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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Feb. 21, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 689,117,563
Entity Common Stock, Shares Outstanding		34,511,231
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 224,190	$ 241,304
Short-term investments	54,972	47,078
Accounts receivable, net	38,107	28,464
Prepaid expenses and other current assets	22,569	11,713
Total current assets	339,838	328,559
Property and equipment, net	56,101	32,094
Intangible assets, net	30,157	29,781
Goodwill	49,271	50,934
Deferred tax assets, net	23,013	25,807
Other assets	3,398	1,946
Total assets	501,778	469,121
Current liabilities:
Accounts payable	7,305	6,816
Accrued expenses	41,106	30,696
Contributor royalties payable	20,473	17,822
Deferred revenue	122,235	98,239
Other liabilities	12,378	7,211
Total current liabilities	203,497	160,784
Deferred tax liability, net	2,147	3,778
Other non-current liabilities	9,438	15,994
Total liabilities	215,082	180,556
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 36,926 and 36,146 shares issued and 34,816 and 35,686 shares outstanding as of December 31, 2016 and December 31, 2015, respectively	369	361
Additional paid-in capital	251,890	213,851
Treasury stock, at cost; 2,110 and 460 shares as of December 31, 2016 and December 31, 2015, respectively	(77,567)	(15,635)
Accumulated other comprehensive loss	(17,061)	(6,449)
Retained earnings	129,065	96,437
Total stockholders’ equity	286,696	288,565
Total liabilities and stockholders’ equity	$ 501,778	$ 469,121

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 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)	36,926,000	36,146,000
Common stock, shares outstanding (in shares)	34,816,000	35,686,000
Treasury stock, shares (in shares)	2,110,000	460,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 116,002	$ 107,260	$ 104,365	$ 97,522	$ 494,317	$ 425,149	$ 327,971
Operating expenses:
Cost of revenue	52,637	50,184	52,245	48,063	47,944	44,512	42,545	39,525	203,129	174,526	130,022
Sales and marketing	34,990	32,977	31,571	27,088	26,709	27,393	27,429	25,105	126,626	106,636	82,125
Product development	12,989	11,604	11,971	11,225	9,622	10,827	10,189	10,684	47,789	41,322	38,301
General and administrative	16,358	17,020	18,155	19,454	16,698	16,441	14,536	13,972	70,987	61,647	38,487
Total operating expenses	116,974	111,785	113,942	105,830	100,973	99,173	94,699	89,286	448,531	384,131	288,935
Income from operations	13,199	11,288	10,477	10,822	15,029	8,087	9,666	8,236	45,786	41,018	39,036
Other (expense) income, net	(1,167)	102	(212)	(12)	(3,360)	(767)	(57)	(2,562)	(1,289)	(6,746)	(859)
Income before income taxes	12,032	11,390	10,265	10,810	11,669	7,320	9,609	5,674	44,497	34,272	38,177
Provision for income taxes	2,177	1,999	3,016	4,677	4,800	3,217	4,272	2,431	11,869	14,720	16,088
Net income	9,855	9,391	7,249	6,133	6,869	4,103	5,337	3,243	32,628	19,552	22,089
Less:
Undistributed earnings to participating stockholder	0	0	0	0	0	0	0	2	0	2	42
Net income available to common stockholders	$ 9,855	$ 9,391	$ 7,249	$ 6,133	$ 6,869	$ 4,103	$ 5,337	$ 3,241	$ 32,628	$ 19,550	$ 22,047
Net income per common share available to common stockholders:
Basic (in dollars per share)	$ 0.28	$ 0.27	$ 0.21	$ 0.17	$ 0.19	$ 0.11	$ 0.15	$ 0.09	$ 0.93	$ 0.54	$ 0.63
Diluted (in dollars per share)	$ 0.27	$ 0.26	$ 0.20	$ 0.17	$ 0.19	$ 0.11	$ 0.15	$ 0.09	$ 0.91	$ 0.54	$ 0.61
Weighted average common shares outstanding:
Basic (in shares)	35,089	35,036	34,957	35,375	35,975	36,040	35,864	35,635	35,114	35,880	35,235
Diluted (in shares)	35,881	35,824	35,642	36,099	36,468	36,270	36,340	36,193	35,861	36,319	35,913

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 32,628	$ 19,552	$ 22,089
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Foreign currency translation (loss) gain	(10,612)	(5,861)	(670)
Unrealized gain on investments	0	41	32
Other comprehensive (loss) income	(10,612)	(5,820)	(638)
Comprehensive income	$ 22,016	$ 13,732	$ 21,451

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Balance at Dec. 31, 2013	$ 182,599	$ 351		$ 127,443	$ 9	$ 54,796
Balance (in shares) at Dec. 31, 2013		35,071
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	22,440			22,440
Issuance of common stock in connection with employee stock option exercises and RSU vesting	9,682	$ 5		9,677
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		493
Issuance of common stock in connection with employee stock purchase plan	2,124			2,124
Issuance of common stock in connection with employee stock purchase plan (in shares)		38
Tax effect from employee stock option exercises and RSU vesting	13,137			13,137
Other comprehensive income (loss)	(638)				(638)
Net income	22,089					22,089
Balance at Dec. 31, 2014	251,433	$ 356		174,821	(629)	76,885
Balance (in shares) at Dec. 31, 2014		35,602
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	28,280			28,280
Issuance of common stock in connection with employee stock option exercises and RSU vesting	7,202	$ 5		7,197
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		533
Issuance of common stock in connection with employee stock purchase plan	1,868			1,868
Issuance of common stock in connection with employee stock purchase plan (in shares)		46
Tax effect from employee stock option exercises and RSU vesting	1,685			1,685
Retirement of restricted shares (in shares)		(35)
Other comprehensive income (loss)	(5,820)				(5,820)
Net income	19,552					19,552
Repurchase of Treasury Shares	(15,635)		$ (15,635)
Repurchase of Treasury Shares (in shares)			460
Balance at Dec. 31, 2015	288,565	$ 361	$ (15,635)	213,851	(6,449)	96,437
Balance (in shares) at Dec. 31, 2015		36,146	460
Increase (Decrease) in Stockholders' Equity
Equity-based compensation	28,987			28,987
Issuance of common stock in connection with employee stock option exercises and RSU vesting	8,714	$ 7		8,707
Common stock withheld for the settlement of taxes related to RSU vesting (in shares)		(18)
Common stock withheld for the settlement of taxes related to RSU vesting	(1,032)			(1,032)
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		745
Issuance of common stock in connection with employee stock purchase plan	1,803	$ 1		1,802
Issuance of common stock in connection with employee stock purchase plan (in shares)		54
Tax effect from employee stock option exercises and RSU vesting	(425)			(425)
Other comprehensive income (loss)	(10,612)				(10,612)
Net income	32,628					32,628
Repurchase of Treasury Shares	(61,932)		$ (61,932)
Repurchase of Treasury Shares (in shares)			1,650
Balance at Dec. 31, 2016	$ 286,696	$ 369	$ (77,567)	$ 251,890	$ (17,061)	$ 129,065
Balance (in shares) at Dec. 31, 2016		36,926	2,110

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 32,628,000	$ 19,552,000	$ 22,089,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,946,000	14,841,000	7,917,000
Write-off of property and equipment	0	0	367,000
Deferred taxes	1,767,000	(4,840,000)	(4,897,000)
Non-cash equity-based compensation	28,080,000	28,860,000	23,768,000
Change in fair value of contingent consideration	2,925,000	4,770,000	200,000
Settlement of contingent consideration liability in excess of acquisition-date fair value	(1,640,000)	0	0
Tax effect from exercise/vesting of equity awards, net	425,000	(1,685,000)	(13,137,000)
Bad debt reserve	2,992,000	3,175,000	565,000
Chargeback and sales refund reserves	(30,000)	(222,000)	235,000
Changes in operating assets and liabilities:
Accounts receivable	(13,232,000)	(11,072,000)	(10,149,000)
Prepaid expenses and other current and non-current assets	(2,412,000)	3,366,000	20,490,000
Accounts payable and other current and non-current liabilities	10,784,000	2,244,000	9,961,000
Contributor royalties payable	3,118,000	2,904,000	2,753,000
Income taxes payable, net	(9,172,000)	862,000	91,000
Deferred revenue	24,969,000	22,576,000	22,606,000
Net cash provided by operating activities	101,148,000	85,331,000	82,859,000
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(39,959,000)	(14,003,000)	(17,950,000)
Investment (purchases)/sales, net	(8,333,000)	7,805,000	(383,000)
Acquisitions of businesses, net of cash acquired	0	(62,379,000)	(10,056,000)
Acquisition of digital content	(8,045,000)	(2,981,000)	(721,000)
Security deposit (payment)/receipt	(855,000)	(288,000)	97,000
Net cash used in investing activities	(57,192,000)	(71,846,000)	(29,013,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	8,711,000	7,197,000	9,682,000
Proceeds from issuance of common stock under Employee Stock Purchase Plan	1,803,000	1,868,000	2,124,000
Cash paid related to settlement of employee taxes related to RSU vesting	(1,032,000)	0
Settlement of contingent consideration liability	(2,360,000)	0	0
Tax effect from exercise/vesting of equity awards, net	(425,000)	1,685,000	13,137,000
Repurchase of treasury shares	(60,232,000)	(14,811,000)	0
Net cash (used in) provided by financing activities	(53,535,000)	(4,061,000)	24,943,000
Effect of foreign exchange rate changes on cash	(7,535,000)	(1,573,000)	(691,000)
Net increase (decrease) in cash and cash equivalents	(17,114,000)	7,851,000	78,098,000
Cash and cash equivalents—Beginning	241,304,000	233,453,000	155,355,000
Cash and cash equivalents—Ending	224,190,000	241,304,000	233,453,000
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 19,186,000	$ 14,481,000	$ 254,000

Summary of Operations and Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Operations and Significant Accounting Policies

Description of Business

Shutterstock (the “Company” or “Shutterstock”) is a global technology company that has created a two-sided marketplace for creative professionals to license content. The Company’s library of creative content includes: (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 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. This service provides tools for customers to better manage creative content and brand management assets.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

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

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that effect the amounts reported and disclosed in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the grant-date fair value of non-cash equity-based compensation, the assessment of recoverability of deferred tax assets and the measurement of certain contingent non-income tax liabilities.

Concentration of Risk

Financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable balances. Cash and cash equivalents and short-term investments are held with financial institutions of high quality. Balances may exceed the amount of insurance provided on such deposits.

The majority of the Company’s revenues are derived from customers who license content using electronic payments at the time of a transaction. The Company’s accounts receivable are primarily from enterprise customers who require invoicing. The Company performs initial and ongoing credit reviews on these customers, which involve consideration of the customers’ financial information, their location, and other factors to assess the customers’ ability to pay. The Company also performs ongoing financial condition evaluations for its existing customers. As of December 31, 2016 and 2015, no single customer accounted for or exceeded 10% of accounts receivable.

Additionally, no single customer accounted for or exceeded 10% of revenue for the years ended December 31, 2016, 2015 or 2014.

Cash and Cash Equivalents

Cash consists primarily of cash on hand and deposits with banks. Cash equivalents consist primarily of money market accounts and are stated at cost.

Short-Term Investments

Short-term investments consist of commercial paper with maturities of 90 days or less at the date of purchase and are classified as available-for-sale securities. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of other accumulated comprehensive (loss)/income in stockholders’ equity and in the consolidated statements 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 short-term investments were not material.

Fair Value Measurements

The Company records its financial assets and liabilities at fair value. Fair value is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. Fair value is estimated by applying inputs which are classified into the following levels of a three-tier hierarchy as follows: Level 1 - quoted prices (unadjusted) in active markets for identical assets of 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.

Restricted Cash

The Company’s restricted cash relates to amounts held by the Company’s bank to collateralize letters of credit which are pledged as security deposits for leased office locations. As of December 31, 2016 and 2015, the Company had restricted cash of $2.6 million and $1.8 million, respectively, recorded in other assets that relates to the lease for its corporate headquarters in New York City.

