0001549346-22-000028 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2022	Jul. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35,968,440
Entity Central Index Key	0001549346
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 84,046	$ 314,017
Accounts receivable, net of allowance of $2,990 and $1,910	48,816	47,707
Prepaid expenses and other current assets	30,394	26,491
Total current assets	163,256	388,215
Property and equipment, net	52,549	48,074
Right-of-use assets	34,293	34,570
Intangible assets, net	185,860	123,822
Goodwill	377,654	219,816
Deferred tax assets, net	8,709	10,512
Other assets	26,247	26,701
Total assets	848,568	851,710
Current liabilities:
Accounts payable	5,889	10,092
Accrued expenses	84,547	99,529
Contributor royalties payable	34,853	29,004
Deferred revenue	178,353	180,979
Debt	50,000	0
Other current liabilities	14,309	14,180
Total current liabilities	367,951	333,784
Deferred tax liability, net	4,592	2,781
Lease liabilities	37,397	36,966
Other non-current liabilities	9,535	9,697
Total liabilities	419,475	383,228
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 39,482 and 39,209 shares issued and 35,981 and 36,417 shares outstanding as of June 30, 2022 and December 31, 2021, respectively	395	392
Treasury stock, at cost; 3,501 and 2,792 shares as of June 30, 2022 and December 31, 2021, respectively	(183,800)	(127,196)
Additional paid-in capital	370,934	376,537
Accumulated comprehensive loss	(16,619)	(10,788)
Retained earnings	258,183	229,537
Total stockholders’ equity	429,093	468,482
Total liabilities and stockholders’ equity	$ 848,568	$ 851,710

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,990	$ 1,910
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000	200,000
Common stock, shares issued (in shares)	39,482	39,209
Common stock, shares outstanding (in shares)	35,981	36,417
Treasury stock, shares held in treasury (in shares)	3,501	2,792

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 206,872	$ 189,912	$ 406,004	$ 373,193
Operating expenses:
Cost of revenue	77,019	67,757	146,470	129,589
Sales and marketing	54,229	45,896	107,558	87,817
Product development	17,162	11,993	30,788	22,724
General and administrative	33,088	31,041	63,896	61,720
Total operating expenses	181,498	156,687	348,712	301,850
Income from operations	25,374	33,225	57,292	71,343
Other (expense) / income, net	(2,661)	1,323	(1,903)	(1,139)
Income before income taxes	22,713	34,548	55,389	70,204
Provision for income taxes	3,268	5,094	9,372	11,236
Net income	$ 19,445	$ 29,454	$ 46,017	$ 58,968
Earnings per share:
Basic (in dollars per share)	$ 0.54	$ 0.81	$ 1.27	$ 1.62
Diluted (in dollars per share)	$ 0.53	$ 0.79	$ 1.25	$ 1.58
Weighted average common shares outstanding:
Basic (in shares)	36,123	36,570	36,213	36,453
Diluted (in shares)	36,578	37,189	36,890	37,218

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 19,445	$ 29,454	$ 46,017	$ 58,968
Foreign currency translation (loss) / gain	(4,945)	64	(5,831)	290
Other comprehensive (loss) / income	(4,945)	64	(5,831)	290
Comprehensive income	$ 14,500	$ 29,518	$ 40,186	$ 59,258

- 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	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income / (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020		38,803
Beginning balance at Dec. 31, 2020	$ 421,925	$ 389	$ (100,027)	$ 360,939	$ (7,681)	$ 168,305
Beginning balance (in shares) at Dec. 31, 2020			2,558
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	17,896			17,896
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	1,801	$ 6		1,795
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(231)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(20,229)	$ (3)		(20,226)
Cash dividends paid	(15,317)					(15,317)
Other comprehensive income (loss)	290				290
Net income	58,968					58,968
Ending balance (in shares) at Jun. 30, 2021		39,173
Ending balance at Jun. 30, 2021	465,334	$ 392	$ (100,027)	360,404	(7,391)	211,956
Ending balance (in shares) at Jun. 30, 2021			2,558
Beginning balance (in shares) at Mar. 31, 2021		39,010
Beginning balance at Mar. 31, 2021	440,504	$ 391	$ (100,027)	357,422	(7,455)	190,173
Beginning balance (in shares) at Mar. 31, 2021			2,558
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	9,686			9,686
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		244
Issuance of common stock in connection with employee stock option exercises and RSU vesting	492	$ 2		490
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(81)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(7,195)	$ (1)		(7,194)
Cash dividends paid	(7,671)					(7,671)
Other comprehensive income (loss)	64				64
Net income	29,454					29,454
Ending balance (in shares) at Jun. 30, 2021		39,173
Ending balance at Jun. 30, 2021	$ 465,334	$ 392	$ (100,027)	360,404	(7,391)	211,956
Ending balance (in shares) at Jun. 30, 2021			2,558
Beginning balance (in shares) at Dec. 31, 2021	36,417	39,209
Beginning balance at Dec. 31, 2021	$ 468,482	$ 392	$ (127,196)	376,537	(10,788)	229,537
Beginning balance (in shares) at Dec. 31, 2021	2,792		2,792
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	$ 14,870			14,870
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		503
Issuance of common stock in connection with employee stock option exercises and RSU vesting	568	$ 5		563
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(230)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(21,038)	$ (2)		(21,036)
Repurchase of treasury shares (in shares)			709
Repurchase of treasury shares	(56,604)		$ (56,604)
Cash dividends paid	(17,371)					(17,371)
Other comprehensive income (loss)	(5,831)				(5,831)
Net income	$ 46,017					46,017
Ending balance (in shares) at Jun. 30, 2022	35,981	39,482
Ending balance at Jun. 30, 2022	$ 429,093	$ 395	$ (183,800)	370,934	(16,619)	258,183
Ending balance (in shares) at Jun. 30, 2022	3,501		3,501
Beginning balance (in shares) at Mar. 31, 2022		39,352
Beginning balance at Mar. 31, 2022	$ 444,423	$ 394	$ (165,465)	373,765	(11,674)	247,403
Beginning balance (in shares) at Mar. 31, 2022			3,214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	7,044			7,044
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		242
Issuance of common stock in connection with employee stock option exercises and RSU vesting	568	$ 2		566
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(112)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(10,442)	$ (1)		(10,441)
Repurchase of treasury shares (in shares)			287
Repurchase of treasury shares	(18,335)		$ (18,335)
Cash dividends paid	(8,665)					(8,665)
Other comprehensive income (loss)	(4,945)				(4,945)
Net income	$ 19,445					19,445
Ending balance (in shares) at Jun. 30, 2022	35,981	39,482
Ending balance at Jun. 30, 2022	$ 429,093	$ 395	$ (183,800)	$ 370,934	$ (16,619)	$ 258,183
Ending balance (in shares) at Jun. 30, 2022	3,501		3,501

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 46,017	$ 58,968
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	31,575	20,243
Deferred taxes	(3,602)	1,782
Non-cash equity-based compensation	14,869	17,896
Bad debt expense	620	213
Changes in operating assets and liabilities:
Accounts receivable	(762)	(6,056)
Prepaid expenses and other current and non-current assets	(1,207)	(5,892)
Accounts payable and other current and non-current liabilities	(28,980)	6,359
Contributor royalties payable	3,713	1,750
Deferred revenue	(2,669)	11,953
Net cash provided by operating activities	59,574	107,216
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(20,797)	(15,337)
Business combination, net of cash acquired	(212,096)	(72,165)
Asset acquisitions	(150)	0
Acquisition of content	(6,999)	(3,396)
Security deposit payment	(281)	(65)
Net cash used in investing activities	(240,323)	(90,963)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of treasury shares	(56,937)	0
Proceeds from exercise of stock options	568	1,801
Cash paid related to settlement of employee taxes related to RSU vesting	(21,038)	(20,229)
Payment of cash dividend	(17,371)	(15,317)
Proceeds from credit facility	50,000	0
Payment of debt issuance costs	(619)	0
Net cash used in financing activities	(45,397)	(33,745)
Effect of foreign exchange rate changes on cash	(3,825)	(36)
Net decrease in cash and cash equivalents	(229,971)	(17,528)
Cash and cash equivalents, beginning of period	314,017	428,574
Cash and cash equivalents, end of period	84,046	411,046
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	12,700	9,495
Cash paid for interest	$ 90	$ 0

