0001549346-21-000012 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2020	Feb. 05, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-35669
Entity Registrant Name	Shutterstock, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0812659
Entity Address, Address Line One	350 Fifth Avenue, 21st Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10118
City Area Code	646
Local Phone Number	710-3417
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	SSTK
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 683,773,306
Entity Common Stock, Shares Outstanding		36,256,136
Entity Central Index Key	0001549346
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Documents Incorporated by Reference	The information required by Part III of this Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders to be held in 2021, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. Except as expressly incorporated by reference, the registrant’s proxy statement shall not be deemed to be part of this report.

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 428,574	$ 303,261
Accounts receivable, net of allowance of $4,942 and $3,579	43,846	47,016
Prepaid expenses and other current assets	16,650	26,703
Total current assets	489,070	376,980
Property and equipment, net	50,906	58,834
Right-of-use assets	39,552	45,453
Intangible assets, net	25,765	26,669
Goodwill	89,413	88,974
Deferred tax assets, net	13,566	14,387
Other assets	21,372	19,215
Total assets	729,644	630,512
Current liabilities:
Accounts payable	2,442	6,104
Accrued expenses	67,909	53,864
Contributor royalties payable	26,336	25,193
Deferred revenue	149,843	141,922
Other current liabilities	10,399	18,811
Total current liabilities	256,929	245,894
Lease liabilities	41,620	47,313
Other non-current liabilities	9,170	9,160
Total liabilities	307,719	302,367
Commitments and contingencies (Note 16)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 38,803 and 38,055 shares issued and 36,245 and 35,497 shares outstanding as of December 31, 2020 and December 31, 2019, respectively	389	381
Additional paid-in capital	360,939	312,824
Treasury stock, at cost; 2,558 shares as of December 31, 2020 and December 31, 2019	(100,027)	(100,027)
Accumulated other comprehensive loss	(7,681)	(6,220)
Retained earnings	168,305	121,187
Total stockholders’ equity	421,925	328,145
Total liabilities and stockholders’ equity	$ 729,644	$ 630,512

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,942	$ 3,579
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)	38,803,000	38,055,000
Common stock, shares outstanding (in shares)	36,245,000	35,497,000
Treasury stock, shares (in shares)	2,558,000	2,558,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue	$ 666,686	$ 650,523	$ 623,250
Operating expenses:
Cost of revenue	259,573	278,176	267,671
Sales and marketing	159,241	181,730	166,448
Product development	46,038	57,216	58,897
General and administrative	116,568	113,246	97,782
Total operating expenses	581,420	630,368	590,798
Income from operations	85,266	20,155	32,452
Gain on Sale of Webdam	0	0	38,613
Other income / (expense), net	4,257	4,761	(4,952)
Income before income taxes	89,523	24,916	66,113
Provision for income taxes	17,757	4,808	11,426
Net income	$ 71,766	$ 20,108	$ 54,687
Earnings per share:
Basic (in dollars per share)	$ 2.00	$ 0.57	$ 1.57
Diluted (in dollars per share)	$ 1.97	$ 0.57	$ 1.54
Weighted average shares outstanding:
Basic (in shares)	35,844	35,285	34,935
Diluted (in shares)	36,369	35,581	35,420

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 71,766	$ 20,108	$ 54,687
Foreign currency translation (loss) / gain	(1,461)	251	(2,914)
Other comprehensive (loss) / income	(1,461)	251	(2,914)
Comprehensive income	$ 70,305	$ 20,359	$ 51,773

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance
Balance (in shares) at Dec. 31, 2017				37,270	37,270	2,558	2,558
Balance at Dec. 31, 2017	$ 314,585	$ 6,178	$ 320,763	$ 373	$ 373	$ (100,027)	$ (100,027)	$ 272,657	$ 0	$ 272,657	$ (3,557)	$ (3,557)	$ 145,139	$ 6,178	$ 151,317
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	23,869							23,869
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				498
Issuance of common stock in connection with employee stock option exercises and RSU vesting	2,455			$ 5				2,450
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(150)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(7,268)			$ (2)				(7,266)
Payment of Dividend	(104,925)												(104,925)
Other comprehensive income (loss)	(2,914)										(2,914)
Net income	54,687												54,687
Balance (in shares) at Dec. 31, 2018				37,618		2,558
Balance at Dec. 31, 2018	286,667			$ 376		$ (100,027)		291,710			(6,471)		101,079
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	22,815							22,815
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				601
Issuance of common stock in connection with employee stock option exercises and RSU vesting	5,365			$ 6				5,359
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(164)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(7,061)			$ (1)				(7,060)
Other comprehensive income (loss)	251										251
Net income	20,108												20,108
Balance (in shares) at Dec. 31, 2019				38,055	38,055	2,558	2,558
Balance at Dec. 31, 2019	328,145	$ (247)	$ 327,898	$ 381	$ 381	$ (100,027)	$ (100,027)	312,824	$ 0	$ 312,824	(6,220)	$ (6,220)	121,187	$ (247)	$ 120,940
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	28,309							28,309
Issuance of common stock, net of issuance costs (in shares)				516
Issuance of common stock, net of issuance costs	23,153			$ 5				23,148
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				351
Issuance of common stock in connection with employee stock option exercises and RSU vesting	1,171			$ 4				1,167
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(119)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(4,510)			$ (1)				(4,509)
Payment of Dividend	(24,401)												(24,401)
Other comprehensive income (loss)	(1,461)										(1,461)
Net income	71,766												71,766
Balance (in shares) at Dec. 31, 2020				38,803		2,558
Balance at Dec. 31, 2020	$ 421,925			$ 389		$ (100,027)		$ 360,939			$ (7,681)		$ 168,305

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 71,766	$ 20,108	$ 54,687
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	41,359	49,915	45,652
Deferred taxes	1,019	(2,025)	(6,270)
Non-cash equity-based compensation	28,309	22,815	23,869
Gain on Sale of Webdam	0	0	(38,613)
Loss on impairment of long-term investment	0	0	5,881
Bad debt expense	2,580	84	1,175
Changes in operating assets and liabilities:
Accounts receivable	513	(6,169)	2,641
Prepaid expenses and other current and non-current assets	9,775	4,246	113
Accounts payable and other current and non-current liabilities	8,587	8,360	6,388
Long-term incentives related to acquisitions	(7,759)	0	0
Contributor royalties payable	1,075	2,168	3,021
Deferred revenue	7,848	3,144	3,658
Net cash provided by operating activities	165,072	102,646	102,202
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(25,630)	(26,081)	(34,890)
Business and asset acquisitions	(1,850)	0	(845)
Proceeds from Sale of Webdam, net	0	2,500	41,804
Long term investments	(5,000)	0	(15,000)
Acquisition of content	(2,970)	(3,344)	(3,838)
Security deposit release / (payment)	140	(309)	(58)
Net cash used in investing activities	(35,310)	(27,234)	(12,827)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of common stock	23,153	0	0
Proceeds from exercise of stock options	1,171	5,365	2,454
Cash paid related to settlement of employee taxes related to RSU vesting	(4,510)	(7,061)	(7,268)
Payment of cash dividends	(24,401)	0	(104,925)
Net cash used in financing activities	(4,587)	(1,696)	(109,739)
Effect of foreign exchange rate changes on cash	(2,475)	(1,307)	(2,212)
Net increase / (decrease) in cash, cash equivalents and restricted cash	122,700	72,409	(22,576)
Cash, cash equivalents and restricted cash, beginning of period	305,874	233,465	256,041
Cash, cash equivalents and restricted cash, end of period	428,574	305,874	233,465
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 8,751	$ 1,902	$ 580

Summary of Operations and Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Operations and Significant Accounting Policies

Description of Business

Shutterstock (the “Company” or “Shutterstock”) is a leading creative platform offering full-service solutions, high-quality content, and tools for brands, businesses and media companies. The Company’s platform brings together users and contributors of content by providing readily-searchable content that our customers pay to license and by compensating contributors as their content is licensed.

The content licensed by the Company’s customers includes:

•Images - consisting of photographs, vectors and illustrations. Images are typically used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and other similar uses.

•Footage - consisting of video clips, premium footage filmed by industry experts and cinema grade video effects, available in HD and 4K formats. Footage is often integrated into websites, social media, marketing campaigns and cinematic productions.

•Music - consisting of high-quality music tracks and sound effects, which are often used to complement images and footage.

•3D Models - following the Company’s acquisition of TurboSquid, Inc. on February 1, 2021, Shutterstock now offer 3D models, used in industries such as advertising, media & video production, gaming, retail, education, design and architecture. See Note 17 Subsequent Events.

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”).

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 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 amount 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 used to calculate the lease liability.

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, 2020 and 2019, 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, 2020, 2019 or 2018.

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2020 and 2019 (in thousands):


	As of December 31, 2020		As of December 31, 2019
Cash and cash equivalents	$	428,574	$	303,261
Restricted cash	—		2,613
Total cash, cash equivalents and restricted cash	$	428,574	$	305,874

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

As of March 31, 2020, the Company was no longer required to provide cash collateral for its letter of credit for its New York City headquarters, and, accordingly, these funds are no longer restricted. 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 (i) the aging of its accounts receivable considering historical receivables loss rates, (ii) on a customer-by-customer basis, where appropriate, and (iii) the economic environments in which the Company operates.

