INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of (Losses) Earnings before Income Taxes

U.S. and foreign earnings (losses) before income taxes are as follows:

	Years Ended December 31,
	2023		2022		2021
	(In thousands)
U.S.	$	15,189	$	(90,500)	$	(54,085)
Foreign	9,722		12,835		2,146
Earnings (loss) before income taxes	$	24,911	$	(77,665)	$	(51,939)

Schedule of Components of Income Tax Provision

The income tax provisions for the years ended December 31, 2023, 2022, and 2021 primarily relate to international and state taxes for jurisdictions in which Vimeo conducts business and are as follows:

	December 31,
	2023		2022		2021
	(In thousands)
Current income tax provision:
Federal	$	294	$	81	$	52
State	466		88		85
Foreign	1,402		1,351		761
Current income tax provision	2,162		1,520		898
Deferred income tax provision (benefit):
Federal	167		37		(20)
State	—		(4)		(5)
Foreign	550		373		(45)
Deferred income tax provision (benefit)	717		406		(70)
Income tax provision	$	2,879	$	1,926	$	828

Schedule of Deferred Tax Assets and Liabilities

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.

	December 31,
	2023		2022
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	14,566	$	31,069
Tax credit carryforwards	13,509		12,138
Accrued bonus	3,745		2,449
Stock-based compensation	10,767		10,209
Capitalized research and development expenses	26,977		14,242
Other	4,569		7,509
Total deferred tax assets	74,133		77,616
Less: valuation allowance	(62,108)		(67,544)
Net deferred tax assets	12,025		10,072
Deferred tax liabilities:
Prepaid expenses	(5,468)		(4,834)
Intangible assets with definite lives	(3,308)		(925)
Right-of-use assets	(3,303)		(3,755)
Withholding taxes	(1,083)		(905)
Other	(56)		(106)
Total deferred tax liabilities	(13,218)		(10,525)
Net deferred tax liabilities (a)	$	(1,193)	$	(453)

____________________

(a)    Net deferred tax liabilities are included in "Other long-term liabilities" in the accompanying consolidated balance sheet.

Schedule of Composition of Net Operating Loss Carryforwards

The composition of Vimeo's NOLs as of December 31, 2023 is as follows:

	Federal		State		Foreign		Total
	(In thousands)
Subject to expiration (a)	$	139	$	44,538	$	—	$	44,677
Indefinite carryforward (b)	12,999		5,747		40,851		59,597
Total NOLs (c)	$	13,138	$	50,285	$	40,851	$	104,274

____________________

(a)    Federal NOL will expire in 2035 and state NOLs will expire at various times between 2026 through 2042.

(b)    All indefinite carryforward federal NOLs are subject to the Tax Cuts and Jobs Act 80% taxable income limitation.

(c)    State NOLs of $1.7 million are subject to limitations under IRC Section 382, separate return limitations, and applicable law.

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to loss before income taxes is shown as follows:

	Years Ended December 31,
	2023		2022		2021
	(In thousands)
Income tax benefit at the federal statutory rate of 21%	$	5,231	$	(16,310)	$	(10,907)
State income taxes, net of effect of federal tax benefit	(359)		(1,559)		(2,086)
Global intangible low-taxed income	2,864		1,307		—
Section 250 deductions	(1,350)		—		—
Return to provision	2,283		(765)		(2,249)
Valuation allowance	(4,543)		12,736		20,858
Stock-based compensation	(709)		8,838		(4,041)
Non-deductible executive compensation	377		42		376
Tax credits	(2,441)		(2,631)		(2,163)
Uncertain tax positions	461		—		—
Deferred tax adjustments	1,242		(205)		63
Transaction costs	—		18		698
Other, net	(177)		455		279
Income tax provision	$	2,879	$	1,926	$	828

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31,
	2023		2022		2021
	(In thousands)
Balance at beginning of period	$	2,523	$	2,519	$	1,921
Additions based on tax positions related to prior years	1,413		74		—
Settlements	—		(821)		(329)
Additions based on tax positions related to the current year	712		751		927
Balance at end of period	$	4,648	$	2,523	$	2,519