Core Viewpoint - Vimeo has agreed to be acquired by Bending Spoons in an all-cash deal valued at approximately $1.38 billion, with shareholders set to receive $7.85 per share [4]. Group 1 - The acquisition is a definitive agreement, indicating a formal commitment between Vimeo and Bending Spoons [4]. - The transaction is structured as an all-cash deal, which may appeal to shareholders looking for immediate liquidity [4]. - The valuation of the deal at about $1.38 billion reflects Vimeo's market position and potential growth prospects [4].

Core Points - Vimeo, Inc. has entered into a definitive agreement to be acquired by Bending Spoons in an all-cash transaction valued at approximately $1.38 billion, with shareholders receiving $7.85 per share, representing a 91% premium over the 60-day volume-weighted average share price as of September 9, 2025 [1][2][3] Group 1: Transaction Details - The acquisition has been unanimously approved by Vimeo's Board of Directors and is expected to close in the fourth quarter of 2025, pending customary closing conditions and approvals [3] - Upon completion, Vimeo will become a privately held company, and its capital stock will no longer be listed on any public stock exchange [3] Group 2: Strategic Intent - The Board believes this transaction delivers compelling value to Vimeo shareholders and positions the company to accelerate its strategic roadmap as part of Bending Spoons [2] - Bending Spoons aims to make ambitious investments in the US and other priority markets, focusing on enhancing performance and reliability, and introducing advanced features [2] Group 3: Company Background - Vimeo is recognized as one of the world's most innovative video experience platforms, serving millions of users, including creative storytellers and large corporations [6] - Bending Spoons has a diverse portfolio of digital technology businesses, serving over 300 million users and 10 million paying customers each month [8]

Stock Picks - Global Star (GSAT) is a Zacks Rank 1 (Strong Buy) with an A for growth and an F for value, indicating a divergence that aggressive growth investors may find appealing [1][2] - Vimeo (VME) is also a Zacks Rank 1 (Strong Buy) with a B for both growth and value, potentially attracting value-conscious investors [10] Global Star (GSAT) Analysis - The company's revenue is expected to grow by 6% this year and triple to 18% next year, reaching $315 million [6] - Price to book is at nine times, while trading at 13 times sales, with margins improving from -14% and -13% to approximately 1% in the last two quarters, suggesting a potential profitability turnaround [7] - Earnings estimates have significantly improved, with next year's estimates moving from negative to positive by one penny, potentially driving investor interest [5] Vimeo (VME) Analysis - The company's earnings estimates are trending positively, but revenue growth is slow at 15% this year, with an expected acceleration to 5% next year [13] - The stock has a high forward earnings multiple of 66 times, but low price-to-book and price-to-sales ratios, which may interest value investors [14] - Margins are declining, from 6% to 4% and then to 3%, indicating a need for improved operational efficiency and bottom-line performance [15]

Industry Overview - The Technology Services industry ranks within the top 40% of Zacks Ranked Industries and is expected to outperform the market over the next three to six months [1][8] - The industry is mature with strong demand for services, leading to significant growth in the first half of 2025, which is likely to continue in the second half [1][3] Market Trends - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [3] - Companies are rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [3][4] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructure [3] Company Highlights Coherent Corp. (COHR) - Coherent is positioned in the industrial, communications, electronics, and instrumentation markets, offering diversified applications [7] - Expected revenue and earnings growth rates for the current year are 11.5% and 29.3%, respectively, with a 4.1% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [9] Vimeo Inc. (VMEO) - Vimeo provides cloud-based video software solutions, including video hosting, management, and analytics [10][11] - Expected revenue and earnings growth rates for the next year are 6.2% and over 100%, respectively, with no change in the Zacks Consensus Estimate for next-year earnings over the last 60 days [12] Skillsoft Corp. (SKIL) - Skillsoft offers personalized learning experiences and operates in two segments: Talent Development Solutions and Global Knowledge [13][14] - Expected revenue and earnings growth rates for the current year are 1.2% and -157%, respectively, with a 54.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [15] Vontier Corp. (VNT) - Vontier focuses on transportation and mobility solutions, operating through three segments: Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions [16] - Expected revenue and earnings growth rates for the current year are 0.1% and 9%, respectively, with a 2.9% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [17] SPX Technologies Inc. (SPXC) - SPX Technologies is a diversified supplier in the HVAC and detection and measurement markets, operating in two segments [18] - Expected revenue and earnings growth rates for the current year are 12.7% and 17%, respectively, with a 3.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [19]

