[Letter to Shareholders](index=3&type=section&id=Letter%20to%20Shareholders) [Q2 2025 Highlights](index=3&type=section&id=Q2%202025%20Highlights) Vimeo demonstrated progress towards profitable growth in Q2 2025, with **6% YoY bookings growth** and improved profitability Q2 2025 Performance Summary | Metric | Performance | Note | | :--- | :--- | :--- | | **Total Revenue** | Flat YoY | Up 2% excluding 'Other' segment | | **Total Bookings** | +6% YoY | Highest growth in 3 years | | **Self-Serve Bookings** | +11% YoY | Highest growth rate in 3 years | | **Vimeo Enterprise Revenue** | +25% YoY | Bookings grew 9% YoY | | **Net Income** | $6 million | Improved sequentially | | **Adjusted EBITDA** | $11 million | Improved sequentially | | **Free Cash Flow** | $18 million | Improved sequentially | - The company is on track with its **2025 plan** to accelerate revenue growth profitably and aims to achieve a line of sight to **double-digit growth** by the end of the year[6](index=6&type=chunk) - Vimeo accelerated its product development, releasing **35%** of its 2025 product roadmap during Q2, and began generating revenue from new investments like **AI translations**[10](index=10&type=chunk) [Q2 Financial Overview](index=5&type=section&id=Q2%20Financial%20Overview) [Total Bookings & Revenue](index=6&type=section&id=Total%20Bookings%20%26%20Revenue) Q2 2025 saw **total bookings grow 6% YoY** for the fourth consecutive quarter, while total revenue remained flat Bookings & Revenue YoY Growth Trend | Metric | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Bookings YoY Change** | (4)% | 0% | 3% | 3% | 6% | | **Revenue YoY Change** | 2% | (2)% | (2)% | (2)% | 0% | [Vimeo Enterprise](index=7&type=section&id=Vimeo%20Enterprise) Vimeo Enterprise achieved strong Q2 performance with **25% YoY revenue growth** and **9% bookings growth**, despite some headwinds Vimeo Enterprise Q2 2025 Key Metrics (YoY) | Metric | Q2 2025 YoY Growth | | :--- | :--- | | Revenue | +25% | | Bookings | +9% | | Subscribers | +10% | | ARPU | +12% | - Notable new customers acquired in the quarter include **Jaguar Land Rover Limited**, **Spotify**, and **FanDuel**[18](index=18&type=chunk) - The company believes the current level of bookings growth can be improved and is not fully reflective of the future opportunity, citing ongoing sales approach changes and a **healthy pipeline** for the second half of the year[18](index=18&type=chunk) [Self-Serve](index=8&type=section&id=Self-Serve) Self-Serve bookings surged **11% YoY** in Q2, the highest in 14 quarters, with revenue decline narrowing to **1% YoY** Self-Serve Q2 2025 Key Metrics (YoY) | Metric | Q2 2025 YoY Growth | | :--- | :--- | | Bookings | +11% | | Revenue | -1% | | Subscribers | -11% | | ARPU | +11% | - The **second-half product roadmap** focuses on modernizing video discovery, simplifying professional workflows, and introducing **AI-driven search** to drive free-to-paid upgrades and increase user engagement[24](index=24&type=chunk)[25](index=25&type=chunk) [OTT, Add-Ons, & Other](index=9&type=section&id=OTT%2C%20Add-Ons%2C%20%26%20Other) Smaller segments experienced mixed Q2 results with continued revenue declines, notably **OTT down 3%** and **Add-Ons down 20%** YoY Segment Revenue YoY Change (Q2 2025) | Segment | Revenue YoY Change | | :--- | :--- | | OTT | -3% | | Add-Ons | -20% | | Other | -48% | - The company is optimistic about **OTT's growth potential** and expects the Add-Ons product line to eventually include meaningful contributions from consumables like **AI credits** and other **pay-as-you-go options**[28](index=28&type=chunk) [Expenses & Profitability](index=10&type=section&id=Expenses%20%26%20Profitability) Vimeo improved Q2 profitability sequentially, with **78% gross margin**, while GAAP operating expenses rose **5% YoY** due to R&D investments Q2 2025 Profitability Metrics | Metric | Q2 2025 Value | YoY Change | | :--- | :--- | :--- | | Gross Margin (GAAP & Non-GAAP) | 78% | Stable | | Net Earnings | $6.3 million | -38% | | Adjusted EBITDA | $10.9 million | -33% | | Adjusted EBITDA Margin | 10% | Down from 16% | | GAAP Operating Expenses | $77.8M | +5% | - Operating expenses increased due to planned investments in growth and innovation, particularly in **R&D (+10% YoY GAAP)** for areas like **payment infrastructure**, **AI**, and **enterprise security**[33](index=33&type=chunk)[34](index=34&type=chunk) - Stock-based compensation expense decreased **39%** year-over-year to **$5 million**, reflecting diligence in limiting shareholder dilution[35](index=35&type=chunk) [Balance Sheet & Cash Flow Highlights](index=12&type=section&id=Balance%20Sheet%20%26%20Cash%20Flow%20Highlights) Vimeo ended Q2 with **$303 million cash**, generating **$19 million cash from operations** and **$18 million free cash flow** Q2 2025 Cash Position & Flow | Metric | Q2 2025 Value | | :--- | :--- | | Cash and cash equivalents | $303 million | | Cash provided by operations | $19 million | | Free Cash Flow | $18 million | - The Board authorized an additional **$50 million** share repurchase program on **April 29, 2025**[45](index=45&type=chunk) - Shares outstanding decreased to **165.4 million** at the end of Q2, down from **166.6 million** in the prior year[46](index=46&type=chunk) [Guidance](index=12&type=section&id=Guidance) Vimeo projects Q3 revenue of **~$106 million** and **Adjusted EBITDA of ~$9 million**, raising full-year Adjusted EBITDA guidance to **~$35 million** Q3 2025 Guidance | Metric | Q3 2025 Outlook | | :--- | :--- | | Revenue | ~$106 million | | Operating income | ~$2 million | | Adjusted EBITDA | ~$9 million | Full Year 2025 Guidance | Metric | Full Year 2025 Outlook | Change from Prior Guidance | | :--- | :--- | :--- | | Revenue Growth | Low single digits | In line | | Operating income | ~$6 million | N/A | | Adjusted EBITDA | ~$35 million | Increased from $25 million-$30 million | [GAAP Financial Statements](index=15&type=section&id=GAAP%20FINANCIAL%20STATEMENTS) [Consolidated Statement of Operations](index=15&type=section&id=Consolidated%20Statement%20of%20Operations) Q2 2025 revenue was **$104.7 million** (flat YoY), with operating income at **$3.7 million** and net earnings at **$6.3 million** Consolidated Statement of Operations (Three Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | $104,650 | $104,376 | | **Gross profit** | $81,503 | $81,698 | | **Operating income** | $3,724 | $7,461 | | **Net earnings** | $6,285 | $10,121 | | **Diluted EPS** | $0.04 | $0.06 | [Consolidated Balance Sheet](index=16&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, Vimeo reported **total assets of $620.6 million**, **total liabilities of $229.5 million**, and **$303.0 million in cash** Consolidated Balance Sheet Highlights (as of June 30, 2025) | ($ in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $302,956 | $325,276 | | **Total current assets** | $350,364 | $374,656 | | **Total assets** | $620,638 | $642,821 | | **Deferred revenue** | $170,724 | $161,923 | | **Total liabilities** | $229,546 | $234,024 | | **Total shareholders' equity** | $391,092 | $408,797 | [Consolidated Statement of Cash Flows](index=17&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Q2 2025 net cash from operations was **$19.4 million** (flat YoY), with **$2.4 million used in investing** and **$3.8 million in financing** Consolidated Statement of Cash Flows (Three Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $19,369 | $19,698 | | **Net cash used in investing activities** | ($2,449) | $0 | | **Net cash used in financing activities** | ($3,830) | ($13,215) | [Disaggregated Revenue and Operating Metrics](index=18&type=section&id=Disaggregated%20Revenue%20and%20Operating%20Metrics) [Disaggregated Revenue and Operating Metrics Summary](index=18&type=section&id=Disaggregated%20Revenue%20and%20Operating%20Metrics_summary) Q2 2025 saw **Self-Serve revenue of $57.6 million** and **Vimeo Enterprise revenue of $25.0 million**, reflecting strong bookings Q2 2025 Disaggregated Metrics | Segment | Revenue ($M) | Subscribers (thousands) | ARPU ($) | Bookings ($M) | | :--- | :--- | :--- | :--- | :--- | | **Self-Serve** | 57.6 | 1,156.5 | 197 | 65.0 | | **Vimeo Enterprise** | 25.0 | 4.0 | 24,705 | 25.6 | | **OTT** | 12.3 | 3.1 | 15,720 | 7.4 | [Reconciliations of GAAP to Non-GAAP Measures](index=19&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) [Reconciliation of Net Earnings to Adjusted EBITDA](index=20&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20EBITDA) Q2 2025 GAAP Net Earnings of **$6.3 million** reconciled to **Adjusted EBITDA of $10.9 million**, and **Free Cash Flow was $17.8 million** Q2 2025 Reconciliation of Net Earnings to Adjusted EBITDA ($ in millions) | Metric | Q2 2025 | | :--- | :--- | | Net earnings | $6.3 | | Operating income | $3.7 | | Stock-based compensation expense | +$5.1 | | Restructuring costs | +$1.5 | | Other adjustments | +$0.6 | | **Adjusted EBITDA** | **$10.9** | Q2 2025 Free Cash Flow Calculation ($ in millions) | Metric | Q2 2025 | | :--- | :--- | | Net cash provided by operating activities | $19.4 | | Add: Restructuring costs | +$0.8 | | Less: Internal-use software development costs | ($2.4) | | **Free Cash Flow** | **$17.8** | [Reconciliation of GAAP to Non-GAAP Financial Outlook](index=21&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Outlook) Vimeo reconciled Q3 2025 operating income of **$2.2 million** to **Adjusted EBITDA of $9.0 million**, and full-year to **$35.0 million** Full Year 2025 Outlook Reconciliation ($ in millions) | Metric | Full Year 2025 | | :--- | :--- | | Operating income | $6.2 | | Stock-based compensation expense | +$26.8 | | Depreciation & Amortization | +$2.0 | | **Adjusted EBITDA** | **$35.0** | [Principles of Financial Reporting & Key Terms](index=22&type=section&id=Principles%20of%20Financial%20Reporting%20%26%20Key%20Terms) [Definitions of Non-GAAP Measures](index=22&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines non-GAAP measures, including Adjusted EBITDA (operating income adjusted for non-cash items) and Free Cash Flow - **Adjusted EBITDA** is defined as **operating income (loss)** excluding **stock-based compensation**, **depreciation**, **amortization of intangibles**, changes in fair value of contingent consideration, and **restructuring costs**[69](index=69&type=chunk) - **Free Cash Flow** is defined as **net cash from operating activities**, excluding **restructuring costs**, less **capital expenditures** and **capitalized internal-use software development costs**[74](index=74&type=chunk) [Operating Metrics and Key Terms](index=24&type=section&id=Operating%20Metrics%20and%20Key%20Terms) This section defines key business segments (Self-Serve, Enterprise, OTT) and operating metrics like Subscribers, ARPU, and Bookings - **Self-Serve** refers to subscription plans sold online, while **Vimeo Enterprise** is the offering for teams and organizations sold through a direct sales force[81](index=81&type=chunk)[82](index=82&type=chunk) - **Subscribers** are defined as the number of users with an **active paid plan**, counting each customer once per subscription type (Self-Serve, Enterprise, OTT) regardless of the number of individual users on the account[86](index=86&type=chunk) - **Bookings** consist of fixed fees for SaaS services that subscribers have **committed to pay** during their subscription period, typically **12 months**[88](index=88&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) [Dilutive Securities](index=25&type=section&id=Dilutive%20Securities) As of July 31, 2025, Vimeo had **165.7 million common shares outstanding**, with estimated dilution of **5.1 million shares** at $4.00 Estimated Dilution at Various Stock Prices (as of 7/31/2025) | Share Price | Common Stock Outstanding (M) | Total Estimated Dilution (M) | % Dilution | Total Estimated Diluted Shares (M) | | :--- | :--- | :--- | :--- | :--- | | **$4.00** | 165.7 | 5.1 | 3.1% | 170.8 | | **$6.00** | 165.7 | 5.2 | 3.1% | 170.9 | | **$8.00** | 165.7 | 6.0 | 3.6% | 171.7 | | **$10.00** | 165.7 | 6.6 | 4.0% | 172.3 | [Cautionary Statement Regarding Forward-Looking Information](index=26&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This section provides a cautionary statement regarding forward-looking information, highlighting risks and uncertainties impacting actual results - The report contains **forward-looking statements** subject to **risks and uncertainties** that could cause actual results to differ materially from expectations[95](index=95&type=chunk)

