Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 $0.01 per share | |
Trading Symbol | VMEO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001837686 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 156,398,096 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,399,250 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 310,579 | $ 301,372 |
Accounts receivable, net | 25,263 | 26,605 |
Prepaid expenses and other current assets | 20,115 | 23,491 |
Total current assets | 355,957 | 351,468 |
Leasehold improvements and equipment, net | 538 | 607 |
Goodwill | 245,406 | 245,406 |
Intangible assets with definite lives, net | 1,934 | 2,629 |
Other non-current assets | 22,458 | 22,810 |
TOTAL ASSETS | 626,293 | 622,920 |
LIABILITIES: | ||
Accounts payable, trade | 3,412 | 4,696 |
Deferred revenue | 168,014 | 168,610 |
Accrued expenses and other current liabilities | 43,776 | 53,573 |
Total current liabilities | 215,202 | 226,879 |
Other long-term liabilities | 13,199 | 13,809 |
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 | 786,044 | 774,587 |
Accumulated deficit | (377,141) | (393,335) |
Accumulated other comprehensive loss | (937) | (699) |
Treasury stock, 3,037 and — shares, respectively | (11,771) | 0 |
Total shareholders' equity | 397,892 | 382,232 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 626,293 | 622,920 |
Common Stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | 1,603 | 1,585 |
Class B common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, value | $ 94 | $ 94 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 |
Treasury stock (in shares) | 3,037,000 | 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) | 160,265,000 | 158,511,000 |
Common stock outstanding (in shares) | 157,228,000 | 158,511,000 |
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 (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | $ 104,376 | $ 101,835 | $ 209,286 | $ 205,417 |
Cost of revenue (exclusive of depreciation shown separately below) | 22,678 | 22,845 | 46,121 | 46,517 |
Gross profit | 81,698 | 78,990 | 163,165 | 158,900 |
Operating expenses: | ||||
Research and development expense | 26,972 | 26,676 | 55,107 | 57,936 |
Sales and marketing expense | 27,676 | 39,764 | 59,981 | 79,751 |
General and administrative expense | 19,087 | 6,943 | 37,121 | 16,249 |
Depreciation | 154 | 102 | 211 | 1,030 |
Amortization of intangibles | 348 | 910 | 695 | 2,144 |
Total operating expenses | 74,237 | 74,395 | 153,115 | 157,110 |
Operating income | 7,461 | 4,595 | 10,050 | 1,790 |
Interest expense | 0 | (877) | 0 | (998) |
Other income, net | 3,881 | 2,934 | 7,697 | 5,578 |
Earnings before income taxes | 11,342 | 6,652 | 17,747 | 6,370 |
Income tax provision | (1,221) | (781) | (1,553) | (1,197) |
Net earnings | $ 10,121 | $ 5,871 | $ 16,194 | $ 5,173 |
Per share information: | ||||
Basic earnings per share (USD per share) | $ 0.06 | $ 0.04 | $ 0.10 | $ 0.03 |
Diluted earnings per share (USD per share) | $ 0.06 | $ 0.03 | $ 0.09 | $ 0.03 |
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | $ 8,380 | $ (584) | $ 15,352 | $ (1,693) |
Cost of revenue | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | 198 | 328 | 345 | 469 |
Research and development expense | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | 3,895 | 4,583 | 7,718 | 9,501 |
Sales and marketing expense | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | 824 | 3,166 | 2,645 | 5,653 |
General and administrative expense | ||||
Stock-based compensation expense by function: | ||||
Total stock-based compensation expense | $ 3,463 | $ (8,661) | $ 4,644 | $ (17,316) |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 10,121 | $ 5,871 | $ 16,194 | $ 5,173 |
Other comprehensive (loss) income: | ||||
Change in foreign currency translation adjustment | (114) | 378 | (238) | 250 |
Total other comprehensive (loss) income | (114) | 378 | (238) | 250 |
Comprehensive income | $ 10,007 | $ 6,249 | $ 15,956 | $ 5,423 |
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 | Treasury Stock |
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 | 5,173 | 5,173 | |||||
Other comprehensive income (loss) | 250 | 250 | |||||
Stock-based compensation expense | (1,693) | (1,693) | |||||
Amounts related to settlement of equity awards | (4,695) | $ 18 | (4,713) | ||||
Amounts related to settlement of equity awards (in shares) | 1,876 | ||||||
Restricted Stock Award | 0 | $ (16) | 16 | ||||
Restricted Stock Award (in shares) | (1,624) | ||||||
Balance at end of period at Jun. 30, 2023 | 352,893 | $ 1,574 | $ 94 | 762,000 | (410,194) | (581) | |
Balance at end of period (in shares) at Jun. 30, 2023 | 157,439 | 9,399 | |||||
Balance at beginning of period at Mar. 31, 2023 | 350,293 | $ 1,561 | $ 94 | 765,662 | (416,065) | (959) | |
Balance at beginning of period (in shares) at Mar. 31, 2023 | 156,054 | 9,399 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 5,871 | 5,871 | |||||
Other comprehensive income (loss) | 378 | 378 | |||||
Stock-based compensation expense | (584) | (584) | |||||
Amounts related to settlement of equity awards | (3,065) | $ 13 | (3,078) | ||||
Amounts related to settlement of equity awards (in shares) | 1,385 | ||||||
Balance at end of period at Jun. 30, 2023 | 352,893 | $ 1,574 | $ 94 | 762,000 | (410,194) | (581) | |
Balance at end of period (in shares) at Jun. 30, 2023 | 157,439 | 9,399 | |||||
Balance at beginning of period at Dec. 31, 2023 | 382,232 | $ 1,585 | $ 94 | 774,587 | (393,335) | (699) | $ 0 |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 158,511 | 9,399 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 16,194 | 16,194 | |||||
Other comprehensive income (loss) | (238) | (238) | |||||
Stock-based compensation expense | 15,352 | 15,352 | |||||
Amounts related to settlement of equity awards | (3,877) | $ 18 | (3,895) | ||||
