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 ...

Vimeo, Inc. (NASDAQ:VMEO) Q4 2023 Earnings Conference Call February 21, 2024 5:00 PM ET Company Participants Adam Gross - Interim CEO Gillian Munson - CFO Conference Call Participants Tom Champion - Piper Sandler Cory Carpenter - JPMorgan Brian Fitzgerald - Wells Fargo William Kerr - TD Cowen David Lustberg - Jefferies Operator Hello, and thank you for joining Vimeo's Q4 and Full Year 2023 Earnings Live Q&A. Before we begin a few comments First, this session will be recorded and available on the Vimeo Inves ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 Number 001-40420 VIMEO, INC. (Exact Name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction of Incorporation or Or ...