Vimeo Reports $417M Revenue with Increased Profitability and Focus on Enterprise Solutions

Vimeo, Inc. reported a total revenue of $417 million for the fiscal year ending December 31, 2024, a slight decrease from $417.2 million in the previous year. The company's revenue was primarily driven by its software-as-a-service (SaaS) subscription model, which includes offerings such as Self-Serve & Add-Ons, Vimeo Enterprise, and other services. Notably, revenue from Vimeo Enterprise surged by 47% to $83.2 million, while revenue from Self-Serve & Add-Ons declined by 5% to $271.7 million. The overall flat revenue performance was attributed to a decrease in bookings from Self-Serve & Add-Ons and Other services, which was partially offset by the growth in Vimeo Enterprise.

In terms of profitability, Vimeo achieved a net income of $27 million, or $0.16 per share, compared to $22 million, or $0.13 per share, in the prior year. The increase in net earnings was supported by a reduction in total operating expenses, which fell by 2% to $307.6 million. This decrease was primarily due to a significant reduction in sales and marketing expenses, which dropped by 21% as the company shifted its focus to more organic customer acquisition strategies. Additionally, general and administrative expenses rose by 56%, largely due to increased stock-based compensation related to executive turnover.

Vimeo's user base saw a decline in the number of subscribers, with total subscribers dropping to approximately 1.3 million, down from 1.4 million in 2023. The average revenue per user (ARPU) increased by 5% to $208, indicating that while the number of subscribers decreased, the company was able to extract more revenue from its existing customer base. The company also reported a total of 1,102 employees as of December 31, 2024, with a significant portion of its workforce engaged in product and engineering roles.

Strategically, Vimeo has focused on enhancing its product offerings, particularly through the integration of artificial intelligence (AI) technologies to improve video creation and editing capabilities. The company has also been active in share repurchase programs, having repurchased approximately 5.9 million shares at an average cost of $4.50 per share during the year. Looking ahead, Vimeo anticipates continued investment in product development and innovation, with expectations of increased operating expenses in 2025 as it seeks to drive growth and improve its competitive position in the video distribution market.

Overall, while Vimeo faced challenges in subscriber growth and revenue from certain segments, its strategic focus on enterprise solutions and product innovation, coupled with improved profitability metrics, positions the company for potential future growth in a competitive landscape.