Amounts related to settlement of equity awards (in shares) | 1,754 | ||||||
Purchase of treasury stock | (11,771) | (11,771) | |||||
Balance at end of period at Jun. 30, 2024 | 397,892 | $ 1,603 | $ 94 | 786,044 | (377,141) | (937) | (11,771) |
Balance at end of period (in shares) at Jun. 30, 2024 | 160,265 | 9,399 | |||||
Balance at beginning of period at Mar. 31, 2024 | 392,794 | $ 1,594 | $ 94 | 779,191 | (387,262) | (823) | 0 |
Balance at beginning of period (in shares) at Mar. 31, 2024 | 159,440 | 9,399 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 10,121 | 10,121 | |||||
Other comprehensive income (loss) | (114) | (114) | |||||
Stock-based compensation expense | 8,380 | 8,380 | |||||
Amounts related to settlement of equity awards | (1,518) | $ 9 | (1,527) | ||||
Amounts related to settlement of equity awards (in shares) | 825 | ||||||
Purchase of treasury stock | (11,771) | (11,771) | |||||
Balance at end of period at Jun. 30, 2024 | $ 397,892 | $ 1,603 | $ 94 | $ 786,044 | $ (377,141) | $ (937) | $ (11,771) |
Balance at end of period (in shares) at Jun. 30, 2024 | 160,265 | 9,399 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
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 (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net earnings | $ 16,194 | $ 5,173 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Stock-based compensation expense | 15,352 | (1,693) |
Amortization of intangibles | 695 | 2,144 |
Depreciation | 211 | 1,030 |
Provision for credit losses | 30 | 17 |
Loss on the sale of an asset | 0 | 37 |
Non-cash lease expense | 2,269 | 2,267 |
Other adjustments, net | 25 | 1,411 |
Changes in assets and liabilities: | ||
Accounts receivable | 414 | 3,870 |
Prepaid expenses and other assets | 2,929 | (57) |
Accounts payable and other liabilities | (13,022) | (11,417) |
Deferred revenue | 191 | 8,414 |
Net cash provided by operating activities | 25,288 | 11,196 |
Cash flows from investing activities: | ||
Capital expenditures | (160) | (107) |
Proceeds from the sale of an asset | 0 | 639 |
Net cash (used in) provided by investing activities | (160) | 532 |
Cash flows from financing activities: | ||
Amounts related to settlement of equity awards | (3,935) | (4,180) |
Proceeds from exercise of stock options | 22 | 128 |
Purchases of treasury stock | (11,495) | 0 |
Contingent consideration payment | 0 | (3,297) |
Other | 0 | (266) |
Net cash used in financing activities | (15,408) | (7,615) |
Total cash provided | 9,720 | 4,113 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (337) | (154) |
Net increase in cash and cash equivalents and restricted cash | 9,383 | 3,959 |
Cash and cash equivalents and restricted cash at beginning of period | 301,436 | 274,834 |
Cash and cash equivalents and restricted cash at end of period | $ 310,819 | $ 278,793 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
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," the "Company," "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 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, 2023 . All intercompany balances and transactions between and among Vimeo and its subsidiaries have been eliminated. All related party balances between Vimeo and IAC/InterActiveCorp ("IAC") and its subsidiaries are reflected in the accompanying consolidated balance sheet within " Accrued expenses and other current liabilities 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. 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") and related lease liabilities; 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 accounting for stock-based compensation expense, 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 Not Yet Adopted by the Company In November 2023, Accounting Standards Update ("ASU") 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures was issued, which amended existing guidance to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. These amendments are effective on a retrospective basis for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In December 2023, ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures was issued, and requires disclosure of disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This guidance will become effective for fiscal years beginning after December 15, 2024 on a prospective basis. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition Vimeo's revenue is derived primarily from fixed SaaS subscription fees paid by customers. Subscription periods generally range from one month to three years, with the most common being an annual subscription, and are generally non-cancellable. 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. The transaction price, which generally reflects the fixed SaaS subscription fees listed in the terms of the contract, is the amount of consideration Vimeo expects to be entitled to in exchange for access to the Vimeo platform. The transaction price is recognized as revenue on a straight-line basis over the contractual term of the arrangement beginning on the date access is provided to the Vimeo platform, which is considered to be a series of distinct services that comprise a single performance obligation and have the same pattern of transfer over the contractual term. 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 are excluded from the measurement of the transaction price, and accordingly, 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. Estimates of variable consideration are not significant. Disaggregated revenue is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Revenue: Self-Serve & Add-Ons $ 68,565 $ 70,821 $ 138,477 $ 142,423 Vimeo Enterprise 20,051 12,899 38,518 24,471 Other 15,760 18,115 32,291 38,523 Total $ 104,376 $ 101,835 $ 209,286 $ 205,417 Revenue by geography is based on where the customer is located. The United States was the only country from which revenue constituted greater than 10% of total revenue of the Company for the three and six months ended June 30, 2024 and 2023 . Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Revenue: United States $ 56,896 $ 54,184 $ 114,225 $ 108,899 All other countries 47,480 47,651 95,061 96,518 Total $ 104,376 $ 101,835 $ 209,286 $ 205,417 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: June 30, December 31, (In thousands) Deferred revenue $ 168,014 $ 168,610 Other long-term liabilities 1,107 1,216 During the six months ended June 30, 2024, Vimeo recognized $126.9 million of revenue that was included in the deferred revenue balance at December 31, 2023. During the six months ended June 30, 2023, Vimeo recognized $126.3 million of revenue that was included in the deferred revenue balance at December 31, 2022. Costs to Obtain a Contract with a Customer Vimeo has determined that commissions paid to employees pursuant to certain sales incentive programs meet the requirements to be capitalized as a cost of obtaining a contract with a customer. 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. Vimeo has elected the practical expedient to expense costs to obtain a contract with a customer as incurred when the customer relationship period is one year or less. 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: June 30, December 31, (In thousands) Prepaid expenses and other current assets $ 5,066 $ 5,099 Other non-current assets 8,108 8,263 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and 2023, Vimeo recorded an income tax provision of $1.2 million and $0.8 million, respectively. For the six months ended June 30, 2024 and 2023, Vimeo recorded an income tax provision of $1.6 million and $1.2 million, respectively. The effective income tax rate was lower than the federal statutory rate of 21% primarily due to movement in the valuation allowance, the effects of international tax provisions as required under 2017 Tax Cuts and Jobs Act, partially offset by stock-based awards. Vimeo's largest deferred tax assets are capitalized research and development expenses and tax attribute carryforwards. 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 June 30, 2024 and December 31, 2023, unrecognized tax benefits, including interest and penalties, were $5.0 million and $4.6 million, respectively. The Company would recognize an income tax benefit of $0.5 million i f unrecognized tax benefits at June 30, 2024 are subsequently recognized. Vimeo believes no unrecognized tax benefits would decrease by June 30, 2025. Vimeo recognizes interest and penalties related to unrecognized tax benefits, if applicable, in the income tax provision. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 Quoted Market Significant Significant Total (In thousands) Money market funds $ 282,233 $ — $ — $ 282,233 Time deposits — 6,393 — 6,393 Total $ 282,233 $ 6,393 $ — $ 288,626 December 31, 2023 Quoted Market Significant Significant Total (In thousands) Money market funds $ 274,212 $ — $ — $ 274,212 Time deposits — 6,098 — 6,098 Total $ 274,212 $ 6,098 $ — $ 280,310 Money market funds and time deposits are included in "Cash and cash equivalents" in the accompanying consolidated balance sheet. Vimeo's non-financial assets (which consist primarily of goodwill, ROU assets, and intangible assets with definite lives) 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 and solely relate to the Company's contingent consideration arrangements, which were finalized and paid in 2023 (as described below): Three Months Ended June 30, Six Months Ended June 30, 2023 2023 (In thousands) Balance at beginning of period $ 2,977 $ 7,845 Total net losses: Included in operating income — 104 Settlements — (4,972) Balance at end of period $ 2,977 $ 2,977 Contingent Consideration Arrangements The aggregate purchase price of the Company's 2021 acquisitions of WIREWAX Ltd. ("WIREWAX") and Wibbitz Ltd. ("Wibbitz") consisted of cash consideration and contingent consideration, based on a combination of certain financial metrics and integration milestones. In the first quarter of 2023, the contingent consideration arrangement for WIREWAX was finalized and resulted in a payment of $5.0 million to WIREWAX's former shareholders and a $0.1 million loss that was recorded within "General and administrative expense" in the accompanying consolidated statement of operations. In the accompanying consolidated statement of cash flows, the final $5.0 million payment is included in "Contingent consideration payment" within financing activities and "Accounts payable and other liabilities" within operating activities for $3.3 million and $1.7 million, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
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 shares of Vimeo common stock vote together as a single class with the holders of shares of Vimeo Class B common stock on all matters, including the election of directors; provided, however, that the holders of shares 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 the holders of shares of 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. Vimeo is authorized to issue 1,600,000,000 shares of Vimeo common stock and 400,000,000 shares of Vimeo Class B common stock. Vimeo Restricted Shares Vimeo Restricted Shares (held by Joseph Levin, Special Advisor to the Board and former Chairman and member of the Board) totaling 3,247,000 shares were reflected in the accompanying consolidated balance sheet within "Common Stock" at June 30, 2024 and December 31, 2023. Vesting of the Vimeo Restricted Shares is subject to Mr. Levin's continued service as Special Advisor to the Board through November 5, 2030, as well as the achievement of certain stock price targets. Vimeo Restricted Shares 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. 