Group 1 - Vimeo, Inc. will announce its second quarter 2025 earnings report on August 4, 2025, after market close [1] - A video conference will be livestreamed on the same day at 5:00 p.m. ET to address questions regarding the earnings report [1] - The earnings results 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, catering to a diverse community of users [2] - The platform supports millions of users, including creative storytellers and large global teams, with videos that garner billions of views monthly [2]

Core Points - Vimeo has launched the Vimeo Short Film Grant to support emerging filmmakers, providing each winner with $30,000 in funding and access to professional video equipment [1][2] - The initiative aims to foster originality and creativity in storytelling, emphasizing the importance of human-curated content in an algorithm-driven media landscape [2][3] - A prestigious jury selected the winners based on criteria such as originality, artistic merit, and overall impact, highlighting the quality and promise of the submitted projects [2][3] Company Overview - Vimeo is recognized as one of the largest and most trusted private video networks globally, serving millions of users and facilitating billions of views each month [1][6] - The company is committed to enhancing the video experience and supporting creative storytellers, aligning with its mission to promote innovative content [2][4] Equipment and Support - Grant recipients will have access to advanced equipment from Nikon and RED, including the new Z mount V-RAPTOR [X] and KOMODO-X cinema cameras, as well as Nikon's award-winning mirrorless cameras [3][4] - Winners will also receive mentorship from industry professionals and distribution support on Vimeo, including exclusive screenings in major cities [3][4] Filmmaker Highlights - The five selected filmmakers represent diverse and compelling narratives, showcasing unique storytelling perspectives [5] - Notable projects include themes of alien abduction, personal redemption, complex relationships, and the exploration of memory and loss [5]

