IAC/InterActive (IAC 1.52%) has completed its spinoff of online video platform Vimeo (NASDAQ:VMEO) as the YouTube rival began trading today on the Nasdaq exchange.

Vimeo is the 11th company IAC has spun off, most recently turning out home-services listing site Angie's List in March, and before that, online dating service Match Group.

Filmmaker adjusting camera

Image source: Vimeo.

Vimeo reported first-quarter results earlier this month showing revenue surged 57% year over year generating 67% in gross margins. It also generated adjusted profits of $1.3 million compared to adjusted losses of $12 million a year ago.

The video site is seeking a larger share of the video hosting, distribution, and monetization market by offering a suite of tools and services to filmmakers. It now has almost 1.6 million subscribers, up 25%, who generated on average $233 in revenue per user, an increase of 27% over last year.

Vimeo is also assigning greater importance on positioning itself as a tool for business communication. CEO Anjali Sud said, "Looking ahead, our focus remains on product innovation to enable every business to use video with tools that are far easier, more powerful and more cost effective than ever before." 

With over 4,400 customers, including Amazon, Comcast, Intuit, and Spotify, enterprise revenue more than doubled during the quarter.

Vimeo plummeted out of the gate, though, and the communications stock was down 20% in Tuesday morning trading at around $41 per share.