Okay. Counting down. Why don't we, why don't we kick off? Okay, good morning, everyone. Thank you all for joining. So I'm Tom Champion, Piper's Internet Analyst. I'm joined by Gillian Munson, CFO of Vimeo. She's here with Ken Goff from Finance and IR. Ken reminded me that we should refer to investors.vimeo.com for the safe harbor statement. Okay, good. Yes. You've been forewarned. We've got about 25 minutes this morning, so I'll kick it off. If there are any questions from the audience, we'll happily take those. Gillian, thank you for coming to Nashville. Happy to be here. Great. Great, great. Okay, so you've been in the seat two years now. Maybe walk us through kind of the arc of that time. Where did we start? Where are we today? Kind of what's ahead? Okay. I've been at Vimeo, gosh, a little over two years, and the thing that is the same is that the opportunity is tremendous for this company. The video is the vast majority of the traffic flowing across the internet. Companies are adopting video way more than they ever were before for every kind of job, whether it's training or whether it's HR or marketing, like, video is becoming the center of what many, many companies are doing, and we're all gonna have to get good at video. Our kids are all really good at video. We're all gonna have to get good at video. Those things are the same. The other thing that's the same is that Vimeo itself is a terrific company in terms of its financial structure. We are incredibly well capitalized, we have a really strong balance sheet, and we also have a brand that is just unparalleled in the industry. Now, what's gone on in the last two years? Vimeo was taken public kind of on the backside of COVID. It had a huge run in business through COVID, and we've had to adjust to the post-COVID period. It's taken longer than any of us would have liked to do that. You know, we've been trying to get the company back to a place of revenue growth, despite sort of cleaning products, getting rid of some products along the way. It has taken us a bit longer than we would like to have had that happen. However, we have also done some foundational work at the company. For example, our free cash flow has swung $100 million to the positive over the course of the last two years. So what we've been doing over the course of the last two years is really putting the fundamental building blocks in place, and getting that work done while we endeavor to get the business growing all in. The other thing we've been doing over the last two years is very significantly growing our enterprise business, which is really the base of the future for the company. And that business or that product, it's not really so much a business as it is a product. That product continues to grow at a really rapid clip, and soon we'll be at a place where the growth in that product will actually be the primary driver of the overall revenue of the company, as opposed to, it's a nice thing to have in the midst of a lot of different transitional things. There has been a lot of change at Vimeo, and kind of our challenges in getting to where we wanna be in terms of growth has caused some management turnover. We are. We now have, during my tenure, our third CEO. We had an interim CEO between the CEO who hired me and now. That interim CEO is on the board, and he's gone back to the board. And so we are now at a place of bringing on new management, having done a bunch of cleanup and really looking forward to what the next phase of Vimeo can be. So let's pick up on that, because we're big fans of Philip Moyer's background. AWS, Google, it doesn't get much more platinum than that- Yeah ... in this space. What you know, talk about Philip's influence. I think he's been at the company a little over a quarter. What's new? What has he brought to the company? So I think Philip, like others, and I'm really glad he still does, has a very consistent view of the power of video in companies, and he saw it from the inside at Google, so that makes me even more confident that really the opportunity is ours to lose, as opposed to, "Boy, we're trying to attract a market that doesn't exist." So I really love that enthusiasm. Philip is also quite good at breaking apart the business and trying to understand kinda where are we with customers? You know, he comes from a very customer-centric perspective, and I think he's quite good at understanding, in particular, starting in with enterprise customers, who he served for a very long time, but all the way down to self-serve customers, what they need, what they might be willing to pay, how do you clean up the message to them? Those kinds of things, and I think he's quite good at that. He's got a tremendous amount of energy, and one of the things about Philip that I think is great for Vimeo, particularly because he came from a large company, is that he already ran a very small public company. So he understands that, and this is when you're at a smaller company, particularly a small cap, that you sometimes you're turning the lights off at night, right? I