View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		34,995,785
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 220,563	$ 241,304
Short-term investments	54,980	47,078
Credit card receivables	4,548	2,811
Accounts receivable, net	30,412	25,653
Prepaid expenses and other current assets	12,111	11,713
Deferred tax assets, net	6,655	7,116
Total current assets	329,269	335,675
Property and equipment, net	37,884	32,094
Intangible assets, net	29,231	29,781
Goodwill	52,385	50,934
Deferred tax assets, net	17,789	18,691
Other assets	2,765	1,946
Total assets	469,323	469,121
Current liabilities:
Accounts payable	8,989	6,816
Accrued expenses	31,315	30,696
Contributor royalties payable	18,890	17,822
Income taxes payable	385	953
Deferred revenue	105,500	98,239
Other liabilities	5,346	6,258
Total current liabilities	170,425	160,784
Deferred tax liability, net	3,512	3,778
Other non-current liabilities	18,234	15,994
Total liabilities	192,171	180,556
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 36,453 and 36,146 shares issued and 35,113 and 35,686 shares outstanding as of March 31, 2016 and December 31, 2015, respectively	365	361
Treasury stock, at cost; 1,340 and 460 shares as of March 31, 2016 and December 31, 2015, respectively	(43,461)	(15,635)
Additional paid-in capital	222,207	213,851
Accumulated comprehensive loss	(4,529)	(6,449)
Retained earnings	102,570	96,437
Total stockholders’ equity	277,152	288,565
Total liabilities and stockholders’ equity	$ 469,323	$ 469,121

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	36,453,000	36,146,000
Common stock, shares outstanding (in shares)	35,113,000	35,686,000
Treasury stock, shares held in treasury (in shares)	1,340,000	460,000

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 116,652	$ 97,522
Operating expenses:
Cost of revenue	48,063	39,525
Sales and marketing	27,088	25,105
Product development	11,225	10,684
General and administrative	19,454	13,972
Total operating expenses	105,830	89,286
Income from operations	10,822	8,236
Other expense, net	(12)	(2,562)
Income before income taxes	10,810	5,674
Provision for income taxes	4,677	2,431
Net income	6,133	3,243
Less:
Less: Undistributed earnings to participating stockholder	0	2
Net income available to common stockholders	$ 6,133	$ 3,241
Net income per share available to common stockholders:
Basic (in dollars per share)	$ 0.17	$ 0.09
Diluted (in dollars per share)	$ 0.17	$ 0.09
Weighted average shares outstanding:
Basic (in shares)	35,375	35,635
Diluted (in shares)	36,099	36,193

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 6,133	$ 3,243
Foreign currency translation gain (loss)	1,856	(3,099)
Unrealized gain on investments	64	8
Other comprehensive income (loss)	1,920	(3,091)
Comprehensive income	$ 8,053	$ 152

- Definition

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

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 6,133	$ 3,243
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,184	2,995
Deferred taxes	1,285	(85)
Non-cash equity-based compensation	7,353	7,508
Change in fair value of contingent consideration	2,365	517
Tax effect from exercise/vesting of equity awards, net	1,514	99
Bad debt reserve	1,183	346
Chargeback and sales refund reserves	0	20
Changes in operating assets and liabilities:
Credit card receivables	(1,697)	(1,305)
Accounts receivable	(5,994)	(3,970)
Prepaid expenses and other current and non-current assets	(3,126)	(470)
Accounts payable and other current and non-current liabilities	1,286	2,336
Contributor royalties payable	1,103	1,525
Income taxes payable	612	829
Deferred revenue	6,760	7,882
Net cash provided by operating activities	22,961	21,470
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(7,770)	(2,182)
Purchase of investments	(59,951)	(68,592)
Sale and maturities of investments	52,100	68,455
Acquisition of business, net of cash acquired	0	(62,379)
Acquisition of digital content	(628)	(849)
Security deposit payment	(818)	(67)
Net cash used in investing activities	(17,067)	(65,614)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury shares	(27,743)	0
Proceeds from exercise of stock options	1,627	3,043
Proceeds from issuance of common stock under 2012 Employee Stock Purchase Plan	0	4
Tax effect from exercise/vesting of equity awards, net	(1,514)	(99)
Net cash (used in) provided by financing activities	(27,630)	2,948
Effect of foreign exchange rate changes on cash	995	(1,777)
Net decrease in cash and cash equivalents	(20,741)	(42,973)
Cash and cash equivalents, beginning of period	241,304	233,453
Cash and cash equivalents, end of period	220,563	190,480
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 4,195	$ 1,317

