NASDAQ:VMEO Vimeo Q1 2025 Earnings Report $4.36 -0.09 (-2.02%) Closing price 05/23/2025 04:00 PM EasternExtended Trading$4.42 +0.06 (+1.38%) As of 05/23/2025 07:53 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Vimeo EPS ResultsActual EPS-$0.02Consensus EPS -$0.03Beat/MissBeat by +$0.01One Year Ago EPS$0.04Vimeo Revenue ResultsActual Revenue$103.03 millionExpected Revenue$101.57 millionBeat/MissBeat by +$1.47 millionYoY Revenue Growth-1.80%Vimeo Announcement DetailsQuarterQ1 2025Date5/5/2025TimeAfter Market ClosesConference Call DateMonday, May 5, 2025Conference Call Time5:00PM ETUpcoming EarningsVimeo's Q2 2025 earnings is scheduled for Monday, August 4, 2025, with a conference call scheduled at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Vimeo Q1 2025 Earnings Call TranscriptProvided by QuartrMay 5, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Hello, and thank you for joining Vimeo's Q1 twenty twenty five earnings live Q and A. Before we begin, a few comments. First, this session will be recorded and available on the Vimeo Investor Relations website later today. Second, we will discuss Vimeo's outlook and future performance. These future looking statements typically may be preceded by words such as we expect, we believe, we anticipate, or other such statements. Operator00:00:28These forward thinking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Please refer to the earnings release we furnished to the SEC on Form eight ks earlier today, which is posted on our website for additional information regarding those risks and uncertainties. We've also provided information regarding certain key metrics and our non GAAP financial measures, including certain forward looking measures. These should be considered in addition to and not as a substitute for or in isolation from GAAP measures. Additional information regarding Vimeo's financial performance, including reconciliations with comparable GAAP measures, can be found in our shareholder letter and Vimeo's filings with the SEC, as well as in supplemental information posted on the Investor Relations section of our website. Operator00:01:19And with that, I'll turn it over to our CEO, Philip Moyer. Philip? Philip MoyerCEO at Vimeo00:01:25Thank you for joining us for our Q1 twenty twenty five live question and answer earnings call. This April marked my one year anniversary at Vimeo. It has been an incredible journey so far, and we are thrilled that 2025 is off to a solid start. After two plus years of rightsizing our operations, we are now at a place of investing to drive growth, and the results are starting to show. Self-service bookings grew 6%, marking the first growth in three years. Philip MoyerCEO at Vimeo00:01:58This is a 16 swing from the low point for this product of a negative 10% decline in year over year bookings in Q2 twenty twenty three. This growth in bookings has cut the rate of decline in revenue from self serve by nearly half as well. Vimeo Enterprise revenue was up 32%, and bookings were up 13%. As our Enterprise business becomes larger with more complex deals, we are increasingly focused on revenue growth and may adjust or remove some KPIs to best reflect how we are operating our business going forward. But I will note that in the first quarter, our quarterly revenue in this product was more than double the level from just two years ago. Philip MoyerCEO at Vimeo00:02:45We are making calculated investments in critical areas that we believe can show return on investment for our business in a reasonably short period of time. We're already seeing our pace of innovation speed up this year, and our recent releases of Vimeo streaming, new Vimeo central features and expanded AI for self-service is generating good momentum across our business. While the economy is unpredictable and could create risks, we remain committed to our 2025 goal of profitable growth for the full year. With that, we are looking forward to your questions. Operator00:03:22Thank you. Before asking your questions, please remember to turn on your camera and microphone. First, we'll go with Tom Champion from Piper Sandler. Tom. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:03:32Hi. Good afternoon, everyone. Yeah. Philip, let's let's start with self serve. Great to see the business returning to to bookings growth. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:03:45Can you talk a little bit more about the impact of the the pricing changes you made at at the end of last year? Has that completely cycled its way through the base? What are you seeing on the retention side? And and and maybe what do you what do you foresee as the trend in in self serve through the balance of the year? Philip MoyerCEO at Vimeo00:04:06Sure. So we're very pleased. Again, I think I had mentioned back in Q3 and Q4 that we were pleased with the results that we were seeing from the price increase. One of the things we did is we increased prices by as much as in some cases 20% with some of our customers. But when we did that price increase, we also gave the customers more. Philip MoyerCEO at Vimeo00:04:26And as a result, we saw actually lower churn rates. We continue to see that trend. We're rippling more pricing changes through our base as we get into the higher price plans. We're starting that as we talk here in the month of May. But in general, as you know, we get self-service bookings where we renew and the price increase kicks in as customers renew. Philip MoyerCEO at Vimeo00:04:47So we're expecting to see continued growth if the trends of churn continue and the trends that we're seeing inside of the business, we're expecting to see kind of similar growth going forward here this year. