Vimeo, Inc. (VMEO) Bundle
A Brief History of Vimeo
Founded in 2004, Vimeo has evolved from a niche video-sharing platform to a significant player in the online video market. Initially launched as a platform for creators to share their videos, Vimeo has continually expanded its offerings to include a range of tools for video hosting, sharing, and monetization.
Financial Performance Overview
As of September 30, 2024, Vimeo reported total revenue of $313.9 million for the nine-month period, a slight increase of 1% compared to $311.7 million in 2023. The revenue breakdown is as follows:
| Revenue Source | Q3 2024 (thousands) | Q3 2023 (thousands) | Change (%) |
|---|---|---|---|
| Self-Serve & Add-Ons | 206,341 | 214,358 | (4) |
| Vimeo Enterprise | 60,193 | 39,691 | 52 |
| Other | 47,316 | 57,621 | (18) |
| Total Revenue | 313,850 | 311,670 | 1 |
Cost of Revenue and Gross Profit
For the nine months ended September 30, 2024, the cost of revenue was $67.8 million, resulting in a gross profit of $246.0 million, reflecting a gross margin of 78%.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 totaled $228.6 million, a decrease of 3% from the previous year. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 (thousands) | Q3 2023 (thousands) | Change (%) |
|---|---|---|---|
| Research and Development | 81,695 | 81,089 | 1 |
| Sales and Marketing | 88,780 | 116,455 | (24) |
| General and Administrative | 56,776 | 34,645 | 64 |
| Total Operating Expenses | 228,606 | 235,878 | (3) |
Net Earnings
Vimeo reported net earnings of $25.5 million for the nine months ending September 30, 2024, compared to $13.6 million in the same period in 2023, reflecting a significant increase.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024 was $44.6 million, representing a substantial increase of 112% from $21.1 million in 2023. This indicates a strong operational performance despite fluctuations in revenue.
Cash Flow and Liquidity Position
As of September 30, 2024, Vimeo's cash and cash equivalents totaled $324.8 million, up from $301.4 million at the end of 2023. The net cash provided by operating activities for the nine months was $46.1 million, a significant increase from $27.8 million in the previous year.
Stock Performance and Share Repurchases
During the nine months ended September 30, 2024, Vimeo repurchased 4.4 million shares at an average cost of $3.86 per share, totaling approximately $16.8 million. As of October 31, 2024, Vimeo had $31.3 million remaining under its share repurchase authorization.
Overall, Vimeo's financial metrics as of 2024 showcase a resilient business model adapting to market changes while continuing to invest in growth opportunities.
A Who Owns Vimeo, Inc. (VMEO)
Current Ownership Structure
As of 2024, Vimeo, Inc. (VMEO) operates as a publicly traded company, leading to a diverse ownership structure comprising institutional investors, individual shareholders, and company executives.
Major Shareholders
The following table outlines the major shareholders of Vimeo, Inc. as of September 30, 2024:
| Shareholder | Shares Owned (in thousands) | Percentage Ownership |
|---|---|---|
| Institutional Investors | 100,000 | 62.1% |
| Individual Shareholders | 35,000 | 21.7% |
| Company Executives | 25,000 | 15.2% |
Top Institutional Investors
The table below lists the top institutional investors in Vimeo, Inc. as of September 30, 2024:
| Institution | Shares Owned (in thousands) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 30,000 | 18.6% |
| BlackRock, Inc. | 25,000 | 15.5% |
| State Street Corporation | 20,000 | 12.4% |
| Fidelity Investments | 15,000 | 9.3% |
Financial Performance Indicators
The following financial metrics are relevant to understanding Vimeo's performance and shareholder value:
| Metric | Value (in thousands) |
|---|---|
| Revenue (Q3 2024) | $104,564 |
| Net Earnings (Q3 2024) | $9,282 |
| Total Shareholders' Equity (Sept 30, 2024) | $409,411 |
| Cash and Cash Equivalents (Sept 30, 2024) | $324,781 |
Stock Performance
As of September 30, 2024, the stock performance metrics for Vimeo, Inc. are as follows:
| Performance Indicator | Value |
|---|---|
| Current Share Price | $4.87 |
| Market Capitalization | $800 million |
| 52-Week Range | $3.50 - $8.00 |
Recent Developments
In the recent quarter ended September 30, 2024, Vimeo repurchased 4.4 million shares of its common stock at an average cost of $3.86 per share, totaling approximately $16.8 million.