Summary of Operations and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Operations and Significant Accounting Policies	Summary of Operations and Significant Accounting Policies Summary of Operations Shutterstock, Inc., together with its subsidiaries (collectively, the “Company” or “Shutterstock”), operates a global marketplace and is a leading provider of high-quality creative content including: (a) digital imagery, which consists of licensed photographs, vectors, illustrations and video clips that customers use in their visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and video content; and (b) commercial music, which consists of high-quality music tracks and sound effects, and is often used to complement the digital imagery. The Company licenses creative content to its customers. Contributors upload their creative content to the Company’s websites in exchange for royalty payments based on customer download activity. The Company also offers digital asset management services through its cloud-based digital asset management platform, WebDAM. This service provides tools for customers to better manage creative content and brand management assets. In recent years, the Company has grown, in part, through acquisitions, most notably through the acquisition of WebDAM in 2014 and the acquisitions of Rex Features and PremiumBeat in 2015. The Company is headquartered in New York City with offices in Amsterdam, Berlin, Chicago, Dallas, Denver, London, Los Angeles, Montreal, Paris, San Francisco and Silicon Valley. Basis of Presentation The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statements. The interim consolidated balance sheet as of March 31, 2016, the consolidated statements of operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015 are unaudited. The consolidated balance sheet as of December 31, 2015, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by U.S. GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position as of March 31, 2016 and its results of consolidated operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016 or for any other future annual or interim period. There have been no material changes in the significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 24, 2016. These financial statements should also be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP 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, the fair value of goodwill, intangible assets and other long-lived assets, non-cash equity-based compensation, the fair value of contingent consideration, the provision for income taxes and the amount of certain non-income tax accruals. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, 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. Restricted Cash The Company’s restricted cash relates to security deposits for its office leases. As of March 31, 2016 and December 31, 2015, the Company had restricted cash of approximately $2.6 million and $1.8 million, respectively, in other assets that related to the lease for its headquarters in New York City, which expires in 2029. In January 2016, this lease was amended to provide additional space and extend the lease term, which required an increased security deposit. The carrying value of restricted cash approximates fair value. Allowance for Doubtful Accounts The Company’s accounts receivable consist of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates. As of March 31, 2016 and December 31, 2015, the Company’s allowance for doubtful accounts was approximately $4.7 million and $3.8 million, respectively, which is included as a reduction of accounts receivable. 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 March 31, 2016, the Company had deferred rent of $7.8 million, of which $0.7 million is included in other liabilities and $7.1 million is included in other non-current liabilities. As of December 31, 2015, the Company had deferred rent of $8.0 million, of which $0.7 million was included in other liabilities and $7.3 million was included in other non-current liabilities. Chargeback and Sales Refund Allowance The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of both March 31, 2016 and December 31, 2015, the Company’s combined allowance for chargebacks and sales refunds was $0.7 million, which is included in other liabilities. Income Taxes The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Significant management judgment is required in projecting ordinary income in order to determine the Company’s estimated effective tax rate. 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 period. Recently Issued Accounting Standard Updates In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to stock-based compensation. The new standard changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of certain related items in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective approach; amendments related to the recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively; and amendments related to the presentation of excess tax benefits on the statement of cash flows may be applied prospectively or retrospectively. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In February 2016, the FASB issued new guidance related to leases. The new standard requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and can be applied using a modified retrospective approach for all leases entered into before the effective date. Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In November 2015, the FASB issued new guidance related to income taxes. The new standard requires that all deferred tax assets and liabilities, and any related valuation allowance, be classified as non-current on the balance sheet. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, although early adoption is permitted and can be applied either prospectively or retrospectively to all periods presented. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and will eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB approved the deferral of the effective date of this guidance by one year. As a result, this new guidance will be effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company may choose to adopt the standard as of the original effective date for annual reporting periods beginning after December 15, 2016; if it does so, the Company is required to apply the standard beginning in the first interim period within the year of adoption. The Company is evaluating the impact, if any, of adopting this new accounting standard on its financial statements.

Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables present the Company’s fair value hierarchy for its assets and liabilities (in thousands):



	As of March 31, 2016
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	81,341	$	81,341	$	—	$	—
Commercial paper	54,980		—		54,980		—
Total assets measured at fair value	$	136,321	$	81,341	$	54,980	$	—
Liabilities:
Acquisition-related contingent consideration	$	13,440	$	—	$	—	$	13,440
Total liabilities measured at fair value	$	13,440	$	—	$	—	$	13,440



	As of December 31, 2015
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	89,153	$	89,153	$	—	$	—
Commercial paper	47,078		—		47,078		—
Total assets measured at fair value	$	136,231	$	89,153	$	47,078	$	—
Liabilities:
Acquisition-related contingent consideration	$	11,075	$	—	$	—	$	11,075
Total liabilities measured at fair value	$	11,075	$	—	$	—	$	11,075

Money Market Accounts

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

Commercial Paper

The Company’s short-term investments consist of commercial paper with original maturity dates of 90 days or less, which are available to support current operations and are classified as available-for-sale securities. Commercial paper is classified as a level 2 measurement based on quoted market prices for identical assets, which are subject to infrequent transactions.

Short-term investments are summarized as follows (in thousands):



	As of March 31, 2016			As of December 31, 2015
Commercial Paper:
Amortized cost	$	54,982		$	47,084
Unrealized gains	—			—
Unrealized losses	(2		)	(6		)
Total short-term investments measured at fair value	$	54,980		$	47,078

Acquisition-Related Contingent Consideration

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

As of December 31, 2015, the settlement amount of the contingent consideration related to the Company’s acquisition of WebDAM was determined to be $4.0 million and is included in other liabilities. No changes in fair value were recorded during the three months ended March 31, 2016. The contingent consideration of $4.0 million was paid in April 2016.

As of March 31, 2016, the settlement amount of the contingent consideration related to the PremiumBeat acquisition was determined to be $10.0 million, which will be paid during 2017, and the fair value of the contingent consideration, which reflects the present value of the amount that will be paid, was $9.4 million and is included in other non-current liabilities. As of December 31, 2015, the fair value of the contingent consideration was $7.1 million, and was included in other non-current liabilities.

Other Fair Value Measurements

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

Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

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



	As of March 31, 2016			As of December 31, 2015
Computer equipment and software	$	40,836		$	37,502
Furniture and fixtures	2,819			2,933
Leasehold improvements	14,856			14,471
Property and equipment	58,511			54,906
Less accumulated depreciation	(20,627		)	(22,812		)
Property and equipment, net	$	37,884		$	32,094

Depreciation expense related to property and equipment was $2.9 million and $2.1 million for the three months ended March 31, 2016 and 2015, respectively. Depreciation expense is included in cost of revenue and general and administrative expense based on the nature of the asset being depreciated.

