Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-40420 | ||
Entity Registrant Name | VIMEO, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-4334195 | ||
Entity Address, Address Line One | 330 West 34th Street | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10001 | ||
City Area Code | 212 | ||
Local Phone Number | 524-8791 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | VMEO | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 912 | ||
Documents Incorporated by Reference | Portions of Part III of this Annual Report are incorporated by reference to the Registrant’s proxy statement for its 2023 Annual Meeting of Stockholders. | ||
Entity Central Index Key | 0001837686 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Security Exchange Name | NASDAQ | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 157,236,229 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 9,399,250 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 274,497 | $ 321,900 |
Accounts receivable, net of allowance of $5,183 and $1,324 at December 31, 2022 and December 31, 2021, respectively | 31,434 | 29,451 |
Prepaid expenses and other current assets | 18,395 | 18,811 |
Total current assets | 324,326 | 370,162 |
Leasehold improvements and equipment, net | 1,355 | 2,868 |
Goodwill | 245,406 | 242,586 |
Intangible assets with definite lives, net | 5,468 | 11,008 |
Other non-current assets | 28,876 | 22,737 |
TOTAL ASSETS | 605,431 | 649,361 |
LIABILITIES: | ||
Accounts payable, trade | 8,415 | 17,501 |
Deferred revenue | 167,388 | 173,167 |
Accrued expenses and other current liabilities | 57,151 | 67,385 |
Total current liabilities | 232,954 | 258,053 |
Other long-term liabilities | 18,619 | 20,713 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, value | 0 | 0 |
Additional paid-in-capital | 768,390 | 704,796 |
Accumulated deficit | (415,367) | (335,776) |
Accumulated other comprehensive loss | (831) | (86) |
Total shareholders' equity | 353,858 | 370,595 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 605,431 | 649,361 |
Common Stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 1,572 | 1,567 |
Class B common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | $ 94 | $ 94 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for credit loss | $ 5,183 | $ 1,324 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock issued (shares) | 157,187,000 | 156,708,000 |
Common stock outstanding (shares) | 157,187,000 | 156,708,000 |
Class B common stock | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock issued (shares) | 9,399,000 | 9,399,000 |
Common stock outstanding (shares) | 9,399,000 | 9,399,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 433,028 | $ 391,678 | $ 283,218 |
Cost of revenue (exclusive of depreciation shown separately below) | 103,595 | 102,537 | 89,077 |
Gross profit | 329,433 | 289,141 | 194,141 |
Operating expenses: | |||
Research and development expense | 127,661 | 105,586 | 64,238 |
Sales and marketing expense | 170,401 | 152,691 | 105,630 |
General and administrative expense | 107,011 | 85,111 | 49,846 |
Depreciation | 2,198 | 923 | 460 |
Amortization of intangibles | 5,100 | 5,846 | 14,744 |
Total operating expenses | 412,371 | 350,157 | 234,918 |
Operating loss | (82,938) | (61,016) | (40,777) |
Interest expense | (491) | (438) | 0 |
Interest expense—related party | 0 | (726) | (9,116) |
Other income, net | 5,764 | 10,241 | 93 |
Loss before income taxes | (77,665) | (51,939) | (49,800) |
Income tax provision | (1,926) | (828) | (828) |
Net loss | $ (79,591) | $ (52,767) | $ (50,628) |
Per share information: | |||
Basic loss per share (USD per share) | $ (0.49) | $ (0.33) | $ (0.32) |
Diluted loss per share (USD per share) | (0.49) | (0.33) | (0.32) |
Dividends declared per share (USD per share) | $ 0 | $ 0 | $ 0.22 |
Stock-based compensation expense by function: | |||
Compensation expense | $ 64,340 | $ 44,893 | $ 11,665 |
Cost of revenue | |||
Stock-based compensation expense by function: | |||
Compensation expense | 1,000 | 493 | 73 |
Research and development expense | |||
Stock-based compensation expense by function: | |||
Compensation expense | 20,447 | 16,114 | 2,931 |
Sales and marketing expense | |||
Stock-based compensation expense by function: | |||
Compensation expense | 9,986 | 4,693 | 603 |
General and administrative expense | |||
Stock-based compensation expense by function: | |||
Compensation expense | $ 32,907 | $ 23,593 | $ 8,058 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (79,591) | $ (52,767) | $ (50,628) |
Other comprehensive (loss) income: | |||
Change in foreign currency translation adjustments | (745) | 1 | 145 |
Total other comprehensive (loss) income | (745) | 1 | 145 |
Comprehensive loss | $ (80,336) | $ (52,766) | $ (50,483) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Common Stock | Common Stock Class B common stock | Common Stock Class A Voting common stock of Vimeo OpCo | Common Stock Class B Non-Voting common stock of Vimeo OpCo | 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 | (50,628) | (50,628) | ||||||
Other comprehensive (loss) income | 145 | 145 | ||||||
Stock-based compensation expense | 11,665 | 11,665 | ||||||
Amounts related to settlement of equity awards | (20,959) | $ 3 | (20,962) | |||||
Amounts related to settlement of equity awards (in shares) | 264 | |||||||
Issuance of common stock, net of fees | 149,600 | $ 87 | 149,513 | |||||
Issuance of common stock, net of fees (in shares) | 8,656 | |||||||
Dividends | (31,082) | (31,082) | ||||||
Other | 2,706 | 2,706 | ||||||
Balance at end of period at Dec. 31, 2020 | 85,080 | $ 0 | $ 0 | $ 837 | $ 663 | 366,676 | (283,009) | (87) |
Balance at end of period (in shares) at Dec. 31, 2020 | 0 | 0 | 83,656 | 66,285 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (52,767) | (52,767) | ||||||
Other comprehensive (loss) income | 1 | 1 | ||||||
Stock-based compensation expense | 44,893 | 44,893 | ||||||
Amounts related to settlement of equity awards | (6,877) | $ 18 | $ 1 | (6,896) | ||||
Amounts related to settlement of equity awards (in shares) | 1,856 | 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 Dec. 31, 2021 | 370,595 | $ 1,567 | $ 94 | $ 0 | $ 0 | 704,796 | (335,776) | (86) |
Balance at end of period (in shares) at Dec. 31, 2021 | 156,708 | 9,399 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (79,591) | (79,591) | ||||||
Other comprehensive (loss) income | (745) | (745) | ||||||
Stock-based compensation expense | 64,340 | 64,340 | ||||||
Amounts related to settlement of equity awards | (741) | $ 5 | (746) | |||||
Amounts related to settlement of equity awards (in shares) | 479 | |||||||
Balance at end of period at Dec. 31, 2022 | $ 353,858 | $ 1,572 | $ 94 | $ 0 | $ 0 | $ 768,390 | $ (415,367) | $ (831) |
Balance at end of period (in shares) at Dec. 31, 2022 | 157,187 | 9,399 | 0 | 0 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Class B common stock | |||
Common stock, par value (USD per share) | 0.01 | 0.01 | |
Class A Voting common stock of Vimeo OpCo | |||
Common stock, par value (USD per share) | 0.01 | 0.01 | $ 0.01 |
Class B Non-Voting common stock of Vimeo OpCo | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (79,591,000) | $ (52,767,000) | $ (50,628,000) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Stock-based compensation expense | 64,340,000 | 44,893,000 | 11,665,000 |
Amortization of intangibles | 5,100,000 | 5,846,000 | 14,744,000 |
Depreciation | 2,198,000 | 923,000 | 460,000 |
Provision for credit losses | 7,606,000 | 1,428,000 | 1,834,000 |
Gain on the sale of an asset | 0 | (10,151,000) | (288,000) |
Non-cash lease expense | 4,955,000 | 3,686,000 | 860,000 |
Other adjustments, net | (433,000) | 542,000 | 3,681,000 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||
Accounts receivable | (13,027,000) | (19,204,000) | (7,413,000) |
Prepaid expenses and other assets | (3,090,000) | (10,086,000) | (4,567,000) |
Accounts payable and other liabilities | (22,744,000) | 14,146,000 | (12,778,000) |
Deferred revenue | (2,385,000) | 36,698,000 | 56,291,000 |
Net cash (used in) provided by operating activities | (37,071,000) | 15,954,000 | 13,861,000 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | 21,000 | (14,241,000) | 500,000 |
Capital expenditures | (802,000) | (445,000) | (844,000) |
Proceeds from the sale of an asset | 1,611,000 | 7,862,000 | 288,000 |
Other, net | 0 | 0 | 98,000 |
Net cash provided by (used in) investing activities | 830,000 | (6,824,000) | 42,000 |
Cash flows from financing activities: | |||
Proceeds from sale of common stock, net of fees | 0 | 299,750,000 | 149,600,000 |
Principal payments on related-party debt | 0 | (94,565,000) | (35,457,000) |
Proceeds from issuance of related-party debt | 0 | 0 | 32,563,000 |
Deferred financing costs | 0 | (1,440,000) | 0 |
Dividends | 0 | 0 | (31,079,000) |
Withholding taxes paid related to equity awards | (5,448,000) | (4,051,000) | (10,125,000) |
Proceeds from exercise of stock options | 18,000 | 3,364,000 | 0 |
Reimbursement to IAC/InterActiveCorp for IAC common shares issued to settle Vimeo OpCo stock appreciation rights | 0 | 0 | (11,634,000) |
Contingent consideration payment | (4,816,000) | 0 | 0 |
Other, net | (342,000) | 0 | 0 |
Net cash (used in) provided by financing activities | (10,588,000) | 203,058,000 | 93,868,000 |
Total cash (used) provided | (46,829,000) | 212,188,000 | 107,771,000 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (682,000) | 120,000 | 303,000 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (47,511,000) | 212,308,000 | 108,074,000 |
Cash and cash equivalents and restricted cash at beginning of period | 322,345,000 | 110,037,000 | 1,963,000 |
Cash and cash equivalents and restricted cash at end of period | $ 274,834,000 | $ 322,345,000 | $ 110,037,000 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Description of Business 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," "Company," "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 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 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"). The accompanying consolidated financial statements include all the assets, liabilities, revenues, expenses and cash flows of entities in which Vimeo has a controlling interest ("subsidiaries"), and in the opinion of management, include all adjustments considered necessary for a fair presentation. All intercompany balances and transactions between and among Vimeo and its subsidiaries have been eliminated. All related party balances between Vimeo and IAC and its subsidiaries are reflected in the accompanying consolidated balance sheet within "Accrued expenses and other current liabilities" and "Other long-term liabilities". 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 operating activities. Amounts related to the settlement of Vimeo 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. 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 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. Prior to the Spin-off, IAC allocated certain corporate expenses to Vimeo which were charged to "Additional paid-in-capital" in the accompanying consolidated balance sheet. 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 accompanying consolidated financial statements and footnotes thereto. Actual results could differ from these estimates. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Vimeo's revenue is derived primarily from SaaS subscription fees paid by customers. 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 generally range from one month to three years with the most common being an annual subscription and are generally non-cancellable. Vimeo's disaggregated revenue disclosures are presented in " Note 3 — Revenue ." Vimeo accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to Vimeo's customers and in an amount that reflects the consideration Vimeo expects to be entitled to in exchange for those services or goods. Practical Expedients and Exemptions 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. Transaction Price The objective of determining the transaction price is to estimate the amount of consideration Vimeo is due in exchange for its services or goods. Vimeo determines the total transaction price at contract inception and reassesses this estimate each reporting period. Vimeo excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, these taxes are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, Vimeo does not consider the time value of money applicable to such contracts. Arrangements with Multiple Performance Obligations Vimeo’s contracts with customers may include multiple performance obligations. For such arrangements, Vimeo allocates revenue to each performance obligation based on its relative standalone selling price. Vimeo generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. 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 term of the applicable subscription period or expected completion of its performance obligation is one year or less. Assets Recognized from the Costs to Obtain a Contract with a Customer Vimeo has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. Vimeo calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, Vimeo has elected the practical expedient to expense the costs as incurred. Vimeo capitalizes and amortizes mobile app store fees over the term of the applicable subscription. Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments, with maturities of 3 months or less from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds. Internationally, cash equivalents consist of time deposits. Cash and cash equivalents are principally maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits. Allowance for Credit Losses Vimeo maintains an allowance for credit losses to provide for the estimated amount of accounts receivable that will not be collected. The allowance for credit losses is based upon a number of factors, including the length of time accounts receivable are past due, Vimeo’s previous loss history and the specific customer’s ability to pay its obligation. The time between Vimeo's issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. The changes in the allowance for credit losses are as follows: Years Ended December 31, 2022 2021 (In thousands) Balance at beginning of period $ 1,324 $ 476 Provision for credit losses 7,606 1,428 Write-offs charged against the allowance (4,997) (1,268) Recoveries collected 1,245 699 Currency translation adjustment 5 (11) Balance at end of period $ 5,183 $ 1,324 The increase in the allowance for credit losses for the year ended December 31, 2022 was due primarily to growth in the business, as well as an increase in aged accounts receivable balances in the first half of 2022. Leasehold Improvements and Equipment Leasehold improvements and equipment are recorded at cost. Depreciation of leasehold improvements and equipment is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter. Repairs and maintenance costs are expensed as incurred. Leasehold improvements and equipment, net is as follows: December 31, Estimated Useful Lives 2022 2021 (In thousands) Leasehold improvements $ 1,332 $ 3,498 Shorter of lease term or 10 Years Computer and other equipment 807 961 2 to 10 Years Total leasehold improvements and equipment 2,139 4,459 Accumulated depreciation and amortization (784) (1,591) Leasehold improvements and equipment, net $ 1,355 $ 2,868 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at December 31, 2022 and December 31, 2021 relate to "Leasehold improvements and equipment, net." December 31, 2022 2021 (In thousands) Leasehold improvements and equipment, net: United States $ 537 $ 1,901 All other countries 818 967 Total $ 1,355 $ 2,868 Leases Vimeo leases office space used in connection with its operations under various operating leases, the majority of which contain escalation clauses. ROU assets represent Vimeo’s right to use the underlying assets for the lease term and lease liabilities represent the present value of Vimeo’s obligation to make payments arising from these leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term usin g the Company's i ncremental borrowing rates on the lease commencement date. Vimeo combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain Vimeo will exercise the option(s). Lease expense is recognized on a straight-line basis over the term of the lease. Vimeo has elected not to record leases with an initial term of twelve months or less on the accompanying consolidated balance sheet. Variable lease payments consist primarily of common area maintenance, utilities and taxes, which are not included in the recognition of ROU assets and related lease liabilities. Vimeo’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Business Combinations The allocation of purchase price to the assets acquired and liabilities assumed is based upon their fair values on the acquisition date, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. Vimeo generally uses the assistance of outside valuation experts to assist in the allocation of purchase price to the identifiable intangible assets acquired. While outside valuation experts may be used, management has ultimate responsibility for the valuation methods, models and inputs used and the resulting purchase price allocation. The excess purchase price over the value of net tangible and identifiable intangible assets acquired is recorded as goodwill. Goodwill Vimeo assesses goodwill for impairment annually as of October 1 or more frequently if an event occurs or circumstances change that would more likely than not reduce its fair value below its carrying value. Goodwill is tested for impairment at the reporting unit level which is either an “operating segment,” or one level below, which is referred to as a “component.” The level at which the impairment test is performed requires judgment as to whether there are multiple operating segments and/or components, and if so, whether their operations are similar such that they should be aggregated for purposes of the impairment test. For purposes of performing the 2022 impairment test, management has determined that there is one operating segment and no components below that level, which results in a single reporting unit at the overall Vimeo level for purposes of testing goodwill for impairment. When Vimeo elects to perform a qualitative assessment and concludes it is not more likely than not that its fair value is less than its carrying value, no further assessment of goodwill is necessary; otherwise, a quantitative assessment is performed and the fair value of Vimeo is determined. If the carrying value of Vimeo exceeds its fair value, an impairment equal to the excess is recorded. No impairments to goodwill were recorded for the years ended December 31, 2022, 2021, and 2020. Long-Lived Assets Long-lived assets (which consist of ROU assets, leasehold improvements and equipment, and intangible assets with definite lives) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is based on the pattern in which the economic benefits of the asset are expected to be realized, which is generally on a straight-line basis. 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. See " Note 7 — Fair Value Measurements " for a discussion of fair value measurements made using Level 3 inputs. Advertising Costs Advertising costs are expensed when incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines, social media sites, e-mail campaigns, display advertising, video advertising and affiliate marketing, and offline marketing, which is primarily conferences and events. Advertising expense was $76.3 million, $87.1 million, and $65.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. Income Taxes Vimeo is included within IAC’s tax g roup for purposes of federal and consolidated state income tax return filings through the Spin-off. For the years ended December 31, 2021 and 2020, the current and deferred income tax provision were computed on an as if standalone, separate tax return basis. For the year ended December 31, 2022, the income tax provision was computed for Vimeo on a true standalone basis. Vimeo accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. Vimeo regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning, and historical experience. Vimeo records interest and penalties, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax provision. Vimeo evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when Vimeo concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when Vimeo subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. Vimeo has made an accounting policy election to treat Global Intangible Low-Taxed Income taxes as a current period expense rather than including these amounts in the measurement of deferred taxes. Loss per Share Basic loss or earnings per share is computed by dividing net loss or earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur from stock-based awards. Given that Vimeo has reported a loss for each of the years ended December 31, 2022, 2021, and 2020, the effect of any potentially dilutive securities, such as the Company's stock-based awards, would be anti-dilutive, and therefore are excluded from the computation of diluted loss per share. See " Note 1 2 —Loss per Share " for additional information on dilutive securities. Foreign Currency The functional currency of foreign entities is generally the local currency. Functional currency denominated (i) assets and liabilities are translated at the rates of exchange as of the balance sheet date, and (ii) revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of "Other income, net". Stock-Based Compensation Vimeo measures and recognizes compensation expense, net of estimated forfeitures for all stock‑based awards based on the grant date fair value of the award. Stock-based compensation expense is recognized ratably over the requisite service period. Estimated forfeitures are based on an analysis of historical forfeitures and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. The grant-date fair value of a RSU is determined based on the closing sale price of the Company’s common stock on the date of grant. The fair value of a SAR is estimated using the Black‑Scholes option‑pricing model, which requires the use of subjective assumptions to determine the inputs to the model, which include estimating the expected term from grant date to exercise, the expected volatility of the underlying shares, the risk‑free interest rate and the expected dividend yield. See " Note 1 1 —Stock-Based Compensation " for additional information. Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted by the Company ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Vimeo adopted ASU No. 2021-08 effective October 28, 2021. ASU No. 2021-08 amends ASC 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The adoption of ASU No. 2021-08 did not have a material impact on Vimeo's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted by the Company 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. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregated revenue is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Revenue: Self-Serve & Add-Ons $ 304,726 $ 275,259 $ 189,449 Vimeo Enterprise 39,271 23,236 6,236 Other 89,031 93,183 87,533 Total $ 433,028 $ 391,678 $ 283,218 Revenue by geography is based on where the customer is located. The United States was the only country whose revenue constituted greater than 10% of total revenue of the Company for the years ended December 31, 2022, 2021, and 2020. Years Ended December 31, 2022 2021 2020 (In thousands) Revenue: United States $ 220,742 $ 197,576 $ 139,826 All other countries 212,286 194,102 143,392 Total $ 433,028 $ 391,678 $ 283,218 Deferred Revenue The current and non-current deferred revenue balances are included in the accompanying consolidated balance sheet as follows: December 31, December 31, (In thousands) Deferred revenue $ 167,388 $ 173,167 Other long-term liabilities 1,286 1,291 During the year ended December 31, 2022, Vimeo recognized $172.0 million of revenue that was included in the deferred revenue balance as of December 31, 2021. During the year ended December 31, 2021, the Company recognized $137.0 million of revenue that was included in the deferred revenue balance as of December 31, 2020. Assets Recognized from the Costs to Obtain a Contract with a Customer During the years ended December 31, 2022, 2021, and 2020, Vimeo recognized expense of $6.2 million , $7.1 million, and $7.7 million, respectively, related to the amortization of capitalized costs to obtain a contract with a customer. The current and non-current balances of capitalized costs to obtain a contract with a customer are included in the accompanying consolidated balance sheet as follows: December 31, December 31, (In thousands) Prepaid expenses and other current assets $ 4,168 $ 3,498 Other non-current assets 7,988 6,196 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Vimeo was included w ithin IAC’s ta x group for purposes of federal and consolidated state income tax return filings through the Spin-off. For the years ended December 31, 2021 and 2020, the current and deferred income tax provision were computed on an as if standalone, separate tax return basis. For the year ended December 31, 2022, the income tax provision was computed for Vimeo on a true standalone basis. U.S. and foreign (losses) earnings before income taxes are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) U.S. $ (90,500) $ (54,085) $ (52,007) Foreign 12,835 2,146 2,207 Loss before income taxes $ (77,665) $ (51,939) $ (49,800) The income tax provisions for the years ended December 31, 2022, 2021, and 2020 primarily relate to international and state taxes for jurisdictions in which Vimeo conducts business and are as follows: December 31, 2022 2021 2020 (In thousands) Current income tax provision: Federal $ 81 $ 52 $ — State 88 85 64 Foreign 1,351 761 561 Current income tax provision 1,520 898 625 Deferred income tax provision (benefit): Federal 37 (20) 270 State (4) (5) — Foreign 373 (45) (67) Deferred income tax provision (benefit) 406 (70) 203 Income tax provision $ 1,926 $ 828 $ 828 The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 31,069 $ 33,897 Tax credit carryforwards 12,138 9,066 Intangible assets with definite lives — 2,247 Stock-based compensation 10,209 5,467 Capitalized research and development expenses 14,242 — Other 9,958 8,536 Total deferred tax assets 77,616 59,213 Less: valuation allowance (67,544) (52,023) Net deferred tax assets 10,072 7,190 Deferred tax liabilities: Prepaid expenses (4,834) (3,835) Intangible assets with definite lives (925) — Right-of-use assets (3,755) (2,561) Withholding taxes (905) (506) Other (106) (299) Total deferred tax liabilities (10,525) (7,201) Net deferred tax liability $ (453) $ (11) In connection with the Spin-off, Vi meo was allocated a portion of tax attributes related to the IAC consolidated federal and state tax filings pursuant to the Internal Revenue Code ("IRC") and applicable state law following the filing of the December 31, 2021 tax return. Vimeo's net deferred tax position was increased by $4.8 million to reflect the final allocation by IAC with a corresponding increase to valuation allowance. The composition of Vimeo's NOLs as of December 31, 2022 is as follows: Federal State Foreign Total (In thousands) Subject to expiration (a) $ 147 $ 57,861 $ — $ 58,008 Indefinite carryforward (b) 79,641 4,793 45,340 129,774 Total NOLs (c) $ 79,788 $ 62,654 $ 45,340 $ 187,782 ____________________ (a) Federal NOL will expire in 2035 and state NOLs will expire at various times between 2025 through 2042. (b) All indefinite carryforward federal NOLs are subject to the Tax Cuts and Jobs Act 80% taxable income limitation. (c) State NOLs of $9.7 million are subject to limitations under IRC Section 382, separate return limitations, and applicable law. At December 31, 2022, Vimeo has tax credit carryforwards of $14.6 million. Of this amount, $12.6 million relates to credits for research activities and $2.0 million relates to credits for foreign taxes. These credit carryforwards will expire between 2026 and 2042. During 2022, Vimeo's valuation allowance increased by $15.5 million, primarily due to an increase in deferred tax assets related to capitalized research and development expenses and stock-based compensation. At December 31, 2022, Vimeo has a valuation allowance of $67.5 million related to the portion of tax loss carryforwards and other items for which it is more likely than not that the tax benefit will not be realized. A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to loss before income taxes is shown as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Income tax benefit at the federal statutory rate of 21% $ (16,310) $ (10,907) $ (10,458) State income taxes, net of effect of federal tax benefit (1,559) (2,086) (963) Global intangible low-taxed income 1,307 — — Return to provision (765) (2,249) 1 Change in valuation allowance 12,736 20,858 15,946 Stock-based compensation 8,838 (4,041) (3,474) Research credit (2,631) (2,163) (1,439) Transaction costs 18 698 640 Other, net 292 718 575 Income tax provision $ 1,926 $ 828 $ 828 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of period $ 2,519 $ 1,921 $ 1,475 Additions based on tax positions related to prior years 74 — 538 Settlements (821) (329) (645) Additions based on tax positions related to the current year 751 927 553 Balance at end of period $ 2,523 $ 2,519 $ 1,921 At December 31, 2022, 2021, and 2020, unrecognized tax benefits were $2.5 million, $2.5 million, and $1.9 million, respectively. A portion of unrecognized tax benefits as of December 31, 2022 relates to tax positions included in IAC's consolidated tax return filings. If unrecognized tax benefits at December 31, 2022, 2021, and 2020 were subsequently recognized, there would be no impact to income tax expense due to the valuation allowance on deferred tax assets. Vimeo does not expect any settlements or changes to the existing unrecognized tax benefits by December 31, 2023. Vimeo is routinely under audit 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, amount, and allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service ("IRS") has completed its audit of IAC's federal income tax returns for the years ended December 31, 2013 through 2019, which includes the operations of the Company. The settlement of these tax years has been submitted to the Joint Committee of Taxation for approval. The statute of limitations for the years 2013 through 2019 have been extended to December 31, 2023. Various other jurisdictions are open to examination for tax years beginning with 2014. Income taxes payable, which is included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet, 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. