Q1 2025 Vimeo Inc Earnings Call

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Growth is going to come so still aggressive goals still a great value proposition still feel very good about that part of the business going forward.

Okay, alright, thank you so much.

Thank you Youssef and now we'll go to Bill care from TD Cowen.

Yeah.

Great. Thanks for thanks for the questions.

So maybe my first one would just be.

Can you just talk about how it Jim.

Jen AI and those features that you might be rolling out are coming up in conversations with customers and how that shifted over the last several months and then maybe.

Are there any features like that or just features broadly that we should be keeping an eye out on as we think about your product roadmap as we move through the rest of 2025.

And then I have one more.

Sure I think so far we had rolled out our AI features are gen. AI features some to our enterprise customers last year and I think we had mentioned that a significant portion of our deals back in Q4 were being driven by our AI features we continue to see really good traction in terms of interest in our AI features things like translate.

<unk> in particular with our enterprise customers roughly back in the second week of April we actually started rolling that out to all of our self service subscribers as well that translations capability now that's been out for a grand total of a little bit over two weeks at this point, we're seeing some bright spots we see.

Some customers coming in and translating in some cases entire video libraries.

Some of our translation features.

Very very important element of what we rolled out and I don't do not want to.

I can't overstate how important this is as we rolled out security for every single one of our customers that uses that so that every single customer has their own memory and has their own capability to be able to control their AI very important to the creator community whether or not you are the largest company in the world or whether or not you're an individual filmmaker so really important element circa.

Thing that we rolled out was that ability to be able to monetize so that if you have 100 minutes of video that you want to translate or.

Minutes of video that you want to translate that we have a mechanism to be able to months to be able to monetize that as we go forward. So very important infrastructure that was just put out for our over 1 million customer base.

And so translations just in general continue to be I'll say, a lot of interest in it because at approximately 45% of our customer base is international.

The other some of the other capabilities that we're starting to talk about with our enterprise customers is this ability to be able to have discovery and also the ability to be able to ask video questions.

We are excited about the notion of a gentex video. So you might be hearing a lot about agents, so whether or not google's agents space or gleans capabilities the videos agent technology.

<unk> is actually rolling out this ability to be able to have a gentex video. So the video can be used by agents.

In line with workflow, we think that that's going to be a very powerful element, where things like customer support and sales and other use cases.

And then finally, some of our ability to be able to describe what's going on in the video. We think is going to be very important for internal search for internal learning and even in some cases for external discovery.

Those capabilities, while they are not in our revenue today, we've got a very solid roadmap as we go into the next quarter and over the course of the rest of the year.

Around the rollout of more and more AI capabilities. So we really expect to lead the market in video in AI as it relates to video and in this new category, what we call a gentex video.

And when you think about it financially I think there is another really important piece and this fall out which is the idea of essentially a consumable.

And in period revenue stream for them now and we think that this is a really great way to keep moving our ARPA was up over time across the whole business. So you've seen us be on a steady March up in our appeal across pretty much the two big products that we sell.

And at the same time, we've seen headwind in add ons.

I think the way where.

We're thinking about this as AI is the beginning just translations itself as the beginning of a number of items that we can sell to our customer base on it as you need it basis and so I think that's a really important piece of our story and will be a big piece of how we think about our long term growth as we move out you know even over a years.

In terms of what we can do with our platform itself and then the consumables that customers might want for their specific use.

And it.

Okay, that's very helpful.

And then I was wondering about whether there were any particular industries or categories that you were seeing particular strength or maybe even softness.

Over the course of the.

The first quarter and so far into <unk> that would be really helpful. Thank you.

I think there's a few.

Marketing is a very important cohort to us where people are using more and more video and ecommerce and in their marketing environments.

Environments. The second thing I would say is that we are seeing a tremendous amount of interest from.

<unk> industries.

We can go into a video and say.

Does this video promise any kind of returns that it shouldnt be promising or we can say.

For a pharmaceutical company does the video actually.

It does the video talk about side effects of a particular medication because of the AI work that we're doing you actually can interrogate video is in a way that you can before and so I think a lot of organizations that are unregulated industries are starting to look at some of our capabilities in saying that it's actually you can actually achieve compliance and achieve some of the regulatory requirements, both internally and externally.

<unk> in the marketplace with some of the technologies, we're delivering additionally, some of the work that we've done around translations.

In the marketing world being able to have your your video discoverable in more languages actually leads to better discovery and so that translations capability for both marketing and even for educators is really is doing well, so marketing education and regulated industries, we're seeing a lot of interest.

Great. Thanks, so much.

Great. Thank you William that concludes today's question and answer period now we're going to turn it back to Philip our CEO Phillip I want to thank you again for joining our Q1 2025 earnings call. One other item of note last week, we filed our recent proxy statement and we're saying goodbye and a huge thank you.

<unk> to our board members, Alicia hubs and EDA Kane for their contributions to Vimeo. Since May 2021. We're also excited to nominate our new board members for shareholder approval, Adam Kahan person clip house and linear jet and I want to thank you again, we'll see you for our Q2 update.

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