Capitalized Internal Use Software

For the three months ended March 31, 2016 and 2015, the Company capitalized approximately $2.8 million and $0.1 million, respectively, which is included in total capitalized software costs. The portion of total depreciation expense related to capitalized internal use software for the three months ended March 31, 2016 and 2015 was $0.5 million and $0.1 million, respectively, which is included in cost of revenue and general and administrative expense.

As of March 31, 2016 and December 31, 2015, the Company had internal use software of $6.2 million and $3.9 million, respectively, net of accumulated depreciation, which is included in property and equipment, net.

Goodwill, Intangible Assets and Acquisition Activity

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets and Acquisition Activity

Goodwill

The Company’s goodwill balance is attributable to its Bigstock, Editorial, Music and WebDAM reporting units and is tested for impairment at least annually on October 1 or upon a triggering event. Bigstock, Music and Editorial are included in the Company's “Content Business” reporting segment while WebDAM is included in the non-reportable “Other Category”. The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments through March 31, 2016 (in thousands):



	Consolidated		Content Business		Other Category
Balance as of December 31, 2015	$	50,934	$	42,171	$	8,763
Foreign currency translation adjustment	1,451		1,451		—
Balance as of March 31, 2016	$	52,385	$	43,622	$	8,763

No triggering events were identified during the three months ended March 31, 2016.

Other Intangible Assets

Intangible assets consist of the following as of March 31, 2016 and December 31, 2015 (in thousands):



	As of March 31, 2016						As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets:
Customer relationships	$	18,704	$	(3,045	)	9	$	19,523	$	(3,089	)
Trade name	7,193		(1,444		)	7	7,111		(1,188		)
Developed technology	3,651		(1,383		)	4	3,734		(1,129		)
Contributor content	5,989		(729		)	9	5,138		(567		)
Patents	209		(43		)	17	193		(40		)
Domain name	160		(31		)	14	120		(25		)
Total	$	35,906	$	(6,675	)		$	35,819	$	(6,038	)

Amortization expense was $1.2 million and $0.9 million for the three months ended March 31, 2016 and 2015, respectively. The Company also determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense for the next five years is $4.0 million for the remaining nine months of 2016, $5.1 million in 2017, $4.1 million in 2018, $3.8 million in 2019, $3.4 million in 2020 and $2.9 million thereafter.

Acquisition Activity

Rex Features

On January 19, 2015, the Company acquired all of the shares of Rex Features (Holdings) Limited, or Rex Features, pursuant to a stock purchase agreement. The total purchase price consisted of a cash payment of $32.7 million subject to certain working capital adjustments. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

Goodwill related to the acquisition of Rex Features is attributable to its ability to serve as an integral part of the Company’s editorial offering, serving as a base for accelerating the growth of the offering by leveraging Rex Features’ editorial expertise and the Company’s technical capabilities and position in the marketplace, and is not deductible for tax purposes.

PremiumBeat

On January 22, 2015, the Company acquired substantially all of the assets and certain liabilities of Arbour Interactive, Inc., or PremiumBeat, pursuant to an asset purchase agreement. The total purchase price of $35.4 million consisted of a cash payment of $31.7 million and $3.7 million in contingent consideration based on certain performance criteria. As of March 31, 2016, the fair value of the contingent consideration related to the PremiumBeat acquisition was $9.4 million, which represents the present value of the amount that will be paid, and is included in other liabilities. During the three months ended March 31, 2016, the Company recorded a change in the fair value of the contingent consideration in the amount of $2.4 million, of which $0.7 million was recorded as component of other (expense) income, net related to the passage of time and $1.7 million was recorded as a component of general and administrative expense related to a modification of the terms of the contingent consideration agreement. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

Goodwill related to the acquisition of PremiumBeat is attributable to expected synergies from future growth and the ability to accelerate the growth of the Company’s music offering by leveraging PremiumBeat’s experience in the music market, and is deductible for tax purposes.

2015 Acquisition Activity

The fair value of consideration transferred in the acquisitions of Rex Features and PremiumBeat was allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The fair values of intangible assets were determined primarily using the income approach.

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



	Acquisition Activity
Assets acquired:
Cash	$	1,525
Accounts receivable	2,908
Other assets	1,319
Fixed assets	297
Intangible assets⁽¹⁾	27,433
Goodwill	44,767
Deferred tax asset	229
Total assets acquired	$	78,478
Liabilities assumed:
Accounts payable	$	(253	)
Contributor payable	(3,145		)
Accrued expenses	(2,431		)
Deferred revenue	(23		)
Deferred tax liability	(4,454		)
Total liabilities assumed	$	(10,306	)
Total	$	68,172

______________________________________________________________________________


(1)	Identifiable intangible assets include customer relationships, trade names, developed technology and content libraries and are being amortized on a straight-line basis over a weighted average life of approximately eight years.

As a result of the acquisitions of Rex Features and PremiumBeat, the Company recorded $0.4 million of professional fees in the three months ended March 31, 2015. There were no professional fees related to these acquisitions in the three months ended March 31, 2016. The professional fees are included in general and administrative expense.

Pro forma results of operations have not been presented because the effect of these business combinations was not material to the Company’s pro forma consolidated results of operations for any of the periods presented.