Core Insights - Vimeo, Inc. reported revenue of $104.65 million for the quarter ended June 2025, reflecting a year-over-year increase of 0.3% and an EPS of $0.04, down from $0.06 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $105.76 million, resulting in a surprise of -1.05%, while the EPS did not meet the consensus estimate of $0 [1] Financial Performance Metrics - Vimeo's stock has returned -7.1% over the past month, contrasting with the Zacks S&P 500 composite's +0.6% change, and currently holds a Zacks Rank 3 (Hold) [3] - Key metrics include: - ARPU - Self-Serve: $197.00, exceeding the estimated $189.45 [4] - ARPU - Vimeo Enterprise: $24,705.00, slightly below the estimated $25,001.00 [4] - Revenue from Self-Serve: $57.56 million, surpassing the average estimate of $56.4 million [4] - Revenue from Vimeo Enterprise: $25 million, below the average estimate of $26.3 million, but showing a year-over-year increase of +24.7% [4] - Revenue from Other: $1.63 million, below the average estimate of $1.79 million, representing a year-over-year decline of -89.6% [4] - Revenue from Add-Ons: $8.2 million, slightly above the average estimate of $8.15 million [4] - Revenue from OTT: $12.27 million, exceeding the average estimate of $12.05 million [4]

Financial Data and Key Metrics Changes - Vimeo reported a strong Q2 2025 with bookings growing 6% year over year, marking the strongest growth since 2022 [3] - Adjusted EBITDA guidance for 2025 was raised to approximately $35 million, up from the previous range of $25 million to $30 million [5] Business Line Data and Key Metrics Changes - Self-serve bookings grew by 11%, reaching levels last seen in 2021, attributed to changes in packaging and pricing [3] - Vimeo Enterprise revenue grew by 25%, achieving its second highest booking level on a dollar basis [4] Market Data and Key Metrics Changes - The company is seeing traction across all AI offerings, indicating a positive market response to new product improvements [4] Company Strategy and Development Direction - The company aims to reaccelerate growth in its Enterprise product bookings in the second half of the year, with a focus on competitive deals and customer retention [4][20] - Vimeo is working on a product roadmap that includes new features and capabilities to enhance customer experience and retention [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the self-serve business returning to growth, with expectations for double-digit growth by the end of the year [12][14] - There are challenges in certain geographies due to macroeconomic factors, but the company maintains a strong value proposition in the market [31] Other Important Information - The company is focusing on improving efficiency and innovation, consolidating its product offerings to enhance speed and reduce costs [38][39] - Vimeo is exploring the integration of AI features to enhance customer support and video interaction capabilities [42] Q&A Session Summary Question: Can you discuss the self-serve business and subscriber declines? - Management highlighted strong retention rates and the importance of recent pricing and packaging changes, indicating a positive outlook for growth [8][12] Question: What about the slowdown in Enterprise bookings? - Management explained that a specific customer related to bandwidth usage did not adopt other features, leading to retention challenges, but expressed confidence in future growth due to competitive wins [15][19] Question: Any impact from macroeconomic turmoil on Enterprise? - Management acknowledged some challenges in certain sectors but emphasized a strong value proposition and ongoing customer acquisition efforts [31] Question: What are the investment plans for the year? - Management indicated that they are able to invest more efficiently than expected, maintaining a focus on careful capital allocation while improving EBITDA margins [35][36] Question: How is capital being allocated? - The company is focused on investing in the business, share buybacks, and potential acquisitions, with a high bar for any acquisition to ensure it aligns with strategic goals [47][48]

