VMEO - Earnings call 1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and thank you for joining Vimeo's Q1 earnings live Q&A. We're excited to be here in front of you.

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 other 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

Last on interactive night, we Hi, and folks, published our results Q&A. video and outlook. welcome to live QX an our

check fun sure You even got important and of out, to lot make end across. a it in most we good there info there's quiz the the at a information

we first that say XXXX. to exited for on happy quarter track deliver goals the I'm our to largely

We On levers business we're self-serve, self-serve. is seeing should us on further. cautiously to macro that we're help growth, we both to and return optimistic. the we our by the business end trends the are that year, the of for for right funnel, stabilization executing believe across total priority a we're and post bookings COVID of to believe the demonstrate track first growth and Our

Enterprise we as business a we're increasingly become third large clear the we're over with than Enterprise, our Vimeo to what growing see. get a believe consecutive market path think very time, customers. the We wins of On by there. we for product the and Vimeo enterprise rest we and have can growth Bookings excited quarter, accelerated faster

to get more is profitable. Our and efficient more priority second

EBITDA a quarter, free third adjusted and Here, consecutive one positive we had our positive flow. of solid cash

patient. investments our and is balance $XXX think adjust flexibility see. Right now, we cash we the on to based million of and on the have patients we're sheet what We warranted

quarter good. for so the so really is So far punchline the

With questions. that, let's get into your

Operator

will Wells question come first Our Brian Fitzgerald Fargo. from at

Brian Fitzgerald

in then letter, leading then companies [ some Is strength than ramp enterprise there small maybe using Brothers. out the it? business, ], highlighted welcoming changing I Does the you et enterprises [ larger UCLA, continued And to anything backdrop? you Canen logos the with those macro talked Warner mid-tiers. BBC, also with Canen to the progress that UCLA, mid-market cetera? of to start Is wanted -- enterprise side how and ], in differently call the about of

Anjali Sud

Sure. Brian, to happy answer that.

So to looking there's use and customers with use I say use is to Vimeo enterprise looking One is the And internal or customers. their cases other to marketing. would employee communications. for. engage video are that Marketing more X generally reach teams

more. this and So halls. everything you with live engage and generally, video is them workforce to native helping training have town streaming And more from digitally onboarding a just employees just

and do nor difference types, And across the for. those looking see types we we the don't use of really see difference cases those sort X features customers a of customer a different that in are products in

it's it and creation. library, sharing it's So and hosting events, video is

versus it's a who we generally, there. big that the the a no a our we whether And so And one, the major is Certainly, on difference. seats. way decision-makers Fortune makes cycles, smaller large differences strategy sell, involved, sales pricing sell company based to, XX

users platform, more So you're and enabling difference. a our would, if that's But time, the of pay you over biggest more. company you're us many really larger

really there. good we're now. new kind and feeling what And And seeing of then enterprise lastly, you asked the about on macro we're right

cycles. the we sales major differences in it in video. not I seeing shared We're think

you if really winning more up is enterprise just market, And the growth we're look relative think just to and up win year-on-year. the rest of pipeline we the Our of at nicely more. rate Vimeo year-on-year, rates

the far has So years. so in think, so X Vimeo it's good. really, last And Enterprise, worth noting Xx grown that I

going the do large be we that it's business we get So a have to kind ingredients to and really think there. of

Operator

Our question from Sandler. Champion Tom of next Piper come will

Thomas Champion

Anjali, a maybe you talk pipeline. product bit could just about little the

for think you I to if and little could full well. you bit in Gillian, and maybe the high year the just, at could how operating for expect And helpful. some to in income a to elaborate as level, about year was we help reference some would that year on letter Maybe reconcile really think partnerships refers later announcements with newer the that. guidance be how see. there the EBITDA. Any then impact that XQ we us the color G&A as about reconcile the adjusted And on guidance, to a talk curious and

Anjali Sud

Tom. Sure,

start I'll So partnership with the and side. products

through innovation last believe you why lot platform Vimeo we've If our we built years. for video about for this few sense makes capabilities simplicity. year, actually quite product a think the that in of it's because our And really into theme

different and for this make to experience, the actually all product or a way coming whether remove about discover they're we coming unify any just and easier adopt Vimeo. we're year, they free salesperson. just thinking do so it them friction the they're How and make for it user, really do And and how we understand to to the the on things start easier can do to using for site talk

or recorded content make and new new capabilities really planted users. think innovative of The our continues even launch for that going more to of And will of use challenge better. even easier said, in next create but about video existing users. being will content you So for is easier cases a a most teaser for make you it do be takes and it planning more to take map that's and things makes year, we that road How piece do our whole high-quality, this easier and like see seeds video just that shorter do these not meeting, And after That how we experience. knowledge you over us simplification do cheaper few are capabilities and we lot we much branded digest. is to some that the faster, it how can do do simple that for include biggest think how go information, today launch to the you of make whole you quarters we're X-hour a the example.

