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Vimeo (VMEO)
NASDAQ:VMEO
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Vimeo
(NASDAQ:VMEO)
Rating:72Outperform
Price Target:―
Positive Factors
Enterprise Revenue Growth
Enterprise revenue saw robust growth, driven by better-than-expected average revenue per user and continued traction with AI features.
Innovation and Topline Growth
Vimeo is increasingly focused on Enterprise topline growth and cited a faster pace of innovation across the business.
Negative Factors
Investment and Spending
Analyst maintains a Hold rating as incremental spending is expected to offset revenue growth, despite improved forecasts in operating losses.
Macroeconomic Challenges
Management did not provide guidance for the second quarter and noted some deals were delayed due to macroeconomic challenges.
Revenue Decline
A 24.1% decline in Other revenue coupled with a 7.8% y/y decline in Self-Serve revenue is expected.
Vimeo (VMEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$751.23M
Dividend YieldN/A
Average Volume (3M)1.45M
Price to Earnings (P/E)45.7
Beta (1Y)1.56
Revenue Growth-0.05%
EPS Growth23.22%
CountryUS
Employees1,102
SectorTechnology
Sector Strength76
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.02
Shares Outstanding155,344,770
10 Day Avg. Volume1,170,272
30 Day Avg. Volume1,451,717
Financial Highlights & Ratios
PEG Ratio-1.37
Price to Book (P/B)1.99
Price to Sales (P/S)0.00
P/FCF Ratio15.64
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit1.48
Enterprise Value/Ebitda3.47
Forecast
1Y Price Target
$6.80Price Target Upside52.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Vimeo Business Overview & Revenue Model
Company DescriptionVimeo, Inc., together with its subsidiaries, provides video software solutions in New York and internationally. The company provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. It also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools. It serves creative professionals, small businesses, marketers, agencies, schools, nonprofits, and large organizations. The company was incorporated in 2020 and is headquartered in New York, New York.
How the Company Makes MoneyVimeo primarily generates revenue through a subscription-based model, offering various tiers of service plans to individuals and businesses. These plans provide users with different levels of access to Vimeo's tools and services, including increased storage, enhanced privacy controls, and advanced video analytics. Additionally, Vimeo earns from enterprise customers by offering customized video solutions tailored to specific corporate needs. Another key revenue stream for Vimeo is transactional video on demand (TVOD), where creators can sell or rent their video content directly to viewers. While advertising is not a primary revenue source, Vimeo does form partnerships with businesses and organizations to provide integrated video solutions, which can include custom branding and dedicated support services.
Vimeo Financial Statement Overview
Summary
Vimeo has demonstrated a remarkable financial turnaround with consistent revenue growth and a shift from net losses to profitability. The balance sheet is robust with no debt, and the company maintains strong liquidity. Cash flows have improved significantly, underlining efficient cash management. While there is room for improvement in profitability margins, the financial health of Vimeo is solid, with a positive growth trajectory and low financial risk.Income Statement
Vimeo has shown consistent revenue growth over the years, with a notable increase from $196M in 2019 to $417M in 2024. The company has significantly improved its net income from a loss of $75.6M in 2019 to a profit of $40.4M in 2024, indicating a strong turnaround. Gross profit margins have remained robust, indicating effective cost management. However, the EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.75
Positive
Balance Sheet
Vimeo's balance sheet is strong, with zero debt as of the latest report, reflecting a very low risk of financial leverage. The equity ratio has increased over the years, demonstrating growing financial stability. The company has managed to maintain a healthy cash position, with cash and short-term investments consistently exceeding its total liabilities, illustrating strong liquidity. However, the return on equity could be improved to enhance shareholder value.80
Positive
Cash Flow
Vimeo's cash flow situation is quite strong with a significant turnaround in operating cash flow from negative in 2019 to positive in 2024. Free cash flow has also improved, showing the company's ability to generate cash internally. The free cash flow to net income ratio is favorable, suggesting efficient cash management. The company has also shown a good trend in free cash flow growth, reflecting a solid cash position despite fluctuations in investing and financing cash flows.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 415.13M | 417.01M | 417.21M | 433.03M | 391.68M | 283.22M | Gross Profit |
| 323.29M | 326.27M | 325.64M | 329.43M | 289.14M | 194.14M | EBIT |
| 10.00M | 18.68M | 13.05M | -82.94M | -61.02M | -40.78M | EBITDA |
| 22.56M | 35.46M | 30.75M | -64.92M | -44.01M | -25.48M | Net Income Common Stockholders |
| 17.80M | 26.49M | 21.56M | -79.59M | -52.77M | -50.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 289.03M | 325.28M | 301.37M | 274.50M | 321.90M | 110.01M | Total Assets |
| 605.72M | 642.82M | 622.92M | 605.43M | 649.36M | 371.08M | Total Debt |
| 0.00 | 0.00 | 0.00 | 19.31M | 14.01M | 94.56M | Net Debt |
| -289.03M | -325.28M | -301.37M | -255.18M | -307.89M | -15.45M | Total Liabilities |
| 223.18M | 234.02M | 240.69M | 251.57M | 278.77M | 286.00M | Stockholders Equity |
| 382.53M | 408.80M | 382.23M | 353.86M | 370.60M | 85.08M |
| Cash Flow | Free Cash Flow | ||||
| 48.97M | 56.64M | 37.68M | -37.87M | 15.51M | 13.02M | Operating Cash Flow |
| 49.18M | 56.86M | 37.78M | -37.07M | 15.95M | 13.86M | Investing Cash Flow |
| -2.18M | -222.00K | 531.00K | 830.00K | -6.82M | 42.00K | Financing Cash Flow |
| -62.09M | -32.18M | -11.70M | -10.59M | 203.06M | 93.87M |
Vimeo Technical Analysis
Negative
4.46
Price Trends
5.03
Negative
5.66
Negative
5.63
Negative
Market Momentum
-0.14
Positive
34.85
Neutral
8.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMEO, the sentiment is Negative. The current price of 4.46 is below the 20-day moving average (MA) of 4.86, below the 50-day MA of 5.03, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 34.85 is Neutral, neither overbought nor oversold. The STOCH value of 8.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VMEO.
