Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-251656-01 | |
Entity Registrant Name | VIMEO HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-4334195 | |
Entity Address, Address Line One | 555 West 18th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10011 | |
City Area Code | 212 | |
Local Phone Number | 314-7300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Central Index Key | 0001837686 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 90 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash | $ 10 | $ 0 |
TOTAL ASSETS | 10 | 0 |
SHAREHOLDERS' EQUITY: | ||
Preferred Stock, value | 0 | 0 |
Additional paid-in-capital | 9 | 9 |
Stock subscription receivable | 0 | (10) |
Total shareholders' equity | 10 | 0 |
Vimeo Inc. | ||
ASSETS | ||
Cash and cash equivalents | 316,305,000 | 110,011,000 |
Accounts receivable, net | 14,121,000 | 12,785,000 |
Other current assets | 11,335,000 | 7,932,000 |
Total current assets | 341,761,000 | 130,728,000 |
Leasehold improvements and equipment, net | 3,320,000 | 3,321,000 |
Goodwill | 219,337,000 | 219,337,000 |
Intangible assets with definite lives, net | 8,967,000 | 10,854,000 |
Other non-current assets | 11,124,000 | 6,839,000 |
TOTAL ASSETS | 584,509,000 | 371,079,000 |
LIABILITIES: | ||
Accounts payable, trade | 2,797,000 | 3,324,000 |
Promissory note due on demand—related party | 0 | 44,565,000 |
Deferred revenue | 147,766,000 | 137,436,000 |
Accrued expenses and other current liabilities | 40,102,000 | 47,432,000 |
Total current liabilities | 190,665,000 | 232,757,000 |
Long-term debt—related party | 0 | 50,000,000 |
Other long-term liabilities | 4,710,000 | 3,242,000 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Preferred Stock, value | 0 | 0 |
Additional paid-in-capital | 667,348,000 | 366,676,000 |
Accumulated deficit | (279,696,000) | (283,009,000) |
Accumulated other comprehensive loss | (109,000) | (87,000) |
Total shareholders' equity | 389,134,000 | 85,080,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 584,509,000 | 371,079,000 |
Common Stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 0.90 | 0.90 |
Common Stock | Vimeo Inc. | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 928,000 | 837,000 |
Class B common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 0.10 | 0.10 |
Class B common stock | Vimeo Inc. | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | $ 663,000 | $ 663,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 89,422 | $ 56,968 |
Cost of revenue (exclusive of depreciation shown separately below) | 24,956 | 18,358 |
Gross profit | 64,466 | 38,610 |
Operating expenses: | ||
Research and development expense | 21,475 | 15,293 |
Sales and marketing expense | 32,069 | 25,125 |
General and administrative expense | 14,518 | 12,204 |
Depreciation | 115 | 58 |
Amortization of intangibles | 1,887 | 3,123 |
Total operating expenses | 70,064 | 55,803 |
Operating loss | (5,598) | (17,193) |
Interest expense | (64) | 0 |
Interest expense–related party | (726) | (2,453) |
Other income (expense), net | 10,086 | (59) |
Earnings (loss) before income taxes | 3,698 | (19,705) |
Income tax provision | (385) | (555) |
Net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | $ 3,313 | $ (20,260) |
Per share information attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: | ||
Basic earnings (loss) per share (USD per share) | $ 0.02 | $ (0.14) |
Diluted earnings (loss) per share (USD per share) | $ 0.02 | $ (0.14) |
Stock-based compensation expense by function: | ||
Compensation expense | $ 4,912 | $ 2,016 |
Cost of revenue | ||
Stock-based compensation expense by function: | ||
Compensation expense | 20 | 4 |
Research and development expense | ||
Stock-based compensation expense by function: | ||
Compensation expense | 1,720 | 460 |
Sales and marketing expense | ||
Stock-based compensation expense by function: | ||
Compensation expense | 322 | 157 |
General and administrative expense | ||
Stock-based compensation expense by function: | ||
Compensation expense | $ 2,850 | $ 1,395 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | $ 3,313 | $ (20,260) |
Other comprehensive loss: | ||
Change in foreign currency translation | (22) | (120) |
Total other comprehensive loss | (22) | (120) |
Comprehensive income (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock | $ 3,291 | $ (20,380) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands | Total | Vimeo Inc. | Common StockVimeo Inc.Common Stock | Common StockVimeo Inc.Class B common stock | Additional Paid-in-CapitalVimeo Inc. | Accumulated DeficitVimeo Inc. | Accumulated Other Comprehensive LossVimeo Inc. |
Balance at beginning of period at Dec. 31, 2019 | $ 23,633,000 | $ 750,000 | $ 660,000 | $ 223,754,000 | $ (201,299,000) | $ (232,000) | |
Balance at beginning of period (shares) at Dec. 31, 2019 | 75,000 | 66,021 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | (20,260,000) | (20,260,000) | |||||
Other comprehensive loss | (120,000) | (120,000) | |||||
Stock-based compensation expense | 2,016,000 | 2,016,000 | |||||
Issuance of common stock to IAC/InterActiveCorp as reimbursement for settlement of Vimeo, Inc. stock appreciation rights | 1,000 | $ 1,000 | |||||
Issuance of common stock to IAC/InterActiveCorp as reimbursement for settlement of Vimeo, Inc. stock appreciation rights (shares) | 130 | ||||||
Other | 566,000 | 566,000 | |||||
Balance at end of period at Mar. 31, 2020 | 5,836,000 | $ 750,000 | $ 661,000 | 226,336,000 | (221,559,000) | (352,000) | |
Balance at end of period (shares) at Mar. 31, 2020 | 75,000 | 66,151 | |||||
Balance at beginning of period at Dec. 31, 2020 | $ 0 | 85,080,000 | $ 837,000 | $ 663,000 | 366,676,000 | (283,009,000) | (87,000) |
Balance at beginning of period (shares) at Dec. 31, 2020 | 83,656 | 66,285 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | 3,313,000 | 3,313,000 | |||||
Other comprehensive loss | (22,000) | (22,000) | |||||
Stock-based compensation expense | 4,912,000 | 4,912,000 | |||||
Issuance of common stock to IAC/InterActiveCorp as reimbursement for settlement of Vimeo, Inc. stock appreciation rights | (4,401,000) | $ 1,000 | (4,402,000) | ||||
Issuance of common stock to IAC/InterActiveCorp as reimbursement for settlement of Vimeo, Inc. stock appreciation rights (shares) | 133 | ||||||
Issuance of common stock, net of fees | 299,750,000 | $ 90,000 | 299,660,000 | ||||
Issuance of common stock, net of fees (in shares) | 9,000 | ||||||
Other | 502,000 | 502,000 | |||||
Balance at end of period at Mar. 31, 2021 | $ 10 | $ 389,134,000 | $ 928,000 | $ 663,000 | $ 667,348,000 | $ (279,696,000) | $ (109,000) |
Balance at end of period (shares) at Mar. 31, 2021 | 92,789 | 66,285 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | $ 3,313 | $ (20,260) |
Adjustments to reconcile net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders to net cash used in operating activities: | ||
Stock-based compensation expense | 4,912 | 2,016 |
Amortization of intangibles | 1,887 | 3,123 |
Depreciation | 115 | 58 |
Current period provision for credit losses | 82 | 824 |
Gain on the sale of an asset | (10,217) | 0 |
Other adjustments, net | 231 | 1,371 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,278) | (3,220) |
Other assets | (1,829) | (1,222) |
Due to IAC/InterActiveCorp | 2,974 | 6,239 |
Accounts payable and other liabilities | (10,493) | (4,136) |
Deferred revenue | 11,281 | 14,819 |
Net cash used in operating activities | (22) | (388) |
Cash flows from investing activities: | ||
Capital expenditures | (135) | (77) |
Proceeds from the sale of an asset | 7,768 | 0 |
Other, net | 98 | |
Net cash provided by investing activities | 7,633 | 21 |
Cash flows from financing activities: | ||
Proceeds from sale of common stock, net of fees | 299,750 | 0 |
Principal payments on related-party debt | (94,565) | 0 |
Proceeds from issuance of related-party debt | 0 | 2,442 |
Deferred financing costs | (1,440) | 0 |
Withholding taxes paid on behalf of Vimeo employees for the exercise of stock appreciation rights | (4,733) | (582) |
Net cash provided by financing activities | 199,012 | 1,860 |
Total cash provided | 206,623 | 1,493 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (132) | (189) |