think he really understands that, which is great for how you kind of go build piece by piece, how you kind of get to the next phase, so I'm really excited about having him at the company, and he's a terrific partner, and, you know, I feel really lucky that every, you know, leadership team we've had, I think, really is focused on the right things for the company, and I think Philip is gonna be a really great tool, you know, a really great- not tool, a really great person to partner with to go to the next phase for Vimeo. Awesome. Okay. Gillian, you talked about video, and I think we know video content is a huge portion of internet traffic, but maybe you could expand on that a little bit from a TAM dollars and cents perspective, and just tell us about the market opportunity. Why you know, what why is video so significant? So more and more, you know, I always think what our kids do is what we all do later, but video is the way most people are consuming content on the internet, and so that means if you're a company, how you talk to your employees, how you talk to your customers, is gonna come from video, and in addition, you're gonna end up building up this, like, pile of video. How do you deal with that? Well, that's where AI comes in, right? AI makes it easier to make that video. In fact, it'll probably exponentially make that video. But in addition, if you think about, for example, I'm sure some of you had this experience where, you know, it's late at night, you don't wanna bother people at your company, and you go onto the database to look for, "What was that, what was that PowerPoint I did, or, Google document I did?" And, you know, I'm searching for, equity. Let's just say that, you know, right? That's sort of an easy search, right, on Google Drive. You go in, you search for equity, you see what all the documents you looked at. How do you do that in video, right? That's what AI can do in video. So now you're gonna have the video, the corpus of data that is video, also be a searchable, usable, important base of information inside your company, as opposed to just documents. And so I think that's a second thing that's a really, really big deal. The market TAM is billions and billions and billions. Like, our size relative to the market TAM is tiny. And again, you know, from my perspective on Vimeo, sure, there's some economic things here and there, as we work our way through it, but it really is our opportunity to lose, as opposed to, like, an issue of, is the TAM big enough? And I know that sort of is always challenging when we talk to the investors, because there's a fair number of video-centric public companies that are teeny-tiny caps, not growing, so that kind of becomes a little confusing for folks. But, I don't, I don't see that as a limitation for us. Okay. So, tech conference, AI, gotta talk about it- Yeah ... right? And you just Yeah ... referenced it just now, maybe, you know, producing content, you know, searching and finding- Mm-hmm ... the value contained within video content. Yeah. But how is Vimeo attacking the AI opportunity? I mean, maybe you could talk about it from a you know, product and top-line perspective, but also, what are the cost savings opportunities in using AI? Yeah. So, Vimeo is one of the largest repositories of video out there, like second largest, and in our positioning, in terms of being really for business users largely, or, you know, using it for a purpose, it's oftentimes business, we're collecting all this video. We have one of the largest databases of video. Okay, now what do you do with that? Well, you put AI tools on top of it. To the example I gave you, where I'm searching it, you put AI tools on top of it in terms of how do you create video? How do you stitch videos together? How do you display them more effectively? There's just a lot you can do once you have that. The thing, there are a lot of very nifty AI feature companies out there, and they're all really interesting and, you know, like, there's all sorts of creative ways you can use AI, and all these wild things in video, actually. But the reality is, to get the kind of distribution platform and corpus of video we have is very hard, so it's, we always talk about it's easier to add AI to Vimeo than make a Vimeo out of a AI feature, and so we really feel like sitting at the center and continuing to collect that, gives us the opportunity to then say, "Okay, AI can do this for you. Oh, wait, we've got the database of video." Now we apply that to your database of video. So as these things evolve, the best ones we think we can apply to that database of video and then help people be really on the front end of what AI can do for them. So I think it's really exciting. It's, it's exciting in our large enterprise space, kind of the examples I've just given, but it is also very exciting for our smaller businesses, too, in terms of, particularly when you think about sort of the creative side of what AI can do for you. In terms of the saving of money, I think on the creation side, you know, AI is getting