VMEO - Vimeo Leaves Value On Table Pricing Power In Enterprise Shift
- Vimeo is achieving good growth and narrowing its operating losses, but the 2022 guidance isn't great.
- This is because Vimeo is going through a shift to focusing on larger accounts, with accounts with smaller businesses suffering due to the pandemic.
- They are leaving heaps of value on the table, and as they grow ARPUs of current customers and acquire new customers, we could see restored sales momentum and margin expansion.
- By trading at 5x sales, we think there is lack of discovery due to its recent May 2021 listing and a bit of a confounding story, and that there's upside.
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Vimeo Leaves Value On Table, Pricing Power In Enterprise Shift