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Vimeo, Inc. (VMEO)
:VMEO
US Market

Vimeo (VMEO) AI Stock Analysis

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VMEO

Vimeo

(VMEO)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
$8.00
▲(1.91% Upside)
Vimeo's stock score is primarily influenced by its strong technical momentum and stable financial position, but is heavily weighed down by its high valuation and significant corporate changes. The merger and delisting introduce uncertainty, while the overbought technical indicators suggest caution.
Positive Factors
Strong Gross Margins
High gross margins indicate efficient cost management, allowing Vimeo to maintain profitability even with fluctuating revenues.
Stable Balance Sheet
A stable balance sheet with low leverage provides financial flexibility and reduces risk, supporting long-term business sustainability.
Strategic Merger
The merger with Bending Spoons is expected to enhance Vimeo's market positioning and product development, driving long-term growth.
Negative Factors
Inconsistent Revenue Growth
Volatile revenue growth can hinder long-term planning and investment, impacting Vimeo's ability to scale effectively.
Low Net Profit Margin
A low net profit margin suggests difficulty in translating sales into actual profit, which can limit reinvestment and growth potential.
Corporate Restructuring Risks
Significant corporate restructuring introduces uncertainty and potential disruption, affecting operational stability and strategic execution.

Vimeo (VMEO) vs. SPDR S&P 500 ETF (SPY)

Vimeo Business Overview & Revenue Model

Company DescriptionVimeo, a leading video hosting platform, empowers creators and businesses to showcase their videos through high-quality streaming and customizable player options. Founded in 2004, Vimeo operates in the digital media and technology sectors, providing a range of services that include video hosting, live streaming, and video monetization tools. The platform caters to a diverse clientele, including independent filmmakers, businesses, and educational institutions, enabling them to create, share, and promote video content across various channels.
How the Company Makes MoneyVimeo 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 Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Vimeo, with strong growth in self-serve bookings and enterprise revenue, alongside increased guidance for adjusted EBITDA. However, challenges remain with subscriber declines in self-serve and some enterprise customer churn.
Q2-2025 Updates
Positive Updates
Self-Serve Bookings Growth
Self-serve bookings grew by an impressive 11%, reaching levels last seen in 2021, attributed to changes in packaging and pricing, and new product improvements.
Enterprise Revenue Increase
Vimeo Enterprise grew revenue by 25% and achieved the second highest booking level on a dollar basis.
Adjusted EBITDA Guidance Raised
Improved efficiency enabled Vimeo to raise its 2025 adjusted EBITDA guidance to approximately $35 million, up from the previous range of $25 million to $30 million.
Competitive Wins and Product Innovation
Vimeo is winning competitive deals by helping major brands consolidate their video technology, with strong traction in AI offerings and product innovations.
Introduction of Agentic AI Features
Vimeo is testing Agentic AI features with customers, aiming to integrate video into AI agent ecosystems and enhance functionalities like video query and customer support.
Negative Updates
Subscriber Decline in Self-Serve Business
Despite strong bookings, there is an underlying subscriber decline in the self-serve business, which may not stabilize until 2026.
Enterprise Customer Churn
Enterprise customer numbers declined sequentially, partly due to a significant international customer with retention challenges.
Challenges in Certain Geographies and Sectors
Vimeo faced challenges in some geographies due to tariffs and uncertainty, and sectors like healthcare and education showed weaker performance.
Company Guidance
During Vimeo's Q2 2025 earnings call, the company reported a 6% year-over-year increase in bookings, marking the strongest growth since 2022. Self-serve bookings grew impressively by 11%, driven by changes in packaging and pricing, while Vimeo Enterprise saw a 25% revenue increase. Despite a slight shortfall in bookings growth goals, the fundamentals remained strong, with competitive deal wins and traction across AI offerings. The company raised its 2025 adjusted EBITDA guidance to approximately $35 million, up from the previous range of $25 million to $30 million, highlighting improved efficiency. The leadership expressed optimism about reaccelerating growth in the second half and maintaining a path toward double-digit growth by the end of the year.