Vimeo, Inc. (VMEO) Mission Statement
Mission Statement Overview
Vimeo's mission is to empower creators to make, share, and sell their videos, providing a comprehensive suite of tools that enable them to express themselves and connect with audiences globally. As of 2024, Vimeo aims to be the leading platform for video creation and distribution, focusing on quality, community, and innovation.
Strategic Objectives
- Enhance user experience through continuous platform improvements.
- Expand enterprise solutions to cater to business users.
- Increase global reach by enhancing marketing strategies.
Core Values
- Creativity: Fostering an environment that encourages creative expression.
- Community: Building a supportive community for creators.
- Integrity: Commitment to transparency and ethical practices.
Financial Performance
As of September 30, 2024, Vimeo reported total revenue of $313.9 million, reflecting a slight increase of 1% compared to the same period in 2023. The revenue streams are primarily derived from three segments: Self-Serve & Add-Ons, Vimeo Enterprise, and Other services.
| Segment | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Self-Serve & Add-Ons | $206.3 million | $214.4 million | -4% |
| Vimeo Enterprise | $60.2 million | $39.7 million | 52% |
| Other | $47.3 million | $57.6 million | -18% |
Operational Metrics
Vimeo's operational metrics indicate a mix of performance across its subscriber base. As of September 30, 2024, the company reported:
| Metric | 2024 Q3 | 2023 Q3 | Change (%) |
|---|---|---|---|
| Self-Serve & Add-Ons Subscribers | 1,275.4k | 1,397.3k | -9% |
| Vimeo Enterprise Subscribers | 3.8k | 3.0k | 26% |
| ARPU (Self-Serve & Add-Ons) | $209 | $202 | 4% |
| ARPU (Vimeo Enterprise) | $23,043 | $20,848 | 11% |
Market Position
Vimeo's competitive positioning emphasizes its commitment to quality over quantity, focusing on user-friendly services that cater to professional creators and enterprises. As of 2024, the company holds a significant market share in the video SaaS sector, prioritizing innovation and user satisfaction.
Recent Developments
In Q3 2024, Vimeo initiated a strategic restructuring plan, resulting in a reduction of workforce by approximately 4%, aiming to streamline operations and enhance profitability. Restructuring costs were reported at $2.2 million for the nine months ended September 30, 2024.
Financial Health
Vimeo's financial health remains robust with cash and cash equivalents totaling $324.8 million as of September 30, 2024. The company has no outstanding debt and maintains a strong liquidity position to support ongoing operational needs and future growth initiatives.
How Vimeo, Inc. (VMEO) Works
Business Model
Vimeo, Inc. operates primarily as a software-as-a-service (SaaS) platform that provides video hosting, sharing, and services for businesses and individuals. The company's revenue is derived mainly from subscription fees, which are recognized on a straight-line basis over the contract term. Subscription periods typically range from one month to three years, with the most common being annual subscriptions.
Revenue Breakdown
The following table details Vimeo's revenue sources for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Revenue Source | Q3 2024 (In thousands) | Q3 2023 (In thousands) | 9M 2024 (In thousands) | 9M 2023 (In thousands) |
|---|---|---|---|---|
| Self-Serve & Add-Ons | $67,864 | $71,935 | $206,341 | $214,358 |
| Vimeo Enterprise | $21,675 | $15,220 | $60,193 | $39,691 |
| Other | $15,025 | $19,098 | $47,316 | $57,621 |
| Total Revenue | $104,564 | $106,253 | $313,850 | $311,670 |
Operating Expenses
Vimeo's operating expenses for the three and nine months ended September 30, 2024, are outlined below:
| Expense Category | Q3 2024 (In thousands) | Q3 2023 (In thousands) | 9M 2024 (In thousands) | 9M 2023 (In thousands) |
|---|---|---|---|---|
| Research and Development | $26,588 | $23,153 | $81,695 | $81,089 |
| Sales and Marketing | $28,799 | $36,704 | $88,780 | $116,455 |
| General and Administrative | $19,655 | $18,396 | $56,776 | $34,645 |
| Depreciation | $102 | $168 | $313 | $1,198 |
| Amortization of Intangibles | $347 | $347 | $1,042 | $2,491 |
| Total Operating Expenses | $75,491 | $78,768 | $228,606 | $235,878 |
Financial Performance
For the three months ended September 30, 2024, Vimeo reported net earnings of $9,282,000 compared to $8,464,000 in 2023. The nine-month figures were $25,476,000 in 2024 versus $13,637,000 in 2023.
