Getty Images (GETY) 12 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to Getty Images Second Quarter 2024 Earnings Conference Call. Today's call is being recorded.

We have allocated 1 hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Steven Kanner, Vice President of Investor Relations and Treasury at Getty Images. Thank you.

begin. may You

welcome Earnings and Getty Second Images Good to XXXX Call. Quarter afternoon, the

on Craig Joining Officer; call today's me are Leyden, Financial and Peters, Chief Officer. Jen Executive Chief

to that within the and various of we to would of Before highlighted Reform Securities risks, differ uncertainties meaning will are which XXXX. the materially we these SEC. actual statements could assumptions remind of risks, are uncertainties These cause the begin, statements statements. you and forward-looking filings section include and statements this results assumptions release Litigation in in our forward-looking like These Act Private press call to with from subject Friday's our the

Relations website investors.gettyimages.com. these filings at Friday's to can and Investor be release Linked our press found on

today, and rationale we and measures certain free During of filings SEC. our well some adjusted limitations EBITDA represent we description, information, including margin, in our operational be measure as reference non-GAAP adjusted the found and financial less measures as CapEx underlying believe will use results to can the financial non-GAAP in also EBITDA, We non-GAAP GAAP our our EBITDA adjusted using as we of discussions flow. our cash each Reconciliations for with business. of performance call

remarks, our Executive Officer, Chief to After your hand to over questions. we'll call prepared open the will Craig our call With that, the I Peters.

quarter joining Quarter you Getty and takes high and Second full before Call. a for Steven, will to the our Images level everyone through results. touch performance at Thanks, second progress thank you I Earnings on financial Jen

report, for currency-neutral XX%. EBITDA neutral, year-on-year Adjusted and at represent with of in and reported a came continuing X.X% a basis basis. million but quarter, healthy margin X.X% $XX.X increase of currency as $XXX.X EBITDA to million, basis we expected, X.X% the am down to growth on quarter in a a a returned revenue on reported the of on representing X.X% second I to pleased

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

However, Images, downloads, to content. of our see our Getty consumption we by in and exclusive paid and centered and achieved utilization growth across creative our on Unsplash each offerings we growth brands, with of reflected continue strong iStock editorial

be call It earnings in would the start by speak I images not to of did our an AI CEO embrace what not if Getty really want us apart. grounding sets to but

deep relationships. and our and expertise Our exclusive our our customer contributors, coverage embedded staff partnerships our comprehensive deep and search best-in-class our unique and access, across archive,

extremely was Committee is observe Summer event spend in week Olympics. the the for XX of to an than been more International and Olympic last agency years. I official fortunate Paris how demonstrated the uniqueness We've photographic like this at

over the water. All edited we images of games, delivered speed. than across for every individuals the the air course angle, city experienced moment from this than of including content captured below both Our captured the action told, X We more customers and from we XXX and shot than in team celebrities with sports women's performing attendance. to men's captured and the and and grandeur competitions. and host dignitaries the more in of We our the unmatched XX more million every the

in and allowed deeper athletes its Paris and archive Paris, Our the about the history. Games customers to tell place tie to stories rightful

Gamble, best-in-class InBev Visa, and and Committee International the partners to official concert climate performances, photographic where Formula global such this also and events, elections service we're Our of as Toyota, Samsung latest a and Electronics One, Universal few. its the Comcast, Coca-Cola, Olympic And was Procter world we the also ground, the to events major & AB Paris, commercial including did family all NBC delivering and team covering name premieres sponsors, their while movie conflicts, sporting on partner. of beyond

the announced I'm as If deepen archive we in Motorsport the added and new Images within partners footprint to our remember, to Racing to XXX,XXX support commercial April, Martin. worked pleased of And closely McLaren more and to such our than sport. Aston acquisition images you report we

I of am Images sets the proud level of of I and of customers. to professionalism of the durable what and our our accomplished. displayed. conveyed what team scale of we truly am reminded scope value proud Getty the I'm apart

