Key Takeaways The Technology Services industry ranks in the top 40% and is expected to outperform in the coming months.Digital trends like AI, cloud, and blockchain are fueling rising demand for enterprise tech solutions.COHR, VMEO, SKIL, VNT and SPXC boast strong earnings outlooks and business potential. The Zacks-defined Technology Services industry currently ranks within the top 40% of Zacks Ranked Industries. Consequently, we expect it to outperform the market over the next three to six months. The tech ...

Vimeo, Inc. (VMEO) reported $104.65 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 0.3%. EPS of $0.04 for the same period compares to $0.06 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $105.76 million, representing a surprise of -1.05%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Vimeo (VMEO) Q2 2025 Earnings Call August 04, 2025 05:00 PM ET Speaker0Hello, and thank you for joining Vimeo's Q2 twenty twenty five earnings live Q and A. Before we begin, a few comments. First, this session will be recorded and available on the Vimeo Investor Relations site later today. Second, we will discuss Vimeo's outlook and future performance. These forward looking statements typically may be preceded by words such as we expect, we believe, we anticipate, or other such statements.These forward look ...

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I) [Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Vimeo reported **$207.7 million** in revenue and **$2.4 million** in net earnings for the six months ended June 30, 2025, reflecting a slight revenue decrease and a significant earnings drop primarily due to increased operating expenses [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $302,956 | $325,276 | | Total current assets | $350,364 | $374,656 | | Goodwill | $245,406 | $245,406 | | **Total Assets** | **$620,638** | **$642,821** | | **Liabilities & Equity** | | | | Deferred revenue | $170,724 | $161,923 | | Total current liabilities | $219,986 | $222,423 | | **Total Shareholders' Equity** | **$391,092** | **$408,797** | [Consolidated Statement of Operations](index=6&type=section&id=Consolidated%20Statement%20of%20Operations) Statement of Operations Summary (Unaudited) | Metric (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $104,650 | $104,376 | $207,684 | $209,286 | | Gross Profit | $81,503 | $81,698 | $160,483 | $163,165 | | Operating Income (Loss) | $3,724 | $7,461 | $(2,368) | $10,050 | | Net Earnings | $6,285 | $10,121 | $2,369 | $16,194 | | Diluted Earnings Per Share | $0.04 | $0.06 | $0.01 | $0.09 | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Cash Flow Summary (Unaudited) | Cash Flow Activity (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,274 | $25,288 | | Net cash used in investing activities | $(4,563) | $(160) | | Net cash used in financing activities | $(35,935) | $(15,408) | | Net (decrease) increase in cash | $(22,309) | $9,383 | [Note 2—Revenue](index=11&type=section&id=Note%202%E2%80%94Revenue) - Vimeo's revenue is primarily derived from fixed SaaS subscription fees, recognized on a straight-line basis over the contract term, which is most commonly annual[42](index=42&type=chunk)[43](index=43&type=chunk) Disaggregated Revenue (In thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Self-Serve | $57,555 | $58,374 | $113,667 | $117,481 | | Vimeo Enterprise | $24,997 | $20,051 | $49,421 | $38,518 | | OTT | $12,268 | $12,641 | $24,511 | $25,700 | | Add-Ons | $8,197 | $10,190 | $16,779 | $20,994 | | Other | $1,633 | $3,120 | $3,306 | $6,593 | | **Total** | **$104,650** | **$104,376** | **$207,684** | **$209,286** | - The United States is the only country constituting over **10%** of total revenue. For the six months ended June 30, 2025, U.S. revenue was **$112.8 million**, while all other countries contributed **$94.9 million**[46](index=46&type=chunk) [Note 5—Shareholders' Equity](index=14&type=section&id=Note%205%E2%80%94Shareholders%27%20Equity) - The company completed its **$50 million** stock repurchase program authorized in February 2022 during Q1 2025, repurchasing **3.9 million** shares for **$23.5 million**[66](index=66&type=chunk) - On April 29, 2025, the Board authorized a new stock repurchase program for up to **$50 million** of the company's common stock with no expiration date[67](index=67&type=chunk) [Note 9—Contingencies](index=18&type=section&id=Note%209%E2%80%94Contingencies) - On June 26, 2024, Vimeo entered into a settlement agreement to resolve all pending RTI copyright litigation in Italy and the U.S. The payment did not have a material impact on Vimeo's financial condition[93](index=93&type=chunk) - The EMI/Capitol Records copyright infringement litigation received a favorable judgment from the Second Circuit on January 13, 2025, which affirmed a prior judgment. Plaintiffs filed for a panel rehearing in February 2025[85](index=85&type=chunk) - Vimeo is also involved in ongoing copyright litigation with Sony, Warner, and Universal in the Court of Milan, with a claims hearing scheduled for October 8, 2025[94](index=94&type=chunk) [Note 11—Restructuring](index=21&type=section&id=Note%2011%E2%80%94Restructuring) - The company recognized restructuring costs of **$1.5 million** in Q2 2025 and **$3.0 million** in H1 2025 related to departmental reorganizations, compared to **$2.2 million** in H1 2024 from a reduction-in-force[98](index=98&type=chunk) Restructuring Costs by Function (In thousands) | Expense Category | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Cost of revenue | $46 | $90 | | Research and development | $476 | $705 | | Sales and marketing | $278 | $1,026 | | General and administrative | $729 | $1,224 | | **Total** | **$1,529** | **$3,045** | [Note 12—Segment Information](index=22&type=section&id=Note%2012%E2%80%94Segment%20Information) - Vimeo operates as a single operating segment, with the Chief Executive Officer assessing performance based on consolidated 'Net earnings'[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20for%20Vimeo) Revenue