous opportunities to accelerate growth and we believe in Shutterstock's 2027 long-term targets and approach to allocating capital to large fast-growing opportunities to accelerate the growth of our business.

在我們的整個業務中，我們相信存在巨大的加速成長機會，我們相信 Shutterstock 的 2027 年長期目標以及將資本分配給大型快速成長機會的方法，以加速我們業務的成長。

As a team, we are united in purpose and mission to empower the world to tell their story by bridging the gap between idea and execution, and to connect customers to the content they need.

作為一個團隊，我們的目標和使命是團結一致的，透過彌合想法與執行之間的差距，讓世界能夠講述他們的故事，並將客戶與他們所需的內容聯繫起來。

I really like the hand we have, and we're excited for what's in store in 2024 and beyond.

我真的很喜歡我們現有的牌，我們對 2024 年及以後的前景感到興奮。

I'll now turn the call over to Jarrod to review our financial results, 2024 guidance, and the financial impact of Shutterstock 2020.

現在，我將把電話轉給 Jarrod，以審查我們的財務業績、2024 年指導以及 Shutterstock 2020 的財務影響。

Thank you, Paul, and good morning, everyone.

謝謝你，保羅，大家早安。

Shutterstock's revenues were up 6% in 2023 to $875 million, significantly better than expectations we had at the beginning of the year and at the midpoint of the guidance provided in the third quarter.

Shutterstock 的營收在 2023 年成長了 6%，達到 8.75 億美元，明顯優於我們年初和第三季指引中位數的預期。

In the fourth quarter, we grew our Enterprise channel, excluding data by 12%, a sharp acceleration and in line with our expectations.

第四季度，我們的企業頻道（不包括數據）成長了 12%，大幅加速，符合我們的預期。

While our e-commerce revenues were softer than we expected, we are stabilizing the business and improving our results and expect to get back to growth during 2024.

雖然我們的電子商務收入低於我們的預期，但我們正在穩定業務並改善業績，並預計在 2024 年恢復成長。

EBITDA was a record $241 million this year with margins of 27.5% and annual EBITDA growth of 10%. 2023 is the fourth consecutive year Shutterstock has outperformed our EBITDA margin targets.

今年 EBITDA 達到創紀錄的 2.41 億美元，利潤率為 27.5%，年度 EBITDA 成長率為 10%。 2023 年是 Shutterstock 連續第四年超出我們的 EBITDA 利潤率目標。

The combination of revenue growth and margin expansion has resulted in an EBITDA growth CAGR of 26% over the past four years.

收入成長和利潤率擴張相結合，導致過去四年 EBITDA 複合年增長率達到 26%。

In the fourth quarter, EBITDA margins were 21% per our expectations.

第四季 EBITDA 利潤率為 21%，符合我們的預期。

We took advantage of our strong year-to-date margin performance and made significant investments in sales and marketing while still delivering 120 basis points of margin expansion for the full year.

我們利用年初至今強勁的利潤率表現，在銷售和行銷方面進行了大量投資，同時全年利潤率仍實現了 120 個基點的擴張。

As I review the P&L, line items are net of related depreciation and amortization, stock compensation, and other expense items necessary to reconcile to our adjusted EBITDA.

當我審查損益表時，行項目已扣除相關折舊和攤提、股票補償以及與我們調整後的 EBITDA 一致所需的其他費用項目。

Gross margins in the fourth quarter declined by 3 percentage points to 65%, driven largely by the shift in our business mix, including the acquisition of GIPHY.

第四季的毛利率下降了 3 個百分點，至 65%，這主要是由於我們業務組合的轉變（包括收購 GIPHY）所致。

Sales and marketing expense in the fourth quarter was 26% of revenue compared to 21% in the prior year.

第四季的銷售和行銷費用佔收入的 26%，而去年同期為 21%。

This increase was the result of expected increases in performance marketing and branding expense.

這一成長是效果行銷和品牌費用預期增加的結果。

Product development of 6.4% of revenue flat to the prior year and G&A expenses were 11% of revenue compared to 13% in the prior year, driven by lower salary expenses.

