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Vimeo (VMEO) ROE % : 9.20% (As of Sep. 2024)


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What is Vimeo ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Vimeo's annualized net income for the quarter that ended in Sep. 2024 was $37.1 Mil. Vimeo's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $403.7 Mil. Therefore, Vimeo's annualized ROE % for the quarter that ended in Sep. 2024 was 9.20%.

The historical rank and industry rank for Vimeo's ROE % or its related term are showing as below:

VMEO' s ROE % Range Over the Past 10 Years
Min: -319.79   Med: -23.16   Max: 8.69
Current: 8.69

During the past 5 years, Vimeo's highest ROE % was 8.69%. The lowest was -319.79%. And the median was -23.16%.

VMEO's ROE % is ranked better than
61.22% of 2625 companies
in the Software industry
Industry Median: 4.4 vs VMEO: 8.69

Vimeo ROE % Historical Data

The historical data trend for Vimeo's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vimeo ROE % Chart

Vimeo Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
-319.79 -93.14 -23.16 -21.97 5.99

Vimeo Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.41 8.97 6.27 10.24 9.20

Competitive Comparison of Vimeo's ROE %

For the Software - Application subindustry, Vimeo's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vimeo's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Vimeo's ROE % distribution charts can be found below:

* The bar in red indicates where Vimeo's ROE % falls into.



Vimeo ROE % Calculation

Vimeo's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=22.032/( (353.858+382.232)/ 2 )
=22.032/368.045
=5.99 %

Vimeo's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=37.128/( (397.892+409.411)/ 2 )
=37.128/403.6515
=9.20 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Vimeo  (NAS:VMEO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=37.128/403.6515
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(37.128 / 418.256)*(418.256 / 634.635)*(634.635 / 403.6515)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.88 %*0.659*1.5722
=ROA %*Equity Multiplier
=5.85 %*1.5722
=9.20 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=37.128/403.6515
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (37.128 / 43.92) * (43.92 / 29.46) * (29.46 / 418.256) * (418.256 / 634.635) * (634.635 / 403.6515)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8454 * 1.4908 * 7.04 % * 0.659 * 1.5722
=9.20 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Vimeo ROE % Related Terms

Thank you for viewing the detailed overview of Vimeo's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Vimeo Business Description

Traded in Other Exchanges
Address
330 West 34th Street, 5th Floor, New York, NY, USA, 10001
Vimeo Inc is the all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. Its comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform. The company derives its revenue from SaaS subscription fees paid by customers for subscription plans.
Executives
Adam Gross director C/O VIMEO, INC., 330 WEST 34TH STREET 5TH FLOOR, NEW YORK NY 10001
Glenn Schiffman director, officer: CFO & Director 555 WEST 18TH STREET, NEW YORK NY 10011
Gillian Munson officer: Chief Financial Officer C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Furstenberg Alexander Von director C/O ARROW INVESTMENTS, 555 WEST 18TH STREET, NEW YORK NY 10011
Eric Cox officer: Chief Operating Officer C/O VIMEO, INC., 330 WEST 34TH STREET, NEW YORK NY 10001
Jay Herratti director C/O VIMEO, INC., 555 WEST 18TH STREET, NEW YORK NY 10011
Thrive Partners Vi Gp, Llc director C/O THRIVE CAPITAL MANAGEMENT, LLC, 295 LAFAYETTE STREET, NEW YORK NY 10012
George C Wolfe director C/O VIMEO, INC., 555 WEST 18TH STREET, NEW YORK NY 10011
Michael A Cheah officer: General Counsel & Secretary C/O VIMEO, INC., 555 WEST 18TH STREET, NEW YORK NY 10011
Narayan Menon officer: Chief Financial Officer C/O VIMEO, INC., 555 WEST 18TH STREET, NEW YORK NY 10011
Shelton Jackson Lee director C/O VIMEO, INC., 555 WEST 18TH STREET, NEW YORK NY 10011
Nabil Mallick director C/O VIMEO, INC., 330 WEST 34TH STREET 5TH FLOOR, NEW YORK NY 10001
Mark Kornfilt officer: President & CPO C/O VIMEO, INC., 555 WEST 18TH STREET, NEW YORK NY 10011
Thrive Capital Partners Vi, L.p. director 295 LAFAYETTE STREET, NEW YORK NY 10012
Thrive Partners V Gp, Llc director C/O THRIVE CAPITAL MANAGEMENT, LLC, 295 LAFAYETTE STREET, NEW YORK NY 10012