Vimeo (VMEO -0.83%) is a video software platform enabling businesses and creators to make, manage, and distribute professional videos without advertising. On August 4, 2025, the company reported its Q2 2025 earnings results. The main headlines: GAAP earnings per share (EPS) of $0.04 easily beat analyst forecasts by $0.0375, or 1500%. However, GAAP revenue came in at $104.65 million, just under the consensus estimate of $105.76 million and nearly flat with the same period last year. Management raised its adjusted EBITDA target for full-year 2025 to $35 million. The quarter showed improvements in bookings and profitability, but overall revenue growth remains tepid, with total GAAP revenue flat year-over-year, and subscriber numbers in some segments continue to contract, as evidenced by a decrease in Self-Serve subscribers from 1,189.3 in Q1 2025 to 1,156.5 in Q2 2025, and a drop in Vimeo Enterprise subscribers from 4.1 to 4.0 over the same period.
| Metric | Q2 2025 | Q3 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.04 | N/A | $0.06 | (33.3 %) |
| Revenue | $104.7 million | N/A | $104.4 million | 0.3 % |
| Adjusted EBITDA | $10.9 million | $9.0 million | $16.3 million | (33.1 %) |
| Free Cash Flow | $17.8 million | $20.3 million | (12.3 %) | |
| Gross Margin | 78 % | 78 % | 0.0 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Understanding Vimeo’s Business and Recent Focus
Vimeo is a software company offering cloud-based tools for video creation, hosting, management, and distribution, serving both businesses and creators worldwide. Its Software-as-a-Service (SaaS) model generates revenue primarily through subscriptions, including both individual self-serve plans and enterprise packages aimed at large organizations.
The company's recent strategy heavily emphasizes innovation, particularly by integrating artificial intelligence to enhance product offerings. It has also focused on stemming declines in legacy product areas while investing to boost growth in key divisions, such as its Vimeo Enterprise segment. Success for Vimeo depends on increasing subscriber value, converting free users to paid plans, and broadening adoption of advanced features like AI-powered translation and collaboration tools.
Quarterly Performance and Key Developments
During Q2 2025, total revenue (GAAP) remained flat year over year, with management noting that if some rapidly shrinking product lines were excluded, the core business grew at a modest 2%. Company-wide bookings, a forward-looking sales metric that reflects the total value of new contracts signed, rose 6% year-over-year and reached a three-year high (excluding legacy categories). This marked the fourth straight quarter of bookings growth and signals modest underlying business momentum.
The Self-Serve segment—where customers sign up and manage subscriptions on their own—reported GAAP revenue of $57.6 million, down 1% compared to the prior year. While Self-Serve subscriber numbers fell 11% to 1.16 million, Self-Serve bookings grew 11%, the strongest growth in over three years. The company expects this segment’s revenue to return to growth in the second half of 2025, but the continued slide in subscriber count remains a challenge for sustainable expansion.
Revenue in this area grew 25% to $25.0 million (GAAP), and bookings rose 9% despite the negative impact of a single large customer leaving. Enterprise average revenue per user climbed 12% to $24,705, and subscriber counts were up 10%. Notable new clients included Jaguar Land Rover, Spotify, and FanDuel. The company reaffirmed its goal to maintain growth in this segment above 20% for Vimeo Enterprise and expects Vimeo Enterprise bookings growth to re-accelerate in the second half of 2025, as the loss of the major customer does not reflect an ongoing trend.
Other product lines did not fare as well. Over-the-Top (OTT) video services revenue declined 3% to $12.3 million (GAAP), while add-on product revenue slumped 20% to $8.2 million. The company continued to phase out its “Other” segment, a category made up of deprecated products, which fell sharply to $1.63 million in GAAP revenue. These declines highlight ongoing challenges in parts of the business that are shrinking or being restructured.
On the product front, the company delivered 35% of its annual roadmap, focusing on AI-powered features like its new translation services. Management said that these new offerings have already started generating positive revenue and pipeline growth. The push for AI innovation also included better search functionality and security upgrades targeted at enterprise clients, supporting efforts to improve product stickiness and potential upsell opportunities.
Outlook and What Investors Should Watch
For Q3 2025, management expects GAAP revenue to be around $106 million and adjusted EBITDA (non-GAAP) at roughly $9 million. For the full year 2025, it reiterated expectations of low single-digit revenue growth but raised its adjusted EBITDA (non-GAAP) target to $35 million, up from the previous $25–30 million range. The company expects operating income to reach approximately $6 million for FY2025 and hopes to end the year with a line of sight to double-digit revenue growth in future quarters.
The company does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
