Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-251656-01 | |
Entity Registrant Name | VIMEO, 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 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | VMEO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Central Index Key | 0001837686 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 155,227,791 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,399,250 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 331,024 | $ 110,011 |
Accounts receivable, net | 16,383 | 12,785 |
Prepaid expenses and other current assets | 16,090 | 7,932 |
Total current assets | 363,497 | 130,728 |
Leasehold improvements and equipment, net | 3,232 | 3,321 |
Goodwill | 219,337 | 219,337 |
Intangible assets with definite lives, net | 7,383 | 10,854 |
Other non-current assets | 19,417 | 6,839 |
TOTAL ASSETS | 612,866 | 371,079 |
LIABILITIES: | ||
Accounts payable, trade | 4,563 | 3,324 |
Promissory note due on demand—related party | 0 | 44,565 |
Deferred revenue | 165,338 | 137,436 |
Accrued expenses and other current liabilities | 55,153 | 47,432 |
Total current liabilities | 225,054 | 232,757 |
Long-term debt—related party | 0 | 50,000 |
Other long-term liabilities | 8,674 | 3,242 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, value | 0 | 0 |
Additional paid-in-capital | 677,667 | 366,676 |
Accumulated deficit | (300,088) | (283,009) |
Accumulated other comprehensive loss | (86) | (87) |
Total shareholders' equity | 379,138 | 85,080 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 612,866 | 371,079 |
Common Stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 1,551 | |
Class B common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | $ 94 | |
Vimeo OpCo Class A Voting stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 837 | |
Vimeo OpCo Class B Non-Voting stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | $ 663 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 100,000,000 | 50,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (USD per share) | $ 0.01 | |
Common stock authorized (in shares) | 1,600,000,000 | |
Common stock issued (shares) | 155,065,000 | |
Common stock outstanding (shares) | 155,065,000 | |
Class B common stock | ||
Common stock, par value (USD per share) | $ 0.01 | |
Common stock authorized (in shares) | 400,000,000 | |
Common stock issued (shares) | 9,399,000 | |
Common stock outstanding (shares) | 9,399,000 | |
Vimeo OpCo Class A Voting stock | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 150,000,000 | |
Common stock issued (shares) | 83,656,000 | |
Common stock outstanding (shares) | 83,656,000 | |
Vimeo OpCo Class B Non-Voting stock | ||
Common stock, par value (USD per share) | $ 0.01 | $ 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 OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 96,046 | $ 67,334 | $ 185,468 | $ 124,302 |
Cost of revenue (exclusive of depreciation shown separately below) | 25,771 | 22,899 | 50,727 | 41,257 |
Gross profit | 70,275 | 44,435 | 134,741 | 83,045 |
Operating expenses: | ||||
Research and development expense | 27,062 | 16,262 | 48,538 | 31,555 |
Sales and marketing expense | 40,248 | 26,519 | 72,317 | 51,644 |
General and administrative expense | 21,508 | 10,983 | 36,026 | 23,187 |
Depreciation | 186 | 102 | 300 | 160 |
Amortization of intangibles | 1,583 | 2,915 | 3,471 | 6,038 |
Total operating expenses | 90,587 | 56,781 | 160,652 | 112,584 |
Operating loss | (20,312) | (12,346) | (25,911) | (29,539) |
Interest expense | (122) | 0 | (186) | 0 |
Interest expense–related party | 0 | (2,372) | (726) | (4,825) |
Other income (expense), net | 142 | (164) | 10,229 | (223) |
Loss before income taxes | (20,292) | (14,882) | (16,594) | (34,587) |
Income tax (provision) benefit | (100) | 106 | (485) | (449) |
Net loss | $ (20,392) | $ (14,776) | $ (17,079) | $ (35,036) |
Per share information: | ||||
Basic loss per share (USD per share) | $ (0.13) | $ (0.09) | $ (0.11) | $ (0.22) |
Diluted loss per share (USD per share) | $ (0.13) | $ (0.09) | $ (0.11) | $ (0.22) |
Stock-based compensation expense by function: | ||||
Compensation expense | $ 14,695 | $ 4,015 | $ 19,607 | $ 6,031 |
Cost of revenue | ||||
Stock-based compensation expense by function: | ||||
Compensation expense | 169 | 21 | 189 | 25 |
Research and development expense | ||||
Stock-based compensation expense by function: | ||||
Compensation expense | 5,748 | 706 | 7,468 | 1,166 |
Sales and marketing expense | ||||
Stock-based compensation expense by function: | ||||
Compensation expense | 1,498 | 173 | 1,820 | 330 |
General and administrative expense | ||||
Stock-based compensation expense by function: | ||||
Compensation expense | $ 7,280 | $ 3,115 | $ 10,130 | $ 4,510 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (20,392) | $ (14,776) | $ (17,079) | $ (35,036) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation | 23 | 69 | 1 | (51) |
Total other comprehensive income (loss) | 23 | 69 | 1 | (51) |
Comprehensive loss | $ (20,369) | $ (14,707) | $ (17,078) | $ (35,087) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common StockCommon Stock | Common StockClass B common stock | Common StockVimeo OpCo Class A Voting stock | Common StockVimeo OpCo Class B Non-Voting stock | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at beginning of period at Dec. 31, 2019 | $ 23,633 | $ 750 | $ 660 | $ 223,754 | $ (201,299) | $ (232) | ||
Balance at beginning of period (in shares) at Dec. 31, 2019 | 75,000 | 66,021 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (35,036) | (35,036) | ||||||
Other comprehensive income (loss) | (51) | (51) | ||||||
Stock-based compensation expense | 6,031 | 6,031 | ||||||
Amounts related to settlement of equity awards | 3 | $ 3 | ||||||
Amounts related to settlement of equity awards (in shares) | 260 | |||||||
Other | 1,184 | 1,184 | ||||||
Balance at end of period at Jun. 30, 2020 | (4,236) | $ 750 | $ 663 | 230,969 | (236,335) | (283) | ||
Balance at end of period (in shares) at Jun. 30, 2020 | 75,000 | 66,281 | ||||||
Balance at beginning of period at Mar. 31, 2020 | 5,836 | $ 750 | $ 661 | 226,336 | (221,559) | (352) | ||
Balance at beginning of period (in shares) at Mar. 31, 2020 | 75,000 | 66,151 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (14,776) | (14,776) | ||||||
Other comprehensive income (loss) | 69 | 69 | ||||||
Stock-based compensation expense | 4,015 | 4,015 | ||||||
Amounts related to settlement of equity awards | 2 | $ 2 | ||||||
Amounts related to settlement of equity awards (in shares) | 130 | |||||||
Other | 618 | 618 | ||||||
Balance at end of period at Jun. 30, 2020 | (4,236) | $ 750 | $ 663 | 230,969 | (236,335) | (283) | ||
Balance at end of period (in shares) at Jun. 30, 2020 | 75,000 | 66,281 | ||||||
Balance at beginning of period at Dec. 31, 2020 | 85,080 | $ 0 | $ 0 | $ 837 | $ 663 | 366,676 | (283,009) | (87) |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 0 | 0 | 83,656 | 66,285 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (17,079) | (17,079) | ||||||
Other comprehensive income (loss) | 1 | 1 | ||||||
Stock-based compensation expense | 19,607 | 19,607 | ||||||
Amounts related to settlement of equity awards | (8,736) | $ 2 | $ 1 | (8,739) | ||||
Amounts related to settlement of equity awards (in shares) | 213 | 133 | ||||||
Issuance of common stock, net of fees | 299,750 | $ 90 | 299,660 | |||||
Issuance of common stock, net of fees (in shares) | 9,000 | |||||||
Exchange of shares related to Spin-off | 0 | $ 1,500 | $ 94 | $ (928) | $ (663) | (3) | ||
Exchange of shares related to Spin-off (in shares) | 149,981 | 9,399 | (92,789) | (66,285) | ||||
Restricted Stock Award | 0 | $ 49 | (49) | |||||
Restricted Stock Award (in shares) | 4,871 | |||||||
Other | 515 | 515 | ||||||
Balance at end of period at Jun. 30, 2021 | 379,138 | $ 1,551 | $ 94 | $ 0 | $ 0 | 677,667 | (300,088) | (86) |
Balance at end of period (in shares) at Jun. 30, 2021 | 155,065 | 9,399 | 0 | 0 | ||||
Balance at beginning of period at Mar. 31, 2021 | 389,134 | $ 0 | $ 0 | $ 928 | $ 663 | 667,348 | (279,696) | (109) |
Balance at beginning of period (in shares) at Mar. 31, 2021 | 0 | 0 | 92,789 | 66,285 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (20,392) | (20,392) | ||||||
Other comprehensive income (loss) | 23 | 23 | ||||||
Stock-based compensation expense | 14,695 | 14,695 | ||||||
Amounts related to settlement of equity awards | (4,335) | $ 2 | (4,337) | |||||
Amounts related to settlement of equity awards (in shares) | 213 | |||||||
Exchange of shares related to Spin-off | 0 | $ 1,500 | $ 94 | $ (928) | $ (663) | (3) | ||
Exchange of shares related to Spin-off (in shares) | 149,981 | 9,399 | (92,789) | (66,285) | ||||
Restricted Stock Award | 0 | $ 49 | (49) | |||||
Restricted Stock Award (in shares) | 4,871 | |||||||
Other | 13 | 13 | ||||||
Balance at end of period at Jun. 30, 2021 | $ 379,138 | $ 1,551 | $ 94 | $ 0 | $ 0 | $ 677,667 | $ (300,088) | $ (86) |
Balance at end of period (in shares) at Jun. 30, 2021 | 155,065 | 9,399 | 0 | 0 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | ||
Class B common stock | |||
Common stock, par value (USD per share) | 0.01 | ||
Vimeo OpCo Class A Voting stock | |||
Common stock, par value (USD per share) | 0.01 | $ 0.01 | $ 0.01 |
Vimeo OpCo Class B Non-Voting stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (17,079) | $ (35,036) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation expense | 19,607 | 6,031 |
Amortization of intangibles | 3,471 | 6,038 |
