Technology companies can often have short lives, especially smaller players that are competing against much larger incumbents. Though investors should be focusing on value plays amid rich S&P 500 multiples, I also don't recommend catching falling knives among fallen growth stars that don't With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes s ...

Company Overview - Vimeo has appointed Robert ("Bob") Petrocelli as Chief Product & Technology Officer, effective September 9, 2024, to lead its global product and engineering teams [1] - The company aims to enhance technology innovation and deliver high-quality video experiences for businesses, creators, and video professionals [1] Leadership Insights - CEO Philip Moyer emphasized the importance of bolstering technology leadership as Vimeo ramps up investment in innovation [2] - Bob Petrocelli brings over 35 years of technology experience, previously serving as Chief Technology Officer at Pluralsight and holding CTO positions at Intelerad Medical Systems and Datto [2] - Petrocelli played a key role in Datto's IPO on the NYSE and has a strong background in AI technology, aligning with Vimeo's vision for continuous growth [2] Strategic Vision - Petrocelli expressed excitement about joining Vimeo, highlighting the potential at the intersection of video and AI [3] - He believes that video can transform communication and collaboration, and sees an opportunity to leverage machine learning and data science to enhance video content [3] Company Background - Vimeo is recognized as a leading video experience platform, serving millions of users, including creative storytellers and large global teams [4] - The platform facilitates the creation of high-quality video experiences, with its videos receiving billions of views each month [4]

Vimeo, Inc. (NASDAQ:VMEO) Q2 2024 Results Conference Call August 5, 2024 5:00 PM ET Company Participants Philip Moyer - CEO Gillian Munson - CFO Conference Call Participants Youssef Squali - Truist Tom Champion - Piper Sandler Will Kerr - TD Cowen Operator Hello, and thank you for joining Vimeo's Q2 2024 earnings live Q&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 pe ...

Revenue Performance - Total revenue for the three months ended June 30, 2024, increased by $2.5 million, or 2%, to $104.4 million, driven by a 55% increase in Vimeo Enterprise revenue [96]. - Vimeo Enterprise revenue reached $20.1 million for the three months ended June 30, 2024, up from $12.9 million in the same period last year, marking a 55% increase [97]. - Average Subscribers for Vimeo Enterprise increased by 40% year-over-year, contributing to the revenue growth [98]. - Average Revenue per User (ARPU) for Vimeo Enterprise rose by 12% to $21,977 for the three months ended June 30, 2024 [96]. - Self-Serve & Add-Ons revenue decreased by 3% to $68.6 million, primarily due to a 9% decline in Average Subscribers [97]. - Bookings for Self-Serve & Add-Ons totaled $67.9 million, down 9% from $74.8 million in the prior year [96]. - Other revenue segment saw a 13% decline to $15.8 million, attributed to the active deprecation of several products [98]. Profitability Metrics - Gross profit margin remained stable at 78% for both the three and six months ended June 30, 2024 [96]. - Operating income improved to 7% of revenue for the three months ended June 30, 2024, compared to 5% in the same period last year [96]. - Net earnings for the three months ended June 30, 2024, were 10% of revenue, up from 6% in the prior year [96]. - Gross profit increased by $2.7 million, or 3%, for the three months ended June 30, 2024, driven by an increase in revenue [102]. - Operating income increased by $2.9 million, or 62%, for the three months ended June 30, 2024, due to an increase in gross profit and a decrease in operating expenses [108]. - Adjusted EBITDA increased by $11.3 million, or 225%, for the three months ended June 30, 2024, primarily due to higher revenue and decreases in advertising costs [113]. - Net earnings for Q2 2024 were $10.1 million, up from $5.9 million in Q2 2023, representing a 72% increase [118]. - Adjusted EBITDA for Q2 2024 was $16.3 million, compared to $5.0 million in Q2 2023, reflecting a 226% year-over-year growth [118]. Expenses and Investments - Research and development expense increased by $0.3 million, or 1%, for the three months ended June 30, 2024, due to increased investment in products [103]. - Sales and marketing expense decreased by $12.1 million, or 30%, for the three months ended June 30, 2024, primarily due to reduced advertising costs [104]. - General and administrative expense increased by $12.1 million, or 175%, for the three months ended June 30, 2024, driven by an increase in stock-based compensation expense [105]. - Total operating expenses decreased by $0.2 million, or less than 1%, for the three months ended June 30, 2024 [103]. - Stock-based compensation expense for the first half of 2024 was $15.4 million, contributing to adjustments in net earnings [126]. Cash Flow and Financial Position - Cash and cash equivalents totaled $310.6 million as of June 30, 2024, an increase from $301.4 million at the end of 2023 [124]. - Net cash provided by operating activities for the first half of 2024 was $25.3 million, significantly higher than $11.2 million in the same period of 2023 [125]. - The company repurchased 3.0 million shares at an average cost of $3.88 per share, totaling $11.8 million during the first half of 2024 [129]. - The company had no debt as of June 30, 2024, indicating a strong financial position [131]. Other Considerations - Interest income increased by $0.8 million, or 26%, for the three months ended June 30, 2024, due to larger money market fund balances and higher interest rates [110]. - Income tax provision increased by $0.4 million, or 56%, for the three months ended June 30, 2024, as a result of higher pre-tax income [112]. - The company anticipates potential additional costs related to a non-cancellable cloud computing arrangement expiring in Q4 2024 [131]. - Vimeo's liquidity may be impacted by decreased demand for products and services or unexpected expenses, necessitating potential future capital raises [131]. - Total cash used in investing activities was $0.2 million, primarily for capital expenditures [126]. - The information regarding legal proceedings is referenced from "Note 9—Contingencies" in the consolidated financial statements [139].

