Q4 2021 Vimeo Inc Earnings Call
Good morning, and thank you for joining <unk> Q4 earnings event, we're excited to be here in front of you.
Speaker 1: Good morning and thank you for joining Vimeo's Q4 earnings event.
Speaker 1: Before we begin, a few comments. First, this session will be recorded and available on the Vimeo investor relations site later today.
Before we begin a few comments first the session will be recorded and available on the Vimeo Investor Relations site later today.
Second we will discuss stimulus outlook and future performance. These forward looking statements typically may be preceded by words, such as we expect we believe we anticipate or similar such statements. These forward looking views are subject to risks and uncertainties and actual results could differ materially from the views expressed today.
Speaker 1: These forward-looking statements typically may be preceded by words such as we expect, we believe, we anticipate, or similar such statements. These forward-looking views are subject to risks and uncertainties.
Speaker 1: We have also provided information regarding certain key metrics and our non-GAAP financial measures including certain forward-looking...
We have also provided information regarding certain key metrics and our non-GAAP financial measures, including certain forward looking measures. These should be considered in addition to and not as a substitute for or in isolation from GAAP measures.
Speaker 1: These should be considered in addition to, and not as a substitute, for or in isolation.
Speaker 1: Additional information regarding Vimeo's financial performance, including reconciliations with comparable GAAP measures, can be found in our earnings release and Vimeo filings with the SEC, as well as in the supplemental information posted at the Invested Relations section of our website. With that, I'll turn it over to our CEO .
Additional information regarding financial performance, including reconciliations with comparable GAAP measures can be found in our earnings release, and then you'll filings with the SEC as well as in the supplemental information posted to the Investor Relations section of our website.
With that I'll turn it over to us actually.
Good morning, everyone and welcome.
Speaker 2: Last night, I published a letter to our shareholders with three main takeaways.
Last night I published a letter to our shareholders with three main takeaways.
Speaker 2: First, my team and I are here to change how the world uses video.
First my team and I are here to change how the world near this video.
Speaker 2: We've had our missteps, but we also see mounting validation of our strategy.
Had our missteps, but we also see mounting validation of our strategy.
Speaker 2: Increasingly Vimeo is powering video for work, and we're entering the year with more focus, clarity, and...
Increasingly vimeo is powering video for work and we're entering the year with more focus.
Alrighty and rigor.
Second we expect our revenue growth in 2022 at a slow versus last year by more than we'd like.
Speaker 2: Second, we expect our revenue growth in 2022 to slow versus last year by more than we'd like.
Speaker 2: We continue to digest the COVID hangover with our smaller customers, both in specific verticals like faith and fitness, as well as in use cases like live.
We continue to digest, the Covid hangover with our smaller customers.
In specific verticals like faith in fitness as well as in use cases like live streaming.
Speaker 2: We're also making needed changes to the business as we shift our go-to-market, expand our product breadth, and enhance our monetization model.
We're also making needed changes to the business as we shift our go to market expand our product breadth and enhanced our monetization model.
Speaker 2: These factors, along with lapping a strong first half of 2021, make it hard to maintain the exceptional growth rate from this time.
These factors along with lapping a strong first half of 2021 make it hard to maintain the exceptional growth rates from this time last year.
Speaker 2: We do expect to re-accelerate our revenue growth in the second half.
Do you expect to Reaccelerate, our revenue growth in the second half 2022 .
Speaker 2: Third, underlying our overall growth rate is an exciting mix shift towards serving larger
Third underlying our overall growth rate is an exciting mix shift towards serving larger company.
Speaker 2: a shift that we view as ultimately higher value, stickier dollars.
A shift that we view with ultimately higher value stickier or dollars.
Speaker 2: We set our North Star internally on serving companies with greater than 100 employees.
We set our north star internally on serving companies with greater than 100 employees.
Speaker 2: These are the customers we see as having the most urgent need for our solution, with the budget to invest, invest in class video capabilities, and who we can grow with most as our product.
These are the customers, we see as having the most urgent need for our solution with the budget to invest in best in class video capabilities and who we can grow with most of our products made to expand.
Speaker 2: We've shared some of the reasons we believe this in our shareholder letter. Going forward, we'll look to share more with you as we make traction.
We shared some of the reasons. We believe this in our shareholder letter and going forward, we will look to share more with you as we make traction with this company.
Speaker 2: And before we dive into the business, I've got a few team updates to share. First, I've invited our President and Chief Product Officer Mark Kornfeld to join today.
And before we dive into the business I've got a few team updates to share.
First I've invited our president and Chief product Officer, Mark Kornfeld, two joined today, you may not be able to tell with this table, but I am seven months pregnant and we'll be stepping away from maternity leave in April .
Speaker 2: You may not be able to tell with this table, but I am seven months pregnant and will be stepping away from maternity leave.
Speaker 2: to plan for Mark to serve as interim CEO during that time, and to represent Vimeo during our Q&A.
We plan for <unk> to serve as interim CEO during that time and to represent them out during our Q1 earnings.
Speaker 2: For those that don't know him, Mark is a 15-year veteran in B2B video, having founded and run several business...
Those who don't know him Mark has a 15 year veteran in VIP video, having founded and run several businesses.
Speaker 2: Among them, he served as CEO of Livestream, which Vimeo acquired in 2017.
Among them he served as CEO of Livestream, which was acquired in 2017.
Speaker 2: Mark has spent the last four years as my partner in architecting our strategy and transition. So Vimeo is in great shape.
Mark I spent the last four years of my partner and architect our strategy and transition. So vimeo is in great hands.
Second we recently added two new leaders to our Exec team are first Chief revenue Officer, Eric Cox, and our first Chief people officer, a crystal ball with them.
Speaker 2: Second, we recently added two new leaders to our exec team, our first Chief Revenue Officer, Eric Cox, and our first Chief People Officer, Crystal Bull.
Speaker 2: Eric spent nearly two decades at Adobe, where he oversaw various go-to-market, e-commerce, and revenue functions for some of their largest businesses.
Eric spent nearly two decades at Adobe, where he oversaw various go to market e-commerce and revenue function for some of our largest businesses.
Speaker 2: His priorities of MEO include delivering our revenue targets across all channels, enhancing our monetization model and optimizing our website.
His priority for Vimeo include delivering our revenue targets across all channels, enhancing our monetization model and optimizing our website experience.
Speaker 2: Crystal comes from Canva, where she led their people team as they scaled from several hundred to over 2,000 employees globally.
Crystal comes from Canada, where she loved there are people team as they scaled several hundred to over 2000 employees globally.
Speaker 2: In a world where everyone's talking about the great resignation and the war for talent, Google's job is to cultivate people-first culture at Vimeo and ensure we've got world-class
In a world where everyone's talking about the great resignation and the war for talent Crystal job is to cultivate people first culture Vimeo and ensure we've got world class talent.
Speaker 2: Third, as we announced yesterday in our press release, our CFO Narayan will be leading us to explore other career options.
Third as we announced yesterday in our press release, our CFO and Ryan will be leaving us to explore other career opportunities.
Speaker 2: We've kicked off the search for his successor, and Narayan will continue to serve as CFO through June as needed to ensure a seamless solution.
We've kicked off a search for his successor and Orion will continue to serve as CFO through June as needed to ensure a seamless transition.
Speaker 2: After that, he'll continue to be available as an advisor to us through the end of the year.
After that he will continue to be available as an adviser to us through the end of the year.
I'm sad to see him to Ryan go, but I'm also excited to see what he does next.
Speaker 2: I'm sad to see Narayan go, but I'm also excited to see what he does.
Speaker 2: Narayan, on behalf of the board and every Vivian on the team, we wish you incredible success. Thank you for everything that you have done to get us to this point and everything that you continue to do. It's been a privilege. Thank you, Angeli. Really appreciate that.
Ryan on behalf of the board in every women on the team we wish you.
Incredible success. Thank you for everything that you have done to get up to this point and everything that you continue to do it's been a privilege. Thanks, gentlemen, I really appreciate that.
Speaker 3: I just want to say that it has been a real honor to take Bimeo through these last few years. I have the utmost faith in this team and our strategy and strongly believe in the huge opportunity ahead for the company. I will always be cheering for you.
I just wanted to say that it has been a real honor to take me out through these last few years I have utmost faith in this team and our strategy and strongly believe in the huge opportunity ahead for the company.
Always be cheering for you annually and for Vimeo.
Speaker 2: All right, on to the business. Last quarter, we talked about three key priorities, go to market, product breadth, and monetization. I want to give you more color on what we're talking about.
Alright, so the business last quarter, we talked about three key priorities go to market.
<unk> breadth and monetization.
To give you more color on what we're specifically doing care.
Speaker 2: First, we have a winning product that businesses are willing to pay for. We see this reflected in increasing conversion rates and a growing number of business domains and business domain users on VIMAGED.
First we have a winning product businesses are willing to pay for we see this reflected an increase in conversion rates and a growing number of business domains and business domain users on vimeo.
Speaker 2: For our flagship Vimeo Enterprise offering, we see this in a high NPS score and in highly engaged.
For our flagship Vimeo enterprise offering we see this in our high NPS score and highly engaged team.
Speaker 2: We've got the product and now we need to take our go-to-market to the next level.
So you've got the product and now we need to take our go to market to the next level.
We'll do this through investments in sales marketing and customer success, many of which are not new for us.
Speaker 2: We'll do this through investments in sales, marketing, and customer success, many of which are net use.
Speaker 2: For example, we're not just growing our sales team capacity.
For example, we're not just growing our sales team capacity.
Speaker 2: We're specializing our sales force by customer size to better align with different buying behaviors.
Specializing our sales force by customer size to better align with different buying behavior.
