INCOME TAXES |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| 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 March 31, 2025 and 2024, Vimeo recorded an income tax provision of $0.4 million and $0.3 million, respectively. For the three months ended March 31, 2025, the effective income tax rate was lower than the federal statutory rate of 21% primarily due to movement in the valuation allowance and the impact of executive compensation limits under Internal Revenue Code Section 162(m), partially offset by the effects of international tax provisions as required under 2017 Tax Cuts and Jobs Act. 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 March 31, 2025 and December 31, 2024, unrecognized tax benefits, including interest and penalties, were $6.3 million and $6.0 million, respectively. The Company estimates that it would recognize an income tax benefit of $1.0 million if unrecognized tax benefits at March 31, 2025 are subsequently recognized. Vimeo believes no unrecognized tax benefits would decrease by March 31, 2026. Vimeo recognizes interest and penalties related to unrecognized tax benefits, if applicable, in the income tax provision.
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