Vimeo Q3 Revenue Nears $106M, Sees Operating Income of Approximately $2M and Adjusted EBITDA of Approximately $9M.

Vimeo reported Q3 revenue of approximately $106M, with operating income of around $2M and adjusted EBITDA of around $9M. The company's financial performance highlights its growth in the video hosting and streaming market.

Vimeo Inc. (VMEO) reported its Q3 2025 financial performance, showcasing robust revenue growth and improved operational efficiency. The company's Q3 revenue reached approximately $106 million, with operating income of around $2 million and adjusted EBITDA of approximately $9 million. These figures underscore Vimeo's strong position in the video hosting and streaming market.

The company's Q2 2025 earnings report highlighted a significant EPS beat of $0.04 compared to the forecasted $0.01, marking a 300% surprise [3]. This performance was driven by a 6% year-over-year increase in bookings, with self-serve bookings growing by 11% and reaching levels last seen in 2021. Vimeo Enterprise revenue surged by 25%, indicating strong growth in its enterprise segment [3].

Vimeo's Q3 revenue of $106 million represents a notable increase, reflecting the company's strategic focus on expanding its enterprise market and enhancing its self-serve offerings. The company's adjusted EBITDA guidance was raised to $35 million, signaling confidence in its operational efficiency and growth prospects [1]. This guidance revision underscores Vimeo's commitment to integrating AI into its offerings and improving its overall financial performance.

Despite the strong financial performance, Vimeo continues to face challenges in certain segments, such as OTT and add-on products, which may limit growth opportunities. The company's outlook for the remainder of the year remains optimistic, with a focus on expanding its enterprise market and enhancing its self-serve business. Upcoming product developments, including AI-powered features and new SKUs, are expected to drive further growth.

Vimeo's stock price experienced a 5.07% increase following the earnings announcement, closing at $3.69 in aftermarket trading. This movement reflects investor optimism driven by the substantial EPS beat and positive guidance revisions. Based on InvestingPro Fair Value analysis, Vimeo currently appears undervalued despite trading at a P/E ratio of 37.29 [3].

In the broader context of the streaming market, Disney has announced plans to fully integrate the Hulu streaming app into its flagship Disney+ streamer in 2026. This move is part of Disney's strategy to strengthen its streaming offering and create an impressive package of entertainment, pairing high-caliber brands and franchises, great general entertainment, family programming, news, and industry-leading live sports content in a single app [2]. This integration is expected to result in cost savings and new ad sales opportunities, enhancing Disney's overall streaming business.

Overall, Vimeo's Q3 financial performance highlights the company's strong position in the video hosting and streaming market. With a focus on expanding its enterprise market and enhancing its self-serve offerings, Vimeo is well-positioned to continue its growth trajectory. The company's integration of AI-powered features and new SKUs is expected to drive further growth, positioning Vimeo as a key player in the evolving streaming landscape.

References:
[1] https://www.ainvest.com/news/vimeo-stock-soars-10-99-q2-earnings-beat-2508/
[2] https://popculture.com/apple-news/news/2-major-streaming-services-set-to-combine/
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-vimeo-q2-2025-beats-eps-forecast-stock-rises-93CH-4169036