Historically, the Company used an incurred loss model to calculate its allowance for doubtful accounts. Upon the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”) on January 1, 2020, the Company shifted to a current expected credit loss model.

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


	Year Ended December 31,
	2020		2019		2018
Balance, beginning of period	$	3,579	$	4,697	$	4,088
Add: bad debt expense	2,580		84		1,175
Less: write-offs, net of recoveries and other adjustments1	(1,217)		(1,202)		(566)
Balance, end of period	$	4,942	$	3,579	$	4,697

1 - Other adjustments includes the adoption of ASU 2016-13, which increased the allowance for doubtful accounts by $0.3M.

Chargeback and Sales Refund Allowance

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 December 31, 2020 and December 31, 2019, the Company’s combined allowance for chargebacks and sales refunds was $0.5 million, and $0.3 million, respectively, which is included as a component of other current liabilities on the Consolidated Balance Sheets.

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 2020, 2019 or 2018.

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.

In 2020, the Company’s goodwill balance was allocated to a single reporting unit. Since inception through December 31, 2020, the Company has not had any impairment of goodwill.

Revenue Recognition

The majority of the Company’s revenue is earned from the license of content. Content licenses are generally purchased on a monthly or annual 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 generally occurs when (i) content is downloaded by a customer or (ii) hosted software services are provisioned and available to a customer. For content licenses, the Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded, at which time the license is provided. In addition, the Company estimates expected unused licenses for subscription-based products and recognizes the revenue associated with the unused licenses as digital content is downloaded and licenses are obtained for such content by the customer during 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 with a credit card at the time of the transaction. 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 Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“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 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.

Cost of Revenue

The Company’s cost of revenue includes royalties paid to contributors, credit card processing fees, content reviewer costs, customer service expenses, infrastructure and hosting costs, 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 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, 2020, 2019 and 2018, the Company deferred $3.6 million, $8.4 million and $6.2 million, respectively, in royalty advances and amortized $5.5 million, $9.2 million and $6.1 million, respectively, in royalty advance expense which is included in cost of revenue. As of December 31, 2020, the balance of deferred contributor royalties was not significant. As of December 31, 2019, the Company has deferred contributor royalties of $1.9 million, 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 on the Consolidated Statements of Operations. 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.

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, software and other IT equipment costs as well as allocated facility costs and related overhead.

Advertising Costs

The Company expenses the cost of advertising and promoting its products as incurred. Such costs totaled $81.2 million, $102.3 million and $91.5 million for the years ended December 31, 2020, 2019 and 2018, respectively, which are included in sales and marketing expense in the Consolidated Statements of Operations.

Leasing

The Company records rent expense on a straight-line basis over the term of the related lease. In accordance with FASB ASU 2016-02, Leases (Topic 842), as amended (“ASC 842”), which the Company adopted effective January 1, 2019, 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) on 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.

Equity-Based Compensation

The Company grants Restricted Stock Units, Performance-based Restricted Stock Units (“PRSUs” and, collectively with Restricted Stock Units, “RSUs”) and Stock Options to directors and officers and certain other employees of the Company. All awards are granted pursuant to the 2012 Omnibus Equity Incentive Plan (the “2012 Plan”), which is discussed further in Note 9, 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 over the requisite service period regardless of the achievement of the market condition. Compensation expense related to awards with a performance condition is recognized over the requisite service period based on the expected levels of achievement. To the extent that the expected levels of achievement change, stock-based compensation expense is adjusted and recorded in the Consolidated Statements of Operations and the remaining unrecognized stock-based compensation is recognized over the remaining requisite service period.

The Company uses the closing price of the Company’s common stock on the date of grant to determine the fair value of RSUs. The Company uses the Black Scholes option pricing model, to determine the fair value of stock options on the date of grant. The Monte Carlo simulation model is used if the award has a market condition.

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 determines the dividend yield based on management’s expectations of future dividends. The Company has historically used an expected dividend yield of zero for options granted.

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 are subject to a time-based vesting requirement and certain award grants may also include market based or performance based vesting conditions. While each PRSU corresponds to one target share of the Company’s stock, the number of shares that may eventually vest will be between 0% and 150% of a recipient’s target shares, depending on both the recipient’s continued service with the Company and the extent to which performance goals will have been achieved. Stock option awards granted under the 2012 Plan vest over three or four years while the majority of the restricted stock units granted under the 2012 Plan vest over three years.

Employee Benefit Plans

The Company offers a 401(k) defined contribution plan and provides for discretionary employer matching contributions. All matching contributions are recognized as an expense in the Statement of Operations, as incurred. The Company recorded employer matching contributions of $3.8 million, $3.7 million and $3.2 million for the years ended December 31, 2020, 2019 and 2018, 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.

On a quarterly basis, the Company assesses the realizability of deferred tax assets, based on the available evidence including a history of taxable income, estimates of future taxable income and planning strategies and a valuation allowance is recorded to the extent that it is not more likely than not that the deferred tax assets will be realized. 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 and profits of its foreign subsidiaries. With the enactment of 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 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 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 basic weighted average number of common shares outstanding.

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, 2020, the Company has identified one operating segment, which has also been determined to be the Company’s primary reportable business segment. Prior to the Sale of Webdam on February 26, 2018, the Company had also identified a non-reportable segment which was classified in the Other Category, included the Company’s digital asset management operating segment and failed to meet the quantitative or qualitative thresholds for separate segment reporting. 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.

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 were gains of $2.4 million and $0.2 million in 2020 and 2019, respectively, and a loss of $2.2 million in 2018. 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 June 2016, the FASB issued ASU 2016-13, which as amended, 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 was required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company adopted ASU 2016-13, as amended, effective January 1, 2020 using the modified retrospective method and recorded a cumulative-effect adjustment of $0.2 million, net of tax, in retained earnings as of January 1, 2020.

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 was required for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-13, effective January 1, 2020. The impact of adoption of this standard on the consolidated financial statements, including accounting policies, processes and systems, was not material.

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 was 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 adopted ASU 2018-15 on a prospective basis, effective January 1, 2020. The adoption of this standard is not expected to have a significant impact on our consolidated financial statements.

Recently Issued Accounting Standard UpdatesIn December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU-2019-12”). ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Adoption of ASU 2019-12 is not expected to have a material effect on the Company’s consolidated financial statements. The Company is finalizing its evaluation of the impact of this new standard on the consolidated financial statements.

Fair Value Measurements and Other Long-term Investments	12 Months Ended
Fair Value Measurements and Other Long-term Investments	Dec. 31, 2020
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 December 31, 2020 and 2019, except as noted below. 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. As of December 31, 2020, the Company had a balance of $250.0 million in money market accounts. The Company did not have any money market accounts as of December 31, 2019. Other Fair Value Measurements The carrying amounts of cash, accounts receivable, restricted cash, accounts payable and accrued expenses 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. Long-Term Investments As of December 31, 2020 and 2019, the Company’s Long-Term Investments totaled $20.0 million and $15.0 million, respectively, which is reported within other assets on the Consolidated Balance Sheets. The Company uses the measurement alternative for equity investments with no readily determinable fair value and are reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments. On a quarterly basis, the Company evaluates the carrying value of its Long-Term Investments for impairment, which includes an assessment of revenue growth, earnings performance, working capital and the general market conditions. As of December 31, 2020, no adjustments to the carrying values of the Company’s Long-Term Investments were identified as a result of this assessment. Changes in performance negatively impacting operating results and cash flows of these investments could result in the Company recording an impairment charge in future periods. Investment in ZCool Technologies Limited (“ZCool”) In 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 and its affiliates have 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 are accounted for using the measurement alternative for equity investments with no readily determinable fair value. Other Equity Investments In 2020, the Company invested $5.0 million in preferred shares of an entity with a creative production and analytics platform. These preferred shares do not have a readily determinable fair value, and give the Company less than a 2% fully diluted ownership interest. Long-term Lending Facility and Note Receivable In 2016, as amended in 2017, the Company entered into a multi-part investment with SilverHub Media Limited (“SHM”), an unrelated third-party contributor, which resulted in the Company investing $5.9 million into SHM. During 2018, the Company determined that its investment in SHM experienced an other-than-temporary impairment and therefore, the Company recorded a $5.9 million impairment charge in order to reduce the fair value of the Company’s investment in SHM to zero. This charge was recorded in Other income / (expense), net in the Consolidated Statements of Operations.

- 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 Webdam	12 Months Ended
Sale of Webdam	Dec. 31, 2020
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, net of $4.6 million transaction costs paid, was $44.3 million, inclusive of $2.5 million received during the year ended December 31, 2019, from the release of escrowed funds. During 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

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

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


	December 31,
	2020		2019
Computer equipment and software	$	193,141	$	165,950
Furniture and fixtures	10,235		10,199
Leasehold improvements	19,382		19,203
Property and equipment	222,758		195,352
Less: accumulated depreciation	(171,852)		(136,518)
Property and equipment, net	$	50,906	$	58,834

Depreciation and amortization expense related to property and equipment amounted to $35.6 million, $42.9 million and $40.1 million, for the years ended December 31, 2020, 2019 and 2018, respectively. Of these amounts, $31.6 million, $38.1 million and $34.0 million are included in cost of revenue for the years ended December 31, 2020, 2019 and 2018, respectively, and $4.0 million, $4.8 million and $6.1 million are included in general and administrative expense for the years ended December 31, 2020, 2019 and 2018, 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, 2020, 2019 and 2018, respectively.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $25.1 million, $23.6 million and $27.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software. During 2020, 2019 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 $28.9 million, $30.3 million and $24.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue in the Consolidated Statement of Operations.

