Vimeo has raised $150 million in new fairness funding, introduced along with the third quarter earnings of its mum or dad 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 count on Vimeo’s entry to capital inside IAC will probably be way more costly than entry to capital outdoors of IAC, and that capital will probably be useful to allow Vimeo to attain its highest ambitions,” Levin continued, including, “We simply examined Vimeo’s potential to entry capital with a small personal fundraise to bolster Vimeo’s steadiness sheet and to repay capital to IAC.”
Over the summer season, Match Group (which owns quite a lot of relationship 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 an alternative of attempting to compete with YouTube as a client video vacation spot, it sells video instruments to enterprises and different companies. For instance, it lately launched a free video messaging product referred to as Vimeo Report.
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 response to the earnings report, in Q3, Vimeo grew income by 44% year-over-year, to $75.1 million. And it had its first quarter of optimistic EBITDA — $3.4 million.
“Our purpose is to radically simplify how companies create and share video, with instruments which are much more intuitive and cost-effective than they’ve been traditionally,” mentioned Vimeo CEO Anjali Sud in a press release. “We’re energized to entry extra capital to pursue this monumental alternative with the total focus and scale of the Vimeo platform.”