Vimeo Inc. (VMEO) stock plummeted more than 20% in the pre-market session on Thursday, following disappointing fourth-quarter results and weak guidance that raised concerns about the company's growth prospects.
The online video software and services provider reported a significant drop in its subscriber base across its core self-serve and add-ons business. Vimeo ended the fourth quarter with 1.2 million subscribers, down from 1.5 million just two years ago, marking a consistent decline in its subscriber count over the past 48 months.
Furthermore, Vimeo's guidance for a first-quarter drop in revenue suggests that this trend may persist. The company expects revenue of around $100 million for the first quarter, while Wall Street analysts anticipated $102.9 million. For the full year 2025, Vimeo forecasts revenue growth in the low-single-digit range, trailing analysts' expectations of a 1.5% increase.
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