As of December 31, 2020 and 2019, the Company had capitalized internal-use software of $38.0 million and $41.8 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The following table summarizes the changes in the Company’s goodwill balance for the year ended December 31, 2020 (in thousands):


	Goodwill


Balance as of December 31, 2019	$	88,974

Foreign currency translation adjustment	439

Balance as of December 31, 2020	$	89,413

In 2020, the Company’s goodwill balance was allocated to a single reporting unit. The Company performed its annual goodwill assessment as of October 1, 2020 and concluded that the fair value of its reporting unit was greater than its carrying amount, and therefore, no adjustment to the carrying value of goodwill was necessary. The Company utilized a qualitative assessment of its content business reporting unit to determine whether a quantitative assessment was necessary and determined there were no indicators of potential impairment.

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, 2020 and 2019 (in thousands):


	As of December 31, 2020							As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	18,132	$	(11,032)	$	7,100	9	$	17,729	$	(9,294)	$	8,435
Trade name	6,669		(6,328)		341		7	6,517		(5,941)		576
Developed technology	6,930		(5,039)		1,891		4	4,841		(4,226)		615
Contributor content	26,669		(10,378)		16,291		9	23,510		(6,626)		16,884
Patents	259		(117)		142		18	259		(100)		159

Total	$	58,659	$	(32,894)	$	25,765		$	52,856	$	(26,187)	$	26,669

Amortization expense related to the intangible assets was $5.8 million, $7.0 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Of these amounts, $3.4 million, $2.3 million and $1.7 million are included in cost of revenue for the years ended December 31, 2020, 2019 and 2018, respectively, and $2.4 million, $4.7 million and $3.8 million are included in general and administrative expense for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company 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: $5.7 million in 2021, $5.4 million in 2022, $5.1 million in 2023, $3.6 million in 2024, $2.1 million in 2025 and $3.9 million thereafter.

Accrued Expenses

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	December 31,
	2020		2019
Compensation	$	31,499	$	20,776
Non-income taxes	17,164		15,332


Website hosting and marketing fees	9,991		8,657


Other expenses	9,255		9,099
Total accrued expenses	$	67,909	$	53,864

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity 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, 2020, 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, 2020, 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, 2020, there is $100 million of remaining authorization for purchases under the share repurchase program. During 2020, the Company did not repurchase any shares 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. Stock Offering On August 14, 2020, the Company completed an offering (the “Stock Offering”), whereby 2,580,000 shares of its common stock were sold to the public at a price to the public of $48.50 per share. The Company sold 516,000 shares of common stock in the Stock Offering and the Company’s Founder and Executive Chairman of the Board sold 2,064,000 shares of common stock in the Stock Offering. The Company received net proceeds from the shares it sold, after deducting underwriting discounts and commissions and offering expenses payable by the Company, of approximately $23.2 million. The Company did not receive any proceeds from the shares sold by the Company’s Founder and Executive Chairman of the Board. Dividends On February 11, 2020, the Board of Directors approved the initiation of a quarterly cash dividend. The Company declared and paid cash dividends totaling $0.68 per share of common stock, or $24.4 million, during the year ended December 31, 2020. On January 12, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share of outstanding common stock payable on March 18, 2021 to stockholders of record at the close of business on March 4, 2021. Future declaration of dividends are subject to the final determination of the Board of Directors, and will depend on, among other things, the Company’s future financial condition, results of operations, capital requirements, capital expenditure requirements, contractual restrictions, anticipated cash needs, business prospects, provisions of applicable law and other factors the Board of Directors may deem relevant. 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”).

Revenue

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

The Company distributes its 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: The Company also has a base of customers with unique content, licensing and workflow needs. These customers 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 content offerings, the Company has historically generated revenue through other channels:

Other: The Company’s Other sales channel previously included revenue from Webdam’s digital asset management offerings which provided 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 following table summarizes the Company’s revenue by distribution channel for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
E-commerce	$	412,521	$	392,241	$	365,730
Enterprise	254,165		258,282		254,809
Other (1)	—		—		2,711
Total Revenues	$	666,686	$	650,523	$	623,250

(1)As previously discussed in Note 3, 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 December 31, 2020 deferred revenue balance will be earned as content is downloaded or upon the expiration of subscription-based products, and nearly all is expected to be earned within the next twelve months. $136.8 million of total revenue recognized for the year ended December 31, 2020 was reflected in deferred revenue as of January 1, 2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 606
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Equity-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

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 line item included in the Company’s Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
Cost of revenue	$	430	$	220	$	523
Sales and marketing	1,887		1,934		2,218
Product development	4,494		4,737		5,815
General and administrative	21,498		15,924		15,313
Total	$	28,309	$	22,815	$	23,869

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, 2020, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
Stock options	$	2,088	$	5,721	$	6,009
RSUs	26,221		17,094		17,860



Total	$	28,309	$	22,815	$	23,869

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 1,065,000 and 1,052,000 shares on January 1, 2020 and 2019, 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, 2019	989,485	$	57.45
Options granted	53,022	42.96

Options exercised	(33,755)	34.69
Options canceled or expired	(31,719)	43.70
Options outstanding at December 31, 2020	977,033	$	57.90

Options exercisable at December 31, 2020	334,199	$	34.06

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,
	2020		2019
Stock options outstanding	$	16,100	$	4,000
Stock options exercisable	$	12,600	$	3,000
Stock options vested and expected to vest	$	16,100	$	4,000

The intrinsic value of stock options exercised for the years ended December 31, 2020, 2019 and 2018 was approximately $0.5 million, $1.1 million and $2.0 million, respectively.

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020			2019			2018
Expected term (in years)	6.0			6.3			6.3
Volatility	43.8		%	45.4		%	47.8		%
Risk-free interest rate	1.73		%	1.83		%	2.63		%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	18.86		$	18.05		$	23.64

On April 24, 2014, the Company granted 500,000 stock options with a market-based condition to its Founder and Executive Chairman. The stock options have an exercise price of $80.94 per share and will not vest or become exercisable unless (i) the Founder and Executive Chairman 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 Founder and Executive Chairman 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, 2020, the total unrecognized compensation charge related to 2012 Plan non-vested options is approximately $1.6 million, which is expected to be recognized through fiscal year 2023.

Restricted Stock Units Awards (including PRSUs)

The following table presents a summary of the Company’s RSUs activity for the year ended December 31, 2020:


	Plan RSUs	Weighted Average Fair Value
Non-vested balance at December 31, 2019	1,113,679	$	45.03
Units granted	900,422	36.42

Units vested	(317,240)	43.84
Units canceled or forfeited	(288,838)	40.50
Non-vested balance at December 31, 2020	1,408,023	$	40.72

Non-vested and deferred balance at December 31, 2020	1,452,245	$	40.94

On April 24, 2014, the Company granted 100,000 restricted stock units with a market-based condition to its Founder and Executive Chairman. 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, 2020, the total unrecognized compensation charge related to the restricted stock units is approximately $30.0 million, which is expected to be recognized through fiscal 2023.

Other Income / (Expense), net

12 Months Ended

Dec. 31, 2020

Other Nonoperating Income (Expense) [Abstract]

Other Income / (Expense), net

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


	Year Ended December 31,
	2020		2019		2018
Foreign currency gain / (loss)	$	3,067	$	540	$	(1,807)

Impairment of a long-term investment asset	—		—		(5,881)
Interest income	1,190		4,221		2,736
Other income / (expense), net	$	4,257	$	4,761	$	(4,952)

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

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


	Year Ended December 31,
	2020		2019		2018
Domestic	$	83,255	$	25,549	$	68,596
Foreign	6,268		(633)		(2,483)
Income before income taxes	$	89,523	$	24,916	$	66,113

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


	Year Ended December 31,
	2020		2019		2018
Current provision:
Federal	$	11,287	$	2,824	$	7,670
State and local	2,294		1,127		4,800
Foreign	3,158		2,882		5,226
Deferred provision (benefit):
Federal	(1,147)		(2,337)		(2,901)
State and local	149		(52)		(164)
Foreign	2,016		364		(3,205)
Provision for income taxes	$	17,757	$	4,808	$	11,426

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


	Year Ended December 31,
	2020		2019		2018
U.S. income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
Tax credits	(1.7)		(12.6)		(5.4)
State and local taxes, net of federal benefit	1.5		1.7		1.9
Equity-based compensation	2.4		2.0		(0.4)
Foreign rate differential	0.5		0.3		0.5

Foreign-derived intangible income deduction	(6.0)		(12.0)		(3.7)
Uncertain tax positions	1.0		12.4		3.6
Valuation allowance	0.9		3.9		—
Transition tax related to TCJA	—		—		(0.3)


Non-deductible—other	0.2		2.6		0.1
Total provision for income taxes	19.8	%	19.3	%	17.3	%

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,
	2020		2019
Deferred tax assets:
Non-cash equity-based compensation	$	11,508	$	9,806
Intangible amortization	850		2,252
Non-income tax accruals	2,499		2,647
Lease liabilities	10,995		12,645

Other liabilities	5,804		6,508
Gross deferred tax assets	31,656		33,858
Valuation allowance	(1,861)		(965)
Net deferred tax assets	29,795		32,893
Deferred tax liabilities:
Right-of-use assets	(8,557)		(10,125)
Depreciation and amortization	(7,672)		(8,381)
Net deferred tax assets	$	13,566	$	14,387

The non-cash equity-based compensation for the Company includes a deferred tax asset of $6.2 million associated with the performance-based grant of stock options and restricted stock units to the Company’s Founder and Executive Chairman. In addition, the $1.9 million valuation allowance relates to certain foreign net operating loss carryforwards, where the Company has determined that there is sufficient uncertainty regarding the future realization of these net operating losses.