Vimeo Risk Analysis
Vimeo disclosed 47 risk factors in its most recent earnings report. Vimeo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may be subject to claims that our employees, contractors, collaborators, vendors, consultants or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers or claims asserting ownership of what we regard as our own intellectual property. Q4, 2024
2.
Our platform and internal systems rely on software and hardware that is highly technical, and any errors, bugs or vulnerabilities in these systems, or failures to address or mitigate technical limitations in our systems, could adversely affect our ability to read data and make forecasts, and therefore our business. Q4, 2024
3.
Our compensation packages may not be sufficient. Q4, 2024
Vimeo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.18B | 10.22 | 21.03% | ― | 6.40% | 9.72% | |
73 Outperform | $1.06B | 50.49 | -47.39% | ― | 3.82% | -251.96% | |
72 Outperform | $751.23M | 45.74 | 4.29% | ― | -0.05% | 23.22% | |
71 Outperform | $1.16B | 74.24 | 6.26% | ― | 7.71% | ― | |
71 Outperform | $812.14M | ― | -9.00% | ― | 9.30% | 24.96% | |
69 Neutral | $916.60M | 461.79 | 4.15% | ― | 30.64% | ― | |
60 Neutral | $11.56B | 10.24 | -7.04% | 2.94% | 7.46% | -10.54% |
* Technology Sector Average
Performance Comparison
VMEO
Vimeo
4.45
0.61
15.89%
YALA
Yalla Group
7.75
2.83
57.52%
OPFI
OppFi
11.73
8.61
275.96%
DSP
Viant Technology
13.86
4.63
50.16%
VTEX
VTEX
6.22
-0.71
-10.25%
RSKD
Riskified
5.00
-1.14
-18.57%
Vimeo Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -13.40%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Vimeo's earnings call highlighted a return to growth in self-service bookings and strong revenue performance in the Enterprise segment. Strategic pricing changes and innovative AI features have positively impacted customer retention and engagement. However, challenges remain, with a deceleration in Enterprise bookings and macroeconomic uncertainties affecting customer decisions.Q1-2025 Updates
Positive Updates
Self-Service Bookings Growth
Self-service bookings grew 6%, marking the first growth in three years. This is a 16-point improvement from a negative 10% decline in Q2 2023.
Vimeo Enterprise Revenue Increase
Vimeo Enterprise revenue was up 32% and bookings were up 13%. Quarterly revenue for this product more than doubled from two years ago.
Successful Price Increase Strategy
Prices were increased by up to 20% for some customers, resulting in lower churn rates and continued growth in the self-service segment.
Introduction of GenAI Features
Vimeo rolled out AI features such as translations to self-service subscribers, enhancing customer engagement and adding new monetization avenues.
Strong Interest from Regulated Industries
Vimeo's AI capabilities are attracting interest from regulated industries, aiding in compliance and regulatory requirements.
Negative Updates
Enterprise Bookings Growth Deceleration
Enterprise bookings growth decelerated between Q4 and Q1, with some deals slipping into Q2 due to macroeconomic conditions.
Challenges Posed by Macro Environment
The unpredictable economy presents risks, with some customers slowing down deals due to cost concerns.
Company Guidance
During Vimeo's Q1 2025 earnings call, CEO Philip Moyer highlighted several key performance metrics and strategic initiatives. Self-service bookings saw a 6% growth, marking a significant improvement from a negative 10% decline in Q2 2023, while Vimeo Enterprise revenue increased by 32% with a 13% rise in bookings. The company is making strategic investments, with a particular focus on areas that promise a swift return on investment. Pricing changes, including increases of up to 20%, have led to lower churn rates. Vimeo has committed up to $30 million for investment in growth, although they aim to be prudent with expenditure. The company is also leveraging AI, rolling out features like translations and agentic video to support both self-service and enterprise customers, which they expect to drive future growth. Despite macroeconomic uncertainties, Vimeo remains committed to achieving profitable growth in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.