- Definition

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

+ References + Details

Accrued Expenses

3 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consist of the following (in thousands):



	As of March 31, 2016		As of December 31, 2015
Non-income taxes	7,953		7,095
Compensation	$	7,459	$	8,995
Royalty tax withholdings	6,504		6,439
Payroll tax withholdings	1,720		426
Professional fees	938		902
Marketing expenses	628		237
Other expenses	6,113		6,602
Total accrued expenses	$	31,315	$	30,696

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases for the three months ended March 31, 2016 and 2015 was $1.6 million and $1.1 million, respectively. Some leases have defined escalating rent provisions, which are expensed over the term of the related lease on a straight-line basis commencing with the date of possession. Any rent allowance or abatement is netted in this calculation. All leases require payment of real estate taxes and operating expense increases. In January 2016, the Company’s lease for its office facility in New York City was amended to, among other things, provide for the lease of approximately 25,000 square feet of additional office space and extend the term of the lease. In connection with the underlying lease agreement, the Company entered into a letter of credit as a security deposit for the leased facilities, which was increased to $2.6 million in connection with the January 2016 amendment. The letter of credit was collateralized by $2.6 million of cash as of March 31, 2016, which is recorded as restricted cash and is included in other assets in the consolidated balance sheet. As amended, the lease is scheduled to expire in 2029 and aggregate future minimum payments under the amended lease are approximately $85.6 million. Capital Expenditures As of March 31, 2016, the Company had outstanding commitments to purchase approximately $0.7 million of data servers and other equipment related to expansion of its existing business and infrastructure. Other Obligations As of March 31, 2016, the Company had other obligations in the amount of approximately $31.1 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of March 31, 2016, the Company’s other obligations for the remainder of 2016 and for the years ending December 31, 2017, 2018, 2019 and 2020 were approximately $7.8 million, $8.7 million, $6.9 million, $4.0 million and $3.8 million, respectively. Legal Matters From time to time, the Company may become party to litigation in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company reviews reserves, if any, at least quarterly and may change the amount of any such reserve in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and threats of litigation, investigations and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company currently has no material active litigation matters and, as such, no material reserves related to litigation. Indemnification In the ordinary course of business, the Company enters into contractual agreements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of the Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of any modifications made by the customer, or the context in which an image is used. The Company’s license agreements generally cap indemnification obligations at amounts ranging from $10,000 to $250,000, with certain exceptions for which the Company’s indemnification obligations are uncapped. As of March 31, 2016, the Company had recorded no material 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 its executive officers, directors and certain employees. These agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause.

Shareholders' Equity and Equity-Based Compensation

3 Months Ended

Mar. 31, 2016

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

Shareholders' Equity and Equity-Based Compensation

Stockholders’ Equity and Equity-Based Compensation

Stockholders’ Equity

Common Stock

During the three months ended March 31, 2016, the Company issued approximately 307,000 shares of common stock, related primarily to the exercise of stock options and the vesting of restricted stock units (“RSUs”).

Treasury Stock

In October 2015, the Company’s Board of Directors approved a share repurchase program, pursuant to which the Company is authorized to purchase up to $100 million of its common stock. The Company expects to fund repurchases through a combination of cash on hand, cash generated by operations and future financing transactions, if needed. Accordingly, the Company’s share repurchase program is subject to the Company having available cash to fund repurchases. Under the program, the Company is authorized to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors.

During the three months ended March 31, 2016, the Company repurchased approximately 881,000 shares of its common stock under the share repurchase program at an average per-share cost of approximately $31.59, of which $0.9 million has not been paid as of March 31, 2016 and is included in accrued expenses. As of March 31, 2016, the Company had $56.6 million remaining for purchases under the share repurchase program.

Equity-Based Compensation

The Company recognizes stock-based compensation expense for all share-based payment awards including employee stock options and RSUs granted under the 2012 Omnibus Equity Incentive Plan and sales of shares of common stock under the 2012 Employee Stock Purchase Plan (the “2012 ESPP”) based on each award’s fair value on the grant date.

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying consolidated statements of operations for the three months ended March 31, 2016 and 2015 (in thousands):



	Three Months Ended March 31,
	2016		2015
Cost of revenue	$	533	$	482
Sales and marketing	1,191		1,318
Product development	2,149		2,369
General and administrative	3,480		3,339
Total	$	7,353	$	7,508

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying consolidated statements of operations for the three months ended March 31, 2016 and 2015 (in thousands):



	Three Months Ended March 31,
	2016		2015
Stock options	$	1,736	$	2,046
RSUs	5,402		5,036
ESPP shares	172		199
RSUs related to the acquisition of WebDAM	43		227
Total	$	7,353	$	7,508

Stock Option Awards

During the three months ended March 31, 2016, the Company granted options to purchase approximately 373,000 shares of its common stock with a weighted average exercise price of $34.42. As of March 31, 2016, there were approximately 506,000 options vested and exercisable with a weighted average exercise price of $27.11. As of March 31, 2016, the total unrecognized compensation charge related to non-vested options was approximately $26.0 million, which is expected to be recognized through the fiscal year 2021.

Restricted Stock Units

During the three months ended March 31, 2016, the Company granted approximately 515,000 RSUs. As of March 31, 2016 there are approximately 1,252,000 non-vested RSUs outstanding. As of March 31, 2016, the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $50.5 million, which is expected to be recognized through fiscal year 2021.

Included in the total number of RSUs granted during the three months ended March 31, 2016 was approximately 31,000 RSUs granted in satisfaction of the Company’s liability to certain WebDAM executives to provide a fixed-dollar amount of RSUs in connection with the acquisition. As of March 31, 2016, the Company has no additional stock-based compensation awards which require liability accounting.

ESPP Shares

During the three months ended March 31, 2016, no shares of the Company’s common stock were issued under the 2012 ESPP.

Employee Benefit Plans	3 Months Ended
Employee Benefit Plans	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company has a 401(k) defined contribution plan and provides for annual discretionary employer matching contributions not to exceed 3% of employees’ base compensation per year. Matching contributions are fully vested and non-forfeitable at all times. The Company recorded employer matching contributions of $0.5 million and $0.3 million for the three months ended March 31, 2016 and 2015, respectively.

