Getty Images Holdings, Inc. (NYSE:GETY) Q4 2023 Earnings Call Transcript

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Craig Peters: Yes. So, first let me just characterize how we are approaching AI. So we are licensing services to our end customers. Those services have been developed in partnership with companies like India [ph]. We have not pursued to any meaningful degree licensing of our data on a basis that that would generate revenue against that data side of things. So, what we believe long-term that AI is going to be a fundamental tool of creatives and we want to build the business around offering those services versus licensing our data out to third-parties to build services. We fundamentally believe our data will be critical in differentiating those services as we go to market. And so that’s the trade that we are making. It’s a long-term trade that we believe is the right one for the business in terms of again owning these services and the end customer relationships in delivering those services to our customers.

So, you will see — over time you will see those results in our subscriber counts as customers subscribe into generative AI services on an annualized basis. You will see that show up into our paid downloads section as they generate imagery from those services and then download that imagery and use it within their marketing and sales and collateral and other parts of their marketing stack. So, yes, you will see those start to accrue through the metrics, but it will take some time for those to have a meaningful. This goes back to the comment, I think Jake — or a question Jay asked. It’s going to take a while for those to be meaningful relative to 95 million paid annual downloads.

Tim Nollen: Right. Okay. That makes sense. Thanks. I’ll ask a separate question which is I’m looking your subscription as a percentage of revenue of 54% in the quarter, which was up quite a bit from a year ago, but it was down a little bit from Q3. And I wonder if that is just a normal Q4, kind of, a seasonal trend, it might be some more kind of seasonal related Q4 one-off types of sales that might have actually brought that number down sequentially?

Craig Peters: Yes, we saw a little bit of — in Q4, we saw a little bit stronger close to the year. A lot of that was through à la carte purchases in the business. Again Jen kind of mentioned the rebound in the agency in Q4, a slight rebound. They tend to buy on an à la carte basis. We also saw some of the strike impacts ameliorate on our business, most notably within our paid assignment business, which is not done within subscriptions. So, those are some of the things that Q4 relative to Q3 took that percentage down a bit? I would say all those were good things though.

Tim Nollen: Okay. Thank you.

Operator: Thank you. And we have reached the end of the question-and-answer session and I’ll now turn it — this also concludes today’s conference and you may disconnect your lines at this time.

Craig Peters: Thank you.

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