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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 19, 2019
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		35,215,629
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 240,141	$ 230,852
Accounts receivable, net	45,449	41,028
Prepaid expenses and other current assets	35,378	34,841
Total current assets	320,968	306,721
Property and equipment, net	72,553	76,188
Right-of-use assets	46,313
Intangible assets, net	29,048	29,540
Goodwill	88,889	88,576
Deferred tax assets, net	11,636	12,375
Other assets	18,090	18,088
Total assets	587,497	531,488
Current liabilities:
Accounts payable	4,941	7,212
Accrued expenses	53,887	51,385
Contributor royalties payable	25,156	22,971
Deferred revenue	137,368	139,604
Other current liabilities	10,858	2,131
Total current liabilities	232,210	223,303
Deferred tax liability, net	0	77
Lease liabilities	48,591
Other non-current liabilities	11,712	21,441
Total liabilities	292,513	244,821
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 37,759 and 37,618 shares issued and 35,201 and 35,060 shares outstanding as of March 31, 2019 and December 31, 2018, respectively	378	376
Treasury stock, at cost; 2,558 shares as of March 31, 2019 and December 31, 2018	(100,027)	(100,027)
Additional paid-in capital	292,458	291,710
Accumulated comprehensive loss	(6,426)	(6,471)
Retained earnings	108,601	101,079
Total stockholders’ equity	294,984	286,667
Total liabilities and stockholders’ equity	$ 587,497	$ 531,488

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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)	37,759,000	37,618,000
Common stock, shares outstanding (in shares)	35,201,000	35,060,000
Treasury stock, shares held in treasury (in shares)	2,558,000	2,558,000

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 163,332	$ 153,019
Operating expenses:
Cost of revenue	69,218	64,490
Sales and marketing	44,446	40,368
Product development	14,986	16,448
General and administrative	26,583	27,224
Total operating expenses	155,233	148,530
Income from operations	8,099	4,489
Gain on Sale of Webdam	0	38,613
Other income, net	896	802
Income before taxes	8,995	43,904
Provision for income taxes	1,473	11,323
Net income	$ 7,522	$ 32,581
Earnings per share:
Basic (in dollars per share)	$ 0.21	$ 0.94
Diluted (in dollars per share)	$ 0.21	$ 0.92
Weighted average shares outstanding:
Basic (in shares)	35,114	34,784
Diluted (in shares)	35,491	35,318

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 7,522	$ 32,581
Foreign currency translation gain	45	1,075
Other comprehensive income	45	1,075
Comprehensive income	$ 7,567	$ 33,656

Consolidated Statements of Stockholders Equity Statement - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative Effect of Accounting Change	$ 6,178			$ 0		$ 6,178
Adjusted beginning balance	320,763	$ 373	$ (100,027)	272,657	$ (3,557)	151,317
Beginning balance (in shares) at Dec. 31, 2017		37,270	2,558
Beginning balance at Dec. 31, 2017	314,585	$ 373	$ (100,027)	272,657	(3,557)	145,139
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	5,606			5,606
Issuance of common stock in connection with employee stock option exercises and RSU vesting	1,179	$ 3		1,176
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		252
Common shares withheld for settlement of taxes in connection with equity-based compensation	(4,040)	$ (1)		(4,039)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(83)
Other comprehensive loss	1,075				1,075
Net income	32,581					32,581
Ending balance at Mar. 31, 2018	357,164	$ 375	$ (100,027)	275,400	(2,482)	183,898
Ending balance (in shares) at Mar. 31, 2018		37,439	2,558
Beginning balance (in shares) at Dec. 31, 2018		37,618	2,558
Beginning balance at Dec. 31, 2018	286,667	$ 376	$ (100,027)	291,710	(6,471)	101,079
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	4,624			4,624
Issuance of common stock in connection with employee stock option exercises and RSU vesting	217	$ 3		214
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		229
Common shares withheld for settlement of taxes in connection with equity-based compensation	(4,091)	$ (1)		(4,090)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(88)
Other comprehensive loss	45				45
Net income	7,522					7,522
Ending balance at Mar. 31, 2019	$ 294,984	$ 378	$ (100,027)	$ 292,458	$ (6,426)	$ 108,601
Ending balance (in shares) at Mar. 31, 2019		37,759	2,558