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 (the "Stock Repurchase Program"). Under the Stock Repurchase Program, 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 Stock Repurchase Program from cash on hand. Vimeo has no obligation to repurchase any shares under the Stock Repurchase Program and may suspend or discontinue it at any time. During the six months ended June 30, 2024, the Company repurchased 3.0 million shares of its common stock, on a trade date basis, at an average cost of $3.88 per share, or in aggregate $11.8 million. There were no shares repurchased during the six months ended June 30, 2023. The Company accounts for treasury stock under the cost method. Subsequent to June 30, 2024 and through August 1, 2024, the Company repurchased 1.2 million shares of its common stock, on a trade date basis, at an average cost of $3.74 per share, or in aggregate $4.6 million. At August 1, 2024 , the Company has $33.7 million remaining under its share repurchase authorization. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Balance at beginning of period $ (823) $ (959) $ (699) $ (831) Other comprehensive (loss) income (114) 378 (238) 250 Balance at end of period $ (937) $ (581) $ (937) $ (581) At both June 30, 2024 and 2023, there was no tax benefit or provision on accumulated other comprehensive loss. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS 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 per share attributable to common shareholders is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands, except per share data) Basic EPS: Numerator: Net earnings $ 10,121 $ 5,871 $ 16,194 $ 5,173 Less: Net earnings attributed to participating security (195) (115) (312) (123) Net earnings attributable to common stock shareholders $ 9,926 $ 5,756 $ 15,882 $ 5,050 Denominator: (a) Weighted average basic common shares outstanding 165,295 162,733 165,164 162,285 Basic earnings per share $ 0.06 $ 0.04 $ 0.10 $ 0.03 Diluted EPS: Numerator: Net earnings $ 10,121 $ 5,871 $ 16,194 $ 5,173 Less: Net earnings attributed to participating security (191) (113) (305) (121) Net earnings attributable to common stock shareholders $ 9,930 $ 5,758 $ 15,889 $ 5,052 Denominator: (a) Weighted average basic common shares outstanding 165,295 162,733 165,164 162,285 Dilutive securities 3,353 2,255 3,658 2,133 Weighted average diluted common shares outstanding 168,648 164,988 168,822 164,418 Antidilutive securities 13,969 23,543 13,391 23,981 Diluted earnings per share $ 0.06 $ 0.03 $ 0.09 $ 0.03 _____________________ (a) |
FINANCIAL STATEMENT DETAILS
FINANCIAL STATEMENT DETAILS | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 December 31, 2023 June 30, 2023 December 31, 2022 (In thousands) Cash and cash equivalents $ 310,579 $ 301,372 $ 278,445 $ 274,497 Restricted cash included in Prepaid expenses and other current assets 240 64 348 337 Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows $ 310,819 $ 301,436 $ 278,793 $ 274,834 Restricted cash at June 30, 2024, June 30, 2023, and December 31, 2022 primarily consisted of deposits related to a lease and corporate credit cards. Restricted cash at December 31, 2023 primarily consisted of a deposit related to corporate credit cards. Credit Losses The changes in the allowance for credit losses are as follows: Six Months Ended June 30, 2024 2023 (In thousands) Balance at beginning of period $ 2,728 $ 5,183 Provision for credit losses 30 17 Write-offs charged against the allowance (988) (2,693) Recoveries collected 451 516 Currency translation adjustment (1) 9 Balance at end of period $ 2,220 $ 3,032 Accumulated Amortization and Depreciation Accumulated amortization and depreciation within the accompanying consolidated balance sheet are as follows: Asset Category June 30, 2024 December 31, 2023 (In thousands) ROU assets included in Other non-current assets $ 16,805 $ 14,536 Leasehold improvements and equipment $ 590 $ 704 Intangible assets with definite lives $ 48,326 $ 47,631 Other income, net The components of "Other income, net" are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Interest income 3,760 2,992 $ 7,431 $ 5,678 Foreign exchange gains (losses), net $ 121 $ (58) 266 (63) Loss on the sale of an asset — — — (37) Other income, net $ 3,881 $ 2,934 $ 7,697 $ 5,578 Geographic Concentrations Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at June 30, 2024 and December 31, 2023 relate to "Leasehold improvements and equipment, net." June 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 399 $ 492 All other countries 139 115 Total $ 538 $ 607 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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. 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 has appealed to the Italian Supreme Court of Cassation and the case is currently pending (No. 26719/2022). 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 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. Vimeo has appealed to the Italian Supreme Court of Cassation and the case is currently pending (No. 856/2024). To pursue enforcement of the judgments in the United States, RTI initially commenced a lawsuit against Vimeo in the U.S. District Court for the Southern District of New York on October 26, 2020 to enforce 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 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 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 in the first case (No. 20 Civ. 8954) and consolidating the two enforcement proceedings (No. 20 Civ. 8954 and No. 23 Civ. 05488). Vimeo has filed a Motion for Summary Judgement or, in the Alternative, to Stay the Case. 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. The case is currently pending before the appellate court (No. 5033/2023). 