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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Feb. 22, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 889,122,569
Entity Common Stock, Shares Outstanding		35,081,109
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 230,852	$ 253,428
Accounts receivable, net	41,028	49,932
Prepaid expenses and other current assets	34,841	37,109
Total current assets	306,721	340,469
Property and equipment, net	76,188	85,698
Intangible assets, net	29,540	34,197
Goodwill	88,576	98,654
Deferred tax assets, net	12,375	9,761
Other assets	18,088	8,997
Total assets	531,488	577,776
Current liabilities:
Accounts payable	7,212	7,160
Accrued expenses	51,385	58,734
Contributor royalties payable	22,971	20,088
Deferred revenue	139,604	157,803
Other liabilities	2,131	1,957
Total current liabilities	223,303	245,742
Deferred tax liability, net	77	1,486
Other non-current liabilities	21,441	15,963
Total liabilities	244,821	263,191
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 37,618 and 37,270 shares issued and 35,060 and 34,712 shares outstanding as of December 31, 2018 and December 31, 2017, respectively	376	373
Additional paid-in capital	291,710	272,657
Treasury stock, at cost; 2,558 shares as of December 31, 2018 and December 31, 2017	(100,027)	(100,027)
Accumulated other comprehensive loss	(6,471)	(3,557)
Retained earnings	101,079	145,139
Total stockholders’ equity	286,667	314,585
Total liabilities and stockholders’ equity	$ 531,488	$ 577,776

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	37,618,000	37,270,000
Common stock, shares outstanding (in shares)	35,060,000	34,712,000
Treasury stock, shares (in shares)	2,558,000	2,558,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 162,072	$ 151,575	$ 156,584	$ 153,019	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 557,111	$ 623,250	$ 557,111	$ 494,317
Operating expenses:
Cost of revenue	68,829	66,461	67,891	64,490	64,590	58,812	57,289	52,411		267,671	233,102	203,129
Sales and marketing	43,034	41,028	42,018	40,368	40,844	36,008	37,109	32,503		166,448	146,464	126,626
Product development	11,689	14,032	16,728	16,448	15,210	13,340	12,892	11,044		58,897	52,486	47,789
General and administrative	22,881	23,355	24,322	27,224	23,994	27,333	23,420	23,963		97,782	98,710	70,987
Total operating expenses	146,433	144,876	150,959	148,530	144,638	135,493	130,710	119,921		590,798	530,762	448,531
Income from operations	15,639	6,699	5,625	4,489	7,191	5,570	3,285	10,303		32,452	26,349	45,786
Gain on Sale of Webdam	0	0	0	38,613	0	0	0	0		38,613	0	0
Other (expense) / income, net	1,048	217	(7,019)	802	1,637	130	1,510	455		(4,952)	3,732	(1,289)
Income before income taxes	16,687	6,916	(1,394)	5,291	8,828	5,700	4,795	10,758		66,113	30,081	44,497
Provision for income taxes	$ 1,774	$ (531)	$ (1,140)	$ 11,323	$ 6,772	$ 698	$ 1,729	$ 4,155		11,426	13,354	11,869
Net income										$ 54,687	$ 16,727	$ 32,628
Earnings per share:
Basic (in dollars per share)	$ 0.43	$ 0.21	$ (0.01)	$ 0.94	$ 0.06	$ 0.14	$ 0.09	$ 0.19		$ 1.57	$ 0.48	$ 0.93
Diluted (in dollars per share)	$ 0.42	$ 0.21	$ (0.01)	$ 0.92	$ 0.06	$ 0.14	$ 0.09	$ 0.19		$ 1.54	$ 0.47	$ 0.91
Weighted average shares outstanding:
Basic (in shares)	35,047	34,991	34,913	34,784	34,686	34,643	34,581	34,597		34,935	34,627	35,114
Diluted (in shares)	35,421	35,570	34,913	35,318	35,149	35,177	35,250	35,595		35,420	35,291	35,861

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 54,687	$ 16,727	$ 32,628
Foreign currency translation (loss) / gain	(2,914)	13,504	(10,612)
Other comprehensive (loss) / income	(2,914)	13,504	(10,612)
Comprehensive income	$ 51,773	$ 30,231	$ 22,016

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Balance at Dec. 31, 2015	$ 288,566	$ 361	$ (15,635)	$ 213,851	$ (6,449)	$ 96,437
Balance (in shares) at Dec. 31, 2015		36,146	460
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	28,987			28,987
Issuance of common stock in connection with employee stock option exercises and RSU vesting	8,714	$ 7		8,707
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		745
Common shares withheld for settlement of taxes in connection with equity-based compensation	(1,032)	$ 0		(1,032)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(18)
Issuance of common stock in connection with employee stock purchase plan	1,803	$ 1		1,802
Issuance of common stock in connection with employee stock purchase plan (in shares)		54
Tax effect from employee stock option exercises and RSU vesting	(425)			(425)
Repurchase of Treasury Shares	(61,932)		$ (61,932)
Repurchase of Treasury Shares (in shares)			1,650
Other comprehensive income	(10,612)				(10,612)
Net income	32,628					32,628
Balance at Dec. 31, 2016	286,696	$ 369	$ (77,567)	251,890	(17,061)	129,065
Balance (in shares) at Dec. 31, 2016		36,926	2,110
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of Accounting Change (See Note 1)	326			979		(653)
Adjusted beginning balance	287,022	$ 369	$ (77,567)	252,869	(17,061)	128,412
Equity-based compensation	24,958			24,958
Issuance of common stock in connection with employee stock option exercises and RSU vesting	1,682	$ 6		1,677
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		503
Common shares withheld for settlement of taxes in connection with equity-based compensation	(6,848)	$ (2)		(6,846)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(159)
Repurchase of Treasury Shares	(22,460)		$ (22,460)
Repurchase of Treasury Shares (in shares)			449
Other comprehensive income	13,504				13,504
Net income	16,727					16,727
Balance at Dec. 31, 2017	314,585	$ 373	$ (100,027)	272,657	(3,557)	145,139
Balance (in shares) at Dec. 31, 2017		37,270	2,558
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of Accounting Change (See Note 1)	6,178			0		6,178
Adjusted beginning balance	320,763	$ 373	$ (100,027)	272,657	(3,557)	151,317
Equity-based compensation	23,869			23,869
Issuance of common stock in connection with employee stock option exercises and RSU vesting	2,455	$ 5		2,449
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		498
Common shares withheld for settlement of taxes in connection with equity-based compensation	(7,268)	$ (2)		(7,266)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(150)
Payment of Special Dividend	(104,925)					(104,925)
Other comprehensive income	(2,914)				(2,914)
Net income	54,687					54,687
Balance at Dec. 31, 2018	$ 286,667	$ 376	$ (100,027)	$ 291,710	$ (6,471)	$ 101,079
Balance (in shares) at Dec. 31, 2018		37,618	2,558

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 54,687	$ 16,727	$ 32,628
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	45,652	35,490	19,946
Deferred taxes	(6,270)	12,491	1,767
Non-cash equity-based compensation	23,869	24,958	28,080
Change in fair value of contingent consideration	0	0	2,925
Settlement of contingent consideration liability in excess of acquisition-date fair value	0	(6,255)	(1,640)
Gain on Sale of Webdam	(38,613)	0	0
Loss on impairment of long-term investment	5,881	0	0
Bad debt reserve	1,175	1,292	2,992
Chargeback and sales refund reserves	0	0	(30)
Changes in operating assets and liabilities:
Accounts receivable	2,641	(10,015)	(13,232)
Prepaid expenses and other current and non-current assets	113	(6,734)	(2,412)
Accounts payable and other current and non-current liabilities	6,388	12,044	1,612
Contributor royalties payable	3,021	(685)	3,118
Deferred revenue	3,658	28,724	24,969
Net cash provided by operating activities	102,202	108,037	100,723
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(34,890)	(55,062)	(39,959)
Investment sales, net	0	55,286	(7,673)
Acquisitions of businesses, net of cash acquired	(845)	(49,571)	0
Proceeds from Sale of Webdam, net	41,804	0	0
Other investments / advances	(15,000)	(5,087)	(660)
Acquisition of digital content	(3,838)	(2,961)	(8,045)
Security deposit (payment)/release	(58)	30	(71)
Net cash used in investing activities	(12,827)	(57,365)	(56,408)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	2,454	1,682	8,711
Proceeds from issuance of common stock under Employee Stock Purchase Plan	0	0	1,803
Cash paid related to settlement of employee taxes related to RSU vesting	(7,268)	(6,848)	(1,032)
Cash paid for Special Dividend	(104,925)	0	0
Settlement of contingent consideration liability	0	(3,745)	(2,360)
Repurchase of treasury shares	0	(24,977)	(60,232)
Net cash used in financing activities	(109,739)	(33,888)	(53,110)
Effect of foreign exchange rate changes on cash	(2,212)	12,454	(7,535)
Net (decrease) / increase in cash, cash equivalents and restricted cash	(22,576)	29,238	(16,330)
Cash, cash equivalents and restricted cash, beginning of period	256,041	226,803	243,133
Cash, cash equivalents and restricted cash, end of period	233,465	256,041	226,803
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 580	$ 4,984	$ 19,186

Summary of Operations and Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Operations and Significant Accounting Policies

Description of Business

Shutterstock (the “Company” or “Shutterstock”) is a global technology company offering a creative platform, which provides high-quality digital content, tools and services to creative professionals. The digital content licensed by the Company’s customers includes: (a) imagery, consisting of licensed photographs, vectors, illustrations and video clips, which is used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and video content; and (b) music, consisting of high-quality music tracks and sound effects, which is often used to complement digital imagery. The Company licenses content to its customers. Contributors upload their content to the Company’s web properties in exchange for royalty payments based on customer download activity. The Company also offered digital asset management services through its cloud-based digital asset management platform (“Webdam”). As discussed in Note 4, on February 26, 2018, the Company completed a sale transaction, pursuant to which the buyer in the transaction acquired certain assets and assumed certain contracts and liabilities which constituted the Company’s digital asset management business (the “Sale of Webdam”).

Principles of Consolidation and Basis of Presentation

The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the grant-date fair value of non-cash equity-based compensation, the assessment of recoverability of deferred tax assets and the measurement of certain income tax and non-income tax liabilities.

Concentration of Risk

Financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable balances. Cash and cash equivalents are held with financial institutions of high quality. Balances may exceed the amount of insurance provided on such deposits.

The majority of the Company’s revenues are derived from customers who license content using electronic payments at the time of a transaction. The Company’s accounts receivable are primarily from enterprise customers who require invoicing. The Company performs initial and ongoing credit reviews on these customers, which involve consideration of the customers’ financial information, their location, and other factors to assess the customers’ ability to pay. The Company also performs ongoing financial condition evaluations for its existing customers. As of December 31, 2018 and 2017, no single customer accounted for or exceeded 10% of accounts receivable.

Additionally, no single customer accounted for or exceeded 10% of revenue for the years ended December 31, 2018, 2017 or 2016.

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2018 and 2017 (in thousands):



	As of December 31, 2018		As of December 31, 2017
Cash and cash equivalents	$	230,852	$	253,428
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	233,465	$	256,041

The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts, which are stated at cost, which approximates fair value.

The Company’s restricted cash relates to security deposits related to the lease for its headquarters in New York City, which expires in 2029. The carrying value of restricted cash approximates fair value. Restricted cash is included as a component of other assets on the Consolidated Balance Sheets.

Fair Value Measurements

The Company records its financial assets and liabilities at fair value. Fair value is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. Fair value is estimated by applying inputs which are classified into the following levels of a three-tier hierarchy as follows: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2- inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 - unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions regarding what market participants would use in pricing.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable consists of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates. The following table presents the changes in the Company’s allowance for doubtful accounts (in thousands):



	Year Ended December 31,
	2018			2017			2016
Balance, beginning of period	$	4,088		$	5,495		$	3,768
Add: bad debt expense	1,175			1,292			2,992
Less: write-offs, net of recoveries and other adjustments	(566		)	(2,699		)	(1,265		)
Balance, end of period	$	4,697		$	4,088		$	5,495

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the related assets. Generally, the useful lives are as follows:



Equipment	3 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Shorter of expected useful life or lease term

Capitalized Internal Use Software

The Company capitalizes the qualifying costs of computer software developed for internal use, which are incurred during the application development stage, and amortizes them over the software’s estimated useful life. Costs incurred in the preliminary and post-implementation stages of the Company’s products are expensed as incurred. The amounts capitalized include employee’s payroll and payroll-related costs directly associated with the development activities as well as external direct costs of services used in developing internal-use software. The Company’s policy is to amortize capitalized costs using the straight-line method over the estimated useful life, which is currently three years, beginning when the software is substantially complete and ready for its intended use.

Impairment of Long-Lived Assets

Long-lived assets, inclusive of definite lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying value or the fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. There were no long-lived asset impairment charges in 2018, 2017 or 2016.

Goodwill and Intangible Assets

Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually on October 1 of each fiscal year or more frequently if events occur or circumstances exist that indicate that the fair value of a reporting unit may be below its carrying value. Goodwill has been allocated to the Company’s reporting units, for the purposes of preparing the impairment analysis, based on a specific identification basis. Since inception through December 31, 2018, the Company did not have any goodwill or indefinite lived intangible asset impairment.

Revenue Recognition

The majority of the Company’s revenue is earned from the license of digital content. Digital content licenses are generally purchased on a monthly or annual subscription basis, whereby a customer pays for a predetermined quantity of content that may be downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. Prior to the Sale of Webdam, the Company also earned revenue from licensing hosted software services through Webdam’s cloud-based tools for businesses, which were purchased as part of a subscription.

Prior to the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) on January 1, 2018, and reflected in the reported revenue amounts for the years ended December 31, 2017 and 2016, the Company recognized revenue when all of the following basic criteria were met: there was persuasive evidence of an arrangement, performance or delivery of services had occurred, the sales price was fixed or determinable, and collectability was reasonably assured. The Company considered persuasive evidence of an arrangement to be an electronic order form, or a signed contract, which contained the fixed pricing terms. Performance or delivery for digital content licenses was considered to have occurred upon the download of the licensed content. Subscription revenue was recognized upon each download using an effective per-license rate and revenue associated with any unused licenses was recognized at the subscription expiration. Revenue attributable to the hosted software services was recognized ratably during the license subscription.

Effective January 1, 2018, subsequent to the adoption of ASU 2014-09, the Company recognizes revenue upon the satisfaction of performance obligations, which occurs when (i) digital content is downloaded by a customer or (ii) hosted software services are provisioned and available to a customer. For digital content licenses, the Company recognizes revenue on both its subscription-based and transaction-based sales when content is downloaded, at which time the license is provided. In addition, management estimates expected unused licenses for subscription-based products and recognizes the revenue associated with the unused licenses throughout the subscription period. The estimate of unused licenses is based on historical download activity and future changes in the estimate could impact the timing of revenue recognition of the Company’s subscription products. Revenue associated with hosted software services is recognized ratably over the term of the license. ASU 2014-09 has resulted in a change in the timing of recognizing revenue on the Company’s digital content license subscription products. ASU 2014-09 did not impact revenue recognition on digital content licenses sold on a transactional basis or license revenue associated with hosted software services.

Prior to the adoption of ASU 2014-09, the Company deferred certain acquisition costs that were then amortized over a period of less than one year. Effective January 1, 2018, the Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less.

