Vimeo CEO Anjali Sud says video is proliferating into every aspect of business.
DreamstimeThe video-tools supplier Vimeo posted strong financial results for the first quarter, just weeks before the expected completion of the pending spinoff of the company by its majority owner, IAC.
IAC (ticker: IAC) holders will vote on the proposed transaction on May 14. Vimeo expects to list on Nasdaq on May 25 with the symbol VMEO. Trading on a when-issued basis is to begin on May 18.
IAC holders will receive 1.6235 Vimeo shares for each IAC share they own. Vimeo has about 159.1 million shares, including 139.8 million held by IAC that will be distributed to holders. After the deal, IAC will hold no Vimeo shares.
A holding company founded by the one-time movie mogul Barry Diller, IAC has spun off more than a dozen companies, including Expedia, Match.com, and Live Nation.
For the March quarter, Vimeo reported revenue of $89.4 million, up 57% from a year earlier. Gross margin expanded to 72%, from 68%. Vimeo had a net profit in the quarter of $3,.3 million, versus a year-earlier loss of $20.3 million. Adjusted earnings before taxes, interest, depreciation and amortization, or Ebitda, came in at $1.3 million, compared with a loss of $12 million a year earlier.
“We are witnessing the rapid proliferation of video into every aspect of business communication,” Vimeo CEO Anjali Sud said in a statement. “The past year has seen a clear acceleration of demand from organizations looking to leverage professional-quality video in their digital transformation.” She said the company had a record quarter, with faster revenue growth, wider gross margins, and improved profitability.
Enterprise revenue increased more than 100% for the third consecutive quarter. Vimeo said it won new or expanded business in the quarter from SoftBank, Spotify, Amazon.com, SAP, Comcast, and the New York Times, among others.
Vimeo also said it had revenue growth of 46% in April, with 21% growth in subscribers and a 19% increase in average revenue per user. Those figures represent a slowdown relative to the past few months, a reflection of the fact that the year-ago figures were boosted by demand linked to the spread of the Covid-19 pandemic.
IAC provides monthly financial updates on all of its primary portfolio holdings, but it isn’t clear whether Vimeo will continue to disclose the numbers after it becomes an independent company.
Vimeo raised $300 million in January 2021 in two tranches: $200 million at a $5.2 billion valuation and $100 million at a $5.7 billion valuation. That followed a $150 million equity raising in November 2020. Vimeo also has an untouched $100 million revolving credit facility..
IAC shares have surged more than 75% since the company announced plans to spin off Vimeo last fall. Vimeo is a fast-growing cloud-based software provider, so expectations are that it will receive a substantial valuation in the public market.
Cowen analyst John Blackledge estimated in a recent research note that Vimeo could be worth as much as $10.8 billion, projecting that the company can grow revenues at a 32% annual rate through 2026. That suggests that Vimeo currently accounts for half or more of IAC’s $21 billion valuation.
IAC will report March quarter earnings on Thursday. On Wednesday afternoon, the stock was down 2.4%, to $234.129.
Write to Eric J. Savitz at eric.savitz@barrons.com
"company" - Google News
May 06, 2021 at 03:05AM
https://ift.tt/33ptMVT
Vimeo Is Poised to Be a Public Company. Revenue Is Up 57%. - Barron's
"company" - Google News
https://ift.tt/33ZInFA
https://ift.tt/3fk35XJ
Bagikan Berita Ini
0 Response to "Vimeo Is Poised to Be a Public Company. Revenue Is Up 57%. - Barron's"
Post a Comment