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



	Year Ended December 31,
	2016			2015			2014
Balance, beginning of period	$	3,768		$	1,031		$	625
Add: bad debt expense	2,992			3,175			565
Less: write-offs, net of recoveries and other adjustments	(1,265		)	(438		)	(159		)
Balance, end of period	$	5,495		$	3,768		$	1,031

Property and Equipment

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



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

Capitalized Internal Use Software

The Company capitalizes the qualifying costs of computer software developed for internal use, which are incurred during the application development stage, and amortizes them over the software’s estimated useful life. Costs incurred in the preliminary and post-implementation stages of the Company’s products are expensed as incurred. The amounts capitalized include employee’s payroll and payroll-related costs directly associated with the development activities as well as external direct costs of services used in developing internal-use software. The Company’s policy is to amortize capitalized costs using the straight-line method over the estimated useful life, which is currently three years, beginning when the software is substantially complete and ready for its intended use.

Impairment of Long-Lived Assets

Long-lived assets, inclusive of definite 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 2016, 2015 or 2014.

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 analysis, based on a specific identification basis. Since inception through December 31, 2016, the Company did not have any goodwill or indefinite lived intangible asset impairment.

Revenue Recognition

The Company records revenue net of credit card chargebacks and refunds. The majority of the Company’s revenue is generated from the license of digital content. Digital content licenses are generally purchased as part of a subscription, whereby a customer may license a high volume of content over a specific period of time, or on-demand, whereby a customer may license a fixed volume of content for a fixed price. The Company also generates revenue from licensing hosted software services through webdam’s cloud-based tools for businesses which are purchased as part of a subscription.

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 over the ratable passage of time or upon the download of licensed content, as determined by the type of customer plan purchased. Collectability is reasonably assured. A large amount of our customers purchase products by making electronic payments at the time of a transaction with a credit card. The Company establishes an allowance for credit card chargebacks and a sales refund reserve based on factors surrounding historical chargeback trends, historical sales refund trends and other information. As of December 31, 2016 and 2015, the Company has recorded an allowance for chargebacks and sales refunds of $0.6 million and $0.7 million, respectively, which is included in other liabilities. Collectability is assessed for customers who pay on terms allowing for payment beyond the date at which service commences, based on a credit evaluation for certain new customers and transaction history with existing customers and we establish an allowance for doubtful accounts based on this assessment.

The Company offers content subscription plans which range in length from thirty days to one year, and recognizes revenue from these plans on a gross basis (gross of contributor royalties) since the Company is the primary obligor in the arrangement, has control in establishing the product’s price, performs a detailed review of the digital imagery before accepting it into 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.

The Company licenses digital content to customers through third-party resellers as a way to access customers in markets where the Company does not have a significant sales and marketing 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. Accordingly, the Company recognizes revenue net of reseller commissions in accordance with the type of plan sold.

Any customer payments received in advance of revenue recognition is recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payment under standard credit terms.

Cost of Revenue

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

Contributor Royalties and Internal Sales Commissions

The Company expenses contributor royalties in the period a customer download occurs and includes the corresponding contributor royalties in cost of revenue. Contributor royalties are generally paid weekly or monthly. The Company advances certain contributor royalties which are initially deferred and expensed based on the contractual royalty rate at the time of customer download or when the Company determines future recovery is not probable. For the years ended December 31, 2016, 2015 and 2014, the Company deferred $5.5 million, $3.9 million and $1.6 million, respectively, in royalty advances and amortized $5.0 million, $2.7 million and $3.1 million, respectively, in royalty advance expense which is included in cost of revenue. As of December 31, 2016 and 2015, the Company has deferred contributor royalties of $2.7 million and $3.2 million, respectively, which is included in prepaid expenses and other current assets.

Internal sales commissions are generally paid in the month following collection or invoicing of the commissioned receivable and is reported in sales and marketing expense. Internal sales commissions are deferred and recognized over the expected future revenue stream which is generally up to 12 months. For the years ended December 31, 2016, 2015 and 2014, the Company deferred $4.5 million, $5.5 million and $3.0 million, respectively, and amortized $4.7 million, $4.5 million and $2.7 million, respectively, in internal sales commission expense which is included in sales and marketing expense. As of December 31, 2016 and 2015, the Company has deferred internal sales commission of $1.5 million and $1.7 million, respectively, which is included in prepaid expenses and other current assets.

Product Development

The Company expenses product development costs as incurred, except for costs that are capitalized for certain internal software development projects. Product development costs are primarily comprised of development personnel salaries, non-cash equity-based compensation, equipment costs as well as allocated occupancy costs and related overhead.

Advertising Costs

The Company expenses the cost of advertising and promoting its products as incurred. Such costs totaled $64.9 million, $53.0 million and $43.7 million for the years ended December 31, 2016, 2015 and 2014, 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, 2016, the Company had deferred rent of $8.6 million, which 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 is included in other liabilities and $7.3 million is included in other non-current liabilities.

Equity-Based Compensation

The Company measures and recognizes non-cash equity-based compensation expense for all stock-based awards granted to employees based on estimated fair values. The value portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period. 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. Compensation expense related to awards with a market condition is recognized ratably over the requisite service period regardless of the achievement of the market condition.

The Company uses the Black Scholes option pricing model, the closing price of the Company’s common stock on the date of grant, and the Monte Carlo simulation model, if the award has a market condition, to determine the fair value of stock options and restricted stock units (“RSUs”), respectively, granted pursuant to the Value Appreciation Rights Plan (“VAR Plan”), or the 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) and stock purchased pursuant to the 2012 Employee Stock Purchase Plan (“2012 ESPP”), which are discussed further in Note 10, Equity-Based Compensation.

The determination of the grant date fair value using an option-pricing model and simulation model requires judgment as well as assumptions regarding a number of other complex and subjective variables. These variables include the Company’s 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 the 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. In certain cases for market based awards, the Company’s expected term is based on a combination of historical data and estimates of the period of time the award will be outstanding.

•

Volatility. As the Company did 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 consisted 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 applied this process using the same or similar public companies until the fourth quarter of 2014, at which time the Company determined it had a sufficient amount of historical information regarding the volatility of its own common stock.


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


•	Dividend Yield. Before the Reorganization, the Company 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 pricing model or Monte Carlo simulation model changes significantly, the fair value for future awards may differ materially compared with the awards granted previously. The awards granted pursuant to the VAR Plan or the 2012 Plan, and stock purchased pursuant to the 2012 ESPP are subject to a time-based vesting requirement and for certain award grants are also based on a market condition. The majority of stock option awards granted under the 2012 Plan vest over four years while the majority of the restricted stock units granted under the 2012 Plan vest over three 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 a result of the completion of the IPO in October 2012, the Company began recording equity-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.

Income Taxes

The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Except as required under U.S. tax laws, the Company does not provide for U.S. taxes on its undistributed earnings of foreign subsidiaries that have not been previously taxed since the Company intends to invest such undistributed earnings indefinitely outside of the U.S. If the Company’s intention changes or if these funds are needed for U.S. operations, the Company would be required to accrue or pay U.S. taxes on some or all of these undistributed earnings and the Company’s effective tax rate would be adversely affected.

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.

The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. The Company records an income tax liability, 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 and related penalties and interest is included in the income tax provision.

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.

Other Non-income Taxes

The Company is subject to compliance requirements for certain non-income taxes, including value added taxes, sales taxes and royalty withholding taxes. Amounts charged to customers or paid on behalf of customers related to sales taxes, value-added taxes and other non-income taxes are classified net of revenue. Where appropriate, the Company has made accruals for these taxes, which are reflected in the Company’s consolidated financial statements. These accruals are subject to statute of limitations requirements and review by governmental authorities.

Treasury Stock

The Company accounts for treasury stock under the cost method and is included as a component of stockholders’ equity. Treasury stock held by the Company may be reissued in the future. The Company’s policy is to account for reissued shares as a reduction of Treasury stock on a first-in, first-out basis.

Net Income Per Share

Basic net income per share is computed by dividing the net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, is excluded from 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.

Reportable Segments

For the year ended December 31, 2016, the Company has identified two operating segments, one of which has been determined to be the Company’s primary reportable business segment. Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The non-reportable segment classified in the Other Category includes the Company’s digital asset management operating segment, which fails to meet the quantitative or qualitative thresholds for separate segment reporting.

Contingent Consideration

The Company records a liability for contingent consideration at the date of a business combination and reassesses the fair value of the liability each period until it is settled. Upon settlement of these liabilities, the portion of the contingent consideration payment that is attributable to the initial amount recorded as part of the business combination is classified as a cash flow from financing activities and the portion of the settlement that is attributable to subsequent changes in the fair value of the contingent consideration is classified as a cash flow from operating activities in the consolidated statement of cash flows.

Foreign Currency

The functional currency of the Company’s foreign subsidiaries is generally the respective local currency. Monetary assets and liabilities that are denominated in currencies other than each entity’s functional currency are remeasured into the functional currency at the period-end exchange rates and result in transactional gains and losses. During 2016, 2015 and 2014, the Company’s foreign currency transactional losses were $1.0 million, $2.6 million and $0.9 million, respectively. Translation adjustments resulting from converting the foreign subsidiaries financial statements into U.S. dollars using the period-end exchange rates for balance sheet accounts and the period average exchange rate for the statement of operations are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity.

Recently Adopted Accounting Standard Updates

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This ASU requires that all deferred tax assets and liabilities, and any related valuation allowance, be classified as non-current on the balance sheet. This guidance is effective, on either a prospective or retrospective basis, for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, although early adoption is permitted. The Company early adopted this standard retrospectively in 2016, and reclassified $7.1 million of current deferred tax assets to non-current deferred tax assets as of December 31, 2015

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides clarification and reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and should be applied retrospectively, with early adoption permitted. The Company early adopted this standard retrospectively in 2016, and such adoption had no impact on previously reported cash flows, financial position, or results of operations.

Recently Issued Accounting Standard Updates

In January 2017, the FASB issued ASU 2017-01, Business Combinations - Clarifying the Definition of a Business. ASU 2017-01 provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Adoption of the new guidance is required, prospectively, for fiscal years beginning after December 15, 2017, and early adoption is permitted with respect to transactions which take place and are first reported after the issuance of the new accounting standard and before the effective date. The Company anticipates that the impact of adoption of this guidance will not be material to its financial position or results of operations.

In November 2016, the FASB issued ASU 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash, which requires entities to present restricted cash with cash and cash equivalents on the statement of cash flows when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. We are still evaluating the effect that this guidance will have on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance is required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-19 changes how companies account for certain aspects of share-based payment awards to employees, including the requirement for all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense, providing the Company an accounting policy election to either recognize forfeitures as they occur or record an estimate, and requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. ASU 2016-09 is effective for the Company on January 1, 2017. The Company is unable to estimate the impact of this ASU as it is dependent upon the future price of the Company’s common stock, forfeitures, and timing of stock-option exercises.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09, and its related amendments, provides a unified model to determine when and how revenue is recognized and requires certain additional disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from customers. 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. ASU 2014-09 will be effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. This new guidance may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company expects to adopt this guidance in the first quarter of fiscal 2018 and apply the modified retrospective approach. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

Fair Value Measurements

12 Months Ended

Dec. 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 December 31, 2016
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	81,623	$	81,623	$	—	$	—
Commercial paper	54,972		—		54,972
Total assets measured at fair value	$	136,595	$	81,623	$	54,972	$	—
Liabilities:
Acquisition related contingent consideration	$	10,000	$	—	$	—	$	10,000
Total liabilities measured at fair value	$	10,000	$	—	$	—	$	10,000



	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. Commercial paper is classified as a level 2 measurement based on quoted market prices for identical assets, which are subject to infrequent transactions.

Acquisition-Related Contingent Consideration

The Company reassesses the fair value of contingent consideration to be settled in cash related to certain of the Company’s acquisitions 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 was included in other liabilities. No changes in fair value were recorded during the twelve months ended December 31, 2016. The contingent consideration of $4.0 million was paid in April 2016.

During the first quarter of 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. As of December 31, 2016, the full value of the amount to be paid was included in other 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.

The changes in the fair value of contingent consideration through December 31, 2016 are as follows (in thousands):



	Consolidated			Webdam⁽¹⁾			PremiumBeat⁽²⁾
Balance at January 1, 2015	$	2,560		$	2,560		$	—
Acquisition-related contingent consideration	3,745			—			3,745
Changes in fair value	4,770			1,440			3,330
Balance at December 31, 2015	11,075			4,000			7,075
Changes in fair value	2,925			—			2,925
Payments of contingent consideration	(4,000		)	(4,000		)	—
Balance at December 31, 2016	$	10,000		$	—		$	10,000

______________________________________________________________________________


(1)	Included as a component of accrued expenses and other current liabilities as of December 31, 2015


(2)	Included as a component of accrued expenses and other current liabilities as of December 31, 2016 and included as a component of other long-term liabilities as of December 31, 2015.

