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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2013	Feb. 26, 2014	Jun. 28, 2013
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float	$ 0
Entity Aggregate Market Value of Shares Held by Nonaffiliates			$ 491,578,207
Entity Minimum Percentage Threshold for Ownership in Common Stock for Holders to be Excluded from the Calculation of Aggregate Market Value.			10.00%
Entity Common Stock, Shares Outstanding		35,072,692
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 155,355	$ 102,096
Short-term investments	54,429
Credit card receivables	2,083	1,373
Accounts receivable, net	6,081	1,738
Prepaid expenses and other current assets	19,809	2,008
Deferred tax assets, net	5,431	18,760
Total current assets	243,188	125,975
Property and equipment, net	20,256	5,255
Intangible assets, net	853	1,040
Goodwill	1,423	1,423
Deferred tax assets, net	10,720	13,239
Other assets	2,048	182
Total assets	278,488	147,114
Current liabilities:
Accounts payable	4,164	2,606
Accrued expenses	23,638	15,606
Contributor royalties payable	9,180	6,984
Deferred revenue	52,100	37,934
Term loan facility		6,000
Other liabilities	2,846	161
Total current liabilities	91,928	69,291
Other non-current liabilities	3,961	889
Total liabilities	95,889	70,180
Commitments and contingencies (Note 8)
Stockholders' equity/members' deficit:
Common stock, $0.01 par value; 200,000 shares authorized; 35,071 and 33,513 shares outstanding as of December 31, 2013 and December 31, 2012, respectively	351	335
Additional paid-in capital	127,443	48,282
Accumulated comprehensive income	9
Retained earnings/accumulated deficit	54,796	28,317
Total stockholders' equity/members' deficit	182,599	76,934
Total liabilities and stockholders' equity/members' deficit	$ 278,488	$ 147,114

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares outstanding	35,071	33,513

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 68,031	$ 59,558	$ 56,809	$ 51,117	$ 49,157	$ 42,260	$ 40,625	$ 37,574	$ 235,515	$ 169,616	$ 120,271
Operating expenses:
Cost of revenue	26,102	22,936	21,768	19,821	18,794	16,057	15,436	14,389	90,627	64,676	45,504
Sales and marketing	16,499	14,947	13,314	11,978	12,022	9,752	11,093	12,240	56,738	45,107	31,929
Product development	6,464	5,685	5,060	4,555	5,675	3,795	3,441	3,419	21,764	16,330	9,777
General and administrative	6,473	6,076	5,734	4,780	9,709	3,766	4,444	3,732	23,063	21,651	10,171
Total operating expenses	55,538	49,644	45,876	41,134	46,200	33,370	34,414	33,780	192,192	147,764	97,381
Income from operations	12,493	9,914	10,933	9,983	2,957	8,890	6,211	3,794	43,323	21,852	22,890
Other income (expense), net	24	20	20	(12)	(49)	(3)	2	3	52	(47)	10
Income before income taxes	12,517	9,934	10,953	9,971	2,908	8,887	6,213	3,797	43,375	21,805	22,900
Provision (benefit) for income taxes	4,660	3,740	4,090	4,406	(26,111)	146	141	86	16,896	(25,738)	1,036
Net income	7,857	6,194	6,863	5,565	29,019	8,741	6,072	3,711	26,479	47,543	21,864
Less:
Preferred interest distributed					2,950	2,263	1,688	2,100		9,000	7,144
Preferred interest accretion											4,058
Undistributed earnings (loss) to participating shareholder/members	21	18	22	19	(2,668)	(77)	(170)	(1,172)	80	(4,086)	(2,692)
Net income available to common shareholders/members	$ 7,836	$ 6,176	$ 6,841	$ 5,546	$ 28,737	$ 6,555	$ 4,554	$ 2,783	$ 26,399	$ 42,629	$ 13,354
Net income (loss) per basic share available to common shareholders/members:
Distributed (in dollars per share)					$ 0.27	$ 0.33	$ 0.24	$ 0.30		$ 1.14	$ 1.03
Undistributed (in dollars per share)	$ 0.22	$ 0.18	$ 0.20	$ 0.17	0.61	(0.02)	(0.02)	(0.17)	$ 0.78	0.65	(0.39)
Basic (in dollars per share)	0.22	0.18	0.20	0.17	0.88	0.31	0.22	0.13	0.78	1.79	0.64
Net income (loss) per diluted share available to common shareholders/members:
Distributed (in dollars per share)					0.27	0.33	0.24	0.30		1.13	1.03
Undistributed (in dollars per share)	0.22	0.18	0.20	0.16	0.61	(0.02)	(0.02)	(0.17)	0.77	0.66	(0.39)
Diluted (in dollars per share)	$ 0.22	$ 0.18	$ 0.20	$ 0.16	$ 0.88	$ 0.31	$ 0.22	$ 0.13	$ 0.77	$ 1.79	$ 0.64
Weighted average shares outstanding:
Basic (in shares)	34,935,495	33,692,876	33,471,679	33,398,797	32,497,727	20,849,242	20,849,242	20,849,242	33,878,494	23,785,299	20,849,242
Diluted (in shares)	35,619,474	34,280,656	34,040,934	33,851,843	32,681,570	20,849,242	20,849,242	20,849,242	34,426,009	23,833,223	20,849,242

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 26,479	$ 47,543	$ 21,864
Foreign currency translation gain	3
Unrealized gain on investments	6
Other comprehensive income	9	0
Comprehensive income	$ 26,488	$ 47,543	$ 21,864

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/MEMBERS' DEFICIT - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit/Retained Earnings	Common Membership Capital	Accumulated Deficit/Retained Earnings	Total Members' Deficit
Balance at Dec. 31, 2010						$ 5,699	$ (60,002)	$ (54,303)
Increase (Decrease) in Stockholders' Equity
Common members' distribution							(21,431)	(21,431)
Preferred members' interest accretion	$ (4,058)						(4,058)	(4,058)
Net income	21,864						21,864	21,864
Balance at Dec. 31, 2011						5,699	(63,627)	(57,928)
Increase (Decrease) in Stockholders' Equity
Common members' distribution							$ (27,000)	$ (27,000)
Conversion to corporation	29,871	$ 283	$ (36,114)		$ 71,401	$ (5,699)
Conversion to corporation (in shares)		28,338,281
Equity-based compensation	7,558		7,558
Issuance of common stock in connection with the initial public/secondary offering, net of issuance costs of $4,052 and $11,085 during 2013 and 2012 respectively	76,890	$ 52	76,838
Issuance of common stock in connection with the initial public/secondary offering, net of issuance costs of $4,052 and $11,085 during 2013 and 2012 respectively (in shares)		5,175,000
Net income	47,543				47,543
Balance at Dec. 31, 2012	76,934	$ 335	48,282		28,317
Balance (in shares) at Dec. 31, 2012		33,513,281
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	6,208		6,208
Offering costs in connection with initial public offering	(20)		(20)
Issuance of common stock in connection with the initial public/secondary offering, net of issuance costs of $4,052 and $11,085 during 2013 and 2012 respectively	64,948	$ 12	64,936
Issuance of common stock in connection with the initial public/secondary offering, net of issuance costs of $4,052 and $11,085 during 2013 and 2012 respectively (in shares)		1,150,000
Issuance of common stock in connection with employee stock option exercises	4,787	$ 3	4,784
Issuance of common stock in connection with employee stock option exercises (in shares)		312,807
Issuance of common stock in connection with employee stock purchase plan	1,913	$ 1	1,912
Issuance of common stock in connection with employee stock purchase plan (in shares)		94,894
Tax benefit from exercise of employee stock options	1,341		1,341
Foreign currency translation	3			$ 3
Unrealized gain (loss) on investments	6			6
Net income	26,479				26,479
Balance at Dec. 31, 2013	$ 182,599	$ 351	$ 127,443	$ 9	$ 54,796
Balance (in shares) at Dec. 31, 2013		35,070,982

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/MEMBERS' DEFICIT (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/MEMBERS' DEFICIT
Issuance of common stock in connection with the initial public/secondary offering, issuance costs	$ 4,052	$ 11,085

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 26,479	$ 47,543	$ 21,864
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,870	2,640	1,520
Deferred taxes	15,848	(31,300)	253
Non-cash equity based compensation	6,208	10,385	2,122
Excess tax benefit from the exercise of stock options	(1,341)
Bad debt reserve	519	326	256
Chargeback and sales refund reserve	355		40
Amortization of deferred financing fees	125	41	0
Changes in operating assets and liabilities:
Credit card receivables	(710)	(409)	(261)
Accounts receivable	(4,862)	(1,417)	(553)
Prepaid expenses and other current and non-current assets	(16,857)	113	(1,211)
Due from related party		168	(24)
Accounts payable and other liabilities	10,377	6,238	5,735
Contributors royalties payable	2,196	1,723	1,302
Income taxes payable			(316)
Deferred revenue	14,166	9,483	8,820
Net cash provided by operating activities	56,373	45,534	39,547
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(14,068)	(3,808)	(3,442)
Purchase of investments	(115,019)
Sale and maturities of investments	60,595
Acquisition of intangibles		(254)
Security deposit (payment)/receipt	(1,594)	(197)	23
Net cash used in investing activities	(70,086)	(4,259)	(3,419)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of common stock in follow-on offering	65,895
Net proceeds from issuance of common stock in initial public offering		81,811
Proceeds from exercise of stock options	6,700
Excess tax benefit from the exercise of stock options	1,341
Proceeds from term loan		12,000
Payment of term loan	(6,000)	(6,000)
Payment of term loan fee		(166)
Payment of offering fees	(967)	(4,921)
Members' distributions		(36,000)	(28,575)
Net cash provided by (used in) financing activities	66,969	46,724	(28,575)
Effect of foreign exchange rate changes on cash	3
Net increase in cash and cash equivalents	53,259	87,999	7,553
Cash and cash equivalents-Beginning	102,096	14,097	6,544
Cash and cash equivalents-Ending	155,355	102,096	14,097
Cash paid for:
Income taxes	14,194	4,845	1,225
Interest	34	$ 67
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Capital expenditures in accounts payable and other liabilities	$ 4,616
Preferred members' interest accretion			$ 4,058

Summary of Operations and Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Summary of Operations and Significant Accounting Policies

Summary of Operations and Significant Accounting Policies

(1) Summary of Operations and Significant Accounting Policies

Summary of Operations

Shutterstock, Inc. (the "Company" or "Shutterstock") operates an industry-leading global marketplace for commercial digital imagery. Commercial digital imagery consists of licensed photographs, illustrations and video clips that companies use in their visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and video content. The Company licenses commercial digital imagery to its customers. Contributors upload their digital imagery to the Company's website in exchange for a royalty payment based on customer download activity. The Company is headquartered in New York City with offices in London, Berlin, Chicago and San Francisco.

Principles of Consolidation

The consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Reorganization

In May 2012, in connection with the filing of a registration statement for the Company's initial public offering (the "IPO"), Shutterstock Images LLC, a New York limited liability company (the "LLC") formed Shutterstock, Inc., a Delaware corporation, as a wholly-owned subsidiary of the LLC. On October 5, 2012, the LLC reorganized, by way of a merger of the LLC with and into Shutterstock, Inc. with Shutterstock, Inc. surviving in the merger (the "Reorganization"). In connection with this Reorganization, the preferred and common membership interests in the LLC, including any interests that vested upon the Reorganization, were exchanged for an aggregate of 28,338,281 shares of Shutterstock, Inc. common stock.

Initial Public Offering

On October 16, 2012, the Company completed its IPO of 5,175,000 shares of common stock, including 675,000 shares sold as a result of the underwriters' exercise of their overallotment option, at a price of $17.00 per share. The IPO resulted in net proceeds to the Company of approximately $81,811 after deducting underwriting discounts and commissions, and before deducting total expenses incurred in connection with the offering of $4,927.

Follow-On Offering

On September 25, 2013, the Company completed a follow-on offering of 5,290,000 shares of its common stock, which included 690,000 shares of common stock sold by the Company and certain stockholders as a result of the underwriters' exercise of their option to purchase additional shares, at a price of $60.00 per share. The Company sold 1,150,000 shares of common stock in the offering and the selling stockholders sold 4,140,000 shares of common stock in the offering. The aggregate offering price for shares sold by the Company in the offering resulted in net proceeds to the Company of $65,895 after deducting underwriting discounts and commissions, and before deducting total expenses incurred in connection with the offering of approximately $947.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company's management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. The Company evaluates its significant estimates on an ongoing basis, including, but not limited to allowance for doubtful accounts, sales refund reserve, goodwill, intangible assets, non-cash equity based compensation, income tax provisions and for certain non-income tax accruals. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.

Sales, Value-Added and Use Taxes

Amounts charged to customers or paid on behalf of customers related to sales taxes, value-added taxes and other usage taxes are classified net of revenue. Where appropriate, the Company has accrued for these matters, which are reflected in the Company's consolidated financial statements. These accruals are subject to statute of limitations requirements and review by governmental authorities.

Concentration of Credit and Contributor Risk

At certain times, the Company's cash balances with any one financial institution may exceed Federal Deposit Insurance Corporation insurance limits. The Company believes it mitigates its risk by depositing its cash balances with financial institutions of high quality.

The Company's customers and contributors are located worldwide. The majority of the Company's customers purchase products by making electronic payments at the time of a transaction. The Company performs ongoing financial condition evaluations for its existing customers and performs credit evaluations for certain new customers. Concentration of credit risk is limited due to the Company's large number of diversified customers. No single customer accounted for or exceeded 10% of revenue for the years ended December 31, 2013, 2012 or 2011, respectively. As of December 31, 2013 and 2012, no single customer accounted for or exceeded 10% of credit card receivables. As of December 31, 2013, no single customer accounted for or exceeded 10% of accounts receivable, and as of December 31, 2012, two customers accounted for 33% of accounts receivable. The customers that accounted for more than 10% of the Company's accounts receivable balance as of December 31, 2012, accounted for less than 2% of total revenue for the years ended December 31, 2013 and 2012, respectively.

