Vimeo Reports Q2 2022 Financial Results

August 3, 2022

Q2 2022 Revenue increases 16% to $111 million

NEW YORK, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Vimeo, Inc. (NASDAQ: VMEO) (“Vimeo”) released its results for the second quarter ended June 30, 2022 today. 

“We continue to see the largest companies in the world embracing video,” said Anjali Sud, Chief Executive Officer of Vimeo. “We now have over 9,000 customers sold via our salesforce, representing 35% of our Q2 revenue, and are seeing new products like our recently launched interactive video capabilities gain adoption with companies from Estee Lauder to Splunk. We are executing several important strategic changes to the business as we look to respond with speed and agility to a challenging environment. We have plenty to do and prove, but believe we have all the ingredients to come out of this period with the best product and team in the market, and a clear path to becoming a fast growing and profitable business."

VIMEO, INC. SUMMARY RESULTS

($ in millions except per share amounts)

  Q2 2022   Q2 2021
Revenue $ 111.0     $ 96.0  
Gross profit   84.1       70.3  
Gross profit margin   76 %     73 %
Operating income (loss)   (27.3 )     (20.3 )
Net income (loss)   (26.5 )     (20.4 )
Diluted EPS   (0.16 )     (0.13 )
Adjusted EBITDA   (6.4 )     (3.8 )

See reconciliations of GAAP to non-GAAP measures beginning on page 7.

Q2 2022 FINANCIAL HIGHLIGHTS

  • Revenue increased 16% year-over-year driven by a 3% increase in Subscribers and 10% growth in ARPU. Sales-Assisted Revenue grew 45% year-over-year.
  • Gross Profit: GAAP gross profit was $84.1 million, compared to GAAP gross profit of $70.3 million in the second quarter of 2021. Gross profit grew 20% year-over-year.
  • Operating Loss: GAAP operating loss was $27.3 million, compared to GAAP operating loss of $20.3 million in the second quarter of 2021.
  • Adjusted EBITDA: Adjusted EBITDA loss was $6.4 million, compared to Adjusted EBITDA loss of $3.8 million in the second quarter of 2021.
  • Cash: Vimeo ended the quarter with $268.1 million in cash and cash equivalents.

RECENT BUSINESS HIGHLIGHTS

  • Vimeo now has approximately 1.7 million Subscribers, with more than 9,000 paying Sales-Assisted Customers.
  • Launched new interactive video capabilities to enable anyone to easily create highly engaging, dynamic and shoppable content in a few clicks. These capabilities are fully integrated within the Vimeo platform’s suite of workplace tools and have been adopted across use-cases ranging from eCommerce to training to learning & development.
  • Expanded Sales-Assisted Customer base with customer wins including Estee Lauder, the City of Los Angeles, Splunk, Canva, ServiceNow, Fujifilm and the University of Pennsylvania.
  • Appointed Lynn Girotto as Chief Marketing Officer and Ashraf Alkarmi as Chief Product Officer.

FINANCIAL OUTLOOK

For the third quarter of 2022, Vimeo expects:

  • Revenue growth to exceed 5% year-over-year, GAAP operating loss between $29 million and $31 million, and Adjusted EBITDA loss between $3 million and $5 million.

For full-year 2022, Vimeo expects:

  • Revenue growth near 10% year-over-year, GAAP operating loss between $107 million and $112 million, and Adjusted EBITDA loss between $20 million and $25 million.

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. 

VIDEO CONFERENCE CALL

Vimeo will live stream a video conference to answer questions regarding its second quarter results on Thursday, August 4, 2022, at 8:30 a.m. Eastern Time. This live stream will include the disclosure of certain information, including forward-looking information, which may be material to an investor’s understanding of Vimeo’s business. The live stream will be open to the public at https://www.vimeo.com/investors.

DILUTIVE SECURITIES

Vimeo has various dilutive securities. The table below details these securities as well as estimated dilution at various stock prices (shares in millions; rounding differences may occur).

