Gillian Munson: So let me start with the macro. Not much has changed for us in terms of how we see the macro. And I think the bottom line with us on macro is there are certainly some headwinds out there, but we really believe that Vimeo owns its own destiny and that a lot of what we have to do is very Vimeo-specific. We see a lot of opportunity out there for Vimeo, and it’s our job to go capture that. Macro is not really a thing that really impacts us too much. That said, in the SMB space, we have seen some headwinds. We talked about that last quarter. And they are still there in part. But really, again, Vimeo’s opportunity is very large and is very Vimeo-centric. In terms of Philip’s plans, we’ve given him, what, three weeks to be here.
And so those plans are still coming. We’ll have a lot more information about what we might want to be doing on the next quarterly call and as we make our way through the year. But I think the really important thing to think about with this is that sort of two years in from going from EBITDA losses to $12 million of EBITDA, we have really done some foundational work at Vimeo that’s probably a little lost in the story, right? There’s a lot that’s been going on to put us in a really, really strong position to now have Philip here and be able to go after some of those growth opportunities from here forward. And I think that’s really the key thing that we’re trying to relay, that we feel really strong about where we are. And then now that gives us the opportunity to drop incremental EBITDA dollars into the business as they emerge to invest.
Also very important to remember in our EBITDA guide is that flat EBITDA includes roughly $5 million of incremental cash expense that we are incurring as we’ve replaced cash with equity in 2024 to limit dilution.
Tom Champion: Great. Thank you.
Operator: Our next question comes from Will Kerr at TD Cowen. Will?
Will Kerr: Great. Thanks for the questions. Two, if I can. So the enterprise business, the customer count was higher than expected. What were some of the key drivers there for customer additions in 1Q? And then on capital allocation, you mentioned in the letter that we could potentially see some share repurchases. Can you just talk about the strategy there, when we might see that and maybe sort of levels that we should keep in mind as we look at that? Thank you.
Gillian Munson: So let me cover two, and if Philip has any additional color he wants to add on the enterprise side, that would be great. So on VE, it continues to be the same story of customers realizing that they need to get their video in and a better platform and consolidating that onto a place like Vimeo, that our product portfolio is really strong and that we can help them really manage their video at an enterprise level. On the capital allocation, yes, we did indicate in the letter that we want to start buying back some stock. Largely, that’s going to be surrounded around lowering dilution from share equity grants to employees over the course of the year.
Philip Moyer: Yes. I would add just a couple of things. The enterprise business, as I mentioned, I am so excited about that business. Over the past year plus, I’ve been able to spend a lot of time with companies as they are looking at different applications of artificial intelligence in video. And it is really clear that the use of video in marketing, you get something like 60% higher take-up of a product if you have video, and marketing organizations all over the world are trying to add more and more video to their product portfolio. Internal communications. You get 91% better efficacy in content than reading. And so organizations are adding video to all their internal communications. And what — the reality is with a lot of these organizations, there’s just nothing inside of these big organizations to manage video at scale.
And so we’re seeing a lot of large organizations. We couldn’t be more proud of the logos that we put on this year. And these are big companies. Some of the biggest companies in the world, in the healthcare industry, in the financial services industry, in the retail industry are now starting to consolidate video on top of Vimeo. And so you’ll hear more and more about that as the year goes on.
Will Kerr: Great. Thank you.
Operator: With that, there are no further questions. I’ll hand the call back to Gillian.
Gillian Munson: Thank you for joining our 2024 Q1 live Q&A. We look forward to updating you again next quarter. Have a good day.