No single contributor accounted for or exceeded 10% of contributor royalties for the years ended December 31, 2013, 2012 and 2011, respectively.

Fair Value Measurements

The Company records its financial assets and liabilities at fair value. The accounting standard for fair value provides a framework for measuring fair value, and defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. The accounting standard establishes a three-tier hierarchy as follows: Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2—inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3—unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. Cash primarily consists of balances in checking, savings and money market accounts, which are recorded at cost and approximate fair value and are considered a Level 1 measurement based on bank reporting.

Short-Term Investments

Short-term investments consist of commercial paper and are classified as available-for-sale securities. As these securities mature in 90 days or less and are available to support current operations, the Company has classified all available-for-sale securities as short-term. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders' equity and in the consolidated statement of comprehensive income, while realized gains and losses, and other-than-temporary impairments, if any, are reported as a component of net income. For the periods presented, realized and unrealized gains and losses on investments were not material. An impairment charge, if any, is recorded in the consolidated statements of operations for declines in fair value below the cost of an individual investment that are deemed to be other than temporary. The Company assesses whether a decline in value is temporary based on the length of time that the fair market value has been below cost, the severity of the decline, as well as the intent and ability to hold, or plans to sell, the investment. We did not identify any of our short-term investments as other-than-temporarily impaired as of December 31, 2013. The Company had no short-term investments as of December 31, 2012.

Restricted Cash

The Company's restricted cash relates to security deposits for leased office locations. As of December 31, 2013, the Company had $243 of restricted cash recorded in prepaid expenses and other current assets that related to a leased office location that expires in 2014 and had $2,017 of restricted cash recorded in other assets that related to leased office locations that expire in 2015 and 2024, respectively. As of December 31, 2012, the Company had $243 of restricted cash recorded in prepaid expenses and other current assets that related to a leased office location that was scheduled to expire in 2013 but was then extended through January 2014 and had $188 of restricted cash recorded in other assets that related to leased office location that expires in 2015. The carrying value of restricted cash approximates fair value.

Credit Card Receivables

The Company's credit card receivables represent amounts due from third party credit card processors. Such amounts generally convert to cash within three to five days with little or no default risk.

Accounts Receivable and Allowance for Doubtful Accounts

The Company's accounts receivable are 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 the evaluation of the aging of its accounts receivable and on a customer-by-customer analysis of its high-risk customers. The Company's reserve contemplates its historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates. The following table presents the changes in the allowance for doubtful accounts (in thousands):

	Year Ended December 31,

	2013			2012			2011
Allowance for doubtful accounts:
Balance, beginning of period	$	249		$	256		$	—
Add: bad debt expense		519			326			256
Less: write-offs, net of recoveries and other adjustments		(143	)		(333	)		—


Balance, end of period	$	625		$	249		$	256

Deferred Financing Fees

The Company deferred and amortized certain financing costs related to its term loan facility. These costs were deferred and amortized over the term of the debt period. As of December 31, 2013 and December 31, 2012, the deferred financing fees balance was $0 and $125, respectively, which is included in prepaid and other current assets. Amortization of deferred financing costs amounted to $125 and $41 for the years ended December 31, 2013 and 2012. There was no amortization expense of deferred financing costs for the year ended December 31, 2011.

Property and Equipment

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


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

Capitalized Internal Use Software

The Company accounts for the cost of computer software developed or obtained for internal use of its application by capitalizing qualifying costs, which are incurred during the application development stage, and amortizing them over the software's estimated useful life. Costs incurred in the preliminary and post-implementation stages of the Company's products are expensed as incurred. The amounts capitalized include external direct costs of services used in developing internal-use software and payroll and payroll-related costs of employees directly associated with the development activities. The Company amortizes capitalized software over the expected period of benefit, which is currently three years, beginning when the software is ready for its intended use. For the years ended December 31, 2013, 2012 and 2011, the Company had gross capitalized costs of $768, $605 and $459, respectively, which is included in property and equipment and amortization expense of $194, $154 and $41, respectively, which is included in general and administrative expense. The Company's policy is to amortize such capitalized costs using the straight-line method over the estimated useful life.

Impairment of Long-Lived Assets

Long-lived assets, inclusive of definite useful life intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying value or the fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. There were no impairment charges in 2013, 2012 or 2011.

Goodwill and Intangible Assets

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

Revenue Recognition

All revenue, net of chargebacks and refunds, is generated from the license of digital content through subscription or usage based plans. The Company's three primary plans are: subscription plans, On Demand plans, and credit pack plans. The Company recognizes revenue when all of the following basic criteria are met: there is persuasive evidence of an arrangement, performance or delivery of services has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. The Company considers persuasive evidence of an arrangement to be an electronic order form, or a signed contract, which contains the fixed pricing terms. Performance or delivery is considered to have occurred upon the ratable passage of time for subscription plans, the download of digital content or the expiration of a contract period for which there are unused downloads or credits. Collectability is reasonably assured since most of the Company's customers purchase products by making electronic payments at the time of a transaction with a credit card. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of December 31, 2013 and 2012, the Company has recorded a chargeback allowance and sales refund allowance of $425 and $70, respectively, which is included in other liabilities. Collectability is assessed for customers who pay on credit based on a credit evaluation for new customers, when necessary, and transaction history with existing customers. Any cash received in advance of revenue recognition is recorded as deferred revenue.

Subscription plans range in length from thirty days to one year. Subscription plan revenues are recognized on a straight-line basis using a daily convention method over the plan term. On Demand plans are typically for a one-year term and permit the customer to download up to a fixed amount of digital content. On Demand revenues are recognized at the time the customer downloads the digital content on a per unit basis. Revenue related to unused digital content, if any, is recognized in full at the end of the plan term assuming no further Company obligation remains. Credit pack plans are generally for a one-year term and enable the customer to purchase a fixed number of credits which can then be utilized to pay for downloaded digital content. The number of credits utilized for each download depends on the digital content size and format. Credit pack revenue is recognized based on customer usage on a per credit basis as digital content is downloaded. Revenue related to unused credits, if any, is recognized in full at the end of the plan term assuming no further Company obligation remains. Most plans automatically renew at the end of the plan term unless the customer elects not to renew. The Company recognizes revenue from its three types of plans on a gross basis in accordance with the authoritative guidance on principal-agent considerations as the Company is the primary obligor in the arrangement, has control in establishing the product's price, performs a detailed review of the digital content before accepting it to its collection to ensure it is of high quality before it may be purchased by the customers, can reject contributor's images in its sole discretion, and has credit risk.

Customers typically pay in advance (or upon commencement of the term) via credit card, wire or check. Fees paid or invoiced in advance are deferred and recognized as described above. Customers that do not pay in advance are invoiced and are required to make payment under standard credit terms. The Company does not generally offer refunds or the right of return to customers. There are situations in which a customer may receive a refund but the determination is made on a case-by-case basis.

The Company also licenses digital content to customers through third party resellers. The Company contracts with third party resellers around the world to access markets where the Company does not have a significant presence. Third party resellers sell the Company's products directly to end-user customers and remit a fixed amount to the Company based on the type of plan sold. The terms of the reseller program indicate that the third party reseller is the primary obligor to the end-user customer and bears the risks and rewards as principal in the transaction. In assessing whether the Company's revenue should be reported on a gross or net basis with respect to our reseller program, the Company follows the authoritative guidance in ASC 605-45, "Principle Agent Considerations." The Company recognizes revenue net of reseller commission in accordance with the type of plan sold, consistent with the plan descriptions above. The Company generally does not offer refunds or the right of return to resellers.

Cost of Revenue

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

Contributor Royalties and Internal Sales Commissions

Contributor royalties are generally paid weekly or monthly. The Company expenses contributor royalties in the period during which a customer download occurs and includes the corresponding contributor royalties in cost of revenue. The Company advances certain contributor royalties which are initially deferred and recognized based on the contractual royalty rate or when the Company determines future recovery is not probable. For the year ended December 31, 2013, the Company deferred $3,419 in royalty advances which is included in prepaid expenses and other current assets. The Company amortized $510 in royalty advance expense which is included in cost of revenue. The Company did not defer any royalty advances and therefore did not amortize any royalty advance expense for the years ended December 31, 2012 and 2011.

Internal sales commissions are generally paid in the month following collection or invoicing of the commissioned receivable. Internal sales commission expense is included in sales and marketing expense. Internal sales commissions are deferred and recognized over the expected future revenue stream which is generally up to twelve months. For the years ended December 31, 2013, 2012 and 2011, the Company deferred $2,005, $2,023 and $651, respectively, in internal sales commissions which is included in prepaid expenses and other current assets and amortized $2,086, $1,649 and $597, respectively, in internal sales commission expense which is included in sales and marketing expense.

Product Development

The Company expenses product development costs as incurred, except for costs that are capitalized for certain software development projects that have demonstrated technological feasibility. Product development costs are primarily comprised of development personnel salaries, equipment costs as well as allocated occupancy costs and related overhead. For the years ended December 31, 2013, 2012 and 2011, the Company capitalized $163, $146 and $25, respectively, which is included in total capitalized software costs included in property and equipment.

Advertising Costs

The Company expenses the cost of advertising and promoting its products as incurred. Such costs totaled $34,090, $32,648 and $25,176 for the years ended December 31, 2013, 2012 and 2011, respectively, which are included in sales and marketing expense.

Deferred Rent

The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized and the actual payments made in accordance with the lease agreement is recognized as a deferred rent liability on the Company's balance sheet. As of December 31, 2013, the Company had recorded a deferred rent balance of $4,783, of which $2,406 is included in other liabilities and $2,377 is included in other non-current liabilities. As of December 31, 2012, the Company has recorded a deferred rent balance of and $122, of which $68 is included in other liabilities and $54 is included in other non-current liabilities.

Equity-Based Compensation

Between June 7, 2007 and October 5, 2012, the Company was organized as a limited liability company. Beginning in 2011, the Company granted equity rights similar to options under its Value Appreciation Rights Plan ("VAR Plan") in the form of value appreciation rights (the "VAR Plan awards"). Each VAR Plan award had an exercise price, a vesting period and an expiration date, in addition to other terms and conditions similar to typical equity option grant terms and conditions. The VAR Plan awards were subject to a time-based vesting requirement and a condition that a change of control occur in order to trigger a payment with respect to the VAR Plan awards. In connection with the Reorganization, all of the VAR Plan awards were exchanged for options to purchase an aggregate of 1,661,719 shares of common stock of Shutterstock, Inc. with only a time-based vesting requirement, which were granted pursuant to the Company's 2012 Omnibus Equity Incentive Plan (the "2012 Plan").

The Company measures and recognizes non-cash equity-based compensation expense for all equity-based payment awards made to employees based on estimated fair values. The value portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period. For awards with a change of control condition, an evaluation is made at the grant date and future periods as to the likelihood of the condition being met. Compensation expense is adjusted in future periods for subsequent changes in the expected outcome of the change of control conditions until the vesting date. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options and other equity-based awards granted pursuant to the 2012 Plan, stock purchased pursuant to the Employee Stock Purchase Plan ("2012 ESPP") and the VAR Plan awards, which are discussed further in Note 10, Equity-Based Compensation.

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

•

Fair Value of Common Stock/Membership Unit.  Prior to completion of the IPO, the Company's fair value of common ownership interest was estimated internally and approved by the Board of Managers ("BOM") because the Company was not publicly traded. The Company's intention upon granting VAR Plan awards was for the granted award to have exercisable price per unit that was not less than the per unit fair value of the Company's common equity on the date of grant. The valuations of the Company's common equity unit were prepared in accordance with the American Institute of Certified Public Accountants Statement on Standards for Valuation Services 1: Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset. The assumptions used in the valuation model were based on future expectations combined with the Company's judgment. In the absence of a public trading market, the Company exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of the common equity unit as of the date of each VAR Plan award grant. Some but not all of these factors included operating and financial performance, current business conditions and projections, the hiring of key personnel, the Company's history and introduction of new functionality and services, the Company's stage of development, the likelihood of achieving a liquidity event for the common ownership interests, any adjustment necessary to recognize a lack of marketability for our common ownership interests, the market performance of comparable publicly traded companies, and U.S. and global capital market conditions. The Company also obtained independent third party valuations on a periodic basis. After October 11, 2012, the date the Company's common stock began trading on the NYSE, the grant date fair value for stock-based awards is based on the closing price of the Company's common stock on the NYSE on the date of grant and fair value for all other purposes related to stock-based awards shall be the closing price of the Company's common stock on the NYSE on the relevant date.

•

Expected Term.  The expected term is estimated using the simplified method allowed under Securities and Exchange Commission ("SEC") guidance.

•

Volatility.  As the Company does not have a trading history for its common ownership interest pre-IPO or a significant range of its common stock post-IPO, the expected price volatility for the common ownership interest and common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the VAR Plan awards and stock options granted post-IPO. Industry peers consist of several public companies similar in size, stage of life cycle and financial leverage. The Company did not rely on implied volatilities of traded options in the industry peers' common stock because the volume of activity was relatively low. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of the Company's own common stock becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be utilized in the calculation.

•

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

•

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

If any of the assumptions used in the Black-Scholes model changes significantly, the fair value for future awards may differ materially compared with the awards granted previously. The awards granted pursuant to the 2012 Plan, the 2012 ESPP and VAR Plan are subject to a time-based vesting requirement. The majority of stock option awards granted under the 2012 Plan vest over four years. The 2012 ESPP provides for purchase periods approximately every six months and a participant must be employed on the purchase date to participate. The VAR Plan awards had a condition that a change of control (as defined in the VAR Plan) must occur for a payment to trigger with respect to the VAR Plan awards. In connection with the Company's Reorganization, all of the VAR Plan awards were exchanged for options to purchase shares of common stock of Shutterstock, Inc. As of December 31, 2011, no equity-based compensation expense had been recognized with respect to the VAR Plan awards because the qualifying event had not occurred. As a result of the completion of the IPO, the Company began recording share-based compensation expense using the accelerated attribution method, net of forfeitures, based on the grant date fair value of the VAR Plan awards that were exchanged for options to purchase shares of common stock of Shutterstock, Inc. as part of the Company's Reorganization.