Speaker 2: What we've seen is that smaller companies tend to buy very differently than larger ones. So our sellers need different skill sets and training. And for the largest companies, they need to be paired with a sales engineer to navigate the buying process with a more technically driven approach.
Well, we've seen is that smaller companies tend to buy very differently than larger ones.
So our sellers need different skill sets and training and for the largest companies they need to be paired with a sales engineer to navigate the buying process with a more technically driven approach.
We've entered 2022 with the specialization in place and will be honing it under the stewardship of our new Sierra.
Speaker 2: We've entered 2022 with this specialization in place, and we'll be honing it under the stewardship of our new CRF.
Speaker 2: On the marketing side, we're increasing investments in SEO to scale organic traffic, as well as adding in product triggers to encourage teams to share content and add their quality.
On the marketing side, we're increasing investments in S. C O just scale organic traffic as well as adding in product triggers to encourage teams to share content and add their colleagues.
Speaker 2: We're also investing in data and automation so that our sales force can quickly call the most qualified leads based on who they are and how they use our products. From 70 motorcycles from up to 50edlyyrsagrams towards a almost over 30 years old government proud was proud andier teachers is now war Tripolifor DC where were not given pounds and there are now 2, midrange local ACC we was ide she
We're also investing in data and automation so that our sales force can quickly call. The most qualified leads based on who they are and how they use our products.
Finally, we are investing in a new customer success team.
Speaker 2: a team that's going to be gold on product adoption metrics. Things like customer time to value, seat utilization, monthly active engagement, and account growth.
A team that is gonna be goals on product adoption metrics things like customer time to value seat utilization monthly active engagement and account growth.
Speaker 2: This gives us a dedicated motion to drive early and ongoing success with our customers in a way we didn't have.
This gives us a dedicated motion to drive early and ongoing success with our customers in a way we did it before.
Speaker 2: Second, our product expansion strategy is working.
Second.
Our product expansion strategy is working.
Speaker 2: We added two new products to our Vimeo Enterprise offering last year, Video Library and Vimeo Event.
We added two new products to our Vimeo enterprise offering last year video Library, and then the only about.
Speaker 2: Both are doing what we design them to do, helping us win business, expand existing relationships, and diversify beyond life.
Both are doing what we designed them to do helping us win business expand existing relationships and diversify beyond live streaming.
Within a few short months of introducing these products, we're seeing nearly half of our vimeo enterprise customers now using us as a multi product solution.
Speaker 2: Within a few short months of introducing these products, we're seeing nearly half of our Vimeo Enterprise customers now using us as a multi-product.
We're also getting better at selling to big customers. For example, we closed our largest vimeo enterprise deal ever in Q4 with a marquee fortune 10 retailer because it was a three.
Speaker 2: We're also getting better at selling to big customers. For example, we closed our largest Vimeo enterprise deal ever in Q4 with a marquee Fortune 10 region.
Speaker 2: This is a three-year, seven-figure contract and a key proof point of where the market is going.
Three year seven figure contract and a key proof point of where the market is going.
Speaker 2: This customer will be using Vimeo to train associates, post videos on their website, and centralize all their video content securely.
This customer will be using vimeo to train associates posted videos on their website and centralize all their video content securely.
Speaker 2: It's worth noting that we displaced a competitor here because of our quality, ease of use, and platform breadth.
It's worth noting that we displaced a competitor here because of our quality ease of use and platform broth.
Speaker 2: What's most exciting for me is that video library was such a critical part of this deal and will be used to centralize video content for this company across millions of their employees worldwide.
What's most exciting for me is that video library was such a critical part of the steel and will be used to centralize video content for this company across millions of their employees worldwide.
Speaker 2: Remember that we just launched the beta version of Video Library last summer. So to go from that to a seven-figure deal with a huge company in just six months is pretty great validation that we're on the right track.
Remember that we just launched the beta version of video Library last summer so to go from that to a seven figure deal with a huge company in just six months is pretty great validation that we're on the right track.
Speaker 2: So we're doubling down on our all-in-one strategy by continuing to improve video library and Vimeo events based on customer feedback and by expanding our product breadth further into areas like enterprise-grade video creation and interactive and shoppable.
So we're doubling down on our all in one strategy by continuing to improve video library, and Vimeo events based on customer feedback and by expanding our product breadth further into areas like enterprise grade video creation and interactive chapel video.
Speaker 2: Third, we have low-hanging fruit to improve monitor.
Third we have low hanging fruit to improve monetization.
Speaker 2: We've talked about our sizable opportunity to convert the majority of Fortune 500 companies currently in our user base. We're either paying us nothing or a few hundred dollars a month today.
We've talked about our sizable opportunity to convert the majority of Fortune 500 companies currently in our user base, who are either paying off nothing or a few hundred dollars a month today.
Speaker 2: When we have successfully upgraded these companies, we see a 250 times increase in our pool.
When we have successfully upgraded these companies, we say 250 times increase in our pool.
Speaker 2: But right now, this kind of upgrade isn't happening at the scale and velocity it could.
But right now there's kind of upgrade isn't happening at the scale and velocity it could be.
Speaker 2: We believe the way to unlock this is to fundamentally shift our monetization strategy from a legacy storage-based model to a seat-based approach.
We believe the way to unlock that is to fundamentally shift our monetization strategy from our legacy storage based model to a seat based approach.
Speaker 2: I'm pleased to share that this transition is on track. We've begun to roll out per seat monitor station as planned.
I'm pleased to share that this transition is on track we've begun to rollout per seat monetization as planned.
Speaker 2: We use this new monetization model in Q4 to land some of our largest deals, and customers have been receptive given that we're aligning with industry standards and ultimately their own.
We use this new monetization model in Q4, two and some of our largest deals and customers have been reception receptive given that we're aligning with industry standards and ultimately their own success.
But we've got plenty of testing to do before we declare a victory here and we continue to view this as a multi quarter journey with long term returns.
Speaker 2: But we've got plenty of testing to do before we declare victory here, and we continue to view this as a multi-quarter journey with long-term results.
Speaker 2: Ultimately, we want to reduce the barriers to adopt video at work so that more employees are using more of Vimeo more often. This is our plan.
Ultimately, we want to reduce the barriers to adopt video at work more employees are using more of vimeo more often.
This is our priority over a fast rollout.
Speaker 2: So overall, our focus remains the same for 2022. Improve our go-to-market, expand our product breadth, and enhance our modernization model. Today, we've given you more details around how we're attacking each.
So overall, our focus remains the same for 2022.
Our go to market expand our product breadth and enhanced our monetization model.
We are giving you more details around how we're attacking each of these.
Speaker 2: and we're building the right team and muscles to do it. Plenty of good hard work.
We're building the right team and muscles to do it.
Plenty of good hard work to do.
Sometimes you'll forgive me I'll doesn't rest on this year alone every company team an employee in the World is just starting to use video for work and our success rests on our consistent ability to build the best video software to serve them.
Speaker 2: The potential for Vimeo doesn't rest on this year alone. Every company, team, and employee in the world is just starting to use video for work, and our success rests on our consistent ability to build the best video software to serve them. So I'll hand it to Mark to share more about our product strategy.
So I'll hand, it to mark to share more about our product strategy.
All right.
As you've seen and heard we kept a good pace of product innovation and improvements as we scaled in 2021.
Speaker 4: As we've seen and heard, we kept a good pace of product innovation and improvements as we scaled in 2021.
Speaker 4: I think this speaks volumes about the maturity of our platform, the talent of our team, and our focus on driving business impact with our product growth.
I think that speaks volume about the maturity of our platform the talent of our team and our focus on driving business impacts with our product roadmap.
Speaker 4: In 2022, we're focused on three key product pillars. The first one is unlocking knowledge at work. The second one is defining the next generation of live events.
In 2022, we're focused on three key product pillars. The first one is on marketing knowledge to work second one is defining the next generation of live events.
Speaker 4: The third one is serving the largest companies in the world. Let me tell you a little bit more about Egypt.
The third one is serving the largest companies in the World. Let me tell you a little bit more about each of them.
Speaker 4: Our first pillar is about helping every employee share ideas and knowledge effectively with video.
Our first pillar is about helping every employee share ideas and knowledge effectively with video.
Speaker 4: Why? Because today most large companies are generating thousands of hours of video content every year. And much of this valuable information is getting lost in shared drive, emails, or on people's computers.
Because today most large companies are generating thousands of hours of video content every year and much of this valuable information is getting Boston share drive E. Mails are on People's computers.
Speaker 4: Last year we launched our video library product to help companies like Bayer and Nike manage and disseminate all of that information so it's searchable, it's permanent, it's secure and it's far more useful.
Last year, we launched our video library product to help companies like bigger and Nike manage and disseminate all of that information. So it's searchable it's permanent it's secure and it's far more usable.
Speaker 4: We'll keep iterating on this product, but our next step is to help every employee create video daily.
We will keep it there or anything on this product, but our next step is to help every employee create video data.
Speaker 4: Historically, within large organizations, as you know, only a couple of people were able to create videos, either through internal AV departments or external agencies.
Historically within large organizations as you know only a couple of people, we're able to create videos either through internally view departments or external agencies.
Speaker 4: We believe that with the right tools and with the support of AI, we can enable everyone inside the organization to easily record, edit and stream video.
We believe that with the right tools and with the support of AI, we can enable everyone inside the organization to easily record edit and stream videos.
Speaker 4: But in order to truly unlock knowledge, we also need to surface all of the information inside of videos and make it more discoverable.
But in order to truly unlock knowledge, we also need to surface all of the information inside of videos and make it more discoverable.
Speaker 4: Think about this earnings call. You're watching this live video, which we're going to post on our website as a recording once we're done.
Think about this earnings call Youre watching this slide video, which we're going to post on our website as are recording once we're done.
Speaker 4: This information that I'm giving you right now is going to sit at minute 15 of the video for someone to discover by chance if they ever get to minute 15.
