The following tables have been prepared on a standalone basis and are derived from the historical accounting records of Vimeo and IAC. The information below reflects the allocation to Vimeo of certain IAC corporate expenses relating to Vimeo based on the historical accounting records of IAC. Further, income taxes have been computed for Vimeo on an as if standalone, separate tax return basis. Accordingly, certain amounts will not agree to Vimeo's results as included in IAC's historical results due to such adjustments made for standalone presentation.
The following table presents Vimeo's consolidated statement of operations for 2019 and 2020:
2019
2020
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Revenue
$
43,581
$
45,713
$
52,145
$
54,576
$
196,015
$
56,968
$
67,334
$
75,130
$
83,786
$
283,218
Cost of revenue (exclusive of depreciation shown separately below)
18,890
18,266
20,730
19,779
77,665
18,358
22,899
22,869
24,951
89,077
Gross profit
24,691
27,447
31,415
34,797
118,350
38,610
44,435
52,261
58,835
194,141
Gross profit margin %
57
%
60
%
60
%
64
%
60
%
68
%
66
%
70
%
70
%
69
%
Operating expenses:
Research and development expense
10,461
10,547
12,305
13,633
46,946
15,293
16,262
16,476
16,207
64,238
Sales and marketing expense
23,544
20,599
21,068
22,126
87,337
25,125
26,519
25,643
28,343
105,630
General and administrative expense
8,729
9,141
8,267
8,052
34,189
12,204
10,983
10,954
15,705
49,846
Depreciation
193
132
39
114
478
58
102
106
194
460
Amortization of intangibles
1,391
2,020
3,119
3,123
9,653
3,123
2,915
6,613
2,093
14,744
Total operating expenses
44,318
42,439
44,798
47,048
178,603
55,803
56,781
59,792
62,542
234,918
Operating loss
(19,627)
(14,992)
(13,383)
(12,251)
(60,253)
(17,193)
(12,346)
(7,531)
(3,707)
(40,777)
Interest expense - related party
(1,677)
(1,955)
(2,418)
(2,488)
(8,538)
(2,453)
(2,372)
(2,160)
(2,131)
(9,116)
Other (expense) income, net (a)
(8,180)
1,872
(45)
(88)
(6,441)
(59)
(164)
89
227
93
Loss before income taxes
(29,484)
(15,075)
(15,846)
(14,827)
(75,232)
(19,705)
(14,882)
(9,602)
(5,611)
(49,800)
Income tax (provision) benefit
(29)
(122)
(72)
(122)
(345)
(555)
106
(205)
(174)
(828)
Net loss
$
(29,513)
$
(15,197)
$
(15,918)
$
(14,949)
$
(75,577)
$
(20,260)
$
(14,776)
$
(9,807)
$
(5,785)
$
(50,628)
Basic and diluted weighted average shares outstanding
116,305
125,261
141,010
141,020
130,994
141,063
141,247
141,282
146,083
142,426
Basic and diluted loss per share (b)
$
(0.25)
$
(0.12)
$
(0.11)
$
(0.11)
$
(0.58)
$
(0.14)
$
(0.10)
$
(0.07)
$
(0.04)
$
(0.36)
The following table provides a reconciliation of Vimeo's net loss to operating loss to Adjusted EBITDA:
2019
2020
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Net loss
$
(29,513)
$
(15,197)
$
(15,918)
$
(14,949)
$
(75,577)
$
(20,260)
$
(14,776)
$
(9,807)
$
(5,785)
$
(50,628)
Add back:
Income tax provision (benefit)
29
122
72
122
345
555
(106)
205
174
828
Other expense (income), net (a)
8,180
(1,872)
45
88
6,441
59
164
(89)
(227)
(93)
Interest expense - related party
1,677
1,955
2,418
2,488
8,538
2,453
2,372
2,160
2,131
9,116
Operating loss
(19,627)
(14,992)
(13,383)
(12,251)
(60,253)
(17,193)
(12,346)
(7,531)
(3,707)
(40,777)
Add back:
Stock-based compensation expense
1,508
1,339
1,895
549
5,291
2,016
4,015
3,526
2,108
11,665
Depreciation
193
132
39
114
478
58
102
106
194
460
Amortization of intangibles
1,391
2,020
3,119
3,123
9,653
3,123
2,915
6,613
2,093
14,744
Adjusted EBITDA (c)
$
(16,535)
$
(11,501)
$
(8,330)
$
(8,465)
$
(44,831)
$
(11,996)
$
(5,314)
$
2,714
$
688
$
(13,908)
(a) Q1 2019 and Q2 2019, includes a realized loss of $8.2 million related to the sale of the hardware business, and a $2.0 million realized gain related to the sale of an investment, respectively.
(b) Quarterly per share amounts may not add up to the related annual per share amount due to differences in the average common shares outstanding during each period.
(c) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of amortization of intangible assets and impairments of goodwill and intangible assets, if applicable. Vimeo believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between Vimeo’s performance and that of its competitors. The above items are excluded from Vimeo’s Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses.