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 7,522	$ 32,581
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,916	10,943
Deferred taxes	699	(1,644)
Non-cash equity-based compensation	4,624	5,606
Gain on Sale of Webdam	0	(38,613)
Bad debt expense	(632)	238
Changes in operating assets and liabilities:
Accounts receivable	(3,812)	561
Prepaid expenses and other current and non-current assets	(2,782)	(7,688)
Accounts payable and other current and non-current liabilities	1,994	15,247
Contributor royalties payable	2,138	3,027
Deferred revenue	(1,958)	836
Net cash provided by operating activities	19,709	21,094
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(7,253)	(14,975)
Acquisition of businesses, net of cash acquired	0	(845)
Proceeds from Sale of Webdam, net	2,500	42,338
Other investments / advances	0	(15,000)
Acquisition of digital content	(545)	(635)
Security deposit release	0	34
Net cash used in investing activities	(5,298)	10,917
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	214	1,185
Cash paid related to settlement of employee taxes related to RSU vesting	(4,090)	(4,033)
Net cash used in financing activities	(3,876)	(2,848)
Effect of foreign exchange rate changes on cash	(1,246)	2,291
Net increase in cash, cash equivalents and restricted cash	9,289	31,454
Cash, cash equivalents and restricted cash, beginning of period	233,465	256,041
Cash, cash equivalents and restricted cash, end of period	242,754	287,495
Supplemental Disclosure of Cash Information:
Cash paid / (received) for income taxes	$ 305	$ (1,835)

Summary of Operations and Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Operations and Significant Accounting Policies

Summary of Operations

Shutterstock, Inc., together with its subsidiaries (collectively, 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 3, 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”).

Basis of Presentation

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements.

The interim Consolidated Balance Sheet as of March 31, 2019, Consolidated Statements of Operations, Comprehensive Income, Stockholders’ Equity and Cash Flows for the three months ended March 31, 2019 and 2018, are unaudited. The Consolidated Balance Sheet as of December 31, 2018, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include all normal recurring adjustments necessary to state fairly the Company’s financial position as of March 31, 2019, its consolidated results of operations and comprehensive income for the three months ended March 31, 2019 and 2018, and its cash flows for the three months ended March 31, 2019 and 2018. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2019 or for any other future annual or interim period.

These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 26, 2019. The unaudited consolidated financial statements 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 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 volume of expected unused licenses for our subscription-based products, 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, the measurement of income tax and contingent non-income tax liabilities and the determination of the incremental borrowing rate to calculate the lease liability.

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of March 31, 2019 and December 31, 2018 (in thousands):



	As of March 31, 2019		As of December 31, 2018
Cash and cash equivalents	$	240,141	$	230,852
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	242,754	$	233,465

The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts. These assets 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.

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. During the three months ended March 31, 2019, the Company reduced its allowance for doubtful accounts which included a $0.6 million benefit recorded to bad debt expense and $0.1 million related to write-offs and other adjustments. As of March 31, 2019 and December 31, 2018, the Company’s allowance for doubtful accounts was approximately $4.0 million and $4.7 million, respectively, which was included as a reduction of accounts receivable.

Chargeback and Sales Refund Allowance

The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of March 31, 2019 and December 31, 2018, the Company’s combined allowance for chargebacks and sales refunds was $0.3 million and $0.3 million, respectively, which was included in other liabilities.

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.

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. 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.

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.

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) 2014-09, as amended (“ASU 2014-09”), on January 1, 2018 using the modified retrospective approach, and prior period amounts were not restated. The effect of adoption of this new guidance on the Consolidated Balance Sheet as of January 1, 2018 was to reduce (i) prepaid expenses and other current assets by $3.7 million and (ii) deferred revenues by $9.9 million, with an offsetting $6.2 million increase in 2018 opening retained earnings.

Leasing

The Company records rent expense on a straight-line basis over the term of the related lease. Prior to the adoption of FASB ASU 2016-02, Leases (Topic 842), as amended (“ASC 842”), the difference between the rent expense recognized and the actual payments made in accordance with the operating lease agreement was recognized as a deferred rent liability on the Company’s balance sheet. As of December 31, 2018, the Company had deferred rent of $11.3 million, which is included in other non-current liabilities in the Consolidated Balance Sheet.

Effective January 1, 2019, the Company adopted ASC 842. In accordance with ASC 842, the Company first determines if an arrangement contains a lease and the classification of that lease, if applicable, at inception. This standard requires the recognition of right-of-use (“ROU”) assets and lease liabilities for the Company’s operating leases. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration, and to account for the lease and non-lease components as a single lease component. The Company has also elected not to recognize a lease liability or ROU asset for leases with a term of 12 months or less, and recognize lease payments for those short-term leases on a straight-line basis over the lease term in the Consolidated Statements of Operations. Operating leases are included in ROU assets, other current liabilities and lease liabilities (net of current portion) in the Consolidated Balance Sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments under the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within the Company’s leases is generally not determinable and therefore the incremental borrowing rate at the lease commencement date is utilized to determine the present value of lease payments. The determination of the incremental borrowing rate requires judgment. Management determines the incremental borrowing rate for each lease using the Company’s estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The ROU asset also includes any lease prepayments, offset by lease incentives. Certain of the Company’s leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when the Company is reasonably certain that the option will be exercised. An option to terminate is considered unless the Company is reasonably certain the option will not be exercised.