產品開發佔收入的 6.4% 與上年持平，由於薪資支出下降，一般管理費用佔收入的 11%，而上年為 13%。

Turning to our balance sheet, we had $100 million of cash at the end of the quarter and $30 million drawn on our revolver.

看看我們的資產負債表，季度末我們有 1 億美元的現金，還有 3000 萬美元的左輪手槍動用資金。

Free cash flow was strong at $42 million and EBITDA to free cash flow conversion was 90%.

自由現金流強勁，達到 4,200 萬美元，EBITDA 與自由現金流的轉換率為 90%。

In January, we deployed cash for acquisitions acquiring back rate for $20 million.

一月份，我們部署現金用於收購，收購回報率為 2000 萬美元。

We expect the Backgrid acquisition and our annual performance bonus to impact our cash in the first quarter in line with historical seasonality.

我們預計 Backgrid 收購和我們的年度績效獎金將根據歷史季節性影響我們第一季的現金。

As a testament to the confidence in our future cash flow, Shutterstock increased its quarterly dividend by 10% in January to $0.3 per share, our fourth year of double-digit dividend increases.

為了證明我們對未來現金流的信心，Shutterstock 在 1 月將季度股息提高了 10%，達到每股 0.3 美元，這是我們第四年實現兩位數股息成長。

We also bought back 1.6 million shares for $100 million under our share repurchase programs over the past two years, representing 4% of our shares or 6%, including the shares we repurchased from employees for tax withhold to cover.

過去兩年，我們也根據股票回購計畫以1 億美元的價格回購了160 萬股股票，相當於我們股票的4% 或6%，其中包括我們從員工處回購的預扣稅款的股票。

For 2024, we anticipate continuing with our strategy of capital redeployment with excess free cash flows being used to acquire businesses, paying dividends and to repurchase stock.

2024 年，我們預計將繼續實施資本重新部署策略，將多餘的自由現金流用於收購業務、支付股利和回購股票。

I would now like to turn to 2024 guidance before discussing our long-range financial targets.

在討論我們的長期財務目標之前，我現在想先談談 2024 年的指導。

For the full year, we expect our revenues and adjusted EBITDA to be unchanged with $875 million of revenues and $241 million of EBITDA.

對於全年，我們預計收入和調整後 EBITDA 保持不變，收入為 8.75 億美元，EBITDA 為 2.41 億美元。

In 2024, we expect content to continue its solid growth with medium and large-sized customers.

2024 年，我們預期大中型客戶的內容將持續穩健成長。

We also expect stabilization of our business with smaller online customers.

我們也預計我們與小型線上客戶的業務將會穩定。

The two customer segments are expected to offset each other, resulting in content revenues being flat for the full year.

這兩個客戶群預計將相互抵消，導致全年內容收入持平。

Year-over-year growth rates for content will start the year negative and improve gradually each quarter over the course of the year.

內容的年成長率將在年初出現負成長，並在一年中每季逐漸改善。

In 2024, we expect data distribution and services to be unchanged from 2023 as we set the stage for accelerated growth.

2024 年，我們預計資料分發和服務將與 2023 年保持不變，因為我們為加速成長奠定了基礎。

Distribution and services will grow rapidly this year, driven by strong new customer acquisition and ongoing momentum.

在強勁的新客戶獲取和持續發展勢頭的推動下，今年的分銷和服務將快速成長。

And while demand remains strong and the TAM is large and growing, our data offering is undergoing a known transition from an upfront licensing model to one where revenues are recognized ratably over time.

儘管需求仍然強勁，而且 TAM 規模龐大且不斷增長，但我們的數據產品正在經歷從預先授權模式到隨著時間的推移可按比例確認收入的模式的轉變。

Our EBITDA guidance assumes normal annual levels of sales and marketing expense of 24%, consistent with the past several years.

我們的 EBITDA 指導假設銷售和行銷費用的正常年度水準為 24%，與過去幾年一致。

We expect adjusted earnings per share to be in the range of $4.15 to $4.30, in effective tax rate in the high teens and CapEx consistent with prior years.

