Video hosting platform Vimeo (NASDAQ:VMEO) reported a profit and revenue beat for its third quarter results on Monday after the bell while guiding in line for the current quarter.

Shares of the company rose as much as 47% by midday on the Nasdaq on Tuesday.

Bookings were flat at $100M in the third quarter, and Vimeo Enterprise accounted for 25% of the total bookings. Subscribers grew by 26%, and ARPU was up 11% year-over-year in Q3.

The company said it believes it can grow bookings and revenue in 2025 as the scale and momentum in Vimeo Enterprise becomes "a more significant driver of overall growth." Vimeo said it is also seeing positive early feedback from its pricing initiatives in Self-Serve and stabilization in its OTT business.

"We are entering 2025 with stabilized marketing spend versus cuts of approximately 50% throughout 2024. Over the past two years, we have reduced operating expenses by more than $100 million in annual run rate while keeping quarterly gross profit in the low $80 million range, making room for investment. This cost structure, combined with our improving bookings trajectory, demonstrates the scalability and resilience of our business model," CEO Philip Moyer, who joined the company six months ago, said in the shareholder letter.

However, Seeking Alpha contributor Gary Alexander continued to stay bearish on the stock even after results.

"Vimeo surged... post-Q3 earnings, but its consumer segment's decline and enterprise growth aren't enough to justify the rally; I reiterate my sell rating. Vimeo's enterprise pivot shows traction but can't compensate for consumer subscription losses, which are outclassed by free alternatives like YouTube," he said in his November 5 report on the company.

Net income for the three months ended September 30 was $9.3M, compared to $8.5M for the same period last year.

On a per-share basis, the company earned 5 cents, beating the average analyst expectation by 4 cents.

Revenue fell 1.4% to $104.56M but beat estimates by over $5M.

For the fourth quarter, revenue is expected to be around $100M, in line with the consensus estimate.