us would doc. a like You'll enable way you things you the do we same see edit Google do video how a to

expect. some the are those you of So things can that

approach hasn't changed. strategy and the our On really partnership side,

partners a where on more a introduce of are the partnered when And in using we've to the example, be have archived to advertise biggest video looking platform, see it areas meeting, or automatically platforms. communications as a date on have power platforms, Webex enterprise you cetera, edited social think and We as that Meta, TikTok, you for then to And Vimeo businesses Internet the to those way you in video. run to X could I where et so Zoom Vimeo. reminder, then continue and media of people power the in

our product think to look to those in continue you'll I us integrate areas. X see

more to that helps do capabilities. like introduce so our And far, people feel we

Gillian Munson

and we're on where about we're we're like feeling just the the of going. a things. track. good We And getting then It's couple guidance, on feel But we are. early year, in

we I moving our to at feel we when move. kind want in track So reaffirming we the direction look QX really results had, and EBITDA the like of and guidance, and I in on revenue are

In QX, we've million your guided of $XXX revenue and to EBITDA. breakeven

the of range quarters, your that just we're keep you year company in in we beginning costs the seasonality on the of And can and itself, the given at make holding business confident we really in through today actually so are strong and say the ROI. EBITDA to sure mind. the as discipline that And in what work gave the we you I'd more EBITDA see terms

going putting So great other. to and track. feeling it's really front the as start, I looks foot like into had out of play thought so a think in the on XXXX We're It's And we going one year. far just good. we're early

to the non-GAAP you'll about flip in if Now put we EBITDA helps handy that And we've table delta in in you compensation. and quarters, between believe action typically always between got of X. the actively that XXXX, our into in believe bring And talked stock-based year XX, really shares income burn largest in be operating you we've have and to the operating seen income down and we And bridge that number around and too recent us given you've a past rate number to terms of and end we about a has million stock-based Page is we the that in are taking see have for this the us of adjusted for press high. too going EBITDA Kind release, Vimeo. quarter, to we out that the $XX high comp XXXX. that from the in

as that or out would in come cycle. sort you'll a give number XX% of out down XX over comp, to Page compensation for comp that vesting look the So time. say Remember year. QX oftentimes you about time. we costs give stock-based comp we see million at start think lays The take $XX stock-based down I the for stock-based follows trail that the and then you over

that little the through a roll So it takes waterfall. while to

highlight. to talked in other about one We There's wanted remarks. this my I a prepared bit on impact little G&A

than As have. that G&A. billing of bad to a debt was It had difficult reversal little caused typically a hope That have that. we we was an had year, to bit you rollout last impact QX, may would us to recall, us. In a we more for

EBITDA was and $X terms Hope the of a helps. because to or basis. for have we take, about I've more probably normalized not repeatable a kind nice getting in of that some the What performance that very talked strong is back about so that quarter. in of give QX, benefit million, And

Operator

Kerr next at Our William from TD will question Cowen. come

William Kerr

capital cash like? Can So long how you sheet. then self-serve you still term, how balance especially balance and free you're And thinking tell a near as about continues about what a the wondering just look on nicely, be And thinking potential cash both to allocation, that just the self-serve to strong bookings in positive. enterprise and you're drivers of of business flow bit get headwind. was have I you growth very a to grew the return the us but

that yes, be would super helpful. So

Gillian Munson

you talk some of going numbers self-serve to want some reverse I I'm about give So in and because to color. Anjali some more the

capital So allocation, piece at We running the the on we're important think really of it. it's a looking business. always

buyer, pretty want. we disciplined For M&A think attractive at but us, that we of about opportunities. We returns are kind means looking we're an the

and look much not want always might acquirer are in met our attractive we far, to in ultimately, we standard we so think, do very assets what So, for has the But there. a space. of terms we

second The is buybacks.

We our are as to are the We back regards policy business. of that. investing are finally, and changed always you stock employee looking know, buying actually, we the there. at stock then in And our with vesting

that in growth believe to but grow we think of where So are some EBITDA are certainly today back past what the enterprise upside position the -- Vimeo that we we've about get and really has the to double-digit self-serve continue versus the some talked is the investing deserves. capability, it of business we and we to

allocation. capital the on that's So

to want We pillar great economy, and is for patient awfully in to and it a we're be our think strength it company that uncertain a a with very careful sheet. prudently. money have We spend balance of