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On November 10, 2021 and December 6, 2021, Vimeo completed the acquisitions of 100% of the equity interests of Wibbitz Ltd. ("Wibbitz"), a leading enterprise video creation suite, and WIREWAX Ltd. ("WIREWAX"), a leader in interactive and shoppable video, respectively. The aggregate purchase price of both acquisitions consisted of cash consideration and contingent consideration, based on a combination of certain financial metrics and integration milestones. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES | GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES Goodwill and intangible assets with definite lives, net are as follows: December 31, 2022 2021 (In thousands) Goodwill $ 245,406 $ 242,586 Intangible assets with definite lives, net of accumulated amortization 5,468 11,008 Total goodwill and intangible assets with definite lives, net $ 250,874 $ 253,594 The changes in the carrying value of goodwill for the years ended December 31, 2022 and 2021 are as follows: Years Ended December 31, 2022 2021 (In thousands) Balance at beginning of period $ 242,586 $ 219,337 Additions (a) 2,820 23,249 Balance at end of period $ 245,406 $ 242,586 ____________________ (a) Additions reflect measurement period adjustments related to Wibbitz and WIREWAX. At December 31, 2022 and 2021, intangible assets with definite lives are as follows: December 31, 2022 Gross Accumulated Net Weighted-Average (In thousands) Developed technology $ 29,730 $ (25,630) $ 4,100 3.7 Customer relationships 17,530 (16,162) 1,368 3.9 Trade names 3,000 (3,000) — 1.7 Total $ 50,260 $ (44,792) $ 5,468 3.6 December 31, 2021 Gross Accumulated Net Weighted-Average (In thousands) Developed technology $ 26,500 $ (22,026) $ 4,474 3.5 Customer relationships 21,200 (14,666) 6,534 3.8 Trade names 3,000 (3,000) — 1.7 Total $ 50,700 $ (39,692) $ 11,008 3.5 At December 31, 2022, amortization of intangible assets with definite lives is estimated to be as follows: Years Ending December 31, (In thousands) 2023 $ 2,839 2024 1,390 2025 1,239 Total (a) $ 5,468 ____________________ (a) All intangible assets will be fully amortized by December 31, 2025, therefore there is no estimated amortization for the years 2026 and 2027. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Vimeo's financial instruments that are measured at fair value on a recurring basis are as follows: December 31, 2022 Quoted Market Significant Significant Total (In thousands) Assets: Money market funds $ 249,422 $ — $ — $ 249,422 Time deposits — 847 — 847 Total $ 249,422 $ 847 $ — $ 250,269 Liabilities: Contingent consideration arrangements $ — $ — $ 7,845 $ 7,845 December 31, 2021 Quoted Market Significant Significant Total (In thousands) Assets: Money market funds $ 305,836 $ — $ — $ 305,836 Liabilities: Contingent consideration arrangements $ — $ — $ 12,200 $ 12,200 Money market funds and time deposits are included in "Cash and cash equivalents" in the accompanying consolidated balance sheet. Contingent consideration is included in “Accrued expenses and other current liabilities” and "Other long-term liabilities" in the accompanying consolidated balance sheet at December 31, 2022 and December 31, 2021, respectively. 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. The changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 (In thousands) Balance at beginning of period $ 12,200 $ — Fair value at date of acquisition — 12,200 Total net losses (gains): Included in operating loss (1,116) — Measurement period adjustments 1,577 — Settlements (4,816) — Balance at end of period $ 7,845 $ 12,200 Contingent Consideration Arrangements At December 31, 2022, the Company had two outstanding contingent consideration arrangements related to the acquisitions of Wibbitz and WIREWAX. The maximum contingent payments related to these arrangements at the time of the acquisitions were $15.0 million for Wibbitz and $10.0 million for WIREWAX. The acquisition date fair values of the Wibbitz and WIREWAX contingent consideration arrangements were $5.6 million and $8.2 million, respectively, and were finalized when the Company recorded measurement period adjustments to increase the provisional amounts recorded by $1.6 million in the first quarter of 2022. These changes were recorded as an increase to "Goodwill" in the accompanying consolidated balance sheet. The allocation of the purchase price for these acquisitions was finalized in the second quarter of 2022. The acquisition date fair value of each of the contingent consideration arrangements was determined by using probability weighted analyses to estimate the contingent payments, adjusted to fair value by applying a discount rate. The Company remeasures the fair value of each contingent consideration arrangement each reporting period using the same methodology and any adjustments are recognized in "General and administrative expense" in the consolidated statement of operations. The contingent consideration arrangement for Wibbitz is primarily dependent upon the amount of annual recurring revenue ("ARR") from Wibbitz subscribers as of December 31, 2022 who have agreed to migrate to the Vimeo platform by June 30, 2023. During the year ended December 31, 2022, the fair value of the contingent consideration liability was reduced by $2.6 million to $3.0 million due primarily to a decrease in the ARR of Wibbitz subscribers at December 31, 2022, relative to the amounts forecasted as of the acquisition date. The contingent consideration arrangement for WIREWAX is based upon achievement of an integration milestone and attainment of certain ARR thresholds within two years of the acquisition. The integration milestone was met, resulting in a payment of $4.8 million in July 2022, which is consistent with the acquisition date fair value. Additionally, during the year ended December 31, 2022, the fair value of the contingent consideration liability based on the attainment of certain ARR thresholds was increased by $1.5 million to $4.9 million due primarily to an increase in the likelihood of attaining certain ARR thresholds earlier than previously estimated. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022, 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, 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 December 31, 2022, there were no outstanding borrowings under the Credit Facility. In December 2021, Vimeo agreed to cease any borrowings under certain non-USD currencies due to the applicable LIBOR benchmark rates no longer being available publicly from and after December 31, 2021 and until an amendment is made to the Credit Facility to replace LIBOR with an alternative benchmark. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
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 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 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. On November 10, 2020, Vimeo OpCo raised $150 million of equity capital via the sale of approximately 8.7 million shares of its Class A Voting common stock at a price of $17.33 per share, based on an enterprise value of approximately $2.75 billion. Stock Repurchase Program On February 25, 2022, the Board of Directors authorized a stock repurchase program of up to $50 million of the Company’s common stock through open market or private transactions. Under the stock repurchase authorization, Vimeo may repurchase shares of its common stock at any time or from time to time, without prior notice, subject to market conditions and other considerations, as determined by management. Vimeo's repurchases may be made through 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or other transactions. No date has been established for the completion of the stock repurchase program. Vimeo intends to fund repurchases under the repurchase program from cash on hand. Vimeo has no obligation to repurchase any shares under the repurchase program and may suspend or discontinue it at any time. There were no shares repurchased during the year ended December 31, 2022. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisting of foreign currency translation adjustments is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of period $ (86) $ (87) $ (232) Other comprehensive (loss) income (745) 1 145 Balance at end of period $ (831) $ (86) $ (87) At December 31, 2022, 2021, and 2020, there was no tax benefit or provision on accumulated other comprehensive loss. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Description of equity plan Vimeo currently has one active plan, the 2021 Stock and Annual Incentive Plan (the "2021 Plan"), including an Israeli Appendix, 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 an 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 deliver equity awards to its employees, officers, directors and consultants covering an aggregate of up to 10.0 million shares of the Company's common stock (in addition to previously-awarded shares). At December 31, 2022, there are 9.7 million shares available for delivery under the 2021 Plan. 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. SARs issued to date generally vest in equal annual installments over a three Stock-based compensation expense Vimeo recorded stock-based compensation expense of $64.3 million, $44.9 million, and $11.7 million for the years ended December 31, 2022, 2021, and 2020 respectively. No income tax benefit was recognized in the accompanying consolidated statement of operations for the years ended December 31, 2022, 2021, and 2020 related to equity awards because Vimeo has recorded a full valuation allowance against the related deferred tax asset. At December 31, 2022, there was $98.0 million of unrecognized compensation cost, net of estimated forfeitures, related to equity awards of SARs and RSUs, which is expected to be recognized over a weighted-average period of 1.9 years. Additionally, there was $72.4 million of unrecognized compensation cost related to the Vimeo Restricted Shares, which is expected to be recognized over the remaining vesting period of 7.9 years. For more information on the impact of the Spin-off and the Vimeo Merger on equity awards refer to " Note 1—Organization and Basis of Presentation ." Stock appreciation rights and stock options The weighted average grant date fair value for SARs granted during the year ended December 31, 2020 was $2.16. The weighted average assumptions used to value SARs at their grant date for the year ended December 31, 2020 included expected volatility of 38.0%, risk-free interest rate of 1.0%, expected term of 3.3 years, and dividend yield of 0%. The total intrinsic value of SARs and stock options exercised during the years ended December 31, 2022, 2021, and 2020 was $1.4 million, $49.4 million, and $23.9 million, respectively. Total cash received from the exercise of stock options for the years ended December 31, 2022 and 2021 was less than $0.1 million and $3.4 million, respectively. There were no stock options exercised in the year ended December 31, 2020. No cash is received from the exercise of SARs, as by their nature they are settled net of the exercise price with the award holder entitled to receive value equal to any appreciation in the award. SAR and stock option activity for the year ended December 31, 2022 is 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 at December 31, 2021 17,487 $ 5.91 Exercised (325) 5.82 Forfeited or Expired (1,935) 6.69 Outstanding at December 31, 2022 (a) 15,227 5.82 4.9 $ 726 Exercisable at December 31, 2022 (a) 14,184 $ 5.59 4.8 $ 726 _____________________ (a) Includes 4.8 million outstanding and exercisable stock options at December 31, 2022 which relate solely to the conversion of vested IAC stock options into Vimeo stock options in connection with the Spin-off as more fully described in " Note 1—Organization and Basis of Presentation . As of December 31, 2022, the number, weighted-average exercise price, weighted-average remaining contractual term, and aggregate intrinsic value of Vimeo SARs and stock options that either had vested or are expected to vest approximate the corresponding amounts for Vimeo SARs and stock options outstanding. Restricted stock units The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2022, 2021, and 2020 was $8.17, $30.89, and $17.33, respectively. The grant date fair value for RSUs subject to market-based conditions granted during the year ended December 31, 2022 was $7.25 and was determined by using a Monte Carlo simulation of Vimeo's stock price over the performance period. The assumptions used to value RSUs subject to market-based conditions at their grant date for the year ended December 31, 2022 included expected volatility of 47.0%, risk-free interest rate of 2.5%, and dividend yield of 0%. The intrinsic value of RSUs that vested during the years ended December 31, 2022 and 2021 was $3.1 million and less than $0.1 million, respectively. There were no RSUs that vested during the year ended December 31, 2020. RSU activity for the year ended December 31, 2022 is as follows: Number of Shares Weighted Average Grant Date Fair Value (Shares in thousands) Unvested at December 31, 2021 3,344 $ 30.49 Granted (a) 13,889 8.17 Released (448) 26.85 Forfeited (851) 18.07 Unvested at December 31, 2022 (a) 15,934 $ 11.80 _____________________ (a) Includes 1.0 million RSUs subject to market-based conditions. 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, which provided for a grant of 4,870,500 shares of Vimeo common stock (“Vimeo Restricted Shares”). 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. Vimeo Restricted Shares granted pursuant to the RSA will 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. Modifications In connection with the Spin-off and Vimeo Merger, the Company modified certain equity awards resulting in a modification charge of $14.0 million, which is recognized, net of forfeitures, over the remaining requisite service period of the modified awards. As a result, the Company recognized incremental stock-based compensation expense of $1.2 million and $9.5 million in the years ended December 31, 2022 and 2021, respectively. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
