Core Insights - Vimeo, Inc. reported a revenue of $103.16 million for the quarter ended December 2024, reflecting a decrease of 2.3% year-over-year, while EPS was $0.01 compared to $0.05 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $100.6 million by 2.55%, but the EPS fell short of the consensus estimate of $0.03 by 66.67% [1] Financial Performance Metrics - Vimeo's stock has returned +5.7% over the past month, outperforming the Zacks S&P 500 composite's +2.4% change, and currently holds a Zacks Rank 3 (Hold) [3] - Average Revenue Per User (ARPU) for Self-Serve & Add-Ons was $208, slightly above the estimated $207.95 [4] - ARPU for Other was $1,139, exceeding the estimated $1,055.45 [4] - ARPU for Vimeo Enterprise was $23,493, surpassing the average estimate of $22,998.88 [4] - Revenue from Other was $14.81 million, above the estimated $13.09 million, but showed a decline of 15.7% compared to the year-ago quarter [4] - Revenue from Vimeo Enterprise reached $23 million, slightly above the estimated $22.85 million, with a significant increase of 36.8% year-over-year [4] - Revenue from Self-Serve & Add-Ons was $65.35 million, exceeding the estimated $64.71 million, but down 8.2% from the previous year [4]

Core Viewpoint - Vimeo is optimistic about its performance in 2024 and is eager to discuss future plans for 2025 during the Q4 earnings call [3]. Financial Performance - The company has provided key metrics and non-GAAP financial measures, which should be considered alongside GAAP measures for a comprehensive understanding of its financial performance [2]. - Additional financial performance details, including reconciliations with GAAP measures, are available in the shareholder letter and SEC filings [2]. Future Outlook - The management team is excited to share insights about Vimeo's future and strategic plans for 2025 [3].

Financial Data and Key Metrics Changes - The company reported that its EBITDA in 2024 is three times all the EBITDA created in the three years prior, indicating significant financial improvement [24] - The company plans to invest up to $30 million, which is expected to yield an EBITDA of about $25 to $30 million [25][72] - The overall revenue growth is projected to be in the low single digits, with expectations for acceleration through the year, aiming for double-digit growth by the end of 2025 [26][82] Business Line Data and Key Metrics Changes - In Vimeo Enterprise, new products launched in 2024 accounted for 30% of new bookings, with AI alone contributing to 40% of bookings [23] - The enterprise business is experiencing double-digit unit growth in new subscribers and double-digit growth in Average Revenue Per User (ARPU) and Average Order Value (AOV) [36] - The self-serve segment faced pressure but saw price increases across more than half the business, resulting in double-digit AOV growth [53][65] Market Data and Key Metrics Changes - Over 45% of the company's business is coming from outside the United States, with increasing demand for multilingual video capabilities [16] - Approximately 40% of deals in Q4 were driven by the company's AI capabilities, highlighting the growing importance of AI in their offerings [17][76] Company Strategy and Development Direction - The company is focusing on investing in AI, security, and various video formats to enhance its offerings and meet customer demands [30][31] - A new chief revenue officer has been appointed to better address the needs of both smaller and larger customers, indicating a strategic shift in sales approach [48] - The integration of OTT and Vimeo Enterprise teams is aimed at leveraging the growing demand for streaming in enterprise video solutions [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the importance of customer feedback in driving product development and growth [78] - The company is confident in its ability to turn the self-serve segment back to growth, supported by stable retention rates despite price increases [65][66] - The management believes that the investments made will significantly enhance growth potential and profitability [72][75] Other Important Information - The company has successfully reduced its non-GAAP operating expenses from $90 million to approximately $70 million over the past couple of years, providing a stable foundation for future investments [75] - The management highlighted the importance of AI capabilities in driving customer engagement and satisfaction, which is expected to contribute to future growth [76] Q&A Session Summary Question: Can you talk about customer adoption of AI in the enterprise? - Management noted that video usage in enterprises is exploding, with AI becoming essential for managing video compliance and accessibility [14][15] Question: Can you discuss the investment plans for this year? - The company plans to deploy up to $30 million, with expectations of significant returns in terms of EBITDA and growth [22][25] Question: What are the key drivers for enterprise booking growth in Q4? - The enterprise business is seeing double-digit growth in new subscribers and ARPU, driven by new features and a shift to higher-end products [36][38] Question: How is the self-serve segment performing? - The self-serve segment is under pressure but has seen price increases leading to higher AOVs, with management optimistic about returning to growth [52][53] Question: What is the company's approach to capital allocation? - The company is focused on balancing organic investments with returning cash to shareholders, having bought back over $30 million of stock [71][72]