This information that I'm, giving you right now is going to sit at minutes 15 of the video for someone to discover by chance if they ever get two minutes <unk>.
That's just not good enough.
Speaker 4: So we're working to evolve our player and tools to help every viewer easily find, digest, and get the most out of the dense content inside of it.
So we're working to evolve our player and tools to help every viewer easily find digest and get the most out of the dense content inside of us.
Our second pillar is about defining the next generation of life experiences. We've seen early traction on give me revamps as you've heard and we're building on that momentum.
Speaker 4: Our second pillar is about defining the next generation of live experiences.
Speaker 4: We've seen early traction on Vimeo events, as you've heard, and we're building on that momentum daily.
Speaker 4: but we expect the future of life to look very different from what it looks like today. Less passive and more like what you would experience if you were attending an event in person, surrounded by colleagues or friends.
But we expect the future of life to look very different from what it looks like today less passive and more like what you would experience. If you were attending an event in person surrounded by colleagues or friends.
Speaker 4: We're working on making live experiences on Vimeo richer, more interactive, more collaborative, and more...
We're working on making life experiences on Vimeo richer more interactive more collaborative and more social.
Speaker 4: And we're working on simplifying live streaming even more so that you or any other employee in your organization can create these experiences, whether it's to market a product, to do a town hall with your employees, or to educate your customers.
And we're working on simplifying life streaming even more so that you or any other employee in the organization can create these experiences whether its two marketed products to do a tunnel with your employees or to educate your customers.
Speaker 4: Last but not least, we're scaling our tech, our integrations, our architecture and our security so that we can power mission-critical work for the largest companies in the world.
Last but not least we're scaling our tech our integrations, our architecture and our security. So that we can power mission critical work for the largest companies in the world.
Speaker 4: Up until two years ago, Vimeo was really a single user product designed for individuals.
Up until two years ago Vimeo was really a single user product designed for individuals last year, we targeted the ability to bring teams larger than 1000 employees on premium. It was an ambitious goal. They required re architect our platform to add support for larger libraries of content granular rules and permissions and team collaboration tools and <unk>.
Speaker 4: Last year, we targeted the ability to bring teams larger than a thousand employees on Vimeo. It was an ambitious goal that required re-architecting our platform to add support for larger libraries of content, granular roles and permissions, and team collaboration.
Speaker 4: And we've succeeded. We now have over 30 Vimeo Enterprise accounts with more than 10,000 seats. And we're now moving to support hundreds of thousands and even millions of seats on a single.
We succeeded we now have over 30, Vimeo enterprise accounts with more than 10000 seats and we're now moving to support hundreds of thousands and even millions of seats on a single account.
Speaker 4: Vimeo has always been known for superior quality and reliability. And we're building and we're investing to make sure we build on the leading edge here as we scale in the enterprise.
<unk> has always been known for superior quality and reliability and we're building.
And we're investing to make sure we build on the meeting each year as we scale in the enterprise.
To close off I want to leave you with this thought.
Speaker 4: People often ask me how will I know if our strategy succeeded in five years.
People often ask me how will I know if our strategy succeeded in five years.
Speaker 4: I believe that the answer to that is that we become the de facto solution for anyone looking for the best way to communicate and I think that's the answer.
I believe that the answer to that is that we become the de facto solution for anyone looking for the best way to communicate an idea.
Speaker 4: because video connects people in ways no other medium can. It's authentic and emotional. It's rich and engaging. And it's immediate.
Because video connects people in ways no other medium term it's authentic.
And emotional it's rich and engaging and it's immediate.
Speaker 4: I've spent the last 15 years of my career democratizing video because I believe in its power. What I've seen happen over the last 18 months has been incredibly validating. But that's nothing compared to what I believe will happen in this market in the next 10 years.
I've spent the last 15 years of my career Democratizing video because they believe in its power.
What I've seen happen over the last 18 months has been incredibly validating, but that's nothing compared to what I believe will happen in this market in the next 10 years theres. So much yet to be built and we're going to continue to pave the way for the industry.
Speaker 4: There's so much yet to be built, and we're going to continue to pave the way for the industry.
Speaker 4: With that, I'll pass it over to Narayan to walk you through the financials.
With that I'll pass it over to Noel Ryan talk to walk you through the financials. Thank you Mark.
Speaker 3: Q4 was a solid quarter. Quarterly revenue reached $106 million.
Q4 was a solid quarter.
Quarterly revenue reached $106 million.
Speaker 3: and was up 27% year over year with healthy growth across both self-serve and sales.
And was up 27% year over year with healthy growth across bookshelves and sales assistant.
Speaker 3: We added approximately 33,000 paying subscribers and ended the quarter with nearly 1.7 million total subscribers, up 11% year-over.
We added approximately 33000 paying subscribers and ended the quarter with nearly $1 7 million total subscribers up 11% year over year.
Speaker 3: Our ARPU in Q4 was $251, an increase of 13% compared to Q4 of last year.
Our ARPA in Q4 was $251 an increase of 13% compared to Q4 of last year.
Speaker 3: We do expect ARPU to fluctuate a bit in the short term as we evolve our monetization model and lab the COVID dynamic.
We do expect <unk> to fluctuate a bit in the shock. After you all of our monetization model and lab the Covid dynamics.
Speaker 3: But we expect overall ARPU to keep growing as we both increase the sales assistant ARPU and that business increases and makes over.
But we expect overall ARPA to keep growing after the board increased the sales assistant our pool and that business increases it makes overtime.
Speaker 3: On the sales assisted side, we now have more than 7,000 paying customers and our sales assisted revenue grew more than 50% this quarter. We are especially pleased to note that the sales assisted now represents more than 30% of the revenue in the quarter, up from mid-20s a year ago.
On the sales assistant site, we now have more than 7000 paying customers and our sales assisted revenue grew more than 50% this quarter.
Especially pleased to note that the sales assistant now represents more than 30% of the revenue in the quarter up from mid twenties a year ago.
Sales assisted in IRR dip below 100% this quarter with lower expansion, though logo retention ticked up slightly as we have talked about in the past and IRR is a lagging indicator and we expect it to start increasing again in the second half once we lap the COVID-19 columns and as our revenue growth rate Reaccelerate.
Speaker 3: Sales assisted NRR dipped below 100% this quarter with lower expansion, though logo retention ticked up.
Speaker 3: As we have talked about in the past, NRR is a lagging indicator, and we expect it to start increasing again in the second half once we lap the COVID columns and as our revenue growth rate reacts.
Speaker 3: The average also masks real traction in our Vimeo Enterprise offering, where the NRR increased quarter over quarter as we leverage our new products to drive stickier use cases and expansion.
The average also masks real traction in our Vimeo enterprise offering where the MLR increase quarter over quarter as we leverage our new products to drive stickier use cases and expansion.
The remainder of my comments will refer to non-GAAP measures.
Speaker 3: Moving on to expenses and profitability, our gross margins held steady quarter over quarter at 75% in Q4. We continue to be pleased to have you here.
Moving on to expenses and profitability, our gross margins held steady quarter over quarter at 75% in Q4.
We continue to be pleased with our progress here.
Speaker 3: R&D expenses for the quarter was up 62% year over year as we continue to successfully add world-class product and engineering talent to the team and rapidly expand our products.
R&D expenses for the quarter was up 62% year over year as we continued to successfully add world class product and engineering talent to the team and rapidly expand our product suite.
Speaker 3: Our sales and marketing spend for the quarter was up 45% year over year, as we more than doubled our sales team headcount to fuel our sales assistant revenue growth and set ourselves up for a successful 20.
Our sales and marketing spend for the quarter was up 45% year over year as we more than doubled our sales team head count deferral, our sales assisted revenue growth and set ourselves up for a successful 2022.
Finally, adjusted EBITDA loss for the quarter was $7 6 million. This included one time, M&A and legal expenses of about $4 million.
Speaker 3: Finally, adjusted dividend loss for the quarter was $7.6 million. This included one-time M&A and legal expenses of about $4 million.
Before we turn to our forward looking outlook I want to outline some changes on how we will talk about the business going forward.
Speaker 3: Before we turn to our forward-looking outlook, I want to outline some changes on how we will talk about the business going forward.
As Angela alluded to we increasingly see our customers needs purchase behavior and willingness to pay a differ significantly by company size.
Speaker 3: As Anjali alluded to, we increasingly see our customers' needs, purchase behavior, and willingness to pay differ significantly by company size.
Speaker 3: We think this is an important lens through which to operate our business, so much so that we have organized our team internally and focused our 22 strategy around the North Star of serving companies with more than 100 employees.
We think this is an important lens through which to operate our business. So much. So that we have organized our team internally and focused our 'twenty two strategy around the Northstar observing companies with more than 100 employees.
Speaker 3: Specifically, we see the COVID consumption hangover disproportionately impacting companies with less than 100 employees.
Specifically, we see the COVID-19 consumption hangover disproportionately impacting companies with less than 100 employees.
Speaker 3: We saw these customers grow most aggressively during the pandemic. And while we believe the SMB market is still large and underpenetrated, normalised growth patterns will take a few quarters to work.
We saw these customers grow most aggressively during the pandemic and while we believe the SMB market is still large and underpenetrated normalized growth patterns will take a few quarters to work through.
Where companies with more than 100 employees, we see a sizable near term opportunity reflected in the demand within our existing user base sales pipeline customer conversations and logos won.
Speaker 3: For companies with more than 100 employees, we see a sizable near-term opportunity reflected in the demand within our existing user base, sales pipeline, customer conversations, and logos won.
Speaker 3: These are the customers who we believe we can grow with the most and who are expanding products we serve best.
These are the customers, who we believe we can grow with the most and who are expanding product suite serves best.