Summary of Operations and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Operations and Significant Accounting Policies	Summary of Operations and Significant Accounting Policies Summary of Operations Shutterstock, Inc. (the “Company” or “Shutterstock”) is the leading global creative platform for transformative brands 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. Contributors upload their content to the Company’s web properties in exchange for royalty payments based on customer download activity. The Company’s key offerings include: •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. •3 Dimensional (“3D”) Models - consisting of 3D models, used in a variety of industries such as advertising, media and video production, gaming, retail, education, design and architecture. This offering became available upon the Company’s acquisition of TurboSquid, Inc. on February 1, 2021. •Creative Design Software - consisting of the Company’s online graphic design and image editing platform. This offering became available after the Company completed the acquisition of substantially all of the assets and assumption of certain liabilities from PicMonkey, LLC (“PicMonkey”) on September 3, 2021. On May 11, 2022, the Company completed its acquisition of Pond5, Inc. (“Pond5”), a video-first content marketplace which expands Shutterstock’s content offerings across footage, image and music. On May 28, 2022, Shutterstock acquired SCP 2020 Limited (“Splash News”), an entertainment news network for newsrooms and media companies, which offers image and video content across celebrity, red carpet and live events. Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. The interim Consolidated Balance Sheet as of June 30, 2022, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021, and the Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021, are unaudited. The Consolidated Balance Sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include all normal recurring adjustments necessary to fairly state the Company’s financial position as of June 30, 2022, and its consolidated results of operations, comprehensive income, stockholders’ equity and cash flows for the three and six months ended June 30, 2022 and 2021. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2022 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 10, 2022. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported 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. Cash and Cash Equivalents The Company’s cash and cash equivalents consist primarily of bank deposits and money market funds. 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. During the six months ended June 30, 2022, the Company recorded bad debt expense of $0.6 million. As of June 30, 2022 and December 31, 2021, the Company’s allowance for doubtful accounts was approximately $3.0 million and $1.9 million, respectively. The allowance for doubtful accounts is included as a reduction of accounts receivable on the Consolidated Balance Sheets. 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 June 30, 2022 and December 31, 2021, the Company’s combined allowance for chargebacks and sales refunds was $0.4 million, which was included as a component of other current liabilities on the Consolidated Balance Sheets. 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. Subsequent to the acquisition of PicMonkey, the Company also generates revenue from tools made available through the Company’s platform. The Company recognizes revenue upon the satisfaction of performance obligations. For content licenses, the Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded by a customer, 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. For revenue associated with tools made available through the Company’s platform, revenue is recognized on a straight-line basis over the subscription period. 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. Interest expense Interest expense is comprised of borrowing costs on debt. In addition, interest expense includes amortization of debt issuance costs and unused commitment fees associated with the Company’s credit facility. Debt issuance costs are recorded in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets and are amortized over the term of the credit facility.

Fair Value Measurements and Long-term Investments	6 Months Ended
Fair Value Measurements and Long-term Investments	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements and Long-term Investments	Fair Value Measurements and Long-term Investments Fair Value Measurements The Company had no assets or liabilities requiring fair value hierarchy disclosures as of June 30, 2022 or December 31, 2021, except as noted below. Cash Equivalents 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, 2021, the Company had cash equivalent balances of $195.1 million. As of June 30, 2022, the Company did not have any cash equivalent balances. Other Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. Debt consists of principal amounts outstanding under our credit facility, which approximates fair value as underlying interest rates are reset regularly based on current market rates and is classified as Level 2. 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 the Company is required to evaluate a non-financial asset for impairment, whether due to certain triggering events or because annual impairment testing is required, a resulting asset impairment would require that the non-financial asset be recorded at fair value. Long-term Investments As of June 30, 2022 and December 31, 2021, the Company’s long-term investments were in equity securities with no readily determinable fair value, totaled $20.0 million, and were reported within other assets on the Consolidated Balance Sheets. The Company uses the measurement alternative for these equity investments and their carrying value is 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 general market conditions. As of June 30, 2022, 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.

- 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

Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Pond5, Inc.

On May 11, 2022, the Company completed its acquisition of Pond5, for approximately $218.3 million, subject to customary working capital adjustments. The total purchase price was paid with existing cash on hand as well as a $50 million drawdown on a newly established revolving credit facility (See Note 7). In connection with the acquisition, the Company incurred approximately $3.6 million of transaction costs, which is included in general and administrative expenses on the Consolidated Statements of Operations.

Pond5 is a New York based company that operates a video-first content marketplace for royalty-free and editorial video. The Company believes its acquisition of this video-first content marketplace provides expanded offerings across footage, image and music.

The identifiable intangible assets, which include customer relationships, developed technology and trade names have weighted average useful lives of approximately 12.2 years, 5 years and 10 years, respectively. The goodwill arising from the transaction is primarily attributable to expected operational synergies and is not deductible for income tax purposes.

Splash News

On May 28, 2022, the Company completed its acquisition of Splash News, for approximately $6.3 million. The total purchase price was paid with existing cash on hand in the three months ended June 30, 2022. In connection with the acquisition, the Company incurred approximately $0.3 million of transaction costs, which is included in general and administrative expenses on the Consolidated Statements of Operations.

Splash News is a United Kingdom based entertainment news network and is a source for image and video content across celebrity, red carpet and live events. The Company believes this acquisition expands Shutterstock Editorial’s Newsroom offering for access to premium exclusive content.

The identifiable intangible asset, developed technology, has a useful life of approximately 4 years. The goodwill arising from the transaction is primarily attributable to expected operational synergies and is not deductible for income tax purposes.

The Pond5 and Splash News transactions were accounted for using the acquisition method and, accordingly, the results of the acquired businesses have been included in the Company’s results of operations from the respective acquisition dates. For the three months ended June 30, 2022, revenue of $7.2 million was included in the Consolidated Statements of Operations related to these acquired companies. The fair value of consideration transferred in these business combinations has been allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The identifiable intangible assets of these acquisitions are being amortized on a straight-line basis. The fair value of the customer relationships was determined using a variation of the income approach known as the multiple-period excess earnings method. The fair value of the trade name was determined using the relief-from-royalty method, and the fair value of the developed technology was determined using the relief-from-royalty and the cost to recreate methods.

The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):


Assets acquired and liabilities assumed (in thousands):	Pond51		Splash News1		Total
Cash and cash equivalents	$	11,675	$	180	$	11,855
Accounts receivable	1,273		500		$	1,773
Other assets	1,102		525		1,627

Right of use asset	1,674		—		1,674
Intangible assets:					—
Customer relationships	41,900		—		41,900
Trade name	4,700		—		4,700
Developed technology	25,300		1,263		26,563

Intangible assets	71,900		1,263		73,163
Goodwill	154,949		5,565		160,514
Deferred tax asset	—		—		—
Total assets acquired	$	242,573	$	8,033	$	250,606
					—
Accounts payable, accrued expenses and other liabilities	(8,090)		(1,528)		(9,618)
Contributor royalties payable	(3,039)				(3,039)

Deferred revenue	(3,705)		—		(3,705)
Deferred tax liability	(7,434)		(189)		(7,623)
Lease liability	(2,038)		—		(2,038)
Total liabilities assumed	(24,306)		(1,717)		(26,023)
Net assets acquired	$	218,267	$	6,316	$	224,583

____________________________________________________

1 The allocation of the purchase price is preliminary and will be finalized within the allowable measurement period once independent valuations of the fair value of the assets acquired and liabilities assumed are completed.

