#1vimeo Company Presentation | December 3, 2018#2Safe Harbor Statement Forward-Looking Statements. This presentation, dated December 3, 2018, may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "estimates," "expects" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: Vimeo's future financial performance, business prospects and strategy and anticipated trends in the online video market. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: changes in regulatory landscape, in particular changes in laws that might increase the liability of online intermediaries for user-generated content; reputational damage caused by problematic user content or our decisions to remove (or not remove) it; changes in policies implemented by third party platforms upon which we rely for traffic and distribution of mobile apps; increased competition in the online video category; our ability to convert visitors into uploaders and uploaders into paying subscribers; our ability to retain paying subscribers by maintaining and improving our value proposition; our ability to provide video storage and streaming in a cost-effective manner; our ability to successfully scale our enterprise business; our ability to protect sensitive data from unauthorized access; our ability to expand successfully into international markets; and adverse changes in economic conditions. Certain of these and other risks and uncertainties are discussed in our parent company's (IAC) SEC filings. Other unknown or unpredictable factors that could also adversely affect our business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of IAC and Vimeo management as of the date of this presentation. Vimeo Metrics. Except as where otherwise noted, Vimeo metrics are as of Q3 2018. We do not undertake to update any metrics or forward-looking statements. V|2#3Vimeo is my storefront, my business card, my website, and my #1 tool besides a camera. Cy Kuckenbaker Filmmaker, Subscriber since 2010 Vimeo is the creative standard for hosting video. There's no alternative, and there doesn't need to be. Meg Volk BBH Agency, Subscriber since 2014 V | 3#4We are entering a new era for video www 20th Century Video is art & entertainment Hollywood Studios Audiovisual Pros A Avid Adobe Early 2000s Democratization of personal video Self-made creators Consumers YouTube f Next Phase Democratization of professional video Everyone, including SMBS and organizations vimeo V|4#5The industry standard for video hosting 2004 - 2014 Cloud storage ● Embeddable video player ● Ad-free alternative to YouTube • Viewing destination Enabling professional video at scale Today Tomorrow ● K End-to-end workflow in the cloud • Agnostic distribution hub (Switzerland for creators) • Flexible monetization & smart insights • High quality video creation ... and accelerated growth trajectory in $50 billion market V|5#6We build tools that empower creators to tell exceptional stories Creation Make better videos, faster Find & license premium content Produce & manage videos at scale Review & collaborate with teams Host Videos Distribution Maximize audience & revenue Reach your audience, everywhere Engage & convert viewers Monetize & measure results V | 6#7Freemium model fuels land & expand strategy SELF-SERVE SALES $7/mo Plus For solo creators and freelancers. ● 250GB every year ● Advanced privacy $20 /mo Pro For creative pros and agencies. . 1TB every year • Branded player • Video review Free $50 /mo Business For SMBs and marketers. . 5TB total storage . 10 team members • Marketing tools Social distribution Enterprise Solutions $75 /mo Premium For teams and live streaming professionals. 7TB total storage ● Unlimited live streaming • Stream to multiple places • Advanced analytics Live event support ● V | 7#8Differentiated position as only all-in-one video solution Creation Adobe ✓ Stock footage, editing X Hosting, player, distribution Collaboration Google Drive Dropbox ✓ Workflow, tools X Player, distribution V f Social Media in ✔ Free, built-in audience X Multi-platform, brand control, monetization options Enterprise Solutions brightcove B BAMTECH MEDIA ✔ Support, SLAs X Cost, ease of use, scalability V | 8#9Rapidly expanding universe of creators Creative Pros "My business creates video" Editors Filmmakers Producers Directors Videographers Unilever 330000 E Red Bull Yale Jet Spotify ARIZIER CINEMA Hillson HURCH lululemon patagonia + American Red Cross TESLA WORLD ECONOMIC FORUM Douglas Elliman REAL ESTATE JILLIAN MICHAELS Allstate &NBA Businesses "My business needs video" SMBs Marketers Agencies Institutions Enterprises V | 9#10The SaaS solution for video ~250 Million Videos uploaded 99% Subs are self-serve 1% Top 10 customers as % of revenue ~90 Million Registered members 90% Subs on annual plans ~5 Years Subscriber average life ~1 Million SaaS subscribers 50% Subs outside U.S. +50% Y/Y New subscriber ARPU V 10#11Customers are happy, staying and paying 5 4 3 2 1 0 Average Life Per Sub Cohort (Years) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 - 2009 - 2013 - 2010 2014 - 2011 - 2015 Vimeo self-serve customers only. - 2012 - 2016 5.0 4.0 3.0 2.0 1.0 0 Revenue Per Sub Cohort (Indexed) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 - 2009 - 2013 - 