Video software platform Vimeo (NASDAQ: VMEO) will be reporting results tomorrow after market close. Here’s what to expect.
Vimeo beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $103.2 million, down 2.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and revenue guidance for next quarter slightly missing analysts’ expectations.
Is Vimeo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vimeo’s revenue to decline 3.4% year on year to $101.4 million, a reversal from the 1.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vimeo has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.5% on average.
Looking at Vimeo’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Stride delivered year-on-year revenue growth of 17.8%, beating analysts’ expectations by 3.6%, and IMAX reported revenues up 9.5%, topping estimates by 2.9%. Stride’s stock price was unchanged after the resultswhile IMAX was down 3.2%.
Read our full analysis of Stride’s results here and IMAX’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 11.7% on average over the last month. Vimeo is up 9.6% during the same time and is heading into earnings with an average analyst price target of $7.60 (compared to the current share price of $5.19).
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