Collectability is reasonably assured at the time the electronic order or contract is entered. The majority of the Company’s customers purchase products by making electronic payments at the time of the transaction with a credit card. The Company establishes an allowance for credit card chargebacks and a sales refund reserve based on factors surrounding historical chargeback and sales refund trends and other information. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payments under standard credit terms. Collectability for customers who pay on credit terms allowing for payment beyond the date at which service commences, is based on a credit evaluation for certain new customers and transaction history with existing customers. As of December 31, 2018 and 2017, the Company had recorded an allowance for chargebacks and sales refunds of $0.3 million and $0.4 million, respectively, which is included in other liabilities.

The Company recognizes revenue gross of contributor royalties because the Company is the principal in the transaction as it is the party responsible for the performance obligation and it controls the product or service before transferring it to the customer. The Company also licenses content to customers through third-party resellers. Third-party resellers sell the Company’s products directly to customers as the principal in those transactions. Accordingly, the Company recognizes revenue net of costs paid to resellers.

Cost of Revenue

The Company’s cost of revenue includes contributor royalties, credit card processing fees, content reviewer expenses, hosting and bandwidth expenses, content personnel salaries, non-cash equity-based compensation, amortization of content and technology intangible assets, and depreciation of network equipment, which are the direct costs related to providing content and service to customers. Additionally, the Company includes an allocation of overhead costs primarily related to payroll, insurance, and facilities expenses based on headcount.

Contributor Royalties and Internal Sales Commissions

The Company expenses contributor royalties in the period a customer download occurs and includes the corresponding contributor royalties in cost of revenue. Contributor royalties are generally paid weekly or monthly. The Company advances certain contributor royalties which are initially deferred and expensed based on the contractual royalty rate at the time of customer download or when the Company determines future recovery is not probable. For the years ended December 31, 2018, 2017 and 2016, the Company deferred $6.2 million, $4.7 million and $5.0 million, respectively, in royalty advances and amortized $6.1 million, $4.9 million and $5.5 million, respectively, in royalty advance expense which is included in cost of revenue. As of December 31, 2018 and 2017, the Company has deferred contributor royalties of $2.6 million and $2.5 million, respectively, which is included in prepaid expenses and other current assets in the Consolidated Balance Sheets.

Internal sales commissions are generally paid in the month following collection or invoicing of the commissioned receivable and is reported in sales and marketing expense. Effective January 1, 2018, upon the adoption of ASU 2014-09, the Company expenses contract acquisition costs, including internal sales commissions as incurred, to the extent that the amortization period would otherwise be one year or less. Prior to the adoption of ASU 2014-09, internal sales commissions were deferred and recognized over the expected future revenue stream which was generally up to 12 months. For the years ended, December 31, 2017 and 2016, the Company deferred $5.5 million and $4.5 million, respectively, and amortized $5.0 million and $4.7 million, respectively, in internal sales commission expense which was included in sales and marketing expense on the Consolidated Statements of Operations. As of December 31, 2017, the Company had deferred internal sales commission of $1.9 million, which was included in prepaid expenses and other current assets in the Consolidated Balance Sheets.

Product Development

The Company expenses product development costs as incurred, except for costs that are capitalized for certain internal software development projects. Product development costs are primarily comprised of development personnel salaries, non-cash equity-based compensation, equipment costs as well as allocated occupancy costs and related overhead.

Advertising Costs

The Company expenses the cost of advertising and promoting its products as incurred. Such costs totaled $91.5 million, $76.6 million and $64.9 million for the years ended December 31, 2018, 2017 and 2016, respectively, which are included in sales and marketing expense in the Consolidated Statements of Operations.

Deferred Rent

The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized and the actual payments made in accordance with the lease agreement is recognized as a deferred rent liability on the Company’s balance sheet. As of December 31, 2018 and 2017, the Company had deferred rent of $11.3 million, and $11.1 million, respectively, which is included in other non-current liabilities in the Consolidated Balance Sheets.

Equity-Based Compensation

The Company measures and recognizes non-cash equity-based compensation expense for all stock-based awards granted to employees based on estimated fair values. The value portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period. Forfeitures are accounted for as they occur. For awards with a change of control condition, an evaluation is made at the grant date and future periods as to the likelihood of the condition being met. Compensation expense is adjusted in future periods for subsequent changes in the expected outcome of the change of control conditions until the vesting date. Compensation expense related to awards with a market condition is recognized ratably over the requisite service period regardless of the achievement of the market condition.

The Company uses the Black Scholes option pricing model, the closing price of the Company’s common stock on the date of grant, and the Monte Carlo simulation model, if the award has a market condition, to determine the fair value of stock options and restricted stock units (“RSUs”), respectively, granted pursuant to the 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) and stock purchased pursuant to the 2012 Employee Stock Purchase Plan (“2012 ESPP”), which are discussed further in Note 10, Equity-Based Compensation.

The determination of the grant date fair value using an option-pricing model and simulation model requires judgment as well as assumptions regarding a number of other complex and subjective variables. These variables include the Company’s closing market price at the grant date, the expected stock price volatility over the expected term of the awards, awards’ exercise and cancellation behaviors, risk-free interest rates, and expected dividends, which are estimated as follows:


•	Fair Value of Common Stock. The grant date fair value for stock-based awards is based on the closing price of the Company’s common stock on the NYSE on the date of grant and fair value for all other purposes related to stock-based awards shall be the closing price of the Company’s common stock on the NYSE on the relevant date.


•	Expected Term. The expected term is estimated using the simplified method allowed under Securities and Exchange Commission (“SEC”) guidance. In certain cases for market based awards, the Company’s expected term is based on a combination of historical data and estimates of the period of time the award will be outstanding.


•	Volatility. The volatility is estimated based on historical price volatility of the Company’s common stock.


•	Risk-free Interest Rate. The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of each award group.


•	Dividend Yield. The Company has not paid recurring cash distributions to its stockholders and it does not intend to do so for the foreseeable future. As a result, the Company used an expected dividend yield of zero.

If any of the assumptions used in the Black-Scholes pricing model or Monte Carlo simulation model changes significantly, the fair value for future awards may differ materially compared with the awards granted previously. The awards granted pursuant to the 2012 Plan, and stock purchased pursuant to the 2012 ESPP are subject to a time-based vesting requirement and certain award grants may also include market based vesting conditions. The majority of stock option awards granted under the 2012 Plan vest over four years while the majority of the restricted stock units granted under the 2012 Plan vest over three years. The 2012 ESPP provides for purchase periods approximately every six months and a participant must be employed on the purchase date to participate.

The Company adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employees Share-Based Payment Accounting (“ASU 2016-09”) on January 1, 2017. Upon adoption of this standard, all income tax effects related to settlements of share-based payment awards are now reported as an increase or decrease to the provision for income taxes. In addition, starting January 1, 2017, the Company accounted for forfeitures as they occurred and, as of January 1, 2017, recognized a $0.7 million reduction to retained earnings as the cumulative effect of the change in accounting principle. The Company adopted the cash flow presentation component of ASU 2016-09 retrospectively, and accordingly, decreased cash flows from operating activities by $0.4 million and increased cash flows from financing activities by $0.4 million for the year ended December 31, 2016 from amounts previously reported.

Employee Benefit Plans

The Company offers a 401(k) defined contribution plan and provides for discretionary employer matching contributions. Matching contributions are fully vested, non-forfeitable at all times and are recognized as an expense in the Statement of Operations, as incurred. The Company recorded employer matching contributions of $3.2 million, $1.8 million and $1.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Income Taxes

The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis, and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.

The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. The Company records an income tax liability for the difference, if any, between the benefit recognized and measured and the tax position taken or expected to be taken on the Company’s tax returns. To the extent that the assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The reserves are adjusted in light of changing facts and circumstances, such as the outcomes of tax audits or lapses in statutes of limitations. Any reserve for uncertain tax provisions and related penalties and interest is included in the income tax provision.

The Company assessed the realizability of deferred tax assets and determined, based on the available evidence including a history of taxable income, estimates of future taxable income and planning strategies, that it is more likely than not that the deferred tax assets will be realized. The Company will continue to evaluate its ability to realize deferred tax assets on a quarterly basis. Significant management judgment is required in determining the provision for income taxes and deferred tax assets and liabilities. In the event that actual results differ from these estimates, the Company will adjust these estimates in future periods which may result in a change in the effective tax rate in a future period.

Except as required under U.S. tax laws, the Company does not provide for U.S. taxes on the undistributed earnings of its foreign subsidiaries. With the enactment of the H.R.1 (commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “TCJA”)), the Company is required to treat the undistributed earnings and profits of its foreign subsidiaries accumulated through a measurement period that should not extend more than one year beyond the date of the enactment of the TCJA as if they were repatriated to the U.S., and pay a current U.S. tax amount as a result of such “deemed” repatriation. The Company’s tax expense for the year ended December 31, 2017 included a provisional amount for such taxes. The Company has not recorded any provision for potential deferred U.S. income taxes or foreign withholding taxes that otherwise may be payable if it were to repatriate such earnings, since the Company does not intend to repatriate such amounts.

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the TCJA. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. In the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost.

The Company previously recorded provisional estimates for the accounting impacts of the TCJA, including the transition tax, deferred tax re-measurements, and other items, due to the uncertainty regarding how these provisions were to be implemented and additional anticipated forthcoming guidance. Management completed its analysis of the TCJA, and has not made any significant adjustments to estimates previously recorded. The Company continues to assess the impacts of the TCJA on future fiscal years and is monitoring the Internal Revenue Service guidance intended to interpret the provisions of the TCJA.

Other Non-income Taxes

The Company is subject to certain non-income taxes, including value added taxes, sales taxes and royalty withholding taxes. Where appropriate, the Company has made accruals for these taxes, which are reflected in the Company’s consolidated financial statements. These accruals are subject to statute of limitations requirements and review by governmental authorities.

Treasury Stock

The Company accounts for treasury stock under the cost method and is included as a component of stockholders’ equity. Treasury stock held by the Company may be reissued in the future. The Company’s policy is to account for reissued shares as a reduction of Treasury stock on a first-in, first-out basis.

Net Income Per Share

Basic net income per share is computed by dividing the net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, is excluded from weighted average number of common shares outstanding. Income available to common stockholders is computed by deducting income allocated to participating securities, if any, including unvested shares for the restricted award holder since these unvested shares have participating rights.

Diluted net income per share is computed by dividing the net income attributable to common stockholders by the weighted average common shares outstanding and all potential common shares, if they are dilutive.

Reportable Segments

For the year ended December 31, 2018, the Company has identified one operating segment, which has also been determined to be the Company’s primary reportable business segment. Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The non-reportable segment classified in the Other Category previously included the Company’s digital asset management operating segment, which fails to meet the quantitative or qualitative thresholds for separate segment reporting and was sold on February 26, 2018.

Contingent Consideration

The Company records a liability for contingent consideration at the date of a business combination and reassesses the fair value of the liability each period until it is settled. Upon settlement of these liabilities, the portion of the contingent consideration payment that is attributable to the initial amount recorded as part of the business combination is classified as a cash flow from financing activities and the portion of the settlement that is attributable to subsequent changes in the fair value of the contingent consideration is classified as a cash flow from operating activities in the Consolidated Statement of Cash Flows.

Foreign Currency

The functional currency of the Company’s foreign subsidiaries is generally the respective local currency. Monetary assets and liabilities that are denominated in currencies other than each entity’s functional currency are remeasured into the functional currency at the period-end exchange rates and result in transactional gains and losses. The net impact of foreign currency transactional gains and losses on the Company’s results of operations was a loss of $2.2 million in 2018 and gains of $2.6 million and $1.0 million in 2017 and 2016, respectively. Translation adjustments resulting from converting the foreign subsidiaries financial statements into U.S. dollars using the period-end exchange rates for balance sheet accounts and the period average exchange rate for the Statements of Operations are recorded as a component of accumulated other comprehensive income / (loss) within stockholders’ equity.

Recently Adopted Accounting Standard Updates

In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). ASU 2018-05 codifies existing SEC guidance contained in SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which expresses the view of the staff regarding application of existing guidance for the accounting for income taxes as it relates to the enactment of the TCJA, which was signed into law in the fourth quarter of 2017. In accordance with ASU 2018-05, the Company had previously recorded provisional estimates for the accounting impacts of the TCJA, including the transition tax, deferred tax re-measurements, and other items, due to the uncertainty regarding how these provisions were to be implemented and additional anticipated forthcoming guidance. The Company completed its analysis of the TCJA, which included the lowering of the Company’s statutory federal income tax rate and the enactment of a one-time transition tax on accumulated undistributed earnings of foreign subsidiaries and have not made any significant adjustments to estimates previously recorded. The Company continues to assess the impacts of the TCJA on future fiscal years and monitors the Internal Revenue Service guidance intended to interpret the provisions of the TCJA.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. The Company elected to early adopt the amended guidance in the fourth quarter of fiscal 2018. The early adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations - Clarifying the Definition of a Business. ASU 2017-01 provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Effective January 1, 2018, the Company adopted ASU 2017-01 on a prospective basis. Adoption of ASU 2017-01 had no effect on the Company’s consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires entities to present restricted cash with cash and cash equivalents on the statement of cash flows when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The Company adopted ASU 2016-18 retrospectively on January 1, 2018. As a result of this adoption, the Company has revised the presentation of its statement of cash flows for the twelve months ended December 31, 2017, to reflect restricted cash of $2.6 million in both the beginning and ending balances of cash, cash equivalents and restricted cash. There were no changes to previously reported amounts of cash used or provided by operating activities, investing activities or financing activities during the period.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires entities to measure all investments in equity securities at fair value and recognize any changes in fair value within the statement of operations. Under the standard, equity investments that do not have readily determinable fair values are eligible for a measurement alternative that allows for these investments to be recorded at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company adopted ASU 2016-01 on January 1, 2018. Adoption of ASU 2016-01 had no effect on the Company’s consolidated financial statements. ASU 2016-01 may increase the volatility in the statement of operations upon the occurrence of observable price changes or impairments in the equity securities.

In May 2014, the FASB issued ASU 2014-09. ASU 2014-09, together with its related amendments, provides a unified model to determine when and how revenue is recognized and requires certain additional disclosures around the nature, amount, timing, and uncertainty of revenue and cash flows arising from customers. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires deferral of incremental costs associated with the cost of acquiring a customer contract, such as sales commissions, and amortization of such amounts over the contract term. However, as a practical expedient, if the amortization period of the deferred cost would be one year or less, the entity is permitted to expense these costs as incurred.

The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective approach, and prior period amounts were not restated. This standard resulted in a change in the timing of recognizing revenue on the Company’s digital content license subscription products. The Company has elected to utilize the practical expedient with regard to recognition of expense related to deferred contract acquisition costs, which resulted in a change in the timing of the recognition of such expenses.

The effect of adoption of this new guidance on the Consolidated Balance Sheet as of January 1, 2018 was to reduce prepaid expenses and other current assets and to reduce deferred revenues, with an offsetting increase in 2018 opening retained earnings, as follows (in thousands):



	As Reported December 31, 2017	Adjustment		Revised January 1, 2018
Prepaid expenses and other current assets⁽¹⁾	37,109	(3,733	)	33,376
Deferred revenue	157,803	(9,911	)	147,892
Retained earnings	145,139	6,178		151,317

(1)Prepaid expenses and other current assets adjustment is attributable to the reduction in deferred commissions and income tax receivables.

