Start Time: 17:00 January 1, 0000 5:19 PM ET Vimeo, Inc. (NASDAQ:VMEO) Q3 2023 Earnings Conference Call November 06, 2023, 17:00 PM ET Company Participants Adam Gross - Interim CEO Gillian Munson - CFO Ken Goff - Head, IR Conference Call Participants Youssef Squali - Truist Tom Champion - Piper Sandler Brian Fitzgerald - Wells Fargo David Lustberg - Jefferies William Kerr - TD Cowen Gillian Munson [Starts Abruptly] …putting 2023 in perspective, and during the year, we had three financial goals, delivering ...

Table of Contents As filed with the Securities and Exchange Commission on November 7, 2023 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 September 30, 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 No. 001-40420 VIMEO, INC. (Exact nam ...

Vimeo, Inc. (NASDAQ:VMEO) Q2 2023 Earnings Conference Call August 2, 2023 8:30 AM ET Company Participants Ken Goff – Head-Investor Relations Gillian Munson – Chief Financial Officer Adam Gross – Interim Chief Executive Officer Anjali Sud – Chief Executive Officer Conference Call Participants Brian Fitzgerald – Wells Fargo Tom Champion – Piper Sandler William Kerr – TD Cowen Chris Zhang – Truist David Lustberg – Jefferies Ken Goff Hi. I’m Ken Goff, Vimeo’s Head of Investor Relations. Thank you for watching o ...