So that's allocation. capital

to sort of this couple of In context. I'd give on, regards to and like there's people going things self-serve, a

impacts on COVID. impact, So self-serve, macro during a is is biggest of self-serve our on which one our the relative success business

cohorts had traditionally year and retention received That's what get in were of XXXX cohorts. XXXX. get math we in any of X the XX% us new going the the and for like the the just business after through the in is into that a that of would those business end us. bookings to X make terms We'll That's cohort ours as raw that in you first almost those And subscription we easier the XXXX behind see years So at years kind we company. this About loss of XXXX. of you year. working get we a triple second lot year of are to of

are lot we a of working In execution. addition, on

you As CMO. new we have know, a

our Chief money new a doing on of traffic have We getting getting we well. the to focusing where work are Officer, kind that's of lot terms of and going return, good we're a Product in convert a

really And as Our is against executing these are product about hard all of has really aimed before. talked on to at growth. team getting working simplification, back Anjali self-serve

some seeing are we are Now plans our signals working. that

saw for last starting traffic couple Retention nice things been that same solid of So thing are indications has stabilize to quarters, like us. with we for sequentially, the conversion.

is is we to year, get early, the will rather, by half so revenue it it's by of of the business that, the believe of And and second believe -- bookings It will to year other. it. while the and end will continue that We front a growth in of the business by back one growth follow think we show year. working, the and that the end that, the foot

self-serve. that's that. know So are to if And you then with want to don't where I add Anjali, we something

Anjali Sud

to just sort in add, Yes, the would addition I metrics. of financial underlying

you serve product evidence look good Vimeo Enterprise, nearly members if XXX% And that are Enterprise grew year-on-year. to and using usage our accounts shared particular, at businesses active on Vimeo I metrics, to continue great Vimeo We video just in more that a has them. team see

of that's at among look of impact. self-serve, mentioned video And then you usage companies. So members the COVID team just at Gillian if kind

you at growth. XXXX from metrics, our would to annual you now, normalize COVID of see rates look nice and for bunch If is a growth different double-digit compound just what for

specifically, active double if platform grew at look the you and those monthly so uploads, self-serve, usage of And on digits. users

if for the to growers. of form you user, on you basis. digits average normalize Then those usage kind revenue and double paying at a per subscribers COVID, ability net our were grew monetize normalized of they also If that in look

back, step I control think we a that execute back can take self-serve lots get have levers of to we believe we we when to So and growth.

have video. be experience cohorts a will just the that we to in moving the a for sort for think grower, normalize buy from of future. using of net COVID, There will on been through. there's more be it the if are you basis. percentage have also free would We that COVID no self-serve reason And and and product want businesses always them And broadly, a are that self-serve shouldn't

Operator

come Our JPMorgan. will question next from at Pfeiffer Daniel

Daniel Pfeiffer

Carpenter. terms increase about self-serve have the focusing business key have then on levers to business? self-serve it maybe the Cory in some for you the call on about time? to kind expect second, you talk can you X over ARPU talk industries and and some of maybe the longer I trend And on ones. targeting you you're I'm how just term enterprise the of of customers Can quick of in

Anjali Sud

those I to talked is say which have I the industries focus that in industry on we don't self-serve. can specific We point, about. cases use any on we are focusing X do

or So size want and events website video to they businesses social put market and media of video, on any create that their employee want to using they run then or it communications. to want

enable engage that employees video their or businesses using and to So want employees video. train with using their

will user every use platform What is remarkably is base, you I tell And we have on on X industry. the users. what of our users cases. nearly it XXX million those it And the consistent and we see across tail we looked registered long at have is

company. that this speaks You can tailwinds every think more medium. business, And addressable broadly to every market the and imagine I in the

Gillian Munson

And will we let as quite bringing addition on. bring because in now. bring Enterprise. then around running customers growing quite think are up we on combination terms over And talk $XX,XXX about on then first customers continue customers for It's time, the I in have. ARPU new new just Enterprise range has me rapidly we while that to customers prices we for of in Vimeo of Vimeo a and ARPU, a the been

to at of is almost the That that have can vendors opportunity any people set the market, multiple other our we our that performance way to ARPU We consolidate in said, and believe platform price that versus to up going bring opportunity customers company an at tools certainly we look when have. look our for an range. from continue we're

that's enterprise. So in

ARPU opportunity, our terms we believe towards have also of moves as self-serve market side, customer in base. that businesses we the an On more particularly

so well. feel we as like opportunity a And nice us -- and that's we for

that looking at customer make to and got and that our testing to are to continue of in price performance sure base, and ways new optimal do the for mix actively here in self-serve We always pricing XXXX. we've we

Anjali Sud

example. highlight of do creation is for I are our for tools, last X.Xx one that to users a we user Just what on bookings. is They higher using the example, want point a on what look, stat if just but driving one self-serve see we not is when at platform, video, newer uploading that

of there more with willingness to getting we've and So the customers is hosting do platform so pay. do and in so diverse them And on more nicely the clear really simplifying we we're value very higher things. the cases, to higher video invested a why do key but This unifying a so set all have that just use platform we why view broader, speaks not to a multiple creation also have today. much are on focused and to

