VMEO - Earnings call transcript Q3 2024

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Philip Moyer

Hi. I'm Philip Moyer, Vimeo's CEO. We had strong performance in the third quarter. Bookings growth turned slightly positive. We delivered $105 million in revenue and $21 million in operating cash flow. testament I'm incredible we excited a has our can is and done, about performance to work the team accomplish. This what more conference, together XX, REFRAME, practices industries for October we into our best sold-out On business video operations. hosted to share which across creators user brought integrating professions and inaugural Vimeo we for the our customers for from clips I'm Vimeo following provide highlight why so the can opportunity excited The event about ahead. the value and it Check out. [Presentation]

Operator

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

Before comments. we few begin, a

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

Second, performance. we will discuss Vimeo's outlook and future

These preceded or We've actual differ or materially we isolation other today. measures. as certain typically including metrics and are to and a forward-looking information financial anticipate regarding These not results expect, considered could statements. addition provided risks measures. forward-looking statements non-GAAP our our views also forward-looking in in may by certain as words and and from for expressed the GAAP key measures, These such we from be subject be should we believe, to such views substitute uncertainties,

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

With that, I'll turn it CEO, Philip over Philip? to Moyer. our

Philip Moyer

Vimeo new and huge part to our return such an live forward an we and customers Vimeo that video time Charlie on about Q&A to strategic why of. a on XXXX market enthusiastic to call. looking in the ever to QX his compounding video building impactful team our as joining is communications. video, than on thank give A conference exciting Marketing their customer-focused the REFRAME our to working the and us We're you putting highlights so growth. It's and company for Ungashick, hoping Thank positioned event. our Officer, for of support you you a Chief we're Vimeo for are and to I'm sense momentum better

to that, And with questions. take your we'd be happy

Operator

Our TD Cowen. first Blackledge question of John from line comes at the

John Blackledge

Great. A questions. couple of

So key talk the XXXX? in and XQ we into of revenue round above enterprise you the XQ about enterprise the and our bookings looking just drivers and Could momentum estimates. XQ as were into out

Philip Moyer

There's a public arriving has it's now excited of We the exact video Internet, question. would about for for in Thank enterprise Increasingly, the enterprise. say enterprise. the of XX% video, couple we and and -- consumers, all business. coming things, I right the about like We're Internet same on the for you is really the the that that it's consumer say. marketplace, to arrived into trend see

our of business pricing. improve And in so we've the go-to-market been doing the work a the been that we've around fundamentals, doing to a work lot of lot packaging and

that resonating our in of And of has inside AOV business, -- integrations are investments we're what we're particular, in larger think for to gotten with I a this that lot making pipeline doing enterprise security and beyond. QX of in customers. and the The a and the really QX size already

be doing has So general a become in -- as with market the well place just great better as innovating a and job to is fundamentals in.

John Blackledge

That's super just helpful. And follow-up. one maybe

next year or the about curious job side, done into year costs. of so, cost curious just as next business opportunities years. cutting the great a of out just guys and last -- over we have look investment in for the couple the On out you I'm

Gillian Munson

dollars think place. room And so run think to It's roughly opportunity as kind expenses of have us is strong to out has million the us But balance business. about the gross in the piece you here of more we has in taken So done getting back, we've interesting sheet, such operating we have a profit look we such that can same, that's given the that, we more to a good $XXX team see big, second us because annually job stayed rate, of of which a story the we yet make efficient capital for is that the investments. such EBITDA good business. making results. And because apply investing the

will some into out as XXXX. So investments make we look we sizable

pace will should small can get increase dictate a to is be in remind how it we profitable sequential a really fast That We to of saw said, expense the and money work firmly already hiring QX. operating in think the I You important everyone, business. business. -- we Vimeo our inside believe

So these would put not of us thing position. the but investments that will kind any kind of in be loss sizable,

Operator

Our question Champion comes at next Piper Sandler. from Tom. Tom

Thomas Champion

you the a like confidence to to to And letter place? of for that, year. you are little wondering give next of going to kick that Maybe really states the lot for explicitly off, I'm of you an kind could growth components that a us? bookings intention And could that's you -- maybe return bit what Gillian, unpack see take you, that, that if

What's Pro and X AI those products in of you saw Philip, ask little are Vision Pro and AI? one on you've with and talk sets What side And the talked doing? announcement product to I'm could more. just the kind opportunity maybe wondering within a that, you bit past on the new for product side. about features. app. on the And if integrating We Vision the