我們預計調整後每股盈餘將在 4.15 美元至 4.30 美元之間，有效稅率處於高位，資本支出與前幾年一致。

I would now like to review our long-term financial targets and what to expect from Shutterstock 2027.

我現在想回顧一下我們的長期財務目標以及對 Shutterstock 2027 的期望。

As Paul discussed, we are fundamentally changing the way we invest in and report out on our business.

正如保羅所討論的，我們正在從根本上改變我們投資和報告業務的方式。

Q4 will be the last quarter that we break out revenue channels between e-commerce and Enterprise.

第四季將是我們突破電子商務和企業之間營收管道的最後一個季度。

As we focus on the execution of Shutterstock 2027, we have an opportunity to dramatically take up the overall growth rate of our business by making focused investments for growth in data distribution and services, while maintaining our leadership position in content.

當我們專注於 Shutterstock 2027 的執行時，我們有機會透過集中投資促進數據分發和服務的成長，同時保持我們在內容方面的領先地位，從而大幅提高我們業務的整體成長率。

We expect our content business to return to the high end of industry growth rates of 5% to 7%.

我們預計我們的內容業務將恢復到產業成長率5%至7%的高端水準。

We are confident that we can achieve a re-acceleration of growth, leveraging our existing leading portfolio of content and brands and strong distribution with our world-class global sales team.

我們相信，利用我們現有的領先內容和品牌組合以及世界一流的全球銷售團隊的強大分銷能力，我們能夠實現重新加速成長。

We also plan to capitalize on our leadership position in content types beyond image, such as video, 3D, and music.

我們還計劃利用我們在圖像以外的內容類型（例如影片、3D 和音樂）方面的領導地位。

These content types are growing much faster at 12% per year, have higher AOVs, and now comprise 35% of our content business, up from 25% just a few years ago.

這些內容類型的成長速度要快得多，每年成長 12%，具有更高的 AOV，目前占我們內容業務的 35%，而幾年前這一比例為 25%。

We are targeting 22% growth in data distribution and services.

我們的目標是資料分發和服務成長 22%。

Our data distribution and services offerings are already growing rapidly with exciting demand signals.

我們的數據分發和服務產品已經隨著令人興奮的需求訊號而快速成長。

They've proven their ability to scale and become meaningful businesses.

他們已經證明了自己有能力擴大規模並成為有意義的企業。

These fast-growing businesses will go from 16% of revenues today to 22% of revenues by 2027.

到 2027 年，這些快速成長的業務佔收入的比例將從目前的 16% 增加到 22%。

The mix shift will also have the effect of increasing our company growth rate by 300 basis points to 10% annually.

混合轉型也將使我們公司的年增長率提高 300 個基點，達到 10%。

By the end of 2024, we will have made the requisite investments and be well positioned to capitalize on the massive TAM opportunity in these businesses.

到 2024 年底，我們將進行必要的投資，並做好充分利用這些業務中巨大 TAM 機會的準備。

Our fastest growth businesses in data, distribution and services are also some of the most profitable, creating a tailwind for margins.

我們在數據、分銷和服務方面成長最快的業務也是利潤最高的業務之一，為利潤創造了有利條件。

For example, data benefits from 20 to 30 points of lower SG&A costs and distribution benefits from 10 to 20 points of higher gross margins than our corporate average.

例如，與公司平均相比，數據受益於 SG&A 成本降低 20 至 30 個百分點，分銷受益於毛利率提高 10 至 20 個百分點。

Longer term, we expect EBITDA margins to improve from 27.5% today to 30% by 2027, driven by a 1% to 2% improvement in gross margin due to the business mix change toward data distribution and services and 1% to 2% improvement in operating leverage through reduced SG&A and R&D costs.

從長遠來看，我們預期EBITDA 利潤率將從現在的27.5% 提高到2027 年的30%，原因是業務組合向資料分發和服務方向轉變，毛利率提高1% 到2%，以及業務成長1%到2%。透過降低 SG&A 和研發成本來提高營運槓桿。

Achievement of our long-range targets will result in $1.2 billion of revenue in 2027 and revenue growth of 10% per annum.