Recently Adopted 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 has adopted 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 lease standard would occur at the adoption date and a cumulative-effect adjustment, if any, 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 previous disclosure requirements in accordance with existing lease guidance for all periods presented in the year of adoption.

The Company has elected the practical expedients permitted under the transition guidance which enabled the Company: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and, (3) not to reassess the treatment of initial direct costs for existing leases. In addition, the Company has made 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 on January 1, 2019, the Company recognized a total lease liability in the amount of $58.0 million, representing the present value of the minimum rental payments remaining as of the adoption date and a right-of-use asset in the amount of $46.7 million.

Recently Issued Accounting Standard Updates

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	3 Months Ended
Fair Value Measurements and Other Long-term Investments	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements and Other Long-term Investments	Fair Value Measurements and Other Long-term Investments Fair Value Measurements The Company had no assets or liabilities requiring fair value hierarchy disclosures as of March 31, 2019 or December 31, 2018. 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 fair value. Other Long-term Investments 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 creative 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 March 31, 2019 and December 31, 2018, the Company’s total investment in ZCool is approximately $15.0 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

Sale of Digital Asset Management Business	3 Months Ended
Sale of Digital Asset Management Business	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Sale of Digital Asset Management Business	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, net of $4.6 million transaction costs paid, was $44.3 million, inclusive of $2.5 million received during the three months ended March 31, 2019 from the release of funds from escrow. During the three months ended March 31, 2018, the Company recognized a pre-tax gain on sale of approximately $38.6 million, which represents the excess of the net purchase price over the net assets transferred, less transaction costs.

Property and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

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



	As of March 31, 2019			As of December 31, 2018
Computer equipment and software	$	155,112		$	148,104
Furniture and fixtures	10,028			10,020
Leasehold improvements	18,780			18,822
Property and equipment	183,920			176,946
Less accumulated depreciation	(111,367		)	(100,758		)
Property and equipment, net	$	72,553		$	76,188

Depreciation and amortization expense related to property and equipment was $10.6 million and $9.5 million for the three months ended March 31, 2019 and 2018, respectively. Depreciation and amortization expense is included in cost of revenue and general and administrative expense in the Consolidated Statements of Operations based on the nature of the asset being depreciated.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $6.5 million and $9.6 million for the three months ended March 31, 2019 and 2018, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software on the Consolidated Balance Sheets.

The portion of total depreciation expense related to capitalized internal-use software was $7.3 million and $5.4 million for the three months ended March 31, 2019 and 2018, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue and general and administrative expense in the Consolidated Statements of Operations.

As of March 31, 2019 and December 31, 2018, the Company had capitalized internal-use software of $47.4 million and $48.2 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2019

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 annually on October 1 or upon a triggering event. No triggering events were identified during the three months ended March 31, 2019.

The following table summarizes the changes in the carrying value of the Company’s goodwill balance during the three months ended March 31, 2019 (in thousands):



	Goodwill
Balance as of December 31, 2018	$	88,576
Foreign currency translation adjustment	313
Balance as of March 31, 2019	$	88,889

Intangible Assets

Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands):



	As of March 31, 2019						As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets:
Customer relationships	$	17,649	$	(7,744	)	9	$	17,360	$	(7,135	)
Trade name	6,455		(3,980		)	7	6,372		(3,719		)
Developed technology	4,838		(3,844		)	4	4,780		(3,633		)
Contributor content	20,572		(5,150		)	10	19,912		(4,653		)
Patents	259		(88		)	18	259		(84		)
Domain name	160		(79		)	13	160		(79		)
Total	$	49,933	$	(20,885	)		$	48,843	$	(19,303	)

Amortization expense was $1.3 million and $1.5 million for the three months ended March 31, 2019 and 2018, respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $4.9 million for the remaining nine months of 2019, $5.9 million in 2020, $5.1 million in 2021, $3.4 million in 2022, $2.8 million in 2023, $2.7 million in 2024 and $4.2 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

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	As of March 31, 2019		As of December 31, 2018
Compensation	$	13,176	$	15,153
Non-income taxes	8,782		7,885
Royalty tax withholdings	5,681		5,618
Other expenses	26,248		22,729
Total accrued expenses	$	53,887	$	51,385

Stockholders’ Equity and Equity-Based Compensation

3 Months Ended

Mar. 31, 2019

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

Stockholders’ Equity and Equity-Based Compensation

Stockholders’ Equity

Common Stock

During the three months ended March 31, 2019 and 2018, the Company issued approximately 141,000 and 169,000 shares of common stock, respectively, primarily related to the exercise of stock options and the vesting of Restricted Stock Units (“RSUs”).