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

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

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



	December 31,
	2016			2015
Computer equipment and software	$	63,711		$	37,502
Furniture and fixtures	3,434			2,933
Leasehold improvements	20,944			14,471
Property and equipment	88,089			54,906
Less: accumulated depreciation	(31,988		)	(22,812		)
Property and equipment, net	$	56,101		$	32,094

Depreciation and amortization expense related to property and equipment amounted to $14.9 million, $10.1 million and $7.4 million, for the years ended December 31, 2016, 2015 and 2014, respectively. Depreciation and amortization expense is included in cost of revenue and general and administrative expense based on the nature of the asset. In connection with its move to its new headquarters, the Company recorded a loss on disposal of certain fixed assets in the amount of $0.4 million for the year ended December 31, 2014. There was no loss on disposal for the years ended December 31, 2016 and 2015.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $20.0 million, $3.3 million and $0.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software. During 2016, the Company invested significantly in its product development and hosting infrastructure to enhance its customer experience and increase the efficiency with which management deploys new products and features.

The portion of total depreciation expense related to capitalized internal-use software was $3.6 million, $0.6 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue and general and administrative expense.

As of December 31, 2016 and December 31, 2015, the Company had capitalized internal-use software of $20.3 million and $3.9 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The Company’s goodwill balance is attributable to its Bigstock, webdam, Music and Editorial 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 for the periods ended December 31, 2016 and 2014 (in thousands):



	Content Business			Other Category		Consolidated
Balance as of December 31, 2015	$	42,171		$	8,763	$	50,934
Foreign currency translation adjustment	(1,663		)	—		(1,663		)
Balance as of December 31, 2016	$	40,508		$	8,763	$	49,271

Intangible Assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2016 and 2015 (in thousands):



	As of December 31, 2016								As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	16,712	$	(4,344	)	$	12,368	9	$	19,523	$	(3,089	)	$	16,434
Trade name	6,677		(2,030		)	4,647		7	7,111		(1,188		)	5,923
Developed technology	3,224		(1,934		)	1,290		4	3,734		(1,129		)	2,605
Contributor content	12,958		(1,386		)	11,572		11	5,138		(567		)	4,571
Patents	227		(52		)	175		18	193		(40		)	153
Domain name	160		(55		)	105		12	120		(25		)	95
Total	$	39,958	$	(9,801	)	$	30,157		$	35,819	$	(6,038	)	$	29,781

Amortization expense related to the intangible assets was $5.1 million, $4.7 million and $0.6 million for the years ended December 31, 2016, 2015 and 2014, 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: $5.3 million in 2017, $4.5 million in 2018, $4.3 million in 2019, $3.7 million in 2020, $3.3 million in 2021 and $9.0 million thereafter.

The Company performed its annual goodwill assessment as October 1, 2015 and concluded that the fair value of its reporting units were greater than their carrying amounts, and therefore no adjustment to the carrying value of goodwill was necessary. The Company utilized a qualitative assessment on its Bigstock, Music and webdam reporting units to determine whether a quantitative assessment was necessary and determined there were no indicators of potential impairment. For its Editorial reporting unit, the Company performed a quantitative assessment utilizing the income and market approach. The assessments performed concluded that the fair value of the reporting unit was in excess of its carrying value. The key assumption that impacts the quantitative assessment is the expected future cash flows. The Company’s discounted cash flow analysis factors in assumptions on revenue and expense growth rates. These estimates are based on the Company’s historical experience and projections of future activity, factoring in customer demand and a cost structure necessary to achieve related revenue. Additionally, the discounted cash flow analysis factors in expected amounts of working capital and weighted cost of capital. Changes to the Company’s critical assumptions could have an effect on the estimated fair value of the Editorial reporting units. A hypothetical decrease of 10% in the expected annual cash flows, with all other assumptions unchanged, would have decreased the fair value of the reporting units by approximately 8%, but would not have resulted in the fair value being lower than the carrying amount.

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

Acquisition Activity

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Acquisition Activity

Acquisition Activity in 2016

The Picture Desk Limited

On September 1, 2016, the Company acquired content assets and intellectual property of The Picture Desk Limited, which includes over 700,000 images from two image collections: The Art Archive and The Kobal Collection, pursuant to an asset purchase agreement. The total purchase price consisted of a cash payment of $3.9 million including transaction costs, which has been recorded as an addition to intangible assets, of which $3.6 million has been recorded under contributor content with an estimated useful life of 15 years, and the remainder has been recorded under trade name with an estimated useful life of 7 years.

Acquisition Activity in 2015

Rex Features (Holdings) Limited

On January 19, 2015, the Company acquired all of the shares of Rex Features (Holdings) Limited (“Rex Features”) pursuant to a stock purchase agreement. The transaction was accounted for as a business combination and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

Rex Features is a photographic press agency in Europe that offers media companies and advertisers images and videos, including a live feed of edited celebrity, entertainment, sports and news images and videos, along with access to a multi-decade archive of iconic images.

The total purchase price consisted of a cash payment of $32.7 million. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands):



Assets:
Cash	$	1,525
Accounts receivables	2,908
Other assets	356
Fixed assets	92
Intangible Assets:
Customer relationships	13,768
Trade name	4,993
Developed technology	3,026
Photo library	484
Goodwill	14,918
Total assets acquired	$	42,070
Liabilities:
Accounts payable	$	(253	)
Contributor payable	(2,249		)
Accrued expenses	(2,387		)
Deferred tax liability	(4,454		)
Total liabilities assumed	$	(9,343	)
Total	$	32,727

The goodwill arising from the transaction is primarily attributable to expected operational synergies and is not deductible for income tax purposes.

Arbour Interactive Inc.

On January 22, 2015, the Company acquired substantially all of the assets and certain liabilities of Arbour Interactive Inc. (“PremiumBeat”) pursuant to an asset purchase agreement. The transaction was accounted for as a business combination, and accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

The fair value of consideration transferred in this business combination 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 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 of post-acquisition revenue related to the Company’s music business. The fair value of the contingent consideration was determined using a Monte Carlo model with subsequent changes in the fair value expensed in earnings. During 2016, the settlement amount of the contingent consideration related to the PremiumBeat acquisition was determined to be $10.0 million, which will be paid in early 2017. As of December 31, 2016, the Company’s contingent consideration balance is $10.0 million, which reflects the fair value, and is included in other non-current liabilities.

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



Assets:
Other assets	$	963
Fixed assets	205
Intangible Assets:
Customer relationships	3,000
Trade name	1,400
Music catalog	584
Developed technology	178
Goodwill	29,849
Deferred tax asset	229
Total assets acquired	$	36,408
Liabilities:
Contributor payable	$	(896	)
Accrued expenses	(44		)
Deferred revenue	(23		)
Total liabilities assumed	$	(963	)
Total	$	35,445

The goodwill arising from the transaction is primarily attributable to expected operational synergies and is deductible for income tax purposes.

Unaudited Pro Forma Consolidated Financial Information

The following unaudited pro forma consolidated financial information reflects the results of operations of the Company for the years ended December 31, 2015 and 2014, as if the Rex Features and PremiumBeat acquisitions completed during fiscal 2015 had closed on January 1, 2014, after giving effect to certain purchase accounting adjustments. These pro forma results are not necessarily indicative of what the Company’s operating results would have been had the acquisitions actually taken place at the beginning of the period (in thousands):



	Year Ended December 31,
	2015		2014
Revenue	$	426,420	$	353,636
Net income	$	19,558	$	21,285

Acquisition Activity in 2014

Virtual Moment, LLC

On March 14, 2014, the Company acquired certain assets and certain liabilities of Virtual Moment, LLC (dba webdam) (“webdam”) pursuant to an asset purchase arrangement. The transaction was accounted for as a business combination and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

The total purchase price of approximately $12.4 million consists of an initial cash payment of approximately $10.0 million and approximately $2.4 million in contingent consideration based on certain performance criteria of post-acquisition revenue. The fair value of the contingent consideration was determined using a Monte-Carlo simulation approach. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands):



Intangible assets:
Trade name	$	500
Customer relationships	2,800
Developed technology	600
Goodwill	8,763
Other assets acquired	836
Total liabilities assumed	(1,083		)
Total	$	12,416

The goodwill arising from the transaction is primarily attributable to expected operational synergies and is deductible for income tax purposes. The contingent consideration of $4.0 million, related to this transaction was paid in April 2016.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Accrued Expenses

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	December 31,
	2016		2015
Compensation	$	13,732	$	8,995
Non-income taxes	7,383		7,095
Royalty tax withholdings	6,921		6,439
Other expenses	13,070		8,167
Total accrued expenses	$	41,106	$	30,696

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

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



	Year Ended December 31,
	2016		2015			2014
Domestic	$	38,549	$	36,643		$	37,866
Foreign	5,948		(2,371		)	311
Income before income taxes	$	44,497	$	34,272		$	38,177

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



	Year Ended December 31,
	2016			2015			2014
Current:
Federal provision	$	6,389		$	16,551		$	19,362
State and local provision	852			1,683			1,502
Foreign provision	2,861			1,326			121
Deferred:
Federal benefit	3,376			(3,311		)	(5,406		)
State and local provision	(34		)	33			509
Foreign benefit	(1,575		)	(1,562		)	—
Provision for income taxes	$	11,869		$	14,720		$	16,088

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



	Year Ended December 31,
	2016		2015		2014
U.S. income tax at federal statutory rate	35.0	%	35.0	%	35.0	%
Tax credits	(12.0	)	—		—
State and local taxes, net of federal benefit	2.9		3.7		4.2
Non-deductible—restricted stock	2.1		2.7		1.9
Foreign rate differential	(1.8	)	1.2		(0.1	)
Uncertain tax positions	(0.4	)	(1.0	)	0.3
Non-deductible—other	0.9		1.4		0.8
Total provision for income taxes	26.7	%	43.0	%	42.1	%

The tax effect of the Company’s temporary differences that give rise to deferred tax assets and liabilities are presented below (in thousands):



	Year Ended December 31,
	2016			2015
Deferred tax assets:
Non-cash equity-based compensation	$	10,611		$	10,407
Intangible amortization	8,197			9,627
Non-income tax accruals	3,682			3,416
Deferred rent	3,123			2,908
Other liabilities	5,600			5,249
Deferred tax assets	31,213			31,607
Deferred tax liabilities:
Depreciation and amortization	(10,347		)	(9,578		)
Net deferred tax assets	$	20,866		$	22,029

As of December 31, 2016, the Company had approximately $6.2 million of net 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 U.S. It is currently not practicable to calculate the associated unrecognized deferred tax liability.

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



	Year Ended December 31,
	2016			2015			2014
Balance of unrecognized tax benefits at January 1	$	1,479		$	1,500		$	1,500
Gross additions for tax positions for prior years	886			280			—
Gross additions for tax positions for current year	360			57			—
Gross expirations	(1,270		)	(358		)	—
Balance of unrecognized tax benefits at December 31	$	1,455		$	1,479		$	1,500

During the years ended December 31, 2016, 2015 and 2014, the Company recorded reserves for uncertain tax benefits in the amount of $1.2 million, $0.3 million and $0, respectively, a portion of which was established through purchase accounting. The Company recognized a tax benefit in the amount of $1.3 million and $0.4 million during the year ended December 31, 2016 and 2015, respectively, related to the release of a prior year uncertain tax position due to a lapse in the statute of limitations. To the extent the remaining unrecognized tax benefits are ultimately recognized, the Company’s effective tax rate may be impacted in future periods in the amount of $1.4 million. The liability for unrecognized tax benefits is included in other non-current liabilities.

The Company and its subsidiaries file income tax returns in the U.S. and various foreign jurisdictions. The Company is no longer subject to U.S. federal or state and local tax examinations by tax authorities for years before 2010. The Company anticipates that the total unrecognized tax benefits to reverse in the next fiscal year will not be material.

The Company recognizes interest expense and tax penalties related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits and its recognized tax benefits associated with the release of prior years’ uncertain tax positions due to lapses in the statutes of limitations have not been material for the years ended December 31, 2016, 2015 and 2014.