2021 Acquisitions

PicMonkey, LLC

On September 3, 2021, the Company completed the acquisition of substantially all of the assets and assumption of certain liabilities from PicMonkey, for approximately $109.4 million. The total purchase price was paid with existing cash on hand in the three months ended September 30, 2021. In connection with the acquisition, the Company incurred approximately $2 million of transaction costs, which is included in general and administrative expenses on the Consolidated Statements of Operations.

PicMonkey is a Washington-based company that operates an online graphic design and image editing platform that enables creators of any skill level to design high-quality visual assets. The Company believes this acquisition provides Shutterstock’s global customer community with professional-grade, easy-to-use design tools.

The identifiable intangible assets, which include customer relationships, developed technology and trade names, have weighted average lives of approximately 12 years, 5 years and 10 years, respectively. The goodwill arising from the transaction is primarily attributable to expected operational synergies and is expected to be deductible for income tax purposes.

TurboSquid, Inc.

On February 1, 2021, the Company completed its acquisition of TurboSquid, Inc. (“TurboSquid”), for approximately $77.3 million. The total purchase price was paid with existing cash on hand in the three months ended March 31, 2021. In connection with the acquisition, the Company incurred approximately $1.6 million of transaction costs, which is included in general and administrative expenses on the Consolidated Statements of Operations.

TurboSquid is a Louisiana-based company that operates a marketplace offering more than one million 3D models, a marketplace for 2D images derived from 3D objects and a digital asset management solution. The Company believes this

acquisition establishes Shutterstock as the premium destination for 3D models as well as 3D models in an easy-to-use 2D format.

The identifiable intangible assets, which include customer relationships, developed technology, trade names and contributor content, have weighted average useful lives of approximately 12 years, 4.7 years, 10 years and 4 years, respectively. The goodwill arising from the transaction is primarily attributable to expected operational synergies and is not deductible for income tax purposes.

The PicMonkey and TurboSquid transactions were accounted for using the acquisition method and, accordingly, the results of the acquired businesses have been included in the Company’s results of operations from the respective acquisition dates. The fair value of consideration transferred in these business combinations has been allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The identifiable intangible assets of these acquisitions are being amortized on a straight-line basis. The fair value of the customer relationships was determined using a variation of the income approach known as the multiple-period excess earnings method. The fair value of the trade names and developed technology were determined using the relief-from-royalty method, and the fair value of the contributor content was determined using the cost-to-recreate method.

The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):


Assets acquired and liabilities assumed (in thousands):	PicMonkey		TurboSquid		Total
Cash and cash equivalents	$	—	$	5,165	$	5,165

Other assets	502		1,553		2,055
Property and equipment	—		472		472
Right of use asset	1,420		—		1,420
Intangible assets:					—
Customer relationships	28,800		9,000		37,800
Trade name	3,000		2,200		5,200
Developed technology	12,900		7,800		20,700
Contributor content	—		2,500		2,500
Intangible assets	44,700		21,500		66,200
Goodwill	71,607		59,491		131,098
Deferred tax asset	2,456		—		2,456
Total assets acquired	$	120,685	$	88,181	$	208,866

Accounts payable, accrued expenses and other liabilities	(780)		(4,685)		(5,465)
Contributor royalties payable	—		(2,243)		(2,243)

Deferred revenue	(8,557)		—		(8,557)
Deferred tax liability	(533)		(3,923)		(4,456)
Lease liability	(1,420)		—		(1,420)
Total liabilities assumed	(11,290)		(10,851)		(22,141)
Net assets acquired	$	109,395	$	77,330	$	186,725

Pro-Forma Financial Information (unaudited)

The following unaudited pro forma consolidated financial information (in thousands) reflects the results of operations of the Company for the three and six months ended June 30, 2022 and 2021, as if the Pond5 and Splash News acquisitions had been completed on January 1, 2021 and as if the TurboSquid and PicMonkey acquisitions had been completed on January 1, 2020, after giving effect to certain purchase accounting adjustments, primarily related to intangible assets and transaction costs. These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue
As Reported	$	206,872	$	189,912	$	406,004	$	373,193
Pro Forma	213,452		211,643		426,287		417,316
Income before income taxes
As Reported	$	22,713	$	34,548	$	55,389	$	70,204
Pro Forma	26,326		35,978		58,559		68,941

Property and Equipment

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

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


	As of June 30, 2022		As of December 31, 2021
Computer equipment and software	$	240,535	$	221,429
Furniture and fixtures	10,223		10,238
Leasehold improvements	19,746		19,453
Property and equipment	270,504		251,120
Less accumulated depreciation	(217,955)		(203,046)
Property and equipment, net	$	52,549	$	48,074

Depreciation expense related to property and equipment was $8.3 million and $7.9 million for the three months ended June 30, 2022 and 2021, respectively, and $16.3 million and $15.9 million for the six months ended June 30, 2022 and 2021, respectively. Cost of revenues included depreciation expense of $7.5 million and $7.1 million for the three months ended June 30, 2022 and 2021, respectively, and $14.7 million and $14.2 million for the six months ended June 30, 2022 and 2021, respectively. General and administrative expense included depreciation expense of $0.8 million for the three months ended June 30, 2022 and 2021, and $1.6 million and $1.7 million for the six months ended June 30, 2022 and 2021, respectively.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $10.6 million and $7.2 million for the three months ended June 30, 2022 and 2021, respectively, and $20.1 million and $14.2 million for the six months ended June 30, 2022 and 2021, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software on the Consolidated Balance Sheets.

The portion of total depreciation expense related to capitalized internal-use software was $7.2 million and $6.6 million for the three months ended June 30, 2022 and 2021, respectively, and $14.0 million and $13.3 million for the six months ended June 30, 2022 and 2021, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue in the Consolidated Statements of Operations.

As of June 30, 2022 and December 31, 2021, the Company had capitalized internal-use software of $45.1 million and $39.0 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The Company’s goodwill balance is attributable to its Content reporting unit and is tested for impairment annually on October 1 or upon a triggering event. No triggering events were identified during the six months ended June 30, 2022.

The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2022 (in thousands):


	Goodwill
Balance as of December 31, 2021	$	219,816
Goodwill related to acquisitions	160,514
Foreign currency translation adjustment	(2,676)

Balance as of June 30, 2022	$	377,654

Intangible Assets

Intangible assets consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands):


	As of June 30, 2022							As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Customer relationships	$	95,508	$	(15,556)	$	79,952	12	$	55,542	$	(13,906)	$	41,636
Trade name	15,922		(6,659)		9,263		9	11,787		(6,805)		4,982
Developed technology	92,231		(23,327)		68,904		4	67,940		(14,214)		53,726
Contributor content	44,465		(16,843)		27,622		8	37,984		(14,632)		23,352

Patents	259		(140)		119		18	259		(133)		126

Total	$	248,385	$	(62,525)	$	185,860		$	173,512	$	(49,690)	$	123,822

Amortization expense was $8.2 million and $2.3 million for the three months ended June 30, 2022 and 2021, respectively, and $15.3 million and $4.4 million for the six months ended June 30, 2022 and 2021, respectively. Cost of revenue included amortization expense of $7.7 million and $1.2 million for the three months ended June 30, 2022 and 2021, respectively, and $14.2 million and $2.3 million for the six months ended June 30, 2022 and 2021, respectively. General and administrative expense included amortization expense of $0.6 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $1.1 million and $2.0 million for the six months ended June 30, 2022 and 2021, respectively.

The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $19.0 million for the remaining six months of 2022, $37.7 million in 2023, $30.8 million in 2024, $20.6 million in 2025, $18.6 million in 2026, $13.1 million in 2027 and $46.1 million thereafter.

