Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.01 per share | |
Trading Symbol | VMEO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001837686 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 158,219,615 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,399,250 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 290,564 | $ 274,497 |
Accounts receivable, net | 25,182 | 31,434 |
Prepaid expenses and other current assets | 20,613 | 18,395 |
Total current assets | 336,359 | 324,326 |
Leasehold improvements and equipment, net | 854 | 1,355 |
Goodwill | 245,406 | 245,406 |
Intangible assets with definite lives, net | 2,977 | 5,468 |
Other non-current assets | 24,082 | 28,876 |
TOTAL ASSETS | 609,678 | 605,431 |
LIABILITIES: | ||
Accounts payable, trade | 7,329 | 8,415 |
Deferred revenue | 169,857 | 167,388 |
Accrued expenses and other current liabilities | 50,812 | 57,151 |
Total current liabilities | 227,998 | 232,954 |
Other long-term liabilities | 14,960 | 18,619 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value; 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 768,033 | 768,390 |
Accumulated deficit | (401,730) | (415,367) |
Accumulated other comprehensive loss | (1,256) | (831) |
Total shareholders' equity | 366,720 | 353,858 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 609,678 | 605,431 |
Common Stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 1,579 | 1,572 |
Class B common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | $ 94 | $ 94 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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 (in shares) | 0 | 0 |
Preferred stock outstanding (in 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 (in shares) | 157,928,000 | 157,187,000 |
Common stock outstanding (in shares) | 157,928,000 | 157,187,000 |
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 (in shares) | 9,399,000 | 9,399,000 |
Common stock outstanding (in shares) | 9,399,000 | 9,399,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 106,253 | $ 108,133 | $ 311,670 | $ 327,464 |
Cost of revenue (exclusive of depreciation shown separately below) | 21,802 | 25,247 | 68,319 | 78,881 |
Gross profit | 84,451 | 82,886 | 243,351 | 248,583 |
Operating expenses: | ||||
Research and development expense | 23,153 | 34,378 | 81,089 | 104,524 |
Sales and marketing expense | 36,704 | 43,554 | 116,455 | 129,790 |
General and administrative expense | 18,396 | 26,461 | 34,645 | 84,783 |
Depreciation | 168 | 141 | 1,198 | 2,054 |
Amortization of intangibles | 347 | 1,234 | 2,491 | 3,866 |
Total operating expenses | 78,768 | 105,768 | 235,878 | 325,017 |
Operating income (loss) | 5,683 | (22,882) | 7,473 | (76,434) |
Interest expense | 0 | (124) | (998) | (367) |
Other income, net | 3,657 | 2,199 | 9,235 | 3,712 |
Earnings (loss) before income taxes | 9,340 | (20,807) | 15,710 | (73,089) |
Income tax provision | (876) | (609) | (2,073) | (1,387) |
Net earnings (loss) | $ 8,464 | $ (21,416) | $ 13,637 | $ (74,476) |
Per share information: | ||||
Basic earnings (loss) per share (USD per share) | $ 0.05 | $ (0.13) | $ 0.08 | $ (0.46) |
Diluted earnings (loss) per share (USD per share) | $ 0.05 | $ (0.13) | $ 0.08 | $ (0.46) |
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | $ 7,122 | $ 19,394 | $ 5,429 | $ 52,259 |
Cost of revenue | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | 271 | 297 | 740 | 698 |
Research and development expense | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | 2,149 | 7,908 | 11,650 | 19,329 |
Sales and marketing expense | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | 1,723 | 2,977 | 7,376 | 6,352 |
General and administrative expense | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | $ 2,979 | $ 8,212 | $ (14,337) | $ 25,880 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 8,464 | $ (21,416) | $ 13,637 | $ (74,476) |
Other comprehensive loss: | ||||
Change in foreign currency translation adjustment | (675) | (566) | (425) | (1,118) |
Total other comprehensive loss | (675) | (566) | (425) | (1,118) |
Comprehensive income (loss) | $ 7,789 | $ (21,982) | $ 13,212 | $ (75,594) |
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 | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at beginning of period at Dec. 31, 2021 | $ 370,595 | $ 1,567 | $ 94 | $ 704,796 | $ (335,776) | $ (86) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 156,708 | 9,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (74,476) | (74,476) | ||||
Other comprehensive loss | (1,118) | (1,118) | ||||
Stock-based compensation expense | 52,259 | 52,259 | ||||
Amounts related to settlement of equity awards | (421) | $ 3 | (424) | |||
Amounts related to settlement of equity awards (in shares) | 316 | |||||
Balance at end of period at Sep. 30, 2022 | 346,839 | $ 1,570 | $ 94 | 756,631 | (410,252) | (1,204) |
Balance at end of period (in shares) at Sep. 30, 2022 | 157,024 | 9,399 | ||||
Balance at beginning of period at Jun. 30, 2022 | 349,429 | $ 1,570 | $ 94 | 737,239 | (388,836) | (638) |
Balance at beginning of period (in shares) at Jun. 30, 2022 | 156,977 | 9,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (21,416) | (21,416) | ||||
Other comprehensive loss | (566) | (566) | ||||
Stock-based compensation expense | 19,394 | 19,394 | ||||
Amounts related to settlement of equity awards | (2) | (2) | ||||
Amounts related to settlement of equity awards (in shares) | 47 | |||||
Balance at end of period at Sep. 30, 2022 | 346,839 | $ 1,570 | $ 94 | 756,631 | (410,252) | (1,204) |
Balance at end of period (in shares) at Sep. 30, 2022 | 157,024 | 9,399 | ||||
Balance at beginning of period at Dec. 31, 2022 | 353,858 | $ 1,572 | $ 94 | 768,390 | (415,367) | (831) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 157,187 | 9,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 13,637 | 13,637 | ||||
Other comprehensive loss | (425) | (425) | ||||
Stock-based compensation expense | 5,429 | 5,429 | ||||
Amounts related to settlement of equity awards | (5,779) | $ 23 | (5,802) | |||
Amounts related to settlement of equity awards (in shares) | 2,365 | |||||
Restricted Stock Award | 0 | $ (16) | 16 | |||
Restricted Stock Award (in shares) | (1,624) | |||||
Balance at end of period at Sep. 30, 2023 | 366,720 | $ 1,579 | $ 94 | 768,033 | (401,730) | (1,256) |
Balance at end of period (in shares) at Sep. 30, 2023 | 157,928 | 9,399 | ||||
