Vimeo(US:VMEO)2022-05-08 05:17Financial Data and Key Metrics Changes - Revenue for Q1 reached $108 million, representing a 21% year-over-year growth, with gross profit increasing by 27% year-over-year [9][53] - The company ended the quarter with $291 million in cash and no debt, positioning itself favorably in a volatile market [9][59] - Adjusted EBITDA loss for the quarter was $10 million, with gross margin improving approximately 330 basis points year-over-year to 75% [56][59] Business Line Data and Key Metrics Changes - Sales-assisted revenue grew over 50% year-over-year, while self-serve revenue grew 14% year-over-year, excluding the impact from Magisto [53][54] - The number of paying subscribers increased to 1.69 million, up 6% year-over-year, with an average revenue per user (ARPU) of $260, a 12% increase compared to the previous year [55][53] - The sales-assisted business now represents over 30% of total revenue, up from 16% pre-pandemic, indicating a significant shift towards larger business clients [12][9] Market Data and Key Metrics Changes - Top-of-the-funnel traffic has returned to pre-pandemic levels, impacting self-serve growth [10][88] - The company is experiencing a normalization in self-serve business post-pandemic, with conversion rates more than doubling since 2019 [48][52] Company Strategy and Development Direction - The company aims to enhance its targeting and service for larger customers, which has been the fastest-growing part of the business [18][20] - Vimeo is shifting from storage-based to seat-based pricing to better align with customer success and expand product adoption [25][27] - The company plans to broaden its product suite, with new offerings like Vimeo Interactive and a reimagined live experience [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the sales-assisted business, despite uncertainties in the self-serve segment [75][76] - The company is not providing full-year revenue guidance due to the volatile environment but expects bookings growth to reaccelerate in the second half of the year [64][66] - Management remains committed to disciplined growth and plans to adjust operating expenses relative to revenue [65][66] Other Important Information - The company has made significant investments in product and sales initiatives to fuel future growth ambitions [10][12] - Management highlighted the importance of retention, noting that retention rates for year-two customers remain stable [51][96] - The geopolitical situation, particularly the invasion of Ukraine, has impacted the company, but most employees in Ukraine are safe and productive [38][40] Q&A Session Summary Question: What is the outlook for full-year revenue? - Management believes they can deliver double-digit revenue growth in 2022 but sees uncertainty in the self-serve business top-of-the-funnel [73][76] Question: Can you elaborate on self-serve issues? - Management noted that self-serve traffic has normalized back to pre-pandemic levels, impacting bookings growth [88][89] Question: What is the guidance philosophy of the new CFO? - The new CFO aims for transparency and flexibility in guidance, focusing on ensuring the company can adjust to business changes [94][95] Question: How is the sales force efficiency currently? - Management is monitoring key metrics across the sales force and expects improvements as they implement enhancements [111][113] Question: What are the long-term growth targets? - Management confirmed that the long-term targets for revenue growth around 30% remain intact, driven by both subscriber growth and ARPU growth [116][121]