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 has been made as the Vimeo Restricted Shares do not participate in losses of the Company. The computation of basic and diluted loss per share attributable to common shareholders is as follows: Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Numerator: Net loss $ (79,591) $ (52,767) $ (50,628) Denominator: (a) (b) (c) Denominator for earnings per share—weighted average shares 161,478 159,884 159,381 Loss per share attributable to common stock shareholders: Loss per share $ (0.49) $ (0.33) $ (0.32) _____________________ (a) Vimeo Restricted Shares were included in shares of common stock issued and outstanding at December 31, 2022 and 2021 in the accompanying consolidated balance sheet, but were excluded from the computation of weighted average shares outstanding for EPS purposes because the number of shares that ultimately vest is subject to the satisfaction of the conditions described in " Note 1 1 —Stock-Based Compensation ." (b) For the years ended December 31, 2022 and 2021 , approximately 36.0 million and 25.7 million, respectively, 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 years ended December 31, 2020 reflects Vimeo's outstanding shares immediately after the completion of the Spin-off as described in " Note 1—Organization and Basis of Presentation |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES ROU assets and lease liabilities on the accompanying consolidated balance sheet are as follows: December 31, Leases Balance Sheet Classification 2022 2021 (In thousands) Right-of-use assets Other non-current assets $ 18,751 $ 13,534 Current lease liabilities Accrued expenses and other current liabilities $ 2,979 $ 7,299 Long-term lease liabilities Other long-term liabilities 16,335 6,709 Total lease liabilities $ 19,314 $ 14,008 Components of lease expense are as follows: Years Ended December 31, Lease Expense 2022 2021 2020 (In thousands) Fixed (a) $ 5,971 $ 3,884 $ 957 Short-term 2,273 553 273 Variable 226 119 143 Sublease income — — (61) Total lease expense, net $ 8,470 $ 4,556 $ 1,312 Years Ended December 31, Lease Expense Income Statement Classification 2022 2021 2020 (In thousands) Cost of revenue $ 806 $ 304 $ 31 Research and development expense 2,613 1,984 446 Sales and marketing expense 1,622 1,163 187 General and administrative expense 3,429 1,105 648 Total lease expense, net $ 8,470 $ 4,556 $ 1,312 Maturities of lease liabilities as of December 31, 2022 are as follows: Years Ended December 31, (In thousands) 2023 $ 4,379 2024 4,507 2025 4,672 2026 4,378 2027 4,376 Thereafter 1,318 Total (b) 23,630 Less: imputed interest (4,316) Total lease liabilities $ 19,314 _____________________ (b) As of December 31, 2022, the Company had no legally binding minimum lease payments for leases signed but not yet commenced. The weighted average assumptions used for lease term and discount rate are as follows: December 31, 2022 2021 2020 Remaining lease term 5.1 years 2.6 years 2.7 years Discount rate 8.1 % 3.1 % 3.0 % Other information related to leases is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Right-of-use assets obtained in exchange for lease liabilities $ 14,793 $ 15,654 $ 1,322 Cash paid for amounts included in the measurement of lease liabilities $ 5,724 $ 3,543 $ 3,601 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Vimeo has entered into certain off-balance sheet commitments that require the future purchase of services ("purchase obligations"). Future payments under non-cancelable unconditional purchase obligations as of December 31, 2022, principally consist of payments for various cloud computing contracts and are as follows: Amount of Commitment Expiration Per Period Less Than 1-3 3-5 More Than Total (In thousands) Purchase obligations $ 54,700 $ 39,212 $ — $ — $ 93,912 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 4 —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), 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. On August 26, 2021, the district court approved a stipulation whereby plaintiffs agreed to conditionally dismiss all remaining claims to allow a final judgment to issue. Under the stipulation, plaintiffs may refile their claims regarding the alleged employee-uploaded videos if the Second Circuit reverses the district court’s other rulings in whole or in part. On November 1, 2021, the district court entered a final judgment adopting the terms of the parties' stipulation. On November 29, 2021, plaintiffs filed an appeal to the U.S. Court of Appeals for the Second Circuit. The appeal has been fully briefed. 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 Appeals stayed the judgment pending appeal. On August 10, 2022, the Rome Court of Appeals affirmed the judgment. Vimeo is now appealing to the Italian Supreme Court of Cassation. 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. The third case (No. 59780/2017) is currently pending before the Civil Court of Rome. On October 18, 2022, the Civil Court of Rome issued a decision in the fourth case, Medusa Film v. Vimeo, Inc. (No. 74775/2017,) finding liability, but rejecting RTI’s damage calculation and reserving judgment as to the amount of damages. On November 30, 2022, RTI served a notice of appeal challenging the court's decision on damages. 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. On November 3, 2021, Vimeo filed its initial brief. On November 23, 2021, the parties attended the initial hearing with the Court of Milan where the court set forth a briefing schedule. The parties have exchanged briefs, and the next hearing is scheduled for December 18, 2023. 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. See Bradley Acaley v. Vimeo, Inc. , Acaley v. Vimeo.com, Inc. , Case No. 2019 CH10873 (Ill. Cir. Ct.). 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. On May 29, 2022, the parties entered into a settlement agreement that, subject to court approval, will result in certain payments to class members in exchange for releases to Vimeo. On June 6, 2022, the case was, pursuant to the parties’ stipulation, remanded from federal court back to the Circuit Court of Cook County, Illinois. On July 22, 2022, plaintiffs’ counsel filed a motion for preliminary approval of the settlement agreement, and the court issued an order granting preliminary approval of the settlement on January 20, 2023 . Vimeo denies liability in connection with this lawsuit. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Relationship with IAC following the Spin-off Following the Spin-off, the relationship between Vimeo and IAC has been governed by a number of agreements that include: a separation agreement; a tax matters agreement; a transition services agreement; an employee matters agreement; and a data protection agreement. These agreements were entered into as of May 24, 2021 and are filed as exhibits to the Annual Report on Form 10-K of which these financial statements form a part, and the summaries of these documents that follow are qualified in their entirety by reference to the full text of those documents. The total related charges for the years ended December 31, 2022, 2021, and 2020 were $3.6 million, $12.8 million, and $10.3 million, respectively. At December 31, 2022, there was no amount due to IAC. At December 31, 2021, Vimeo had a current payable due to IAC of $6.4 million, which was included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet and was subsequently paid in January 2022. Certain of the services subject to these agreements have continued into 2023. In November 2021 Vimeo entered into a sublease agreement with a subsidiary of Angi Inc., which is also an indirect subsidiary of IAC, whereby Vimeo agreed to sublease the 10th floor at 330 West 34th Street ("West 34th Street Sublease") in New York City. In July 2022, Vimeo extended the terms of the West 34th Street Sublease, and added a sublease of a portion of the fifth floor, both through April 2028. At December 31, 2022 Vimeo had a current lease liability of $2.0 million included in "Accrued expenses and other current liabilities" and a non-current lease liability of $13.0 million included in "Other long-term liabilities" related to the West 34th Street Sublease in the accompanying consolidated balance sheet. Prior to the Spin-off, IAC allocated rent expense to Vimeo for the space that it occupied in IAC's headquarters building at 555 West 18th Street in New York City. Upon the completion of the Spin-off, Vimeo entered into an operating lease agreement with IAC for this space, which Vimeo subsequently exited on June 30, 2022. The total rent expense for these two locations for the years ended December 31, 2022, 2021, and 2020 were $4.6 million, $4.4 million, and $3.8 million, respectively. For the years ended December 31, 2021 and 2020, Vimeo’s consolidated statement of operations also includes $1.0 million and $6.1 million of costs allocated by IAC, 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 and 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. Separation Agreement The separation agreement provided for restructuring transactions including, among other things, the transfer to Vimeo of IAC’s equity interests in Vimeo OpCo and the repayment by Vimeo OpCo of all outstanding intercompany debt owed to IAC and its subsidiaries (other than Vimeo OpCo’s subsidiaries). The separation agreement also provided for the pre-Spin-off adoption of the certificate of incorporation and by-laws of Vimeo that came into effect at the time of the Spin-off. Tax Matters Agreement In connection with the Spin-off, IAC and Vimeo entered into a tax matters agreement that governs the parties’ respective rights, responsibilities and obligations with respect to taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the Distribution to qualify as tax-free for U.S. federal income tax purposes), entitlement to refunds, allocation of tax attributes, preparation of tax returns, control of tax contests and other tax matters. In addition, the tax matters agreement imposes certain restrictions on Vimeo and its subsidiaries (including restrictions on share issuances, business combinations, sales of assets and similar transactions) designed to preserve the tax-free status of the Distribution. The tax matters agreement provides special rules that allocate tax liabilities in the event the Distribution fails to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes under Sections 355(a) and 368(a)(1)(D) of the Code. Under the tax matters agreement, IAC and Vimeo generally are responsible for any taxes and related amounts imposed on either of the parties as a result of a failure to so qualify to the extent that the failure to so qualify is attributable to a breach of the relevant representations or covenants made by that party in the tax matters agreement or an acquisition of such party’s equity securities or assets. Employee Matters Agreement The employee matters agreement covers a range of compensation and benefit matters related to the Spin-off. In general, under the employee matters agreement IAC assumed or retained (i) all liabilities with respect to IAC employees, former IAC employees and their dependents and beneficiaries under all IAC employee benefit plans, and (ii) all liabilities with respect to the employment or termination of employment of all IAC employees, former IAC employees and other service providers. Vimeo assumed or retained (i) all liabilities under its employee benefit plans, and (ii) all liabilities with respect to the employment or termination of employment of all Vimeo employees, former employees and other service providers. As of January 1, 2022, Vimeo no longer participates in IAC employee benefit plans, but has established its own employee benefit plans that are substantially similar to the plans sponsored by IAC prior to the Spin-off. Transition Services Agreement Under the transition services agreement, each of IAC and Vimeo provides to the other party on an interim, transitional basis, various support services, which includes support with governmental affairs, finance and accounting services, corporate sourcing, legal affairs, systems support, and any such other support services as to which IAC and Vimeo mutually agree. The charges for these services is generally on an actual cost basis (without markup), except as otherwise agreed upon prior to the completion of the Spin-off. Each of IAC and Vimeo, as recipient of services, has the right to terminate the transition services agreement with respect to one or more particular services upon 90 days’ prior written notice. In September 2021, Vimeo and IAC entered into an allocation agreement whereby Vimeo maintains coverage under IAC's membership with a patent risk management service, RPX Corporation ("RPX"), and whereby Vimeo shares the costs of IAC's membership with RPX for the period through September 18, 2023. Debt—Related Party 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 9 —Shareholders' Equity ." Each promissory note bore interest at 10% per annum. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Beginning January 1, 2022, Vimeo employees in the United States may elect to participate in the Vimeo Retirement Savings Plan (the “Vimeo Plan”), which is a retirement savings program in the United States that qualifies under Section 401(k) of the Internal Revenue Code. The employer match under the Vimeo Plan is 100% of the first 10% of a participant’s eligible earnings, subject to IRS limits on the Company’s matching contribution that a participant contributes to the Vimeo Plan. Under the Vimeo Plan, the Company’s common stock is not an available investment option. Vimeo incurred costs related to matching contributions to the Vimeo Plan of $6.7 million for the year ended December 31, 2022. Prior to January 1, 2022, Vimeo employees in the United States may have elected to participate in the IAC/InterActiveCorp Retirement Savings Plan ("the IAC Plan"), which is a retirement savings program in the United States that qualifies under Section 401(k) of the Internal Revenue Code. The employer match under the IAC Plan was the same as the Vimeo Plan. Vimeo incurred costs related to matching contributions to the IAC Plan of $5.1 million and $3.5 million for the years ended December 31, 2021, and 2020, respectively. On January 1, 2022, all investments in the IAC Plan were transferred to the Vimeo Plan. |
FINANCIAL STATEMENT DETAILS