Core Insights - Vimeo, Inc. has appointed Rose Frawley as Chief People Officer, focusing on global talent strategy and organizational development [1][2] - Frawley's experience includes over 20 years in human resources, with a strong background in building high-performing teams in technology and data companies [2] - The company emphasizes a people-first strategy, aiming to cultivate a culture of trust and engagement among employees [1][3] Company Overview - Vimeo is recognized as the largest private video network globally, serving millions of users and facilitating billions of video views each month [4] - The platform aims to provide innovative video experiences, catering to a diverse community from creative storytellers to large corporate teams [4]

Core Insights - Vimeo, Inc. has elected three new members to its Board of Directors: Adam Cahan, Lydia Jett, and Kirsten Kliphouse, during the Annual Stockholder Meeting on June 9, 2025 [1][2] - The company also announced the departure of two Board members, Alesia J. Haas and Ida Kane, who had been with Vimeo since its spin-off in 2021 [1][2] Board Member Profiles - Adam Cahan brings over 25 years of experience in media technology and telecommunications, having held senior roles at companies like Yahoo, MTV Networks, Google, and NBC Universal [4] - Lydia Jett is a Founding Partner at Softbank Investment Advisors with over 20 years of experience in investing and serving on boards of leading technology businesses [4] - Kirsten Kliphouse recently served as President of Google Cloud Americas and has held leadership positions at Red Hat and Microsoft, as well as being CEO of Yardarm Technologies [4] Company Overview - Vimeo is recognized as one of the largest private video networks globally, serving millions of users, including creative storytellers and large corporations, with videos receiving billions of views monthly [3]

Financial Data and Key Metrics Changes - Proxies representing more than 91% of the shares of the company's outstanding capital stock eligible to vote have been received, indicating strong shareholder engagement [6] - Preliminary voting results show that each of the nine director nominees is elected to the board, the appointment of Ernst and Young is ratified, and the compensation of named executive officers is approved [14] Business Line Data and Key Metrics Changes - No specific financial data or key metrics related to individual business lines were provided in the meeting [1][2] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [1][2] Company Strategy and Development Direction and Industry Competition - The company aims to be one of the most trusted video platforms globally, focusing on child safety and compliance with laws and industry practices [18] - The management emphasizes a commitment to supporting customers and creators with diverse opinions while avoiding political positions [18] Management Comments on Operating Environment and Future Outlook - Management acknowledges the importance of child safety and the company's investment in ensuring compliance with relevant policies and laws [18] - The company is focused on maintaining a neutral stance on divisive social issues while serving a wide variety of content [18] Other Important Information - The meeting was conducted virtually, and only stockholders of record as of April 21, 2025, or their appointed proxies were allowed to ask questions and vote [3][4] Q&A Session All Questions and Answers Question: Will Vimeo move back to neutrality and avoid radical divisive activist posturing? - Management responded that the company takes child safety seriously and does not take political positions, focusing instead on supporting a variety of opinions within legal frameworks [18]

