Shutterstock Inc. (NYSE: SSTK) reported third-quarter earnings that exceeded expectations, driven by strong growth in its Data, Distribution, and Services division. Shares gained more than 2% in intra-day trading on Wednesday.

Adjusted earnings per share were $0.99, above analyst estimates of $0.63. Revenue increased 4% year over year to $260.1 million, surpassing forecasts of $255.6 million.

The company's Content segment fell 5% year over year to $194.4 million, but the Data, Distribution, and Services business surged 40% to $65.7 million, representing 25% of total revenue. Adjusted EBITDA rose 13% to $79.4 million, while the margin expanded to 30.5% from 27.9% a year ago.

Free cash flow climbed sharply to $75.2 million from $45.7 million in the same period last year. The company also maintained adjusted EBITDA margins above 30% for a second straight quarter.

Shutterstock's subscriber base stood at 1.06 million at quarter-end, down slightly from 1.105 million a year earlier. The company said it continued integrating AI image, video, and audio generation tools into its unlimited content offerings to strengthen its creative ecosystem.