FINANCIAL STATEMENT DETAILS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL STATEMENT DETAILS | FINANCIAL STATEMENT DETAILS Cash and Cash Equivalents and Restricted Cash The reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying consolidated statement of cash flows is as follows: December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 274,497 $ 321,900 $ 110,011 $ 1,939 Restricted cash included in other current assets 337 445 26 24 Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 274,834 $ 322,345 $ 110,037 $ 1,963 Restricted cash at December 31, 2022 and 2021 primarily consisted of deposits related to a lease and corporate credit cards. Restricted cash at December 31, 2020 and 2019 primarily consisted of a deposit related to corporate credit cards. Prepaid Expenses and Other Current Assets December 31, 2022 2021 (In thousands) Prepaid expenses $ 12,503 $ 11,377 Other current assets 5,892 7,434 Prepaid expenses and other current assets $ 18,395 $ 18,811 Accrued Expenses and Other Current Liabilities December 31, 2022 2021 (In thousands) Accrued employee compensation and benefits $ 21,924 $ 23,082 Due to IAC — 6,426 Other accrued expenses and current liabilities (a) 35,227 37,877 Accrued expenses and other current liabilities $ 57,151 $ 67,385 ____________________ (a) As of December 31, 2022 and 2021, includes $2.0 million and $6.1 million, respectively, related to the operating lease agreements as described in " Note 1 5 —Related Party Transactions ." Other Income, net The components of "Other income, net" are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Foreign exchange gains (losses), net $ 1,893 $ (2) $ (710) Interest income 3,866 83 12 Gain on sale of an asset — 10,151 288 Other, net 5 9 503 Other income, net $ 5,764 $ 10,241 $ 93 Gain on sale of an asset in 2021 related to a net gain of $10.2 million related to the sale of Vimeo’s retained interest in its former hardware business. Other, net for the year ended December 31, 2020, includes a gain of $0.5 million related to funds released from escrow related to the acquisition of Magisto. Supplemental Disclosure of Cash Flow Information Years Ended December 31, 2022 2021 2020 (In thousands) Cash received (paid) during the year for: Interest payments $ (203) $ (5,064) $ (10,653) Income tax payments (1,336) (801) (957) Income tax refunds 123 62 70 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING During the year ended December 31, 2022, the Company initiated and completed a restructuring plan that resulted in a reduction of its workforce of approximately 6% of its employees. One-time termination benefits include severance, continuation of health insurance coverage, and other benefits for a specified period of time, which resulted in $4.2 million of restructuring costs for the year ended December 31, 2022. These costs have been recognized in the accompanying consolidated statement of operations (depending upon the impacted employee's job function) as follows: Year Ended December 31, 2022 (In thousands) Restructuring costs: Research and development expense $ 2,282 Sales and marketing expense 1,133 General and administrative expense 768 Total $ 4,183 At December 31, 2022 , a payable of $0.3 million related to restructuring costs was included in " Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT In January 2023, the Company completed an evaluation to a sufficient level of detail to commit to a restructuring plan that resulted in a reduction to its workforce of approximately 11% of its employees. All impacted employees were notified in January and the Company expects to provide severance payments, continuation of health coverage, and other benefits for a specified period of time to the affected employees. As a result, the Company currently estimates that it will incur restructuring costs of approximately $4.0 million to $5.0 million in the first quarter of 2023. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | Description Balance at Charges to Charges to Deductions Balance at (In thousands) 2022 Allowance for credit losses $ 1,324 $ 7,606 (a) $ — $ (3,747) (b) $ 5,183 Deferred tax valuation allowance 52,023 12,736 (c) 2,785 (d) — 67,544 2021 Allowance for credit losses $ 476 $ 1,428 (a) $ — $ (580) (b) $ 1,324 Deferred tax valuation allowance 51,689 20,858 (e) (20,524) (f) — 52,023 2020 Allowance for credit losses $ 273 $ 1,834 (a) $ — $ (1,631) (b) $ 476 Deferred tax valuation allowance 35,745 15,946 (e) (2) (g) — 51,689 Other reserves 3 — _____________________ (a) Additions to the allowance for credit losses are charged to expense. (b) Write-off of reserved accounts receivable, net of recoveries. (c) Amount is due primarily to deferred tax assets for capitalized research and development expenses, partially offset by federal and state NOL utilization. (d) Amount is due primarily to the change in attributes resulting from the final Spin-off allocation. (e) Amount is due primarily to federal and state NOLs and other carryforwards. (f) Amount is due primarily to the decrease in attributes resulting from the Spin-off allocation, partially offset by the acquisition of foreign NOLs. (g) Amount is due to currency translation adjustments on foreign NOLs. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business 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," "Company," "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 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"). The accompanying consolidated financial statements include all the assets, liabilities, revenues, expenses and cash flows of entities in which Vimeo has a controlling interest ("subsidiaries"), and in the opinion of management, include all adjustments considered necessary for a fair presentation. All intercompany balances and transactions between and among Vimeo and its subsidiaries have been eliminated. All related party balances between Vimeo and IAC and its subsidiaries are reflected in the accompanying consolidated balance sheet within "Accrued expenses and other current liabilities" and "Other long-term liabilities". 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 operating activities. Amounts related to the settlement of Vimeo 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. 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 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. Prior to the Spin-off, IAC allocated certain corporate expenses to Vimeo which were charged to "Additional paid-in-capital" in the accompanying consolidated balance sheet. 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 accompanying consolidated financial statements and footnotes thereto. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition Vimeo's revenue is derived primarily from SaaS subscription fees paid by customers. 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 generally range from one month to three years with the most common being an annual subscription and are generally non-cancellable. Vimeo's disaggregated revenue disclosures are presented in " Note 3 — Revenue ." Vimeo accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to Vimeo's customers and in an amount that reflects the consideration Vimeo expects to be entitled to in exchange for those services or goods. Practical Expedients and Exemptions 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. Transaction Price The objective of determining the transaction price is to estimate the amount of consideration Vimeo is due in exchange for its services or goods. Vimeo determines the total transaction price at contract inception and reassesses this estimate each reporting period. Vimeo excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, these taxes are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, Vimeo does not consider the time value of money applicable to such contracts. Arrangements with Multiple Performance Obligations Vimeo’s contracts with customers may include multiple performance obligations. For such arrangements, Vimeo allocates revenue to each performance obligation based on its relative standalone selling price. Vimeo generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. 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 term of the applicable subscription period or expected completion of its performance obligation is one year or less. Assets Recognized from the Costs to Obtain a Contract with a Customer Vimeo has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. Vimeo calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, Vimeo has elected the practical expedient to expense the costs as incurred. Vimeo capitalizes and amortizes mobile app store fees over the term of the applicable subscription. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash and short-term investments, with maturities of 3 months or less from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds. Internationally, cash equivalents consist of time deposits. Cash and cash equivalents are principally maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits. |
Allowance for Credit Losses | Allowance for Credit Losses Vimeo maintains an allowance for credit losses to provide for the estimated amount of accounts receivable that will not be collected. The allowance for credit losses is based upon a number of factors, including the length of time accounts receivable are past due, Vimeo’s previous loss history and the specific customer’s ability to pay its obligation. The time between Vimeo's issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. |
Leasehold Improvements and Equipment | Leasehold Improvements and EquipmentLeasehold improvements and equipment are recorded at cost. Depreciation of leasehold improvements and equipment is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter. Repairs and maintenance costs are expensed as incurred. |
Leases | Leases Vimeo leases office space used in connection with its operations under various operating leases, the majority of which contain escalation clauses. ROU assets represent Vimeo’s right to use the underlying assets for the lease term and lease liabilities represent the present value of Vimeo’s obligation to make payments arising from these leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term usin g the Company's i ncremental borrowing rates on the lease commencement date. Vimeo combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain Vimeo will exercise the option(s). Lease expense is recognized on a straight-line basis over the term of the lease. Vimeo has elected not to record leases with an initial term of twelve months or less on the accompanying consolidated balance sheet. Variable lease payments consist primarily of common area maintenance, utilities and taxes, which are not included in the recognition of ROU assets and related lease liabilities. Vimeo’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Business Combinations | Business Combinations The allocation of purchase price to the assets acquired and liabilities assumed is based upon their fair values on the acquisition date, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. Vimeo generally uses the assistance of outside valuation experts to assist in the allocation of purchase price to the identifiable intangible assets acquired. While outside valuation experts may be used, management has ultimate responsibility for the valuation methods, models and inputs used and the resulting purchase price allocation. The excess purchase price over the value of net tangible and identifiable intangible assets acquired is recorded as goodwill. |
Goodwill | Goodwill Vimeo assesses goodwill for impairment annually as of October 1 or more frequently if an event occurs or circumstances change that would more likely than not reduce its fair value below its carrying value. Goodwill is tested for impairment at the reporting unit level which is either an “operating segment,” or one level below, which is referred to as a “component.” The level at which the impairment test is performed requires judgment as to whether there are multiple operating segments and/or components, and if so, whether their operations are similar such that they should be aggregated for purposes of the impairment test. For purposes of performing the 2022 impairment test, management has determined that there is one operating segment and no components below that level, which results in a single reporting unit at the overall Vimeo level for purposes of testing goodwill for impairment. |
Long-Lived Assets | Long-Lived Assets Long-lived assets (which consist of ROU assets, leasehold improvements and equipment, and intangible assets with definite lives) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is based on the pattern in which the economic benefits of the asset are expected to be realized, which is generally on a straight-line basis. |
Fair Value Measurements | Fair Value Measurements Vimeo categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets. • Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of |
Advertising Costs | Advertising Costs Advertising costs are expensed when incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines, social media sites, e-mail campaigns, display advertising, video advertising and affiliate marketing, and offline marketing, which is primarily conferences and events. |
Income Taxes | Income Taxes Vimeo is included within IAC’s tax g roup for purposes of federal and consolidated state income tax return filings through the Spin-off. For the years ended December 31, 2021 and 2020, the current and deferred income tax provision were computed on an as if standalone, separate tax return basis. For the year ended December 31, 2022, the income tax provision was computed for Vimeo on a true standalone basis. Vimeo accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. Vimeo regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning, and historical experience. Vimeo records interest and penalties, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax provision. Vimeo evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when Vimeo concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when Vimeo subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. Vimeo has made an accounting policy election to treat Global Intangible Low-Taxed Income taxes as a current period expense rather than including these amounts in the measurement of deferred taxes. |
Loss Per Share | Loss per Share Basic loss or earnings per share is computed by dividing net loss or earnings by the weighted average number of common shares outstanding during the period. |
Foreign Currency | Foreign Currency The functional currency of foreign entities is generally the local currency. Functional currency denominated (i) assets and liabilities are translated at the rates of exchange as of the balance sheet date, and (ii) revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of "Other income, net". |
Stock-Based Compensation | Stock-Based Compensation Vimeo measures and recognizes compensation expense, net of estimated forfeitures for all stock‑based awards based on the grant date fair value of the award. Stock-based compensation expense is recognized ratably over the requisite service period. Estimated forfeitures are based on an analysis of historical forfeitures and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted by the Company ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Vimeo adopted ASU No. 2021-08 effective October 28, 2021. ASU No. 2021-08 amends ASC 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The adoption of ASU No. 2021-08 did not have a material impact on Vimeo's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted by the Company 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. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Allowance for Credit Losses | The changes in the allowance for credit losses are as follows: Years Ended December 31, 2022 2021 (In thousands) Balance at beginning of period $ 1,324 $ 476 Provision for credit losses 7,606 1,428 Write-offs charged against the allowance (4,997) (1,268) Recoveries collected 1,245 699 Currency translation adjustment 5 (11) Balance at end of period $ 5,183 $ 1,324 The increase in the allowance for credit losses for the year ended December 31, 2022 was due primarily to growth in the business, as well as an increase in aged accounts receivable balances in the first half of 2022. |
Schedule of Leasehold Improvements and Equipment, net | Leasehold improvements and equipment, net is as follows: December 31, Estimated Useful Lives 2022 2021 (In thousands) Leasehold improvements $ 1,332 $ 3,498 Shorter of lease term or 10 Years Computer and other equipment 807 961 2 to 10 Years Total leasehold improvements and equipment 2,139 4,459 Accumulated depreciation and amortization (784) (1,591) Leasehold improvements and equipment, net $ 1,355 $ 2,868 |