cheaper and cheaper as you go forward. You know, I used to be a disk drive analyst in a former life. I don't know if you knew that or not, but you know, in disk drives, we used to always talk about kind of the Moore's Law of disk drives, and everything's coming down, you know, 30% a year, which is true, and you could do more, you could save more, you can be more creative with technology, like to documents then. I think the same is true in video, and so that's why I like where we are, because we're gonna benefit from the reduction in cost over time, and be able to offer more and more and more to people, and we'll be able to charge for the use of AI on the platform. What we're not doing, though, is selling our users' data. That's actually a really important point about Vimeo. We are not in the position of selling our users' information to benefit the AI models. You would only do that on Vimeo if you gave the model permission. So that's a really important thing. It's a way we protect creators that we think is a really important thing. It's a really important positioning point for Vimeo. The other side of AI is automation inside our own business, and you know, we have a very big desire to use AI to just continue. It's AI and automation, you know, 'cause AI kind of gets blended together a little bit with automation. But AI and automation are really revolutionary to how you run a company over time, and we, like many others, are hoping to reduce our cost using it. This will be evolutionary as opposed to, like, you know, tomorrow kind of thing. But, I do think we have you know, we really wanna do that to get more scale out of the business as well. Makes sense. Okay, let's dive into the business segments, because- Mm-hmm ... there's two different stories going on there, and we should talk about enterprise. So, bookings growth remains strong. It did, you know, decelerated a little bit in- Mm-hmm ... in the second quarter, and so, you know, moderated, but continue to see very strong logo adds. Walk us through kind of, like, what you're seeing out of the enterprise segment and, you know, maybe the opportunity to price a little bit more aggressively going forward? Yeah, we still, we see a lot of growth, particularly at the higher end of enterprise right now. SMB is a little bit softer, out there in the marketplace, a little bit harder to get those folks over the, you know, close line. But what we're seeing is just an explosion in video usage. So a very large deal that came through for this quarter, I was just reading the win reports the other day, was literally a self-serve client, a very large retailer, a retail presence company, where they were a self-serve client, and they were blowing through their bandwidth with us because video was being used so much. So our sales people went and talked to them, and this deal ended up being, and because they were like, "Oh, my gosh, this is getting out of control. We need to organize this. We need to get SSO on this. We need to do all these things." And that was a very big win, and it's a very good example of the kinds of things that are happening inside that enterprise business. We're feeling really optimistic about it. That business is still relatively small in the realm of things, right? You know, I'll feel better when it's over $100 million, over $200 million. And so as a result, you do have sort of lumpiness in terms of year-over-year compares. You know, when you have a really, really big deal in one quarter, you feel it a year later in the year-over-year compares. We're still at that place where you get a little bit of lumpiness, but the overall trajectory and the overall demand profile is very, very good. And when I think about what we're doing in terms of where we're investing in product, I think the enterprises are gonna get much crisper on how they can use Vimeo, where they can use Vimeo, and I think that's gonna be good for the business as well. Has Philip made any changes in sort of like the go-to-market sales strategy there? It seemed like growth was mostly driven by ARPU- Yeah ... sequentially. Yeah. So how is he thinking about the go-to market? Philip really knows enterprise sales well. We're very lucky to have someone who can, like, go in and really know what to do there. He has this, that we probably aren't charging enough. And so we've been working on, you know, what would be the, really the right price. We do think we have pricing power in the market, so I think that's a place where there's focus. I mean, he's sort of in the realm of tenures. He's still a little bit early, right? So there's been a lot of organizational work he's doing. We've had to hire a fair number of executives, and so he's been very focused on that. But I have no doubt the focus on enterprise and how we go to market and being creative about that is there. The other thing that's going on from a go-to-market perspective, and this is kind of an ongoing process at Vimeo, is making sure we're finding the most efficient way to market for customers. The example I give is there may