Group 1: Earnings Performance - Vimeo, Inc. reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.03 per share, representing a -66.67% earnings surprise [1] - The company posted revenues of $103.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.55%, but down from $105.54 million year-over-year [2] - Over the last four quarters, Vimeo has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Vimeo shares have increased approximately 4.8% since the beginning of the year, compared to the S&P 500's gain of 4.2% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.04 for the coming quarter and $0.16 for the current fiscal year [7] - The estimate revisions trend for Vimeo is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Technology Services industry, to which Vimeo belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Vacasa, Inc., is expected to report a quarterly loss of $3.07 per share, with revenues projected at $151.03 million, down 14.9% year-over-year [9]

Financial Performance - Revenue for 2024 was $417,006, a slight decrease of 0.05% compared to $417,214 in 2023[233]. - Gross profit for 2024 increased to $326,275, compared to $325,638 in 2023, reflecting a growth of 0.2%[233]. - Operating income for 2024 was $18,683, up from $13,047 in 2023, marking a significant increase of 43.5%[233]. - Net earnings for 2024 were $27,012, representing a 22.5% increase from $22,032 in 2023[236]. - Basic earnings per share for 2024 rose to $0.16, compared to $0.13 in 2023, an increase of 23.1%[233]. - Total revenue for 2024 was $417.0 million, a slight decrease of 0.05% compared to $417.2 million in 2023[287]. - Revenue from Self-Serve & Add-Ons decreased by 4.5% from $285.5 million in 2023 to $271.7 million in 2024[287]. - Vimeo Enterprise revenue increased by 47.3% from $56.5 million in 2023 to $83.2 million in 2024[287]. - U.S. earnings before income taxes for 2024 were $30.3 million, up from $15.2 million in 2023[291]. - The total income tax provision for 2024 was $6.7 million, significantly higher than $2.9 million in 2023[297]. Market and Competition - Revenue growth has declined recently, with factors such as increased competition and slowing demand potentially impacting future performance[42]. - The company faces intense competition from large social media networks and niche software providers, which may impact its market position[52]. - The total addressable market for the company's video services may be smaller than expected, as not all businesses may be willing to pay for software-based video services[45]. - The company relies on various factors for revenue growth, including brand recognition, macroeconomic conditions, and the ability to retain and upsell existing subscribers[43]. Operational Challenges - Service interruptions can occur due to technical errors or high traffic, potentially leading to lost business and increased subscriber churn[58]. - Hosting and delivery costs are a significant component of the cost of goods sold, and unexpected increases could materially affect gross margins[59]. - The company depends on third-party platforms for app distribution, which could impose significant fees and control over marketing[60]. - The integration with third-party vendors is crucial for core services, and changes in their policies could affect the attractiveness of the company's offerings[63]. - The company has experienced interruptions in third-party payment processing, which could lead to revenue loss and increased costs[68]. - The company faces challenges in attracting and retaining skilled employees due to intense competition in the technology sector, which could impact its operational capabilities[79]. Legal and Regulatory Risks - The company is facing lawsuits related to third-party copyright infringement, which could lead to significant legal costs and liabilities[87]. - New regulatory regimes, such as the DSM Directive in the EU, may increase operational costs and liabilities for user-uploaded content, potentially impacting financial prospects[88]. - Legislative proposals in the U.S. and other regions could limit protections for online services, increasing operational costs and necessitating changes to the business model[89]. - The company may incur fines or service restrictions in certain countries due to non-compliance with content removal regulations, affecting service availability[90]. - Section 230 of the Communications Decency Act, which limits liability for hosting illegal content, may be amended, potentially increasing legal risks for the company[91]. - The company is subject to evolving data privacy laws, which could require significant changes to data handling practices and increase operational complexity[94]. - A data breach could lead to regulatory actions, litigation, and reputational harm, impacting customer confidence and financial results[97]. - Changes in privacy laws, such as those in California, may limit the company's ability to collect and process personal data, affecting product development[98]. - The company faces regulatory risks and litigation related to privacy laws, including the California Consumer Privacy Act and the Illinois Biometric Information Privacy Act[110]. - Non-compliance with export control laws could result in substantial fines and penalties, adversely affecting business operations[117]. Financial Position - Total assets increased to $642.8 million as of December 31, 2024, from $622.9 million in 2023[231]. - The total shareholders' equity rose to $408.8 million as of December 31, 2024, compared to $382.2 million in 2023[231]. - Cash and cash equivalents at the end of 2024 were $325,493, up from $301,436 at the end of 2023, reflecting an increase of 8.4%[241]. - Vimeo's cash and cash equivalents primarily consist of money market funds with a credit rating of Aaa, with no more than $100 million invested in any single bank or money market mutual fund as of December 31, 2024[259]. - The company has a dual-class common stock structure, with Class B common stock having 10 votes per share compared to 1 vote for common stock[132]. Employee and Operational Impact - The company has 64 employees in Ukraine, primarily focused on research and development, and the ongoing conflict has affected their ability to work[83]. - The company has 103 employees in Israel, and operations have been impacted due to the ongoing conflict with Hamas, potentially affecting business continuity[85]. Investment and Future Outlook - The company has a history of losses and cannot ensure sustained profitability in the foreseeable future, necessitating continued investment in research and development to attract and retain users[41]. - The company may engage in merger and acquisition activities that could disrupt business operations and dilute stockholder value, with potential difficulties in integrating acquired technologies[70]. - Compliance with global regulatory requirements may increase costs and restrict market access, impacting the company's growth potential[105]. - Increased scrutiny on environmental, social, and governance (ESG) practices may lead to higher compliance costs and impact the company's reputation[118]. - The market price of the company's common stock has been volatile, influenced by operating results and economic conditions, which could lead to investment losses[124].