實現我們的長期目標將在 2027 年實現 12 億美元的收入，並且每年收入成長 10%。

Combining double digit revenue growth with expanding margins will result in even faster EBITDA growth of 13% with $350 million of EBITDA by 2027.

將兩位數的營收成長與不斷擴大的利潤率相結合，將導致 EBITDA 成長更快，到 2027 年將達到 13%，達到 3.5 億美元。

Based on our strong free cash flow margins, we expect to generate over $800 million of cash over the next four years cumulatively.

基於我們強勁的自由現金流利潤率，我們預計未來四年將累積產生超過 8 億美元的現金。

Our capital allocation will be consistent with past practice, deploying 50% of free cash flow to M&A, and organic investment in our business with the remainder split between dividends and share repurchases.

我們的資本配置將與過去的做法保持一致，將 50% 的自由現金流用於併購和對我們業務的有機投資，其餘部分用於股息和股票回購。

We have consistently been disciplined acquirers and M&A will likely be a key component of our achievement of Shutterstock 2027.

我們一直是紀律嚴明的收購者，併購可能是我們實現 Shutterstock 2027 目標的關鍵組成部分。

We are pleased to be able to introduce long-term targets as part of Shutterstock 2027.

我們很高興能夠在 Shutterstock 2027 中引入長期目標。

We believe this framework will allow investors to better understand our long-term revenue growth opportunity, more clearly see the business mix shifts towards large SaaS growth plans, and provide clarity into our plans for margin expansion and capital allocation.

我們相信，這個框架將使投資者更了解我們的長期收入成長機會，更清楚地看到業務組合轉向大型 SaaS 成長計劃，並為我們的利潤擴張和資本配置計劃提供清晰的資訊。

And with that, operator, we will open the line for questions.

接線員，我們將開通提問熱線。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) Bernie McKernan, Needham & company.

（操作員說明）Bernie McKernan，Needham & 公司。

Great.

偉大的。

Good morning.

早安.

Thanks for taking the questions.

感謝您提出問題。

Maybe just to start, I would love to get your level of conviction on the 2027 targets and what the macro environment's assumed and really content revenue coming back to growth and really the client base of computer vision deals, as you mentioned earlier, going down market and more retail focus.

也許只是開始，我很想了解您對 2027 年目標的信心程度以及宏觀環境的假設，以及真正滿意的收入恢復增長以及計算機視覺交易的客戶群，正如您之前提到的，市場走低以及更多的零售焦點。

Just wanted to get some broader macro assumptions to underpin the 27 outlook.

只是想獲得一些更廣泛的宏觀假設來支撐 27 的前景。

Great.

偉大的。

Thanks, Bernie.

謝謝，伯尼。

On I'll take that one, and I'll start with the macro.

我會選擇那個，然後從巨集開始。

We've got the same crystal ball that you all have.

我們和你們擁有同樣的水晶球。

So we've made the assumption that we're going to be operating in a market not tremendously different than the market that we're operating in today because it's just very, very difficult to project.

因此，我們假設我們將在一個與我們今天運營的市場沒有太大不同的市場中運營，因為它非常非常難以預測。

What gives us the conviction about delivering big numbers and a return to growth categorically for our business is that we know how to do that.

讓我們堅信我們的業務能夠實現巨大的數字並恢復成長，因為我們知道如何做到這一點。

We've done it with our core content business and when we lean into businesses, they tend to scale nicely and we're going to be doing that again with our new product offerings of data, distribution and services.

我們已經透過我們的核心內容業務做到了這一點，當我們專注於業務時，它們往往會很好地擴展，我們將透過我們的資料、分發和服務的新產品再次做到這一點。

And the truth is we wanted to shine a light on these businesses, so everyone could understand our capital allocation, the growth opportunities, and the TAM expansion.

事實上，我們希望專注於這些業務，以便每個人都能了解我們的資本配置、成長機會和 TAM 擴張。

And when you look at expanding our core content TAM by over 10x, we believe we're going to get a share of that market.

當您考慮將我們的核心內容 TAM 擴展超過 10 倍時，我們相信我們將獲得該市場的份額。

And so we're highly confident in the numbers that we've put forward.