NVIDIA safe, services with updated speeds detail our commercially tools higher-quality the of We continue and resolution to high XK lightning-fast innovate customers. brings and On AI partnership bring visuals, we technology AI model our to launched services in front, to commercially high-quality, improved for an that true generative generative outputs. safe including

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

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

financials. on half I'm XXXX. it over now excited you will turn remarks my detailed by I of to take over our to through the Jen momentum more I second the will that build to end saying

is our As business consecutive we to have of Hollywood to With quarters impact. seen to decline QX. Craig the growth in after tailwind, mentioned, top back to historically returned business turning line our editorial strike due headwinds growth X

of healthy. XX.X% up total expand to now revenue, our continue be metrics subscription performance business and Our key continues to to

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

begin some our our from Let's reported June reflects is the KPIs, period XX-month still on purchasing la carte and nearly lower to the an LTM down and which continued period. la the entirely pressured XXXX. XXXX, of The which shift customers volumes to comparable ended which committed on our consumes of basis transactions comparison annual period decrease a a with carte subscriptions business, June XX, by LTM a both Total were agency basis. are trailing XXX,XXX, related XX, highlighting XXX,XXX in LTM ended

Importantly, to continue higher as we into we solutions. value of lifetime see the committed more customer benefit shift

purchasing XX% XXXX per to the LTM XX.X% over X,XXX With period. customer corresponding the XXX,XXX, growing comparable X,XXX representing We added the XXX,XXX growth total reach in to annual from LTM subscribers of active revenue annual period.

XX% fueled has the subscription. by annual e-commerce grown north last our of and metric our This our in offerings, This iStock Unsplash+ growth of each was including X quarters.

Out With the subscribers, move were growth XX% brand majority the customers. Images. of purchasing this first-time over coming of customers' to annual XXX,XXX from Getty

growth to XX,XXX markets new In expand over our targeted from with reach our across subscribers addition, EMEA. and geographic in in continue LatAm, APAC we

The XX% smaller revenue to lower impacted same was XX.X% QX subscriber metric over but quarters reported 'XX in period the LTM retention, that period. rate the comparable driven LTM the year-on-year e-commerce retention the steady compared for past count subscriber subscribers. this XX.X% by and held LTM growth was factors decline Our to annual relatively several have include our

and incremental a a onetime reduction media impacted strike revenue the some customers. period la in spend from related Hollywood decline certain corporate from to our of On production carte and project customers in subscriber prior broadcast

to stabilizing, appear our remain items subscription the On very revenue of high-quality, download renewal point averaging [indiscernible] a differentiated XX% be demonstrating volume continued compelling range. up sequential data impact some and safe was to million demand commercially content. XX basis, the ever healthy the from in for Paid in these does X.X% rates

XX.X% period, growth. of Our the XXXX another in QX from LTM video to rose attachment quarter XX.X% year-on-year rate

basis. X.X% on which $XXX.X in certain a XXX currency-neutral basis the of results Turning these to by performance. an year-on-year increase million, impacts was recognition, our revenue of X.X% Revenue growth financial Included timing reduced and points. of are

XX.X% from primarily seventh consecutive QX XX% total, with comprising revenue subscription This quarter subscription north X.X% our and revenue. reported across revenue by subscription in revenue increased XX.X% is Annual of our was a XXXX. neutral, on up subscription revenue, driven basis total In currency of e-commerce of offering. our total X.X% growth

currency-neutral X.X% and year-on-year million, revenue a on X.X% was Editorial basis. increase an of $XX.X

performance are We our quarter of first the with since impacting rebound strikes editorial in business in Hollywood delivering strong QX of XXXX. began growth its financial the seeing a

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

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

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

the the currency business, Created revenue decline a was to the Creative agencies. was to on smaller which X.X% performance year-on-year neutral due and independent in basis. digit, down X.X% primarily pressures continues $XXX.X down million, at reflect agency double

earlier, impacting of side mentioned which on are results. things, seeing in we As also lag production the a we is creative recovery

in X.X% subscription year-on-year at basis. Created currency-neutral be continues annual X.X% and growth a to revenue on

and subscription, currency-neutral which our grew to marking basis, the continued quarter efforts double-digit XXth acquisition reported XX% iStock on of customer Our growth. in a drive consecutive both annual growth

