VMEO - Earnings call transcript Q2 2024

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Operator

Hello, and thank you for joining Vimeo's Q2 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 CEO. our with our supplemental financial to and shareholder the performance, as section Philip? filings including our Philip, well I'll reconciliations with Relations over Vimeo's in Investor turn website. With

Philip Moyer

joined you Philip Gillian Munson. by question-and-answer for thank QX Vimeo's session. and Moyer, XXXX I'm I'm and earnings be our Hello, CEO, CFO, joining to happy

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

Q&A, growth points X% Vimeo Before few revenue XX% in we had wins. driven the revenue Enterprise, by QX, a jump strength in some impressive and quarter. We posted grew customer into quick again, which on

equivalents. foundation, demonstrate underlying to growth with we focused cash our our strength as Vimeo and model driving in business million in cash $XX opportunities financial plans back investments generated we and on continue the in and million this the and ended strong year, the flow We $XXX we of success. quarter of have the to in With customer increase free half innovation

for future the Operator? hold what Vimeo, we about can your excited to are questions. look and We forward taking

Operator

Squali Our first Truist. at Youssef question come from will

Youssef Squali

was you of that that reasonable plan potentially all is -- to second, you your things before it Gillian, on the it year improve events a Maybe early it considered? pretty end efficiency in like by is inflect? the here. next margin, the more still the business maybe, starve of in Self-Serve ads game on how efficiency kind drive flesh showing to or either X%. on OpEx, a And inflect then bit out you out congrats And the business So it? that get to much year, down can think assume guys little start But to will to good of keep next but it turn year, continues you do seems

Gillian Munson

don't it's Why take and of year-over-year I then we look and On quarters. in side when to first we'll been Self-Serve the last Sure. the go rate numbers the for handful it's around of Self-Serve, rates the and at growth, then rest.

working taken terms which change So we've no marketing been in that about spend is XX%. how change real with is business, there. a of But we've there away paid by

year-over-year. in down marketing a spend, that pretty being Self-Serve kind satisfied business good is. with of not where the paid in business of decline about the light we're feel we But So

that can We grow continue but to to believe work our believe suggests we that grow and XXXX, in business. believe we very We don't all in it. going much still it's

do get you that about to some we're it should is talk Chief, our bit in growth little the around can be, as business want Self-Serve? planning investment we how back And of centered view. that to a doing

Philip Moyer

Sure.

it's growing, is the really video learners. of things serve that Video think growing in. in significantly. number the are formats like Self-Service I the could we in we that's individual one and be that of best markets video understand business, growing, creators are of creators, amount that important people The individual to of marketers, we're the growing

of those are great All growing businesses.

do their that job. actually in them going to work we're is workflow for and even easier of what business more automating make it so their to on And easier to

marketers amount AI population of this week that have released to of significant in translations. we add are well as You'll well. global see significant business. amount learners, And as just a of We a user that creators this of us

we more that give even I We're to price to to in to an And opportunity things can some provide going for customers. capabilities better. translations, there so are and we us going right as and business like pricing think value do that that it's think our to package we add even technologies get packaging Self-Service

we So easier, be AI make again. opportunity working things we bring I it, as as think to get pricing, that correctly, grow business packaging to able as we we to and an that have

Gillian Munson

why your don't then And address efficiency. I

to But really, has drive has a more team to The margins really even on good and potential through I been continuing about. talked past, attractive over And I We've got be when near believe have has revenue march some our continues basically there you are term been very, time. could view. a done we've think in of the that specifics Vimeo think we has think job about efficiency efficiency. The we the the the this X-year that very business think to over to business still of time. there's down. go

we're financial gain the look However, having think to that you we know growth. I strong from think doing and shown can, can Because see base. we our how to look for strong going with without I guidance, be, at investments is business and going now we're the model to offset revenue invest growth, the really actually that you're business of is some you what we at we as that time very want a but know because efficiency

invest at effort That's business. going the efficient. you to really coming a probably implies the in but look in look as quarters, less business the us the it's guidance well, that's what determined as to So making

I always we won't We the margins of We until happy there's kind more sort be So deserve. think we both. we get. is to think get of the efficiency think answer

and of margin growth. think of business the really kind However, the we in we there, the near returns moving out we the in get the of into way shareholder more is term, are mode because best to an shareholder want returns combination invest

Youssef Squali

Or and to mostly And are mostly it talking is enterprise? be is you're or about across -- investments the just on both clear, it across self-service? enterprise

