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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Earnings before Income Taxes | U.S. and foreign (loss) earnings before income taxes are as follows:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
| (In thousands)
U.S. | $ | (54,085) |  |  | $ | (52,007) |  |  | $ | (76,052) |
Foreign | 2,146 |  |  | 2,207 |  |  | 820 |
Loss before income taxes | $ | (51,939) |  |  | $ | (49,800) |  |  | $ | (75,232) |
Schedule of Components of Income Tax Provision | The components of the income tax provision are as follows:
| December 31,
| 2021 |  | 2020 |  | 2019
| (In thousands)
Current income tax provision: |  |  |  |  |
Federal | $ | 52 |  |  | $ | — |  |  | $ | — |
State | 85 |  |  | 64 |  |  | 39 |
Foreign | 761 |  |  | 561 |  |  | 242 |
Current income tax provision | 898 |  |  | 625 |  |  | 281 |
Deferred income tax (benefit) provision: |  |  |  |  |
Federal | (20) |  |  | 270 |  |  | — |
State | (5) |  |  | — |  |  | — |
Foreign | (45) |  |  | (67) |  |  | 64 |
Deferred income tax (benefit) provision | (70) |  |  | 203 |  |  | 64 |
Income tax provision | $ | 828 |  |  | $ | 828 |  |  | $ | 345 |
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 as follows:
| December 31,
| 2021 |  | 2020
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 33,897 |  |  | $ | 31,721 |
Tax credit carryforwards | 9,066 |  |  | 6,903 |
Intangible assets with definite lives | 2,247 |  |  | 3,992 |
Disallowed interest carryforwards | 227 |  |  | 3,705 |
Stock-based compensation | 5,467 |  |  | 3,013 |
Other | 8,309 |  |  | 5,477 |
Total deferred tax assets | 59,213 |  |  | 54,811 |
Less: valuation allowance | (52,023) |  |  | (51,689) |
Net deferred tax assets | 7,190 |  |  | 3,122 |
Deferred tax liabilities: |  |  |
Prepaid expenses | (3,835) |  |  | (2,345) |
Leasehold improvements and equipment | (299) |  |  | (415) |
Right-of-use assets | (2,561) |  |  | (343) |
Withholding taxes | (506) |  |  | (270) |
Total deferred tax liabilities | (7,201) |  |  | (3,373) |
Net deferred tax liability | $ | (11) |  |  | $ | (251) |
Composition of Net Operating Loss Carryforwards | The composition of Vimeo's NOLs as of December 31, 2021 is as follows:
| Federal |  | State |  | Foreign |  | Total
| (In thousands)
Subject to expiration (a) | $ | 27,324 |  |  | $ | 53,867 |  |  | $ | — |  |  | $ | 81,191 |
Indefinite carryforward (b) | 65,765 |  |  | 7,466 |  |  | 46,938 |  |  | 120,169 |
Total NOLs (c) | $ | 93,089 |  |  | $ | 61,333 |  |  | $ | 46,938 |  |  | $ | 201,360 |
____________________ (a) Federal and state NOLs will expire at various times from 2033 through 2037 and 2022 through 2041, respectively. (b) All indefinite carryforward federal NOLs are subject to the Tax Cuts and Jobs Act 80% taxable income limitation. (C) Federal and state NOLs of $13.6 million and $12.9 million, respectively, 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,
| 2021 |  | 2020 |  | 2019
| (In thousands)
Income tax benefit at the federal statutory rate of 21% | $ | (10,907) |  |  | $ | (10,458) |  |  | $ | (15,799) |
State income taxes, net of effect of federal tax benefit | (138) |  |  | (159) |  |  | 31 |
Change in valuation allowance | 16,883 |  |  | 14,711 |  |  | 16,464 |
Stock-based compensation | (4,041) |  |  | (2,979) |  |  | 299 |
Research credit | (2,163) |  |  | (1,439) |  |  | (1,049) |
Transaction costs | 698 |  |  | 573 |  |  | 2 |
Other, net | 496 |  |  | 579 |  |  | 397 |
Income tax provision | $ | 828 |  |  | $ | 828 |  |  | $ | 345 |
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,
| 2021 |  | 2020 |  | 2019
| (In thousands)
Balance at beginning of period | $ | 1,921 |  |  | $ | 1,475 |  |  | $ | 1,026 |
Additions based on tax positions related to prior years | — |  |  | 538 |  |  | — |
Settlements | (329) |  |  | (645) |  |  | — |
Additions based on tax positions related to the current year | 927 |  |  | 553 |  |  | 449 |
Balance at end of period | $ | 2,519 |  |  | $ | 1,921 |  |  | $ | 1,475 |

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