For any equity-based awards that qualified for liability classification pre-IPO, the Company has elected to use the intrinsic value method to value the common membership interest in accordance with authoritative guidance on stock compensation. See Note 10, Equity-Based Compensation, for further information.

Income Taxes

The Company filed its income tax returns as a limited liability company and was taxed as a "pass through" partnership for federal and state income tax purposes for all periods prior to its Reorganization on October 5, 2012. For all periods prior to the Reorganization, the Company recognized no federal and state income taxes, as the members of the LLC, and not the Company itself, were subject to income tax on their allocated share of the Company's earnings. However, the Company was subject to taxation on allocable portions of its net income or other taxes based on various methodologies employed by taxing authorities in certain localities. The Company generally made monthly dividend distributions to its members under the terms of the LLC's operating agreement, subject to the Company's operating cash needs.

Effective with the Reorganization, the Company became a Delaware corporation, and therefore became subject to federal and state income tax expense beginning October 6, 2012. As a result of this tax status change, the Company recorded an incremental net deferred tax asset and a one-time non-cash tax benefit of approximately $28,811 in the fourth quarter of the fiscal year ended December 31, 2012.

The Company filed tax returns as a partnership for the period from January 1, 2012 through October 5, 2012 and filed tax returns as a corporation for the period from October 6, 2012 through December 31, 2012 and will continue to do so for all periods and any new tax jurisdictions thereafter. Significant management judgment is required in projecting ordinary income in order to determine the Company's estimated effective tax rate.

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

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

The Company is subject to certain compliance requirements for non-income taxes, value-added and sales-based taxes. Where appropriate, the Company has made accruals for these matters, which are reflected in the Company's consolidated financial statements.

Net Income Per Share

Basic net income per share is computed by dividing the net income attributable to common shareholders/members by the weighted average number of common shares outstanding during the period. The Company applies the two-class method for calculating and presenting income per share. Under the two-class method, net income is allocated between shares of common stock and other participating securities based on their contractual participating rights to share in the earnings as if all of the earnings for the period have been distributed. Participating securities are defined as securities that participate in dividends with common stock according to a pre-determined formula or a contractual obligation to share in the income of the entity. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, are excluded from weighted average number of common shares outstanding. Undistributed net income (loss) for a given period is apportioned to participating members based on the weighted-average number of each class of securities outstanding during the applicable period as a percentage of the combined weighted-average number of these securities outstanding during the period. Income available to common shareholders/members is computed by deducting dividends paid to preferred members, accretion to redemption value on preferred members shares, less income allocated to participating securities including unvested shares for the restricted award holder since these unvested shares have participating rights. See Note 10, Equity-Based Compensation, for further discussion.

Diluted net income per share is computed by dividing the net income available to common shareholders/members adjusted for any changes in income that would result from the assumed conversion of the potential common shares by the weighted average common shares outstanding and all potential common shares, if they are dilutive. Diluted net income available to common shareholders/members for the years ended December 31, 2013 and 2012 includes the effect of 1,787,606 and 1,789,318 shares, respectively, while 193,040 and 106,500 shares, respectively, were excluded since they were anti-dilutive. The Company had no assumed shares available to purchase for the year ended December 31, 2011.

A reconciliation of assumed exercised shares used in calculating basic and diluted net income (loss) share available to common shareholders/members follows:

	Year Ended December 31,

	2013		2012		2011
Basic		33,878,494		23,785,299		20,849,242
Stock options and employee stock purchase plan shares		508,935		47,924		—
Unvested restricted stock awards		38,580		—		—


Diluted		34,426,009		23,833,223		20,849,242

Segment Reporting

The Company has identified three operating segments. These three operating segments have been aggregated into one reportable segment based on the aggregation criteria within the authoritative guidance on segment reporting. The Company considered the similarity of the product sold, the distribution processes involved, targeted customers and economic characteristics among the three operating segments in its aggregation criteria evaluation. The operating segments share operational support functions such as sales, marketing, public relations, various product development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology.

The following represents our geographic revenue based on customer location:

	Year Ended December 31,

	2013		2012		2011
North America	$	84,754	$	59,963	$	40,536
Europe		84,644		62,943		47,967
Rest of the world		66,117		46,710		31,768


Total revenue	$	235,515	$	169,616	$	120,271

Included in North America is the United States which comprises 32%, 32%, and 30% of total revenue for years ended December 31, 2013, 2012, and 2011, respectively. No other country accounts for more than 10% of the Company's revenue in any period. All long-lived assets are located in North America.

Foreign Currency Transactions

During the year ended December 31, 2013, the Company established foreign subsidiaries in various countries around the world and as a result the financial statements of its newly created foreign subsidiaries are reported in the applicable foreign currencies (functional currencies). Financial information is translated from the applicable functional currency to the U.S. Dollar (the reporting currency) for inclusion in the Company's consolidated financial statements. Income, expenses and cash flows are translated at average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2012 and 2011, the Company had determined that the U.S. Dollar was its functional currency worldwide and therefore did not have any foreign currency translation adjustment. During the years ended December 31, 2013, 2012 and 2011, the Company's foreign currency transaction activity was immaterial to the financial statements.

Comprehensive Income (Loss)

Comprehensive income (loss) includes certain changes in stockholders' equity that are excluded from net income (loss) such as cumulative foreign currency translation adjustments and unrealized gains or losses on marketable securities. As of December 31, 2013, accumulated other comprehensive income (loss) of $9 was comprised of foreign currency translation gain in the amount of $3 and unrealized gain on investments in the amount of $6. As of December 31, 2012, the Company had no accumulated other comprehensive income.

Recently Issued Accounting Standard Updates

In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update provides guidance on the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, exists. The guidance from this update is effective prospectively beginning January 1, 2014. The Company does not anticipate that the adoption of this standard will have a material impact on our financial condition or results of operations.

In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The objective of ASU 2013-05 is to resolve the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. The guidance from this update is effective prospectively beginning January 1, 2014. The Company does not anticipate that the adoption of this standard will have a material impact on our financial condition or results of operations.

Short Term Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Short Term Investments and Fair Value Measurements

Short Term Investments and Fair Value Measurements

(2) Short-Term Investments and Fair Value Measurements

Short-term investments are summarized as follows:

	As of December 31, 2013

	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Market Value
Commercial Paper	$	54,431	$	—	$	(2	)	$	54,429


Total	$	54,431	$	—	$	(2	)	$	54,429

The Company had no short-term investments as of December 31, 2012.

	As of December 31, 2013

	Aggregate Fair Value		Level 1		Level 2		Level 3
Commercial Paper	$	54,429	$	—	$	54,429	$	—


Total	$	54,429	$	—	$	54,429	$	—

The Company's investments classified as a level 2 are priced using quoted market prices for identical assets which are subject to infrequent transactions. The Company had no short-term investments as of December 31, 2012. Cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued expenses and deferred revenue carrying amounts approximate fair value because of the short maturity of these instruments. The Company's non-financial assets, which include property and equipment, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required and the Company is required to evaluate the non-financial asset for impairment, a resulting asset impairment would require that the non-financial asset be recorded at the fair value.

- 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

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets

Goodwill and Intangible Assets

(3) Goodwill and Intangible Assets

The Company's goodwill balance is attributable to its Bigstock reporting unit and is tested for impairment at least annually on October 1 or upon a triggering event. There have been no changes in the carrying amount of goodwill through December 31, 2013.

Intangible assets consist of the following as of December 31, 2013 and 2012:

	As of December 31, 2013

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)
Amortizing intangible assets:
Customer relationships	$	600	$	(600	)	$	—		4
Trade name		400		(119	)		281		14
Contributor content		450		(127	)		323		15
Domain name		86		(9	)		77		15
Patents		193		(21	)		172		17


Total	$	1,729	$	(876	)	$	853

	As of December 31, 2012

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)
Amortizing intangible assets:
Customer relationships	$	600	$	(486	)	$	114		4
Trade name		400		(91	)		309		14
Contributor content		450		(98	)		352		15
Non-compete agreement		100		(100	)		—		3
Domain name		86		(3	)		83		15
Patents		193		(11	)		182		17


Total	$	1,829	$	(789	)	$	1,040

During the first quarter of 2012, the Company acquired patents for $193, which will be amortized over sixteen to nineteen years. The patents were put into service in April 2012. During the third and fourth quarters of 2012, the Company acquired domain names for $10 and $50, respectively. These domain names were put into service in the same period as purchased and will be amortized over fifteen years. Amortization expense related to the intangible assets was $187, $243 and $244 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company also determined that there was no indication of impairment for the intangible assets for all periods presented. Estimated amortization expense for the next five years is: $78 in each fiscal year 2014 through 2018 and $463 thereafter.

The Company performed its annual goodwill assessment on October 1, 2013 and concluded that the fair value of its reporting unit is more than its carrying amount, and therefore no adjustment to the carrying value of goodwill was necessary. There were no impairments of goodwill in any of the periods presented in the consolidated financial statements.

- Definition

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

+ References + Details

Property and Equipment

12 Months Ended

Dec. 31, 2013

Property and Equipment

Property and Equipment

(4) Property and Equipment

Property and equipment is summarized as follows:

	December 31,

	2013			2012
Computer equipment and software	$	14,108		$	8,971
Furniture and fixtures		2,588			806
Leasehold improvements		10,669			484


Property and equipment		27,365			10,261
Less: accumulated depreciation		(7,109	)		(5,006	)


Property and equipment, net	$	20,256		$	5,255

Depreciation and amortization expense amounted to $3,683, $2,397 and $1,276, for the years ended December 31, 2013, 2012 and 2011, respectively. Depreciation and amortization expense is included in cost of revenue and general and administrative expense based on the nature of the asset.

Accrued Expenses

12 Months Ended

Dec. 31, 2013

Accrued Expenses

Accrued Expenses

(5) Accrued Expenses

Accrued expenses consisted of the following:

	December 31,

	2013		2012
Accrued compensation	$	6,379	$	4,246
Royalty tax withholdings		5,305		4,644
Accrued construction costs		4,501		—
Non-income taxes		3,994		3,567
Professional fees		605		469
Accrued marketing		475		588
Other accrued expenses		2,379		2,092


Total accrued expenses	$	23,638	$	15,606

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes

Income Taxes

(6) Income Taxes

The Company's geographical breakdown of its income before income taxes is as follows:

	Year Ended December 31,

	2013		2012		2011
Domestic	$	43,375	$	21,805	$	22,900
Foreign		—		—		—


Income before income taxes	$	43,375	$	21,805	$	22,900

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

	Year Ended December 31,

	2013		2012			2011
Current:
Federal provision	$	949	$	4,329		$	—
State & local provision		98		1,233			723
Foreign provision		—		—			—
Deferred:
Federal (benefit)		14,885		(29,772	)		—
State & local provision (benefit)		964		(1,528	)		253
Foreign provision (benefit)		—		—			—


Provision (benefit) for income taxes	$	16,896	$	(25,738	)	$	976

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

	Year Ended December 31,

	2013			2012			2011
US income tax at federal statutory rate		35.0	%		35.0	%		—	%
State and local taxes, net of federal benefit		2.3	%		2.8	%		4.0	%
Foreign rate differential		—	%		—	%		—	%
Benefit from change in tax status		—	%		(31.4	)%		—	%
LLC income not subject to federal and state tax		—	%		(131.8	)%		—	%
Non-deductible—restricted stock		1.3	%		7.3	%		—	%
Non-deductible—other		0. 4	%		0.3	%		0.5	%


Total provision (benefit) for income taxes		39.00	%		(117.8	)%		4.5	%

Effective with the Reorganization, the Company became a Delaware corporation, and therefore became subject to federal and state tax expense beginning October 6, 2012. As a result of this tax status change, the Company recorded an incremental net deferred tax asset and a one-time non-cash tax benefit of approximately $28,811.

The Company's tax effects of temporary differences and tax carryforwards that give rise to significant portions of the deferred tax assets are presented below:

	Year Ended December 31,

	2013			2012
Deferred tax assets:
Intangible amortization	$	13,235			14,861
Non-income tax reserve		2,376			2,576
Non-cash equity-based compensation		2,159			1,136
Deferred revenue		—			14,237
Deferred rent		1,784			6
Other liabilities		932			378


Deferred tax assets		20,486			33,194
Deferred tax liabilities:
Depreciation and amortization		(4,335	)		(1,195	)


Net deferred tax assets	$	16,151		$	31,999

It is the Company's practice and intention to indefinitely reinvest the earnings of its foreign subsidiaries in those operations. As of December 31, 2013, the excess of the amount for financial reporting over the tax basis of investment in these foreign subsidiaries is insignificant and the unrecognized deferred tax liability is not material.

The following table summarizes changes to the Company's unrecognized tax benefits as follows:

	Year Ended December 31,

	2013			2012		2011
Balance of unrecognized tax benefits at January 1	$	805		$	60	$	—
Gross additions for tax positions for prior years		8			18		—
Gross additions for tax positions for current year		1,056			727		60
Gross reductions for tax positions of prior years		(369	)		—		—
Gross expirations		—			—		—
Gross settlements		—			—		—


Balance of unrecognized tax benefits at December 31	$	1,500		$	805	$	60

During the years ended December 31, 2013, 2012 and 2011, the Company recorded reserves for uncertain tax benefits in the amount of $1,064, $745 and $60, respectively, a portion of which relates to tax refund claims. To the extent these unrecognized tax benefits are ultimately recognized, the Company's effective tax rate may be impacted in future periods in the amount of $1,229. The liability for unrecognized tax benefits is included in other non-current liabilities. The Company has no on-going income tax examinations. The Company is no longer subject to US federal or state and local tax examinations by tax authorities for years before 2009. The Company does not anticipate significant changes to its uncertain tax positions through the next fiscal year.

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 accrued interest and penalties in the amount of $113 related to unrecognized tax benefits for the year ended December 31, 2013. The Company did not accrue any interest or penalties related to unrecognized tax benefits for the years ended December 31, 2012 and 2011.