    Shares     Avg.
Exercise
Price
  As of
7/29/2022
Dilution at:
                       
Share Price             $ 5.56   $ 6.00   $ 8.00   $ 10.00   $ 12.00  
                       
Common Stock Outstanding as of 7/29/2022   166.4           166.4     166.4     166.4     166.4     166.4  
                       
SARs and Stock Options   16.4     $ 5.83       0.7     1.0     3.6     5.4     6.6  
RSUs   11.5           9.8     9.8     9.8     9.8     9.8  
Total Estimated Dilution               10.5     10.8     13.4     15.2     16.4  
% Dilution               6.3 %   6.5 %   8.0 %   9.1 %   9.8 %
Total Estimated Diluted Shares Outstanding               176.9     177.2     179.8     181.6     182.8  

The dilutive securities presentation is calculated using the methods and assumptions described below, which are different than those prescribed by GAAP.

The Company currently settles all equity awards on a gross basis; therefore, the estimated dilutive effect is calculated as the number of shares expected to be issued upon vesting or exercise, adjusted for (i) the estimated income tax benefit from the tax deduction received upon the vesting or exercise of awards held in the U.S., as such tax benefit is assumed to be used to repurchase shares of Vimeo common stock and (ii) in the case of stock options, the strike price proceeds that are received by the Company and assumed to be used to repurchase shares of Vimeo common stock. The number of shares required to settle stock appreciation rights will be impacted by movement in the stock price of Vimeo.

 

 

GAAP FINANCIAL STATEMENTS
VIMEO, INC. CONSOLIDATED STATEMENT OF OPERATIONS            
($ in thousands except per share data)              
               
  Three Months Ended June 30,   Six Months Ended June 30,
    2022       2021       2022       2021  
Revenue $ 110,977     $ 96,046     $ 219,331     $ 185,468  
Cost of revenue (exclusive of depreciation shown separately below)   26,878       25,771       53,634       50,727  
Gross profit   84,099       70,275       165,697       134,741  
Operating expenses:              
Research and development expense   35,728       27,062       70,146       48,538  
Sales and marketing expense   43,080       40,248       86,236       72,317  
General and administrative expense   29,710       21,508       58,322       36,026  
Depreciation   1,537       186       1,913       300  
Amortization of intangibles   1,341       1,583       2,632       3,471  
Total operating expenses   111,396       90,587       219,249       160,652  
Operating loss   (27,297 )     (20,312 )     (53,552 )     (25,911 )
Interest expense   (122 )     (122 )     (243 )     (186 )
Interest expense–related party                     (726 )
Other income, net   1,172       142       1,513       10,229  
Loss before income taxes   (26,247 )     (20,292 )     (52,282 )     (16,594 )
Income tax provision   (255 )     (100 )     (778 )     (485 )
Net loss $ (26,502 )   $ (20,392 )   $ (53,060 )   $ (17,079 )
               
Per share information:              
Basic loss per share $ (0.16 )   $ (0.13 )   $ (0.33 )   $ (0.11 )
Diluted loss per share $ (0.16 )   $ (0.13 )   $ (0.33 )   $ (0.11 )
Weighted average shares outstanding used in the computation of net loss per share(a):        
Basic   161,455       159,418       161,384       159,399  
Diluted   161,455       159,418       161,384       159,399  
               
               
Stock-based compensation expense by function:              
Cost of revenue $ 237     $ 169     $ 401     $ 189  
Research and development expense   6,722       5,748       11,421       7,468  
Sales and marketing expense   2,443       1,498       3,375       1,820  
General and administrative expense   9,270       7,280       17,668       10,130  
Total stock-based compensation expense $ 18,672     $ 14,695     $ 32,865     $ 19,607  

(a) Approximately 4.9 million common shares outstanding have been excluded from the computation of shares outstanding for EPS purposes because they are subject to satisfaction of certain vesting conditions, the details of which can be found in our filings with the SEC. For additional information on the separation, see our Annual Report on Form 10-K filed with the SEC on March 1, 2022.

