Good afternoon, and welcome to Getty Images' Third Quarter 2024 Earnings Conference Call. Today's call is being recorded. We have allocated one hour for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Steven 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 2024 Earnings Call. Joining me on today's call are Craig Peters, Chief Executive Officer; and Jenn Leyden, 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 Securities 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. Reconciliations 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 SEC. 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, Steven, and thank you to everyone for joining us on today's call. I will touch on our performance and progress at a high level before Jenn takes you through the more complete full third quarter financial results. I am pleased to report we delivered a strong performance in the third quarter with revenue of $240.5 million, representing a year-on-year increase of 4.9% on a reported basis and 5.4% on a currency-neutral basis. Adjusted EBITDA came in at $80.6 million for the quarter, up 0.4% on a reported basis and up 0.8% on a currency-neutral basis with a healthy EBITDA margin of 33.5%. These positive results reflect growth across each of Getty Images, iStock and Unsplash+. Our team continues to execute on the opportunity in front of us, and we were pleased to see improvements with our agency and production customers. In line with these improvements, we drove growth across all customer categories, agency, media and corporate, within the quarter. Our subscription business saw outstanding performance, growing subscribers by nearly 50% versus the comparable LTM period, powered by our unique and differentiated iStock and Unsplash+ e-commerce offerings across a breadth of geographic markets. With subscriptions now accounting for more than 50% of our revenue and many of these subscriptions including the full breadth of our offering across editorial and creative, we also saw higher download, and therefore, revenue allocations to editorial content during major events like the Paris Olympics and the run-up to the U.S. election, as customers consume more content from these events. While product-level revenue attribution can be impacted by this shift in consumption, it really showcases the unique strength of our Premium Access subscription offering. This product delivers real-time, broad-based, high-quality editorial coverage, in combination with our highly-differentiated, impactful pre-shot creative content. This is why we continue…

We continue to build positive momentum, delivering strong revenue growth and an adjusted EBITDA margin north of 33%. As Craig mentioned, all 3 of our industry categories, corporate, media and agency, are in growth. Getty Images, iStock and Unsplash+ are in growth. Our annual subscription business comprises north of half of our total revenue, with Q3 adding to 9 consecutive quarters of high-double digit growth on annual subscriber count, and our e-commerce business is thriving. Now, it would be easy to misinterpret this quarter's results as being only about the post-Hollywood strike compares or about a robust editorial event calendar. But the fact is, we have momentum across the business. And this quarter is a testament to the strength of both our creative and our editorial business and to our ability to execute with our differentiated, high-quality, powerful content with our steadfast customer focus at the very core of our financial performance. Let's dive into those results. Revenue was $240.5 million, growth of 4.9%, or 5.4% on a currency-neutral basis. Across our major geographies, on a currency-neutral basis, we saw year-on-year increases of 9.9% in the Americas, our largest region, 1.3% in APAC and with EMEA down less than 1%. Underpinning this strong revenue growth is continued resiliency and health across many of our KPIs. Our annual subscription revenue was 52.4% of total revenue. We added 96,000 active annual subscribers to reach 298,000, an increase of approximately 48% over the comparable LTM period. Subscriber growth was driven by our e-commerce business, iStock and Unsplash+. And we continue to execute on our geographic growth plans with approximately 18,000 brand-new customers from our targeted growth markets in EMEA, LATAM and APAC. Our annual subscription revenue retention rate has begun to stabilize, coming in at 92.2% in LTM Q3 '24, down from 94.5%…

[Operator Instructions] And your first question comes from Alex Lavigne from The Benchmark Company.

Hey, guys. Thanks for taking the questions. This is Alex on for Mark. Two quick ones for me. Just curious if you could provide an update on the GenAI front, whether or not clients broadly remain in the testing phase and how you see that adoption curve perhaps scaling in '25 alongside revenue. And then, separately, curious if you could provide an update just as you think about data licensing opportunities, whether or not the demand is there to take advantage of balanced against obvious competitive considerations as well. So, just curious on those 2.

Thanks, Alex. Appreciate the question. I'll take those. On the GenAI front, we continue to integrate the services out into our websites. We've launched, obviously, the stand-alone generative model, but we've also launched the capabilities to utilize AI in order to modify our existing pre-shot creative. Most recently, we just launched the ability to insert product-based imagery into our pre-shot imagery using AI. The take-up of these services is incremental to the business. I would say, it's still early in its overall take-up. We're in the single-digit percentages of customers that are adopting these capabilities. But it is one that we expect to continue to be additive to the business over 2025, and we think we'll start to see that become a more material contributor. It is interesting to note that where we're seeing adoption of the generative AI packages, we're seeing a good demand from new customers coming into the business that haven't been traditional customers of our brands or of our pre-shot offerings, which is nice. And we're seeing that as an opportunity to actually cross-sell to them the pre-shot offerings based off the merits of that -- those products stand-alone. So I'd say, still early days. Clearly, deals like the deal I mentioned on fine-tuning for the Venom movie promotion, those are interesting and more material into the business, but they aren't as recurring in nature. But I do believe there's going to be a lot of those activations out there and where our capabilities, not just in terms of the tool that we've created and offered, but our capabilities as a business and our deep relationships with those companies, are going to bring those to bear. So, I think we'll see more contribution from AI over 2025 as those types of activations get out and we…

At this time, we have no other questions. Ladies and gentlemen, this concludes the conference. You may now disconnect your lines.