Vimeo Inc. (VMEO) stock is set to open significantly higher in pre-market trading on Tuesday, soaring 12.83% following the release of its better-than-expected second-quarter 2025 earnings report. The video software company's impressive results and improved outlook have sparked renewed investor confidence, building on the momentum from after-hours trading on Monday.

The surge comes after Vimeo reported quarterly earnings of $0.04 per share, dramatically beating the analyst consensus estimate of $0.00. This substantial earnings beat, coupled with improved profitability metrics, has been a key driver behind the stock's rally. While revenue growth was modest at $104.65 million, up slightly from $104.38 million in the same period last year, the company's bottom line showed significant improvement.

Investors were particularly encouraged by Vimeo's updated outlook for the full year 2025. The company raised its Adjusted EBITDA guidance to approximately $35 million, up from the previous range of $25 million to $30 million. This upward revision, along with the anticipated full-year revenue growth in the low single digits and an expected operating income of about $6 million, signals management's confidence in the company's financial trajectory. Vimeo's focus on key investment areas such as AI, enterprise security, and innovative video formats appears to be paying off, contributing to the positive market reaction.

The strong quarterly results and improved guidance led to a dramatic surge in after-hours trading on Monday, with Vimeo's stock price skyrocketing an additional 30.63%. This after-hours movement, combined with the pre-market surge, suggests that investors are reassessing Vimeo's growth potential and market position in the competitive video software industry. As the market opens, all eyes will be on Vimeo to see if it can maintain this momentum throughout the trading session.