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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 16, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-K
Document Period End Date	Dec. 31, 2017
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			$ 813,552,338
Entity Common Stock, Shares Outstanding		34,745,837
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 253,428	$ 224,190
Short-term investments	0	54,972
Accounts receivable, net	49,932	38,107
Prepaid expenses and other current assets	37,109	22,569
Total current assets	340,469	339,838
Property and equipment, net	85,698	56,101
Intangible assets, net	34,197	30,157
Goodwill	98,654	49,271
Deferred tax assets, net	9,761	23,013
Other assets	8,997	3,398
Total assets	577,776	501,778
Current liabilities:
Accounts payable	7,160	7,305
Accrued expenses	58,734	41,106
Contributor royalties payable	20,088	20,473
Deferred revenue	157,803	122,235
Other liabilities	1,957	12,378
Total current liabilities	245,742	203,497
Deferred tax liability, net	1,486	2,147
Other non-current liabilities	15,963	9,438
Total liabilities	263,191	215,082
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 37,270 and 36,926 shares issued and 34,712 and 34,816 shares outstanding as of December 31, 2017 and December 31, 2016, respectively	373	369
Additional paid-in capital	272,657	251,890
Treasury stock, at cost; 2,558 and 2,110 shares as of December 31, 2017 and December 31, 2016, respectively	(100,027)	(77,567)
Accumulated other comprehensive loss	(3,557)	(17,061)
Retained earnings	145,139	129,065
Total stockholders’ equity	314,585	286,696
Total liabilities and stockholders’ equity	$ 577,776	$ 501,778

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
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)	37,270,000	36,926,000
Common stock, shares outstanding (in shares)	34,712,000	34,816,000
Treasury stock, shares (in shares)	2,558,000	2,110,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenue	$ 557,111	$ 494,317	$ 425,149
Operating expenses:
Cost of revenue	233,102	203,129	174,526
Sales and marketing	146,464	126,626	106,636
Product development	52,486	47,789	41,322
General and administrative	98,710	70,987	61,647
Total operating expenses	530,762	448,531	384,131
Income from operations	26,349	45,786	41,018
Other income/(expense), net	3,732	(1,289)	(6,746)
Income before income taxes	30,081	44,497	34,272
Provision for income taxes	13,354	11,869	14,720
Net income	16,727	32,628	19,552
Less:
Undistributed earnings to participating stockholder	0	0	2
Net income available to common stockholders	$ 16,727	$ 32,628	$ 19,550
Net income per common share available to common stockholders:
Basic (in dollars per share)	$ 0.48	$ 0.93	$ 0.54
Diluted (in dollars per share)	$ 0.47	$ 0.91	$ 0.54
Weighted average common shares outstanding:
Basic (in shares)	34,627	35,114	35,880
Diluted (in shares)	35,291	35,861	36,319

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 16,727	$ 32,628	$ 19,552
Foreign currency translation gain/(loss)	13,504	(10,612)	(5,861)
Unrealized gain on investments	0	0	41
Other comprehensive income/(loss)	13,504	(10,612)	(5,820)
Comprehensive income	$ 30,231	$ 22,016	$ 13,732

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Balance at Dec. 31, 2014	$ 251,433	$ 356		$ 174,821	$ (629)	$ 76,885
Balance (in shares) at Dec. 31, 2014		35,603
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)		532
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)		(36)
Other comprehensive loss	(5,820)				(5,820)
Repurchase of Treasury Shares	(15,635)		$ (15,635)
Repurchase of Treasury Shares (in shares)			460
Net income	19,552					19,552
Balance at Dec. 31, 2015	288,566	$ 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
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		745
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(18)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(1,032)			(1,032)
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 loss	(10,612)				(10,612)
Repurchase of Treasury Shares	(61,932)		$ (61,932)
Repurchase of Treasury Shares (in shares)			1,650
Net income	32,628					32,628
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
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of Accounting Change (See Note 1)	326			979		(653)
Adjusted beginning balance	287,022	$ 369	$ (77,567)	252,869	(17,061)	128,412
Equity-based compensation	24,958			24,958
Issuance of common stock in connection with employee stock option exercises and RSU vesting	1,682	$ 6		1,677
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		503
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(159)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(6,848)	$ (2)		(6,846)
Other comprehensive loss	13,504				13,504
Repurchase of Treasury Shares	(22,460)		$ (22,460)
Repurchase of Treasury Shares (in shares)			449
Net income	16,727					16,727
Balance at Dec. 31, 2017	$ 314,585	$ 373	$ (100,027)	$ 272,657	$ (3,557)	$ 145,139
Balance (in shares) at Dec. 31, 2017		37,270	2,558

