Shutterstock halts dividend to trim debt, fund growth
SSTK•Shares fall and management changes continue
Shares of the company fell more than 7% to $6.82 in extended trading. They have fallen about 61% so far this year.
The company also said that chief accounting officer Steven Ciardiello will step down from the role, effective August 28.
Last week, Shutterstock announced that Paul Hennessy had stepped down as CEO and board member. The company's finance chief Rik Powell took over as interim CEO while continuing as CFO during the transition.
Dividend suspended as capital priorities shift
Shutterstock said on Wednesday it is suspending future quarterly cash dividends, as the provider of stock images and other licensed visual content looks to redirect capital to strengthen its financial position and drive long-term shareholder value.
The company said the move is part of an ongoing review of its capital allocation priorities, as it aims to use the freed-up capital to reduce debt, minimize interest expenses and enhance its overall financial flexibility.
Shutterstock had around $274 million in total debt as of March 31, according to its regulatory filing.
Getty merger called off after UK regulatory condition
Recently, Getty Images called off its planned merger with Shutterstock due to the UK competition regulator's requirement to sell Shutterstock's editorial business as a condition for approval.
Getty, which competes with Reuters and the Associated Press in providing photos and videos for editorial use, had said last month its board also plans to engage a financial adviser to explore strategic financing options for the company.