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. The case is currently pending before the appellate court (No. 6536/2022). On June 26, 2024, the parties entered into a settlement agreement to resolve the lawsuits pending in Italy and the consolidated enforcement action pending in New York. The settlement agreement included a payment to the plaintiffs, which did not have a material impact on Vimeo’s financial condition, results of operations, or cash flows. Pursuant to the settlement agreement, on July 12, 2024, the parties filed a Joint Stipulation of Dismissal of the consolidated enforcement action in the Southern District of New York (No. 23 Civ. 05488), and the case is now closed. On July 18, 2024, the parties filed Joint Stipulations of Dismissal to resolve the cases pending in the Civil Court of Rome (No. 74775/2017), the Rome Court of Appeals (Nos. 6536/2022 and 5033/2023), and the Italian Supreme Court of Cassation (Nos. 26719/2022 and 856/2024). The Italian courts are expected to issue orders declaring that the cases are closed in the coming weeks. 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 hearing scheduled for June 26, 2024 was postponed to October 16, 2024. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Vimeo has entered into various sublease agreements with a subsidiary of Angi Inc., an indirect subsidiary of IAC, whereby Vimeo agreed to sublease a portion of the 5th floor and the entire 10th floor at 330 West 34th Street ("West 34th Street Sublease") in New York City, both through April 2028. At June 30, 2024 and December 31, 2023, Vimeo h ad a current lease liability of $2.5 million and $2.3 million included in " Accrued expenses and other current liabilities $9.4 million and $10.7 million included in " Other long-term liabilities for the three and six months ended June 30, 2024 and 2023 were both $0.8 million and |
RESTRUCTURING
RESTRUCTURING | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING During the quarters ended March 31, 2024 and 2023, the Company completed evaluations to sufficient levels of detail to commit to restructuring plans that resulted in reductions to its workforce of approximately 4% and 11% 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 $2.2 million and $4.9 million of restructuring costs for the six months ended June 30, 2024 and 2023, respectively. Costs related to these restructuring plans have been recognized in the accompanying consolidated statement of operations as follows: Six Months Ended June 30, 2024 2023 (In thousands) Restructuring costs: Cost of revenue $ 88 $ 298 Research and development expense 116 2,813 Sales and marketing expense 1,104 1,078 General and administrative expense 897 699 Total $ 2,205 $ 4,888 At June 30, 2024, a payable of $0.2 million related to restructuring costs was included in " Accrued expenses and other current liabilities |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 10,121 | $ 5,871 | $ 16,194 | $ 5,173 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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) | 6 Months Ended |
Jun. 30, 2024 | |
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," the "Company," "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, 2023 . All intercompany balances and transactions between and among Vimeo and its subsidiaries have been eliminated. All related party balances between Vimeo and IAC/InterActiveCorp ("IAC") and its subsidiaries are reflected in the accompanying consolidated balance sheet within " 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") and related lease liabilities; 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 accounting for stock-based compensation expense, 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 Not Yet Adopted by the Company | Recent Accounting Pronouncements Not Yet Adopted by the Company In November 2023, Accounting Standards Update ("ASU") 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures was issued, which amended existing guidance to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. These amendments are effective on a retrospective basis for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In December 2023, ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures was issued, and requires disclosure of disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This guidance will become effective for fiscal years beginning after December 15, 2024 on a prospective basis. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. |
Revenue Recognition | Revenue Recognition Vimeo's revenue is derived primarily from fixed SaaS subscription fees paid by customers. Subscription periods generally range from one month to three years, with the most common being an annual subscription, and are generally non-cancellable. 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. The transaction price, which generally reflects the fixed SaaS subscription fees listed in the terms of the contract, is the amount of consideration Vimeo expects to be entitled to in exchange for access to the Vimeo platform. The transaction price is recognized as revenue on a straight-line basis over the contractual term of the arrangement beginning on the date access is provided to the Vimeo platform, which is considered to be a series of distinct services that comprise a single performance obligation and have the same pattern of transfer over the contractual term. 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 are excluded from the measurement of the transaction price, and accordingly, 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. Estimates of variable consideration are not significant. Deferred Revenue Costs to Obtain a Contract with a Customer Vimeo has determined that commissions paid to employees pursuant to certain sales incentive programs meet the requirements to be capitalized as a cost of obtaining a contract with a customer. 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. Vimeo has elected the practical expedient to expense costs to obtain a contract with a customer as incurred when the customer relationship period is one year or less. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Disaggregated revenue is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Revenue: Self-Serve & Add-Ons $ 68,565 $ 70,821 $ 138,477 $ 142,423 Vimeo Enterprise 20,051 12,899 38,518 24,471 Other 15,760 18,115 32,291 38,523 Total $ 104,376 $ 101,835 $ 209,286 $ 205,417 |