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 16,727	$ 32,628	$ 19,552
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	35,490	19,946	14,841
Deferred taxes	12,491	1,767	(4,840)
Non-cash equity-based compensation	24,958	28,080	28,860
Change in fair value of contingent consideration	0	2,925	4,770
Settlement of contingent consideration liability in excess of acquisition-date fair value	(6,255)	(1,640)	0
Bad debt reserve	1,292	2,992	3,175
Chargeback and sales refund reserves	0	(30)	(222)
Changes in operating assets and liabilities:
Accounts receivable	(10,015)	(13,232)	(11,072)
Prepaid expenses and other current and non-current assets	(6,734)	(2,412)	3,366
Accounts payable and other current and non-current liabilities	12,044	1,612	3,106
Contributor royalties payable	(685)	3,118	2,904
Deferred revenue	28,724	24,969	22,576
Net cash provided by operating activities	108,037	100,723	87,016
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(55,062)	(39,959)	(14,003)
Investment sales/(purchases), net	55,286	(7,673)	7,805
Acquisitions of businesses, net of cash acquired	(49,571)	0	(62,379)
Other investments/advances	(5,087)	(660)	0
Acquisition of digital content	(2,961)	(8,045)	(2,981)
Security deposit (payment)/receipt	30	(855)	(288)
Net cash used in investing activities	(57,365)	(57,192)	(71,846)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	1,682	8,711	7,197
Proceeds from issuance of common stock under Employee Stock Purchase Plan	0	1,803	1,868
Cash paid related to settlement of employee taxes related to RSU vesting	(6,848)	(1,032)	0
Settlement of contingent consideration liability	(3,745)	(2,360)	0
Repurchase of treasury shares	(24,977)	(60,232)	(14,811)
Net cash (used in) provided by financing activities	(33,888)	(53,110)	(5,746)
Effect of foreign exchange rate changes on cash	12,454	(7,535)	(1,573)
Net increase (decrease) in cash and cash equivalents	29,238	(17,114)	7,851
Cash and cash equivalents—Beginning	224,190	241,304	233,453
Cash and cash equivalents—Ending	253,428	224,190	241,304
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 4,984	$ 19,186	$ 14,481

Summary of Operations and Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Operations and Significant Accounting Policies

Description of Business

Shutterstock (the “Company” or “Shutterstock”) is a global technology company that offers an e-commerce platform for high-quality digital content, tools and services to creative professionals. The digital content licensed by the Company’s customers includes: (a) imagery, consisting 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) music, consisting of high-quality music tracks and sound effects, which 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 Webdam, 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 income tax and 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, 2017 and 2016, 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, 2017, 2016 or 2015.

Cash and Cash Equivalents

Cash consists primarily of cash on hand and bank deposits. Cash equivalents consist primarily of money market accounts and are stated at cost, which approximates fair value.

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 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, 2017 and 2016, the Company had restricted cash of $2.6 million 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,
	2017			2016			2015
Balance, beginning of period	$	5,495		$	3,768		$	1,031
Add: bad debt expense	1,292			2,992			3,175
Less: write-offs, net of recoveries and other adjustments	(2,699		)	(1,265		)	(438		)
Balance, end of period	$	4,088		$	5,495		$	3,768

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 2017, 2016 or 2015.

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, 2017, the Company did not have any goodwill or indefinite lived intangible asset impairment.

