Why Shutterstock Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Shutterstock have popped in a big way and have now risen roughly 16% after the company posted a double beat in its latest quarter.

So what: Shutterstock's revenue rose 42% year over year in the fourth quarter to $49.2 million, and adjusted earnings per share came in at $0.88. The top line delivered a respectable beat of the Street's $44.9 million expectations, but EPS was so far ahead of the analyst consensus of $0.15 per share that it might have been reported from a parallel universe. Shutterstock now anticipates a revenue range of $48.5 million to $50.5 million and an adjusted EBITDA range of $9 million to $10 million for the in-progress first quarter. The company also expects full-year revenue of between $213 million to $219 million and adjusted EBITDA of $44.0 million to $46.5 million.

Now what: The current analyst estimates for Shutterstock's revenue are $47.2 million for the first quarter and $208.2 million for the full year. Shutterstock surpasses both estimates handily. Adjusted EBITDA will be lower in the first quarter than it was for the fourth, as Shutterstock reported an $11.3 million result today. However, at the upper bound of its full-year guidance, Shutterstock would finish 2013 with 33% more adjusted EBITDA than its $34.9 million result for 2012. This kind of growth is always worth keeping an eye on.

Want more news and updates? Add Shutterstock to your watchlist now.

2013 and beyond
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2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

The article Why Shutterstock Shares Soared originally appeared on Fool.com.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool has no position in any of the stocks mentioned. 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.

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