Balance at beginning of period at Jun. 30, 2023 | 352,893 | $ 1,574 | $ 94 | 762,000 | (410,194) | (581) |
Balance at beginning of period (in shares) at Jun. 30, 2023 | 157,439 | 9,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 8,464 | 8,464 | ||||
Other comprehensive loss | (675) | (675) | ||||
Stock-based compensation expense | 7,122 | 7,122 | ||||
Amounts related to settlement of equity awards | (1,084) | $ 5 | (1,089) | |||
Amounts related to settlement of equity awards (in shares) | 489 | |||||
Balance at end of period at Sep. 30, 2023 | $ 366,720 | $ 1,579 | $ 94 | $ 768,033 | $ (401,730) | $ (1,256) |
Balance at end of period (in shares) at Sep. 30, 2023 | 157,928 | 9,399 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Class B common stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 13,637 | $ (74,476) |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 5,429 | 52,259 |
Amortization of intangibles | 2,491 | 3,866 |
Depreciation | 1,198 | 2,054 |
Provision for credit losses | 326 | 7,750 |
Loss on the sale of an asset | 37 | 0 |
Non-cash lease expense | 3,410 | 4,646 |
Other adjustments, net | 1,053 | (719) |
Changes in assets and liabilities: | ||
Accounts receivable | 3,453 | (11,916) |
Prepaid expenses and other assets | (1,987) | (1,556) |
Accounts payable and other liabilities | (6,210) | (19,179) |
Deferred revenue | 4,966 | (1,485) |
Net cash provided by (used in) operating activities | 27,803 | (38,756) |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | 21 |
Capital expenditures | (108) | (670) |
Proceeds from the sale of an asset | 639 | 1,611 |
Net cash provided by investing activities | 531 | 962 |
Cash flows from financing activities: | ||
Withholding taxes paid related to equity awards | (5,697) | (5,160) |
Proceeds from exercise of stock options | 134 | 18 |
Contingent consideration payment | (5,774) | (4,816) |
Other | (266) | (621) |
Net cash used in financing activities | (11,603) | (10,579) |
Total cash provided (used) | 16,731 | (48,373) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (674) | (765) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 16,057 | (49,138) |
Cash and cash equivalents and restricted cash at beginning of period | 274,834 | 322,345 |
Cash and cash equivalents and restricted cash at end of period | $ 290,891 | $ 273,207 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
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," "we," "our" or "us" and similar terms in these consolidated financial statements refer to Vimeo, 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. For more information regarding the Spin-off, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Basis of Presentation and Consolidation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements include all adjustments considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The information included in this Form 10-Q should be read in conjunction with the annual audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 . All intercompany transactions and balances between and among Vimeo and its subsidiaries have been eliminated. All related party transactions between Vimeo and IAC and its subsidiaries, other than amounts related to the settlement of equity awards are reflected in the accompanying consolidated statement of cash flows as operating activities. Amounts related to the settlement of equity awards are reflected in the accompanying consolidated statement of cash flows as financing activities. 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 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. Significant estimates and judgments inherent in the preparation of the accompanying consolidated financial statements include those related to: the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of the estimated customer relationship period for certain costs to obtain a contract with a customer; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of intangible assets with definite lives; the recoverability of goodwill; contingencies; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. Vimeo bases its estimates, judgments and assumptions on historical experience, its forecasts and budgets and other factors that Vimeo considers relevant. Recent Accounting Pronouncements There are no recently issued accounting pronouncements that have not yet been adopted that are expected to have a material effect on the consolidated results of operations, financial condition or cash flows of Vimeo. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE 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. Disaggregated revenue is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: Self-Serve & Add-Ons $ 71,935 $ 76,737 $ 214,358 $ 231,074 Vimeo Enterprise 15,220 9,960 39,691 28,856 Other 19,098 21,436 57,621 67,534 Total $ 106,253 $ 108,133 $ 311,670 $ 327,464 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 three and nine months ended September 30, 2023 and 2022 . Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: United States $ 57,272 $ 55,586 $ 166,171 $ 165,467 All other countries 48,981 52,547 145,499 161,997 Total $ 106,253 $ 108,133 $ 311,670 $ 327,464 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. The current and non-current deferred revenue balances are included in the accompanying consolidated balance sheet as follows: September 30, December 31, (In thousands) Deferred revenue $ 169,857 $ 167,388 Other long-term liabilities 1,311 1,286 During the nine months ended September 30, 2023, Vimeo recognized $155.2 million of revenue that was included in the deferred revenue balance at December 31, 2022. During the nine months ended September 30, 2022, Vimeo recognized $166.0 million of revenue that was included in the deferred revenue balance at December 31, 2021. 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. 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. 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: September 30, December 31, (In thousands) Prepaid expenses and other current assets $ 4,921 $ 4,168 Other non-current assets 8,163 7,988 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES At the end of each interim period, Vimeo estimates the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss with discrete items recorded in the period. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained, or Vimeo's tax environment changes. For the three months ended September 30, 2023 and 2022, Vimeo recorded an income tax provision of $0.9 million and $0.6 million, respectively. For the nine months ended September 30, 2023 and 2022, Vimeo recorded an income tax provision of $2.1 million and $1.4 million, respectively. Vimeo's largest deferred tax assets are tax attribute carryforwards as well as capitalized research and development expenses. Vimeo has recorded a valuation allowance for the majority of its net deferred tax assets because it has concluded that it is more likely than not that the tax benefit will not be realized. At September 30, 2023 and December 31, 2022, unrecognized tax benefits were $3.5 million and $2.5 million, respectively. If unrecognized tax benefits at September 30, 2023 are subsequently recognized, there would be no impact to income tax provision due to the valuation allowance on deferred tax assets . Vimeo believes no unrecognized tax benefits would decrease by September 30, 2024. Vimeo recognizes interest and penalties related to unrecognized tax benefits, if applicable, in income tax provision. There are currently no accruals for interest or penalties. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 Quoted Market Significant Significant Total (In thousands) Assets: Money market funds $ 262,701 $ — $ — $ 262,701 Time deposits — 1,684 — 1,684 Total $ 262,701 $ 1,684 $ — $ 264,385 Liabilities: Contingent consideration arrangements $ — $ — $ — $ — 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 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 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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ 2,977 $ 13,108 $ 7,845 $ 12,200 Total net (gains) losses: Included in operating income (loss) (500) 15 (396) (654) Measurement period adjustments — — — 1,577 Settlements (2,477) (4,816) (7,449) (4,816) Balance at end of period $ — $ 8,307 $ — $ 8,307 Contingent Consideration Arrangements The contingent consideration arrangement for Wibbitz Ltd. ("Wibbitz"), the acquisition of which the Company completed on November 10, 2021, was based upon the amount of annual recurring revenue ("ARR") from Wibbitz subscribers who were expected to migrate to the Vimeo platform. In the third quarter of 2023, the contingent consideration arrangement was finalized, which resulted in a payment of $2.5 million to Wibbitz's former shareholders, and a $0.5 million gain was recorded within "General and administrative expense" in the accompanying consolidated statement of operations. In the accompanying consolidated statement of cash flows, the final $2.5 million payment is included in "Contingent consideration payment" within financing activities. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY | REVOLVING CREDIT FACILITYEffective June 30, 2023, Vimeo.com, Inc. terminated the $100 million revolving credit facility (the "Credit Facility") set to expire February 12, 2026, under, and in accordance with the terms of, that certain credit agreement, dated as of February 12, 2021, among Vimeo.com, Inc., as borrower, the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent. In connection with such termination, a letter of credit issued under the Credit Facility was cash collateralized, all other outstanding obligations were paid off in full and all liens securing the Credit Facility were released. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
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 (the "Board") 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 The Board 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. Stock Repurchase Program On February 25, 2022, the Board 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 nine months ended September 30, 2023. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisting of foreign currency translation adjustments is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ (581) $ (638) $ (831) $ (86) Other comprehensive loss (675) (566) (425) (1,118) Balance at end of period $ (1,256) $ (1,204) $ (1,256) $ (1,204) At both September 30, 2023 and 2022, there was no tax benefit or provision on accumulated other comprehensive loss. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Vimeo Restricted Shares On March 23, 2023, the Company announced in a Current Report on Form 8-K filed with the SEC that Joseph Levin, Chairman and member of the Board and IAC's Chief Executive Officer, submitted his resignation as Chairman and member of the Board, effective immediately. Mr. Levin’s resignation was not the result of any dispute or disagreement with the Company or the Board. Mr. Levin now serves as Special Advisor to the Board. In connection with Mr. Levin's resignation, the Company entered into an amended and restated Restricted Stock Agreement, dated as of March 20, 2023 (the "Amended RSA") to the Restricted Stock Agreement, dated as of June 7, 2021, by and between the Company and Mr. Levin (the "RSA"). Pursuant to the Amended RSA, the RSA will continue in connection with Mr. Levin's service as Special Advisor to the Board. In consideration of Mr. Levin's reduced services as Special Advisor in comparison to his services previously provided as Chairman and Board member, the Amended RSA reduces the total number of shares of Vimeo common stock underlying the RSA by one-third, to a total of 3,247,000 shares ("Vimeo Restricted Shares"), that cliff vest on November 5, 2030 based on satisfaction of certain Vimeo stock price targets and Mr. Levin's continuous service as a Special Advisor through the vesting date. Mr. Levin may elect to accelerate vesting of the Vimeo Restricted Shares, effective on November 5, 2026 and each year thereafter through November 5, 2029, in which case performance will be measured through such date, and Mr. Levin will receive a pro-rated portion of the award and any remaining shares will be forfeited. The applicable stock price goals are proportionately lower on the earlier vesting dates. The Company accounted for these changes as a modification of the Vimeo Restricted Shares because the service condition of the RSA was not met due to Mr. Levin's resignation as Chairman of the Board, but the RSA will continue in connection with Mr. Levin's reduced services as Special Advisor. Accordingly, in the three months ended March 31, 2023, the Company reversed $14.8 million of stock-based compensation expense which represents the cumulative amount of such stock-based compensation expense recognized in "General and