Vimeo Inc. Q1 2023 Earnings Call

We said over time thanks.

I can say it take the industry point, which is we don't have any specific industries that we are focusing on in self serve we do focus on those two use cases I talked about so businesses of any size that want to market using video they want to create video and put it on their website or social media or they want to run it.

Vance.

And then employee communication, so businesses that want to train and enable their employees using video or engage their employees using video and what we see and we have looked at the long tail of our user base. We have nearly 300 million users on the platform registered users what I will tell you is it is remarkably consistent.

On those two use cases and it is across every industry. You can imagine every business every company and it think that speaks to the addressable market and the tailwind is more broadly in the medium.

And then in terms of <unk>, Let me just first talk about the enterprise.

So it's been running in and around the $20000 range on <unk> for quite a while now it's a combination of the new customers. We bring on and then as we bring up prices for customers over time I think that will continue because we are quite rapidly bringing on new customers. In addition to growing customers. We have that said when we look at our price performance versus almost any other.

Set of tools in the market, we look at the way our our platform can consolidate multiple vendors that customers have we certainly believe our pool is an opportunity for our company and then we're going to continue to have an opportunity to bring people up from that range. So that's been enterprise.

On the software side, we believe we also have an <unk> opportunity, particularly as that market moves more towards businesses in terms of our customer base.

So we feel like that's a nice opportunity for us as well we are always in self serve testing pricing and looking at new ways to make sure that we've got to the optimum optimal mix of price and performance for our customer base and we continue to do that actively here in 2023, just one stat I want to highlight on that last point is.

When we look for example at what self serve users do on the platform. What we see is that if a user is not just uploading a video, but using one of our newer creation tools. For example, they are driving a four five times higher bookings.

So we do have a very clear view that there are higher value customers with a higher willingness to pay and the key is getting them to do more on the platform and to do a broader more diverse set of things. This all speaks really nicely to why we've invested so much in multiple use cases, so not just hosting but I'll.

The video creation.

And why we're so focused on simplifying and unifying the platform we have today.

Thanks.

Our next question comes from David Lewis Bird at Jefferies David.

Hey, good morning, guys David on for Brian .

Maybe to start I wanted to ask about.

So obviously it was down year over year on a seat based model, but you guys also talked about.

Monthly active members nearly doubling maybe just talk to that dynamic and some of that some.

Some of them may be the Doormen, you've kind of come on line and I know you guys talked about the shift on the enterprise side, though with F&B, but color there would be helpful. Thanks.

Yeah. So.

On our <unk> for the new enterprise as I think we've talked about we continue to be in and around $20000. We believe there is upside opportunity on that both based on the structure of our pricing programs and the kinds of technology. We are bringing to bear you have to remember when you think about <unk>, we are bringing on new customers fairly rapidly and expanding.

Customers, we have and that continues to be the case in any given quarter. It can move around a little bit based on the mixed mix of who's in the bookings in the waterfall so business is still.

Small in relative basis, we think it's going to get quite big but that can cause those numbers to fluctuate a little bit. So that's how we're thinking about the <unk>.

Okay.

Wanted to ask about it I'll ask about it.

I think a lot of people talking about.

Just thinking about AI.

In fact any of their stores, both positively and negatively maybe just give us an update on how you guys are thinking about leveraging AI that you guys are working on anything.

Looking with your products.

Sure.

So first it's worth noting AI isn't new for Vimeo, we've actually been investing in AI and machine learning for several years and we already leverage AI a bit today to help make it easier for our users to create video content from scratch on Vimeo. Our general view is that AI is.

Positive for Vimeo.

<unk> Big wave one video is still too hard and AI can help simplify video creation and sharing.

And so that we think is a benefit and we know the number one barrier to adoption is generating content you can imagine a world where suddenly it gets way easier to generate video content and where are the hosting and sharing platform for all of that content. So we think that that's very exciting.

And then the second is obviously like any other company how can we use AI to be more efficient more productive.

And you'll see us kind of invest in that as well, but it's worth noting in general we're excited about AI, we're continuing our investment there we don't see it as a sort of major new incremental investment we need to make its really more about continuing to take advantage of these trends and then the last thing.

I will just say is we also think we're uniquely positioned because of the amount of video data that we have.

Probably after Youtube the largest source of video data on the Internet and we are thinking strategically about how we can leverage that as an asset in our AI driven future.

Our next question comes from Chris Shang Truest, Chris.

Awesome. Thank you. This is grew strong on for Youssef Squali.

Wondering when the market's normalizing if you are able to stabilize the platform financially.

How do you think about balancing the need to invest in growth versus generating margin for investors over the next several years. Thank you.

Question. So when we think about the balance of profitability and growth. We really think about how can we create the most value for our investors and we think the highest value return for Vimeo is a growing profitable company. So what we've talked about is that we certainly believe that vimeo. It can be a double digit EBITDA business, but we also believe it can over.

You'll see us continue to be disciplined we're excited about not just growth, but sustainable and increasingly efficient gross and we're very committed to doing that.

<unk>.

We continue to believe that businesses will only adopt video Moore and that Vimeo has the best video product on the market for businesses.

Focused on simplification focus on efficiency and we're focused on returning the company to growth. Thank you for your interest in Vimeo, and we look forward to updating you on our progress next corner.

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