VMEO - Earnings call transcript Q1 2024

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Operator

Hello, and thank you for joining Vimeo's Q1 2024 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. key subject differ and expressed forward-looking materially provided regarding are actual and today. We've measures. views non-GAAP information could our results from certain forward-looking to including uncertainties, risks our also financial These measures, and certain metrics the views or These for in a considered GAAP from be to and isolation should as measures. not addition substitute in

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

Gillian Munson

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

our and materials can additional Relations QX Investor You letter financial website. shareholder our on find

a on jump quick we quarter. Before few Q&A, into points the

We Vimeo. to are to welcome excited Philip

see quarters. the and enthusiasm sure to his over on past thank also you call, I like are experience Adam for operational of As depth great us. going to I'd few for Interim in will CEO am as assets this the stepping be and his Gross opportunity for strategic

quarter. growth show & we As scaled momentum wins. customer and results, as even the underperforming products continued model we Vimeo with resilience strong back for spend saw the Self-Serve Enterprise and Add-Ons, in business to the in impressive QX In of marketing our

all underlying strength as adjusted in well demonstrated X the EBITDA the growth and for gross We the QX Finally, income year-over-year margins metrics. in business net again of Vimeo model. profit, delivered as

hold for questions. in the we adjusted now talking Vimeo, $XX We're and and to up doing million certainly have are EBITDA, open about showing future with Vimeo I Philip the ago, your $XX adjusted that, in QXs could let's line forward work the lost EBITDA. what you X excited looking is with for through. been today. With fundamental But QX, million Just

Operator

first at Squali Truist. comes Our question from Youssef

Youssef Squali

congratulations the new appointment. on Philip,

That's key maybe what over you So the $X you then, line, XX QX. hopefully perhaps in conservatism X% guide Can cause? the implies, up mid- your think, annual how most next for keep excited to priorities, maybe the say, to decline with on beat diligence, that kept speak the to your revenue beat that of I you quarters. high bottom as relatively of unchanged, is How on the you line, you beat wanting back you start me million again expectations Vimeo? And in about due of And low? just let Gillian, the seeing is you. like gives each. in And top which were the self-serve next doing that -- maybe potentially But something on single-digit much versus X just also you months? the buy much

Philip Moyer

for excited the start. time getting I'll that question. that number Thank Vimeo. been since There's a you, opportunity Youssef, the here thing the with customers. me things about has exciting is spend Probably, to most of really

all hard Hundreds [ Vimeo, over in had of alone, of demanding the extraordinary have to and million These views kinds with of base in of billion XX enterprise like are have base, names over creators Nissan. blue-chip of of portfolio. customers customer Shine videos. But an XX at get the We customers ], to also videos this uploads world. month and incredible we we creators, customer our our have view NATO millions of names past This people and some videos. millions most

manage kind I product the So the excited call a grow. We're to going watch. be explosion, we're ability see well they're couldn't creation headed creators AI, be were and second, then to what I with to of the video. better, the and also each the going are And first, the be for be would we that to about as I to the customer could Internet opportunities able say, also great enterprise. was videos the going mobile that also be core more not a to paradigm was generation, able the then help as create these self-serve create more to And share video videos. became -- believe to about able third. easier video. base the fourth in both need I here. to set, I to to thrilled business into viewing be videos of and to have an these PCs In paradigm,

focus make sure my few video. really coming listen and fast to customers and the paradigm so is next that closely for months to the the And innovating capturing we're over

Gillian Munson

And relates there's to think then think I guide, things as couple of it the about. a to

are a that the The we Philip period of company. in first is change with joining

to go want We we make to There some from have investments here. a are of we lot about make. where decisions

the factors -- more where confident beat so number. then And look at there's we're different sort exactly there's components more on X low we there. of believe that. Then much achievable that's we'll that that become many pinpoint rolls What factors is know really to to out guide, solid, end is that Philip's give of And too do the and the year of more guide the it. as guide, reflective the as to X plans of the you you revenue

headwinds VE, see particular, cuts does itself, revenue bookings to you we for healthy continue for us. expect long marketing. other decelerate business, to from then we're as comp paid That's, tough term, business. the do a the the addition, in headwind the pretty short-term And in making sequentially. to has some On will

bookings. And declined. then bookings quarters remember you And of really you is with number when a what revenue how down that roll to see It's that the few business, the that's revenue, pulls you that so through important go other lag. see start kind that its to

roll through to that got We've the revenue. year. last XX% it's think I

the And reflected so in that's really guide.

foundation quarter. happy is which this revenue that EBITDA right we As But to to dropped the time, really it I we Philip and something investments important years with feel were the to we're growth get especially that The to we've make a strong the there's EBITDA with Vimeo, the against with at here, the the X back that think over built profitable situation. to some down last here, upside the saying go line. really now financial growth relates sustainable, is to EBITDA,

the taking will EBITDA do we some and that. it, tied And is so that guide investing desire and to EBITDA much very incremental be to

Youssef Squali

quickly. Gillian, And if could I up on that follow just

what's self-serve? into terms baked the in growth terms guide, it of enterprise versus In of of

Gillian Munson

certainly, Enterprise continues product, the be but So to opportunity for strongest growth we by Vimeo don't Vimeo. guide

we've see And growth about of we are before. in continue dealing in We to solid very some headwinds that that with the several times talked business. self-serve,

in no So outlook by change product. the

Youssef Squali

All the right. the remains pressure But in assumption year? the rest self-serve under of for

Gillian Munson

Yes. Yes.