 

 

VIMEO, INC. CONSOLIDATED BALANCE SHEET      
($ in thousands)      
  June 30,
2022
  December 31,
2021
ASSETS      
Cash and cash equivalents $ 268,078     $ 321,900  
Accounts receivable, net   39,986       29,451  
Prepaid expenses and other current assets   19,715       18,811  
Total current assets   327,779       370,162  
       
Leasehold improvements and equipment, net   1,497       2,868  
Goodwill   245,406       242,586  
Intangible assets with definite lives, net   7,936       11,008  
Other non-current assets   16,428       22,737  
TOTAL ASSETS $ 599,046     $ 649,361  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
LIABILITIES:      
Accounts payable, trade $ 3,364     $ 17,501  
Deferred revenue   176,918       173,167  
Accrued expenses and other current liabilities   62,857       67,385  
Total current liabilities   243,139       258,053  
       
Other long-term liabilities   6,478       20,713  
       
Commitments and contingencies      
       
SHAREHOLDERS' EQUITY:      
Common stock   1,570       1,567  
Class B common stock   94       94  
Preferred stock          
Additional paid-in-capital   737,239       704,796  
Accumulated deficit   (388,836 )     (335,776 )
Accumulated other comprehensive loss   (638 )     (86 )
Total shareholders' equity   349,429       370,595  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 599,046     $ 649,361  



 

VIMEO, INC. CONSOLIDATED STATEMENT OF CASH FLOWS            
($ in thousands)              
  Three Months Ended June 30,   Six Months Ended June 30,
    2022       2021       2022       2021  
Cash flows from operating activities:              
Net loss $ (26,502 )   $ (20,392 )   $ (53,060 )   $ (17,079 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:        
Stock-based compensation expense   18,672       14,695       32,865       19,607  
Amortization of intangibles   1,341       1,583       2,632       3,471  
Depreciation   1,537       186       1,913       300  
Provision for credit losses   3,892       198       7,015       280  
Gain on the sale of an asset                     (10,217 )
Non-cash lease expense   1,650       655       3,421       825  
Other adjustments, net   (735 )     309       (719 )     540  
Changes in assets and liabilities:
Accounts receivable   (9,539 )     (2,970 )     (18,225 )     (5,248 )
Prepaid expenses and other assets   (3,208 )     (4,926 )     (2,870 )     (6,925 )
Accounts payable and other liabilities   (14,620 )     10,545       (26,127 )     3,026  
Deferred revenue   5,555       18,290       4,445       29,571  
Net cash (used in) provided by operating activities   (21,957 )     18,173       (48,710 )     18,151  
Cash flows from investing activities:              
Acquisitions, net of cash acquired               21        
Capital expenditures   (115 )     (80 )     (630 )     (215 )
Proceeds from the sale of an asset               1,611       7,768  
Net cash (used in) provided by investing activities   (115 )     (80 )     1,002       7,553  
Cash flows from financing activities:              
Proceeds from sale of common stock, net of fees                     299,750  
Principal payments on related-party debt                     (94,565 )
Deferred financing costs                     (1,440 )
Withholding taxes paid related to equity awards   11       (3,448 )     (5,126 )     (8,181 )
Proceeds from exercise of stock options         4       18       4  
Other   (621 )           (621 )      
Net cash (used in) provided by financing activities   (610 )     (3,444 )     (5,729 )     195,568  
Total cash (used) provided   (22,682 )     14,649       (53,437 )     221,272  
Effect of exchange rate changes on cash and cash equivalents and restricted cash   (363 )     75       (488 )     (57 )
Net (decrease) increase in cash and cash equivalents and restricted cash   (23,045 )     14,724       (53,925 )     221,215  
Cash and cash equivalents and restricted cash at beginning of period   291,465       316,528       322,345       110,037  
Cash and cash equivalents and restricted cash at end of period $ 268,420     $ 331,252     $ 268,420     $ 331,252  




 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

($ in millions; rounding differences may occur)

  Three Months Ended June 30,   Six Months Ended June 30,
    2022       2021       2022       2021  
Reconciliation of non-GAAP gross profit:              
GAAP Gross profit $ 84.1     $ 70.3     $ 165.7     $ 134.7  
% of Revenue   76 %     73 %     76 %     73 %
Add back: Stock-based compensation expense   0.2       0.2       0.4       0.2  
Non-GAAP Gross Profit $ 84.3     $ 70.4     $ 166.1     $ 134.9  
% of Revenue   76 %     73 %     76 %     73 %
               
