Revenue growth has largely stagnated with a marginal 1.1% increase in 2025Q3, while operating margins remain inconsistent, fluctuating between a 7.1% peak in 2024Q2 and a -4.4% trough in 2025Q1.
| Sales/Revenue | 416.6M | 417.01M | 417.21M | 433.03M | 391.68M | 283.22M | 196.01M |
| Revenue Growth % | -0.67% | -0.05% | -3.65% | 10.56% | 38.3% | 44.49% | - |
| Cost of Goods Sold | 94.93M | 92.39M | 96.11M | 110.89M | 109.31M | 104.28M | 87.8M |
| COGS % of Revenue | - | 22.16% | 23.04% | 25.61% | 27.91% | 36.82% | 44.79% |
| Gross Profit | 321.67M | 324.62M | 321.1M | 322.13M | 282.37M | 178.94M | 108.22M |
| Gross Margin % | 77.21% | 77.84% | 76.96% | 74.39% | 72.09% | 63.18% | 55.21% |
| Gross Profit Growth % | - | 1.1% | -0.32% | 14.08% | 57.81% | 65.35% | - |
| Operating Expenses | 313.98M | 303.73M | 303.56M | 402.01M | 343.39M | 219.71M | 168.47M |
| OpEx % of Revenue | - | 72.84% | 72.76% | 92.84% | 87.67% | 77.58% | 85.95% |
| Selling, General & Admin | 196.9M | 194.47M | 199.3M | 276.63M | 237.8M | 155.48M | 121.53M |
| SG&A % of Revenue | - | 46.64% | 47.77% | 63.88% | 60.71% | 54.9% | 62% |
| Research & Development | 117.08M | 109.26M | 104.26M | 125.38M | 105.59M | 64.24M | 46.95M |
| R&D % of Revenue | - | 26.2% | 24.99% | 28.95% | 26.96% | 22.68% | 23.95% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 7.69M | 20.89M | 17.54M | -79.87M | -61.02M | -40.78M | -60.25M |
| Operating Margin % | 1.85% | 5.01% | 4.2% | -18.44% | -15.58% | -14.4% | -30.74% |
| Operating Income Growth % | - | 19.09% | 121.96% | -30.9% | -49.63% | 32.32% | - |
| EBITDA | 9.46M | 22.63M | 22.38M | -67.62M | -54.25M | -25.57M | -50.12M |
| EBITDA Margin % | 2.27% | 5.43% | 5.36% | -15.62% | -13.85% | -9.03% | -25.57% |
| EBITDA Growth % | -65.84% | 1.16% | 133.09% | -24.65% | -112.13% | 48.98% | - |
| D&A (Non-Cash Add-back) | 1.77M | 1.75M | 4.84M | 12.25M | 6.77M | 15.2M | 10.13M |
| EBIT | 6.28M | 33.72M | 25.91M | -77.17M | -50.77M | -40.68M | -66.69M |
| Net Interest Income | 12.54M | 14.79M | 11.64M | 3.38M | -1.16M | -9.12M | -8.54M |
| Interest Income | 12.54M | 14.79M | 12.64M | 3.87M | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 998K | 491K | 1.16M | 9.12M | 8.54M |
| Other Income/Expense | -1.41M | 12.83M | 7.37M | 2.21M | 9.08M | -9.02M | -14.98M |
| Pretax Income | 6.28M | 33.72M | 24.91M | -77.67M | -51.94M | -49.8M | -75.23M |
| Pretax Margin % | 1.51% | 8.09% | 5.97% | -17.94% | -13.26% | -17.58% | -38.38% |
| Income Tax | 2.1M | 6.7M | 2.88M | 1.93M | 828K | 828K | 345K |
| Effective Tax Rate % | 33.44% | 19.88% | 11.56% | -2.48% | -1.59% | -1.66% | -0.46% |
| Net Income | 4.15M | 26.49M | 21.56M | -79.59M | -52.77M | -50.63M | -75.58M |
| Net Margin % | 1% | 6.35% | 5.17% | -18.38% | -13.47% | -17.88% | -38.56% |
| Net Income Growth % | -87.75% | 22.87% | 127.08% | -50.83% | -4.22% | 33.01% | - |
| Net Income (Continuing) | 4.18M | 27.01M | 22.03M | -79.59M | -52.77M | -50.63M | -75.58M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.03 | 0.16 | 0.13 | -0.49 | -0.32 | -0.31 | -0.46 |
| EPS Growth % | -87.19% | 23.08% | 126.53% | -53.13% | -3.23% | 32.61% | - |
| EPS (Basic) | - | 0.16 | 0.13 | -0.49 | -0.32 | -0.31 | -0.46 |
| Diluted Shares Outstanding | 165.01M | 169.45M | 165.27M | 161.48M | 166.11M | 164.46M | 164.46M |
| Basic Shares Outstanding | 161.68M | 163.93M | 163.24M | 161.48M | 166.11M | 164.46M | 164.46M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Stagnant top-line growth
As reported in recent financial statements, Vimeo's revenue growth has effectively stalled, with the most recent quarter showing a marginal 1.1% increase, highlighting the difficulty in scaling the platform beyond its current user base while navigating a transition toward higher-value enterprise-focused subscription tiers.
