Yahoo Finance US$14.57: That's What Analysts Think Vimeo, Inc. (NASDAQ:VMEO) Is Worth After Its Latest Results
The first-quarter results for Vimeo, Inc. (NASDAQ:VMEO) were released last week, making it a good time to revisit its performance. Vimeo reported revenues of US$108m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.16 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Vimeo
Taking into account the latest results, the current consensus from Vimeo's eight analysts is for revenues of US$447.6m in 2022, which would reflect a meaningful 9.0% increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$0.59 per share. Before this latest report, the consensus had been expecting revenues of US$454.6m and US$0.55 per share in losses. So it's pretty clear consensus is mixed on Vimeo after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.
The consensus price target fell 16% to US$14.57per share, with the analysts clearly concerned by ballooning losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Vimeo, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$9.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Vimeo's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2022 being well below the historical 30% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. So it's pretty clear that, while Vimeo's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Vimeo's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Vimeo going out to 2024, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Vimeo you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