Revenue Recognition

The majority of the Company’s revenue is earned from the license of digital content. Digital content licenses are generally purchased on a monthly or annual subscription basis, whereby a customer pays for a predetermined quantity of content that may be downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. The Company also earns 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 for digital content licenses is considered to have occurred upon the download of the licensed content. Subscription revenue is recognized upon each download using an effective per-license rate and revenue associated with any unused licenses is recognized at the subscription expiration. Revenue attributable to the hosted software services is recognized ratably during the license subscription. The Company records revenue net of credit card chargebacks and refunds.

Collectability is reasonably assured at the time the electronic order or contract is entered. A large amount of customers purchase products by making electronic payments at the time of the 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 and sales refund trends and other information. As of December 31, 2017 and 2016, the Company had recorded an allowance for chargebacks and sales refunds of $0.4 million and $0.6 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.

The Company recognizes revenue 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 customers, can reject contributors’ 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 are 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, 2017, 2016 and 2015, the Company deferred $4.7 million, $5.0 million and $3.9 million, respectively, in royalty advances and amortized $4.9 million, $5.5 million and $2.7 million, respectively, in royalty advance expense which is included in cost of revenue. As of December 31, 2017 and 2016, the Company has deferred contributor royalties of $2.5 million and $2.7 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, 2017, 2016 and 2015, the Company deferred $5.5 million, $4.5 million and $5.5 million, respectively, and amortized $5.0 million, $4.7 million and $4.5 million, respectively, in internal sales commission expense which is included in sales and marketing expense. As of December 31, 2017 and 2016, the Company has deferred internal sales commission of $1.9 million and $1.5 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 $76.6 million, $64.9 million and $53.0 million for the years ended December 31, 2017, 2016 and 2015, 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, 2017 and 2016, the Company had deferred rent of $11.1 million, and $8.6 million, respectively, which 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 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 closing market price at the grant date, the expected stock price volatility over the expected term of the awards, awards’ exercise and cancellation behaviors, risk-free interest rates, and expected dividends, which are estimated as follows:


•	Fair Value of Common Stock. The grant date fair value for stock-based awards is based on the closing price of the Company’s common stock on the NYSE on the date of grant and fair value for all other purposes related to stock-based awards shall be the closing price of the Company’s common stock on the NYSE on the relevant date.


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


•	Volatility. The volatility is estimated based on historical price volatility of the Company’s common stock.


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


•	Dividend Yield. The Company 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 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.

Income Taxes

The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis, and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.

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

The Company assessed the realizability of deferred tax assets and determined, based on the available evidence including a history of taxable income, estimates of future taxable income and planning strategies, that 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.

Except as required under U.S. tax laws, the Company does not provide for U.S. taxes on the undistributed earnings of its foreign subsidiaries. With the enactment of the H.R.1 (commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “TCJA”)), the Company is required to treat the undistributed earnings and profits of its foreign subsidiaries accumulated through a measurement period that should not extend more than one year beyond the date of the enactment of the TCJA as if they were repatriated to the U.S., and pay a current U.S. tax amount as a result of such “deemed” repatriation. The Company’s tax expense for the year ended December 31, 2017 includes a provisional amount for such taxes, which the Company intends to pay in eight annual interest-free installments, as permitted under the TCJA. The Company has not recorded any provision for potential foreign withholding taxes that otherwise may be payable if it were to repatriate such earnings, since the Company does not intend to repatriate such amounts.

Also included in the provision for income taxes for the year ended December 31, 2017 are provisional amounts for other specific tax effects of the TCJA. These provisional amounts represent the Company’s reasonable estimates. The Company will evaluate these estimates in 2018 as additional information and/or implementation guidance becomes available, and any changes will be reflected in the financial statements in the period in which they are identified.

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, 2017, 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. The net impact of foreign currency transactional gains and losses on the Company’s results of operations were a gain of $2.6 million in 2017, and losses of $1.0 million and $2.6 million in 2016 and 2015, 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 March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employees Share-Based Payment Accounting (“ASU 2016-09”). This ASU 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.