The lack of meaningful top-line expansion suggests that the company's pivot toward enterprise clients has yet to offset the churn or saturation within its self-serve segment. Investors should monitor whether this flat trajectory reflects a fundamental ceiling in the addressable market or merely a temporary lag during the strategic shift.
Based on historical income statement data, Vimeo maintains a robust gross margin profile averaging approximately 77.8%, which underscores the inherent pricing power of its white-label video infrastructure despite the ongoing competitive pressures from both free public platforms and specialized enterprise software providers.
This high margin level indicates that the company successfully manages its direct costs, primarily cloud hosting and bandwidth, relative to its subscription pricing. However, the stability of these margins suggests that further profitability gains will likely need to come from operating leverage rather than additional improvements in cost-of-goods-sold efficiency.
According to quarterly filings, Vimeo's operating margins have fluctuated within a narrow range, peaking at 7.1% in 2024Q2 and dipping to -4.4% in 2025Q1, which suggests that the company has not yet achieved the scale necessary to decouple revenue growth from rising operating expenses.
The inability to consistently scale operating income faster than gross profit implies that SG&A and R&D investments remain heavy burdens on the bottom line. This pattern warrants further investigation into whether current R&D spending on AI-driven tools will eventually yield the efficiency gains required to drive meaningful margin expansion.
As evidenced by the provided data, net income has experienced significant volatility, swinging from a $10.1 million profit in 2024Q2 to a $536,000 loss in 2025Q3, a trend often exacerbated by the irregular application of stock-based compensation and non-operating items.
The inconsistency in bottom-line results makes it difficult to assess the company's true cash-generative potential on a quarterly basis. Investors should be cautious of relying on GAAP net income as a proxy for operational health, as the impact of non-cash expenses appears to frequently distort the reported earnings per share.
Based on the reported figures, the primary risk to the current narrative is the potential for margin compression if the company is forced to increase R&D or marketing spend to defend its market position against rapidly evolving generative AI video tools from well-capitalized competitors.
Short-term observers may focus on the fact that revenue growth has failed to accelerate despite the company's pivot to enterprise, which could imply that the product's value proposition is not sufficiently differentiated. If the enterprise segment fails to scale, the company may find itself trapped in a low-growth, high-cost environment that threatens its long-term profitability.
Quick answers to the most common questions about buying VMEO stock.
For fiscal year 2024, Vimeo, Inc. (VMEO) reported total revenue of $417.0M. This represents a 112.7% increase compared to $196.0M in 2019.
Vimeo, Inc. (VMEO) is profitable, generating $26.5M in net income for the fiscal year ending 2024 with a net profit margin of 6.4%.
Vimeo, Inc. (VMEO) reported an operating income of $20.9M, resulting in an operating profit margin of 5.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Vimeo, Inc. (VMEO) generated $324.6M in gross profit for the year, representing a gross profit margin of 77.8%. This demonstrates the company's core pricing power and production efficiency.