Schedule of Revenue and Long-lived Assets by Geographic Area | Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at December 31, 2022 and December 31, 2021 relate to "Leasehold improvements and equipment, net." December 31, 2022 2021 (In thousands) Leasehold improvements and equipment, net: United States $ 537 $ 1,901 All other countries 818 967 Total $ 1,355 $ 2,868 Revenue by geography is based on where the customer is located. The United States was the only country whose revenue constituted greater than 10% of total revenue of the Company for the years ended December 31, 2022, 2021, and 2020. Years Ended December 31, 2022 2021 2020 (In thousands) Revenue: United States $ 220,742 $ 197,576 $ 139,826 All other countries 212,286 194,102 143,392 Total $ 433,028 $ 391,678 $ 283,218 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenue is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Revenue: Self-Serve & Add-Ons $ 304,726 $ 275,259 $ 189,449 Vimeo Enterprise 39,271 23,236 6,236 Other 89,031 93,183 87,533 Total $ 433,028 $ 391,678 $ 283,218 |
Schedule of Revenue and Long-lived Assets by Geographic Area | Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at December 31, 2022 and December 31, 2021 relate to "Leasehold improvements and equipment, net." December 31, 2022 2021 (In thousands) Leasehold improvements and equipment, net: United States $ 537 $ 1,901 All other countries 818 967 Total $ 1,355 $ 2,868 Revenue by geography is based on where the customer is located. The United States was the only country whose revenue constituted greater than 10% of total revenue of the Company for the years ended December 31, 2022, 2021, and 2020. Years Ended December 31, 2022 2021 2020 (In thousands) Revenue: United States $ 220,742 $ 197,576 $ 139,826 All other countries 212,286 194,102 143,392 Total $ 433,028 $ 391,678 $ 283,218 |
Schedule of Current and Non-current Balances of Deferred Revenue and Contract Asset | The current and non-current deferred revenue balances are included in the accompanying consolidated balance sheet as follows: December 31, December 31, (In thousands) Deferred revenue $ 167,388 $ 173,167 Other long-term liabilities 1,286 1,291 The current and non-current balances of capitalized costs to obtain a contract with a customer are included in the accompanying consolidated balance sheet as follows: December 31, December 31, (In thousands) Prepaid expenses and other current assets $ 4,168 $ 3,498 Other non-current assets 7,988 6,196 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Losses) Earnings before Income Taxes | U.S. and foreign (losses) earnings before income taxes are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) U.S. $ (90,500) $ (54,085) $ (52,007) Foreign 12,835 2,146 2,207 Loss before income taxes $ (77,665) $ (51,939) $ (49,800) |
Schedule of Components of Income Tax Provision | The income tax provisions for the years ended December 31, 2022, 2021, and 2020 primarily relate to international and state taxes for jurisdictions in which Vimeo conducts business and are as follows: December 31, 2022 2021 2020 (In thousands) Current income tax provision: Federal $ 81 $ 52 $ — State 88 85 64 Foreign 1,351 761 561 Current income tax provision 1,520 898 625 Deferred income tax provision (benefit): Federal 37 (20) 270 State (4) (5) — Foreign 373 (45) (67) Deferred income tax provision (benefit) 406 (70) 203 Income tax provision $ 1,926 $ 828 $ 828 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 31,069 $ 33,897 Tax credit carryforwards 12,138 9,066 Intangible assets with definite lives — 2,247 Stock-based compensation 10,209 5,467 Capitalized research and development expenses 14,242 — Other 9,958 8,536 Total deferred tax assets 77,616 59,213 Less: valuation allowance (67,544) (52,023) Net deferred tax assets 10,072 7,190 Deferred tax liabilities: Prepaid expenses (4,834) (3,835) Intangible assets with definite lives (925) — Right-of-use assets (3,755) (2,561) Withholding taxes (905) (506) Other (106) (299) Total deferred tax liabilities (10,525) (7,201) Net deferred tax liability $ (453) $ (11) |
Composition of Net Operating Loss Carryforwards | The composition of Vimeo's NOLs as of December 31, 2022 is as follows: Federal State Foreign Total (In thousands) Subject to expiration (a) $ 147 $ 57,861 $ — $ 58,008 Indefinite carryforward (b) 79,641 4,793 45,340 129,774 Total NOLs (c) $ 79,788 $ 62,654 $ 45,340 $ 187,782 ____________________ (a) Federal NOL will expire in 2035 and state NOLs will expire at various times between 2025 through 2042. (b) All indefinite carryforward federal NOLs are subject to the Tax Cuts and Jobs Act 80% taxable income limitation. (c) State NOLs of $9.7 million are subject to limitations under IRC Section 382, separate return limitations, and applicable law. |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to loss before income taxes is shown as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Income tax benefit at the federal statutory rate of 21% $ (16,310) $ (10,907) $ (10,458) State income taxes, net of effect of federal tax benefit (1,559) (2,086) (963) Global intangible low-taxed income 1,307 — — Return to provision (765) (2,249) 1 Change in valuation allowance 12,736 20,858 15,946 Stock-based compensation 8,838 (4,041) (3,474) Research credit (2,631) (2,163) (1,439) Transaction costs 18 698 640 Other, net 292 718 575 Income tax provision $ 1,926 $ 828 $ 828 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of period $ 2,519 $ 1,921 $ 1,475 Additions based on tax positions related to prior years 74 — 538 Settlements (821) (329) (645) Additions based on tax positions related to the current year 751 927 553 Balance at end of period $ 2,523 $ 2,519 $ 1,921 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets, Net | Goodwill and intangible assets with definite lives, net are as follows: December 31, 2022 2021 (In thousands) Goodwill $ 245,406 $ 242,586 Intangible assets with definite lives, net of accumulated amortization 5,468 11,008 Total goodwill and intangible assets with definite lives, net $ 250,874 $ 253,594 |
Schedule of Changes in the Carrying Value of Goodwill | The changes in the carrying value of goodwill for the years ended December 31, 2022 and 2021 are as follows: Years Ended December 31, 2022 2021 (In thousands) Balance at beginning of period $ 242,586 $ 219,337 Additions (a) 2,820 23,249 Balance at end of period $ 245,406 $ 242,586 ____________________ |
Schedule of Intangible Assets with Definite Lives | At December 31, 2022 and 2021, intangible assets with definite lives are as follows: December 31, 2022 Gross Accumulated Net Weighted-Average (In thousands) Developed technology $ 29,730 $ (25,630) $ 4,100 3.7 Customer relationships 17,530 (16,162) 1,368 3.9 Trade names 3,000 (3,000) — 1.7 Total $ 50,260 $ (44,792) $ 5,468 3.6 December 31, 2021 Gross Accumulated Net Weighted-Average (In thousands) Developed technology $ 26,500 $ (22,026) $ 4,474 3.5 Customer relationships 21,200 (14,666) 6,534 3.8 Trade names 3,000 (3,000) — 1.7 Total $ 50,700 $ (39,692) $ 11,008 3.5 |
Schedule of Expected Amortization of Intangible Assets | At December 31, 2022, amortization of intangible assets with definite lives is estimated to be as follows: Years Ending December 31, (In thousands) 2023 $ 2,839 2024 1,390 2025 1,239 Total (a) $ 5,468 ____________________ (a) All intangible assets will be fully amortized by December 31, 2025, therefore there is no estimated amortization for the years 2026 and 2027. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Vimeo's financial instruments that are measured at fair value on a recurring basis are as follows: December 31, 2022 Quoted Market Significant Significant Total (In thousands) Assets: Money market funds $ 249,422 $ — $ — $ 249,422 Time deposits — 847 — 847 Total $ 249,422 $ 847 $ — $ 250,269 Liabilities: Contingent consideration arrangements $ — $ — $ 7,845 $ 7,845 December 31, 2021 Quoted Market Significant Significant Total (In thousands) Assets: Money market funds $ 305,836 $ — $ — $ 305,836 Liabilities: Contingent consideration arrangements $ — $ — $ 12,200 $ 12,200 |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | The changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 (In thousands) Balance at beginning of period $ 12,200 $ — Fair value at date of acquisition — 12,200 Total net losses (gains): Included in operating loss (1,116) — Measurement period adjustments 1,577 — Settlements (4,816) — Balance at end of period $ 7,845 $ 12,200 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisting of foreign currency translation adjustments is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of period $ (86) $ (87) $ (232) Other comprehensive (loss) income (745) 1 145 Balance at end of period $ (831) $ (86) $ (87) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Appreciation Rights and Stock Options | SAR and stock option activity for the year ended December 31, 2022 is 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 at December 31, 2021 17,487 $ 5.91 Exercised (325) 5.82 Forfeited or Expired (1,935) 6.69 Outstanding at December 31, 2022 (a) 15,227 5.82 4.9 $ 726 Exercisable at December 31, 2022 (a) 14,184 $ 5.59 4.8 $ 726 _____________________ (a) Includes 4.8 million outstanding and exercisable stock options at December 31, 2022 which relate solely to the conversion of vested IAC stock options into Vimeo stock options in connection with the Spin-off as more fully described in " Note 1—Organization and Basis of Presentation |
Summary of Restricted Stock Unit Activity | RSU activity for the year ended December 31, 2022 is as follows: Number of Shares Weighted Average Grant Date Fair Value (Shares in thousands) Unvested at December 31, 2021 3,344 $ 30.49 Granted (a) 13,889 8.17 Released (448) 26.85 Forfeited (851) 18.07 Unvested at December 31, 2022 (a) 15,934 $ 11.80 _____________________ (a) Includes 1.0 million RSUs subject to market-based conditions. |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Loss per Share | The computation of basic and diluted loss per share attributable to common shareholders is as follows: Years Ended December 31, 2022 2021 2020 (In thousands, except per share data) Numerator: Net loss $ (79,591) $ (52,767) $ (50,628) Denominator: (a) (b) (c) Denominator for earnings per share—weighted average shares 161,478 159,884 159,381 Loss per share attributable to common stock shareholders: Loss per share $ (0.49) $ (0.33) $ (0.32) _____________________ (a) Vimeo Restricted Shares were included in shares of common stock issued and outstanding at December 31, 2022 and 2021 in the accompanying consolidated balance sheet, but were excluded from the computation of weighted average shares outstanding for EPS purposes because the number of shares that ultimately vest is subject to the satisfaction of the conditions described in " Note 1 1 —Stock-Based Compensation ." (b) For the years ended December 31, 2022 and 2021 , approximately 36.0 million and 25.7 million, respectively, 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 years ended December 31, 2020 reflects Vimeo's outstanding shares immediately after the completion of the Spin-off as described in " Note 1—Organization and Basis of Presentation |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information of Leases | ROU assets and lease liabilities on the accompanying consolidated balance sheet are as follows: December 31, Leases Balance Sheet Classification 2022 2021 (In thousands) Right-of-use assets Other non-current assets $ 18,751 $ 13,534 Current lease liabilities Accrued expenses and other current liabilities $ 2,979 $ 7,299 Long-term lease liabilities Other long-term liabilities 16,335 6,709 Total lease liabilities $ 19,314 $ 14,008 |
Schedule of Lease Cost and Other Information | Components of lease expense are as follows: Years Ended December 31, Lease Expense 2022 2021 2020 (In thousands) Fixed (a) $ 5,971 $ 3,884 $ 957 Short-term 2,273 553 273 Variable 226 119 143 Sublease income — — (61) Total lease expense, net $ 8,470 $ 4,556 $ 1,312 Years Ended December 31, Lease Expense Income Statement Classification 2022 2021 2020 (In thousands) Cost of revenue $ 806 $ 304 $ 31 Research and development expense 2,613 1,984 446 Sales and marketing expense 1,622 1,163 187 General and administrative expense 3,429 1,105 648 Total lease expense, net $ 8,470 $ 4,556 $ 1,312 Other information related to leases is as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Right-of-use assets obtained in exchange for lease liabilities $ 14,793 $ 15,654 $ 1,322 Cash paid for amounts included in the measurement of lease liabilities $ 5,724 $ 3,543 $ 3,601 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 are as follows: Years Ended December 31, (In thousands) 2023 $ 4,379 2024 4,507 2025 4,672 2026 4,378 2027 4,376 Thereafter 1,318 Total (b) 23,630 Less: imputed interest (4,316) Total lease liabilities $ 19,314 _____________________ (b) As of December 31, 2022, the Company had no legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Weighted-Average Lease Term and Discount Rate of Leases | The weighted average assumptions used for lease term and discount rate are as follows: December 31, 2022 2021 2020 Remaining lease term 5.1 years 2.6 years 2.7 years Discount rate 8.1 % 3.1 % 3.0 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments under Non-cancelable Unconditional Purchase Obligations | Future payments under non-cancelable unconditional purchase obligations as of December 31, 2022, principally consist of payments for various cloud computing contracts and are as follows: Amount of Commitment Expiration Per Period Less Than 1-3 3-5 More Than Total (In thousands) Purchase obligations $ 54,700 $ 39,212 $ — $ — $ 93,912 |
FINANCIAL STATEMENT DETAILS (Ta
FINANCIAL STATEMENT DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying consolidated statement of cash flows is as follows: December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 274,497 $ 321,900 $ 110,011 $ 1,939 Restricted cash included in other current assets 337 445 26 24 Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 274,834 $ 322,345 $ 110,037 $ 1,963 |
Schedule of Restricted Cash | The reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying consolidated statement of cash flows is as follows: December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 274,497 $ 321,900 $ 110,011 $ 1,939 Restricted cash included in other current assets 337 445 26 24 Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 274,834 $ 322,345 $ 110,037 $ 1,963 |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2022 2021 (In thousands) Prepaid expenses $ 12,503 $ 11,377 Other current assets 5,892 7,434 Prepaid expenses and other current assets $ 18,395 $ 18,811 |
Schedule of Accrued Expenses and Other Current Liabilities | December 31, 2022 2021 (In thousands) Accrued employee compensation and benefits $ 21,924 $ 23,082 Due to IAC — 6,426 Other accrued expenses and current liabilities (a) 35,227 37,877 Accrued expenses and other current liabilities $ 57,151 $ 67,385 ____________________ (a) As of December 31, 2022 and 2021, includes $2.0 million and $6.1 million, respectively, related to the operating lease agreements as described in " Note 1 5 —Related Party Transactions ." |
Schedule of Other Income, Net | The components of "Other income, net" are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Foreign exchange gains (losses), net $ 1,893 $ (2) $ (710) Interest income 3,866 83 12 Gain on sale of an asset — 10,151 288 Other, net 5 9 503 Other income, net $ 5,764 $ 10,241 $ 93 |