Operator

next comes Jefferies. Our David from question Lustberg at

David Lustberg

on This on start, about I is the side. the enterprise I wanted Maybe X. ask Brent. to for to ARPU David had

shift And down nearly talk active but come the through so know maybe of a I have obviously, And And the guys some that helpful. about you that would Maybe being model, it with about enterprise kind also was be color dormant there of follow-up. monthly on guys side online. the dynamic. SMB, members seat-based I talked seats just of the talked but team some Is you doubling. in year-over-year

Gillian Munson

Yes.

structure to of there. we ARPU about, the be for upside technology are and of we've on continue our kinds both on bringing I and the is pricing there on So programs in we believe around We opportunity $XX,XXX. to think Vimeo Enterprise, talked based as that,

bringing and on you to and case. fairly think You remember, are that customers we continues expanding customers the we new rapidly have to be about have, when ARPU,

in In bookings waterfall. can any little given the bit mix on in based quarter, it who's a of the around move the

is a the it's going to small those fluctuate get big, quite on We bit. a numbers to can still business think cause but So that relative basis. little

thinking ARPU. that's how about the we're So

David Lustberg

wanted to I so ask ask it, I'll about about it.

lot on think us on impact negatively. how and just thinking thinking your guys are tech AI update stories, and it of can with you guys positively envision how any are both you AI their working working investors I Maybe how give products? are an of if and anything it about leveraging about a you

Anjali Sud

Sure.

new Vimeo. So noting, first, isn't AI for worth it's

been for actually AI And AI have help and for it from We a in to video already investing make content leverage years. machine our to create learning several scratch bit Vimeo. we easier today on users

is that for one, in is creation view AI too simplify a and general and Vimeo Our AI help is big video positive still hard, ways: X sharing. video can

a we know And so content. benefit. that, is generating #X the think, adoption to is We barrier

easier way You we're content, imagine where sharing can gets that hosting suddenly, platform all for world generate video and to a of and it the content.

very So we think that's exciting.

of make. then excited how of these is invest I sort major AI-driven But investment of it's We to we that of on also say advantage will there. last you'll that is, we're video YouTube, general, how data the see as we we positioned can uniquely after And and thing the can company, have. we're then noting, And more Probably the are It's to that kind of about take to a of as strategically we're AI just the investment other efficient, well. we amount asset use continuing new in because data obviously, to Internet. us incremental we thinking And worth it more continuing see an productive AI. We're be in an any be in our future. about really trends. think more second like need we about leverage video don't largest the as source

Operator

Our comes from Yang question [ Chris at next ] Truist.

Unknown Analyst

the balancing you the Yang investors ] platform able next versus Youssef generating financially. normalizing Squali. about years? in over the several to us We're [ invest needs stabilize wondering is growth Chris are you and This margin on for for markets How think to do with

Gillian Munson

great a question. It's

profitability is growing of we our So when value the we company. value we think really most for Vimeo think how about we return can think a and profitable about growth, the balance And the create investors. for highest

execution double-digit what it So believe business. revenue time, EBITDA be growth is we we've double-digit be certainly about a believe But Vimeo can a that business. can talked also we that over with

the be combination X can valuable. And those very so of

patiently And so are that executing towards we goal.

revenue, generate first and The goal haul. the to bookings turn be to longer in over then the to our growth, to will we more get our is scale much followed able business by

Vimeo have number should opportunity see said, started We are we there think getting Enterprise, with we Enterprise. every Vimeo the customers have. That with huge and a of we business just

be at and a look case this -- to to in we we in seen when is are alone, swing XXXX. profitability achieved. EBITDA We've guiding what at So it, always, huge profitable, want we've our we QX that this environment, in and for

investing put little to a are above that, grow. to We amount a continue to actually a ourselves position fair bit in

of that we're the create Our growth spend. to great opportunity would think returns we execute of pull if is we we view terrific we our right see we a the which the model have don't signs gross because to because business on is back margin, EBITDA flexibility should with grow against for now, deliver that, like nice solid then going of ability But that what our our model investors. while

Anjali Sud

a It's just investment noting, choice. every worth is

about think be those of excited about been continue see and disciplined at growth, most not seen the will to have disciplined. and that. increasingly we Vimeo just I but and each efficient committed a you having I long to time, we're growth very doing choices, sustainable are us We're

Operator

back the hand there call over Anjali. With and that, I further no to are will questions,

Anjali Sud

by that goals. our wrap we're XXXX QX track on exiting saying for I'll

Vimeo returning more has company focused focused growth. market will for focused on simplification, video the on we're We to businesses the and product that believe on video best efficiency, continue businesses, only to on the adopt that and

you Vimeo, on in progress quarter. updating our Thanks. to Thank and look we next forward for your you interest

Vimeo (VMEO) 4 May 232023 Q1 Earnings call transcript