- Earnings call transcript Q3 2022

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Operator

Good morning, and thank you for joining Vimeo's Q3 Earnings Live Q&A. We're excited to be here in front of you.

Before we begin, a few comments.

First, Vimeo's Q3 shareholder video will be available on the Vimeo Investor Relations site.

Second, we will discuss Vimeo's outlook and future performance. may believe, by such we typically we such statements. statements we expect, anticipate forward-looking be words preceded as These or similar our this video. These and materially subject are the actual and from in forward-looking differ results expressed to views could views uncertainties, risks

including provided in measures, addition for not a forward-looking have to non-GAAP also metrics or our should substitute from regarding and information We measures. GAAP in key These certain and financial certain considered measures. isolation be as

financial Vimeo's can our release the Anjali. regarding over Additional the reconciliations measures, our section and in including with Investor information comparable GAAP as of it on to website. performance, be our with filings information well found earnings posted With CEO, SEC Relations turn supplemental that, in as Vimeo's I'll

Anjali Sud

QX welcome earnings and folks, to Q&A. Hi, our

HQ able trying Vimeo's are video. shareholder shareholder with our We night, Last new Gillian me want. from quarter. from product. enjoy an Gillian experience. and features, record [Barnet] you We letter something engage we the the in Vermont. new however content video from stitched you added so New interactive and published were the our Vimeo respective version to office then new interactive using together can our her We locations, of and updates It's this York hope you the in our the I

experimenting. are We

if you out There the the call us it. at vote end like poll take on three give So quarter. want things to are the from to I your

growing over Vimeo momentum seeing revenue net retention exciting XXX%. are we including in First, to Enterprise,

to better evolution strategic a users. our serve business higher-value executing offering self-serve are we Second, in

near a third, and execution. our in long profitable valuable will believe And improving dragging it we is our term, self-serve term. with growth is grower the in visibility along our the While be

ramped free let's and we it. generated some up jump into questions. adjusted flow. team and cash management that, our positive positive quarter, new That's This EBITDA With

Operator

Cowen. Kerr question from first comes Our Instructions] Bill at [Operator

Bill Kerr

I can. if X, got I've

So story. you're really talk important for through move top is Vimeo about we how about and think thinking reacceleration we the just of you into us as XXXX? Can the that reacceleration to line

Anjali Sud

sure. you're Hi, absolutely right. And Bill. Yes,

I in company, a a for think XXXX. as reacceleration real critical us priority for us, is

in bookings the ability sales And both there, the in confident sales-assisted near we feel Enterprise. primarily see also in we're the the Vimeo quarter, shared great our we improved execution to video, momentum leading do the but experiencing this indicators. in As that's that driven through accelerate in we efficiency, term

being within So self-serve, to are signs traffic, and trends, of harder strong we have of low-hanging our sure. and that in demand pipeline, seats used strong even when, marketing. about which weighing improve, and top-of-funnel fruit see if macro like not areas areas that that. We All conversion, retention. the direction think ultimately, That's AOV But outside increasing matter accounts for predict right increasing think kind feel traffic of enough of increasing growing. in our we doesn't moving makes AOV, like is if. product on number in a Self-serve consistently, increasing NRR, us great it's for pretty we

two new have We executing there. that place leaders in are

term at of that tailwinds sort will the overpass but it's we time. And so for headwinds, the believe end really, the near-term over day, the really long of over video

Bill Kerr

product mix what the look on product and 'XX of sort but the well. And going viewing it velocity? the briefly, you Okay. as Great. my feeling might pipeline be that question you're and and mentioned into how you're might how like self-serve, other between about And was balance just enterprise what

Anjali Sud

to that will space, committed shareholder and to video. continue product XXXX. check that to will that what But in to you hopefully, from this see do leadership maintaining innovation Well, look out are Yes. chance is interactive you got in we a and our we

see the you departments teams, say, able companies to and will at employees to lot be focus the look in You at largest also enable I of world if will that products use and year. on a video. road we Interactive, have new particular, products map it, Library, lot how we launched Enterprise, thinking a we're Vimeo in the In launched Events. Vimeo of Video we about our launched we in launched last But

the just us optimize the it's you'll to products we and experience to and then engage have get so and so people products really user really we products. that also And be on see those have, adopt look and the unify to discover easier that improve successful

have who to just our "We we be us of I the our clear you this us the discover coming is long of this map it. when areas already Vimeo experience really saying, actually of I'll to that of video, making suite," people be anecdotally, are that about be some But term. we the the And we indicative idea the no from was to easier been number say, in for couple a on net critical I think and this user will like our road of that kind power that opportunity released is had think to going thing of new there taking did think Vimeo's pinging majority and it exists So in innovation marketing. get people within actually differentiators just interactive product have the

road And oriented lot of I that map think, so our you'll a as see, around well.

