Vimeo Stock Soars 10.99% on Q2 Earnings Beat

On August 5, 2025, Vimeo's stock surged by 10.99% in pre-market trading, marking a significant rise that caught the attention of investors and analysts alike.

Vimeo reported its Q2 2025 earnings, revealing a GAAP earnings per share (EPS) of $0.04, which exceeded analyst estimates by 1500%. However, the company's GAAP revenue of $104.65 million fell slightly short of consensus expectations and remained nearly flat compared to the same period last year. Despite this, Vimeo raised its adjusted EBITDA guidance for the full year 2025 to $35 million, citing strong bookings and ongoing AI-driven product innovation.

The company's bookings, a key metric for future sales, increased by 6% year-over-year, reaching a three-year high. This growth was driven by a 12% increase in average revenue per user for the Vimeo Enterprise segment, which added notable clients such as Jaguar Land Rover, Spotify, and FanDuel. However, the Self-Serve segment faced challenges, with a 11% decrease in subscriber numbers, although bookings in this segment grew by 11%.

Vimeo's focus on AI innovation, including new translation services and enhanced search functionality, has started to generate positive revenue and pipeline growth. The company expects GAAP revenue to be around $106 million in Q3 2025 and has reiterated its goal of achieving low single-digit revenue growth for the full year, with an adjusted EBITDA target of $35 million. Despite these positive developments, Vimeo continues to face challenges in certain product lines, such as OTT video services and add-on products, which saw declines in revenue.