VMEO - Earnings call 3 2023

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Operator

Hello, and thank you for joining Vimeo's Q3 2023 Earnings Live Q&A.

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. These forward-looking statements typically may be preceded by words such as we expect, we believe, we anticipate or other such statements. subject differ and expressed materially are actual and today. views could results from forward-looking to uncertainties, risks our These the views

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

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

Gillian Munson

to you am Adam Gross, be Q&A for thank QX Vimeo's our session. Interim and CEO. Gillian 'XX Vimeo, I CFO earnings happy joined Hello, Munson, by joining I'm and

You our additional XX our which as further letter details Investor the our on financial commentary QX the well has on outlook. quarter Relations information and about website, and as can find shareholder results

Q&A, a Vimeo other from of in grow grew into large bookings. in Total a timing our into QX. of that shows were on believe do, a math, cost. able in leverage, other can QX result category. and QX jump rate the deliver reduction this in our acceleration how renewal solid X%, Taking out We driven up that decline couple our Vimeo's points. on add-ons, OTT to X% team a healthy bookings QX of we model We key showing growth bookings Enterprise about we thinking a thanks in what were shift by from can quarter. self-serving Before disciplined model are nice focus delivered strong we points particular, our the year-over-year, A a operating few of to in

and million continue Cost adjusted the Tory quarter. of sign platform, helped $XX EBITDA Oxford to in premier us discipline our clients We Burch including Alarm.com. also to deliver University,

to we $XXX of of revenue million in to with flow. $XX goals: million quarter in returning the achieving to free the cash that I'm those XXXX ended making million beating third, X EBITDA cash Putting we goals. the X are posting of year, $XX have say delivering and we sight believe adjusted we $X second the of happy growth Finally, half. had the financial generated digits; line entering mid-single we and way or aren't million; the we And declines in on there bookings perspective, to solid progress. of all while

our outlook continue to appropriate, Specifically, I'm and is happy revenue we million our believe $XX have to relay that $XX we that to to raised EBITDA million. outlook

now back we the for About digits getting from to bookings to driven decline be our bookings QX, the the of results will second year, to we come half factors. expected be to now will shift other in there half nonlinear. mid-single by QX, sustained in In The the rest from believe growth that is in category. QX solid percentage-wise. path X QX our As of aside, expect lumpiness

for QX, return in need we improvement we to First, more showed while self-serve expect time good. and still it add-ons will

bookings, Moreover, strategy, near-term as be to slowing, strong softness. be but issues pipeline driven, in marketing which for overt QX headwinds our we product that prospects, we of than in operational healthier Vimeo more due may look in growth the despite saw Enterprise, our some rate we And is long-term are to business. part in growth resulted on at making paid changes cause new should

bookings. overall, will driven We in believe first, are despite the direction right by to moving business Vimeo deliver and in a delay delivering growth continue the sustained growth that

growth appropriately to posture. power, and With Vimeo sheet to Importantly, a its enviable balance cash your happy to our the staying to in generation we're XXXX questions. thanks that, has to invest take financial business strong a turn

Operator

Our Truist. at Youssef first Squali question come will from

Youssef Squali

a on good quarter. Congrats

OpEx, around maybe some So And speak really with into drivers add-ons. have. there saving is to I you on the gross impressive I then you you particularly, little and showed One improvement about questions bookings and bit, the I we margins X to sustainability Can trends, think guess self-serve the XX%. saw QX a the actually OpEx? the in did

is would later, back to we next first be next of more expecting going pushing there? you're on that how what's later? color provide Now can mean, the second a helpful. half And year, I of inflection positive half year? color little kind for later on you Are Any

Gillian Munson

that to remember to going there. get because X Okay. questions, all those like of try was I'm but I'll

So in of had of million. a profitability, we quarter EBITDA great $XX profitability, terms on

would analysis a the we little our far in towards bit swung have too that be think I quarter. may profit

So want that you yourself at I moving keep forward. of a wouldn't margin to kind

parts So asked the let me you about. to break it

does is the team of into our terms terms to costs was the really goods other that a That costs In quarter. hosting gross work basis, margin, in go the on of cost in and sold quarter. non-GAAP about of in thanks the XX% that

benefited healthy the also some in from revenue we And well. quarter as

upside was I costs It and think probably through non-comp XX%, It's course the headcount down XX% over I operating that look a quarter. was It at is as on good down range think bringing year. I X% in where this we the a On a we costs. that. good see the when pretty been quarter. coming So rest you ton that don't were for number, we've XX% expenses, there. of about the from know, about of result

that our discipline show will I on think QX. and we reflects continue for cost as well guidance to

were want little to on probably this a against too growth close cost we investments quarter. and some make bit do we But

to expect this EBITDA in the hold forward margin So it to I there. us as move trade-offs wouldn't proper level we to make order

balance time. have deliver. investment on think Adam now sure Vimeo right of and can cost, growth the are hard model the leverage operating over of very this make showed working I to I to kind And we

good As of quarter, progress of results funnel it are the bookings declined the relates business, The of rate good in top we in particularly We're making better traffic. our progress. to there. the are in making self-serve seeing terms