2010 - 2014 - 2011 - 2015 - 2012 - 2016 2.2 2.0 1.8 1.6 1.4 1.2 1.0 Lifetime Revenue Per Subscriber (Indexed) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 V 11#12Unstoppable tailwinds, as businesses embrace video Creator Population (willing to pay) 36M 2018 Creative Pros / Enthusiasts 90M+ 2023 Businesses BCG, IDC, IMF, RBC, SBA, U.S. Economic Census Data & Company Estimates. Total Addressable Market $20B 2018 $50B+ 2023 @ $125 ARPU @ $1.5K ARPU V | 12#13Consumers now expect video from every business 25M+ Website builder customers GoDaddy Un SQUARESPACE WIX Over 70% of consumers are more likely to purchase after watching a product video f 75M+ Social media business pages in Online video ads get 3x more clicks than other ad formats Estimates based on company public reports, U.S. Census data, Animoto, Business Insider, Forrester. 8M+ E-commerce marketplace listings Etsy S shopify Video descriptions increased online retail conversions by 2.5x V 13#14Advanced use cases gaining traction across verticals Faith TBN KABBALAH Digital media TR BECA SHORTLIST IndieFlix $1B+ OTT Technology Spend Education Preschool SEATTLE. Prodigies SCIENCE FOUNDATION TV Sports EAGLES G PACKERS TA Fitness TRACY ANDERSON LESMILLS Lifestyle unplug Martha STEWART TV Government HOUSING AUTHORITY U.S. Chamber of Commerce Schools COLUMBIA UNIVERSITY MICHIGAN STATE UNIVERSITY Estimates based on Kagan, Wainhouse. OTT = Over-the-Top providers who manage the ingest and delivery of video content. $1B+ Corporate Comms Spend Brands Marriott BOEING Tech Linkedin HubSpot Non-profits BOY SCOUTS OF AMERICA WORLD ECONOMIC FORUM Finance Fidelity NYSE V 14#15Clear, validated growth levers 1 2 3 4 Grow Brand Awareness Significant runway to scale marketing, particularly outside the U.S. Unlock Freemium Funnel Optimize tools and experience to turn millions of free users into subscribers Expand Enterprise Market Invest in product and sales force to offer every organization a turnkey and affordable solution Launch More Premium Tools Continue advancing product to increase user satisfaction, adoption and retention V | 15#161 Grow Brand Awareness Distinctive brand, low current penetration and attractive unit economics ✔ Lots of room to grow TAM penetration <3% U.S. unaided brand awareness <8% ● Runway to scale profitably ● Lifetime Gross Margin to Customer Acquisition Cost = 3x ● Subscribers getting more valuable while gross margin steadily improves Big opportunity outside U.S. Over 50% of subscribers are outside U.S., but only a fraction of spend is translated or localized ● V 16#172 Unlock Freemium Funnel Significant room to convert more of free user base Meaningful portion of free members are creative pros & businesses ● Increase feature awareness (<30% aware of paid features) Launch new creation tools to drive more uploaders Uploader conversion rate outside U.S. is ~1/2 the U.S. rate ● Localize user experience Continue upselling subscribers to higher value tiers ~90 Million Registered Members -16 Million Uploaders -1 Million Subscribers V 17#183 Expand Enterprise Market Promising early dynamics for future growth Large TAM driven by key verticals (Media, Faith, Sports, Fitness, Corporate Communications) Intuitive, feature-rich product, excellent support and accessible pricing (versus custom, expensive services) Unique sales model: ~$20K average deal size with short sales cycle (< 1 month) Nearly 100% of pipeline today is inbound, with plenty of room to hire and scale outbound efforts 1.5 1.0 0.5 0 4.0 3.0 2.0 1.0 0 2016 Average Deal Size (Indexed) 2017 2016 New Bookings per Sales Rep (Indexed) 2018 2017 2018 V | 18#194 Launch More Premium Tools Continuously add value to paid tiers Lifetime revenue more than 2x since 2009 as we launched new products and higher-value tiers Over 30% of SaaS revenue comes from tiers added in last two years New subscriber ARPU +50% Y/Y since launch of live streaming and enterprise offerings Roadmap focused on new creation and distribution tools for SMBs and expanding enterprise functionality Vimeo self-serve customers only. 2.2 2.0 1.8 1.6 1.4 1.2 1.0 Lifetime Revenue Per Subscriber (Indexed) Pro Tier Business Tier Unlimited Tier 2009 2010 2011 2012 2013 2014 2015 Live Tier 2016 2017 2018 V 19#20Acceleration continues across key metrics Subscribers by Quarter 1,000,000 950,000 900,000 850,000 800,000 750,000 700,000 650,000 600,000 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Nearly 1M subscribers Includes Livestream acquisition completed in Q4 2017. Q2 18 Q3 18 LTM SaaS ARPU by Quarter $150 $135 $120 $105 $90 $75 LI Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 ARPU up ~3x since inception V | 20#21Strong growth for both top and bottom line LTM Revenue by Quarter ($M) $160 $140 $120 $100 $80 $60 $40 $20 $0 Q1 17 Q1 18 Q2 18 $160M annual run rate Includes Livestream acquisition completed in Q4 2017. Q3 18 LTM Gross Margin by Quarter ($M) $100 $80 $60 $40 $20 $75 || Q1 17 Q4 17 Q1 18 Q2 18 Margins 60%+ and scaling Q3 18 V | 21#22Long term financial goals Y/Y Growth Subscribers ARPU Revenue Ex-Acquisitions % of Revenue Gross Margin Adjusted EBITDA 2018 ~9% ~25% ~27% 2018 ~60% ~(16%) Near Term Target 10 - 15% 10 - 15% 20 - 30% Long Term Target 70%+ 20%+ V | 22