remained flat in Q2 2025 at **$104.7 million**, with Vimeo Enterprise growth offset by declines in other categories, leading to a **50%** decrease in operating income to **$3.7 million** and a **33%** decrease in Adjusted EBITDA to **$10.9 million** [Operating Metrics and Key Terms](index=23&type=section&id=Operating%20Metrics%20and%20Key%20Terms) Key Operating Metrics (Q2 2025 vs Q2 2024) | Category | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | | **Self-Serve** | Subscribers (k) | 1,156.5 | 1,298.1 | (11)% | | | ARPU ($) | 197 | 178 | 11% | | | Bookings ($k) | 64,972 | 58,644 | 11% | | **Vimeo Enterprise** | Subscribers (k) | 4.0 | 3.7 | 10% | | | ARPU ($) | 24,705 | 21,977 | 12% | | | Bookings ($k) | 25,595 | 23,433 | 9% | | **OTT** | Subscribers (k) | 3.1 | 2.9 | 6% | | | ARPU ($) | 15,720 | 17,107 | (8)% | | | Bookings ($k) | 7,364 | 7,492 | (2)% | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) - In Q2 2025, total revenue increased by a marginal **$0.3 million**, with Vimeo Enterprise revenue growing by **$4.9 million (25%)** due to increases in both Average Subscribers (**11%**) and ARPU (**12%**), largely offset by declines in Add-Ons, Other, and Self-Serve categories[114](index=114&type=chunk)[115](index=115&type=chunk) - Operating expenses for Q2 2025 increased by **$3.5 million (5%)** year-over-year, primarily due to a **$2.8 million** increase in R&D expense and a **$2.6 million** increase in sales and marketing expense[124](index=124&type=chunk)[125](index=125&type=chunk) - Q2 2025 operating income decreased by **$3.7 million (50%)** to **$3.7 million**, resulting from higher operating expenses[130](index=130&type=chunk) Adjusted EBITDA Performance (In thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $10,935 | $16,343 | (33)% | | As a % of revenue | 10% | 16% | | [Non-GAAP Financial Measures](index=31&type=section&id=PRINCIPLES%20OF%20FINANCIAL%20REPORTING) - Vimeo uses Adjusted EBITDA as a non-GAAP measure to analyze financial results, defined as operating income excluding stock-based compensation, depreciation, amortization, changes in fair value of contingent consideration, and restructuring costs[138](index=138&type=chunk)[139](index=139&type=chunk) Reconciliation of Net Earnings to Adjusted EBITDA (In thousands) | Line Item | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net earnings | $6,285 | $2,369 | | Adjustments | | | | Income tax (benefit) provision | $(48) | $357 | | Other income, net | $(2,513) | $(5,094) | | **Operating income (loss)** | **$3,724** | **$(2,368)** | | Stock-based compensation expense | $5,146 | $14,134 | | Depreciation | $47 | $91 | | Amortization of intangibles | $489 | $836 | | Restructuring costs | $1,529 | $3,045 | | **Adjusted EBITDA** | **$10,935** | **$15,738** | [Financial Position, Liquidity and Capital Resources](index=33&type=section&id=VIMEO%27S%20FINANCIAL%20POSITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - As of June 30, 2025, Vimeo held **$303.0 million** in cash and cash equivalents and had no debt[156](index=156&type=chunk) - Net cash from operating activities for H1 2025 was **$17.3 million**, a decrease from **$25.3 million** in H1 2024, mainly due to the timing of bonus payments[149](index=149&type=chunk)[150](index=150&type=chunk) - Net cash used in financing activities in H1 2025 was **$35.9 million**, primarily consisting of **$23.8 million** for common stock repurchases and **$12.4 million** for withholding taxes on equity awards[151](index=151&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes in its market risk profile compared to the disclosures made in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in market risk since the last annual report filed on February 19, 2025[159](index=159&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to internal control over financial reporting identified during the quarter - Based on an evaluation by management, Vimeo's disclosure controls and procedures were deemed effective as of the end of the reporting period (June 30, 2025)[162](index=162&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[163](index=163&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the details on legal contingencies from Note 9 of the financial statements, including the settlement of the RTI copyright litigation and ongoing proceedings with EMI/Capitol and Sony/Universal/Warner - Information regarding legal proceedings is detailed in "Note 9—Contingencies" of the consolidated financial statements[167](index=167&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company highlights its vulnerability to global economic and political conditions as a key risk, where macroeconomic uncertainties could adversely affect customer spending, renewal rates, and sales cycles, potentially harming revenue and business operations - The company's performance is dependent on global economic conditions, which are currently facing macroeconomic uncertainties like market volatility, inflation, and recession risks[169](index=169&type=chunk) - Adverse macroeconomic conditions may lead to decreased business spending, lower renewal rates, longer sales cycles, and challenges in collecting accounts receivable, which could negatively impact revenue[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - There were no unregistered sales of equity securities or use of proceeds to report for the period[172](index=172&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no directors or officers entered into, modified, or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or officers entered into, modified, or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the fiscal quarter[173](index=173&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a separation agreement, CEO/CFO certifications required by the Sarbanes-Oxley Act, and Inline XBRL data files - The report includes standard exhibits such as CEO and CFO certifications (**31.1, 31.2, 32.1, 32.2**) and XBRL data files[175](index=175&type=chunk)

