Vimeo (VMEO) Q1 2025 earnings summary

Executive summary

• Q1 2025 began with solid momentum, but revenue was $103.0 million, down 2% year-over-year, and a net loss of $3.9 million compared to net income of $6.1 million in Q1 2024.

• Self-service bookings grew 6% year-over-year, reversing a prior decline, while enterprise revenue increased 32% year-over-year with bookings up 13%.

• Gross margin was 77%, slightly down from 78% in the prior year period, and adjusted EBITDA was $4.8 million, a 61% decrease from Q1 2024.

• Investments are being made in innovation, including new streaming, AI, and platform features, with operating expenses up 8% year-over-year.

• Leadership and board transitions were announced, with new board nominees pending shareholder approval.

Financial highlights

• Self-service bookings up 6% year-over-year, a 16-point improvement from Q2 2023's -10%.

• Enterprise revenue up 32% and bookings up 13% year-over-year; quarterly enterprise revenue more than doubled compared to two years ago.

• Revenue declined $1.9 million, mainly due to a 5% drop in Self-Serve, 21% in Add-Ons, and 52% in Other, partially offset by enterprise growth.

• EBITDA guidance for 2025 is $25–$30 million, with up to $30 million in planned investments.

• Cash and cash equivalents totaled $289.0 million at quarter end, with no debt.

Outlook and guidance

• Committed to profitable growth for full-year 2025 despite macroeconomic uncertainty, with continued product investment expected to increase operating expenses.

• Expect continued self-service bookings growth if current churn and retention trends persist.

• Enterprise business maintains aggressive growth goals, with focus shifting more to revenue than bookings.

• Investment spending to remain responsible, not expected to exceed $30 million.

• Management believes existing cash and expected positive cash flows will fund operations and capital needs for at least the next twelve months.