Executive Summary

Q4 revenue of $103.2M declined 2% YoY while bookings grew 3%; GAAP net income was $1.5M, operating income $1.3M, and Adjusted EBITDA $10.7M (10% margin) .
Enterprise momentum remained the standout: Enterprise revenue +37% YoY with 39% bookings growth; Enterprise run-rate bookings exceeded $100M for the second straight quarter; Enterprise now 22% of revenue and 29% of Q4 bookings .
Management guided Q1 2025 revenue “near $100M,” operating loss ≈$9M, and Adj. EBITDA slightly above breakeven; FY25 revenue “low single digits” with operating loss ≈$5M and Adj. EBITDA $25–$30M as Vimeo invests up to $30M in innovation to reaccelerate growth .
Self-Serve remains a headwind (Q4 revenue -8% YoY) but pricing actions drove double-digit AOV gains with stable retention; OTT returned to bookings growth and is being aligned with Enterprise sales for cross-sell .
Stock reaction catalysts: heavier 2025 investment (near-term margin pressure), accelerating Enterprise/OTT growth, and early AI monetization (AI cited in ~40% of Q4 Enterprise wins) .

What Went Well and What Went Wrong

What Went Well

Enterprise acceleration: Q4 Enterprise revenue +37% YoY, bookings +39%, with $100M+ run-rate bookings and notable wins at Adidas, Clarins, Orange, Datadog, and SanDisk; subscribers ~4,000 (+19%) and ARPU >$23k (+12%) .
AI traction as a sales driver: AI capabilities (translation, transcription, captioning, clip generation) cited as a factor in ~40% of Q4 Enterprise wins since August 2024; management sees AI as central to 2025 product roadmap .
Profitability and cash discipline: Q4 gross margin 78%; FY24 net income $27.0M and record $55M Adjusted EBITDA; year-end cash $325M after $33M in buybacks during 2024 .

What Went Wrong

Self-Serve & Add-Ons weakness: Q4 revenue -8% YoY and bookings -6% YoY; subscribers declined to 1,227.7k (from 1,379.7k); add-on bookings down from the pandemic peak .
Mixed bottom line sequentially: Operating income fell to $1.3M in Q4 from $7.4M in Q3 as opex increased with early 2025 investments and seasonal S&M; Adjusted EBITDA margin compressed to 10% from 15% in Q3 .
“Other” (incl. legacy products) still a headwind: Q4 “Other” revenue -16% YoY on product deprecations; management is shifting focus to OTT where bookings grew mid-single digits in Q4 .

Financial Results

Headline Metrics (GAAP unless noted)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$104.376	$104.564	$103.156
Diluted EPS ($)	$0.06	$0.05	$0.01
Gross Margin (%)	78%	79%	78%
Operating Income ($USD Millions)	$7.461	$7.365	$1.268
Net Income ($USD Millions)	$10.121	$9.282	$1.536
Adjusted EBITDA ($USD Millions)	$16.343	$16.1	$10.7
Adjusted EBITDA Margin (%)	16%	15%	10%

Management context: “In Q4, we delivered bookings growth. While revenue fell 2%, bookings grew 3%... Adjusted EBITDA of $11M” .

Segment Revenue

Segment Revenue ($USD Thousands)	Q2 2024	Q3 2024	Q4 2024
Self-Serve & Add-Ons	$68,565	$67,864	$65,350
Vimeo Enterprise	$20,051	$21,675	$22,998
Other	$15,760	$15,025	$14,808
Total Revenue	$104,376	$104,564	$103,156

Q4 YoY by segment: Self-Serve -8% YoY, Enterprise +37% YoY, Other -16% YoY .

KPIs and Operating Metrics

KPI (units as shown in company tables)	Q2 2024	Q3 2024	Q4 2024
Self-Serve & Add-Ons Subscribers (000s)	1,304.6	1,275.4	1,227.7
Self-Serve & Add-Ons ARPU ($)	$208	$209	$208
Self-Serve & Add-Ons Bookings ($000s)	$67,904	$62,159	$63,738
Enterprise Subscribers (000s)	3.7	3.8	4.0
Enterprise ARPU ($)	$21,977	$23,043	$23,493
Enterprise Bookings ($000s)	$23,433	$25,092	$30,180
Other Subscribers (000s)	57.0	53.5	50.0
Other ARPU ($)	$1,080	$1,082	$1,139
Other Bookings ($000s)	$9,144	$12,663	$10,591

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q1 2025	n/a	“Near $100 million”	New
Operating Loss	Q1 2025	n/a	≈$9 million loss	New
Adjusted EBITDA	Q1 2025	n/a	Slightly > breakeven	New
Revenue	FY 2025	n/a	Low single-digit growth; acceleration through the year	New
Operating Loss	FY 2025	n/a	≈$5 million	New
Adjusted EBITDA	FY 2025	n/a	$25–$30 million (reflects up to $30M incremental investment)	New

