Vimeo CEO Anjali Sud is taking the market’s initial muted reaction to the company’s trading debut on Tuesday in stride.
In fact, Sud is already back on the hunt for Vimeo’s next acquisition while also plotting out new investments in the company.
Vimeo is the latest company to be spun out of Barry Diller’s IAC Interactive (IAC), following in the footsteps of dating platform Match Group in July 2020. The online video platform debuted on the Nasdaq under the ticker symbol VMEOV.
The listing comes on the heels of Vimeo posting 57% sales growth in the first quarter as companies continued to invest in professional video tools during the pandemic. First quarter adjusted operating profits clocked in at $1.8 million, marking the third straight quarter of being in the green for Vimeo.
Even still, shares fell as much as 16% in early afternoon trading Tuesday likely as Vimeo has guided investors to being unprofitable for the balance of 2021 as it picks up spending on key investments.
Vimeo’s market cap stands at about $8 billion, above the $6 billion valuation it was afforded on an early January 2021 capital raise.