Why Vimeo Stock Plunged This Week | The Motley Fool

Management’s guided for slower growth in Q4. But the video software specialist is up against a tough comp. Key Points Vimeo’s third-quarter revenue increased 33% year over year. The tech company saw strong growth in subscribers. A lowered view for fourth-quarter revenue may have triggered the stock’s sell-off. What happened Shares of video software specialist Vimeo (NASDAQ:VMEO) fell sharply this week. The stock declined as much as 32.3%, according to S&P Global Market Intelligence. As of the end of the week, shares were down a total of 30.8%. The growth stock’s decline was primarily driven by the third-quarter update and some analysts’ follow-up moves to downgrade their ratings for the stock. Image source: Getty Images. So what Vimeo said its third-quarter revenue rose 33% year over year to $100.1 million. Its loss per share was $0.07. These results beat analysts’ average forecasts for the two metrics. But Vimeo’s revenue was only slightly ahead of the $100.0 million consensus estimate by analysts. The company’s loss per share was narrower than the $0.10 loss analysts anticipated. Total subscribers increased 14% year over year. Management lowered its view for fourth-quarter revenue, likely spooking some investors. Vimeo guided for revenue growth to slow in…
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