Speaker 3: So as we proceed in 2022, we will increasingly talk about the business through the lens of company size, initially with sales-assisted customers, and across our entire business over time.
So as we proceed in 2022, we will increasingly talk about the business through the lens of company size initially with sales assisted customers across our entire business overtime.
Speaker 3: We are also aligning our incremental capital allocation decisions through this lens, whether it be investment in our sales force, marketing spend, or R&D resources.
We're also aligning our incremental capital allocation decisions through this lens, whether it be investment in our sales force marketing spend or R&D resources.
Now onto our outlook for the year.
Speaker 3: For Q122, we expect revenue growth of 17 to 19%, with gross margins around 74%, and adjusted with a loss between 10 and 12%.
For Q1, 'twenty, two we expect revenue growth of 17% to 19% with gross margins around 74% and adjusted EBITDA loss between 10 and $12 million.
Speaker 3: For full year 2022, we expect revenue growth to be in the 15 to 18 percent range, with growth margins about 75 percent and adjusted dividend loss between 25 and 30 million for the year.
For full year 'twenty, two we expect revenue growth to be in the 15% to 18% range with gross margins about 75% and adjusted EBITDA loss between 25, and 30 million for the year.
Speaker 3: We expect 2022 to be another positive free cash.
We expect 2022 to be another positive free cash flow year.
Speaker 3: We expect our 15 to 18% revenue growth outlook for 2022 to be driven by sales-assisted revenue growth of well over 30%. And within sales-assisted, revenue from companies with more than 100 employees expected to grow at a significantly higher.
We expect our 15% to 18% revenue growth outlook for 'twenty two to be driven by sales assisted revenue growth of well over 30% and within sales assisted revenue from companies with more than 100 employees expected to grow at a significantly higher level.
Speaker 3: This is the natural evolution of our revenue mix to stickier, higher value customers.
This is a natural evolution of our revenue mix to stickier higher value customers.
Our expected growth rate for 'twenty, two is impacted by three things.
Speaker 3: First, the headwinds facing the smaller SMB customers as the...
The headwinds facing the smaller SMB customers as discussed earlier.
Speaker 3: Second, the anticipated variability of two key initiatives, enhancing our monetization model and updating our sales and marketing motion to become best in class.
The anticipated variability to keep initiatives enhancing our monetization model and updating our sales and marketing motion to become best in class.
Speaker 3: The ramp and success of these initiatives could have a significant impact on our growth trajectory for the second half of 2020.
The ramp and success of these initiatives could have a significant impact on our growth trajectory for the second half of the year.
Speaker 3: And finally, as we refocus our resources this year, we will actively deprecating the consumer-facing portion of our Magisto business, which we had acquired in 2019.
And finally, as we refocus our resources. This year, we will actively deprecating the consumer facing portion of our <unk> business, which we had acquired in 2019.
Speaker 3: we estimate the underlying growth, x-magister to be about 3% higher.
We estimate the underlying growth X might just start to be about 3% higher.
On expenses, our investment priorities for 'twenty, two have not changed if unit economics dictate leaning into investments to drive growth. We will continue to do so.
Speaker 3: on expenses. Our investment priorities for 2022 have not.
Speaker 3: If unit economics dictate leaning into investments to drive growth, we will continue to do so.
Speaker 3: On gross margins, we will continue our infrastructure optimization efforts to drive cost savings. But we also plan to reinvest those savings strategically in areas that drive future differentiation in video quality and video insights.
On gross margins, we will continue our infrastructure optimization efforts to drive cost savings, but we also plan to reinvest those savings strategically in areas that drive future differentiation in video quality and video insights at scale.
Speaker 3: So we don't expect gross margins to go materially in 2020.
So we don't expect gross margins to go up materially in 2022.
Speaker 3: On R&D investments, we intend to continue hiring to drive strategic product expansion and our pace of innovation.
On R&D investments, we intend to continue hiring to drive strategic product expansion and our pace of innovation.
Speaker 3: We have the benefit of a global presence with distributed R&D centers of excellence across the world and the subsequent ability to attract talent from wherever it may be.
We have the benefit of our global presence with distributed R&D centers of excellence across the world and the subsequent ability to attract talent from wherever it maybe.
Speaker 3: Our major area of investment in 2022 is in our go-to market.
Our major area of investment in 'twenty two is in our go to market teams.
Speaker 3: from building a more specialized sales force to expanding our sales support structure, including sales enablement, sales engineering, and customers.
From building a more specialized salesforce to expanding our sales support structure, including sales enablement and sales engineering and customer success teams.
Speaker 3: Much of these investments are staged and contingent on evidence of traction and success, though it will take some time for the full impact of this to materialize.
Much of these investments are staged and contingent on evidence of traction and success, though it will take some time for some of the full impact of this to materialize.
Speaker 3: Given these investments, we expect that adjusted with that to be negative in Q1 and for the full year.
Given these investments we expect adjusted EBITDA to be negative in Q1 and for the full year.
Speaker 3: We do expect to post positive free cash flow for the year, similar to 2021.
We do expect to post positive free cash flow for the year similar to 2021.
Speaker 3: With that, let's jump into Q&A. Yao Qiu, our Head of Investor Relations, will be moderating. So Yao, let's open it up for the first question.
With that let's jump into Q&A Yao Chew, our head of Investor Relations will be moderating so yeah, let's open it up for the first question. Please.
Speaker 1: As a reminder, please unmute yourself and turn on your video when called upon and limit yourself to one question. I want to follow up in the interest of time. Our first question comes from Brent Phil at Jeffries. Brent?
As a reminder, please UN mute yourself Antonio video when called upon and limit yourself to one question and one follow up in the interest of time. Our first question comes from Brent Thill at Jefferies Brent.
Good morning.
If we can just start with what has changed in the last 90 days for the new outlook.
Speaker 5: You know if we can just start with what's changed in the last 90 days for the new outlook. Investors have continued to hear a lower outlook from you almost every quarter since you've spun out.
Investors have continued to hear our lower outlook from you almost every quarter since you spun out.
Speaker 5: So many are asking, is there something going on in the market? Is it something competitive? Is it your own execution? If you can touch on that, if you could also touch on what's embedded in the guide, if you take a slightly more conservative view given the downward trajectory and guide. Thanks.
Many are asking is there something going on in the market is it something competitive.
Your own execution.
Did you can you can you touch on if you could also touch on what's embedded in the guide if you're taking a slightly more conservative view given.
Downward trajectory and guide thanks.
Thanks, Brian .
Speaker 2: Thanks, Brent. So this is our first time providing a full year outlook.
So this is our first time, providing our full year outlook.
Speaker 2: And what you're really seeing is, I think, a continuation of the key themes that we started to preview last quarter.
And what you're really seeing is I think a continuation of the key themes that we started to preview last quarter.
Speaker 2: Not seeing anything that changes our view on the market, market opportunity, Vimeo's ability to win over the long term, competition. It's really the three factors that Narayan just talked about. And really what we're seeing is a tale of two cities. We've got strength and momentum on one hand with larger companies. And we talked about that sales listed revenue growth being well over 30%. And then among larger companies being much faster growth still.
Not seeing anything that changes our view on the markets market opportunity <unk> ability to win over the long term.
Competition, it's really the three factors that Ryan just talked about and really what we're seeing is a tale of two cities, we've got strength and momentum on one hand with larger companies.
And we talked about that sales posted revenue growth being well over 30% and then among larger companies being much faster growth still.
Speaker 2: And that's being countered by some real pressure on the smaller customers. Some of that, you know, we saw on the summer kind of caught us by surprise. We had it baked it into our original view when we were going public. And that's certainly continuing and is more pronounced than we'd expected.
That is being countered by some real pressure on the smaller customers.
Some of that we saw in the summer kind of caught us by surprise, we haven't baked that into our original.
View, when when we were going public and Thats, certainly continuing and is more pronounced than we'd expected.
Speaker 2: The other two key factors are initiatives that we are embarking on, enhancing our monetization model, you know, optimizing our sales motion. These are all absolutely the right things to do. We want to be thoughtful about them. Hard to predict with precision exactly how they'll materialize throughout the year. But we do believe they'll be re-accelerators of our growth.
There are two key factors are initiatives that we are embarking on enhancing our monetization model.
Optimizing our sales motion. These are all absolutely the right things to do we want to be thoughtful about that hard to predict with precision exactly how they'll natera materialize throughout the year, but we do believe there'll be re accelerators of our growth and then the other change is that in an effort to focus except the north star.
Speaker 2: And then, you know, the other change is that in an effort to focus, you know, we set the North Star this year on serving companies greater than 100 employees. We have decided to deprecate the consumer facing portion of our Magisto business and the implication that that has.
This year on serving companies greater than 100 employees, we have decided to deprecate the consumer facing portion of our logistics business and the implications that that has.
Speaker 2: But underlying all of this, I think the key message from us is that we're seeing an exciting mix shift and there's a lot of things that are working. And ultimately, the validation that we have today in our ability to both serve large customers, the demand from those customers, and how that will over time move through our overall revenue growth and be a big driver for us in the future really hasn't changed.
But underlying all of this I think that came out that your losses that we're seeing an exciting next shift.
And Theres a lot of things that are working and ultimately you know the validation that we have today and our ability to both serve large customers the demand from those customers and how that will over time move through.
Our overall revenue growth and be a big driver for us in the future really hasnt changed.
Yes, specifically on the forecast Brent.
Speaker 3: Yeah, specifically on the forecast, Brent. The macro assumption that's going into the forecast is the working conditions will continue to normalize. People will be back to in-person events and activities, and we are not expecting any further acceleration of the business from Omicron or any other event like that.
Macro assumption that goes that's going into the forecast is the working conditions will continue to normalize people will be back to our in person events and activities and we are not expecting any further acts.
