Getty Images Holdings, Inc.

Good afternoon and welcome to Getty Images' third quarter 2022 earnings conference call. Today's call is being recorded. We have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Stephen Kanner, VP of Investor Relations and Treasury at Getty Images. Thank you. You may begin.

Good afternoon and welcome to the Getty Images' third quarter 2022 earnings call. Joining me on today's call are Craig Peters, Chief Executive Officer, and Jen Layden, Chief Financial Officer. Before we begin, we would like to remind you that this call will include forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. These statements are subject to various risks uncertainties, and assumptions, which could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are highlighted in the forward-looking statements section of today's press release and in our filings with the SEC. Links to these filings and today's press release can be found on our investor relations website at investors.gettyimages.com. During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less capex, and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they represent our operational performance and underlying results of our business. Reconciliation of GAAP to non-GAAP measures, as well as the description, limitations, and rationale for using each measure can be found in our filings with the SCC. After our prepared remarks, we'll open the call for your questions. With that, I will hand the call over to our Chief Executive Officer, Craig Peters.

Thanks, Stephen, and thanks to everyone joining Getty Images' third quarter 2022 earnings call. I will address high-level business performance and progress before Jen takes you through the more detailed third quarter financial results. Third quarter reported revenues were $230.5 million. This is down 2.8% year-on-year on a reported basis, but up 2.8% on a currency neutral basis. Our adjusted EBITDA finished at $77.7 million, down 4.8% year-on-year, but up 2.3% on a currency neutral basis. As Jen will highlight in more detail, we continued to see positive operating performance. We are driving purchasing customer growth. We are growing our annual subscriptions. Our revenue retention for our annual subscribers continues to exceed 100%. Our customers are deriving more value from our offerings as our paid downloads continue to increase. More customers are downloading video as our video attachment rate continues to increase. From what we see, we believe we are taking market share based on the quality of our offerings. With that operational foundation as a backdrop, our third quarter results were impacted by a number of factors. First and foremost, the strength of the U.S. dollar. We are a global business with almost half of our revenues in local currencies. Like other global businesses, we are seeing the strength of the dollar impact our results. In our case, the impact is almost 6% on our top-line revenue growth. We also faced a challenging year-on-year compare in the third quarter due to revenue recognition on certain uncapped subscription deals and due to the shift in timing of the Tokyo Summer Olympics to Q3 2021 from 2020 due to the pandemic. These items combine to reduce reported revenue growth by 4.6%. Lastly, like other businesses, we are seeing some macroeconomic evidence. These are most pronounced in certain parts of Europe and within our agency segment. Again, our overall reporting metrics remain positive, and we continue to see opportunity as our products can be counter-cyclical across many end customers and use cases as we help them create more efficiently and enhance their offerings. And consistent with our history, we're being prudent in our expense and margin management. Within the quarter, we announced several multi-year agreements that speak to how our content enhances our customer offerings. These included Amazon embedding our award-winning imagery within Amazon's Alexa services and their Fire TV software stack. Microsoft, including our creative content within M365, their new editing service, and the renewal of our longstanding Canva integration. The foundation of Getty Images is in its content. In the quarter, we are extremely excited to renew our exclusive global distribution partnership with BBC Studios to represent their iconic and world-class quality footage. We were so pleased to be named the official house photography partner to the British Academy Film Awards, or BAFTAs, providing us with unique access to their prestigious events. And staying on the UK theme, we were extremely proud of our comprehensive coverage of the events surrounding the passing of Queen Elizabeth II. It really spoke to the strength of our archive, our unique access and coverage capabilities across news, sport, and entertainment, and our ability to seamlessly support our global customers as they covered the story from all angles. On this side of the Atlantic, Collegiate Sports continues to evolve, and we're excited to partner with the leading collegiate trademark licensing company, CLC, and leverage our unique capabilities to simplify commercial content licensing for brands and companies across more than 150 CLC-affiliated collegiate institutions. On the product front, in October, we launched Unsplash Plus to further service the content needs of Unsplash users. Unsplash Plus is an unlimited subscription providing access to unique release content in an ad-free environment and with expanded legal protections. We're excited by the potential of this product and its ability to reach and serve an expanded customer base. We also announced our partnership with Bria, to embed their state-of-the-art AI editing capabilities across our websites and subscriptions. This partnership aligns to our core value propositions of enabling our customers to create at higher levels with greater efficiency. Lastly, the topic of AI generative content has certainly been in the news. We announced that we would not accept this content on our platform at this time. As our partnership with Bria demonstrates, it is not because we are Luddites. While the customer demand is still very much unknown, we believe AI generative content capabilities are likely to have a place. Our current stance is driven by the very real, unsettled questions about the copyright for this imagery and whether the proper permissions were obtained with respect to the content, metadata, and the likenesses of individuals on which these models were trained. These questions present real risk for those using these services and the associated content. Yeti Images has always focused on eliminating risks for our customers. We look forward to working to help resolve some of these risks and exploring how ethical and responsible development and adoption of these capabilities can further unlock and enhance the power of our imagery and creative customers. And with that, I'll hand the call over to Jen, who will take you through the more detailed financials.