VMEO - Earnings call transcript Q4 2024

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Operator

Hello, and thank you for joining Vimeo's Q4 and fiscal year 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.

release subject differ and expressed earlier materially refer and the are actual and today. today, views the uncertainties. information to could to regarding on results from earnings for which forward-looking is to Form our uncertainties, risks our Please SEC posted These on furnished website X-K additional we the risks views those

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

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

I'll Gillian? Munson. With CFO, over it that, our to Gillian turn

Gillian Munson

and our Hello, to welcome earnings call. QX

delivered to and questions. We more our our on what and to you XXXX our team are future, your believe we where answer view XXXX to about including happy proud plans very We're to here talk for in are our excited of [indiscernible]. even be

and bit of been what get it over to XXXX. and Philip? talking Philip the that great of seeing the to framing before how be market to would is with And our members a last he share team traveling has your you world questions, thought our couple months. strategy we clients we him the for have is

Philip Moyer

and believe by welcome. customers that I Vimeo you, succeed Thank putting Good afternoon, will first. everyone, Gillian.

provide and [Audio with customers spend about Gap] what to else of listening platform Gap]. I time [Audio need rule, my a try As they to the them can half

used This driving Vimeo's [Audio all, be Gap]. scripted accepted. explosion video First [Audio scripted it are significant is of of [Audio more far video highly Gap] Gap] and to

playing increase point now. make in all I pace of thing second to video and is helping the innovation we want intelligence in video enterprises At are central is The artificial AI themselves. video astounding. for that to in role of Vimeo, in of a a for tools be harness is for The time sizes, excited

and I'm we right future. Finally, invest the right to moment team that say our is for have now the excited to

have team, our delineated key areas for We XXXX the goals rebuilt invest management opportunity our aligned against and focus to ahead.

about we are questions. When invest. are excited must a hope as this a like going seeing, to we and have I are that, are shareholders, you And make brand the look see investments you base With to to you taking opportunity you like the Vimeo, as customer forward your capture have we as you we opportunity.

Operator

Tom Champion First, Instructions] [Operator Piper Sandler. from

Thomas Champion

[indiscernible]. being off camera but traveling, for today, Apologies Philip

Gillian Munson

lost you Can there. that bit? Tom, last you we repeat

Thomas Champion

adopting Why from about Philip, Sorry customers about talk seeing don't you're can that. there? in start what the enterprise? we you AI

Philip Moyer

First mentioned enterprise. of a couple times, of is all, the amount of the in this video and exploding I

So This are the inside for going every coming enterprise. department down management of the most across enterprises. challenge video is becomes and single a barriers

comply and videos ones a organization, which what you don't comply. you're services don't If know financial

video. use it's So the of out to extract and it's of discover able it you very ability ask it, that video intelligence all very, and artificial to information to be to more to important your be able more to being questions because and important able become manage

we and of And from we fact, a make deals XX% the States. outside before that have did QX cases, In are mentioned translation more video artificial from The this We've of the increasingly, And is customers of means matter And our inside business languages. some as is AI exciting. is accessible. XX that trying expect of coming United second that came over in language. XX% in that to capabilities our of our translations year And last thing about launched multilingual product. roughly that organizations we video. really the the intelligence,

this to ability so to And be able is really translate video a important.

requests and that for what is thing seeing video. more of I last just-in-time The kind call we're more

video you oftentimes, don't people the just They video. that create inside single thing. and So answer a a large watch really entire of want

video ask Our answer of to the a new time. spot the a to indexing that capability exact question and allows inside at you video go right right present the and

journey I to been able work say see go that high. video would you the the see in you're barriers customer customer have to in going that across into workflows too past been So because entire haven't ways the

dropping more we're and discoverable and it throughout those we're making enterprise. accessible both So barriers, the

Thomas Champion

you can million year, about deploy? investment you're looking Gillian, up Great. the $XX to the this Okay. talk to

Gillian Munson

Absolutely.

Vimeo have came out have it we products after good Enterprise. of Philip look in here, they with bookings with we sense at When customers and the new in that in the what we of team alone, fully XX% really and bookings a we of XX% for out XXXX, that AI was Enterprise. Vimeo here want. you Now midyear, came accounted XXXX,

team big understands go. have where to here So a a to it's deal who

given So balance here, model, progress. in our business huge from have we our the strength this view cash and made is that

we prior. If EBITDA Xx it, you created in about in think XXXX years all our the EBITDA is the X

investment. a we're our position So in is to great an make view

EBITDA eye do very ROI an we [indiscernible] we responsible have really money business. wanting deploy in And will so of an about million. be to we be you can and $XX the capital, to would we million will where creating how fast think end about how for about on Our prudent that about the based because we're size I be that for to looking that $XX $XX is really and lead million. That lands spend

may in that about in think the growth what expect single you revenue As would our through do digits, while overall acceleration guidance, for as low the you business, year. can the our have seen we be

have that we of line get of that take investment you believe sight back of as already. Vimeo, paid end if basically the have XX% And we'll growth. absolutely So to year, to double-digit you just the we

we the continue So, that a we way growth, capital and use great right happen. make drive this we think here us is have to think team to for the now to our to

as specific of a Now maybe there have growth, more give we're I going terms detail I'll areas you where spend of money. in for little thought Philip the to the