Accrued Expenses

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses Accrued expenses consisted of the following (in thousands):


	As of June 30, 2022		As of December 31, 2021
Compensation	$	28,077	$	43,529
Non-income taxes	24,711		21,488

Website hosting and marketing fees	9,917		18,314



Other expenses	21,842		16,198
Total accrued expenses	$	84,547	$	99,529

Debt	6 Months Ended
Debt	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt On May 6, 2022, the Company entered into a five-year $100 million unsecured revolving loan facility (the “Credit Facility”) with Bank of America, N.A., as Administrative Agent and other lenders. The Credit Facility includes a letter of credit sub-facility and a swingline facility and it also permits, subject to the satisfaction of certain conditions, up to $100 million of additional revolving loan commitments with the consent of the Administrative Agent. At the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.125% to 0.500%, determined based on the Company’s consolidated leverage ratio or (ii) the Term Secured Overnight Financing Rate (“SOFR”) (for interest periods of 1, 3 or 6 months) plus a margin ranging from 1.125% to 1.5%, determined based on the Company’s consolidated leverage ratio. The Company is also required to pay an unused commitment fee ranging from 0.150% to 0.225%, determined based on the Company’s consolidated leverage ratio. In connection with the execution of this agreement, the Company paid debt issuance costs of approximately $0.6 million. On May 9, 2022, the Company borrowed $50 million for use in connection with the acquisition of Pond5, described under Note 3 (“Acquisitions”) and for general corporate purposes. As of June 30, 2022, the Company had outstanding borrowings under the Credit Facility of $50 million and had a remaining borrowing capacity of $48 million, net of standby letters of credit. As of December 31, 2021, the Company had no outstanding debt obligations. For the three and six months ended June 30, 2022, the Company recognized interest expense of $0.2 million. The Credit Facility contains financial covenants and requirements restricting certain of the Company’s activities, which are usual and customary for this type of credit facility. The Company is also required to maintain compliance with a consolidated leverage ratio and a consolidated interest coverage ratio, in each case, determined in accordance with the terms of the Credit Facility. As of June 30, 2022, the Company was in compliance with these covenants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

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+ Details

Stockholders’ Equity and Equity-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stockholders’ Equity and Equity-Based Compensation

Stockholders’ Equity

Common Stock

The Company issued approximately 130,000 and 163,000 shares of common stock during the three months ended June 30, 2022 and 2021, respectively, related to the exercise of stock options and the vesting of Restricted Stock Units.

Treasury Stock

In October 2015, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $100 million of its common stock. In February 2017, the Company’s Board of Directors approved an increase to the share repurchase program, authorizing the Company to repurchase up to an additional $100 million of its outstanding common stock.

The Company expects to fund future repurchases, if any, through a combination of cash on hand, cash generated by operations and future financing transactions, if appropriate. Accordingly, the share repurchase program is subject to the Company having available cash to fund repurchases. Under the 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.

During the three and six months ended June 30, 2022, the Company repurchased approximately 286,700 and 708,700 shares of its common stock at an average per share cost of $63.95 and $79.87, respectively. During the six months ended June 30, 2021, the Company did not repurchase any shares of its common stock under the share repurchase program. As of June 30, 2022, the Company had $16.2 million of remaining authorization for purchases under the share repurchase program.

Dividends

The Company declared and paid cash dividends of $0.24 and $0.48 per share of common stock, or $8.7 million and $17.4 million, during the three and six months ended June 30, 2022, respectively, and $0.21 and $0.42 per share of common stock, or $7.7 million and $15.3 million, during the three and six months ended June 30, 2021, respectively.

On July 18, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.24 per share of outstanding common stock payable on September 15, 2022 to stockholders of record at the close of business on September 1, 2022. Future declarations 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.

Equity-Based Compensation

The Company recognizes stock-based compensation expense for all equity-based compensation awards, including employee Restricted Stock Units and Performance-based Restricted Stock Units (“PRSUs” and, collectively with Restricted Stock Units, “RSUs”) and stock options, based on the fair value of each award on the grant date. Awards granted prior to June 1, 2022 were granted under the Company’s Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”). At the Annual Meeting held on June 2, 2022, the Company’s stockholders approved the 2022 Omnibus Equity Incentive Plan (the “2022 Plan”). Awards granted subsequent to June 2, 2022 were granted under the 2022 Plan.

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	156	$	194	$	234	$	358
Sales and marketing	1,629		926		2,557		1,393
Product development	2,557		1,799		4,338		3,028
General and administrative	2,701		6,767		7,740		13,117
Total	$	7,043	$	9,686	$	14,869	$	17,896

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options	$	(197)	$	177	$	(22)	$	352
RSUs	7,240		9,509		14,891		17,544



Total	$	7,043	$	9,686	$	14,869	$	17,896

Stock Option Awards

During the six months ended June 30, 2022, no options to purchase shares of its common stock were granted. As of June 30, 2022, there were approximately 319,000 options vested and exercisable with a weighted average exercise price of $34.46. As of June 30, 2022, the total unrecognized compensation expense related to non-vested options was approximately $0.2 million, which is expected to be recognized through 2023.

Restricted Stock Unit Awards

During the six months ended June 30, 2022, the Company had RSU grants, net of forfeitures, of approximately 745,000. As of June 30, 2022, there are approximately 1,393,000 non-vested RSUs outstanding with a weighted average grant-date fair value of $76.22. As of June 30, 2022, the total unrecognized non-cash equity-based compensation expense related to the non-vested RSUs was approximately $81.3 million, which is expected to be recognized through 2026.

During the six months ended June 30, 2022 and 2021, shares of common stock with an aggregate value of $21.0 million and $20.2 million were withheld upon vesting of RSUs and paid in connection with related remittance of employee withholding taxes to taxing authorities.

During the three months ended June 30, 2022, the Company had approximately $3 million in forfeitures associated with the resignation of its former Chief Executive Officer. On July 1, 2022, the Company awarded RSUs with a value of $30 million to its newly appointed Chief Executive Officer, which vest over a three-year service period. $15 million of these awards are subject to performance metrics.

Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

The Company distributes its products through two primary channels:

E-commerce: The majority of the Company’s customers make purchases of content licenses and tools directly through the Company’s self-service web properties. E-commerce customers have the flexibility to purchase subscription-based plans that are paid on a monthly or annual basis. Customer are also able 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.

The Company’s revenues by distribution channel for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
E-commerce	$	127,388	$	120,715	$	254,458	$	239,115
Enterprise	79,484		69,197		151,546		134,078

Total Revenues	$	206,872	$	189,912	$	406,004	$	373,193

The June 30, 2022 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. $120.5 million of total revenue recognized for the six months ended June 30, 2022 was reflected in deferred revenue as of December 31, 2021.

- 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
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Other (Expense) / Income, net

6 Months Ended

Jun. 30, 2022

Other Nonoperating Income (Expense) [Abstract]

Other (Expense) / Income, net

Other (Expense) / Income, netThe following table presents a summary of the Company’s other income and expense activity included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Foreign currency (loss) / gain	$	(2,495)	$	1,277	$	(1,761)	$	(1,233)



Interest expense	(205)		—		(205)		—
Other	39		46		63		94
Total other (expense) / income	$	(2,661)	$	1,323	$	(1,903)	$	(1,139)

