Vimeo (VMEO) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 1044.0
• Beta (1Y): 1.75
• Revenue Growth: -0.67%
• EPS Growth: -95.68%
• Country: US
• Employees: 1,102
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 157,950,350
• 10 Day Avg. Volume: 1,491,647
• 30 Day Avg. Volume: 1,590,393
• PEG Ratio: 1.72
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 2.52
• P/FCF Ratio: 18.52
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 118.01
• 1Y Price Target: $7.85
• Price Target Upside: 0.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $8.00 ▲(2.30% Upside)

Vimeo's overall stock score is primarily influenced by its strong financial stability and positive earnings call outlook, despite challenges in profitability and valuation concerns. The technical analysis suggests bullish momentum, but the high P/E ratio indicates potential overvaluation.

Positive Factors

AI Capabilities

Vimeo's investment in AI capabilities is driving significant customer interest and adoption, positioning the company for long-term growth in enterprise bookings.

Enterprise Growth

Strong growth in enterprise bookings and ARPU indicates Vimeo's successful penetration in the enterprise market, contributing to sustainable revenue streams.

Strategic Acquisition

The acquisition by Bending Spoons is expected to provide Vimeo with resources to accelerate its strategic roadmap, enhancing its competitive position.

Negative Factors

Self-Serve Subscriber Pressure

Ongoing challenges in growing self-serve subscribers could limit Vimeo's ability to expand its user base and diversify revenue sources.

Low Revenue Growth

Low initial revenue growth may hinder Vimeo's ability to achieve scale and leverage operational efficiencies, affecting long-term profitability.

Free Cash Flow Challenges

Declining free cash flow growth could constrain Vimeo's ability to invest in new initiatives and maintain financial flexibility.

Vimeo Business Overview & Revenue Model

Company Description

Vimeo, 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 Money

Vimeo generates revenue primarily through subscription-based plans that offer users advanced features such as enhanced storage, analytics, and marketing tools. The company offers several tiers of subscription services, including Vimeo Plus, Vimeo Pro, Vimeo Business, and Vimeo Premium, each designed to cater to different user needs. Additionally, Vimeo earns revenue from its video on demand (VOD) services, allowing creators to sell or rent their videos directly to audiences. The company also benefits from partnerships with various organizations and platforms that enhance its distribution capabilities, as well as from advertising revenue generated through its free-tier offerings. Overall, Vimeo's revenue model is centered around providing value-added services that help users maximize the impact of their video content.

Vimeo Financial Statement Overview

Summary

Vimeo's financial statements reflect strong gross margins and a stable balance sheet, but challenges in profitability and cash flow growth. Revenue growth has been inconsistent, though the company maintains low leverage, providing financial stability.

Income Statement

Vimeo's income statement shows a strong gross profit margin consistently above 75%, indicating efficient cost management. However, the net profit margin is low at 0.99% TTM, reflecting challenges in converting revenue into profit. Revenue growth has been volatile, with a recent TTM growth rate of 28.7%, but previous periods showed declines. EBIT and EBITDA margins have improved but remain modest, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio, indicating conservative leverage. Return on equity is modest at 1.05% TTM, reflecting limited profitability relative to equity. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects financial stability with low risk from debt.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -2.62% TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio is close to 1, indicating limited free cash flow relative to net income, which could constrain future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	416.60M	417.01M	417.21M	433.03M	391.68M	283.22M
Gross Profit	321.67M	324.62M	321.10M	322.13M	282.37M	178.94M
EBITDA	8.05M	35.46M	30.75M	-64.92M	-44.01M	-25.48M
Net Income	4.15M	26.49M	21.56M	-79.59M	-52.77M	-50.63M
Balance Sheet
Total Assets	634.31M	642.82M	622.92M	605.43M	649.36M	371.08M
Cash, Cash Equivalents and Short-Term Investments	320.88M	325.49M	301.37M	274.83M	322.35M	110.04M
Total Debt	8.70M	11.84M	13.44M	19.31M	14.01M	96.23M
Total Liabilities	241.01M	234.02M	240.69M	251.57M	278.77M	286.00M
Stockholders Equity	393.30M	408.80M	382.23M	353.86M	370.60M	85.08M
Cash Flow
Free Cash Flow	47.37M	56.64M	37.68M	-37.87M	15.51M	13.02M
Operating Cash Flow	47.56M	56.86M	37.78M	-37.07M	15.95M	13.86M
Investing Cash Flow	-5.46M	-222.00K	531.00K	830.00K	-6.82M	42.00K
Financing Cash Flow	-46.99M	-32.18M	-11.70M	-10.59M	203.06M	93.87M

Vimeo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMEO, the sentiment is Positive. The current price of 7.82 is above the 20-day moving average (MA) of 7.78, above the 50-day MA of 7.36, and above the 200-day MA of 5.48, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 74.81 is Negative, neither overbought nor oversold. The STOCH value of 73.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMEO.