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:04:59Okay. Great. Maybe I'll just ask Jillian one more. Julian, on on the investment, the the 30,000,000, do you do you think that's a good base case for us to consider? Do you think at at this point, seeing what you can see that that's the amount that you're gonna reinvest back into the business? Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:05:22And, you know, what would what would you need to see to to change for you not to invest the full amount? Gillian MunsonCFO at Vimeo00:05:29Sure. So when we think about the investment, we've said we have appetite for up to $30,000,000 of investment. As I look at the business, if you sort of take the fourth quarter, annualize it, add a little bit of inflation, what you've seen in terms of where the guidance plays out for the guidance of EBITDA to be between 25 and 30,000,000 would would imply something in the twenties running through the EBITDA line. What you will see is we have capitalized some expense because some of our projects are bigger, so that would add to it. So I think we continue to say up to 30,000,000. Gillian MunsonCFO at Vimeo00:06:00Don't expect it to be more than 30,000,000. And, you as we think about it, we're trying to be really, really responsible with the dollars, really looking at each project very specifically. So we're gonna really try to not we don't wanna spend all the way up to 30. We're gonna really try to be very responsible as you've seen us be in the past. And we we go through every quarter and look at every project and try to find the right balance of investment to growth potential for us. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:06:27Thanks a lot. Operator00:06:30And our next caller, Youssef Squali from Truist. Youssef. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:06:36Thank you. Can you guys hear me? Gillian MunsonCFO at Vimeo00:06:38Yep. Hi, Youssef. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:06:41Hey. Thanks for taking the question. So let me turn on my camera. Alright. So maybe, Philip, can we just start at a high level? Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:06:54I know, obviously, the, you provided the caveat of the macro being uncertain. Can you maybe talk about what you're seeing so far? What are you hearing exactly from your customers both on the enterprise side, on the self serve side, and just in terms of maybe, well, the challenges they're seeing, if any, at this point? Philip MoyerCEO at Vimeo00:07:13Yeah. I think, you know, on the self-service side, we're seeing, some consistency quarter over quarter, just in terms of the macro, conditions in that business. That business, as I mentioned, you know, we're still seeing some good retention rates, in self-service. You know, in the enterprise business, you know, this past quarter, one of the things that we did was that we we introduced a brand new leader into our sales assisted motion. So in that Vimeo enterprise business, we have a new individual that's leading that business. Philip MoyerCEO at Vimeo00:07:43We also made some foundational changes in that business to build on the relationships. Last year, we talked a lot about how we not just landed with customers, but expanded a lot. And we think that that's going be a really important thing going forward with customers. One of the things that we're excited about when we go out and talk to customers right now, cost is on everyone's mind. We believe that we represent an opportunity for cost takeout in a lot of these organizations because in some cases, we can replace two, three, four other products across different divisions. Philip MoyerCEO at Vimeo00:08:13Some of our biggest customers are being used by in as many as 20 divisions inside of a company. And so a very big element of our sales motion is to go out and not just talk about the value that we can create, but also the cost that potentially we can take out for customers. So that's an important conversation right now. There are some segments, you know, there are some some deals that actually slowed down and slipped into q two for us from q one in some businesses that are impacted by the macroeconomic elements of the business. We are not impacted by tariffs right now. Philip MoyerCEO at Vimeo00:08:46As you can imagine, we don't ship physical goods and so we're not seeing kind of a tariff overhang. But some of our customers are taking a step back, some are slowing some deals down. But again, I think we're able to go in and actually have both a value and a cost conversation with those customers. So still optimistic around that enterprise business and we'll expect to get even more optimistic as our leadership, the new leadership kind of takes hold and some of the changes we made organizationally in q one also take hold with customers. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:09:17Okay. Thank you for that. And maybe it's a that on the enterprise side, when I look at bookings growth, it decelerated quite a bit between q four and q one. I think you called out in the release that, it's up against some tough comps, which we can clearly see, but you also called out this major transition in sales team. Any idea? Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:09:38Any any way we can kind of quantify that, and how do you see that transition going so far in April, and what's your expectations for the second quarter? Philip MoyerCEO at Vimeo00:09:47Yeah. You know, the in q two, you know, we still have, solid growth goals for that enterprise team. The enterprise business, the interesting thing about that business, unlike the self-service business, if you don't make your number in one month, can make it in the next month. You know, and the enterprise business can be very lumpy. Mean, I think that you're seeing that, you know, in hundred you know, as we cross over this hundred million dollars in bookings. Philip MoyerCEO at Vimeo00:10:11The focus that we have for that business is to expand ARPU and AOV, you know, in the business, getting larger relationships with customers. And so some of those deals actually can slip from month to month. We still have solid aggressive goals for the business. As I said at the remarks at the start, we're going to be increasingly focused on revenue inside of that business because bookings are not always necessarily translated in the very next quarter or in the very next month. Sometimes you have enterprise contracts that actually have requirements that you have to fulfill before you can start actually achieving the revenue. Philip MoyerCEO at Vimeo00:10:46And so as I mentioned, bookings isn't always the best indicator of what growth is going to come. So still aggressive goals, still a great value proposition, still feel very good about that part of the business going forward. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:11:03Okay. Alright. Thank you so much. Operator00:11:06Thank you, Youssef. And now we'll go to Bill Kerr from TD Cowen. Bill KerrVice President - Equity Research at Cowen00:11:12Great. Thanks for thanks for the questions. So maybe my first one would just be, can you just talk about how, GenAI and and those features that you might be rolling out are are coming up in in conversations with customers and how that shifted over the last several months? And then maybe, you know, are there any features like that or just features broadly that we should be keeping an eye out on as we think about your product roadmap as we move through the the rest of 2025? Sure. Bill KerrVice President - Equity Research at Cowen00:11:40And then I have one more. Philip MoyerCEO at Vimeo00:11:42Sure. I think so far, we had rolled out our AI features, our Gen AI features to our enterprise customers last year. And I think we had mentioned that a significant portion of our deals back in Q4 were being driven by our AI features. We continue to see really good traction in terms of interest in our AI features, things like translations in particular with our enterprise customers. Roughly back in the April, we actually started rolling that out to all of our self-service subscribers as well, that translations capability. Philip MoyerCEO at Vimeo00:12:15Now that's been out for a grand total of a little bit over 2 weeks at this point. You know, we're seeing some bright spots. We see some customers coming in and translating in some cases some entire video libraries using some of our translation features. A very, very important element of what we rolled out and I don't do not wanna I I can't overstate how important this is, is that we rolled out security, you know, for every single one of the customers that uses that. So that every single customer has their own memory and has their own capability to be able to control their their AI. Philip MoyerCEO at Vimeo00:12:48Very important to the creator community, whether or not you're the largest company in the world or whether or not you're an individual filmmaker. So a really important element. Second thing that we rolled out was that ability to be able to monetize, so that if you have a hundred minutes of video that you wanna translate or thousand minutes of video that you want to translate that we have a mechanism to be able to to be able to monetize that as we go forward. So very important infrastructure that was just put out for our, you know, our over a million customer base. And so translations just in general continue to be, I'll say, a lot of interest in it because approximately 45% of our customer base is international. Philip MoyerCEO at Vimeo00:13:26Some of the other capabilities that we're starting to talk about with our enterprise customers is this ability to be able to have discovery and also the ability to be able to ask video questions. We're excited about the notion of agentic video. So you might be hearing a lot about agents. So whether or not Google's agent space or Glean's capabilities, Nvidia's agent technology, Vimeo is actually rolling out this ability to be able to have a gentic video. So the video can be used by agents in in line with workflow. Philip MoyerCEO at Vimeo00:13:57We think that that's gonna be a very powerful element for things like customer support, in sales, in other use cases. And then finally, you know, some of our ability to be able to describe what's going on in a video, we think is gonna be very important for internal search, for internal learning, and even in some cases for external discovery. And so those capabilities, while they're not in our revenue today, we've got a very solid road map as we go in the