Analyst Brent Thill of Jefferies maintained a Buy rating on Vimeo (VMEO – Research Report), with a price target of $7.00.
Brent Thill, in his analysis, has rated Vimeo’s stock with a Buy recommendation for various reasons. Vimeo demonstrated remarkable execution in the third quarter, with revenue surpassing consensus by 5%. This was notably driven by outperformance across all three sectors, including Self Serve, Vimeo Enterprise, and Other. Moreover, the quarterly adjusted EBITDA margin was a robust 12%, compared to the street’s 2% estimation.
Furthermore, Vimeo’s Q3 performance reflected a strong EBITDA, the highest in Thill’s model. This was notably backed by an impressive adjusted EBITDA of $12.8 million, which was significantly higher than the consensus estimate of $2.3 million. Thill also highlighted Vimeo’s improved financial position, with around $300 million in cash and no debt. Despite an expected mid-single-digit decline in Q4 bookings, Thill maintains a Buy rating, considering the shares to be attractive at less than one times the estimated FY24 revenue.
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Vimeo (VMEO) Company Description:
Vimeo Holdings Inc is the all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. The company’s comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform.
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