Net increase in cash and cash equivalents and restricted cash | 206,491 | 1,304 |
Cash and cash equivalents and restricted cash at beginning of period | 110,037 | 1,963 |
Cash and cash equivalents and restricted cash at end of period | $ 316,528 | $ 3,267 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) | Mar. 31, 2021$ / sharesshares |
Preferred stock, par value (USD per share) | $ / shares | $ 0.01 |
Preferred stock authorized (in shares) | 100,000,000 |
Preferred stock issued (shares) | 0 |
Preferred stock outstanding (shares) | 0 |
Vimeo Inc. | |
Preferred stock, par value (USD per share) | $ / shares | $ 0.01 |
Preferred stock authorized (in shares) | 50,000,000 |
Preferred stock issued (shares) | 0 |
Preferred stock outstanding (shares) | 0 |
Common Stock | |
Common stock, par value (USD per share) | $ / shares | $ 0.01 |
Common stock authorized (in shares) | 1,600,000,000 |
Common stock issued (shares) | 90 |
Common stock outstanding (shares) | 90 |
Common Stock | Vimeo Inc. | |
Common stock, par value (USD per share) | $ / shares | $ 0.01 |
Common stock authorized (in shares) | 150,000,000 |
Common stock issued (shares) | 92,789,000 |
Common stock outstanding (shares) | 83,656,000 |
Class B common stock | |
Common stock, par value (USD per share) | $ / shares | $ 0.01 |
Common stock authorized (in shares) | 400,000,000 |
Common stock issued (shares) | 10 |
Common stock outstanding (shares) | 10 |
Class B common stock | Vimeo Inc. | |
Common stock, par value (USD per share) | $ / shares | $ 0.01 |
Common stock authorized (in shares) | 150,000,000 |
Common stock issued (shares) | 66,285,000 |
Common stock outstanding (shares) | 66,285,000 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) | Mar. 31, 2021$ / shares |
Common Stock | |
Common stock, par value (USD per share) | $ 0.01 |
Common Stock | Vimeo Inc. | |
Common stock, par value (USD per share) | 0.01 |
Class B common stock | |
Common stock, par value (USD per share) | 0.01 |
Class B common stock | Vimeo Inc. | |
Common stock, par value (USD per share) | $ 0.01 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
The Company and Summary of Significant Accounting Policies [Line Items] | |
THE COMPANY, ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION On December 22, 2020, IAC/InterActiveCorp ("IAC") announced that its Board of Directors approved a plan to spin-off its full stake in Vimeo, Inc. ("Vimeo") to IAC shareholders. IAC's Vimeo business will be separated from the remaining businesses of IAC through a series of transactions (which we refer to as the "Spin-off") that, if completed in their entirety, will result in the transfer of IAC's Vimeo business to Vimeo Holdings, Inc. ("SpinCo"), a wholly-owned subsidiary of IAC, with SpinCo becoming an independent, separately traded public company through a spin-off from IAC, and Vimeo, Inc., the IAC subsidiary that currently holds the Vimeo business, becoming a wholly-owned subsidiary of SpinCo. In connection with the foregoing, SpinCo will be renamed as Vimeo, Inc. and Vimeo will be renamed as Vimeo.com, Inc. The proposed transaction is subject to a number of conditions including final approval by IAC’s Board of Directors, approval of the separation proposal by IAC stockholders, and other customary conditions and approvals and is expected to close pre-market on May 25, 2021. In connection with the Spin-off, SpinCo was incorporated as a Delaware corporation in December 2020. SpinCo currently does not have any material assets or liabilities, nor does it engage in any business or other activities and, other than in connection with the Spin-off, will not acquire or incur any material assets or liabilities, nor will it engage in any business or other activities. The consolidated balance sheet reflects the initial capitalization of SpinCo upon its incorporation. Basis of Presentation The balance sheet is presented in accordance with accounting principles generally accepted in the United States of America. Principles of Consolidation The consolidated financial statement includes the accounts of SpinCo and its wholly-owned subsidiary, Stream Merger Sub, Inc., a Delaware corporation. All inter-company transactions and balances have been eliminated in consolidation. |
Vimeo Inc. | |
The Company and Summary of Significant Accounting Policies [Line Items] | |
THE COMPANY, ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Spin-off On December 22, 2020, IAC/InterActiveCorp ("IAC") announced that its Board of Directors approved a plan to spin-off its full stake in Vimeo, Inc. ("Vimeo") to IAC shareholders. IAC's Vimeo business will be separated from the remaining businesses of IAC through a series of transactions (which we refer to as the "Spin-off") that, if completed in their entirety, will result in the transfer of IAC's Vimeo business to Vimeo Holdings, Inc. ("SpinCo"), a wholly-owned subsidiary of IAC, with SpinCo becoming an independent, separately traded public company through a spin-off from IAC, and Vimeo, Inc., the IAC subsidiary that currently holds the Vimeo business, becoming a wholly-owned subsidiary of SpinCo. In connection with the foregoing, SpinCo will be renamed as Vimeo, Inc. and Vimeo will be renamed as Vimeo.com, Inc. The proposed transaction is subject to a number of conditions including final approval by IAC’s Board of Directors, approval of the separation proposal by IAC stockholders, and other customary conditions and approvals and is expected to close pre-market on May 25, 2021. IAC does not currently own 100% of Vimeo. As a result, Vimeo sought and received approval from holders of Vimeo's voting stock to merge Vimeo with a subsidiary of SpinCo that would result in Vimeo being wholly-owned by SpinCo in connection with the Spin-off. The merger remains subject to a number of conditions. If the Spin-off is effected and the Vimeo merger is completed, the holders of shares of IAC capital stock outstanding immediately prior to the Spin-off will continue to own all of the outstanding shares of IAC capital stock, and will become the direct owners of a percentage of the outstanding shares of SpinCo capital stock approximately equal, in the aggregate, to IAC’s indirect ownership interest in Vimeo prior to the Spin-off. The remaining shares of SpinCo’s outstanding capital stock will, if the Vimeo merger is completed, be owned by Vimeo’s pre-separation third-party stockholders. If the Spin-off is completed but the Vimeo merger is not completed, the shares of SpinCo capital stock issued to IAC stockholders in the Spin-off will initially constitute all of the outstanding shares of SpinCo capital stock immediately following the consummation of the Spin-off, Vimeo’s pre-separation third-party stockholders will initially remain stockholders of Vimeo, and SpinCo will own approximatel y 88% of Vimeo’s outstanding shares. SpinCo anticipates that it would subsequently seek to implement an alternative transaction to cause or permit the stockholders of Vimeo to exchange their ownership interests in Vimeo for an interest in SpinCo. Nature of Operations Vimeo is the world’s leading all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. Vimeo’s comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform. Basis of Presentation and Consolidation The historical consolidated financial statements of Vimeo and subsidiaries have been prepared on a standalone basis and are derived from the historical accounting records of Vimeo and IAC. The consolidated financial statements reflect the historical financial position, results of operations and cash flows of Vimeo and its consolidated subsidiaries since their respective dates of acquisition by Vimeo and the allocation to Vimeo of certain IAC corporate expenses relating to Vimeo based on the historical accounting records of IAC. The allocation of certain IAC corporate expenses is reflected in the consolidated balance sheet within "Additional paid-in capital." For the purpose of these consolidated financial statements, income taxes have been computed for Vimeo on an as if standalone, separate tax return basis and payments to and refunds from IAC for Vimeo’s share of