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1. Company Snapshot

1.a. Company Description

Vimeo, Inc., together with its subsidiaries, provides video software solutions in New York and internationally.The company provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform.It also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools.


It serves creative professionals, small businesses, marketers, agencies, schools, nonprofits, and large organizations.The company was incorporated in 2020 and is headquartered in New York, New York.

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1.b. Last Insights on VMEO

Vimeo's recent performance has been driven by several positive factors. The company's Q2 2025 earnings report showed a significant beat, with EPS exceeding expectations by 1,500%. Additionally, Vimeo's management has been focused on driving growth, with the appointment of Rose Frawley as Chief People Officer to lead the company's global talent strategy. The company has also been investing in innovation, announcing a short film grant program in partnership with Nikon and RED. Most recently, Vimeo has entered into a definitive agreement to be acquired by Bending Spoons for $1.38 billion, with stockholders to receive $7.85 per share in cash.

1.c. Company Highlights

2. Vimeo's Q2 2025 Earnings Report: A Story of Growth and Innovation

Vimeo's Q2 2025 earnings report painted a picture of a company on the move, with bookings growing 6% year-over-year, the strongest growth since 2022. The self-serve business was a standout, with bookings growing 11% and reaching levels last seen in 2021. This was largely due to recent changes in packaging and pricing, as well as new product improvements. The enterprise business also saw significant growth, with revenue increasing 25% and achieving its second-highest booking level on a dollar basis. The company's adjusted EBITDA guidance was raised to approximately $35 million, up from its previous range of $25 million to $30 million. Earnings per share (EPS) came in at $0.04, significantly beating estimates of $0.0025. Revenue growth was not explicitly stated, but analysts estimate next year's revenue growth at 5.8%.

Publication Date: Aug -19

📋 Highlights
  • Q2 2025 Bookings Growth:: Vimeo achieved 6% YoY bookings growth, the strongest since 2022.
  • Self-Serve Business Growth:: Self-serve bookings increased 11%, reaching 2021 levels due to pricing changes and product upgrades.
  • Enterprise Revenue Surge:: Enterprise revenue grew 25%, with the second-highest booking level on record.
  • EBITDA Guidance Raised:: Adjusted EBITDA guidance raised to $35M for 2025, up from $25M–$30M.
  • Agentic AI Adoption:: Over 64% of companies adopt AI agents, with Vimeo integrating AI for video search, summaries, and interactive features.

Financial Performance

The company's financial performance was impressive, with a strong showing in bookings and revenue growth. The self-serve business has solid retention rates despite a subscriber decline, and the company believes it can be a growth business over time. The enterprise business saw a slowdown in bookings due to a large customer that was a bandwidth user, but the company is focused on a product roadmap that includes more than just bandwidth. According to the company's management, "we are proud of our efficiency and speed of innovation" - and rightly so, given the significant free cash flow generated and strong cash balance maintained.

Investment and Innovation

Vimeo is investing efficiently, with a plan to bring up the adjusted EBITDA guidance while still investing in the business. The company is rolling out agentic AI features, allowing customers to interact with its library using natural language interfaces, similar to ChatGPT. These features enable users to query the library, finding specific videos, analyzing watch times, and extracting details. The company sees huge potential in healthcare, customer support, and employee onboarding, and believes that over 64% of companies are adopting AI agents, with Vimeo aiming to be part of this ecosystem.

Valuation

At current prices, Vimeo trades at a P/E ratio of 46.88, a P/S ratio of 1.62, and an EV/EBITDA ratio of 24.56. The free cash flow yield is 7.25%, which is attractive compared to its cost of capital. Given the company's growth prospects and innovative product roadmap, it's clear that the market is pricing in high expectations for Vimeo's future performance.

Capital Allocation

Vimeo generates significant free cash flow and maintains a strong cash balance. The company considers three options for capital allocation: investing in the business, buying back shares, and M&A. This year, the focus has been on investing in the business, but Vimeo is open to attractive acquisition opportunities and has an appetite for share buybacks. With a high bar for M&A, the company prioritizes focus on existing initiatives.