next quarter and over the course of the rest of the year around a rollout of more and more AI capabilities. So we really expect to lead the market in video, in AI as it relates to video, and in this this new category, what we call AgenTic video. Gillian MunsonCFO at Vimeo00:14:36And, Bill, when you think about it financially, I think there's another really important piece in this rollout, which is the idea of essentially a consumable. So an in period revenue stream for Vimeo. And we think that this is is a really great way to keep moving our ARPUs up over time across the whole business. So you've seen us be on a steady march up in ARPU across pretty much, you know, the two big products that we sell. And at the same time, you've seen a headwind in add ons. Gillian MunsonCFO at Vimeo00:15:06What we're think the way we're thinking about this is AI is the beginning, just translations itself is the beginning of a number of items that we can sell to our customer base on an as you need it basis. And so I think that's a really important piece of our story and will be a big piece of how we think about our long term growth as we move out, you know, even over years in terms of what we can do with our platform itself and then the consumables that customers might want for their specific use uses and needs. Bill KerrVice President - Equity Research at Cowen00:15:36Mhmm. Okay. That that's very helpful. And then I was wondering about, you know, whether there were any particular industries or categories that you were seeing particular strength or or maybe even softness, over the course of the, you know, the first quarter and and so far in in into two q. That would be really helpful. Bill KerrVice President - Equity Research at Cowen00:15:55Thank you. Philip MoyerCEO at Vimeo00:15:56Yeah. Think there's a few. You know, marketing is a very important cohort to us where people are using more and more video in ecommerce and in their marketing, you know, environments. The second thing I would say is that we are seeing a tremendous amount of interest from from regulated industries. We can go into a video and say, you know, does this video promise any kind of returns that it shouldn't be promising? Philip MoyerCEO at Vimeo00:16:20Or we can say, you know, for a pharmaceutical company, does the video actually does the video talk about side effects of a particular medication? Because of the AI work that we're doing, you actually can interrogate videos in a way that you couldn't before. And so I think a lot of organizations that are in regulated industries are starting to look at some of our capabilities and saying that it's actually you can actually achieve compliance and achieve some of the regulatory requirements both internally and externally in the marketplace with some of the technologies we're delivering. Additionally, of the work that we've done around translations, you know, again, in the marketing world, being able to have your mark your video discoverable in more languages actually leads to better discovery. And so that translations capability for both marketing and even for educators is really is doing well. Philip MoyerCEO at Vimeo00:17:07So marketing education, and regulated industries, we're seeing a lot of interest. Bill KerrVice President - Equity Research at Cowen00:17:14Great. Thanks so much. Operator00:17:16Great. Thank you, William. That concludes today's question and answer period. We're going to turn it back to Philip, our CEO. Philip? Philip MoyerCEO at Vimeo00:17:25I want to thank you again for joining our Q1 twenty twenty five earnings call. One other item note. Last week, we filed our recent proxy statement, we're saying goodbye and a huge thank you to our Board members, Alicia Haas and Ita Kain, for their contributions to Vimeo since May 2021. We're also excited to nominate our new Board members for shareholder approval, Adam Kahan, Kirsten Kliphaus and Lydia Jett. And I want to thank you again, and we'll see you for our Q2 update.Read moreParticipantsExecutivesPhilip MoyerCEOGillian MunsonCFOAnalystsThomas ChampionDirector & Senior Research Analyst at Piper Sandler CompaniesYoussef SqualiMD & Head of Internet and Digital Media Research Group at Truist SecuritiesBill KerrVice President - Equity Research at CowenPowered by Key Takeaways Vimeo’s self-service bookings grew 6% in Q1—its first positive growth in three years—and the rate of revenue decline for self-serve was cut by nearly half. Enterprise revenue surged 32% year-over-year, with bookings up 13%, and Q1 enterprise revenue was more than double the level from two years ago. The company plans up to $30 million in targeted investments this year, emphasizing projects with rapid ROI and responsible capital allocation. New AI features—such as secure video translations rolled out to all customers and upcoming “agentic video” tools—are driving momentum in both self-serve and enterprise segments. Despite macroeconomic uncertainty, Vimeo reports stable self-serve retention, is pitching cost-savings and consolidation benefits to enterprise clients, and remains committed to full-year profitable growth in 2025. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallVimeo Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Vimeo Earnings HeadlinesVimeo to Present at Upcoming Jefferies and TD Cowen ConferencesMay 22 at 8:30 AM | globenewswire.comVimeo Keeps Destroying Value, And Price Increases Won't Save ItMay 12, 2025 | seekingalpha.comA grave, grave error.I thought what happened 25 years ago was a once- in-a-lifetime event… but how wrong I was. Because here we are, a quarter of a century later, almost to the exact day, and it’s happening again. May 24, 2025 | Porter & Company (Ad)VMEO Q1 Earnings Call: Self-Serve Bookings Return to Growth Amid Strategic InvestmentsMay 9, 2025 | msn.comI Am Not That Euphoric About The Return To Growth Of VimeoMay 9, 2025 | seekingalpha.comVimeo, Inc. (NASDAQ:VMEO) Q1 2025 Earnings Call TranscriptMay 7, 2025 | msn.comSee More Vimeo Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Vimeo? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Vimeo and other key companies, straight to your email. Email Address About VimeoVimeo (NASDAQ:VMEO), together with its subsidiaries, provides video software solutions worldwide. It 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. The company 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 large organizations, small businesses, creative professionals, marketers, and digital agencies. The company was founded in 2004 and is headquartered in New York, New York.View Vimeo ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Advance Auto Parts Jumps on Surprise Earnings BeatAlibaba's Earnings Just Changed Everything for the StockCisco Stock Eyes New Highs in 2025 on AI, Earnings, UpgradesSymbotic Gets Big Earnings Lift: Is the Stock Investable Again?D-Wave Pushes Back on Short Seller Case With Strong EarningsAppLovin Surges on Earnings: What's Next for This Tech Standout?Can Shopify Stock Make a Comeback After an Earnings Sell-Off? Upcoming Earnings PDD (5/27/2025)AutoZone (5/27/2025)Bank of Nova Scotia (5/27/2025)NVIDIA (5/28/2025)Synopsys (5/28/2025)Bank of Montreal (5/28/2025)Salesforce (5/28/2025)Haleon (5/28/2025)Costco Wholesale (5/29/2025)Marvell Technology (5/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
PresentationSkip to Participants Operator00:00:00Hello, and thank you for joining Vimeo's Q1 twenty twenty five earnings live Q and A. Before we begin, a few comments. First, this session will be recorded and available on the Vimeo Investor Relations website later today. Second, we will discuss Vimeo's outlook and future performance. These future looking statements typically may be preceded by words such as we expect, we believe, we anticipate, or other such statements. Operator00:00:28These forward thinking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Please refer to the earnings release we furnished to the SEC on Form eight ks earlier today, which is posted on our website for additional information regarding those risks and uncertainties. We've also provided information regarding certain key metrics and our non GAAP financial measures, including certain forward looking measures. These should be considered in addition to and not as a substitute for or in isolation from GAAP measures. Additional information regarding Vimeo's financial performance, including reconciliations with comparable GAAP measures, can be found in our shareholder letter and Vimeo's filings with the SEC, as well as in supplemental information posted on the Investor Relations section of our website. Operator00:01:19And with that, I'll turn it over to our CEO, Philip Moyer. Philip? Philip MoyerCEO at Vimeo00:01:25Thank you for joining us for our Q1 twenty twenty five live question and answer earnings call. This April marked my one year anniversary at Vimeo. It has been an incredible journey so far, and we are thrilled that 2025 is off to a solid start. After two plus years of rightsizing our operations, we are now at a place of investing to drive growth, and the results are starting to show. Self-service bookings grew 6%, marking the first growth in three years. Philip MoyerCEO at Vimeo00:01:58This is a 16 swing from the low point for this product of a negative 10% decline in year over year bookings in Q2 twenty twenty three. This growth in bookings has cut the rate of decline in revenue from self serve by nearly half as well. Vimeo Enterprise revenue was up 32%, and bookings were up 13%. As our Enterprise business becomes larger with more complex deals, we are increasingly focused on revenue growth and may adjust or remove some KPIs to best reflect how we are operating our business going forward. But I will note that in the first quarter, our quarterly revenue in this product was more than double the level from just two years ago. Philip MoyerCEO at Vimeo00:02:45We are making calculated investments in critical areas that we believe can show return on investment for our business in a reasonably short period of time. We're already seeing our pace of innovation speed up this year, and our recent releases of Vimeo streaming, new Vimeo central features and expanded AI for self-service is generating good momentum across our business. While the economy is unpredictable and could create risks, we remain committed to our 2025 goal of profitable growth for the full year. With that, we are looking forward to your questions. Operator00:03:22Thank you. Before asking your questions, please remember to turn on your camera and microphone. First, we'll go with Tom Champion from Piper Sandler. Tom. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:03:32Hi. Good afternoon, everyone. Yeah. Philip, let's let's start with self serve. Great to see the business returning to to bookings growth. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:03:45Can you talk a little bit more about the impact of the the pricing changes you made at at the end of last year? Has that completely cycled its way through the base? What are you seeing on the retention side? And and and maybe what do you what do you foresee as the trend in in self serve through the balance of the year? Philip MoyerCEO at Vimeo00:04:06Sure. So we're very pleased. Again, I think I had mentioned back in Q3 and Q4 that we were pleased with the results that we were seeing from the price increase. One of the things we did is we increased prices by as much as in some cases 20% with some of our customers. But when we did that price increase, we also gave the customers more. Philip MoyerCEO at Vimeo00:04:26And as a result, we saw actually lower churn rates. We continue to see that trend. We're rippling more pricing changes through our base as we get into the higher price plans. We're starting that as we talk here in the month of May. But in general, as you know, we get self-service bookings where we renew and the price increase kicks in as customers renew. Philip MoyerCEO at Vimeo00:04:47So we're expecting to see continued growth if the trends of churn continue and the trends that we're seeing inside of the business, we're expecting to see kind of similar growth going forward here this year. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:04:59Okay. Great. Maybe I'll just ask Jillian one more. Julian, on on the investment, the the 30,000,000, do you do you think that's a good base case for us to consider? Do you think at at this point, seeing what you can see that that's the amount that you're gonna reinvest back into the business? Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:05:22And, you know, what would what would you need to see to to change for you not to invest the full amount? Gillian MunsonCFO at Vimeo00:05:29Sure. So when we think about the investment, we've said we have appetite for up to $30,000,000 of investment. As I look at the business, if you sort of take the fourth quarter, annualize it, add a little bit of inflation, what you've seen in terms of where the guidance plays out for the guidance of EBITDA to be between 25 and 30,000,000 would would imply something in the twenties running through the EBITDA line. What you will see is we have capitalized some expense because some of our projects are bigger, so that would add to it. So I think we continue to say up to 30,000,000. Gillian MunsonCFO at Vimeo00:06:00Don't expect it to be more than 30,000,000. And, you as we think about it, we're trying to be really, really responsible with the dollars, really looking at each project very specifically. So we're gonna really try to not we don't wanna spend all the way up to 30. We're gonna really try to be very responsible as you've seen us be in the past. And we we go through every quarter and look at every project and try to find the right balance of investment to growth potential for us. Thomas ChampionDirector & Senior Research Analyst at Piper Sandler Companies00:06:27Thanks a lot. Operator00:06:30And our next caller, Youssef Squali from Truist. Youssef. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:06:36Thank you. Can you guys hear me? Gillian MunsonCFO at Vimeo00:06:38Yep. Hi, Youssef. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:06:41Hey. Thanks for taking the question. So let me turn on my camera. Alright. So maybe, Philip, can we just start at a high level? Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:06:54I know, obviously, the, you provided the caveat of the macro being uncertain. Can you maybe talk about what you're seeing so far? What are you hearing exactly from your customers both on the enterprise side, on the self serve side, and just in terms of maybe, well, the challenges they're seeing, if any, at this point? Philip MoyerCEO at Vimeo00:07:13Yeah. I think, you know, on the self-service side, we're seeing, some consistency quarter over quarter, just in terms of the macro, conditions in that business. That business, as I mentioned, you know, we're still seeing some good retention rates, in self-service. You know, in the enterprise business, you know, this past quarter, one of the things that we did was that we we introduced a brand new leader into our sales assisted motion. So in that Vimeo enterprise business, we have a new individual that's leading that business. Philip MoyerCEO at Vimeo00:07:43We also made some foundational changes in that business to build on the relationships. Last year, we talked a lot about how we not just landed with customers, but expanded a lot. And we think that that's going be a really important thing going forward with customers. One of the things that we're excited about when we go out and talk to customers right now, cost is on everyone's mind. We believe that we represent an opportunity for cost takeout in a lot of these organizations because in some cases, we can replace two, three, four other products across different divisions. Philip MoyerCEO at Vimeo00:08:13Some of our biggest customers are being used by in as many as 20 divisions inside of a company. And so a very big element of our sales motion is to go out and not just talk about the value that we can create, but also the cost that potentially we can take out for customers. So that's an important conversation right now. There are some segments, you know, there are some some deals that actually slowed down and slipped into q two for us from q one in some businesses that are impacted by the macroeconomic elements of the business. We are not impacted by tariffs right now. Philip MoyerCEO at Vimeo00:08:46As you can imagine, we don't ship physical goods and so we're not seeing kind of a tariff overhang. But some of our customers are taking a step back, some are slowing some deals down. But again, I think we're able to go in and actually have both a value and a cost conversation with those customers. So still optimistic around that enterprise business and we'll expect to get even more optimistic as our leadership, the new leadership kind of takes hold and some of the changes we made organizationally in q one also take hold with customers. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:09:17Okay. Thank you for that. And maybe it's a that on the enterprise side, when I look at bookings growth, it decelerated quite a bit between q four and q one. I think you called out in the release that, it's up against some tough comps, which we can clearly see, but you also called out this major transition in sales team. Any idea? Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:09:38Any any way we can kind of quantify that, and how do you see that transition going so far in April, and what's your expectations for the second quarter? Philip MoyerCEO at Vimeo00:09:47Yeah. You know, the in q two, you know, we still have, solid growth goals for that enterprise team. The enterprise business, the interesting thing about that business, unlike the self-service business, if you don't make your number in one month, can make it in the next month. You know, and the enterprise business can be very lumpy. Mean, I think that you're seeing that, you know, in hundred you know, as we cross over this hundred million dollars in bookings. Philip MoyerCEO at Vimeo00:10:11The focus that we have for that business is to expand ARPU and AOV, you know, in the business, getting larger relationships with customers. And so some of those deals actually can slip from month to month. We still have solid aggressive goals for the business. As I said at the remarks at the start, we're going to be increasingly focused on revenue inside of that business because bookings are not always necessarily translated in the very next quarter or in the very next month. Sometimes you have enterprise contracts that actually have requirements that you have to fulfill before you can start actually achieving the revenue. Philip MoyerCEO at Vimeo00:10:46And so as I mentioned, bookings isn't always the best indicator of what growth is going to come. So still aggressive goals, still a great value proposition, still feel very good about that part of the business going forward. Youssef SqualiMD & Head of Internet and Digital Media Research Group at Truist Securities00:11:03Okay. Alright. Thank you so much. Operator00:11:06Thank you, Youssef. And now we'll go to Bill Kerr from TD Cowen. Bill KerrVice President - Equity Research at Cowen00:11:12Great. Thanks for thanks for the questions. So maybe my first one would just be, can you just talk about how, GenAI and and those features that you might be rolling out are are coming up in in conversations with customers and how that shifted over the last several months? And then maybe, you know, are there any features like that or just features broadly that we should be keeping an eye out on as we think about your product roadmap as we move through the the rest of 2025? Sure. Bill KerrVice President - Equity Research at Cowen00:11:40And then I have one more. Philip MoyerCEO at Vimeo00:11:42Sure. I think so far, we had rolled out our AI features, our Gen AI features to our enterprise customers last year. And I think we had mentioned that a significant portion of our deals back in Q4 were being driven by our AI features. We continue to see really good traction in terms of interest in our AI features, things like translations in particular with our enterprise customers. Roughly back in the April, we actually started rolling that out to all of our self-service subscribers as well, that translations capability. Philip MoyerCEO at Vimeo00:12:15Now that's been out for a grand total of a little bit over 2 weeks at this point. You know, we're seeing some bright spots. We see some customers coming in and translating in some cases some entire video libraries using some of our translation features. A very, very important element of what we rolled out and I don't do not wanna I I can't overstate how important this is, is that we rolled out security, you know, for every single one of the customers that uses that. So that every single customer has their own memory and has their own capability to be able to control their their AI. Philip MoyerCEO at Vimeo00:12:48Very important to the creator community, whether or not you're the largest company in the world or whether or not you're an individual filmmaker. So a really important element. Second thing that we rolled out was that ability to be able to monetize, so that if you have a hundred minutes of video that you wanna translate or thousand minutes of video that you want to translate that we have a mechanism to be able to to be able to monetize that as we go forward. So very important infrastructure that was just put out for our, you know, our over a million customer base. And so translations just in general