<unk> of the business from Omi crown or any other event like that in terms of business trends, we are assuming consistent trends that what we saw in Q4 and the early part of this year to continue for the rest of the year the purchasing behaviors of Smbs and large enterprises to remain essentially consistent with what we are seeing right.
Speaker 3: In terms of business trends, we are assuming consistent trends that what we saw in Q4 and the early part of this year to continue for the rest of the year. The purchasing behaviors of SMBs and large enterprises to remain essentially consistent with what we are seeing right now.
Speaker 3: So those are the macro assumptions that is going into the forecast.
Now so that's those are the macro assumptions that is going into the forecast in terms of the.
Estimate in itself the 15% to 18% that we gave as Angela mentioned, we are comfortable with that range based on the factors that we just talked about this is the best view of the business as we see right. Now obviously there are things that we can we have more control off and things that we have less control all the F&B headwind.
Speaker 3: As Anjali mentioned, we are comfortable with that range based on the factors that we just talked about. This is the best view of the business as we see right now. Obviously, there are things that we have more control of and things that we have less control of. The SMB headwinds that we talked about, that's not something we have a lot of control of. But the initiators that we talked about, the monetization and the investment in improving our go-to-market activities, we have more control of those. And the success and ramp of those initiators will have a significant impact in the growth rate on the second half of the year.
Headwinds that we've talked about that's not something we have a lot of control law, but the initiatives that we talked about the monetization and the investment in improving our go to market.
Activities those have we have more control of doors and a success and ramp of those initiatives will have a significant impact in the growth rate on the second half of the year.
Speaker 3: coming specifically on Q1, as you have seen the last two quarters, we have established that we have good visibility a quarter out, and so we can expect the same level of confidence in Q1 estimates that we have, outlook that we have given. Rest of the quarters, we will continue to update you as the year moves along.
Specifically on Q1 as you have seen in the last two quarters. We have established that we have good visibility quarter out.
So we can expect the same level of confidence in Q1 estimates that would be our outlook that we have given the rest of the quarters. We will continue to update update you asked the quad as the year moves at all.
Thank you.
Speaker 1: Thank you. Great, thanks. Next question from Corey Carpenter at J.P. Morgan.
Thanks next question from Cory Carpenter with Jpmorgan.
Speaker 5: Hey, thanks for the questions. I have two. Just hoping we could start out with more on the transition of Percy pricing, maybe where you are in the rollout, where your early learnings have been in next steps. And then secondly, if you could just talk a bit more about where you're seeing these headwinds specifically in the S&D business. And does this change your priorities or strategy at all for that business? Thanks.
Hey, Thanks for the question.
Just hoping you could start out with more on the transition of the per seat pricing.
Maybe where you are in the rollout what are your early learnings and Dan next steps and then secondly, if you could just talk a bit more about where you're seeing these headwinds, particularly in the SMB business.
Change your priorities our strategy at all.
Thanks.
Speaker 2: Thanks, Corey. So on the per-seat monetization update, as I said, we're feeling good. We're on track. As a reminder, it's a staged rollout. We're starting with our sales-assisted customers and really beta testing the new model with new sales-assisted customers.
Yeah. Thanks, Cory so on the per state monetization update you as I said, we're feeling good we're on track as a reminder, it's a staged rollout starting with our sales assisted customers and really beta testing the new model with new sales assisted customers and reception.
Speaker 2: And, you know, reception has been positive thus far. I think, you know, a couple of reasons. One, most of the decision makers and buyers in these large organizations are already used to buying software on a per seat basis. Makes total sense to them. And it's sort of embedded in the way that they think about software already. And then, of course, the way we've architected this, we're giving a lot of value up front and then also aligning our expansion and monetization with their success.
<unk> has been positive thus far I think a couple of reasons one most of the decision makers and buyers in these large organizations are already used to buying software on a per seat basis makes total sense to that I mean, it's sort of embedded in the way that they think about software already and then of course the way. We've architected. This we're giving a lot of value.
Upfront and then also aligning our expansion and monetization with their success.
Speaker 2: And so I think it's been positive. You know, I shared that for some of our largest customers, including that seven figure deal, the largest MEO Enterprise customer that we've had, that was using that new model.
And so I think it's been positive I shared that for some of our largest customers, including that seven figure deal the largest stimuli enterprise customer that we've had that that was using that new model.
Speaker 2: And then when I look at some of the conversations our sales team is actively having now, you know, we're seeing examples where you have a Fortune 1000 company that wants to have several thousand employees contributing content to a video library. Well, in our old model, that would have been a 35k deal.
And then when I look at some of the conversations our sales team are actively having now.
Seeing examples where you have a fortune 1000 company that wants to have several thousand employees contributing content to a video library.
Our old model that would've been 35 K deal.
Speaker 2: But now with the sort of approach of here's all the things that you can do very easily and then we'll charge per seat, you know, with those thousands of employees, that becomes a six-figure deal. And so I think that's sort of the early proof points that we're feeling good about.
But now with the sort of approach of here's all the things that you can do.
Very easily and then we'll charge per seat.
Feet with those thousands of employees that becomes a six figure deal.
And so I think that that's sort of the early proof points that we're feeling good about are.
Speaker 2: We have to roll this out obviously to all of our new enterprise and sales-assisted customers and then look at how we'll roll it out to existing customers. And then on the self-serve side, we're going to be doing a bunch of growth experiments and testing. There's a bunch of variables there to really work through. And so that's one where, as we've said, that's going to be a longer kind of multi-quarter journey. And hopefully we'll look to realize benefits as soon as possible, but not at the expense of doing it right and doing it thoughtfully.
We have to roll this out obviously to all of our new enterprises themselves listed customers and then look at.
How will how will roll it out to existing customers and then on the self serve side, we're going to be doing a bunch of growth experiments in testing.
You know, there's a bunch of variables there to really work through and so that's one where as we've said that's going to be a longer kind of a multi quarter journey.
And you know hopefully we will look to realize benefits as soon as possible, but not at the expense of doing it right and doing it thoughtfully.
Speaker 2: And then on the SMB side, where we're seeing headwinds, we talked about last year, we talked about phase and fitness verticals. We also talked about live streaming as a use case where we saw a big spike up in demand. It's coming down. Again, worth noting demand is still three X higher than it was pre-pandemic.
And then on the SMB side, you know where were seeing headwinds we talked about last year, we talked about faith of fitness verticals. We also talked about live streaming.
As you know a use case, where we saw a big spike up in demand, it's coming down again worth noting demand is still you know three X higher than it was pre.
Pre pandemic.
Speaker 2: But for sure, we're just continuing to digest that as we move through the year.
But for sure we're just continuing to digest that as we move through the year.
Speaker 2: And, you know, I think ultimately our view is the SMB market is still one that we think is large. There are 300 million small businesses out there. We think any business that has a website or a social media account or an online store.
And I think ultimately our view is the SMB market is still one that we think is large there are 300 million small businesses out there. We think any business that has a website or social media count or an online store.
Speaker 2: can and should and will use video. It's why you're seeing us invest in partnerships. You know, we're seeing great traction with social media platforms, Facebook, TikTok.
Can and should and will use video.
It's why you're seeing us invest in partnerships, we're seeing great traction with the social media platforms, Facebook Tictoc youre going to hear more from us.
Speaker 2: You're going to hear more from us in the future around deepening those relationships, particularly with TikTok.
In the future around deepening those relationships, particularly with Tic Toc.
Speaker 2: So still a lot of potential and excitement around that market.
So still a lot of potential and excitement around that market. I've also said that from a priority perspective, we have to focus and you know on the execution side, we're doing a lot to improve our focus and our discipline. That's you know from bringing in the right leaders who have done this before and can help us be successful, but also we've.
Speaker 2: I've also said that from a priority perspective, we have to focus. And, you know, on the execution side, we're doing a lot to improve our focus and our discipline. That's, you know, from bringing in the right leaders who have done this before and can help us be successful. But also, we've got to say here's the North Star. And this year, we have said it's larger companies, specifically companies greater than 100 employees.
Got to say here is the north star and and this year. We have said, it's larger companies specifically a company is greater than 100 employees.
Speaker 2: The good news is if you think about most of our investments, if we're able to build great products to help employees at large companies use video, we do believe that will provide similar value to small businesses. And the reason for that is our special sauce is enterprise-grade quality and capabilities with an intuitive consumer U.S.
The good news is if you think about most of our investments if we're able to build great products to help employees at large companies use video. We do believe that will provide similar value to small businesses and the reason for that is our special sauce is enterprise grade quality and capabilities with an intuitive.
Consumer you ask right. So we're already building tools that any employees is not an expert can use and we think that that will translate to the SMB market. So punchline nothing's changed around the market opportunity were pumped about F. N B S too, but we have to pick the areas. We must win out this year and we are taking a more focused approach.
Speaker 2: So we're already building tools that any employee who's not an expert can use, and we think that that'll translate to the F&M B Mark.
Speaker 2: So punchline, nothing's changed around the market opportunity. We're pumped about SMBs too, but we have to pick the areas we must win at this year. And we are taking it more focus.
Speaker 1: Great, thank you. Next question from Justin Patterson at KeyBank. Justin?
Great. Thank you next question is from Justin Patterson Keybanc Justin.
Great. Thank you very much an entre Lee and congratulations to you and your families.
Speaker 5: Great. Thank you very much. And Anjali, congratulations to you and your family. That's exciting news. Thank you.
I think there's two.
If I can the first one is just around investment given your learnings around the post pandemic demand. How is your view on the LTV to CAC changed and how do you think about the right level of organic investment in the business. That's number one and then number two in the letter you did highlight some nice progress on it.
Speaker 5: Given your learnings around the post-pandemic demand, how has your view on an LPD to CAC changed and how do you think about the right level of organic investment in the business? That's number one.