The Company adopted ASU 2016-09 on January 1, 2017. All income tax effects related to settlements of share-based payment awards will be reported as an increase or decrease to the provision for income taxes. In addition, starting January 1, 2017, the Company will account for forfeitures as they occur and, as of January 1, 2017, recognized a $0.7 million reduction to retained earnings as the cumulative effect of the change in accounting principle. The Company adopted the cash flow presentation component of ASU 2016-09 retrospectively, and accordingly, decreased cash flows from operating activities by $0.4 million and increased cash flows from financing activities by $0.4 million for the year ended December 31, 2016 and increased cash flows from operating activities by $1.7 million and decreased cash flows from financing activities by $1.7 million for the year ended December 31, 2015 from amounts previously reported.

Recently Issued Accounting Standard Updates

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). 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 to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires deferral of incremental costs associated with the cost of acquiring a customer contract, such as sales commissions, and amortization of such amounts over the contract term. However, as a practical expedient, if the amortization period of the deferred cost would be one year or less, the entity could expense these costs as incurred.

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).

Effective January 1, 2018, the Company will adopt ASU 2014-09 using the modified retrospective approach. This standard will result in a change in the timing of recognizing revenue on the Company’s digital content license subscription products. Currently, revenue associated with any unused licenses is recognized using the effective per-license rate when the subscription expires. ASU 2014-09 will require the Company to recognize the revenue associated with the unused licenses during the subscription period in proportion to the revenue recognized on digital content licenses used. This standard will not impact revenue recognition on digital content licenses sold on a transactional basis or license revenue associated with the hosted software services. Management will continue to record a contract liability, or deferred revenue, for contractual amounts that have been prepaid or are due from customers. In addition, the Company had historically deferred certain of its contract acquisition costs. These costs had been amortized over 12 months. Upon adoption of ASU 2014-09, these costs will be expensed as incurred.

Management believes the cumulative-effect adjustment of initially applying ASU 2014-09 will be an approximately $6.9 million increase to retained earnings as of January 1, 2018, and is attributable to the net of tax impact of reducing deferred revenues and deferred acquisition costs.

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. Effective January 1, 2018, the Company will adopt ASU 2017-01. 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. Effective January 1, 2018, the Company will adopt ASU 2016-18. The Company’s restricted cash consists of approximately $2.6 million held as collateral for a letter of credit, which serves as a security deposit for the Company’s headquarters lease, and the Company anticipates that the impact of adoption of this guidance will not be material to its financial position or results of operations.

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’s significant long-term leases relate primarily to its office facilities, which are described in Note 8. The Company is evaluating the impact of adopting this new accounting standard on its 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.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

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, 2017
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	55,775	$	55,775	$	—	$	—
Total assets measured at fair value	$	55,775	$	55,775	$	—	$	—



	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

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 as of December 31, 2016 consisted 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, 2016, the settlement amount of the contingent consideration related to the Company’s acquisition of PremiumBeat was determined to be $10.0 million and was included in other liabilities. No changes in fair value were recorded during the year ended December 31, 2017. The contingent consideration of $10.0 million was paid in the first quarter of 2017.

The changes in the fair value of contingent consideration through December 31, 2017 are as follows (in thousands):



	Consolidated			Webdam			PremiumBeat⁽¹⁾
Balance at January 1, 2016	$	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
Payments of contingent consideration	(10,000		)	—			(10,000		)
Balance at December 31, 2017	$	—		$	—		$	—

______________________________________________________________________________


(1)	Included as a component of accrued expenses and other current liabilities as of December 31, 2016

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, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

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



	December 31,
	2017			2016
Computer equipment and software	$	118,493		$	63,711
Furniture and fixtures	9,970			3,434
Leasehold improvements	18,487			20,944
Property and equipment	146,950			88,089
Less: accumulated depreciation	(61,252		)	(31,988		)
Property and equipment, net	$	85,698		$	56,101

Depreciation and amortization expense related to property and equipment amounted to $29.2 million, $14.9 million and $10.1 million, for the years ended December 31, 2017, 2016 and 2015, respectively. Depreciation and amortization expense is included in cost of revenue and general and administrative expense based on the nature of the asset. There was no loss on disposal for the years ended December 31, 2016 and 2015.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $39.2 million, $20.0 million and $3.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software. During 2016 and 2017, 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 $14.1 million, $3.6 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue and general and administrative expense.