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 repurchase up to an additional $100 million of its outstanding common stock. During the three months ended March 31, 2019 and 2018, the Company did not repurchase any shares of its common stock under the share repurchase program. As of March 31, 2019, the Company had $100 million of remaining authorization for purchases under the share repurchase program.

The Company expects to fund future repurchases, if any, 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 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.

Equity-Based Compensation

The Company recognizes stock-based compensation expense for all share-based payment awards, including employee stock options and RSUs granted under the 2012 Plan, 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 financial statement line item included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (in thousands):



	Three Months Ended March 31,
	2019		2018
Cost of revenue	$	85	$	174
Sales and marketing	582		427
Product development	1,175		1,477
General and administrative	2,782		3,528
Total	$	4,624	$	5,606

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (in thousands):



	Three Months Ended March 31,
	2019		2018
Stock options	$	891	$	1,466
RSUs	3,733		4,140
Total	$	4,624	$	5,606

Stock Option Awards

During the three months ended March 31, 2019, the Company did not grant any options to purchase shares of its common stock. As of March 31, 2019, there were approximately 429,000 options vested and exercisable with a weighted average exercise price of $33.94. As of March 31, 2019, the total unrecognized compensation charge related to non-vested options was approximately $5.9 million, which is expected to be recognized through 2022.

Restricted Stock Unit Awards

During the three months ended March 31, 2019, the Company had net RSU forfeitures, after considering RSU grants, of approximately 52,000. As of March 31, 2019 there are approximately 788,000 non-vested RSUs outstanding with a weighted average grant-date fair value of $44.67. As of March 31, 2019, the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $24.0 million, which is expected to be recognized through 2022. On April 1, 2019, the Company granted approximately 365,000 RSUs with a grant date fair value of approximately $17.0 million.

During the three months ended March 31, 2019, shares of common stock with an aggregate value of $4.1 million were withheld upon vesting of RSUs and in connection with related remittance of employee withholding taxes to taxing authorities.

Grant of Performance Stock Units (“PSUs”)

On March 26, 2019, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of the Company approved a new form of performance-based stock unit award agreement (the “Form PSU Award Agreement”) under the Company’s Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”). On April 1, 2019, the Company awarded approximately 202,000 target PSUs to certain of the Company’s officers. These awards will be measured against performance goals set by the Compensation Committee for each year during a three-year performance period starting on January 1, 2019, and ending on December 31, 2021.

Revenue

3 Months Ended

Mar. 31, 2019

Deferred Revenue Disclosure [Abstract]

Revenue

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

E-commerce: The majority of customers purchase content licenses directly through the Company’s e-commerce platforms. E-commerce customers have the flexibility to purchase a subscription plan that is paid on a monthly or annual basis or to purchase content licenses 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 dedicated sales, service and research teams which provide a number of enhancements to their creative workflows including non-standard licensing rights, multi-seat access, invoicing and the ability to pay on credit terms, increased indemnification protection, multi-brand licensing packages 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:

Other: The Company’s other sales channel includes revenue from Webdam’s digital asset management offerings which included tools to help organizations manage, search, distribute and collaborate on creative and other brand-building activities. Effective February 26, 2018, the Company completed the Sale of Webdam. See Note 3 for further information on the Sale of Webdam.

The Company’s revenue by distribution channel for the three months ended March 31, 2019 and 2018 are as follows (in thousands):



	Three Months Ended March 31,
	2019		2018
E-commerce	$	98,113	$	89,735
Enterprise	65,219		60,573
Other ⁽¹⁾	—		2,711
Total Revenues	$	163,332	$	153,019


(1)	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 March 31, 2019 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. $67.3 million of total revenue recognized for the three months ended March 31, 2019 was reflected in deferred revenue as of December 31, 2018.

Other Expense / Income, Net

3 Months Ended

Mar. 31, 2019

Other Nonoperating Income (Expense) [Abstract]

Other Expense / Income, Net

Other Income, net

The following table presents a summary of the Company’s other income and expense activity included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (in thousands):



	Three Months Ended March 31,
	2019			2018
Foreign currency (loss) / gain	$	(161	)	$	319
Interest income	1,057			483
Total other income	$	896		$	802

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates yielded a net expense of 16.4% and 25.8% for the three months ended March 31, 2019 and 2018, respectively. In the three months ended March 31, 2019, the impact of discrete items decreased the effective tax rate for the three months ended March 31, 2019 by 1.2%. In the three months ended March 31, 2018, the Company incurred a discrete tax expense related primarily to the gain on Sale of Webdam, the net effect of which increased the effective tax rate for the three months ended March 31, 2018 by 9.6%. The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The estimated annual effective tax rate differs from the statutory tax rate due primarily to the international provisions enacted as part of the Tax Cuts and Jobs Act of 2017. During the three months ended March 31, 2019 and 2018, uncertain tax positions recorded by the Company were not material. To the extent the remaining uncertain tax positions are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not material for the three months ended March 31, 2019 and 2018. During the three months ended March 31, 2019, the Company paid net cash taxes of $0.3 million and during the three months ended March 31, 2018, the Company received net cash tax refunds of $1.8 million.