As of December 31, 2016, the Company has $0.7 million in tax net operating loss carryforwards in the U.K. which are available to reduce future income taxes, none of which are expected to expire unutilized.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Lease Commitments and Other Obligations

Future minimum lease payments under non-cancellable operating leases and other unconditional cash obligations as of December 31, 2016 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2017	$	7,409	$	12,626
2018	7,133		11,918
2019	7,069		8,893
2020	6,743		7,133
2021	6,312		—
Thereafter	55,920		—
Total minimum lease payments	$	90,586	$	40,570

Lease Commitments

The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases for the years ended December 31, 2016, 2015 and 2014 was approximately $7.2 million, $4.8 million and $4.2 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.

On March 21, 2013, the Company entered into an operating lease agreement to lease its corporate headquarters facility 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 $2.6 million as a security deposit for the leased facilities. The letter of credit was collateralized by $2.6 million of cash and as such, is deemed to be restricted cash and is included in other assets on the consolidated balance sheets as of December 31, 2016. As amended, the lease is scheduled to expire in 2029 and aggregate future minimum lease payments are approximately $82.9 million.

Other Obligations

As of December 31, 2016, the Company had other obligations of approximately $40.6 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services.

Other Commitments

On October 20, 2016, the Company entered into a multi-part transaction with an unrelated third-party contributor (the “Transaction Party”). The transaction included three primary components: (a) a revolving credit facility pursuant to which the Company would be obligated to lend up to $4.6 million (the “Facility”) to the Transaction Party. The Facility has a term of five years and requires the Transaction Party to make quarterly payments of principal to the Company beginning on the fourth anniversary of the Facility. The facility bears interest at 10.0%, with all interest payments deferred until maturity, and the entire unpaid balance of principal and accrued interest due upon maturity; (b) the Company will be the exclusive distributor of the Transaction Party’s content in certain markets subject to certain limitations; and (c) the Company, at its option, may acquire the Transaction Party at any time after the third anniversary of the Facility or match any third-party acquisition offer with respect to the Transaction Party at any time until the fifth anniversary of the Facility.

As of December 31, 2016, the Transaction Party has made no borrowings under the Facility.

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.

Customer Indemnifications

In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of the modifications made by the customer, or the context in which an image is used. The standard maximum aggregate obligation and liability to any one customer for all claims is generally limited to ten thousand dollars. The Company offers certain of its customers greater levels of indemnification, including unlimited indemnification. As of December 31, 2016, the Company has recorded no liabilities related to indemnification for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary.

Employment Agreements and Indemnification Agreements

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

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 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’ annual base salary per year. Matching contributions are fully vested and non-forfeitable at all times. The Company recorded employer matching contributions of $1.7 million, $1.2 million and $0.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Equity-Based Compensation

12 Months Ended

Dec. 31, 2016

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

Equity-Based Compensation

The Company recognizes stock-based compensation expense for all share-based payment awards including employee stock options, restricted stock awards and RSUs granted under the 2012 Plan (and formerly under the VAR Plan) and sales of shares of common stock under 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 line item included in the Company’s statements of operations for the years ended December 31, 2016, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2016		2015		2014
Cost of revenue	$	1,938	$	1,896	$	1,283
Sales and marketing	5,444		4,520		3,912
Product development	7,681		7,565		7,597
General and administrative	13,017		14,879		10,976
Total	$	28,080	$	28,860	$	23,768

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the Company’s accompanying consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2016		2015		2014
Stock Options	$	7,295	$	8,191	$	9,737
Restricted Stock Units	20,136		19,186		10,262
Restricted Stock	—		—		1,663
Webdam⁽¹⁾	43		579		1,328
ESPP	606		904		778
Total	$	28,080	$	28,860	$	23,768

_____________________________________________


(1)	Represents expense related to a portion of the equity awards issued to former owners of WebDAM that were previously classified as a liability.

2012 Omnibus Equity Incentive Plan

On October 10, 2012, the Company’s 2012 Plan became effective. The 2012 Plan provides for the grant of incentive stock options to Company employees, and for the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares to employees, directors and consultants. The maximum aggregate number of shares that may be issued under the 2012 Plan was initially 6,750,000 shares of common stock. The number of shares available for issuance under the 2012 Plan will be increased annually commencing January 1, 2013 by an amount equal to the lesser of 1,500,000 shares of common stock, 3% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or such other amount as determined by the Company’s board of directors. Any awards issued under the 2012 Plan that are forfeited by the participant, will become available for future grant under the 2012 Plan. The number of shares of common stock available under the 2012 Plan was automatically increased by approximately 1,070,000 and 1,068,000 shares, respectively, on January 1, 2016 and 2015, pursuant to the automatic increase provisions of the 2012 Plan.

Stock Option Awards

The following is a summary of stock option awards and weighted average exercise price per option:



	Plan Options		Weighted Average Exercise Price
Options outstanding at December 31, 2015	1,533,749		$	46.71
Options granted	515,000		37.06
Options exercised	(415,270	)	21.01
Options cancelled or expired	(222,110	)	41.85
Options outstanding at December 31, 2016	1,411,369		$	51.52
Options exercisable at December 31, 2016	249,188		$	32.72
Options vested and expected to vest at December 31, 2016	1,366,793		$	51.91

Intrinsic value of stock options is calculated as the market price of the Company’s common stock multiplied by the number of stock options. The intrinsic value of the Company’s stock options is as follows (in thousands):



	As of December 31,
	2016		2015
Stock options outstanding	$	12,400	$	8,400
Stock options exercisable	4,700		7,500
Stock options vested and expected to vest	$	12,000	$	8,400

The intrinsic value of stock options exercised for the years ended December 31, 2016, 2015 and 2014 was approximately $10.6 million and $12.7 million and $30.5 million, respectively.

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2016, 2015 and 2014:



	Year Ended Year Ended December 31,
	2016			2015			2014
Expected term (in years)	6.3			6.5			6.3
Volatility	53		%	52		%	49		%
Risk-free interest rate	1.48		%	1.7		%	2.1% - 2.8%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	19.03		$	15.90		$	43.19

On April 24, 2014, the Company granted 500,000 stock options with a market-based condition to its Chief Executive Officer (“CEO”). The stock options have an exercise price of $80.94 per share and will not vest or become exercisable unless (i) the CEO remains continuously employed by the Company until the fifth anniversary of the date of grant and (ii) the average 90-day closing price of the Company’s common stock equals or exceeds $161.88 per share for any 90 consecutive calendar days during the period commencing on the fifth anniversary of the date of grant and ending on the tenth anniversary of the date of grant, inclusive provided that the CEO remains continuously employed by the Company until the date of satisfaction of such condition. The derived requisite service period was determined to be six years based on a valuation technique. The total fair value of the grant is $21.6 million and is being recognized over the derived requisite service period. In the event that the market condition remains unsatisfied upon completion of the requisite service period, no charge will be reversed.

As of December 31, 2016, the total unrecognized compensation charge related to 2012 Plan non-vested options is approximately $22.4 million, which is expected to be recognized through fiscal year 2021.

Restricted Stock 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’s predecessor in consideration of future services to be rendered. This interest was converted to Restricted Stock in connection with the Company’s initial public offering, and terminated during 2014. No additional restricted stock has been granted by the Company.

Restricted Stock Units Awards

The following table presents a summary of the Company’s RSUs activity for the year ended December 31, 2016:



	Plan RSUs		Weighted Average Fair Value
Non-vested balance at December 31, 2015	1,054,473		$	57.25
Units granted	934,549		40.10
Units vested	(329,370	)	59.54
Units cancelled or forfeited	(374,691	)	48.59
Non-vested balance at December 31, 2016	1,284,961		$	46.72

In connection with the webdam acquisition, as an incentive to retain the services of certain webdam employees, the Company granted non-vested RSUs that vested over two years from the date of acquisition. As these equity awards are subject to post-acquisition employment, the Company accounts for them as compensation expense. A portion of these equity awards are accounted for as liability-classified awards, because the obligations are based on fixed monetary amounts that are known at the inception of the obligation, to be settled with a variable number of shares of the Company’s common stock when the equity awards vest.

As of December 31, 2016, the total unrecognized compensation charge related to the restricted stock units is approximately $43.8 million, which is expected to be recognized through fiscal 2021.

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 $25,000 worth of stock for each calendar year. The Company has initially 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 of the immediately preceding fiscal year, or such other amount as determined by the Company’s board of directors. As of December 31, 2016, approximately 233,000 shares have been issued under the 2012 ESPP. The number of shares of common stock available under the 2012 ESPP was automatically increased by 1,000,000 shares for each period on January 1, 2016 and 2015, pursuant to the automatic increase provisions of 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 Year Ended December 31,
	2016		2015		2014
Expected term (in years)	0.50		0.50		0.50
Volatility	59	%	52	%	49% - 52%
Risk-free interest rate	0.46	%	0.07% - 0.42%		0.08% - 0.60%
Dividend yield	—		—		—

As of December 31, 2016, the Company has suspended the ESPP plan.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to the prior distribution rights of any outstanding preferred stock. The common stock has no preemptive or conversion rights or other subscription rights. The outstanding shares of common stock are fully paid and non-assessable. Under the amended and restated certificate of incorporation, which became effective upon completion of the IPO, the Company’s certificate of incorporation authorized 200,000,000 shares of $0.01 per share par value common stock. Preferred Stock Under the amended and restated certificate of incorporation, which became effective upon completion of the IPO, the Company’s board of directors has the authority, without further action by the stockholders, to issue up to 5,000,000 shares of preferred stock, $0.01 par value, in one or more series. The board of directors also has the authority to designate the rights, preferences, privileges and restrictions of each such series, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of Shutterstock without further action by the stockholders. The issuance of preferred stock with voting and conversion rights may also adversely affect the voting power of the holders of common stock. In certain circumstances, an issuance of preferred stock could have the effect of decreasing the market price of the common stock. As of December 31, 2016, the Company has not issued and has no plans to issue any shares of preferred stock. Treasury Stock In October 2015, the Company’s Board of Directors approved a share repurchase program, pursuant to which the Company is authorized to purchase up to $100 million of its common stock. As of December 31, 2016, the Company has repurchased approximately 2,110,000 shares of its common stock under the share repurchase program at an average per-share cost of approximately $36.76, of which $2.5 million has not been paid and is included in accrued expenses as of December 31, 2016. As of December 31, 2016, the Company has $22.5 million remaining for purchases under the share repurchase program. Subsequent to December 31, 2016, the Company’s Board of Directors approved an increase to the stock repurchase program, pursuant to which the Company is authorized to purchase an addition $100 million of its common stock, in addition to the $22.5 million that was remaining under the previous authorization as of December 31, 2016. 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 share repurchase program is subject to the Company having available cash to fund repurchases. Under the share repurchase program, management is authorized to purchase shares 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.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Other (Expense)/Income, net

12 Months Ended

Dec. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Other (Expense)/Income, net

The following table presents a summary of the Company’s other (expense)/income activity included in the accompanying consolidated statements of operations (in thousands):



	Year Ended December 31,
	2016			2015			2014
Foreign currency loss	$	(167	)	$	(2,003	)	$	(743	)
Change in contingent consideration fair value	(1,271		)	(4,770		)	(200		)
Interest income	149			27			84
Other (expense)/income, net	$	(1,289	)	$	(6,746	)	$	(859	)

Net Income Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Net Income Per Share

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



	Year Ended December 31,
	2016	2015	2014
Basic	35,114	35,880	35,235
Stock options and employee stock purchase plan shares	441	345	586
Unvested restricted stock awards	306	94	92
Diluted	35,861	36,319	35,913

Potentially dilutive shares included in the calculation	1,954	1,624	2,106
Anti-dilutive shares excluded from the calculation	999	1,064	520

Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Financial Information

The following table summarizes segment information for the years ended December 31, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2016			2015			2014
Content Segment:
Segment revenue	$	483,278		$	417,310		$	324,533
Segment operating expenses	274,978			234,484			172,026
Segment operating profit	208,300			182,826			152,507
Other Category:
Other revenue	11,039			7,839			3,438
Other operating expenses	16,168			12,370			7,675
Other operating loss	(5,129		)	(4,531		)	(4,237		)
Segment and Other Category:
Segment and other revenue	494,317			425,149			327,971
Segment and other operating expenses	291,146			246,854			179,701
Segment and other operating profit	203,171			178,295			148,270
Less: Unallocated corporate expenses⁽¹⁾	(157,385		)	(137,277		)	(109,234		)
Income from operations	45,786			41,018			39,036


(1)	Unallocated corporate expenses primarily relate to shared operational support functions such as sales, marketing, public relations, product development and engineering support not allocated to specific operating segments and general and administrative functions of human resources, legal, finance and information technology.