The effect of adoption of this new guidance on the Company’s reported balance sheet and statements of operations is as follows (in thousands):



	As Reported Under ASU 2014-09	Impact of Adoption		Under Legacy Guidance
For the twelve months ended December 31, 2018:
Revenue	623,250	(1,359	)	621,891
Cost of revenue	267,671	(185	)	267,486
Provision for income taxes	11,426	(188	)	11,238
Net income	54,687	986		55,673
As of December 31, 2018:
Prepaid expenses and other current assets	34,841	4,106		38,947
Deferred revenue	139,604	11,270		150,874
Retained Earnings	101,079	(7,164	)	93,915

Recently Issued Accounting Standard Updates

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company plans to adopt this standard as of January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. The Company has also elected the option, as permitted in ASU 2018-11, Leases (Topic 842): Targeted Improvements, whereby initial application of the new leases standard would occur at the adoption date and a cumulative-effect adjustment would be recognized to the opening balance of retained earnings in the period of adoption. For comparability purposes, the Company will continue to comply with existing disclosure requirements in accordance with existing lease guidance for all periods presented in the year of adoption.

The Company will elect the practical expedients permitted under the transition guidance which enables: (1) the carryforward of the historical lease classification; (2) the re-assessment about whether expired or existing contracts are or contain leases; and, (3) the re-assessment of initial direct costs for existing leases. In addition, the Company will make an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Upon adoption of this standard, the Company will recognize a lease liability in the range of $55 million to $60 million, representing the present value of the minimum rental payments remaining as of the adoption date. In addition, the Company will recognize a right of use asset in the range of $45 million to $50 million. The Company is still finalizing the impact of adopting this new accounting standard on its financial statements. The Company’s significant long-term leases relate primarily to its office facilities, which are described in Note 15, Commitments and Contingencies.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance is required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. Adoption of this guidance is required for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company is evaluating the impact of adopting this new standard on its financial statements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirements for capitalizing implementation costs incurred for an internal-use software license. Adoption of this guidance is required for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and early adoption is permitted. Entities are permitted to choose to adopt the new guidance (1) prospectively for eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company is evaluating the impact of this new accounting standard on its financial statements.

Fair Value Measurements and Other Long-term Investments

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements and Other Long-term Investments

Fair Value Measurements

The following table presents the Company’s fair value hierarchy for its assets as of December 31, 2017 (in thousands). The Company had no assets or liabilities requiring fair value hierarchy disclosures as of December 31, 2018.



	As of December 31, 2017
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	55,775	$	55,775	$	—	$	—
Total assets measured at fair value	$	55,775	$	55,775	$	—	$	—

Money Market Accounts

Cash equivalents include money market accounts and are classified as a level 1 measurement based on quoted prices in active markets for identical assets that the reporting entity can access at the measurement date.

Acquisition-Related Contingent Consideration

The Company reassesses the fair value of contingent consideration to be settled in cash related to certain of the Company’s acquisitions using the Black-Scholes model until the settlement amount of the cash flow is determinable. These contingencies are considered level 3 measurements. Significant assumptions used in measuring the fair value include probabilities of achieving certain revenue milestones based on the Company’s expectations and a discount rate which is based on an unobservable input that is supported by little or no market activity.

As of January 1, 2017, the settlement amount of the contingent consideration related to the Company’s acquisition of PremiumBeat was determined to be $10 million and was included in other liabilities. No changes in fair value were recorded during the year ended December 31, 2017. The contingent consideration of $10 million was paid in the first quarter of 2017.

Other Fair Value Measurements

Cash, accounts receivable, restricted cash, accounts payable and accrued expenses carrying amounts approximate fair value because of the short-term nature of these instruments. The Company’s non-financial assets, which include property and equipment, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required and the Company is required to evaluate the non-financial asset for impairment, a resulting asset impairment would require that the non-financial asset be recorded at the fair value.

Other Long-term Investments

Long-term Lending Facility and Note Receivable

On October 20, 2016, the Company entered into a multi-part transaction, as amended in March 2017, with SilverHub Media Limited (“SHM”), an unrelated third-party contributor. The amended transaction included the following components: (a) a revolving credit facility pursuant to which the Company would be obligated to lend up to $3.3 million under certain conditions, (the “Facility”) to SHM, which was fully drawn as of November 2017; (b) a $1.6 million investment in a convertible note issued by SHM, which had a maturity date of October 20, 2021; (c) a distribution agreement, under which the Company is the exclusive distributor of SHM’s content in certain markets subject to certain limitations; and (d) an option to acquire SHM at any time after the third anniversary of the Facility or to match any third-party acquisition offer with respect to SHM at any time until the fifth anniversary of the Facility.

In June 2018, SHM breached certain provisions of the distribution agreement, which constituted an event of default under the Facility. As a result of the occurrence of one or more events of default, the Company provided notice to SHM to demand immediate payment of all outstanding borrowings under the Facility and the convertible note, including accrued interest. SHM was unable to pay the outstanding borrowings and accrued interest and therefore, an administrator was appointed and SHM entered into United Kingdom administration (bankruptcy) proceedings. The Company has determined that its investments in SHM, including the Facility, the convertible note, accrued interest and a minor equity investment, experienced an other-than-temporary impairment and therefore, the Company recorded a $5.9 million impairment charge during the three months ended June 30, 2018 in order to reduce the fair value of the Company’s investment in SHM to zero. This charge was recorded in Other (expense)/income, net in the Consolidated Statements of Operations. The investment was previously reported within Other assets on the Consolidated Balance Sheet.

Investment in ZCool Technologies Limited (“ZCool”)

On January 4, 2018, the Company invested $15.0 million in convertible preferred shares issued by ZCool (the “Preferred Shares”), which is equivalent to a 25% fully diluted equity ownership interest. ZCool’s primary business is the operation of an e-commerce platform in China whereby customers can pay to license content contributed by creative professionals. ZCool has been the exclusive distributor of Shutterstock content in China since 2014.

ZCool is a variable interest entity that is not consolidated because the Company is not the primary beneficiary. The Preferred Shares are not deemed to be in-substance common stock and will be accounted for using the measurement alternative for equity investments with no readily determinable fair value. The Preferred Shares will be reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments issued by ZCool. As of December 31, 2018, the Company’s total investment in ZCool is approximately $15 million, which is reported within Other assets on the Consolidated Balance Sheet.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Acquisition Activity

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisition Activity

Acquisition Activity in 2017

Flashstock Technology, Inc.

On July 7, 2017, the Company acquired all of the shares of Flashstock Technology, Inc. (“Flashstock”) pursuant to a stock purchase agreement. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

Flashstock is a Toronto-based company that enables the creation of custom content through a propriety software platform. The Company believes this acquisition will strengthen the Company’s strategic position and serve as the foundation for the Company to bring a comprehensive custom content offering to market.

The fair value of consideration transferred in this business combination was allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The Company considered the intangible assets acquired in the transaction, and determined customer relationships and acquired developed technology meet the separability criteria.

The total purchase price was $51.7 million of which $50.9 million was paid with existing cash on hand during the year ended December 31, 2017, and $0.8 million which was paid in the first quarter of 2018 for the settlement of working capital adjustments. The unpaid portion of the purchase price was included in accrued expenses as of December 31, 2017.

The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands):



Assets:
Cash and cash equivalents	$	1,330
Accounts receivable	3,105
Prepaid expenses and other current assets	155
Intangible Assets:
Customer relationships	3,000
Developed technology	2,200
Goodwill	46,217
Total assets acquired	56,007
Liabilities:
Accrued expenses	(279		)
Accounts payable	(99		)
Deferred tax liability, net	(333		)
Deferred revenue	(3,550		)
Total liabilities acquired	(4,261		)
Net assets acquired	$	51,746

Fair value adjustments relating to this acquisition were finalized as of December 31, 2017, which were within the allowable measurement period.

The identifiable intangible assets have a weighted average life of approximately seven years and are being amortized on a straight-line basis. The fair value of the customer relationships was determined using a variation of the income approach known as the multiple-period excess earnings method. The fair value of the developed technology was determined using the relief-from-royalty method.

The goodwill arising from the transaction is primarily attributable to assembled workforce, future growth opportunities in the custom content market, potential economies of scale arising from the combined entity’s ability to leverage the Company’s existing global sales and marketing reach, and potential synergies arising from the addition of custom content offerings for the Company’s existing customer base. Approximately 26% of goodwill will be deductible for income tax purposes.

In connection with the acquisition, the Company recorded approximately $0.8 million of professional fees in the year ended December 31, 2017. The professional fees are included in general and administrative expense.

The Company has performance-based bonus arrangements with certain Flashstock employees who are now employees of Shutterstock. These employees are entitled to additional compensation if: (i) the custom content business achieves certain financial targets for the 2019 calendar year and (ii) the individual is employed by Shutterstock as of December 31, 2019. These performance-based bonuses will be reported as period expenses within general and administrative expenses in the Consolidated Statements of Operations, and are not considered part of the Flashstock purchase price.

Acquisition Activity in 2016

The Picture Desk Limited

On September 1, 2016, the Company acquired content assets and intellectual property of The Picture Desk Limited, which includes over 700,000 images from two image collections: The Art Archive and The Kobal Collection, pursuant to an asset purchase agreement. The total purchase price consisted of a cash payment of $3.9 million including transaction costs, which has been recorded as an addition to intangible assets, of which $3.6 million has been recorded under contributor content with an estimated useful life of 15 years, and the remainder has been recorded under trade name with an estimated useful life of 7 years.

Sale of Webdam	12 Months Ended
Sale of Webdam	Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Sale of Webdam	Sale of Webdam Sale of Digital Asset Management Business On February 26, 2018, the Company completed the Sale of Webdam for an aggregate purchase price of $49.1 million. Total cash received during 2018, net of $4.6 million transaction costs paid, was $41.8 million with an additional $2.5 million receivable remaining in escrow at the balance sheet date. The funds in escrow are included as a component of other current assets on the Consolidated Balance Sheet as of December 31, 2018 and are expected to be released to the Company in the first quarter of 2019. The Company recognized a pre-tax gain on sale of approximately $38.6 million.

Property and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment is summarized as follows (in thousands):



	December 31,
	2018			2017
Computer equipment and software	$	148,104		$	118,493
Furniture and fixtures	10,020			9,970
Leasehold improvements	18,822			18,487
Property and equipment	176,946			146,950
Less: accumulated depreciation	(100,758		)	(61,252		)
Property and equipment, net	$	76,188		$	85,698

Depreciation and amortization expense related to property and equipment amounted to $40.1 million, $29.2 million and $14.9 million, for the years ended December 31, 2018, 2017 and 2016, respectively. Depreciation and amortization expense is included in cost of revenue and general and administrative expense based on the nature of the asset. There was no loss on disposal for the years ended December 31, 2018, 2017 and 2016, respectively.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $27.7 million, $39.2 million and $20.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software. During 2017 and 2018, the Company invested significantly in its product development and hosting infrastructure to enhance its customer experience and increase the efficiency with which management deploys new products and features.

The portion of total depreciation expense related to capitalized internal-use software was $24.9 million, $14.1 million and $3.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue and general and administrative expense based on the nature of the asset.

As of December 31, 2018 and 2017, the Company had capitalized internal-use software of $48.5 million and $45.4 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The Company’s goodwill balance is attributable to its Bigstock, Editorial, Images and Music reporting units and is tested for impairment at least annually on October 1 or upon a triggering event. Bigstock, Editorial, Images and Music are included in the Company’s Content Business reportable segment. Webdam was included in the non-reportable Other Category until the completion of the Sale of Webdam. The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments for the year ended December 31, 2018 (in thousands):



	Content Business			Other Category			Consolidated
Balance as of December 31, 2017	$	89,891		$	8,763		$	98,654
Foreign currency translation adjustment	(1,315		)	—			(1,315		)
Sale of Webdam	—			(8,763		)	(8,763		)
Balance as of December 31, 2018	$	88,576		$	—		$	88,576

The Company performed its annual goodwill assessment as of October 1, 2018 and concluded that the fair values of its reporting units were greater than their carrying amounts, and therefore, no adjustment to the carrying value of goodwill was necessary. The Company utilized a qualitative assessment of its Bigstock, Images and Music reporting units to determine whether a quantitative assessment was necessary and determined there were no indicators of potential impairment. For its Editorial reporting unit, which represents approximately $12.6 million of the goodwill balance, management elected to perform a quantitative goodwill impairment assessment.

In performing the quantitative goodwill impairment assessment of the Editorial reporting unit, the Company prepared a discounted cash flow analysis which incorporated various estimates and assumptions. The most significant of these assumptions were projected revenue growth rates, future royalty rates, a discount rate of 15% and a terminal growth rate of 3%. These estimates are based on the Company’s historical experience and projections of future activity, factoring in customer demand and a cost structure necessary to achieve related revenue.

Based on the results of the impairment analysis, the fair value of the Editorial reporting unit exceeded its carrying value by approximately 13%. The valuation is sensitive to the discount rate, the future cash flows and the terminal growth rate. A hypothetical increase in the discount rate used in the cash flow analysis by more than 5% could have resulted in an impairment of goodwill. Future unfavorable changes in estimated cash flows, the discount rate, or the terminal growth rate could result in the Company impairing its Editorial reporting unit’s goodwill balance.

There were no impairments of goodwill in any of the periods presented in the consolidated financial statements.

