Earnings call transcript Q4 2022

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Operator

Good morning, and thank you for joining Vimeo's fourth quarter earnings live Q&A. We're excited to be here with you on video.

Before we begin, a few comments.

First, this session will be recorded and available on the Vimeo Investor Relations site later today.

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 These and materially subject are the actual and from today. forward-looking differ results expressed to views could views uncertainties, risks

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

comparable as GAAP financial our posted Vimeo's information in section with website. Relations found Vimeo's including Additional of supplemental Investor can performance, in measures, reconciliations earnings filings regarding be with well information and release the our the on SEC as

I'll over With turn Anjali. to it CEO, that, our

Anjali Sud

Q&A. precious, shareholder click outlook. to an is transcript. you can linearly hope season Last night, consume. engaging Hi, We and of Vimeo's we just fully folks, we make and reading communications interactive. demonstrate video results it's and walks video important through know quarter watching of interactive through Once our again, our update easier can product that and it use earnings course, welcome to how make so fourth your the We, helps that the published instead more and to or time content this to our navigate

I'd So take we like to highlight before questions. X your things

Vimeo that's quarter, a business run $XX We growth the again were as bookings the X In in we've strong. a in Last Enterprise rate growing built under rest up Net Enterprise. than looking million great driver and XXX%, of early days. a faster above market. was momentum still customer revenue Vimeo big year-over-year. in First, bookings retention its we with usage have years, see very XX% is

with XXXX we'll investments. in into momentum this So our lean

that the get product more few back years. trajectory the we can than normalized Second, by past we on self-serve and growth simplifying our on fundamentals, focusing to a believe

quarters. as clearer COVID is expect here visibility and sight we more of we getting far cohorts, few the get line Our next past the over

efficient. quarter flow, we And our we is the improve adjusted to through based getting to the margins. commitment straight choice This is free while cash scenario. our with entered as EBITDA profitability that flexibility growth move XXXX a growth third, more invest results keep second and we're in on the positive we This of assessing will to year in any continuing with and

So let's with that, into jump questions.

Operator

from Tom Instructions] [Operator Piper Champion Sandler. comes Our question first at

Thomas Champion

we hear me, path where outsized forward retention And that to on of to segment these Anjali, stability get 'XX, and Hopefully, to anniversarying. me. cohorts self-serve given help and you revenue the for the us XXXX process customer does growth? kind growth what those please. understand of back the like look of Two cohorts maybe can self-serve through the and side, the of return are characteristics

in order And then, the are balancing guide if EBITDA like of Curious macroeconomic product range to you're then Gillian, maybe one Vimeo you the for the needs that, to talk investments full for the could you. make And key what scenarios about envisioning. We growth? drive year.

Anjali Sud

Sure.

worse So And pre-pandemic. there quite growing were we cohorts have cases. those somewhat as We you diversified than that's much of to nature few Tom, look, business because of self-serve, past, in last our the over these in largely came are years. but are than also to the they growth. seen that what that very that that and we've use reasons And we get well because pre-pandemic are larger cohorts, retaining believe Xx on said, back good we've the large

to being a gone offering we hosting-only many pure-play have years, customers In different the last our really platform few from things.

seeing we're we lot we a look is ability when for is to because in why tailwinds our grow are there. fundamentals, of confidence so have at the what And video the

We And more customers at the in our there and pricing, and think use two have marketing getting cases use website our -- needs, that to that that better of simple, communications. product cases. improving our marketing making particularly levers have customers' we UX between and a our we great solves these have clear these

time economics a our execute with pandemic, and in back sense We that come the both favor, to gives we as right of the, really return ingredients of, think sort we have with just we that subscription us growth. of the growth sort we the of of coming out self-serve That, coupled sort to out have are -- the natural the can moving that levers.

break kind of I'm say And more. there. So that what that's can I'd down sure, Gillian

Gillian Munson

Yes.

terms biggest of Tom, deltas the a X to the are beyond, to about out classic in what product. think then in subscription year retention, subscription the in negligible it self-serve and the delta. really almost more I'd and that I no And year is to businesses, And get okay? remember your is you thing second business, be much matter first So classic and like starts