Asset information on a segment basis is not disclosed as this information is not separately identified or internally reported to the Company’s CODM.

Geographic Financial Information

The following represents our geographic revenue based on customer location (in thousands):



	Year Ended December 31,
	2016		2015		2014
North America	$	197,650	$	166,225	$	121,896
Europe	161,906		144,103		115,245
Rest of the world	134,761		114,821		90,830
Total revenue	$	494,317	$	425,149	$	327,971

Included in North America is the United States which comprises 34%, 34%, and 33% of total revenue for years ended December 31, 2016, 2015, and 2014, respectively. The United Kingdom accounts for approximately 10% and 11% of total revenue for the year ended December 31, 2016 and 2015, respectively, and less than 10% of total revenue for 2014. No other country accounts for more than 10% of the Company’s revenue in any period.

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



	December 31,
	2016		2015
North America	$	54,913	$	31,699
Europe	1,141		395
Rest of world	47		—
Total long-lived tangible assets	$	56,101	$	32,094

Included in North America is the United States, which comprises 95% and 98% of total long-lived tangible assets as of December 31, 2016 and 2015, respectively.

- Definition

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

+ References

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+ Details

Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Financial Data

The following table sets forth, for the periods indicated, the Company’s financial information for the eight most recent quarters ended December 31, 2016. 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, 2016			Sep 30, 2016		Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015

	(in thousands, except per share data)
Revenue	$	130,173		$	123,073	$	124,419		$	116,652		$	116,002		$	107,260		$	104,365		$	97,522
Operating expenses⁽¹⁾:
Cost of revenue	52,637			50,184		52,245			48,063			47,944			44,512			42,545			39,525
Sales & marketing	34,990			32,977		31,571			27,088			26,709			27,393			27,429			25,105
Product development	12,989			11,604		11,971			11,225			9,622			10,827			10,189			10,684
General and administrative	16,358			17,020		18,155			19,454			16,698			16,441			14,536			13,972
Total operating expenses	116,974			111,785		113,942			105,830			100,973			99,173			94,699			89,286
Income from operations	13,199			11,288		10,477			10,822			15,029			8,087			9,666			8,236
Other (expense)/ income, net⁽²⁾	(1,167		)	102		(212		)	(12		)	(3,360		)	(767		)	(57		)	(2,562		)
Income before income taxes	12,032			11,390		10,265			10,810			11,669			7,320			9,609			5,674
Provision for income tax	2,177			1,999		3,016			4,677			4,800			3,217			4,272			2,431
Net income	9,855			9,391		7,249			6,133			6,869			4,103			5,337			3,243
Less: Undistributed earnings to participating stockholder	—			—		—			—			—			—			—			2
Net income available to common stockholders	$	9,855		$	9,391	$	7,249		$	6,133		$	6,869		$	4,103		$	5,337		$	3,241
Net income per common share available to common stockholders:
Basic	$	0.28		$	0.27	$	0.21		$	0.17		$	0.19		$	0.11		$	0.15		$	0.09
Diluted	$	0.27		$	0.26	$	0.20		$	0.17		$	0.19		$	0.11		$	0.15		$	0.09
Weighted average common shares outstanding:
Basic	35,089			35,036		34,957			35,375			35,975			36,040			35,864			35,635
Diluted	35,881			35,824		35,642			36,099			36,468			36,270			36,340			36,193

____________________________________________________________________________


(1)	Includes non-cash equity-based compensation of $28,080 and $28,860 for the years ended December 31, 2016 and 2015, respectively.


(2)	Includes changes in fair value of contingent consideration related to the PremiumBeat (2016 and 2015) and webdam (2015) acquisitions; transaction gains and losses primarily related to cash balances of subsidiaries denominated in a currency other than the subsidiaries’ functional currencies; and interest income and expense, which is not material in any period presented.

Summary of Operations and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

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

Use of Estimates

Concentration of Risk

Cash and Cash Equivalents

Cash consists primarily of cash on hand and deposits with banks. Cash equivalents consist primarily of money market accounts and are stated at cost.

Short-Term Investments

Fair Value Measurements

Restricted Cash

Accounts Receivable and Allowance for Doubtful Accounts

Property and Equipment

Capitalized Internal Use Software

Impairment of Long-Lived Assets

Goodwill and Intangible Assets

Revenue Recognition

Cost of Revenue

Contributor Royalties and Internal Sales Commissions

Product Development

Advertising Costs

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

Deferred Rent

Equity-Based Compensation

•


•	Expected Term. The expected term is estimated using the simplified method allowed under Securities and Exchange Commission (“SEC”) guidance. In certain cases for market based awards, the Company’s expected term is based on a combination of historical data and estimates of the period of time the award will be outstanding.

•


•	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. Before the Reorganization, the Company 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 and Other Non-Income Taxes

Income Taxes

Other Non-income Taxes

Treasury Stock

Net Income Per Share

Reportable Segments

Contingent Consideration

Foreign Currency

Recently Issued Accounting Standard Updates

Summary of Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Schedule of changes in the allowance for doubtful accounts

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



	Year Ended December 31,
	2016			2015			2014
Balance, beginning of period	$	3,768		$	1,031		$	625
Add: bad debt expense	2,992			3,175			565
Less: write-offs, net of recoveries and other adjustments	(1,265		)	(438		)	(159		)
Balance, end of period	$	5,495		$	3,768		$	1,031

Schedule of useful lives of Property and Equipment

Generally, the useful lives are as follows:



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

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



	December 31,
	2016			2015
Computer equipment and software	$	63,711		$	37,502
Furniture and fixtures	3,434			2,933
Leasehold improvements	20,944			14,471
Property and equipment	88,089			54,906
Less: accumulated depreciation	(31,988		)	(22,812		)
Property and equipment, net	$	56,101		$	32,094

Fair Value Measurements (Tables)

12 Months Ended

Dec. 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 December 31, 2016
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	81,623	$	81,623	$	—	$	—
Commercial paper	54,972		—		54,972
Total assets measured at fair value	$	136,595	$	81,623	$	54,972	$	—
Liabilities:
Acquisition related contingent consideration	$	10,000	$	—	$	—	$	10,000
Total liabilities measured at fair value	$	10,000	$	—	$	—	$	10,000



	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 changes in fair value contingent consideration

The changes in the fair value of contingent consideration through December 31, 2016 are as follows (in thousands):



	Consolidated			Webdam⁽¹⁾			PremiumBeat⁽²⁾
Balance at January 1, 2015	$	2,560		$	2,560		$	—
Acquisition-related contingent consideration	3,745			—			3,745
Changes in fair value	4,770			1,440			3,330
Balance at December 31, 2015	11,075			4,000			7,075
Changes in fair value	2,925			—			2,925
Payments of contingent consideration	(4,000		)	(4,000		)	—
Balance at December 31, 2016	$	10,000		$	—		$	10,000

______________________________________________________________________________


(1)	Included as a component of accrued expenses and other current liabilities as of December 31, 2015


(2)	Included as a component of accrued expenses and other current liabilities as of December 31, 2016 and included as a component of other long-term liabilities as of December 31, 2015.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Summary of property and equipment

Generally, the useful lives are as follows:



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

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



	December 31,
	2016			2015
Computer equipment and software	$	63,711		$	37,502
Furniture and fixtures	3,434			2,933
Leasehold improvements	20,944			14,471
Property and equipment	88,089			54,906
Less: accumulated depreciation	(31,988		)	(22,812		)
Property and equipment, net	$	56,101		$	32,094

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 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 for the periods ended December 31, 2016 and 2014 (in thousands):



	Content Business			Other Category		Consolidated
Balance as of December 31, 2015	$	42,171		$	8,763	$	50,934
Foreign currency translation adjustment	(1,663		)	—		(1,663		)
Balance as of December 31, 2016	$	40,508		$	8,763	$	49,271

Schedule of intangible assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2016 and 2015 (in thousands):



	As of December 31, 2016								As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	16,712	$	(4,344	)	$	12,368	9	$	19,523	$	(3,089	)	$	16,434
Trade name	6,677		(2,030		)	4,647		7	7,111		(1,188		)	5,923
Developed technology	3,224		(1,934		)	1,290		4	3,734		(1,129		)	2,605
Contributor content	12,958		(1,386		)	11,572		11	5,138		(567		)	4,571
Patents	227		(52		)	175		18	193		(40		)	153
Domain name	160		(55		)	105		12	120		(25		)	95
Total	$	39,958	$	(9,801	)	$	30,157		$	35,819	$	(6,038	)	$	29,781

Acquisition Activity (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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



Assets:
Other assets	$	963
Fixed assets	205
Intangible Assets:
Customer relationships	3,000
Trade name	1,400
Music catalog	584
Developed technology	178
Goodwill	29,849
Deferred tax asset	229
Total assets acquired	$	36,408
Liabilities:
Contributor payable	$	(896	)
Accrued expenses	(44		)
Deferred revenue	(23		)
Total liabilities assumed	$	(963	)
Total	$	35,445

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



Assets:
Cash	$	1,525
Accounts receivables	2,908
Other assets	356
Fixed assets	92
Intangible Assets:
Customer relationships	13,768
Trade name	4,993
Developed technology	3,026
Photo library	484
Goodwill	14,918
Total assets acquired	$	42,070
Liabilities:
Accounts payable	$	(253	)
Contributor payable	(2,249		)
Accrued expenses	(2,387		)
Deferred tax liability	(4,454		)
Total liabilities assumed	$	(9,343	)
Total	$	32,727

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



Intangible assets:
Trade name	$	500
Customer relationships	2,800
Developed technology	600
Goodwill	8,763
Other assets acquired	836
Total liabilities assumed	(1,083		)
Total	$	12,416

Business Acquisition, Pro Forma Information

These pro forma results are not necessarily indicative of what the Company’s operating results would have been had the acquisitions actually taken place at the beginning of the period (in thousands):



	Year Ended December 31,
	2015		2014
Revenue	$	426,420	$	353,636
Net income	$	19,558	$	21,285

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consisted of the following (in thousands):



	December 31,
	2016		2015
Compensation	$	13,732	$	8,995
Non-income taxes	7,383		7,095
Royalty tax withholdings	6,921		6,439
Other expenses	13,070		8,167
Total accrued expenses	$	41,106	$	30,696

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

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

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



	Year Ended December 31,
	2016		2015			2014
Domestic	$	38,549	$	36,643		$	37,866
Foreign	5,948		(2,371		)	311
Income before income taxes	$	44,497	$	34,272		$	38,177

Summary of consolidated provision (benefit) for income taxes

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



	Year Ended December 31,
	2016			2015			2014
Current:
Federal provision	$	6,389		$	16,551		$	19,362
State and local provision	852			1,683			1,502
Foreign provision	2,861			1,326			121
Deferred:
Federal benefit	3,376			(3,311		)	(5,406		)
State and local provision	(34		)	33			509
Foreign benefit	(1,575		)	(1,562		)	—
Provision for income taxes	$	11,869		$	14,720		$	16,088

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

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



	Year Ended December 31,
	2016		2015		2014
U.S. income tax at federal statutory rate	35.0	%	35.0	%	35.0	%
Tax credits	(12.0	)	—		—
State and local taxes, net of federal benefit	2.9		3.7		4.2
Non-deductible—restricted stock	2.1		2.7		1.9
Foreign rate differential	(1.8	)	1.2		(0.1	)
Uncertain tax positions	(0.4	)	(1.0	)	0.3
Non-deductible—other	0.9		1.4		0.8
Total provision for income taxes	26.7	%	43.0	%	42.1	%

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

The tax effect of the Company’s temporary differences that give rise to deferred tax assets and liabilities are presented below (in thousands):



	Year Ended December 31,
	2016			2015
Deferred tax assets:
Non-cash equity-based compensation	$	10,611		$	10,407
Intangible amortization	8,197			9,627
Non-income tax accruals	3,682			3,416
Deferred rent	3,123			2,908
Other liabilities	5,600			5,249
Deferred tax assets	31,213			31,607
Deferred tax liabilities:
Depreciation and amortization	(10,347		)	(9,578		)
Net deferred tax assets	$	20,866		$	22,029