因此，我們對我們提出的數字非常有信心。

Bernie, one thing I would add is on the content side of things, so you look at the historical 4% growth CAGR expanding to 7% prospectively, about a third of our revenues is now 3D video, music, and non-image revenue types.

伯尼，我要補充的一件事是內容方面，所以你看看歷史上4% 的複合年增長率，未來將擴大到7%，我們現在大約三分之一的收入來自3D 視頻、音樂和非圖像收入類型。

That piece of the content business that's a third of the revenues is growing double digits.

佔收入三分之一的內容業務正以兩位數的速度成長。

It's growing at about 12%.

其成長率約為 12%。

And so when a third of your business is becoming a larger and larger piece of the pie, it does allow you to expand the growth of your business and so we look forward to that mix shift, benefiting our content business prospectively over the next several years.

因此，當您的業務的三分之一變得越來越大時，它確實可以讓您擴大業務的成長，因此我們期待這種組合轉變，從而在未來幾年內使我們的內容業務受益。

Understood.

明白了。

And just one follow-up.

只有一個後續行動。

You mentioned data moving more toward -- sales moving more towards marketplaces and more retail in nature, is it possible just to peel back the onion on that a little bit more?

你提到數據更轉向——銷售更多轉向市場和本質上的零售，是否有可能只是再剝一點洋蔥？

Just how active are those marketplaces currently?

這些市場目前有多活躍？

How is the margin opportunity different?

保證金機會有何不同？

I would just love -- and is this a '24 event or is this kind of a longer term potential funnel?

我只是想——這是 24 年的活動還是這是一種長期的潛在漏斗？

So Bernie, this is a '24 event.

伯尼，這是 24 年的活動。

This is something that has been in the works and an area of investment for us for some period of time.

這是我們一段時間以來一直在進行的工作和投資領域。

And we strongly believe that we're effectively going to where the customers are.

我們堅信，我們正在有效地到達客戶所在的地方。

Our customers don't naturally think of Shutterstock as a place to go for computer vision training data and training their generative AI models, but they do typically go to a Data Bricks or Snowflake or an AWS or GCS in order to acquire training data.

我們的客戶自然不會認為 Shutterstock 是獲取電腦視覺訓練資料和訓練來產生 AI 模型的地方，但他們通常會使用 Data Bricks 或 Snowflake 或 AWS 或 GCS 來獲取訓練資料。

This is also the natural compute environment for these customers.

這也是這些客戶的自然運算環境。

These platforms also, as you would understand, have tremendous brand recognition as well as sales capabilities that we expect to leverage.

如您所知，這些平台還擁有我們希望利用的巨大品牌認知度和銷售能力。

So we're excited about that.

所以我們對此感到興奮。

We also think it fundamentally changes the economic value proposition or the margin profile.

我們也認為它從根本上改變了經濟價值主張或利潤狀況。

The way these distribution channels make money is not by taking a cut of the data cells, it's through the compute.

這些分銷管道賺錢的方式不是透過分割資料單元，而是透過計算。

And so they're looking forward to having our data on their ecosystems so they can drive additional compute in the cloud.

因此，他們期待在他們的生態系統中獲得我們的數據，以便他們可以在雲端中驅動額外的運算。

Youssef Squali, Truist Securities.

優素福‧斯誇裡 (Youssef Squali)，Truist 證券公司。

So just a couple of questions.

所以只有幾個問題。

Maybe starting with the e-commerce revenue down 16%, there is obviously a thesis out there that AI platforms maybe structurally hurting that business.

也許從電子商務收入下降 16% 開始，顯然有一個論點認為人工智慧平台可能會在結構上損害該業務。

Can you talk about why you don't believe that to be the case?

您能談談為什麼您不相信事實如此嗎？

And how do you see that business kind of progressing through -- throughout 2024?

您如何看待該業務在 2024 年全年的進展？

And I think you just said earlier that you are going to stop reporting that as a segment and it's going to just be part of contents?

我想你剛才說過，你將停止將其作為一個片段進行報道，而它將只是內容的一部分？

What KPI should be looking at to see that business is indeed improving if you're going to be removing that KPI -- reported KPI?