administrative expense" in the accompanying consolidated statement of operations since entering into the RSA with Mr. Levin. The fair value of the Vimeo Restricted Shares underlying the Amended RSA on the modification date was $2.3 million and is expected to be recognized over the remaining requisite service period through November 5, 2030, subject to Mr. Levin's continued service as Special Advisor. The fair value of the Vimeo Restricted Shares was determined using a lattice model that incorporated a Monte Carlo simulation of Vimeo's stock price as this award contains a market condition. CEO Market-Based Award On March 21, 2023, the Company and Anjali Sud, Vimeo's CEO, entered into an Amended and Restated Restricted Stock Unit Award Agreement (the "Amended RSU Agreement"), which amended and restated the existing Restricted Stock Unit Award Agreement between the Company and Ms. Sud dated March 25, 2022 (the "Original Award Agreement") to revise the vesting schedule and stock performance targets of the Original Award Agreement. The Company accounted for these changes as a modification, which was originally expected to result in incremental stock-based compensation expense of $2.2 million. On July 5, 2023, the Company announced in a Current Report on Form 8-K filed with the SEC that Ms. Sud notified the Company on June 30, 2023 of her intention to step down from her role as CEO effective as of August 31, 2023, and as a result, this award was forfeited upon Ms. Sud's departure. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (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. Vimeo calculates basic EPS using the two-class method since the Vimeo Restricted Shares are participating securities as they 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. Diluted EPS is calculated, on the most dilutive basis, which excludes equity awards that would be anti-dilutive. The computation of basic and diluted earnings (loss) per share attributable to common shareholders is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands, except per share data) Basic EPS: Numerator: Net earnings (loss) $ 8,464 $ (21,416) $ 13,637 $ (74,476) Less: Net earnings attributed to participating security (164) — (304) — Net earnings (loss) attributable to common stock shareholders $ 8,300 $ (21,416) $ 13,333 $ (74,476) Denominator: (a) Weighted average basic common shares outstanding 163,877 161,529 162,822 161,433 Earnings (loss) per share attributable to common stock shareholders: Earnings (loss) per share $ 0.05 $ (0.13) $ 0.08 $ (0.46) Diluted EPS: Numerator: Net earnings (loss) $ 8,464 $ (21,416) $ 13,637 $ (74,476) Less: Net earnings attributed to participating security (162) — (301) — Net earnings (loss) attributable to common stock shareholders $ 8,302 $ (21,416) $ 13,336 $ (74,476) Denominator: (a) Weighted average basic common shares outstanding 163,877 161,529 162,822 161,433 Dilutive securities 2,029 — 2,098 — Weighted average diluted common shares outstanding 165,906 161,529 164,920 161,433 Antidilutive securities 20,059 35,055 22,674 35,055 Earnings (loss) per share attributable to common stock shareholders: Earnings (loss) per share $ 0.05 $ (0.13) $ 0.08 $ (0.46) _____________________ |
FINANCIAL STATEMENT DETAILS
FINANCIAL STATEMENT DETAILS | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 (In thousands) Cash and cash equivalents $ 290,564 $ 274,497 $ 272,870 $ 321,900 Restricted cash included in Prepaid expenses and other current assets 327 337 337 445 Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows $ 290,891 $ 274,834 $ 273,207 $ 322,345 Restricted cash primarily consisted of deposits related to a lease and corporate credit cards. Credit Losses The changes in the allowance for credit losses are as follows: Nine Months Ended September 30, 2023 2022 (In thousands) Balance at beginning of period $ 5,183 $ 1,324 Provision for credit losses 326 7,750 Write-offs charged against the allowance (3,683) (4,726) Recoveries collected 800 757 Currency translation adjustment 5 (11) Balance at end of period $ 2,631 $ 5,094 Accumulated Amortization and Depreciation Accumulated amortization and depreciation within the accompanying consolidated balance sheet are as follows: Asset Category September 30, 2023 December 31, 2022 (In thousands) ROU assets included in Other non-current assets $ 13,497 $ 10,087 Leasehold improvements and equipment $ 1,305 $ 784 Intangible assets with definite lives $ 47,283 $ 44,792 Other income, net The components of "Other income, net" are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Foreign exchange gains, net $ 308 $ 961 $ 245 $ 2,016 Interest income 3,349 1,238 9,027 1,696 Loss on sale of an asset — — (37) — Other income, net $ 3,657 $ 2,199 $ 9,235 $ 3,712 Geographic Concentrations Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at September 30, 2023 and December 31, 2022 relate to "Leasehold improvements and equipment, net." September 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 524 $ 537 All other countries 330 818 Total $ 854 $ 1,355 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES In the ordinary course of business, Vimeo is, and from time to time may become, a party to various legal proceedings. Vimeo establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where it believes an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against Vimeo, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations or financial condition of Vimeo, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. Vimeo also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations or financial condition of Vimeo. See "Note 3—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 was 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 and argued. 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 €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 1, 2023 RTI filed an action in the Supreme Court of New York, New York County to enforce the Civil Court's judgment of €8,500,000 (No. 652646/2023). The case was removed to federal court and is now pending in the Southern District of New York. See Reti Televisive Italiane S.p.A. v. Vimeo.com, Inc, No. 23 Civ. 05488 (S.D.N.Y.). 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 €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 Appeals declined to stay the judgment. 