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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue416.60M417.01M417.21M433.03M391.68M283.22M
Gross Profit321.67M324.62M321.10M322.13M282.37M178.94M
EBITDA8.05M35.46M30.75M-64.92M-44.01M-25.48M
Net Income4.15M26.49M21.56M-79.59M-52.77M-50.63M
Balance Sheet
Total Assets634.31M642.82M622.92M605.43M649.36M371.08M
Cash, Cash Equivalents and Short-Term Investments320.88M325.49M301.37M274.83M322.35M110.04M
Total Debt8.70M11.84M13.44M19.31M14.01M96.23M
Total Liabilities241.01M234.02M240.69M251.57M278.77M286.00M
Stockholders Equity393.30M408.80M382.23M353.86M370.60M85.08M
Cash Flow
Free Cash Flow45.40M56.64M37.68M-37.87M15.51M13.02M
Operating Cash Flow47.56M56.86M37.78M-37.07M15.95M13.86M
Investing Cash Flow-5.46M-222.00K531.00K830.00K-6.82M42.00K
Financing Cash Flow-46.99M-32.18M-11.70M-10.59M203.06M93.87M

Vimeo Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.85
Price Trends
50DMA
7.80
Positive
100DMA
6.45
Positive
200DMA
5.61
Positive
Market Momentum
MACD
0.04
Positive
RSI
74.88
Negative
STOCH
50.00
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 7.85 is above the 20-day moving average (MA) of 7.84, above the 50-day MA of 7.80, and above the 200-day MA of 5.61, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 74.88 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMEO.

Vimeo Risk Analysis

Vimeo disclosed 54 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 0 New Risks

Vimeo Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.14B8.5820.19%5.80%12.20%
77
Outperform
$1.94B18.6121.35%6.48%168.94%
73
Outperform
$1.77B-386.32-1.68%19.87%-136.93%
63
Neutral
$1.18B8.1070.46%7.01%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
0.35%-0.67%-95.68%
51
Neutral
$787.03M-30.78-15.41%71.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VMEO
Vimeo
7.85
1.13
16.82%
PD
PagerDuty
12.97
-5.52
-29.85%
YALA
Yalla Group
6.96
2.87
70.17%
SEMR
SEMrush Holdings
11.86
-0.34
-2.79%
CXM
Sprinklr
7.87
-1.23
-13.52%
BLND
Blend Labs
3.06
-1.34
-30.45%

Vimeo Corporate Events

Delistings and Listing ChangesExecutive/Board ChangesM&A Transactions
Vimeo Merges, Delists from Nasdaq, Board Resigns
Negative
Nov 24, 2025

On November 24, 2025, Vimeo completed a merger that led to the delisting of its common stock from the Nasdaq Stock Market. As a result, Vimeo’s board of directors resigned, and the company’s corporate structure was amended to align with the merger agreement, impacting its reporting obligations and stockholder rights.

M&A TransactionsShareholder Meetings
Vimeo Stockholders Approve Merger with Bending Spoons
Neutral
Nov 19, 2025

On November 19, 2025, Vimeo, Inc. held a Special Meeting of Stockholders where a significant 90.46% of voting power was represented. Stockholders approved the Agreement and Plan of Merger with Bending Spoons US Inc., resulting in Vimeo becoming a wholly owned subsidiary of Bending Spoons US. Additionally, a non-binding advisory vote approved the compensation for Vimeo’s executive officers related to the merger. Although there was an option to adjourn the meeting to gather more votes, it was deemed unnecessary due to sufficient support for the merger.

M&A TransactionsLegal Proceedings
Vimeo Announces Merger with Bending Spoons US
Negative
Nov 18, 2025

Vimeo has announced a merger agreement with Bending Spoons US Inc., where Vimeo will become a wholly owned subsidiary of Bending Spoons US. The company has faced legal challenges from purported stockholders alleging misrepresentation in the merger-related proxy statements. Despite denying these allegations, Vimeo has decided to voluntarily supplement the proxy statement to avoid potential delays and litigation costs.

M&A TransactionsBusiness Operations and Strategy
Vimeo Awaits Stockholder Approval for Bending Spoons Merger
Neutral
Nov 7, 2025

On September 10, 2025, Vimeo, Inc. announced a merger agreement with Bending Spoons US Inc., where Vimeo will become a wholly owned subsidiary of Bending Spoons US. The merger is contingent upon several conditions, including the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period, which concluded on November 6, 2025, and the approval of Vimeo’s stockholders. This strategic move is expected to impact Vimeo’s operations and market positioning, subject to the fulfillment of all closing conditions.

M&A TransactionsBusiness Operations and Strategy
Vimeo to Be Acquired by Bending Spoons
Positive
Sep 11, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Vimeo to Be Acquired by Bending Spoons
Positive
Sep 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Dec 09, 2025