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


	Year Ended December 31,
	2020		2019		2018
Balance of unrecognized tax benefits at January 1	$	8,949	$	5,846	$	2,966
Gross additions for tax positions for prior years	—		173		332
Gross additions for tax positions for current year	724		3,842		3,476
Gross reductions for tax positions of prior years	(81)		—		—
Gross expirations	—		(912)		(928)

Balance of unrecognized tax benefits at December 31	$	9,592	$	8,949	$	5,846

The total amount of unrecognized tax benefits as of December 31, 2020, was $8.7 million, which, if recognized, would impact the Company’s effective tax rate in future periods. Unrecognized tax benefits is included within prepaid expenses and other current assets and other non-current liabilities on the Consolidated Balance Sheets.

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 U.S. Internal Revenue Service for tax year 2017 and 2018, Wisconsin for years 2015 - 2018 and New York State for years 2016 - 2018. The Company is no longer subject to U.S. federal tax examinations for years before 2016, or state and local tax examinations by tax authorities for years before 2015. The Company has determined that it is reasonably possible that there will be a reversal of unrecognized tax benefits by as much as $1.6 million in the next fiscal year due to the expected resolution of prior year tax matters.

As of December 31, 2020, the Company has $16.5 million in tax net operating loss carryforwards in foreign tax jurisdictions which are available to reduce future income taxes and the majority of this amount relates to jurisdictions with an indefinite carryforward period.

As of December 31, 2020, the Company had approximately $12.1 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 not material.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Income Per Share

12 Months Ended

Dec. 31, 2020

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 years 2020, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
Net income	$	71,766	$	20,108	$	54,687
Shares used to compute basic net income per share	35,844		35,285		34,935
Dilutive potential common shares:
Stock options and employee stock purchase plan shares	99		83		117
Unvested restricted stock awards	426		213		368
Shares used to compute diluted net income per share	36,369		35,581		35,420
Basic net income per share	$	2.00	$	0.57	$	1.57
Diluted net income per share	$	1.97	$	0.57	$	1.54

Potentially dilutive shares included in the calculation	1,286		917		1,285
Anti-dilutive shares excluded from the calculation	931		1,202		1,020

Segment and Geographic Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Financial Information

As of December 31, 2020, 2019 and 2018, the Company identified one operating and reportable segment for purposes of allocating resources and evaluating financial performance. Prior to the Sale of Webdam on February 26, 2018, the Company also identified a non-reportable segment which was classified in the Other Category, included the Company’s digital asset management operating segment and failed to meet the quantitative or qualitative thresholds for separate segment reporting.

During the year ended December 31, 2018, which includes the period from January 1 through February 26, 2018, prior to the Sale of Webdam, Revenue, Operating Expenses and Income from Operations related to the Company’s reportable content segment were $620.5 million, $491.0 million and $129.6 million, respectively. Revenue, Operating Expense and Loss from Operations related to Other and Corporate category were $2.7 million, $99.8 million and $97.1 million, respectively. Other and corporate operating expenses include unallocated corporate expenses of $97.8 million for the year ended December 31, 2018 and 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,
	2020		2019		2018
North America	$	236,599	$	228,185	$	230,890
Europe	220,665		217,397		207,634
Rest of the world	209,422		204,941		184,726
Total revenue	$	666,686	$	650,523	$	623,250

Included in North America is the United States which comprises approximately 33% of total revenue for the year ended December 31, 2020, and 32% of total revenue for the years ended December 31, 2019 and 2018. Included in Europe is the United Kingdom which accounts for approximately 8% of total revenue for the year ended December 31, 2020. 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,
	2020		2019
North America	$	43,451	$	51,954
Europe	7,192		6,541
Rest of world	263		339
Total long-lived tangible assets	$	50,906	$	58,834

Included in North America is the United States, which comprises 75% and 79% of total long-lived tangible assets as of December 31, 2020 and 2019, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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+ Details

Leasing

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leasing

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 $10.5 million, $11.1 million and $9.2 million for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company made cash payments for operating leases of $10.0 million for the year ended December 31, 2020, which were included in cash flows from operating activities within the Consolidated Statements of Cash Flows. In addition, for the year ended December 31, 2020, the Company also recorded right-of-use assets of $0.2 million obtained in exchange for lease obligations. The Company’s operating leases have a weighted average remaining lease term of 7.5 years and a weighted average discount rate of 6.2%.

Balance sheet information for the Company’s leases as of December 31, 2020, is as follows:


	December 31,
(in thousands)	2020		2019

Right-of-use assets	$	39,552	$	45,453

Lease liabilities, current	$	9,097	$	9,573
Lease liabilities, non-current	41,620		47,313
Total lease liabilities	$	50,717	$	56,886

Lease Commitments

Future undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its lease liabilities at December 31, 2020 are as follows (in thousands):


Reconciliation of future undiscounted lease payments to lease liabilities	Lease Commitments
Year ending December 31,

2020	9,334
2021	8,131
2022	6,594
2023	6,879
2024	7,728
Thereafter	25,651
Total undiscounted lease payments	64,317
Less: imputed interest	(13,600)
Total lease liabilities	$	50,717

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 $56.3 million. The Company is also party to a letter of credit as a security deposit for this leased facility, which was reduced from $2.6 million to $1.7 million in February 2020. As of March 31, 2020, the Company is no longer required to provide cash collateral for its letter of credit, and, accordingly, these funds are no longer restricted.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Other Non-Lease Obligations

As of December 31, 2020, the Company’s other unconditional cash obligations, consisting 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, are as follows:


Year Ending December 31,	Other Obligations
2021	$	26,524
2022	7,988
2023	4,125
2024	—
2025	—
Thereafter	—
Total non-lease unconditional obligations	$	38,637

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, 2020, 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, 2020

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, 2020. 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, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019

	(in thousands, except per share data)
Revenue	$	180,944	$	165,227	$	159,230	$	161,285	$	166,371	$	159,079	$	161,741	$	163,332
Operating expenses(1):
Cost of revenue	66,308		60,331		63,811		69,123		71,797		68,635		68,526		69,218
Sales & marketing	44,369		36,655		35,557		42,660		47,182		45,614		44,488		44,446
Product development	9,867		10,617		12,485		13,069		15,103		13,533		13,594		14,986
General and administrative	32,807		28,277		24,832		30,652		26,486		28,114		32,063		26,583
Total operating expenses	153,351		135,880		136,685		155,504		160,568		155,896		158,671		155,233
Income from operations	27,593		29,347		22,545		5,781		5,803		3,183		3,070		8,099

Other income / (expense), net(2)	4,763		(1,168)		149		513		2,816		465		584		896
Income before income taxes	32,356		28,179		22,694		6,294		8,619		3,648		3,654		8,995
Provision / (Benefit) for income tax	6,477		5,597		3,707		1,976		4,266		(1,286)		355		1,473
Net income	$	25,879	$	22,582	$	18,987	$	4,318	$	4,353	$	4,934	$	3,299	$	7,522
Net income per common share:
Basic	$	0.71	$	0.63	$	0.53	$	0.12	$	0.12	$	0.14	$	0.09	$	0.21
Diluted	$	0.70	$	0.62	$	0.53	$	0.12	$	0.12	$	0.14	$	0.09	$	0.21
Weighted average common shares outstanding:
Basic	36,234		35,962		35,652		35,521		35,478		35,309		35,232		35,114
Diluted	37,183		36,494		35,906		35,882		35,786		35,541		35,504		35,491

____________________________________________________________________________

(1)Includes non-cash equity-based compensation of $28,309 and $22,815 for the years ended December 31, 2020 and 2019, respectively.

(2)Includes 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.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn February 1, 2021, the Company completed its acquisition of all of the outstanding shares of TurboSquid, Inc. (“TurboSquid”), a company that offers a marketplace for 3D models, for approximately $75 million, subject to customary working capital and other adjustments, paid from existing cash on hand. The purchase accounting is not complete due to the timing of the availability of information. The Company is currently evaluating the fair values of the consideration transferred, assets acquired and liabilities assumed and expects to complete its initial purchase price allocation in the first quarter of 2021.

Summary of Operations and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019 (in thousands):


	As of December 31, 2020		As of December 31, 2019
Cash and cash equivalents	$	428,574	$	303,261
Restricted cash	—		2,613
Total cash, cash equivalents and restricted cash	$	428,574	$	305,874

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

Fair Value Measurements

Accounts Receivable and Allowance for Doubtful Accounts

Chargeback and Sales Refund Allowance, Revenue Recognition and Cost of Revenue

Chargeback and Sales Refund AllowanceThe 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.