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. On October 12, 2023, the Rome Court of Appeals published its decision affirming the lower court's judgment on liability but reducing the amount of damages to €3,865,161 plus interests and costs. On October 20, 2023, the U.S. District Court for the Southern District of New York entered an order lifting the stay of the U.S. enforcement proceedings (No. 20 Civ. 8954) and consolidating the two enforcement proceedings (No. 20 Civ. 8954 and No. 23 Civ. 05488). Vimeo has until November 10, 2023 to file a motion to stay or dismiss the cases. On April 7, 2023, the Civil Court of Rome published a decision finding in favor of Vimeo and dismissing the third case (No. 59780/2017) in its entirety. On October 9, 2023, RTI served Vimeo with its appeal challenging the court 's decision in the third case. 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 and damages to be quantified in a separate proceeding. Additionally, the complaint seeks potential penalties of €10,000 per day of delay in removing unauthorized works after receipt of a court order to do so, if applicable. 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 19, 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 $2.3 million settlement on January 20, 2023 . On August 3, 2023, the court entered an order granting final approval of the settlement agreement and dismissing the case with prejudice and Vimeo paid the settlement amount during the third quarter of 2023. Vimeo denies liability in connection with this lawsuit. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSFollowing 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. The total related charges for the three and nine months ended September 30, 2023 and 2022 were both $0.8 million, and $1.3 million and $3.6 million, respectively. During the three and nine months ended September 30, 2023 these charges included $0.8 million related to Vimeo's coverage prior to the Spin-off under IAC's membership with a patent risk management service, RPX Corporation. At September 30, 2023, Vimeo had a current payable due to IAC of $0.8 million, which was related to the RPX membership and included in " Accrued expenses and other current liabilities Upon the completion of the Spin-off, Vimeo entered into an operating lease agreement with IAC for the space Vimeo had previously occupied in IAC's headquarters building at 555 West 18th Street in New York City. Vimeo exited this space on June 30, 2022. Additionally i n 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. I n 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 September 30, 2023 and December 31, 2022 Vimeo h ad a current lease liability of $2.3 million and $2.0 million included in " Accrued expenses and other current liabilities $11.3 million and $13.0 million included in " Other long-term liabilities |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING During the quarters ended March 31, 2023 and September 30, 2022 , the Company completed evaluations to sufficient levels of detail to commit to restructuring plans that resulted in reductions to its workforce of approximately 11% and 6% of its employees, respectively. One-time termination benefits provided as part of the restructuring plans include severance, continuation of health insurance coverage and other benefits for a specified period of time, which resulted in $4.9 million of restructuring costs for the nine months ended September 30, 2023 and $4.2 million of restructuring costs for the three and nine months ended September 30, 2022. Costs related to these restructuring plans have been recognized in the accompanying consolidated statement of operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Restructuring costs: Cost of revenue $ — $ — $ 298 $ — Research and development expense — 2,282 2,813 2,282 Sales and marketing expense — 1,133 1,078 1,133 General and administrative expense — 768 699 768 Total $ — $ 4,183 $ 4,888 $ 4,183 As of September 30, 2023, all payments under the restructuring plans have been made. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings (loss) | $ 8,464 | $ (21,416) | $ 13,637 | $ (74,476) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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," "we," "our" or "us" and similar terms in these consolidated financial statements refer to Vimeo, Inc. and its subsidiaries (unless the context requires otherwise). |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements include all adjustments considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The information included in this Form 10-Q should be read in conjunction with the annual audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 . All intercompany transactions and balances between and among Vimeo and its subsidiaries have been eliminated. All related party transactions between Vimeo and IAC and its subsidiaries, other than amounts related to the settlement of equity awards are reflected in the accompanying consolidated statement of cash flows as operating activities. Amounts related to the settlement of equity awards are reflected in the accompanying consolidated statement of cash flows as financing activities. Accrued expenses and other current liabilities |
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. Significant estimates and judgments inherent in the preparation of the accompanying consolidated financial statements include those related to: the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of the estimated customer relationship period for certain costs to obtain a contract with a customer; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of intangible assets with definite lives; the recoverability of goodwill; contingencies; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. Vimeo bases its estimates, judgments and assumptions on historical experience, its forecasts and budgets and other factors that Vimeo considers relevant. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recently issued accounting pronouncements that have not yet been adopted that are expected to have a material effect on the consolidated results of operations, financial condition or cash flows of Vimeo. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
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. 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. 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. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Disaggregated revenue is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: Self-Serve & Add-Ons $ 71,935 $ 76,737 $ 214,358 $ 231,074 Vimeo Enterprise 15,220 9,960 39,691 28,856 Other 19,098 21,436 57,621 67,534 Total $ 106,253 $ 108,133 $ 311,670 $ 327,464 |