Speaker 6: And then number two, in the letter, you did highlight some nice progress on upselling customers with the all-in-one solution, getting multiple products per customer.
Upselling customers with the all in one solution and getting multiple products per customer where are you in that journey today and what's the right motion to continue that momentum. Thank you.
Speaker 6: where are you in that journey today, and what's the right motion to continue that momentum? Thank you.
Speaker 3: Yeah, I'll take the LTV2 question first and then Anjali you can cover the other part. Justin, on the LTV2CAC we still have very healthy economics on customer acquisition metrics.
Yes, I'll take the LTV to questions first and then Angela you can cover the.
Park.
Justin on the LTV to CAC, we you still have a very healthy economics on customer acquisition metrics.
Speaker 3: We are, as we have talked about many times, we are very focused on unit economics.
We are as we have talked about many times, we are very focused on unit economics.
Speaker 3: We have improved our gross margin almost 10 percentage points in the last four quarters. Our LTV2CAC stays very healthy. That's the reason why we are continuing to invest in expanding both our sales and marketing reach to reach new customers, especially customers who are north of 100 employees, with more than 100 employees. So very comfortable with our LTV2CAC levels and we'll continue to invest as we see huge untapped market that we can expect.
<unk> improved our gross margin almost 10 percentage points in the last four quarters, our LTV to CAC stays very healthy. That's the reason why we are continuing to invest in expanding both our sales and marketing.
<unk> reached to reach new customers, especially customers, who are north of 100 employees with more than 100 employees. So very comfortable with our LTV to CAC levels and will continue to invest as we see huge untapped market that we can we can expand into.
Speaker 2: Yeah, on the multi-product piece, I'll say something more broadly, but I think, Mark, we should walk through some of the details of how we're thinking about it.
Yeah.
Multi product peso I'll say something more broadly, but I think mark you should walk through some of the details of how we're thinking about it but definitely you know this has been a key part of our strategy from day. One is the belief that we want every employee using more video more vimeo more often and we believe that's the way to both open up them.
Speaker 2: more Vimeo more often, and we believe that's the way to both open up the market because you want video to be used everywhere and it has to be frictionless and easy, as well as it's a great driver for us. And what you saw is that that's happening. We've got two new products in the last six months already driving much clearer adoption. And that's important for a couple reasons. One, obviously, is the more products you're using, we see that as a leading indicator of stickiness and retention, and two, we're diversifying away from live streaming, which was really our original wedge into organizations, which is sort of your least sticky product. So I think very good signals there, and I think Mark can add more about what we are ultimately looking to do. Yeah, I'd just say historically, we've really been selling this live streaming solution.
Market, because you want video to be used everywhere and it has to be frictionless and easy and as well as it's a great driver for US and you know what you saw that that that's happening.
Now we've got two new products in the last six months already driving much clearer adoption.
And that's important for a couple of reasons. One obviously the more products are using when we see that as a leading indicator of stickiness and retention and two we're diversifying away from live streaming which was really our original wedge into organizations, which is sort of your least sticky products. So I think very good.
Signals, there and I think mark can add more about what we are ultimately looking to do.
Speaker 4: Yeah, I just say historically we've really been selling this live streaming solution. And that means that
Yeah, I'd, just say historically, we've really been selling this live streaming solution.
And that means that really our deployments within organizations, where one or two people marketers or video producers that were handling the live streaming and then a number of yours and.
Speaker 4: really are deployments within organizations where one or two people, marketers or video producers, that were handling the live streaming, and then a number of viewers. And when we started developing the video library strategy, the goal was really to penetrate multiple departments, multiple roofs within the organization. And that's what you're seeing happen. That's what you're seeing with this multi-product adoption, is that we are really able to penetrate and serve as this corporate video library solution, enable upload of video content creation, of video content within multiple groups and departments.
When we started developing the video library strategy. The goal was really to penetrate multiple departments multiple groups within the organization and that that's what you're seeing happen. That's what you're seeing with this multi product adoption is that we are really able to penetrate and serve as this this corporate video library solution enable upload a video content creation of video content.
Within multiple groups and departments.
Speaker 4: So in terms of the go to market, I think that was the second part of your question. From pricing and packaging perspective, we're really going to both bundle a number of functionality within each seed. So for example, our contributor seed will have the ability to upload, to create, to record content. It won't have live streaming. So we're not going to bundle everything into the same seed that we are going to do bundling. We're also going to have multiple skews, depending on the use case that the customer has. And then I.
So in terms of the go to market I think that was the second part of your question from a pricing and packaging perspective, we're really going to both bundle a number of functionality within each seats. So for example, our contributor seed will have the ability to upload to create to record content. It won't have live streaming so we're not going to bundle everything into.
The same seats, but we are going to do bundling. We're also going to have multiple skus, depending on the use case the customer.
Has.
And then I would say in terms of really the strategy to expand.
Speaker 4: really the strategy to expand with an organization. The biggest levers for us are in product levers. You really, you know, product-led growth levers where we have employees within organizations that are inviting their team members to various product actions to join the team and use the product.
Within organization the biggest levers for us are in product levers you really you know product led growth.
Levers, where we have employees within organizations that are inviting their team members to various product product actions to join the team and use our products give you. An example today if you I'll put a video on Vimeo when you share it with a colleague very often youll take the euro Sendai Urls by email to your colleague.
Speaker 4: I'll give you an example. Today, if you upload a video on Vimeo and you share it with a colleague, very often you'll take the URL.
Speaker 4: Send that URL by email to your colleague and they'll just be able to watch the video content.
Will just be able to watch the video content, we're implementing a very simple way, where you can add a team member directly to the video so that they can come in and start commenting on the video and contributing.
Speaker 4: We're implementing a very simple way where you can add a team member directly to the video so that they can come in and start commenting on the video and contributing directly and by that action they become a team member directly. Those are the kinds of viral loops that we'll use to really expand effectively within organizations.
Directly and they become by by the action they become a team member.
So that those are the kinds of viral loops that we'll use to really expand effectively within organizations.
Speaker 1: Great, thank you. Next question, Tom Champion from Piper Sandler.
Great. Thank you next question Tom champion from Piper Sandler.
Tom.
Speaker 7: Great, thanks. On Julia, I'd like to learn a little bit more about the Salesforce giving your leaning into the enterprise. Maybe if you could talk about whether or not you were able to hit your...
Great. Thanks.
Hi, Julien I'd like to.
A little bit more about the sales force given youre leading into the enterprise, maybe if you could talk about whether or not you were able to hit your <unk>.
Speaker 7: Salesforce headcount goals in 21 and what that looks like for 22 any
Salesforce headcount goals in 'twenty, one and what that looks like for 'twenty two any any.
Speaker 7: process changes you're making next year.
Process changes, you're making next year.
Speaker 7: Mark, I'd love to hear from you a little bit about what you're most excited about from a product development perspective. What do you think is the greatest enterprise video product need in kind of the post pandemic world? Thank you.
Mark I'd love to hear from you a little bit about what you're most excited about from a product.
Development perspective.
Perspective, what do you what do you think is the greatest enterprise video product need in kind of the <unk>.
Pandemic world. Thank you.
Speaker 2: Great, thanks Tom. So on the sales force, yeah, we, you know, we set out last year to roughly double the size of our sales team. We did do that. And as we enter this year, we do expect to continue to grow our sales force. And you know, that's for a variety of reasons. One, we're seeing validation and traction, particularly among larger companies, based on the signals I shared in some of the deals that we're doing. Two, we just launched these new products, and we want to make sure we've got the people to go out and sell them. Yeah.
Great. Thanks, Tom.
On the sales force Yeah. We you know we set out last year to roughly double the size of our sales team we did do that.
And as we enter this year, we do expect to continue to grow our sales force and that's for a variety of reasons, one we're seeing validation traction, particularly among larger companies.
Based on the signals I shared some of the deals that we're doing to we just launched these new products and we want to make sure. We've got the people to go out and sell them.
Speaker 2: There's no question we're not best in class yet on our go-to market motion. I've talked about it before and some of that is just...
There's no question, we're not best in class yet on our go to market motion I've talked about it before and some of that is just evolution and sort of DNA.
Speaker 2: evolution and sort of DNA. So there is a lot of good execution work happening right now to get to best in class. It's a key priority. Our new chief revenue officer, Eric, you know, that's one of the things he's really focused on. And there's a bunch of places where we're taking, I think, some good, good improvements. One is, as I mentioned, specializing our sales force.
There is a lot of good execution work happening right now to get to best in class at the key priority, our new Chief revenue Officer, Eric You know that's one of the things. He is really focused on and Theres a bunch of places where we're taking.
I think some good good improvements one is as I mentioned specializing our salesforce. So now youll have folks who are really optimize and trained and gold on different types of companies that have different purchase behaviors and buying patterns.
Speaker 2: So, you know, now you'll have folks who are really optimized and trained and gold on different types of companies that have different purchase behaviors and buying patterns.
Speaker 2: getting a lot better at how we identify and qualify many of the companies in our base and feed them in a very automated way to our sales team to quickly convert them based on actions that they've taken. And then one of the ones I'm most excited about is customer success. We didn't have a customer success motion several months ago. We've stood up that team now. We have a great leader there. And it's the first time that you're gonna have a whole kind of group of people whose job on very specific metrics is.
Getting a lot better at how we identify and qualify many of the companies in our base and feed that in a very automated way to our sales team to quickly convert them based on actions that they've taken and then one of the ones I'm. Most excited about is customer success, we didn't have a customer success motion.
Several months ago, we stood up that team now we have a great leader there.
And it's the first time that youre going to have a whole kind of group of people whose job. It vary on very specific metrics is getting customers quickly on boarded getting them to the fastest time to value getting them to get utility from our products and I see this is such an important thing because ultimately for that monetization strategy to work we've got.