Financial Performance - Vimeo's Q2 revenue grew 2% year-over-year to $104 million, with Vimeo Enterprise revenue increasing by 55% in the same period[3] - The company generated a net income of $10 million and an adjusted EBITDA of $16 million, reflecting increases of 40% and 225% year-over-year, respectively[22] - Cash from operations was $20 million, and free cash flow also amounted to $20 million, up 55% year-over-year[23] - Vimeo ended Q2 with $311 million in cash and cash equivalents, an increase of $6 million from the previous quarter[23] - The gross margin for Q2 was 78%, with both GAAP and non-GAAP gross profit margins improving year-over-year[16] - For the full year 2024, the company expects revenue to be around $405 million and operating income to be approximately $3 million[24] - For Q3 2024, the company anticipates revenue to be at or below $100 million with an operating loss of approximately $1 million[24] - In Q2 2024, the company reported revenue of $104.376 million, a 2.4% increase from $101.835 million in Q2 2023[24] - Gross profit for Q2 2024 was $81.698 million, compared to $78.990 million in Q2 2023, reflecting a gross margin improvement[24] - Net earnings for Q2 2024 were $10.121 million, compared to $5.871 million in Q2 2023, representing a 72% year-over-year increase[24] - The company reported total assets of $626.293 million as of June 30, 2024, up from $622.920 million at the end of 2023[25] - Cash and cash equivalents increased to $310.579 million as of June 30, 2024, compared to $301.372 million at the end of 2023[25] - The company’s total shareholders' equity rose to $397.892 million as of June 30, 2024, from $382.232 million at the end of 2023[25] - Adjusted EBITDA for Q2 2024 was $16.3 million, significantly up from $5.0 million in Q2 2023, resulting in an Adjusted EBITDA margin of 16%[29] - Free Cash Flow for Q2 2024 was $20.3 million, compared to $13.1 million in Q2 2023, indicating improved cash generation[29] - GAAP net earnings for Q2 2024 were $10.1 million, compared to $5.9 million in Q2 2023, showing a positive trend in profitability[29] Shareholder Actions - The company repurchased approximately 4 million shares for $16 million since the last earnings announcement, with $34 million remaining in the share repurchase authorization[23] - Vimeo reported a total of 165.8 million shares outstanding as of August 1, 2024, with an estimated dilution of 4.2% at a share price of $4.00[41] - The company has 12.2 million stock options and 12.7 million restricted stock units (RSUs) that contribute to potential dilution, with total estimated dilution reaching 6.9 million shares[41] - The company plans to utilize share repurchase authorization as part of its financial strategy moving forward[43] Revenue Streams - Vimeo Enterprise bookings reached $23 million in Q2, contributing to a projected annualized bookings run rate of $100 million[8] - Self-Serve & Add-Ons revenue decreased by 9% year-over-year, while ARPU increased by 6% in Q2[12] - Vimeo Enterprise revenue increased to $20.051 million in Q2 2024, up 55.5% from $12.899 million in Q2 2023[27] - Average revenue per user (ARPU) for Self-Serve & Add-Ons rose to $208, compared to $195 in Q2 2023, reflecting a 6.7% increase[27] - Bookings for Self-Serve & Add-Ons decreased to $67.904 million in Q2 2024, down from $74.789 million in Q2 2023, indicating a need for strategic review[27] - The company reported a total of 1,304.6 thousand subscribers for Self-Serve & Add-Ons, a decrease from 1,432.0 thousand in Q2 2023[27] Cost Management - Research and development expenses for Q2 2024 were $26.972 million, slightly up from $26.676 million in Q2 2023[24] - Sales and marketing expenses decreased significantly to $27.676 million in Q2 2024 from $39.764 million in Q2 2023, indicating cost management efforts[24] - Research and development expenses for Q2 2024 were $27.0 million, representing 26% of revenue, consistent with the previous year[28] Strategic Initiatives - The company expanded its enterprise services into China, supporting major global companies in secure video streaming[1] - Vimeo's focus on product-led growth included investments in AI-powered innovations, such as video translation solutions[19] - Vimeo's OTT video monetization solution allows customers to launch their own streaming channels, expanding its market reach and service diversity[38] - The enterprise offering includes advanced features such as security and custom user permissions, indicating a focus on larger organizations and teams[38] - The company anticipates future growth through international market expansion and improved customer acquisition strategies[43] - The company emphasizes the importance of retaining paying subscribers by enhancing its value proposition and improving service offerings[43] Risks and Challenges - Vimeo's management acknowledges various risks, including economic conditions and competition, which could impact future performance[43]