Schedule of Revenue and Long-lived Assets by Geographic Area | 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 three and nine months ended September 30, 2023 and 2022 . Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: United States $ 57,272 $ 55,586 $ 166,171 $ 165,467 All other countries 48,981 52,547 145,499 161,997 Total $ 106,253 $ 108,133 $ 311,670 $ 327,464 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at September 30, 2023 and December 31, 2022 relate to "Leasehold improvements and equipment, net." September 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 524 $ 537 All other countries 330 818 Total $ 854 $ 1,355 |
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: September 30, December 31, (In thousands) Deferred revenue $ 169,857 $ 167,388 Other long-term liabilities 1,311 1,286 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: September 30, December 31, (In thousands) Prepaid expenses and other current assets $ 4,921 $ 4,168 Other non-current assets 8,163 7,988 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 Quoted Market Significant Significant Total (In thousands) Assets: Money market funds $ 262,701 $ — $ — $ 262,701 Time deposits — 1,684 — 1,684 Total $ 262,701 $ 1,684 $ — $ 264,385 Liabilities: Contingent consideration arrangements $ — $ — $ — $ — 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 |
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | 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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ 2,977 $ 13,108 $ 7,845 $ 12,200 Total net (gains) losses: Included in operating income (loss) (500) 15 (396) (654) Measurement period adjustments — — — 1,577 Settlements (2,477) (4,816) (7,449) (4,816) Balance at end of period $ — $ 8,307 $ — $ 8,307 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisting of foreign currency translation adjustments is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Balance at beginning of period $ (581) $ (638) $ (831) $ (86) Other comprehensive loss (675) (566) (425) (1,118) Balance at end of period $ (1,256) $ (1,204) $ (1,256) $ (1,204) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) per Share | The computation of basic and diluted earnings (loss) per share attributable to common shareholders is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands, except per share data) Basic EPS: Numerator: Net earnings (loss) $ 8,464 $ (21,416) $ 13,637 $ (74,476) Less: Net earnings attributed to participating security (164) — (304) — Net earnings (loss) attributable to common stock shareholders $ 8,300 $ (21,416) $ 13,333 $ (74,476) Denominator: (a) Weighted average basic common shares outstanding 163,877 161,529 162,822 161,433 Earnings (loss) per share attributable to common stock shareholders: Earnings (loss) per share $ 0.05 $ (0.13) $ 0.08 $ (0.46) Diluted EPS: Numerator: Net earnings (loss) $ 8,464 $ (21,416) $ 13,637 $ (74,476) Less: Net earnings attributed to participating security (162) — (301) — Net earnings (loss) attributable to common stock shareholders $ 8,302 $ (21,416) $ 13,336 $ (74,476) Denominator: (a) Weighted average basic common shares outstanding 163,877 161,529 162,822 161,433 Dilutive securities 2,029 — 2,098 — Weighted average diluted common shares outstanding 165,906 161,529 164,920 161,433 Antidilutive securities 20,059 35,055 22,674 35,055 Earnings (loss) per share attributable to common stock shareholders: Earnings (loss) per share $ 0.05 $ (0.13) $ 0.08 $ (0.46) _____________________ |
FINANCIAL STATEMENT DETAILS (Ta
FINANCIAL STATEMENT DETAILS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 (In thousands) Cash and cash equivalents $ 290,564 $ 274,497 $ 272,870 $ 321,900 Restricted cash included in Prepaid expenses and other current assets 327 337 337 445 Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows $ 290,891 $ 274,834 $ 273,207 $ 322,345 |
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: September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 (In thousands) Cash and cash equivalents $ 290,564 $ 274,497 $ 272,870 $ 321,900 Restricted cash included in Prepaid expenses and other current assets 327 337 337 445 Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows $ 290,891 $ 274,834 $ 273,207 $ 322,345 |
Schedule of Changes in Allowance for Credit Losses | The changes in the allowance for credit losses are as follows: Nine Months Ended September 30, 2023 2022 (In thousands) Balance at beginning of period $ 5,183 $ 1,324 Provision for credit losses 326 7,750 Write-offs charged against the allowance (3,683) (4,726) Recoveries collected 800 757 Currency translation adjustment 5 (11) Balance at end of period $ 2,631 $ 5,094 |
Schedule of Accumulated Depreciation and Amortization | Accumulated amortization and depreciation within the accompanying consolidated balance sheet are as follows: Asset Category September 30, 2023 December 31, 2022 (In thousands) ROU assets included in Other non-current assets $ 13,497 $ 10,087 Leasehold improvements and equipment $ 1,305 $ 784 Intangible assets with definite lives $ 47,283 $ 44,792 |
Schedule of Other Income, Net | The components of "Other income, net" are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Foreign exchange gains, net $ 308 $ 961 $ 245 $ 2,016 Interest income 3,349 1,238 9,027 1,696 Loss on sale of an asset — — (37) — Other income, net $ 3,657 $ 2,199 $ 9,235 $ 3,712 |
Schedule of Revenue and Long-lived Assets by Geographic Area | 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 three and nine months ended September 30, 2023 and 2022 . Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: United States $ 57,272 $ 55,586 $ 166,171 $ 165,467 All other countries 48,981 52,547 145,499 161,997 Total $ 106,253 $ 108,133 $ 311,670 $ 327,464 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at September 30, 2023 and December 31, 2022 relate to "Leasehold improvements and equipment, net." September 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 524 $ 537 All other countries 330 818 Total $ 854 $ 1,355 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs Recognized in Consolidated Statement of Operations | Costs related to these restructuring plans have been recognized in the accompanying consolidated statement of operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Restructuring costs: Cost of revenue $ — $ — $ 298 $ — Research and development expense — 2,282 2,813 2,282 Sales and marketing expense — 1,133 1,078 1,133 General and administrative expense — 768 699 768 Total $ — $ 4,183 $ 4,888 $ 4,183 |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue and Revenue and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 106,253 | $ 108,133 | $ 311,670 | $ 327,464 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57,272 | 55,586 | 166,171 | 165,467 |