So work when but you've you largely as we years of X on got also we function pandemic, large and did, XXXX of a of cohorts in some pretty 'XX what at look new. the had the trial

when grower. those swing folks as we new itself, to look underneath be a have business. X factor it and all 'XX lower on years much time And the new mid-teens the at into all, the By we will end get we a about plus and of in see 'XX,

bookings renewal when get it the where all and XX-some-odd company new together, And running where place you the more traditional to back then of the is it's put a in is rest. so you percent your

So the stay us end pretty where beat to staying folks And going we're to over had that. going -- haul. going on us cohorts and business, that have to an were I the in that to these They we're longer any outsized XXXX that we the unprecedented. fairly seeing and impact are tail with the those event, are XXXX were with in think folks sustainably of

sources note, but that important mentioned, business the products. spreading to Underneath of it's point And in uploads is metrics the amongst mentioned we uploads. that, this, and those paid growth, organic Anjali of I mid-teens see our as to sort that really think out Anjali MAUs,

So from uploads almost XX% all now and added products mix. different we've the mid-teens, in the the new they're from are X up to to

it cohorts. is that we good business a very So all, there growth clouded the years underneath been there of two have feel and couple by that those last

of a business going see there, So that that's we it the to through we numbers. growth in you're why really get believe start self-serve business. that the fundamentally And that's and kind when it's to

You also about EBITDA. asked

having of times stable business. as thing to important. sheet and really we being business to to through profitable think We've the on it's its balance a important our books important And and we work more we committed putting stability do. We sheet really are are is the a us. is We period balance cash many, said many an this in, think

a We while. line for environment have a challenged in been top

So there's that super nothing macro of sentiment given terms with of new those in in transitions. there sort we're dealing already

key the a last haul value, key of other have less made investing XXXX We, profitable are invest really is some that, we drive long growth getting we us your think back as make planning, guidance interest decided to areas. in profitability. Enterprise was then and which our to to growth our part investments Vimeo conservatively gave, of to And choices not And to in question -- being led really strategic in choices. to business, are really we self-serve over which best the way create and the

Operator

comes question at next Our from Brian Fargo. Wells Fitzgerald

Brian Fitzgerald

the self-serve, more to Wonder a A on opportunity you in even bit gaps best-in-class wanted relative around maybe any you you trends market? top drill any other inhibitors today, the How conversion the you And players funnel, at in about follow-ups. versus any to maybe playbook? you couple talk could read letter. structural free-to-pay if about free-to-pay of versus this I where to quickly down terms players? are think then if talk can and conversion, there? And narrow you're the We seeing can on maybe in the the

Anjali Sud

there. last us? a you you on mind the broke -- repeating question, think I your for up Brian, it little Do

Brian Fitzgerald

that structural any versus And your free-to-pay inhibitors the players in in closing In conversion if on conversion? are playbook, the to gap other -- what's are, there there market? free-to-pay

Anjali Sud

it. Got Yes.

in top-of-funnel top-of-funnel impacted in with our demand through a think to results at meaningful that, obviously which then of year last revenue did XX%, XXXX. terms decline we around get trends, pretty I hit in we've flow shared So XXXX, and

us We are lower getting a seeing may be material to that And funnel. rate. and require early plan signs very strategy but declining, in that, a change top of see doesn't better, XXXX at our for execution regardless, in still

demand in The do qualified that of enough is we better users. that where is we bringing job can reason a believe there

those of way is bringing marketing attracting that that addressable looking folks these to reach So funnel dollars to the communications, sort how a can businesses to or in internal large use customers. for less of efficient market those more are are either and marketing enough we and who them video

one we which moved for ability way our convert free we just you then pricing packaging our be And our to site, should have that improved we been then the to as have now conversions, value think to giving our lot converting know, conversion, other who optimize And website model both as optimizing conversion. of our traffic and hitting tools, as we is we Vimeo. And and is our per-seat We've we free-to-pay that the can users they do we'll a which, improve and opportunity through. better a to that well think test and us to getting them. that model, so signal how right better right website pricing the working are drive the from see even a look

of of question the sort To best-in-class.

can't look things very simplification on that There's SaaS we can even that the for reason and have we And do set no the I capabilities can we you a putting one in do set in is experience done. is of broad right think you serve entirely strategy better our that do of Vimeo what a our products focused and aside, structural think just have other can website, of we those a can with of what if forgetting targeted, why think more things. exposing of provide very companies at users. go Vimeo. we think And generally, we to broad But our line job a is customers. control you the

seeing really you're think of that. what sort is I So

confidence in make of website, have As really experience a we Officer, focusing really they're on our Chief needle. Vimeo I and just initiative. and Chief sure sort highest those blocking our in, have both new on they but who's months fundamentals, to basic the X sort have value customer, now customers. should of it's a Officer and our many done Marketing lot And a of be the pretty the Product our is are speaks tackling, shift new we of of blocking mix whom a natural part pricing, this product move They let's able that, this a ones times. leading by tackling and think to And

