Getty Images Lowers 2023 Revenue Expectations Due to Various Challenges
Getty Images revises its 2023 revenue and Ebitda projections downward due to market challenges, including Hollywood strikes and a stronger dollar. The company expects these impacts to continue through the fourth quarter.
Troy D. Hanson
November 14, 2023
Getty Images Holdings recently announced a revision to its 2023 outlook, citing a range of challenges that have affected its projections. These challenges include strikes in Hollywood and the impact of a stronger dollar.
Revised Revenue Expectations
The visual content company now forecasts its revenue to be in the range of $900 million to $910 million for 2023. This is a decrease from its previous guidance of between $920 million and $935 million.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization
Getty Images also provided updated guidance for its adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda). The company now expects this figure to be between $287 million and $295 million. Previously, they had forecasted adjusted Ebitda between $292 million and $303 million.
Market Challenges and Adverse Impacts
Jennifer Leyden, the Chief Financial Officer of Getty Images, highlighted challenging market conditions as the primary factor behind the revised outlook. She specifically mentioned adverse impacts from Hollywood strikes, pressures on the agency business, and the stronger dollar as significant contributors to the change. Leyden also noted that these impacts are expected to continue through the fourth quarter.
Reporting Legal Fees
Getty Images explained that the updated guidance also reflects a change in how it reports legal fees related to warrant litigation. The company had previously disclosed its involvement as a defendant in two lawsuits filed by former public warrant holders.
While these challenges present hurdles for Getty Images, the company remains committed to navigating them and continuing to provide valuable visual content to its customers.