In delivered for quarter paid growth. with another the triple-digit addition, Unsplash, subscription, our Unsplash+ subscription first

e-commerce a with These revenue As represent Craig mentioned, iStock and Unsplash basis grow. XX% sitting combined subscription. continue sites of to in sites roughly XX% our over annual on largely

in X.X% and Across basis, a our of Americas, in currency-neutral increase saw APAC. X.X% in major X% EMEA geographies, year-on-year we on the

fantastic geographic of to at a revenue consistently in Revenue regions our QX remained in from percentage our were of XX.X% of XX.X% of All as revenue in cost QX, growth, up strong less major XXXX. see.

expense prior from $XXX.X million SG&A was million, Total year. down the in $XXX.X

the XX% percentage expense rate rate by from of the The revenue lower and was was stock-based expense in compensation in a revenue, XX.X%, down driven primarily last our As quarter. year. increase lower

Imaging quarter stock-based our of operating to primarily spend of of addition million in in in staffing Motorsport revenue or revenue and QX across Excluding higher inclusion compensation, million the XX.X% and business, costs. from in increase up commissions rose $XX.X reflects delivery to SG&A reinvestment in the XXXX. marketing, XX.X% revenue tied to $XX.X the The or planned

quarter savings allocation. of in This as balance net elevated some annualized resource the costs by offset severance These we to optimize higher year be continue forward. costs and included should going also the savings our

down revenue. up in was $X.X QX was EBITDA million was million X.X% $XX.X CapEx of a down million, of from XXXX. compared $XX.X largely The year-on-year was well Adjusted the X.X% expected year margin EBITDA X.X% to currency-neutral as QX, year. revenue XX%, the CapEx of on X.X% to basis. of our in prior and within within Adjusted and XX.X% timing percentage X% is year-over-year. year-over-year in range to increase a tied X% period

$XX.X million net of the taxes interest Free free cash changes reflects and second in $XX.X paid cash XXXX. of quarter. was is related million of $XX.X receivables of increase million, in the stated QX million in The working from and flow cash flow Free to cash $XX payables. capital up flow tax expense of timing

cash, We million second sheet debt $X.X $XX.X in This balance finished the XXXX. quarter $XX.X XXXX. and in quarter includes up XXXX from from the with million million QX $XXX.X of of QX million voluntary repayments down

an had of total X.XX%, with of applicable XXXX, June applicable senior term converted X.XX% of which loan, $XXX as an using rates XX, rate notes, $X.XX June X.XX%. of million USD million XX, exchange outstanding includes of with we $XXX.X billion, rate interest XXX.X term of million As loans debt

We undrawn. million remains that a also $XXX have revolver

our QX remain sheet, year-end X.Xx was both continue will at we and explore our flow end QX. utilizing further of We cash committed to to leverage the the refinance opportunities balance net to proactively XXXX. unchanged Our deleverage to and from debt.

exchange the cash estimated debt as rates and June to our XX, on rates interest expense of Based interest XXXX be our applicable foreign million. is on balance $XXX

remains environment, changes outlined within course, our which more filings. the interest subject to in rate we actual in our expense annual SEC Of interest detail

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

of outlook reflects that assumption higher-than-expected our The the expenses currency update health approximately $X as include borrowing the Despite or year-on-year remains a to XX%. impacts, X.X% adjusted X.X% rates note year then the full are year. remains growth of to pressure the consideration onetime remainder for current we X% X.X%. On decrease assuming to from those FX of guidance which adjusted million a remain at estimated an expected We with currency-neutral rates to and margins EBITDA million updating the and this impact be X.X% stronger current representing X.X% hold represents range of dollar to for U.S. some in million, EBITDA insurance X.XX a year-on-year impact with of are that adjusted XXXX, $XXX costs. Please which million our efficiency nature outlook integration-related impact our $XXX neutral. estimated to FX of now into employee unchanged August our EBITDA X%, reported revenue turning $XXX unplanned $X north basis, million, consistent and prior on FX to with X.XX these strong, GBP million guidance. X.X% our at the euro operating $XXX Taking XXXX. of to of the of X, growth to more translates Now expect to to currency

With maintaining our fiscal discipline for long been optimistic call return has positive remain for we please growth With open that, the building, the in embedded our full-year momentum that while questions. operator, to business.