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates yielded a net expense of 14.4% and 14.7% for the three months ended June 30, 2022 and 2021, respectively, and a net expense of 16.9% and 16.0% for the six months ended June 30, 2022 and 2021, respectively. During the three months ended June 30, 2022, the net effect of discrete items decreased the effective tax rate by 4.9%. For the six months ended June 30, 2022, the net effect of discrete items decreased the effective tax rate by 2.2%. The discrete items for the three and six months ended June 30, 2022, primarily relate to windfall tax benefits associated with equity-based compensation. Excluding discrete items, the Company’s effective tax rate would have been 19.3% and 19.1% for the three and six months ended June 30, 2022, respectively. During the three months ended June 30, 2021, the net effect of discrete items decreased the effective tax rate by 5.3%. For the six months ended June 30, 2021, the net effect of discrete items decreased the effective tax rate by 4.0%. The discrete items for the three and six months ended June 30, 2021, primarily relate to windfall tax benefits associated with equity-based compensation. Excluding discrete items, the Company’s effective tax rate would have been 20.0% for the three and six months ended June 30, 2021. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding a loss jurisdiction with no tax benefit and the application of discrete items, if any, in the applicable period. During the three and six months ended June 30, 2022 and 2021, uncertain tax positions recorded by the Company were not significant. To the extent the remaining uncertain tax positions are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not significant for the three and six months ended June 30, 2022 and 2021. During the six months ended June 30, 2022 and 2021, the Company paid net cash taxes of $12.7 million and $9.5 million, respectively.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Income Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Net Income Per Share

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

The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	19,445	$	29,454	$	46,017	$	58,968
Shares used to compute basic net income per share	36,123		36,570		36,213		36,453
Dilutive potential common shares
Stock options	169		242		201		233
Unvested restricted stock awards	286		377		476		532

Shares used to compute diluted net income per share	36,578		37,189		36,890		37,218
Basic net income per share	$	0.54	$	0.81	$	1.27	$	1.62
Diluted net income per share	$	0.53	$	0.79	$	1.25	$	1.58

Dilutive shares included in the calculation	836		1,221		1,121		1,328
Anti-dilutive shares excluded from the calculation	590		2		325		10

Geographic Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Geographic Information

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
North America	$	85,896	$	68,954	$	165,839	$	133,263
Europe	62,931		64,778		125,484		127,055
Rest of the world	58,045		56,180		114,681		112,875
Total revenue	$	206,872	$	189,912	$	406,004	$	373,193

The United States, included in North America in the above table, accounted for 38% and 31% of consolidated revenue for the six months ended June 30, 2022 and 2021, respectively. No other country accounts for more than 10% of the Company’s revenue in any period presented.

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


	As of June 30,		As of December 31,
	2022		2021
North America	$	43,625	$	40,465
Europe	8,837		7,460
Rest of the world	87		149
Total long-lived tangible assets	$	52,549	$	48,074

The United States, included in North America in the above table, accounted for 77% and 76% of total long-lived tangible assets as of June 30, 2022 and December 31, 2021, respectively. Ireland, included in Europe in the above table, accounted for 13% and 11% of total long-lived tangible assets as of June 30, 2022 and December 31, 2021, respectively. No other country accounts for more than 10% of the Company’s long-lived tangible assets in any period presented.

- 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.

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+ Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of June 30, 2022, the Company had total non-lease obligations in the amount of approximately $103.3 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of June 30, 2022, the Company’s non-lease obligations for the remainder of 2022 and for the years ending December 31, 2023, 2024, 2025 and 2026 were approximately $30.6 million, $37.3 million, $28.5 million, $6.3 million and $0.6 million, respectively. Legal Matters From time to time, the Company may become party to litigation in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company reviews reserves, if any, at least quarterly and may change the amount of any such reserve in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and threats of litigation, investigations and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company currently has no material active litigation matters and, accordingly, no material reserves related to litigation. Indemnification and Employment Agreements In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of the Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of any modifications made by the customer, or the context in which content is used. The standard maximum aggregate obligation and liability to any one customer for any single claim is generally limited to ten thousand dollars but can range to $250,000, with certain exceptions for which our indemnification obligation are uncapped. As of June 30, 2022, the Company had recorded no material liabilities related to indemnification obligations for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary. Pursuant to the Company’s charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its executive officers, certain employees and directors, as well as certain former officers and directors. The Company has also entered into employment agreements with its executive officers and certain employees. These agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination or in the event of a change in control or otherwise, with or without cause.

Summary of Operations and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements.
Unaudited Interim Financial Statements	The interim Consolidated Balance Sheet as of June 30, 2022, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021, and the Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021, are unaudited. The Consolidated Balance Sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include all normal recurring adjustments necessary to fairly state the Company’s financial position as of June 30, 2022, and its consolidated results of operations, comprehensive income, stockholders’ equity and cash flows for the three and six months ended June 30, 2022 and 2021. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2022 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 10, 2022. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting.
Use of Estimates	Use of EstimatesThe 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.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company’s cash and cash equivalents consist primarily of bank deposits and money market funds.
Allowance for Doubtful Accounts	Allowance for Doubtful AccountsThe 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.
Chargeback and Sales Refund Allowance and Revenue Recognition	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 June 30, 2022 and December 31, 2021, the Company’s combined allowance for chargebacks and sales refunds was $0.4 million, which was included as a component of other current liabilities on the Consolidated Balance Sheets. 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. Subsequent to the acquisition of PicMonkey, the Company also generates revenue from tools made available through the Company’s platform. The Company recognizes revenue upon the satisfaction of performance obligations. For content licenses, the Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded by a customer, 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. For revenue associated with tools made available through the Company’s platform, revenue is recognized on a straight-line basis over the subscription period. 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.
Interest expense	Interest expense Interest expense is comprised of borrowing costs on debt. In addition, interest expense includes amortization of debt issuance costs and unused commitment fees associated with the Company’s credit facility. Debt issuance costs are recorded in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets and are amortized over the term of the credit facility.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

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+ Details

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Aggregate Purchase Price Allocation to Assets Acquired and Liabilities Assumed

The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):


Assets acquired and liabilities assumed (in thousands):	Pond51		Splash News1		Total
Cash and cash equivalents	$	11,675	$	180	$	11,855
Accounts receivable	1,273		500		$	1,773
Other assets	1,102		525		1,627

Right of use asset	1,674		—		1,674
Intangible assets:					—
Customer relationships	41,900		—		41,900
Trade name	4,700		—		4,700
Developed technology	25,300		1,263		26,563

Intangible assets	71,900		1,263		73,163
Goodwill	154,949		5,565		160,514
Deferred tax asset	—		—		—
Total assets acquired	$	242,573	$	8,033	$	250,606
					—
Accounts payable, accrued expenses and other liabilities	(8,090)		(1,528)		(9,618)
Contributor royalties payable	(3,039)				(3,039)

Deferred revenue	(3,705)		—		(3,705)
Deferred tax liability	(7,434)		(189)		(7,623)
Lease liability	(2,038)		—		(2,038)
Total liabilities assumed	(24,306)		(1,717)		(26,023)
Net assets acquired	$	218,267	$	6,316	$	224,583

____________________________________________________

The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):


Assets acquired and liabilities assumed (in thousands):	PicMonkey		TurboSquid		Total
Cash and cash equivalents	$	—	$	5,165	$	5,165

Other assets	502		1,553		2,055
Property and equipment	—		472		472
Right of use asset	1,420		—		1,420
Intangible assets:					—
Customer relationships	28,800		9,000		37,800
Trade name	3,000		2,200		5,200
Developed technology	12,900		7,800		20,700
Contributor content	—		2,500		2,500
Intangible assets	44,700		21,500		66,200
Goodwill	71,607		59,491		131,098
Deferred tax asset	2,456		—		2,456
Total assets acquired	$	120,685	$	88,181	$	208,866

Accounts payable, accrued expenses and other liabilities	(780)		(4,685)		(5,465)
Contributor royalties payable	—		(2,243)		(2,243)

Deferred revenue	(8,557)		—		(8,557)
Deferred tax liability	(533)		(3,923)		(4,456)
Lease liability	(1,420)		—		(1,420)
Total liabilities assumed	(11,290)		(10,851)		(22,141)
Net assets acquired	$	109,395	$	77,330	$	186,725

Business Acquisition, Pro Forma Information

These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue
As Reported	$	206,872	$	189,912	$	406,004	$	373,193
Pro Forma	213,452		211,643		426,287		417,316
Income before income taxes
As Reported	$	22,713	$	34,548	$	55,389	$	70,204
Pro Forma	26,326		35,978		58,559		68,941