Core Insights - Vimeo released its fourth quarter and full year 2024 shareholder letter, which is available on its investor relations website [1] Company Overview - Vimeo is recognized as the world's most innovative video experience platform, enabling users to create high-quality video experiences [2] - The platform serves a diverse community, including creative storytellers and large global teams, with videos receiving billions of views each month [2]

Group 1 - Vimeo released its fourth quarter and full year 2024 shareholder letter on February 19, 2025 [1] - Vimeo is recognized as the world's most innovative video experience platform, enabling high-quality video creation [2] - The platform serves millions of users, including creative storytellers and large global teams, with videos receiving billions of views monthly [2]

Financial Performance - Vimeo ended 2024 with its highest quarterly bookings in 10 quarters, achieving a bookings growth of 3% in Q4 despite a 2% decline in revenue[6]. - The company reported a gross margin of 78% and net earnings of $27 million, with Adjusted EBITDA reaching an all-time high of $55 million, over 3 times the total Adjusted EBITDA generated from 2021-2023 combined[5]. - Revenue for Q4 2024 was $103,156 thousand, a decrease of 2.6% from $105,544 thousand in Q4 2023[51]. - Gross profit for Q4 2024 was $80,254 thousand, down from $82,287 thousand in Q4 2023, reflecting a gross margin of 77.7%[51]. - Operating income decreased significantly to $1,268 thousand in Q4 2024 from $5,574 thousand in Q4 2023[51]. - Net earnings for Q4 2024 were $1,536 thousand, compared to $8,395 thousand in Q4 2023, resulting in basic and diluted earnings per share of $0.01[51]. - Adjusted EBITDA for Q4 2024 was $10.7 million, down from $13.3 million in Q4 2023, indicating a decline of 19.5%[61]. - Free Cash Flow for Q4 2024 was $10.8 million, consistent with $10.0 million in Q4 2023, showing an 8% increase[61]. - The company reported a net loss of $1.5 million in Q4 2024, compared to a net income of $8.4 million in Q4 2023[61]. Bookings and Subscriber Growth - Vimeo Enterprise bookings grew over 50% from customers with $100,000+ ARR, with annualized bookings exceeding $100 million for the second consecutive quarter[5]. - Subscriber growth reached 19%, with approximately 4,000 subscribers and a 12% increase in ARPU to over $23,000[17]. - Vimeo's Self-Serve & Add-Ons category saw a decline in revenue and bookings by 8% and 6% year-over-year in Q4, but average order values increased by approximately 30% due to new pricing[27]. - Self-Serve & Add-Ons revenue decreased to $65,350 thousand in Q4 2024 from $71,171 thousand in Q4 2023, while Vimeo Enterprise revenue increased to $22,998 thousand from $16,808 thousand[57]. - The number of Self-Serve & Add-Ons subscribers decreased to 1,227.7 thousand in Q4 2024 from 1,379.7 thousand in Q4 2023[57]. Cash and Assets - In Q4, Vimeo's cash balance increased to $325 million, up $24 million from 2024, after repurchasing nearly 6 million shares[6]. - Total current assets increased to $374,656 thousand as of December 31, 2024, compared to $351,468 thousand as of December 31, 2023[54]. - Cash and cash equivalents at the end of Q4 2024 were $325,493 thousand, up from $301,436 thousand at the end of Q4 2023[56]. - Total liabilities decreased slightly to $234,024 thousand as of December 31, 2024, from $240,688 thousand as of December 31, 2023[54]. Future Outlook and Strategy - The company plans to increase innovation investment in 2025, targeting double-digit growth in bookings and