Why Vimeo Stock Is Plummeting Today

Core Viewpoint - Vimeo's stock experienced significant sell-offs following mixed fourth-quarter results, with revenue exceeding expectations but profits falling short, leading to negative investor sentiment [1][2][6] Financial Performance - Vimeo reported earnings of $0.01 per share on revenue of$103.16 million for the fourth quarter, while Wall Street analysts had estimated a profit of $0.03 per share on revenue of$100.59 million [3] - Revenue declined approximately 2% year-over-year, and earnings per share dropped 80% compared to $0.05 in the same quarter of the previous year [3] Future Outlook - Management plans to increase investments to drive innovation, aiming to boost sales and bookings, with Vimeo Enterprise and over-the-top-and-streaming categories contributing to 34% of overall sales in the fourth quarter [4] - The company anticipates low-single-digit sales growth early in 2025, with expectations of returning to double-digit revenue growth later in the year [5] Investor Sentiment - Despite some core offerings showing growth momentum, investors reacted negatively to the fourth-quarter results and guidance, indicating concerns over profitability and the effectiveness of previous initiatives [6]