Gillian Munson

way think a about self-serve how all to we that a is an is it's up large lot metric. remember we've the individual really about the sell corporation. It's to before sales-assisted the product. product And that talked same, versus idea the important from user go-to-market The a actually I

those our is business. the do And that's the do terms absolutely That piece from piece we a getting strategy. going will start do sales-assisted come week business anyone So running videos the and and we ultimately, you it together, could today of of we're to could. numbers be key desktop, to last piece, that could in way bigger I them of we where is and the over from the And and really growth is desktop, construct of Anjali said, time. using your we're even our way the you a saw bigger what report taping the as the think the largest majority from

Operator

next Piper Champion question at Our from Sandler. comes Tom

Tom Champion

guidance time. improvement the out on get that given third challenges of to the self-serve, of strength signals better is you're that And scenarios at that seeing in like you're on exit It a based sales-assisted of decline saying forecasting range confident that achieve, the the you the rate based 'XX self-serve? just can sales-assisted, out one what you're a in sounds bookings more X% Maybe quarter. the that will growth you saw than

Gillian Munson

think I right about think Yes, way the that's to it.

As remain that we assume that's we we a in challenges in about planning mentioned stay self-serve our in for -- conservative planning purposes, and have we trying that. while, for top-of-the-funnel to we're sure the video, make the

a sales-assisted, strength strong of going and this we of indicators terms see into that In has quarter lot fourth leading business momentum. that

of of about productivity, a in look ramped in amongst feel optimizing, and take sales momentum our of you the is the lot in pipeline the enthusiasm quarter, in we terms the bookings particular, Enterprise like if products, the quarter place now sales have force sales a rebounding in the in seat bookings it saw really Vimeo really assistance. at the makes us -- the So even we where growth, and

bookings. bookings where sales-assisted. be in have So confidence. would blend to the by harder the we will trend is reaccelerating we Self-serve sure, shift be That's we'd terms forecast, think of for get in us to driven but where most the certainly like

Tom Champion

free just one could important. What since XXXX. I this? trend and Walk of for through If Okay. this it talked ask letter Anjali, self-serve, on more. is us you, domains Can why elaborate that's seems very like business the within about you up is this maybe that? strongly

Anjali Sud

sales it's Sure, said, Tom. obviously, really think, we as funnel. potential team any about one regardless is self-serve their Well, to and the We in future. the video see ultimately, the through in any don't so right? to our she of we in a quantity we is we the such users a question think employee of And through and budget, not those and but sell, is one size, want are video just believe self-service, of a use any Gillian, sales-assisted, quality about going And ways what force. strategy, think they're and I the it's when that about company large website, are that tailwinds

to are a having going contract, immediately human some an And start speaking and before free website directly invoice purchase great. that's or try always to a for or being want manager they we of and instead and think through and account an a to and buy

profitably. and we will look to some purely of do users, so we'll on it And those self-serve serve

one all market kind them, really upgrade of into we're and some it we going And but is sales-assisted, upsell that will after. of

is our you how to is types look free people convert Historically, traffic reason been to that types as more if users has the like that I and our of stickier. convert website they profitable. at optimized market They higher. They of highest-quality we are and so those those been as nor teams are higher highlight And are targeted and are domain haven't have engage see delight to They focused and and users, And different They employees, we users. AOV. companies. business a is what that group, at in those optimized drive users. for

that is in like them how more growth into see convert we and we the concerted really product good of and all attract of the always you're now look a what for we to that on really is so our our pandemic through effort platform will user more this And and we is strong. there anybody, must efforts the self-serve to, is speak to news the be marketing And of both a products. trend but serve going more above can them understand

think, be where see grower And term, grower. as us want that gives profitable long a so through We don't self-serve buy the just ton well world their self-serve, confidence in as people will future a I aren't the do-it-yourself ultimately, to human and over a that's, of a to what software going being. a

Operator

comes Wells Our Brian from at next question Fitzgerald Fargo.

Brian Fitzgerald

We shareholder great. really informative. thought it was and was letter The engaging interactive

Could So adoption. ask recent questions growth in few where idea NRR and of you that's multiproduct the quarters? that. logo NRR at where I you the retention, the XXX%. dynamics factors those the give been We And quarters? A you talked terms few wanted appreciate in seat to some retention, drivers of over for sense through Can you us give about of dollar see an a us in next of there.