Intangible Assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2018 and 2017 (in thousands):



	As of December 31, 2018								As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	17,360	$	(7,135	)	$	10,225	9	$	21,008	$	(6,996	)	$	14,012
Trade name	6,372		(3,719		)	2,653		7	7,159		(3,299		)	3,860
Developed technology	4,780		(3,633		)	1,147		4	5,528		(3,450		)	2,078
Contributor content	19,912		(4,653		)	15,259		10	17,041		(3,066		)	13,975
Patents	259		(84		)	175		18	259		(68		)	191
Domain name	160		(79		)	81		13	160		(79		)	81
Total	$	48,843	$	(19,303	)	$	29,540		$	51,155	$	(16,958	)	$	34,197

Amortization expense related to the intangible assets was $5.5 million, $6.3 million and $5.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company also determined that there was no indication of impairment for the intangible assets for all periods presented. Estimated amortization expense for the next five years is: $6.3 million in 2019, $5.7 million in 2020, $5.0 million in 2021, $3.0 million in 2022, $2.8 million in 2023 and $6.8 million thereafter.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Expenses

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	December 31,
	2018		2017
Compensation	$	15,153	$	19,897
Non-income taxes	7,885		6,895
Royalty tax withholdings	5,618		7,566
Other expenses	22,729		24,376
Total accrued expenses	$	51,385	$	58,734

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2018
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Special Dividend On August 1, 2018, the Company’s Board of Directors declared a special cash dividend of $3.00 per share (the “Special Dividend”), which was paid on August 29, 2018 to stockholders of record at the close of business on August 15, 2018. The aggregate payment made in connection with the Special Dividend was $104.9 million. In connection with the Special Dividend, and in accordance with the terms of the Company’s Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”), the Company adjusted outstanding equity awards in order to prevent dilution of such awards. Accordingly, the Company prevented dilution from the impact of the Special Dividend by adjusting the number of outstanding unvested RSUs and outstanding stock options, as well as the exercise price of such outstanding stock options, using a conversion ratio of 1.055, which was determined using a ratio of the closing and opening stock price of the Company’s common stock immediately prior to, and on, the ex-dividend date (the “Special Dividend Adjustment”). Common Stock The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared by the Board of Directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to the prior distribution rights of any outstanding preferred stock. The common stock has no preemptive or conversion rights or other subscription rights. The outstanding shares of common stock are fully paid and non-assessable. Under the amended and restated certificate of incorporation, which became effective upon completion of the IPO, the Company’s certificate of incorporation authorized 200,000,000 shares of $0.01 per share par value common stock. Preferred Stock Under the amended and restated certificate of incorporation, which became effective upon completion of the IPO, the Company’s Board of Directors has the authority, without further action by the stockholders, to issue up to 5,000,000 shares of preferred stock, $0.01 par value, in one or more series. The Board of Directors also has the authority to designate the rights, preferences, privileges and restrictions of each such series, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of Shutterstock without further action by the stockholders. The issuance of preferred stock with voting and conversion rights may also adversely affect the voting power of the holders of common stock. In certain circumstances, an issuance of preferred stock could have the effect of decreasing the market price of the common stock. As of December 31, 2018, the Company has not issued and has no plans to issue any shares of preferred stock. Treasury Stock In October 2015, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $100 million of its common stock. In February 2017, the Company’s Board of Directors approved an increase to the share repurchase program, authorizing the Company to purchase an additional $100 million of its common stock. As of December 31, 2018, the Company has repurchased approximately 2,558,000 shares of its common stock under the share repurchase program at an average per-share cost of approximately $39.09. As of December 31, 2018, there is $100 million of remaining authorization for purchases under the share repurchase program. The Company expects to fund repurchases through a combination of cash on hand, cash generated by operations and future financing transactions, if appropriate. Accordingly, the share repurchase program is subject to the Company having available cash to fund repurchases. Under the share repurchase program, management is authorized to purchase shares of the Company’s common stock from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors.

Revenue

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue

The Company distributes its digital content offerings through two primary channels:

E-commerce: The majority of the Company’s customers license content directly through the Company’s self-service web properties. E-commerce customers have the flexibility to purchase a subscription-based plan that is paid on a monthly or annual basis or to license content on a transactional basis. These customers generally license content under the Company’s standard or enhanced licenses, with additional licensing options available to meet customers’ individual needs. E-commerce customers typically pay the full amount of the purchase price in advance or at the time of license, generally with a credit card.

Enterprise: Enterprise customers are mainly composed of creative professionals and large organizations with unique content, licensing and workflow needs. Customers of this size benefit from communication with dedicated sales professionals, service and research teams which provide a number of tailored enhancements to their creative workflows including non-standard licensing rights, multi-seat access, ability to pay on credit terms, multi-brand licensing packages, increased indemnification protection and content licensed for use-cases outside of those available on the e-commerce platform.

In addition to the Company’s digital content offerings, the Company has historically generated revenue through other channels:

Digital asset management: The Company provided tools to help organizations manage, search, distribute and collaborate on creative and other brand-buildings activities through Webdam. Effective February 26, 2018, the Company completed the Sale of Webdam. See Note 4 for further information on the Sale of Webdam.

The following table summarizes the Company’s revenue by distribution channel for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017 ⁽¹⁾		2016 ⁽¹⁾
E-Commerce	$	365,730	$	332,376	$	318,916
Enterprise	254,809		208,713		164,384
Digital asset management ⁽²⁾	2,711		16,022		11,017
Total Revenues	$	623,250	$	557,111	$	494,317

(1)As previously discussed in Note 1, the Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. Historical revenue amounts reflect those previously reported and have not been restated.

(2)As previously discussed in Note 4, on February 26, 2018, the Company completed the Sale of Webdam. 2018 amounts include revenue earned during the period from January 1, 2018 through February 26, 2018.

The Company’s deferred revenue balance decreased from $157.8 million at December 31, 2017 to $139.6 million at December 31, 2018. This decrease was primarily the result of (i) the adoption of ASC 2014-09 which reduced deferred revenue by $9.9 million on January 1, 2018, and (ii) $10.2 million resulting from the Sale of Webdam, partially offset by an increase in deferred revenue due to the ongoing operations of the Company. The December 31, 2018 deferred revenue balance will be earned as digital content is downloaded or upon the expiration of subscription-based products, and nearly all is expected to be earned within the next twelve months. $133.3 million of total revenue recognized for the year ended December 31, 2018 was reflected in deferred revenue as of January 1, 2018.

Equity-Based Compensation

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

The Company recognizes stock-based compensation expense for all share-based payment awards including employee stock options, RSUs granted under the 2012 Plan and sales of shares of common stock under the 2012 ESPP, based on the fair value of each award on the grant date.

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by line item included in the Company’s Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017		2016
Cost of revenue	$	523	$	795	$	1,938
Sales and marketing	2,218		4,452		5,444
Product development	5,815		6,162		7,681
General and administrative	15,313		13,549		13,017
Total	$	23,869	$	24,958	$	28,080

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the Company’s Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017		2016
Stock Options	$	6,009	$	6,364	$	7,295
Restricted Stock Units	17,860		18,594		20,179
ESPP	—		—		606
Total	$	23,869	$	24,958	$	28,080

2012 Omnibus Equity Incentive Plan

On October 10, 2012, the Company’s 2012 Plan became effective. The 2012 Plan provides for the grant of incentive stock options to Company employees, and for the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares to employees, directors and consultants. The maximum aggregate number of shares that may be issued under the 2012 Plan was initially 6,750,000 shares of common stock. The number of shares available for issuance under the 2012 Plan will be increased annually commencing January 1, 2013 by an amount equal to the lesser of 1,500,000 shares of common stock, 3% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or such other amount as determined by the Company’s Board of Directors. Any awards issued under the 2012 Plan that are forfeited by the participant will become available for future grant under the 2012 Plan. The number of shares of common stock available under the 2012 Plan was automatically increased by approximately 1,041,000 and 1,044,000 shares on January 1, 2018 and 2017, respectively, pursuant to the automatic increase provisions of the 2012 Plan.

Stock Option Awards

The following is a summary of stock option awards and weighted average exercise price per option:



	Plan Options		Weighted Average Exercise Price
Options outstanding at December 31, 2017	1,183,130		$	55.14
Options granted	19,041		47.80
Special Dividend Adjustment	59,074		—
Options exercised	(91,205	)	26.91
Options canceled or expired	(43,585	)	53.85
Options outstanding at December 31, 2018	1,126,455		$	54.46

Options exercisable at December 31, 2018	343,624		$	33.91

Intrinsic value of stock options is calculated as the excess of market price of the Company’s common stock over the strike price of the stock options, multiplied by the number of stock options. The intrinsic value of the Company’s stock options is as follows (in thousands):



	As of December 31,
	2018		2017
Stock options outstanding	$	2,500	$	6,400
Stock options exercisable	1,800		3,600
Stock options vested and expected to vest	$	2,500	$	6,400

The intrinsic value of stock options exercised for the years ended December 31, 2018, 2017 and 2016 was approximately $2.0 million, $1.6 million and $10.6 million, respectively.

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2018, 2017 and 2016:



	Year Ended Year Ended December 31,
	2018			2017			2016
Expected term (in years)	6.3			6.2			6.3
Volatility	47.8		%	50.0		%	52.5		%
Risk-free interest rate	2.625		%	2.15		%	1.48		%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	23.64		$	24.19		$	19.03

On April 24, 2014, the Company granted 500,000 stock options with a market-based condition to its Chief Executive Officer (“CEO”). The stock options have an exercise price of $80.94 per share and will not vest or become exercisable unless (i) the CEO remains continuously employed by the Company until the fifth anniversary of the date of grant and (ii) the average 90-day closing price of the Company’s common stock equals or exceeds $161.88 per share for any 90 consecutive calendar days during the period commencing on the fifth anniversary of the date of grant and ending on the tenth anniversary of the date of grant, inclusive provided that the CEO remains continuously employed by the Company until the date of satisfaction of such condition. The derived requisite service period was determined to be six years based on a valuation technique. The total fair value of the grant is $21.6 million and is being recognized over the derived requisite service period. In the event that the market condition remains unsatisfied upon completion of the requisite service period, no charge will be reversed. In conjunction with the Special Dividend Adjustment, the Company adjusted the number of stock options to approximately 527,000 from 500,000 and the exercise price of each option to $76.73, from $80.94 pursuant to the anti-dilution provisions of the 2012 Plan. The market-based conditions required for vesting remain unchanged.

As of December 31, 2018, the total unrecognized compensation charge related to 2012 Plan non-vested options is approximately $7.9 million, which is expected to be recognized through fiscal year 2022.

Restricted Stock Units Awards

The following table presents a summary of the Company’s RSUs activity for the year ended December 31, 2018:



	Plan RSUs		Weighted Average Fair Value
Non-vested balance at December 31, 2017	1,173,160		$	43.79
Units granted	576,192		47.92
Special Dividend Adjustment	59,888		—
Units vested	(402,734	)	42.18
Units canceled or forfeited	(343,181	)	43.56
Non-vested balance at December 31, 2018	1,063,325		$	44.23

Non-vested and deferred balance at December 31, 2018	1,084,453		$	44.49

On April 24, 2014, the Company granted 100,000 restricted stock units with a market-based condition to its CEO. The restricted stock units will vest only if (i) the reporting person remains continuously employed by the Company until the fifth anniversary of the date of grant and (ii) the average 90-day closing price of the Company's common stock equals or exceeds $161.88 for any 90 consecutive calendar days during the period commencing on the fifth anniversary of the date of grant and ending on the tenth anniversary of the date of grant, inclusive; provided that the reporting person remains continuously employed by the Company until the date of satisfaction of such condition. The derived requisite service period was determined to be six years based on a valuation technique. The total fair value of the grant is $5.8 million and is being recognized over the derived requisite service period. In the event that the market condition remains unsatisfied upon completion of the requisite service period, no charge will be reversed. In conjunction with the Special Dividend Adjustment, the Company adjusted the number of restricted stock units to approximately 105,000 from 100,000, pursuant to the anti-dilution provisions of the 2012 Plan. The market-based conditions required for vesting remain unchanged.

As of December 31, 2018, the total unrecognized compensation charge related to the restricted stock units is approximately $30.2 million, which is expected to be recognized through fiscal 2022.

Employee Stock Purchase Plan

On October 10, 2012, the Company’s 2012 ESPP became effective and on December 1, 2016, the Company suspended the plan.

The 2012 ESPP provided participating employees with the option to purchase common stock through payroll deductions of up to 15% of eligible compensation and a maximum purchase of 1,000 shares during each offering period. The common stock was purchased at 85% of the lower of the fair market value of common stock on (1) the first trading day of the offering period, or (2) the last day of the offering period. The offering periods generally started on the first trading day on or after June 1 and December 1 of each year. From inception to date, approximately 233,000 shares have been issued under the 2012 ESPP.

The Company estimated the fair value of purchase rights under the 2012 ESPP on the date of grant using the Black-Scholes valuation model and the straight-line attribution approach with the following weighted-average assumptions:



	Year Ended Year Ended December 31,
	2016
Expected term (in years)	0.5
Volatility	59.1	%
Risk-free interest rate	0.46	%
Dividend yield	—

Other (Expense)/Income, net

12 Months Ended

Dec. 31, 2018

Other Nonoperating Income (Expense) [Abstract]

Other (Expense)/Income, net

The following table presents a summary of the Company’s other (expense) / income activity included in the accompanying Consolidated Statements of Operations (in thousands):



	Year Ended December 31,
	2018			2017		2016
Foreign currency (loss) / gain	$	(1,807	)	$	2,841	$	(167	)
Change in contingent consideration fair value	—			—		(1,271		)
Impairment of long-term investment asset	(5,881		)	—		—
Interest income	2,736			891		149
Other (expense) / income, net	$	(4,952	)	$	3,732	$	(1,289	)

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

The Company’s geographical breakdown of its income before income taxes is as follows (in thousands):



	Year Ended December 31,
	2018			2017		2016
Domestic	$	68,596		$	24,558	$	38,549
Foreign	(2,483		)	5,523		5,948
Income before income taxes	$	66,113		$	30,081	$	44,497

The following table summarizes the consolidated provision for income taxes (in thousands):



	Year Ended December 31,
	2018			2017			2016
Current provision (benefit):
Federal	$	7,670		$	(4,813	)	$	6,389
State and local	4,800			112			852
Foreign	5,226			5,564			2,861
Deferred provision (benefit):
Federal	(2,901		)	14,578			3,376
State and local	(164		)	523			(34		)
Foreign	(3,205		)	(2,610		)	(1,575		)
Provision for income taxes	$	11,426		$	13,354		$	11,869

The provision for income taxes differs from statutory income tax rate as follows:



	Year Ended December 31,
	2018		2017		2016
U.S. income tax at federal statutory rate	21.0	%	35.0	%	35.0	%
Tax credits	(5.4	)	(4.0	)	(12.0	)
State and local taxes, net of federal benefit	1.9		2.1		2.9
Equity-based compensation⁽¹⁾	(0.4	)	1.9		2.1
Foreign rate differential	0.5		(2.3	)	(1.8	)
Foreign-derived intangible income deduction	(3.7	)	—		—
Uncertain tax positions	3.6		5.2		(0.4	)
Transition tax related to TCJA	(0.3	)	2.6		—
U.S. Federal rate change related to TCJA	—		12.4		—
Domestic production activities deduction	—		(9.8	)	—
Non-deductible—other	0.1		1.3		0.9
Total provision for income taxes	17.3	%	44.4	%	26.7	%


(1)	Included in this amount for the years ended December 31, 2018 and 2017 is the impact of windfall/shortfall related to stock option exercises and RSU vestings that were reflected in additional paid-in capital, prior to the adoption of ASU 2016-09 on January 1, 2017. All periods presented include the impact of non-deductible stock-based compensation expenses.

On December 22, 2017, the U.S. enacted the TCJA, which lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a one-time “transition tax” on undistributed earnings of foreign subsidiaries. The Company’s effective tax rate for the year ended December 31, 2017 includes an expense of $3.7 million related to the impact of remeasuring the Company’s deferred tax balances to reflect the new tax rate and an expense of $0.8 million for the transition tax.

The tax effect of the Company’s temporary differences that give rise to deferred tax assets and liabilities are presented below (in thousands):



	Year Ended December 31,
	2018			2017
Deferred tax assets:
Non-cash equity-based compensation	$	9,383		$	8,342
Intangible amortization	3,252			4,555
Non-income tax accruals	3,087			2,887
Deferred rent	2,537			2,484
Other liabilities	6,523			2,895
Deferred tax assets	24,782			21,163
Deferred tax liabilities:
Depreciation and amortization	(12,484		)	(12,888		)
Net deferred tax assets	$	12,298		$	8,275

The non-cash equity-based compensation for the Company includes a deferred tax asset of $5.6 million associated with the performance-based grant of stock options and restricted stock units to the Company’s Chief Executive Officer.

