- **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

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