Revenue Recognition

Cost of Revenue

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

Capitalized Internal Use SoftwareThe 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

Impairment of Long-Lived AssetsLong-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.

Goodwill and Intangible Assets

In 2020, the Company’s goodwill balance was allocated to a single reporting unit.

Contributor Royalties and Internal Sales Commissions

Product Development

Product DevelopmentThe 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, software and other IT equipment costs as well as allocated facility costs and related overhead.

Advertising Costs

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

Leasing

Equity-Based Compensation

•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.

Employee Benefit Plans

Employee Benefit PlansThe Company offers a 401(k) defined contribution plan and provides for discretionary employer matching contributions. All matching contributions are recognized as an expense in the Statement of Operations, as incurred.

Income Taxes and Other Non-income Taxes

Income Taxes

Other Non-income Taxes

Treasury Stock

Net Income Per Share

Reportable Segments

Reportable SegmentsFor the year ended December 31, 2020, the Company has identified one operating segment, which has also been determined to be the Company’s primary reportable business segment. Prior to the Sale of Webdam on February 26, 2018, the Company had also identified a non-reportable segment which was classified in the Other Category, included the Company’s digital asset management operating segment and failed to meet the quantitative or qualitative thresholds for separate segment reporting. 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.

Contingent Consideration

Foreign Currency

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.

Recently Adopted and Issued Accounting Standard Updates

Recently Adopted Accounting Standard Updates

Summary of Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2020 and 2019 (in thousands):


	As of December 31, 2020		As of December 31, 2019
Cash and cash equivalents	$	428,574	$	303,261
Restricted cash	—		2,613
Total cash, cash equivalents and restricted cash	$	428,574	$	305,874

Schedule of Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of December 31, 2020 and 2019 (in thousands):


	As of December 31, 2020		As of December 31, 2019
Cash and cash equivalents	$	428,574	$	303,261
Restricted cash	—		2,613
Total cash, cash equivalents and restricted cash	$	428,574	$	305,874

Accounts Receivable, Allowance for Credit Loss

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


	Year Ended December 31,
	2020		2019		2018
Balance, beginning of period	$	3,579	$	4,697	$	4,088
Add: bad debt expense	2,580		84		1,175
Less: write-offs, net of recoveries and other adjustments1	(1,217)		(1,202)		(566)
Balance, end of period	$	4,942	$	3,579	$	4,697

1 - Other adjustments includes the adoption of ASU 2016-13, which increased the allowance for doubtful accounts by $0.3M.

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,
	2020		2019
Computer equipment and software	$	193,141	$	165,950
Furniture and fixtures	10,235		10,199
Leasehold improvements	19,382		19,203
Property and equipment	222,758		195,352
Less: accumulated depreciation	(171,852)		(136,518)
Property and equipment, net	$	50,906	$	58,834

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
Computer equipment and software	$	193,141	$	165,950
Furniture and fixtures	10,235		10,199
Leasehold improvements	19,382		19,203
Property and equipment	222,758		195,352
Less: accumulated depreciation	(171,852)		(136,518)
Property and equipment, net	$	50,906	$	58,834

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The following table summarizes the changes in the Company’s goodwill balance for the year ended December 31, 2020 (in thousands):


	Goodwill


Balance as of December 31, 2019	$	88,974

Foreign currency translation adjustment	439

Balance as of December 31, 2020	$	89,413

Schedule of Intangible Assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2020 and 2019 (in thousands):


	As of December 31, 2020							As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	18,132	$	(11,032)	$	7,100	9	$	17,729	$	(9,294)	$	8,435
Trade name	6,669		(6,328)		341		7	6,517		(5,941)		576
Developed technology	6,930		(5,039)		1,891		4	4,841		(4,226)		615
Contributor content	26,669		(10,378)		16,291		9	23,510		(6,626)		16,884
Patents	259		(117)		142		18	259		(100)		159

Total	$	58,659	$	(32,894)	$	25,765		$	52,856	$	(26,187)	$	26,669

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	December 31,
	2020		2019
Compensation	$	31,499	$	20,776
Non-income taxes	17,164		15,332


Website hosting and marketing fees	9,991		8,657


Other expenses	9,255		9,099
Total accrued expenses	$	67,909	$	53,864

Revenue (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
E-commerce	$	412,521	$	392,241	$	365,730
Enterprise	254,165		258,282		254,809
Other (1)	—		—		2,711
Total Revenues	$	666,686	$	650,523	$	623,250

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of Non-cash Equity-based Compensation Expense


	Year Ended December 31,
	2020		2019		2018
Cost of revenue	$	430	$	220	$	523
Sales and marketing	1,887		1,934		2,218
Product development	4,494		4,737		5,815
General and administrative	21,498		15,924		15,313
Total	$	28,309	$	22,815	$	23,869


	Year Ended December 31,
	2020		2019		2018
Stock options	$	2,088	$	5,721	$	6,009
RSUs	26,221		17,094		17,860



Total	$	28,309	$	22,815	$	23,869


	As of December 31,
	2020		2019
Stock options outstanding	$	16,100	$	4,000
Stock options exercisable	$	12,600	$	3,000
Stock options vested and expected to vest	$	16,100	$	4,000

Schedule of Stock Option Awards Activity and Weighted Average Exercise Price per Share

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, 2019	989,485	$	57.45
Options granted	53,022	42.96

Options exercised	(33,755)	34.69
Options canceled or expired	(31,719)	43.70
Options outstanding at December 31, 2020	977,033	$	57.90

Options exercisable at December 31, 2020	334,199	$	34.06

Schedule of Weighted Average Assumptions

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020			2019			2018
Expected term (in years)	6.0			6.3			6.3
Volatility	43.8		%	45.4		%	47.8		%
Risk-free interest rate	1.73		%	1.83		%	2.63		%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	18.86		$	18.05		$	23.64

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, 2020:


	Plan RSUs	Weighted Average Fair Value
Non-vested balance at December 31, 2019	1,113,679	$	45.03
Units granted	900,422	36.42

Units vested	(317,240)	43.84
Units canceled or forfeited	(288,838)	40.50
Non-vested balance at December 31, 2020	1,408,023	$	40.72

Non-vested and deferred balance at December 31, 2020	1,452,245	$	40.94

Other Income / (Expense), net (Tables)

12 Months Ended

Dec. 31, 2020

Other Nonoperating Income (Expense) [Abstract]

Summary of Other Income / (Expense) Activity

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


	Year Ended December 31,
	2020		2019		2018
Foreign currency gain / (loss)	$	3,067	$	540	$	(1,807)

Impairment of a long-term investment asset	—		—		(5,881)
Interest income	1,190		4,221		2,736
Other income / (expense), net	$	4,257	$	4,761	$	(4,952)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Geographical Income (Loss) Before Income Taxes

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


	Year Ended December 31,
	2020		2019		2018
Domestic	$	83,255	$	25,549	$	68,596
Foreign	6,268		(633)		(2,483)
Income before income taxes	$	89,523	$	24,916	$	66,113

Summary of Consolidated Provision (Benefit) for Income Taxes

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


	Year Ended December 31,
	2020		2019		2018
Current provision:
Federal	$	11,287	$	2,824	$	7,670
State and local	2,294		1,127		4,800
Foreign	3,158		2,882		5,226
Deferred provision (benefit):
Federal	(1,147)		(2,337)		(2,901)
State and local	149		(52)		(164)
Foreign	2,016		364		(3,205)
Provision for income taxes	$	17,757	$	4,808	$	11,426

Schedule of Tax Rate Reconciliation

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


	Year Ended December 31,
	2020		2019		2018
U.S. income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
Tax credits	(1.7)		(12.6)		(5.4)
State and local taxes, net of federal benefit	1.5		1.7		1.9
Equity-based compensation	2.4		2.0		(0.4)
Foreign rate differential	0.5		0.3		0.5

Foreign-derived intangible income deduction	(6.0)		(12.0)		(3.7)
Uncertain tax positions	1.0		12.4		3.6
Valuation allowance	0.9		3.9		—
Transition tax related to TCJA	—		—		(0.3)


Non-deductible—other	0.2		2.6		0.1
Total provision for income taxes	19.8	%	19.3	%	17.3	%

Schedule of Deferred Tax Assets and Liabilities

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,
	2020		2019
Deferred tax assets:
Non-cash equity-based compensation	$	11,508	$	9,806
Intangible amortization	850		2,252
Non-income tax accruals	2,499		2,647
Lease liabilities	10,995		12,645

Other liabilities	5,804		6,508
Gross deferred tax assets	31,656		33,858
Valuation allowance	(1,861)		(965)
Net deferred tax assets	29,795		32,893
Deferred tax liabilities:
Right-of-use assets	(8,557)		(10,125)
Depreciation and amortization	(7,672)		(8,381)
Net deferred tax assets	$	13,566	$	14,387

Summary of Changes in Unrecognized Tax Benefits

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


	Year Ended December 31,
	2020		2019		2018
Balance of unrecognized tax benefits at January 1	$	8,949	$	5,846	$	2,966
Gross additions for tax positions for prior years	—		173		332
Gross additions for tax positions for current year	724		3,842		3,476
Gross reductions for tax positions of prior years	(81)		—		—
Gross expirations	—		(912)		(928)