The following table summarizes changes to the Company’s unrecognized tax benefits as follows (in thousands):



	Year Ended December 31,
	2018			2017			2016
Balance of unrecognized tax benefits at January 1	$	2,966		$	1,455		$	1,479
Gross additions for tax positions for prior years	332			1,412			886
Gross additions for tax positions for current year	3,476			273			360
Gross expirations	(928		)	(174		)	(1,270		)
Balance of unrecognized tax benefits at December 31	$	5,846		$	2,966		$	1,455

The total amount of gross unrecognized tax benefits was $5.4 million, which, if recognized, would impact the Company’s effective tax rate in future periods. The liability for unrecognized tax benefits is included in other non-current liabilities.

The Company recognizes interest expense and tax penalties related to unrecognized tax benefits as a component of income tax expense in the Consolidated Statements of Operations. Interest and penalties included in the company’s provision for income taxes were not material in all the periods presented.

The Company and its subsidiaries file income tax returns in the U.S. and various foreign jurisdictions. The Company is currently under examination by the German Tax Office for years 2013 - 2015, by New York City for 2015 - 2017 and Illinois for 2015 - 2016. The Company is no longer subject to U.S. federal or state and local tax examinations by tax authorities for years before 2013. The Company anticipates that the total unrecognized tax benefits to reverse in the next fiscal year will not be material.

As of December 31, 2018, the Company has $9.1 million and $7.8 million in tax net operating loss carryforwards in Canada and the U.K., respectively, which are available to reduce future income taxes, none of which are expected to expire un-utilized.

As of December 31, 2018, the Company had approximately $12.7 million of undistributed earnings attributable to its foreign subsidiaries. It is the Company’s practice and intention to indefinitely reinvest the earnings of its foreign subsidiaries in those operations. The Company has not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences resulting from the earnings indefinitely reinvested outside the United States. An estimate of the associated unrecognized deferred tax liability related to these undistributed earnings is $1.3 million.

Net Income Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Net Income Per Share

Basic net income per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested RSUs and stock options. Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential common shares, including unvested RSUs and stock options using the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share for fiscal 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017		2016
Net income	$	54,687	$	16,727	$	32,628
Shares used to compute basic net income per share	34,935		34,627		35,114
Dilutive potential common shares:
Stock options and employee stock purchase plan shares	117		388		441
Unvested restricted stock awards	368		276		306
Shares used to compute diluted net income per share	35,420		35,291		35,861
Basic net income per share	$	1.57	$	0.48	$	0.93
Diluted net income per share	$	1.54	$	0.47	$	0.91

Potentially dilutive shares included in the calculation	1,285		1,384		1,954
Anti-dilutive shares excluded from the calculation	1,020		1,325		999

Segment and Geographic Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Financial Information

The following table summarizes segment information for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Content Segment		Other and Corporate			Consolidated
December 31, 2018
Revenue ⁽¹⁾	$	620,539	$	2,711		$	623,250
Operating Expenses⁽²⁾	490,985		99,813			590,798
Income from Operations	129,554		(97,102		)	32,452
December 31, 2017
Revenue ⁽¹⁾	541,088		16,023			557,111
Operating Expenses⁽²⁾	417,507		113,255			530,762
Income from Operations	123,581		(97,232		)	26,349
December 31, 2016
Revenue ⁽¹⁾	483,278		11,039			494,317
Operating Expenses⁽²⁾	364,631		83,900			448,531
Income from Operations	$	118,647	$	(72,861	)	$	45,786


(1)	Effective January 1, 2018 the Company adopted ASU 2014-09 using the modified retrospective approach. Historical revenue totals reflect those previously reported and have not been restated.

(2)

Other and corporate operating expenses include unallocated corporate expenses of approximately $97.8 million, $96.5 million and $67.7 million for the years ended December 31, 2018, 2017, and 2016, respectively. Unallocated corporate expenses primarily relate to shared operational support functions and general and administrative functions of human resources, legal, finance and information technology.

Asset information on a segment basis is not disclosed as this information is not separately identified or internally reported to the Company’s CODM.

Geographic Financial Information

The following represents the Company’s geographic revenue based on customer location (in thousands):



	Year Ended December 31,
	2018		2017		2016
North America	$	230,890	$	218,865	$	197,650
Europe	207,634		181,693		161,906
Rest of the world	184,726		156,553		134,761
Total revenue	$	623,250	$	557,111	$	494,317

Included in North America is the United States which comprises approximately 34% of total revenue for the year ended December 31, 2018, and 35% of total revenue for the years ended December 31, 2017 and 2016. Included in Europe is the United Kingdom which accounts for approximately 8% of total revenue for the year ended December 31, 2018. No other country accounts for more than 10% of the Company’s revenue in any period presented.

The Company’s long-lived tangible assets were located as follows (in thousands):



	December 31,
	2018		2017
North America	$	71,758	$	83,027
Europe	4,371		2,599
Rest of world	59		72
Total long-lived tangible assets	$	76,188	$	85,698

Included in North America is the United States, which comprises 88% and 92% of total long-lived tangible assets as of December 31, 2018 and 2017, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Lease Commitments and Other Obligations

Future minimum lease payments under non-cancelable operating leases and other unconditional cash obligations as of December 31, 2018 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2019	$	9,913	$	29,758
2020	8,762		27,056
2021	7,493		13,770
2022	6,829		3,333
2023	6,082		—
Thereafter	39,481		—
Total minimum lease payments	$	78,560	$	73,917

Lease Commitments

The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases for the years ended December 31, 2018, 2017 and 2016 was approximately $9.2 million, $8.5 million and $7.2 million, respectively. Some leases have defined escalating rent provisions, which are expensed over the term of the related lease on a straight-line basis commencing with the date of possession. Any rent allowance or abatement is netted in this calculation. The majority of leases require payment of real estate taxes and operating expense increases.

The Company leases its corporate headquarters in New York, New York, which lease is scheduled to expire in 2029 and the aggregate future minimum lease payments are approximately $67.4 million. The Company also entered into a letter of credit in the amount of $2.6 million as a security deposit for the corporate headquarters’ lease. The letter of credit is collateralized by $2.6 million of cash and as such, is deemed to be restricted cash and is included in other assets on the Consolidated Balance Sheets as of December 31, 2018.

Other Obligations

As of December 31, 2018, the Company had other obligations of approximately $73.9 million, which consisted primarily of unconditional purchase obligations related to contracts for cloud-based services, infrastructure and other business services as well as minimum royalty guarantees in connection with certain content licenses.

Legal Matters

From time to time, the Company may become party to litigation in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company reviews reserves, if any, at least quarterly and may change the amount of any such reserve in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and threats of litigation, investigations and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company currently has no material active litigation matters and, accordingly, no material reserves related to litigation.

Customer Indemnifications

In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of the Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of the modifications made by the customer, or the context in which an image is used. The standard maximum aggregate obligation and liability to any one customer for all claims is generally limited to ten thousand dollars. The Company offers certain of its customers greater levels of indemnification, including unlimited indemnification. As of December 31, 2018, the Company has recorded no liabilities related to indemnification for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary.

Employment Agreements and Indemnification Agreements

The Company has entered into employment arrangements and indemnification agreements with certain executive officers and with certain employees. The agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause.

Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Financial Data

The following table sets forth, for the periods indicated, the Company’s financial information for the eight most recent quarters ended December 31, 2018. In the Company’s opinion, this unaudited information has been prepared on a basis consistent with the annual consolidated financial statements and includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the unaudited information for the periods presented.



	Three Months Ended
	Dec 31, 2018		Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017

	(in thousands, except per share data)
Revenue^{(1) (2)}	$	162,072	$	151,575		$	156,584		$	153,019		$	151,829	$	141,063	$	133,995	$	130,224
Operating expenses⁽³⁾:
Cost of revenue	68,829		66,461			67,891			64,490			64,590		58,812		57,289		52,411
Sales & marketing	43,034		41,028			42,018			40,368			40,844		36,008		37,109		32,503
Product development	11,689		14,032			16,728			16,448			15,210		13,340		12,892		11,044
General and administrative	22,881		23,355			24,322			27,224			23,994		27,333		23,420		23,963
Total operating expenses	146,433		144,876			150,959			148,530			144,638		135,493		130,710		119,921
Income from operations	15,639		6,699			5,625			4,489			7,191		5,570		3,285		10,303
Gain on Sale of Webdam	—		—			—			38,613			—		—		—		—
Other income / (expense), net⁽⁴⁾	1,048		217			(7,019		)	802			1,637		130		1,510		455
Income / (Loss) before income taxes	16,687		6,916			(1,394		)	5,291			8,828		5,700		4,795		10,758
Provision / (Benefit) for income tax⁽⁵⁾	1,774		(531		)	(1,140		)	11,323			6,772		698		1,729		4,155
Net income available to common stockholders	$	14,913	$	7,447		$	(254	)	$	(6,032	)	$	2,056	$	5,002	$	3,066	$	6,603
Net income per common share available to common stockholders:
Basic	$	0.43	$	0.21		$	(0.01	)	$	0.94		$	0.06	$	0.14	$	0.09	$	0.19
Diluted	$	0.42	$	0.21		$	(0.01	)	$	0.92		$	0.06	$	0.14	$	0.09	$	0.19
Weighted average common shares outstanding:
Basic	35,047		34,991			34,913			34,784			34,686		34,643		34,581		34,597
Diluted	35,421		35,570			34,913			35,318			35,149		35,177		35,250		35,595

____________________________________________________________________________

(1)

The Company has recorded certain immaterial adjustments to its unaudited consolidated financial statements for the correction of errors related to prior periods, as follows: (i) During the third quarter of 2018, to decrease enterprise revenue by approximately $0.8 million; (ii) During the second quarter of 2018 to increase enterprise revenue by approximately $0.4 million and to increase general and administrative expense by approximately $0.8 million; (iii) During the third quarter of 2017, to increase enterprise revenue by approximately $0.9 million; and, (iv) During the second quarter of 2017, to reduce enterprise revenue by approximately $0.6 million and increase general and administrative expense by approximately $0.1 million. The Company has concluded that the impact of the adjustments recorded during 2018 but related to prior years is not material to the results of operations or financial position for the periods in which these adjustments were recorded nor any prior period financial statements.


(2)	Effective January 1, 2018 the Company adopted ASU 2014-09 using the modified retrospective approach. Historical revenue totals reflect those previously reported and have not been restated.


(3)	Includes non-cash equity-based compensation of $23,869 and $24,958 for the years ended December 31, 2018 and 2017, respectively.


(4)	Includes the impairment of a long-term investment asset; changes in fair value of contingent consideration related to the PremiumBeat acquisition; transaction gains and losses primarily related to cash balances of subsidiaries denominated in a currency other than the subsidiaries’ functional currencies; and interest income and expense, which is not material in any period presented.


(5)	Included in the provision for income taxes for the three months ended December 31, 2017 is approximately $3.7 million of non-cash charges related to a remeasurement of deferred tax assets related to the change in U.S. tax rates from 35% to 21% and approximately $0.8 million of cash charges related to a one-time U.S. cash tax for unrepatriated foreign earnings related to the TCJA.

Summary of Operations and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting.

Use of Estimates

Concentration of Risk

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2018 and 2017 (in thousands):



	As of December 31, 2018		As of December 31, 2017
Cash and cash equivalents	$	230,852	$	253,428
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	233,465	$	256,041

The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts, which are stated at cost, which approximates fair value.

Fair Value Measurements

Accounts Receivable and Allowance for Doubtful Accounts

Property and Equipment



Equipment	3 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Shorter of expected useful life or lease term

Capitalized Internal Use Software

Impairment of Long-Lived Assets

Goodwill and Intangible Assets

Revenue Recognition and Cost of Revenues

Revenue Recognition

Cost of Revenue

Contributor Royalties and Internal Sales Commissions

Product Development

Advertising Costs

The Company expenses the cost of advertising and promoting its products as incurred.

Deferred Rent

Equity-Based Compensation


•	Fair Value of Common Stock. The grant date fair value for stock-based awards is based on the closing price of the Company’s common stock on the NYSE on the date of grant and fair value for all other purposes related to stock-based awards shall be the closing price of the Company’s common stock on the NYSE on the relevant date.


•	Expected Term. The expected term is estimated using the simplified method allowed under Securities and Exchange Commission (“SEC”) guidance. In certain cases for market based awards, the Company’s expected term is based on a combination of historical data and estimates of the period of time the award will be outstanding.


•	Volatility. The volatility is estimated based on historical price volatility of the Company’s common stock.


•	Risk-free Interest Rate. The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of each award group.


•	Dividend Yield. The Company has not paid recurring cash distributions to its stockholders and it does not intend to do so for the foreseeable future. As a result, the Company used an expected dividend yield of zero.

Employee Benefit Plans

Income Taxes and Other Non-income Taxes

Income Taxes

Other Non-income Taxes

Treasury Stock

Net Income Per Share

Reportable Segments

Contingent Consideration

Foreign Currency

Recently Adopted and Issued Accounting Standard Updates

Recently Adopted Accounting Standard Updates



	As Reported December 31, 2017	Adjustment		Revised January 1, 2018
Prepaid expenses and other current assets⁽¹⁾	37,109	(3,733	)	33,376
Deferred revenue	157,803	(9,911	)	147,892
Retained earnings	145,139	6,178		151,317

(1)Prepaid expenses and other current assets adjustment is attributable to the reduction in deferred commissions and income tax receivables.

The effect of adoption of this new guidance on the Company’s reported balance sheet and statements of operations is as follows (in thousands):



	As Reported Under ASU 2014-09	Impact of Adoption		Under Legacy Guidance
For the twelve months ended December 31, 2018:
Revenue	623,250	(1,359	)	621,891
Cost of revenue	267,671	(185	)	267,486
Provision for income taxes	11,426	(188	)	11,238
Net income	54,687	986		55,673
As of December 31, 2018:
Prepaid expenses and other current assets	34,841	4,106		38,947
Deferred revenue	139,604	11,270		150,874
Retained Earnings	101,079	(7,164	)	93,915

Recently Issued Accounting Standard Updates

Summary of Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of restricted cash

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2018 and 2017 (in thousands):



	As of December 31, 2018		As of December 31, 2017
Cash and cash equivalents	$	230,852	$	253,428
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	233,465	$	256,041

Schedule of cash and cash equivalents

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2018 and 2017 (in thousands):



	As of December 31, 2018		As of December 31, 2017
Cash and cash equivalents	$	230,852	$	253,428
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	233,465	$	256,041

Schedule of changes in the allowance for doubtful accounts

The following table presents the changes in the Company’s allowance for doubtful accounts (in thousands):



	Year Ended December 31,
	2018			2017			2016
Balance, beginning of period	$	4,088		$	5,495		$	3,768
Add: bad debt expense	1,175			1,292			2,992
Less: write-offs, net of recoveries and other adjustments	(566		)	(2,699		)	(1,265		)
Balance, end of period	$	4,697		$	4,088		$	5,495

Summary of property and equipment

Generally, the useful lives are as follows:



Equipment	3 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Shorter of expected useful life or lease term

Property and equipment is summarized as follows (in thousands):



	December 31,
	2018			2017
Computer equipment and software	$	148,104		$	118,493
Furniture and fixtures	10,020			9,970
Leasehold improvements	18,822			18,487
Property and equipment	176,946			146,950
Less: accumulated depreciation	(100,758		)	(61,252		)
Property and equipment, net	$	76,188		$	85,698

Schedule of effects of adoption of new guidance



	As Reported December 31, 2017	Adjustment		Revised January 1, 2018
Prepaid expenses and other current assets⁽¹⁾	37,109	(3,733	)	33,376
Deferred revenue	157,803	(9,911	)	147,892
Retained earnings	145,139	6,178		151,317

(1)Prepaid expenses and other current assets adjustment is attributable to the reduction in deferred commissions and income tax receivables.