Gillian Munson

I'll glad really who getting we're that video. really reached the had too. fun it, numbers. a We loving people for team cover and I on our you out I the lot love to making liked is think of We're And So really do it. want it, LinkedIn

can you my peers to it, do can I if too any tease I So out there. of

In quarters. XXX% the for NRR, below it terms couple the of last was of

And in so popping of up the deal in really then that product promise above living the amongst and expanding our XXX% minds in big of we to terms have want up a landing is to customers. really terms

give I'll to really in more we're use give so over she you excited seeing. at And of Anjali the a to how we're sees little it expansion cases customers about that. terms and detail

Anjali Sud

Yes, sure.

NRR, So of you're steady of parts been I planting. seeds that as think just materializing very is seeing, it the relates really Brian, the we've different to what

So I'll go couple. a through

we've cases. a and if shifting Livestream First, to logo use certainly, improving you recall, a when our invested product just use at stickier you in as case lot from retention, away particular, in look

use Vimeo to the pandemic, we We livestreaming to and town were capabilities much during strategy, the moved And launched or least more at livestream height us using are multiproduct a of the launched when to that customers So halls. then sticky least like and like should most be. tends we Library of be Video stickier Enterprise things case. first

logo we're it's value what that digits rolled to realize their the our think and is we've this both our triple satisfaction based seat seeing enabling seat is that And to on value then and launched we second expanding usage accounts usage. on out in to for to we're I retention year. seeing per so start for is also show pricing seeing customers model the other new expansion. And realize better people seat that to There, but quarter. their We the piece all we're year-over-year And up we for that shared grow or pay think that customer retention. sales-assisted in

retention. great So that indicator, that's a .bookings retention of both logo leading your and

get And of better buy selling sign to in bookings are sell that largest kind that think, this work. at year-on-year specialized I the Still to we're a we're really, those sales do video did really of look group our XX% better X take greater different it's we shape. The have starting really call And only to room improvement sales to of that That's things They I we become that see are X,XXX companies a at companies. It's the sort Those with let's more in and larger did shared so our we of the how thing force differently. to to grew And quarter. Those what the customers. for really starting last say I'll by sales out beginning okay, a reorient of sell employees. have year we are but combination accounts we corporate to go in finding how accounts. to customers. is those we great, force good that's motion. force starting a the amount we our than at corporate looking learn, at, of

those And is dividends that we room pay contributors. we think great the well. improve them will all thing to all all continue So of are as progress of have and to as I in

Brian Fitzgerald

the QX. investments Were we question and doesn't It outperformance. appear had was that that any implied between timing QX, it. the for the drivers follow-up changed note? of QX materially there Got just the effects EBITDA outlook QX I should around you've in being shifted And

Gillian Munson

X we for it's able to the staying put in stable. right where the to been that's No, think guidance happy have essentially We're guidance a really I is to mean expect year. row Yes. that reasonable the quarters up

third the and really of describe balance, like cash we profitability, one It about is model. and have have We to our care that. this a a has profitable things and quarter be great of the business. business itself always terms I business we really want we In solid to about strong

quarter. being revenue, of so bookings, cost bookings sense us a and a needs in given what of gives the our to And be structure indicator of leading good dynamic any

we that QX, important rate was of I bookings terms X So that about shifted how factors that bookings One to the saw real are up. of the there in in declining. think the -- EBITDA think growth is are

And by early doing the so a riff quarter. in reacted we small

the well a side. we've in And issue there executed savings little bit addition, so was billing compensation some from And had recovering on the earlier we system discussed in on the some team that year to able was expense very debt with amount a us quarter. swing you us all. take That have bad the to in reduce in And for nice was the that to of QX. we had QX

near good for line And where talked so about breakeven. EBITDA in before, to we we really we've about sit. results. feel proud executing the really really their and we're what that is we've and of team about with That QX, talked strong

Operator

morning. question our I'll over That back for We you in final joining appreciate it was to turn statements. for us this Anjali, closing queue.

Anjali Sud

a year product momentum. that we strong that have translating product by Great. focus forward saying world great think business, close I into XXXX more changing the how we look with enduring the off uses to to and and wrap are value. will that and a video, one creates that We shareholder we energized start is

you for And because entertaining. So time. thank out you watching both me all or watch you Thanks. me I already, haven't instead picking the the really us of of video. hope just Gillian check it's and choose if

Vimeo (VMEO) 6 Nov 222022 Q3 Earnings call transcript