By Angela Palumbo
Vimeo turned in mixed results, but new Chief Executive Philip Moyer has confidence in the video software management platform's growth as it focuses on artificial intelligence.
Vimeo reported fourth-quarter earnings of 1 cent a share, which was below Wall Street estimates of 3 cents a share and down from the 5 cents a share in the same period last year. However, revenue was $103.2 million, above the FactSet consensus call of $100.6 million, but still down from last year's $105.5 million.
Vimeo also said it expects current-quarter revenue to be near $100 million, while Wall Street expected $102.9 million.
"We have brought on pretty much a significantly new leadership team. That leadership team is very seasoned in driving growth across a number of companies, and as a result you're seeing some of the fruits of our labor here in Q4 that we've already started generating some great results, and we think that there's significantly more ahead," Moyer said in an interview with Barron's. He started as CEO of Vimeo in April.
Moyer is especially excited about the steps Vimeo has taken in AI and growth in the company's enterprise business, whose clients include Adidas and Datadog. Vimeo's enterprise revenue grew 37% in the fourth quarter.
"40% of our Vimeo enterprise deals -- the new deals that we did -- were as a result of the artificial intelligence that we've been launching," Moyer said. Some of Vimeo's AI capabilities include video transcriptions and translations in more than 28 languages.
Shares of Vimeo have soared about 80% over the last 12 months, but the stock is still down about 89% from the record closing high of $58 hit on May 20, 2021. Revenue increased from 2021 to 2022, but slipped in 2023, with a further slight decline in 2024.
Moyer said that there was a lot of decline in Vimeo's business, and the streaming market, post Covid, but the fact that that streaming business is now growing "is a really great indication that market is coming back and that Vimeo is increasingly becoming a choice among the streamers that want to move off of public platforms, like YouTube, to private platforms."
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 19, 2025 16:15 ET (21:15 GMT)
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