The effect of adoption of this new guidance on the Company’s reported balance sheet and statements of operations is as follows (in thousands):



	As Reported Under ASU 2014-09	Impact of Adoption		Under Legacy Guidance
For the twelve months ended December 31, 2018:
Revenue	623,250	(1,359	)	621,891
Cost of revenue	267,671	(185	)	267,486
Provision for income taxes	11,426	(188	)	11,238
Net income	54,687	986		55,673
As of December 31, 2018:
Prepaid expenses and other current assets	34,841	4,106		38,947
Deferred revenue	139,604	11,270		150,874
Retained Earnings	101,079	(7,164	)	93,915

Fair Value Measurements and Other Long-term Investments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of fair value measurements



	As of December 31, 2017
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	55,775	$	55,775	$	—	$	—
Total assets measured at fair value	$	55,775	$	55,775	$	—	$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Acquisition Activity (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Aggregate purchase price allocation, assets acquired liabilities assumed schedule

The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands):



Assets:
Cash and cash equivalents	$	1,330
Accounts receivable	3,105
Prepaid expenses and other current assets	155
Intangible Assets:
Customer relationships	3,000
Developed technology	2,200
Goodwill	46,217
Total assets acquired	56,007
Liabilities:
Accrued expenses	(279		)
Accounts payable	(99		)
Deferred tax liability, net	(333		)
Deferred revenue	(3,550		)
Total liabilities acquired	(4,261		)
Net assets acquired	$	51,746

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Summary of property and equipment

Generally, the useful lives are as follows:



Equipment	3 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Shorter of expected useful life or lease term

Property and equipment is summarized as follows (in thousands):



	December 31,
	2018			2017
Computer equipment and software	$	148,104		$	118,493
Furniture and fixtures	10,020			9,970
Leasehold improvements	18,822			18,487
Property and equipment	176,946			146,950
Less: accumulated depreciation	(100,758		)	(61,252		)
Property and equipment, net	$	76,188		$	85,698

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in goodwill

The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments for the year ended December 31, 2018 (in thousands):



	Content Business			Other Category			Consolidated
Balance as of December 31, 2017	$	89,891		$	8,763		$	98,654
Foreign currency translation adjustment	(1,315		)	—			(1,315		)
Sale of Webdam	—			(8,763		)	(8,763		)
Balance as of December 31, 2018	$	88,576		$	—		$	88,576

Schedule of intangible assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2018 and 2017 (in thousands):



	As of December 31, 2018								As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	17,360	$	(7,135	)	$	10,225	9	$	21,008	$	(6,996	)	$	14,012
Trade name	6,372		(3,719		)	2,653		7	7,159		(3,299		)	3,860
Developed technology	4,780		(3,633		)	1,147		4	5,528		(3,450		)	2,078
Contributor content	19,912		(4,653		)	15,259		10	17,041		(3,066		)	13,975
Patents	259		(84		)	175		18	259		(68		)	191
Domain name	160		(79		)	81		13	160		(79		)	81
Total	$	48,843	$	(19,303	)	$	29,540		$	51,155	$	(16,958	)	$	34,197

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consisted of the following (in thousands):



	December 31,
	2018		2017
Compensation	$	15,153	$	19,897
Non-income taxes	7,885		6,895
Royalty tax withholdings	5,618		7,566
Other expenses	22,729		24,376
Total accrued expenses	$	51,385	$	58,734

Revenue (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes the Company’s revenue by distribution channel for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017 ⁽¹⁾		2016 ⁽¹⁾
E-Commerce	$	365,730	$	332,376	$	318,916
Enterprise	254,809		208,713		164,384
Digital asset management ⁽²⁾	2,711		16,022		11,017
Total Revenues	$	623,250	$	557,111	$	494,317

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of non-cash equity-based compensation expense included in the Company's statement of operations



	Year Ended December 31,
	2018		2017		2016
Cost of revenue	$	523	$	795	$	1,938
Sales and marketing	2,218		4,452		5,444
Product development	5,815		6,162		7,681
General and administrative	15,313		13,549		13,017
Total	$	23,869	$	24,958	$	28,080



	Year Ended December 31,
	2018		2017		2016
Stock Options	$	6,009	$	6,364	$	7,295
Restricted Stock Units	17,860		18,594		20,179
ESPP	—		—		606
Total	$	23,869	$	24,958	$	28,080



	As of December 31,
	2018		2017
Stock options outstanding	$	2,500	$	6,400
Stock options exercisable	1,800		3,600
Stock options vested and expected to vest	$	2,500	$	6,400

Schedule of stock options awards activity

The following is a summary of stock option awards and weighted average exercise price per option:



	Plan Options		Weighted Average Exercise Price
Options outstanding at December 31, 2017	1,183,130		$	55.14
Options granted	19,041		47.80
Special Dividend Adjustment	59,074		—
Options exercised	(91,205	)	26.91
Options canceled or expired	(43,585	)	53.85
Options outstanding at December 31, 2018	1,126,455		$	54.46

Options exercisable at December 31, 2018	343,624		$	33.91

Schedule of weighted average assumptions used in the fair value calculation



	Year Ended Year Ended December 31,
	2016
Expected term (in years)	0.5
Volatility	59.1	%
Risk-free interest rate	0.46	%
Dividend yield	—

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2018, 2017 and 2016:



	Year Ended Year Ended December 31,
	2018			2017			2016
Expected term (in years)	6.3			6.2			6.3
Volatility	47.8		%	50.0		%	52.5		%
Risk-free interest rate	2.625		%	2.15		%	1.48		%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	23.64		$	24.19		$	19.03

Schedule of restricted stock units ("RSUs") activity

The following table presents a summary of the Company’s RSUs activity for the year ended December 31, 2018:



	Plan RSUs		Weighted Average Fair Value
Non-vested balance at December 31, 2017	1,173,160		$	43.79
Units granted	576,192		47.92
Special Dividend Adjustment	59,888		—
Units vested	(402,734	)	42.18
Units canceled or forfeited	(343,181	)	43.56
Non-vested balance at December 31, 2018	1,063,325		$	44.23

Non-vested and deferred balance at December 31, 2018	1,084,453		$	44.49

Other (Expense)/Income, net (Tables)

12 Months Ended

Dec. 31, 2018

Other Nonoperating Income (Expense) [Abstract]

Summary of the Company’s other (expense)/income activity

The following table presents a summary of the Company’s other (expense) / income activity included in the accompanying Consolidated Statements of Operations (in thousands):



	Year Ended December 31,
	2018			2017		2016
Foreign currency (loss) / gain	$	(1,807	)	$	2,841	$	(167	)
Change in contingent consideration fair value	—			—		(1,271		)
Impairment of long-term investment asset	(5,881		)	—		—
Interest income	2,736			891		149
Other (expense) / income, net	$	(4,952	)	$	3,732	$	(1,289	)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of the Company's geographical breakdown of its income before income taxes

The Company’s geographical breakdown of its income before income taxes is as follows (in thousands):



	Year Ended December 31,
	2018			2017		2016
Domestic	$	68,596		$	24,558	$	38,549
Foreign	(2,483		)	5,523		5,948
Income before income taxes	$	66,113		$	30,081	$	44,497

Summary of consolidated provision (benefit) for income taxes

The following table summarizes the consolidated provision for income taxes (in thousands):



	Year Ended December 31,
	2018			2017			2016
Current provision (benefit):
Federal	$	7,670		$	(4,813	)	$	6,389
State and local	4,800			112			852
Foreign	5,226			5,564			2,861
Deferred provision (benefit):
Federal	(2,901		)	14,578			3,376
State and local	(164		)	523			(34		)
Foreign	(3,205		)	(2,610		)	(1,575		)
Provision for income taxes	$	11,426		$	13,354		$	11,869

Schedule of provision for income taxes differs from statutory income tax rate

The provision for income taxes differs from statutory income tax rate as follows:



	Year Ended December 31,
	2018		2017		2016
U.S. income tax at federal statutory rate	21.0	%	35.0	%	35.0	%
Tax credits	(5.4	)	(4.0	)	(12.0	)
State and local taxes, net of federal benefit	1.9		2.1		2.9
Equity-based compensation⁽¹⁾	(0.4	)	1.9		2.1
Foreign rate differential	0.5		(2.3	)	(1.8	)
Foreign-derived intangible income deduction	(3.7	)	—		—
Uncertain tax positions	3.6		5.2		(0.4	)
Transition tax related to TCJA	(0.3	)	2.6		—
U.S. Federal rate change related to TCJA	—		12.4		—
Domestic production activities deduction	—		(9.8	)	—
Non-deductible—other	0.1		1.3		0.9
Total provision for income taxes	17.3	%	44.4	%	26.7	%


(1)	Included in this amount for the years ended December 31, 2018 and 2017 is the impact of windfall/shortfall related to stock option exercises and RSU vestings that were reflected in additional paid-in capital, prior to the adoption of ASU 2016-09 on January 1, 2017. All periods presented include the impact of non-deductible stock-based compensation expenses.

Schedule of the Company's tax effects of temporary differences and tax carryforwards that give rise to significant portions of the deferred tax assets

The tax effect of the Company’s temporary differences that give rise to deferred tax assets and liabilities are presented below (in thousands):



	Year Ended December 31,
	2018			2017
Deferred tax assets:
Non-cash equity-based compensation	$	9,383		$	8,342
Intangible amortization	3,252			4,555
Non-income tax accruals	3,087			2,887
Deferred rent	2,537			2,484
Other liabilities	6,523			2,895
Deferred tax assets	24,782			21,163
Deferred tax liabilities:
Depreciation and amortization	(12,484		)	(12,888		)
Net deferred tax assets	$	12,298		$	8,275

Summary of changes to the Company's unrecognized tax benefits

The following table summarizes changes to the Company’s unrecognized tax benefits as follows (in thousands):



	Year Ended December 31,
	2018			2017			2016
Balance of unrecognized tax benefits at January 1	$	2,966		$	1,455		$	1,479
Gross additions for tax positions for prior years	332			1,412			886
Gross additions for tax positions for current year	3,476			273			360
Gross expirations	(928		)	(174		)	(1,270		)
Balance of unrecognized tax benefits at December 31	$	5,846		$	2,966		$	1,455

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of net income per share

The following table sets forth the computation of basic and diluted net income per share for fiscal 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017		2016
Net income	$	54,687	$	16,727	$	32,628
Shares used to compute basic net income per share	34,935		34,627		35,114
Dilutive potential common shares:
Stock options and employee stock purchase plan shares	117		388		441
Unvested restricted stock awards	368		276		306
Shares used to compute diluted net income per share	35,420		35,291		35,861
Basic net income per share	$	1.57	$	0.48	$	0.93
Diluted net income per share	$	1.54	$	0.47	$	0.91

Potentially dilutive shares included in the calculation	1,285		1,384		1,954
Anti-dilutive shares excluded from the calculation	1,020		1,325		999

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Summarized segment information

The following table summarizes segment information for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Content Segment		Other and Corporate			Consolidated
December 31, 2018
Revenue ⁽¹⁾	$	620,539	$	2,711		$	623,250
Operating Expenses⁽²⁾	490,985		99,813			590,798
Income from Operations	129,554		(97,102		)	32,452
December 31, 2017
Revenue ⁽¹⁾	541,088		16,023			557,111
Operating Expenses⁽²⁾	417,507		113,255			530,762
Income from Operations	123,581		(97,232		)	26,349
December 31, 2016
Revenue ⁽¹⁾	483,278		11,039			494,317
Operating Expenses⁽²⁾	364,631		83,900			448,531
Income from Operations	$	118,647	$	(72,861	)	$	45,786


(1)	Effective January 1, 2018 the Company adopted ASU 2014-09 using the modified retrospective approach. Historical revenue totals reflect those previously reported and have not been restated.

(2)

Schedule of geographic revenue

The following represents the Company’s geographic revenue based on customer location (in thousands):



	Year Ended December 31,
	2018		2017		2016
North America	$	230,890	$	218,865	$	197,650
Europe	207,634		181,693		161,906
Rest of the world	184,726		156,553		134,761
Total revenue	$	623,250	$	557,111	$	494,317

Schedule of long-lived tangible assets

The Company’s long-lived tangible assets were located as follows (in thousands):



	December 31,
	2018		2017
North America	$	71,758	$	83,027
Europe	4,371		2,599
Rest of world	59		72
Total long-lived tangible assets	$	76,188	$	85,698

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments under non-cancelable operating leases

Future minimum lease payments under non-cancelable operating leases and other unconditional cash obligations as of December 31, 2018 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2019	$	9,913	$	29,758
2020	8,762		27,056
2021	7,493		13,770
2022	6,829		3,333
2023	6,082		—
Thereafter	39,481		—
Total minimum lease payments	$	78,560	$	73,917

Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of company's financial information for the eight most recent quarters



	Three Months Ended
	Dec 31, 2018		Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017

	(in thousands, except per share data)
Revenue^{(1) (2)}	$	162,072	$	151,575		$	156,584		$	153,019		$	151,829	$	141,063	$	133,995	$	130,224
Operating expenses⁽³⁾:
Cost of revenue	68,829		66,461			67,891			64,490			64,590		58,812		57,289		52,411
Sales & marketing	43,034		41,028			42,018			40,368			40,844		36,008		37,109		32,503
Product development	11,689		14,032			16,728			16,448			15,210		13,340		12,892		11,044
General and administrative	22,881		23,355			24,322			27,224			23,994		27,333		23,420		23,963
Total operating expenses	146,433		144,876			150,959			148,530			144,638		135,493		130,710		119,921
Income from operations	15,639		6,699			5,625			4,489			7,191		5,570		3,285		10,303
Gain on Sale of Webdam	—		—			—			38,613			—		—		—		—
Other income / (expense), net⁽⁴⁾	1,048		217			(7,019		)	802			1,637		130		1,510		455
Income / (Loss) before income taxes	16,687		6,916			(1,394		)	5,291			8,828		5,700		4,795		10,758
Provision / (Benefit) for income tax⁽⁵⁾	1,774		(531		)	(1,140		)	11,323			6,772		698		1,729		4,155
Net income available to common stockholders	$	14,913	$	7,447		$	(254	)	$	(6,032	)	$	2,056	$	5,002	$	3,066	$	6,603
Net income per common share available to common stockholders:
Basic	$	0.43	$	0.21		$	(0.01	)	$	0.94		$	0.06	$	0.14	$	0.09	$	0.19
Diluted	$	0.42	$	0.21		$	(0.01	)	$	0.92		$	0.06	$	0.14	$	0.09	$	0.19
Weighted average common shares outstanding:
Basic	35,047		34,991			34,913			34,784			34,686		34,643		34,581		34,597
Diluted	35,421		35,570			34,913			35,318			35,149		35,177		35,250		35,595

____________________________________________________________________________

(1)


(2)	Effective January 1, 2018 the Company adopted ASU 2014-09 using the modified retrospective approach. Historical revenue totals reflect those previously reported and have not been restated.


