Shutterstock (SSTK)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	62,548	122,468	91,037	104,736	89,523
Revenue	US$ in thousands	933,431	875,466	826,488	770,112	669,753
Pretax margin		6.70%	13.99%	11.01%	13.60%	13.37%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $62,548K ÷ $933,431K
= 6.70%

The pretax margin of Shutterstock has shown some fluctuations over the years based on the provided data. In December 2020, the pretax margin was 13.37%, which slightly increased to 13.60% by December 2021. However, there was a noticeable drop in the pretax margin to 11.01% by December 2022.

Subsequently, there was a significant recovery with the pretax margin reaching 13.99% by December 2023, indicating improved profitability. Nevertheless, there was a sharp decline in the pretax margin to 6.70% by December 2024, which might raise concerns about the company's potential challenges impacting its profitability.

Overall, fluctuations in the pretax margin highlight the importance of closely monitoring the company's cost management strategies and revenue generation to ensure sustained profitability in the future.