Vimeo (NasdaqGS:VMEO) - Share price, News & Analysis

Q: What is the Fair Price of VMEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

VMEO ($6.94) is trading below our estimate of [[fair value]] ($18.63)

VMEO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

VMEO Stock Overview

Vimeo, Inc., together with its subsidiaries, provides video software solutions in New York and internationally.

Rewards

Trading at 62.7% below our estimate of its fair value

Revenue is forecast to grow 13.89% per year

Revenue grew by 30.1% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Vimeo Competitors

Eventbrite

NYSE:EB

US$1.1b

Zhihu

NYSE:ZH

US$1.3b

Hello Group

NasdaqGS:MOMO

US$1.0b

Nextdoor Holdings

NYSE:KIND

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Vimeo
Historical stock prices
Current Share Price	US$6.94
52 Week High	US$52.06
52 Week Low	US$6.28
Beta	0
1 Month Change	-22.28%
3 Month Change	-45.05%
1 Year Change	-85.45%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-87.38%

Recent News & Updates

May 02

Vimeo: Changing For The Better

Vimeo stock is now down over 80% since its IPO. Management is trying to re-accelerate growth by shifting their focus to enterprises and broadening their product offerings. Their latest acquisition of Wibbitz and Wirewax is being overlooked and will provide substantial value to Vimeo's platform. A successful business transformation will put Vimeo in a much stronger position and result in a significant valuation expansion. It is now one of the cheapest SaaS stocks trading at an EV/sales ratio of 3.7, which provides a good buying opportunity.

Shareholder Returns

	VMEO	US Interactive Media and Services	US Market
7D	3.1%	5.6%	6.3%
1Y	-85.4%	-45.8%	-18.8%

Return vs Industry: VMEO underperformed the US Interactive Media and Services industry which returned -44.8% over the past year.

Return vs Market: VMEO underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is VMEO's price volatile compared to industry and market?
VMEO volatility
VMEO Average Weekly Movement	9.9%
Interactive Media and Services Industry Average Movement	11.3%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: VMEO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: VMEO's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2020	1,219	Anjali Sud	https://vimeo.com

Vimeo, Inc., together with its subsidiaries, provides video software solutions in New York and internationally. The company provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. It also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools.

Vimeo Fundamentals Summary

How do Vimeo's earnings and revenue compare to its market cap?
VMEO fundamental statistics
Market Cap	US$1.15b
Earnings (TTM)	-US$82.64m
Revenue (TTM)	US$410.61m

2.8x

P/S Ratio

-14.0x

P/E Ratio

Is VMEO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMEO income statement (TTM)
Revenue	US$410.61m
Cost of Revenue	US$104.34m
Gross Profit	US$306.27m
Other Expenses	US$388.91m
Earnings	-US$82.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.50
Gross Margin	74.59%
Net Profit Margin	-20.13%
Debt/Equity Ratio	0%

How did VMEO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is VMEO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VMEO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VMEO. This is calculated by dividing VMEO's market cap by their current preferred multiple.
What is VMEO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.15b

VMEO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	-11.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does VMEO's PS Ratio compare to its peers?

VMEO PS Ratio vs Peers

The above table shows the PS ratio for VMEO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.7x
EB Eventbrite	5.1x	22.0%	US$1.1b
ZH Zhihu	2.6x	32.2%	US$1.3b
MOMO Hello Group	0.5x	4.8%	US$1.0b
KIND Nextdoor Holdings	6.5x	22.5%	US$1.4b
VMEO Vimeo	2.8x	13.9%	US$1.2b

Forward PS

Price-To-Sales vs Peers: VMEO is good value based on its Price-To-Sales Ratio (2.8x) compared to the peer average (3.7x).

Price to Earnings Ratio vs Industry

How does VMEO's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Sales vs Industry: VMEO is expensive based on its Price-To-Sales Ratio (2.8x) compared to the US Interactive Media and Services industry average (2x)

Price to Sales Ratio vs Fair Ratio

What is VMEO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VMEO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.8x
Fair PS Ratio	2.6x

Price-To-Sales vs Fair Ratio: VMEO is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

Share Price vs Fair Value

What is the Fair Price of VMEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VMEO ($6.94) is trading below our estimate of fair value ($18.63)

Significantly Below Fair Value: VMEO is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VMEO's PEG Ratio to determine if it is good value.

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Future Growth

How is Vimeo forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMEO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VMEO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VMEO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VMEO's revenue (13.9% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: VMEO's revenue (13.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VMEO is forecast to be unprofitable in 3 years.

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Past Performance

How has Vimeo performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-205.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: VMEO is currently unprofitable.

Growing Profit Margin: VMEO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if VMEO's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare VMEO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VMEO is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-37.6%).

Return on Equity

High ROE: VMEO has a negative Return on Equity (-23.08%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Vimeo's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: VMEO's short term assets ($342.4M) exceed its short term liabilities ($252.7M).

Long Term Liabilities: VMEO's short term assets ($342.4M) exceed its long term liabilities ($11.4M).

Debt to Equity History and Analysis

Debt Level: VMEO is debt free.

Reducing Debt: VMEO had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VMEO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if VMEO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is Vimeo current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VMEO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VMEO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VMEO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VMEO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: VMEO is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VMEO has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure

CEO

Anjali Sud

4.92yrs

Tenure

US$18,844,127

Compensation

Ms. Anjali Sud has been Chief Executive Officer of Vimeo, Inc. since July 21, 2017 and serves as its Director since May 25, 2021. She serves as Chief Executive Officer of Vimeo, Inc. at Match Group, Inc. M...

CEO Compensation Analysis

Compensation vs Market: Anjali's total compensation ($USD18.84M) is above average for companies of similar size in the US market ($USD4.02M).

Compensation vs Earnings: Anjali's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: VMEO's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: VMEO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31