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

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


	As of June 30, 2022		As of December 31, 2021
Computer equipment and software	$	240,535	$	221,429
Furniture and fixtures	10,223		10,238
Leasehold improvements	19,746		19,453
Property and equipment	270,504		251,120
Less accumulated depreciation	(217,955)		(203,046)
Property and equipment, net	$	52,549	$	48,074

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2022 (in thousands):


	Goodwill
Balance as of December 31, 2021	$	219,816
Goodwill related to acquisitions	160,514
Foreign currency translation adjustment	(2,676)

Balance as of June 30, 2022	$	377,654

Schedule of Intangible Assets

Intangible assets consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands):


	As of June 30, 2022							As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Customer relationships	$	95,508	$	(15,556)	$	79,952	12	$	55,542	$	(13,906)	$	41,636
Trade name	15,922		(6,659)		9,263		9	11,787		(6,805)		4,982
Developed technology	92,231		(23,327)		68,904		4	67,940		(14,214)		53,726
Contributor content	44,465		(16,843)		27,622		8	37,984		(14,632)		23,352

Patents	259		(140)		119		18	259		(133)		126

Total	$	248,385	$	(62,525)	$	185,860		$	173,512	$	(49,690)	$	123,822

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	As of June 30, 2022		As of December 31, 2021
Compensation	$	28,077	$	43,529
Non-income taxes	24,711		21,488

Website hosting and marketing fees	9,917		18,314



Other expenses	21,842		16,198
Total accrued expenses	$	84,547	$	99,529

Stockholders’ Equity and Equity-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Non-cash Equity-based Compensation Expense Included in the Company's Statement of Operations


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	156	$	194	$	234	$	358
Sales and marketing	1,629		926		2,557		1,393
Product development	2,557		1,799		4,338		3,028
General and administrative	2,701		6,767		7,740		13,117
Total	$	7,043	$	9,686	$	14,869	$	17,896


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options	$	(197)	$	177	$	(22)	$	352
RSUs	7,240		9,509		14,891		17,544



Total	$	7,043	$	9,686	$	14,869	$	17,896

Revenue (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The Company’s revenues by distribution channel for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
E-commerce	$	127,388	$	120,715	$	254,458	$	239,115
Enterprise	79,484		69,197		151,546		134,078

Total Revenues	$	206,872	$	189,912	$	406,004	$	373,193

Other (Expense) / Income, net (Tables)

6 Months Ended

Jun. 30, 2022

Other Nonoperating Income (Expense) [Abstract]

Summary of the Company's Other (Expense) Income, Net Activity

The following table presents a summary of the Company’s other income and expense activity included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Foreign currency (loss) / gain	$	(2,495)	$	1,277	$	(1,761)	$	(1,233)



Interest expense	(205)		—		(205)		—
Other	39		46		63		94
Total other (expense) / income	$	(2,661)	$	1,323	$	(1,903)	$	(1,139)

Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares

The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	19,445	$	29,454	$	46,017	$	58,968
Shares used to compute basic net income per share	36,123		36,570		36,213		36,453
Dilutive potential common shares
Stock options	169		242		201		233
Unvested restricted stock awards	286		377		476		532

Shares used to compute diluted net income per share	36,578		37,189		36,890		37,218
Basic net income per share	$	0.54	$	0.81	$	1.27	$	1.62
Diluted net income per share	$	0.53	$	0.79	$	1.25	$	1.58

Dilutive shares included in the calculation	836		1,221		1,121		1,328
Anti-dilutive shares excluded from the calculation	590		2		325		10

Geographic Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Revenue from External Customers by Geographic Areas

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
North America	$	85,896	$	68,954	$	165,839	$	133,263
Europe	62,931		64,778		125,484		127,055
Rest of the world	58,045		56,180		114,681		112,875
Total revenue	$	206,872	$	189,912	$	406,004	$	373,193

Long-lived Assets by Geographic Areas

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


	As of June 30,		As of December 31,
	2022		2021
North America	$	43,625	$	40,465
Europe	8,837		7,460
Rest of the world	87		149
Total long-lived tangible assets	$	52,549	$	48,074

Summary of Operations and Significant Accounting Policies - Allowance for Doubtful Accounts and Chargeback and Sales Refund Allowance (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounting Policies [Abstract]
Bad debt expense	$ 620	$ 213
Allowance for doubtful accounts	2,990		$ 1,910
Chargeback and sales refund allowances	$ 400		$ 400

Fair Value Measurements and Other Long-term Investments (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Cash equivalents	$ 0	$ 195,100,000
Long-term investments	$ 20,000,000	$ 20,000,000

Acquisitions - Narrative (Details) - USD ($) $ in Millions					3 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Millions	May 28, 2022	May 11, 2022	Sep. 03, 2021	Feb. 01, 2021	Jun. 30, 2022
Customer relationships
Business Acquisition [Line Items]
Estimated useful life				12 years
Developed technology
Business Acquisition [Line Items]
Estimated useful life				4 years 8 months 12 days
Trade name
Business Acquisition [Line Items]
Estimated useful life				10 years
Contributor content
Business Acquisition [Line Items]
Estimated useful life				4 years
Pond5, Inc. and Splash News
Business Acquisition [Line Items]
Revenue of acquiree					$ 7.2
Pond5, Inc.
Business Acquisition [Line Items]
Purchase price		$ 218.3
Debt incurred to pay for acquisition		50.0
Transaction costs		$ 3.6
Pond5, Inc. \| Customer relationships
Business Acquisition [Line Items]
Estimated useful life				12 years 2 months 12 days
Pond5, Inc. \| Developed technology
Business Acquisition [Line Items]
Estimated useful life				5 years
Pond5, Inc. \| Trade name
Business Acquisition [Line Items]
Estimated useful life				10 years
Splash News
Business Acquisition [Line Items]
Transaction costs	$ 0.3
Cash payment					$ 6.3
Splash News \| Developed technology
Business Acquisition [Line Items]
Estimated useful life	4 years
PicMonkey
Business Acquisition [Line Items]
Purchase price			$ 109.4
Transaction costs			$ 2.0
PicMonkey \| Customer relationships
Business Acquisition [Line Items]
Estimated useful life			12 years
PicMonkey \| Developed technology
Business Acquisition [Line Items]
Estimated useful life			5 years
PicMonkey \| Trade name
Business Acquisition [Line Items]
Estimated useful life			10 years
TurboSquid
Business Acquisition [Line Items]
Purchase price				$ 77.3
Transaction costs				$ 1.6

