Vimeo’s second quarter was marked by a positive market reaction, as the company delivered a GAAP profit and significantly higher adjusted EBITDA than Wall Street anticipated, despite flat year-on-year revenue. Management attributed the quarter’s performance to renewed growth in bookings, especially in self-serve and enterprise segments, and improvements in customer retention. CEO Philip Moyer highlighted that strategic pricing changes and a focused push on new product features were key contributors to the quarter, stating, “Self-serve grew bookings by an impressive 11%, reaching levels last seen in 2021.”
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Vimeo (VMEO) Q2 CY2025 Highlights:
- Revenue: $104.7 million vs analyst estimates of $105.8 million (flat year on year, 1% miss)
- EPS (GAAP): $0.04 vs analyst estimates of -$0.01 (significant beat)
- Adjusted EBITDA: $10.91 million vs analyst estimates of $5.60 million (10.4% margin, 94.7% beat)
- EBITDA guidance for the full year is $35 million at the midpoint, above analyst estimates of $27.97 million
- Operating Margin: 3.6%, down from 7.1% in the same quarter last year
- Market Capitalization: $633 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vimeo’s Q2 Earnings Call
- Youssef Squali (Truist Securities) asked about the drivers of self-serve bookings and the timeline for subscriber growth stabilization. CEO Philip Moyer explained retention was improving and that new features, along with pricing changes, were supporting growth, but subscriber stabilization is likely a 2026 event.
- Squali (Truist Securities) also questioned the enterprise bookings slowdown due to a specific customer loss. CFO Gillian Munson detailed that the customer was primarily a bandwidth buyer and did not use the full platform, highlighting the need for better onboarding.
- Thomas Champion (Piper Sandler) inquired about the ability to return enterprise customer numbers to growth and the effects of macroeconomic and search landscape changes. Moyer replied that new customer wins continued and that pricing and packaging refinements, as well as value in regulated industries, were underway.
- Champion (Piper Sandler) asked about investment plans given higher EBITDA guidance. Munson noted that greater efficiency was enabling higher margins without reducing R&D ambition, and that consolidating products to a single code base was a key factor.
- William Kerr (TD Cowen) sought details on Agentic AI feature rollouts. Moyer described capabilities like natural language video search and content summarization, emphasizing potential applications in customer support and onboarding.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will track (1) the adoption and revenue impact of new AI-powered features across both self-serve and enterprise segments, (2) the rollout and customer response to Workspaces and other major product updates, and (3) the company’s ability to retain and expand key enterprise relationships amid competitive and macroeconomic pressures. Ongoing efficiency gains and the pace of product innovation will also be crucial markers of execution.
Vimeo currently trades at $3.83, in line with $3.84 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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