Vimeo, Inc. (VMEO): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of where Vimeo, Inc. (VMEO) is putting its capital and seeing returns in late 2025; here is the BCG breakdown. The current portfolio shows a clear tension: high-growth Stars like Vimeo Enterprise, which grew revenue 25% year-over-year, are demanding investment, while the Self-Serve core acts as a reliable Cash Cow, maintaining a 78% gross margin and set to deliver about $35 million in Adjusted EBITDA. But you can't ignore the Dogs, like Legacy Add-Ons shrinking by 20%, or the Question Marks, such as the OTT business declining 3%, meaning the next capital moves Vimeo, Inc. makes will defintely be telling.

Background of Vimeo, Inc. (VMEO)

You're looking at Vimeo, Inc. (VMEO), which is the world's leading all-in-one video software solution, offering a full suite of video tools through a software-as-a-service model. The company was incorporated as a Delaware corporation in December 2020. Vimeo empowers its users, from creative storytellers to large global teams, to create and communicate using high-quality video on a single, integrated platform.

Vimeo structures its business primarily around a few key revenue streams: Self-Serve, Vimeo Enterprise, OTT, and Add-Ons. For the trailing twelve months ending September 30, 2025, Vimeo reported total revenue of $416.60 million, which represented a -0.67% growth year-over-year. Still, the company has been showing signs of re-acceleration in certain areas, which is what we need to watch closely.

Looking at the most recent quarterly data, Vimeo reported revenue of $105.76 million for the third quarter of 2025, which was up 1.14% year-over-year. That quarter followed a second quarter in 2025 where total revenue was $104.7 million, but total bookings grew 6% year-over-year, marking the strongest growth since 2022.

The growth story is clearly split across the segments. Vimeo Enterprise has been a real bright spot; in Q2 2025, its revenue surged by 25% year-over-year, and in Q1 2025, it saw 32% revenue growth. Conversely, the Self-Serve segment, which is sold directly online, saw its bookings increase by 11% in Q2 2025, reaching levels not seen since 2021, though its Q1 2025 revenue declined by 5%.

Financially, Vimeo has been focused on efficiency alongside growth investments. For Q2 2025, the company reported an Earnings Per Share (EPS) of $0.04, significantly beating the forecast. The company has also been actively managing its portfolio, with some product deprecations contributing to revenue declines in the 'Other' category, but the focus is clearly shifting capital toward areas like AI and enterprise readiness.

Vimeo, Inc. (VMEO) - BCG Matrix: Stars

You're analyzing the portfolio of Vimeo, Inc. and the Enterprise segment clearly fits the Star profile: high market share in a market segment that is still growing rapidly, demanding significant investment to maintain that lead.

Vimeo Enterprise is the clear leader here, showing sustained, high-velocity growth. In the second quarter of 2025, Vimeo Enterprise revenue grew by an impressive 25% year-over-year. This growth is supported by expanding the customer base, as evidenced by a 10% increase in Subscribers during that same quarter. To keep this momentum, Vimeo, Inc. is focusing on securing marquee clients; notable new customer wins in Q2 2025 included Spotify, Jaguar Land Rover Limited, and FanDuel.

The pricing power within this segment is strong, which is a key indicator of a Star's market leadership. For High-Value ARPU Customers, the Average Revenue Per User (ARPU) for the Enterprise segment increased by 12% year-over-year in Q2 2025. This suggests that not only are they winning new logos, but they are also successfully expanding the value captured from existing relationships.

The investment required to keep this segment ahead is substantial, which is typical for a Star quadrant business unit. For context on the company's commitment to innovation driving this segment, management had previously indicated an investment appetite of up to $30 million for the full year 2025 to drive growth responsibly.

Here's a quick look at the Q2 2025 Enterprise performance metrics:

The focus on AI-Powered Solutions is directly fueling the growth and future potential of this Star. The pace of innovation accelerated significantly, with the company releasing 35% of its entire 2025 product roadmap during the second quarter, which included the rollout of AI-driven features. This investment is aimed at maintaining a technological edge.

