Vimeo Inc. · Q1 2023 earnings

Briefing

Vimeo Enterprise bookings growth accelerated, net loss narrowed, and positive Adjusted EBITDA was delivered.

Vimeo reported a decrease in revenue by 4% year-over-year to $103.6 million, but improved its operating loss by $23.5 million compared to Q1 2022. The company achieved its third consecutive quarter of positive Adjusted EBITDA and Free Cash Flow, driven by growth in Vimeo Enterprise bookings.

• Vimeo has approximately 1.5 million Self-Serve & Add-Ons Subscribers, and 2.5 thousand Vimeo Enterprise Subscribers.
• Self-Serve & Add-Ons Bookings were down 6%, Vimeo Enterprise Bookings grew 62% year-over-year, and Other Bookings were down 31%.
• Operating loss was $2.8 million, a $23.5 million improvement from the first quarter of 2022. Net loss was $0.7 million in the quarter, a $25.9 million improvement from the first quarter of 2022.
• Vimeo generated positive Free Cash Flow of $4.9 million, or 5% of revenue.

Headline financials

Revenue & EPS history

For Q2 2023, Vimeo expects revenue to be approximately $100 million, GAAP operating loss of approximately $17 million, and Adjusted EBITDA to be at or slightly above breakeven. For full-year 2023, Vimeo is reaffirming an expected mid-single digit percent decline in revenue, updating its expectation for GAAP operating loss to now be between $50 million and $45 million, and reaffirming its expectation for Adjusted EBITDA to be between $5 million and $10 million.