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What: Shares of online digital image seller Shutterstock (NYS: SSTK) jumped as much as 13% today, after the recent IPO reported strong quarterly earnings.
So what: Shutterstock, which provides over 22 million images for various publications and other outlets, said that the number of paid downloads it sold grew by 26%, and revenue per download also ticked up by 7%. Total revenue jumped 36%, to $42.3 million, and net income grew to $0.31 per share compared to $0.20 a year ago. Management also raised its revenue guidance for 2013 to $204 million to $208 million, but did not issue EPS guidance.
Now what: Considering that many IPOs often fade quickly after an initial pop, it's reassuring to see Shutterstock post such strong results in its first report as a publicly-traded company. Based on last quarter's EPS, the company is trading at a P/E less than 20, with considerable long-term growth prospects, as digital images become more valuable and more common, such as in marketing and business communications. Its fast-growing library should also help lock out competition. It's easy to see the stock moving higher in the near future.
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The article Why Shutterstock Shares Jumped originally appeared on Fool.com.
Jeremy Bowman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.