如果您要刪除該 KPI（報告的 KPI），那麼您應該關注哪些 KPI 才能看到業務確實在改善？

Great.

偉大的。

Thank you, Youssef.

謝謝你，優素福。

On the AI question, here's our view.

關於人工智慧問題，這是我們的觀點。

We're dealing with the largest buyers of content in the world on a daily basis and we're in discussions with them on a daily basis for their creative needs.

我們每天都在與世界上最大的內容買家打交道，並每天與他們討論他們的創意需求。

And while much of the world is experimenting and playing with and testing generative AI creation, we are not seeing our customers at any level of scale with a desire to buy, purchase, and utilize AI generated images or video or 3D to this point.

儘管世界上許多地方都在嘗試、嘗試和測試生成式 AI 創作，但到目前為止，我們還沒有看到任何規模的客戶有購買、購買和利用 AI 生成的圖像、影片或 3D 的願望。

So we believe that any of the softness that we've seen in our own e-commerce business, as we mentioned in our prepared remarks, much is related to, I think, the free trial offering in our business running its course.

因此，我們相信，正如我們在準備好的發言中提到的那樣，我們在自己的電子商務業務中看到的任何疲軟，很大程度上與我們業務運作中的免費試用服務有關。

And it's really no longer constructive to our business, and as we've articulated, we're going to be moving away from that and we'll find new and other interesting ways to promote our business to our smallest and maybe less frequent customers.

這確實對我們的業務不再有建設性，正如我們所闡明的，我們將擺脫這一點，我們將找到新的和其他有趣的方式來向我們最小的、可能不那麼頻繁的客戶推廣我們的業務。

But Shutterstock is built a business in offering its products and services to customers that need to created or need to create some kind of advertising or other use and are bona fide customers.

但 Shutterstock 的業務是向需要創建或需要創建某種廣告或其他用途且是真正客戶的客戶提供其產品和服務。

And we're going to appeal to those customers that are actually retentive and have a desire to purchase content.

我們將吸引那些真正有記憶力並且有購買內容慾望的客戶。

And then maybe one more.

然後也許還有一個。

The 3D opportunity, can you talk a little about that and the partnership with Nvidia.

3D 機會，您能談談它以及與 Nvidia 的合作關係嗎？

I think you talked about it being a 2024 event.

我想你說過這是 2024 年的活動。

Do you expect it to be early in 2024 or is this kind of by end of year?

您預計會在 2024 年初還是年底？

And how do you -- how should we be thinking about the revenue opportunity for this one?

我們該如何考慮這個收入機會？

So Youssef, as you know, this is something we've been working on for some time.

尤瑟夫，如你所知，這是我們已經研究了一段時間的事情。

This has been an area of investment.

這一直是個投資領域。

Training a 3D generative model is a different and likely a more challenging endeavor than an image generation model.

訓練 3D 生成模型與影像生成模型不同，而且可能更具挑戰性。

So there's been a lot of work taking place behind the scenes.

因此，幕後正在進行大量工作。

We're excited to bring this to market.

我們很高興將其推向市場。

We already have been working with alpha customers on the large customer side who have an interest in this technology.

我們已經與對這項技術感興趣的大客戶方面的阿爾法客戶合作。

There is the potential to significantly lower cost of content creation across a range of use cases and opportunities from gaming to film development.

從遊戲到電影開發的一系列用例和機會中，有可能大幅降低內容創建成本。

And so there's a lot of interest.

所以人們對此很感興趣。

And there are not products in market that really are trained with the level of clean data that our product will be trained with.

市場上沒有真正經過我們產品訓練的乾淨資料水平訓練的產品。

We do anticipate having this out in the early part of the year.

我們確實預計會在今年年初推出。

This is not a second half of the year event.

這不是今年下半年的活動。

This is first half and maybe even a first quarter type of rollout.

這是上半年，甚至可能是第一季的推出。

And we're already in extensive testing with alpha customers.

我們已經與阿爾法客戶進行了廣泛的測試。

So we are quite excited about this opportunity.

所以我們對這個機會感到非常興奮。

This is not necessarily going to be a retail opportunity first, it's going to be an API offering for some of the most sophisticated large customers in the world.