The Company filed Form 3115, Application for Change in Method of Accounting, with the Internal Revenue Service ("IRS") during the third quarter of 2013, to change its tax accounting method for revenue from a cash basis to accrual basis for years beginning after December 31, 2012. As a result, the Company will defer revenue on its 2013 and subsequent tax returns until performance or delivery thereby deferring taxable income. In general, the Company will eventually pay taxes with respect to the deferred revenue when the related revenue is performed or delivered in the future. While the change did not impact the provision for income tax, it resulted in a reclassification of approximately $17,300 between current deferred tax assets and prepaid and other current assets in the third quarter period of 2013.

Deferred tax assets relating to employee stock based compensation deductions were reduced to reflect exercises of non-qualified stock option grants. Some exercises of non-qualified stock option grants resulted in tax deductions in excess of previously recorded benefits resulting in a "windfall". Although these additional deductions are reported on the corporate tax return and resulted in a net operating loss ("NOL"), these related tax benefits were not recognized for financial reporting purposes. These windfalls will not be recognized until the related deductions result in a reduction of taxes payable and cash tax payments. Accordingly, since the tax benefit does not reduce our current taxes payable, these tax benefits were not reflected in deferred tax assets for financial reporting purposes as of December 31, 2013. Such benefits included in NOLs but not reflected in deferred tax assets were approximately $7,800 as of December 31, 2013. These NOLs will expire if not used by 2033.

Term Loan Facility	12 Months Ended
Term Loan Facility	Dec. 31, 2013
Term Loan Facility
Term Loan Facility	(7) Term Loan Facility On September 21, 2012, the Company entered into a Loan and Security Agreement that provided for a $12,000 term loan facility, which the Company refers to as the term loan facility. On December 24, 2012, the Company paid down $6,000 of the term loan facility. On March 25, 2013, the Company paid off the remaining $6,000 of the loan facility. At December 31, 2013 and December 31, 2012, the Company recorded accrued interest in the amount of $0 and $3, respectively, which is included in accrued expenses. The Company capitalizes costs directly associated with acquiring third party financing. During the year ended December 31, 2013, the Company accelerated and recognized $125 as a result of paying off the term loan facility. As of December 31, 2012, deferred financing costs, net of accumulated amortization were $125. The Company was in compliance with the financial covenants and other covenants applicable to it under the term loan facility prior to paying off the term loan facility on March 25, 2013.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies.

Commitments and Contingencies

(8) Commitments and Contingencies

The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases for the years ended December 31, 2013, 2012 and 2011 was approximately $2,997, $1,799 and $1,113, respectively. Some leases have defined escalating rent provisions, which are expensed over the term of the related lease on a straight-line basis commencing with the date of possession. Any rent allowance or abatement is netted in this calculation. All leases require payment of real estate tax and operating expense increases.

On March 21, 2013, the Company entered into an operating lease agreement to lease new office facilities in New York, New York. The Company took possession of the premises during the third quarter of 2013, and as a result, the lease commenced. The Company also entered into a letter of credit in the amount of $1,829 as a security deposit for the leased facilities. The letter of credit was collateralized by $1,829 of cash as of December 31, 2013, and as such, is considered to be restricted cash and is included in other assets on the consolidated balance sheet.

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2013 are as follows:

Year Ending December 31	Operating Leases

2014	$	1,178
2015		3,974
2016		3,717
2017		3,659
2018		3,659
Thereafter		26,947


Total minimum lease payments	$	43,134

Capital Expenditures

As of December 31, 2013, the Company had committed to purchase approximately $2,500 of data server equipment and $3,700 related to completion of its new office facility.

Unconditional Purchase Obligations

As of December 31, 2013, the Company had unconditional purchase obligations in the amount of $5,864, which consisted primarily of contracts related to infrastructure services and contractual commitments for software licenses and marketing services. As of December 31, 2013, the Company's unconditional purchase obligations for the years ending December 31, 2014, 2015 and 2016 are $3,454, $1,845 and $565, 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 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, as such, no material reserves related to litigation.

Indemnifications

In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of Company's intellectual property warranties for damages to the customer directly attributable to the Company's breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of the modifications made by the customer, or the context in which an image is used. The standard maximum aggregate obligation and liability to any one customer for all claims is limited to $10. The Company offers certain of its customers greater levels of indemnification, including unlimited indemnification. As of December 31, 2013 and 2012, the Company has recorded no liabilities related to indemnification obligations in accordance with the authoritative guidance for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary.

Employment Agreements and Indemnification Agreements

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

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2013
Employee Benefit Plans
Employee Benefit Plans	(9) Employee Benefit Plans The Company has a 401(k) defined contribution plan ("401(k) Plan") and provides for annual discretionary employer matching contributions not to exceed 3% of employees' compensation per year. Matching contributions also are fully vested and non-forfeitable at all times. The Company recorded employer matching contributions of $615, $412 and $221 for the years ended December 31, 2013, 2012 and 2011, respectively.

Equity-Based Compensation

12 Months Ended

Dec. 31, 2013

Equity-Based Compensation

Equity-Based Compensation

(10) Equity-Based Compensation

2012 Omnibus Equity Incentive Plan

On October 10, 2012, the Company's 2012 Plan became effective. The 2012 Plan provides for the grant of incentive stock options to Company employees, and for the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares to employees, directors and consultants. The maximum aggregate number of shares that may be issued under the 2012 Plan is 6,750,000 shares of common stock. The number of shares available for issuance under the 2012 Plan will be increased annually commencing January 1, 2013 by an amount equal to the lesser of 1,500,000 shares of common stock, 3% of the outstanding shares of common stock as of the last day immediately preceding fiscal year, or such other amount as determined by the Company's board of directors. Any awards issued under the 2012 Plan that are forfeited by the participant, will become available for future grant under the 2012 Plan. In connection with the Company's reorganization to a corporation, the VAR Plan awards were exchanged for options to purchase shares of common stock of Shutterstock, Inc. granted pursuant to the Company's 2012 Plan.

Employee Stock Purchase Plan

On October 10, 2012, the Company's 2012 ESPP became effective. The 2012 ESPP provides participating employees with the option to purchase common stock through payroll deductions of up to 15% of eligible compensation and a maximum purchase of 1,000 shares during each offering period. The common stock is purchased at 85% of the lower of the fair market value of common stock on (1) the first trading day of the offering period, or (2) the last day of the offering period. The offering periods generally start on the first trading day on or after June 1 and December 1 of each year; however, the first such offering period commenced on October 10, 2012, the date the Company's Registration Statement was declared effective. An employee will not be granted rights to purchase common stock if an employee immediately after the grant would own stock possessing 5% or more of the total combined voting power or value of all classes of the Company's capital stock or holds rights to purchase stock under all of the Company's employee stock purchase plans that would accrue at a rate that exceeds $25 worth of stock for each calendar year. The Company has reserved 2,000,000 shares for issuance under the 2012 ESPP. The number of shares available for issuance under the 2012 ESPP provides for an annual increase commencing January 1, 2013 by an amount equal to the lesser of 1,000,000 shares of common stock, 3% of the outstanding shares of our common stock as of the last day immediately preceding fiscal year, or such other amount as determined by the Company's board of directors. As of December 31, 2013, 94,894 shares have been issued under the 2012 ESPP.

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

	Year Ended December 31, 2013

Expected term (in years)	0.50	0.64
Volatility	49% - 50%	49	%
Risk-free interest rate	0.08% - 0.10%	0.15	%
Dividend yield	—%	—	%

The Company has recognized a non-cash stock-based compensation expense of $588 and $134, net of estimated forfeitures, in connection with the 2012 ESPP for the years ended December 31, 2013 and 2012, respectively. There was no non-cash stock-based compensation in connection with the 2012 ESPP for the year ended December 31, 2011.

Value Appreciation Rights Plan

Between June 7, 2007 and October 5, 2012, the Company was organized as a limited liability company. Beginning in 2011, the Company granted equity rights similar to options under its VAR Plan in the form of value appreciation rights. Each VAR Plan award had an exercise price, a vesting period and an expiration date, in addition to other terms and conditions similar to typical equity option grant terms and conditions. For the convenience of communicating the issuance of VAR Plan awards to employees, the BOM designated a total of 3,000,000 notional units for the VAR Plan to represent 10% of the Company's overall interest. The VAR Plan awards were subject to a time-based vesting requirement and a condition that a change of control occur for a payment to trigger with respect to the VAR Plan awards. Payment could occur in the form of cash, units or other securities at the discretion of the BOM and are equal to the appreciation in value over the participant's grant date price. The determination of the type of payment was subject to the discretion of the Company and not the holder. Additionally, the Company has never settled any VAR units with cash. As a result, the VAR units were accounted for as equity awards. Given the change-of-control condition, there was no equity-based compensation charge recorded for the year ended December 31, 2011. In connection with the Reorganization, all of the VAR Plan awards were exchanged for options to purchase an aggregate of 1,661,719 shares of common stock of Shutterstock, Inc. with only a time-based vesting requirement, which were granted pursuant to the Company's 2012 Plan.

The Company's VAR Plan awards were made in the form of notional units and were exchanged for options to purchase shares of common stock of Shutterstock, Inc. upon the Reorganization. The following is a summary of these awards and weighted average exercise price per option/notional unit:

			Weighted Average Exercise Price

Units outstanding at December 31, 2011	1,344,500		$	15.10
Options/Units granted	418,000			19.38
Options/Units exercised	—			—
Options/Units cancelled or forfeited	(70,218	)		21.15


Options outstanding at December 31, 2012	1,692,282		$	16.11
Options granted	552,850			49.97
Options exercised	(312,807	)		15.30
Options cancelled or forfeited	(70,564	)		22.29


Options outstanding at December 31, 2013	1,861,761		$	26.09




Vested and exercisable at December 31, 2013	574,204		$	15.97

The intrinsic value of the total stock options outstanding at December 31, 2013 and 2012 was approximately $107,100 and $16,700, respectively. The intrinsic value of the total stock options vested and exercisable at December 31, 2013 and 2012 was approximately $38,900 and $4,600, respectively. No stock options expired during the years ended 2012.

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2013 and 2012:

	Year Ended December 31, 2013	Year Ended December 31, 2012

Expected term (in years)	6.3	5.2 - 6.3
Volatility	50%	49%
Risk-free interest rate	1.0% - 2.3%	1.0% - 1.6%
Dividend yield	—%	—%

Following the Reorganization, the VAR Plan awards were exchanged for options to purchase shares of the Company's common stock having the same time-based vesting schedules, which range from one to six years. The VAR Plan awards that were granted and outstanding as of the Reorganization date were exchanged for options to purchase an aggregate of 1,661,719 shares of common stock of Shutterstock, Inc. The Company recognized non-cash equity-based compensation expense of $4,507, net of forfeitures, in connection with the vesting of stock options during the year ended December 31, 2013. As a result of the Reorganization, the Company recognized a non-cash stock-based compensation expense of $2,412, net of estimated forfeitures, in connection with a one-time acceleration charge as a result of the removal of the change of control condition during the year ended December 31, 2012. Since the Reorganization through December 31, 2012, the Company has also recognized a non-cash stock-based compensation expense of $618, net of estimated forfeitures, in connection with the normal service vesting of stock options.

As of December 31, 2013, the total unrecognized compensation charge related to 2012 Plan non-vested options is approximately $16,400, which is expected to be recognized through fiscal year 2017.

Profits Interest Awards

On November 1, 2007, the Company entered into a Profits Interest Grant and Repurchase Agreement (a "Profits Interest Agreement") with an employee of the Company whereby the employee received a 0.4% membership interest in the Company in consideration of future services to be rendered over a forty-eight month period starting on January 1, 2008. The Profits Interest Agreement terms stipulated that the executive would have no rights to allocations or distributions relating to the Company's operating profits. Only upon a Liquidation of the Company, as defined in the Company's operating agreement, would the executive be entitled to operating profits of the Company. In connection with the Reorganization, this membership interest in the LLC was exchanged for shares of the Company's stock, which do not contain a liquidation condition. The award was determined to meet the characteristics of an equity-based award and was measured at fair value on the grant date. Based on the evaluation of the change of control condition in effect on the grant date and through each subsequent reporting period as to the probability that the change of control condition will be achieved, the Company did not record a compensation charge for this award during the year ended December 31, 2011. Upon consummation of the Reorganization and in connection with the removal of the change of control condition from the Profits Interest Agreement entered with the Company employee, the award was considered vested and the Company recognized a non-cash stock-based compensation expense of $509, which is included in general and administrative expense, during the year ended December 31, 2012. There is no recognized compensation charge during the year ended December 31, 2013 and no unrecognized compensation charge at December 31, 2013 related to this award.