IAC’s consolidated state tax return liabilities have been reflected within cash flows from operating activities in the accompanying consolidated statement of cash flows. As used herein, "Vimeo," "we," "our" or "us" and similar terms in these historical consolidated financial statements refer to Vimeo, Inc. and its subsidiaries (unless the context requires otherwise). Vimeo prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). All intercompany transactions and balances between and among Vimeo and its subsidiaries have been eliminated. All intercompany transactions between (i) Vimeo and (ii) IAC and its subsidiaries (other than subsidiaries of Vimeo), other than borrowings from and principal payments to certain IAC subsidiaries, which were not Vimeo subsidiaries, related to amounts evidenced by notes, are reflected in the consolidated statement of cash flows as "Due to IAC/InterActiveCorp" as an operating activity and in the consolidated balance sheet within "Accrued expenses and other current liabilities." Borrowings from and principal payments to certain IAC subsidiaries, in each case other than Vimeo subsidiaries, related to amounts evidenced by notes are reflected in the consolidated statement of cash flows as financing activities and in the consolidated balance sheet as "Promissory notes due on demand — related party" and "Long-term debt — related party." In management’s opinion, the assumptions underlying the historical consolidated financial statements of Vimeo, including the basis on which the expenses have been allocated from IAC, are reasonable. However, these allocations may not reflect the expenses that Vimeo would have incurred as an independent, stand-alone company for the periods presented. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements of Vimeo for the year ended December 31, 2020 and notes thereto included in the joint proxy statement/consent solicitation statement/prospectus of IAC and SpinCo filed with the Securities and Exchange Commission on April 8, 2021. Accounting Estimates Management of Vimeo is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, Vimeo evaluates its estimates, judgments and assumptions, including those related to: the fair values of cash equivalents; the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of customer relationship period for certain costs to obtain a contract with a customer; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of leasehold improvements and equipment and intangible assets with definite lives; the recoverability of goodwill; contingencies; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. Vimeo bases its estimates, judgments and assumptions on historical experience, its forecasts and budgets and other factors that Vimeo considers relevant. General Revenue Recognition Revenue is recognized when control of the promised services or goods is transferred to Vimeo's customers and in the amount that reflects the consideration Vimeo expects to be entitled to in exchange for those services or goods. Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of Vimeo's performance. Vimeo’s deferred revenue is reported on a contract-by-contract basis at the end of each reporting period. Vimeo classifies deferred revenue as current when the remaining term of the applicable subscription period or expected completion of Vimeo's performance obligation is one year or less. The current and non-current deferred revenue balances at December 31, 2020 are $137.4 million and $0.8 million, respectively. During the three months ended March 31, 2021, Vimeo recognized $65.6 million of revenue that was included in the deferred revenue balance as of December 31, 2020. During the three months ended March 31, 2020, Vimeo recognized $38.9 million of revenue that was included in the deferred revenue balance as of December 31, 2019. The current and non-current deferred revenue balances at March 31, 2021 are $147.8 million and $0.9 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet. Practical Expedients and Exemptions As permitted under the practical expedient available under ASU No. 2014-09, Revenue from Contracts with Customers, Vimeo does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which Vimeo recognizes revenue at the amount which Vimeo has the right to invoice for services performed. Assets Recognized from the Costs to Obtain a Contract with a Customer Vimeo has determined that certain costs, primarily commissions, paid to employees pursuant to certain sales incentive programs and mobile app store fees meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. Vimeo calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, Vimeo has elected the practical expedient to expense the costs as incurred. Vimeo generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription. The current and non-current capitalized costs to obtain a contract with a customer are included in "Other current assets" and "Other non-current assets" in the accompanying consolidated balance sheet and are $3.0 million and $5.2 million, and $2.7 million and $4.9 million, at March 31, 2021 and December 31, 2020, respectively. Recent Accounting Pronouncements There are no recently issued accounting pronouncements that have not yet been adopted that are expected to have a material effect on the consolidated results of operations, financial condition or cash flows of Vimeo. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Income Taxes [Line Items] | |
INCOME TAXES | INCOME TAXES Vimeo is included withi n IAC’s tax gro up for purposes of federal and consolidated state income tax return filings. In the periods presented, current and deferred income tax provision have been computed for Vimeo on an as if standalone, separate tax return basis and payments to and refunds fro m IAC for Vimeo's share of IAC’s consoli dated state tax return liabilities have been reflected within cash flows from operating activities in the accompanying consolidated statement of cash flows. At the end of each interim period, Vimeo estimates the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or Vimeo's tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs. For the three months ended March 31, 2021 and 2020, Vimeo recorded an income tax provision of $0.4 million and $0.6 million, respectively, due to international and state taxes for jurisdictions in which it conducts business. The decrease in income tax provision is driven by a decrease in international tax accruals. Vimeo is in a net operating loss ("NOL") position for federal and state income tax purposes. The largest deferred tax assets are the federal and state NOLs. Vimeo has recorded a valuation allowance for its net deferred tax assets because it has concluded that it is more likely than not that the NOLs will not be utilized due to its history of pre-tax losses. Vimeo recognizes interest and penalties related to unrecognized tax benefits, if applicable, in the income tax provision. There are currently no accruals for interest or penalties. At March 31, 2021 and December 31, 2020, unrecognized tax benefits are $2.0 million and $1.9 million, respectively, all of which are for tax positions include d in IAC's consolidated tax return filings . If unrecognized tax benefits at March 31, 2021 are subsequently recognized, there would be no impact to the income tax provision due to the valuation allowance on deferred tax assets . Vimeo believes it is reasonably possible that its unrecognized tax benefits could decrease by $0.4 million by March 31, 2022, due primarily to settlements, none of which would reduce the income tax provision due to the valuation allowance on deferred tax assets. Vimeo is routinely under audit by federal, state, local and foreign authorities in the area of income tax as a result of previously filed separate company and consolidated tax returns with IAC. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service ("IRS") has substantially completed its audit of IAC's federal income tax returns for the years ended December 31, 2010 through 2017, which includes the operations of Vimeo. The statute of limitations for the years 2010 through 2012 and for the years 2013 through 2017 have been extended to May 31, 2021 and June 30, 2022, respectively. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits that are considered to be sufficient to pay assessments that may result from the examination of prior year tax returns. Vimeo considers many factors when evaluating and estimating its tax positions and tax benefits, which may not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on the liquidity, results of operations, or financial condition of Vimeo, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Vimeo categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets. • Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of Vimeo's Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used. • Level 3: Unobservable inputs for which there is little or no market data and require Vimeo to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. The following tables present Vimeo's financial instruments that are measured at fair value on a recurring basis: March 31, 2021 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 305,230 $ — $ — $ 305,230 Time deposits — 138 — 138 Total $ 305,230 $ 138 $ — $ 305,368 December 31, 2020 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 104,852 $ — $ — $ 104,852 Time deposits — 544 — 544 Total $ 104,852 $ 544 $ — $ 105,396 Vimeo's non-financial assets, such as goodwill, intangible assets with definite lives, ROU assets and leasehold improvements and equipment, are adjusted to fair value only when an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Revolving Credit Facility [Line Items] | |
REVOLVING CREDIT FACILITY | REVOLVING CREDIT FACILITYOn February 12, 2021, Vimeo entered into a $100 million revolving credit facility (the "Credit Facility"), which expires on February 12, 2026. Any borrowings under the Credit Facility are guaranteed by Vimeo's wholly-owned material domestic subsidiaries, if any, and are secured by substantially all assets of Vimeo and any guarantors, subject to certain exceptions. The commitment fee, which is based on the consolidated net leverage ratio most recently reported and the average daily amount of the available revolving commitments, was 20 basis points at March 31, 2021. Any borrowings under the Credit Facility would bear interest, at Vimeo's option, at either a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on Vimeo’s consolidated net leverage ratio. The financial covenants require Vimeo to maintain a minimum liquidity of not less than $50.0 million until December 31, 2022 and, thereafter, at the end of each quarterly test period, a consolidated net leverage ratio (as defined in the agreement) of not more than 5.5 to 1.0. The Credit Facility also contains customary affirmative and negative covenants, including covenants that would limit Vimeo’s ability to pay dividends or make distributions on or repurchase certain equity interests in the event a default has occurred or Vimeo’s consolidated net leverage ratio exceeds 4.0 to 1.0. At March 31, 2021, there were no outstanding borrowings under the Credit Facility. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity [Line Items] | |
SHAREHOLDERS' EQUITY | SHAREHOLDER EQUITY Description of Common Stock and Class B Convertible Common Stock Except as described herein, shares of SpinCo Common Stock and SpinCo Class B common stock are identical. Each holder of shares of SpinCo Common Stock and SpinCo Class B common stock vote together as a single class with respect to matters that may be submitted to a vote or for the consent of SpinCo shareholders generally, including the election of directors. In connection with any such vote, each holder of SpinCo common stock is entitled to one vote for each share of SpinCo Common Stock held and each holder of SpinCo Class B common stock is entitled to ten votes for each share of SpinCo Class B common stock held. In addition, Delaware law requires that certain matters be approved by the holders of shares of SpinCo Common Stock or holders of SpinCo Class B common stock voting as a separate class. Shares of SpinCo Class B common stock are convertible into shares of SpinCo Common Stock at the option of the holder thereof, at any time, on a share-for-share basis. Such conversion ratio will in all events be equitably preserved in the event of any recapitalization of SpinCo by means of a stock dividend on, or a stock split or combination of, outstanding shares of SpinCo Common Stock or SpinCo Class B common stock, or in the event of any merger, consolidation or other reorganization of SpinCo with another corporation. Upon the conversion of shares of SpinCo Class B common stock into shares of SpinCo Common Stock, those shares of SpinCo Class B common stock will be retired and will not be subject to reissue. Shares of SpinCo Common Stock are not convertible into shares of SpinCo Class B common stock. |
Vimeo Inc. | |
Shareholders' Equity [Line Items] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Description of Class A Voting Common Stock and Class B Non-Voting Common Stock Except as described herein, shares of Vimeo Class A Voting common stock and Class B Non-Voting common stock are identical. The holders of shares of Vimeo Class A Voting common stock have the exclusive right to vote for the election of directors and for all other purposes, except as provided by law. Shares of Vimeo Class A Voting common stock have one vote per share and vote together as a single class. Holders of shares of Vimeo Class B Non-Voting common stock are not entitled to vote such shares in any proceeding or upon any matter or question at any meeting of the stockholders unless such right to vote is required by law. The holders of shares of Vimeo Class A Voting common stock and the holders of shares of Vimeo Class B Non-Voting common stock are entitled to receive, share for share, such dividends as may be declared by Vimeo's Board of Directors out of funds legally available therefor. If dividends are payable in shares of common stock, holders of shares of Vimeo Class A Voting common stock will receive shares in Vimeo Class A Voting common stock and holders of shares of Vimeo Class B Non-Voting common stock will receive shares in Vimeo Class B Non-Voting common stock. If dividends consist of other voting securities of Vimeo, Vimeo will make available to holders of Vimeo Class B Non-Voting common stock dividends consisting of non-voting securities (except as otherwise required by law) of Vimeo, which are otherwise identical to the voting securities. In the event of a liquidation, dissolution, distribution of assets or winding-up of Vimeo, the holders of shares of Vimeo Class A Voting common stock and the holders of shares of Vimeo Class B Non-Voting common stock are entitled to receive, share for share, all the assets of Vimeo available for distribution to its stockholders, after the satisfaction of all liabilities. On April 16, 2020, Vimeo amended its certificate of incorporation to increase the total authorized number of shares of Class A Voting common stock from 75,000,000 to 150,000,000 shares and the total authorized number of Class B Non-Voting common stock from 75,000,000 to 150,000,000 shares. At March 31, 2021, IAC held 81.0% of Vimeo's Class A Voting common stock and 97.6% of Vimeo's Class B Non-Voting common stock, or approximately 88.0% of Vimeo's total outstanding capital stock. Description of Preferred Stock Vimeo's Board of Directors is authorized to provide for the issuance of shares of preferred stock in series and to assign the designations, powers, preferences and rights to each such series and any qualifications, limitations or restrictions. There have been no preferred stock issuances to date. Sale of Common Stock In January 2021, Vimeo raised $300 million of equity capital via the sale of approximately 6.2 million shares of Vimeo Class A Voting common stock for $200 million, or $32.41 per share, at a $5.2 billion pre-money valuation, and approximately 2.8 million shares of Vimeo Class A Voting common stock for $100 million, or $35.35 per share, at a $5.7 billion pre-money valuation. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of foreign currency translation adjustments: Three Months Ended March 31, 2021 2020 Balance as of January 1 $ (87) $ (232) Other comprehensive loss (22) (120) Balance as of March 31 $ (109) $ (352) At both March 31, 2021 and 2020, there was no income tax benefit or provision on the accumulated other comprehensive loss. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Earnings (Loss) Per Share [Line Items] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: Three Months Ended March 31, 2021 2020 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders $ 3,313 $ 3,313 $ (20,260) $ (20,260) Denominator: Weighted average basic shares outstanding 156,480 156,480 141,063 141,063 Dilutive securities (a)(b)(c) — 9,408 — — Denominator for earnings (loss) per share—weighted average shares (a)(b)(c) 156,480 165,888 141,063 141,063 Earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: Earnings (loss) per share $ 0.02 $ 0.02 $ (0.14) $ (0.14) _____________________ (a) If the effect is dilutive, weighted average diluted shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock appreciation rights ("SARs") and vesting of restricted stock units. For the three months ended March 31, 2021, there are no potentially dilutive securities that were excluded from the calculation of diluted earnings per share. (b) Performance-based SARs are considered contingently issuable shares. Shares issuable upon exercise of performance-based SARs are included in the denominator of diluted earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the performance-based SARs is dilutive for the respective reporting periods. For the three months ended March 31, 2021, 2.3 million shares underlying performance-based SARs were excluded from the calculation of diluted earnings per share because the performance condition(s) had not been met. (c) For the three months ended March 31, 2020, Vimeo had a loss from operations and as a result, approximately 15.9 million potentially dilutive securitie s were exclu ded from computing diluted earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts. |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Consolidated Financial Statement Details [Line Items] | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | CONSOLIDATED FINANCIAL STATEMENT DETAILS Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2021 December 31, 2020 March 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 316,305 $ 110,011 $ 3,245 $ 1,939 Restricted cash included in other current assets 223 26 22 24 Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 316,528 $ 110,037 $ 3,267 $ 1,963 Restricted cash at March 31, 2021 primarily consists of a deposit related to a lease. Restricted cash for all other periods primarily consists of a deposit related to corporate credit cards. Credit Losses The following table presents the changes in the allowance for credit losses for the three months ended March 31, 2021 and 2020, respectively : 2021 2020 (In thousands) Balance at January 1 $ 476 $ 273 Current period provision for credit losses 82 824 Write-offs charged against the allowance (58) (251) Balance at March 31 $ 500 $ 846 Accumulated Amortization and Depreciation The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category March 31, 2021 December 31, 2020 (In thousands) Right-of-use assets included in other non-current assets $ 4,899 $ 4,727 Leasehold improvements and equipment $ 822 $ 712 Intangible assets with definite lives $ 35,733 $ 33,846 Other income (expense), net Three Months Ended March 31, 2021 2020 (In thousands) Other income (expense), net $ 10,086 $ (59) Other income, net in 2021 includes a gain of $10.2 million related to the sale of Vimeo’s retained interest in its former hardware business. Vimeo previously sold live streaming devices and accessories through its hardware business. Vimeo retained an interest in its former hardware business after it sold a majority stake on March 29, 2019 that provided it with rights to participate in and receive distributions in the event of positive cash flows or proceeds should there be another sale of the business. In the first quarter of 2021 , the former hardware business, inclusive of Vimeo's retained interest, was sold and a gain was recognized. This gain includes amounts received in the first quarter of 2021 and funds held in escrow. Vimeo may receive additional consideration based on the revenue of its former hardware business relative to established targets through December 31, 2021. Such amounts will be recognized as income only if, and at the point in time, any additional consideration is received, or it is probable that additional consideration will be received. Other expense, net in 2020 reflects $0.1 million of net foreign exchange losses. Geographic Concentrations Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Three Months Ended March 31, 2021 2020 (In thousands) Revenue: United States $ 48,141 $ 29,612 All other countries 41,281 27,356 Total $ 89,422 $ 56,968 The United States is the only country whose revenue is greater than 10 percent of total revenue of Vimeo for the three months ended March 31, 2021 and 2020 . March 31, December 31, (In thousands) Long-lived assets (excluding goodwill, intangible assets with definite lives and ROU assets): United States $ 2,465 $ 2,549 All other countries 855 772 Total $ 3,320 $ 3,321 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Contingencies [Line Items] | |
CONTINGENCIES | CONTINGENCIES In the ordinary course of business, Vimeo is a party to various lawsuits. Vimeo establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where it believes an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against Vimeo, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of Vimeo, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. Vimeo also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of Vimeo. See " Note 2—Income Taxes " for additional information related to income tax contingencies. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Related Party Transaction [Line Items] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Relationship with IAC prior to the Spin-off Vimeo’s consolidated statement of operations includes allocations of costs, including stock-based compensation expense, related to IAC’s accounting, treasury, legal, tax, corporate support and internal audit functions. These allocations were based on Vimeo's revenue as a percentage of IAC's total revenue. Allocated costs, inclusive of stock-based compensation expense, were $1.0 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively. It is not practicable to determine the actual expenses that would have been incurred for these services had Vimeo operated as a standalone entity during the periods presented. Management considers the allocation method to be reasonable. In addition to these amounts, which were previously not allocated to Vimeo, but were allocated for purposes of these standalone financial statements, Vimeo is allocated expenses from IAC for certain support services, such as financial systems. Vimeo also participates in IAC's health and welfare benefit plans and obtains certain services through contracts that are held in IAC's name. The total related charge for both the three months ended March 31, 2021 and 2020 were $2.7 million. IAC also allocated $0.9 million and $1.1 million to Vimeo for the space that Vimeo occupies in IAC’s headquarters building for the three months ended March 31, 2021 and 2020, respectively. The amounts were charged to Vimeo through the "Due to IAC/InterActiveCorp" account described below. Due to IAC/InterActiveCorp At March 31, 2021 , Vimeo has a current payable due to IAC of $3.0 million, which is included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet. The payable at March 31, 2021 was subsequently paid in April 2021. At December 31, 2020, there was no amount due to IAC. Debt—Related Party Debt—related party consists of: March 31, 2021 December 31, 2020 (In thousands) Promissory note due on demand—related party $ — $ 44,565 Promissory note due May 2, 2023—related party — 50,000 Total debt—related party $ — $ 94,565 In January 2021, Vimeo repaid its outstanding related party debt to IAC in the amount of $99.5 million, which included accrued interest of $4.9 million, using a portion of the proceeds from the January 2021 primary equity raise. Each promissory note bore interest at 10% per annum. Accrued interest on debt —related party at December 31, 2020 was $4.2 million and is included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet. Financial Instruments Measured at Fair Value Only for Disclosure Purposes The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (In thousands) Promissory note due on demand—related party $ — $ — $ 44,565 $ 44,565 Long-term debt—related party $ — $ — $ 50,000 $ 54,545 The fair value of debt—related party, including the promissory note due on demand—related party, was based on Level 3 inputs and was estimated by discounting the future cash flows based on current market conditions. Relationship with IAC following th e Spin-off If the Spin-off is consummated, Vimeo will enter into certain agreements with IAC to govern the relationship between the Vimeo and IAC following the Spin-off. These agreements will include: a separation agreement; a tax matters agreement; a transition services agreement; and an employee matters agreement. |