Schedule of Supplemental Disclosure of Cash Flow Information | Years Ended December 31, 2022 2021 2020 (In thousands) Cash received (paid) during the year for: Interest payments $ (203) $ (5,064) $ (10,653) Income tax payments (1,336) (801) (957) Income tax refunds 123 62 70 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Costs Recognized in Consolidated Statement of Operations | These costs have been recognized in the accompanying consolidated statement of operations (depending upon the impacted employee's job function) as follows: Year Ended December 31, 2022 (In thousands) Restructuring costs: Research and development expense $ 2,282 Sales and marketing expense 1,133 General and administrative expense 768 Total $ 4,183 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 25, 2021 | May 24, 2021 |
Organization and Basis of Presentation [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 | |||
IAC | ||||
Organization and Basis of Presentation [Line Items] | ||||
Ownership interest (as a percent) | 88% | |||
Common Stock | ||||
Organization and Basis of Presentation [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | ||
Number of shares issued upon Spin-off per preferred stock exchanged (in shares) | 1.6235 | |||
Common Stock | IAC | ||||
Organization and Basis of Presentation [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.001 | ||
Number of common stock issued upon reclassification of common stock (in shares) | 1 | |||
Class B common stock | ||||
Organization and Basis of Presentation [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | ||
Class B common stock | IAC | ||||
Organization and Basis of Presentation [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.001 | ||
Number of common stock issued upon reclassification of common stock (in shares) | 1 | |||
Series 2 Mandatorily Exchangeable Preferred Stock | IAC | ||||
Organization and Basis of Presentation [Line Items] | ||||
Number of preferred stock issued upon reclassification of common stock (in shares) | 0.01 | |||
Series 1 Mandatorily Exchangeable Preferred Stock | IAC | ||||
Organization and Basis of Presentation [Line Items] | ||||
Number of preferred stock issued upon reclassification of common stock (in shares) | 0.01 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Abstract] | |||
Number of operating segments | segment | 1 | ||
Number of reporting units | segment | 1 | ||
Goodwill impairment | $ | $ 0 | $ 0 | $ 0 |
Advertising expense | $ | $ 76,300,000 | $ 87,100,000 | $ 65,400,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Allowance of Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 1,324 | $ 476 | |
Provision for credit losses | 7,606 | 1,428 | $ 1,834 |
Write-offs charged against the allowance | (4,997) | (1,268) | |
Recoveries collected | 1,245 | 699 | |
Currency translation adjustment | 5 | (11) | |
Balance at end of period | $ 5,183 | $ 1,324 | $ 476 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives and Components of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total leasehold improvements and equipment | $ 2,139 | $ 4,459 |
Accumulated depreciation and amortization | (784) | (1,591) |
Leasehold improvements and equipment, net | 1,355 | 2,868 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total leasehold improvements and equipment | $ 1,332 | 3,498 |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 10 years | |
Computer and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total leasehold improvements and equipment | $ 807 | $ 961 |
Computer and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 2 years | |
Computer and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Revenue and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Leasehold improvements and equipment, net | $ 1,355 | $ 2,868 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Leasehold improvements and equipment, net | 537 | 1,901 |
All other countries | ||
Disaggregation of Revenue [Line Items] | ||
Leasehold improvements and equipment, net | $ 818 | $ 967 |
REVENUE - Schedule of Revenue a
REVENUE - Schedule of Revenue and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 433,028 | $ 391,678 | $ 283,218 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 220,742 | 197,576 | 139,826 |
All other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 212,286 | 194,102 | 143,392 |
Self-Serve & Add-Ons | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 304,726 | 275,259 | 189,449 |
Vimeo Enterprise | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 39,271 | 23,236 | 6,236 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 89,031 | $ 93,183 | $ 87,533 |
REVENUE - Schedule of Current a
REVENUE - Schedule of Current and Non-current Balances of Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 167,388 | $ 173,167 |
Other long-term liabilities | $ 1,286 | $ 1,291 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Amortization of capitalized contract costs | $ 6.2 | $ 7.1 | $ 7.7 |
Deferred revenue recognized during period | $ 172 | $ 137 | |
United States | Revenue Benchmark | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percent (greater than) | 10% | 10% | 10% |
REVENUE - Schedule of Current_2
REVENUE - Schedule of Current and Non-current Contract Asset Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses and other current assets | $ 4,168 | $ 3,498 |
Non-current capitalized contract costs | $ 7,988 | $ 6,196 |
INCOME TAXES - (Losses) Earning
INCOME TAXES - (Losses) Earnings before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (90,500) | $ (54,085) | $ (52,007) |
Foreign | 12,835 | 2,146 | 2,207 |
Loss before income taxes | $ (77,665) | $ (51,939) | $ (49,800) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax provision: | |||
Federal | $ 81 | $ 52 | $ 0 |
State | 88 | 85 | 64 |
Foreign | 1,351 | 761 | 561 |
Current income tax provision | 1,520 | 898 | 625 |
Deferred income tax provision (benefit): | |||
Federal | 37 | (20) | 270 |
State | (4) | (5) | 0 |
Foreign | 373 | (45) | (67) |
Deferred income tax provision (benefit) | 406 | (70) | 203 |
Income tax provision | $ 1,926 | $ 828 | $ 828 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 31,069 | $ 33,897 |
Tax credit carryforwards | 12,138 | 9,066 |
Intangible assets with definite lives | 0 | 2,247 |
Stock-based compensation | 10,209 | 5,467 |
Capitalized research and development expenses | 14,242 | 0 |
Other | 9,958 | 8,536 |
Total deferred tax assets | 77,616 | 59,213 |
Less: valuation allowance | (67,544) | (52,023) |
Net deferred tax assets | 10,072 | 7,190 |
Deferred tax liabilities: | ||
Prepaid expenses | (4,834) | (3,835) |
Intangible assets with definite lives | (925) | 0 |
Right-of-use assets | (3,755) | (2,561) |
Withholding taxes | (905) | (506) |
Other | (106) | (299) |
Total deferred tax liabilities | (10,525) | (7,201) |
Net deferred tax liability | $ (453) | $ (11) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||||
Increase in valuation allowance | $ 15,500 | $ 4,800 | ||
Tax credit carryforwards | 14,600 | |||
Deferred tax assets, valuation allowance | 67,544 | 52,023 | ||
Unrecognized tax benefits | 2,523 | $ 2,519 | $ 1,921 | $ 1,475 |
Research Tax Credit Carryforward | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | 12,600 | |||
Foreign Tax Credit Carryforward | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | $ 2,000 |
INCOME TAXES - Operating Loss C
INCOME TAXES - Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Income Taxes [Line Items] | |
Subject to expiration | $ 58,008 |
Indefinite carryforward | 129,774 |
Total NOLs | 187,782 |
Federal | |
Income Taxes [Line Items] | |
Subject to expiration | 147 |
Indefinite carryforward | 79,641 |
Total NOLs | 79,788 |
State | |
Income Taxes [Line Items] | |
Subject to expiration | 57,861 |
Indefinite carryforward | 4,793 |
Total NOLs | 62,654 |
Net operating loss carryforwards, subject to limitations under IRC section 382 | 9,700 |
Foreign | |
Income Taxes [Line Items] | |
Subject to expiration | 0 |
Indefinite carryforward | 45,340 |
Total NOLs | $ 45,340 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at the federal statutory rate of 21% | $ (16,310) | $ (10,907) | $ (10,458) |
State income taxes, net of effect of federal tax benefit | (1,559) | (2,086) | (963) |
Global intangible low-taxed income | 1,307 | 0 | 0 |
Return to provision | (765) | (2,249) | 1 |
Change in valuation allowance | 12,736 | 20,858 | 15,946 |
Stock-based compensation | 8,838 | (4,041) | (3,474) |
Research credit | (2,631) | (2,163) | (1,439) |
Transaction costs | 18 | 698 | 640 |
Other, net | 292 | 718 | 575 |
Income tax provision | $ 1,926 | $ 828 | $ 828 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of period | $ 2,519 | $ 1,921 | $ 1,475 |
Additions based on tax positions related to prior years | 74 | 0 | 538 |
Settlements | (821) | (329) | (645) |
Additions based on tax positions related to the current year | 751 | 927 | 553 |
Balance at end of period | $ 2,523 | $ 2,519 | $ 1,921 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) | Dec. 06, 2021 |
Wibbitz Ltd. and WIREWAX Ltd. | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired (as a percent) | 100% |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 245,406 | $ 242,586 | $ 219,337 |
Intangible assets with definite lives, net of accumulated amortization | 5,468 | 11,008 | |
Total goodwill and intangible assets with definite lives, net | $ 250,874 | $ 253,594 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES - Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | ||
Balance at beginning of period | $ 242,586 | $ 219,337 |
Additions | 2,820 | 23,249 |
Balance at end of period | $ 245,406 | $ 242,586 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES - Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 50,260 | $ 50,700 |
Accumulated Amortization | (44,792) | (39,692) |
Total | $ 5,468 | $ 11,008 |
Weighted-Average Useful Life (Years) | 3 years 7 months 6 days | 3 years 6 months |
Developed technology | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 29,730 | $ 26,500 |
Accumulated Amortization | (25,630) | (22,026) |
Total | $ 4,100 | $ 4,474 |
Weighted-Average Useful Life (Years) | 3 years 8 months 12 days | 3 years 6 months |
Customer relationships | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 17,530 | $ 21,200 |
Accumulated Amortization | (16,162) | (14,666) |
Total | $ 1,368 | $ 6,534 |
Weighted-Average Useful Life (Years) | 3 years 10 months 24 days | 3 years 9 months 18 days |
Trade names | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 3,000 | $ 3,000 |
Accumulated Amortization | (3,000) | (3,000) |
Total | $ 0 | $ 0 |
Weighted-Average Useful Life (Years) | 1 year 8 months 12 days | 1 year 8 months 12 days |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS WITH DEFINITE LIVES - Expected Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 2,839 | |
2024 | 1,390 | |
2025 | 1,239 | |
Total | $ 5,468 | $ 11,008 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Total | $ 250,269 | |
Liabilities: | ||
Contingent consideration arrangements | 7,845 | $ 12,200 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 249,422 | |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 847 | |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | 0 | |
Liabilities: | ||
Contingent consideration arrangements | 7,845 | 12,200 |
Money market funds | ||
Assets: | ||
Total | 249,422 | 305,836 |
Money market funds | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 249,422 | 305,836 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | 0 | $ 0 |
Time deposits | ||
Assets: | ||
Total | 847 | |
Time deposits | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 0 | |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 847 | |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | $ 0 |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Input Reconciliation (Details) - Contingent Consideration Liability - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 7,845 | $ 12,200 | $ 0 | |
Fair value at date of acquisition | 0 | 12,200 | ||
Included in operating loss | (1,116) | 0 | ||
Measurement period adjustments | $ 1,600 | 1,577 | 0 | |
Settlements | (4,816) | 0 | ||
Balance at end of period | $ 7,845 | $ 12,200 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) arrangement | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 06, 2021 USD ($) | Nov. 10, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||
Number of outstanding consideration arrangements | arrangement | 2 | ||||||
Contingent consideration arrangements | $ 7,845 | $ 12,200 | |||||
Contingent consideration payment | 4,816 | 0 | $ 0 | ||||
Contingent Consideration Liability | |||||||
Business Acquisition [Line Items] | |||||||
Measurement period adjustment | $ 1,600 | 1,577 | $ 0 | ||||
Wibbitz Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration arrangements | 5,600 | 3,000 | |||||
Contingent consideration arrangements, (decrease) increase | (2,600) | ||||||
WIREWAX Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration arrangements | $ 8,200 | 4,900 | |||||
Contingent consideration arrangements, (decrease) increase | $ 1,500 | ||||||
Revenue threshold term (in years) | 2 years | ||||||
Contingent consideration payment | $ 4,800 | ||||||
Maximum | Wibbitz Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration arrangements | $ 15,000 | ||||||
Maximum | WIREWAX Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration arrangements | $ 10,000 |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) - Revolving Credit Facility - Vimeo Credit Facility - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Feb. 12, 2021 | |
Revolving Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Commitment fee rate (as a percent) | 0.20% | |
Covenant term, minimum liquidity requirement | $ 50,000,000 | |
Maximum leverage ratio (not more than) | 5.5 | |
Net leverage ratio affecting ability to pay dividends, make distributions, or repurchase stock | 4 | |
Credit facility, borrowings outstanding | $ 0 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | 1 Months Ended | 12 Months Ended | ||||
Nov. 10, 2020 USD ($) $ / shares shares | Jan. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2022 vote shares | Feb. 25, 2022 USD ($) | Dec. 31, 2021 shares | May 25, 2021 shares | |
Shareholders' Equity [Line Items] | ||||||
Stock repurchase, authorized amount (up to) | $ 50,000,000 | |||||
Treasury stock acquired during period (shares) | shares | 0 | |||||
Sale of Equity Capital | ||||||
Shareholders' Equity [Line Items] | ||||||
Proceeds raised from sale of equity capital | $ 150,000,000 | $ 300,000,000 | ||||
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 | 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 | 400,000,000 | |||
Class A Voting common stock of Vimeo OpCo | Sale of Equity Capital | ||||||
Shareholders' Equity [Line Items] | ||||||
Number of shares issued in sale of equity capital (in shares) | shares | 8,700,000 | |||||
Price per share of stock issued in sale of equity capital (in dollars per share) | $ / shares | $ 17.33 | |||||
Enterprise valuation of Vimeo | $ 2,750,000,000 | |||||
Class A Voting common stock of Vimeo OpCo | Sale of Equity Capital, First Raise | ||||||
Shareholders' Equity [Line Items] | ||||||
Proceeds raised from sale of equity capital | $ 200,000,000 | |||||
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 | $ 5,200,000,000 | |||||