Restricted Stock and Restricted Stock Units Awards

On August 17, 2010, the Company entered into a Profits Interest Agreement with an executive whereby the Company issued a membership interest in the Company in consideration of future services to be rendered. The Profits Interest Agreement terms stipulated that the executive would have no rights to allocations or distributions relating to the Company's operating profits. Only upon a Liquidation of the Company, as defined in the Company's operating agreement, would the executive be entitled to operating profits of the Company. In connection with the Reorganization, this membership interest in the LLC was exchanged for restricted and unrestricted shares of the Company's stock, which did not contain a liquidation condition. The Profits Interest Agreement was effective as of April 5, 2010 and entitled the executive to an aggregate amount of 4% of any liquidation of the Company's in excess of $300,000. The Profits Interest Grant was to vest over a six year period. The Profits Interest Agreement also contained a put feature whereby the executive had the option to put back to the Company up to 10% annually of any vested portion of the membership interest at the fair value on the date the executive would sell the vested interest back to the Company. Since the put feature did not subject the executive to the typical risks of stock ownership, the membership interest was classified as a liability and recorded utilizing the intrinsic method. The Company's process for determining the fair value of the awards included consideration of third party valuation reports and the fair value determined served as the basis for calculating the compensation charge. The Company recorded a compensation charge of $0, $2,827 and $2,122, which is included in general and administrative expense, during the years ended December 31, 2013, 2012 and 2011, respectively. This liability was re-measured each reporting period until a Liquidation occurred. Upon consummation of the Reorganization, the vested portion of the profits interest was exchanged for shares of common stock of Shutterstock, Inc. and the liability in the amount of $5,147 was re-classed to equity. The unvested portion was exchanged for shares of restricted stock having the same vesting terms as the profits interest. The Amended and Restated Restricted Stock Agreement entered into by the Company with the executive governs the terms of the restricted stock. Pursuant to the terms of the Amended and Restated Restricted Stock Agreement, 50% of the then-outstanding shares of restricted stock held by the executive vested and were released from the Company's right to acquire such shares upon the effectiveness of the Company's Registration Statement on October 10, 2012. The Company recognized a non-cash stock-based compensation expense of $3,627, which is included in general and administrative expense, in connection with a one-time acceleration charge for the vesting of 50% of the unvested portion of the restricted stock award based on the exchange date fair value during the year ended December 31, 2012. The Company recognized non-cash equity-based compensation expense of $1,036 during the year ended December 31, 2013 in connection with the normal vesting of restricted stock. Additionally, the Company recognized a non-cash stock-based compensation expense of $258, which is included in general and administrative expense, since the Reorganization date through December 31, 2012 as a result of the restricted stock's normal service vesting.

On June 3, 2013, the Company issued 10,000 restricted stock units pursuant to the 2012 Plan. The restricted stock units vest 25% on the first anniversary of the relevant vesting commencement date and the remaining 75% vest quarterly over three years thereafter. The restricted stock units are accounted for as equity awards and expensed based on the fair value on the date of grant over the four year vesting period. The Company recognized non-cash equity-based compensation expense of $77 during the year ended December 31, 2013 in connection with the normal vesting of restricted stock units. There was no non-cash equity-based compensation expense related to restricted stock units during the years ended December 31, 2012 and 2011.

As of December 31, 2013, the total unrecognized compensation charge related to the restricted stock/restricted stock units is approximately $2,700, which is expected to be recognized through fiscal 2017.

The following table summarizes non-cash equity-based compensation expense included in the Company's statement of operations for the years ended December 31, 2013, 2012 and 2011:

	Year Ended December 31,

	2013		2012		2011
Cost of revenue	$	437	$	219	$	—
Sales and marketing		1,296		783		—
Product development		1,493		1,696		—
General and administrative		2,982		7,687		2,122


Total	$	6,208	$	10,385	$	2,122

Members' Equity and Stockholders' Equity

12 Months Ended

Dec. 31, 2013

Members' Equity and Stockholders' Equity

Members' Equity and Stockholders' Equity

(11) Members' Equity and Stockholders' Equity

Common Members' Equity

Prior to the Reorganization, common members' equity consisted of common membership interests. Only certain members had voting rights as designated in the LLC's Operating Agreement with respect to any action presented for a vote of the Company's members and only certain members were entitled to profits interest distributions from the Company's earnings. Common membership was not transferable without prior consent from the Company's BOM.

Redeemable Preferred Members' Equity

On June 6, 2007, prior to the Reorganization, the Company's then sole shareholder sold 25% of the common members' equity to outside investors for an aggregate purchase price of $60,000. On February 28, 2008, the outside investors paid a purchase price adjustment in the amount of $1,800 to the selling member as a result of the Company achieving an EBITDA Target as defined in the purchase agreement. The outside investors had the same rights and terms as common members' equity holders except for a liquidation preference and a put preference. The put preference provided the outside investors with the option to redeem their investment for cash with proper notice to the Company on June 6, 2011 or thereafter. The Company treated this transaction as an equity modification. As a result, the Company recorded the change in the fair value of the 25% interest immediately prior to and after the modification of the equity interest as a deemed dividend and charged it against common members' deficit on the modification date. The Company accreted the difference between the carrying value of the preferred membership interest and the redemption value by applying the effective interest method. The Company concluded that the preferred interest possessed characteristics and risks more similar to equity and classified such instrument outside of common members' equity. Since the preferred members had the option to redeem their investment for cash with proper notice to the Company on June 6, 2011 or thereafter, the Company recorded the transaction outside of common members' equity. The purchase agreement also provided for the reduction of preferred interests for any distributions paid to the preferred holders. A summary of the Company's preferred members' interest account activity is as follows:

	Balance

Balance as of December 31, 2010		36,811
Preferred interest accretion		4,058
Distributions		(7,144	)


Balance as of December 31, 2011		33,725
Distributions		(9,000	)
Exchanged(1)		(24,725	)


Balance as of December 31, 2012	$	—




Balance as of December 31, 2013	$	—

(1): Balance exchanged from redeemable preferred members' interest to stockholders' equity upon consummation of the Reorganization

As of the Reorganization date, the outside investors did not exercise this put preference, therefore, the entire redeemable preferred membership interests in the LLC were exchanged for shares of Shutterstock, Inc. common stock.

Common Stock

In connection with the Reorganization, the common and redeemable preferred membership interests in the LLC, including any interests that vested upon the Reorganization, were exchanged for shares of Shutterstock, Inc. common stock. The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to the prior distribution rights of any outstanding preferred stock. The common stock has no preemptive or conversion rights or other subscription rights. The outstanding shares of common stock are fully paid and non-assessable. Under the amended and restated certificate of incorporation, which became effective upon completion of the IPO, the Company's certificate of incorporation authorized 200,000,000 shares of $0.01 par value common stock.

Preferred Stock

Under the amended and restated certificate of incorporation, which became effective upon completion of the IPO, the Company's board of directors has the authority, without further action by the stockholders, to issue up to 5,000,000 shares of preferred stock, $0.01 par value, in one or more series. The board of directors also has the authority to designate the rights, preferences, privileges and restrictions of each such series, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series.

The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of Shutterstock without further action by the stockholders. The issuance of preferred stock with voting and conversion rights may also adversely affect the voting power of the holders of common stock. In certain circumstances, an issuance of preferred stock could have the effect of decreasing the market price of the common stock. As of December 31, 2013, the Company has not issued and has no plans to issue any shares of preferred stock.

Distributions to Members

In accordance with the LLC's Amended and Restated Limited Liability Company Agreement, prior to the Reorganization, cash distributions to the members were based on their respective percentage interests to the extent cash was available as determined by the board. Distributions were also limited to the extent that liabilities, excluding any owed to the members, exceeded fair market value of the LLC 's assets. Upon a dissolution event of the LLC, any assets were to be distributed 1) to creditors, including members who are creditors, by payment or provision for payment of the debt and liabilities of the LLC and the expenses of the liquidation; 2) to the setup of any reserves that are reasonably necessary for any contingent or unforeseen liabilities or obligations of the LLC; 3) to the preferred members until they have received distributions which, when aggregated with all prior distributions made to them equal their liquidation preference; 4) to Pixel Holdings Inc., which was the LLC's majority member, until such time that it has received distributions equal to the liquidation preference paid to the preferred members; 5) 75% to the common member with 8.5% membership interest, and 25% to the preferred members, until the aggregate amount of the distributions made to the 8.5% membership interest holder equals the product of $120,000 multiplied by their vested percentage; and 6) to the members in proportion to their percentage interests. For the years ended December 31, 2012 and 2011, the LLC distributed $36,000 and $28,575, respectively, to its common and preferred members. Upon consummation of the Reorganization, the LLC's Amended and Restated Limited Liability Company Agreement terminated. There have been no distributions made since the Reorganization on October 5, 2012.

Related Parties	12 Months Ended
Related Parties	Dec. 31, 2013
Related Parties
Related Parties	(12) Related Parties In connection with the follow-on offering in September 2013, Pixel Holdings Inc. ("Pixel Holdings"), an entity of which Jonathan Oringer, the Company's Founder, Chief Executive Officer and Chairman of the Board, was the sole stockholder, merged with and into the Company on September 18, 2013. In this merger, Mr. Oringer received an equivalent number of shares of common stock of the Company as the number that was previously owned by Pixel Holdings such that, following the merger, Mr. Oringer owns his interest in the Company directly rather than through Pixel Holdings. As a result of the merger, the Company assumed $208 in liabilities primarily related to Pixel Holdings' normal operating activities. The Company paid these liabilities during the year ended December 31, 2013 and was fully indemnified by Mr. Oringer, as provided for in the merger agreement, as of December 31, 2013. The merger agreement also provided for certain customary representations and warranties.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2013

Unaudited Quarterly Financial Data

Unaudited Quarterly Financial Data

(13) Unaudited Quarterly Financial Data

The following table sets forth, for the periods indicated, the Company's financial information for the eight most recent quarters ended December 31, 2013. In the Company's opinion, this unaudited information has been prepared on a basis consistent with the annual consolidated financial statements and includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the unaudited information for the periods presented.

	Three Months Ended

	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013			Dec. 31, 2012(1)			Sept. 30, 2012(2)			June 30, 2012(2)			Mar. 31, 2012(2)
Revenue	$	68,031	$	59,558	$	56,809	$	51,117		$	49,157		$	42,260		$	40,625		$	37,574
Operating expenses:
Cost of revenue		26,102		22,936		21,768		19,821			18,794			16,057			15,436			14,389
Sales & marketing		16,499		14,947		13,314		11,978			12,022			9,752			11,093			12,240
Product development		6,464		5,685		5,060		4,555			5,675			3,795			3,441			3,419
General and administrative		6,473		6,076		5,734		4,780			9,709			3,766			4,444			3,732


Total operating expenses		55,538		49,644		45,876		41,134			46,200			33,370			34,414			33,780


Income from operations		12,493		9,914		10,933		9,983			2,957			8,890			6,211			3,794
Other income/(expense), net		24		20		20		(12	)		(49	)		(3	)		2			3


Income before income taxes		12,517		9,934		10,953		9,971			2,908			8,887			6,213			3,797
Provision (benefit) for income tax		4,660		3,740		4,090		4,406			(26,111	)		146			141			86


Net income		7,857		6,194		6,863		5,565			29,019			8,741			6,072			3,711
Less:
Preferred interest distributed		—		—		—		—			2,950			2,263			1,688			2,100
Preferred interest accretion		—		—		—		—			—			—			—			—
Undistributed (loss) earnings to participating shareholder/members		21		18		22		19			(2,668	)		(77	)		(170	)		(1,172	)


Net income available to common shareholders/members	$	7,836	$	6,176	$	6,841	$	5,546		$	28,737		$	6,555		$	4,554		$	2,783




Net income(loss) per basic share available to common members:
Distributed		—		—		—		—			0.27			0.33			0.24			0.30
Undistributed		0.22		0.18		0.20		0.17			0.61			(0.02	)		(0.02	)		(0.17	)


Basic		0.22		0.18		0.20		0.17			0.88			0.31			0.22			0.13




Net income (loss) per diluted share available to common members:
Distributed		—		—		—		—			0.27			0.33			0.24			0.30
Undistributed		0.22		0.18		0.20		0.16			0.61			(0.02	)		(0.02	)		(0.17	)


Basic		0.22		0.18		0.20		0.16			0.88			0.31			0.22			0.13




Weighted average shares outstanding:
Basic		34,935,495		33,692,876		33,471,679		33,398,797			32,497,727			20,849,242			20,849,242			20,849,242
Diluted		35,619,474		34,280,656		34,040,934		33,851,843			32,681,570			20,849,242			20,849,242			20,849,242

(1): During the fourth quarter of fiscal year 2012, the Company identified an under-accrual in each of the prior quarters of 2012 related to non-income tax expense. As a result, the Company recorded an incremental charge of approximately $900 to general and administrative expense during the fourth quarter of 2012. The Company does not believe the adjustment is material to the fourth quarter or any previously reported periods.
(2): Certain interim period balances have been reclassified within total operating expenses to conform to current period presentation.

Summary of Operations and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Summary of Operations and Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Reorganization

Reorganization

Initial Public Offering

Initial Public Offering

Follow-On Offering

Follow-On Offering

Use of Estimates

Use of Estimates

Sales, Value-Added and Use Taxes

Sales, Value-Added and Use Taxes

Concentration of Credit and Contributor Risk

Concentration of Credit and Contributor Risk

No single contributor accounted for or exceeded 10% of contributor royalties for the years ended December 31, 2013, 2012 and 2011, respectively.

Fair Value Measurements

Fair Value Measurements

Cash and Cash Equivalents

Cash and Cash Equivalents

Short-Term Investments

Short-Term Investments

Restricted Cash

Restricted Cash

The Company's restricted cash relates to security deposits for leased office locations. As of December 31, 2013, the Company had $243 of restricted cash recorded in prepaid expenses and other current assets that related to a leased office location that expires in 2014 and had $2,017 of restricted cash recorded in other assets that related to leased office locations that expire in 2015 and 2024, respectively. As of December 31, 2012, the Company had $243 of restricted cash recorded in prepaid expenses and other current assets that related to a leased office location that was scheduled to expire in 2013 but was then extended through January 2014 and had $182 of restricted cash recorded in other assets that related to a leased office location that expires in 2015. The carrying value of restricted cash approximates fair value.