As of December 31, 2017 and December 31, 2016, the Company had capitalized internal-use software of $45.4 million and $20.3 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The Company’s goodwill balance is attributable to its Bigstock, Editorial, Images, Music and Webdam reporting units and is tested for impairment at least annually on October 1 or upon a triggering event. Bigstock, Editorial, Images and Music are included in the Company’s Content Business reportable 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 period ended December 31, 2017 (in thousands):



	Content Business		Other Category		Consolidated
Balance as of December 31, 2016	$	40,508	$	8,763	$	49,271
Acquired goodwill	46,217		—		46,217
Foreign currency translation adjustment	3,166		—		3,166
Balance as of December 31, 2017	$	89,891	$	8,763	$	98,654

The Company performed its annual goodwill assessment as October 1, 2017 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 of its Bigstock, Images, 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.

Intangible Assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2017 and 2016 (in thousands):



	As of December 31, 2017								As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	21,008	$	(6,996	)	$	14,012	9	$	16,712	$	(4,344	)	$	12,368
Trade name	7,159		(3,299		)	3,860		7	6,677		(2,030		)	4,647
Developed technology	5,528		(3,450		)	2,078		4	3,224		(1,934		)	1,290
Contributor content	17,041		(3,066		)	13,975		11	12,958		(1,386		)	11,572
Patents	259		(68		)	191		18	227		(52		)	175
Domain name	160		(79		)	81		12	160		(55		)	105
Total	$	51,155	$	(16,958	)	$	34,197		$	39,958	$	(9,801	)	$	30,157

Amortization expense related to the intangible assets was $6.3 million, $5.1 million and $4.7 million for the years ended December 31, 2017, 2016 and 2015, 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: $6.3 million in 2018, $6.1 million in 2019, $5.1 million in 2020, $4.0 million in 2021, $3.1 million in 2022 and $9.6 million thereafter.

- 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, 2017

Business Combinations [Abstract]

Acquisition Activity

Acquisition Activity in 2017

Flashstock Technology, Inc.

On July 7, 2017, the Company acquired all of the shares of Flashstock Technology, Inc. (“Flashstock”) pursuant to a stock purchase agreement. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date.

Flashstock is a Toronto-based company that enables the creation of custom content through a propriety software platform. The Company believes this acquisition will strengthen the Company’s strategic position and serve as the foundation for the Company to bring a comprehensive custom content offering to market.

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 Company considered the intangible assets acquired in the transaction, and determined customer relationships and acquired developed technology meet the separability criteria.

The total purchase price was $51.7 million of which $50.9 million was paid with existing cash on hand during the year ended December 31, 2017, and $0.8 million which was paid in the first quarter of 2018 for the settlement of working capital adjustments. The unpaid portion of the purchase price is included in accrued expenses as of December 31, 2017.

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



Assets:
Cash and cash equivalents	$	1,330
Accounts receivable	3,105
Prepaid expenses and other current assets	155
Intangible Assets:
Customer relationships	3,000
Developed technology	2,200
Goodwill	46,217
Total assets acquired	56,007
Liabilities:
Accrued expenses	(279		)
Accounts payable	(99		)
Deferred tax liability, net	(333		)
Deferred revenue	(3,550		)
Total liabilities acquired	(4,261		)
Net assets acquired	$	51,746

Fair value adjustments relating to this acquisition were finalized as of December 31, 2017, which were within the allowable measurement period.

The identifiable intangible assets have a weighted average life of approximately seven years and are being amortized on a straight-line basis. The fair value of the customer relationships was determined using a variation of the income approach known as the multiple-period excess earnings method. The fair value of the developed technology was determined using the relief-from-royalty method.

