Vimeo Reports Q3 2025 Revenue of $105.8M, Net Loss of $2.3M Amid Merger Plans

Vimeo, Inc. reported its financial results for the third quarter of 2025, revealing a revenue of $105.8 million, a slight increase of 1% from $104.6 million in the same period last year. For the nine months ending September 30, 2025, total revenue remained relatively flat at $313.4 million compared to $313.9 million in 2024. The company experienced a net loss of $2.3 million for the quarter, a significant decline from a net income of $9.3 million in the prior year. This downturn in profitability was attributed to increased operating expenses, which rose by 15% to $86.9 million, driven primarily by restructuring costs and transaction expenses related to a pending merger.

In terms of operational metrics, Vimeo's customer base showed mixed results. The number of subscribers in its Self-Serve segment decreased by 11% to approximately 1,128, while the Vimeo Enterprise segment saw a 10% increase in subscribers, reaching 4.2. Average Revenue Per User (ARPU) for Self-Serve increased by 13% to $204, indicating that while the customer count declined, the remaining customers were generating more revenue. The company also reported a total cash balance of $320.6 million as of September 30, 2025, down from $325.3 million at the end of 2024.

Strategically, Vimeo is in the process of merging with Bending Spoons US Inc. in an all-cash transaction valued at approximately $1.38 billion. The merger agreement, approved by Vimeo's board, stipulates that shareholders will receive $7.85 per share. The company incurred $5.9 million in transaction costs related to the merger during the quarter and anticipates further expenses as the merger progresses. If the merger does not close, Vimeo may be liable for a termination fee of $40.1 million.

The company has also undergone significant organizational changes, including a reduction-in-force that resulted in restructuring costs of $4.4 million for the quarter. This restructuring is part of Vimeo's efforts to streamline operations and reduce costs amid a challenging market environment. The total employee headcount has been impacted, reflecting the company's focus on efficiency and cost management.

Looking ahead, Vimeo's management expressed cautious optimism about future performance, emphasizing the importance of the merger in enhancing the company's competitive position. However, they acknowledged the risks associated with market conditions and the need for continued adaptation to changing customer demands. The company remains focused on leveraging its cash reserves to support operations and potential growth initiatives while navigating the complexities of the merger process.