Vimeo video platform announced the results of September: shares have risen in price
The video hosting platform Vimeo Inc. (VMEO) reported September 2021, which became the driver of stock growth. At the auction on October 13, the company’s securities rose by more than 13% to $30.41.
According to Vimeo, revenue in September increased by 33% year on year. In addition, the number of subscribers increased by 14%, while the average income per subscriber increased by 16%. Note that Vimeo showed similar results in August, but investors reacted negatively, and the shares fell in price.
Probably, the September results as the release of the video platform for a steady increase in indicators, hence the positive reaction. An essential driver of Vimeo’s growth was publishing a “buy” recommendation from Jefferies analysts. In addition, it raised the target price for the shares to $54. According to Jefferies, the Vimeo platform is still at the initial growth stage but has good market prospects.
In particular, thanks to its subscription model and focus on small businesses and creators, Vimeo is different from YouTube. As a result, competition between these platforms is minimal, allowing Vimeo to increase sales in its relatively small video subsector.
In particular, Vimeo offers tools for creating, hosting, and marketing videos for professionals. Recall that Vimeo separated from its parent company InterActiveCorp and only went public in the spring of 2021. Already on the first day of trading, the company’s shares fell below the opening price.
The shares have lost more than 50% of their value compared to the first day of trading. Nevertheless, Vimeo’s business is showing double-digit growth in financial indicators. In addition, the number of subscribers continues to grow, increasing the company’s ability to monetize the audience.
