Vimeo Makes its Trading Debut and Sinks

American video hosting, sharing, and services platform Vimeo, headquartered in New York City, has made its trading debut this week. A rocky one at that. The company saw its shares fall on their first day of trading.

Vimeo CEO Anjali Sud says the firm is looking for M&A deals is taking the market’s initial muted reaction to the company’s trading debut on Tuesday in stride.

“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 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.”

Sud had joined now former parent company IAC Interactive in 2014 and took over as CEO in 2017.

Vimeo was 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 and fell as much as 16%.

Vimeo had posted 57% sales growth in the first quarter. First quarter adjusted operating profits were $1.8 million, marking the third straight quarter of positive profits.

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, optmistically.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.