這首先不一定是零售機會，而是為世界上一些最成熟的大客戶提供 API。

But we are quite excited about this opportunity here.

但我們對這裡的這個機會感到非常興奮。

Andrew Boone, JMP Securities.

安德魯·布恩，JMP 證券。

I wanted to ask about GIPHY and where that sits today as well as how this factors into your new [2027] framework and what we should be contemplating there?

我想問 GIPHY 以及它今天的位置，以及它如何影響您的新 [2027] 框架以及我們應該在那裡考慮什麼？

And then there are press reports that Reddit just signed a $60 million a year deal for their data.

然後有媒體報導 Reddit 剛剛簽署了一份每年 6000 萬美元的數據協議。

Can you just step back and talk big picture about pricing and how you guys are thinking about pricing your deals?

您能否退後一步，談談定價的大局以及您如何考慮為您的交易定價？

And with respect to that $60 million, your figure that's out there, how do you guys think about your data sales?

就那 6000 萬美元而言，你們的數字是多少，你們如何看待你們的數據銷售？

Thanks so much.

非常感謝。

Yeah, I'll take GIPHY and Jerry can take data.

是的，我會使用 GIPHY，而 Jerry 可以取得資料。

On GIPHY, GIPHY plays a large role in data distribution and services model going forward.

在 GIPHY 上，GIPHY 在未來的資料分發和服務模型中發揮著重要作用。

We are -- we've been -- since acquisition in the middle of last year, we've been dusting off the ad platform.

自去年年中收購以來，我們一直在清理廣告平台。

We've been going to market both with ad sales and working with our API partners for value exchange.

我們一直在透過廣告銷售進行行銷，並與我們的 API 合作夥伴合作進行價值交換。

And as you heard in my prepared remarks, given the amount of traffic and from what I would call modest CPM rates, we believe this business is in the hundreds of millions of dollars and therefore plays an important role in the growth of our new area called data distribution services.

正如您在我準備好的發言中所聽到的，考慮到流量和我所說的適度的每千次展示費用率，我們相信這項業務價值數億美元，因此在我們名為“CPM”的新領域的發展中發揮著重要作用。資料分發服務。

So GIPHY is critical to that element, and we're super excited with the momentum and the performance thus far.

因此，GIPHY 對於該元素至關重要，我們對迄今為止的勢頭和性能感到非常興奮。

I would just add on to that by saying that, GIPHY is already growing.

我想補充一點，GIPHY 已經在成長。

GIPHY is already acquiring clients.

GIPHY 已經在獲取客戶。

We're very excited about the potential here.

我們對這裡的潛力感到非常興奮。

And GIPHY also plays into data, as Paul mentioned previously.

正如 Paul 之前提到的，GIPHY 也涉及資料。

Hearing that Reddit is looking at a $60 million deal annually for data is not entirely surprising.

聽說 Reddit 正在尋求每年 6000 萬美元的數據交易，這並不完全令人驚訝。

I think there's a broad realization that training generative models on data that is [scraped], that is not paid for, where content creators are not remunerated for their works is not a sustainable long-term business model.

我認為人們普遍認識到，在[抓取]的資料上訓練生成模型，這些資料是無償的，內容創作者不會因其作品獲得報酬，這不是一個可持續的長期商業模式。

There is a case pending with the New York Times that I think people are eagerly awaiting the outcome of.

《紐約時報》有一個懸而未決的案件，我認為人們正在熱切地等待結果。

And I think while it is possible to scrape data and use it in a model, ultimately, if enterprise customers are going to want to use the works of that model, they are going to want to know what ingredients are used in the training of that model.

我認為，雖然可以抓取資料並在模型中使用它，但最終，如果企業客戶想要使用該模型的作品，他們會想知道在訓練該模型時使用了哪些成分模型。

And so that is going to benefit our business and that is benefiting our business.

因此，這將有利於我們的業務，這也將有利於我們的業務。

There are companies that are taking shortcuts today and they are able to train our models.

如今有些公司正在走捷徑，他們能夠訓練我們的模特兒。

But I think what they're going to find is if you're going to want to actually commercialize that model, you are going to need to convince your end customers that the training data set that was used was rightfully acquired.

