Vimeo Stock is a business streaming game
All-in-one video software solution Vimeo (NASDAQ: VMEO) the stock tries to bottom out after being separated from the parent company InterActiveCorp (NASDAQ: IAC). The company was split from its parent company in May 2021 and shares have since fallen sharply from a high of $ 57.88 to a low of $ 29.31. The company focuses on corporate clients as it has more than 5,200 paying corporate clients. The Vimeo Video Library was launched in Q2 2021 specifically for training videos along with free Vimeo Record recording software. The acceleration of COVID-19 vaccination is bringing workers back to offices and strengthening elastic desks and hybrid versions. Vimeo has enabled businesses to integrate their logos and branding with over 1.6 million subscribers. The Company is a post-pandemic niche player in the enterprise streaming segment. With double-digit income growth, cautious investors looking for exposure to the reopening and return-to-work trend can watch for opportunistic pullbacks.
Publication of results for the second quarter of fiscal 2021
On August 8, 2021, Vimeo released its fiscal 2021 second quarter results for the quarter ending June 2021. The company reported a loss of adjusted earnings per share (EPS) of ($ -0.13). Revenue increased 43% year-over-year to $ 96.05 million. Cash flow from operating activities was $ 18.2 million and free cash flow was $ 18.1 million at the end of the quarter with $ 331 million in cash and cash equivalents. Vimeo CEO Anjali Sud commented, “The evolution of video as a new way of working continues. In the second quarter, we gained momentum in the business with an expanded product line, as we improved our all-in-one software solution to empower every employee to be a content creator and every business. to focus on video. Our execution is on track and we are investing strategically to position Vimeo as a long-term winner in this important and early market. “
Take-out conference call
CEO Sud set the tone: “We have just published our first quarter as an independent company. I would like to welcome all of our new shareholders, thank our over 230 million users worldwide and give a virtual high five to the now 950 Vimeo employees who have served these users with passion and care. 18 months after COVID- 19, the demand for corporate video continues at a high level. Employees no longer know the difference between consuming content at work or at home. And as a result, organizations are increasingly planning for a video-centric future, no matter where they are. We’ve long believed that any business with a website, social media account, online store, or distributed team will use professional-looking video the same way they use mail. electronic, chat, image or text today.
“Our most recent launch here was Vimeo Record, a free screen recording tool that has grown over 80% quarter over quarter in usage. Screen recordings now account for almost 10% of total downloads on Vimeo. We also continue to invest in partnerships. We recently announced new partnerships and native integrations with Asana and TikTok and extended our existing partnerships with Facebook, Shopify, and GoDaddy. We plan to launch more native integrations this year that will bring the power of Vimeo directly to other platforms. This not only allows us to diversify user acquisition, but it also gives Vimeo users more choice, more reach and more utility on the internet. In our business activity, we have made significant progress in expanding our product line to serve more use cases of video in an organization. This quarter, we launched the Video Library, a centralized platform for employees to share and access knowledge between teams. All videos are automatically transcribed, searchable, and can be organized by department or team with company-level permissions and security. Our goal is for the video library to eventually become the recording system for all company videos, from executive communications and internal collaboration to marketing, training and development, ”said CEO South.
CEO South concluded, “For the rest of the year, we are developing many other business features, from webinar capabilities and new event experiences to deeper analytics to serve the world’s largest companies. Our roadmap is designed to increase employee, team and customer engagement and to bring Vimeo closer to existing and emerging workflows. We relentlessly push our pace of innovation and work closely with our clients as we build. We also continue to benefit from a self-propelled funnel. Our free and self-service users generated nearly 70% of new enterprise customers in the quarter. And we’re still very early in developing repeatable moves to identify and convert those customers, so a lot of untapped potential.
VMEO Opportunistic Withdrawal Price Levels
Using the rifle charts over the weekly and daily periods provides an accurate view of the landscape for the VMEO stock. Since stocks are relatively new, it will take longer for the larger weekly and monthly charts to materialize. We will use the weekly since the baseline trendline indicators are working. Rifles weekly chart peaked at $ 57.88 Fibonacci level (fib) before stocks fell to a low of $ 29.31 before rolling up. The 5-period weekly moving average (MA) is stable at $ 36.69 while the 15-period weekly MA still drops diagonally to $ 35.67. This sets up a potential failure pattern of puppies that continues to decline stochastically. The guns daily chart formed a High Market Structure (MSH) sell trigger on the blackout below the $ 38 trigger. The 5-period Daily MA fell to $ 32.69 as the Daily Stochastic completed a full swing down. The daily stochastic tries to defend the everyday weak market structure (MSL) trigger at $ 31.70. The Daily Stochastic tempts a 10-band mini puppy with lower Daily BBs falling below the $ 29.70 mark. Cautious investors can look for opportunistic withdrawals at the levels of $ 32.18, $ 29.31, $ 27.48, $ 25.50, $ 22.59, $ 20.14 and $ 19.61. Upward trajectories range from $ 41.61 to $ 60.75.
Should you invest $ 1,000 in Vimeo right now?
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