Core Insights - Vimeo, a leading private video network, announced participation in upcoming financial conferences [1][3] - The company emphasizes its role as an innovative video experience platform serving millions of users [2] Company Participation in Conferences - Vimeo's CFO, Gillian Munson, will participate in the Jefferies Public Technology Conference on May 28, 2025, at 8:30 AM ET [3] - Additionally, Vimeo will be present at the TD Cowen 53rd Annual Technology, Media & Telecom Conference on May 29, 2025, at 1:15 PM ET [3] Company Overview - Vimeo is recognized as the world's most innovative video experience platform, enabling high-quality video creation [2] - The platform serves a diverse community, including creative storytellers and large global teams, with videos receiving billions of views monthly [2]

Core Viewpoint - Tough macroeconomic conditions are significantly impacting struggling companies in the small/mid-cap tech sector, with Vimeo identified as one of the companies nearing a critical point [1]. Company Analysis - Vimeo is highlighted as a struggling company within the small/mid-cap tech space, facing challenges due to adverse macroeconomic conditions [1]. - The article suggests that Vimeo may be at a pivotal moment, indicating potential risks for investors [1]. Industry Context - The article reflects on the broader challenges faced by small/mid-cap tech companies, emphasizing that many are nearing the end of their operational viability due to tough economic conditions [1].

Core Insights - Vimeo has been recognized for its achievements in video innovation, being included in Fast Company's World's Most Innovative Companies 2025 list [1] - The company has received multiple awards, including recognition for its AI-powered video hub, Vimeo Central, which was named Best Digital Video Platform and Best Use of AI at the 2025 Digiday Streaming and Video Awards [2] - Vimeo earned Honoree distinctions at the 29th Annual Webby Awards for its "Best of the Year 2024" campaign and a hero video for the REFRAME conference [3] User Feedback and Market Position - Vimeo has achieved the 1 ranking in the video platforms category on G2, reflecting high user satisfaction and market leadership [5] - The company received 50 badges across various categories, including Leader badges for Enterprise and Mid-Market segments, and awards for ease of use and best estimated ROI [5][4] - User feedback on G2 highlights Vimeo's strengths in customer satisfaction and usability, reinforcing its market presence [4] Company Vision and Commitment - The CEO of Vimeo emphasized the importance of video as a medium for storytelling and expressed pride in the company's recognition for innovation and customer focus [6] - Vimeo is committed to leading the next generation of video technology, aiming to support professional video storytellers [6]

Core Insights - The future of entertainment is expected to be free for consumers, with a focus on diversity in storytelling and audience tastes, moving away from traditional Hollywood norms [2][3] - Competition in the media landscape should not dictate strategy; companies should leverage their strengths and focus on unique value propositions [5][6][9] Company Overview - Anjali Sud became CEO of Vimeo at 33 and took the company public in 2021; she is now leading Fox Corp.'s Tubi, which has seen rapid growth, reaching nearly 100 million monthly active users [3] - Tubi hosted the Super Bowl, marking a significant streaming event, showcasing its growing influence in the streaming market [3] Industry Trends - The need for more tools and space for creators is driving business strategies, with a focus on enabling diverse creators to produce high-quality content [6][7] - Understanding customer needs is fundamental for developing successful business strategies [8] Leadership Philosophy - Companies should prioritize internal debate and encourage dissenting views to foster innovation [12][13] - A balance between urgency in execution and patience in vision is essential for long-term success [15] Personal Insights from Leadership - Imposter syndrome is a common experience for CEOs, and embracing authenticity can enhance leadership effectiveness [16][18] - The importance of sleep as a key factor in maintaining productivity and managing work-life balance is emphasized [20][21] Gender and Leadership - Sud aims to create opportunities for women in leadership roles, reflecting on her own experiences as a young female CEO [22]