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Vimeo (VMEO)
NASDAQ:VMEO
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Vimeo
(NASDAQ:VMEO)
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Rating:72Outperform
Price Target:―
Vimeo's overall stock score reflects a strong financial performance, characterized by revenue growth and a shift to profitability, coupled with a robust balance sheet. The earnings call highlighted promising growth prospects, particularly in the enterprise segment bolstered by AI innovations. However, technical analysis indicates potential short-term challenges, and the stock's valuation suggests limited immediate upside. The absence of significant corporate events maintains the focus on financial and operational execution.
Positive Factors
AI Capabilities
The integration of AI capabilities has significantly boosted customer interest and adoption, indicating a strong competitive advantage and potential for sustained growth in the enterprise segment.
Enterprise Growth
The robust growth in enterprise bookings and ARPU reflects Vimeo's strong market position and ability to cater to high-value clients, supporting long-term revenue expansion.
Balance Sheet Strength
A debt-free balance sheet provides Vimeo with significant financial flexibility, reducing risk and enabling strategic investments to drive future growth.
Negative Factors
Self-Serve Subscriber Pressure
Continued pressure on self-serve subscriber numbers may hinder Vimeo's ability to scale this segment, impacting overall revenue growth and diversification.
Low Initial Revenue Growth
The expectation of low initial revenue growth could limit Vimeo's ability to quickly capitalize on market opportunities, affecting short-term financial performance.
Profitability Margins
Low EBIT and EBITDA margins suggest inefficiencies in operational execution, which could constrain profitability and limit resources for reinvestment into growth initiatives.
Vimeo (VMEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.29B
Dividend YieldN/A
Average Volume (3M)5.26M
Price to Earnings (P/E)102.0
Beta (1Y)1.77
Revenue Growth-1.35%
EPS Growth-59.67%
CountryUS
Employees1,102
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.04
Shares Outstanding156,748,630
10 Day Avg. Volume4,476,986
30 Day Avg. Volume5,262,374
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.29
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit1.15
Enterprise Value/Ebitda24.26
Forecast
1Y Price Target
$7.23Price Target Upside-6.59% Downside
Rating ConsensusHold
Number of Analyst Covering3
Vimeo Business Overview & Revenue Model
Company DescriptionVimeo, Inc. (VMEO) is a leading video platform based in the United States that provides video hosting, sharing, and services to a global audience. It serves creators, businesses, and organizations by offering high-quality video creation, editing, and distribution tools. Vimeo's platform is designed to enable users to easily manage and showcase their video content while providing a suite of tools for video monetization, analytics, and customization.
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 Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
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 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 | 415.40M | 417.01M | 417.21M | 433.03M | 391.68M | 283.22M |
| Gross Profit | 323.59M | 326.27M | 325.64M | 329.43M | 289.14M | 194.14M |
| EBITDA | 15.37M | 35.46M | 30.75M | -64.92M | -44.01M | -25.48M |
| Net Income | 13.97M | 26.49M | 21.56M | -79.59M | -52.77M | -50.63M |
Balance Sheet | ||||||
| Total Assets | 620.64M | 642.82M | 622.92M | 605.43M | 649.36M | 371.08M |
| Cash, Cash Equivalents and Short-Term Investments | 303.18M | 325.28M | 301.37M | 274.50M | 321.90M | 110.01M |
| Total Debt | 9.40M | 0.00 | 0.00 | 19.31M | 14.01M | 94.56M |
| Total Liabilities | 229.55M | 234.02M | 240.69M | 251.57M | 278.77M | 286.00M |
| Stockholders Equity | 391.09M | 408.80M | 382.23M | 353.86M | 370.60M | 85.08M |
Cash Flow | ||||||
| Free Cash Flow | 48.64M | 56.64M | 37.68M | -37.87M | 15.51M | 13.02M |
| Operating Cash Flow | 48.85M | 56.86M | 37.78M | -37.07M | 15.95M | 13.86M |
| Investing Cash Flow | -4.63M | -222.00K | 531.00K | 830.00K | -6.82M | 42.00K |
| Financing Cash Flow | -52.70M | -32.18M | -11.70M | -10.59M | 203.06M | 93.87M |
Vimeo Technical Analysis
Positive
7.74
Price Trends
5.03
Positive
4.67
Positive
5.30
Positive
Market Momentum
0.91
Negative
90.71
Negative
34.92
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 7.74 is above the 20-day moving average (MA) of 6.56, above the 50-day MA of 5.03, and above the 200-day MA of 5.30, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 90.71 is Negative, neither overbought nor oversold. The STOCH value of 34.92 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 48 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.19B | 9.43 | 19.26% | ― | 6.79% | 12.97% | |
72 Outperform | $1.29B | 101.98 | 3.26% | ― | -1.35% | -59.67% | |
70 Neutral | $786.08M | 79.99 | 5.34% | ― | 4.51% | 8241.83% | |
62 Neutral | $1.06B | -9.10 | 22.15% | ― | 6.79% | -593.75% | |
59 Neutral | $534.46M | 252.68 | 8.57% | ― | 30.92% | ― | |
50 Neutral | $754.58M | -19.64 | -11.61% | ― | 7.96% | 5.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
VMEO
Vimeo
7.74
2.69
53.27%
PD
PagerDuty
16.13
-2.42
-13.05%
YALA
Yalla Group
7.51
2.97
65.42%
SEMR
SEMrush Holdings
7.41
-8.30
-52.83%
CXM
Sprinklr
7.86
0.13
1.68%
BLND
Blend Labs
3.76
<0.01
0.27%
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.