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 from which revenue constituted greater than 10% of total revenue of the Company for the three and six months ended June 30, 2024 and 2023 . Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Revenue: United States $ 56,896 $ 54,184 $ 114,225 $ 108,899 All other countries 47,480 47,651 95,061 96,518 Total $ 104,376 $ 101,835 $ 209,286 $ 205,417 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at June 30, 2024 and December 31, 2023 relate to "Leasehold improvements and equipment, net." June 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 399 $ 492 All other countries 139 115 Total $ 538 $ 607 |
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: June 30, December 31, (In thousands) Deferred revenue $ 168,014 $ 168,610 Other long-term liabilities 1,107 1,216 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: June 30, December 31, (In thousands) Prepaid expenses and other current assets $ 5,066 $ 5,099 Other non-current assets 8,108 8,263 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 Quoted Market Significant Significant Total (In thousands) Money market funds $ 282,233 $ — $ — $ 282,233 Time deposits — 6,393 — 6,393 Total $ 282,233 $ 6,393 $ — $ 288,626 December 31, 2023 Quoted Market Significant Significant Total (In thousands) Money market funds $ 274,212 $ — $ — $ 274,212 Time deposits — 6,098 — 6,098 Total $ 274,212 $ 6,098 $ — $ 280,310 |
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 and solely relate to the Company's contingent consideration arrangements, which were finalized and paid in 2023 (as described below): Three Months Ended June 30, Six Months Ended June 30, 2023 2023 (In thousands) Balance at beginning of period $ 2,977 $ 7,845 Total net losses: Included in operating income — 104 Settlements — (4,972) Balance at end of period $ 2,977 $ 2,977 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisting of foreign currency translation adjustments is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Balance at beginning of period $ (823) $ (959) $ (699) $ (831) Other comprehensive (loss) income (114) 378 (238) 250 Balance at end of period $ (937) $ (581) $ (937) $ (581) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings per Share | The computation of basic and diluted earnings per share attributable to common shareholders is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands, except per share data) Basic EPS: Numerator: Net earnings $ 10,121 $ 5,871 $ 16,194 $ 5,173 Less: Net earnings attributed to participating security (195) (115) (312) (123) Net earnings attributable to common stock shareholders $ 9,926 $ 5,756 $ 15,882 $ 5,050 Denominator: (a) Weighted average basic common shares outstanding 165,295 162,733 165,164 162,285 Basic earnings per share $ 0.06 $ 0.04 $ 0.10 $ 0.03 Diluted EPS: Numerator: Net earnings $ 10,121 $ 5,871 $ 16,194 $ 5,173 Less: Net earnings attributed to participating security (191) (113) (305) (121) Net earnings attributable to common stock shareholders $ 9,930 $ 5,758 $ 15,889 $ 5,052 Denominator: (a) Weighted average basic common shares outstanding 165,295 162,733 165,164 162,285 Dilutive securities 3,353 2,255 3,658 2,133 Weighted average diluted common shares outstanding 168,648 164,988 168,822 164,418 Antidilutive securities 13,969 23,543 13,391 23,981 Diluted earnings per share $ 0.06 $ 0.03 $ 0.09 $ 0.03 _____________________ (a) |
FINANCIAL STATEMENT DETAILS (Ta
FINANCIAL STATEMENT DETAILS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 December 31, 2023 June 30, 2023 December 31, 2022 (In thousands) Cash and cash equivalents $ 310,579 $ 301,372 $ 278,445 $ 274,497 Restricted cash included in Prepaid expenses and other current assets 240 64 348 337 Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows $ 310,819 $ 301,436 $ 278,793 $ 274,834 |
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: June 30, 2024 December 31, 2023 June 30, 2023 December 31, 2022 (In thousands) Cash and cash equivalents $ 310,579 $ 301,372 $ 278,445 $ 274,497 Restricted cash included in Prepaid expenses and other current assets 240 64 348 337 Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows $ 310,819 $ 301,436 $ 278,793 $ 274,834 |
Schedule of Changes in Allowance for Credit Losses | The changes in the allowance for credit losses are as follows: Six Months Ended June 30, 2024 2023 (In thousands) Balance at beginning of period $ 2,728 $ 5,183 Provision for credit losses 30 17 Write-offs charged against the allowance (988) (2,693) Recoveries collected 451 516 Currency translation adjustment (1) 9 Balance at end of period $ 2,220 $ 3,032 |
Schedule of Accumulated Depreciation and Amortization | Accumulated amortization and depreciation within the accompanying consolidated balance sheet are as follows: Asset Category June 30, 2024 December 31, 2023 (In thousands) ROU assets included in Other non-current assets $ 16,805 $ 14,536 Leasehold improvements and equipment $ 590 $ 704 Intangible assets with definite lives $ 48,326 $ 47,631 |
Schedule of Other Income, Net | The components of "Other income, net" are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Interest income 3,760 2,992 $ 7,431 $ 5,678 Foreign exchange gains (losses), net $ 121 $ (58) 266 (63) Loss on the sale of an asset — — — (37) Other income, net $ 3,881 $ 2,934 $ 7,697 $ 5,578 |
