Vimeo, Inc.

Good morning and thank you for joining Vimeo's 4th Quarter Earnings Live Q&A. We're excited to be here with you on video. Before we begin, a few comments. First, this session will be recorded and available on the Vimeo Investor Relations site later today. Second, we will discuss Vimeo's outlook and future performance. These forward-looking statements typically may be preceded by words such as we expect, we believe, we anticipate, or similar such statements. These forward-looking views are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. We've also provided information regarding certain key metrics and our non-GAAP financial measures, including certain forward-looking measures. These should be considered in addition to and not as a substitute for or in isolation from GAAP measures. Additional information regarding Vimeo's financial performance, including reconciliations with comparable gap measures, can be found in our earnings release and Vimeo's filings with the SEC, as well as in supplemental information posted on the investor relations section of our website. With that, I'll turn it over to our CEO, Anjali.

Hi, folks, and welcome to our fourth quarter Q&A. Last night we published an interactive shareholder video that walks through our results and outlook. Once again, we used Vimeo's product to make our update fully interactive. We know it's earnings season and your time is precious, so you can click and navigate through the content instead of watching it linearly or just reading the transcript. We of course hope that this helps to demonstrate how video can make important communications more engaging and easier to consume. So I'd like to highlight three things before we take your questions. First, we have great momentum in Vimeo Enterprise. Last quarter bookings were up 59% year over year, net revenue retention was again above 100%, and customer usage is looking very strong. We see Vimeo Enterprise as a big growth driver still in its early days. In under four years, we've built a business with a $65 million run rate in bookings that's growing faster than the rest of the market. So we'll lean into this momentum in 2023 with our investments. Second, we believe that by simplifying our product and focusing on the fundamentals, we can get self-serve back to growth. on a more normalized trajectory than the past few years. Our line of sight here is getting clearer as we get past the COVID cohorts, and we expect far more visibility over the next few quarters. And third, we're getting more efficient. This was our second straight quarter of positive adjusted EBITDA and free cash flow, and we entered 2023 with the flexibility to invest in growth while continuing to improve margins. This is a choice that we will keep assessing as we move through the year based on our results with the commitment to profitability in any growth scenario. So with that, let's jump into questions.

Thanks, Anjali. At this point, we're ready to take our first question. I'd now ask any of our covering analysts to raise your hand on Zoom and please remember to unmute your microphones and come on camera when asking your question. Our first question comes from Tom Champion at Piper Sandler.