The push into Enterprise Security/Workflow capabilities is a strategic lever to solidify market share against competitors. These enterprise-grade features are what differentiate this segment, including:

• Advanced security features.
• Custom user permissions.
• Single sign-on for employees.
• Interactive video tools.
• Marketing software integrations.

Management confirmed that further important 2025 investments focused on enterprise customers were scheduled for delivery in Q3 2025. If Vimeo, Inc. sustains this success as the overall market growth rate eventually slows, this unit is positioned to transition into a Cash Cow. Finance: draft the H2 2025 capital allocation plan emphasizing Enterprise growth by next Wednesday.

Vimeo, Inc. (VMEO) - BCG Matrix: Cash Cows

You're looking at the core engine of Vimeo, Inc. (VMEO) right now, the part of the business that reliably prints cash to fund the riskier bets elsewhere in the portfolio. These Cash Cows are market leaders in mature spaces, and the data shows this segment is delivering on that promise.

The Self-Serve Core Hosting segment remains the bedrock. It represented 54% of Q1 2025 revenue, giving you a clear picture of where the bulk of the stable, recurring income originates. This high market share in a mature segment is the classic definition of a Cash Cow.

Profitability here is excellent, which is what you want from a mature leader. The Core SaaS platform maintained a strong gross margin of 78% as of Q2 2025. That means for every dollar of revenue recognized from this segment, nearly 78 cents drop down before operating expenses. That's defintely a healthy margin profile.

Management successfully pushed pricing, which directly translated to better unit economics. Average Revenue Per User (ARPU) for the Self-Serve base grew 11% in Q2 2025, a direct result of those successful pricing adjustments across the installed base. This ability to raise prices without significantly impacting retention is a hallmark of a strong market position.

Here's a quick look at the key financial markers supporting this Cash Cow status:

The expectation for the entire business reflects the strength of this segment. Vimeo, Inc. (VMEO) has raised its full-year 2025 Adjusted EBITDA guidance to approximately $35 million. This cash generation is what allows the company to fund the development of Question Marks and maintain Stars, covering corporate overhead and debt service.

Because this segment is mature and profitable, investment focus shifts from aggressive promotion to efficiency. You should see spending here focused on infrastructure improvements that drive down the cost to serve, further boosting that cash flow. The focus is on milking the gains passively while ensuring the platform remains stable.

• Maintain current productivity levels.
• Invest in efficiency-boosting infrastructure.
• Leverage high gross margin for corporate funding.
• Capitalize on successful pricing power.

Finance: draft 13-week cash view by Friday.

Vimeo, Inc. (VMEO) - BCG Matrix: Dogs

You're looking at the segments of Vimeo, Inc. (VMEO) that are firmly in the Dogs quadrant of the BCG Matrix. These are the areas with low market share in low-growth or declining markets, which frankly, tie up capital without offering much return. Honestly, these units are prime candidates for divestiture or aggressive minimization, as expensive turn-around plans rarely pay off here.

The core issue is that these product lines are either legacy or represent areas where the platform's massive free user base consumes resources without converting to revenue. We see this clearly when we map out the performance of the smaller, non-core revenue streams.

Here's a quick look at the hard numbers showing the contraction in these low-share areas as of the first half of 2025:

Legacy Add-Ons: Revenue from Add-Ons declined 20% YoY in Q2 2025, indicating a shrinking, low-return segment. Management noted expectations that this line might eventually include consumables like AI credits, but for now, it's a clear drag on the overall top line.

Deprecating Products: Other revenue streams are declining due to product deprecations and strategic consolidation. In Q1 2025, the 'Other' category saw a significant revenue decline of 52% year-over-year, largely attributed to the sunsetting of older products. This signals active pruning of non-strategic assets, which is the correct move for a Dog.

Un-monetized User Base: The scenario suggests the vast majority of the 300 million+ users are not paying, consuming hosting costs without direct revenue. The Free plan, for instance, is capped at 1GB of storage. While Enterprise and Self-Serve are the focus for growth, this large, non-paying cohort represents a persistent, low-level cash drain simply by existing on the infrastructure.