Depreciation | 300 | 160 |
Provision for credit losses | 280 | 1,622 |
Gain on the sale of an asset | (10,217) | 0 |
Other adjustments, net | 540 | 2,386 |
Changes in assets and liabilities: | ||
Accounts receivable | (5,248) | (6,755) |
Prepaid expenses and other assets | (6,100) | (1,864) |
Accounts payable and other liabilities | 3,026 | 1,079 |
Deferred revenue | 29,571 | 36,526 |
Net cash provided by operating activities | 18,151 | 10,187 |
Cash flows from investing activities: | ||
Capital expenditures | (215) | (433) |
Proceeds from the sale of an asset | 7,768 | 0 |
Other, net | 0 | 98 |
Net cash provided by (used in) investing activities | 7,553 | (335) |
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) | (7,853) |
Deferred financing costs | (1,440) | 0 |
Withholding taxes paid related to equity awards | (8,181) | (1,089) |
Proceeds from exercise of stock options | 4 | 0 |
Net cash provided by (used in) financing activities | 195,568 | (8,942) |
Total cash provided | 221,272 | 910 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (57) | (32) |
Net increase in cash and cash equivalents and restricted cash | 221,215 | 878 |
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 | $ 331,252 | $ 2,841 |
THE COMPANY AND BASIS OF PRESEN
THE COMPANY AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND BASIS OF PRESENTATION | THE COMPANY AND BASIS OF PRESENTATION 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. As used herein, "Vimeo," "we," "our" or "us" and similar terms in these consolidated financial statements refer to Vimeo, Inc. (formerly Vimeo Holdings, Inc.) and its subsidiaries (unless the context requires otherwise). Spin-off On May 25, 2021, Vimeo completed its separation from the remaining businesses of IAC/InterActiveCorp ("IAC") through a series of transactions (which we refer to as the “Spin-off”) that resulted in the pre-transaction stockholders of IAC directly owning shares in both IAC and Vimeo, and in Vimeo becoming a separately traded public company. The Spin-off was structured to include the following steps: • Certain restructuring transactions, including, among other things, the transfer to Vimeo of IAC’s equity interests in Vimeo.com, Inc. ("Vimeo OpCo," formerly known as Vimeo, Inc.), and the repayment by Vimeo OpCo of all outstanding intercompany debt owed to IAC and its subsidiaries (other than Vimeo OpCo’s subsidiaries). • Amending IAC’s certificate of incorporation to provide for: ◦ the reclassification of each share of IAC common stock, par value $0.001 into (i) one share of IAC common stock, par value $0.0001 and (ii) 1/100th of a share of IAC Series 1 mandatorily exchangeable preferred stock that was automatically exchanged for a number of shares of Vimeo common stock equal to an exchange ratio of 1.6235 (the "Spin-off Exchange Ratio," with holders receiving cash in lieu of any fractional shares of Vimeo common stock resulting, after aggregation, from the reclassification); and ◦ the reclassification of each share of IAC Class B common stock, par value $0.001 into (i) one share of IAC Class B common stock, par value $0.0001 and (ii) 1/100th of a share of IAC Series 2 mandatorily exchangeable preferred stock that was automatically exchanged for a number of shares of Vimeo Class B common stock equal to the Spin-off Exchange Ratio (with holders receiving cash in lieu of any fractional shares of Vimeo Class B common stock resulting, after aggregation, from the reclassification). • The effectiveness of certain other amendments to IAC's certificate of incorporation. Prior to the Spin-off, IAC indirectly owned approximately 88% of Vimeo OpCo's outstanding shares, with the remaining Vimeo OpCo shares held by third parties. In connection with the Spin-off, the Vimeo OpCo shareholders agreement required IAC to cause the conversion of the Vimeo OpCo shares held by such non-IAC Vimeo OpCo stockholders into Vimeo common stock, which we refer to as the “Vimeo minority exchange.” The shareholders agreement also required that the non-IAC Vimeo OpCo stockholders be compensated (in the form of additional Vimeo equity) for dilution resulting from the issuance of Vimeo options in respect of vested IAC employee option awards that were adjusted in the Spin-off. Each such Vimeo OpCo shareholder was compensated for their ratable portion of 50% of the intrinsic value of the Vimeo options so issued, measured at the time of the Spin-off. The Vimeo Merger, as defined below, was completed pre-market on May 25, 2021 and satisfied these obligations. On the terms and subject to the conditions of the Agreement and Plan of Merger, as amended and restated on March 12, 2021 (the “Vimeo Merger Agreement”), following the Spin-off on May 25, 2021, Stream Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Vimeo (“Merger Sub”) merged with and into Vimeo OpCo, with Vimeo OpCo surviving as a wholly-owned subsidiary of Vimeo (the “Vimeo Merger”). Each share of Vimeo OpCo capital stock held prior to the Vimeo Merger by a non-IAC Vimeo OpCo stockholder was converted into 1.0143 ("Vimeo Merger Exchange Ratio") shares of Vimeo common stock (with holders receiving cash in lieu of any fractional shares of Vimeo common stock resulting, after aggregation, from the Vimeo Merger). Additionally, each restricted stock unit ("RSU") corresponding to shares of Vimeo OpCo ("Vimeo OpCo RSU") was converted into an RSU corresponding to shares of Vimeo common stock (“Vimeo RSU”), with the number of shares covered by such Vimeo RSU equal to the number of shares covered by the Vimeo OpCo RSU times the Vimeo Merger Exchange Ratio. Each stock appreciation right ("SAR") corresponding to shares of Vimeo OpCo (“Vimeo OpCo SAR”) was converted into a SAR corresponding to shares of Vimeo common stock (“Vimeo SAR”), with the number of shares covered by such Vimeo SAR equal to the number of shares covered by the Vimeo OpCo SAR times the Vimeo Merger Exchange Ratio and the per share exercise price of such Vimeo SAR equal to the per share exercise price of the Vimeo OpCo SAR divided by the Vimeo Merger Exchange Ratio. Basis of Presentation and Consolidation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the rules and regulations of the Securities and Exchange Commission ("SEC"). 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 interim 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 for the year ended December 31, 2020 and notes thereto included in the registration statement on Form S-1 of Vimeo, Inc. filed with the SEC on May 26, 2021. All intercompany transactions and balances between and among Vimeo and its subsidiaries have been eliminated. All related party transactions between Vimeo and IAC and its subsidiaries, other than amounts related to the settlement of equity awards and borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated statement of cash flows as "Accounts payable and other liabilities" as operating activities. Amounts related to the settlement of equity awards and borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated statement of cash flows as financing activities. All related party balances between Vimeo and IAC and its subsidiaries, other than borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated balance sheet within "Accrued expenses and other current liabilities." Borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated balance sheet as "Promissory note due on demand—related party" and "Long-term debt—related party." Prior to the Spin-off, the consolidated financial statements of Vimeo OpCo and subsidiaries were prepared on a standalone basis and were derived from the historical accounting records of Vimeo OpCo and IAC. The accompanying 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 accompanying consolidated balance sheet within "Additional paid-in-capital." Additionally, income taxes were 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. 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, standalone company for the periods presented. 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 that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results could differ from these estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include those related to: the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of the estimated 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 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. Revenue Recognition Vimeo's revenue is derived primarily from SaaS subscription fees paid by customers for self-serve and enterprise subscription plans. Revenue, in the amount that reflects the consideration Vimeo expects to be entitled to, is recognized on a straight-line basis over the contractual term of the arrangement beginning on the date that the service is made available to the customer. Subscription periods range from one month to three years with the most common being an annual subscription and are generally non-cancellable. 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 June 30, 2021 were $165.3 million and $1.1 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet. The current and non-current deferred revenue balances at December 31, 2020 were $137.4 million and $0.8 million, respectively. During the six months ended June 30, 2021, Vimeo recognized $110.7 million of revenue that was included in the deferred revenue balance at December 31, 2020. During the six months ended June 30, 2020, Vimeo recognized $65.9 million of revenue that was included in the deferred revenue balance at December 31, 2019. Practical Expedients and Exemptions As permitted under the practical expedient available under Accounting Standards Update 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, and includes renewal periods because renewal commissions are not commensurate with the initial commission. For sales incentive programs where the customer relationship period is one year or less, Vimeo has elected to expense the costs as incurred, as permitted under the practical expedient. 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 "Prepaid expenses and other current assets" and "Other non-current assets" in the accompanying consolidated balance sheet and were $3.2 million and $5.7 million, and $2.7 million and $4.9 million, at June 30, 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 | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
