JupiterMedia Reports Q III/2005 Results; Rough Comparison To Annual Numbers Of Getty Images And Corbis

JupiterMedia (Nasdaq: JUPM), the parent company of JupiterImages, has published the results for the third quarter ended September 30, 2005 (Link 1 and Link 2 to the Q II/2005 Results of JupiterMedia).

In the past, JupiterImages had acquired seven major image agencies since June 2003: ArtToday, Comstock, Thinkstock/Thinkstock Footage, Hemera, Dynamic Graphics (Creatas, PictureQuest, Liquid Library), Goodshoot (acquired in May 2005 for approximately U.S. $9.8 million in cash) and PictureArts (Brand X Pictures, FoodPix, Botanica and Nonstock; purchase price $63.2 million in cash). Other brands at JupiterImages are Photos.com, Ablestock, PhotoObjects, Clipart and Animations.

Back in August this year, the company sold its Search Engine Strategies trade shows and its ClickZ.com Network of Web sites, including its well known SearchEngineWatch.com, for $43 million in cash. Alan Meckler noted earlier this year, "over a 25 month period we have spent close to $200 million making the above referenced acquisitions along with dozens of photo library collections."

Also in August 2005, Jupitermedia announced the launch of JupiterImages Unlimited (www.jiunlimited.com), a subscription service that allows unlimited access, at multiple resolutions, to over 330,000 of JupiterImages' highest quality wholly owned stock photos.

After getting into trouble with Getty Images, Jupitermedia announced in July 2005 an agreement with Corbis to distribute its Comstock Images and Thinkstock Images collections, starting in September 2005.

The last big acquisition had been BananaStock for $19M. Recent activities included the launch of the new image collection "(re)view", an archive of retro, rights-managed imagery with 4,000 selected images, and an exclusive worldwide partnership with the Photographic Youth Music Culture Archive (PYMCA), a rights-managed image company and "the world's premier archive of youth culture photography".

JupiterMedia states in detail that

• Revenues for the third quarter of 2005 were $34.4 million compared to revenues of $15.8 million for the same period last year, an increase of 118%.
• Net income for the third quarter was $60.4 million, compared to net income of $5.1 million, for the same period last year.
• The company expects to generate revenues of $124.1 - 125.1 million in 2005 and $163.0 - 165.0 million in 2006.

However, note that JupiterMedia operates businesses other than JupiterImages, like JupiterResearch and JupiterWeb. Their revenues are also included in the annual revenue estimation and the revenues of these three subsidiaries are listed separately under "Segment Information" in the press release. Link to the Income Statement, the Balance Sheet and the Cash Flow for JupiterMedia of the previous years.

With this in mind, a rough comparison:

• Getty Images -- the company announced their Q III/2005 Results two weeks ago -- expects to generate annual revenues in 2005 in the range of $735 million to $739 million.

• Corbis -- this is an estimation! -- is expected to be in the range of $220 million to $250 million for 2005. The company reported its 1H05 revenues and ex-FX organic growth at $111.5 million and 4.6%, respectively. Corbis is not a public company and does not need to disclose financial numbers. Rumours inside Corbis earlier this year were that the revenue target for 2005 might be $250 million.

The company acquired earlier eMotion (Link), image100 (Link), Zefa (various links) and the Roger Richman Agency (Link). The acquisition of Zefa added approximately $41 million to Corbis annual revenues that were around $170.4 million in 2004. Back in 2003, annual revenues were $140 million. Corbis claims to have about 12% of the global market, behind Getty Images, which has 30% (Link; these estimations are 11 months old and do not take into account all recent acquisitions and changes in the industry). Rumours are that Corbis might go public and join the IPO game in late 2006/early 2007.

In August 2005, Corbis said "Good-bye" to Jennifer Hurshell (Senior V. P. Commercial Image Licensing of Corbis) and Joe Barrett (SVP, Marketing) (PDN: "Corbis Restructures Again").

Related:

• August 02, 2005: JupiterMedia Focusses On JupiterImages, Sells Several Company Subsidiaries For $43 Million
• August 02, 2005: JupiterMedia Reports Q II/2005 Results

Update:

• Newratings.com: "Analysts at Piper Jaffray maintain their "outperform" rating on Jupitermedia Corporation"
• The StockAsylum had been able to listen to the Quarterly Conference Call. More details there:
  • "Alan Meckler told Wall Street analysts to expect a financially uneven first half of 2006 from his company"
  • "As for the new JupiterImages web site, Meckler admitted that, 'We're behind'."

Comments

[Jeff Greenberg]

Using midpoint of 2005 revenue estimates:

Getty $737M
Corbis $235M
JupiterMedia $124M

1. In the world, assuming the above are #1,2,3, who are #4,5,6,7,8,9,10?

2. Do any JupiterMedia brands offer unreleased editorial style images for editorial usage?