Checkpoint (prior Q4 guide vs actuals): Q4 2024 guide was revenue ~ $100M, operating income ≈ $2M, Adj. EBITDA ~ $10M . Actuals: $103.2M revenue (above), $1.3M operating income (below), $10.7M Adj. EBITDA (above) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology initiatives	Launched AI translations; AI foundational across Self-Serve and Enterprise; goal to add more AI workflows	AI a driver in ~40% of Q4 Enterprise deals; indexing/“ask a video” features; plan to roll AI to Self-Serve broadly	Strengthening adoption and monetization
Enterprise momentum & sales motion	Larger AOV, security/integrations; run-rate bookings target $100M; Vision Pro/spatial formats support	Enterprise revenue +37% YoY; 39% bookings growth; $100M+ run-rate; two-pronged GTM (SMB vs large enterprise) and combined Enterprise+OTT sales	Accelerating growth, refined GTM
Self-Serve pricing & retention	Pulled back paid marketing ~50%; pricing/packaging work; expect investment to return to growth (not in 2024)	Double-digit AOV increases with stable retention despite price hikes; Self-Serve subscribers still pressured near term	Early positive pricing signals; sub base still under pressure
OTT/Streaming	Stabilizing; bookings growth aspiration; part of “Other” drag from deprecated products	OTT bookings grew mid-single digits in Q4; aligning OTT with Enterprise sales for cross-sell	Stabilizing to modest growth
Security/compliance & regional reach	Emphasis on enterprise-grade security; opened China streaming for corporate clients; data residency	Continued focus on SSO, data residency, governance; security a key selling point	Sustained emphasis as differentiator
Capital allocation	Initiated buybacks; strong cash; intent to invest for growth	Up to $30M incremental 2025 investment balanced with ongoing repurchases; cash $325M at YE	Increased near-term investment intensity

Management Commentary

“In Q4, we delivered bookings growth. While revenue fell 2%, bookings grew 3%... Adjusted EBITDA of $11 million.” — Shareholder Letter .
“Vimeo Enterprise continues its strong momentum… Q4 annualized bookings topped $100 million… revenue increasing by 37%… Subscribers reached approximately 4,000 with subscriber growth of 19%, and a 12% ARPU increase to over $23,000.” — Shareholder Letter .
“The time for AI in video is now… we are excited to be playing a central role in helping enterprises of all sizes harness artificial intelligence in video.” — CEO, prepared remarks .
“In Q4, 40% of our customer deals were driven by our new AI capabilities… when we develop new capabilities and release them to customers, they sell.” — CEO, Q&A .
“We have an appetite for up to $30 million [in 2025 investment]… That’s going to yield EBITDA of $25–$30 million… we think we will exit the year with line of sight to double-digit growth.” — CFO, Q&A .

Q&A Highlights

Enterprise drivers and mix: Double-digit growth in both subscribers and ARPU/AOV drove Enterprise bookings; growing $100K+ customer cohort; security, integrations, and AI key differentiators .
Self-Serve pricing and retention: Double-digit AOV uplift from price increases with stable retention despite some prices rising >30%; focus on single-threaded leadership, UX cleanup, rolling enterprise-grade AI down-market to creators .
Capital allocation: >$30M of buybacks in 2024 with continued repurchases in Q1; 2025 plan to invest up to $30M given strong cash position ($325M) and ROI focus; target exiting 2025 with line of sight to double-digit growth .
Near-term outlook composition: Expect bookings growth to lead revenue due to subscription waterfall; Enterprise to lead growth with Self-Serve turning positive later in 2025 .

Estimates Context

Wall Street consensus estimates (S&P Global) were unavailable at retrieval time due to API limits; as a result, we are unable to provide a vs-consensus beat/miss analysis for revenue, EPS, or EBITDA for Q4 2024, Q3 2024, or Q2 2024 at this time.*

*Values retrieved from S&P Global.

Key Takeaways for Investors

Enterprise is the growth engine: sustained double-digit bookings and revenue growth, increasing $100K+ deals, and $100M+ run-rate bookings underpin a clearer path to total company re-acceleration .
AI is monetizing: ~40% of Q4 Enterprise wins influenced by AI features; planned expansion of AI to Self-Serve may broaden adoption and ARPU uplift over 2025 .
2025 is an investment year: guidance implies near-term margin pressure (Q1 operating loss ≈$9M; FY loss ≈$5M) as R&D and product investments ramp to accelerate bookings and revenue growth through the year .
Self-Serve stabilizing levers: Double-digit AOV gains and stable retention despite price increases are constructive; watch for subscriber inflection as UX and packaging issues are addressed and AI features roll out .
OTT returns to growth and is now strategically tied to Enterprise; cross-sell motion could lift “Other” mix away from deprecated products .
Execution watchpoints: sequential opex increases as investment ramps; need to see bookings acceleration convert to revenue and EPS improvement by 2H’25 .
Liquidity/capital return: $325M cash provides ample flexibility to fund growth and offset dilution via repurchases while maintaining profitability focus over the medium term .

Notes and Sources:

Q4 2024 8-K/Shareholder Letter (financials, segments, guidance, cash): .
Q3 2024 10-Q and 8-K (trend comps, reconciliations, prior guidance): .
Q2 2024 8-K/10-Q (trend comps): .
Q4 2024 Earnings Call Transcript (themes, Q&A): .

Vimeo, Inc. (VMEO)·Q4 2024 Earnings Summary