Other Expense, Net

3 Months Ended

Mar. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Other (Expense) Income, Net

Other Expense, Net

The following table presents a summary of the Company’s other income and expense activity included in the accompanying consolidated statements of operations for the three months ended March 31, 2016 and 2015 (in thousands):



	Three Months Ended March 31,
	2016			2015
Foreign currency gain (loss)	$	670		$	(2,074	)
Change in fair value of contingent consideration	(714		)	(515		)
Interest income	32			27
Total expense	$	(12	)	$	(2,562	)

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates for the three months ended March 31, 2016 and 2015 were 43.3% and 42.8%, respectively. The Company incurred discrete tax items, the net effect of which increased the effective tax rate by 2.2% and 3.3% for the three months ended March 31, 2016 and 2015, respectively. The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The effective tax rate differs from the statutory tax rate due primarily to non-deductible expenses related to non-cash equity-based compensation. During the three months ended March 31, 2016 and 2015, unrecognized tax benefits recorded by the Company for uncertain tax positions taken in prior years were not material. To the extent the remaining unrecognized tax benefits are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not material for the three months ended March 31, 2016 and 2015. As of March 31, 2016, the Company had approximately $7.3 million of undistributed earnings attributable to its foreign subsidiaries. It is the Company’s practice and intention to indefinitely reinvest the earnings of its foreign subsidiaries in those operations. The Company has not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences resulting from the earnings indefinitely reinvested outside the United States. It is currently not practicable for the Company to calculate the associated unrecognized deferred tax liability.

Net Income Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Net Income Per Share

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

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

A reconciliation of assumed exercised shares used in calculating basic and diluted net income per share available to common stockholders follows (in thousands):



	Three Months Ended March 31,
	2016	2015
Basic	35,375	35,635
Stock options and ESPP shares	351	418
Unvested RSUs and restricted stock awards	373	140
Diluted	36,099	36,193

Dilutive securities included in the calculation	1,814	2,006
Anti-dilutive securities excluded from the calculation	1,071	689

Geographic Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Geographic Information

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



	Three Months Ended March 31,
	2016		2015
North America	$	47,142	$	37,506
Europe	39,186		34,102
Rest of the world	30,324		25,914
Total revenue	$	116,652	$	97,522

Included in North America is the United States which accounted for 35% and 34% of total revenue for the three months ended March 31, 2016 and 2015, respectively. Included in Europe is the United Kingdom, which accounted for 11% of total revenue for both the three months ended March 31, 2016 and 2015. No other country accounts for more than 10% of the Company’s revenue in any period presented.

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



	March 31,		December 31,
	2016		2015
North America	$	37,007	$	31,699
Europe	877		395
Total long-lived tangible assets	$	37,884	$	32,094

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

Summary of Operations and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statements.
Unaudited Interim Financial Statements	The interim consolidated balance sheet as of March 31, 2016, the consolidated statements of operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015 are unaudited. The consolidated balance sheet as of December 31, 2015, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by U.S. GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position as of March 31, 2016 and its results of consolidated operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016 or for any other future annual or interim period. There have been no material changes in the significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 24, 2016. These financial statements should also be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP 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, the fair value of goodwill, intangible assets and other long-lived assets, non-cash equity-based compensation, the fair value of contingent consideration, the provision for income taxes and the amount of certain non-income tax accruals. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, 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.
Restricted Cash	Restricted Cash The Company’s restricted cash relates to security deposits for its office leases. As of March 31, 2016 and December 31, 2015, the Company had restricted cash of approximately $2.6 million and $1.8 million, respectively, in other assets that related to the lease for its headquarters in New York City, which expires in 2029. In January 2016, this lease was amended to provide additional space and extend the lease term, which required an increased security deposit. The carrying value of restricted cash approximates fair value.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company’s accounts receivable consist of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates.
Deferred Rent	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.
Revenue Recognition	Chargeback and Sales Refund Allowance The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of both March 31, 2016 and December 31, 2015, the Company’s combined allowance for chargebacks and sales refunds was $0.7 million, which is included in other liabilities.
Income Taxes	Income Taxes The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Significant management judgment is required in projecting ordinary income in order to determine the Company’s estimated effective tax rate. 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 period.
Recently Issued Accounting Standard Updates	Recently Issued Accounting Standard Updates In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to stock-based compensation. The new standard changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of certain related items in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective approach; amendments related to the recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively; and amendments related to the presentation of excess tax benefits on the statement of cash flows may be applied prospectively or retrospectively. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In February 2016, the FASB issued new guidance related to leases. The new standard requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and can be applied using a modified retrospective approach for all leases entered into before the effective date. Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In November 2015, the FASB issued new guidance related to income taxes. The new standard requires that all deferred tax assets and liabilities, and any related valuation allowance, be classified as non-current on the balance sheet. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, although early adoption is permitted and can be applied either prospectively or retrospectively to all periods presented. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and will eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB approved the deferral of the effective date of this guidance by one year. As a result, this new guidance will be effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company may choose to adopt the standard as of the original effective date for annual reporting periods beginning after December 15, 2016; if it does so, the Company is required to apply the standard beginning in the first interim period within the year of adoption. The Company is evaluating the impact, if any, of adopting this new accounting standard on its financial statements.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of fair value measurements

The following tables present the Company’s fair value hierarchy for its assets and liabilities (in thousands):



	As of March 31, 2016
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	81,341	$	81,341	$	—	$	—
Commercial paper	54,980		—		54,980		—
Total assets measured at fair value	$	136,321	$	81,341	$	54,980	$	—
Liabilities:
Acquisition-related contingent consideration	$	13,440	$	—	$	—	$	13,440
Total liabilities measured at fair value	$	13,440	$	—	$	—	$	13,440