Balance of unrecognized tax benefits at December 31	$	9,592	$	8,949	$	5,846

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2020

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 years 2020, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
Net income	$	71,766	$	20,108	$	54,687
Shares used to compute basic net income per share	35,844		35,285		34,935
Dilutive potential common shares:
Stock options and employee stock purchase plan shares	99		83		117
Unvested restricted stock awards	426		213		368
Shares used to compute diluted net income per share	36,369		35,581		35,420
Basic net income per share	$	2.00	$	0.57	$	1.57
Diluted net income per share	$	1.97	$	0.57	$	1.54

Potentially dilutive shares included in the calculation	1,286		917		1,285
Anti-dilutive shares excluded from the calculation	931		1,202		1,020

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Geographic Revenue

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


	Year Ended December 31,
	2020		2019		2018
North America	$	236,599	$	228,185	$	230,890
Europe	220,665		217,397		207,634
Rest of the world	209,422		204,941		184,726
Total revenue	$	666,686	$	650,523	$	623,250

Schedule of Long-lived Tangible Assets

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


	December 31,
	2020		2019
North America	$	43,451	$	51,954
Europe	7,192		6,541
Rest of world	263		339
Total long-lived tangible assets	$	50,906	$	58,834

Leasing (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Balance Sheet Information for Leases

Balance sheet information for the Company’s leases as of December 31, 2020, is as follows:


	December 31,
(in thousands)	2020		2019

Right-of-use assets	$	39,552	$	45,453

Lease liabilities, current	$	9,097	$	9,573
Lease liabilities, non-current	41,620		47,313
Total lease liabilities	$	50,717	$	56,886

Schedule of Maturity of Operating Lease Liabilities

Future undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its lease liabilities at December 31, 2020 are as follows (in thousands):


Reconciliation of future undiscounted lease payments to lease liabilities	Lease Commitments
Year ending December 31,

2020	9,334
2021	8,131
2022	6,594
2023	6,879
2024	7,728
Thereafter	25,651
Total undiscounted lease payments	64,317
Less: imputed interest	(13,600)
Total lease liabilities	$	50,717

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Other Non-Lease Obligations


Year Ending December 31,	Other Obligations
2021	$	26,524
2022	7,988
2023	4,125
2024	—
2025	—
Thereafter	—
Total non-lease unconditional obligations	$	38,637

Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Data


	Three Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019

	(in thousands, except per share data)
Revenue	$	180,944	$	165,227	$	159,230	$	161,285	$	166,371	$	159,079	$	161,741	$	163,332
Operating expenses(1):
Cost of revenue	66,308		60,331		63,811		69,123		71,797		68,635		68,526		69,218
Sales & marketing	44,369		36,655		35,557		42,660		47,182		45,614		44,488		44,446
Product development	9,867		10,617		12,485		13,069		15,103		13,533		13,594		14,986
General and administrative	32,807		28,277		24,832		30,652		26,486		28,114		32,063		26,583
Total operating expenses	153,351		135,880		136,685		155,504		160,568		155,896		158,671		155,233
Income from operations	27,593		29,347		22,545		5,781		5,803		3,183		3,070		8,099

Other income / (expense), net(2)	4,763		(1,168)		149		513		2,816		465		584		896
Income before income taxes	32,356		28,179		22,694		6,294		8,619		3,648		3,654		8,995
Provision / (Benefit) for income tax	6,477		5,597		3,707		1,976		4,266		(1,286)		355		1,473
Net income	$	25,879	$	22,582	$	18,987	$	4,318	$	4,353	$	4,934	$	3,299	$	7,522
Net income per common share:
Basic	$	0.71	$	0.63	$	0.53	$	0.12	$	0.12	$	0.14	$	0.09	$	0.21
Diluted	$	0.70	$	0.62	$	0.53	$	0.12	$	0.12	$	0.14	$	0.09	$	0.21
Weighted average common shares outstanding:
Basic	36,234		35,962		35,652		35,521		35,478		35,309		35,232		35,114
Diluted	37,183		36,494		35,906		35,882		35,786		35,541		35,504		35,491

____________________________________________________________________________

(1)Includes non-cash equity-based compensation of $28,309 and $22,815 for the years ended December 31, 2020 and 2019, respectively.

Summary of Operations and Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 428,574	$ 303,261
Restricted cash	0	2,613
Total cash, cash equivalents and restricted cash	$ 428,574	$ 305,874	$ 233,465	$ 256,041

Summary of Operations and Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts:
Balance, beginning of period	$ 3,579	$ 4,697	$ 4,088
Add: bad debt expense	2,580	84	1,175
Less: write-offs, net of recoveries and other adjustments1	(1,217)	(1,202)	(566)
Balance, end of period	4,942	$ 3,579	$ 4,697
Increase in allowance for doubtful accounts	$ 300

Summary of Operations and Significant Accounting Policies - Chargeback and Sales Refund Allowance (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Chargeback and sales refund allowance	$ 0.5	$ 0.3

Summary of Operations and Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2020
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, 2020	Dec. 31, 2019	Dec. 31, 2018
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 Thousands	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets	$ (16,650)	$ (26,703)
Deferred revenue	(149,843)	(141,922)
Retained earnings	$ 168,305	$ 121,187
Cumulative Effect, Period of Adoption, Adjustment \| 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 - Contributor Royalties and Internal Sales Commissions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred Revenue Arrangement [Line Items]
Deferred royalty advances	$ 3.6	$ 8.4	$ 6.2
Amortization of advance royalty	$ (5.5)	(9.2)	$ (6.1)
Prepaid expenses and other current assets
Deferred Revenue Arrangement [Line Items]
Deferred contributor royalties		$ 1.9

Summary of Operations and Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Advertising Costs
Advertising costs	$ 81.2	$ 102.3	$ 91.5

Summary of Operations and Significant Accounting Policies - Equity-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted cash	$ 0	$ 2,613
2012 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Minimum \| 2012 Plan \| PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting as percent of recipient's target shares	0.00%
Maximum \| 2012 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Maximum \| 2012 Plan \| PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting as percent of recipient's target shares	150.00%

Summary of Operations and Significant Accounting Policies - Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Employer matching contributions	$ 3.8	$ 3.7	$ 3.2

Summary of Operations and Significant Accounting Policies - Reportable Segments (Details)	12 Months Ended
	Dec. 31, 2020 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, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Foreign currency transactional gains (losses)	$ 2.4	$ (0.2)	$ (2.2)

Summary of Operations and Significant Accounting Policies - Recently Adopted Accounting Standard Update (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 168,305		$ 121,187
Accounting Standards Update 2016-13 \| Retained Earnings \| Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		$ (200)

Fair Value Measurements and Other Long-term Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	$ 250,000,000.0	$ 0
Variable interest investment	20,000,000.0	15,000,000.0
Loss on impairment of long-term investment	0	$ 0	$ 5,881,000
SilverHub Media Limited
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments				$ 5,900,000
Loss on impairment of long-term investment			5,900,000
Fair value in equity method investment			0
Zcool Network Technology Limited \| Convertible Preferred Stock \| Variable Interest Entity, Not Primary Beneficiary
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase of convertible preferred stock			$ 15,000,000.0
Ownership interest			25.00%
Other Equity Investment \| Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase of convertible preferred stock	$ 5,000,000.0
Equity method investment, ownership percentage	2.00%

Sale of Webdam (Details) - USD ($) $ in Thousands	12 Months Ended
Sale of Webdam (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	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	$ 0	$ 2,500	$ 41,804
Gain on sale of Webdam	$ 0	0	38,613
Webdam \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
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		44,300
Escrow deposits		$ 2,500
Gain on sale of Webdam			$ 38,600

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property and Equipment
Property and equipment	$ 222,758	$ 195,352
Less: accumulated depreciation	(171,852)	(136,518)
Property and equipment, net	50,906	58,834
Computer equipment and software
Property and Equipment
Property and equipment	193,141	165,950
Furniture and fixtures
Property and Equipment
Property and equipment	10,235	10,199
Leasehold improvements
Property and Equipment
Property and equipment	$ 19,382	$ 19,203

Property and Equipment - Narrative (Details) - USD ($)	12 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment
Depreciation and amortization expense	$ 35,600,000	$ 42,900,000	$ 40,100,000
Loss on disposal	0	0	0
Capitalized costs	25,100,000	23,600,000	27,700,000
Amortization expense	28,900,000	30,300,000	24,900,000
Capitalized internal-use software	38,000,000.0	41,800,000
Cost of revenue
Property and Equipment
Depreciation and amortization expense	31,600,000	38,100,000	34,000,000.0
General and Administrative Expenses
Property and Equipment
Depreciation and amortization expense	$ 4,000,000.0	$ 4,800,000	$ 6,100,000

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amortizing intangible assets
Impairment of goodwill	$ 0	$ 0	$ 0
Amortization expense	5,800,000	7,000,000.0	5,500,000
2021	5,700,000
2022	5,400,000
2023	5,100,000
2024	3,600,000
2025	2,100,000
Thereafter	3,900,000
Cost of Revenue
Amortizing intangible assets
Amortization expense	3,400,000	2,300,000	1,700,000
General and Administrative Expenses
Amortizing intangible assets
Amortization expense	$ 2,400,000	$ 4,700,000	$ 3,800,000

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Changes in goodwill
Beginning Balance	$ 88,974
Foreign currency translation adjustment	439
Ending Balance	$ 89,413