Credit Card Receivables

Credit Card Receivables

The Company's credit card receivables represent amounts due from third party credit card processors. Such amounts generally convert to cash within three to five days with little or no default risk.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

	Year Ended December 31,

	2013			2012			2011
Allowance for doubtful accounts:
Balance, beginning of period	$	249		$	256		$	—
Add: bad debt expense		519			326			256
Less: write-offs, net of recoveries and other adjustments		(143	)		(333	)		—


Balance, end of period	$	625		$	249		$	256

Deferred Financing Fees

Deferred Financing Fees

Property and Equipment

Property and Equipment


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

Capitalized Internal Use Software

Capitalized Internal Use Software

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Revenue Recognition

Revenue Recognition

Cost of Revenue

Cost of Revenue

Contributor Royalties and Internal Sales Commissions

Contributor Royalties and Internal Sales Commissions

Product Development

Product Development

Advertising Costs

Advertising Costs

Deferred Rent

Deferred Rent

Equity-Based Compensation

Equity-Based Compensation

Between June 7, 2007 and October 5, 2012, the Company was organized as a limited liability company. Beginning in 2011, the Company granted equity rights similar to options under its Value Appreciation Rights Plan ("VAR Plan") in the form of value appreciation rights (the "VAR Plan awards"). Each VAR Plan award had an exercise price, a vesting period and an expiration date, in addition to other terms and conditions similar to typical equity option grant terms and conditions. The VAR Plan awards were subject to a time-based vesting requirement and a condition that a change of control occur in order to trigger a payment with respect to the VAR Plan awards. In connection with the Reorganization, all of the VAR Plan awards were exchanged for options to purchase an aggregate of 1,661,719 shares of common stock of Shutterstock, Inc. with only a time-based vesting requirement, which were granted pursuant to the Company's 2012 Omnibus Equity Incentive Plan (the "2012 Plan").

•

Fair Value of Common Stock/Membership Unit.  Prior to completion of the IPO, the Company's fair value of common ownership interest was estimated internally and approved by the Board of Managers ("BOM") because the Company was not publicly traded. The Company's intention upon granting VAR Plan awards was for the granted award to have exercisable price per unit that was not less than the per unit fair value of the Company's common equity on the date of grant. The valuations of the Company's common equity unit were prepared in accordance with the American Institute of Certified Public Accountants Statement on Standards for Valuation Services 1: Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset. The assumptions used in the valuation model were based on future expectations combined with the Company's judgment. In the absence of a public trading market, the Company exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of the common equity unit as of the date of each VAR Plan award grant. Some but not all of these factors included operating and financial performance, current business conditions and projections, the hiring of key personnel, the Company's history and introduction of new functionality and services, the Company's stage of development, the likelihood of achieving a liquidity event for the common ownership interests, any adjustment necessary to recognize a lack of marketability for our common ownership interests, the market performance of comparable publicly traded companies, and U.S. and global capital market conditions. The Company also obtained independent third party valuations on a periodic basis. After October 11, 2012, the date the Company's common stock began trading on the NYSE, the grant date fair value for stock-based awards is based on the closing price of the Company's common stock on the NYSE on the date of grant and fair value for all other purposes related to stock-based awards shall be the closing price of the Company's common stock on the NYSE on the relevant date.

•

Expected Term.  The expected term is estimated using the simplified method allowed under Securities and Exchange Commission ("SEC") guidance.

•

Volatility.  As the Company does not have a trading history for its common ownership interest pre-IPO or a significant range of its common stock post-IPO, the expected price volatility for the common ownership interest and common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the VAR Plan awards and stock options granted post-IPO. Industry peers consist of several public companies similar in size, stage of life cycle and financial leverage. The Company did not rely on implied volatilities of traded options in the industry peers' common stock because the volume of activity was relatively low. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of the Company's own common stock becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be utilized in the calculation.

•

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

•

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

Income Taxes

Income Taxes

Net Income Per Share

Net Income Per Share

A reconciliation of assumed exercised shares used in calculating basic and diluted net income (loss) share available to common shareholders/members follows:

	Year Ended December 31,

	2013		2012		2011
Basic		33,878,494		23,785,299		20,849,242
Stock options and employee stock purchase plan shares		508,935		47,924		—
Unvested restricted stock awards		38,580		—		—


Diluted		34,426,009		23,833,223		20,849,242

Segment Reporting

Segment Reporting

The following represents our geographic revenue based on customer location:

	Year Ended December 31,

	2013		2012		2011
North America	$	84,754	$	59,963	$	40,536
Europe		84,644		62,943		47,967
Rest of the world		66,117		46,710		31,768


Total revenue	$	235,515	$	169,616	$	120,271

Foreign Currency Transactions

Foreign Currency Transactions

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Recently Issued Accounting Standard Updates

Recently Issued Accounting Standard Updates

Summary of Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Operations and Significant Accounting Policies

Schedule of changes in the allowance for doubtful accounts

	Year Ended December 31,

	2013			2012			2011
Allowance for doubtful accounts:
Balance, beginning of period	$	249		$	256		$	—
Add: bad debt expense		519			326			256
Less: write-offs, net of recoveries and other adjustments		(143	)		(333	)		—


Balance, end of period	$	625		$	249		$	256

Schedule of useful lives of Property and Equipment


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

Schedule of reconciliation of assumed exercised shares used in calculating basic and diluted net income (loss) share available to common stockholders/members

	Year Ended December 31,

	2013		2012		2011
Basic		33,878,494		23,785,299		20,849,242
Stock options and employee stock purchase plan shares		508,935		47,924		—
Unvested restricted stock awards		38,580		—		—


Diluted		34,426,009		23,833,223		20,849,242

Schedule of geographic revenue based on customer location

	Year Ended December 31,

	2013		2012		2011
North America	$	84,754	$	59,963	$	40,536
Europe		84,644		62,943		47,967
Rest of the world		66,117		46,710		31,768


Total revenue	$	235,515	$	169,616	$	120,271

Short Term Investments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Short Term Investments and Fair Value Measurements

Schedule of short-term investments

	As of December 31, 2013

	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Market Value
Commercial Paper	$	54,431	$	—	$	(2	)	$	54,429


Total	$	54,431	$	—	$	(2	)	$	54,429

Schedule of fair value measurements

	As of December 31, 2013

	Aggregate Fair Value		Level 1		Level 2		Level 3
Commercial Paper	$	54,429	$	—	$	54,429	$	—


Total	$	54,429	$	—	$	54,429	$	—

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets

Schedule of intangible assets

	As of December 31, 2013

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)
Amortizing intangible assets:
Customer relationships	$	600	$	(600	)	$	—		4
Trade name		400		(119	)		281		14
Contributor content		450		(127	)		323		15
Domain name		86		(9	)		77		15
Patents		193		(21	)		172		17


Total	$	1,729	$	(876	)	$	853

	As of December 31, 2012

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)
Amortizing intangible assets:
Customer relationships	$	600	$	(486	)	$	114		4
Trade name		400		(91	)		309		14
Contributor content		450		(98	)		352		15
Non-compete agreement		100		(100	)		—		3
Domain name		86		(3	)		83		15
Patents		193		(11	)		182		17


Total	$	1,829	$	(789	)	$	1,040

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property and Equipment

Summary of property and equipment

	December 31,

	2013			2012
Computer equipment and software	$	14,108		$	8,971
Furniture and fixtures		2,588			806
Leasehold improvements		10,669			484


Property and equipment		27,365			10,261
Less: accumulated depreciation		(7,109	)		(5,006	)


Property and equipment, net	$	20,256		$	5,255

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2013

Accrued Expenses

Schedule of accrued expenses

	December 31,

	2013		2012
Accrued compensation	$	6,379	$	4,246
Royalty tax withholdings		5,305		4,644
Accrued construction costs		4,501		—
Non-income taxes		3,994		3,567
Professional fees		605		469
Accrued marketing		475		588
Other accrued expenses		2,379		2,092


Total accrued expenses	$	23,638	$	15,606

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

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

	Year Ended December 31,

	2013		2012		2011
Domestic	$	43,375	$	21,805	$	22,900
Foreign		—		—		—


Income before income taxes	$	43,375	$	21,805	$	22,900

Summary of consolidated provision (benefit) for income taxes

	Year Ended December 31,

	2013		2012			2011
Current:
Federal provision	$	949	$	4,329		$	—
State & local provision		98		1,233			723
Foreign provision		—		—			—
Deferred:
Federal (benefit)		14,885		(29,772	)		—
State & local provision (benefit)		964		(1,528	)		253
Foreign provision (benefit)		—		—			—


Provision (benefit) for income taxes	$	16,896	$	(25,738	)	$	976

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

	Year Ended December 31,

	2013			2012			2011
US income tax at federal statutory rate		35.0	%		35.0	%		—	%
State and local taxes, net of federal benefit		2.3	%		2.8	%		4.0	%
Foreign rate differential		—	%		—	%		—	%
Benefit from change in tax status		—	%		(31.4	)%		—	%
LLC income not subject to federal and state tax		—	%		(131.8	)%		—	%
Non-deductible—restricted stock		1.3	%		7.3	%		—	%
Non-deductible—other		0. 4	%		0.3	%		0.5	%


Total provision (benefit) for income taxes		39.00	%		(117.8	)%		4.5	%

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

	Year Ended December 31,

	2013			2012
Deferred tax assets:
Intangible amortization	$	13,235			14,861
Non-income tax reserve		2,376			2,576
Non-cash equity-based compensation		2,159			1,136
Deferred revenue		—			14,237
Deferred rent		1,784			6
Other liabilities		932			378


Deferred tax assets		20,486			33,194
Deferred tax liabilities:
Depreciation and amortization		(4,335	)		(1,195	)


Net deferred tax assets	$	16,151		$	31,999

Summary of changes to the Company's unrecognized tax benefits

	Year Ended December 31,

	2013			2012		2011
Balance of unrecognized tax benefits at January 1	$	805		$	60	$	—
Gross additions for tax positions for prior years		8			18		—
Gross additions for tax positions for current year		1,056			727		60
Gross reductions for tax positions of prior years		(369	)		—		—
Gross expirations		—			—		—
Gross settlements		—			—		—


Balance of unrecognized tax benefits at December 31	$	1,500		$	805	$	60

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies.

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

Year Ending December 31	Operating Leases

2014	$	1,178
2015		3,974
2016		3,717
2017		3,659
2018		3,659
Thereafter		26,947


Total minimum lease payments	$	43,134

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Equity-Based Compensation

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

	Year Ended December 31,

	2013		2012		2011
Cost of revenue	$	437	$	219	$	—
Sales and marketing		1,296		783		—
Product development		1,493		1,696		—
General and administrative		2,982		7,687		2,122


Total	$	6,208	$	10,385	$	2,122

2012 ESPP

Equity-Based Compensation

Schedule of weighted average assumptions used in the fair value calculation

	Year Ended December 31, 2013

Expected term (in years)	0.50	0.64
Volatility	49% - 50%	49	%
Risk-free interest rate	0.08% - 0.10%	0.15	%
Dividend yield	—%	—	%

VAR Plan

Equity-Based Compensation

Schedule of weighted average assumptions used in the fair value calculation

	Year Ended December 31, 2013	Year Ended December 31, 2012

Expected term (in years)	6.3	5.2 - 6.3
Volatility	50%	49%
Risk-free interest rate	1.0% - 2.3%	1.0% - 1.6%
Dividend yield	—%	—%

Summary of awards and weighted average exercise price per option/notional unit

			Weighted Average Exercise Price

Units outstanding at December 31, 2011	1,344,500		$	15.10
Options/Units granted	418,000			19.38
Options/Units exercised	—			—
Options/Units cancelled or forfeited	(70,218	)		21.15


Options outstanding at December 31, 2012	1,692,282		$	16.11
Options granted	552,850			49.97
Options exercised	(312,807	)		15.30
Options cancelled or forfeited	(70,564	)		22.29


Options outstanding at December 31, 2013	1,861,761		$	26.09




Vested and exercisable at December 31, 2013	574,204		$	15.97

Members' Equity and Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

Members' Equity and Stockholders' Equity

Summary of the Company's preferred members' interest account activity

	Balance

Balance as of December 31, 2010		36,811
Preferred interest accretion		4,058
Distributions		(7,144	)


Balance as of December 31, 2011		33,725
Distributions		(9,000	)
Exchanged(1)		(24,725	)


Balance as of December 31, 2012	$	—




Balance as of December 31, 2013	$	—

(1): Balance exchanged from redeemable preferred members' interest to stockholders' equity upon consummation of the Reorganization

Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2013

Unaudited Quarterly Financial Data

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

	Three Months Ended

	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013			Dec. 31, 2012(1)			Sept. 30, 2012(2)			June 30, 2012(2)			Mar. 31, 2012(2)
Revenue	$	68,031	$	59,558	$	56,809	$	51,117		$	49,157		$	42,260		$	40,625		$	37,574
Operating expenses:
Cost of revenue		26,102		22,936		21,768		19,821			18,794			16,057			15,436			14,389
Sales & marketing		16,499		14,947		13,314		11,978			12,022			9,752			11,093			12,240
Product development		6,464		5,685		5,060		4,555			5,675			3,795			3,441			3,419
General and administrative		6,473		6,076		5,734		4,780			9,709			3,766			4,444			3,732


Total operating expenses		55,538		49,644		45,876		41,134			46,200			33,370			34,414			33,780


Income from operations		12,493		9,914		10,933		9,983			2,957			8,890			6,211			3,794
Other income/(expense), net		24		20		20		(12	)		(49	)		(3	)		2			3


Income before income taxes		12,517		9,934		10,953		9,971			2,908			8,887			6,213			3,797
Provision (benefit) for income tax		4,660		3,740		4,090		4,406			(26,111	)		146			141			86


Net income		7,857		6,194		6,863		5,565			29,019			8,741			6,072			3,711
Less:
Preferred interest distributed		—		—		—		—			2,950			2,263			1,688			2,100
Preferred interest accretion		—		—		—		—			—			—			—			—
Undistributed (loss) earnings to participating shareholder/members		21		18		22		19			(2,668	)		(77	)		(170	)		(1,172	)


Net income available to common shareholders/members	$	7,836	$	6,176	$	6,841	$	5,546		$	28,737		$	6,555		$	4,554		$	2,783




Net income(loss) per basic share available to common members:
Distributed		—		—		—		—			0.27			0.33			0.24			0.30
Undistributed		0.22		0.18		0.20		0.17			0.61			(0.02	)		(0.02	)		(0.17	)


Basic		0.22		0.18		0.20		0.17			0.88			0.31			0.22			0.13




Net income (loss) per diluted share available to common members:
Distributed		—		—		—		—			0.27			0.33			0.24			0.30
Undistributed		0.22		0.18		0.20		0.16			0.61			(0.02	)		(0.02	)		(0.17	)


Basic		0.22		0.18		0.20		0.16			0.88			0.31			0.22			0.13




Weighted average shares outstanding:
Basic		34,935,495		33,692,876		33,471,679		33,398,797			32,497,727			20,849,242			20,849,242			20,849,242
Diluted		35,619,474		34,280,656		34,040,934		33,851,843			32,681,570			20,849,242			20,849,242			20,849,242

(1): During the fourth quarter of fiscal year 2012, the Company identified an under-accrual in each of the prior quarters of 2012 related to non-income tax expense. As a result, the Company recorded an incremental charge of approximately $900 to general and administrative expense during the fourth quarter of 2012. The Company does not believe the adjustment is material to the fourth quarter or any previously reported periods.
(2): Certain interim period balances have been reclassified within total operating expenses to conform to current period presentation.