Net Income Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Net Income Per Share

Basic net income per share is computed using the weighted average number of shares of common stock outstanding for the period, excluding unvested RSUs and stock options. Diluted net income per share is based upon the weighted average shares of common stock outstanding for the period plus dilutive potential shares of common stock, 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 the three months ended March 31, 2019 and 2018 (in thousands):



	Three Months Ended March 31,
	2019		2018
Net income	$	7,522	$	32,581
Shares used to compute basic net income per share	35,114		34,784
Dilutive potential common shares
Stock options	105		116
Unvested restricted stock awards	272		418
Shares used to compute diluted net income per share	35,491		35,318
Basic net income per share	$	0.21	$	0.94
Diluted net income per share	$	0.21	$	0.92

Dilutive securities included in the calculation	979		1,425
Anti-dilutive securities excluded from the calculation	1,135		938

Geographic Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Geographic Information

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



	Three Months Ended March 31,
	2019		2018
North America	$	57,514	$	56,958
Europe	55,485		51,934
Rest of the world	50,333		44,127
Total revenue	$	163,332	$	153,019

The United States, included in North America in the above table, accounted for 32% and 34% of consolidated revenue for the three months ended March 31, 2019 and 2018, respectively. 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):



	March 31,		December 31,
	2019		2018
North America	$	67,440	$	71,758
Europe	5,050		4,371
Rest of the world	63		59
Total long-lived tangible assets	$	72,553	$	76,188

The United States, included in North America in the above table, accounted for 86% and 88% of total long-lived tangible assets as of March 31, 2019 and December 31, 2018, respectively. No other country accounts for more than 10% of the Company’s long-lived tangible assets in any period presented.

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

The Company’s leases relate primarily to office facilities that expire on various dates from 2019 through 2029, some of which include one or more options to renew. All of the Company’s leases are classified as operating leases. Operating lease costs, including insignificant costs related to short-term leases, were $2.7 million and $2.4 million for the three months ended March 31, 2019 and 2018, respectively.

Additional information related to the Company’s leases as of and for the three months ended March 31, 2019, is as follows:



(in thousands, except lease term and discount rate)	March 31, 2019
Balance sheet information
ROU assets	$	46,313

Lease liabilities, current	$	9,060
Lease liabilities, non-current	48,591
Total lease liabilities	$	57,651

Supplemental data
Weighted average remaining lease term	9.0 years
Weighted average discount rate	6.2		%

Cash paid for amounts included in lease liabilities	$	2,433
ROU assets obtained in exchange for lease obligations	$	1,160

Maturities of lease liabilities as of March 31, 2019 were as follows:



(in thousands)	March 31, 2019
Year ending December 31,
2019 (remaining)	$	7,386
2020	8,834
2021	7,620
2022	6,957
2023	6,208
Thereafter	39,591
Total undiscounted lease payments	76,596
Less: imputed interest	(18,945		)
Total lease liabilities	$	57,651

The Company’s most significant lease is for its headquarters in New York City, which was entered into in March 2013 and was amended in January 2016 (“ESB Lease”). As amended, the ESB Lease will expire in 2029, and the undiscounted remaining future minimum lease payments are approximately $66.1 million. The Company is also party to a $2.6 million letter of credit, as a security deposit for the ESB Lease, which is collateralized by an equivalent amount of cash, and is reported as restricted cash within other assets on the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018.

