The spinout of video platform Vimeo from IAC completed today , with the smaller company now trading as an independent entity under the ticker symbol VMEO.
If you missed the news that the internet conglomerate was spinning out the video service, don’t feel bad; it slipped past many radars. But with the company now trading, with our access to its historical results , and with our minds still enthralled by YouTube’s recent financial performance for Alphabet, it’s worth having a moment to digest the company’s health.
Let’s answer a few questions: How quickly is Vimeo growing, how profitable is its business, and what can its spinout tell us about the larger video market? Recall that Kaltura, another video-powering company, recently put its IPO back in the pipeline after a small delay during what felt like a snap-freeze of the public markets toward the start of the second quarter.
So the Vimeo debut could impact a possible forthcoming unicorn IPO. With that in mind, let’s dig in to the numbers.
From Q1 2020 to Q1 2021, Vimeo’s revenues expanded from $57 million to $89. 4 million, a gain of around 57%. That’s a solid pace of expansion, although not a surprising one considering how much digital video globe consumed during the COVID-19 pandemic, a fact that could have bolstered the company’s recent capability.
Over the same amount of time frame, Vimeo’s gross an easy grew from $38. half a dozen million to $64. nine million, a gain of roughly around 67%. As you can infer beyond faster-rising gross profit than the revenue, Vimeo’s gross margins improved during Q1 2021 compared to the first quarter related to 2020, from 68% inside 72%.