Start Time: 17:00 January 1, 0000 5:19 PM ET
Vimeo, Inc. (NASDAQ:VMEO)
Q3 2023 Earnings Conference Call
November 06, 2023, 17:00 PM ET
Company Participants
Adam Gross - Interim CEO
Gillian Munson - CFO
Ken Goff - Head, IR
Conference Call Participants
Youssef Squali - Truist
Tom Champion - Piper Sandler
Brian Fitzgerald - Wells Fargo
David Lustberg - Jefferies
William Kerr - TD Cowen
Gillian Munson
[Starts Abruptly]
…putting 2023 in perspective, and during the year, we had three financial goals, delivering revenue declines in the mid single digits, posting adjusted EBITDA of $5 million to $10 million and returning to bookings growth in the second half. I'm happy to say that we believe we have line of sight to achieving or beating two of those goals. And while we aren't all the way there on the third, we are making solid progress. Specifically, I'm happy to relay that we continue to believe that our revenue outlook is appropriate. And we have raised our EBITDA outlook to $27 million to $30 million.
As for getting back to sustained bookings growth in the second half of the year, Q3 solid results aside, we now believe that our path there will be non-linear. In Q4, we now expect bookings to decline in the mid single digits percentage wise. About half of the shift from Q3 to Q4 is expected to be driven by lumpiness in our other category. The rest will come from two factors. First, while self serve and add-ons showed improvement in Q3, we expect we will need more time still to return it for good.
Moreover, as we look at our strategy, we are making overt changes to be more product than paid marketing driven, which may cause near-term headwinds on new bookings, but should be long-term healthier for our business. And in Vimeo Enterprise, despite strong growth prospects, the rate of growth is slowing in part due to some operational issues we saw in Q3 that resulted in pipeline softness. We are moving the business in the right direction despite a delay in delivering sustained growth and continue to believe that Vimeo will deliver growth overall, first driven by bookings. Importantly, Vimeo has the financial staying power thanks to its strong cash generation in 2023, and its enviable balance sheet to invest appropriately to turn our business to growth posture.
With that, we're happy to take your questions.