PART I [Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents Vimeo's unaudited consolidated financial statements for the period ended June 30, 2023, covering balance sheets, operations, cash flows, and detailed notes [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet provides a snapshot of Vimeo's financial position, detailing assets, liabilities, and equity at period-end Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$596,061** | **$605,431** | | Cash and cash equivalents | $278,445 | $274,497 | | Goodwill | $245,406 | $245,406 | | **Total Liabilities** | **$243,168** | **$251,573** | | Deferred revenue | $173,995 | $167,388 | | **Total Shareholders' Equity** | **$352,893** | **$353,858** | [Consolidated Statement of Operations](index=6&type=section&id=Consolidated%20Statement%20of%20Operations) Vimeo's Q2 2023 operations show a revenue decrease but a significant turnaround to net earnings, driven by reduced operating expenses Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $101,835 | $110,977 | $205,417 | $219,331 | | Gross Profit | $78,990 | $84,099 | $158,900 | $165,697 | | Operating Income (Loss) | $4,595 | $(27,297) | $1,790 | $(53,552) | | Net Earnings (Loss) | $5,871 | $(26,502) | $5,173 | $(53,060) | | Diluted EPS | $0.03 | $(0.16) | $0.03 | $(0.33) | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The statement of cash flows highlights a significant improvement in net cash provided by operating activities for the first half of 2023 Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $11,196 | $(48,710) | | Net cash provided by investing activities | $532 | $1,002 | | Net cash used in financing activities | $(7,615) | $(5,729) | | Net increase (decrease) in cash | $3,959 | $(53,925) | [Note 2—Revenue](index=11&type=section&id=Note%202%E2%80%94Revenue) Revenue is primarily derived from SaaS subscriptions, with detailed disaggregation by category and geographic region for the period Disaggregated Revenue (Six Months Ended June 30, in thousands) | Category | 2023 | 2022 | | :--- | :--- | :--- | | Self-Serve & Add-Ons | $142,423 | $154,337 | | Vimeo Enterprise | $24,471 | $18,896 | | Other | $38,523 | $46,098 | | **Total** | **$205,417** | **$219,331** | Revenue by Geography (Six Months Ended June 30, in thousands) | Region | 2023 | 2022 | | :--- | :--- | :--- | | United States | $108,899 | $109,881 | | All other countries | $96,518 | $109,450 | | **Total** | **$205,417** | **$219,331** | [Note 5—Revolving Credit Facility](index=14&type=section&id=Note%205%E2%80%94Revolving%20Credit%20Facility) The company terminated its $100 million revolving credit facility, effective June 30, 2023, with all outstanding obligations settled - Vimeo terminated its **$100 million** revolving credit facility effective June 30, 2023[60](index=60&type=chunk) [Note 8—Stock-Based Compensation](index=16&type=section&id=Note%208%E2%80%94Stock-Based%20Compensation) Significant changes in stock-based compensation resulted from amendments to executive agreements and a reversal of previously recognized expenses - Following the resignation of Chairman Joseph Levin, his Restricted Stock Agreement was amended, reducing the share count by one-third and leading to a reversal of **$14.8 million** in stock-based compensation expense in Q1 2023[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) - CEO Anjali Sud's RSU award agreement was amended in March 2023, but the award is not expected to vest following her announced intention to step down as CEO, effective August 31, 2023[75](index=75&type=chunk) [Note 11—Contingencies](index=19&type=section&id=Note%2011%E2%80%94Contingencies) Vimeo is involved in several significant legal proceedings, primarily related to copyright infringement and a class action lawsuit - Vimeo is appealing an **EUR 8.5 million** judgment in a copyright case brought by Italian broadcaster RTI, which has initiated proceedings in New York to enforce the judgment[99](index=99&type=chunk) - The company is defending against copyright infringement lawsuits from EMI/Capitol Records in the U.S. and Sony, Universal, and Warner Music in Italy[89](index=89&type=chunk)[103](index=103&type=chunk) - A preliminary approval has been granted for a **$2.3 million** settlement in a class action lawsuit concerning the Illinois Biometric Information Privacy Act (BIPA)[106](index=106&type=chunk) [Note 13—Restructuring](index=22&type=section&id=Note%2013%E2%80%94Restructuring) Vimeo completed a restructuring plan in Q1 2023, reducing its workforce by 11% and incurring one-time termination benefits Restructuring Costs (Six Months Ended June 30, 2023, in thousands) | Category | Cost | | :--- | :--- | | Cost of revenue | $298 | | Research and development expense | $2,813 | | Sales and marketing expense | $1,078 | | General and administrative expense | $699 | | **Total** | **$4,888** | - The restructuring plan involved a workforce reduction of approximately **11%** of employees[110](index=110&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) Management discusses a strategic shift towards profitability, achieving positive operating income and Adjusted EBITDA despite revenue declines Key Operating Metrics (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | **Self-Serve & Add-Ons** | | | | | Average Subscribers (k) | 1,455.2 | 1,566.3 | (7)% | | ARPU | $195 | $200 | (3)% | | **Vimeo Enterprise** | | | | | Average Subscribers (k) | 2.6 | 1.9 | 42% | | ARPU | $19,672 | $21,220 | (7)% | | Bookings (k) | $18,205 | $10,575 | 72% | - Achieved positive operating income of **$4.6 million** in Q2 2023, compared to a loss of **$27.3 million** in Q2 2022, driven by a **33%** reduction in total operating expenses[141](index=141&type=chunk)[142](index=142&type=chunk) - Adjusted EBITDA improved to **$5.0 million** in Q2 2023 from a loss of **$6.4 million** in Q2 2022[144](index=144&type=chunk) - The company maintains a strong liquidity position with **$278.4 million** in cash and cash equivalents and no debt as of June 30, 2023[169](index=169&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in the company's market risk have occurred since previous annual and quarterly disclosures - No material changes in market risk have occurred since the last annual and quarterly reports[172](index=172&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[175](index=175&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[176](index=176&type=chunk) PART II [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from the detailed disclosures in Note 11 of the financial statements - Information regarding legal proceedings is detailed in Note 11 of the financial statements[180](index=180&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the last annual report on Form 10-K - There have been no material changes from the risk factors previously disclosed in the Annual Report on Form 10-K[181](index=181&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) Vimeo did not conduct any unregistered sales of equity securities or repurchase common stock during the quarter - Vimeo did not conduct any unregistered sales of its equity securities during Q2 2023[182](index=182&type=chunk) - Vimeo did not purchase any of its common stock during Q2 2023[183](index=183&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No directors or officers entered into, modified, or terminated Rule 10b5-1 trading plans during the second quarter of 2023 - No directors or officers entered into, modified, or terminated Rule 10b5-1 trading plans during the quarter[185](index=185&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including management contracts and officer certifications

Vimeo, Inc. (NASDAQ:VMEO) Q1 2023 Results Conference Call May 4, 2023 8:30 AM ET Company Participants Anjali Sud - CEO Gillian Munson - CFO Conference Call Participants Brian Fitzgerald - Wells Fargo Tom Champion - Piper Sandler William Kerr - TD Cowen Daniel Pfeiffer - JPMorgan David Lustberg - Jefferies Operator Good morning, and thank you for joining Vimeo's Q1 earnings live Q&A. We're excited to be here in front of you. Before we begin a few comments, first, this session will be recorded and available o ...