Acquisitions - Schedule of Acquisitions (Details) - USD ($) $ in Thousands	Jun. 30, 2022	May 28, 2022	May 10, 2022	Dec. 31, 2021	Sep. 03, 2021	Feb. 01, 2021
Assets acquired and liabilities assumed (in thousands):
Goodwill	$ 377,654			$ 219,816
Pond5, Inc. and Splash News
Assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents	11,855
Accounts receivable	1,773
Other assets	1,627
Right of use asset	1,674
Intangible assets	73,163
Goodwill	160,514
Deferred tax asset	0
Total assets acquired	250,606
Accounts payable, accrued expenses and other liabilities	(9,618)
Contributor royalties payable	(3,039)
Deferred revenue	(3,705)
Deferred tax liability	(7,623)
Lease liability	(2,038)
Total liabilities assumed	(26,023)
Net assets acquired	224,583
Pond5, Inc. and Splash News \| Customer relationships
Assets acquired and liabilities assumed (in thousands):
Intangible assets	41,900
Pond5, Inc. and Splash News \| Trade name
Assets acquired and liabilities assumed (in thousands):
Intangible assets	4,700
Pond5, Inc. and Splash News \| Developed technology
Assets acquired and liabilities assumed (in thousands):
Intangible assets	$ 26,563
Pond5, Inc.
Assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents			$ 11,675
Accounts receivable			1,273
Other assets			1,102
Right of use asset			1,674
Intangible assets			71,900
Goodwill			154,949
Deferred tax asset			0
Total assets acquired			242,573
Accounts payable, accrued expenses and other liabilities			(8,090)
Contributor royalties payable			(3,039)
Deferred revenue			(3,705)
Deferred tax liability			(7,434)
Lease liability			(2,038)
Total liabilities assumed			(24,306)
Net assets acquired			218,267
Pond5, Inc. \| Customer relationships
Assets acquired and liabilities assumed (in thousands):
Intangible assets			41,900
Pond5, Inc. \| Trade name
Assets acquired and liabilities assumed (in thousands):
Intangible assets			4,700
Pond5, Inc. \| Developed technology
Assets acquired and liabilities assumed (in thousands):
Intangible assets			$ 25,300
Splash News
Assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents		$ 180
Accounts receivable		500
Other assets		525
Right of use asset		0
Intangible assets		1,263
Goodwill		5,565
Deferred tax asset		0
Total assets acquired		8,033
Accounts payable, accrued expenses and other liabilities		(1,528)
Contributor royalties payable
Deferred revenue		0
Deferred tax liability		(189)
Lease liability		0
Total liabilities assumed		(1,717)
Net assets acquired		6,316
Splash News \| Customer relationships
Assets acquired and liabilities assumed (in thousands):
Intangible assets		0
Splash News \| Trade name
Assets acquired and liabilities assumed (in thousands):
Intangible assets		0
Splash News \| Developed technology
Assets acquired and liabilities assumed (in thousands):
Intangible assets		$ 1,263
PicMonkey And TurboSquid
Assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents				5,165
Other assets				2,055
Property and equipment				472
Right of use asset				1,420
Intangible assets				66,200
Goodwill				131,098
Deferred tax asset				2,456
Total assets acquired				208,866
Accounts payable, accrued expenses and other liabilities				(5,465)
Contributor royalties payable				(2,243)
Deferred revenue				(8,557)
Deferred tax liability				(4,456)
Lease liability				(1,420)
Total liabilities assumed				(22,141)
Net assets acquired				186,725
PicMonkey And TurboSquid \| Customer relationships
Assets acquired and liabilities assumed (in thousands):
Intangible assets				37,800
PicMonkey And TurboSquid \| Trade name
Assets acquired and liabilities assumed (in thousands):
Intangible assets				5,200
PicMonkey And TurboSquid \| Developed technology
Assets acquired and liabilities assumed (in thousands):
Intangible assets				20,700
PicMonkey And TurboSquid \| Contributor content
Assets acquired and liabilities assumed (in thousands):
Intangible assets				$ 2,500
PicMonkey
Assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents					$ 0
Other assets					502
Property and equipment					0
Right of use asset					1,420
Intangible assets					44,700
Goodwill					71,607
Deferred tax asset					2,456
Total assets acquired					120,685
Accounts payable, accrued expenses and other liabilities					(780)
Contributor royalties payable					0
Deferred revenue					(8,557)
Deferred tax liability					(533)
Lease liability					(1,420)
Total liabilities assumed					(11,290)
Net assets acquired					109,395
PicMonkey \| Customer relationships
Assets acquired and liabilities assumed (in thousands):
Intangible assets					28,800
PicMonkey \| Trade name
Assets acquired and liabilities assumed (in thousands):
Intangible assets					3,000
PicMonkey \| Developed technology
Assets acquired and liabilities assumed (in thousands):
Intangible assets					12,900
PicMonkey \| Contributor content
Assets acquired and liabilities assumed (in thousands):
Intangible assets					$ 0
TurboSquid
Assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents						$ 5,165
Other assets						1,553
Property and equipment						472
Right of use asset						0
Intangible assets						21,500
Goodwill						59,491
Deferred tax asset						0
Total assets acquired						88,181
Accounts payable, accrued expenses and other liabilities						(4,685)
Contributor royalties payable						(2,243)
Deferred revenue						0
Deferred tax liability						(3,923)
Lease liability						0
Total liabilities assumed						(10,851)
Net assets acquired						77,330
TurboSquid \| Customer relationships
Assets acquired and liabilities assumed (in thousands):
Intangible assets						9,000
TurboSquid \| Trade name
Assets acquired and liabilities assumed (in thousands):
Intangible assets						2,200
TurboSquid \| Developed technology
Assets acquired and liabilities assumed (in thousands):
Intangible assets						7,800
TurboSquid \| Contributor content
Assets acquired and liabilities assumed (in thousands):
Intangible assets						$ 2,500

Acquisitions - Pro Forma (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Acquisitions - Pro Forma (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Revenue - As Reported	$ 206,872	$ 189,912	$ 406,004	$ 373,193
Revenue - Pro Forma	213,452	211,643	426,287	417,316
Income before income taxes - As Reported	22,713	34,548	55,389	70,204
Income before income taxes - Pro Forma	$ 26,326	$ 35,978	$ 58,559	$ 68,941

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

- 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
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-Name Accounting Standards Codification
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+ Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Property and Equipment
Property and equipment	$ 270,504		$ 270,504		$ 251,120
Less accumulated depreciation	(217,955)		(217,955)		(203,046)
Property and equipment, net	52,549		52,549		48,074
Capitalized amount	10,600	$ 7,200	20,100	$ 14,200
Amortization expense	7,200	6,600	14,000	13,300
Internal use software	45,100		45,100		39,000
Computer equipment and software
Property and Equipment
Property and equipment	240,535		240,535		221,429
Furniture and fixtures
Property and Equipment
Property and equipment	10,223		10,223		10,238
Leasehold improvements
Property and Equipment
Property and equipment	19,746		19,746		$ 19,453
Property And Equipment
Property and Equipment
Depreciation	8,300	7,900	16,300	15,900
Cost of revenue
Property and Equipment
Depreciation	7,500	7,100	14,700	14,200
Selling, General and Administrative Expenses
Property and Equipment
Depreciation	$ 800	$ 800	$ 1,600	$ 1,700

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 219,816
Goodwill related to acquisitions	160,514
Foreign currency translation adjustment	(2,676)
Balance at the end of the period	$ 377,654

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Amortizing intangible assets
Gross Carrying Amount	$ 248,385	$ 173,512
Accumulated Amortization	(62,525)	(49,690)
Net Carrying Amount	185,860	123,822
Customer relationships
Amortizing intangible assets
Gross Carrying Amount	95,508	55,542
Accumulated Amortization	(15,556)	(13,906)
Net Carrying Amount	$ 79,952	41,636
Weighted Average Life (Years)	12 years
Trade name
Amortizing intangible assets
Gross Carrying Amount	$ 15,922	11,787
Accumulated Amortization	(6,659)	(6,805)
Net Carrying Amount	$ 9,263	4,982
Weighted Average Life (Years)	9 years
Developed technology
Amortizing intangible assets
Gross Carrying Amount	$ 92,231	67,940
Accumulated Amortization	(23,327)	(14,214)
Net Carrying Amount	$ 68,904	53,726
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets
Gross Carrying Amount	$ 44,465	37,984
Accumulated Amortization	(16,843)	(14,632)
Net Carrying Amount	$ 27,622	23,352
Weighted Average Life (Years)	8 years
Patents
Amortizing intangible assets
Gross Carrying Amount	$ 259	259
Accumulated Amortization	(140)	(133)
Net Carrying Amount	$ 119	$ 126
Weighted Average Life (Years)	18 years

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Amortizing intangible assets
Amortization expense	$ 8.2	$ 2.3	$ 15.3	$ 4.4
Remainder of 2022	19.0		19.0
2023	37.7		37.7
2024	30.8		30.8
2025	20.6		20.6
2026	18.6		18.6
2027	13.1		13.1
Thereafter	46.1		46.1
Cost of revenue
Amortizing intangible assets
Amortization expense	7.7	1.2	14.2	2.3
Selling, General and Administrative Expenses
Amortizing intangible assets
Amortization expense	$ 0.6	$ 1.1	$ 1.1	$ 2.0