Philip Moyer

our are So the foremost types number video [indiscernible] probably first is creators. and enterprise of and in that across traditional of the format exploding even

whether it's in and portrait, more So landscape, or not whether podcast, use it's or not not or shoppable, definition, it's customers or not it's ways. it's video whether whether whether not interactive or more high to whether not or want it's or for XK,

video to this our significantly the investing we're leadership so And formats, in maintain area.

The of security. second is in the area

for we going You're our us for see -- corporate to opened clients. streaming of up video China recently

for go we into us, workflows be for and able You'll to more and granular that security data customer And and think and call deeper need. to also to integrating outlets then exciting customers in GDPR permissions Europe. as I adhere we're mentioned, actually enterprise video see in doing We're other find deeper other work I what into really deep area requirements enterprise solutions. a actually that's the of going us by lot

is not health this care, us So this or inside into see this area. whether marketing, whether not or inside this going of this not in of go or enterprise financial whether in is is e-learning or not not you're whether is or in or or solutions to services deeper whether education, is this

things streaming variety say actually think of intelligence. artificial interactive And there's an and I'll do what improve deeper whole We than more even again, then experiences talked a map make can more streaming to I've that to we have exciting. road about experiences, in we

lot be X Again, solutions in And so into and formats, of going to AI. these our areas R&D. deep the to that going we're investments in a security, be in are in it's And deep in those are areas. going in

Operator

Cowen. TD caller, our Bill And next Kerr from

William Kerr

and So Can enterprise enterprise then accelerated we slightly. growth you're on that through color than drivers was XXXX? booking the XQ? sort you thinking in ARPU expected there between provide what -- as And some of subs just drivers move the of how the higher for saw and about growth key we you the

Gillian Munson

So time spend add. really let front day. will is right single in I'm me have He take some his and every Philip does numbers, customers and them sure the with half of color to

business, growing ARPU right So, is you Enterprise can look growth now double-digit it and when growth. see coming at the double-digit in subscribers underneath business is the unit way and the new you basically and AOV then of the the numbers, terms in

ability the features the new in are have, customers our land with both we to expanding So in and really total. addition base overall expand to subscriber from we benefiting

to a business, bit little of In the products. terms of higher-end saw a mix shift you

see $XXX,XXX-plus to I customers the our in year. growth the think in interesting it's

making the do. what about good in view really business. only are going feeling So underline to Enterprise that I think we're our can is business we're momentum the the And investments that

said the customers? terms said, have 'XX just Philip, of As any us. that a pipeline ago, in 'XX XXXX, made in the we alone in XX% what do anecdotal for let in new of I alone bookings drew can product for other investments minute strong we've

Philip Moyer

my world to champions, and Sure. that to remind favorite are Well, this have my have Eagles. an the be would I on have call. to I probably own of Vimeo customer, as go to everybody Philadelphia kind example, They just

of doing and And say, in with an [indiscernible] all I we a example, consider we is Enterprise very we the expanding so doing be And in of might might because team customer. very new we're this just I'd And inside year inside what customers should we might what's as not divisions the of football something start landing across with, existing go also doing mentioned, quickly live be happening, inside say, We're greatest organization. customers. e-commerce, great an the with of I example for quickly, marketing. event, webinars, Enterprise

salespeople video. We're portfolio video organizations. giving Financial actually care are reviews use their starting So health in advisers increasingly, seeing in interactions. are to

get how if a a paper, if you the for to customer a XX% plug of provide to can visit instead for care after When password in to of you you go Wi-Fi. to you and health you stack when better care get actually you say, example, actually or adherence protocols, need retention, support, get phone off change know higher a I video my watch quicker the WiFi video, my

very the an The that quickly of that a one meet into when with on our what's company going we're and able about scale to so And inside driving across in be is to work planet in is inside we this thing the few companies a of very amazing expansion. other all video go enterprise, we're company the with going be able at. of this and the a requirements security, to ability rest of company land lot organization

go also we However, of in use. ease with

fact the And on quicker lot our we inside both And of lot actually that much a us company. enterprise either come a or consumer. makes are worlds video of more so those live a competitors in their of to

customer as very important that our and on eye also keep So actually up is a us kind the growing. result, a enterprise are a sheer minutes running decreasing. on. an get It's that And amount time of of of an are inside statistic we to