	As of December 31, 2015
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	89,153	$	89,153	$	—	$	—
Commercial paper	47,078		—		47,078		—
Total assets measured at fair value	$	136,231	$	89,153	$	47,078	$	—
Liabilities:
Acquisition-related contingent consideration	$	11,075	$	—	$	—	$	11,075
Total liabilities measured at fair value	$	11,075	$	—	$	—	$	11,075

Schedule of short-term investments

Short-term investments are summarized as follows (in thousands):



	As of March 31, 2016			As of December 31, 2015
Commercial Paper:
Amortized cost	$	54,982		$	47,084
Unrealized gains	—			—
Unrealized losses	(2		)	(6		)
Total short-term investments measured at fair value	$	54,980		$	47,078

- 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

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Summary of property and equipment

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



	As of March 31, 2016			As of December 31, 2015
Computer equipment and software	$	40,836		$	37,502
Furniture and fixtures	2,819			2,933
Leasehold improvements	14,856			14,471
Property and equipment	58,511			54,906
Less accumulated depreciation	(20,627		)	(22,812		)
Property and equipment, net	$	37,884		$	32,094

Goodwill, Intangible Assets and Acquisition Activity (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in goodwill

The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments through March 31, 2016 (in thousands):



	Consolidated		Content Business		Other Category
Balance as of December 31, 2015	$	50,934	$	42,171	$	8,763
Foreign currency translation adjustment	1,451		1,451		—
Balance as of March 31, 2016	$	52,385	$	43,622	$	8,763

Schedule of intangible assets

Intangible assets consist of the following as of March 31, 2016 and December 31, 2015 (in thousands):



	As of March 31, 2016						As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets:
Customer relationships	$	18,704	$	(3,045	)	9	$	19,523	$	(3,089	)
Trade name	7,193		(1,444		)	7	7,111		(1,188		)
Developed technology	3,651		(1,383		)	4	3,734		(1,129		)
Contributor content	5,989		(729		)	9	5,138		(567		)
Patents	209		(43		)	17	193		(40		)
Domain name	160		(31		)	14	120		(25		)
Total	$	35,906	$	(6,675	)		$	35,819	$	(6,038	)

Purchase price allocation

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



	Acquisition Activity
Assets acquired:
Cash	$	1,525
Accounts receivable	2,908
Other assets	1,319
Fixed assets	297
Intangible assets⁽¹⁾	27,433
Goodwill	44,767
Deferred tax asset	229
Total assets acquired	$	78,478
Liabilities assumed:
Accounts payable	$	(253	)
Contributor payable	(3,145		)
Accrued expenses	(2,431		)
Deferred revenue	(23		)
Deferred tax liability	(4,454		)
Total liabilities assumed	$	(10,306	)
Total	$	68,172

______________________________________________________________________________


(1)	Identifiable intangible assets include customer relationships, trade names, developed technology and content libraries and are being amortized on a straight-line basis over a weighted average life of approximately eight years.

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consist of the following (in thousands):



	As of March 31, 2016		As of December 31, 2015
Non-income taxes	7,953		7,095
Compensation	$	7,459	$	8,995
Royalty tax withholdings	6,504		6,439
Payroll tax withholdings	1,720		426
Professional fees	938		902
Marketing expenses	628		237
Other expenses	6,113		6,602
Total accrued expenses	$	31,315	$	30,696

Shareholders' Equity and Equity-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

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

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



	Three Months Ended March 31,
	2016		2015
Cost of revenue	$	533	$	482
Sales and marketing	1,191		1,318
Product development	2,149		2,369
General and administrative	3,480		3,339
Total	$	7,353	$	7,508



	Three Months Ended March 31,
	2016		2015
Stock options	$	1,736	$	2,046
RSUs	5,402		5,036
ESPP shares	172		199
RSUs related to the acquisition of WebDAM	43		227
Total	$	7,353	$	7,508

Other Expense, Net (Tables)

3 Months Ended

Mar. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

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



	Three Months Ended March 31,
	2016			2015
Foreign currency gain (loss)	$	670		$	(2,074	)
Change in fair value of contingent consideration	(714		)	(515		)
Interest income	32			27
Total expense	$	(12	)	$	(2,562	)

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares

A reconciliation of assumed exercised shares used in calculating basic and diluted net income per share available to common stockholders follows (in thousands):



	Three Months Ended March 31,
	2016	2015
Basic	35,375	35,635
Stock options and ESPP shares	351	418
Unvested RSUs and restricted stock awards	373	140
Diluted	36,099	36,193

Dilutive securities included in the calculation	1,814	2,006
Anti-dilutive securities excluded from the calculation	1,071	689

Geographic Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Revenue from External Customers by Geographic Areas

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



	Three Months Ended March 31,
	2016		2015
North America	$	47,142	$	37,506
Europe	39,186		34,102
Rest of the world	30,324		25,914
Total revenue	$	116,652	$	97,522

Long-lived Assets by Geographic Areas

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



	March 31,		December 31,
	2016		2015
North America	$	37,007	$	31,699
Europe	877		395
Total long-lived tangible assets	$	37,884	$	32,094

Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts
Allowance for doubtful accounts	$ 4.7	$ 3.8
Deferred Rent
Deferred rent balance	7.8	8.0
Deferred rent current balance	0.7	0.7
Deferred rent non-current balance	7.1	7.3
Chargeback and sales refund allowances	0.7	0.7
Other assets
Restricted Cash
Restricted cash related to security deposits for leased office location that expires in 2024	$ 2.6	$ 1.8