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 through the Spin-off. For all periods presented, the income tax provision was computed for Vimeo on an as-if-standalone separate tax return basis. Payments to and refunds fro m IAC for Vimeo's share of IAC’s consoli dated state tax return liabilities, calculated on this basis, 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 June 30, 2021 and 2020, Vimeo recorded an income tax provision of $0.1 million and an income tax benefit of $0.1 million, respectively. For the six months ended June 30, 2021 and 2020, Vimeo recorded an income tax provision of $0.5 million and $0.4 million, respectively. 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 income tax provision. There are currently no accruals for interest or penalties. At both June 30, 2021 and December 31, 2020, unrecognized tax benefits were $1.9 million, all of which are for tax positions include d in IAC's consolidated tax return filings . If unrecognized tax benefits at June 30, 2021 are subsequently recognized, there would be no impact to income tax provision due to the valuation allowance on deferred tax assets . Vimeo believes no unrecognized tax benefits would decrease by June 30, 2022. Vimeo is routinely under income tax audits by federal, state, local and foreign authorities 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, 2013 through 2017, which includes the operations of Vimeo. The statutes of limitations for the years 2013 through 2017 have been extended to June 30, 2022. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
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 for which Vimeo must develop its own assumptions, based on the best information available in the circumstances, about the inputs that 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: June 30, 2021 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 312,236 $ — $ — $ 312,236 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 if an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY | REVOLVING CREDIT FACILITYOn February 12, 2021, Vimeo OpCo 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. At June 30, 2021, 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. 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 June 30, 2021, there were no outstanding borrowings under the Credit Facility. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Description of Vimeo Common Stock and Vimeo Class B Common Stock Except as described herein, shares of Vimeo common stock and Vimeo Class B common stock are identical. In general, the holders of Vimeo common stock vote together as a single class with the holders of Vimeo Class B common stock on all matters, including the election of directors; provided, however, that the holders of Vimeo common stock, acting as a single class, are entitled to elect twenty-five percent (25%) of the total number of Vimeo directors, rounded up to the next whole number in the event of a fraction. Each outstanding share of Vimeo common stock and Vimeo Class B common stock entitles the holder to one vote per share and ten votes per share, respectively. The holders of shares of Vimeo common stock and the holders of shares of Vimeo Class B 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 for the payment of dividends. In the event of a liquidation, dissolution, distribution of assets or winding-up of Vimeo, the holders of shares of Vimeo common stock and Vimeo Class B common stock are entitled to receive, share for share, all the assets available for distribution after payment of a proper amount to the holders of any series of Vimeo preferred stock, including any series that may be issued in the future. Upon completion of the Spin-off, Vimeo amended and restated its certificate of incorporation such that it is authorized to issue 1,600,000,000 shares of Vimeo common stock and 400,000,000 shares of Vimeo Class B common stock. Description of Preferred Stock Vimeo's Board of Directors is authorized to provide for the issuance of shares of preferred stock, and any class or series thereof, and to assign the designations, powers, preferences and rights to each such class or series and any qualifications, limitations or restrictions. There have been no preferred stock issuances to date. Sale of Common Stock In January 2021, Vimeo OpCo raised $300 million of equity capital via the sale of approximately 6.2 million shares of its 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 its 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 | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of foreign currency translation adjustments: Three Months Ended June 30, 2021 2020 (In thousands) Balance as of April 1 $ (109) $ (352) Other comprehensive income 23 69 Balance as of June 30 $ (86) $ (283) Six Months Ended June 30, 2021 2020 (In thousands) Balance as of January 1 $ (87) $ (232) Other comprehensive income (loss) 1 (51) Balance as of June 30 $ (86) $ (283) At both June 30, 2021 and 2020, there was no income tax benefit or provision related to accumulated other comprehensive loss. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Vimeo has one active plan (the “2021 Plan”) which was adopted in connection with the Spin-off. The 2021 Plan replaced the Vimeo, LLC 2012 Incentive Plan, the Vimeo, Inc. 2017 Incentive Plan and the Vimeo, Inc. 2019 Incentive Plan (including the Israeli Appendix), collectively referred to as the “Prior Plans.” The Prior Plans were automatically terminated and replaced and superseded by the 2021 Plan upon the completion of the Spin-off. Any and all awards granted under the Prior Plans, remain in effect on their pre Spin-off terms pursuant to the 2021 Plan, subject to adjustment in connection with the Spin-off and the Vimeo Merger. The 2021 Plan also covers vested IAC stock options that were converted into Vimeo stock options in connection with the Spin-off. The 2021 plan authorizes the Company to grant equity awards to its employees, officers, directors and consultants covering an aggregate of up to 10,000,000 shares of the Company's common stock. Equity awards provided for in the 2021 Plan include SARs, stock options, RSUs, and other stock-based awards related to shares of Vimeo common stock. The exercise price of stock options and SARs cannot be less than the market value of Vimeo common stock on the grant date. In connection with the settlement of stock-based awards, shares of Vimeo common stock may be issued either from authorized but unissued shares or from treasury stock. Stock-based compensation expense primarily includes amounts related to the Company’s SARs, including performance-based SARs, RSUs, and Vimeo Restricted Shares (as described further below). The amount of stock-based compensation expense recognized is net of estimated forfeitures, as the expense recorded is based on awards that are ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. At June 30, 2021, there was $60.8 million of unrecognized compensation cost, net of estimated forfeitures, related to all outstanding SARs and RSUs which is expected to be recognized over a weighted-average period of 2.6 years. Additionally, there was $86.3 million of unrecognized compensation cost related to the Vimeo Restricted Shares which is expected to be recognized over the remaining vesting period of 9.4 years. For more information on the impact of the Spin-off and the Vimeo Merger on equity awards refer to " Note 1—The Company and Basis of Presentation ." Stock appreciation rights and stock options SARs and stock options outstanding at June 30, 2021 and changes during the six months ended June 30, 2021 were as follows: SARs and stock options Weighted average exercise price Weighted average remaining contractual term in years Aggregate intrinsic value (Shares and intrinsic value in thousands) Outstanding Vimeo OpCo SARs at December 31, 2020 13,897 $ 6.42 Granted 63 35.35 Exercised (305) 5.52 Forfeited (178) 6.56 Outstanding Vimeo OpCo SARs prior to Spin-off 13,477 6.57 Outstanding Vimeo SARs after Spin-off (a) 13,686 6.49 Conversion of Vested IAC Stock Options (b) 6,201 4.33 Exercised (261) 5.27 Forfeited (17) 7.15 Outstanding Vimeo SARs and Stock Options at June 30, 2021 19,609 5.82 6.5 $ 846,717 Exercisable 12,809 $ 5.02 5.6 $ 563,340 ____________________ (a) Reflects the conversion of unvested Vimeo OpCo SARs into Vimeo SARs by multiplying each award of Unvested Vimeo OpCo SARs prior to Spin-off by the Vimeo Merger Exchange Ratio. (b) Reflects the conversion of vested IAC stock options into vested Vimeo stock options by multiplying each vested award of IAC stock options prior to the Spin-off by the Spin-off Exchange Ratio. Restricted stock units RSUs outstanding