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Amortizing intangible assets:
Gross Carrying Amount	$ 58,659	$ 52,856
Accumulated Amortization	(32,894)	(26,187)
Net Carrying Amount	25,765	26,669
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	18,132	17,729
Accumulated Amortization	(11,032)	(9,294)
Net Carrying Amount	$ 7,100	8,435
Weighted Average Life (Years)	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,669	6,517
Accumulated Amortization	(6,328)	(5,941)
Net Carrying Amount	$ 341	576
Weighted Average Life (Years)	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 6,930	4,841
Accumulated Amortization	(5,039)	(4,226)
Net Carrying Amount	$ 1,891	615
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 26,669	23,510
Accumulated Amortization	(10,378)	(6,626)
Net Carrying Amount	$ 16,291	16,884
Weighted Average Life (Years)	9 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 259	259
Accumulated Amortization	(117)	(100)
Net Carrying Amount	$ 142	$ 159
Weighted Average Life (Years)	18 years

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Compensation	$ 31,499	$ 20,776
Non-income taxes	17,164	15,332
Website hosting and marketing fees	9,991	8,657
Other expenses	9,255	9,099
Total accrued expenses	$ 67,909	$ 53,864

Stockholders’ Equity - Stock Offering (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 14, 2020	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering price per share (in dollars per share)		$ 0.01	$ 0.01
Public Stock Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold in offering (in shares)	2,580,000
Offering price per share (in dollars per share)	$ 48.50
Net proceeds from stock offering	$ 23.2
Public Stock Offering \| The Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold in offering (in shares)	516,000
Public Stock Offering \| Board of Directors Chairman
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold in offering (in shares)	2,064,000

Stockholders' Equity (Details)					12 Months Ended
Stockholders' Equity (Details)	Jan. 19, 2021 $ / shares	Feb. 11, 2020 $ / shares	Aug. 29, 2018 USD ($)	Aug. 01, 2018 $ / shares	Dec. 31, 2020 USD ($) vote $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($)	Feb. 28, 2017 USD ($)	Oct. 31, 2015 USD ($)
Common Stock
Number of votes for each share \| vote					1
Common stock, shares authorized (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
Preferred stock, shares issued (in shares) \| shares					0
Treasury Stock
Number of shares acquired \| shares					2,558,000	2,558,000
Dividends
Cash dividend (in dollars per share) \| $ / shares		$ 0.68
Cash dividend paid \| $					$ 24,400,000
Cash dividend declared (in dollars per share) \| $ / shares				$ 3.00
Payment of Special Dividend \| $			$ 104,900,000		$ 24,401,000	$ 0	$ 104,925,000
Conversion ratio				1.055
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
Remaining authorization for purchases under the share repurchase program \| $					$ 100,000,000
Common Stock \| Share Repurchase Program, Remaining Authorization
Treasury Stock
Number of shares acquired \| shares					0
Subsequent Event
Dividends
Cash dividend declared (in dollars per share) \| $ / shares	$ 0.21

Revenue - Narrative (Details) $ in Millions	12 Months Ended
Revenue - Narrative (Details) $ in Millions	Dec. 31, 2020 USD ($) Primary_channel
Revenue from Contract with Customer [Abstract]
Number of primary channels \| Primary_channel	2
Disposal group deferred revenue \| $	$ 136.8

Revenue - Revenue by Distribution Channel (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total Revenues	$ 180,944	$ 165,227	$ 159,230	$ 161,285	$ 166,371	$ 159,079	$ 161,741	$ 163,332	$ 666,686	$ 650,523	$ 623,250
E-commerce
Disaggregation of Revenue [Line Items]
Total Revenues									412,521	392,241	365,730
Enterprise
Disaggregation of Revenue [Line Items]
Total Revenues									254,165	258,282	254,809
Other
Disaggregation of Revenue [Line Items]
Total Revenues									$ 0	$ 0	$ 2,711

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Equity-Based Compensation - Summary of Non-cash Equity-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 28,309	$ 22,815	$ 23,869
Stock options
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	2,088	5,721	6,009
RSUs
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	26,221	17,094	17,860
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	430	220	523
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	1,887	1,934	2,218
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	4,494	4,737	5,815
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 21,498	$ 15,924	$ 15,313

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions						12 Months Ended
	Jan. 01, 2019	Aug. 01, 2018	Jan. 01, 2018	Apr. 24, 2014	Oct. 10, 2012	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of total stock options exercised						$ 0.5	$ 1.1	$ 2.0
Options granted (in shares)						53,022
Options granted (in dollars per share)						$ 42.96
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge						$ 1.6
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
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge						$ 30.0
Units granted (in shares)						900,422
Weighted average grant date fair value (in dollars per share)						$ 40.72	$ 45.03
RSUs \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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				$ 5.8
Units granted (in shares)		105,000		100,000
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)	1,065,000		1,052,000

Equity-Based Compensation - Summary of Stock Option Awards and Weighted Average Exercise Price per Option (Details)	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Plan Options
Options outstanding at the beginning of the period (in shares) \| shares	989,485
Options granted (in shares) \| shares	53,022
Options exercised (in shares) \| shares	(33,755)
Options cancelled or expired (in shares) \| shares	(31,719)
Options outstanding at the end of the period (in shares) \| shares	977,033
Options exercisable at the end of the period (in shares) \| shares	334,199
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per unit) \| $ / shares	$ 57.45
Options granted (in dollars per share) \| $ / shares	42.96
Options exercised (in dollars per share) \| $ / shares	34.69
Options cancelled or expired (in dollars per share) \| $ / shares	43.70
Options outstanding at the end of the period (in dollars per unit) \| $ / shares	57.90
Options exercisable at the end of the period (in dollars per shares) \| $ / shares	$ 34.06

Equity-Based Compensation - Intrinsic Value of Stock Options (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock options outstanding	$ 16,100	$ 4,000
Stock options exercisable	12,600	3,000
Stock options vested and expected to vest	$ 16,100	$ 4,000

Equity-Based Compensation - Weighted Average Assumptions (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years	6 years 3 months 18 days	6 years 3 months 18 days
Volatility	43.80%	45.40%	47.80%
Risk-free interest rate	1.73%	1.83%	2.63%
Dividend yield	0.00%	0.00%	0.00%
Weighted average fair value per share granted (in dollars per share)	$ 18.86	$ 18.05	$ 23.64

Equity-Based Compensation - Summary of RSUs Activity (Details) - RSUs	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Plan RSUs
Non-vested balance at the beginning of the period (in shares) \| shares	1,113,679
Units granted (in shares) \| shares	900,422
Units vested (in shares) \| shares	(317,240)
Units cancelled or forfeited (in shares) \| shares	(288,838)
Non-vested balance at the end of the period (in shares) \| shares	1,408,023
Non-vested and deferred balance (in dollars per share) \| shares	1,452,245
Weighted Average Fair Value
Non-vested balance at the beginning of the period (in dollars per share) \| $ / shares	$ 45.03
Units granted (in dollars per share) \| $ / shares	36.42
Units vested (in dollars per share) \| $ / shares	43.84
Units cancelled or forfeited (in dollars per share) \| $ / shares	40.50
Non-vested balance at the end of the period (in dollars per share) \| $ / shares	40.72
Non-vested and deferred balance (in shares) \| $ / shares	$ 40.94

Other Income / (Expense), net (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Nonoperating Income (Expense) [Abstract]
Foreign currency gain / (loss)									$ 3,067	$ 540	$ (1,807)
Impairment of a long-term investment asset									0	0	(5,881)
Interest income									1,190	4,221	2,736
Other income / (expense), net	$ 4,763	$ (1,168)	$ 149	$ 513	$ 2,816	$ 465	$ 584	$ 896	$ 4,257	$ 4,761	$ (4,952)

Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Domestic									$ 83,255	$ 25,549	$ 68,596
Foreign									6,268	(633)	(2,483)
Income before income taxes	$ 32,356	$ 28,179	$ 22,694	$ 6,294	$ 8,619	$ 3,648	$ 3,654	$ 8,995	$ 89,523	$ 24,916	$ 66,113

Income Taxes - Consolidated Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current provision:
Federal									$ 11,287	$ 2,824	$ 7,670
State and local									2,294	1,127	4,800
Foreign									3,158	2,882	5,226
Deferred provision (benefit):
Federal									(1,147)	(2,337)	(2,901)
State and local									149	(52)	(164)
Foreign									2,016	364	(3,205)
Provision for income taxes	$ 6,477	$ 5,597	$ 3,707	$ 1,976	$ 4,266	$ (1,286)	$ 355	$ 1,473	$ 17,757	$ 4,808	$ 11,426

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Tax Rate Reconciliation (Details)	12 Months Ended
Income Taxes - Tax Rate Reconciliation (Details)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
U.S. income tax at federal statutory rate	21.00%	21.00%	21.00%
Tax credits	(1.70%)	(12.60%)	(5.40%)
State and local taxes, net of federal benefit	1.50%	1.70%	1.90%
Equity-based compensation	2.40%	2.00%	(0.40%)
Foreign rate differential	0.50%	0.30%	0.50%
Foreign-derived intangible income deduction	(6.00%)	(12.00%)	(3.70%)
Uncertain tax positions	1.00%	12.40%	3.60%
Valuation allowance	0.90%	3.90%	0.00%
Transition tax related to TCJA	0.00%	0.00%	(0.30%)
Non-deductible—other	0.20%	2.60%	0.10%
Total provision for income taxes	19.80%	19.30%	17.30%

