Vimeo, Inc. (NASDAQ:VMEO) Q1 2023 Earnings Call Transcript May 6, 2023
Operator: Good morning, and thank you for joining Vimeo’s Q1 earnings live Q&A. We’re excited to be here in front of you. Before we begin a few comments, first, this session will be recorded and available on the Vimeo Investor Relations site later today. Second, we will discuss Vimeo’s outlook and future performance. These forward-looking statements typically may be preceded by words such as we expect, we believe, we anticipate or other such statements. These forward-looking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. We’ve also provided information regarding certain key metrics and our non-GAAP financial measures, including certain forward-looking measures.
These should be considered in addition to and not as a substitute for or in isolation from GAAP measures. Additional information regarding Vimeo’s financial performance, including reconciliations with comparable GAAP measures can be found in our earnings release and Vimeo’s filings with the SEC as well as in supplemental information posted on the Investor Relations section of our website. With that, I’ll turn it over to our CEO, Anjali.
Anjali Sud: Hi, folks, and welcome to our live Q&A. Last night, we published an interactive video on our Q1 results and outlook. You check it out, there’s a lot of good info in there and even a fun quiz at the end to make sure we got the most important information across. I’m happy to say that we exited the first quarter largely on track to deliver our goals for 2023. Our first priority is to return the business to growth, and we believe that we’re on track to demonstrate bookings growth by the end of the year, both for the total business and for self-serve. On self-serve, we are cautiously optimistic. We believe we’re executing the right levers across our funnel, and we’re seeing a stabilization of macro trends post COVID that should help us further.
On Vimeo Enterprise, we’re excited by what we see. Bookings growth accelerated for the third consecutive quarter, and we believe we’re growing faster than the rest of the market as our product increasingly wins with enterprise customers. We think Vimeo Enterprise can become a very large business over time, and we have a clear path to get there. Our second priority is to get more efficient and more profitable. Here, we had a solid quarter, our third consecutive one of positive adjusted EBITDA and positive free cash flow. We have $268 million of cash on the balance sheet and the flexibility to adjust our investments based on what we see. Right now, we think patients is warranted and we’re patient. So the punchline for the quarter is really so far so good.
With that, let’s get into your questions.
Q&A Session
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Operator: Our first question will come from Brian Fitzgerald at Wells Fargo.
Operator: Our next question will come from Tom Champion of Piper Sandler.
Operator: Our next question will come from William Kerr at TD Cowen.
Operator: Our next question will come from Daniel Pfeiffer at JPMorgan.
Operator: Our next question comes from David Lustberg at Jefferies.
Operator: Our next question comes from Chris Yang [ph] at Truist.
Operator: With that, there are no further questions, and I will hand the call back over to Anjali.
Anjali Sud: I’ll wrap by saying that we’re exiting Q1 on track for our 2023 goals. We continue to believe that businesses will only adopt video more and that Vimeo has the best video product on the market for businesses, focused on simplification, focused on efficiency, and we’re focused on returning the company to growth. Thank you for your interest in Vimeo, and we look forward to updating you on our progress next quarter. Thanks.
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