AOV our up brought we we the and still new, over not year. last course of need on more Conversion is do to want work have meaningfully there. it where We some fairly

little growth to take going bit time get to the to it's us map, Vimeo. get us to to really overall you So from a more know back helps as that And self-serve sustainably getting for growth. growth

And working that. we're so on

a headwind more this paid letter, about in talked marketing we we We, new be product-led of growth important that to and incremental an Adam's focused addition, And for bookings. growth. business. think the little think with the bit long term led and as But it's really transition, point in leadership, make on cause than will we are that about. healthy might super In

In planning. date of a middle of the XXXX when terms for we'll certain get picking in strategic right to back we're growth,

a got don't to I pick there. come with I all. them appropriate think we'll it's get So back them the think Did on all? date guidance But I call. I QX

Youssef Squali

Yes.

You did great job.

Operator

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

Thomas Champion

us talk operating hear now early in Adam, your to the I'd here you're with abstract. doing mean kind just to and in could with letter basis business, love familiar But I the you contextualize less maybe for on running you're simplification of like but your refers impressions, kind what that what you an going. is a or it about more What just the process you'd you're of day-to-day. from are to do. And seeing thoughts? the and current sensible

Adam Gross

Thanks question. I appreciate for Yes. the that.

exciting month my just been closer So just second start really hit about table, from the or at mentioned in the it's to Board think, to I Interim a to anniversary letter. get am, to about as seat I CEO. the I here, transitioning And

somebody community, doesn't and have experience are interesting I -- but yet doesn't are a of since than to story who positive role us. mentioned this have about just not Vimeo is, talking enormous in meet who doesn't people to taken and really the Vimeo people Some I more my I've what assets. letter, in an of our reflections who we to and started doesn't know likely this number has I'm know the or customers and tell who

how the how at properties, enterprises, When various look is we're amazing on amount increasingly our you category and you you all much when we strategic is and look to in millions important those the like look video in and really at of traffic fundamentally to assets tens it at measuring are have that, how assets.

have I really assets about can think what talk focus effectively. that of more when those we together and we're about how talking we bring is simplicity all we

X plus way. X more a So equals and that little of bit impactful an X

we've that attract delightful with take get really to an How that the will customers, so our can How them regards have them we ultimately self-serve and us that traffic acquisition making effective of time paying advantage to take the can then we take leveraging we and growth. over into use advantage we're simple users think have? convert take How mechanisms, and in of and engaged brand? we more strategy. a amount customer let that's yield enormous strategy can engaged of able advantage I them better example as a that efforts it customers? more can referenced of our product we Gillian organic product, ultimately the of in an to advantage that free better align invested and

Operator

at Fitzgerald Brian from comes question next Our Wells Fargo.

Brian Fitzgerald

wondering improved efforts. of lean type paid on some simplification into conversion seen how future? marketing the any And to to continuing the marketing kind has know then given that to can scale you maybe signs what phase want Have point of would and we that related, emphasis funnel? I back funnel. And in. that reduce you're early thoughts of that preliminary feed product any then confidence you the on Is paid in how the thinking the plan about of at top

Gillian Munson

Yes.

numbers strategic Let sort first, have that about me of talk and I'll the the side Adam take then Brian, of side.

paid a down It's really decline the careful course paid bookings the better strategy down of rate balance. have, bringing paid from of reducing we on we've been marketing at product delivered over the -- It's And XXXX. QX, than the had versus on we've marketing there. company. been early a doubling in So perspective, days

So there. bit a little results see full to early

And see belief marketing that better that's and optimistic usage, as to that a to that you're has features and year I easier functions a make easier onboard build -- paid we that's opposed is at talked I us growth get early into to the Vimeo, very really And bring about, of doubling all long we've growth. best as better as make we what the feel that. think going to with on doable. Super team it seeing But that, to days are to start it our Vimeo. is work been think make features lot to down the the it lot product-led to doing

a okay, think say, before back marketing. the on I while we now it's paid would turn let's

think touch our have focus is folks who of the I Vimeo real we making, a lot product.

use viewers of like product those even the there's I of folks. think that sell a it's that in millions for to and people to core product million the us every see lot month. XX And subscriptions -- opportunity

still I okay, you'd you have get So marketing a paid now the strategy. think we time let's where to say, reassess place till

now, doesn't I spend It paid. focused we're do. right think For really on paid. don't mean than more money We on we product

So think be are on Adam, business the want because I spending think do to we you if to orientation for pay, but shift we're time. trying that healthier said I really I that not over would add remiss anything? it's we

Adam Gross

Yes.

our thinking experience. pretty early marketing Gillian mentioned. thing that about new solution. But all the product, still as in keep the is on in that it's doing mentioned, the Last an an is on eye strategy new would alignment. week, one we and journey things the are you I video editing announced this of Inside we As entirely

to Another past speak in alone as to words it which accordingly. scroll I product of days AI-powered innovation out. the a you prompt XX new kind check you and follows teleprompter, we've It's really encourage had the is you cool.