And so customer divisions, multiple those the multiple types.

is I company recently other of One ones was telecommunications over mentioned biggest of one Europe. became the Orange This that in a the customer.

and And organizations able ease that we're telecommunications up Eagles, use, providers from with in the of way with world artificial grade. scale providing enterprise of to able so the workflow scale we're to security care an the we're biggest that the providing into we're and this all intelligence individual some the like companies the the health from

Gillian Munson

love XXXX, One, going of add larger an there. how brought our a that. of focus In terms a think there's to addition Officer. a focus customers terms customers. new done kind we Chief on in break it to terrific team is, and little then on year of what an And Revenue but letter, we've different this our We had is point way. bit those and actually I our And on who to smaller this bit that important in I'd we've X important it's who things thing business. we're interesting market a other in addressing are in One is of those

all a what be business a in a job. state know, team has you really in saw that thought As 'XX, OTT that was we and good that of is done decline. resilience have And terrific we might fact, business, in in

their video, and What teams we're Philip as because video a OTT together of key increasingly, demand is the bringing with team said, of installations. Vimeo expand streaming doing their enterprise piece sales as Enterprise customers the you're fundamental

think they addressing we're a of way to that to want at, as And also And be the doing on look so is we what great be where business addressed. focusing into really is customers 'XX. really we this and they're them in then side for going

William Kerr

changes well. subscriber I and in XQ whether question pricing expect XXXX numbers a had a self-serve just through just face on sort continue The the as persist quick then can to you're to of was how if in sort and impact pressure. about bit the on And that what year? wondering Great. of of move that Self-Serve little . as you Self-Serve we XXXX thinking --

Gillian Munson

Absolutely.

numbers So me let can piece, Self-Serve a you little talk take just how in we're then about the and bit to Philip 'XX. running

we across is more subscribers on. grow able we're in is the What's up rolled interesting that really and we and were the absolutely AOVs increases ended can digits. half how our We And And aim, focused that what continue to double bring price business. Self-Serve. that than believe out we Self-Serve about XXXX to that in is

through later waterfall of because business little goes. nature the the of how You'll come see the ARPUs a

And still increases where that do the terms now know work so really of terms trajectory helping those what's in in in are is up, while going us bookings happening numbers have we back ARPU business. right is the we of subs to bringing

really a positive get our bridge the that's we work think subs towards and way turn well. XXXX we as great So as through the

about you how in business. we're a really will what Self-Serve we're it. we're excited how running color give thinking on happen that 'XX. that's in So little Maybe And about can Philip

Philip Moyer

Yes.

we've in having single-threaded the we're over I us. presenting happy most that around the a the leadership us there's little us. limiting user a really years. not with been be of some things is churn cases, to upload too that things. they has In with options past been would many -- some think we're on could In It's business. perspective. of that small one And a I single the This established wounds is that because the course we some cases, actually cases, never things done that amount QX important interface. really that discovered might pricing the it's of one packaging and we've important few of large say some thing from that they're self-inflicted customer not In were to videos we've

And more needed saw single-threaded of team. so to we issues of said we these when get an inside even we some the focused business,

single-threaded in and QX, And so leadership that we established team. a single-threaded

you, start levels seeing tell that you you to higher and at we're retention have and very I increase rare better AOV it's that prices the seeing.

That with And stay so us we're customers tells to really that want excited about us. that. actually

quite our all So we're a things we're of lot releasing you're capabilities a see the base. of user our from And in we're -- the lot flows. actually hearing to here, coming population. We're enhancing the out actually to cleaning that frankly, quarter the going customer AI to responding up we're Self-Serve

languages. of of video the actually They having their the individual to in of teachers, spot that more even They more customers. need into actually around being translations or for one nonprofits idea the their world. out right It love discoverable love they to that video school turns idea the of able creators, love XX they the go filmmakers, their idea

And so artificial And that been to security business. down in capabilities about that relates all the talking as neatly of some scale I've even Self-Serve to cases, it intelligence.

going features the to the capabilities now, those sure so Self-Serve then releasing in see they're the of we're bring cases, down some kind population. to right to user making enterprise-grade, and And you're us enterprise,

look film of some We throughout up ways link of of for people important I consistently was stunning Brazil, of of continues Festival, Vimeo then our variety over video. from Academy from Berlin met that Film thousands power met of being a I private platform. we festival. power links the able and and the capabilities, European the to Sundance by heard or whole Film We back I festivals also ensuring years film literally requirements. listening South and thousands Association to this coming at to better use the the of both billions Alley from course to be single-threaded And things of with just to are at get all responding their the world. Film most get that Berlin us we're that to people filmmakers from team of leadership to better from Vimeo And that Alley and Festival. share be were We we a I one filmmakers and one power and [indiscernible]. shared the and got going to customer those videos the We me. Southwest, it the powered were

so not business. we're the very, charging, say, optimistic, of the about that very, And future that but I'm I price also would about just subs