Class A Voting common stock of Vimeo OpCo | Sale of Equity Capital, Second Raise | ||||||
Shareholders' Equity [Line Items] | ||||||
Proceeds raised from sale of equity capital | $ 100,000,000 | |||||
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 | $ 5,700,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss | |||
Balance at beginning of period | $ 370,595,000 | $ 85,080,000 | $ 23,633,000 |
Other comprehensive (loss) income | (745,000) | 1,000 | 145,000 |
Balance at end of period | 353,858,000 | 370,595,000 | 85,080,000 |
Income tax provision (benefit) | 1,926,000 | 828,000 | 828,000 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Loss | |||
Balance at beginning of period | (86,000) | (87,000) | (232,000) |
Other comprehensive (loss) income | (745,000) | 1,000 | 145,000 |
Balance at end of period | (831,000) | (86,000) | (87,000) |
Income tax provision (benefit) | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Loss | |||
Other comprehensive (loss) income | $ (745,000) | $ 1,000 | $ 145,000 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) | 12 Months Ended | |||
May 25, 2021 USD ($) | Dec. 31, 2022 USD ($) plan $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of plans | plan | 1 | |||
Compensation expense | $ 64,340,000 | $ 44,893,000 | $ 11,665,000 | |
SARs and Options exercised, intrinsic value | 1,400,000 | 49,400,000 | 23,900,000 | |
Proceeds from exercise of stock options | 18,000 | 3,364,000 | $ 0 | |
Incremental compensation cost | $ 14,000,000 | |||
Incremental compensation cost from modification recognized in current period in connection with Spin-off | 1,200,000 | $ 9,500,000 | ||
Incremental compensation cost from modification recognized in current period in connection with certain executive departures | $ 4,400,000 | |||
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 | |||
Shares available for grant (shares) | shares | 9,700,000 | |||
Stock Appreciation Rights (SARs) and Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, net | $ 98,000,000 | |||
Unrecognized compensation cost, period for recognition (in years) | 1 year 10 months 24 days | |||
Expected volatility (as a percent) | 38% | |||
Risk-free interest rate (as a percent) | 1% | |||
Expected term | 3 years 3 months 18 days | |||
Dividend yield (as a percent) | 0% | |||
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (USD per share) | $ / shares | $ 2.16 | |||
Stock Appreciation Rights (SARs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock Appreciation Rights (SARs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Awards granted (USD per share) | $ / shares | $ 8.17 | $ 30.89 | $ 17.33 | |
Expected volatility (as a percent) | 47% | |||
Risk-free interest rate (as a percent) | 2.50% | |||
Dividend yield (as a percent) | 0% | |||
RSUs vested, intrinsic value (less than) | $ 3,100,000 | $ 100,000 | $ 0 | |
Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Market Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (USD per share) | $ / shares | $ 7.25 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, net | $ 72,400,000 | |||
Unrecognized compensation cost, period for recognition (in years) | 7 years 10 months 24 days | |||
Director | Restricted Stock | Restricted Stock Agreement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, net | $ 87,300,000 | |||
Shares authorized for issuance (in shares) | shares | 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 |
STOCK-BASED COMPENSATION - SARs
STOCK-BASED COMPENSATION - SARs and Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Weighted average exercise price | |
Options outstanding in connection to Spin-Off (in shares) | 4,800,000 |
Options exercisable in connection to Spin-Off (in shares) | 4,800,000 |
Stock Appreciation Rights (SARs) and Options | |
SARs and stock options | |
Outstanding, beginning balance (in shares) | 17,487,000 |
Exercised (in shares) | (325,000) |
Forfeited (in shares) | (1,935,000) |
Outstanding, ending balance (in shares) | 15,227,000 |
Weighted average exercise price | |
Outstanding, weighted average exercise price beginning balance (USD per share) | $ / shares | $ 5.91 |
Exercised (USD per share) | $ / shares | 5.82 |
Forfeited (USD per share) | $ / shares | 6.69 |
Outstanding, weighted average exercise price ending balance (USD per share) | $ / shares | $ 5.82 |
Outstanding, Weighted average remaining contractual life (in years) | 4 years 10 months 24 days |
Outstanding, Aggregate intrinsic value (in USD) | $ | $ 726 |
Exercisable, number exercisable at end of period (in shares) | 14,184,000 |
Exercisable, weighted average exercise price at end of period (USD per share) | $ / shares | $ 5.59 |
Exercisable, weighted average remaining contractual life (in years) | 4 years 9 months 18 days |
Exercisable, aggregate intrinsic value at end of period (in USD) | $ | $ 726 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested, beginning balance (in shares) | 3,344,000 | ||
Granted (in shares) | 13,889,000 | ||
Released (in shares) | (448,000) | ||
Forfeited (in shares) | (851,000) | ||
Unvested, ending balance (in shares) | 15,934,000 | 3,344,000 | |
Weighted Average Grant Date Fair Value | |||
Unvested, weighted average grant date fair value, beginning balance (USD per share) | $ 30.49 | ||
Granted (USD per share) | 8.17 | $ 30.89 | $ 17.33 |
Released (USD per share) | 26.85 | ||
Forfeited (USD per share) | 18.07 | ||
Unvested, weighted average grant date fair value, ending balance (USD per share) | $ 11.80 | $ 30.49 | |
Market Based Restricted Stock Units | |||
Number of Shares | |||
Granted (in shares) | 1,000,000 | ||
Weighted Average Grant Date Fair Value | |||
Granted (USD per share) | $ 7.25 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net loss | $ (79,591) | $ (52,767) | $ (50,628) |
Denominator: | |||
Denominator for loss per share—weighted average shares, basic (shares) | 161,478 | 159,884 | 159,381 |
Denominator for loss per share—weighted average shares, diluted (shares) | 161,478 | 159,884 | 159,381 |
Loss per share attributable to common stock shareholders: | |||
Basic loss per share (USD per share) | $ (0.49) | $ (0.33) | $ (0.32) |
Diluted loss per share (USD per share) | $ (0.49) | $ (0.33) | $ (0.32) |
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares) | 36,000 | 25,700 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use assets | $ 18,751 | $ 13,534 |
Current lease liabilities | 2,979 | 7,299 |
Long-term lease liabilities | 16,335 | 6,709 |
Total lease liabilities | $ 19,314 | $ 14,008 |
Operating lease, right-of-use asset, statement of financial position | Other non-current assets | Other non-current assets |
Operating lease, liability, noncurrent, statement of financial position | Other long-term liabilities | Other long-term liabilities |
Operating lease, liability, current, statement of financial position | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Fixed | $ 5,971 | $ 3,884 | $ 957 |
Short-term | 2,273 | 553 | 273 |
Variable | 226 | 119 | 143 |
Sublease income | 0 | 0 | (61) |
Total lease expense, net | $ 8,470 | $ 4,556 | $ 1,312 |
LEASES - Lease Expense Income S
LEASES - Lease Expense Income Statement Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lease expense, net | $ 8,470 | $ 4,556 | $ 1,312 |
Cost of revenue | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense, net | 806 | 304 | 31 |
Research and development expense | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense, net | 2,613 | 1,984 | 446 |
Sales and marketing expense | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense, net | 1,622 | 1,163 | 187 |
General and administrative expense | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense, net | $ 3,429 | $ 1,105 | $ 648 |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liabilities Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 4,379 | |
2024 | 4,507 | |
2025 | 4,672 | |
2026 | 4,378 | |
2027 | 4,376 | |
Thereafter | 1,318 | |
Total | 23,630 | |
Less: imputed interest | (4,316) | |
Total lease liabilities | $ 19,314 | $ 14,008 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Remaining lease term (in years) | 5 years 1 month 6 days | 2 years 7 months 6 days | 2 years 8 months 12 days |
Discount rate (as a percent) | 8.10% | 3.10% | 3% |
LEASES - Other Information (Det
LEASES - Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Right-of-use assets obtained in exchange for lease liabilities | $ 14,793 | $ 15,654 | $ 1,322 |
Cash paid for amounts included in the measurement of lease liabilities | $ 5,724 | $ 3,543 | $ 3,601 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments Outstanding (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Less Than 1 Year | $ 54,700 |
1-3 Years | 39,212 |
3-5 Years | 0 |
More Than 5 Years | 0 |
Total Amounts Committed | $ 93,912 |
CONTINGENCIES - Narrative (Deta
CONTINGENCIES - Narrative (Details) | 1 Months Ended | 72 Months Ended | |||
Jun. 02, 2019 EUR (€) | Jan. 15, 2019 EUR (€) | Sep. 18, 2013 video | Dec. 31, 2009 video lawsuit | Dec. 31, 2017 lawsuit | |
EMI/Capitol Records Copyright Infringement Litigation | |||||
Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 2 | ||||
Number of videos | 199 | 199 | |||
EMI/Capitol Records Copyright Infringement Litigation | Partial Summary Judgement | |||||
Contingencies [Line Items] | |||||
Number of videos | 144 | ||||
EMI/Capitol Records Copyright Infringement Litigation | Judicial Ruling | |||||
Contingencies [Line Items] | |||||
Number of videos | 20 | ||||
Amended number of videos | 1,500 | ||||
EMI/Capitol Records Copyright Infringement Litigation | Denied Summary Judgement | |||||
Contingencies [Line Items] | |||||
Number of videos | 35 | ||||
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 ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Current lease liabilities | $ 2,979 | $ 7,299 | ||
Long-term lease liabilities | 16,335 | 6,709 | ||
Repayment of outstanding related party debt | 0 | 94,565 | $ 35,457 | |
IAC | ||||
Related Party Transaction [Line Items] | ||||
Due to related party | 6,400 | |||
Current lease liabilities | 2,000 | |||
Long-term lease liabilities | 13,000 | |||
Allocated costs | 1,000 | 6,100 | ||
Repayment of outstanding related party debt | $ 99,500 | |||
Payment of accrued interest | $ 4,900 | |||
IAC | Promissory note due on demand—related party | ||||
Related Party Transaction [Line Items] | ||||
Stated interest rate (as a percent) | 10% | |||
IAC | Promissory note due May 2, 2023—related party | ||||
Related Party Transaction [Line Items] | ||||
Stated interest rate (as a percent) | 10% | |||
IAC | IAC Health and Welfare Benefit Plans and Other Non-Occupancy | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred with related party | 3,600 | 12,800 | 10,300 | |
IAC | IAC Headquarters Occupancy | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred with related party | $ 4,600 | $ 4,400 | $ 3,800 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - IAC Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
United States | |||
Defined Contribution Plan Disclosure | |||
Employer contribution per dollar employee contributes up to contribution limit | 100% | ||
Employer contribution limit per calendar year (as a percent of compensation) | 10% | ||
Defined contribution plan contributions | $ 6.7 | $ 5.1 | $ 3.5 |
All Other Countries | |||
Defined Contribution Plan Disclosure | |||
Defined contribution plan contributions | $ 2.3 | $ 1.5 | $ 0.9 |
FINANCIAL STATEMENT DETAILS - C
FINANCIAL STATEMENT DETAILS - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 274,497 | $ 321,900 | $ 110,011 | $ 1,939 |
Restricted cash included in other current assets | 337 | 445 | 26 | 24 |
Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows | $ 274,834 | $ 322,345 | $ 110,037 | $ 1,963 |
FINANCIAL STATEMENT DETAILS - O
FINANCIAL STATEMENT DETAILS - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 12,503 | $ 11,377 |
Other current assets | 5,892 | 7,434 |
Prepaid expenses and other current assets | $ 18,395 | $ 18,811 |
FINANCIAL STATEMENT DETAILS - A
FINANCIAL STATEMENT DETAILS - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Accrued employee compensation and benefits | $ 21,924 | $ 23,082 |
Due to IAC | 0 | 6,426 |
Other accrued expenses and current liabilities | 35,227 | 37,877 |
Accrued expenses and other current liabilities | 57,151 | 67,385 |
Current lease liabilities | 2,979 | 7,299 |
IAC and HomeAdivsor, Inc. | ||
Related Party Transaction [Line Items] | ||
Current lease liabilities | $ 2,000 | $ 6,100 |
FINANCIAL STATEMENT DETAILS -_2
FINANCIAL STATEMENT DETAILS - Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statements of Operations | |||
Foreign exchange gains (losses), net | $ 1,893 | $ (2) | $ (710) |
Interest income | 3,866 | 83 | 12 |
Gain on sale of an asset | 0 | 10,151 | 288 |
Other, net | 5 | 9 | 503 |
Other income, net | $ 5,764 | 10,241 | $ 93 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Hardware Business | |||
Condensed Statements of Operations | |||
Gain on sale of an asset | $ 10,200 |
FINANCIAL STATEMENT DETAILS - S
FINANCIAL STATEMENT DETAILS - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash received (paid) during the year for: | |||
Interest payments | $ (203) | $ (5,064) | $ (10,653) |
Income tax payments | (1,336) | (801) | (957) |
Income tax refunds | $ 123 | $ 62 | $ 70 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Reduction of workforce (as a percent) | 6% |
Cost incurred for one-time termination benefits | $ 4,183 |
Accrued liability related to restructuring plan | $ 300 |
RESTRUCTURING - Summary of Rest
RESTRUCTURING - Summary of Restructuring Costs Recognized in Consolidated Statement of Operations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 4,183 |
Research and development expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 2,282 |
Restructuring, incurred cost, statement of income or comprehensive income | Research and development expense |
Sales and marketing expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 1,133 |
Restructuring, incurred cost, statement of income or comprehensive income | Sales and marketing expense |
General and administrative expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 768 |
Restructuring, incurred cost, statement of income or comprehensive income | General and administrative expense |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||
Reduction of workforce (as a percent) | 6% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Reduction of workforce (as a percent) | 11% | |
Subsequent Event | Minimum | ||
Subsequent Event [Line Items] | ||
Expected restructuring cost | $ 5 | |
Subsequent Event | Maximum | ||
Subsequent Event [Line Items] | ||
Expected restructuring cost | $ 4 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 1,324 | $ 476 | $ 273 |
Charges to Earnings | 7,606 | 1,428 | 1,834 |
Charges to Other Accounts | 0 | 0 | 0 |
Deductions | (3,747) | (580) | (1,631) |
Balance at end of period | 5,183 | 1,324 | 476 |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 52,023 | 51,689 | 35,745 |
Charges to Earnings | 12,736 | 20,858 | 15,946 |
Charges to Other Accounts | 2,785 | (20,524) | (2) |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ 67,544 | 52,023 | 51,689 |
Other reserves | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 0 | 3 | |
Balance at end of period | $ 0 |