Operator

Our next Thill will from Brent question Jefferies. come at

Brent Thill

remaining walk that maybe And to of of and Just XX% business it's get around picture paint on really where predictability cadence the you'd the you the around XX% aspiration. you bookings. roadblocks you that know the revenue, need I business to Maybe just of kind long-term be? that for create through Anjali, the just opportunity, to can do think mentioned enterprise like the what of see? are a

Anjali Sud

should numbers. every Every native. workforce. a workforce pretty we and shorter. the are the that they have Attention generation more They So around our every than at are lives And using happening coming opportunity tailwinds in spans believe new be entering getting digitally more are on think Enterprise. team, today. for massive They're just what's clear, But in if you spending certainly personal I their Vimeo look I us, company, the are broadly, world and organization TikTok. is the every video

have And video future interactive they a at Are every an are compelling that you just video? to marketing how see do if figure envision train going using opportunity. are use We going -- I content to going back, where create really and going teams we think to manuals? out to to employees Or day? a we're step take we really documentation scale

Vimeo And so to every using our goal workforce video. at communicate power work using is the company, better is of every

in what has we we news with expanding also perspective, lot the now. a We a and product helping one future. companies being relative the in last largest about there We're some And that of suites. It suite. years I a Obviously, pretty strong in in the they now seeing to others winning suite is not of think we're product while do But of good good have market yet. the need we that to that from think world. the resonate a companies mix is investment today. product good have do put the right thinking momentum innovative our of the broadest It's do few

really think set. marketing when So about it in I think, awareness product, is, selling consideration the so and we what this at now, I to getting we're do good increasing need

day, your still all RFPs from absolutely efficient at every know of generating because some then we and not of enterprise better pipeline, largest an go-to-market as muscles. sale, the don't To converting this SaaS And in and of enterprise often they and are get we think Vimeo solution. need to classic companies pipeline,

progress really we've made think still good there, to work there's but I do.

pricing is Enterprise per-seat model resonating. one does But really I'd piece last aligns then of we the our a is did that well it year we success the And customer roll with out things charge. how Vimeo it is last very in just say

that And we and to really executing do those, and fundamentals. video, them ROI sounds so that like fundamentals, monetizing is but from get ultimately, measure where that's then track ultimately the ROI I are. helping have again, really, good the we making And value. on We're them customers helping what successful, think realize our at

success, very think Vimeo business. can We the be for have a I and large, ingredients all Enterprise exciting

Gillian Munson

add had in We the quick or win And Yes. business. in mentioned in the a best just I'll of QX couple rather, details. that this rate video we our call

force and we the really in XXXX momentum sales build of ended et to rate, our revamped win in started productivity, we've that know, you see cetera, As terms as year.

The came In business. was through for piece, it for continues the and of parts year half leads for of that in one more about for quarter, model, -- came to the self-serve hunting our way. and the Enterprise meaningful second self-serve favorite our business our ground business in be Vimeo that is the the than a that

We continue story. growth is overall how of important to very a believe -- you our of that this of piece the puzzle self-serve build

Operator

Our from next Justin question will at come KeyBanc. Patterson

Justin Patterson

like being simplicity. Great. year, often back lot to of have of simpler, to than of to know lot a the easier for your Anjali, a competitors. I as just use I'd innovation theme go us much kind through thought Vimeo

today? that of just opportunity the product? the there then, to that, Just as simplify how some kind of through value issues talk full just conversion you the Vimeo see platform over rate platform? the discoverability what you realizing with you time? Gillian, the And people think could not Are influencing to of Are perhaps tack on