Table of Contents As filed with the Securities and Exchange Commission on May 4, 2023 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, 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 No. 001-40420 VIMEO, INC. (Exact name of regi ...

Vimeo, Inc. (NASDAQ:VMEO) Q4 2022 Earnings Conference Call February 28, 2022 8:30 AM ET Company Participants Anjali Sud - CEO & Director Gillian Munson - CFO Conference Call Participants Thomas Champion - Piper Sandler Brian Fitzgerald - Wells Fargo Brent Thill - Jefferies Justin Patterson - KeyBanc Capital Markets William Kerr - Cowen and Company Daniel Pfeiffer - JPMorgan Operator Good morning, and thank you for joining Vimeo's fourth quarter earnings live Q&A. We're excited to be here with you on vid ...

Financial Performance - The company has not achieved profitability in any full fiscal year since inception, indicating ongoing financial challenges [62]. - Revenue growth rate has declined since the rapid growth experienced in 2020 and the first half of 2021, raising concerns about future performance [63]. - The company recognized revenue of $433.0 million for the year ended December 31, 2022, representing a 10.6% increase from $391.7 million in 2021 [272]. - Gross profit for 2022 was $329.4 million, up from $289.1 million in 2021, indicating a gross margin improvement [272]. - Operating loss increased to $82.9 million in 2022 from $61.0 million in 2021, reflecting higher operating expenses [272]. - The net loss for 2022 was $79.6 million, compared to a net loss of $52.8 million in 2021, resulting in a basic and diluted loss per share of $0.49 [272]. - Vimeo reported a net loss of $79.591 million for the year ended December 31, 2022, compared to a net loss of $52.767 million in 2021, indicating a year-over-year increase in losses of approximately 50.9% [284]. - Cash and cash equivalents decreased to $274.5 million as of December 31, 2022, down from $321.9 million in 2021 [270]. - Total operating expenses for 2022 were $412.4 million, up from $350.2 million in 2021, driven by increased investments in sales and marketing [272]. Market and Competition - The company faces intense competition from various sectors, including large social media networks and traditional online video distributors, which may impact market share [74]. - The total addressable market for the company's video services may be smaller than anticipated, as not all businesses may be willing to pay for such services [67]. - The company must effectively convert free users into paying subscribers to sustain growth, but current conversion rates may not meet expectations [70]. Operational Risks - Service interruptions and technical errors could lead to lost business and increased subscriber churn, particularly during high-demand periods [77]. - Hosting and delivery costs, which significantly influence gross margin, may increase unexpectedly due to rapid growth or bandwidth consumption [78]. - The company depends on third-party vendors for core services, and outages in these services could materially affect operations and subscriber retention [84]. - The shift towards mobile traffic may lead to a decline in gross margin due to higher service fees associated with in-app purchases [81]. - The company has experienced higher than industry standard rates of chargebacks and unauthorized credit card transactions, which could lead to increased penalties and loss of the right to accept credit cards for payment [89]. Economic and Regulatory Environment - Weakened global economic conditions, including inflation and reduced consumer spending, may adversely impact the company's business and financial results [92]. - The company faces risks related to foreign currency exchange rate fluctuations, which could harm financial results and cause discrepancies from investor expectations [94]. - The ongoing effects of the COVID-19 pandemic remain unpredictable and could significantly impact future results of operations and overall financial performance [95]. - Changes in laws limiting liability for user and subscriber copyright infringement could increase compliance costs and risk of liability for the company [108]. - The company is subject to fines up to 4% of its annual turnover under the EU's General Data Protection Regulation (GDPR) [122]. Employee and Talent Management - Competition for skilled employees is intense, and the company may face challenges in hiring and retaining talent, particularly in engineering and product development [97]. - Compensation packages may not be sufficient to attract and retain employees, especially in a high-inflation environment, which could lead to increased turnover [99]. Corporate Governance and Structure - The company has approximately 38% of total outstanding voting power held by Barry Diller, influencing board composition and operations [136]. - The dual-class common stock structure may negatively impact the market price of Vimeo's common stock, with Class B common stock having 10 votes per share compared to one vote per share for common stock [140]. - The concentration of voting power could discourage potential mergers or takeovers that may be beneficial to stockholders, potentially affecting the market price of securities [138]. Financial Position and Tax Matters - The company has approximately $79.8 million in U.S. federal net operating loss carryforwards and $14.6 million in tax credits as of December 31, 2022 [133]. - Vimeo's net operating loss (NOL) carryforwards totaled $187.8 million, with $79.8 million subject to expiration and $129.8 million available for indefinite carryforward [348]. - The company reported a valuation allowance increase of $15.5 million during 2022, primarily due to deferred tax assets related to capitalized research and development expenses and stock-based compensation [349]. Acquisitions and Strategic Initiatives - The company may engage in merger and acquisition activities, which could disrupt ongoing operations and dilute stockholder value, with potential difficulties in integrating acquired technologies [90]. - The company completed acquisitions of Wibbitz and WIREWAX in late 2021, enhancing its capabilities in video creation and interactive content [354].

