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Jun 30, 2023
Vimeo Q2 2023 Earnings Report
Vimeo made progress by simplifying operations, improving go-to-market and product experiences, and launching innovative features, leading to improved net income, positive operating cash flow, and positive Free Cash Flow (FCF).
Key Takeaways
Vimeo reported a revenue of $101.835 million, a net income of $5.9 million, and positive progress in strategic priorities including simplifying Vimeo, returning to growth, and increasing efficiency.
Bookings decline rate slowed down, and excluding 'Other', Vimeo bookings grew 2% year-over-year.
Enterprise bookings increased by 72% and surpassed 'Other' as a percentage of total bookings.
Self-Serve retention was stable, and Vimeo Enterprise Net Revenue Retention (NRR) exceeded 100%.
Innovation investments resulted in the release of an AI-powered video creation suite.
Revenue by Segment
Forward Guidance
For Q3 2023, Vimeo expects revenue to be slightly above $100 million and Adjusted EBITDA to be near $2 million. For full year 2023, they are reaffirming a mid-single digit percent decline in revenue and updating Adjusted EBITDA expectations to range from $10 to $15 million.
Positive Outlook
- Continued progress in Q2 gives us confidence in our ability to execute against our goals of returning to bookings growth by year end while driving non-GAAP profitability.
- Revenue to be slightly above $100 million for third quarter 2023
- Updating GAAP operating loss expectations to now range from $19 to $14 million for full year 2023.
- Updating Adjusted EBITDA* expectations to now range from $10 to $15 million for full year 2023.
- Returning to bookings growth by year end while driving non-GAAP profitability.
Challenges Ahead
- Bookings precedes revenue, so a return to revenue growth would lag a return to bookings growth.
- GAAP operating loss to be approximately $8 million for third quarter 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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