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    Vimeo (VMEO)

    VMEO Q3 2024: Enterprise bookings top $100M; cost cuts boost margins

    Reported on Jul 28, 2025 (After Market Close)
    Pre-Earnings Price$4.81Last close (Nov 4, 2024)
    Post-Earnings Price$6.08Open (Nov 5, 2024)
    Price Change
    $1.27(+26.40%)
    • Enterprise growth momentum: Vimeo's enterprise segment is gaining traction with $100 million annualized bookings and diverse customer adoption in e-commerce, e-learning, and media, which supports a robust and diversified revenue base.
    • Cost efficiency and margin improvement: The company has trimmed about $100 million in annualized operating expenses, maintaining stable gross profits and EBITDA, thereby creating capacity for strategic investments without compromising profitability.
    • Innovative product developments: Vimeo is actively leveraging emerging technologies with integrations like AI-powered translation and support for immersive formats such as Apple Vision Pro, along with revamped pricing and packaging, positioning it to benefit from evolving video trends.
    • Weak Self-Serve Performance: The Self-Serve business was down 6% in Q3, and management acknowledged it still needs to climb back to growth, which raises concerns for overall performance.
    • Decelerating Revenue Growth: Commentary on Q4 guidance indicated that a prior down bookings quarter will lead to a slowdown in revenue growth, highlighting challenges in sustaining momentum.
    • Execution Risk in New Initiatives: Heavy reliance on enterprise growth and new product innovations (e.g., Apple Vision Pro integration and AI enhancements) may pose execution risks if these initiatives do not monetize quickly.
    1. Enterprise Momentum
      Q: What drove 3Q enterprise revenue and bookings?
      A: Management pointed to strong enterprise performance driven by improved pricing, secure integrations, and a ramp-up in demand that sets the stage for positive momentum into Q4 and 2025.

    2. Cost Efficiency
      Q: How did cost cuts enable further investment?
      A: The team executed $100M in annual operating expense cuts, maintaining gross profit while freeing up capital for strategic, yet profitable, investments.

    3. Product & Bookings Growth
      Q: How will new products restore bookings growth?
      A: With enhancements in packaging and innovative offerings—especially around Apple Vision Pro and AI translation—management expects these changes to reverse the previous bookings decline and stimulate growth.

    4. Enterprise Details
      Q: Which enterprise segments most boosted demand?
      A: Key contributions came from sectors like e-commerce, e-learning, and internal communications, with strong enterprise-grade security measures, including HIPAA compliance, driving robust adoption.

    5. Self-Serve Outlook
      Q: Will Self-Serve return to positive growth?
      A: Management is cautiously optimistic that strategic pricing and packaging improvements will help the Self-Serve business rebound, bolstered by overall enterprise momentum and OTT platform stability.

    Research analysts covering Vimeo.