Vimeo stock rises after earnings as outlook calls for narrower loss than was previously forecast

Shares of Vimeo Inc. VMEO, -9.73% were up more than 10% in after-hours trading Wednesday after the maker of video tools forecast a narrower-than-expected loss for the year. The company notched a net loss of $21.4 million, or 13 cents a share, compared with a loss of $11.7 million, or 7 cents a share, in the year-earlier period. Analysts tracked by FactSet were anticipating a 17-cent per-share loss. Vimeo also reported $2.1 million in adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), up from about $800,000 on the non-GAAP metric a year before. Revenue rose to $108.1 million from $100.1 million, whereas the FactSet consensus was for $106.5 million. Executives now anticipate a $15 million to $18 million loss on the basis of adjusted Ebitda, whereas the company’s prior forecast called for a $20 million to $25 million loss on the metric. The FactSet consensus was for a $23 million adjusted Ebitda loss.