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Compensation	$ 28,077	$ 43,529
Non-income taxes	24,711	21,488
Website hosting and marketing fees	9,917	18,314
Other expenses	21,842	16,198
Total accrued expenses	$ 84,547	$ 99,529

Debt - Narrative (Details) - USD ($)			3 Months Ended		6 Months Ended
Debt - Narrative (Details) - USD ($)	May 09, 2022	May 06, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Line of Credit Facility [Line Items]
Payment of debt issuance costs					$ 619,000	$ 0
Proceeds from credit facility					50,000,000	0
Interest expense			$ 205,000	$ 0	205,000	$ 0
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Line of credit, term		5 years
Maximum borrowing capacity		$ 100,000,000
Available additional revolving loan commitments		100,000,000
Payment of debt issuance costs		$ 600,000
Proceeds from credit facility	$ 50,000,000
Outstanding debt obligations			50,000,000		50,000,000		$ 0
Remaining borrowing capacity			48,000,000		48,000,000
Interest expense			$ 200,000		$ 200,000
Revolving Credit Facility \| Line of Credit \| Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage		0.15%
Revolving Credit Facility \| Line of Credit \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Variable rate, basis spread		0.125%
Revolving Credit Facility \| Line of Credit \| Minimum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Variable rate, basis spread		1.125%
Revolving Credit Facility \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage		0.225%
Revolving Credit Facility \| Line of Credit \| Maximum \| Base Rate
Line of Credit Facility [Line Items]
Variable rate, basis spread		0.50%
Revolving Credit Facility \| Line of Credit \| Maximum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Variable rate, basis spread		1.50%

Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($)			3 Months Ended		6 Months Ended
	Jul. 18, 2022	Jul. 01, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Feb. 28, 2017	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)			130,000	163,000
Payment of cash dividend (in dollars per share)			$ 0.24	$ 0.21	$ 0.48	$ 0.42
Cash dividend paid			$ 8,700,000	$ 7,700,000	$ 17,400,000	$ 15,300,000
Value of shares withheld					$ 21,038,000	$ 20,229,000
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly cash dividend, declared (in usd per share)	$ 0.24
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized purchase amount (up to)								$ 100,000,000
Repurchase program, additional amount authorized							$ 100,000,000
Repurchase of treasury shares (in shares)			286,700		708,700	0
Shares repurchased, average per share cost (in dollars per share)			$ 63.95		$ 79.87
Value remaining for repurchase			$ 16,200,000		$ 16,200,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)					0
Options vested and exercisable (in shares)			319,000		319,000
Options vested and exercisable, weighted average exercise price (in dollars per share)			$ 34.46		$ 34.46
Unrecognized compensation charge			$ 200,000		$ 200,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)					745,000
Nonvested shares outstanding (in shares)			1,393,000		1,393,000
Weighted average grant-date fair value (in usd per share)			$ 76.22		$ 76.22
Unrecognized non-cash equity-based compensation charge			$ 81,300,000		$ 81,300,000
Value of shares withheld					$ 21,000,000	$ 20,200,000
RSUs \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of shares forfeited in period			3,000,000
RSUs \| Subsequent Event \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value		$ 30,000,000
Vesting period		3 years
Performance Shares \| Subsequent Event \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value		$ 15,000,000

Stockholders’ Equity and Equity-Based Compensation - Summary of non-cash equity-based compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Non-cash equity-based compensation expense
Non-cash equity-based compensation	$ 7,043	$ 9,686	$ 14,869	$ 17,896
Stock options
Non-cash equity-based compensation expense
Non-cash equity-based compensation	(197)	177	(22)	352
RSUs
Non-cash equity-based compensation expense
Non-cash equity-based compensation	7,240	9,509	14,891	17,544
Cost of revenue
Non-cash equity-based compensation expense
Non-cash equity-based compensation	156	194	234	358
Sales and marketing
Non-cash equity-based compensation expense
Non-cash equity-based compensation	1,629	926	2,557	1,393
Product development
Non-cash equity-based compensation expense
Non-cash equity-based compensation	2,557	1,799	4,338	3,028
General and administrative
Non-cash equity-based compensation expense
Non-cash equity-based compensation	$ 2,701	$ 6,767	$ 7,740	$ 13,117

Revenue (Details) $ in Thousands	3 Months Ended		6 Months Ended
Revenue (Details) $ in Thousands	Jun. 30, 2022 USD ($) channel	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) channel	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of primary channels for content offerings \| channel	2		2
Total revenue	$ 206,872	$ 189,912	$ 406,004	$ 373,193
Disposal group deferred revenue			120,500
E-commerce
Segment Reporting Information [Line Items]
Total revenue	127,388	120,715	254,458	239,115
Enterprise
Segment Reporting Information [Line Items]
Total revenue	$ 79,484	$ 69,197	$ 151,546	$ 134,078

- Definition

+ References

+ Details

Other (Expense) / Income, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Nonoperating Income (Expense) [Abstract]
Foreign currency (loss) / gain	$ (2,495)	$ 1,277	$ (1,761)	$ (1,233)
Interest expense	(205)	0	(205)	0
Other	39	46	63	94
Total other (expense) / income	$ (2,661)	$ 1,323	$ (1,903)	$ (1,139)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rate, expense	14.40%	14.70%	16.90%	16.00%
Effective tax rate decrease due to windfall tax benefits associated with equity-based compensation	4.90%	5.30%	2.20%	4.00%
Effective tax rate, excluding discrete items	19.30%	20.00%	19.10%
Cash paid for income taxes			$ 12,700	$ 9,495

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 19,445	$ 29,454	$ 46,017	$ 58,968
Shares used to compute basic net income per share (in shares)	36,123	36,570	36,213	36,453
Dilutive potential common shares
Stock options (in shares)	169	242	201	233
Unvested restricted stock awards (in shares)	286	377	476	532
Shares used to compute diluted net income per share (in shares)	36,578	37,189	36,890	37,218
Basic net income per share (in dollars per share)	$ 0.54	$ 0.81	$ 1.27	$ 1.62
Diluted net income per share (in dollars per share)	$ 0.53	$ 0.79	$ 1.25	$ 1.58
Dilutive securities included in the calculation (in shares)	836	1,221	1,121	1,328
Anti-dilutive securities excluded from the calculation (in shares)	590	2	325	10

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 206,872	$ 189,912	$ 406,004	$ 373,193
Total long-lived tangible assets	52,549		52,549		$ 48,074
North America
Geographic revenue based on customer location and long-lived tangible assets
Revenue	85,896	68,954	165,839	$ 133,263
Total long-lived tangible assets	43,625		$ 43,625		$ 40,465
United States \| Revenue benchmark \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			38.00%	31.00%
United States \| Total long-lived tangible assets \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			77.00%		76.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Revenue	62,931	64,778	$ 125,484	$ 127,055
Total long-lived tangible assets	8,837		$ 8,837		$ 7,460
IRELAND \| Total long-lived tangible assets \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			13.00%		11.00%
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Revenue	58,045	$ 56,180	$ 114,681	$ 112,875
Total long-lived tangible assets	$ 87		$ 87		$ 149

Commitments and Contingencies - Narrative (Details)	Jun. 30, 2022 USD ($)
Other Commitments [Line Items]
Other obligations	$ 103,300,000
Maturity of unconditional purchase obligations
Remainder of 2022	30,600,000
2023	37,300,000
2024	28,500,000
2025	6,300,000
2026	600,000
Indemnifications
Maximum aggregate obligation and liability for customer	250,000
Indemnification Agreement
Indemnifications
Maximum possible loss per customer	$ 10,000