(3)	Includes non-cash equity-based compensation of $23,869 and $24,958 for the years ended December 31, 2018 and 2017, respectively.


(4)	Includes the impairment of a long-term investment asset; changes in fair value of contingent consideration related to the PremiumBeat acquisition; transaction gains and losses primarily related to cash balances of subsidiaries denominated in a currency other than the subsidiaries’ functional currencies; and interest income and expense, which is not material in any period presented.


(5)	Included in the provision for income taxes for the three months ended December 31, 2017 is approximately $3.7 million of non-cash charges related to a remeasurement of deferred tax assets related to the change in U.S. tax rates from 35% to 21% and approximately $0.8 million of cash charges related to a one-time U.S. cash tax for unrepatriated foreign earnings related to the TCJA.

Summary of Operations and Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 230,852	$ 253,428
Restricted cash	2,613	2,613
Total cash, cash equivalents and restricted cash	$ 233,465	$ 256,041	$ 226,803	$ 243,133

Summary of Operations and Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts:
Balance, beginning of period	$ 4,088	$ 5,495	$ 3,768
Add: bad debt expense	1,175	1,292	2,992
Less: write-offs, net of recoveries and other adjustments	(566)	(2,699)	(1,265)
Balance, end of period	$ 4,697	$ 4,088	$ 5,495

Summary of Operations and Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Equipment
Property and Equipment
Useful lives	3 years
Furniture and fixtures
Property and Equipment
Useful lives	7 years
Software
Property and Equipment
Useful lives	3 years

Summary of Operations and Significant Accounting Policies - Capitalized Internal Use Software and Impairment of Long-Lived Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impairment of Long-Lived Assets
Impairment charges	$ 0	$ 0	$ 0
Software
Property, Plant and Equipment [Line Items]
Useful lives	3 years

Summary of Operations and Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Chargeback and sales refund allowances	$ 0.3	$ 0.4

Summary of Operations and Significant Accounting Policies - Contributor Royalties and Internal Sales Commissions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
Deferred royalty advances	$ 6.2	$ 4.7	$ 5.0
Amortization of advance royalty	$ (6.1)	(4.9)	(5.5)
Maximum period over which internal sales commissions get deferred and recognized	12 months
Amortized internal sales commission expense		(5.0)	(4.7)
Prepaid expenses and other current assets
Deferred Revenue Arrangement [Line Items]
Deferred contributor royalties	$ 2.6	2.5
Deferred internal sales commission		1.9
Sales Commission
Deferred Revenue Arrangement [Line Items]
Deferred internal sales commissions		$ 5.5	$ 4.5

Summary of Operations and Significant Accounting Policies - Advertising Costs and Deferred Rent (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Advertising Costs
Advertising costs	$ 91.5	$ 76.6	$ 64.9
Deferred Rent
Deferred rent	$ 11.3	$ 11.1

Summary of Operations and Significant Accounting Policies - Equity-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equity-Based Compensation
Reduction to retained earnings		$ 6,178	$ 326
Increase (decrease) from operating activity	$ 102,202	108,037	100,723
Increase (decrease) from financing activity	$ (109,739)	(33,888)	(53,110)
2012 Plan \| Stock Options
Equity-Based Compensation
Vesting period	4 years
2012 Plan \| Restricted Stock Units
Equity-Based Compensation
Vesting period	3 years
2012 ESPP \| ESPP
Equity-Based Compensation
Vesting period	6 months
Retained Earnings
Equity-Based Compensation
Reduction to retained earnings		6,178	(653)
Accounting Standards Update 2016-09, Excess Tax Benefit Component \| New Accounting Pronouncement, Early Adoption, Effect
Equity-Based Compensation
Increase (decrease) from operating activity			(400)
Increase (decrease) from financing activity			$ 400
Accounting Standards Update 2016-09, Excess Tax Benefit Component \| Retained Earnings \| New Accounting Pronouncement, Early Adoption, Effect
Equity-Based Compensation
Reduction to retained earnings		$ (700)

Summary of Operations and Significant Accounting Policies - Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Employer matching contributions	$ 3.2	$ 1.8	$ 1.7

Summary of Operations and Significant Accounting Policies - Reportable Segments (Details)	12 Months Ended
	Dec. 31, 2018 segment
Accounting Policies [Abstract]
Number of operating segments	1

Summary of Operations and Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Foreign currency transactional gains (losses)	$ (2.2)	$ 2.6	$ 1.0

Summary of Operations and Significant Accounting Policies - Recently Adopted Accounting Standard Update (Details) - USD ($) $ in Thousands	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2019	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets	$ 34,841				$ 37,109					$ 34,841	$ 37,109			$ 33,376
Deferred revenue	139,604				157,803					139,604	157,803			147,892
Retained earnings	101,079				145,139					101,079	145,139			151,317
Revenue	162,072	$ 151,575	$ 156,584	$ 153,019	151,829	$ 141,063	$ 133,995	$ 130,224	$ 557,111	623,250	557,111	$ 494,317
Cost of revenue	68,829	66,461	67,891	64,490	64,590	58,812	57,289	52,411		267,671	233,102	203,129
Provision for income taxes	1,774	$ (531)	$ (1,140)	$ 11,323	6,772	$ 698	$ 1,729	$ 4,155		11,426	13,354	11,869
Net income										54,687	16,727	$ 32,628
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred revenue														$ (9,900)
Restatement Adjustment \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets	4,106				(3,733)					4,106	(3,733)
Deferred revenue	11,270				(9,911)					11,270	(9,911)
Retained earnings	(7,164)				$ 6,178					(7,164)	$ 6,178
Revenue										(1,359)
Cost of revenue										(185)
Provision for income taxes										(188)
Net income										986
Under Legacy Guidance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets	38,947									38,947
Deferred revenue	150,874									150,874
Retained earnings	$ 93,915									93,915
Revenue										621,891
Cost of revenue										267,486
Provision for income taxes										11,238
Net income										$ 55,673
Minimum \| Scenario, Forecast \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability													$ 55,000
Right-of-use asset													45,000
Maximum \| Scenario, Forecast \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability													60,000
Right-of-use asset													$ 50,000

Fair Value Measurements and Other Long-term Investments - Schedule of fair value measurements (Details) - Aggregate Fair Value - Recurring Basis $ in Thousands	Dec. 31, 2017 USD ($)
Assets:
Total assets measured at fair value	$ 55,775
Money market accounts
Assets:
Total assets measured at fair value	55,775
Level 1
Assets:
Total assets measured at fair value	55,775
Level 1 \| Money market accounts
Assets:
Total assets measured at fair value	55,775
Level 2
Assets:
Total assets measured at fair value	0
Level 2 \| Money market accounts
Assets:
Total assets measured at fair value	0
Level 3
Assets:
Total assets measured at fair value	0
Level 3 \| Money market accounts
Assets:
Total assets measured at fair value	$ 0

Fair Value Measurements and Other Long-term Investments - Narrative (Details) - USD ($)		3 Months Ended	12 Months Ended
	Jan. 04, 2018	Jun. 30, 2018	Dec. 31, 2017	Mar. 31, 2017	Jan. 01, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other than temporary impairment		$ 5,900,000
Virtual Moment L L C \| Acquisition related contingent consideration \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value			$ 0
Aggregate Fair Value \| Other Current Liabilities \| PremiumBeat \| Acquisition related contingent consideration \| Recurring Basis \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value contingent consideration				$ 10,000,000	$ 10,000,000
Revolving Credit Facility \| Indirect Guarantee of Indebtedness \| The Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Obligation to lend, maximum exposure				3,300,000
Convertible Notes Payable \| Indirect Guarantee of Indebtedness \| Convertible Note Maturing October 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Obligation to lend, maximum exposure				$ 1,600,000
SilverHub Media Limited
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value in equity method investment		$ 0
Zcool Network Technology Limited \| Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase of convertible preferred stock	$ 15,000,000
Equity ownership interest	25.00%
Variable Interest Entity, Not Primary Beneficiary [Member] \| Zcool Network Technology Limited \| Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase of convertible preferred stock	$ 15,000,000

Acquisition Activity - Narrative (Details) image in Thousands, $ in Thousands			3 Months Ended	12 Months Ended
	Jul. 07, 2017 USD ($)	Sep. 01, 2016 USD ($) image image_collection	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Cash payment				$ 845	$ 49,571	$ 0
FlashStock Technology, Inc.
Business Acquisition [Line Items]
Purchase price	$ 51,700
Cash payment			$ 800		50,900
Estimated useful life	7 years
Portion of goodwill deductible for income tax purposes	26.00%
Professional fees					$ 800
The Picture Desk
Business Acquisition [Line Items]
Cash payment		$ 3,900
Minimum number of images \| image		700
Number of image collections \| image_collection		2
Trade name \| The Picture Desk
Business Acquisition [Line Items]
Estimated useful life		7 years
Contributor content		$ 3,600
Images \| The Picture Desk
Business Acquisition [Line Items]
Estimated useful life		15 years

Acquisition Activity - Schedule of Acquisition (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Jul. 07, 2017
Intangible Assets:
Goodwill	$ 88,576	$ 98,654
FlashStock Technology, Inc.
Assets:
Cash			$ 1,330
Accounts receivables			3,105
Prepaid expenses and other current assets			155
Intangible Assets:
Goodwill			46,217
Total assets acquired			56,007
Liabilities:
Accrued expenses			(279)
Accounts payable			(99)
Deferred tax liability, net			(333)
Deferred revenue			(3,550)
Total liabilities assumed			(4,261)
Total			51,746
FlashStock Technology, Inc. \| Customer relationships
Intangible Assets:
Intangible assets			3,000
FlashStock Technology, Inc. \| Developed technology
Intangible Assets:
Intangible assets			$ 2,200

Sale of Webdam (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Sale of Webdam (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 26, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total cash received, net of transaction costs paid									$ 41,804	$ 0	$ 0
Gain on sale of Webdam	$ 0	$ 0	$ 0	$ 38,613	$ 0	$ 0	$ 0	$ 0	38,613	$ 0	$ 0
Webdam
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of Webdam									38,600
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Webdam
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset purchase price												$ 49,100
Transaction costs paid			$ 4,600
Total cash received, net of transaction costs paid									41,800
Cash received placed in escrow									$ 2,500

Property and Equipment - Summary of property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property and Equipment
Property and equipment	$ 176,946	$ 146,950
Less: accumulated depreciation	(100,758)	(61,252)
Property and equipment, net	76,188	85,698
Computer equipment and software
Property and Equipment
Property and equipment	148,104	118,493
Furniture and fixtures
Property and Equipment
Property and equipment	10,020	9,970
Leasehold improvements
Property and Equipment
Property and equipment	$ 18,822	$ 18,487

Property and Equipment - Narrative (Details) - USD ($)	12 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 40,100,000	$ 29,200,000	$ 14,900,000
Loss on disposal	0	0	0
Capitalized costs	27,700,000	39,200,000	20,000,000
Portion of depreciation expense capitalized internal-use software	24,900,000	14,100,000	$ 3,600,000
Capitalized internal-use software	$ 48,500,000	$ 45,400,000

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Changes in goodwill
December 31, 2017	$ 98,654
Foreign currency translation adjustment	(1,315)
Sale of Webdam	(8,763)
December 31, 2018	88,576
Content Business
Changes in goodwill
December 31, 2017	89,891
Foreign currency translation adjustment	(1,315)
Sale of Webdam	0
December 31, 2018	88,576
Other Category
Changes in goodwill
December 31, 2017	8,763
Foreign currency translation adjustment	0
Sale of Webdam	(8,763)
December 31, 2018	$ 0

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Amortizing intangible assets:
Gross Carrying Amount	$ 48,843	$ 51,155
Accumulated Amortization	(19,303)	(16,958)
Net Carrying Amount	29,540	34,197
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	17,360	21,008
Accumulated Amortization	(7,135)	(6,996)
Net Carrying Amount	$ 10,225	14,012
Weighted Average Life (Years)	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,372	7,159
Accumulated Amortization	(3,719)	(3,299)
Net Carrying Amount	$ 2,653	3,860
Weighted Average Life (Years)	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 4,780	5,528
Accumulated Amortization	(3,633)	(3,450)
Net Carrying Amount	$ 1,147	2,078
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 19,912	17,041
Accumulated Amortization	(4,653)	(3,066)
Net Carrying Amount	$ 15,259	13,975
Weighted Average Life (Years)	10 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 259	259
Accumulated Amortization	(84)	(68)
Net Carrying Amount	$ 175	191
Weighted Average Life (Years)	18 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	160
Accumulated Amortization	(79)	(79)
Net Carrying Amount	$ 81	$ 81
Weighted Average Life (Years)	13 years

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Oct. 01, 2018
Goodwill
Goodwill	$ 88,576,000	$ 98,654,000
Impairment of goodwill	0	0	$ 0
Amortization expense	5,500,000	$ 6,300,000	$ 5,100,000
2019	6,300,000
2020	5,700,000
2021	5,000,000
2022	3,000,000
2023	2,800,000
Thereafter	$ 6,800,000
Editorial
Goodwill
Goodwill				$ 12,600,000
Weighted average cost of capital				15.00%
Terminal growth rate				3.00%
Percentage of fair value, in excess of carrying amount				13.00%

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Compensation	$ 15,153	$ 19,897
Non-income taxes	7,885	6,895
Royalty tax withholdings	5,618	7,566
Other expenses	22,729	24,376
Total accrued expenses	$ 51,385	$ 58,734

Stockholders' Equity (Details)			12 Months Ended
Stockholders' Equity (Details)	Aug. 29, 2018 USD ($)	Aug. 01, 2018 $ / shares	Dec. 31, 2018 USD ($) Vote $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($)	Feb. 28, 2017 USD ($)	Oct. 31, 2015 USD ($)
Special Dividend
Special cash dividend (in dollars per share) \| $ / shares		$ 3
Payment of Special Dividend \| $	$ 104,900,000		$ 104,925,000	$ 0	$ 0
Conversion ratio (in dollars per share)			1.055
Common Stock
Number of votes for each share \| Vote			1
Number of authorized shares of common stock (in shares) \| shares			200,000,000	200,000,000
Common stock, par value (in dollars per share) \| $ / shares			$ 0.01	$ 0.01
Preferred Stock
Preferred stock, authorized shares (in shares) \| shares			5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.01
Treasury Stock
Number of shares acquired \| shares			2,558,000	2,558,000
Common Stock
Treasury Stock
Authorized repurchase amount \| $						$ 100,000,000	$ 100,000,000
Number of shares acquired \| shares			2,558,000
Average per-share cost (in dollars per share) \| $ / shares			$ 39.09
Share value remaining for repurchase \| $			$ 100,000,000

Revenue - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Decrease in deferred revenue due to adoption of ASC 2014-09	$ 147,892	$ 139,604	$ 157,803
Disposal group deferred revenue		$ 133,300
Accounting Standards Update 2014-09
Segment Reporting Information [Line Items]
Decrease in deferred revenue due to adoption of ASC 2014-09	(9,900)
Webdam \| Disposal Group, Not Discontinued Operations
Segment Reporting Information [Line Items]
Deferred revenue decrease	$ 10,200