Gillian Munson

one it rates, our retention want make Bill, year-over-year, stable. And is because are mentioned Philip to I I sequentially thing and both -- sure underline

change cases, prices you up us. are some over XX%. to have sign some to whenever So a is And price, terrific retention and stable in of our

explaining to the have make we're So back is we look very opportunity that turn are as in are of we XXXX. this our the growth, at we Self-Serve confident enthusiasm these how us for going signals out roll to looking at when to kinds

Operator

to next, with Youssef go And Truist. we'll Squali

Youssef Squali

organic shareholders, business you if question cash versus the starting about talk the strong of to just generation balance your maybe how level, investment terms can that at and the need is returning maybe know business free show? a Apologies, just the now in considering your asked, But is for cash you sheet high flow I to was see allocation, capital just in joined. intensity I that the don't this

Gillian Munson

flow, our to EBITDA investors. in bunch look saw Absolutely, we and meaningful in our we where when are at you that a cash free returned increase and a you of XXXX,

$XX bought million So back we of over stock.

still and buy a cash that particularly $X, given average than really capital, I which itself, of very that balance continue the use is is of In buyback QX as is we well price our well. ours, $XXX We less here million. in wish over terms think to our good of

XXXX, we sense. Investing we have, we the in looked at it. opportunities As allocation capital a we look at business at and of realm And look of for makes the lot

have terms for we're $XX sizing, up what in an we about talking so million. to is And of appetite

potential we heard profitable, we've we you've be to and think can business me previous the think this say profit think want calls, is business excellent. and before, relayed profitable. We I this in be of

size, the right million we $XX responsibly. gone working an to we and we when size in about very about million by So EBITDA $XX going of think program we've what's and our to That's is spend through think you possible there. the will million, about to yield with $XX teams, understand program that

have is the said What to double-digit exit will think sight with we year we of growth. line that we

a If Vimeo, that you run you investment year. just double-digit growth paid basically the in of back course on

we go gone we're X over about for we're years. do feel really business we really really XX I of business and I the OpEx at through course out When over $XXX business. drive And for the taken gone could run I the evolved we've [ investments So years, the giving good and the stability really it what of excited XX that's of last proud have to and business. this what it, about how we rate, growth last think look have make million mean it's and the opportunity non-GAAP here. this and couple the ], of these to expenses us from of our roughly, at

Philip Moyer

our the on beginning it AI driven our that new you XX% was in want very things that just to one that call, by in bit of add to a capabilities. QX, the that little customer deals of at didn't if said were hear the I of we No,

in sell. and with That business. the started when business had responding capabilities -- they new to growth capabilities to just released year, when and we requirements. quicker capabilities, OTT release our we well. ourselves in develop QX these we've customer We putting Now new quickly thing saw to the We are customers, streaming earlier same proved very actually bookings to we as them returned started more

get the develop flywheel working, actually customers And so want, ourselves and it that to actually listening to proving when customers growth. drive of we're the that can we our things results we we

drive the R&D believe we of investments. ability capital of to that to able And now one best uses this so these growth organic be is with right

Youssef Squali

QX between That's you're guess, on Gillian, I guide. just to versus And growth Enterprise like thinking grown term? the little can speak helpful. although then seems to . maybe quarters, be bit should you that maybe obviously several is on a about things double-click of back doing take near Enterprise, in Self-Serve the Self-Serve finally being fast. but lot get we a it how it growth, to starting may really to

Gillian Munson

to out think of are The I the thinking about lay revenue rates way. right and see we accelerating that the thinking it bookings is you're how way will growth. is we about year going

-- revenue from So you growth in driver. going you leading and side, revenue our turn right? both the through the through sure new a So course aid will continue you year, going first Self-Serve that we as the which for on Enterprise a year. to and following back are start, start of accelerating The place bookings to sort mode, past bookings. for help the we bookings, you're the of where to going and But is watch is growth towards our be over we way really water of to started from really that believe work

grower. So both. absolutely we're But faster enthusiastic the really will side about Vimeo be the enterprise certainly,

Operator

portion the call. And Q&A concludes that our of

Before some over CEO, we Philip for to turn close, it Moyer words. I'll our final

Philip Moyer

want to much our to joining everyone again thank again for we forward and We're looking year, this to QX look forward on us updating I progress. today. you just very

Vimeo (VMEO) 19 Feb 252024 Q4 Earnings call transcript