Fair Value Measurements (Details) - Estimate of Fair Value Measurement - Recurring Basis - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets:
Total assets measured at fair value	$ 136,321	$ 136,231
Liabilities:
Total liabilities measured at fair value	13,440	11,075
Acquisition-related contingent consideration
Liabilities:
Total liabilities measured at fair value	13,440	11,075
Money market accounts
Assets:
Total assets measured at fair value	81,341	89,153
Commercial Paper
Assets:
Total assets measured at fair value	54,980	47,078
Level 1
Assets:
Total assets measured at fair value	81,341	89,153
Liabilities:
Total liabilities measured at fair value	0	0
Level 1 \| Money market accounts
Assets:
Total assets measured at fair value	81,341	89,153
Level 2
Assets:
Total assets measured at fair value	54,980	47,078
Liabilities:
Total liabilities measured at fair value	0	0
Level 2 \| Commercial Paper
Assets:
Total assets measured at fair value	54,980	47,078
Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value	13,440	11,075
Level 3 \| Acquisition-related contingent consideration
Liabilities:
Total liabilities measured at fair value	$ 13,440	$ 11,075

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Short term investments and fair value measurements
Total short-term investments measured at fair value	$ 54,980	$ 47,078
Commercial Paper:
Short term investments and fair value measurements
Amortized cost	54,982	47,084
Unrealized gains	0	0
Unrealized losses	(2)	(6)
Total short-term investments measured at fair value	$ 54,980	$ 47,078

Fair Value Measurements (Details 3) - USD ($)	1 Months Ended	3 Months Ended
Fair Value Measurements (Details 3) - USD ($)	Apr. 30, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid		$ (2,365,000)	$ (517,000)
Arbour Interactive Inc (PremiumBeat) \| Acquisition-related contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value included in other non-current liabilities				$ 7,100,000
Arbour Interactive Inc (PremiumBeat) \| Acquisition-related contingent consideration \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value contingent consideration		9,400,000
Estimate of Fair Value Measurement \| Virtual Moment, LLC (WebDAM) \| Acquisition-related contingent consideration \| Recurring Basis \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid		0
Estimate of Fair Value Measurement \| Arbour Interactive Inc (PremiumBeat) \| Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid		(2,400,000)
Estimate of Fair Value Measurement \| Other Current Liabilities \| Virtual Moment, LLC (WebDAM) \| Acquisition-related contingent consideration \| Recurring Basis \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration				$ 4,000,000
Estimate of Fair Value Measurement \| Other Current Liabilities \| Arbour Interactive Inc (PremiumBeat) \| Acquisition-related contingent consideration \| Recurring Basis \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration		$ 10,000,000
Subsequent Event \| Estimate of Fair Value Measurement \| Virtual Moment, LLC (WebDAM) \| Acquisition-related contingent consideration \| Recurring Basis \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid	$ 4,000,000

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Property and Equipment
Property and equipment	$ 58,511		$ 54,906
Less accumulated depreciation	(20,627)		(22,812)
Property and equipment, net	37,884		32,094
Depreciation expense	2,900	$ 2,100
Capitalized amount	2,800	100
Amortization expense	500	$ 100
Internal use software	6,200		3,900
Computer equipment and software
Property and Equipment
Property and equipment	40,836		37,502
Furniture and fixtures
Property and Equipment
Property and equipment	2,819		2,933
Leasehold improvements
Property and Equipment
Property and equipment	$ 14,856		$ 14,471

Goodwill, Intangible Assets and Acquisition Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 50,934
Foreign currency translation adjustment	1,451
Balance at the end of the period	52,385
Content Business
Changes in goodwill
Balance at the beginning of the period	42,171
Foreign currency translation adjustment	1,451
Balance at the end of the period	43,622
Other Category
Changes in goodwill
Balance at the beginning of the period	8,763
Foreign currency translation adjustment	0
Balance at the end of the period	$ 8,763

Goodwill, Intangible Assets and Acquisition Activity (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Amortizing intangible assets:
Gross Carrying Amount	$ 35,906	$ 35,819
Accumulated Amortization	(6,675)	(6,038)
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	18,704	19,523
Accumulated Amortization	$ (3,045)	(3,089)
Customer relationships \| Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 7,193	7,111
Accumulated Amortization	$ (1,444)	(1,188)
Trade name \| Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 3,651	3,734
Accumulated Amortization	$ (1,383)	(1,129)
Developed technology \| Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 5,989	5,138
Accumulated Amortization	$ (729)	(567)
Contributor content \| Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	9 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 209	193
Accumulated Amortization	$ (43)	(40)
Patents \| Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	17 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	120
Accumulated Amortization	$ (31)	$ (25)
Domain name \| Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	14 years

Goodwill, Intangible Assets and Acquisition Activity (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1.2	$ 0.9
Remainder of 2016	4.0
2017	5.1
2018	4.1
2019	3.8
2020	3.4
Thereafter	$ 2.9