it's kind really unlocking we innovation key have opportunity going enterprise to And of I be that's to those the kinds that investments, video. in of think that

about excited new and got shipped pipeline capabilities we've of the what coming. about the excited really So we've

Operator

from David? Jefferies. at Our Lustberg David comes question next

David Lustberg

QX. I the start you letter, said in have to two, headwinds follow-up. maybe and then you just saw a some In Enterprise Vimeo

I issues by execution through just you side SMB to think those issues you of start helpful. if some that mostly are would be guys it Maybe due execution said addressing. walking were, could around what you

Gillian Munson

Sure.

execution leads headwinds other we board into Enterprise, in across It this So in Vimeo little QX, but some is think heavier during make is see take was a the into opportunities. pipeline. and we to how categories. SMB execution. in really, them We in started the largely than our And real the in system

leads, to focusing items how them, So responding like quickly it's that. getting to around things on we're of leads, lot a

of a the about than . That at macro more addressing. in we a well. think executing All being in we've and little actually of and looked this said, to there SMB as as a weakness to it's bit probably suspect we there's better are ours fix. issue. we our category data as other, little But place of us is that's our And our opposed part, for all think the destiny view, about that this that macro is most in bit we

that. there turn and now it out that We're on So we'll hope working work to on around.

David Lustberg

some investment going a letter, cash maybe investment with as about about position in the the what follow-up. In a you harder position. forward. how array opportunities cash Maybe that think, might provides of through that That's your then are business talk be you and those it helpful. And of talked thinking just in to you could I if areas just Adam, wide leaning

Adam Gross

XX it the to you the past our of some that. focused Yes, us and if the look more become to of anything we about is to talking I'm Thank we've one releasing, the say early to in want customers. things But how on use definitive question. sure. days things we strategic really think too Happy I strategy. Obviously, a our been of lot at for even for it's do about you how to that. Fundamentally, signals speak

and how the of need all domain, the new in help they're in use whether marketing that the and of knowledge world video, also increasingly enterprise navigating sizes sharing that's in companies that collaboration. that's business companies know media if whether We in

playback. probably saw So our as Internet that in I in is core we've for standard quality made the technology, editor. which player investments industry additional you video the made investments We've mentioned, also

these capabilities being used. is And introduced help new we -- all our customers analytics of video how to understand

think are that of attract these convert our areas different and we strategic are All just lot I more customers a to there's ultimately that those to either efforts to or designed that opportunity do And to mentioned. become of across customers.

Gillian Munson

it's might investing, David, all And add When talk that. balance. for we I about a

profitably So what we are company. committed a to is being growing

to we're you I that. want wrong the leading direction So make sure on not

think I just more it's about the level.

to have swung say little positive we what is in make. we QX, I the investment we're to bit think to that too trying want a might relative level of

well. a So don't position. loss want into expect us a strategy. profitably not to We That's be our go to . growing business as

Operator

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

William Kerr

in question. And the where number large a us side. bit? give you're have So you a maybe customers shareholder the the on more letter, your demand what wins are bit a most back color of on little one and Could you categories driving then pull customer I just additional seeing noted enterprise

Gillian Munson

as opposed So just from more pullback a by macro size was to basis, the usage.

a But than then was but bunch more SMB, -- a elsewhere, bit board. we terms across saw bit really, think So of the execution of in in we pipeline, some little saw a of kind I the our pullback.

another. wasn't many you've in terms So like versus time, seen marketing communications, continue things. of And of we to it one use comps, same I that use all ones cases, good those see the think over

So change people are using in how no product. the real

William Kerr

happy I lot you're a the year-over-year you're dilution side then have quarters. and current just and you're down thinking several again thinking if you've SBC was things. limiting -- levels And time next think the of SBC done of you how over of Great. made guys Okay. with that where on this about quarter, you was and for wondering progress share And

Gillian Munson

cost, was talked beginning at EBITDA. I the didn't really the mention I story strong. when net income this really we the EMEA to also But talked about Yes. in

to the balance, it line, has In addition comp we're interest on been stock-based earn bottom our cash controlled. really the as income starting the to helped

the year. of the Now and folks you last that, depart there some here. some There's of been lot know, company change ins on As are over had a outs we've right? course

backed And we late change backed had normal in of just were grants having. -- of a the are stock-based comp, out who that with last of the quarter, which folks is sort year, kind of so think I handful out this are we

year we $XX quarter, if was a thinking bit lower ago, than will in that quarter million, little for quarter at be longer you it of million, that around probably the suspicion closer be land. But was million in form, So can will a and this is $X level to -- think a were $X stock-based just were we $XX looking which million, is million My $XX we moving forward. million going $XX a to comp. about number sort

that as The forces represents limit committee company hefty and year. joined a dilution, have And pretty number. this really comp that's dilution our to

nice giving think to the it. we've future. course really we will job stock at in done over conservative be I continue And of a terms of the out

Operator

that, there will no And I Gillian. back are further to the call hand questions. with

Gillian Munson

much look XXXX you updating We forward quarter. joining for Q&A. so again QX to our next live Thank you

Vimeo (VMEO) 6 Nov 232023 Q3 Earnings call transcript