Vimeo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	81 Outperform	$1.14B	9.01	21.16%	―	6.79%	12.97%
CXM	73 Outperform	$1.81B	16.50	23.74%	―	6.08%	153.79%
SEMR	64 Neutral	$1.08B	―	-1.68%	―	19.87%	-136.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VMEO	61 Neutral	$1.31B	1,044.00	0.35%	―	-0.67%	-95.68%
PD	60 Neutral	$1.44B	-100.51	-8.04%	―	8.20%	82.75%
BLND	45 Neutral	$723.51M	―	―	―	-15.41%	71.18%

Vimeo Corporate Events

Vimeo Faces Financial Strain Amid Costly Merger Activities and Potential $40.1M Termination Fee

Vimeo, Inc. faces substantial financial risks related to its ongoing merger activities, as it continues to incur significant legal, financial advisory, accounting, and other transaction-related expenses. These costs persist regardless of the merger’s completion, posing a financial burden. Furthermore, if the merger agreement is terminated under specific conditions, Vimeo may be obligated to pay a $40.1 million termination fee to Bending Spoons US Inc., potentially impacting its financial health and operational results adversely.

Vimeo to Be Acquired by Bending Spoons

On September 10, 2025, Vimeo announced a definitive agreement to be acquired by Bending Spoons for approximately $1.38 billion in an all-cash transaction. Vimeo shareholders will receive $7.85 per share, a 91% premium over the 60-day volume-weighted average share price. The acquisition aims to accelerate Vimeo’s strategic roadmap and expand its product offerings, with Bending Spoons planning significant investments in key markets and business areas. The transaction is expected to close in the fourth quarter of 2025, subject to customary approvals, after which Vimeo will become a privately held company.

The most recent analyst rating on (VMEO) stock is a Hold with a $7.85 price target. To see the full list of analyst forecasts on Vimeo stock, see the VMEO Stock Forecast page.

Vimeo to Be Acquired by Bending Spoons

On September 10, 2025, Vimeo announced it will be acquired by Bending Spoons in an all-cash transaction valued at approximately $1.38 billion, with shareholders receiving $7.85 per share. This acquisition, unanimously approved by Vimeo’s board, is expected to close in the fourth quarter of 2025, making Vimeo a privately held company. The merger aims to accelerate Vimeo’s strategic roadmap and enhance its market positioning, with Bending Spoons planning significant investments in the US and other key markets.

The most recent analyst rating on (VMEO) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Vimeo stock, see the VMEO Stock Forecast page.

Vimeo Announces 10% Workforce Reduction for Efficiency

On September 3, 2025, Vimeo announced a reduction of its global full-time headcount by just under 10% as part of its efforts to ensure focus and efficiency. This strategic move is expected to be substantially complete by the end of the fourth quarter of 2025 and may have implications for the company’s operational focus and market positioning.

The most recent analyst rating on (VMEO) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Vimeo stock, see the VMEO Stock Forecast page.

Vimeo Discusses Potential Extension of CEO Tenure

Vimeo‘s recent report includes forward-looking statements about potential extensions of Ms. Munson’s tenure with the company. These statements are subject to risks and uncertainties, and Vimeo is not obligated to update them unless required by law.

The most recent analyst rating on (VMEO) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Vimeo stock, see the VMEO Stock Forecast page.

Vimeo’s Financial Struggles: Navigating Global Instability and Inflation Pressures

Vimeo, Inc. faces significant business risks due to global political and economic instability, including the impact of tariffs and trade measures. The company’s performance is vulnerable to macroeconomic uncertainties such as market volatility, supply chain disruptions, and fluctuating foreign exchange rates. These conditions may lead to decreased customer spending, delayed sales cycles, and challenges in collecting payments, ultimately affecting Vimeo’s revenue and financial results. Additionally, inflationary pressures could hinder the company’s ability to adjust pricing in line with rising costs, further exacerbating financial challenges.

Vimeo’s Q2 2025 Earnings Call: Growth Amid Challenges

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.

Vimeo, Inc. Reports Steady Q2 2025 Performance

Vimeo, Inc. is a leading video experience platform that operates in the technology sector, focusing on video and AI markets, providing tools for video creation, collaboration, distribution, and monetization.

Vimeo Reports Strong Q2 2025 Financial Results

In the second quarter of 2025, Vimeo reported strong financial results, reflecting a strategic shift towards profitable growth. The company saw a 25% increase in Vimeo Enterprise revenue and a 6% growth in total bookings, marking the highest growth in three years. Despite a flat total revenue year-over-year, excluding other factors, the company anticipates continued revenue growth for the remainder of 2025. Vimeo’s innovation pace accelerated with significant product roadmap releases, including AI translations, contributing to new revenue streams. The company aims to sustain its momentum in the second half of the year, focusing on enhancing its enterprise offerings and self-serve platform to drive further growth and shareholder value.

The most recent analyst rating on (VMEO) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Vimeo stock, see the VMEO Stock Forecast page.