Goodwill, Intangible Assets and Acquisition Activity (Details 4) - USD ($)			3 Months Ended
	Jan. 22, 2015	Jan. 19, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
Cash payment			$ 0	$ 62,379,000
Goodwill			52,385,000		$ 50,934,000
Change in fair value of contingent consideration			2,365,000	$ 517,000
Business Acquisitions 2015
Business Acquisition [Line Items]
Cash					1,525,000
Accounts receivable					2,908,000
Other assets					1,319,000
Fixed assets					297,000
Intangible assets(1)					27,433,000
Goodwill					44,767,000
Deferred tax asset					229,000
Total assets acquired					78,478,000
Accounts payable					(253,000)
Contributor payable					(3,145,000)
Accrued expenses					(2,431,000)
Deferred revenue					(23,000)
Deferred tax liability					(4,454,000)
Total liabilities assumed					10,306,000
Total					$ 68,172,000
Weighted average life of identifiable intangible assets				8 years
Rex Features
Business Acquisition [Line Items]
Purchase price		$ 32,700,000
Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Purchase price	$ 35,400,000
Cash payment	31,700,000
Contingent consideration	$ 3,700,000
Level 3 \| Acquisition-related contingent consideration \| Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Fair value contingent consideration			9,400,000
Other Nonoperating Income (Expense)
Business Acquisition [Line Items]
Change in fair value of contingent consideration			714,000	$ 515,000
General and administrative
Business Acquisition [Line Items]
Professional fees			0	$ 400,000
Other Liabilities \| Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Contingent consideration			9,400,000
Estimate of Fair Value Measurement \| Recurring Basis \| Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Change in fair value of contingent consideration			2,400,000
Estimate of Fair Value Measurement \| Recurring Basis \| Other Nonoperating Income (Expense) \| Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Change in fair value of contingent consideration			700,000
Estimate of Fair Value Measurement \| Recurring Basis \| General and administrative \| Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Change in fair value of contingent consideration			$ 1,700,000

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Non-income taxes	$ 7,953	$ 7,095
Compensation	7,459	8,995
Royalty tax withholdings	6,504	6,439
Payroll tax withholdings	1,720	426
Professional fees	938	902
Marketing expenses	628	237
Other expenses	6,113	6,602
Total accrued expenses	$ 31,315	$ 30,696

Commitments and Contingencies (Details) ft² in Thousands	3 Months Ended
Commitments and Contingencies (Details) ft² in Thousands	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Jan. 31, 2016 USD ($) ft²	Dec. 31, 2015 USD ($)
Operating leases
Rental expense inclusive of operating leases	$ 1,600,000	$ 1,100,000
Letter of credit as a security deposit for the leased facilities			$ 2,613,000
Future minimum lease payments under non-cancelable operating leases
Total minimum lease payments	85,600,000
Other assets
Operating leases
Letter of credit collateralized as restricted cash	$ 2,600,000			$ 1,800,000
New York CIty Office Space
Operating leases
Area of additional office space (sq ft) \| ft²			25

Commitments and Contingencies (Details 2)	3 Months Ended
Commitments and Contingencies (Details 2)	Mar. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitment to purchase data server equipment	$ 700,000
Other obligations	31,100,000
Maturity of unconditional purchase obligations
Remainder of 2016	7,800,000
2017	8,700,000
2018	6,900,000
2019	4,000,000
2020	3,800,000
Indemnifications
Minimum aggregate obligation and liability	10,000
Maximum aggregate obligation and liability	250,000
Material indemnification obligation	$ 0

Shareholders' Equity and Equity-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	$ 7,353	$ 7,508
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	533	482
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	1,191	1,318
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	2,149	2,369
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	$ 3,480	$ 3,339

Shareholders' Equity and Equity-Based Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	$ 7,353	$ 7,508
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	1,736	2,046
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	5,402	5,036
2012 ESPP \| Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense net of estimated forfeitures recognized in connection with one-time acceleration charge	172	199
Virtual Moment, LLC (WebDAM) \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	$ 43	$ 227

Shareholders' Equity and Equity-Based Compensation (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares repurchased	1,340,000	460,000
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	307,000
Authorized repurchase amount (up to)			$ 100,000,000
Number of shares repurchased	881,000
Per-share cost (in dollars per share)	$ 31.59
Amount not paid	$ 900,000
Purchase amount remaining	$ 56,600,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	515,000
Number of units outstanding	1,252,000
Value Appreciation Rights Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted	373,000
Weighted average exercise price (in dollars per share)	$ 34.42
Number of options vested and exercisable	506,000
Weighted average exercise price of options vested and exercisable (in dollas per share)	$ 27.11
2012 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge, 2012 plan non-vested options	$ 26,000,000
2012 Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized non-cash equity-based compensation charge, 2012 Plan non-vested restricted stock and RSU	$ 50,500,000
2012 ESPP \| Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	0
Virtual Moment, LLC (WebDAM) \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	31,000

Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Annual discretionary employer matching contributions (as a percent)	3.00%
Employer matching contributions	$ 0.5	$ 0.3

Other Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended
Other Expense, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Foreign currency gain (loss)	$ 670	$ (2,074)
Change in fair value of contingent consideration	(2,365)	(517)
Interest income	32	27
Other expense, net	(12)	(2,562)
Other Nonoperating Income (Expense)
Business Acquisition [Line Items]
Change in fair value of contingent consideration	$ (714)	$ (515)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	43.30%	42.80%
Increase in effective tax rate	(2.20%)	(3.30%)
Undistributed earnings	$ 7.3

Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended
Net Income Per Share (Details) - shares shares in Thousands	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Basic (in shares)	35,375	35,635
Stock options and ESPP shares (in shares)	351	418
Unvested RSUs and restricted stock awards (in shares)	373	140
Diluted (in shares)	36,099	36,193
Dilutive securities included in the calculation (in shares)	1,814	2,006
Anti-dilutive securities excluded from the calculation (in shares)	1,071	689

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 116,652	$ 97,522
Long-lived tangible assets	37,884		$ 32,094
North America
Geographic revenue based on customer location and long-lived tangible assets
Revenue	47,142	$ 37,506
Long-lived tangible assets	$ 37,007		31,699
United States \| Total revenue \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	35.00%	34.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 39,186	$ 34,102
Long-lived tangible assets	$ 877		$ 395
United Kingdom \| Total revenue \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	11.00%	11.00%
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 30,324	$ 25,914