Revenue - Revenue by Distribution Channel (Details) - USD ($) $ in Thousands	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Total Revenues	$ 162,072	$ 151,575	$ 156,584	$ 153,019	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 557,111	$ 623,250	$ 557,111	$ 494,317
E-Commerce
Disaggregation of Revenue [Line Items]
Total Revenues									332,376	365,730		318,916
Enterprise
Disaggregation of Revenue [Line Items]
Total Revenues									208,713	254,809		164,384
Digital Asset Management
Disaggregation of Revenue [Line Items]
Total Revenues									$ 16,022	$ 2,711		$ 11,017

Equity-Based Compensation - Summary of non-cash equity-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 23,869	$ 24,958	$ 28,080
Stock Options
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	6,009	6,364	7,295
Restricted Stock Units
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	17,860	18,594	20,179
ESPP
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	0	0	606
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	523	795	1,938
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	2,218	4,452	5,444
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	5,815	6,162	7,681
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 15,313	$ 13,549	$ 13,017

Equity-Based Compensation - Summary of stock option awards and weighted average exercise price per option (Details)	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Plan Options
Options outstanding at the beginning of the period (in shares) \| shares	1,183,130
Options granted (in shares) \| shares	19,041
Special Dividend Adjustment (in shares) \| shares	59,074
Options exercised (in shares) \| shares	(91,205)
Options cancelled or expired (in shares) \| shares	(43,585)
Options outstanding at the end of the period (in shares) \| shares	1,126,455
Options vested and expected to vest at the end of the period (in shares) \| shares	343,624
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per unit) \| $ / shares	$ 55.14
Options granted (in dollars per share) \| $ / shares	47.80
Special Dividend Adjustment (in dollars per share) \| $ / shares	0.00
Options exercised (in dollars per share) \| $ / shares	26.91
Options cancelled or expired (in dollars per share) \| $ / shares	53.85
Options outstanding at the end of the period (in dollars per unit) \| $ / shares	54.46
Options vested and expected to vest at the end of the period (in dollars per shares) \| $ / shares	$ 33.91

Equity-Based Compensation - Intrinsic value of the Company's stock options (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options outstanding	$ 2,500	$ 6,400
Stock options exercisable	1,800	3,600
Stock options vested and expected to vest	$ 2,500	$ 6,400

Equity-Based Compensation - Weighted average assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 3 months 12 days	6 years 2 months 12 days	6 years 3 months 18 days
Volatility	47.80%	50.00%	52.50%
Risk-free interest rate	2.625%	2.15%	1.48%
Dividend yield	0.00%	0.00%	0.00%
Weighted average fair value per share granted (in dollars per share)	$ 23.64	$ 24.19	$ 19.03
2012 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)			6 months
Volatility			59.10%
Risk-free interest rate			0.46%
Dividend yield			0.00%

Equity-Based Compensation - Summary of the Company's RSUs activity (Details) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Plan RSUs
Non-vested balance at the beginning of the period (in shares) \| shares	1,173,160
Units granted (in shares) \| shares	576,192
Special Dividend Adjustment (in shares) \| shares	59,888
Units vested (in shares) \| shares	(402,734)
Units cancelled or forfeited (in shares) \| shares	(343,181)
Non-vested balance at the end of the period (in shares) \| shares	1,063,325
Non-vested and deferred balance (in dollars per share) \| shares	1,084,453
Weighted Average Fair Value
Non-vested balance at the beginning of the period (in dollars per share) \| $ / shares	$ 43.79
Units granted (in dollars per share) \| $ / shares	47.92
Special Dividend Adjustment (in dollars per share) \| $ / shares	0.00
Units vested (in dollars per share) \| $ / shares	42.18
Units cancelled or forfeited (in dollars per share) \| $ / shares	43.56
Non-vested balance at the end of the period (in dollars per share) \| $ / shares	44.23
Non-vested and deferred balance (in shares) \| $ / shares	$ 44.49

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions						12 Months Ended
	Aug. 01, 2018	Jan. 01, 2018	Jan. 01, 2017	Apr. 24, 2014	Oct. 10, 2012	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of total stock options exercised						$ 2.0	$ 1.6	$ 10.6
Options granted (in shares)						19,041
Options granted (in dollars per share)						$ 47.80
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge						$ 7.9
Stock Options \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	527,000			500,000
Options granted (in dollars per share)	$ 76.73			$ 80.94
Closing price of the common stock (in dollars per share)				$ 161.88
Consideration period for awards granted				90 days
Service period for amortization of awards				6 years
Total fair value of the grant				$ 21.6
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)						576,192
Unrecognized compensation charge						$ 30.2
Restricted Stock Units \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	105,000			100,000
Closing price of the common stock (in dollars per share)				$ 161.88
Consideration period for awards granted				90 days
Total fair value of the grant				$ 5.8
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares/notional units available for issuance (shares)					6,750,000
Annual increase in shares available for issuance (shares)					1,500,000
Annual increase in the shares available for issuance as a percentage of common stock outstanding as of the last day of immediately preceding fiscal year					3.00%
2012 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Automatic increase (in shares)		1,041,000	1,044,000
2012 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum percentage of eligible compensation considered for payroll deduction to purchase the common stock					15.00%
Maximum purchase of shares by participating employees during each offering period					1,000
Percentage of lower of fair market value of common stock					85.00%
Number of shares issued under ESPP						233,000

Other (Expense)/Income, net (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Nonoperating Income (Expense) [Abstract]
Foreign currency (loss) / gain									$ (1,807)	$ 2,841	$ (167)
Change in contingent consideration fair value									0	0	(1,271)
Impairment of long-term investment asset									(5,881)	0	0
Interest income									2,736	891	149
Other (expense) / income, net	$ 1,048	$ 217	$ (7,019)	$ 802	$ 1,637	$ 130	$ 1,510	$ 455	$ (4,952)	$ 3,732	$ (1,289)

Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Domestic									$ 68,596	$ 24,558	$ 38,549
Foreign									(2,483)	5,523	5,948
Income before income taxes	$ 16,687	$ 6,916	$ (1,394)	$ 5,291	$ 8,828	$ 5,700	$ 4,795	$ 10,758	$ 66,113	$ 30,081	$ 44,497

Income Taxes - Consolidated Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current provision (benefit):
Federal	$ 7,670	$ (4,813)	$ 6,389
State and local	4,800	112	852
Foreign	5,226	5,564	2,861
Deferred provision (benefit):
Federal	(2,901)	14,578	3,376
State and local	(164)	523	(34)
Foreign	(3,205)	(2,610)	(1,575)
Provision for income taxes	$ 11,426	$ 13,354	$ 11,869

Income Taxes - Tax Rate Reconciliation (Details)	12 Months Ended
Income Taxes - Tax Rate Reconciliation (Details)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective income tax rate reconciliation:
U.S. income tax at federal statutory rate	21.00%	35.00%	35.00%
Tax credits	(5.40%)	(4.00%)	(12.00%)
State and local taxes, net of federal benefit	1.90%	2.10%	2.90%
Equity-based compensation	(0.40%)	1.90%	2.10%
Foreign rate differential	0.50%	(2.30%)	(1.80%)
Foreign-derived intangible income deduction	(3.70%)	0.00%	0.00%
Uncertain tax positions	3.60%	5.20%	(0.40%)
Transition tax related to TCJA	(0.30%)	2.60%	0.00%
U.S. Federal rate change related to TCJA	0.00%	12.40%	0.00%
Domestic production activities deduction	(0.00%)	(9.80%)	(0.00%)
Non-deductible—other	0.10%	1.30%	0.90%
Total provision for income taxes	17.30%	44.40%	26.70%

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Non-cash equity-based compensation	$ 9,383	$ 8,342
Intangible amortization	3,252	4,555
Non-income tax accruals	3,087	2,887
Deferred rent	2,537	2,484
Other liabilities	6,523	2,895
Deferred tax assets	24,782	21,163
Deferred tax liabilities:
Depreciation and amortization	(12,484)	(12,888)
Net deferred tax assets	$ 12,298	$ 8,275

Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of unrecognized tax benefits
Balance of unrecognized tax benefits at January 1	$ 2,966	$ 1,455	$ 1,479
Gross additions for tax positions for prior years	332	1,412	886
Gross additions for tax positions for current year	3,476	273	360
Gross expirations	(928)	(174)	(1,270)
Balance of unrecognized tax benefits at December 31	$ 5,846	$ 2,966	$ 1,455

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Impact of remeasuring deferred tax balances	$ 3,700
Transition tax expense	800
Non-cash equity-based compensation	9,383	$ 8,342
Impact on effective tax rate on recognition of unrecognized tax benefits	5,400
Undistributed earnings attributable to its foreign subsidiaries	12,700
Unrecognized deferred tax liability related to undistributed earnings	1,300
Chief Executive Officer \| Performance Shares And Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash equity-based compensation	5,600
Canada
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating loss carryforwards	9,100
U.K.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating loss carryforwards	$ 7,800

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Net income									$ 54,687	$ 16,727	$ 32,628
Shares used to compute basic net income per share (in shares)	35,047	34,991	34,913	34,784	34,686	34,643	34,581	34,597	34,935	34,627	35,114
Dilutive potential common shares:
Stock options and employee stock purchase plan shares (in shares)									117	388	441
Unvested restricted stock awards (in shares)									368	276	306
Shares used to compute diluted net income per share (in shares)	35,421	35,570	34,913	35,318	35,149	35,177	35,250	35,595	35,420	35,291	35,861
Basic net income per share (in dollars per share)	$ 0.43	$ 0.21	$ (0.01)	$ 0.94	$ 0.06	$ 0.14	$ 0.09	$ 0.19	$ 1.57	$ 0.48	$ 0.93
Diluted net income per share (in dollars per share)	$ 0.42	$ 0.21	$ (0.01)	$ 0.92	$ 0.06	$ 0.14	$ 0.09	$ 0.19	$ 1.54	$ 0.47	$ 0.91
Potentially dilutive shares included in the calculation (in shares)									1,285	1,384	1,954
Anti-dilutive shares excluded from the calculation (in shares)									1,020	1,325	999

Segment and Geographic Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 162,072	$ 151,575	$ 156,584	$ 153,019	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 557,111	$ 623,250	$ 557,111	$ 494,317
Operating Expenses	146,433	144,876	150,959	148,530	144,638	135,493	130,710	119,921		590,798	530,762	448,531
Income from operations	$ 15,639	$ 6,699	$ 5,625	$ 4,489	$ 7,191	$ 5,570	$ 3,285	$ 10,303		32,452	26,349	45,786
Unallocated corporate expenses										97,800	96,500	67,700
Content Segment
Segment Reporting Information [Line Items]
Revenue										620,539	541,088	483,278
Operating Expenses										490,985	417,507	364,631
Income from operations										129,554	123,581	118,647
Corporate
Segment Reporting Information [Line Items]
Revenue										2,711	16,023	11,039
Operating Expenses										99,813	113,255	83,900
Income from operations										$ (97,102)	$ (97,232)	$ (72,861)

Segment and Geographic Information - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 162,072	$ 151,575	$ 156,584	$ 153,019	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 557,111	$ 623,250	$ 557,111	$ 494,317
North America
Segment Reporting Information [Line Items]
Revenue										230,890	218,865	197,650
Europe
Segment Reporting Information [Line Items]
Revenue										207,634	181,693	161,906
Rest of the world
Segment Reporting Information [Line Items]
Revenue										$ 184,726	$ 156,553	$ 134,761

Segment and Geographic Information - Narrative (Details) - Geographic Concentration Risk	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Sales Revenue, Services, Net \| United States
Concentration Risk [Line Items]
Revenue percent	34.00%		35.00%
Sales Revenue, Services, Net \| United Kingdom
Concentration Risk [Line Items]
Revenue percent	8.00%
Long-Lived Tangible Assets \| United States
Concentration Risk [Line Items]
Revenue percent	88.00%	92.00%

Segment and Geographic Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 76,188	$ 85,698
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	71,758	83,027
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	4,371	2,599
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 59	$ 72

Commitments and Contingencies - Schedule of future minimum lease payments under non-cancelable operating leases (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Operating Leases
2019	$ 9,913
2020	8,762
2021	7,493
2022	6,829
2023	6,082
Thereafter	39,481
Total minimum lease payments	78,560
Other Obligations
2019	29,758
2020	27,056
2021	13,770
2022	3,333
2023	0
Thereafter	0
Total other obligations	$ 73,917

Commitments and Contingencies - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Rental expense inclusive of operating leases	$ 9,200,000	$ 8,500,000	$ 7,200,000
Total minimum lease payments	78,560,000
Letter of credit as a security deposit for the leased facilities	2,600,000
Cash collateral	2,600,000
Other obligations	73,917,000
Maximum aggregate obligation liability	10,000
Recorded liabilities	0
Corporate Headquarters
Loss Contingencies [Line Items]
Total minimum lease payments	$ 67,400,000

Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 162,072	$ 151,575	$ 156,584	$ 153,019	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 557,111	$ 623,250	$ 557,111	$ 494,317
Operating expenses:
Cost of revenue	68,829	66,461	67,891	64,490	64,590	58,812	57,289	52,411		267,671	233,102	203,129
Sales & marketing	43,034	41,028	42,018	40,368	40,844	36,008	37,109	32,503		166,448	146,464	126,626
Product development	11,689	14,032	16,728	16,448	15,210	13,340	12,892	11,044		58,897	52,486	47,789
General and administrative	22,881	23,355	24,322	27,224	23,994	27,333	23,420	23,963		97,782	98,710	70,987
Total operating expenses	146,433	144,876	150,959	148,530	144,638	135,493	130,710	119,921		590,798	530,762	448,531
Income from operations	15,639	6,699	5,625	4,489	7,191	5,570	3,285	10,303		32,452	26,349	45,786
Gain on Sale of Webdam	0	0	0	38,613	0	0	0	0		38,613	0	0
Other (expense) / income, net	1,048	217	(7,019)	802	1,637	130	1,510	455		(4,952)	3,732	(1,289)
Income before income taxes	16,687	6,916	(1,394)	5,291	8,828	5,700	4,795	10,758		66,113	30,081	44,497
Provision for income taxes	1,774	(531)	(1,140)	11,323	6,772	698	1,729	4,155		$ 11,426	$ 13,354	$ 11,869
Net income available to common stockholders	$ 14,913	$ 7,447	$ (254)	$ (6,032)	$ 2,056	$ 5,002	$ 3,066	$ 6,603
Net income per common share available to common stockholders:
Basic (in dollars per share)	$ 0.43	$ 0.21	$ (0.01)	$ 0.94	$ 0.06	$ 0.14	$ 0.09	$ 0.19		$ 1.57	$ 0.48	$ 0.93
Diluted (in dollars per share)	$ 0.42	$ 0.21	$ (0.01)	$ 0.92	$ 0.06	$ 0.14	$ 0.09	$ 0.19		$ 1.54	$ 0.47	$ 0.91
Weighted average shares outstanding:
Basic (in shares)	35,047	34,991	34,913	34,784	34,686	34,643	34,581	34,597		34,935	34,627	35,114
Diluted (in shares)	35,421	35,570	34,913	35,318	35,149	35,177	35,250	35,595		35,420	35,291	35,861
Equity based compensation										$ 23,869	$ 24,958	$ 28,080
Impact of remeasuring deferred tax balances										3,700
Transition tax expense										800
Restatement Adjustment
Operating expenses:
General and administrative			$ 800				$ 100
Enterprise
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue									$ 208,713	$ 254,809		$ 164,384
Enterprise \| Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue		$ (800)	$ 400			$ 900	$ (600)