Cowen and Company TMT Conference - IAC
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Cowen and Company TMT Conference
May 2020
Safe Harbor Forward-Looking Statements. This
presentation may contain “forward-
reputational damage caused by
problematic user content or our
In light of these risks and
uncertainties, these forward-looking
Statement looking statements” within the meaning
of the Private Securities Litigation Reform
decisions to remove (or not remove) it;
changes in policies implemented by third
statements may not prove to be
accurate. Accordingly, you should not
Act of 1995. The use of words such as party platforms upon which we rely for place undue reliance on these forward-
“estimates,” “expects” and “believes,” traffic and distribution of mobile apps; looking statements, which only reflect
among others, generally identify forward- increased competition in the online video the views of IAC and Vimeo
looking statements. These forward- category; our ability to convert visitors management as of the date of this
looking statements include, among into uploaders and uploaders into paying presentation.
others, statements relating to: Vimeo’s subscribers; our ability to retain paying
future financial performance, business subscribers by maintaining and Vimeo Metrics. Except as where
prospects and strategy and anticipated improving our value proposition; our otherwise noted, Vimeo financials and
trends in the online video market. These ability to provide video storage and metrics are as of Q1’20 and include
forward-looking statements are based streaming in a cost-effective manner; our Livestream, Magisto and Enterprise. We
on management’s current expectations ability to successfully scale our do not undertake to update any metrics
and assumptions about future events, enterprise business; our ability to protect or forward-looking statements.
which are inherently subject to sensitive data from unauthorized access;
uncertainties, risks and changes in our ability to expand successfully into
circumstances that are difficult to international markets; the impact of the
predict. outbreak of the COVID-19 coronavirus
on our business; and adverse changes in
Actual results could differ materially from economic conditions.
those contained in these forward-looking
statements for a variety of reasons, Certain of these and other risks and
including, among others: changes in uncertainties are discussed in our parent
regulatory landscape, in particular company’s (IAC) SEC filings. Other
changes in laws that might increase the unknown or unpredictable factors that
liability of online intermediaries for user- could also adversely affect our business,
generated content; financial condition and results of
operations may arise from time to time.
|2
enables
every business
to grow with video.
|3
Video has become essential for marketing and
communication
Website builders: $20B+ market Video solution: $30B+ market
Yesterday Took weeks/months Today Takes minutes
Cost thousands Costs $10-$20/month
Required professionals Anyone can do it
|4
Video fuels consumer action
~25M 140M+ 10M+
Website builder Social media E-commerce
customers business pages marketplace listings
Social video generates 12x
Online visitors spend 85% more Over 40% of product pages
higher shares than text &
time on sites with video on Taobao already include video
images combined
|5
Vimeo emerged from serving the demanding
creativity community
Computing Commerce Conversation Video
Designers Creatives Developers Filmmakers
|6
So easy a caveman could
do it! You just have to add
Vimeo is the creative standard your branding, and your
for hosting video. There’s no video is ready to go.
alternative, and there doesn’t
need to be.
