Vimeo layoffs to provide company with flexibility, says Truist

Truist analyst Youssef Squali reiterated a Buy rating and $10 price target on Vimeo, saying he views the wowrkforce reduction announcement as a reflection of the company’s focus to achieve profitability on a sustainable basis near-term despite headwinds to its top-line growth. While Squali expects that growth will likely remain pressured over the next few quarters, he believes the new action will provide the company with flexibility in achieving profitable growth in FY23.