Fiscal year 2018 lease commitments in accordance with prior guidance

Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in thousands):



Year Ending December 31,	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

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Unconditional purchase obligations and other obligations As of March 31, 2019, the Company had total other non-lease obligations in the amount of approximately $71.5 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of March 31, 2019, the Company’s other obligations for the remainder of 2019 and for the years ending December 31, 2020, 2021, 2022 and 2023 were approximately $20.5 million, $30.4 million, $16.7 million and $3.9 million, respectively. 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. Indemnification and Employment Agreements 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 March 31, 2019, the Company had recorded no material 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. Pursuant to the Company’s charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its executive officers, certain employees and directors, as well as certain former officers and directors. 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.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events [TBD]

Summary of Operations and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Unaudited Interim Financial Statements

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

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of March 31, 2019 and December 31, 2018 (in thousands):



	As of March 31, 2019		As of December 31, 2018
Cash and cash equivalents	$	240,141	$	230,852
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	242,754	$	233,465

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

Allowance for Doubtful Accounts

Chargeback and Sales Refund Allowance and Revenue Recognition

Chargeback and Sales Refund Allowance

Revenue Recognition

Leasing

Recently Adopted and Issued Accounting Standard Updates

Recently Adopted Accounting Standard Updates

Recently Issued Accounting Standard Updates

Summary of Operations and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of March 31, 2019 and December 31, 2018 (in thousands):



	As of March 31, 2019		As of December 31, 2018
Cash and cash equivalents	$	240,141	$	230,852
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	242,754	$	233,465

Schedule of Cash and Cash Equivalents

The following represents the Company’s cash, cash equivalents and restricted cash as of March 31, 2019 and December 31, 2018 (in thousands):



	As of March 31, 2019		As of December 31, 2018
Cash and cash equivalents	$	240,141	$	230,852
Restricted cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	242,754	$	233,465

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Summary of property and equipment

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



	As of March 31, 2019			As of December 31, 2018
Computer equipment and software	$	155,112		$	148,104
Furniture and fixtures	10,028			10,020
Leasehold improvements	18,780			18,822
Property and equipment	183,920			176,946
Less accumulated depreciation	(111,367		)	(100,758		)
Property and equipment, net	$	72,553		$	76,188

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in goodwill

The following table summarizes the changes in the carrying value of the Company’s goodwill balance during the three months ended March 31, 2019 (in thousands):



	Goodwill
Balance as of December 31, 2018	$	88,576
Foreign currency translation adjustment	313
Balance as of March 31, 2019	$	88,889

Schedule of intangible assets

Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands):



	As of March 31, 2019						As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets:
Customer relationships	$	17,649	$	(7,744	)	9	$	17,360	$	(7,135	)
Trade name	6,455		(3,980		)	7	6,372		(3,719		)
Developed technology	4,838		(3,844		)	4	4,780		(3,633		)
Contributor content	20,572		(5,150		)	10	19,912		(4,653		)
Patents	259		(88		)	18	259		(84		)
Domain name	160		(79		)	13	160		(79		)
Total	$	49,933	$	(20,885	)		$	48,843	$	(19,303	)

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consisted of the following (in thousands):



	As of March 31, 2019		As of December 31, 2018
Compensation	$	13,176	$	15,153
Non-income taxes	8,782		7,885
Royalty tax withholdings	5,681		5,618
Other expenses	26,248		22,729
Total accrued expenses	$	53,887	$	51,385

Stockholders’ Equity and Equity-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

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



	Three Months Ended March 31,
	2019		2018
Cost of revenue	$	85	$	174
Sales and marketing	582		427
Product development	1,175		1,477
General and administrative	2,782		3,528
Total	$	4,624	$	5,606



	Three Months Ended March 31,
	2019		2018
Stock options	$	891	$	1,466
RSUs	3,733		4,140
Total	$	4,624	$	5,606

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Deferred Revenue Disclosure [Abstract]

Disaggregation of Revenue

The Company’s revenue by distribution channel for the three months ended March 31, 2019 and 2018 are as follows (in thousands):



	Three Months Ended March 31,
	2019		2018
E-commerce	$	98,113	$	89,735
Enterprise	65,219		60,573
Other ⁽¹⁾	—		2,711
Total Revenues	$	163,332	$	153,019


(1)	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.

Other Expense / Income, Net (Tables)

3 Months Ended

Mar. 31, 2019

Other Nonoperating Income (Expense) [Abstract]

Summary of the Company's other (expense) income, net activity



	Three Months Ended March 31,
	2019			2018
Foreign currency (loss) / gain	$	(161	)	$	319
Interest income	1,057			483
Total other income	$	896		$	802

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares



	Three Months Ended March 31,
	2019		2018
Net income	$	7,522	$	32,581
Shares used to compute basic net income per share	35,114		34,784
Dilutive potential common shares
Stock options	105		116
Unvested restricted stock awards	272		418
Shares used to compute diluted net income per share	35,491		35,318
Basic net income per share	$	0.21	$	0.94
Diluted net income per share	$	0.21	$	0.92

Dilutive securities included in the calculation	979		1,425
Anti-dilutive securities excluded from the calculation	1,135		938

Geographic Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Revenue from External Customers by Geographic Areas

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



	Three Months Ended March 31,
	2019		2018
North America	$	57,514	$	56,958
Europe	55,485		51,934
Rest of the world	50,333		44,127
Total revenue	$	163,332	$	153,019