THE COMPANY AND SUMMARY OF SI_2
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
The Company and Summary of Significant Accounting Policies [Line Items] | |
Basis of Presentation and Consolidation | Basis of Presentation The balance sheet is presented in accordance with accounting principles generally accepted in the United States of America. Principles of Consolidation The consolidated financial statement includes the accounts of SpinCo and its wholly-owned subsidiary, Stream Merger Sub, Inc., a Delaware corporation. All inter-company transactions and balances have been eliminated in consolidation. |
Vimeo Inc. | |
The Company and Summary of Significant Accounting Policies [Line Items] | |
Nature of Operations | Nature of Operations Vimeo is the world’s leading all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. Vimeo’s comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The historical consolidated financial statements of Vimeo and subsidiaries have been prepared on a standalone basis and are derived from the historical accounting records of Vimeo and IAC. The consolidated financial statements reflect the historical financial position, results of operations and cash flows of Vimeo and its consolidated subsidiaries since their respective dates of acquisition by Vimeo and the allocation to Vimeo of certain IAC corporate expenses relating to Vimeo based on the historical accounting records of IAC. The allocation of certain IAC corporate expenses is reflected in the consolidated balance sheet within "Additional paid-in capital." For the purpose of these consolidated financial statements, income taxes have been computed for Vimeo on an as if standalone, separate tax return basis and payments to and refunds from IAC for Vimeo’s share of IAC’s consolidated state tax return liabilities have been reflected within cash flows from operating activities in the accompanying consolidated statement of cash flows. As used herein, "Vimeo," "we," "our" or "us" and similar terms in these historical consolidated financial statements refer to Vimeo, Inc. and its subsidiaries (unless the context requires otherwise). Vimeo prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). All intercompany transactions and balances between and among Vimeo and its subsidiaries have been eliminated. All intercompany transactions between (i) Vimeo and (ii) IAC and its subsidiaries (other than subsidiaries of Vimeo), other than borrowings from and principal payments to certain IAC subsidiaries, which were not Vimeo subsidiaries, related to amounts evidenced by notes, are reflected in the consolidated statement of cash flows as "Due to IAC/InterActiveCorp" as an operating activity and in the consolidated balance sheet within "Accrued expenses and other current liabilities." Borrowings from and principal payments to certain IAC subsidiaries, in each case other than Vimeo subsidiaries, related to amounts evidenced by notes are reflected in the consolidated statement of cash flows as financing activities and in the consolidated balance sheet as "Promissory notes due on demand — related party" and "Long-term debt — related party." In management’s opinion, the assumptions underlying the historical consolidated financial statements of Vimeo, including the basis on which the expenses have been allocated from IAC, are reasonable. However, these allocations may not reflect the expenses that Vimeo would have incurred as an independent, stand-alone company for the periods presented. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements of Vimeo for the year ended December 31, 2020 and notes thereto included in the joint proxy statement/consent solicitation statement/prospectus of IAC and SpinCo filed with the Securities and Exchange Commission on April 8, 2021. |
Accounting Estimates | Accounting Estimates Management of Vimeo is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, Vimeo evaluates its estimates, judgments and assumptions, including those related to: the fair values of cash equivalents; the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of customer relationship period for certain costs to obtain a contract with a customer; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of leasehold improvements and equipment and intangible assets with definite lives; the recoverability of goodwill; contingencies; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. Vimeo bases its estimates, judgments and assumptions on historical experience, its forecasts and budgets and other factors that Vimeo considers relevant. |
General Revenue Recognition | General Revenue Recognition Revenue is recognized when control of the promised services or goods is transferred to Vimeo's customers and in the amount that reflects the consideration Vimeo expects to be entitled to in exchange for those services or goods. Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of Vimeo's performance. Vimeo’s deferred revenue is reported on a contract-by-contract basis at the end of each reporting period. Vimeo classifies deferred revenue as current when the remaining term of the applicable subscription period or expected completion of Vimeo's performance obligation is one year or less. The current and non-current deferred revenue balances at December 31, 2020 are $137.4 million and $0.8 million, respectively. During the three months ended March 31, 2021, Vimeo recognized $65.6 million of revenue that was included in the deferred revenue balance as of December 31, 2020. During the three months ended March 31, 2020, Vimeo recognized $38.9 million of revenue that was included in the deferred revenue balance as of December 31, 2019. The current and non-current deferred revenue balances at March 31, 2021 are $147.8 million and $0.9 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet. Practical Expedients and Exemptions As permitted under the practical expedient available under ASU No. 2014-09, Revenue from Contracts with Customers, Vimeo does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which Vimeo recognizes revenue at the amount which Vimeo has the right to invoice for services performed. Assets Recognized from the Costs to Obtain a Contract with a Customer Vimeo has determined that certain costs, primarily commissions, paid to employees pursuant to certain sales incentive programs and mobile app store fees meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. Vimeo calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, Vimeo has elected the practical expedient to expense the costs as incurred. Vimeo generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription. The current and non-current capitalized costs to obtain a contract with a customer are included in "Other current assets" and "Other non-current assets" in the accompanying consolidated balance sheet and are $3.0 million and $5.2 million, and $2.7 million and $4.9 million, at March 31, 2021 and December 31, 2020, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recently issued accounting pronouncements that have not yet been adopted that are expected to have a material effect on the consolidated results of operations, financial condition or cash flows of Vimeo. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present Vimeo's financial instruments that are measured at fair value on a recurring basis: March 31, 2021 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 305,230 $ — $ — $ 305,230 Time deposits — 138 — 138 Total $ 305,230 $ 138 $ — $ 305,368 December 31, 2020 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 104,852 $ — $ — $ 104,852 Time deposits — 544 — 544 Total $ 104,852 $ 544 $ — $ 105,396 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of foreign currency translation adjustments: Three Months Ended March 31, 2021 2020 Balance as of January 1 $ (87) $ (232) Other comprehensive loss (22) (120) Balance as of March 31 $ (109) $ (352) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Vimeo Inc. | |