The goodwill arising from the transaction is primarily attributable to assembled workforce, future growth opportunities in the custom content market, potential economies of scale arising from the combined entity’s ability to leverage the Company’s existing global sales and marketing reach, and potential synergies arising from the addition of custom content offerings for the Company’s existing customer base. Approximately 26% of goodwill will be deductible for income tax purposes.

In connection with the acquisition, the Company recorded approximately $0.8 million of professional fees in the year ended December 31, 2017. The professional fees are included in general and administrative expense.

The Company has performance-based bonus arrangements with certain Flashstock employees who are now employees of Shutterstock. These employees are entitled to additional compensation if: (i) the custom content business achieves certain financial targets for the 2019 calendar year and (ii) the individual is employed by Shutterstock as of December 31, 2019. These performance-based bonuses will be reported as period expenses within general and administrative expenses in the consolidated statements of operations, and are not considered part of the Flashstock purchase price.

Unaudited Pro Forma Information

The operations of the acquired entity have been integrated into the Company’s operations from the acquisition date. The following unaudited pro forma consolidated financial information reflects the results of operations of the Company for the years ended December 31, 2017 and 2016, as if the Flashstock acquisition was had been completed on January 1, 2016, after giving effect to certain purchase accounting adjustments, primarily related to intangible assets and deferred revenue. These unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the period (in thousands):



	Year Ended December 31,
	2017		2016
Revenue
As reported	$	557,111	$	494,317
Pro forma	562,137		496,853
Income before income taxes
As reported	$	30,081	$	44,497
Pro forma	29,842		40,908

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 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 was paid in the first quarter of 2017.

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.

- 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
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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
-Topic 805
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
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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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-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-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
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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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
-Section 50
-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
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Accrued Expenses

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	December 31,
	2017		2016
Compensation	$	19,897	$	13,732
Non-income taxes	6,895		7,383
Royalty tax withholdings	7,566		6,921
Other expenses	24,376		13,070
Total accrued expenses	$	58,734	$	41,106

Income Taxes

12 Months Ended

Dec. 31, 2017

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,
	2017		2016		2015
Domestic	$	24,558	$	38,549	$	36,643
Foreign	5,523		5,948		(2,371		)
Income before income taxes	$	30,081	$	44,497	$	34,272

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



	Year Ended December 31,
	2017			2016			2015
Current:
Federal provision	$	(4,813	)	$	6,389		$	16,551
State and local provision	112			852			1,683
Foreign provision	5,564			2,861			1,326
Deferred:
Federal benefit	14,578			3,376			(3,311		)
State and local provision	523			(34		)	33
Foreign benefit	(2,610		)	(1,575		)	(1,562		)
Provision for income taxes	$	13,354		$	11,869		$	14,720

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



	Year Ended December 31,
	2017		2016		2015
U.S. income tax at federal statutory rate	35.0	%	35.0	%	35.0	%
Tax credits	(4.0	)	(12.0	)	—
State and local taxes, net of federal benefit	2.1		2.9		3.7
Equity-based compensation⁽¹⁾	1.9		2.1		2.7
Foreign rate differential	(2.3	)	(1.8	)	1.2
Uncertain tax positions	5.2		(0.4	)	(1.0	)
Transition tax related to TCJA	2.6		—		—
U.S. Federal rate change related to TCJA	12.4		—		—
Domestic production activities deduction	(9.8	)	—		—
Non-deductible—other	1.3		0.9		1.4
Total provision for income taxes	44.4	%	26.7	%	43.0	%


(1)	Included in this amount for the year ended December 31, 2017 is the impact of windfall/shortfall related to stock option exercises and RSU vestings that were reflected in additional paid-in capital, prior to the adoption of ASU 2016-09 on January 1, 2017. All periods presented include the impact of non-deductible stock-based compensation expenses.

