IAC / Interactive (NASDAQ: IAC) completed its online video platform spin-off Vimeo (NASDAQ: VMEO) as YouTube rival started trading on the Nasdaq exchange today.
Vimeo is the 11th company created by IAC, most recently a home service listing site Angie’s List in March, and before that, online dating service Match group.
Vimeo released its first quarter results earlier this month, showing revenue grew 57% year over year, generating 67% gross margin. It also generated adjusted profits of $ 1.3 million compared to adjusted losses of $ 12 million a year ago.
The video site is targeting a greater share of the video hosting, distribution and monetization market by offering a suite of tools and services to filmmakers. It now has nearly 1.6 million subscribers, up 25%, who generated an average of $ 233 in revenue per user, a 27% increase from last year.
Vimeo also places greater importance on its positioning as a business communication tool. CEO Anjali Sud said, âGoing forward, we are focusing on product innovation to enable every business to use video with much simpler, more powerful and more profitable tools than ever before.
With more than 4,400 customers, including Amazon, Comcast, Intuit, and Spotify, corporate revenue more than doubled in the quarter.
Vimeo fell out of the gate, however, and communications stock fell 20% on Tuesday morning, trading at around $ 41 a share.
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