Sign in

    Vimeo (VMEO)

    VMEO Q2 2024: Enterprise Revenue Up 55% on Major Deals

    Reported on Jul 28, 2025 (After Market Close)
    Pre-Earnings Price$3.55Last close (Aug 5, 2024)
    Post-Earnings Price$4.12Open (Aug 6, 2024)
    Price Change
    $0.57(+16.06%)
    • Strong Enterprise Growth: Vimeo’s Enterprise business posted 55% revenue growth in Q2, driven by increased AOV, deeper customer relationships, and significant pipeline activity including multimillion-dollar deals and expansion into new markets like China.
    • Innovative, Data-Driven Business Model: Investments in automation, AI enhancements (e.g., translation features), and improved workflow in the Self-Serve segment aim to turn around declining year-over-year growth, bolstering the platform’s value for both individual creators and enterprises.
    • Robust Capital Allocation and Market Positioning: A solid balance sheet with $20 million in free cash flow and ongoing share buyback initiatives, aligned with strategic investments and a strong market position in the global video ecosystem, underpins Vimeo’s long-term growth potential.
    • Self-Serve Headwinds: The Self-Serve business remains stagnant with a 9% decline and no expected growth in 2024, compounded by a 50% cut in paid marketing spend which could impede future customer acquisition.
    • Short-Term Margin Pressure: Despite a track record of efficiency, the company is entering a phase of investing in growth that will likely reduce near-term margins, potentially impacting profitability.
    • Reliance on Large Enterprise Deals: The Enterprise segment, while showing strong growth in average order values and bookings, is dependent on closing large, multi-million-dollar deals, which could introduce volatility if those high-value deals don't materialize as expected.
    1. Buyback Plans
      Q: What's the pace for buybacks?
      A: Management repurchased 4 million shares for roughly $15 million up to early August and will continue buybacks to offset dilution, underscoring a strong balance sheet and free cash flow.

    2. Self-Serve Growth
      Q: When will Self-Serve turnaround occur?
      A: Despite a decline driven by a 50% cut in paid marketing, management is set on reviving Self-Serve through further automation and AI, though they don’t expect growth in 2024.

    3. Enterprise Performance
      Q: How did Enterprise perform this quarter?
      A: The Enterprise segment showed strong bookings with improved average order value and deepened customer relationships, even as subs remained flat, pointing to a path toward double-digit growth.

    4. GenAI Ecosystem
      Q: What role will GenAI play?
      A: Vimeo is positioning itself as the trusted partner for creators by integrating AI while safeguarding content rights, benefiting both small creators and large enterprises.

    5. Dual Business Investments
      Q: Are investments across both segments?
      A: Yes, key investments—like the new translation feature—are being made to serve both the Self-Serve and Enterprise sides, leveraging common capabilities.

    6. Growth Vision
      Q: What is your long-term growth vision?
      A: Management remains excited by the global video market, emphasizing innovation with AI and strategic investments to harness growth in digital content and marketing.

    Research analysts covering Vimeo.