[Operator from We'll take Instructions]. JPMorgan. with our first Cory Carpenter question

Jen. one Craig, Craig, you just for Maybe and for you, on AI. for generative one

you half effect in made you're seeing? early, agency of about monetization this consumer of just -- the latest touch making assumptions Jen, you, know around could quarter, could the then you're And year lot second over and on drivers particular potential the also, the progress. you the reacceleration channel? the for the time. And talk more in I on thoughts You a of a still thought rolled out engagement it's your lot but Hoping

Thanks question, Cory. for the

curve, the On positive the each And continue customers and services front, every feedback our across segment the quality due really business. to GenAI really the see from model, of we that's to of safe It's the these can sector. and how but adoption early providing, commercial the we're do. though in nature the days still within also commercially that what built truly of are these

not the business. material it's to so And

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

acceleration as noted into guidance on half. just And Yes. second and we the

things top that So there's lag as a recovery. line first production side seeing still few for mentioned, performance. through One, certainly things QX, there the on we continued half, we're some of

bit So improvement of continuing a there.

slower but declines recovery off, those anticipated. seen have taper We start to than we largely still a

to side a bit seeing. things, of material we're Agency double-digit So pickup but expecting declines again, not of any we're there, necessarily there. changes those slow gradual that improvement

piece big talking a some this, other side The there's which is One, [indiscernible] we've spent obviously, few we things our there. of business, before time move as about of editorial the year. QX impact year, of second year-on-year in half favorable the really comp with of us largely second the impact the into got we've starting to strike and a the last half

our So editorial stacked there. And of got then year. comp half the favorable built-in event second the in largely we've a calendar

of us. and the the like events big be to for U.S. a those size Olympics pretty political up healthy been event that's shaping So cycle, both

top are that drivers second half. those the primary the performance line So in of

Ronald Our next question Josey comes with from Citi.

side, double the to understand to revenue wanted Jen the and the XX% here. a specifically, thing bit for and a I on Craig down past about clearly want little I X more good over that's drivers. quarters, understand and of subscription

subscribers. from now iStock, that So you of of XX% Unsplash XX% revenue, mentioned

call provide did in more iStock us iStock it, also side, from and rate, that and looks here? on subscription tell Unsplash. And it XQ active to from this iStock Just right and assume Should in decel doing the has annual like subscription is we about the rate the then growth? subscription steady. perspective. an Unsplash relatively decel been Can forward retention what from to strength drive a then here from back insights -- a retention any And the from you're rate you growth subscriber and revenue or, benefit going

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

values. a across more the drive terms to iStock and higher more kind deliver in higher use over in those It lifetime offerings embedded of It in through we've last X think our subscriptions of years annual and things, their the day-to-day of we customers results really In concerted results And ARPU. ultimately to and been side become we value products. Unsplash those effort workflows. more making

it's So we customer. think a good for thing the

I had brings there It an been fully a introduced it's before. a those higher Unsplash+ sat in Images that new think content. that, it customers. value released thing end And Getty good we subscription, we've to for indemnification. obviously, content on there that overall. The not Unsplash, It way paid is brings brings doing

test providing of SKUs increasing free new the it's -- that been positive. have those to a subscription net sorry, mentioned freelancers on iStock dealing trials in mentioned. slightly lower their the they of Unsplash we're lower Jen we're with those thing, calls, across churn previous per subscriptions like the universe. On to percentage within and to behind retention been ultimately, degrees the that it's that's we've those of And small we and traffic and against use net been growth by the obviously coming business, But of in trial. product within the try and [indiscernible] There that to it's to ] [ optimize led subscription products. one as that. continue platforms side more good going terms driver and think largely businesses that higher people do value cycle do and X out So to geo That getting has lower-end with introduced retention. Obviously, that's things. out revenues source. additional are XX to iStock, say annual offering in largely largely ultimately, through month. it's product a been overall a addition a downloads a free And annual is great of platform, we've of as of But paid I'd positive. We're the been the

