Vimeo has raised $150 million in new fairness funding, introduced along side the third quarter earnings of its father or mother firm IAC.
In a letter to shareholders, IAC CEO Joey Levin mentioned the corporate has “begun considering spinning Vimeo off to our shareholders.”
“Given Vimeo’s success, and investor adulation for the Software program-as-a-Service (SaaS) class typically, we anticipate Vimeo’s entry to capital inside IAC will probably be rather more costly than entry to capital outdoors of IAC, and that capital will probably be useful to allow Vimeo to realize its highest ambitions,” Levin continued, including, “We simply examined Vimeo’s skill to entry capital with a small non-public fundraise to bolster Vimeo’s steadiness sheet and to repay capital to IAC.”
Over the summer time, Match Group (which owns quite a lot of courting providers, together with Tinder) completed its separation from IAC, with IAC’s possession distributed to IAC shareholders.
Vimeo, in the meantime, has shifted its focus over the previous couple years — as a substitute of making an attempt to compete with YouTube as a shopper video vacation spot, it sells video instruments to enterprises and different companies. For instance, it just lately launched a free video messaging product known as Vimeo Document.
The corporate says it has 1.5 million paying subscribers and greater than 3,500 enterprise shoppers, together with Amazon, Starbucks, Deloitte, Zendesk, Ceremony Assist and Siemens.
The brand new funding comes from Thrive Capital and GIC. In keeping with the earnings report, in Q3, Vimeo grew income by 44% year-over-year, to $75.1 million. And it had its first quarter of constructive EBITDA — $3.four million.
“Our purpose is to radically simplify how companies create and share video, with instruments which are way more intuitive and value efficient than they’ve been traditionally,” mentioned Vimeo CEO Anjali Sud in a press release. “We’re energized to entry further capital to pursue this monumental alternative with the total focus and scale of the Vimeo platform.”
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