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred tax assets	$ 11,508	$ 9,806
Valuation allowance, foreign net operating loss carryforwards	(1,900)
Impact on effective tax rate on recognition of unrecognized tax benefits	8,700
Reasonably possible reversal of unrecognized tax benefits in the next fiscal year	1,600
Operating loss carryforwards	16,500
Undistributed earnings attributable to foreign subsidiaries	12,100
Performance Shares And Restricted Stock Units (RSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred tax assets	$ 6,200

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Non-cash equity-based compensation	$ 11,508	$ 9,806
Intangible amortization	850	2,252
Non-income tax accruals	2,499	2,647
Lease liabilities	10,995	12,645
Other liabilities	5,804	6,508
Gross deferred tax assets	31,656	33,858
Valuation allowance	(1,861)	(965)
Net deferred tax assets	29,795	32,893
Deferred tax liabilities:
Right-of-use assets	(8,557)	(10,125)
Depreciation and amortization	(7,672)	(8,381)
Net deferred tax assets	$ 13,566	$ 14,387

Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of unrecognized tax benefits
Balance of unrecognized tax benefits at January 1	$ 8,949	$ 5,846	$ 2,966
Gross additions for tax positions for prior years	0	173	332
Gross additions for tax positions for current year	724	3,842	3,476
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	(81)	0	0
Gross expirations	0	(912)	(928)
Balance of unrecognized tax benefits at December 31	$ 9,592	$ 8,949	$ 5,846

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 25,879	$ 22,582	$ 18,987	$ 4,318	$ 4,353	$ 4,934	$ 3,299	$ 7,522	$ 71,766	$ 20,108	$ 54,687
Shares used to compute basic net income per share (in shares)	36,234	35,962	35,652	35,521	35,478	35,309	35,232	35,114	35,844	35,285	34,935
Dilutive potential common shares:
Stock options and employee stock purchase plan shares (in shares)									99	83	117
Unvested restricted stock awards (in shares)									426	213	368
Shares used to compute diluted net income per share (in shares)	37,183	36,494	35,906	35,882	35,786	35,541	35,504	35,491	36,369	35,581	35,420
Basic net income per share (in dollars per share)	$ 0.71	$ 0.63	$ 0.53	$ 0.12	$ 0.12	$ 0.14	$ 0.09	$ 0.21	$ 2.00	$ 0.57	$ 1.57
Diluted net income per share (in dollars per share)	$ 0.70	$ 0.62	$ 0.53	$ 0.12	$ 0.12	$ 0.14	$ 0.09	$ 0.21	$ 1.97	$ 0.57	$ 1.54
Potentially dilutive shares included in the calculation (in shares)									1,286	917	1,285
Anti-dilutive shares excluded from the calculation (in shares)									931	1,202	1,020

Segment and Geographic Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 180,944	$ 165,227	$ 159,230	$ 161,285	$ 166,371	$ 159,079	$ 161,741	$ 163,332	$ 666,686	$ 650,523	$ 623,250
Operating Expenses	153,351	135,880	136,685	155,504	160,568	155,896	158,671	155,233	581,420	630,368	590,798
Income from operations	$ 27,593	$ 29,347	$ 22,545	$ 5,781	$ 5,803	$ 3,183	$ 3,070	$ 8,099	$ 85,266	$ 20,155	32,452
Unallocated corporate expenses											97,800
Operating Segments \| Content Segment
Segment Reporting Information [Line Items]
Revenue											620,500
Operating Expenses											491,000
Income from operations											129,600
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Revenue											2,700
Operating Expenses											99,800
Income from operations											$ (97,100)

- Definition

+ References

+ Details

Segment and Geographic Information - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 180,944	$ 165,227	$ 159,230	$ 161,285	$ 166,371	$ 159,079	$ 161,741	$ 163,332	$ 666,686	$ 650,523	$ 623,250
North America
Segment Reporting Information [Line Items]
Revenue									236,599	228,185	230,890
Europe
Segment Reporting Information [Line Items]
Revenue									220,665	217,397	207,634
Rest of the world
Segment Reporting Information [Line Items]
Revenue									$ 209,422	$ 204,941	$ 184,726

- Definition

+ References

+ Details

Segment and Geographic Information - Narrative (Details) - Geographic Concentration Risk	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue Benchmark \| United States
Concentration Risk [Line Items]
Revenue percent	33.00%	32.00%	32.00%
Revenue Benchmark \| United Kingdom
Concentration Risk [Line Items]
Revenue percent	8.00%
Long-Lived Tangible Assets \| United States
Concentration Risk [Line Items]
Revenue percent	75.00%	79.00%

Segment and Geographic Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 50,906	$ 58,834
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	43,451	51,954
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	7,192	6,541
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 263	$ 339

Leasing - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leasing - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Feb. 29, 2020
Lessee, Lease, Description [Line Items]
Operating lease costs, including insignificant costs related to short-term leases	$ 10,500	$ 11,100
Operating lease costs, including insignificant costs related to short-term leases			$ 9,200
Cash paid for amounts included in lease liabilities	10,000
ROU assets obtained in exchange for lease obligations	$ 200
Weighted average remaining lease term	7 years 6 months
Weighted average discount rate	6.20%
Total minimum lease payments	$ 64,317
Letter of credit as a security deposit for the leased facilities		$ 2,600		$ 1,700
ESB Lease
Lessee, Lease, Description [Line Items]
Total minimum lease payments	$ 56,300

Leasing - Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Right-of-use assets	$ 39,552	$ 45,453
Lease liabilities, current	9,097	9,573
Lease liabilities, non-current	41,620	47,313
Total lease liabilities	$ 50,717	$ 56,886
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent

Leasing - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of future undiscounted lease payments to lease liabilities
2020	$ 9,334
2021	8,131
2022	6,594
2023	6,879
2024	7,728
Thereafter	25,651
Total undiscounted lease payments	64,317
Less: imputed interest	(13,600)
Total lease liabilities	$ 50,717	$ 56,886

Commitments and Contingencies - Schedule of Other Non-Lease Obligations (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Other Obligations
2021	$ 26,524
2022	7,988
2023	4,125
2024	0
2025	0
Thereafter	0
Total non-lease unconditional obligations	$ 38,637

Commitments and Contingencies - Narrative (Details) - Customer Indemnifications	Dec. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Maximum indemnification liability per customer	$ 10,000
Liabilities related to indemnification	$ 0

Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 180,944	$ 165,227	$ 159,230	$ 161,285	$ 166,371	$ 159,079	$ 161,741	$ 163,332	$ 666,686	$ 650,523	$ 623,250
Operating expenses:
Cost of revenue	66,308	60,331	63,811	69,123	71,797	68,635	68,526	69,218	259,573	278,176	267,671
Sales & marketing	44,369	36,655	35,557	42,660	47,182	45,614	44,488	44,446	159,241	181,730	166,448
Product development	9,867	10,617	12,485	13,069	15,103	13,533	13,594	14,986	46,038	57,216	58,897
General and administrative	32,807	28,277	24,832	30,652	26,486	28,114	32,063	26,583	116,568	113,246	97,782
Total operating expenses	153,351	135,880	136,685	155,504	160,568	155,896	158,671	155,233	581,420	630,368	590,798
Income from operations	27,593	29,347	22,545	5,781	5,803	3,183	3,070	8,099	85,266	20,155	32,452
Other income / (expense), net	4,763	(1,168)	149	513	2,816	465	584	896	4,257	4,761	(4,952)
Income before income taxes	32,356	28,179	22,694	6,294	8,619	3,648	3,654	8,995	89,523	24,916	66,113
Provision / (Benefit) for income tax	6,477	5,597	3,707	1,976	4,266	(1,286)	355	1,473	17,757	4,808	11,426
Net income	$ 25,879	$ 22,582	$ 18,987	$ 4,318	$ 4,353	$ 4,934	$ 3,299	$ 7,522	$ 71,766	$ 20,108	$ 54,687
Net income per common share:
Basic (in dollars per share)	$ 0.71	$ 0.63	$ 0.53	$ 0.12	$ 0.12	$ 0.14	$ 0.09	$ 0.21	$ 2.00	$ 0.57	$ 1.57
Diluted (in dollars per share)	$ 0.70	$ 0.62	$ 0.53	$ 0.12	$ 0.12	$ 0.14	$ 0.09	$ 0.21	$ 1.97	$ 0.57	$ 1.54
Weighted average shares outstanding:
Basic (in shares)	36,234	35,962	35,652	35,521	35,478	35,309	35,232	35,114	35,844	35,285	34,935
Diluted (in shares)	37,183	36,494	35,906	35,882	35,786	35,541	35,504	35,491	36,369	35,581	35,420
Equity-based compensation									$ 28,309	$ 22,815	$ 23,869

Subsequent Events (Details) - USD ($) $ in Thousands		12 Months Ended
Subsequent Events (Details) - USD ($) $ in Thousands	Feb. 01, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Cash payment		$ 1,850	$ 0	$ 845
Subsequent Event \| TurboSquid, Inc.
Subsequent Event [Line Items]
Cash payment	$ 75,000