at June 30, 2021 and changes during the six months ended June 30, 2021 were as follows: Number of Shares Weighted Average (Shares in thousands) Unvested Vimeo OpCo RSUs at December 31, 2020 88 $ 17.33 Granted 1,734 35.35 Forfeited (5) 35.35 Unvested Vimeo OpCo RSUs prior to Spin-off 1,817 34.48 Unvested Vimeo RSUs after Spin-off (a) 1,844 34.70 Granted 31 44.75 Unvested Vimeo RSUs at June 30, 2021 1,875 $ 34.87 _____________________ (a) Reflects the conversion of unvested Vimeo OpCo RSUs into Vimeo RSUs by multiplying each award of Unvested Vimeo OpCo RSUs prior to Spin-off by the Vimeo Merger Exchange Ratio. Vimeo Restricted Shares In connection with the Spin-off, pursuant to which Vimeo equity awards were issued as part of the adjustment of certain outstanding IAC equity awards, Vimeo entered into a Restricted Stock Agreement (the “RSA”) with Joseph Levin, Chairman of the Vimeo board of directors and IAC’s Chief Executive Officer. The terms of the RSA were determined pursuant to the existing requirements of Mr. Levin’s restricted stock agreement with IAC as in effect prior to the Spin-off. The RSA provides for a grant of 4,870,500 shares of Vimeo common stock (“Vimeo Restricted Shares”), that cliff vest on November 5, 2030, based on satisfaction of certain Vimeo stock price targets and Mr. Levin’s continuous service as a Vimeo director through the vesting date. The number of Vimeo Restricted Shares subject to the RSA is the result of the 3,000,000 shares of IAC Restricted common stock, subject to Mr. Levin’s restricted stock agreement with IAC, multiplied by the Spin-off Exchange Ratio. Mr. Levin may elect to accelerate vesting of the Vimeo Restricted Shares, effective on the 6th, 7th, 8th, or 9th anniversary of the original effective date of the IAC restricted stock agreement (November 5, 2020) (the “Effective Date”), in which case performance will be measured through such date, and Mr. Levin will receive a pro-rated portion of the award (based on the years elapsed from the Effective Date) and any remaining shares will be forfeited. The applicable stock price goals are proportionately lower on the earlier vesting dates. The value of the Vimeo Restricted Shares was determined using a lattice model that incorporated a Monte Carlo simulation of Vimeo's stock price and IAC’s stock price as this award contains a market condition. The attribution of the estimated fair values of the awards (the sum of the fair value of the original IAC award as of the Effective Date, plus any incremental value as a result of the modification to the original IAC award) between IAC and Vimeo, was determined on a proportional basis as a function of the estimated fair value of each respective award as of the date of the Spin-off. The amount allocated to Vimeo was $87.3 million and is expected to be recognized over the remaining requisite service period through November 2030 subject to Mr. Levin’s continuous service as a Vimeo director. Modification |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHARE Vimeo common stock and Class B common stock are treated as one class of common stock for earnings per share ("EPS") purposes as both classes of common stock participate in earnings, dividends and other distributions on the same basis. The Vimeo Restricted Shares are participating securities because these shares are unvested and have a non-forfeitable dividend right in the event the Company declares a cash dividend to common shareholders and participates in all other distributions of the Company in the same manner as all other Vimeo common shareholders. No allocation of undistributed losses was made for the three and six months ended June 30, 2021 as the Vimeo Restricted Shares do not participate in losses of the Company. The following table sets forth the computation of basic and diluted loss per share attributable to common shareholders. Three Months Ended June 30, 2021 2020 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net loss $ (20,392) $ (20,392) $ (14,776) $ (14,776) Denominator: (a) (b) (c) Weighted average basic shares outstanding 159,418 159,418 159,381 159,381 Dilutive securities — — — — Denominator for loss per share—weighted average shares 159,418 159,418 159,381 159,381 Loss per share attributable to common stock shareholders: Loss per share $ (0.13) $ (0.13) $ (0.09) $ (0.09) Six Months Ended June 30, 2021 2020 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net loss $ (17,079) $ (17,079) $ (35,036) $ (35,036) Denominator: (a) (b) (c) Weighted average basic shares outstanding 159,399 159,399 159,381 159,381 Dilutive securities — — — — Denominator for loss per share—weighted average shares 159,399 159,399 159,381 159,381 Loss per share attributable to common stock shareholders: Loss per share $ (0.11) $ (0.11) $ (0.22) $ (0.22) _____________________ (a) Vimeo Restricted Shares were included in shares of common stock issued and outstanding at June 30, 2021 in the accompanying consolidated balance sheet, but were excluded from the weighted average basic shares outstanding for EPS purposes because the number of shares that ultimately vest is subject to the satisfaction of the conditions described in " Note 7 — Stock-Based Compensation ." (b) For the three and six months ended June 30, 2021, approximately 26.4 million potentially dilutive equity awards were excluded from the computation of diluted EPS because the impact would have been anti-dilutive. (c) Weighted average basic and dilutive shares outstanding for the three and six months ended June 30, 2020 reflect Vimeo's outstanding shares immediately after the completion of the Spin-off as described in " Note 1—The Company and Basis of Presentation |
FINANCIAL STATEMENT DETAILS
FINANCIAL STATEMENT DETAILS | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL STATEMENT DETAILS | 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: June 30, 2021 December 31, 2020 June 30, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 331,024 $ 110,011 $ 2,648 $ 1,939 Restricted cash included in other current assets 228 26 193 24 Total cash and cash equivalents and restricted cash as shown in the consolidated statement of cash flows $ 331,252 $ 110,037 $ 2,841 $ 1,963 Restricted cash at June 30, 2021 and 2020 primarily consisted of a deposit related to a lease. Restricted cash at December 31, 2020 and 2019 primarily consisted of a deposit related to corporate credit cards. Credit Losses The following table presents the changes in the allowance for credit losses for the six months ended June 30, 2021 and 2020, respectively : 2021 2020 (In thousands) Balance at January 1 $ 476 $ 273 Current period provision for credit losses 280 1,622 Write-offs charged against the allowance (522) (451) Recoveries collected 282 14 Balance at June 30 $ 516 $ 1,458 Accumulated Amortization and Depreciation The following table provides the accumulated amortization and depreciation within the accompanying consolidated balance sheet: Asset Category June 30, 2021 December 31, 2020 (In thousands) Right-of-use assets included in other non-current assets $ 5,561 $ 4,727 Leasehold improvements and equipment $ 972 $ 712 Intangible assets with definite lives $ 37,317 $ 33,846 Other income (expense), net Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Other income (expense), net $ 142 $ (164) $ 10,229 $ (223) Other income (expense), net generally relates to net foreign exchange gains and losses, and in the six months ended June 30, 2021 included 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 by Vimeo 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 when it becomes probable that additional consideration will be received. Geographic Concentrations Geographic information about revenue and long-lived assets is presented below. Revenue by geography is based on where the customer is located. The United States is the only country for which revenue was greater than 10% of Vimeo's total revenue for the three and six months ended June 30, 2021 and 2020 . Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Revenue: United States $ 48,920 $ 33,858 $ 94,715 $ 63,469 All other countries 47,126 33,476 90,753 60,833 Total $ 96,046 $ 67,334 $ 185,468 $ 124,302 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at June 30, 2021 and December 31, 2020 relate to "Leasehold improvements and equipment, net." June 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 2,315 $ 2,549 All other countries 917 772 Total $ 3,232 $ 3,321 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In the ordinary course of business, Vimeo is, and from time to time may become, a party to various legal proceedings. 