Reconciliation of non-GAAP operating expenses:              
GAAP Research and development expense $ 35.7     $ 27.1     $ 70.1     $ 48.5  
% of Revenue   32 %     28 %     32 %     26 %
Less: Stock-based compensation expense   6.7       5.7       11.4       7.5  
Non-GAAP Research and development expense $ 29.0     $ 21.3     $ 58.7     $ 41.1  
% of Revenue   26 %     22 %     27 %     22 %
               
GAAP Sales and marketing expense $ 43.1     $ 40.2     $ 86.2     $ 72.3  
% of Revenue   39 %     42 %     39 %     39 %
Less: Stock-based compensation expense   2.4       1.5       3.4       1.8  
Non-GAAP Sales and marketing expense $ 40.6     $ 38.7     $ 82.9     $ 70.5  
% of Revenue   37 %     40 %     38 %     38 %
               
GAAP General and administrative expense $ 29.7     $ 21.5     $ 58.3     $ 36.0  
% of Revenue   27 %     22 %     27 %     19 %
Less: Stock-based compensation expense   9.3       7.3       17.7       10.1  
Non-GAAP General and administrative expense $ 20.4     $ 14.2     $ 40.7     $ 25.9  
% of Revenue   18 %     15 %     19 %     14 %
               
Reconciliation of net loss to Adjusted EBITDA:              
Net loss $ (26.5 )   $ (20.4 )   $ (53.1 )   $ (17.1 )
Add back:              
Income tax provision   0.3       0.1       0.8       0.5  
Other income, net   (1.2 )     (0.1 )     (1.5 )     (10.2 )
Interest expense–related party                     0.7  
Interest expense   0.1       0.1       0.2       0.2  
Operating loss   (27.3 )     (20.3 )     (53.6 )     (25.9 )
% of Revenue   (25 )%     (21 )%     (24 )%     (14 )%
Add back:              
Stock-based compensation expense   18.7       14.7       32.9       19.6  
Depreciation   1.5       0.2       1.9       0.3  
Amortization of intangibles   1.3       1.6       2.6       3.5  
Contingent consideration   (0.7 )           (0.7 )      
Adjusted EBITDA $ (6.4 )   $ (3.8 )   $ (16.8 )   $ (2.5 )
% of Revenue   (6 )%     (4 )%     (8 )%     (1 )%

 

 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

($ in millions except per share data; shares in thousands; rounding differences may occur)

  Three Months Ended June 30,   Six Months Ended June 30,
    2022       2021       2022       2021  
Reconciliation of Net loss to Adjusted Net (Loss) Income:        
Net loss $ (26.5 )   $ (20.4 )   $ (53.1 )   $ (17.1 )
% of Revenue   (24 )%     (21 )%     (24 )%     (9 )%
Add back:              
Stock-based compensation expense   18.7       14.7       32.9       19.6  
Depreciation   1.5       0.2       1.9       0.3  
Amortization of intangibles   1.3       1.6       2.6       3.5  
Contingent consideration   (0.7 )           (0.7 )      
Income tax effects related to non-GAAP adjustments                      
Adjusted Net (Loss) Income $ (5.6 )   $ (3.9 )   $ (16.3 )   $ 6.3  
% of Revenue   (5 )%     (4 )%     (7 )%     3 %
               
Reconciliation of diluted loss per share to Adjusted EPS:        
Diluted loss per share $ (0.16 )   $ (0.13 )   $ (0.33 )   $ (0.11 )
Add back:              
Stock-based compensation expense   0.12       0.09       0.20       0.12  
Depreciation   0.01             0.01        
Amortization of intangibles   0.01       0.01       0.02       0.02  
Contingent consideration                      
Income tax effects related to non-GAAP adjustments                      
Adjusted EPS $ (0.03 )   $ (0.02 )   $ (0.10 )   $ 0.04  
Weighted average diluted shares   161,455       159,418       161,384       159,399  
               
Computation of Free Cash Flow:              
Net cash (used in) provided by operating activities $ (22.0 )   $ 18.2     $ (48.7 )   $ 18.2  
Less: Capital expenditures   (0.1 )     (0.1 )     (0.6 )     (0.2 )
Free Cash Flow $ (22.1 )   $ 18.1     $ (49.3 )   $ 17.9  