revenue, with Vimeo Enterprise and OTT/streaming representing 38% of bookings and 34% of revenue[8]. - The company anticipates Q1 2025 revenue near $100 million, with an operating loss of approximately $9 million and Adjusted EBITDA slightly greater than breakeven[49]. - The company anticipates an operating loss of $9.4 million for Q1 2025, with an expected Adjusted EBITDA of $27.5 million for the full year 2025[65]. - Vimeo's OTT product delivered mid-single-digit bookings growth in Q4, with a focus on drawing streaming customers closer to Vimeo Enterprise offerings in 2025[34]. - The company plans to utilize share repurchase authorization as part of its future strategy[95]. - The company is focused on expanding into additional international markets and enhancing its value proposition to retain paying subscribers[95]. Expenses and Cost Management - The company achieved a significant reduction in expenses, with over $100 million run rate cut since early 2022, positioning itself for future investments[36]. - Total operating expenses increased to $78,986 thousand in Q4 2024 from $76,713 thousand in Q4 2023, with R&D expenses rising to $27,678 thousand[51]. - GAAP Research and Development expense increased to $27.7 million in Q4 2024, up from $26.0 million in Q4 2023, representing an increase of 6.5%[60]. - GAAP Sales and Marketing expense decreased to $31.1 million in Q4 2024 from $35.0 million in Q4 2023, a reduction of 11.1%[60]. - Non-GAAP General and Administrative expense for Q4 2024 was $15.9 million, slightly up from $14.6 million in Q4 2023, reflecting an increase of 8.9%[60]. - Operating Income Margin for Q4 2024 was 1%, down from 5% in Q4 2023, indicating a decline in profitability[61]. Stock and Dilution - As of February 13, 2025, the total common stock outstanding is 164.9 million shares[92]. - The estimated dilution from stock appreciation rights (SARs) and stock options is 8.8 million shares, with a strike price of $5.46[92]. - The total estimated dilution is projected to be between 6.7 million and 9.0 million shares, resulting in a dilution percentage ranging from 4.1% to 5.4%[92]. - The total estimated diluted shares outstanding will increase from 171.5 million to 173.8 million shares by February 2025[92]. Risks and Market Position - The company anticipates future operational results and financial conditions to be influenced by various risks, including economic changes and competition in the online video category[95]. - Vimeo serves millions of users, with videos on its platform receiving billions of views each month[96]. - Vimeo's management does not undertake to update forward-looking statements, which reflect their views as of the date of the communication[95].

The upcoming report from Vimeo, Inc. (VMEO) is expected to reveal quarterly earnings of $0.03 per share, indicating a decline of 40% compared to the year-ago period. Analysts forecast revenues of $100.6 million, representing a decrease of 4.7% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings release, it is of ...

NEW YORK, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Vimeo, Inc. (NASDAQ: VMEO) today announced the date for its fourth quarter and fiscal year 2024 earnings report and earnings video event. After the close of market trading on Wednesday, February 19, 2025, Vimeo will post its results on the Investor Relations section of its website at https://www.vimeo.com/investors. On the same day, at 5:00 p.m. ET, Vimeo will livestream a video conference to answer questions. The live stream and replay of the video will be access ...