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. EMI/Capitol Records Copyright Infringement Litigation In December 2009, a group of music publishers owned by EMI Music Publishing (now owned by Sony/ATV Music Publishing, a subsidiary of Sony Entertainment) and a group of then EMI-affiliated record companies, including Capitol Records (now owned by Universal Music Group, a subsidiary of Vivendi), filed two lawsuits against Vimeo and its former owner, Connected Ventures, in the U.S. District Court for the Southern District of New York. See Capitol Records, LLC v. Vimeo, LLC , No. 09 Civ. 10101 (S.D.N.Y.) and EMI Blackwood Music, Inc. v. Vimeo, LLC , No. 09 Civ. 10105 (S.D.N.Y.). In both cases, plaintiffs allege that Vimeo infringed their music copyrights (in the publishers’ musical compositions and the record companies’ sound recordings) by hosting and streaming videos uploaded by users (and in certain cases, former employees) featuring their musical works. Plaintiffs seek, among other things, injunctive relief and monetary damages. The initial complaints identified 199 videos as infringing (which Vimeo removed post-suit). Prior to suit, plaintiffs did not avail themselves of their right to submit a takedown notice to Vimeo pursuant to the online safe harbor provisions of the Digital Millennium Copyright Act of 1998 ("DMCA"), which limits the liability of online service providers for copyright infringement of their users when the provider takes certain measures. Vimeo asserts that the DMCA limits its liability because it complies with the DMCA and plaintiffs failed to submit takedown notices. Plaintiffs disagree, asserting various theories as to why the DMCA may not apply to some or all of the videos-in-suit. The district court bifurcated proceedings and required the parties to first litigate the issue of whether Vimeo satisfied the DMCA’s safe harbor provisions. On September 18, 2013, the district court granted partial summary judgment to Vimeo on 144 of the 199 original videos-in-suit on the ground that Vimeo complied with the threshold requirements of the DMCA and that there was no evidence that a Vimeo employee had watched the videos in question such that Vimeo had actual or "red flag" knowledge of infringement, which would disqualify the DMCA’s application. The court denied summary judgment as to 35 videos-in-suit on the ground that there was a material question of fact as to whether Vimeo had "red flag" knowledge of infringement based upon employees having watched all or part of these videos. The court further held that the DMCA did not apply to the record companies’ state-law claims regarding sound recordings fixed before February 1972; a trial was necessary to determine whether Vimeo was liable for employees who uploaded approximately 20 videos; and that plaintiffs should be permitted to amend their complaints to add over 1,500 videos allegedly infringing their copyrights (which Vimeo removed after receiving plaintiffs’ proposed amended complaint). Vimeo sought and obtained the right to appeal certain issues on an interlocutory basis to the U.S. Court of Appeals for the Second Circuit. On June 16, 2016, the Second Circuit held that (1) the district court had applied the incorrect summary-judgment standard for "red flag" infringement and that evidence that an employee watched all or part of a video containing plaintiffs’ music did not raise a genuine issue of fact as to whether Vimeo had "red flag" knowledge in such video; (2) the DMCA applies to state-law copyright infringement claims predicated on pre-1972 sound recordings; and (3) on an issue raised by plaintiffs in their cross-appeal, the record did not show that Vimeo was willfully blind towards infringing activity taking place on its platform. As a result of these rulings, the Second Circuit partially vacated the district court’s ruling and remanded the case for further proceedings consistent with its judgment. On March 31, 2018, the district court granted Vimeo’s motion to dismiss plaintiffs’ state-law unfair competition claims on the grounds that they were state-law copyright claims covered by the DMCA per the Second Circuit’s judgment. On May 28, 2021, the district court granted Vimeo summary judgment as to videos for which the sole remaining basis of liability the assertion that Vimeo had “red flag” knowledge of infringement. Vimeo believes that the allegations in these lawsuits are without merit and will defend vigorously against them. RTI Copyright Litigation Between 2012 and 2017, Italian broadcaster Reti Televisive Italiane s.p.a. and an affiliate thereof (collectively, "RTI") filed four lawsuits for copyright infringement against Vimeo in the Civil Court of Rome. See Reti Televisive Italiane s.p.a. v. Vimeo, LLC , Cause Nos. 23732/12, 62343/2015, and 59780/2017 (Rome Civil Court), and Medusa Film v. Vimeo, Inc. , Cause No. 74775/2017 (Rome Civil Court). In each case, RTI asserts that Vimeo infringed its copyrights by hosting and streaming user-uploaded videos that allegedly contain RTI’s television or film programming, and seeks, among other things, injunctive relief and monetary damages. On January 15, 2019, the Civil Court of Rome concluded the first case (No. 23732/12) and entered a judgment against Vimeo, awarding RTI damages of EUR 8,500,000 plus interest and entering an injunction against Vimeo with respect to further acts of infringement. Vimeo filed an appeal and petitioned to stay the judgment pending appeal. On May 13, 2019, the Rome Court of Appeal stayed the judgment pending appeal. The appeal is currently pending. On June 2, 2019, the Civil Court of Rome concluded the second case (No. 62343/2015) and entered a judgment against Vimeo, awarding RTI damages of EUR 4,746,273 plus interest and entering an injunction against Vimeo as to further acts infringement. Vimeo filed an appeal and petitioned to stay the judgment pending appeal. The Rome Court of Appeal declined to stay the judgment. The appeal is currently pending. On October 26, 2020, RTI commenced a lawsuit against Vimeo in the U.S. District Court for the Southern District of New York to enforce the damages award of the June 2019 judgment. See Reti Televisive Italiane s.p.a. v. Vimeo, LLC , No. 20 Civ. 8954 (S.D.N.Y.). On December 22, 2020, Vimeo and RTI filed, and the district court entered, a stipulation and order staying the U.S. proceedings pending the final outcome of the appeals from the Italian judgment at issue. Proceedings in the third and fourth cases (Nos. 59780/2017 and 74775/2017, respectively) are pending before the Civil Court of Rome. Vimeo believes that the allegations in these lawsuits are without merit and will defend vigorously against them. Sony/Universal/Warner Copyright Litigation In March 2021, Sony Music Entertainment Italy (a subsidiary of Sony Music Entertainment Group), Warner Music Italia (a subsidiary of Warner Music Group), Universal Music Italia (a subsidiary of Universal Music Group), and Warner Music International Services (a subsidiary of Warner Music Group) filed a lawsuit against Vimeo in the Court of Milan alleging violations of Italian copyright and unfair competition laws. See Sony Music Entertainment Italy s.p.a. et al. v. Vimeo, Inc. , Case No. 10977/2021 (Court of Milan, Business Division). The complaint alleges that Vimeo infringed plaintiffs’ copyrights by hosting and streaming user-uploaded videos that contain plaintiffs’ copyrighted works and that, upon notification of the alleged infringement, Vimeo employed a takedown process that did not comply with Italian law. The complaint seeks, among other things, injunctive relief. Vimeo has not yet responded to the complaint. Vimeo believes that the allegations in this lawsuit are without merit and will defend vigorously against them. Illinois Biometric Information Privacy Act Litigation On September 9, 2019, Bradley Acaley filed, on behalf of himself and other similarly situated individuals, a putative class action complaint against Vimeo in the Circuit Court of Cook County, Illinois. Vimeo thereafter removed the case to the U.S. District Court for the Northern District of Illinois, where it is now pending. See Bradley Acaley v. Vimeo, Inc. , No. 19 Civ. 7164 (N.D. Ill.). In his complaint, plaintiff asserts that Vimeo’s Magisto mobile application collected facial biometric information in a manner that violated his rights under the Illinois Biometric Information Privacy Act ("BIPA"), and he seeks, among other things, injunctive relief and monetary damages. Vimeo moved to compel arbitration of the case. On June 1, 2020, the district court denied Vimeo’s motion. On June 18, 2020, Vimeo filed an appeal to the U.S. Court of Appeals for the Seventh Circuit. On June 23, 2020, the district court administratively closed the case pending appeal. Vimeo believes that the allegations in this lawsuit are without merit and will defend vigorously against them. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Relationship with IAC Following the Spin-off, the relationship between Vimeo and IAC is governed by a number of agreements. These agreements include: a separation agreement; a tax matters agreement; a transition services agreement; an employee matters agreement; a data protection agreement; and an office lease agreement. Through the end of 2021, Vimeo will continue to (i) participate in IAC's health and welfare benefit plans, (ii) obtain certain services through contracts that are held in IAC's name, for which Vimeo reimburses IAC and (iii) obtain from IAC (or provide to) certain corporate support services. The total related charges for the three and six months ended June 30, 2021 and June 30, 2020 were $3.2 million and $5.9 million, and $2.2 million and $5.0 million, respectively. At June 30, 2021 , Vimeo had a current payable due to IAC of $3.0 million, which was included in " Accrued expenses and other current liabilities " in the accompanying consolidated balance sheet and was subsequently paid in July 2021 . At December 31, 2020, there was no amount due to IAC. Upon the completion of the Spin-off, Vimeo entered into an operating lease agreement with IAC for the space we occupy in IAC's headquarters building. At June 30, 2021 Vimeo h ad a current lease liability of $4.1 million included in "Accrued expenses and other current liabilities" and a non-current lease liability of $4.0 million included in "Other long-term liabilities" in the accompanying consolidated balance sheet. Prior to the Spin-off, IAC allocated rent expense to Vimeo for the same space. The total rent for the three and six months ended June 30, 2021 and June 30, 2020 was $1.1 million and $1.9 million, and $0.8 million and $2.0 million, respectively. For periods 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, financial systems, and internal audit functions. These allocations were based on Vimeo's revenue as a percentage of IAC's total revenue. Allocated costs were $1.0 million for the six months ended June 30, 2021. There were no such costs allocated by IAC in the three months ended June 30, 2021. Allocated costs were $2.8 million and $3.6 million for the three and six months ended June 30, 2020. These allocations are reflected in the accompanying consolidated balance sheet within "Additional paid-in-capital." 