Marsha Pearson
Small Business Owner
Vimeo is my #1 tool User since 2019
besides a camera. Meg Volk
BBH Agency
User since 2014
Cy Kuckenbaker
Filmmaker
User since 2010
|7Vimeo empowers businesses to communicate
effectively with video
Creation Communication
Make better videos, faster Engage your customers
and cheaper and employees
Video
Software
Platform
● Create videos from scratch ● Market to customers
● Manage video libraries ● Broadcast to audience
● Share videos securely ● Monetize content
|8Vimeo solves essential video needs
Creative Pros Businesses
Video Sales &
Workflow & Marketing
Production
Enterprises Media Companies
Corporate Content
Communication Monetization
|9We will unlock our TAM by helping more
businesses utilize video
1M+ Enterprises Enterprise ARPU
$12,000+
SMB ARPU
800M+ SMBs $250+
1.3M Blended ARPU
We are here
subs $150+
| 10Vimeo has already crossed $200M
in recurring revenue
Vimeo Revenue 190+ Countries 175M+
$209M Global footprint Registered users
$196M
$160MOur customer base is growing significantly
(In M’s)
Subscriber Growth New Subscribers by Segment
1,400 100%
1,200 35%
43% 41%
75% 54%
1,000
800 50%
600 65%
57% 59%
25% 46%
400
200 0%
2016 2017 2018 2019
0
2016 2017 2018 2019 Q1’20 Businesses Creative Pros
1.3M subscribers at Q1’20 Businesses are over 65% of new subscribers today
Note: Segment data based on customer sampling | 12Freemium model fuels organic expansion
Enterprise 35%+ of enterprise bookings
Customers pipeline from existing users
Creative Pros 30%+ of paid subscribers
& Business Subscribers migrate to higher tiers
60%+ of paid subscribers
Free Users come from free users
Note: Excludes Magisto | 13Customers consistently increase spend
Average Revenue per User Lifetime Revenue per Subscriber Cohort
(Indexed)
$171 260
$163
$148
240
$112 220
$101
200
180
160
140
2016 2017 2018 2019 Q1'20 120
100
60%+ ARPU growth in 3 years
Note: Lifetime revenue excludes Magisto and Enterprise | 14They engage more deeply over time
Average Month 1 Uploads/Creates, Lifetime Revenue per Subscriber, by Cohort
by Cohort (Indexed)
700
20
600
16 500
400
12
300
8
200
4 100
0
0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
2009 2010 2011 2012 2013 2014
2015 2016 2017 2018 2019
Note: Excludes Magisto and Enterprise; Uploads/Creates for paying subscribers only | 15We have a clear playbook to drive unit economics
Self-serve LTV/CAC Enterprise LTV/CAC
(Indexed) (Indexed)
2.0x 2.0x
1.5x 1.5x
1.0x 1.0x
0.5x 0.5x
0.0x 0.0x
1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20
2020 Priorities: 2020 Priorities:
Creation, mobile app, partnerships New live and monetization tools, international, security
Note: Excludes Magisto | 16New Create tool expands our TAM and
lowers acquisition costs
Creation is the #1 requested tool by SMBs
80% of SMBs want to create more videos
Video creation is at a tipping point
20x+ global increase in video creation app
downloads over 3 years
Makeup Tutorial
We have the best product
Capable of creating a professional, fully
customized video in < 2 minutes
Makeup Tutorial
Sources: SensorTower and internal data
| 17There is a large opportunity to grow within
the enterprise
60%+
Upsell Traction of Fortune 500 companies
($ to Vimeo) have at least 1 paying
customer account with Vimeo
Example Converted to
Self-Serve
Customer Enterprise
Retail $660 $220,000 Vimeo self-serve users drive over 35% of
Enterprise sales bookings
Finance $80 $70,000
Of those, over 60% are free users versus
Fitness $700 $60,000
existing paid subscribers
| 18We have two near-term enterprise entry points
Corporate
Media
Communication
Faith Education Fitness Institutions Brands Non-profits
Digital media Sports Lifestyle Schools Tech Finance
| 19Vimeo has significant untapped opportunity
1 Open top of funnel 4 Expand enterprise business
Capture more SMBs with Create Scale inside and field sales, global
and stronger free offering expansion
2 Improve free conversion 5 Increase gross margin
Focus on UX, CRM and personalization Leverage tech and scale benefits
3 Increase LTV / CAC
Unlock mobile marketing, partnerships and
optimize funnel
| 20On a clear path to profitable growth
Y/Y Growth Q1’20 Near Term Target
Subscribers 1.3M 10 - 15%
ARPU ~$170 10 - 15%
Revenue $57M 20 - 30% (1)
% of Revenue Q1’20 Long Term Target
Gross Margin 65%+ 70%+
Adjusted EBITDA ($11M) 20%+
(1) Ex-acquisitions
| 21Non-GAAP to GAAP Reconciliation
(In M’s)
Q1’20
Adjusted EBITDA ($11.4)
Amortization of intangibles (3.1)
Depreciation (0.1)
Operating loss ($14.6)
| 22You can also read