Speaker 2: getting customers quickly onboarded, getting them to the fastest time to value, getting them to get utility from our product.
Speaker 2: And I see this as such an important thing because ultimately for that monetization strategy to work, we've got to be great at it. And again, every signal we see is that when we can get our products in the hands of employees and teams, companies are happy.
It'd be great at it.
And again every signal what you see is that when we can get our products in the hands of employees and teams companies are happy.
Speaker 2: And so I think you'll definitely see more work there.
And so I think you'll definitely see more work there.
Speaker 2: You know, it's why one of the things we talked about is we gotta be thoughtful. It's gonna take us a couple quarters to get this right, but very committed and very focused to doing so. And I feel very confident in our ability to do.
It's why one of the things we talked about is we gotta be thoughtful it's going to take us couple of quarters to get this right.
But very committed and very focused on doing so and I feel very confident in our ability to do it.
Speaker 4: So on the question about what I'm most excited about for Enterprise Product, it's difficult you're asking me to pick a favorite now.
So on the question about what I'm most excited about for enterprise product. It's difficult you are asking me to pick a favorite now.
So let me just first tell you a little bit about our product philosophy, maybe how we think about product strategy.
Speaker 4: So let me just first tell you a little bit about our product philosophy, maybe how we think about product strategy. We think about it as really a balance of three types of initiatives. The first type is really large bets to go after entirely new addressable markets that we're not playing in right now.
We think about it as really a balance of three types of initiatives. The first type is really large bets to go after entirely new addressable markets that we're not playing in right now the second type of initiative is new features new products to compete better in the markets. We are active in already in the third.
Speaker 4: The second type of initiative is new features, new products to compete better in the markets we are active in already. And the third type of initiative is really improving our offering to make our customers more successful, ultimately retain them better. And really it's about balancing these three types of initiatives to have the biggest business in.
The third type of initiative is really improving our offering to make our customers more successful ultimately retain them better and really it's about balancing these three types of initiatives to have the biggest business impact now.
Speaker 4: Now, back to your question, I think that's...
Now back to your question I think thats.
Speaker 4: I think it's really that first pillar that I talked about, about unlocking knowledge within organizations.
I think it's really that first pillar that I talked about about unlocking knowledge within organizations.
Speaker 4: The reality is there's still too much friction today in organizations to share knowledge.
Reality is there still too much friction today in organizations to share knowledge.
Speaker 4: And I'm confident with what we have in our roadmap that we will be able to truly unlock.
And.
I am confident with what we have in our roadmap that we will be able to truly unlock for every employee inside organizations to create video content daily ultimately for the goal of sharing information more effectively and not only that unlocking really that content inside of this these vision.
Speaker 4: for every employee inside organizations to create video content daily, ultimately for the goal of sharing information more effectively.
Speaker 4: And not only that, unlocking really that content inside of these videos and make it more discoverable, more searchable, and really help disseminate the information within organizations effectively. That's probably the area I'm most excited about.
Does it make it more discoverable more searchable.
And really help disseminate information we didn't organizations effectively that's probably the area I'm most excited about but its hard to pick a favorite.
Thank you.
Speaker 1: Great thanks. Next question from Brian Fitzgerald at Wells Fargo.
Great. Thanks next question from Brian Fitzgerald, with Wells Fargo, Brian .
Speaker 8: Thanks, guys. Wanted to ask a couple of follow-ups first around the enterprise sales cycles, any update in terms of how that's lengthening as you extend the enterprise as you move into verticals. And then related questions, the letter you talk about, slower growth kind of admits this makes shift to stickier enterprise dollars. I may have this misses. Can you give us an update on enterprise net revenue retention?
Thanks, guys.
Wanted to ask a couple of follow ups first around the enterprise sales cycles any any update in terms of how.
Thats lengthening as you extended the enterprise as you move into verticals and then related question in the letter you talk about slower growth.
And Mitch this mix shift to stickier enterprise dollars.
This missed this can you give us an update on enterprise net revenue retention.
Speaker 2: Sure. Thanks, Brian . I'll take the first one. On the sales cycles, you know, there's a couple of things going on. If you remember in the summer, we had experience sort of this.
Sure. Thanks, Brian I'll take the first one on the sales cycles, you know Theres a couple of things going on if you remember in the summer we had experience sort of this.
Speaker 2: longer sales cycle than we had expected counter to seasonality. And good news is that seems to have, we seem to have come away from that. And actually sales cycles have sort of gotten back to the four week ish average that we were seeing.
On a longer sales cycle than we had expected counter to seasonality and good news is that seems to have which seems to have come away from that and actually sales cycles have sort of gotten back to the the <unk>.
Four week ish average that we were seeing but of course as you know now that we're much more focus on larger companies. We do expect and are very natural and appropriate way those sales cycles for those larger companies to get longer and we're very happy to take that tradeoff to go from a five figure deal to a seven figure deal.
Speaker 2: But of course, you know, now that we're much more focused on larger companies, we do expect in a very natural and appropriate way the sales cycles for those larger companies to get longer. And we're very happy to take that trade off to go from a five figure deal to a seven figure deal. This is where I think specializing the sales force is helpful because we are going to be really carefully tracking. And what we want is obviously.
This is where I think specializing the sales force is helpful. Because we are going to be really carefully tracking and what we want is obviously sales cycles to stay super short and tight for smaller.
Speaker 2: sales cycles to stay super short and tight for smaller customers and deployments. And we don't see any reason that that wouldn't be the case. And then as we move up market, you know, we're talking probably, you know, sales cycles getting longer by days, maybe weeks.
Customers and deployments and we don't see any reason that that wouldn't be the case and then as we move up market.
Now, we're talking probably you know sales cycles getting longer by days, maybe weeks, but certainly not months and going into kind of what you might think of as a traditional enterprise enterprise play and part of that is because you know the demand and an urgency for video is there from the largest companies in the world we're seeing it.
Speaker 2: but certainly not months and going into kind of what you might think of as a traditional enterprise.
Speaker 2: play and part of that is because you know the demand and urgency for video is there from the largest companies in the world we're seeing it. Our product is turnkey and the way you can use it and understand it and have your team start to adopt it is turnkey.
Our product is turnkey.
And the way you can use it and understand it and have your team start to adopt it at turnkey it's.
Speaker 2: It's not high touch customized. And we know there's a lot more we can do to get our sales cycles to be tighter. Just learning how to navigate with procurement teams and IT and that whole process. We go like, we're still very early. So I think the combination in some of all of this is...
It's not high touch customized and we know there's a lot more we can do to get our sales cycles to be tighter and just learning how to navigate with procurement teams and and you know I T and that whole process legal like we're still very early so I think the combination in some of all of this is you know.
Speaker 2: you know, no issues on sales cycle. There will be natural lengthening that we are very comfortable with. And I think we'll see a signal that we are also successfully moving on market over time. On the end of the
No issues on sales cycle, there will be natural lengthening that we are very comfortable with that and I think we'll see as a signal that we are also successfully moving up market over time.
On the MLR question I'll take that Brian So when we talk about digesting. The Colgate comps were not just talking about revenue growth rates were talking about a variety of things and that includes an IRR. If you remember at the peak of the pandemic lot of businesses all were purchased assuming a higher level of demand and what we're seeing is that.
Speaker 3: So when we talk about digesting the COVID comms, we are not just talking about revenue growth rates. We are talking about a variety of things and that includes NRR. If you remember at the peak of the pandemic, a lot of businesses over purchased, assuming a higher level of demand.
Speaker 3: And what we are seeing is that those customers are staying with us. Our logo retention is actually taking up quarter over quarter. And even in Vimeo Enterprise, our flagship offering, we are very pleased to see higher logo retention. But what we are seeing also is that they are not expanding as much as we would want them to. So new customer acquisition is going very well, as you saw, as you heard from Anjali about the large retailer. The logo retention is doing better, but the retention is life.
Those customers are staying with us our logo retention is actually ticking up quarter over quarter and even in Vimeo enterprise. Our flagship offering we are very pleased to see higher logo retention, but what we are seeing also is that they are not expanding as much as we would want them too. So new customer acquisition is going very well as you saw but as you heard from Anthony.
About the large.
We tailor the logo retention is.
Doing better, but the retention is lighter.
Speaker 3: So how do we get over this? One, as we go past the COVID comms and as the revenue start re-accelerating, we do expect NRR to come up. And if you ask me what gives me that confidence, I would say a couple of things. One, the fact that large enterprises like the one we talked about implementing or buying Vimeo and deploying it to thousands of hundreds of thousands to millions of employees, that's a very sticky use case using live.
So how do we get over this.
As we go past the Colgate comps and as the revenue start re accelerating we do expect MLR to come up and if you asked me what gives me that confidence I would say a couple of things one.
The fact that large enterprises like the one we talked about.
Implementing our buying.
Buying V meal and deploying it to thousands of hundreds of thousands to millions of employees that is a very sticky use case using library. The second thing I would say is you signed can you talk about multi product adoption, we have gone up quite significantly in terms of our customers using more of vimeo products those are.
Speaker 3: The second thing I would say is you saw Anjali talk about multi-product adoption. We have gone up quite significantly in terms of our customers using more of Vimeo products. Those are really green shoots that tells us that NRR is going to continue to improve once we get over these, the COVID cons and once we start re-accelerating the revenue. So we do expect NRR to get back up in the second half of the year. We are just going through this digestion process.
Really green shoots that tells us that NR or who is going to continue to improve once we get over these the.
Colby Comms and once you start reactivating the revenue. So we do expect that ought to get back up in the second half of the year. We are just going through this transition process right now yeah, and I would just add Ryan that are the two leading indicators I'd really point you to the chart. We shared in the letter that shows the percentage of Vimeo enterprise customers that are that are adopting.
