VMEO - IAC Spin-Off Vimeo May Edge Higher With More Cloud-Based Software Integrations

• Vimeo offers software as a service for users looking to share video and streaming content.
• VMEO's platform does not only offer streaming of high dynamic range or HDR video in up to 8K resolution, the company appears to also offer best-in-class streaming experiences.
• I believe that the products offered are of great quality, which will contribute to user growth. As a result, sales growth will be elevated in the near future.
• With the company’s branding customization, email capture, and other sophisticated marketing tools, in my view, large organizations will realize soon that using VMEO could be cheaper and more convenient than renting a large infrastructure.
• I included a CFO Margin of 11%-15%, a constant Capex/sales ratio of 0.25%, and the FCF margin close to 14.75%.

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