Philip Moyer

The across like businesses. the both be opportunities are are Yes. take announced. many the the the going cases, is news great to of translation example -- to be of or just investments that going we feature the In

can as their you is individual an wants the have exact same for -- enterprise. same creator the that inside videos an accessibility to imagine, more As requirement of

an that that companies to large more have or film have need be individual capability. workforces wants individual to their a accessibility translation able marketer that it learner So to The content. way for to maker need be that same able an or multinational

really of number can we think we a foundational make those investments well. there's businesses of And so that serve that both

Operator

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

Thomas Champion

here, of -- the if you experience for over you've The forum investments talked growth have sure given initial juncture, And want I'm days I'm quarters in X XX the nevertheless, reveal Phil, maybe about some last been your talk but you about why and to everything this quite learnings. the last strong. don't results, now. don't curious could at just the EBITDA

broad discussing now? So hear thoughts around vision, it terms, about interesting be to and year your could a we would just your might what from entail what be maybe in very investment framework, your

Philip Moyer

I you than exciting. I'm spoke room when to Yes. about the engine that see get here first of was The an more be things kind are I excited even a opportunity of inside to more Vimeo even quarter ago. to in I

bigger that that Internet. It's whether actually of in website. ability kind space. be we network video on not That's We have it to it be world. where of was video. site. of Last was upload on billion in underestimated extraordinary an Don't not to a XX%, was streaming in are one or the share the massive through and able views whether a is of that It actually we to anywhere in able somebody's was had over video over Internet underestimate is many And -- is year, around global world and to of the locations, video, to or the learning the was whether power XX or a XX% a marketing not of to not approximately not terms of other it market, a system any inside another be that XX% that Vimeo's good embedded or of flowing in it capability the Vimeo. statement portion video providers

And be views. where many in that actually to position an so powering you're extraordinary that's

cut video that The like really other able about, we a we for can and I'm to house about of the thing world for companies the I by intelligence, be every those artificial Gillian when features able the to as bigger decline really minutes What's come be video you of seeing equally as mentioned, and exciting, only that those value things of single minutes. for look even excited around business we're the one minutes opportunity that more XX%, space. video AI over X steward more over and And think that as we self-service the of to is monetize really of video. enhance out We're to provide but scope billion minor the have in marketing individuals.

them? when really to can be at covers think become settling We think product, market community. how in uses able get more and who better precise, at can creator and we we customer the we're more we marketing, As actually we about more better do our to being and dig I use see more they in really efficient to, the we acquisition. To I be under see which by do precise who

growing creator that that by over market market Digital see OTT, that's by then growing community Now see we XX%. is the growing digital We marketers. see marketing over XX% XX%. well. I as XX%. We over, is as mentioned, And by e-learning over by at SVOD growing

good get -- add provide strong shareholders. we as AI result, what we can We for customers. better And global for this and as we workflows, excited with can more do do network. have we I So markets. a what And even about growing

Thomas Champion

think Gillian, you activating quarter. And buyback Maybe, on just about that forward? buyback just past ask thoughts any to and pace this going about the how of the the to

Gillian Munson

Sure.

shares August back capital a terms of use up XXX-something capital about to used think first, million in about about about of allocation. share, So million $XX our We we there. that's great bought X

you our balance know, cash flow free As and very incredibly our strong, is also sheet strong. was

And So right? There's capital a to employee now shares, we and buyback in the M&A do our as the high continue grants in And to from X acquirer invest to buy great out we business. we'll mentioned offset M&A, have we really now think not is that. letter. right we're be continue as then for think expect to shares that allocation, but forward, as going shares, doing ways the dilution And about there. desire buyback priority go, there's do a you to back to a

looking. always we're So

we're against investing the next what really opportunities so see focused is investing And and business growth ahead. the we in

today. here right plan that enact us see to starting really you're so And

Operator

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

William Kerr

my the help Can came of expected. understand back Enterprise. So maybe question the Vimeo about flat revenue is through how for you The and But on year. puts us half sub-growth than on sort subs just of we bookings first enterprise thinking better quarter-over-quarter. Enterprise takes touch the you're the and there? And in were

Gillian Munson

subs nice Yes, see strong had continue in to in year-over-year. increase a Sequentially, AOV. we growth

bit And on side. sub that's to a So little very the very, side you're the more where booking growth see we there. seeing continue strong than on

in going So for on that. double-digit future. nothing that foreseeable the continue -- growth strong we're enterprise quarter see in real to really to no And the news really believe we the