All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48,981 | 52,547 | 145,499 | 161,997 |
Self-Serve & Add-Ons | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 71,935 | 76,737 | 214,358 | 231,074 |
Vimeo Enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,220 | 9,960 | 39,691 | 28,856 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 19,098 | $ 21,436 | $ 57,621 | $ 67,534 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue recognized during period | $ 155.2 | $ 166 | ||
United States | Revenue Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percent (greater than) | 10% | 10% | 10% | 10% |
REVENUE - Schedule of Current a
REVENUE - Schedule of Current and Non-current Balances of Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 169,857 | $ 167,388 |
Other long-term liabilities | $ 1,311 | $ 1,286 |
REVENUE - Schedule of Current_2
REVENUE - Schedule of Current and Non-current Contract Asset Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses and other current assets | $ 4,921 | $ 4,168 |
Other non-current assets | $ 8,163 | $ 7,988 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 876 | $ 609 | $ 2,073 | $ 1,387 | |
Unrecognized tax benefits | $ 3,500 | $ 3,500 | $ 2,500 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Total | $ 264,385 | $ 250,269 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 7,845 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 262,701 | 249,422 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 1,684 | 847 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 7,845 |
Money market funds | ||
Assets: | ||
Total | 262,701 | 249,422 |
Money market funds | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 262,701 | 249,422 |
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 | 1,684 | 847 |
Time deposits | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets: | ||
Total | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 1,684 | 847 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Contingent Consideration Liability - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Contingent Consideration Arrangements | ||||
Balance at beginning of period | $ 2,977 | $ 13,108 | $ 7,845 | $ 12,200 |
Included in operating income (loss) | (500) | 15 | (396) | (654) |
Measurement period adjustments | 0 | 0 | 0 | 1,577 |
Settlements | (2,477) | (4,816) | (7,449) | (4,816) |
Balance at end of period | $ 0 | $ 8,307 | $ 0 | $ 8,307 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Contingent consideration payment | $ 5,774 | $ 4,816 | ||||
Contingent consideration arrangements | $ 0 | 0 | $ 7,845 | |||
Accounts payable and other liabilities | (6,210) | $ (19,179) | ||||
Wibbitz | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration payment | 2,500 | $ 2,500 | ||||
Contingent consideration arrangements, gain (loss) | $ 500 | |||||
Wirewax | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration payment | $ 4,800 | |||||
Contingent consideration arrangements, gain (loss) | $ (100) | |||||
Revenue threshold term (in years) | 2 years | |||||
Contingent consideration arrangements | $ 5,000 | |||||
Wirewax | Contingent Consideration Liability | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration payment | $ 3,300 | |||||
Accounts payable and other liabilities | $ 1,700 |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) | Sep. 30, 2023 USD ($) |
Revolving Credit Facility | Vimeo Credit Facility | |
Revolving Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 100,000,000 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | 9 Months Ended | |||
Sep. 30, 2023 vote shares | Dec. 31, 2022 shares | Feb. 25, 2022 USD ($) | May 25, 2021 shares | |
Shareholders' Equity [Line Items] | ||||
Stock repurchase, authorized amount (up to) | $ | $ 50,000,000 | |||
Number of shares repurchased (in shares) | 0 | |||
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) | 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) | 400,000,000 | 400,000,000 | 400,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | $ 352,893,000 | $ 349,429,000 | $ 353,858,000 | $ 370,595,000 |
Other comprehensive loss | (675,000) | (566,000) | (425,000) | (1,118,000) |
Balance at end of period | 366,720,000 | 346,839,000 | 366,720,000 | 346,839,000 |
Income tax provision (benefit) | 876,000 | 609,000 | 2,073,000 | 1,387,000 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | (581,000) | (638,000) | (831,000) | (86,000) |
Other comprehensive loss | (675,000) | (566,000) | (425,000) | (1,118,000) |
Balance at end of period | (1,256,000) | (1,204,000) | (1,256,000) | (1,204,000) |
Income tax provision (benefit) | 0 | 0 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Loss | ||||
Other comprehensive loss | $ (675,000) | $ (566,000) | $ (425,000) | $ (1,118,000) |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 20, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reversal of stock-based compensation expense | $ (7,122) | $ (19,394) | $ (5,429) | $ (52,259) | ||
Expected incremental stock-based compensation expense | 2,200 | |||||
General and administrative expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reversal of stock-based compensation expense | $ (2,979) | $ (8,212) | $ 14,337 | $ (25,880) | ||
Director | Restricted Stock | Restricted Stock Agreement | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reduction of shares authorized for issuance | 33% | |||||
Shares authorized for issuance (in shares) | 3,247,000 | |||||
Director | Restricted Stock | Restricted Stock Agreement | General and administrative expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reversal of stock-based compensation expense | $ 14,800 | |||||
Unrecognized compensation cost, net | $ 2,300 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net earnings (loss) | $ 8,464 | $ (21,416) | $ 13,637 | $ (74,476) |