Summary of changes to the Company's unrecognized tax benefits

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



	Year Ended December 31,
	2016			2015			2014
Balance of unrecognized tax benefits at January 1	$	1,479		$	1,500		$	1,500
Gross additions for tax positions for prior years	886			280			—
Gross additions for tax positions for current year	360			57			—
Gross expirations	(1,270		)	(358		)	—
Balance of unrecognized tax benefits at December 31	$	1,455		$	1,479		$	1,500

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

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

Future minimum lease payments under non-cancellable operating leases and other unconditional cash obligations as of December 31, 2016 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2017	$	7,409	$	12,626
2018	7,133		11,918
2019	7,069		8,893
2020	6,743		7,133
2021	6,312		—
Thereafter	55,920		—
Total minimum lease payments	$	90,586	$	40,570

Other Obligation Maturity Schedule

Future minimum lease payments under non-cancellable operating leases and other unconditional cash obligations as of December 31, 2016 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2017	$	7,409	$	12,626
2018	7,133		11,918
2019	7,069		8,893
2020	6,743		7,133
2021	6,312		—
Thereafter	55,920		—
Total minimum lease payments	$	90,586	$	40,570

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 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



	As of December 31,
	2016		2015
Stock options outstanding	$	12,400	$	8,400
Stock options exercisable	4,700		7,500
Stock options vested and expected to vest	$	12,000	$	8,400



	Year Ended December 31,
	2016		2015		2014
Cost of revenue	$	1,938	$	1,896	$	1,283
Sales and marketing	5,444		4,520		3,912
Product development	7,681		7,565		7,597
General and administrative	13,017		14,879		10,976
Total	$	28,080	$	28,860	$	23,768



	Year Ended December 31,
	2016		2015		2014
Stock Options	$	7,295	$	8,191	$	9,737
Restricted Stock Units	20,136		19,186		10,262
Restricted Stock	—		—		1,663
Webdam⁽¹⁾	43		579		1,328
ESPP	606		904		778
Total	$	28,080	$	28,860	$	23,768

_____________________________________________


(1)	Represents expense related to a portion of the equity awards issued to former owners of WebDAM that were previously classified as a liability.

Schedule of stock options awards activity

The following is a summary of stock option awards and weighted average exercise price per option:



	Plan Options		Weighted Average Exercise Price
Options outstanding at December 31, 2015	1,533,749		$	46.71
Options granted	515,000		37.06
Options exercised	(415,270	)	21.01
Options cancelled or expired	(222,110	)	41.85
Options outstanding at December 31, 2016	1,411,369		$	51.52
Options exercisable at December 31, 2016	249,188		$	32.72
Options vested and expected to vest at December 31, 2016	1,366,793		$	51.91

Schedule of weighted average assumptions used in the fair value calculation

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 Year Ended December 31,
	2016		2015		2014
Expected term (in years)	0.50		0.50		0.50
Volatility	59	%	52	%	49% - 52%
Risk-free interest rate	0.46	%	0.07% - 0.42%		0.08% - 0.60%
Dividend yield	—		—		—

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2016, 2015 and 2014:



	Year Ended Year Ended December 31,
	2016			2015			2014
Expected term (in years)	6.3			6.5			6.3
Volatility	53		%	52		%	49		%
Risk-free interest rate	1.48		%	1.7		%	2.1% - 2.8%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	19.03		$	15.90		$	43.19

Schedule of restricted stock units ("RSUs") activity

The following table presents a summary of the Company’s RSUs activity for the year ended December 31, 2016:



	Plan RSUs		Weighted Average Fair Value
Non-vested balance at December 31, 2015	1,054,473		$	57.25
Units granted	934,549		40.10
Units vested	(329,370	)	59.54
Units cancelled or forfeited	(374,691	)	48.59
Non-vested balance at December 31, 2016	1,284,961		$	46.72

Other (Expense)/Income, net (Tables)

12 Months Ended

Dec. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Schedule of Other Nonoperating Income (Expense)

The following table presents a summary of the Company’s other (expense)/income activity included in the accompanying consolidated statements of operations (in thousands):



	Year Ended December 31,
	2016			2015			2014
Foreign currency loss	$	(167	)	$	(2,003	)	$	(743	)
Change in contingent consideration fair value	(1,271		)	(4,770		)	(200		)
Interest income	149			27			84
Other (expense)/income, net	$	(1,289	)	$	(6,746	)	$	(859	)

Net Income Per Share (Tables)

12 Months Ended

Dec. 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 common share available to common stockholders follows (in thousands):



	Year Ended December 31,
	2016	2015	2014
Basic	35,114	35,880	35,235
Stock options and employee stock purchase plan shares	441	345	586
Unvested restricted stock awards	306	94	92
Diluted	35,861	36,319	35,913

Potentially dilutive shares included in the calculation	1,954	1,624	2,106
Anti-dilutive shares excluded from the calculation	999	1,064	520

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table summarizes segment information for the years ended December 31, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2016			2015			2014
Content Segment:
Segment revenue	$	483,278		$	417,310		$	324,533
Segment operating expenses	274,978			234,484			172,026
Segment operating profit	208,300			182,826			152,507
Other Category:
Other revenue	11,039			7,839			3,438
Other operating expenses	16,168			12,370			7,675
Other operating loss	(5,129		)	(4,531		)	(4,237		)
Segment and Other Category:
Segment and other revenue	494,317			425,149			327,971
Segment and other operating expenses	291,146			246,854			179,701
Segment and other operating profit	203,171			178,295			148,270
Less: Unallocated corporate expenses⁽¹⁾	(157,385		)	(137,277		)	(109,234		)
Income from operations	45,786			41,018			39,036


(1)	Unallocated corporate expenses primarily relate to shared operational support functions such as sales, marketing, public relations, product development and engineering support not allocated to specific operating segments and general and administrative functions of human resources, legal, finance and information technology.

Revenue from External Customers by Geographic Areas

The following represents our geographic revenue based on customer location (in thousands):



	Year Ended December 31,
	2016		2015		2014
North America	$	197,650	$	166,225	$	121,896
Europe	161,906		144,103		115,245
Rest of the world	134,761		114,821		90,830
Total revenue	$	494,317	$	425,149	$	327,971

Long-lived Assets by Geographic Areas

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



	December 31,
	2016		2015
North America	$	54,913	$	31,699
Europe	1,141		395
Rest of world	47		—
Total long-lived tangible assets	$	56,101	$	32,094

Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

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



	Three Months Ended
	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015

	(in thousands, except per share data)
Revenue	$	130,173		$	123,073	$	124,419		$	116,652		$	116,002		$	107,260		$	104,365		$	97,522
Operating expenses⁽¹⁾:
Cost of revenue	52,637			50,184		52,245			48,063			47,944			44,512			42,545			39,525
Sales & marketing	34,990			32,977		31,571			27,088			26,709			27,393			27,429			25,105
Product development	12,989			11,604		11,971			11,225			9,622			10,827			10,189			10,684
General and administrative	16,358			17,020		18,155			19,454			16,698			16,441			14,536			13,972
Total operating expenses	116,974			111,785		113,942			105,830			100,973			99,173			94,699			89,286
Income from operations	13,199			11,288		10,477			10,822			15,029			8,087			9,666			8,236
Other (expense)/ income, net⁽²⁾	(1,167		)	102		(212		)	(12		)	(3,360		)	(767		)	(57		)	(2,562		)
Income before income taxes	12,032			11,390		10,265			10,810			11,669			7,320			9,609			5,674
Provision for income tax	2,177			1,999		3,016			4,677			4,800			3,217			4,272			2,431
Net income	9,855			9,391		7,249			6,133			6,869			4,103			5,337			3,243
Less: Undistributed earnings to participating stockholder	—			—		—			—			—			—			—			2
Net income available to common stockholders	$	9,855		$	9,391	$	7,249		$	6,133		$	6,869		$	4,103		$	5,337		$	3,241
Net income per common share available to common stockholders:
Basic	$	0.28		$	0.27	$	0.21		$	0.17		$	0.19		$	0.11		$	0.15		$	0.09
Diluted	$	0.27		$	0.26	$	0.20		$	0.17		$	0.19		$	0.11		$	0.15		$	0.09
Weighted average common shares outstanding:
Basic	35,089			35,036		34,957			35,375			35,975			36,040			35,864			35,635
Diluted	35,881			35,824		35,642			36,099			36,468			36,270			36,340			36,193

____________________________________________________________________________


(1)	Includes non-cash equity-based compensation of $28,080 and $28,860 for the years ended December 31, 2016 and 2015, respectively.


(2)	Includes changes in fair value of contingent consideration related to the PremiumBeat (2016 and 2015) and webdam (2015) acquisitions; transaction gains and losses primarily related to cash balances of subsidiaries denominated in a currency other than the subsidiaries’ functional currencies; and interest income and expense, which is not material in any period presented.

Summary of Operations and Significant Accounting Policies - Restricted Cash, Credit Card Receivables and Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts:
Balance, beginning of period	$ 3,768	$ 1,031	$ 625
Add: bad debt expense	2,992	3,175	565
Less: write-offs, net of recoveries and other adjustments	(1,265)	(438)	(159)
Balance, end of period	5,495	3,768	$ 1,031
Other assets
Restricted Cash
Restricted cash, noncurrent	$ 2,600	$ 1,800

Summary of Operations and Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Equipment
Property and Equipment
Useful lives	3 years
Furniture and fixtures
Property and Equipment
Useful lives	7 years
Software
Property and Equipment
Useful lives	3 years

Summary of Operations and Significant Accounting Policies - Capitalized Internal Use Software and Impairment of Long-Lived Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Impairment of Long-Lived Assets
Impairment charges	$ 0	$ 0	$ 0
Software
Property, Plant and Equipment [Line Items]
Useful lives	3 years

Summary of Operations and Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenue recognition
Chargeback and sales refund allowances	$ 0.6	$ 0.7
Subscription plans \| Minimum
Revenue recognition
Plan term	30 days
Subscription plans \| Maximum
Revenue recognition
Plan term	1 year

Summary of Operations and Significant Accounting Policies - Contributor Royalties and Internal Sales Commissions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Deferred royalty advances	$ 5.5	$ 3.9	$ 1.6
Amortization of advance royalty	$ 5.0	2.7	3.1
Maximum period over which internal sales commissions get deferred and recognized	12 months
Deferred internal sales commissions	$ 4.5	5.5	3.0
Amortized internal sales commission expense	4.7	4.5	$ 2.7
Prepaid expenses and other current assets
Deferred Revenue Arrangement [Line Items]
Deferred contributor royalties	2.7	3.2
Deferred internal sales commission	$ 1.5	$ 1.7

Summary of Operations and Significant Accounting Policies - Advertising Costs and Deferred Rent (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Advertising Costs
Advertising costs	$ 64.9	$ 53.0	$ 43.7
Deferred Rent
Deferred rent balance	$ 8.6	8.0
Deferred rent current balance		0.7
Deferred rent non-current balance		$ 7.3

Summary of Operations and Significant Accounting Policies - Equity-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2016
2012 Plan \| Stock Option
Equity-Based Compensation
Vesting period	4 years
2012 Plan \| Restricted stock units
Equity-Based Compensation
Vesting period	3 years
2012 ESPP \| Employee stock
Equity-Based Compensation
Vesting period	6 months

Summary of Operations and Significant Accounting Policies - Reportable Segments (Details)	12 Months Ended
	Dec. 31, 2016 segment
Accounting Policies [Abstract]
Number of operating segments	2
Number of reportable segments	1

Summary of Operations and Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Foreign currency transactional losses	$ 1.0	$ 2.6	$ 0.9

Summary of Operations and Significant Accounting Policies - Recently Adopted Accounting Standard Update (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Non current deferred tax assets	$ 23,013	$ 25,807
Accounting Standards Update 2015-07 \| New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Non current deferred tax assets		7,100
Current deferred tax assets reclassified		$ (7,100)