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. Debt—Related Party The following table presents the carrying value and the estimated fair value of debt—related party, which is measured at fair value only for disclosure purposes: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (In thousands) Promissory note due on demand—related party $ — $ — $ 44,565 $ 44,565 Promissory note due May 2, 2023—related party — — 50,000 54,545 Total debt—related party $ — $ — $ 94,565 $ 99,110 In January 2021, Vimeo OpCo 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 described in " Note 5—Shareholders' Equity ." Each promissory note bore interest at 10% per annum. Accrued interest on debt —related party at December 31, 2020 was $4.2 million and i s included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet. The estimated fair value of debt—related party was based on Level 3 inputs and was estimated by discounting the future cash flows based on current market conditions. |
THE COMPANY AND BASIS OF PRES_2
THE COMPANY AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. As used herein, "Vimeo," "we," "our" or "us" and similar terms in these consolidated financial statements refer to Vimeo, Inc. (formerly Vimeo Holdings, Inc.) and its subsidiaries (unless the context requires otherwise). |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the rules and regulations of the Securities and Exchange Commission ("SEC"). 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 interim 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 for the year ended December 31, 2020 and notes thereto included in the registration statement on Form S-1 of Vimeo, Inc. filed with the SEC on May 26, 2021. All intercompany transactions and balances between and among Vimeo and its subsidiaries have been eliminated. All related party transactions between Vimeo and IAC and its subsidiaries, other than amounts related to the settlement of equity awards and borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated statement of cash flows as "Accounts payable and other liabilities" as operating activities. Amounts related to the settlement of equity awards and borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated statement of cash flows as financing activities. All related party balances between Vimeo and IAC and its subsidiaries, other than borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated balance sheet within "Accrued expenses and other current liabilities." Borrowings from and principal payments to certain IAC subsidiaries, are reflected in the accompanying consolidated balance sheet as "Promissory note due on demand—related party" and "Long-term debt—related party." Prior to the Spin-off, the consolidated financial statements of Vimeo OpCo and subsidiaries were prepared on a standalone basis and were derived from the historical accounting records of Vimeo OpCo and IAC. The accompanying 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 accompanying consolidated balance sheet within "Additional paid-in-capital." Additionally, income taxes were 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. 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, standalone company for the periods presented. |
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 that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results could differ from these estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include those related to: the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of the estimated 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 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. |
Revenue Recognition | Revenue Recognition Vimeo's revenue is derived primarily from SaaS subscription fees paid by customers for self-serve and enterprise subscription plans. Revenue, in the amount that reflects the consideration Vimeo expects to be entitled to, is recognized on a straight-line basis over the contractual term of the arrangement beginning on the date that the service is made available to the customer. Subscription periods range from one month to three years with the most common being an annual subscription and are generally non-cancellable. 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 June 30, 2021 were $165.3 million and $1.1 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet. The current and non-current deferred revenue balances at December 31, 2020 were $137.4 million and $0.8 million, respectively. During the six months ended June 30, 2021, Vimeo recognized $110.7 million of revenue that was included in the deferred revenue balance at December 31, 2020. During the six months ended June 30, 2020, Vimeo recognized $65.9 million of revenue that was included in the deferred revenue balance at December 31, 2019. Practical Expedients and Exemptions As permitted under the practical expedient available under Accounting Standards Update 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, and includes renewal periods because renewal commissions are not commensurate with the initial commission. For sales incentive programs where the customer relationship period is one year or less, Vimeo has elected to expense the costs as incurred, as permitted under the practical expedient. 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 "Prepaid expenses and other current assets" and "Other non-current assets" in the accompanying consolidated balance sheet and were $3.2 million and $5.7 million, and $2.7 million and $4.9 million, at June 30, 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) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
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: June 30, 2021 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 312,236 $ — $ — $ 312,236 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) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of foreign currency translation adjustments: Three Months Ended June 30, 2021 2020 (In thousands) Balance as of April 1 $ (109) $ (352) Other comprehensive income 23 69 Balance as of June 30 $ (86) $ (283) Six Months Ended June 30, 2021 2020 (In thousands) Balance as of January 1 $ (87) $ (232) Other comprehensive income (loss) 1 (51) Balance as of June 30 $ (86) $ (283) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Appreciation Rights and Stock Options | SARs and stock options outstanding at June 30, 2021 and changes during the six months ended June 30, 2021 were as follows: SARs and stock options Weighted average exercise price Weighted average remaining contractual term in years Aggregate intrinsic value (Shares and intrinsic value in thousands) Outstanding Vimeo OpCo SARs at December 31, 2020 13,897 $ 6.42 Granted 63 35.35 Exercised (305) 5.52 Forfeited (178) 6.56 Outstanding Vimeo OpCo SARs prior to Spin-off 13,477 6.57 Outstanding Vimeo SARs after Spin-off (a) 13,686 6.49 Conversion of Vested IAC Stock Options (b) 6,201 4.33 Exercised (261) 5.27 Forfeited (17) 7.15 Outstanding Vimeo SARs and Stock Options at June 30, 2021 19,609 5.82 6.5 $ 846,717 Exercisable 12,809 $ 5.02 5.6 $ 563,340 ____________________ (a) Reflects the conversion of unvested Vimeo OpCo SARs into Vimeo SARs by multiplying each award of Unvested Vimeo OpCo SARs prior to Spin-off by the Vimeo Merger Exchange Ratio. (b) Reflects the conversion of vested IAC stock options into vested Vimeo stock options by multiplying each vested award of IAC stock options prior to the Spin-off by the Spin-off Exchange Ratio. |