Gillian Munson

Tom. Thanks,

So one. let me first the just take

really work things also are the really we opportunity favor of inside math our to next about some business and us. executing the So to help the business we're good feel to going our in is grow The year. starting

interesting million amount. hit operating in Vimeo $XXX annualized a of right? to So basis, it's of and expenses a of quarter, in top, an it's million the start we from kind an That's on just rate, $XXX annualized million reduction $XXX It's quarter Enterprise. run meaningful bookings

Vimeo continue Enterprise will overall on in to having have growth. impact we're positive that growth the a So the

trends products, in the other on helping the are think that are changes product. In we of That fact, actually Vimeo grow we of can us. if other said, back Vimeo Enterprise the there nothing any

the in letter, tailwind mentioned lot and the a about pricing really on talked doing at bit, little that a packaging, work that we are we and of will as we we we've be active business a for year. As think and next look

the OTT the factor been business headwind team run away, by stabilizing now essentially Secondarily, which the great our that from other will much is having a impact product, a business. done fall products has a job less that a we've a that's been on product stabilizing deprecating in And perspective. great

that, as an taking are of portion away caused risk about that. we cost you investment mode, that spend, headwind our taken to we think we've by we've as particularly And as And what's cutting we've of then is really really pulled back much do to marketing and really we more just we have. the as look some finally, at the turn really on interesting that,

You've on seen get the able lot has ROIs even that And the really positive environment. strong much been how spend. about hold learned that stable margin team to we've to more in our about to gross up -- a

think back And as that of go into we help investment can well. we mode, an as kind

earnings gives about perspective, of also good going the where the but we in we have some initiatives feel that's us the really then we company, on both a So what from are math out, and how this back confidence come that. we Philip? at with lay QX sure might to make want in we more details on all highlighted the the indicate but that call. We'll to

Philip Moyer

announcements variety Vision I'm of the and lot around of excited Apple about Yes: Pro a really a REFRAME. at the we whole made announcements made

One think artificial of people the that things excited intelligence. I about were

that opened translations, around thousands done small of we've customers up of to. already work tool by we're of the a of really the seeing being some this translated minutes And tens with cohort we've

everything excited about we're we're space. in so that doing And

to I'm townhall. do things out video that We question. intelligent or last an space. the the think able like ability want We can a ask video in the be for make of what even CEO think enterprises, last there's to e-learner, whole earnings I in a a we to we lot the call in can more said find If

lot security that requiring higher a of is Like Enterprise bring can to security we grade think space. also much video. for We really

of format, just a XX,XXX focused like arriving, XX,XXX But are X,XXX arriving, is relates the lot is are formats think, Apple X,XXX. arriving. I to as on the people, it today Vision Pro,

you XXX-degree gymnast. you or video the it saw where Olympics, If would basketball a player watch circle a around

formats content spatial an example virtual content these normal or in certainly, the those starting reality so to spatial And storytelling. types. Pro Vision are of kind of And become of is Apple one

work. for X Quest their released just Meta

a we the recently, do business? we're VR these have cliffs the this pricing. about kind we've of these as served mean expect that and that to packaging showing future. where excited really we example we're does and just companies. these we're so modified And is the kind they've new immersive these it's we in formats past, another going in partnering that serving have most of all with that to And used to evolved What be to walls. again formats used the Well, and We format

sometimes always hard we to it making were -- we customers weren't And for buy.

now buy precisely smoothed different all AI requirements, $X million out wanted. have and requirements everything you to and with way different they But Sometimes you and have free customers. a we where world what they couldn't storage have the really formats up in different packaging from pricing

in buy whatever mechanisms to to support have We us. to customers be able they from want

to, able innovations all would for make When you I a monetize us. the excited. of easier lot we're a we're to you it were say, to together, buy from that those so And bringing lot customers and put things customers

Operator

Truist. Our Squali next question Youssef at from come will

Youssef Squali

Nice quarter.

on So congrats double-click little the bit. on you a that. maybe just enterprise can Philip,

on the So that have optimization Can have talked that quarter? about you within -- about impact the had spruce particular packaging more that talk most vectors and those up pricing demand. helped products

Philip Moyer

Sure.