Fair Value Measurements - Schedule of fair value measurements (Details) - Aggregate Fair Value - Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Total assets measured at fair value	$ 136,595	$ 136,231
Liabilities:
Total liabilities measured at fair value	10,000	11,075
Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value	10,000	11,075
Money market accounts
Assets:
Total assets measured at fair value	81,623	89,153
Commercial paper
Assets:
Total assets measured at fair value	54,972	47,078
Level 1
Assets:
Total assets measured at fair value	81,623	89,153
Liabilities:
Total liabilities measured at fair value	0	0
Level 1 \| Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value	0	0
Level 1 \| Money market accounts
Assets:
Total assets measured at fair value	81,623	89,153
Level 1 \| Commercial paper
Assets:
Total assets measured at fair value	0	0
Level 2
Assets:
Total assets measured at fair value	54,972	47,078
Liabilities:
Total liabilities measured at fair value	0	0
Level 2 \| Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value	0	0
Level 2 \| Money market accounts
Assets:
Total assets measured at fair value	0	0
Level 2 \| Commercial paper
Assets:
Total assets measured at fair value	54,972	47,078
Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value	10,000	11,075
Level 3 \| Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value	10,000	11,075
Level 3 \| Money market accounts
Assets:
Total assets measured at fair value	0	0
Level 3 \| Commercial paper
Assets:
Total assets measured at fair value		$ 0

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration		$ 2,925	$ 4,770	$ 200
Aggregate Fair Value \| Other Current Liabilities \| 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
Change in fair value of contingent consideration	$ (4,000)
Aggregate Fair Value \| Other Current Liabilities \| 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
Fair value contingent consideration			$ 7,100

Fair Value Measurements - Schedule of changes in fair value contingent consideration (Details) - Acquisition related contingent consideration - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Ending Balance	$ 10,000
Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	11,075	$ 2,560
Acquisition-related contingent consideration		3,745
Changes in fair value	2,925	4,770
Payments of contingent consideration	(4,000)
Ending Balance	10,000	11,075
WebDAM \| Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	4,000	2,560
Acquisition-related contingent consideration		0
Changes in fair value	0	1,440
Payments of contingent consideration	4,000
Ending Balance	0	4,000
PremiumBeat \| Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,075	0
Acquisition-related contingent consideration		3,745
Changes in fair value	2,925	3,330
Payments of contingent consideration	0
Ending Balance	$ 10,000	$ 7,075

Property and Equipment - Summary of property and equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Write-off of property and equipment	$ 0	$ 0	$ 367,000
Property and equipment	88,089,000	54,906,000
Less: accumulated depreciation	(31,988,000)	(22,812,000)
Property and equipment, net	56,101,000	32,094,000
Computer equipment and software
Property and Equipment
Property and equipment	63,711,000	37,502,000
Furniture and fixtures
Property and Equipment
Property and equipment	3,434,000	2,933,000
Leasehold improvements
Property and Equipment
Property and equipment	$ 20,944,000	$ 14,471,000

Property and Equipment - Narrative (Details) - USD ($)	12 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 14,900,000	$ 10,100,000	$ 7,400,000
Loss on disposal	$ 0	$ 0	$ 367,000

Property and Equipment - Capitalized Internal-Use Software (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Capitalized costs	$ 20.0	$ 3.3	$ 0.5
Portion of depreciation expense capitalized internal-use software	3.6	0.6	$ 0.3
Capitalized internal-use software	$ 20.3	$ 3.9

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)
Changes in goodwill
December 31, 2015	$ 50,934
Foreign currency translation adjustment	(1,663)
December 31, 2016	49,271
Content Business
Changes in goodwill
December 31, 2015	42,171
Foreign currency translation adjustment	(1,663)
December 31, 2016	40,508
Other Category
Changes in goodwill
December 31, 2015	8,763
Foreign currency translation adjustment	0
December 31, 2016	$ 8,763

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Amortizing intangible assets:
Gross Carrying Amount	$ 39,958	$ 35,819
Accumulated Amortization	(9,801)	(6,038)
Net Carrying Amount	30,157	29,781
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	16,712	19,523
Accumulated Amortization	(4,344)	(3,089)
Net Carrying Amount	$ 12,368	16,434
Weighted Average Life	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,677	7,111
Accumulated Amortization	(2,030)	(1,188)
Net Carrying Amount	$ 4,647	5,923
Weighted Average Life	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 3,224	3,734
Accumulated Amortization	(1,934)	(1,129)
Net Carrying Amount	$ 1,290	2,605
Weighted Average Life	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 12,958	5,138
Accumulated Amortization	(1,386)	(567)
Net Carrying Amount	$ 11,572	4,571
Weighted Average Life	11 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 227	193
Accumulated Amortization	(52)	(40)
Net Carrying Amount	$ 175	153
Weighted Average Life	18 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	120
Accumulated Amortization	(55)	(25)
Net Carrying Amount	$ 105	$ 95
Weighted Average Life	12 years

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 5,100,000	$ 4,700,000	$ 600,000
2017	5,300,000
2018	4,500,000
2019	4,300,000
2020	3,700,000
2021	3,300,000
Thereafter	$ 9,000,000
Hypothetical decrease	10.00%
Decrease in fair value	8.00%
Impairments of goodwill	$ 0	$ 0	$ 0

Acquisition Activity - Narrative (Details) image in Thousands, $ in Thousands					12 Months Ended
	Sep. 01, 2016 USD ($) image image_collection	Jan. 22, 2015 USD ($)	Jan. 19, 2015 USD ($)	Mar. 14, 2014 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jan. 22, 2016 USD ($)
Business Acquisition [Line Items]
Cash payment					$ 0	$ 62,379	$ 10,056
The Picture Desk
Business Acquisition [Line Items]
Minimum number of images \| image	700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Number of Image Collections \| image_collection	2
Cash payment	$ 3,900
Rex Features
Business Acquisition [Line Items]
Cash payment			$ 32,700
PremiumBeat
Business Acquisition [Line Items]
Cash payment		$ 31,700
Purchase price		35,400
Contingent consideration		$ 3,700
Contingent consideration settlement amount					10,000
WebDAM
Business Acquisition [Line Items]
Cash payment				$ 10,000
Purchase price				12,400
Contingent consideration				2,400
Acquisition related contingent consideration
Business Acquisition [Line Items]
Contingent consideration balance in other non-current liabilities					$ 10,000
Trade name \| The Picture Desk
Business Acquisition [Line Items]
Contributor content	$ 3,600
Estimated useful life	7 years
Trade name \| Rex Features
Business Acquisition [Line Items]
Contributor content			$ 4,993
Trade name \| PremiumBeat
Business Acquisition [Line Items]
Contributor content								$ 1,400
Trade name \| WebDAM
Business Acquisition [Line Items]
Contributor content				$ 500
Images \| The Picture Desk
Business Acquisition [Line Items]
Estimated useful life	15 years

Acquisition Activity - Schedule of Acquisition (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 22, 2016	Dec. 31, 2015	Jan. 19, 2015	Mar. 14, 2014
Assets:
Goodwill	$ 49,271		$ 50,934
WebDAM
Assets:
Goodwill					$ 8,763
Other assets acquired					836
Liabilities:
Total liabilities assumed					(1,083)
Total					12,416
WebDAM \| Customer relationships
Assets:
Intangible Assets:					2,800
WebDAM \| Trade name
Assets:
Intangible Assets:					500
WebDAM \| Developed technology
Assets:
Intangible Assets:					$ 600
Rex Features
Assets:
Cash				$ 1,525
Accounts receivables				2,908
Other assets				356
Fixed assets				92
Goodwill				14,918
Total assets acquired				42,070
Liabilities:
Accounts payable				(253)
Contributor payable				(2,249)
Accrued expenses				(2,387)
Deferred tax liability				(4,454)
Total liabilities assumed				(9,343)
Total				32,727
Rex Features \| Customer relationships
Assets:
Intangible Assets:				13,768
Rex Features \| Trade name
Assets:
Intangible Assets:				4,993
Rex Features \| Developed technology
Assets:
Intangible Assets:				3,026
Rex Features \| Photo library
Assets:
Intangible Assets:				$ 484
PremiumBeat
Assets:
Cash		$ 963
Fixed assets		205
Goodwill		29,849
Deferred tax asset		229
Total assets acquired		36,408
Liabilities:
Contributor payable		(896)
Accrued expenses		(44)
Deferred revenue		(23)
Total liabilities assumed		(963)
Total		35,445
PremiumBeat \| Customer relationships
Assets:
Intangible Assets:		3,000
PremiumBeat \| Trade name
Assets:
Intangible Assets:		1,400
PremiumBeat \| Music catalog
Assets:
Intangible Assets:		584
PremiumBeat \| Developed technology
Assets:
Intangible Assets:		$ 178

Acquisition Activity - Unaudited Pro Forma Consolidated Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Combinations [Abstract]
Revenue	$ 426,420	$ 353,636
Net income	$ 19,558	$ 21,285

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Compensation	$ 13,732	$ 8,995
Non-income taxes	7,383	7,095
Royalty tax withholdings	6,921	6,439
Other expenses	13,070	8,167
Total accrued expenses	$ 41,106	$ 30,696

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Geographical breakdown of income before income taxes
Domestic									$ 38,549	$ 36,643	$ 37,866
Foreign									5,948	(2,371)	311
Income before income taxes	$ 12,032	$ 11,390	$ 10,265	$ 10,810	$ 11,669	$ 7,320	$ 9,609	$ 5,674	44,497	34,272	38,177
Current:
Federal provision									6,389	16,551	19,362
State and local provision									852	1,683	1,502
Foreign provision									2,861	1,326	121
Deferred:
Federal benefit									3,376	(3,311)	(5,406)
State and local provision									(34)	33	509
Foreign benefit									(1,575)	(1,562)	0
Provision for income taxes									$ 11,869	$ 14,720	$ 16,088
Provision for income taxes differs from statutory income tax rate
U.S. income tax at federal statutory rate									35.00%	35.00%	35.00%
Tax credits									(12.00%)	(0.00%)	(0.00%)
State and local taxes, net of federal benefit									2.90%	3.70%	4.20%
Non-deductible—restricted stock									2.10%	2.70%	1.90%
Foreign rate differential									(1.80%)	1.20%	(0.10%)
Uncertain tax positions									(0.40%)	(1.00%)	0.30%
Non-deductible—other									0.90%	1.40%	0.80%
Total provision for income taxes									26.70%	43.00%	42.10%
Deferred tax assets:
Non-cash equity-based compensation	10,611				10,407				$ 10,611	$ 10,407
Intangible amortization	8,197				9,627				8,197	9,627
Non-income tax accruals	3,682				3,416				3,682	3,416
Deferred rent	3,123				2,908				3,123	2,908
Other liabilities	5,600				5,249				5,600	5,249
Deferred tax assets	31,213				31,607				31,213	31,607
Deferred tax liabilities:
Depreciation and amortization	(10,347)				(9,578)				(10,347)	(9,578)
Net deferred tax assets	20,866				22,029				20,866	22,029
Undistributed earnings attributable to foreign subsidiaries	6,200								6,200
Reconciliation of unrecognized tax benefits
Balance at the beginning of the period				$ 1,479				$ 1,500	1,479	1,500	$ 1,500
Gross additions for tax positions for prior years									886	280	0
Gross additions for tax positions for current year									360	57	0
Gross expirations									(1,270)	(358)	0
Balance at the end of the period	1,455				1,479				1,455	1,479	1,500
Reserves for uncertain tax benefits									1,200	300	$ 0
Impact on effective tax rate on recognition of unrecognized tax benefits					$ 1,400					$ 1,400
Operating loss carryforwards	$ 700								$ 700

Commitments and Contingencies - Narrative (Details) - USD ($)		12 Months Ended
	Oct. 20, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 21, 2013
Operating Leased Assets [Line Items]
Rental expense inclusive of operating leases		$ 7,200,000	$ 4,800,000	$ 4,200,000
Letter of credit as a security deposit for the leased facilities					$ 2,600,000
Total minimum lease payments		90,586,000			$ 82,900,000
Other obligations		40,570,000
Maximum aggregate obligation liability		10,000
Recorded liabilities		0
Other assets
Operating Leased Assets [Line Items]
Letter of credit collateralized as restricted cash		$ 2,600,000	$ 1,800,000
Indirect Guarantee of Indebtedness \| The Facility \| Revolving Credit Facility
Operating Leased Assets [Line Items]
Maximum obligation	$ 4,600,000.0
The Facility term	P5Y
Interest rate	10.00%
Outstanding borrowings	$ 0

