Vimeo(VMEO)2025-02-19 21:04Financial Performance - Vimeo ended 2024 with its highest quarterly bookings in 10 quarters, achieving a bookings growth of 3% in Q4 despite a 2% decline in revenue[6]. - The company reported a gross margin of 78% and net earnings of 55 million, over 3 times the total Adjusted EBITDA generated from 2021-2023 combined[5]. - Revenue for Q4 2024 was 105,544 thousand in Q4 2023[51]. - Gross profit for Q4 2024 was 82,287 thousand in Q4 2023, reflecting a gross margin of 77.7%[51]. - Operating income decreased significantly to 5,574 thousand in Q4 2023[51]. - Net earnings for Q4 2024 were 8,395 thousand in Q4 2023, resulting in basic and diluted earnings per share of 10.7 million, down from 10.8 million, consistent with 1.5 million in Q4 2024, compared to a net income of 100,000+ ARR, with annualized bookings exceeding 23,000[17]. - Vimeo's Self-Serve & Add-Ons category saw a decline in revenue and bookings by 8% and 6% year-over-year in Q4, but average order values increased by approximately 30% due to new pricing[27]. - Self-Serve & Add-Ons revenue decreased to 71,171 thousand in Q4 2023, while Vimeo Enterprise revenue increased to 16,808 thousand[57]. - The number of Self-Serve & Add-Ons subscribers decreased to 1,227.7 thousand in Q4 2024 from 1,379.7 thousand in Q4 2023[57]. Cash and Assets - In Q4, Vimeo's cash balance increased to 24 million from 2024, after repurchasing nearly 6 million shares[6]. - Total current assets increased to 351,468 thousand as of December 31, 2023[54]. - Cash and cash equivalents at the end of Q4 2024 were 301,436 thousand at the end of Q4 2023[56]. - Total liabilities decreased slightly to 240,688 thousand as of December 31, 2023[54]. Future Outlook and Strategy - The company plans to increase innovation investment in 2025, targeting double-digit growth in bookings and revenue, with Vimeo Enterprise and OTT/streaming representing 38% of bookings and 34% of revenue[8]. - The company anticipates Q1 2025 revenue near 9 million and Adjusted EBITDA slightly greater than breakeven[49]. - The company anticipates an operating loss of 27.5 million for the full year 2025[65]. - Vimeo's OTT product delivered mid-single-digit bookings growth in Q4, with a focus on drawing streaming customers closer to Vimeo Enterprise offerings in 2025[34]. - The company plans to utilize share repurchase authorization as part of its future strategy[95]. - The company is focused on expanding into additional international markets and enhancing its value proposition to retain paying subscribers[95]. Expenses and Cost Management - The company achieved a significant reduction in expenses, with over 78,986 thousand in Q4 2024 from 76,713 thousand in Q4 2023, with R&D expenses rising to 27,678 thousand[51]. - GAAP Research and Development expense increased to 26.0 million in Q4 2023, representing an increase of 6.5%[60]. - GAAP Sales and Marketing expense decreased to 35.0 million in Q4 2023, a reduction of 11.1%[60]. - Non-GAAP General and Administrative expense for Q4 2024 was 14.6 million in Q4 2023, reflecting an increase of 8.9%[60]. - Operating Income Margin for Q4 2024 was 1%, down from 5% in Q4 2023, indicating a decline in profitability[61]. Stock and Dilution - As of February 13, 2025, the total common stock outstanding is 164.9 million shares[92]. - The estimated dilution from stock appreciation rights (SARs) and stock options is 8.8 million shares, with a strike price of $5.46[92]. - The total estimated dilution is projected to be between 6.7 million and 9.0 million shares, resulting in a dilution percentage ranging from 4.1% to 5.4%[92]. - The total estimated diluted shares outstanding will increase from 171.5 million to 173.8 million shares by February 2025[92]. Risks and Market Position - The company anticipates future operational results and financial conditions to be influenced by various risks, including economic changes and competition in the online video category[95]. - Vimeo serves millions of users, with videos on its platform receiving billions of views each month[96]. - Vimeo's management does not undertake to update forward-looking statements, which reflect their views as of the date of the communication[95].