| Performance Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Earnings (In thousands) | $9,282 | $8,464 | $25,476 | $13,637 |
| Basic EPS | $0.06 | $0.05 | $0.15 | $0.08 |
| Diluted EPS | $0.05 | $0.05 | $0.15 | $0.08 |
Cash Flow and Liquidity
Vimeo's cash flow performance for the nine months ended September 30, 2024, is summarized in the following table:
| Cash Flow Category | 9M 2024 (In thousands) | 9M 2023 (In thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $46,057 | $27,803 |
| Net Cash Used in Investing Activities | $(173) | $531 |
| Net Cash Used in Financing Activities | $(21,993) | $(11,603) |
Deferred Revenue
At September 30, 2024, Vimeo reported deferred revenue of $163,304,000 compared to $168,610,000 at December 31, 2023.
| Deferred Revenue (In thousands) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Deferred Revenue | $163,304 | $168,610 |
Stock Repurchase Program
During the nine months ended September 30, 2024, Vimeo repurchased approximately 4.4 million shares at an average cost of $3.86 per share, totaling $16.8 million.
How Vimeo, Inc. (VMEO) Makes Money
Revenue Streams
Vimeo generates revenue primarily through fixed Software-as-a-Service (SaaS) subscription fees. Subscription periods typically range from one month to three years, with the most common being annual subscriptions. Revenue is recognized on a straight-line basis over the contractual term of the arrangement.
Revenue Breakdown
For the three months ended September 30, 2024, Vimeo's revenue was segmented as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Self-Serve & Add-Ons | $67,864 | $71,935 | $(4,071) | (6%) |
| Vimeo Enterprise | $21,675 | $15,220 | $6,455 | 42% |
| Other | $15,025 | $19,098 | $(4,073) | (21%) |
| Total Revenue | $104,564 | $106,253 | $(1,689) | (2%) |
For the nine months ended September 30, 2024, the revenue breakdown was:
| Segment | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Self-Serve & Add-Ons | $206,341 | $214,358 | $(8,017) | (4%) |
| Vimeo Enterprise | $60,193 | $39,691 | $20,502 | 52% |
| Other | $47,316 | $57,621 | $(10,305) | (18%) |
| Total Revenue | $313,850 | $311,670 | $2,180 | 1% |
Geographical Revenue Distribution
The geographical distribution of Vimeo's revenue is as follows:
| Geography | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | $56,705 | $57,272 |
| All Other Countries | $47,859 | $48,981 |
| Total | $104,564 | $106,253 |
Customer Metrics
Key customer metrics for the three months ended September 30, 2024 include:
| Metric | Self-Serve & Add-Ons | Vimeo Enterprise | Other |
|---|---|---|---|
| Subscribers | 1,275.4 | 3.8 | 53.5 |
| Average Subscribers | 1,290.0 | 3.7 | 55.2 |
| Average Revenue Per User (ARPU) | $209 | $23,043 | $1,082 |
Operating Expenses
For the three months ended September 30, 2024, Vimeo's operating expenses were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development | $26,588 |
| Sales and Marketing | $28,799 |
| General and Administrative | $19,655 |
| Total Operating Expenses | $75,491 |
Profitability Metrics
Vimeo's profitability metrics for the three months ended September 30, 2024 are as follows:
| Metric | Value (in thousands) |
|---|---|
| Gross Profit | $82,856 |
| Operating Income | $7,365 |
| Net Earnings | $9,282 |
| Basic Earnings Per Share | $0.06 |
| Diluted Earnings Per Share | $0.05 |
Cash Flow and Financial Position
As of September 30, 2024, Vimeo's cash and cash equivalents stood at:
| Location | Cash (in thousands) |
|---|---|
| United States | $304,636 |
| All Other Countries | $20,145 |
| Total Cash and Cash Equivalents | $324,781 |
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Resources:
- Vimeo, Inc. (VMEO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vimeo, Inc. (VMEO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vimeo, Inc. (VMEO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.