the to marketing serve organizations the So or area. we that are in in e-commerce enterprise space, tend

great to in in have some of lot Volvo a to are communications. sites number organizations us that precisely great And videos millions serve some brought QX that us. we or to are a e-commerce large got architectures. joined internal with doing organizations We doing example. be as a of that then well able that us So customers, we've is e-commerce serve that of e-learning very

also business. then our call of streaming And have we kind media what we or

And so the as like example. an of Guys. England Try we've got and organizations Church got We've Dropouts

organizations. And so of we use cases those a at between look array all wide

I where agreement. think able Last with security. were BAA, what I a mentioned this to pharmacy hold we a enterprise, this, Now the really HIPAA seeing quarter, sign enterprise-grade the customer, very is a large actually we're we had take organization

to And is security we extremely so able video particular of particular a important. them enterprise-grade HIPAA that were a medication, a received that to was video be distribution. able if to after serving for they pharmacy support user to kind adhere That a

where data residency conference, That's we're At over going be about of we already support with our as like what be user We an well are in able a that really to well the of of clusters Europe. Meets, business workspaces requirements important. really we different as Teams inside about that I really, We buy build well. fact videos, to units well. also build lot received called really to Google announced ability organization as supporting being talked Integrations the can received things Zoom. talked Microsoft

all video able very if via whether those repository, sales for So repository important. being a doing to you call, or you're conferences not it's a video or that could imagine it's being do video of

like example. with And integrations we HubSpot to look organizations an then as as

with we're to wrapping a number in translation. innovations we like announced If all you things personalized marketing then this space. do that with of of want And video, AI

what a file have a for great more able The to capabilities to if customers. get all information to multinational to got file you to static ability your was live was We've translate. video you're to question, of now be a ask communicate a out you. So organization,

to all So learning, selling, to what to to your of e-commerce, make go able use able need when you things that your be and it into we to be company. enterprises, be them those with assets in ability is are media

Youssef Squali

At a for high level, kind kinds who do those comp of your services? of closest you think is

Philip Moyer

just I'll of the couple organizations because be or for or organizations video see e-learning e-commerce, that the enterprise. a might public space. of relations, increasingly see that e-commerce internal I'll are on across focused repository sales, some communications, all interesting becoming on enterprise, inside might live little events focused support, try I'll marketing, really bit we're see It's be I organizations When customer look that a to some the the in the cases use just

the ability same we're security. systems. in to the And your in private all And We with we believe largest distribution have we the integrating that bringing one world. ease self-service that we're it doing platforms We're enterprise-grade of the existing had intelligence. that become business. of bringing We're video our with enterprise-grade use

it's actually all I very the an that I that you that is customer -- we're would really organization that rare spaces And find in. tell we so serving

Youssef Squali

business? Maybe implies you talk the growth for that going X% year, But some every actually And show growth I I then necessarily be next at or outlook, outlook positive details Self-Serve later then, at think I you as in does broad high detail the expect not what a and was in look contemplate basically February. for down that QX. self-serving Gillian , it's point QX? growth -- positive maybe to -- you've know about outlook And do know providing to and -- level, you're next January a year it at your and quarter? more

Gillian Munson

from can get coming get business. believe Self-Serve climb where I there. what growth, across business packaging, think like pricing is we need that are to help by are believe yet we're these like And out trying we to to of a of back But there going that continue we business. we that factors do have are products to So and certainly, we're and exciting to the us our get we we not in some do guiding number

also in positive really now it that about we business. the our size year-end lift think call. So Vimeo the Enterprise meaning help I such that feel come really favor, to at the on that is it's at More that. is But can math remember to a too, important details back

is to for regards move a Self-Serve. our the positive positive also any as so business And

majority that the the spot. vast good then other now in And a our platform, is of OTT also

recall, a quarter And do do In revenue, waterfall so the comes revenue. has bookings, or QX. as the in a would we quarter. we math you down bookings terms of don't into you with may had that a we And obviously, the QX the have ago, on That to guide, fact growth guide of it the you if guide imply bookings down revenue. rate

that's So excited really XXXX. feel company we're models. and But the about got for revenue we flow to store the through forward, looking what's in in very

Operator

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

Philip Moyer

us everybody joining today. want Well, thank I again, to for

and employees excited really I trends QX given And business, that I think buyers quarter it's important note see the to previous are and forward what we company. to again the are Gillian we to both that look us the report. and of are the in we both that as of stock updating the of in we're you outside our about on

Vimeo (VMEO) 4 Nov 242024 Q3 Earnings call transcript