Summary of Restricted Stock Unit Activity | RSUs outstanding at June 30, 2021 and changes during the six months ended June 30, 2021 were as follows: Number of Shares Weighted Average (Shares in thousands) Unvested Vimeo OpCo RSUs at December 31, 2020 88 $ 17.33 Granted 1,734 35.35 Forfeited (5) 35.35 Unvested Vimeo OpCo RSUs prior to Spin-off 1,817 34.48 Unvested Vimeo RSUs after Spin-off (a) 1,844 34.70 Granted 31 44.75 Unvested Vimeo RSUs at June 30, 2021 1,875 $ 34.87 _____________________ (a) Reflects the conversion of unvested Vimeo OpCo RSUs into Vimeo RSUs by multiplying each award of Unvested Vimeo OpCo RSUs prior to Spin-off by the Vimeo Merger Exchange Ratio. |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Loss per Share | The following table sets forth the computation of basic and diluted loss per share attributable to common shareholders. Three Months Ended June 30, 2021 2020 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net loss $ (20,392) $ (20,392) $ (14,776) $ (14,776) Denominator: (a) (b) (c) Weighted average basic shares outstanding 159,418 159,418 159,381 159,381 Dilutive securities — — — — Denominator for loss per share—weighted average shares 159,418 159,418 159,381 159,381 Loss per share attributable to common stock shareholders: Loss per share $ (0.13) $ (0.13) $ (0.09) $ (0.09) Six Months Ended June 30, 2021 2020 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net loss $ (17,079) $ (17,079) $ (35,036) $ (35,036) Denominator: (a) (b) (c) Weighted average basic shares outstanding 159,399 159,399 159,381 159,381 Dilutive securities — — — — Denominator for loss per share—weighted average shares 159,399 159,399 159,381 159,381 Loss per share attributable to common stock shareholders: Loss per share $ (0.11) $ (0.11) $ (0.22) $ (0.22) _____________________ (a) Vimeo Restricted Shares were included in shares of common stock issued and outstanding at June 30, 2021 in the accompanying consolidated balance sheet, but were excluded from the weighted average basic shares outstanding for EPS purposes because the number of shares that ultimately vest is subject to the satisfaction of the conditions described in " Note 7 — Stock-Based Compensation ." (b) For the three and six months ended June 30, 2021, approximately 26.4 million potentially dilutive equity awards were excluded from the computation of diluted EPS because the impact would have been anti-dilutive. (c) Weighted average basic and dilutive shares outstanding for the three and six months ended June 30, 2020 reflect Vimeo's outstanding shares immediately after the completion of the Spin-off as described in " Note 1—The Company and Basis of Presentation |
FINANCIAL STATEMENT DETAILS (Ta
FINANCIAL STATEMENT DETAILS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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: June 30, 2021 December 31, 2020 June 30, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 331,024 $ 110,011 $ 2,648 $ 1,939 Restricted cash included in other current assets 228 26 193 24 Total cash and cash equivalents and restricted cash as shown in the consolidated statement of cash flows $ 331,252 $ 110,037 $ 2,841 $ 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: June 30, 2021 December 31, 2020 June 30, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 331,024 $ 110,011 $ 2,648 $ 1,939 Restricted cash included in other current assets 228 26 193 24 Total cash and cash equivalents and restricted cash as shown in the consolidated statement of cash flows $ 331,252 $ 110,037 $ 2,841 $ 1,963 |
Schedule of Changes in Allowance for Credit Losses | The following table presents the changes in the allowance for credit losses for the six months ended June 30, 2021 and 2020, respectively : 2021 2020 (In thousands) Balance at January 1 $ 476 $ 273 Current period provision for credit losses 280 1,622 Write-offs charged against the allowance (522) (451) Recoveries collected 282 14 Balance at June 30 $ 516 $ 1,458 |
Schedule of Accumulated Depreciation and Amortization | The following table provides the accumulated amortization and depreciation within the accompanying consolidated balance sheet: Asset Category June 30, 2021 December 31, 2020 (In thousands) Right-of-use assets included in other non-current assets $ 5,561 $ 4,727 Leasehold improvements and equipment $ 972 $ 712 Intangible assets with definite lives $ 37,317 $ 33,846 |
Schedule of Other Income (Expense), Net | Other income (expense), net Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Other income (expense), net $ 142 $ (164) $ 10,229 $ (223) |
Schedule of Revenue and Long-lived Assets by Geographic Area | Geographic information about revenue and long-lived assets is presented below. Revenue by geography is based on where the customer is located. The United States is the only country for which revenue was greater than 10% of Vimeo's total revenue for the three and six months ended June 30, 2021 and 2020 . Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Revenue: United States $ 48,920 $ 33,858 $ 94,715 $ 63,469 All other countries 47,126 33,476 90,753 60,833 Total $ 96,046 $ 67,334 $ 185,468 $ 124,302 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at June 30, 2021 and December 31, 2020 relate to "Leasehold improvements and equipment, net." June 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 2,315 $ 2,549 All other countries 917 772 Total $ 3,232 $ 3,321 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Fair Value of Financial Instruments, Related Parties | The following table presents the carrying value and the estimated fair value of debt—related party, which is measured at fair value only for disclosure purposes: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (In thousands) Promissory note due on demand—related party $ — $ — $ 44,565 $ 44,565 Promissory note due May 2, 2023—related party — — 50,000 54,545 Total debt—related party $ — $ — $ 94,565 $ 99,110 |
THE COMPANY AND BASIS OF PRES_3
THE COMPANY AND BASIS OF PRESENTATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | May 25, 2021 | May 24, 2021 | Dec. 31, 2020 | |
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of the intrinsic value of options compensated | 0.50 | ||||
Conversion of Vimeo OpCo capital into Vimeo common stock, exchange ratio (in shares) | 1.0143 | ||||
Deferred revenue | $ 165,338 | $ 137,436 | |||
Non-current deferred revenue | 1,100 | 800 | |||
Deferred revenue recognized during period | 110,700 | $ 65,900 | |||
Current capitalized sales commissions | 3,200 | 2,700 | |||
Non-current capitalized sales commissions | $ 5,700 | $ 4,900 | |||
Common Stock | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Common stock, par value (USD per share) | $ 0.01 | ||||
Number of shares issued upon Spin-off per preferred stock exchanged (in shares) | 1.6235 | ||||
Class B common stock | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Common stock, par value (USD per share) | $ 0.01 | ||||
IAC | Common Stock | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.001 | |||
IAC | Class B common stock | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.001 | |||
IAC | Series 1 Mandatorily Exchangeable Preferred Stock | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Number of preferred stock issued upon reclassification of common stock (in shares) | 0.01 | ||||
IAC | Series 2 Mandatorily Exchangeable Preferred Stock | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Number of preferred stock issued upon reclassification of common stock (in shares) | 0.01 | ||||
IAC | |||||
The Company and Summary of Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 88.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (provision) benefit | $ (100) | $ 106 | $ (485) | $ (449) | |
Unrecognized tax benefits | $ 1,900 | $ 1,900 | $ 1,900 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash equivalents | $ 105,396 | |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 104,852 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 544 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | |
Money market funds | ||
Assets: | ||
Cash equivalents | $ 312,236 | 104,852 |
Money market funds | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 312,236 | 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 | 544 | |
Time deposits | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 544 | |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | $ 0 |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) - Revolving Credit Facility - Vimeo Credit Facility - USD ($) | 6 Months Ended | |
Jun. 30, 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 | 6 Months Ended | ||
Jan. 31, 2021USD ($)$ / sharesshares | Jun. 30, 2021voteshares | May 25, 2021shares | Dec. 31, 2020shares | |
Sale of Equity Capital | ||||
Shareholders' Equity [Line Items] | ||||
Proceeds raised from sale of equity capital | $ | $ 300 | |||
Common Stock | ||||
Shareholders' Equity [Line Items] | ||||
Percentage of directors that can be elected by holders of Vimeo common stock | 0.25 | |||
Votes per each share of stock | vote | 1 | |||
Common stock authorized (in shares) | shares | 1,600,000,000 | 1,600,000,000 | ||
Class B common stock | ||||
Shareholders' Equity [Line Items] | ||||
Votes per each share of stock | vote | 10 | |||
Common stock authorized (in shares) | shares | 400,000,000 | 400,000,000 | ||
Vimeo OpCo Class A Voting stock | ||||
Shareholders' Equity [Line Items] | ||||
Common stock authorized (in shares) | shares | 150,000,000 | |||
Vimeo OpCo Class A Voting stock | Sale of Equity Capital, First Raise | ||||
Shareholders' Equity [Line Items] | ||||
Proceeds raised from sale of equity capital | $ | $ 200 | |||
Number of shares issued in sale of equity capital (in shares) | 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 | |||
Vimeo OpCo Class A Voting stock | Sale of Equity Capital, Second Raise | ||||
Shareholders' Equity [Line Items] | ||||
Proceeds raised from sale of equity capital | $ | $ 100 | |||
Number of shares issued in sale of equity capital (in shares) | 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 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | $ 389,134,000 | $ 5,836,000 | $ 85,080,000 | $ 23,633,000 |
Other comprehensive income (loss) | 23,000 | 69,000 | 1,000 | (51,000) |
Balance at end of period | 379,138,000 | (4,236,000) | 379,138,000 | (4,236,000) |
Income tax provision (benefit) | 100,000 | (106,000) | 485,000 | 449,000 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | (109,000) | (352,000) | (87,000) | (232,000) |
Balance at end of period | (86,000) | (283,000) | (86,000) | (283,000) |
Income tax provision (benefit) | 0 | 0 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Loss | ||||