 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL OUTLOOK

($ in millions; rounding differences may occur)

  Three Months Ended
September 30, 2022
  Twelve Months Ended
December 31, 2022
Operating loss to Adjusted EBITDA range:              
Operating loss $ (28.8 ) $ (30.8 )   $ (106.7 ) $ (111.7 )
Add back:              
Stock-based compensation expense   20.5       20.5       75.4       75.4  
Depreciation   0.1       0.1       2.2       2.2  
Amortization of intangibles   1.2       1.2       5.1       5.1  
Restructuring costs   4.0       4.0       4.0       4.0  
Adjusted EBITDA $ (3.0 ) $ (5.0 )   $ (20.0 ) $ (25.0 )

 

PRINCIPLES OF FINANCIAL REPORTING

We have provided in this press release certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP gross profit, non-GAAP operating expenses, Adjusted net income (loss), Adjusted EPS and free cash flow, to supplement our financial information presented in accordance with GAAP. We use these non-GAAP financial measures internally in analyzing our financial results and believe that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. However, our presentation of these non-GAAP financial measures may differ from the presentation of similarly titled measures by other companies. Adjusted EBITDA is the metric on which our internal budgets are based and also the metric by which management is compensated. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. We endeavor to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measure. We encourage investors to examine the reconciling adjustments between the GAAP and corresponding non-GAAP measure.

From time to time, we provide forward-looking outlook information, including for Adjusted EBITDA and free cash flow. Adjusted EBITDA and free cash flow used in our outlook will differ from net earnings (loss) and operating income (loss), and net cash provided by operating activities, respectively, in ways similar to the reconciliations provided above and the definitions of Adjusted EBITDA and free cash flow provided below.

Definitions of Non-GAAP Measures

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as operating loss excluding: (1) stock-based compensation expense; (2) depreciation; (3) acquisition-related items consisting of (i) amortization of intangible assets, (ii) impairments of goodwill and intangible assets, if applicable, and (iii) gains and losses recognized on changes in the fair value of contingent consideration arrangements; and (4) restructuring costs associated with exit or disposal activities such as a reduction in force. We believe this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Stock-based compensation, depreciation, and acquisition-related items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and in the case of restructuring costs, are non-recurring. The above items are collectively referred to as "Adjusted EBITDA Non-GAAP Adjustments." Adjusted EBITDA has certain limitations because it excludes the impact of these expenses.

Non-GAAP gross profit excludes stock-based compensation expense included in Cost of revenue.

Non-GAAP operating expenses include Non-GAAP Research and development expense, Non-GAAP Sales and marketing expense, and Non-GAAP General and administrative expense. These Non-GAAP operating expenses exclude Adjusted EBITDA Non-GAAP Adjustments in their respective expense items.

Adjusted Net Income (Loss) and Adjusted EPS exclude the Adjusted EBITDA Non-GAAP Adjustments, as well as the related income tax effects. Adjusted EPS is calculated by dividing Adjusted Net Income (Loss) by the Diluted weighted average shares outstanding used in the computation of net earnings (loss) per share.

Free Cash Flow is defined as net cash used in, or provided by, operating activities less cash used for capital expenditures, contingent consideration arrangements and restructuring costs. We believe Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash.

Items That Are Excluded From Non-GAAP Measures

Stock-based compensation expense consists of expense associated with the grants of Vimeo stock-based awards. These expenses are not paid in cash and we view the economic costs of stock-based awards to be the dilution to our share base. We also consider the dilutive impact of stock-based awards in GAAP diluted earnings per share, to the extent such impact is dilutive. Stock-based awards are generally settled on a gross basis in shares of Vimeo common stock such that individual award holders will pay their withholding tax obligation, generally by selling shares of Vimeo common stock (including a portion of the shares received in connection with the applicable exercise).

Depreciation is a non-cash expense relating to our leasehold improvements and equipment and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives, or, in the case of leasehold improvements, the lease term, if shorter.

Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses related to acquisitions. At the time of an acquisition, the identifiable definite-lived intangible assets of the acquired company, such as customer relationships, technology and trade names, are valued and amortized over their estimated lives. An impairment is recorded when the carrying value of an intangible asset or goodwill exceeds its fair value. We believe that intangible assets represent costs incurred by the acquired company to build value prior to acquisition and the related amortization and impairments of intangible assets or goodwill, if applicable, are not ongoing costs of doing business.

Gains and losses recognized on changes in the fair value of contingent consideration arrangements are accounting adjustments to report contingent consideration liabilities at fair value. These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance or the ongoing cost of doing business.

Restructuring Costs consist of costs associated with exit or disposal activities such as severance and other post-employment benefits paid in connection with a reduction in force. We consider these costs to be non-recurring in nature and therefore, are not indicative of current or future performance or the ongoing cost of doing business.

Metric Definitions

Gross Margin – Revenue less cost of revenue, divided by revenue.

Subscribers – The number of users who have an active subscription to one of Vimeo’s paid plans measured at the end of the relevant period. Vimeo counts each account with a subscription plan as a Subscriber. In the case of Sales-Assisted Customers who maintain multiple accounts across Vimeo’s platforms as part of a single Sales-Assisted subscription plan, Vimeo counts only one Subscriber. Vimeo does not count team members who have access to a Subscriber’s account as additional Subscribers.

Average Subscribers – The sum of the number of Subscribers at the beginning and at the end of the relevant measurement period divided by two.

Average Revenue per User (“ARPU”) – The annualized revenue for the relevant period divided by Average Subscribers. For periods that are less than a full year, annualized revenue is calculated by dividing the revenue for that particular period by the number of calendar days in the period and multiplying this value by the number of days in that year.

Sales-Assisted Customers – Subscribers who purchase plans through contact with our sales force.

OTHER INFORMATION

Cautionary Statement Regarding Forward-Looking Information

This press release and the Vimeo livestream which will be held at 8:30 a.m. Eastern Time on August 4, 2022, contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "will," "may," "could," "should," "would," "anticipates," "estimates," "expects," "plans," "projects," "forecasts," "intends," "targets," "seeks" and "believes," as well as variations of these words or comparable words, among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to Vimeo's expectations regarding future results of operations and financial condition, business strategy, and plans and objectives of management for future operations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions. Actual results could differ materially from those contained in or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: adverse changes in economic conditions, changes in the regulatory landscape, including, in particular, changes in laws that might increase the liability of online intermediaries for user-generated content, reputational damage caused by problematic user content or our decisions to remove (or not remove) it; changes in policies implemented by third party platforms upon which we rely for traffic and distribution of mobile apps, increased competition in the online video category, our ability to convert visitors into uploaders and uploaders into paying subscribers, our ability to retain paying subscribers by maintaining and improving our value proposition, our ability to provide video storage and streaming in a cost-effective manner, our ability to successfully attract sales-assisted customers, our ability to protect sensitive data from unauthorized access, the integrity, quality, scalability and redundancy of our systems, technology and infrastructure (and those of third parties with which we do business), our ability to successfully operate in and expand into additional international markets, our ability to adequately protect our intellectual property rights and not infringe the intellectual property rights of third parties, foreign exchange currency rate fluctuations, the impact of the COVID-19 pandemic and geopolitical events on our business, the possibility that our historical consolidated and combined results may not be indicative of our future results and the other factors set forth in the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission ("SEC") on March 1, 2022 as they may be updated by our periodic reports subsequently filed with the SEC. Other unknown or unpredictable factors that could also adversely affect Vimeo’s business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of Vimeo’s management as of the date of this communication. Vimeo does not undertake to update these forward-looking statements.

About Vimeo

Vimeo is the world's leading all-in-one video software solution. Our platform enables any professional, team, and organization to unlock the power of video to create, collaborate and communicate. We proudly serve our growing community of over 230 million users — from creatives to entrepreneurs to the world's largest companies. Learn more at www.vimeo.com.

Contact Us

Vimeo IR
Ankit Hira or Ed Yuen
Solebury Trout for Vimeo, Inc.
ir@vimeo.com

Vimeo Communications
Matt Anchin
pr@vimeo.com