YouTube rival Vimeo just went public - here's why the company's pivot to 'software as a service' is paying off
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Vimeo became the 11th company to be spun off from IAC yesterday when it went public on the NYSE.
- IAC, a holding company, is known for prolific dealmaking; previous spin-offs include Match Group, Expedia, and LendingTree.
Vimeo's no longer an "indie version of YouTube"
CEO Anjali Sud told The Verge that, under her leadership, it's become "more like a Slack or a Dropbox model, but for video." Vimeo's main business is software as a service, or Saas, that makes it easier for the Average Joe's Gymnasiums of the world to create and distribute video content.
The strategic pivot is paying off. In the first quarter of 2021, Vimeo reported…
- $89.4 million in revenue, a 57% annual increase
- $3.3 million in net profit, compared to a $20.3 million loss last year
Looking ahead...Sud told Barron's that Vimeo's growth will slow later this year as face masks come down and in-person happy hours come back, but should pick back up in 2022.
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