Vimeo's Q4 Results Surpass Expectations; Shares Sink Over 21% – TipRanks

Video hosting, sharing and services platform Vimeo, Inc. (NASDAQ: VMEO) recently reported better-than-expected results for the quarter ended December 31, 2021. Strong revenue growth drove the overall positive results of the company. However, following the earnings, shares of the company declined 21.2% to close at $10.90 in Wednesday’s extended trading session. Revenue & Earnings Vimeo reported quarterly revenues of $106.1 million, which denotes a year-over-year increase of 26.6%. Further, the figure surpassed the consensus estimate of $104.94 million. The growth in revenues was primarily driven by the 11% and 13% rise witnessed in subscribers and average revenue per user, respectively. The company’s loss per share at the end of the quarter stood at $0.05, wider than the loss of $0.01 a year ago. However, the figure came in narrower than the consensus loss estimate of $0.08. In other operating metrics, Vimeo’s gross margin improved from 70% in the previous year to 75%. The company’s paying subscribers at the end of the quarter stood at 1.7 million. Vimeo reported an adjusted EBITDA loss of $7.6 million, compared to an adjusted EBITDA of $0.7 million a year ago. Outlook For the first quarter and full-year 2022, the company forecasts revenues to grow in…
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