Earnings (Loss) Per Share [Line Items] | |
Schedule of Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: Three Months Ended March 31, 2021 2020 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders $ 3,313 $ 3,313 $ (20,260) $ (20,260) Denominator: Weighted average basic shares outstanding 156,480 156,480 141,063 141,063 Dilutive securities (a)(b)(c) — 9,408 — — Denominator for earnings (loss) per share—weighted average shares (a)(b)(c) 156,480 165,888 141,063 141,063 Earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: Earnings (loss) per share $ 0.02 $ 0.02 $ (0.14) $ (0.14) _____________________ (a) If the effect is dilutive, weighted average diluted shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock appreciation rights ("SARs") and vesting of restricted stock units. For the three months ended March 31, 2021, there are no potentially dilutive securities that were excluded from the calculation of diluted earnings per share. (b) Performance-based SARs are considered contingently issuable shares. Shares issuable upon exercise of performance-based SARs are included in the denominator of diluted earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the performance-based SARs is dilutive for the respective reporting periods. For the three months ended March 31, 2021, 2.3 million shares underlying performance-based SARs were excluded from the calculation of diluted earnings per share because the performance condition(s) had not been met. (c) For the three months ended March 31, 2020, Vimeo had a loss from operations and as a result, approximately 15.9 million potentially dilutive securitie s were exclu ded from computing diluted earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts. |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) - Vimeo Inc. | 3 Months Ended |
Mar. 31, 2021 | |
Consolidated Financial Statement Details [Line Items] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2021 December 31, 2020 March 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 316,305 $ 110,011 $ 3,245 $ 1,939 Restricted cash included in other current assets 223 26 22 24 Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 316,528 $ 110,037 $ 3,267 $ 1,963 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2021 December 31, 2020 March 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 316,305 $ 110,011 $ 3,245 $ 1,939 Restricted cash included in other current assets 223 26 22 24 Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 316,528 $ 110,037 $ 3,267 $ 1,963 |
Schedule of Changes in Allowance for Credit Losses | The following table presents the changes in the allowance for credit losses for the three months ended March 31, 2021 and 2020, respectively : 2021 2020 (In thousands) Balance at January 1 $ 476 $ 273 Current period provision for credit losses 82 824 Write-offs charged against the allowance (58) (251) Balance at March 31 $ 500 $ 846 |
Schedule of Accumulated Depreciation and Amortization | The following table provides the accumulated amortization and depreciation within the consolidated balance sheet: Asset Category March 31, 2021 December 31, 2020 (In thousands) Right-of-use assets included in other non-current assets $ 4,899 $ 4,727 Leasehold improvements and equipment $ 822 $ 712 Intangible assets with definite lives $ 35,733 $ 33,846 |
Schedule of Other Income (Expense), Net | Other income (expense), net Three Months Ended March 31, 2021 2020 (In thousands) Other income (expense), net $ 10,086 $ (59) |
Schedule of Revenue and Long-lived Assets by Geographic Area | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Three Months Ended March 31, 2021 2020 (In thousands) Revenue: United States $ 48,141 $ 29,612 All other countries 41,281 27,356 Total $ 89,422 $ 56,968 The United States is the only country whose revenue is greater than 10 percent of total revenue of Vimeo for the three months ended March 31, 2021 and 2020 . March 31, December 31, (In thousands) Long-lived assets (excluding goodwill, intangible assets with definite lives and ROU assets): United States $ 2,465 $ 2,549 All other countries 855 772 Total $ 3,320 $ 3,321 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) - Vimeo Inc. | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transaction [Line Items] | |
Schedule of Debt, Related Parties | Debt—related party consists of: March 31, 2021 December 31, 2020 (In thousands) Promissory note due on demand—related party $ — $ 44,565 Promissory note due May 2, 2023—related party — 50,000 Total debt—related party $ — $ 94,565 |
Fair Value of Financial Instruments, Related Parties | The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (In thousands) Promissory note due on demand—related party $ — $ — $ 44,565 $ 44,565 Long-term debt—related party $ — $ — $ 50,000 $ 54,545 |
THE COMPANY AND SUMMARY OF SI_3
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | May 25, 2021 | Dec. 31, 2020 | |
The Company and Summary of Significant Accounting Policies [Line Items] | ||||
Deferred revenue | $ 147,766 | $ 137,436 | ||
Non-current deferred revenue | 900 | 800 | ||
Deferred revenue recognized during period | 65,600 | $ 38,900 | ||
Current capitalized sales commissions | 3,000 | 2,700 | ||
Non-current capitalized sales commissions | $ 5,200 | $ 4,900 | ||
Vimeo Holdings | Forecast | ||||
The Company and Summary of Significant Accounting Policies [Line Items] | ||||
Ownership percentage | 88.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Income tax provision (benefit) | $ 385 | $ 555 | |
Unrecognized tax benefits | 2,000 | $ 1,900 | |
Decrease in unrecognized tax benefits is reasonably possible | $ 400 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Vimeo Inc. - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash equivalents | $ 305,368 | $ 105,396 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 305,230 | 104,852 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 138 | 544 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Money market funds | ||
Assets: | ||
Cash equivalents | 305,230 | 104,852 |
Money market funds | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 305,230 | 104,852 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | ||
Assets: | ||
Cash equivalents | 138 | 544 |
Time deposits | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 138 | 544 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) - Revolving Credit Facility - Vimeo Credit Facility - Vimeo Inc. - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Feb. 12, 2021 | |
Revolving Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Annual commitment fee (in basis points) | 0.20% | |
Covenant term, minimum liquidity requirement | $ 50,000,000 | |
Covenant term, leverage ratio (no more than) | 5.5 | |
Covenant term, leverage ratio limiting ability to pay dividends, make distributions, or repurchase stock (no more than) | 4 | |
Borrowings outstanding under the credit facility | $ 0 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2021voteshares | Apr. 16, 2020shares | Apr. 15, 2020shares | |
Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Common stock authorized (in shares) | 150,000,000 | 75,000,000 | ||