be, like, a $5,000 customer who will close because they talk to a human, and there may be a $100,000 customer that'd be happy to buy something online. We have to be able to figure that blend out and do that at the most efficient way we can, and that's an area that we're really fascinated with and working on as we move our way forward as well. Can you just, quickly talk on the competitive landscape? Mm-hmm ... too, in enterprise? Who are you going up against in a bake-off? So that example I gave of the self-serve client, we're going up against no one. It's just us. They're just using our product so much that we get to call them, and they like there's no one to compete with. But you know in other cases, we're competing with either homegrown combinations of technologies and storage technologies in particular. Kaltura is a vendor we see from time to time. We don't really see any change in terms of like the Google's, Adobe's, Microsoft's of the world. They're out there. You can pull together some of their technology to do some video stuff, but nothing really has changed there. And you know again the way I view enterprise is there's a fair amount of greenfield available out there in companies, and it's really ours to lose. Okay, let's, let's then talk about self-serve. Yeah. You know, this is the farm system for- Yeah ... some of your enterprise customers. So, you've pulled back on marketing spend. What is, you know, what should be the rational expectation there? Because it seems like we're kind of hovering at the break-even growth on a bookings basis. Yeah. You know, what- Yeah ... when do we get that back to above par? Yeah, I mean, that business has been at, you know, a couple% down over a while. We still believe that business can grow. I know, and it, it's hard to say because, obviously, we haven't delivered that growth yet. So I, you know, I say that with some humility, that I haven't been right on that yet. But I do still believe that business can, at a minimum, get back to even and then grow over time. I think that's gonna come on the back of a reorientation of how we approach the marketing. So we've pulled back the marketing. We have a new CMO. We're being a lot smarter about making sure that video professionals know who we are and what we stand for. It's really, really important that we're really keen on what they're actually doing on Vimeo, which the reality of the situation is they are uploading videos, and they are distributing that video. That is what people are primarily doing. And I think Vimeo got a little lost in, like, all the, like, more money getting spent on things like the creation side. We have a wonderful, really price-competitive tools on creation, and we love that customers use it. We want customers to use it, but really making sure people understand the best place to put a video in a central repository and then send it out to the world, in any which way you wanna use video, is on Vimeo, and I think you're gonna see a real focus on that messaging. In addition, and we've talked about this over the years, and it takes a long time. It's always so frustrating for investors. It takes so long. But our product was super messy two years ago, meaning if you came into Vimeo anytime, and if you're one of the hundreds of millions of people that ever signed up for Vimeo, when you come back to us, say, two, three years later, and you wanna buy it, what you're shown as your products is different from, you know, from Ken to me to you, and, and depending on when you came in. And there's a lot of infrastructure to do to clean it up so that everybody sees the same products. We're doing some work there. We're working on what the right price points are. and I think that these are all things that clean up the product. In addition, the product could be a little confusing. Like, in a way, you know, using Vimeo was sort of on a professional basis, like, you almost like, I sometimes would get lost trying to use the product myself, which is sort of terrible. Now, I can use it. I am, like, the lowest common denominator, and now I can use the product right. That product popped up on something I was doing, and I was like, "Ah, I should make a video 'cause I'm here, and my team's there, and I gotta fix this slide for something," and like, "Oh, I can just pop a little video in here and send it off to the team." I didn't do it because I was racing to get over here, but I could, and I think that these are the things, making it dead easy to use these sorts of tools, do embeds, do all the things that we do really well. I think there's lots of fundamental work there that's really... Those are unsung heroes, the folks that are doing that work, but I think it's becoming more and more to fruition. That's gonna cause us to convert people to customers better, and as we kinda reset the marketing, you know, get that business back. We still believe that business can grow, and but we are humbled by the fact that it hasn't. The reality of the Vimeo kinda growth story is that if you just, even with reasonably conservative