NASDAQ$VMEO

Vimeo Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Vimeo's Q1 2024 performance showed resilience with revenue and bookings increases alongside expense management.

Vimeo reported a 1% increase in revenue and a slight increase in bookings year-over-year. Vimeo Enterprise grew significantly, offsetting declines in other areas. The company also managed expenses, leading to solid profitability with a net income of $6 million and Adjusted EBITDA of $12 million.

  • Revenue grew by 1% and bookings increased slightly year-over-year.
  • Vimeo Enterprise bookings grew by 47% and revenue by 60% year-over-year.
  • GAAP operating expenses decreased by 5% and non-GAAP operating expenses decreased by 10% year-over-year.
  • Net income was $6 million and Adjusted EBITDA was $12 million.

Headline financials

Total Revenue

$105M

Previous: $104M+1.3%
EPS (adj)

$0.04

Previous: -$0.00+1028.1%
Capital Expenditures

-$160K

No prior period
Free Cash Flow

$6.9M

Previous: $4.9M+40.8%
Net Income

$6.07M

Previous: -$700K+967.6%
Operating Income

$2.59M

Previous: -$2.8M+192.5%
Gross Profit

$81.2M

Previous: $79.9M+1.6%
R&D Expense

$28.1M

No prior period
Stock-Based Comp

$6.97M

No prior period

Revenue & EPS history

Vimeo · Revenue · Quarterly

$105M

Q1 2024+1.3%vs Q1 2023
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Vimeo · $20.8M total across 1 segment · Q3 2023

  • Vimeo Enterprise
    $20.8M

Forward guidance

Vimeo is maintaining its FY'24 guidance, targeting revenue between $385 and $400 million, an operating loss of approximately $3 million, and flat Adjusted EBITDA year-over-year.

Tailwinds

  • Confident in achieving at least the low end of the revenue range thanks to Q1 performance.
  • Expect to reinvest incremental profit in revenue and profit growth initiatives, particularly in the second half of the year.
  • Commitment to profitability is unwavering.
  • Expect to begin to act on the existing buyback authorization of $50 million to reduce dilution from share issuances.
  • Vimeo is on a path to return to profitable revenue growth.

Headwinds

  • Expect revenue to decline sequentially in Q2 as it did in 2023.
  • Expect year-over-year bookings growth to decelerate due to tougher comparisons for Vimeo Enterprise and Other.
  • Continued impact of the move to more efficient marketing spending will affect bookings growth.
  • Revenue to be slightly below $100 million in Q2 (down ~3% year-over-year).
  • Operating loss to be approximately breakeven in Q2.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 13 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.5%

Avg return

Earnings day

+6.7%

Avg return

5 days after

+9.2%

Avg return

30 days after

50%

11 / 22 earnings

Positive

+43.2%

Q3 2024

Best reaction

-28.4%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025-0.4%-0.1%
Q2 2025+8.4%+2.4%+12.1%
Q1 2025-10.1%-9.7%-12.6%
Q4 2024-18.7%-14.6%-19.2%
Q3 2024+43.2%+39.2%+38.4%
Q2 2024+19.0%+30.2%+42.2%
Q1 2024+6.8%+7.4%+4.6%
Q4 2023+4.4%+9.4%+41.8%
Q3 2023+8.5%+8.2%+13.7%
Q2 2023+13.6%+2.9%-3.9%
Q1 2023+10.1%+8.6%+27.5%
Q4 2022+5.8%+8.0%-0.3%
Q3 2022+5.7%+10.6%+16.8%
Q2 2022+6.4%+12.5%-10.6%
Q1 2022-3.9%-14.0%-21.8%
Q4 2019-3.8%
Q4 2021-15.0%
Q3 2020-0.7%
Q3 2021-28.4%
Q4 2020-22.1%
Q2 2020-22.1%
Q2 2021-18.4%
Q1 2021
Q1 2020

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