Commitments and Contingencies - Schedule of future minimum lease payments under non-cancelable operating leases (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 21, 2013
Commitments and Contingencies Disclosure [Abstract]
2017	$ 7,409
2018	7,133
2019	7,069
2020	6,743
2021	6,312
Thereafter	55,920
Total minimum lease payments	90,586	$ 82,900
Maturity of unconditional purchase obligations
2017	12,626
2018	11,918
2019	8,893
2020	7,133
2021	0
Thereafter	0
Total other obligations	$ 40,570

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Annual discretionary employer matching contributions (as a percent)	3.00%
Employer matching contributions	$ 1.7	$ 1.2	$ 0.9

Equity-Based Compensation - Summary of non-cash equity-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 28,080	$ 28,860	$ 23,768
Stock Option
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	7,295	8,191	9,737
Restricted stock units
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	20,136	19,186	10,262
Restricted stock units \| WebDAM
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	43	579	1,328
Restricted stock
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	0	0	1,663
Employee stock
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	606	904	778
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	1,938	1,896	1,283
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	5,444	4,520	3,912
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	7,681	7,565	7,597
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 13,017	$ 14,879	$ 10,976

Equity-Based Compensation - Summary of stock option awards and weighted average exercise price per option (Details) - VAR Plan	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Plan Options
Options outstanding at the beginning of the period (in shares) \| shares	1,533,749
Options granted (in shares) \| shares	515,000
Options exercised (in shares) \| shares	(415,270)
Options cancelled or expired (in shares) \| shares	(222,110)
Options outstanding at the end of the period (in shares) \| shares	1,411,369
Options exercisable at the end of the period (in shares) \| shares	249,188
Options vested and expected to vest at the end of the period (in shares) \| shares	1,366,793
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per unit) \| $ / shares	$ 46.71
Options granted (in dollars per share) \| $ / shares	37.06
Options exercised (in dollars per share) \| $ / shares	21.01
Options cancelled or expired (in dollars per share) \| $ / shares	41.85
Options outstanding at the end of the period (in dollars per unit) \| $ / shares	51.52
Options exercisable at the end of the period (in dollars per share) \| $ / shares	32.72
Options vested and expected to vest at the end of the period (in dollars per shares) \| $ / shares	$ 51.91

Equity-Based Compensation - Intrinsic value of the Company's stock options (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options outstanding	$ 12,400	$ 8,400
Stock options exercisable	4,700	7,500
Stock options vested and expected to vest	$ 12,000	$ 8,400

Equity-Based Compensation - Weighted average assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
VAR Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years 3 months 15 days	6 years 6 months	6 years 4 months
Volatility	53.00%	52.00%	49.00%
Risk-free interest rate	1.48%	1.70%
Dividend yield	0.00%	0.00%	0.00%
Weighted average fair value per share granted (in dollars per share)	$ 19.03	$ 15.90	$ 43.19
VAR Plan \| Stock Option \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			2.10%
VAR Plan \| Stock Option \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			2.80%
2012 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 months	6 months	6 months
Volatility	59.00%	52.00%
Risk-free interest rate	0.46%
Dividend yield	0.00%	0.00%	0.00%
2012 ESPP \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility			49.00%
Risk-free interest rate		0.07%	0.08%
2012 ESPP \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility			52.00%
Risk-free interest rate		0.42%	0.60%

Equity-Based Compensation - Summary of the Company's RSUs activity (Details) - Restricted stock units	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Plan Options
Non-vested balance at the beginning of the period (in shares) \| shares	1,054,473
Units granted (in shares) \| shares	934,549
Units vested (in shares) \| shares	(329,370)
Units cancelled or forfeited (in shares) \| shares	(374,691)
Non-vested balance at the end of the period (in shares) \| shares	1,284,961
Weighted Average Fair Value
Non-vested balance at the beginning of the period (in dollars per share) \| $ / shares	$ 57.25
Units granted (in dollars per share) \| $ / shares	40.10
Units vested (in dollars per share) \| $ / shares	59.54
Units cancelled or forfeited (in dollars per share) \| $ / shares	48.59
Non-vested balance at the end of the period (in dollars per share) \| $ / shares	$ 46.72

Equity-Based Compensation - Narrative (Details) - USD ($)					12 Months Ended
	Jan. 01, 2016	Jan. 01, 2015	Apr. 24, 2014	Oct. 10, 2012	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Option \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)			500,000
Options granted (in dollars per share)			$ 80.94
Closing price of the common stock (in dollars per share)			$ 161.88
Consideration period for awards granted			90 days
Service period for amortization of awards			6 years
Total fair value of the grant			$ 21,600,000
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares/notional units available for issuance (shares)				6,750,000
Annual increase in shares available for issuance (shares)				1,500,000
Annual increase in the shares available for issuance as a percentage of common stock outstanding as of the last day of immediately preceding fiscal year				3.00%
2012 Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Automatic increase (in shares)	1,070,000	1,068,000
Unrecognized compensation charge					$ 22,400,000
Vesting period					4 years
2012 Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years
Unrecognized compensation charge					$ 43,800,000
VAR Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of total stock options exercised					$ 10,600,000	$ 12,700,000	$ 30,500,000
Options granted (in shares)					515,000
Options granted (in dollars per share)					$ 37.06
2012 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares/notional units available for issuance (shares)				2,000,000
Annual increase in shares available for issuance (shares)				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%
Automatic increase (in shares)	1,000,000	1,000,000
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					233,000
2012 ESPP \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of combined voting power of an employee considered for not granting rights to purchase stock				5.00%
Minimum worth of stock for each calendar year considered for not granting rights to purchase stock				$ 25,000
WebDAM \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					2 years

Stockholders' Equity (Details)	12 Months Ended
Stockholders' Equity (Details)	Dec. 31, 2016 USD ($) Vote $ / shares shares	Feb. 27, 2017 USD ($)	Dec. 31, 2015 $ / shares shares	Oct. 31, 2015 USD ($)
Common Stock
Number of votes for each share \| Vote	1
Number of authorized shares of common stock (in shares) \| shares	200,000,000		200,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01		$ 0.01
Preferred Stock
Preferred stock, authorized shares \| shares	5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.01
Treasury Stock
Number of shares acquired \| shares	2,110,000		460,000
Common Stock
Treasury Stock
Authorized repurchase amount \| $				$ 100,000,000
Number of shares acquired \| shares	2,110,000
Average per-share cost (in dollars per share) \| $ / shares	$ 36.76
Accrued expense of shares repurchased and not yet paid \| $	$ 2,500,000
Remaining amount for repurchase \| $	$ 22,500,000
Subsequent Event \| Common Stock
Treasury Stock
Stock repurchase program, additional authorized amount \| $		$ 100,000,000

Other (Expense)/Income, net (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Nonoperating Income (Expense) [Abstract]
Foreign currency loss									$ (167)	$ (2,003)	$ (743)
Change in contingent consideration fair value									(1,271)	(4,770)	(200)
Interest income									149	27	84
Other (expense)/income, net	$ (1,167)	$ 102	$ (212)	$ (12)	$ (3,360)	$ (767)	$ (57)	$ (2,562)	$ (1,289)	$ (6,746)	$ (859)

Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended								12 Months Ended
Net Income Per Share (Details) - shares shares in Thousands	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Basic (in shares)	35,089	35,036	34,957	35,375	35,975	36,040	35,864	35,635	35,114	35,880	35,235
Stock options and employee stock purchase plan shares (in shares)									441	345	586
Unvested restricted stock awards (in shares)									306	94	92
Diluted (in shares)	35,881	35,824	35,642	36,099	36,468	36,270	36,340	36,193	35,861	36,319	35,913
Potentially dilutive shares included in the calculation (in shares)									1,954	1,624	2,106
Anti-dilutive shares excluded from the calculation (in shares)									999	1,064	520

Segment and Geographic Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenue	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 116,002	$ 107,260	$ 104,365	$ 97,522	$ 494,317	$ 425,149	$ 327,971
Expenses	(116,974)	(111,785)	(113,942)	(105,830)	(100,973)	(99,173)	(94,699)	(89,286)	(448,531)	(384,131)	(288,935)
Income from operations	$ 13,199	$ 11,288	$ 10,477	$ 10,822	$ 15,029	$ 8,087	$ 9,666	$ 8,236	45,786	41,018	39,036
Operating Segments \| Content Segment:
Segment Reporting Information [Line Items]
Revenue									483,278	417,310	324,533
Expenses									(11,039)	(7,839)	(3,438)
Income from operations									494,317	425,149	327,971
Operating Segments \| Other Category
Segment Reporting Information [Line Items]
Revenue									274,978	234,484	172,026
Expenses									(16,168)	(12,370)	(7,675)
Income from operations									291,146	246,854	179,701
Segment Reconciling Items
Segment Reporting Information [Line Items]
Revenue									208,300	182,826	152,507
Expenses									5,129	4,531	4,237
Income from operations									203,171	178,295	148,270
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Expenses									$ (157,385)	$ (137,277)	$ (109,234)

Segment and Geographic Information - Narrative (Details) - Geographic Concentration Risk	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Sales Revenue, Services, Net \| United States
Concentration Risk [Line Items]
Revenue percent	34.00%	34.00%	33.00%
Sales Revenue, Services, Net \| United Kingdom
Concentration Risk [Line Items]
Revenue percent	10.00%	11.00%
Long-Lived Tangible Assets \| United States
Concentration Risk [Line Items]
Revenue percent	95.00%	98.00%

Segment and Geographic Information - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenue	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 116,002	$ 107,260	$ 104,365	$ 97,522	$ 494,317	$ 425,149	$ 327,971
North America
Segment Reporting Information [Line Items]
Revenue									197,650	166,225	121,896
Europe
Segment Reporting Information [Line Items]
Revenue									161,906	144,103	115,245
Rest of the world
Segment Reporting Information [Line Items]
Revenue									$ 134,761	$ 114,821	$ 90,830

Segment and Geographic Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 56,101	$ 32,094
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	54,913	31,699
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	47	0
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 1,141	$ 395

Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 116,002	$ 107,260	$ 104,365	$ 97,522	$ 494,317	$ 425,149	$ 327,971
Operating expenses:
Cost of revenue	52,637	50,184	52,245	48,063	47,944	44,512	42,545	39,525	203,129	174,526	130,022
Sales & marketing	34,990	32,977	31,571	27,088	26,709	27,393	27,429	25,105	126,626	106,636	82,125
Product development	12,989	11,604	11,971	11,225	9,622	10,827	10,189	10,684	47,789	41,322	38,301
General and administrative	16,358	17,020	18,155	19,454	16,698	16,441	14,536	13,972	70,987	61,647	38,487
Total operating expenses	116,974	111,785	113,942	105,830	100,973	99,173	94,699	89,286	448,531	384,131	288,935
Income from operations	13,199	11,288	10,477	10,822	15,029	8,087	9,666	8,236	45,786	41,018	39,036
Other (expense) income, net	(1,167)	102	(212)	(12)	(3,360)	(767)	(57)	(2,562)	(1,289)	(6,746)	(859)
Income before income taxes	12,032	11,390	10,265	10,810	11,669	7,320	9,609	5,674	44,497	34,272	38,177
Provision for income tax	2,177	1,999	3,016	4,677	4,800	3,217	4,272	2,431	11,869	14,720	16,088
Net income	9,855	9,391	7,249	6,133	6,869	4,103	5,337	3,243	32,628	19,552	22,089
Undistributed earnings to participating stockholder	0	0	0	0	0	0	0	2	0	2	42
Net income available to common stockholders	$ 9,855	$ 9,391	$ 7,249	$ 6,133	$ 6,869	$ 4,103	$ 5,337	$ 3,241	$ 32,628	$ 19,550	$ 22,047
Net income per common share available to common stockholders:
Basic (in dollars per share)	$ 0.28	$ 0.27	$ 0.21	$ 0.17	$ 0.19	$ 0.11	$ 0.15	$ 0.09	$ 0.93	$ 0.54	$ 0.63
Diluted (in dollars per share)	$ 0.27	$ 0.26	$ 0.20	$ 0.17	$ 0.19	$ 0.11	$ 0.15	$ 0.09	$ 0.91	$ 0.54	$ 0.61
Weighted average common shares outstanding:
Basic (in shares)	35,089	35,036	34,957	35,375	35,975	36,040	35,864	35,635	35,114	35,880	35,235
Diluted (in shares)	35,881	35,824	35,642	36,099	36,468	36,270	36,340	36,193	35,861	36,319	35,913
Non-cash equity-based compensation									$ 28,080	$ 28,860	$ 23,768