Financial Data and Key Metrics Changes - Vimeo reported a strong Q2 2025 with bookings growing 6% year over year, marking the strongest growth since 2022 [3] - Adjusted EBITDA guidance for 2025 was raised to approximately $35 million, up from the previous range of $25 million to $30 million [5] Business Line Data and Key Metrics Changes - Self-serve bookings grew by 11%, reaching levels last seen in 2021, attributed to changes in packaging and pricing as well as new product improvements [3][4] - Vimeo Enterprise revenue grew by 25%, achieving its second highest booking level on a dollar basis [4] Market Data and Key Metrics Changes - The company is seeing traction across all AI offerings, indicating a positive market response to new product features [4] Company Strategy and Development Direction - Vimeo aims to reaccelerate growth in its enterprise bookings in the second half of the year, focusing on competitive deals and customer retention [4][21] - The company is investing in product innovations and customer service improvements to enhance customer relationships and retention [21][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in certain geographies due to macroeconomic factors but emphasized a strong value proposition in interactive video and compliance solutions [33] - The company is optimistic about the self-serve business returning to growth, with expectations for double-digit growth in the future [14][32] Other Important Information - Vimeo is transitioning to a single code base for its products, which is expected to improve efficiency and speed of innovation [39] - The company is exploring AI features that enhance customer interaction with video content, aiming to integrate these into various business functions [43][44] Q&A Session Summary Question: Can you discuss the self-serve business and subscriber declines? - Management expressed confidence in the self-serve leadership and highlighted strong retention rates despite pricing changes, indicating a potential for growth in 2026 [8][10][12] Question: What about the enterprise customer decline and reacceleration in the second half? - Management explained that a specific international customer faced retention challenges due to a focus on bandwidth, but they are optimistic about the product roadmap and competitive wins [15][18][20] Question: Any impact from macroeconomic turmoil on enterprise? - Management noted some challenges in specific sectors but emphasized a strong value proposition and ongoing customer acquisition efforts [33] Question: What are the investment plans for the year? - Management indicated that they are investing more efficiently and maintaining a focus on careful capital allocation while still pursuing growth opportunities [37][48]

[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)

Core Insights - Vimeo reported Q2 2025 GAAP earnings per share (EPS) of $0.04, exceeding analyst forecasts by $0.0375, or 1500% [1] - GAAP revenue for Q2 2025 was $104.65 million, slightly below the consensus estimate of $105.76 million and nearly flat year-over-year [1] - Management raised its adjusted EBITDA target for full-year 2025 to $35 million, indicating improved profitability [1] Financial Performance - Q2 2025 EPS (GAAP) was $0.04, down 33.3% from $0.06 in Q2 2024 [2] - Total revenue for Q2 2025 was $104.7 million, a 0.3% increase from $104.4 million in Q2 2024 [2] - Adjusted EBITDA for Q2 2025 was $10.9 million, a decrease of 33.1% from $16.3 million in Q2 2024 [2] - Free cash flow decreased by 12.3% to $17.8 million compared to $20.3 million in Q2 2024 [2] - Gross margin remained stable at 78% year-over-year [2] Business Model and Strategy - Vimeo operates as a Software-as-a-Service (SaaS) company, providing cloud-based tools for video creation, hosting, management, and distribution [3] - The company is focusing on innovation, particularly through the integration of artificial intelligence to enhance its product offerings [4] - Vimeo aims to increase subscriber value and convert free users to paid plans while expanding the adoption of advanced features [4] Segment Performance - The Self-Serve segment reported GAAP revenue of $57.6 million, down 1% year-over-year, with subscriber numbers falling 11% to 1.16 million [6] - Vimeo Enterprise revenue grew 25% to $25.0 million, with bookings rising 9% despite losing a large customer [7] - Other product lines, such as Over-the-Top (OTT) video services and add-on products, experienced revenue declines of 3% and 20%, respectively [8] Product Development - The company delivered 35% of its annual roadmap, focusing on AI-powered features, including new translation services [9] - Management reported that new offerings have started generating positive revenue and pipeline growth [9] Future Outlook - For Q3 2025, management expects GAAP revenue to be around $106 million and adjusted EBITDA at roughly $9 million [10] - The company anticipates low single-digit revenue growth for the full year 2025, with an adjusted EBITDA target raised to $35 million [10] - Operating income is projected to reach approximately $6 million for FY2025, with hopes for double-digit revenue growth in future quarters [10]

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]