Vimeo(VMEO)2024-11-04 21:03Revenue and Financial Performance - Vimeo generated $105 million in revenue in Q3, with Vimeo Enterprise growing revenue by 42% and reaching $100 million in annualized bookings[3] - Vimeo's total bookings were $100 million, with a gross margin of 79%, net income of $9 million, and Adjusted EBITDA of $16 million[8] - Vimeo's Adjusted EBITDA margin was 15%, with net income increasing by $1 million year-over-year to $9 million[26] - Q3 2024 revenue was $104.564 million, a slight decrease from $106.253 million in Q3 2023[29] - Q3 2024 net earnings were $9.282 million, up from $8.464 million in Q3 2023[29] - Total revenue for Q3 2024 was $104.6 million, a slight decrease from $106.3 million in Q3 2023[32] - Adjusted EBITDA for Q3 2024 was $16.1 million, with a margin of 15%, up from $12.8 million and 12% margin in Q3 2023[34] - Free Cash Flow for Q3 2024 was $21.0 million, an increase from $16.6 million in Q3 2023[34] - Non-GAAP Gross Margin remained stable at 79% in Q3 2024, consistent with Q3 2023[33] - Adjusted EBITDA outlook for Q4 2024 is projected at $10.0 million[35] Vimeo Enterprise Performance - Vimeo Enterprise bookings grew 39% to $25 million, representing 25% of total bookings, with subscribers increasing by 26% and ARPU up 11% year-over-year[12] - Vimeo Enterprise serves the eight largest big-box retailers, top ten quick-service restaurants, and seven of the top eight financial services companies[5] - Vimeo Enterprise revenue grew significantly to $21.7 million in Q3 2024, up from $15.2 million in Q3 2023[32] - Vimeo Enterprise ARPU increased to $23,043 in Q3 2024, up from $20,848 in Q3 2023[32] - Vimeo Enterprise offers advanced features like security, custom permissions, and marketing integrations, often serving as an upgrade from Self-Serve & Add-Ons[47] Self-Serve & Add-Ons Performance - Vimeo's Self-Serve & Add-Ons bookings declined 8%, with revenue down 6% and subscribers falling 9%, partially offset by a 4% increase in ARPU[16] - Self-Serve & Add-Ons ARPU increased to $209 in Q3 2024, compared to $202 in Q3 2023[32] Cash Flow and Financial Position - Vimeo's cash and cash equivalents increased to $325 million, with cash from operations up 25% year-over-year to $21 million[27] - Cash and cash equivalents increased to $324.781 million as of September 30, 2024, from $301.372 million at the end of 2023[30] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $46.057 million, up from $27.803 million in the same period in 2023[31] - Total assets as of September 30, 2024, were $642.977 million, up from $622.920 million at the end of 2023[30] - Total shareholders' equity increased to $409.411 million as of September 30, 2024, from $382.232 million at the end of 2023[30] Share Repurchase and Stock-Based Compensation - Vimeo repurchased 1.3 million shares of common stock in Q3 at an average cost of $3.83 per share, with $31 million remaining in the share repurchase authorization[28] - Stock-based compensation expense for the nine months ended September 30, 2024, was $23.620 million, compared to $5.429 million in the same period in 2023[29] - Stock-based compensation expense totaled $8.3 million in Q3 2024, up from $7.1 million in Q3 2023[34] OTT and Other Products - Vimeo's OTT business grew to 82% of Other revenue, up from 62% in Q3'22, with three new six-figure deals added in the quarter[17] - Other products include OTT video monetization, Magisto, Livestream, Wibbitz, and WIREWAX, expanding Vimeo's service portfolio[48] Operating Expenses and Profitability - Vimeo's GAAP and non-GAAP operating expenses were down 4% and 7% year-over-year, respectively, with quarterly gross profit remaining stable at $83 million[21][22] - Non-GAAP Operating Expenses decreased to $66.9 million in Q3 2024 from $71.9 million in Q3 2023[33] Guidance and Forward-Looking Statements - Q4 2024 revenue guidance is expected to be around $100 million[29] - Q4 2024 operating income guidance is approximately $2 million[29] - Q4 2024 adjusted EBITDA guidance is nearly $10 million, depending on investments[29] - Forward-looking statements highlight risks including economic conditions, regulatory changes, competition, and international expansion challenges[54] Subscribers and ARPU Calculation - Subscribers are counted per active subscription plan, with overlapping plans counted separately across Self-Serve, Enterprise, and Other categories[49] - Average Revenue per User (ARPU) is calculated by annualizing revenue and dividing by Average Subscribers[50] Bookings and Financial Metrics - Bookings represent fixed SaaS fees paid or committed, less refunds and chargebacks, measured at the end of the period[51] - Estimated dilution from securities ranges from 4.3% to 6.2% depending on stock price, with total diluted shares between 173.0M and 176.1M[52] Non-Operational Adjustments - Contingent consideration adjustments are excluded from performance assessment as they are non-operational and not indicative of current or future performance[45] - Restructuring costs, including severance and post-employment benefits, are considered non-recurring and excluded from performance evaluation[46] Market Position and User Base - Vimeo serves millions of users globally, with videos receiving billions of views monthly, positioning it as a leading video experience platform[55]