On 14-May-2012, ShutterStock Inc has filled its IPO to raise $115 million. IPO: Initial Public Offering, the first sale of stock by a company to the public on a stock market. Part of being a public company, it must file on quarterly basis
audited financial statements and need to provide guidance on what they expectâ€¦
BIG, BIG WARNING & CORRECTION
The standard practice, when filing financial statements with the SEC (Security Exchange Commission), is to provide audited financial statements. It is legal to provide unaudited financial statements provided it is disclosed, but it raises all kind of warnings. It makes people, including me, ask the questions: â€œWhy are the financial statements not audited? Can I trust this information?â€
SHUTTERSTOCK IMAGES LLC
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
Until now, ShutterStock Inc was a private company and did not have to reveal any of its financial information, of its value, of how it operates its business.
Part of its IPO filing, ShutterStock had to reveal the number of it's customers, its sales, its expensesâ€¦ and most important: the value of its average sale.