Long-lived Assets by Geographic Areas

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



	March 31,		December 31,
	2019		2018
North America	$	67,440	$	71,758
Europe	5,050		4,371
Rest of the world	63		59
Total long-lived tangible assets	$	72,553	$	76,188

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Supplemental Information for Leases

Additional information related to the Company’s leases as of and for the three months ended March 31, 2019, is as follows:



(in thousands, except lease term and discount rate)	March 31, 2019
Balance sheet information
ROU assets	$	46,313

Lease liabilities, current	$	9,060
Lease liabilities, non-current	48,591
Total lease liabilities	$	57,651

Supplemental data
Weighted average remaining lease term	9.0 years
Weighted average discount rate	6.2		%

Cash paid for amounts included in lease liabilities	$	2,433
ROU assets obtained in exchange for lease obligations	$	1,160

Schedule of Maturity of Operating Lease Liabilities

Maturities of lease liabilities as of March 31, 2019 were as follows:



(in thousands)	March 31, 2019
Year ending December 31,
2019 (remaining)	$	7,386
2020	8,834
2021	7,620
2022	6,957
2023	6,208
Thereafter	39,591
Total undiscounted lease payments	76,596
Less: imputed interest	(18,945		)
Total lease liabilities	$	57,651

Schedule of Future Minimum Lease Payments

Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in thousands):



Year Ending December 31,	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

Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets	$ 35,378			$ 34,841
Deferred revenue	137,368			139,604
Retained earnings	108,601			101,079
Bad debt expense	(632)	$ 238
Write-offs and other adjustments	(100)
Allowance for doubtful accounts	4,000			4,700
Chargeback and sales refund allowances	300			300
Deferred rent non-current balance				$ 11,300
Total lease liability	57,651		$ 58,000
Right-of-use assets	$ 46,313		$ 46,700
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets					$ 3,700
Deferred revenue					9,900
Retained earnings					$ 6,200

Summary of Operations and Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 240,141	$ 230,852
Restricted cash	2,613	2,613
Total cash, cash equivalents and restricted cash	$ 242,754	$ 233,465	$ 287,495	$ 256,041

Fair Value Measurements and Other Long-term Investments (Details) - Variable Interest Entity, Not Primary Beneficiary - Zcool Network Technology Limited - USD ($) $ in Millions	Jan. 04, 2018	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Variable interest investment		$ 15.0
Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment value	$ 15.0
Equity ownership percent	25.00%

Sale of Digital Asset Management Business (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Feb. 26, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received	$ 2,500		$ 42,338
Gain on Sale of Webdam	0		38,613
Webdam
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on Sale of Webdam			$ 38,600
Webdam \| Disposal Group, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price				$ 49,100
Transaction costs	4,600	$ 3,000
Cash received	44,300
Escrow deposit	$ 2,500

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Property and Equipment
Property and equipment	$ 183,920		$ 176,946
Less accumulated depreciation	(111,367)		(100,758)
Property and equipment, net	72,553		76,188
Depreciation expense	10,600	$ 9,500
Capitalized amount	6,500	9,600
Amortization expense	7,300	$ 5,400
Internal use software	47,400		48,200
Computer equipment and software
Property and Equipment
Property and equipment	155,112		148,104
Furniture and fixtures
Property and Equipment
Property and equipment	10,028		10,020
Leasehold improvements
Property and Equipment
Property and equipment	$ 18,780		$ 18,822

Goodwill and Intangible Assets - Changes in goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 88,576
Foreign currency translation adjustment	313
Balance at the end of the period	$ 88,889

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Amortizing intangible assets:
Gross Carrying Amount	$ 49,933	$ 48,843
Accumulated Amortization	(20,885)	(19,303)
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	17,649	17,360
Accumulated Amortization	$ (7,744)	(7,135)
Weighted Average Life	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,455	6,372
Accumulated Amortization	$ (3,980)	(3,719)
Weighted Average Life	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 4,838	4,780
Accumulated Amortization	$ (3,844)	(3,633)
Weighted Average Life	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 20,572	19,912
Accumulated Amortization	$ (5,150)	(4,653)
Weighted Average Life	10 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 259	259
Accumulated Amortization	$ (88)	(84)
Weighted Average Life	18 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	160
Accumulated Amortization	$ (79)	$ (79)
Weighted Average Life	13 years

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1.3	$ 1.5
Remainder of 2019	4.9
2020	5.9
2021	5.1
2022	3.4
2023	2.8
2024	2.7
Thereafter	$ 4.2

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Compensation	$ 13,176	$ 15,153
Non-income taxes	8,782	7,885
Royalty tax withholdings	5,681	5,618
Other expenses	26,248	22,729
Total accrued expenses	$ 53,887	$ 51,385

Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands		3 Months Ended
	Apr. 01, 2019	Mar. 31, 2019	Mar. 31, 2018	Feb. 28, 2017	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares withheld		$ 4,090,000	$ 4,033,000
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		141	169
Authorized purchase amount (up to)				$ 100,000,000	$ 100,000,000
Value remaining for repurchase		$ 100,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested and exercisable (in shares)		429
Options vested and exercisable, weighted average exercise price (in dollars per share)		$ 33.94
Unrecognized compensation charge		$ 5,900,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)		52
Nonvested shares outstanding (in shares)		788
Weighted average grant-date fair value (in usd per share)		$ 44.67
Unrecognized non-cash equity-based compensation charge		$ 24,000,000
Value of shares withheld		$ 4,100,000
Subsequent Event \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	365
Grant date fair value of RSUs	$ 17,000,000
Subsequent Event \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	202

Stockholders’ Equity and Equity-Based Compensation - Summary of non-cash equity-based compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 4,624	$ 5,606
Stock options
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	891	1,466
RSUs
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	3,733	4,140
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	85	174
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	582	427
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	1,175	1,477
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 2,782	$ 3,528

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 163,332	$ 153,019
Disposal group deferred revenue	67,300
E-commerce
Segment Reporting Information [Line Items]
Total revenue	98,113	89,735
Enterprise
Segment Reporting Information [Line Items]
Total revenue	65,219	60,573
Digital asset management
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 2,711

Other Expense / Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Nonoperating Income (Expense) [Abstract]
Foreign currency (loss) / gain	$ (161)	$ 319
Interest income	1,057	483
Total other income	$ 896	$ 802

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	16.40%	25.80%
Effective tax rate change	1.20%	(9.60%)
Cash paid / (received) for income taxes	$ 305	$ (1,835)
Net cash tax refund	$ 1,800

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 7,522	$ 32,581
Shares used to compute basic net income per share (in shares)	35,114	34,784
Dilutive potential common shares
Stock options (in shares)	105	116
Unvested restricted stock awards (in shares)	272	418
Shares used to compute diluted net income per share (in shares)	35,491	35,318
Basic net income per share (in dollars per share)	$ 0.21	$ 0.94
Diluted net income per share (in dollars per share)	$ 0.21	$ 0.92
Dilutive securities included in the calculation (in shares)	979	1,425
Anti-dilutive securities excluded from the calculation (in shares)	1,135	938

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Geographic revenue based on customer location and long-lived tangible assets
Revenues	$ 163,332	$ 153,019
Total long-lived tangible assets	72,553		$ 76,188
North America
Geographic revenue based on customer location and long-lived tangible assets
Revenues	57,514	$ 56,958
Total long-lived tangible assets	$ 67,440		$ 71,758
United States \| Total revenue \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	32.00%	34.00%
United States \| Total long-lived tangible assets \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	86.00%		88.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Revenues	$ 55,485	$ 51,934
Total long-lived tangible assets	5,050		$ 4,371
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Revenues	50,333	$ 44,127
Total long-lived tangible assets	$ 63		$ 59

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Total minimum lease payments			$ 78,560
Letter of credit as a security deposit for the leased facilities	$ 2,600
Rental expense inclusive of operating leases	2,700	$ 2,400
ESB Lease
Lessee, Lease, Description [Line Items]
Total minimum lease payments	$ 66,100

Leases - Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Balance sheet information
ROU assets	$ 46,313	$ 46,700
Lease liabilities, current	9,060
Lease liabilities, non-current	48,591
Total lease liabilities	$ 57,651	$ 58,000
Weighted average remaining lease term	9 years
Weighted average discount rate	6.20%
Cash paid for amounts included in lease liabilities	$ 2,433
ROU assets obtained in exchange for lease obligations	$ 1,160

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
2019 (remaining)	$ 7,386
2020	8,834
2021	7,620
2022	6,957
2023	6,208
Thereafter	39,591
Total undiscounted lease payments	76,596
Less: imputed interest	(18,945)
Total lease liabilities	$ 57,651	$ 58,000

Leases - Future Minimum Lease Payments - ASC 840 (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 9,913
2020	8,762
2021	7,493
2022	6,829
2023	6,082
Thereafter	39,481
Total minimum lease payments	$ 78,560

Commitments and Contingencies - Narrative (Details)	Mar. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Other obligations	$ 71,500,000
Maturity of unconditional purchase obligations
Remainder of 2019	20,500,000
2020	30,400,000
2021	16,700,000
2022	3,900,000
Indemnifications
Minimum aggregate obligation and liability	10,000
Material indemnification obligation	$ 0