assumptions on what the enterprise business does over time, as the enterprise business gets bigger, you can actually withstand declines in self-serve and still grow Vimeo on the back of the enterprise business, and it's just taken time for that business to get bigger, but you can do that. We think the faster path to growth is to get this self-serve business flat, back to flat and growing, and that's what we are endeavoring to do. We think we have the right resources to do that, but, you know, that's kind of the blend of how we've been thinking about it. Okay. I think, maybe I'll ask one more, and then take any questions from the audience. Sure. One of the real standout features from the 2Q results was the strong EBITDA performance. Mm-hmm. Again, I think, you know, based on your forty million odd, you know, guide for the year, you're sitting, you know, well on track- Mm-hmm ... let's put it that way. Mm-hmm. The implication would be that, you know, maybe you'd be leaning into investment in the back half of the year. Yeah. You know, how should we think about that? Where is that going? And, you know, maybe just talk about the- Yeah ... the free cash flow creation. I mean, I think that we've put a lot of discipline into Vimeo over the last two years, and I'm very proud of what we've done because of the swing we've made in free cash flow. That's a big deal. That's hard to do at a company and, you know, and not have revenue go down a meaningful amount, but it really hasn't. At the end of the day, Vimeo is still quite a large business, and if you actually take the business ex the products that we're getting rid of, you know, you're at flat to up a little bit, actually. So I feel really, really good about it, and that's fundamental discipline that's gonna make our business have more scale over time. That said, we've cut back a bunch. We have a balance sheet that's very strong. So then you get to capital allocation. You can either buy back stock, you can invest in the business, or you can do M&A, and what you're seeing us and what we've said is we wanna invest in the business for sure, and we are buying back stock, too. So we're doing both, and I think that you're starting to see us say, "Okay, we've done the hard work to have discipline. Now let's use the assets that are Vimeo to get to the next level," and you're starting to see us do that work. And so that's exactly what we're doing. And our general view at this point is that a point of growth is worth way more in terms of creating shareholder returns than the EBITDA. We do not, but I wanna be very careful here. We do not wanna be EBITDA negative. That is, like, not in the cards for Vimeo. We are gonna be a profitable business, but we do think on the margin, using some of our money to invest in getting to better growth sooner is the way to go, and that's what we are doing. And with Philip here, I feel really great about the opportunity to go do that. Great. Any- I will. Sure. The team does a great job just kind of using, like, the earnings calls and the earnings video. Mm-hmm. What does that kind of prompt you as someone maybe that, like, wasn't exposed to that prior to the role? Yeah, like, you know, it. I whenever I hang out with other CFOs, which none of us ever do, 'cause we're all working all the time, you know, I do tell everybody: "Do your calls on video." Like, it really does make a difference. People can see and feel how you're talking. There's just a lot more that comes across in video than does not. In fact, I don't know, you know, how many of you use video on a day-to-day, but when I do a call and the other side's on phone, not on video, it's the most frustrating thing now, right? Because I can't get that body language across, and so I think it's really important. Now, to be fair, I'm very spoiled, as it because we have the best video professionals in the world at Vimeo, and they, they do make us quite good on this. So not every... You know, it's not as simple as I say, but, it's not that hard either, and most companies have those kinds of people at their company in some sort of production thing, so you can really make the IR stuff work. Outside that, like, videos, like, my CMO sends me video. Like, if I ask a question from him, he oftentimes now sends me a slide or two with a video explaining what he's showing me. That's actually how he's, like, getting me over the hump. Like, oh, I have a question on X. He's like: "Hey, I'm in Boston, you're in wherever. Let me just send you a quick video tonight, so I can explain it to you. If you have more questions, come back to me." Super effective. Super, super effective. So yeah, from the IR perspective, I love using it. I would never not use it going forward, and I encourage most of the companies I'm involved with to do it. Our friends, and then internally, it's getting easier and easier and easier, and that's the idea. I think- Other questions? I think we're about at time. Gillian, thank you so much- Thank you ... for being a part of the- Thanks for having us here. We really appreciate it.