Vimeo, Inc. ((VMEO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Vimeo’s recent earnings call presented a generally positive sentiment, highlighting significant achievements in bookings growth and revenue increases, particularly in the Vimeo Enterprise segment. The introduction of innovative AI features and competitive enterprise wins were key contributors to the company’s success. However, challenges such as subscriber decline, enterprise customer churn, and macroeconomic factors were also acknowledged. Overall, the positive developments slightly outweighed the challenges faced by the company.
Strong Bookings Growth
Vimeo reported a 6% year-over-year growth in bookings for Q2 2025, marking the strongest growth since 2022. Notably, self-serve bookings increased by 11%, reaching levels last seen in 2021, indicating a robust demand for Vimeo’s offerings.
Vimeo Enterprise Revenue Increase
The Vimeo Enterprise segment experienced a remarkable 25% growth in revenue, achieving its second-highest booking level on a dollar basis. This underscores the company’s successful expansion in the enterprise market.
Adjusted EBITDA Guidance Raised
Reflecting improved operational efficiency, Vimeo raised its 2025 adjusted EBITDA guidance to approximately $35 million, up from the previous range of $25 million to $30 million. This adjustment signals confidence in the company’s financial trajectory.
Innovative AI Features
Vimeo has begun rolling out AI features such as translation services and Agentic AI for video management. These innovations are not only generating revenue but also attracting strong customer interest, positioning Vimeo as a leader in video technology.
Competitive Wins in Enterprise
Vimeo is securing competitive deals and consolidating video platforms for major clients like Spotify, Jaguar Land Rover, and FanDuel. These wins highlight Vimeo’s growing influence and capability in the enterprise sector.
Subscriber Decline in Self-Serve
Despite efforts to adjust pricing and packaging, Vimeo continues to face a decline in subscribers within the self-serve segment, indicating a need for further strategic adjustments.
Enterprise Customer Churn
The enterprise segment experienced a decline in customers, partially due to an international customer focused primarily on bandwidth and not adopting other Vimeo features, indicating challenges in customer retention.
Macroeconomic and Search Challenges
Vimeo faced challenges in certain geographies due to tariffs and economic uncertainty. Additionally, changes in the search landscape impacted SEO, although the company claims to be managing these efficiently.
Forward-Looking Guidance
Looking ahead, Vimeo remains optimistic about reaccelerating growth, particularly in the enterprise segment. The company anticipates continued success driven by product enhancements, pricing adjustments, and AI offerings. The raised EBITDA guidance reflects confidence in achieving improved operational efficiency and financial performance.
In summary, Vimeo’s earnings call conveyed a cautiously optimistic outlook, with significant achievements in bookings and enterprise revenue growth. While challenges such as subscriber decline and macroeconomic factors persist, the company’s strategic focus on innovation and competitive positioning provides a promising path forward.