And But positive come again, I which so impacting you rate of still it's referenced, has that the kind a that's retention bit. that down business. to a trade think been net

go-forward that again, to we'll optimize. think the that And revenue we of achieving learn should across But subscription rates yes, probably And had and go of range. the of ultimately in growth those big anything subscribers kind across Unsplash back you test each in to And maintain driver growth XX% see think was I annual to to I for expect on so kind component Jen, continue I Getty of across quarter. a retention and and growth iStock Images, that growth basis, a brands. to add? across

Yes.

I think the sort if you go XX% is specifically, I'd XX%, retention rate is, Ron, forward. asked the add that thing only of I think

start drivers we're think their of low is from little to bit Hollywood as I And there. hover these touched it back on that rate probably in mid-XXs and that outside through seeing we've contraction retention other spend this of when ramp somewhere subscription, subscribers here, we And much strike then over a seeing cycle one of of impact. of one is the the up are year, time. will a very things around to we that

to back if go to in number strike, So was this mid-XXs. year, low you pre-Hollywood those last

of Again, start full come from So subscription but that over see on start a starting that's that la I to this think a see up. level spend drivers the of back of we're that we'll carte pick recovery back we're to far bit. outside one to time, slowly consumption that that,

would Would be -- the -- strike now have recovery a one lifting, still you on just and helpful heavy writer talking the both. and or on think speak, the thoughts expected Or time? quick Super you say and I helpful. so we're it's would we're matter recovering. to beyond recovery follow-up still we you of faster slower? Any be have to there Could

product where we're beyond to see into -- And that will it's just over lines. think continue the in one second gradual a of our I that reramp the we'll XXXX, time. half all impact lifting, that heavy Ron, but so Yes, hopeful we're over we're and

So just plus editorial it's an creative. item. It's an not editorial

In production consumed fact, is a creative. that content lot of the into is

XXXX, relationships -- side expect should been we've by be kind we'll back it's things yes, of and just the media but community over situation and So time. embedded where in that again, one it's yes, that all customer expectations bit to where of those with we are a them. that. Clearly, gradual where a sector, heavy we that's we're by are that reports, be we should And conversations all past tight see but more probably following within were in lifting gradual a space, and return got deep the

expectation in think So that and feedback. communication solid good, is grounded customer one that's I

production just of of there, at of specifically numbers. saw double add last heart just when digits. industry impact in we the we we I'd to If strike side some were year, give that things, look that kind down

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

So down single-digit if those decline. from you to we've look at double-digit gone numbers, declines

noted, Craig recovery as But bit improvement. some longer. seeing continue to a on we expect So that

comes next with Zgutowicz Benchmark. question from Our Mark

A one me premium -- well, couple on for access.

also that I today, what quarter-over-quarter how missed second curious performed the your the the the then think base curious segment. quarter it, and but just Basically, curious, have a expectations drove for within XX% roughly I big e-com other in growth the in growth might was half? And it's I so product? Just

our is premium archive content It Mark. of premium subscription can creative It's play. and subscription a PA, and largest our stills, Thanks, our really includes On lot into and across offering. video access offering. our editorial primary bring

side of new just continue performance of that and product, the customers, take-up in the see things. retention not of strong importantly, but more We to really things on utilization side in

