Getty Images Holdings Inc. (GETY) saw its shares plummet over 15% in after-hours trading on Monday following the release of its preliminary second-quarter results. The company reported a loss and revised its sales outlook for the year, failing to meet Wall Street expectations.
Disappointing Second-Quarter Results
Getty reported a loss of $4.3 million, or one penny a share, during the quarter. This is in stark contrast to the net income of $38.7 million, or 9 cents a share, it earned in the same period last year. The company's revenue also declined by 3.3%, reaching $225.7 million.
Falling Short of Wall Street Predictions
Analysts were expecting Getty to report earnings of 4 cents a share on sales of $236 million, according to FactSet consensus. However, the company's results fell short of these expectations.
Revised Sales Outlook
Getty adjusted its revenue forecast for 2023 to be between $920 million and $935 million. This marks a decrease from its previous guidance of between $936 million and $963 million.
Despite the disappointing results, Getty's Chief Executive Craig Peters remains optimistic about the company's future prospects. He stated, "The second quarter was a more challenging environment. The second quarter also saw us launch major search improvements through natural-language search, providing significantly improved returns against any customer query. We also continue to make progress in developing a truly differentiated generative AI service that addresses customers’ commercial needs and in introducing new AI modification capabilities within our sites."
In conclusion, Getty Images Holdings Inc.'s second-quarter results fell short of expectations, causing its shares to decline by over 15%. The company has revised its sales outlook for the year and remains focused on developing innovative solutions to meet customers' needs.