Vimeo (VMEO) Stock Forecast & Price Target

Vimeo Inc. has demonstrated significant growth within its Enterprise segment, achieving over $100 billion in run-rate bookings during the third quarter of 2024 and increasing its subscriber base to 3.8 million. The company reported strong revenue growth of 42% year-over-year, reaching $21.7 million, alongside bookings increasing by 39% year-over-year to $25.1 million, indicating robust demand for its services. Additionally, Vimeo's improved free cash flow of $21 million in Q3, up 26% year-over-year, reflects effective cost optimization strategies, further enhancing its financial stability and growth potential.

Vimeo Inc. is facing a negative financial outlook as it anticipates a revenue decline of approximately 5% year-over-year for the fourth quarter, with operational subscribers decreasing by 9% to 1.28 million, down from 1.33 million in the previous quarter. Additionally, the company's self-serve bookings have seen a decline of 7.8%, indicating ongoing challenges in user acquisition and retention, despite a slight improvement from the previous quarter's decline. Furthermore, while enterprise revenue grew 42% year-over-year, it has decelerated significantly from the previous quarter's 55% growth, suggesting potential vulnerabilities in sustaining higher revenue contributions moving forward.