Low-Value Subscriber Churn: The Self-Serve segment, which is the platform's consumer arm, shows persistent subscriber decay. In Q1 2025, Self-Serve average subscribers were down 11% year-over-year. By Q2 2025, the subscriber count had stayed flat at 1.2 million over several quarters, still representing an 11% year-over-year decline. This decline is happening despite bookings growth, which was achieved through price increases, not organic user acquisition. If onboarding takes 14+ days, churn risk rises.

You need to review the capital allocation away from these specific areas. Finance: draft 13-week cash view by Friday.

Vimeo, Inc. (VMEO) - BCG Matrix: Question Marks

You're looking at the parts of Vimeo, Inc. (VMEO) that are burning cash now but have the potential to be the next big thing. These are the Question Marks-high market growth potential, but currently, Vimeo's slice of that pie is small, meaning they consume cash without delivering big returns yet. The strategy here is clear: pour in capital to win market share quickly, or divest.

Vimeo OTT/Streaming: High-potential market but Q2 2025 revenue declined 3% YoY; being integrated into Enterprise for a turnaround.

The Over-The-Top (OTT) streaming segment is definitely in the Question Mark quadrant based on its recent top-line performance. For the second quarter of 2025, the revenue for OTT actually fell by 3% year-over-year. This decline puts pressure on management to make a decisive move. Honestly, the plan appears to be integration rather than outright abandonment for now, as there are disclosures indicating changes involving merging OTT and Vimeo Enterprise operations. This suggests a bet that combining resources and sales focus with the high-growth Enterprise segment might be the investment needed to reverse the trend and turn this into a Star.

New AI Consumption Revenue: Planned new revenue streams related to AI usage are a high-growth bet with currently low market share.

Vimeo is making a significant, high-growth bet on Artificial Intelligence monetization, which fits the Question Mark profile perfectly: high-growth market, currently low captured share. They have started generating revenue and pipeline from discrete AI investments, such as AI translations. The company is explicitly planning for future consumption-based revenue related to AI, mentioning the potential for sales of AI credits to offset declines in the Add-Ons revenue line. To show the traction AI is gaining in their core Enterprise business, look at this: 40% of the enterprise deals closed in the fourth quarter of 2024 were driven by their AI capabilities, including translation and indexing tools. This is a massive indicator of future potential, but the current revenue contribution from new AI consumption models is still small enough to be classified as a Question Mark.

Here's a quick look at how AI is already influencing the higher-value Enterprise segment:

Spatial Video App: New product for Apple Vision Pro, targeting the nascent AR/VR market, requires significant investment to gain traction.

The launch of the Vimeo app for Apple Vision Pro, enabling users to view, create, and share spatial videos, represents a clear investment in a nascent, high-growth technology market. This is a classic Question Mark move: betting on a new platform where the market share is yet to be established. While the initial launch occurred in October 2024, the financial impact and market adoption in 2025 are still developing, requiring significant capital to gain traction against established players or competing platforms that may not support the format. The CEO called this spatial content the future of storytelling, signaling a long-term commitment.

Self-Serve Subscriber Growth: Bookings re-acceleration is a positive sign, but the ability to reverse the subscriber decline remains a major uncertainty.

The Self-Serve segment shows conflicting signals, which is the very definition of a Question Mark. On one hand, bookings re-accelerated significantly, growing 11% year-over-year in Q2 2025, marking their highest growth rate in three years. Furthermore, Self-Serve bookings accounted for 54% of total revenue in the first quarter of 2025. However, the underlying subscriber base is shrinking. In Q1 2025, Self-Serve subscribers stood at 1,189.3 thousand, down from 1,341.6 thousand in Q1 2024. Management confirmed that subscriber numbers continue to decline, even as retention rates remain strong due to pricing changes. The revenue for Self-Serve was actually down 1% YoY in Q2 2025, suggesting the higher Average Revenue Per User (ARPU) from pricing changes isn't yet enough to overcome the loss of paying users.

You can see the subscriber pressure clearly here:

The challenge is turning that bookings velocity into net new subscriber additions. If they can't, this segment risks falling into the Dog quadrant, despite the current high growth in bookings value.