Vimeo (NASDAQ:VMEO) shares dropped more than 2% pre-market today after the company reported mixed first-quarter results, with stronger-than-expected revenue overshadowed by a surprise earnings miss and muted near-term growth expectations.

The company posted a net loss of $0.02 per share, missing analyst forecasts of a $0.03 per-share profit. Revenue for the quarter came in slightly above expectations at $103.03 million, just ahead of the $102.93 million consensus, though it marked a 2% decline year-over-year.

While total bookings rose 3%, the modest increase did not translate into revenue growth. Still, the company pointed to key operational wins: Self-Serve bookings grew 6% year-over-year, reversing a three-year decline, and Vimeo Enterprise revenue surged 32% to $24 million, indicating growing traction in higher-value segments.

For full-year 2025, Vimeo expects low single-digit revenue growth and an operating loss of around $3 million. The company maintained its adjusted EBITDA guidance of $25 million to $30 million, suggesting profitability remains on track despite strategic reinvestment.