但我認為他們會發現，如果您想要真正將該模型商業化，您將需要說服您的最終客戶，所使用的訓練資料集是正確獲得的。

And so we believe that that's a significant tailwind for our business.

因此，我們相信這對我們的業務來說是一個重要的推動力。

As Paul spoke about, we think this is a $9 billion TAM with very significant 20% type of growth potential.

正如 Paul 所說，我們認為這是一個 90 億美元的 TAM，具有非常顯著的 20% 成長潛力。

And we are just in the early stages of gearing up this business for growth, bringing it to the cloud ecosystems for distribution, adding to our business development team in order to get our data out there.

我們正處於推動這項業務成長的早期階段，將其引入雲端生態系統進行分發，並加入我們的業務開發團隊，以便將我們的資料發佈出去。

And today, working with many of the hyperscalers but also newly extending our reach into smaller companies in the generative ecosystem, many of which have received billions of dollars of venture capital backed financing.

如今，我們不僅與許多超大規模企業合作，而且還新將我們的業務範圍擴展到了生成生態系統中的小型公司，其中許多公司已經獲得了數十億美元的風險資本支持的融資。

So we're excited to sell and expand into the data ecosystem.

因此，我們很高興能夠出售並擴展到數據生態系統。

Nitin Bansal, Bank of America.

尼廷·班薩爾，美國銀行。

Can you -- you mentioned that you're expanding your delivery model by leveraging cloud market partners, which allows you to go from a wholesale provider to retail providers.

您提到您正在利用雲端市場合作夥伴來擴展您的交付模式，這使您可以從批發提供者轉變為零售提供者。

Can you throw some light on the pricing pressure of data -- like retail consumers?

您能否闡明數據的定價壓力（例如零售消費者）？

And secondly, your competitors also have a similar set of data, so what kind of competition are you seeing in that data market?

其次，您的競爭對手也有一組類似的數據，那麼您在該數據市場中看到了什麼樣的競爭？

And what do you think are the implications for that in the long

您認為長遠來看這會產生什麼影響

--?

——？

Sure, Nitin.

當然，尼廷。

Thank you so much for your question.

非常感謝你的提問。

As you would expect, the way we price our data as effectively depending on the volume of data consumed.

正如您所期望的，我們對資料進行有效定價的方式取決於消耗的資料量。

So there is a volume based pricing where the more you purchase the lower the unit price of that data.

因此，存在基於數量的定價，您購買的越多，該數據的單價就越低。

There is differential pricing for images as compared to videos, music, and 3D.

與影片、音樂和 3D 相比，影像的定價存在差異。

And ultimately, these deals are fairly individually negotiated depending on the use cases of the customer.

最終，這些交易是根據客戶的用例進行單獨協商的。

Some customers would like access to this data for generative model training for a number of years.

一些客戶希望多年來能夠存取這些數據來進行生成模型訓練。

Other customers are looking for a shorter period of time.

其他客戶則尋求更短的時間。

And so I think that impacts the pricing as well.

所以我認為這也會影響定價。

Ultimately, as we think about this, we think that there are tremendous opportunities here in order to grow and these cloud ecosystems are going to be the place where that distribution takes place.

最終，當我們思考這一點時，我們認為這裡存在著巨大的成長機會，而這些雲端生態系統將成為分發發生的地方。

(Operator Instructions) And I'm not showing any further questions this time.

（操作員說明）這次我不會再提出任何進一步的問題。

I'd like to turn the call back over to Paul for any closing remarks.

我想將電話轉回給保羅，讓他發表結束語。

Thank you.

謝謝。

As always, we want to express our gratitude to our customers, contributors and of course, our employees.

一如既往，我們要向我們的客戶、貢獻者，當然還有我們的員工表示感謝。

Thank you all for joining us That ends our call for today.

感謝大家加入我們今天的通話到此結束。

Ladies and gentlemen, this does conclude today's presentation.

女士們、先生們，今天的演講到此結束。

You may now disconnect and have a wonderful day.

您現在可以斷開連接並度過美好的一天。