Summary of Operations and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands				12 Months Ended
	Sep. 25, 2013 USD ($) $ / shares shares	Oct. 16, 2012 USD ($) $ / shares shares	Oct. 05, 2012 shares	Dec. 31, 2013 USD ($)	Dec. 31, 2012 customer
Reorganization
Shares of common stock exchanged with preferred and common membership interests in connection with Reorganization			28,338,281
Initial Public Offering
Common stock, shares issued		5,175,000
Shares issued upon exercise of underwriters' overallotment option		675,000
Common stock, issue price (in dollars per share) \| $ / shares	$ 60.00	$ 17.00
Net proceeds from issuance of common stock \| $	$ 65,895	$ 81,811		$ 65,895
Offering expenses \| $	$ 947	$ 4,927
Follow-On Offering
Total shares in follow-on offering	5,290,000
Shares issued upon exercise of underwriters' option to purchase additional share	690,000
Common stock sold by the entity (in shares)	1,150,000
Common stock sold by shareholders (in shares)	4,140,000
Customer concentration risk \| Two customers
Concentration of Credit and Contributor Risk
Number of customers \| customer					2
Accounts receivable \| Customer concentration risk \| Two customers
Concentration of Credit and Contributor Risk
Concentration risk percentage					33.00%
Total revenue \| Customer concentration risk \| Customers that accounted for more than 10% of the Company's accounts receivable \| Maximum
Concentration of Credit and Contributor Risk
Concentration risk percentage				2.00%	2.00%

Summary of Operations and Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Short-term Investments
Short-term investments		$ 0
Restricted Cash
Restricted cash related to security deposits for leased office locations that expires in 2014	$ 243	243
Restricted cash related to security deposits for leased office locations that expires in 2015 and 2024	$ 2,017	182
Credit Card Receivables
Period for conversion of credit card receivable to cash, minimum	3 days
Period for conversion of credit card receivable to cash, maximum	5 days
Allowance for doubtful accounts:
Balance, beginning of period	$ 249	256
Add: bad debt expense	519	326	$ 256
Less: write-offs, net of recoveries and other adjustments	(143)	(333)
Balance, end of period	625	249	256
Deferred Financing Fees
Deferred financing fees balance	0	125
Amortization of deferred financing costs	125	41	0
Capitalized Internal Use Software
Gross capitalized costs	768	605	459
Amortized capital software expense	$ 194	$ 154	$ 41
Equipment
Property and Equipment
Useful lives	3 years
Furniture and fixtures
Property and Equipment
Useful lives	7 years
Software
Property and Equipment
Useful lives	3 years

Summary of Operations and Significant Accounting Policies (Details 3) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($) item	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Impairment of Long-Lived Assets
Impairment charges	$ 0	$ 0	$ 0
Revenue recognition
Number of subscription or usage based plans \| item	3
Chargeback and sales refund allowances	$ 425	70
Contributor Royalties and Internal Sales Commissions
Deferred royalty advances	3,419
Amortization of advance royalty	$ 510
Maximum period over which internal sales commissions get deferred and recognized	12 months
Deferred internal sales commissions	$ 2,005	2,023	651
Amortized internal sales commission expense	2,086	1,649	597
Product Development
Capitalized cost which is included in total capitalized software costs	163	146	25
Advertising Costs
Cost of advertising and promoting entity's products	34,090	32,648	$ 25,176
Deferred Rent
Deferred rent current balance	2,406	68
Deferred rent non-current balance	2,377	54
Deferred rent balance	$ 4,783	$ 122
Subscription plans \| Minimum
Revenue recognition
Plan term	30 days
Subscription plans \| Maximum
Revenue recognition
Plan term	1 year
On Demand plans
Revenue recognition
Plan term	1 year
Credit-pack plans
Revenue recognition
Plan term	1 year

Summary of Operations and Significant Accounting Policies (Details 4) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes
One-time non-cash tax benefit					$ 28,811
Net Income Per Share
Number of shares to purchase, the effect of which is included in diluted net income available to common stockholders/members									1,787,606	1,789,318
Anti-dilutive shares excluded from diluted net income available to common stockholders/members									193,040	106,500
Reconciliation of assumed exercised shares used in calculating basic and diluted net income (loss) share available to common shareholders/members
Basic (in shares)	34,935,495	33,692,876	33,471,679	33,398,797	32,497,727	20,849,242	20,849,242	20,849,242	33,878,494	23,785,299	20,849,242
Stock options and employee stock purchase plan shares									508,935	47,924
Unvested restricted stock awards									38,580
Diluted (in shares)	35,619,474	34,280,656	34,040,934	33,851,843	32,681,570	20,849,242	20,849,242	20,849,242	34,426,009	23,833,223	20,849,242
VAR Plan
Equity-Based Compensation
Shares of common stock to be purchased as stock options in exchange with VAR Plan awards granted and outstanding upon Reorganization									1,661,719
Expected dividend yield (as a percent)									0.00%	0.00%
2012 Plan
Equity-Based Compensation
Vesting period									4 years
2012 ESPP
Equity-Based Compensation
Vesting period									6 months

Summary of Operations and Significant Accounting Policies (Details 5) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2013 USD ($) segment	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Segment Reporting
Number of operating segments \| segment									3
Number of reportable segments \| segment									1
Geographic revenue based on customer location
Revenue	$ 68,031	$ 59,558	$ 56,809	$ 51,117	$ 49,157	$ 42,260	$ 40,625	$ 37,574	$ 235,515	$ 169,616	$ 120,271
Comprehensive Income (Loss)
Foreign currency translation gain									3
Unrealized gain on investments									6
Accumulated other comprehensive income									9	0
North America
Geographic revenue based on customer location
Revenue									$ 84,754	$ 59,963	$ 40,536
United States \| Total revenue \| Geographic concentration
Geographic revenue based on customer location
Concentration risk percentage									32.00%	32.00%	30.00%
Europe
Geographic revenue based on customer location
Revenue									$ 84,644	$ 62,943	$ 47,967
Rest of the world
Geographic revenue based on customer location
Revenue									$ 66,117	$ 46,710	$ 31,768

Short Term Investments and Fair Value Measurements (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Short term investments and fair value measurements
Amortized Cost	$ 54,431
Unrealized Losses	(2)
Estimated Fair Market Value	54,429
Commercial Paper
Short term investments and fair value measurements
Amortized Cost	54,431
Unrealized Losses	(2)
Estimated Fair Market Value	$ 54,429

Short Term Investments and Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Short Term Investments and Fair Value Measurements
Short-term investments		$ 0
Total	$ 54,429
Commercial Paper
Short Term Investments and Fair Value Measurements
Total	54,429
Recurring Basis \| Aggregate Fair Value
Short Term Investments and Fair Value Measurements
Total	54,429
Recurring Basis \| Aggregate Fair Value \| Commercial Paper
Short Term Investments and Fair Value Measurements
Total	54,429
Recurring Basis \| Level 2
Short Term Investments and Fair Value Measurements
Total	54,429
Recurring Basis \| Level 2 \| Commercial Paper
Short Term Investments and Fair Value Measurements
Total	$ 54,429

Goodwill and Intangible Assets (Details) - USD ($)	1 Months Ended	3 Months Ended			12 Months Ended
Goodwill and Intangible Assets (Details) - USD ($)	Apr. 30, 2012	Dec. 31, 2012	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Goodwill and Intangible Assets
Changes in the carrying amount of goodwill					$ 0
Impairments of goodwill					0
Amortizing intangible assets:
Gross Carrying Amount		$ 1,829,000			1,729,000	$ 1,829,000
Accumulated Amortization		(789,000)			(876,000)	(789,000)
Net Carrying Amount		1,040,000			853,000	1,040,000
Amortization expense					187,000	243,000	$ 244,000
Estimated amortization expense
2014					78,000
2015					78,000
2016					78,000
2017					78,000
2018					78,000
Thereafter					463,000
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount		600,000			600,000	600,000
Accumulated Amortization		(486,000)			$ (600,000)	(486,000)
Net Carrying Amount		114,000				$ 114,000
Customer relationships \| Weighted Average
Amortizing intangible assets:
Weighted Average Life					4 years	4 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount		400,000			$ 400,000	$ 400,000
Accumulated Amortization		(91,000)			(119,000)	(91,000)
Net Carrying Amount		309,000			$ 281,000	$ 309,000
Trade name \| Weighted Average
Amortizing intangible assets:
Weighted Average Life					14 years	14 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount		450,000			$ 450,000	$ 450,000
Accumulated Amortization		(98,000)			(127,000)	(98,000)
Net Carrying Amount		352,000			$ 323,000	$ 352,000
Contributor content \| Weighted Average
Amortizing intangible assets:
Weighted Average Life					15 years	15 years
Non-compete agreement
Amortizing intangible assets:
Gross Carrying Amount		100,000				$ 100,000
Accumulated Amortization		(100,000)				$ (100,000)
Non-compete agreement \| Weighted Average
Amortizing intangible assets:
Weighted Average Life						3 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount		86,000			$ 86,000	$ 86,000
Accumulated Amortization		(3,000)			(9,000)	(3,000)
Net Carrying Amount		83,000			$ 77,000	$ 83,000
Acquisition of intangible assets		$ 50,000	$ 10,000
Amortization period		15 years	15 years
Domain name \| Weighted Average
Amortizing intangible assets:
Weighted Average Life					15 years	15 years
Patents
Amortizing intangible assets:
Gross Carrying Amount		$ 193,000			$ 193,000	$ 193,000
Accumulated Amortization		(11,000)			(21,000)	(11,000)
Net Carrying Amount		$ 182,000			$ 172,000	$ 182,000
Acquisition of intangible assets				$ 193,000
Patents \| Weighted Average
Amortizing intangible assets:
Weighted Average Life					17 years	17 years
Patents \| Minimum
Amortizing intangible assets:
Amortization period	16 years
Patents \| Maximum
Amortizing intangible assets:
Amortization period	19 years

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property and Equipment
Property and equipment	$ 27,365	$ 10,261
Less accumulated depreciation	(7,109)	(5,006)
Property and equipment, net	20,256	5,255
Depreciation and amortization expense	3,683	2,397	$ 1,276
Computer equipment and software
Property and Equipment
Property and equipment	14,108	8,971
Furniture and fixtures
Property and Equipment
Property and equipment	2,588	806
Leasehold improvements
Property and Equipment
Property and equipment	$ 10,669	$ 484

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Accrued Expenses
Accrued compensation	$ 6,379	$ 4,246
Royalty tax withholdings	5,305	4,644
Accrued construction costs	4,501
Non-income taxes	3,994	3,567
Professional fees	605	469
Accrued marketing	475	588
Other accrued expenses	2,379	2,092
Total accrued expenses	$ 23,638	$ 15,606

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Geographical breakdown of income before income taxes
Domestic									$ 43,375	$ 21,805	$ 22,900
Income before income taxes	$ 12,517	$ 9,934	$ 10,953	$ 9,971	$ 2,908	$ 8,887	$ 6,213	$ 3,797	43,375	21,805	22,900
Current:
Federal provision									949	4,329
State & local provision									98	1,233	723
Deferred:
Federal (benefit)									14,885	(29,772)
State & local provision (benefit)									964	(1,528)	253
Provision (benefit) for income taxes									$ 16,896	$ (25,738)	$ 976
Provision for income taxes differs from statutory income tax rate
US income tax at federal statutory rate (as a percent)									35.00%	35.00%
State and local taxes, net of federal benefit (as a percent)									2.30%	2.80%	4.00%
Benefit from change in tax status (as a percent)										(31.40%)
LLC income not subject to federal and state tax (as a percent)										(131.80%)
Non-deductible - restricted stock									1.30%	7.30%
Non-deductible - other									0.40%	0.30%	0.50%
Total provision (benefit) for income taxes (as a percent)									39.00%	(117.80%)	4.50%
Non-cash tax benefit									$ 28,811
Deferred tax assets:
Intangible amortization	13,235				14,861				13,235	$ 14,861
Non-income tax reserve	2,376				2,576				2,376	2,576
Non-cash equity-based compensation	2,159				1,136				2,159	1,136
Deferred revenue					14,237					14,237
Deferred rent	1,784				6				1,784	6
Other liabilities	932				378				932	378
Deferred tax assets	20,486				33,194				20,486	33,194
Deferred tax liabilities:
Depreciation and amortization	(4,335)				(1,195)				(4,335)	(1,195)
Net deferred tax assets	16,151				31,999				16,151	31,999
Reconciliation of unrecognized tax benefits
Balance at the beginning of the period				$ 805				$ 60	805	60
Gross additions for tax positions for prior years									8	18
Gross additions for tax positions for current year									1,056	727	$ 60
Gross reductions for tax positions of prior years									(369)
Balance at the end of the period	1,500				$ 805				1,500	805	60
Reserves for uncertain tax benefits									1,064	$ 745	$ 60
Impact on effective tax rate on recognition of unrecognized tax benefits	1,229								1,229
Unrecognized tax benefits, interest and penalties accrued									113
Amount of reclassification of between current deferred tax assets and prepaid and other current assets									17,300
Unrecognized tax benefits included in NOLs but not reflected in deferred tax assets	$ 7,800								$ 7,800