Anjali Sud

Vimeo. do few types Vimeo So video That's last opportunity accessible. We we strength, well, our in I think really video expanded the make complex and continues years, and strength. has it we you on and Where is do have be intuitive. been exceptionally what what always dramatically of more always make an can easy see to our far I been, we is,

the Vimeo. that you embed a XX-plus host video once and years for first had it could you upload video, history, using and So of our

best and are at advance way. we'll We still that, sure class to continue we make stay to in that

event live now on can But you stream Vimeo. an

You can create video. a

You can we our And created the you have dramatically. want record changed do you product able evolved. be after and a things expanded And to that then message. pretty video, to have have that

you it now, built is too way is today. discover And is of once right capabilities. so do the that the already the that Vimeo the to think And easier you've can reality solve much to full breadth I what on hard

in to its way the of the can to you of products ability get be what UX. our our be need the and sort you We frictionless We suite. have viral to do. discover help product in you all into And

is removing And just some steps like process, of simplification. that in truly the true

thing Some to say, in of to best data, are. user to what you next it our AI, the a smarter is we're using actually know we the kind What's just going able next What's of being action? service? okay, be

a time that in every of the that way. of saying it's expose of and say finds power we And this we've to lot of video on more will doesn't in the net know that too is amount investment. there's are So of mean significant And whole customer like through still built power saying launch new year. the talk We're near-term sort drive under capabilities. look those certain simple we we lot types we won't innovation think to single we every areas, a without to We're but opportunities are go a hood and hard, just improvements also a reality need really can focused I laser we very simplicity, one. to not we innovate

You the business can still largest way, budget, XX marketing department and of world a -- the video in years, creating video someone you with way be and who in can market company been a the will it's be hard. for too largest has the you say

sort simplicity way the So we up think the that really world. to open for video this is of

Gillian Munson

from financial efficiency of that growth need And right? is we -- our we going be joke a a But profitable profit is So we tell to our -- to adoption. also IR way. on center business, in piece I I need our it's building like perspective, Vimeo. view huge already And to a a at to become growth you. dollars. piece marketing have a Conversion we're huge is that a of can that.

have video. because We come our have of that customers in

we to time. aid from a little time Now get in that

special thing to that CFO able of conversion to feeds kind think growth to right. home And business, we that continue to And video need they have to a can a profitable conversion. the from their want grow. build or make to. want we I earnings that's into use every be who I helpers of their if do sure the We us to product some help want

as talked think just our kind the the down we us of a EBITDA the this reminder, in efficiency up want we past, pre-pandemic the to where That's periods. about all we conversion, pandemic, is drive to the company meaningfully it can margins but gaining Now about lead gain from we've the from point deserves. to

Operator

next Cowen. from Our come at question will William Kerr

William Kerr

ones. two I Great. had quick

could and other So stock-based have about talk And then there? down one onetime about thinking be And nicely stock-based there callouts forward? in around your should Are just compensation going then investors any XQ. comp that one. how philosophy stepped I you

Gillian Munson

Thanks, Sure. Bill.

been running quarter. has comp of true stock-based the the exiting was had million So those and it to lower. where up That's result meaningfully some in grants. a QX, $XX And in for around stock-based executives, comp we've

So there's outlined that a onetime is a it QX, in bit think -- you in for little that lot remarks, the and nature of if prepared true-up, I will. we

said, important dilution rate set a point of to We lot. comp burn think new that stock-based ultimately of were team. to whole And reflects I a The down a We came our unprecedented stock because a there's management shareholders. brought in more circumstances. comp stock-based XXXX, on and Vimeo, But had an continuing bit on hire.

XXXX a to have that's and look beyond, impact resulting to going at to we limiting very comp. shareholders, are As dilution and we committed on stock-based

around So $XX in and has million we are. been where

our of a tax buyback sorts time in generally, for and dilution come the we that's purposes, which but note level, the settle peak vest down in gone on I have this over is, to the employees' that One company. just of in its at company. other a think mentioned we way, net shares when to own sort video, and start will on

So on will show again, in dilution. through comp focused time. over stock-based very, It very

William Kerr

talk business how tell And how might could a Anjali, And there's just using you about and term. a the Okay. generative lately. AI you bit one potentially was more. little of the us AI then been it impact long Great. over I Vimeo think about is AI lot and so hoping

Anjali Sud

Well, think last AI. investing been there's everyone, Vimeo. the opportunity years. AI Sure. of new intentionally over in few exciting for I thing very like isn't But a ton in AI a We've