Vimeo (VMEO 4.25%) is a video software platform enabling businesses and creators to make, manage, and distribute professional videos without advertising. On August 4, 2025, the company reported its Q2 2025 earnings results. The main headlines: GAAP earnings per share (EPS) of $0.04 easily beat analyst forecasts by $0.0375, or 1500%. However, GAAP revenue came in at $104.65 million, just under the consensus estimate of $105.76 million and nearly flat with the same period last year. Management raised its adju ...

Core Insights - Vimeo has released its second quarter 2025 shareholder letter, which is available on its investor relations website [1] - A live stream video conference is scheduled to discuss the second quarter results, providing forward-looking information relevant to investors [1] Company Overview - Vimeo is recognized as the world's most innovative video experience platform, enabling users to create high-quality video content [2] - The platform serves millions of users, including creative storytellers and large global teams, with videos receiving billions of views monthly [2]

Dear Shareholders, Philip Moyer, CEO . Exhibit 99.1 At the halfway mark of 2025, I am pleased to report that Vimeo is delivering on the promise of turning towards profitable, accelerating revenue growth. We delivered strong results in Q2, and are entering the second half of the year with momentum. We are in two of the fastest growing technology markets, video and AI, and we have an exciting product roadmap and an inspiring customer base. Our team is as excited as ever about Vimeo's future and potential to d ...

Group 1 - Vimeo, Inc. will announce its second quarter 2025 earnings report on August 4, 2025, after market close [1] - A video conference will be livestreamed on the same day at 5:00 p.m. ET to address questions regarding the earnings report [1] - The earnings results and video conference will be accessible on Vimeo's Investor Relations website [1] Group 2 - Vimeo is recognized as the world's most innovative video experience platform, catering to a diverse community of users [2] - The platform supports millions of users, including creative storytellers and large global teams, with videos that garner billions of views monthly [2]

Core Points - Vimeo has launched the Vimeo Short Film Grant to support emerging filmmakers, providing each winner with $30,000 in funding and access to professional video equipment [1][2] - The initiative aims to foster originality and creativity in storytelling, emphasizing the importance of human-curated content in an algorithm-driven media landscape [2][3] - A prestigious jury selected the winners based on criteria such as originality, artistic merit, and overall impact, highlighting the quality and promise of the submitted projects [2][3] Company Overview - Vimeo is recognized as one of the largest and most trusted private video networks globally, serving millions of users and facilitating billions of views each month [1][6] - The company is committed to enhancing the video experience and supporting creative storytellers, aligning with its mission to promote innovative content [2][4] Equipment and Support - Grant recipients will have access to advanced equipment from Nikon and RED, including the new Z mount V-RAPTOR [X] and KOMODO-X cinema cameras, as well as Nikon's award-winning mirrorless cameras [3][4] - Winners will also receive mentorship from industry professionals and distribution support on Vimeo, including exclusive screenings in major cities [3][4] Filmmaker Highlights - The five selected filmmakers represent diverse and compelling narratives, showcasing unique storytelling perspectives [5] - Notable projects include themes of alien abduction, personal redemption, complex relationships, and the exploration of memory and loss [5]

Core Insights - Vimeo, Inc. has appointed Rose Frawley as Chief People Officer, focusing on global talent strategy and organizational development [1][2] - Frawley's experience includes over 20 years in human resources, with a strong background in building high-performing teams in technology and data companies [2] - The company emphasizes a people-first strategy, aiming to cultivate a culture of trust and engagement among employees [1][3] Company Overview - Vimeo is recognized as the largest private video network globally, serving millions of users and facilitating billions of video views each month [4] - The platform aims to provide innovative video experiences, catering to a diverse community from creative storytellers to large corporate teams [4]