3. NewsRoom

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Vimeo, Inc. (NASDAQ:VMEO) Receives $7.03 Consensus Target Price from Brokerages

Nov -25

Source: defenseworld.net

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Contrasting Orangekloud Technology (NASDAQ:ORKT) and Vimeo (NASDAQ:VMEO)

Nov -17

Source: defenseworld.net

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Teacher Retirement System of Texas Has $1.69 Million Stock Position in Vimeo, Inc. $VMEO

Nov -05

Source: defenseworld.net

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Here's What Key Metrics Tell Us About Vimeo (VMEO) Q3 Earnings

Oct -28

Source: zacks.com

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HALPER SADEH LLC ENCOURAGES HSII, VMEO SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Oct -23

Source: prnewswire.com

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Vimeo Elevates the Creator with Agentic Video, All New Vimeo Review, and Monetization Tools at REFRAME 2025

Oct -23

Source: globenewswire.com

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Other World Computing to Sponsor and Present at Vimeo REFRAME

Oct -14

Source: businesswire.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Vimeo, Inc. (NASDAQ: VMEO)

Sep -15

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.48%)

6. Segments

Self-Serve and Add-Ons

Expected Growth: 3.5%

Vimeo's Self-Serve and Add-Ons growth is driven by increasing demand for video creation and hosting solutions, expansion into new markets, and strategic partnerships. The 3.5% growth rate is also fueled by the rise of remote work, e-learning, and social media, which require high-quality video content. Additionally, Vimeo's user-friendly platform and competitive pricing strategy contribute to its growing customer base.

Other

Expected Growth: 3.0%

Vimeo's 'Other' segment, growing at 3.0%, is driven by increasing demand for its video creation and editing tools, expansion into new markets, and strategic partnerships. Additionally, the rise of virtual events and online learning platforms fuels growth, as businesses and individuals seek to create engaging video content.

Vimeo Enterprise

Expected Growth: 4.0%

Vimeo Enterprise's 4.0 growth driven by increasing demand for video-based communication and collaboration tools, expansion into new industries, and strategic partnerships. Additionally, its scalable and secure platform, advanced analytics, and customer support contribute to its growth. Furthermore, the rise of remote work and virtual events fuels demand for its services, leading to accelerated adoption.

7. Detailed Products

Vimeo

A video hosting, sharing, and services platform that provides a range of tools and features for hosting, sharing, and managing videos.

Vimeo Livestream

A live streaming platform that enables users to broadcast live video content to a global audience.

Vimeo OTT

An over-the-top (OTT) video platform that enables users to create and manage their own video streaming services.

Vimeo Enterprise

A customized video solution for large enterprises, providing advanced security, scalability, and integration with existing systems.

Vimeo Stock

A stock footage marketplace that offers a curated collection of high-quality, royalty-free videos.

8. Vimeo, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Vimeo's subscription-based model and high-quality video hosting services make it difficult for substitutes to emerge, but the presence of free video hosting platforms like YouTube and Facebook Watch poses some threat.

Bargaining Power Of Customers

Vimeo's customers are mostly creative professionals and businesses, who have limited bargaining power due to the company's specialized services and lack of alternative options.

Bargaining Power Of Suppliers

Vimeo's suppliers are mainly cloud infrastructure providers like Amazon Web Services, which have limited bargaining power due to the company's significant scale and negotiating power.

Threat Of New Entrants

The video hosting market is highly competitive, and new entrants can easily emerge, especially with the rise of cloud computing and artificial intelligence. However, Vimeo's established brand and high-quality services create barriers to entry.

Intensity Of Rivalry

The video hosting market is highly competitive, with established players like YouTube, Facebook Watch, and Wistia, as well as new entrants, which increases the intensity of rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.40%
Debt Cost 8.40%
Equity Weight 96.60%
Equity Cost 13.99%
WACC 13.80%
Leverage 3.52%

11. Quality Control: Vimeo, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
PROS

A-Score: 4.5/10

Value: 5.2

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Vimeo

A-Score: 4.2/10

Value: 1.8

Growth: 7.6

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
SurgePays

A-Score: 3.7/10

Value: 7.2

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
PubMatic

A-Score: 3.5/10

Value: 6.3

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Decisionpoint Systems

A-Score: 3.4/10

Value: 3.9

Growth: 4.8

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Everbridge

A-Score: 3.4/10

Value: 3.6

Growth: 7.2

Quality: 2.4

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.85$

Current Price

7.85$

Potential

-0.00%

Expected Cash-Flows