By Emily Bary
Vimeo Inc. met revenue expectations but posted a wider loss than expected in its first earnings report since the company was spun out of IAC/InterActiveCorp. in May.
The video-hosting company, which makes software for storing, editing and creating videos, posted a second-quarter net loss of $20.4 million, or 13 cents a share, compared with a loss of $14.8 million, or 9 cents a share, a year prior. The FactSet consensus was for a 5-cent loss per share. Shares were stable in after-hours trading Thursday immediately following release of the results.
Vimeo’s /zigman2/quotes/226848462/composite VMEO -1.35% revenue grew to $96 million from $67.3 million and matched the FactSet consensus. The company saw a 17% increase in subscribers and an 18% rise in average revenue per user. Enterprise revenue increased by more than 80% in the quarter.
“In the second quarter we gained momentum in the enterprise with expanded product breadth, as we enhanced our all-in-one software solution to enable every employee to be a content creator and every business to be video-first,” Chief Executive Anjali Sud said in the earnings release.
Vimeo CEO says momentum can continue past pandemic: ‘We’re looking to create a market that was never there’
The company recently launched new features, such as a content hub for employees to view videos that are automatically captioned and transcribed so that they can search for the information they need. Vimeo also pointed to new partnerships and native integrations with TikTok and Asana.
For the month of July, Vimeo expects that revenue grew 35%, with subscribers up 16% and average revenue per user up 16%.
IAC /zigman2/quotes/205118493/composite IAC +0.30% completed the separation of Vimeo on May 25. Shares have fallen 9.4% over the past month as the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.25% has risen 1.6%.