Vimeo grew its subscriber numbers 9% year-on-year in the fourth quarter to reach 952,000, according to figures broken out by parent company IAC.
However, Vimeo’s operating loss grew 25% to US$10.1 million and its adjusted EBITDA loss widened 32% to US$8.4 million due primarily to higher marketing and legal costs, which were partially offset by higher gross profit margins.
In his letter to shareholders, IAC CEO Joey Levin said that Vimeo’s operating losses are measured against the size of the market opportunity and claimed that Vimeo offers a suite of services that would otherwise require a user to piece together multiple solutions at “dramatically higher cost”.
“More people and businesses are creating and relying upon video today than in any time in history, and we believe that fact will hold true every day for the next decade,” said Levin. “Unlike the other video platforms that compete for viewers, we built Vimeo to serve creators and businesses.”
Outlining Vimeo’s plans for 2019, he said the company will: add news features at a faster pace than previously; grow subscribers, particularly higher value enterprise customers; and expand its global marketing.
“While Vimeo has high brand awareness in the US, people here and especially abroad aren’t aware of the breadth of tools available on the platform,” said Levin.
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9th December 2019