continue to be, I'll say, a lot of interest in it because approximately 45% of our customer base is international. Philip MoyerCEO at Vimeo00:13:26Some of the other capabilities that we're starting to talk about with our enterprise customers is this ability to be able to have discovery and also the ability to be able to ask video questions. We're excited about the notion of agentic video. So you might be hearing a lot about agents. So whether or not Google's agent space or Glean's capabilities, Nvidia's agent technology, Vimeo is actually rolling out this ability to be able to have a gentic video. So the video can be used by agents in in line with workflow. Philip MoyerCEO at Vimeo00:13:57We think that that's gonna be a very powerful element for things like customer support, in sales, in other use cases. And then finally, you know, some of our ability to be able to describe what's going on in a video, we think is gonna be very important for internal search, for internal learning, and even in some cases for external discovery. And so those capabilities, while they're not in our revenue today, we've got a very solid road map as we go in the next quarter and over the course of the rest of the year around a rollout of more and more AI capabilities. So we really expect to lead the market in video, in AI as it relates to video, and in this this new category, what we call AgenTic video. Gillian MunsonCFO at Vimeo00:14:36And, Bill, when you think about it financially, I think there's another really important piece in this rollout, which is the idea of essentially a consumable. So an in period revenue stream for Vimeo. And we think that this is is a really great way to keep moving our ARPUs up over time across the whole business. So you've seen us be on a steady march up in ARPU across pretty much, you know, the two big products that we sell. And at the same time, you've seen a headwind in add ons. Gillian MunsonCFO at Vimeo00:15:06What we're think the way we're thinking about this is AI is the beginning, just translations itself is the beginning of a number of items that we can sell to our customer base on an as you need it basis. And so I think that's a really important piece of our story and will be a big piece of how we think about our long term growth as we move out, you know, even over years in terms of what we can do with our platform itself and then the consumables that customers might want for their specific use uses and needs. Bill KerrVice President - Equity Research at Cowen00:15:36Mhmm. Okay. That that's very helpful. And then I was wondering about, you know, whether there were any particular industries or categories that you were seeing particular strength or or maybe even softness, over the course of the, you know, the first quarter and and so far in in into two q. That would be really helpful. Bill KerrVice President - Equity Research at Cowen00:15:55Thank you. Philip MoyerCEO at Vimeo00:15:56Yeah. Think there's a few. You know, marketing is a very important cohort to us where people are using more and more video in ecommerce and in their marketing, you know, environments. The second thing I would say is that we are seeing a tremendous amount of interest from from regulated industries. We can go into a video and say, you know, does this video promise any kind of returns that it shouldn't be promising? Philip MoyerCEO at Vimeo00:16:20Or we can say, you know, for a pharmaceutical company, does the video actually does the video talk about side effects of a particular medication? Because of the AI work that we're doing, you actually can interrogate videos in a way that you couldn't before. And so I think a lot of organizations that are in regulated industries are starting to look at some of our capabilities and saying that it's actually you can actually achieve compliance and achieve some of the regulatory requirements both internally and externally in the marketplace with some of the technologies we're delivering. Additionally, of the work that we've done around translations, you know, again, in the marketing world, being able to have your mark your video discoverable in more languages actually leads to better discovery. And so that translations capability for both marketing and even for educators is really is doing well. Philip MoyerCEO at Vimeo00:17:07So marketing education, and regulated industries, we're seeing a lot of interest. Bill KerrVice President - Equity Research at Cowen00:17:14Great. Thanks so much. Operator00:17:16Great. Thank you, William. That concludes today's question and answer period. We're going to turn it back to Philip, our CEO. Philip? Philip MoyerCEO at Vimeo00:17:25I want to thank you again for joining our Q1 twenty twenty five earnings call. One other item note. Last week, we filed our recent proxy statement, we're saying goodbye and a huge thank you to our Board members, Alicia Haas and Ita Kain, for their contributions to Vimeo since May 2021. We're also excited to nominate our new Board members for shareholder approval, Adam Kahan, Kirsten Kliphaus and Lydia Jett. And I want to thank you again, and we'll see you for our Q2 update.Read moreParticipantsExecutivesPhilip MoyerCEOGillian MunsonCFOAnalystsThomas ChampionDirector & Senior Research Analyst at Piper Sandler CompaniesYoussef SqualiMD & Head of Internet and Digital Media Research Group at Truist SecuritiesBill KerrVice President - Equity Research at CowenPowered by