Other comprehensive income (loss) | $ 23,000 | $ 69,000 | $ 1,000 | $ (51,000) |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions | May 25, 2021USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2021USD ($)planshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans | plan | 1 | ||
Incremental compensation cost | $ 14 | ||
Incremental compensation cost from modification recognized in year of modification | $ 7 | $ 7 | |
2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares covered under the plan (up to) | shares | 10,000,000 | 10,000,000 | |
Stock Appreciation Rights (SARs) and Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, net | $ 60.8 | $ 60.8 | |
Unrecognized compensation cost, period for recognition (in years) | 2 years 7 months 6 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, net | 86.3 | $ 86.3 | |
Unrecognized compensation cost, period for recognition (in years) | 9 years 4 months 24 days | ||
Director | Restricted Stock | Restricted Stock Agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, net | $ 87.3 | $ 87.3 | |
Shares authorized for issuance (in shares) | shares | 4,870,500 | 4,870,500 | |
IAC | Director | Restricted Stock | Restricted Stock Agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (in shares) | shares | 3,000,000 | 3,000,000 |
STOCK-BASED COMPENSATION - SARs
STOCK-BASED COMPENSATION - SARs and Options (Details) - Stock Appreciation Rights (SARs) and Options - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Jun. 30, 2021 | May 24, 2021 | Jun. 30, 2021 | |
SARs and stock options | |||
Outstanding, beginning balance (in shares) | 13,686,000 | 13,897,000 | 13,897,000 |
Granted (in shares) | 63,000 | ||
Conversion of Vested IAC Stock Options (in shares) | 6,201,000 | ||
Exercised (in shares) | (261,000) | (305,000) | |
Forfeited (in shares) | (17,000) | (178,000) | |
Outstanding, ending balance (in shares) | 19,609,000 | 13,477,000 | 19,609,000 |
Weighted average exercise price | |||
Outstanding, weighted average exercise price beginning balance (in USD per share) | $ 6.49 | $ 6.42 | $ 6.42 |
Granted (in USD per share) | 35.35 | ||
Conversion of Vested IAC Stock Options (in USD per share) | 4.33 | ||
Exercised (in USD per share) | 5.27 | 5.52 | |
Forfeited (in USD per share) | 7.15 | 6.56 | |
Outstanding, weighted average exercise price ending balance (in USD per share) | $ 5.82 | $ 6.57 | $ 5.82 |
Outstanding, Weighted average remaining contractual life (in years) | 6 years 6 months | ||
Outstanding, Aggregate intrinsic value (in USD) | $ 846,717 | $ 846,717 | |
Exercisable, number exercisable at June 30, 2021 (in shares) | 12,809,000 | 12,809,000 | |
Exercisable, weighted average exercise price at June 30, 2021 (in USD per share) | $ 5.02 | $ 5.02 | |
Exercisable, weighted average remaining contractual life (in years) | 5 years 7 months 6 days | ||
Exercisable, aggregate intrinsic value at June 30, 2021 (in USD) | $ 563,340 | $ 563,340 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - $ / shares | 1 Months Ended | 5 Months Ended |
Jun. 30, 2021 | May 24, 2021 | |
Number of Shares | ||
Unvested, beginning balance (in shares) | 1,844,000 | 88,000 |
Granted (in shares) | 31,000 | 1,734,000 |
Forfeited (in shares) | (5,000) | |
Unvested, ending balance (in shares) | 1,875,000 | 1,817,000 |
Weighted Average Grant Date Fair Value | ||
Unvested, weighted average grant date fair value, beginning balance (in USD per share) | $ 34.70 | $ 17.33 |
Granted (in USD per share) | 44.75 | 35.35 |
Forfeited (in USD per share) | 35.35 | |
Unvested, weighted average grant date fair value, ending balance (in USD per share) | $ 34.87 | $ 34.48 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator, Basic | ||||
Net loss | $ (20,392) | $ (14,776) | $ (17,079) | $ (35,036) |
Numerator, Diluted | ||||
Net loss | $ (20,392) | $ (14,776) | $ (17,079) | $ (35,036) |
Denominator, Basic | ||||
Weighted average basic shares outstanding (shares) | 159,418 | 159,381 | 159,399 | 159,381 |
Denominator, Diluted | ||||
Weighted average basic shares outstanding (shares) | 159,418 | 159,381 | 159,399 | 159,381 |
Dilutive securities (shares) | 0 | 0 | 0 | 0 |
Denominator for loss per share—weighted average shares (shares) | 159,418 | 159,381 | 159,399 | 159,381 |
Loss per share attributable to common stock shareholders: | ||||
Basic loss per share (USD per share) | $ (0.13) | $ (0.09) | $ (0.11) | $ (0.22) |
Diluted loss per share (USD per share) | $ (0.13) | $ (0.09) | $ (0.11) | $ (0.22) |
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 26,400 | 26,400 |
FINANCIAL STATEMENT DETAILS - S
FINANCIAL STATEMENT DETAILS - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 331,024 | $ 110,011 | $ 2,648 | $ 1,939 |
Restricted cash included in other current assets | 228 | 26 | 193 | 24 |
Total cash and cash equivalents and restricted cash as shown in the consolidated statement of cash flows | $ 331,252 | $ 110,037 | $ 2,841 | $ 1,963 |
FINANCIAL STATEMENT DETAILS - A
FINANCIAL STATEMENT DETAILS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | $ 476 | $ 273 |
Current period provision for credit losses | 280 | 1,622 |
Write-offs charged against the allowance | (522) | (451) |
Recoveries collected | 282 | 14 |
Balance at June 30 | $ 516 | $ 1,458 |
FINANCIAL STATEMENT DETAILS -_2
FINANCIAL STATEMENT DETAILS - Accumulated Amortization and Depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Right-of-use assets included in other non-current assets | $ 5,561 | $ 4,727 |
Leasehold improvements and equipment | 972 | 712 |
Intangible assets with definite lives | $ 37,317 | $ 33,846 |
FINANCIAL STATEMENT DETAILS - O
FINANCIAL STATEMENT DETAILS - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||
Other income (expense), net | $ 142 | $ (164) | $ 10,229 | $ (223) |
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 |
FINANCIAL STATEMENT DETAILS - R
FINANCIAL STATEMENT DETAILS - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 96,046 | $ 67,334 | $ 185,468 | $ 124,302 | |
Leasehold improvements and equipment, net | 3,232 | 3,232 | $ 3,321 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 48,920 | $ 33,858 | 94,715 | $ 63,469 | |
Leasehold improvements and equipment, net | $ 2,315 | $ 2,315 | 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% | 10.00% | 10.00% | |
All other countries | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 47,126 | $ 33,476 | $ 90,753 | $ 60,833 | |
Leasehold improvements and equipment, net | $ 917 | $ 917 | $ 772 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Jun. 02, 2019EUR (€) | Jan. 15, 2019EUR (€) | Sep. 18, 2013video | Dec. 31, 2009lawsuitvideo | Dec. 31, 2017lawsuit |
EMI/Capitol Records Copyright Infringement Litigation | |||||
Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 2 | ||||
Number of videos | 199 | 199 | |||
Amended number of videos | 1,500 | ||||
EMI/Capitol Records Copyright Infringement Litigation | Partial Summary Judgement | |||||
Contingencies [Line Items] | |||||
Number of videos | 144 | ||||
EMI/Capitol Records Copyright Infringement Litigation | Denied Summary Judgement | |||||
Contingencies [Line Items] | |||||
Number of videos | 35 | ||||
EMI/Capitol Records Copyright Infringement Litigation | Pending Litigation | |||||
Contingencies [Line Items] | |||||
Number of videos | 20 | ||||
RTI Copyright Litigation | |||||
Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 4 | ||||
Damages awarded, value | € | € 4,746,273 | € 8,500,000 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||
Compensation expense | $ 14,695,000 | $ 4,015,000 | $ 19,607,000 | $ 6,031,000 | ||
Repayment of outstanding related party debt | 94,565,000 | 7,853,000 | ||||
IAC | ||||||
Related Party Transaction [Line Items] | ||||||
Compensation expense | 0 | 2,800,000 | 1,000,000 | 3,600,000 | ||
Due to related party | 3,000,000 | 3,000,000 | $ 0 | |||
Current lease liability | 4,100,000 | 4,100,000 | ||||
Non-current lease liability | 4,000,000 | 4,000,000 | ||||
Repayment of outstanding related party debt | $ 99,500,000 | |||||
Payment of accrued interest | $ 4,900,000 | |||||
Accrued interest payable, related parties | $ 4,200,000 | |||||
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 and Other Non-Occupancy | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred with related party | 3,200,000 | 2,200,000 | 5,900,000 | 5,000,000 | ||
IAC | IAC Headquarters Occupancy | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred with related party | $ 1,100,000 | $ 800,000 | $ 1,900,000 | $ 2,000,000 |
RELATED PARTY TRANSACTIONS - Ca
RELATED PARTY TRANSACTIONS - Carrying Value and Fair Value of Financial Instruments (Details) - IAC - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Related Party Transaction [Line Items] | ||
Promissory notes - related party | $ 0 | $ 94,565 |
Carrying Value | Promissory note due on demand—related party | ||
Related Party Transaction [Line Items] | ||
Promissory notes - related party | 0 | 44,565 |
Carrying Value | Promissory note due May 2, 2023—related party | ||
Related Party Transaction [Line Items] | ||
Promissory notes - related party | 0 | 50,000 |
Fair Value | ||
Related Party Transaction [Line Items] | ||
Promissory notes - related party | 0 | 99,110 |
Fair Value | Promissory note due on demand—related party | ||
Related Party Transaction [Line Items] | ||
Promissory notes - related party | 0 | 44,565 |
Fair Value | Promissory note due May 2, 2023—related party | ||
Related Party Transaction [Line Items] | ||
Promissory notes - related party | $ 0 | $ 54,545 |