Core Insights - Vimeo has launched an AI-powered video translation solution that significantly reduces the time and cost associated with traditional translation methods, enabling businesses to communicate globally with ease [4][5]. Group 1: Product Features - The new solution leverages generative AI to translate video, audio, and captions into multiple languages while maintaining the original speakers' voices, creating a seamless viewing experience [4][5]. - Users can upload or create videos in over 50 languages and select from 29 language options for translation, with AI matching the original speakers' voices [6]. Group 2: Business Applications - The AI-powered translation solution can enhance Learning & Development by automating the localization of online courses and training materials [5]. - It improves Employee Communications by translating important company updates for global employees [5]. - The solution expands Marketing reach by translating product explainers, webinar recordings, and testimonials into different languages [5]. Group 3: Market Impact - Vimeo's enterprise AI solutions are already assisting thousands of companies in improving communication, collaboration, training, and marketing reach [3]. - The platform aims to increase marketing ROI by transforming video content into interactive experiences that drive higher engagement and conversion rates [8].

Group 1 - Vimeo, Inc. will announce its second quarter 2024 earnings report on August 5, 2024, after market close [1] - A live video conference will be held on the same day at 5:00 p.m. ET to discuss the earnings results [1] - The earnings report 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, serving millions of users [2] - The platform enables users to create high-quality video experiences, facilitating better connections and idea sharing [2] - Vimeo's videos collectively receive billions of views each month, highlighting its significant reach and impact [2]

Financial Data and Key Metrics Changes - Vimeo reported a year-over-year growth in gross profit, net income, and adjusted EBITDA, with adjusted EBITDA reaching $12 million in Q1 2024, a significant improvement from a loss of $10 million in the same quarter two years ago [6][7]. Business Line Data and Key Metrics Changes - Vimeo Enterprise showed strong growth and impressive customer wins in Q1 2024, while the Self-Serve & Add-Ons segment demonstrated resilience despite scaling back underperforming marketing spend [6][18]. Market Data and Key Metrics Changes - The company experienced a decline in bookings for the Self-Serve segment, which is expected to continue throughout the year, while the Enterprise segment remains the strongest growth opportunity [15][18]. Company Strategy and Development Direction - The new CEO emphasized the importance of listening to customers and innovating quickly to capture the upcoming paradigm shift in video creation and consumption driven by AI [12]. - The company plans to make investments to support sustainable, profitable growth, leveraging the strong financial foundation built over the past two years [17][24]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the macro environment but expressed confidence in Vimeo's ability to capture opportunities specific to its business [22]. - The guidance for the year reflects a cautious outlook, with expectations of mid- to high single-digit revenue decline for the next three quarters, influenced by the need to make strategic investments [13][15]. Other Important Information - The company indicated plans for share repurchases to mitigate dilution from equity grants to employees [29]. - The launch of Vimeo Central is still in its early stages, and specific metrics on engagement and productivity gains are not yet available [20]. Q&A Session Summary Question: Key priorities for the next 12 months and revenue guidance implications - The new CEO highlighted the excitement around customer engagement and the potential for growth in both self-serve and enterprise segments, while the CFO explained that the guidance reflects a mix of conservatism and the impact of marketing cuts [8][13]. Question: Early observations on Vimeo Central and its rollout - Management stated that it is too early to provide specific numbers on Vimeo Central, but they are optimistic about its potential to enhance enterprise customer engagement [20]. Question: Reinvestment strategies and macroeconomic conditions - The CFO noted that while there are macro headwinds, Vimeo's opportunities are largely self-determined, and the company is well-positioned to pursue growth [22][24]. Question: Drivers for customer additions in the enterprise business - The enterprise business is seeing growth due to organizations recognizing the need for better video management platforms, with significant interest in using video for marketing and internal communications [28][30].

Table of Contents As filed with the Securities and Exchange Commission on May 7, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________to__________ Commission File No. 001-40420 VIMEO, INC. (Exact name of regi ...

Exhibit 99.1 Dear Shareholders, Philip Moyer, CEO Gillian Munson, CFO . We have also been on a path to rationalize expenses which was clearly reflected in the quarter. Q1 GAAP operating expenses were down 5% and non-GAAP operating expenses* were down 10% year-over-year. Operating expenses are down more than $20 million compared to the same period just 2 years ago. This is driving solid profitability. With the foundational work of the last year and Philip on board we have significant opportunity ahead. Given ...