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.
"We've done several acquisitions in the last few years, everything from live-streaming to AI-based video creation. We have also integrated all of that into Vimeo's platform," Sud, who joined now former parent company IAC Interactive in 2014 and took over as CEO in 2017, told Yahoo Finance Live. "So we will always look at M&A opportunities, and it is everything from new technology, institutional knowledge, intellectual property that we don't have yet as well as incredible teams and talent. We have always used M&A as another growth lever and we will do that as it makes sense."
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.
"We are seeing a ton of demand for our products so we are trying to get more awareness out there about the offering," said Sud, referring to the company's investment plans for the year.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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