Speaker 2: Yeah, and I would just add, Ryan, that the two leading indicators I'd really point you to, the chart we shared in the letter that shows the percentage of Vimeo Enterprise customers that are that are adopting multi products. We think that's a great leading indicator for NRR.
Multi products, we think that's a great leading indicator for IRR and then we shared in the past and continues to be true that.
Speaker 2: And then we shared in the past and continues to be true that our customers who do adopt a video library, we do see a much higher percentage signing multi-year contracts. So a couple very clear indicators that, you know, as we again diversify away from live streaming to stickier use cases, we'll see it in that metric over time.
Our customers, who do adopt video library, we do see a much higher percentage.
Signing multiyear contracts. So a couple of very clear indicators that you know as we again diversify away from live streaming to stickier use cases, we'll see it we'll see it in that in that metric over time.
Got it thanks guys.
Speaker 1: Thank you. Next question from Max Faith at Cowan.
Thank you and next question from Max space at Cowen.
Speaker 7: Hey, thanks. Just to maybe just a little on timing, how should we think about the pacing this year between the marketing and product investments, if at all? And then maybe how should we think about margins on kind of a longer term basis? And then just kind of following up on the C phase pricing. How many of your customers do you think are a good candidate for that model? Is the goal there to get all sales assisted customers on that model? And then maybe just how should we think about the timing and for that transition? Thank you.
Hey, thanks.
Just to maybe just a little on timing how should we think about the pacing this year between the marketing and product investments if at all and then.
Maybe how should we think about margins and kind of a longer term basis.
And then just kind of following up on the seat based pricing.
How many of your customers do you think are a good candidate for that model is the goal there to get all sales assisted customers on that model and then maybe just how should we think about the timing for that transition.
Speaker 3: Let me take the first question about investments and our structure. Nothing has fundamentally changed about how we think about our business. We do expect to continue to lean in and invest where the unit economics so dictate. In terms of investments, as I talked about earlier, the biggest area of investment this year is going to be in our sales and marketing area. We believe that the market is still very under-penetrated and we want to continue to invest to capture that market as quickly as possible.
Yeah, Let me take the first question about our investments and our structure nothing has fundamentally changed about how we think about our business. We do expect to continue to lean in and invest where the unit economics, so dictate in.
In terms of investments as I talked about earlier the biggest area of investment this year is going to be in our sales.
Marketing area.
We believe that the market is still very underpenetrated and we want to continue to invest to capture that market as quickly as possible, we will be investing in R&D as well. It is we are the market leaders on our technology and we want to be and want to stay at the top of the technology chain. So we will be investing in both these areas.
Speaker 3: We will be investing in R&D as well. It is we are the market leaders on our technology and we want to be and want to stay at the top of the technology chain. So we will be investing in both these areas. We would expect some leverage coming out of G&A, but this we see this as another investment year. The worst thing we can do is to take our foot off of the investment.
We would expect some.
Leverage coming out of DNA, but this we see this as another investment year. The worst thing. We can do is to take our foot off of the <unk> invest.
Investment in federal.
Speaker 3: Was there another question around investments?
Was there another question around investments.
Speaker 7: I think you covered it.
I think you've covered it and then just.
Yes, just to see desperation.
Yeah, I mean, I think your question was really about.
Speaker 2: Yeah, I mean, I think your question was really about how many of our users do we ultimately think will be ripe for this kind of model and how long is it going to take us to reach all of them. We definitely think that the use of video, the utility of video is highly collaborative.
Many of our users do we ultimately think will be right for this kind of model and how long is it going to take us to to reach all of them in.
We definitely think that the use of video of the utility of video is highly collaborative.
Speaker 2: And we kind of shared some of the metrics we're looking at in terms of the top of the funnel, the number of business domains, the number of users on each business domain. And there's quite a lot of companies within our user base.
And we kind of shared some of the metrics. We're looking at in terms of the top of the funnel the number of business domains. The number of users on each business domain and there's quite a lot of of companies within our user base.
Speaker 2: that we think are of a size. We've defined it as greater than 100 employees, where it's really, really critical for them to have multiple team members in order to get value from our platform. And that we think exists not just on the sales assisted side but also on the self-serve side. And we see it, we have a bunch of free business domains and users there too. So it's a sizable number. We think even within our existing base alone, there's enough potential customers for us to feed our growth for a long time.
That we think are of a size we've defined it is greater than 100 employees, where it's really really critical for them to have multiple team members.
In order to get value from our platform and you know that we think exists not just on the sale of assistance side, but also on the self serve side and we see it we have a bunch of freight business domains and users.
They're too so it's a sizable number we think even within our existing base alone. There is enough potential customers for us to feed our growth for a long time and so it's really it comes down to how quickly we can unlock that and you know the unlocks there it's not just the monetization model.
Speaker 2: And so it really comes down to how quickly we can unlock that. And, you know, the unlocks there, it's not just the monetization model. You know, it is the product itself. And Mark talked about our products really being our marketing and how we can, you know, inherently when you create a piece of content to share it within a company, you want to share it with other people. And so there's this opportunity for many other people then to then touch the Vimeo product. And so we're building in these viral.
Is the product itself and Mark talked about our products really being our marketing.
How we can you know inherently when you create a piece of content to share it within a company you want to share it with other people and so there is this opportunity for many other people that have to then touch the vimeo product and so we're building in these viral loops and in product triggers to be able to naturally create that.
Speaker 2: and in-product triggers to be able to naturally create.
Speaker 2: that that expansion. And so, you know, from where we sit, we think a very significant portion of of employees and companies in the world are going to need and find value in this model. And we think that the best way for to get those customers is actually going to be just through the product itself.
Expansion and so you know from where we said we think a very significant portion of of employees and companies in the world, they're going to need and find value in this model and we think that the best way for CIT to get those customers is actually going to be just through the product itself.
Okay.
Speaker 1: Thank you. Next question from Nick Cronin at Truist.
Okay. Thank you next question from Nick Cronin of Trust.
Speaker 9: Hi, this is Nick Cronin on for Yousef. Thanks for taking the question. Just one last one for me. Again, I'm on the revised guidance and headwinds to growth. Again, I think you talked about it, but how do we know it's not a product to market fit issue? Thanks.
Yes, Hi, this is nicole.
Thanks for taking the question.
Just one last one for me.
Hey, Dan on the revised guidance and headwinds to growth.
Again, I think you've talked about it but how do we know it's not a product issue.
Thanks.
Speaker 2: I'll give you my thoughts and Mark jump into on this one. Because we see it in in the way our product is being used by the customers that have been able to get access to it. And that sounds like a really simplistic answer. It's not meant to be, you know, I think we tried to lay out in the letter some of the things that we're seeing but NPS score strong, lot of healthy, good, frequent monthly active engagement from teams within the product.
I'll give you my thoughts.
And Mark.
Mark.
Jumping to on this one.
Because we see it in in the way our product is being used by the customers that have that have been able to get access to it and if that sounds like overly simplistic answer it's not meant to be.
We tried to lay out in the letter some other things that we're seeing but NPS scores strong lot of healthy good frequent monthly active engagement from teams within the product logo retention as we've shared has been steady and kicked off and Vimeo enterprise.
Speaker 2: logo retention as we've shared has been steady and ticked up in Vimeo Enterprise.
Speaker 2: And then, you know, we're seeing it from the examples that were of the customers we're signing. You know, to have one of the largest companies in the world want to use Vimeo for millions of their employees just based on some of these new products we've launched in the last six months.
And then you know we were seeing it from the example that are that were of the customers were signing it or to have one of the largest companies in the world.
Want to use vimeo for millions of their employees.
Just based on some of these new products, we've launched in the last six months.
Speaker 2: is I think a really great sign. And what's interesting is the more that we talk to these customers, they wanna do even more with video. They're asking us for a lot of the things that are already kind of on our roadmap. So we just see very tight, I would say, sort of consistent validation between our hypotheses and the signals that we've seen and then what we actually hear from customers. So that's what we're trying to do.
A really great sign and what's interesting is and the more that we talk to these customers. They want to do even more with video they're asking us for a lot.
All of the things that are already kind of out our roadmap. So we just see very tight I would say.
Sort of a consistence validation between our hypotheses and the signals that we've seen and then what we actually hear from customers.
Great did you have a follow up question Nick.
Speaker 1: That's all for me. Thank you. Great, thank you. With that, I'm seeing no further questions in queue. I'm going to turn it back to Anjali now for closing remarks.
That's all for me. Thank you great. Thank you.
With that I am seeing no further questions in queue.
I will turn it back to Andrew for closing remarks.
Speaker 2: All right, thanks Yao. I'll give you guys a few final takeaways from us today. Nothing has changed in our TAM, our market opportunity.
Alright. Thanks.
Yeah.
I'll give you guys a few final takeaways from us today.
I think has changed in our Tam our market opportunity.
Speaker 2: We think businesses are very early in their video adoption curve. We have a winning product, we're powering video for work, and we're bringing a new level of focus, rigor, and discipline to how we execute this year so that we can capitalize on that position.
We think businesses are very early in their video adoption curve, we have a winning products powering video for work and we're bringing a new level of focus rigor and discipline to how we execute this year. So that we can capitalize on that position.
Speaker 2: Two, there's a tale of two cities going on in our business. It is weighing down our overall growth, but underneath the surface is an exciting mix shift that will play out over time. And we've got clear validation in our most strategic areas, product expansion, customer wins, the right leading indicators, and we'll work to share more of them with you as we progress on this journey. So I look forward to speaking with many of you soon.
Two there's a tale of two cities going on in our business. It is weighing down our overall growth, but underneath the surface is an exciting mix shifts that will play out over time.
And we've got clear validation in our most strategic areas product expansion and customer wins, the right leading indicators.
We will work to share more of them with you as we progress on this journey.
I look forward to speaking with many of you soon and thanks for joining us.
Okay.
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