VMEO - Vimeo dives 30% as call warns of sales growth challenges

Vimeo (NASDAQ:VMEO) has tanked 29.7%, its worst single-day decline, after its third-quarter earnings report contained in-line revenues and a better loss than expected - but also a conference call today where the company raised flags about revenue growth. Q3 revenues jumped by a third, to $100.1 million, reflecting increases in subscribers (up 14%) and in average revenue per user (up 15%). Meanwhile, enterprise revenue grew by more than 60%. And gross profit jumped 43% to just under $75 million. But expenses rose by a similar factor, and operating loss worsened to $11.5 million vs. a year-ago loss of $7.5 million. As for the call, earlier this year the company had laid out a five-year goal of reaching 30%-plus compound annual growth in revenues. But today it suggests that may take longer than expected, saying the pace of sales has been hard to figure as it pursues new markets and use

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Vimeo dives 30% as call warns of sales growth challenges