Vimeo (VMEO, Financial) provides online video software and services, allowing content creators — specifically,businesses — to host, distribute and monetize their videos. Recently spun o from IAC, Vimeo reported its first earnings release as a standalone company during the third quarter. While Vimeo posted in-line results, the firm also guided to sequentially decelerating monthly revenue growth rates, which pressured shares. Since then, Vimeo has continued to report monthly deceleration in revenue and subscriber growth. Results have remained in line with management’s guidance but nonetheless have not been greeted warmly by investors. Vimeo does not yet turn a profit, and management needs to continue to drive revenue growth while improving Vimeo’s bottom line by limiting spending on growth.
From Keeley Small-Mid Cap Value Fund's third-quarter 2021 commentary.