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 from which revenue constituted greater than 10% of total revenue of the Company for the three and six months ended June 30, 2024 and 2023 . Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Revenue: United States $ 56,896 $ 54,184 $ 114,225 $ 108,899 All other countries 47,480 47,651 95,061 96,518 Total $ 104,376 $ 101,835 $ 209,286 $ 205,417 Long-lived assets, excluding goodwill, intangible assets with definite lives and ROU assets, at June 30, 2024 and December 31, 2023 relate to "Leasehold improvements and equipment, net." June 30, December 31, (In thousands) Leasehold improvements and equipment, net: United States $ 399 $ 492 All other countries 139 115 Total $ 538 $ 607 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Six Months Ended June 30, 2024 2023 (In thousands) Restructuring costs: Cost of revenue $ 88 $ 298 Research and development expense 116 2,813 Sales and marketing expense 1,104 1,078 General and administrative expense 897 699 Total $ 2,205 $ 4,888 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 104,376 | $ 101,835 | $ 209,286 | $ 205,417 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 56,896 | 54,184 | 114,225 | 108,899 |
All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47,480 | 47,651 | 95,061 | 96,518 |
Self-Serve & Add-Ons | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 68,565 | 70,821 | 138,477 | 142,423 |
Vimeo Enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,051 | 12,899 | 38,518 | 24,471 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 15,760 | $ 18,115 | $ 32,291 | $ 38,523 |
REVENUE - Schedule of Current a
REVENUE - Schedule of Current and Non-current Balances of Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 168,014 | $ 168,610 |
Other long-term liabilities | $ 1,107 | $ 1,216 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue recognized during period | $ 126.9 | $ 126.3 | ||
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_2
REVENUE - Schedule of Current and Non-current Contract Asset Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses and other current assets | $ 5,066 | $ 5,099 |
Other non-current assets | $ 8,108 | $ 8,263 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 1,221 | $ 781 | $ 1,553 | $ 1,197 | |
Unrecognized tax benefits | $ 5,000 | 5,000 | $ 4,600 | ||
Unrecognized tax benefit, related deferred tax assets and interest | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | $ 288,626 | $ 280,310 |
Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 282,233 | 274,212 |
Significant Other Observable Inputs (Level 2) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 6,393 | 6,098 |
Significant Unobservable Inputs (Level 3) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 0 | 0 |
Money market funds | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 282,233 | 274,212 |
Money market funds | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 282,233 | 274,212 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 0 | 0 |
Time deposits | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 6,393 | 6,098 |
Time deposits | Quoted Market Prices for Identical Assets in Active Markets (Level 1) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Total | 6,393 | 6,098 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
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 | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Contingent Consideration Arrangements | ||
Balance at beginning of period | $ 2,977 | $ 7,845 |
Total net losses: | ||
Included in operating income | 0 | 104 |
Settlements | 0 | (4,972) |
Balance at end of period | $ 2,977 | $ 2,977 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | ||||
Contingent consideration payment | $ 0 | $ 3,297 | ||
Accounts payable and other liabilities | $ (13,022) | $ (11,417) | ||
Wirewax | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration arrangements | $ 5,000 | |||
Contingent consideration arrangements, gain (loss) | 100 | |||
Wirewax | Contingent Consideration Liability | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payment | 3,300 | |||
Accounts payable and other liabilities | $ 1,700 | |||
Wibbitz | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payment | $ 2,500 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2024 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2024 USD ($) vote $ / shares shares | Jun. 30, 2023 shares | Dec. 31, 2023 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) | 3,000,000 | 0 | |||||
Average cost (USD per share) | $ / shares | $ 3.88 | ||||||
Purchase of treasury stock | $ | $ 11,771,000 | $ 11,771,000 | |||||
Subsequent Event | |||||||
Shareholders' Equity [Line Items] | |||||||
Number of shares repurchased (in shares) | 1,200,000 | ||||||
Average cost (USD per share) | $ / shares | $ 3.74 | ||||||
Purchase of treasury stock | $ | $ 4,600,000 | ||||||
Authorized purchase of remaining common stock | $ | $ 33,700,000 | ||||||
Director | Restricted Stock | Restricted Stock Agreement | |||||||
Shareholders' Equity [Line Items] | |||||||
Shares authorized for issuance (in shares) | 3,247,000 | 3,247,000 | 3,247,000 | ||||
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) | 1,600,000,000 | 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 | 400,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | $ 392,794,000 | $ 350,293,000 | $ 382,232,000 | $ 353,858,000 |
Other comprehensive (loss) income | (114,000) | 378,000 | (238,000) | 250,000 |
Balance at end of period | 397,892,000 | 352,893,000 | 397,892,000 | 352,893,000 |
Income tax provision (benefit) | 1,221,000 | 781,000 | 1,553,000 | 1,197,000 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | (823,000) | (959,000) | (699,000) | (831,000) |
Other comprehensive (loss) income | (114,000) | 378,000 | (238,000) | 250,000 |
Balance at end of period | (937,000) | (581,000) | (937,000) | (581,000) |