Sale of Equity Capital | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Proceeds raised from sale of equity capital | $ | $ 300 | |||
Common Stock | ||||
Shareholders' Equity [Line Items] | ||||
Votes per each share of stock | vote | 1 | |||
Common stock authorized (in shares) | 1,600,000,000 | |||
Common Stock | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Votes per each share of stock | vote | 1 | |||
Common stock authorized (in shares) | 150,000,000 | |||
Common Stock | Sale of Equity Capital, First Raise | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Proceeds raised from sale of equity capital | $ | $ 200 | |||
Number of shares issued in sale of equity capital (in shares) | 6,200,000 | |||
Price per share of stock issued in sale of equity capital (in dollars per share) | $ / shares | $ 32.41 | |||
Enterprise valuation of Vimeo | $ | $ 5,200 | |||
Common Stock | Sale of Equity Capital, Second Raise | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Proceeds raised from sale of equity capital | $ | $ 100 | |||
Number of shares issued in sale of equity capital (in shares) | 2,800,000 | |||
Price per share of stock issued in sale of equity capital (in dollars per share) | $ / shares | $ 35.35 | |||
Enterprise valuation of Vimeo | $ | $ 5,700 | |||
Class B common stock | ||||
Shareholders' Equity [Line Items] | ||||
Votes per each share of stock | vote | 10 | |||
Common stock authorized (in shares) | 400,000,000 | |||
Class B common stock | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Common stock authorized (in shares) | 150,000,000 | |||
IAC | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Ownership percentage | 88.00% | |||
IAC | Common Stock | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Ownership percentage | 81.00% | |||
IAC | Class B common stock | Vimeo Inc. | ||||
Shareholders' Equity [Line Items] | ||||
Ownership percentage | 97.60% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss | ||
Balance at beginning of period | $ 0 | |
Balance at end of period | 10 | |
Vimeo Inc. | ||
Accumulated Other Comprehensive Loss | ||
Balance at beginning of period | 85,080,000 | $ 23,633,000 |
Balance at end of period | 389,134,000 | 5,836,000 |
Income tax provision (benefit) | 385,000 | 555,000 |
Foreign Currency Translation Adjustments | Vimeo Inc. | ||
Accumulated Other Comprehensive Loss | ||
Other comprehensive loss | (22,000) | (120,000) |
Accumulated Other Comprehensive Loss | Vimeo Inc. | ||
Accumulated Other Comprehensive Loss | ||
Balance at beginning of period | (87,000) | (232,000) |
Balance at end of period | (109,000) | (352,000) |
Income tax provision (benefit) | $ 0 | $ 0 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - Vimeo Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator, Basic | ||
Net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | $ 3,313 | $ (20,260) |
Numerator, Diluted | ||
Net earnings (loss) attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders | $ 3,313 | $ (20,260) |
Denominator, Basic | ||
Weighted average basic shares outstanding (shares) | 156,480,000 | 141,063,000 |
Denominator, Diluted | ||
Weighted average basic shares outstanding (shares) | 156,480,000 | 141,063,000 |
Dilutive Securities (shares) | 9,408,000 | 0 |
Denominator for earnings (loss) per share—weighted average shares (shares) | 165,888,000 | 141,063,000 |
Earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: | ||
Basic earnings (loss) per share (USD per share) | $ 0.02 | $ (0.14) |
Diluted earnings (loss) per share (USD per share) | $ 0.02 | $ (0.14) |
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 15,900,000 | |
Stock Appreciation Rights and Restricted Stock Units | ||
Earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: | ||
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 0 | |
Performance-Based Stock Appreciation Rights | ||
Earnings (loss) per share attributable to Class A Voting common stock and Class B Non-Voting common stock shareholders: | ||
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 2,300,000 |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Schedule of Cash and Restricted Cash (Details) - Vimeo Inc. - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 316,305 | $ 110,011 | $ 3,245 | $ 1,939 |
Restricted cash included in other current assets | 223 | 26 | 22 | 24 |
Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows | $ 316,528 | $ 110,037 | $ 3,267 | $ 1,963 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Allowance for Credit Loss (Details) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | $ 476 | $ 273 |
Current period provision for credit losses | 82 | 824 |
Write-offs charged against the allowance | (58) | (251) |
Balance at March 31 | $ 500 | $ 846 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accumulated Amortization and Depreciation (Details) - Vimeo Inc. - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Right-of-use assets included in other non-current assets | $ 4,899 | $ 4,727 |
Leasehold improvements and equipment | 822 | 712 |
Intangible assets with definite lives | $ 35,733 | $ 33,846 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other Income (Expense), Net (Details) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||
Other income (expense), net | $ 10,086 | $ (59) |
Foreign currency transaction gain (loss) | $ (100) | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Hardware Business | ||
Condensed Income Statements, Captions [Line Items] | ||
Gain on the sale of an asset | $ 10,200 |
CONSOLIDATED FINANCIAL STATEM_7
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Revenue and Long-Lived Assets (Details) - Vimeo Inc. - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 89,422 | $ 56,968 | |
Leasehold improvements and equipment, net | 3,320 | $ 3,321 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 48,141 | $ 29,612 | |
Leasehold improvements and equipment, net | $ 2,465 | 2,549 | |
United States | Revenue Benchmark | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percent (greater than) | 10.00% | 10.00% | |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 41,281 | $ 27,356 | |
Leasehold improvements and equipment, net | $ 855 | $ 772 |
RELATED PARTY TRANSACTIONS - De
RELATED PARTY TRANSACTIONS - Debt (Details) - IAC - Vimeo Inc. - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Promissory notes | $ 0 | $ 94,565 |
Promissory note due on demand—related party | ||
Related Party Transaction [Line Items] | ||
Promissory notes | 0 | 44,565 |
Promissory note due May 2, 2023—related party | ||
Related Party Transaction [Line Items] | ||
Promissory notes | $ 0 | $ 50,000 |
RELATED PARTY TRANSACTIONS - Ca
RELATED PARTY TRANSACTIONS - Carrying Value and Fair Value of Financial Instruments (Details) - IAC - Vimeo Inc. - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Related Party Transaction [Line Items] | ||
Promissory note due on demand—related party | $ 0 | $ 44,565 |
Long-term debt—related party | 0 | 50,000 |
Fair Value | ||
Related Party Transaction [Line Items] | ||
Promissory note due on demand—related party | 0 | 44,565 |
Long-term debt—related party | $ 0 | $ 54,545 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - Vimeo Inc. - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Compensation expense | $ 4,912 | $ 2,016 | ||
Repayment of outstanding related party debt | 94,565 | 0 | ||
IAC | ||||
Related Party Transaction [Line Items] | ||||
Compensation expense | 1,000 | 800 | ||
Due to related party | $ 3,000 | |||
Repayment of outstanding related party debt | $ 99,500 | |||
Payment of accrued interest | $ 4,900 | |||
Accrued interest payable, related parties | $ 4,200 | |||
IAC | Promissory note due on demand—related party | ||||
Related Party Transaction [Line Items] | ||||
Interest rate, stated percentage | 10.00% | |||
IAC | Promissory note due May 2, 2023—related party | ||||
Related Party Transaction [Line Items] | ||||
Interest rate, stated percentage | 10.00% | |||
IAC | IAC Health and Welfare Benefit Plans | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred with related party | $ 2,700 | 2,700 | ||
IAC | IAC Headquarters Occupancy | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred with related party | $ 900 | $ 1,100 |