Less: Net earnings attributed to participating security | (164) | 0 | (304) | 0 |
Net earnings (loss) attributable to common stock shareholders | $ 8,300 | $ (21,416) | $ 13,333 | $ (74,476) |
Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 163,877 | 161,529 | 162,822 | 161,433 |
Earnings (loss) per share attributable to common stock shareholders: | ||||
Earnings (loss) per share, basic (USD per share) | $ 0.05 | $ (0.13) | $ 0.08 | $ (0.46) |
Numerator: | ||||
Net earnings (loss) | $ 8,464 | $ (21,416) | $ 13,637 | $ (74,476) |
Less: Net earnings attributed to participating security | (162) | 0 | (301) | 0 |
Net earnings (loss) attributable to common stock shareholders | $ 8,302 | $ (21,416) | $ 13,336 | $ (74,476) |
Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 163,877 | 161,529 | 162,822 | 161,433 |
Dilutive securities (in shares) | 2,029 | 0 | 2,098 | 0 |
Weighted average diluted common shares outstanding (in shares) | 165,906 | 161,529 | 164,920 | 161,433 |
Antidilutive securities (in shares) | 20,059 | 35,055 | 22,674 | 35,055 |
Earnings (loss) per share attributable to common stock shareholders: | ||||
Earnings (loss) per share, diluted (USD per share) | $ 0.05 | $ (0.13) | $ 0.08 | $ (0.46) |
FINANCIAL STATEMENT DETAILS - S
FINANCIAL STATEMENT DETAILS - Schedule of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 290,564 | $ 274,497 | $ 272,870 | $ 321,900 |
Restricted cash included in Prepaid expenses and other current assets | 327 | 337 | 337 | 445 |
Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows | $ 290,891 | $ 274,834 | $ 273,207 | $ 322,345 |
FINANCIAL STATEMENT DETAILS -_2
FINANCIAL STATEMENT DETAILS - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 5,183 | $ 1,324 |
Provision for credit losses | 326 | 7,750 |
Write-offs charged against the allowance | (3,683) | (4,726) |
Recoveries collected | 800 | 757 |
Currency translation adjustment | 5 | (11) |
Balance at end of period | $ 2,631 | $ 5,094 |
FINANCIAL STATEMENT DETAILS -_3
FINANCIAL STATEMENT DETAILS - Schedule of Accumulated Amortization and Depreciation (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ROU assets included in Other non-current assets | $ 13,497 | $ 10,087 |
Leasehold improvements and equipment | 1,305 | 784 |
Intangible assets with definite lives | $ 47,283 | $ 44,792 |
FINANCIAL STATEMENT DETAILS -_4
FINANCIAL STATEMENT DETAILS - Schedule of Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Foreign exchange gains, net | $ 308 | $ 961 | $ 245 | $ 2,016 |
Interest income | 3,349 | 1,238 | 9,027 | 1,696 |
Loss on sale of an asset | 0 | 0 | (37) | 0 |
Other income, net | $ 3,657 | $ 2,199 | $ 9,235 | $ 3,712 |
FINANCIAL STATEMENT DETAILS -_5
FINANCIAL STATEMENT DETAILS - Schedule of Revenue and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Leasehold improvements and equipment, net | $ 854 | $ 1,355 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Leasehold improvements and equipment, net | 524 | 537 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Leasehold improvements and equipment, net | $ 330 | $ 818 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 72 Months Ended | |||||||
Oct. 12, 2023 EUR (€) | Jun. 01, 2023 EUR (€) | Jan. 20, 2023 USD ($) | Jun. 02, 2019 EUR (€) | Jan. 15, 2019 EUR (€) | Sep. 18, 2013 video | Mar. 31, 2021 EUR (€) | Dec. 31, 2009 lawsuit video | Sep. 30, 2023 USD ($) | 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 | Denied Summary Judgement | ||||||||||
Contingencies [Line Items] | ||||||||||
Number of videos | 35 | |||||||||
EMI/Capitol Records Copyright Infringement Litigation | Judicial Ruling | ||||||||||
Contingencies [Line Items] | ||||||||||
Number of videos | 20 | |||||||||
Amended number of videos | 1,500 | |||||||||
RTI Copyright Litigation | ||||||||||
Contingencies [Line Items] | ||||||||||
Number of lawsuits | lawsuit | 4 | |||||||||
Damages awarded, value | € | € 8,500,000 | € 4,746,273 | € 8,500,000 | |||||||
RTI Copyright Litigation | Subsequent Event | ||||||||||
Contingencies [Line Items] | ||||||||||
Damages awarded, value | € | € 3,865,161 | |||||||||
Sony, Universal, Warner Copyright | ||||||||||
Contingencies [Line Items] | ||||||||||
Penalty payment per day of delay | € | € 10,000 | |||||||||
Illinois Biometric Information Privacy Act | ||||||||||
Contingencies [Line Items] | ||||||||||
Settlement amount approved | $ | $ 2.3 | |||||||||
Settlement paid | $ | $ 2.3 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Accrued expenses and other current liabilities | $ 50,812 | $ 50,812 | $ 57,151 | ||
Operating lease, liability, current, statement of financial position | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |||
Operating lease, liability, noncurrent, statement of financial position | Other long-term liabilities | Other long-term liabilities | |||
Affiliated Entity | IAC | |||||
Related Party Transaction [Line Items] | |||||
Accrued expenses and other current liabilities | $ 800 | $ 800 | |||
Current lease liability | 2,300 | 2,300 | 2,000 | ||
Non-current lease liability | 11,300 | 11,300 | $ 13,000 | ||
Affiliated Entity | IAC Health and Welfare Benefit Plans and Other Non-Occupancy | IAC | |||||
Related Party Transaction [Line Items] | |||||
Expenses incurred with related party | 800 | $ 1,300 | 800 | $ 3,600 | |
Affiliated Entity | IAC Health And Welfare Benefit Plans And Other Non-Occupancy, Coverage Prior To Spin-Off | IAC | |||||
Related Party Transaction [Line Items] | |||||
Expenses incurred with related party | 800 | 800 | |||
Affiliated Entity | IAC Headquarters Occupancy and Subsidiary of Angi Occupancy | IAC | |||||
Related Party Transaction [Line Items] | |||||
Rent expense | $ 900 | $ 700 | $ 2,600 | $ 3,700 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |||||
Reduction of workforce (as a percent) | 11% | 6% | |||
Cost incurred for one-time termination benefits | $ 0 | $ 4,183 | $ 4,888 | $ 4,183 |
RESTRUCTURING - Schedule of Res
RESTRUCTURING - Schedule of Restructuring Costs Recognized in Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 4,183 | $ 4,888 | $ 4,183 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | 298 | 0 |
Research and development expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 2,282 | 2,813 | 2,282 |
Sales and marketing expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 1,133 | 1,078 | 1,133 |
General and administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 768 | $ 699 | $ 768 |