VMEO - Vimeo tumbles after Q3 guidance falls below expectation

August, 04 2022 09:04 AM Vimeo Inc.

Vimeo ( NASDAQ: VMEO ) continues to slide after posting earnings on Wednesday as weak revenue growth outlook overshadows second quarter's earnings beat.
Q3 Outlook : The company said revenue growth is expected to exceed 5% Y/Y vs. consensus expectations of ~10% revenue growth; GAAP operating loss to be between $29-$31M, and Adjusted EBITDA loss between $3-$5M.
For FY 2022 Guidance: Revenue growth expected near 10% year-over-year vs. consensus of 13% ; GAAP operating loss between $107-$112M, and Adjusted EBITDA loss between $20-$25M.
The video company's second quarter revenue rose 15.6% to $111M, above the consensus estimate by $2.05M.
GAAP gross profit was $84.1M compared to GAAP gross profit of $70.3M in the second quarter of 2021. Gross profit grew 20% Y/Y.
Adjusted EBITDA loss was $6.4M compared to loss of $3.8M in Q2 2021.
Non-GAAP EPS of -$0.03 beats by $0.04.
Vimeo ended the quarter with $268.1M in cash and cash equivalents.
"We now have over 9,000 customers sold via our salesforce, representing 35% of our Q2 revenue, and are seeing new products like our recently launched interactive video capabilities gain adoption with companies from Estee Lauder to Splunk," said Vimeo's CEO Anjali Sud.
Stock is down 9% in premarket , Thursday.

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