Vimeo(US:VMEO)2025-10-28 20:06Merger and Acquisition - The pending merger with Bending Spoons is valued at approximately $1.38 billion, with Vimeo shareholders set to receive $7.85 per share in cash[102]. - The company recorded transaction costs of $5.9 million related to the pending merger during the three months ended September 30, 2025[103]. Revenue and Growth - For the three months ended September 30, 2025, total revenue increased by $1.2 million, or 1%, primarily driven by an 18% increase in Vimeo Enterprise revenue[114]. - Vimeo Enterprise subscribers increased by 10%, and Average Revenue per User (ARPU) rose by 7% during the same period[114]. - For the nine months ended September 30, 2025, Vimeo Enterprise revenue increased by $14.7 million, or 24%, compared to the same period in 2024[117]. - Self-Serve revenue increased by $0.4 million, or 1%, due to a 13% rise in ARPU, despite an 11% decrease in Average Subscribers[115]. - Total bookings for the three months ended September 30, 2025, were $60.8 million, a 14% increase compared to the same period in 2024[106]. Expenses and Profitability - Operating expenses for the three months ended September 30, 2025, totaled 82% of revenue, up from 72% in the same period of 2024[113]. - The net loss for the three months ended September 30, 2025, was 2% of revenue, compared to a net earnings of 9% in the same period of 2024[113]. - For the three months ended September 30, 2025, cost of revenue increased by $1.7 million, or 8%, primarily due to higher hosting costs[118]. - Gross profit for the same period decreased by $0.5 million, or 1%, mainly due to the increase in cost of revenue[119]. - Total operating expenses for the three months ended September 30, 2025, increased by $11.4 million, or 15%, compared to the same period in 2024[123]. - Research and development expenses for the three months increased by $4.6 million, or 17%, due to higher restructuring and employee-related costs[123]. - Adjusted EBITDA for the three months ended September 30, 2025, decreased by $3.7 million to $12.4 million, primarily due to a decrease in gross profit[134]. - Operating (loss) income for the three months ended September 30, 2025, decreased by $12.0 million, primarily due to a decrease in gross profit and an increase in operating expenses[129]. - For the three months ended September 30, 2025, the net loss was $2.336 million compared to net earnings of $9.282 million for the same period in 2024[140]. - Adjusted EBITDA for the three months ended September 30, 2025, was $12.355 million, a decrease of 23.5% from $16.082 million in 2024[140]. Cash Flow and Liquidity - Cash and cash equivalents totaled $320.648 million as of September 30, 2025, slightly down from $325.276 million at the end of 2024[149]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $36.756 million, down from $46.057 million in 2024[150]. - Net cash used in investing activities included $5.3 million for capitalized internal-use software development costs for the nine months ended September 30, 2025[152]. - As of September 30, 2025, Vimeo had no debt and believes its cash and cash equivalents will be sufficient to fund operations for at least the next twelve months[157]. - The increase in deferred revenue was primarily due to an increase in Self-Serve bookings, contributing $6.9 million to working capital changes[151]. - Vimeo's liquidity could be negatively affected by a decrease in demand for its products and services or unexpected expenses[158]. Stock Repurchase - The company repurchased 3.9 million shares at a weighted average cost of $6.10 per share, totaling $23.5 million during the three months ended March 31, 2025[155]. - The company authorized a new stock repurchase program of up to $50 million on April 29, 2025[155].