Income tax provision (benefit) | 0 | 0 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Loss | ||||
Other comprehensive (loss) income | $ (114,000) | $ 378,000 | $ (238,000) | $ 250,000 |
EARNINGS PER SHARE - Schedule (
EARNINGS PER SHARE - Schedule (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net earnings | $ 10,121 | $ 5,871 | $ 16,194 | $ 5,173 |
Less: Net earnings attributed to participating security | (195) | (115) | (312) | (123) |
Net earnings attributable to common stock shareholders | $ 9,926 | $ 5,756 | $ 15,882 | $ 5,050 |
Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 165,295 | 162,733 | 165,164 | 162,285 |
Basic earnings per share (USD per share) | $ 0.06 | $ 0.04 | $ 0.10 | $ 0.03 |
Numerator: | ||||
Net earnings | $ 10,121 | $ 5,871 | $ 16,194 | $ 5,173 |
Less: Net earnings attributed to participating security | (191) | (113) | (305) | (121) |
Net earnings attributable to common stock shareholders | $ 9,930 | $ 5,758 | $ 15,889 | $ 5,052 |
Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 165,295 | 162,733 | 165,164 | 162,285 |
Dilutive securities (in shares) | 3,353 | 2,255 | 3,658 | 2,133 |
Weighted average diluted common shares outstanding (in shares) | 168,648 | 164,988 | 168,822 | 164,418 |
Antidilutive securities (in shares) | 13,969 | 23,543 | 13,391 | 23,981 |
Diluted earnings per share (USD per share) | $ 0.06 | $ 0.03 | $ 0.09 | $ 0.03 |
FINANCIAL STATEMENT DETAILS - S
FINANCIAL STATEMENT DETAILS - Schedule of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 310,579 | $ 301,372 | $ 278,445 | $ 274,497 |
Restricted cash included in Prepaid expenses and other current assets | 240 | 64 | 348 | 337 |
Total cash and cash equivalents and restricted cash as shown in the accompanying consolidated statement of cash flows | $ 310,819 | $ 301,436 | $ 278,793 | $ 274,834 |
FINANCIAL STATEMENT DETAILS -_2
FINANCIAL STATEMENT DETAILS - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 2,728 | $ 5,183 |
Provision for credit losses | 30 | 17 |
Write-offs charged against the allowance | (988) | (2,693) |
Recoveries collected | 451 | 516 |
Currency translation adjustment | (1) | 9 |
Balance at end of period | $ 2,220 | $ 3,032 |
FINANCIAL STATEMENT DETAILS -_3
FINANCIAL STATEMENT DETAILS - Schedule of Accumulated Amortization and Depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ROU assets included in Other non-current assets | $ 16,805 | $ 14,536 |
Leasehold improvements and equipment | 590 | 704 |
Intangible assets with definite lives | $ 48,326 | $ 47,631 |
FINANCIAL STATEMENT DETAILS -_4
FINANCIAL STATEMENT DETAILS - Schedule of Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 3,760 | $ 2,992 | $ 7,431 | $ 5,678 |
Foreign exchange gains (losses), net | 121 | (58) | 266 | (63) |
Loss on the sale of an asset | 0 | 0 | 0 | (37) |
Other income, net | $ 3,881 | $ 2,934 | $ 7,697 | $ 5,578 |
FINANCIAL STATEMENT DETAILS -_5
FINANCIAL STATEMENT DETAILS - Schedule of Revenue and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Leasehold improvements and equipment, net | $ 538 | $ 607 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Leasehold improvements and equipment, net | 399 | 492 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Leasehold improvements and equipment, net | $ 139 | $ 115 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | 1 Months Ended | 72 Months Ended | ||||||
Oct. 12, 2023 EUR (€) | Jun. 01, 2023 EUR (€) | Jun. 02, 2019 EUR (€) | Jan. 15, 2019 EUR (€) | Sep. 18, 2013 video | Mar. 31, 2021 EUR (€) | 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 | 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 | € | € 3,865,161 | € 8,500,000 | € 4,746,273 | € 8,500,000 | ||||
Sony, Universal, Warner Copyright | ||||||||
Contingencies [Line Items] | ||||||||
Penalty payment per day of delay | € | € 10,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Operating lease, liability, current, statement of financial position | Accrued expenses and other current liabilities | 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 | Other long-term liabilities | ||
Affiliated Entity | IAC/InterActive Corp | |||||
Related Party Transaction [Line Items] | |||||
Current lease liability | $ 2.5 | $ 2.5 | $ 2.3 | ||
Non-current lease liability | 9.4 | 9.4 | $ 10.7 | ||
Affiliated Entity | IAC/InterActive Corp | IAC Headquarters Occupancy and Subsidiary of Angi Occupancy | |||||
Related Party Transaction [Line Items] | |||||
Rent expense | $ 0.8 | $ 0.8 | $ 1.7 | $ 1.7 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Reduction of workforce (as a percent) | 4% | 11% | ||
Cost incurred for one-time termination benefits | $ 2,205 | $ 4,888 | ||
Accrued liability related to restructuring plan | $ 200 |
RESTRUCTURING - Schedule of Res
RESTRUCTURING - Schedule of Restructuring Costs Recognized in Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 2,205 | $ 4,888 |
Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 88 | $ 298 |
Restructuring, incurred cost, statement of income or comprehensive income | Cost of revenue (exclusive of depreciation shown separately below) | Cost of revenue (exclusive of depreciation shown separately below) |
Research and development expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 116 | $ 2,813 |
Restructuring, incurred cost, statement of income or comprehensive income | Research and development expense | Research and development expense |
Sales and marketing expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 1,104 | $ 1,078 |
Restructuring, incurred cost, statement of income or comprehensive income | Sales and marketing expense | Sales and marketing expense |
General and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 897 | $ 699 |
Restructuring, incurred cost, statement of income or comprehensive income | General and administrative expense | General and administrative expense |