What drove VMEO's earnings beat in 2024?

Vimeo Inc.'s (VMEO) earnings beat expectations in 2024 can be attributed to several key factors:

1. **Strong Enterprise Growth**: Vimeo's Enterprise segment experienced a significant growth, with a 55% year-over-year increase in revenue. This growth was driven by improvements in go-to-market fundamentals and investments in integrations and security. The company reported that 40% of its customer deals in Q4 were driven by new AI capabilities.
2. **Revenue from Vimeo Enterprise**: Vimeo Enterprise contributed 19% of the total revenue and grew 55% year-over-year. This substantial growth highlights the effectiveness of Vimeo's strategic focus on enterprise customers.
3. **Strategic Investments**: Vimeo made significant investments in 2025 to accelerate growth, focusing on video formats, security, enterprise solutions, and AI capabilities. These investments are expected to lead to double-digit growth by the end of the year.
4. **AI Innovations**: The company's focus on AI innovations and strategic investments have been instrumental in driving growth and improving customer engagement. The introduction of AI features like translations has become a key differentiator in enterprise sales, particularly for global customers.
5. **Financial Discipline**: Vimeo's financial management has been notable, with the company ending Q2 2024 with $311 million in cash and repurchasing approximately 4 million shares since the last earnings announcement. This indicates strong cash flow management and a commitment to returning value to shareholders.

In summary, Vimeo's earnings beat in 2024 can be attributed to strong growth in its Enterprise segment, strategic investments, AI innovations, and effective financial management.