We strongest few scalable, that use AI AI last very over ways built things the efficient for to one create video do optimize AI it quality. images increasingly then can sort today. the use AI our and We And mobile of in provide and content, And through edit. so customers footage, help tangible use video with I some we a be you will teams, automatically video so think optimize we've of we you to delivery or can now us years. certainly industry and high to video that create our automatically to use content app we AI help can that use comes system. you our do in

X-hour recorded are now it's example, to So if would suggest you on a that ways an use Vimeo, to for based customers, we example will enterprise and -- chapter archived for automatically content automatically now had and the meeting, on being be, you information. AI

in AI. we can help it's are to ways that's operate faster information can some help create video? you contained like we content you Vimeo that's better quality? those we all So we the within that a of use the designed And quality How today help better can way? how And from then really obviously, a how more get

that's topic Certainly, area at, the we're positioned a and believe looking benefit of and of well generative we're the in play our to for leverage AI. customers. On role we an

one in the we of the really video. sets is that on largest of think One things data is world I do the interesting have

out player the embeddable is Our on Internet.

I has content. think much that player as other is after YouTube, video there no

Certainly, think some interesting video, early a that AI. role approach And a of we're so pretty able not ecosystem really be in sort assets about to it's have proactive opportunities valuable but think early, that. around generative and and play it's as we to that the we we in taking

Operator

will come Next Danny Instructions] [Operator Pfeiffer from JPMorgan. at question

Daniel Pfeiffer

more the trends, churn markets, industry? you And slowdown acquisition the differences in cases Enterprise among marketing you departments. spend being I'm in slowdown Carpenter. the given have big there the ones. rates growth seeing use of question, one versus seeing are call customers And on on any second for about international just on if the in was higher for domestically? you're Cory across any or the marketing few then Vimeo those I talked I quick just broadly, On a customer for wondering

Gillian Munson

Thanks, Danny.

first. the hit I'll growth -- Just international

in Our than a not the faster grew amount by quarter. business U.S. meaningful international but markets,

that's slightly sits. financials, the little better that talked And impact FX FX's currency's on So without where they that have would or about impact -- on we bit a headwind. been

Anjali Sud

add The global the video is global. side. And need on for to then just

to We demand regions. growth countries relates and there, Vimeo and opportunity we continue across a expansion to see flag getting really APAC, EMEA had Enterprise, seeing and started internationally for -- in we're our exciting expand just of it to we sales and international we're planted an Certainly, see and we our force. think as

the it's departments, On interesting. marketing question about

haven't We -- folks demand get would in we to to an what see ROI. for dollar every seen The that marketing be hypothesis more any slowdown demand for greater need there's on have, efficient. have the a is given marketing we actually departments based to for

think valuable. per-seat we has video. point tricky Where easy And we price We start customers, becomes have taken a your value if approach have of, more higher to for right? we've then a to video money your your if clicks, the best value industry, proposition really higher better it's And let's actually in isn't the pricing the model. is make is to kind it moved using of And engagements, need the compelling. and acquire tool

marketer on a start can as for free. Vimeo You

relationship can based really that You couple on a what your realize our usage the you're can start over benefit to meaningful dollars into time, with tools. you. doing, of and we then turn a and pay hundred And of

is And so with that macro we that be desire to taken think sort actually quite of efficient. approach more aligned we've

I things thing months more been of way vendors help one the of add in couple I do seen that for this now of of of that and embrace more. sort the companies And can that. many different offering breadth often certainly last think multiple are we be we is during that sort resonate can a to because want a around around One sale both net momentum be can consolidate more time. money. save video we're tighter solutions. to be of are benefit seeing those other has to And positioned efficient sort is that But companies the last right of we of actually developing pitch and our that well And with to thing we've the we a reasons, more

Operator

it like questions. there no to the that, looks back like are with hand And to Anjali. call would further I

Anjali Sud

wrap got I we video; the we our important make something feel think to this customers our is you and think are tailwinds to challenges kicked team the focus is function to think and products late, efficiency. and and for simplify for to have simplify and make The and for right like our year. all our best pumped. I'll tough off genuinely and for know. video for execute strategy business to simplify, because Well, customers, use and strong, that delight Because I two of And we ourselves. Vimeo it Great. is force year businesses I easier product Despite our easier choices the powerful it Simplification tools the reasons: we is, energized, we've think, for for to a

wrap we'll you and footage thank quick by our time, company kickoff from playing for month. last your some So

Vimeo (VMEO) 28 Feb 222022 Q4 Earnings call transcript