William Kerr

deepening driven it What Okay. by change the AOV pricing? being on sort touched just -- relationship there rising there? with sort our the Great. with existing customers, ones? of are that of or in drivers And are enterprise, What for landing larger you is

Gillian Munson

seasonally was is particularly there. that So and AOV in and customers, strong strong second first-time the really quarter

also deepening nicely. relationship up was -- In our really are we of because customers terms year-over-year ARPU with our also

right a thought deals I we of those talk who in a to little I'd maybe better pipeline new those Philip now. So throw customer are mix -- are. about it seeing mix -- kinds of bit larger our And larger people

Philip Moyer

some you're to manage about think enterprise. distributed be or being not be we learner more capabilities you're sure or video make of China video actually marketer we especially excited the become And the with internal or China. to for person the not their workforce. we an is is better more a need stay It's When able And that their able time, employees. to really businesses providing from at announced of companies important. right communication more message had more biggest artificial into a intelligence. And than just you becoming complex, more CEO, that quarter, the they the or -- to global to or it we the it's the whether We're world just ever Yes. even right becoming the opened really enterprise. global, and explosion want video have right more to this video, whether to to to secure and touch complicated distributing as you took the up We're with in in

Some into a able we're be providing consolidate unique. single is very video your to repository of to that the capabilities video all

of used for for to it turns us some us marketing customers So use out that that e-learning. also want have our

Some of are internal the to communications marketing. use customers for us us that may for using want

for And being a statement. and enterprise, so is which looked the for more central is the really more, video Vimeo is at powerful repository

dollar closing in deals we pipeline, and deals have As XXX,XXX our more we're the seeing deals these And multimillion a than result, in we're pipeline. past. we're our of of seeing kind in more even

about Enterprise. excited be enterprise. as in you that's the I have a occurring And And bit background more so of the know, in a Vimeo I traction couldn't little

really secure, of their And the video API really that most that enterprises in scalable organizations at and so interfacing these these the ensure is Vimeo it's helping assets like driven, I to enterprise intend the directory scale. into services manage the things most

William Kerr

just question. Phil, And more Great. one

licensing of just business via broader and GenAI and seen you about sort it mentioned the some building vision number GenAI monetize briefly for models. with Vimeo like these discuss how to things mean in You can these you media are that. this content of think looking that partnerships what companies Can companies maybe and a ecosystem but before, and briefly we've of via their your it for GenAI content

Philip Moyer

some in the serve professional the Yes. world. proudly most We of demanding creators

those room. Sometimes, professionals their are in dorm

they Sometimes are filmmakers.

want be provide AI. world. stance around video the protected or to some right completely the and you're Vimeo strong whether not your their inside that a video They whether going trusted your just distributed or person. to and can We can make of to Sometimes video and by are trusted they're is the turn of to come, on you're and of that place creative, sure come biggest going not the not or that the companies in inside companies somebody you creators we that their took own, have by it's protected largest and

actually to down position How intelligence, intelligence especially that that AI do into allow our in the we that video. the product, how Now just make on your is world your the something -- yours. just really artificial to we crawl is we of someone fundamental. you do not It add sure important, will gets that have more video the we AI,

If you your in certain we're making your your storylines story you certain and a protect a going to techniques film your make line, films and have way way.

organization of a If protect assets. you're e-learning video inside company, going a we're large to those

mentioned, and for assets both that thing is CEO your well put going as have it of your creator messages community inside is enterprise. as make inside most you you the and we're on this, the important as ] of intelligent. The easier growing protect If to video those CEO, video, tone exciting easier about more well as and for [

personal simultaneously in around And we make think the we can so XXX something really that We countries over today. actually video and serve scalable world. that's

As I we get over we views. over billion mentioned, -- XX manage

they because We the companies right organizations, X of their that excited actually that's entire seeing trust so that video. for coming growth And why with public to sites, are this across And business. to sites in is They the what business don't billion we're minutes free now us we're them. Vimeo the the have think about do we video. and over trust

William Kerr

lot much. sense. a of time. Good Thanks That Great. so makes

Gillian Munson

you. Thank

Operator

call will pass Philip. the there no to back further are that, questions. I With

Philip Moyer

here strong just seeing, to look thank and quarter. everybody. want you you're time thank for Vimeo the team quarter more all want that this I I to No, at had the and the work to next spending forward we I with that results

Vimeo (VMEO) 5 Aug 242024 Q2 Earnings call transcript