expect the strong licensing. side things that's its really some are that and that's It of respect of off the of it's about if a differentiation, at given of moderation kind onetime which our that continue. With the subscriptions in data and bringing in their is fundamentally, bring we model. our really think in through performance market iStock share any it's respect seen we're data haven't kind download and durable are, offering licenses we to we and -- embedded going unique taking paid one our it customer a that view we're to licensing music content a to much it's them couple offering partnership based deep And to manager really to of we building underpins on our iStock small the higher revenue that relative metrics, content in platforms, consistent more believe from that of deals level. of within we point it's how Unsplash. With some just offering through to any consuming and content point staying licensing And offering, includes or customers. We other, resonates And we -- and metrics, burn about market, to continue other trying customer to those that e-commerce and that did a the perpetual that And forward really we we do at but metrics Unsplash, spaces competition. content data we data really growth. with also away positioning These those into media expect licensing and believe that on are strength or to fundamentally utilization. years. with that see performance nonexclusive what that and in again, relative be platforms last a So one the those differentiated sources product, really the workflows our them content

framework was base small in off of that's with So very some slight there data licensing consistent that historically. a QX

quarter. So add Jen, that's anything to that what in drives the there?

of individually I are But in think, music as prints again, is or members grouping contributors are are these small Craig, growth. both those There other No, business some you smaller on also other there fairly touched it. business, immaterial that overall.

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

Yes. the be But makes and Thanks, bit which model stressed, ] [ within It should some on in recurring kind that that that kind we've Mark. these the data a recognition a is bit little accounting in of always nature. partnership are revenue of there's of XXX kind licensing. of of pull -- more forward with of nature, a more

we're So see due build level for of But leadership lumpiness some as to time-based relative just business as aspects trying durable a streams part, we're different most linear I the recognition how recurring would our and of revenue kind a recognition. over is to That this. focus the entering and to time. team

will the but we're So calendar terms of vary elections ]. probably that and Olympics as for bit. And a little recognized and time, in over how that of something euros the a as you bit believe little recurring lumpiness. we revenue and But be ultimately, building relationships can editorial think might the about they're [ it

how election point the that, conservative given of the commercial to driven XXXX come in driven now cycle Paris, on there's XX side of political flowing a out. We the up the of differential is how to closer might And year [ by that. side slightly presidential, and XX on And a 'XX. can of to than having U.S. partners of of in you, by this cycle, so a view again, probably We expected that lot X-year versus ] things. be million with plays previous the political contribution million I believe out that million out [ we the is shaping be We'll We're largely X lot expected around tell to million of that Paris largely to see in XX lower historic -- and a things. be activity a ] that our sat

quality We're just content So access hopeful offering. the it team, that the of initial about And the ] million speaks in can Getty relative of the around to our the premium [ our team how that, XX I the innovation breadth, there content it said we're range. that might in Paris, coverage within. But covering certainly the X that to, you that again, guidance together quality, out depth, games. in seeing consumption that be pull speed, to think some think subscription upside Images of team, what we million the

new the them really new reacted producing were I content we just types fantastic think were some to and of content and customers well.

that creative a add to specifically both thing side, and incremental on political lift the one will there, for editorial. be that I'd And revenue us,

political So look skews even terms side creative sometimes of it's back hits how it creative the it at historically, editorial, higher on spend, XX-XX things. in when we of roughly

that political impacts our editorial as side about talk while impact, that we of creative So revenue well. in business, the the it

question next Nollen with Macquarie. Tim from comes Our

to had come have The like to please. of back agencies agencies topic, kind the mixed-ish I'd themselves results.

the into side, they've cover Just you're I'm the the you the second maybe half stable I of on smaller overall. agencies. we focused mean going been what gives public optimism more agencies, year? the think I on wondering what to But larger talking

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

Thanks, Tim.

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

So in it's that referenced we're not trends the is agencies, and agencies. through led her terms in out a anything That's network signs of in large change that kind seeing early it of normalization. that of heroic we're as the we of expecting seeing remarks. are But the one Jen

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

So of to Images. there But seeing in cases, seeing shift that we're project seeing many are in And And in experimentation. a that's that end shift any major We're terms something needs. with not Getty in see there. subscription. partnership really we AI we certainly not into is

will well and as your you call. this session as conference time. at all Q&A Thank any our And participation, our disconnect may conclude for you

Thank you.