Term Loan Facility (Details) - USD ($) $ in Thousands			12 Months Ended
Term Loan Facility (Details) - USD ($) $ in Thousands	Mar. 25, 2013	Dec. 24, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Sep. 21, 2012
Term Loan Facility
Payment of term loan facility			$ 6,000	$ 6,000
Amortization of financing costs			125	41	$ 0
Term Loan
Term Loan Facility
Amount borrowed						$ 12,000
Payment of term loan facility	$ 6,000	$ 6,000
Accrued interest			0	3
Amortization of financing costs			$ 125
Deferred financing costs, net of accumulated amortization				$ 125

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies.
Rental expense inclusive of operating leases	$ 2,997	$ 1,799	$ 1,113
Letter of credit as a security deposit for the leased facilities	1,829
Letter of credit collateralized as restricted cash	1,829
Future minimum lease payments under non-cancelable operating leases
2014	1,178
2015	3,974
2016	3,717
2017	3,659
2018	3,659
Thereafter	26,947
Total minimum lease payments	43,134
Capital Expenditures
Commitment to purchase data server equipment	2,500
Commitment related to completion of new office facility	3,700
Unconditional Purchase Obligations
Unconditional purchase obligations for contracts related to infrastructure services and contractual commitments for marketing services	5,864
Maturity of unconditional purchase obligations
2014	3,454
2015	1,845
2016	565
Indemnifications
Standard maximum aggregate obligation and liability to any one customer for all claims	10
Indemnification obligation	$ 0	$ 0

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plans
Annual discretionary employer matching contributions (as a percent)	3.00%
Employer matching contributions	$ 615	$ 412	$ 221

Equity-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Oct. 10, 2012	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Additional disclosures
Non-cash stock-based compensation expense, net of estimated forfeitures			$ 6,208	$ 10,385	$ 2,122
2012 Plan
Equity-Based Compensation
Maximum number of shares/notional units available for issuance	6,750,000
Annual increase in shares available for issuance	1,500,000
Annual increase in the shares available for issuance as a percentage of common stock outstanding as of the last day of immediately preceding fiscal year	3.00%
Additional disclosures
Time-based vesting schedules			4 years
2012 ESPP
Equity-Based Compensation
Maximum number of shares/notional units available for issuance	2,000,000
Annual increase in shares available for issuance	1,000,000
Annual increase in the shares available for issuance as a percentage of common stock outstanding as of the last day of immediately preceding fiscal year	3.00%
Maximum percentage of eligible compensation considered for payroll deduction to purchase the common stock	15.00%
Maximum purchase of shares by participating employees during each offering period	1,000
Percentage of lower of fair market value of common stock	85.00%
Number of shares issued under ESPP			94,894
Weighted average assumptions used in fair value calculation
Expected term		7 months 20 days	6 months
Volatility (as a percent)		49.00%
Risk-free interest rate (as a percent)		0.15%
Additional disclosures
Time-based vesting schedules			6 months
Non-cash stock-based compensation expense, net of estimated forfeitures			$ 588	$ 134	$ 0
2012 ESPP \| Minimum
Equity-Based Compensation
Percentage of combined voting power of an employee considered for not granting rights to purchase stock	5.00%
Worth of stock for each calendar year considered for not granting rights to purchase stock	$ 25
Weighted average assumptions used in fair value calculation
Volatility (as a percent)			49.00%
Risk-free interest rate (as a percent)			0.08%
2012 ESPP \| Maximum
Weighted average assumptions used in fair value calculation
Volatility (as a percent)			50.00%
Risk-free interest rate (as a percent)			0.10%
VAR Plan
Equity-Based Compensation
Maximum number of shares/notional units available for issuance			3,000,000
Units designated under VAR Plan as a percentage of the company's overall interest			10.00%
Shares of common stock to be purchased as stock options in exchange with VAR Plan awards granted and outstanding upon Reorganization			1,661,719
Weighted average assumptions used in fair value calculation
Expected term			6 years 3 months 18 days
Volatility (as a percent)			50.00%	49.00%
Plan Options/Units
Options/Units outstanding at the beginning of the period (in shares)			1,692,282	1,344,500
Options/Units granted (in shares)			552,850	418,000
Options/Units exercised (in shares)			(312,807)
Options/Units cancelled or forfeited (in shares)			(70,564)	(70,218)
Options outstanding at the end of the period (in shares)		1,692,282	1,861,761	1,692,282	1,344,500
Vested and exercisable at the end of the period (in shares)			574,204
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per unit)			$ 16.11	$ 15.10
Options granted (in dollars per share)			49.97	19.38
Options exercised (in dollars per share)			15.30
Options cancelled or forfeited (in dollars per share)			22.29	21.15
Options outstanding at the end of the period (in dollars per unit)		$ 16.11	26.09	$ 16.11	$ 15.10
Vested and exercisable at the end of the period (in dollars per share)			$ 15.97
Intrinsic values
Intrinsic value of total stock options and notional units outstanding		$ 16,700	$ 107,100	$ 16,700
Intrinsic value of total stock options vested and exercisable		$ 4,600	$ 38,900	4,600
Number of units expired			0
Additional disclosures
Shares of common stock to be purchased as stock options in exchange with VAR Plan awards granted and outstanding upon Reorganization			1,661,719
Non-cash stock-based compensation expense net of estimated forfeitures recognized in connection with one-time acceleration charge				2,412
Non-cash stock-based compensation expense, net of estimated forfeitures			$ 4,507	$ 618
Total unrecognized compensation charge related non-vested options			$ 16,400
VAR Plan \| Minimum
Weighted average assumptions used in fair value calculation
Expected term				5 years 2 months 12 days
Risk-free interest rate (as a percent)			1.00%	1.00%
Additional disclosures
Time-based vesting schedules			1 year
VAR Plan \| Maximum
Weighted average assumptions used in fair value calculation
Expected term				6 years 3 months 18 days
Risk-free interest rate (as a percent)			2.30%	1.60%
Additional disclosures
Time-based vesting schedules			6 years

Equity-Based Compensation (Details 2) - USD ($) $ in Thousands					12 Months Ended			48 Months Ended
	Jun. 03, 2013	Apr. 05, 2010	Nov. 01, 2007	Jun. 07, 2007	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2011
Equity-Based Compensation
Recognized compensation charge					$ 6,208	$ 10,385	$ 2,122
2012 ESPP
Equity-Based Compensation
Recognized compensation charge					$ 588	134	0
Restricted stock units
Vesting period of granted award					6 months
2012 Plan
Restricted stock units
Vesting period of granted award					4 years
VAR Plan
Equity-Based Compensation
Recognized compensation charge					$ 4,507	618
Non-cash stock-based compensation expense net of estimated forfeitures recognized in connection with one-time acceleration charge						2,412
Restricted stock/restricted stock units
Equity-Based Compensation
Unrecognized compensation charge					2,700
Restricted stock
Equity-Based Compensation
Recognized compensation charge					1,036	258
Liability re-classed to equity					5,147
Restricted stock units
Equity-Based Compensation
Recognized compensation charge					$ 77	0	0
Restricted stock units
Percentage of granted award which will vest	25.00%
Remaining percentage of granted award which will vest quarterly	75.00%
Remaining vesting period of granted award	3 years
Vesting period of granted award	4 years
Restricted stock units \| 2012 Plan
Restricted stock units
Awarded (in shares)	10,000
Executive
Equity-Based Compensation
Membership interest (as a percent)				8.50%
Profits Interest Agreement \| Executive
Equity-Based Compensation
Percentage of liquidation amount in excess of the specified amount entitled as per the agreement		4.00%
Specified liquidation amount beyond which sharing is applicable		$ 300,000
Profit interest grant vesting period					6 years
Maximum percentage puttable annually of vested portion of the membership interest					10.00%
Compensation charge recorded					$ 0	2,827	$ 2,122
Profits Interest Agreement \| Executive \| Restricted stock
Equity-Based Compensation
Non-cash stock-based compensation expense net of estimated forfeitures recognized in connection with one-time acceleration charge						$ 3,627
Accelerated vesting percentage of the unvested portion of stock award						50.00%
Profits Interest Agreement \| Employee
Equity-Based Compensation
Membership interest (as a percent)			0.40%
Period of future services to be rendered against grant of membership interest								48 months
Recognized compensation charge					0
Non-cash stock-based compensation expense net of estimated forfeitures recognized in connection with one-time acceleration charge						$ 509
Unrecognized compensation charge					$ 0

Equity-Based Compensation (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 6,208	$ 10,385	$ 2,122
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	437	219
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	1,296	783
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	1,493	1,696
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 2,982	$ 7,687	$ 2,122

Members' Equity and Stockholders' Equity (Details)				12 Months Ended			15 Months Ended
Members' Equity and Stockholders' Equity (Details)	Feb. 28, 2008 USD ($)	Jun. 07, 2007	Jun. 06, 2007 USD ($)	Dec. 31, 2013 USD ($) vote $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 USD ($)	Dec. 31, 2013 USD ($) $ / shares shares
Redeemable Preferred Members' Equity
Percentage of common members' equity sold by sole shareholder to outside investors			25.00%
Aggregate purchase price for which common members' equity is sold			$ 60,000,000
Purchase price adjustment paid by outside investors to the selling member as a result of the company achieving an EBITDA Target	$ 1,800,000
Preferred members' interest account activity
Balance at the beginning of the period				$ 0	$ 33,725,000	$ 36,811,000
Preferred interest accretion						4,058,000
Distributions					(9,000,000)	(7,144,000)
Exchanged					(24,725,000)
Balance at the end of the period				$ 0	$ 0	33,725,000	$ 0
Common Stock
Number of votes for each share \| vote				1
Number of authorized shares of common stock \| shares				200,000,000	200,000,000		200,000,000
Common stock, par value (in dollars per share) \| $ / shares				$ 0.01	$ 0.01		$ 0.01
Preferred Stock
Preferred stock, authorized shares \| shares				5,000,000			5,000,000
Preferred stock, par value \| $ / shares				$ 0.01			$ 0.01
Distributions to Members
Cash distributions made					$ 36,000,000	$ 28,575,000	$ 0
Executive
Distributions to Members
Membership interest (as a percent)		8.50%
Common members' interest \| Executive
Distributions to Members
Assets to be distributed upon dissolution event of the company (as a percent)				75.00%
Membership interest (as a percent)				8.50%
Amount multiplied by vested percentage of membership interest considered for determining limit of distribution to members upon dissolution				$ 120,000
Preferred members
Distributions to Members
Assets to be distributed upon dissolution event of the company (as a percent)				25.00%

Related Parties (Details) $ in Thousands	Sep. 18, 2013 USD ($)
Pixel Holdings Inc.
Related parties
Assumed liability related to related party transaction	$ 208

Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Unaudited Quarterly Financial Data
Revenue	$ 68,031	$ 59,558	$ 56,809	$ 51,117	$ 49,157	$ 42,260	$ 40,625	$ 37,574	$ 235,515	$ 169,616	$ 120,271
Operating expenses:
Cost of revenue	26,102	22,936	21,768	19,821	18,794	16,057	15,436	14,389	90,627	64,676	45,504
Sales & marketing	16,499	14,947	13,314	11,978	12,022	9,752	11,093	12,240	56,738	45,107	31,929
Product development	6,464	5,685	5,060	4,555	5,675	3,795	3,441	3,419	21,764	16,330	9,777
General and administrative	6,473	6,076	5,734	4,780	9,709	3,766	4,444	3,732	23,063	21,651	10,171
Total operating expenses	55,538	49,644	45,876	41,134	46,200	33,370	34,414	33,780	192,192	147,764	97,381
Income from operations	12,493	9,914	10,933	9,983	2,957	8,890	6,211	3,794	43,323	21,852	22,890
Other income/(expense), net	24	20	20	(12)	(49)	(3)	2	3	52	(47)	10
Income before income taxes	12,517	9,934	10,953	9,971	2,908	8,887	6,213	3,797	43,375	21,805	22,900
Provision (benefit) for income tax	4,660	3,740	4,090	4,406	(26,111)	146	141	86	16,896	(25,738)	1,036
Net income	7,857	6,194	6,863	5,565	29,019	8,741	6,072	3,711	26,479	47,543	21,864
Less:
Preferred interest distributed					2,950	2,263	1,688	2,100		9,000	7,144
Undistributed (loss) earnings to participating shareholder/members	21	18	22	19	(2,668)	(77)	(170)	(1,172)	80	(4,086)	(2,692)
Net income available to common shareholders/members	$ 7,836	$ 6,176	$ 6,841	$ 5,546	$ 28,737	$ 6,555	$ 4,554	$ 2,783	$ 26,399	$ 42,629	$ 13,354
Net income (loss) per basic share available to common shareholders/members:
Distributed (in dollars per share)					$ 0.27	$ 0.33	$ 0.24	$ 0.30		$ 1.14	$ 1.03
Undistributed (in dollars per share)	$ 0.22	$ 0.18	$ 0.20	$ 0.17	0.61	(0.02)	(0.02)	(0.17)	$ 0.78	0.65	(0.39)
Basic (in dollars per share)	0.22	0.18	0.20	0.17	0.88	0.31	0.22	0.13	0.78	1.79	0.64
Net income(loss) per diluted share available to common members:
Distributed (in dollars per share)					0.27	0.33	0.24	0.30		1.13	1.03
Undistributed (in dollars per share)	0.22	0.18	0.20	0.16	0.61	(0.02)	(0.02)	(0.17)	0.77	0.66	(0.39)
Diluted (in dollars per share)	$ 0.22	$ 0.18	$ 0.20	$ 0.16	$ 0.88	$ 0.31	$ 0.22	$ 0.13	$ 0.77	$ 1.79	$ 0.64
Weighted average shares outstanding:
Basic (in shares)	34,935,495	33,692,876	33,471,679	33,398,797	32,497,727	20,849,242	20,849,242	20,849,242	33,878,494	23,785,299	20,849,242
Diluted (in shares)	35,619,474	34,280,656	34,040,934	33,851,843	32,681,570	20,849,242	20,849,242	20,849,242	34,426,009	23,833,223	20,849,242
Incremental charge to general and administrative expense					$ 900