Vimeo shares fall as Q1 earnings miss estimates

Published 05/05/2025, 22:24
Vimeo shares fall as Q1 earnings miss estimates

Investing.com -- Vimeo Inc. (NASDAQ:VMEO) reported mixed first quarter results, with revenue slightly beating expectations but earnings falling short of analyst estimates. The video software company’s shares dropped 2.8% following the release.

Vimeo posted a loss of $0.02 per share for Q1, missing the consensus estimate for earnings of $0.03 per share. Revenue came in at $103.03 million, narrowly topping expectations of $102.93 million but declining 2% YoY.

The company highlighted some positive trends, including 6% YoY growth in Self-Serve bookings - the first increase in three years for that segment. Vimeo Enterprise revenue grew 32% YoY to $24 million. However, overall bookings growth of 3% failed to translate to revenue growth in the quarter.

"We are investing up to $30 million, primarily in R&D, so that we can continue to accelerate growth in future years," said CEO Philip Moyer. "We are increasingly confident that our investments are working."

For full-year 2025, Vimeo expects revenue growth in the low single digits and an operating loss of approximately $3 million. The company maintained its adjusted EBITDA guidance of $25-30 million.

While expressing caution about the economic environment, management reiterated its goal of accelerating growth in 2025 and hopes to end the year "with line of sight to double-digit growth in future quarters."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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