NASDAQ$VMEO

Vimeo Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Vimeo made progress by simplifying operations, improving go-to-market and product experiences, and launching innovative features, leading to improved net income, positive operating cash flow, and positive Free Cash Flow (FCF).

Vimeo reported a revenue of $101.835 million, a net income of $5.9 million, and positive progress in strategic priorities including simplifying Vimeo, returning to growth, and increasing efficiency.

  • Bookings decline rate slowed down, and excluding 'Other', Vimeo bookings grew 2% year-over-year.
  • Enterprise bookings increased by 72% and surpassed 'Other' as a percentage of total bookings.
  • Self-Serve retention was stable, and Vimeo Enterprise Net Revenue Retention (NRR) exceeded 100%.
  • Innovation investments resulted in the release of an AI-powered video creation suite.

Headline financials

Total Revenue

$102M

Previous: $111M-8.2%
EPS (adj)

$0.03

Previous: -$0.03+200.0%
Capital Expenditures

$21K

Previous: $115K-81.7%
Free Cash Flow

$13.1M

Previous: -$22.1M+159.4%
Net Income

$5.9M

Previous: -$26.5M+122.3%
Operating Income

$4.6M

Previous: -$27.3M+116.8%
Gross Profit

$79M

Previous: $84.1M-6.1%
Cash & Equivalents

$278M

Previous: $268M+3.9%
Total Assets

$596M

Previous: $599M-0.5%
Stock-Based Comp

-$584K

Previous: $18.7M-103.1%

Revenue & EPS history

Vimeo · Revenue · Quarterly

$102M

Q2 2023-8.2%vs Q2 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Vimeo · $12.9M total across 1 segment · Q2 2023

  • Vimeo Enterprise
    $12.9M

Forward guidance

For Q3 2023, Vimeo expects revenue to be slightly above $100 million and Adjusted EBITDA to be near $2 million. For full year 2023, they are reaffirming a mid-single digit percent decline in revenue and updating Adjusted EBITDA expectations to range from $10 to $15 million.

Tailwinds

  • Continued progress in Q2 gives us confidence in our ability to execute against our goals of returning to bookings growth by year end while driving non-GAAP profitability.
  • Revenue to be slightly above $100 million for third quarter 2023
  • Updating GAAP operating loss expectations to now range from $19 to $14 million for full year 2023.
  • Updating Adjusted EBITDA* expectations to now range from $10 to $15 million for full year 2023.
  • Returning to bookings growth by year end while driving non-GAAP profitability.

Headwinds

  • Bookings precedes revenue, so a return to revenue growth would lag a return to bookings growth.
  • GAAP operating loss to be approximately $8 million for third quarter 2023.
  • Adjusted EBITDA to be near $2 million, down sequentially from Q2 due to the timing of certain expenses.
  • Reaffirming an expected mid-single digit percent decline in revenue for full year 2023.
  • Revenue has been experiencing single-digit percent declines.

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 Q2 2023

Historical avgQ2 2023

-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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