VMEO - Vimeo: Opex Controls At Peak Some Dilution Incoming
2024-02-11 23:38:48 ET
Summary
- Vimeo is focusing on cost control and reducing share-based compensation figures, but growth prospects are limited.
- The company is focusing on growing its enterprise segment, including converting self-serve customers who may be enterprises into bigger accounts.
- The SMB segment isn't that healthy.
- While cost controls are impressive, they are considering new investments that may turn down the EBITDA margins, which have very possibly peaked, limiting our upcoming Q4 expectations.
- With limited growth prospects and possible profit headwinds into Q4, we don't see much upside at current multiples.
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Vimeo: Opex Controls At Peak, Some Dilution Incoming