Operator

comes Brian Fargo. Wells question from at next Fitzgerald Our

Brian Fitzgerald

launch see about on is phased how Could growth Central and early Vimeo translating that from in engagement, gains you product? any productivity And availability? seats? the do the collaboration then or that Or rollout? talk Is seeing a into general you observations that you're that

Gillian Munson

late That numbers, it's first, last on came out product early. the just year. too So

in really we're packaging more. early customers there's really enterprise it's a specific products a understand can it, So about way numbers to too have idea excited this that but little just on -- of bit

we good position releases coming time. of really solidify of a these have really And pipeline enterprise our over so as we kinds

Brian Fitzgerald

welcome. and congratulations, Phil,

Philip Moyer

you. Thank

Operator

from next Sandler. at Our Piper comes question Tom Champion

Thomas Champion

if Gillian, of as could the and of it could the I talk just macro and on puts what there've kind bit earnings some you been state kind letter. to of of growth you was interesting also revenue different SMB And seeing and broad reinvestments a things about an It's takes the peers, the of some just you're about profit SMBs. wondering if Maybe of you're and been in more of some little incremental seeing. you alluded the side. and in your strokes comment with just opportunities among season curious see the kind

Gillian Munson

large quarter. opportunity and us too have impacts Vimeo, capture to there, we its believe but in see out Vimeo and last see go is lot and I for space, of Macro owns to SMB So our how that headwinds really, the We let changed very have there start Vimeo-centric. about in macro. That we me on really has destiny is macro Not Vimeo's thing is lot still that. out Vimeo-specific. with job that seen the some certainly macro. some we But We said, that And again, they do really very headwinds. the in us it's terms line a are for we bottom a much. of the is opportunity And what there part. own a us is there think of with not talked much that very are really

we've be of terms X here. In weeks what, Philip's him, plans, to given

into flat from to doing lost There's a where the are that able $XX years here call some to a relay, incurring million still very strong those Vimeo more in of X right? cash the with with the what that might And Philip we remember And from a of this position in incremental I really lot important story, information put in equity have XXXX a to includes emerge business key of at EBITDA we've really think sort to make to think feel of have so roughly about growth And to dilution. be we is the $X guide limit I here next we year. the now and us gives really to on through as our way invest. drop plans go that they thing important But think quarterly the forward. about We'll we're EBITDA coming. that now as want we have is dollars little foundational opportunity on done EBITDA are to really in are. we thing in then incremental really, those opportunities as the EBITDA, to expense really probably from strong that's going our going cash that's that be million EBITDA that's replaced been lot Also to after losses we trying some to us that and work about

Operator

Our question from Kerr at comes Will Cowen. next TD

William Kerr

Two, can. I if

just for business, in were letter And key as drivers you might then we capital the the some that? count you higher talk we see that levels of Can the customer mentioned potentially What was keep repurchases. the XQ? in strategy look we share sort we So see should when enterprise customer that than of there, some there and additions that about maybe expected. allocation, at could in on mind the

Gillian Munson

So has color if any he enterprise cover to add great. and side, be on that Philip additional the let would X, me wants

Vimeo, customers in and is that our to get better to an need the it they that video video we consolidating continues So help like on enterprise platform a VE, that at that their onto level. can and be a realizing portfolio them story strong product same their really place really of and manage

yes, the course of around year. On back the to Largely, share buying in to want allocation, over be we from dilution start we the that letter to that's indicate capital employees grants surrounded some equity going did stock. the lowering

Philip Moyer

Yes. mentioned, I as a couple The business, that about am excited business. enterprise would I things. add of so I just

past with product year are more time of video a able you I've over and it take-up you is of trying video. in the are and video plus, the Over been communications. to different of of they companies that world to clear have lot XX% a really if higher looking video, add the artificial all applications use marketing marketing, intelligence to organizations their at as And something spend more in like portfolio. Internal get product

better XX% get efficacy You than reading. in content

And there's organizations organizations, communications. lot at internal video And all -- of manage video are to a organizations of just what reality their these so with big to these is nothing scale. the inside adding

on so And that couldn't big of be large year. are these a proud organizations. logos put And of the this lot companies. seeing We more we're we

top starting financial Some in health consolidate of in of the on services industry the are in industry, companies biggest video care to retail now Vimeo. industry, world, the in the the

more you'll hear the more goes on. year so that and as And about

Operator

questions. further to no hand With Gillian. call back that, are the I'll there

Gillian Munson

We updating to forward next you QX our Thank a Have live again day. for Q&A. quarter. good look joining XXXX you

Vimeo (VMEO) 6 May 242024 Q1 Earnings call transcript