- **Q2 Growth Highlights**: 6% YoY bookings growth, self-serve up 11%, enterprise revenue +25%, with EBITDA guidance raised to $35M.
- **AI-Driven Innovation**: Agentic AI testing for video search and customer support, with potential Q3/Q4 rollout.
- **Enterprise Recovery**: New features (Workspaces, AI translations) and competitive wins position for H2 growth despite Q2 booking shortfall.
- **Efficiency Focus**: R&D investments optimized for high-impact products, enabling EBITDA margin expansion.

**【CEO Opening Remarks】**
- Q2 2025 bookings grew 6% YoY, the strongest since 2022, with self-serve bookings up 11% and enterprise revenue up 25%.
- Self-serve success driven by pricing/packaging changes, AI features (e.g., video translations), and product innovations like Apple app updates.
- Enterprise bookings fell short due to a large customer not adopting full suite, but competitive wins (e.g., Spotify, Jaguar Land Rover) and new features (Workspaces, AI) position for H2 growth.
- Guidance raised: 2025 adjusted EBITDA now $35M (vs. $25-30M prior), targeting double-digit growth by year-end.

**【CFO Financial Commentary】**
- Adjusted EBITDA guidance increased to $35M due to cost efficiency, with R&D investments focused on high-impact innovations.
- Self-serve business showing strong trends in Q3, potentially becoming a double-digit grower with good execution.
- Enterprise challenges include commoditization of bandwidth, but focus on expanding customer relationships and product adoption (e.g., AI translations) is driving retention.

**【Q&A Highlights】**
- **Self-Serve Growth**: Pricing changes stabilized retention, and Q3 trends suggest self-serve could be a double-digit grower by 2026. AI features like video translations are driving engagement.
- **Enterprise Challenges**: A large customer's reliance on commoditized bandwidth caused Q2 booking decline, but new features (Workspaces, Agentic AI) and competitive wins are reaccelerating growth.
- **AI Rollout**: Testing Agentic AI for video search, customer support, and employee onboarding, with potential Q3/Q4 rollout. 64% of companies are adopting AI agents, and Vimeo aims to be a leader in video AI integration.
- **Capital Allocation**: Focus on organic growth (R&D efficiency), share buybacks, and selective M&A. No immediate M&A plans, but open to opportunities aligning with AI strategy.

Vimeo, Inc. (VMEO) Q2 2025 Earnings Call Transcript

- **Self-service recovery**: 6% YoY bookings growth after 3 years of decline, driven by price increases with better retention.
- **Enterprise momentum**: 32% revenue growth despite Q1 booking deceleration; new leadership and AI tools poised to accelerate Q2.
- **AI investment payoff**: $30M allocated to video translations, agentic workflows, and compliance tools with clear short-term ROI.
- **Key growth drivers**: Marketing, education, and regulated industries; 45% international customer base fueling translation demand.
- **2025 target**: Profitable growth on track with EBITDA guidance of $25M-$30M and disciplined capital allocation.

**【CEO Opening Remarks】**
- Self-service bookings grew 6% YoY, reversing a 10% decline in Q2 2023. This marks the first growth in 3 years and reduced revenue decline rate by nearly half.
- Vimeo Enterprise revenue rose 32% YoY, with bookings up 13%. Q1 revenue was over double the level from two years ago.
- Company is investing $30M in AI, streaming, and enterprise solutions, with a focus on short-term ROI.
- 2025 goal: Achieve profitable growth for the full year despite macroeconomic uncertainties.

**【CFO Financial Highlights】**
- Q1 EBITDA guidance: $25M-$30M, reflecting responsible capital allocation.
- Capitalized expenses for large projects, but no plans to exceed $30M investment threshold.
- Focus on ARPU growth through AI-driven consumables (e.g., video translations, agentic video features).

**【Key Q&A Takeaways】**
1. **Self-Service Pricing Impact**
   - 20% price increases in late 2024 led to lower churn rates; new pricing rolling out in Q2.
   - Retention trends suggest 6% booking growth could continue.

2. **Enterprise Growth Dynamics**
   - Q1 bookings deceleration due to leadership transition and lumpy deal timing.
   - Focus shifting to revenue realization rather than bookings alone.
   - New sales leader and organizational changes expected to accelerate Q2 growth.

3. **AI & Product Innovation**
   - Translations feature rolled out to all self-service users in April, with early adoption in video library monetization.
   - Agentic video capabilities (AI-driven video workflows) in development for customer support and sales use cases.
   - Regulatory compliance tools for highly regulated industries (e.g., pharma, finance).

4. **Industry Trends**
   - Strong demand from marketing, education, and regulated industries.
   - AI-powered video compliance tools gaining traction with enterprises.
   - Global reach (45% international customer base) driving translation feature adoption.


Vimeo (VMEO)-5 May 25-2025 Q1 Earnings call transcript

- **$30M R&D Investment**: Funds AI, video formats, security, and enterprise solutions to drive double-digit growth by year-end.
- **AI Dominance**: 40% of Q4 enterprise bookings from AI features like 28-language translations and video indexing.
- **Enterprise Momentum**: 10%+ subscriber and ARPU growth, 45%+ international revenue, stable retention despite price hikes.
- **Self-Serve Turnaround**: 10% AOV growth, AI features for creators, and streamlined leadership team improving user experience.

**【CFO Opening Remarks】**
- Vimeo achieved significant EBITDA growth in 2024, tripling the EBITDA generated over the previous three years.
- CFO announced a $30 million investment plan for 2025, targeting R&D in AI, video formats, security, and enterprise solutions.
- The company expects to see double-digit revenue growth by the end of 2025, with AI-driven products already accounting for 40% of Q4 enterprise bookings.

**【CEO Strategic Overview】**
- Key investment areas: 
  1. **Video Formats**: Expanding support for 4K, portrait, shoppable videos, and interactive content.
  2. **Security**: Enhancing data privacy compliance (GDPR, China streaming) and granular permissions for enterprises.
  3. **Enterprise Solutions**: Integrating video into workflows for marketing, e-learning, healthcare, and financial services.
  4. **AI Innovations**: Translations in 28+ languages, video indexing, and interactive streaming experiences.
- Success metrics: 30% of 2024 bookings from new products, stable retention despite 30%+ price increases in Self-Serve.

**【Q&A Highlights】**
1. **Enterprise Growth Drivers**: 
   - 10%+ unit growth in new subscribers
   - 10%+ ARPU/AOV growth
   - 45%+ international revenue
   - 40% of Q4 deals from AI features

2. **Self-Serve Strategy**: 
   - Price increases offset by 10%+ AOV growth
   - AI features (translations, video search) rolling out to individual creators
   - Single-threaded leadership team improving user experience

3. **Capital Allocation**: 
   - $30M R&D investment vs. $30M+ share buybacks
   - Target EBITDA of $25-30M post-investment
   - 10% revenue growth would fully offset investment costs

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