Vimeo, Inc. (NASDAQ:VMEO) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET Company Participants Anjali Sud - CEO Gillian Munson - CFO Conference Call Participants Bill Kerr - Cowen Tom Champion - Piper Sandler Brian Fitzgerald - Wells Fargo Operator Good morning, and thank you for joining Vimeo's Q3 Earnings Live Q&A. We're excited to be here in front of you. Before we begin, a few comments. First, Vimeo's Q3 shareholder video will be available on the Vimeo Investor Relations site. Second, we wi ...

Financial Data and Key Metrics Changes - In Q2 2022, revenue reached $111 million, representing a 16% year-over-year growth, with gross profit growing by 20% [18][24] - Adjusted EBITDA loss for the quarter was $6.4 million, a significant sequential drop from Q1, with expectations to approach breakeven by Q4 2022 [24][25] - Overall ARPU increased by 10% year-over-year to $264, with sales-assisted ARPU rising while self-serve remained flat [21][24] Business Line Data and Key Metrics Changes - Sales-assisted revenue grew 45% year-over-year, while self-serve revenue growth was only 4% [18][24] - Sales-assisted bookings grew nearly 20%, contrasting with flat overall bookings year-over-year due to a decline in self-serve [19][24] - Self-serve accounted for approximately 65% of revenue, up 4% year-over-year, while sales-assisted made up about 35% of revenue [7][9] Market Data and Key Metrics Changes - International markets grew slightly faster than the U.S. in Q2, with a 1% FX impact on revenue [32] - The self-serve business experienced a 30% decline in traffic year-over-year, indicating challenges in this segment [20][53] - The sales-assisted business, particularly Vimeo Enterprise, showed strong growth, with bookings growing twice as fast as total sales-assisted bookings [6][33] Company Strategy and Development Direction - The company is transitioning into a software provider for businesses, focusing on expanding its product offerings and enhancing user engagement [2][6] - A new monetization model is being rolled out to simplify purchasing and encourage upselling through seat expansion [8][42] - The company aims to stabilize self-serve while leveraging the faster growth of sales-assisted revenue to drive overall growth [18][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged lower demand in the self-serve business due to post-COVID normalization and macroeconomic conditions, but remains optimistic about sales-assisted growth [3][17] - The company expects to exit 2022 with accelerating sales-assisted bookings growth, while self-serve growth remains difficult to forecast [26][60] - Management is focused on improving operational efficiency and has made structural changes, including a reduction in workforce and reallocating marketing spend [13][24] Other Important Information - The company has welcomed several new executives to enhance its leadership team and improve execution across product, sales, and marketing [12][68] - Cash on hand at the end of Q2 was $268 million, with expectations for improved cash flow in the second half of the year [24][65] Q&A Session Summary Question: Impact of macro environment on business - Management indicated that the self-serve business is experiencing a post-pandemic normalization, while sales-assisted bookings are healthy, particularly in Vimeo Enterprise [31][33] Question: Actions taken to adapt to the new environment - Management emphasized focusing on product, marketing, and sales fundamentals, with a commitment to improving operational efficiency [36][38] Question: State of the sales-assisted effort and product pipeline - The sales team is about 74% ramped, with expectations for improved productivity, and the product pipeline is on track with new features and enhancements [45][49] Question: Self-serve business challenges and recovery timeline - Management noted that traffic decline is the primary challenge for self-serve, but they are confident in their ability to drive improvements and expect recovery in multiple quarters [52][56] Question: Free cash flow outlook - Management expressed confidence in the company's cash generation capabilities, with expectations for reduced EBITDA losses and stable cash flow moving forward [63][65] Question: Enterprise market opportunity and competition - Management highlighted strong growth indicators in the enterprise segment, with confidence in the strategy to capture this market despite post-pandemic transitions [68]