On December 22, 2017, the U.S. enacted the TCJA, which lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a one-time “transition tax” on undistributed earnings of foreign subsidiaries. The Company’s effective tax rate for the year ended December 31, 2017 includes an expense of $3.7 million related to the impact of remeasuring the Company’s deferred tax balances to reflect the new tax rate and an expense of $0.8 million for the transition tax. As permitted under the TCJA, the Company intends to pay the transition tax in eight annual interest-free installments beginning in 2018.

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,
	2017			2016
Deferred tax assets:
Non-cash equity-based compensation	$	8,342		$	10,611
Intangible amortization	4,555			8,197
Non-income tax accruals	2,887			3,682
Deferred rent	2,484			3,123
Other liabilities	2,895			5,600
Deferred tax assets	21,163			31,213
Deferred tax liabilities:
Depreciation and amortization	(12,888		)	(10,347		)
Net deferred tax assets	$	8,275		$	20,866

The non-cash equity-based compensation for the Company includes a deferred tax asset of $3.8 million associated with the performance-based grant of stock options and restricted stock units to the Company’s Chief Executive Officer.

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



	Year Ended December 31,
	2017			2016			2015
Balance of unrecognized tax benefits at January 1	$	1,455		$	1,479		$	1,500
Gross additions for tax positions for prior years	1,412			886			280
Gross additions for tax positions for current year	273			360			57
Gross expirations	(174		)	(1,270		)	(358		)
Balance of unrecognized tax benefits at December 31	$	2,966		$	1,455		$	1,479

The total amount of gross unrecognized tax benefits was $3.0 million, which, if recognized, would impact the Company’s effective tax rate in future periods. 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 currently under examination by the German Tax Office for years 2013-2015 and by New York City for 2014. 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 recognizes interest expense and tax penalties related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of operations. Interest and penalties included in the company’s provision for income taxes were not material in all the periods presented.

As of December 31, 2017, the Company has $6.2 million and $2.6 million in tax net operating loss carryforwards in Canada and the U.K., respectively, which are available to reduce future income taxes, none of which are expected to expire unutilized.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

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, 2017 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2018	$	7,711	$	21,921
2019	7,736		14,017
2020	7,067		9,964
2021	6,956		—
2022	6,866		—
Thereafter	49,848		—
Total minimum lease payments	$	86,184	$	45,902

Lease Commitments

The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases for the years ended December 31, 2017, 2016 and 2015 was approximately $8.5 million, $7.2 million and $4.8 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, 2017. As amended, the lease is scheduled to expire in 2029 and aggregate future minimum lease payments are approximately $77.8 million.

Other Obligations

As of December 31, 2017, the Company had other obligations of approximately $45.9 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 under certain conditions, (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) a distribution agreement, under which the Company is the exclusive distributor of the Transaction Party’s content in certain markets subject to certain limitations; and (c) an option to 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.

On March 27, 2017, the Facility was amended to reduce the maximum lending amount to approximately $3.3 million. As of December 31, 2017, the Transaction Party has borrowed $3.3 million under the Facility and the Company has no additional lending obligation.

Simultaneously with the reduction of the maximum lending amount of the Facility, the Company invested $1.6 million in a convertible note issued by the Transaction Party, which matures on October 20, 2021. The convertible note 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. The principal amount of the convertible note and any accrued and unpaid interest may be converted into equity of the Transaction Party at the Company’s option on the maturity date, or earlier upon certain events.

As of December 31, 2017, the Company’s total investment in the Transaction Party, including accrued interest receivable, is approximately $6.0 million, which is reported in other non-current assets.

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, 2017, 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, 2017
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. Effective January 1, 2018 the Company will provide discretionary employer matching of 50% of employees’ eligible contributions. Matching contributions are fully vested and non-forfeitable at all times. The Company recorded employer matching contributions of $1.8 million, $1.7 million and $1.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Equity-Based Compensation

12 Months Ended

Dec. 31, 2017

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, RSUs granted under the 2012 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, 2017, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2017		2016		2015
Cost of revenue	$	795	$	1,938	$	1,896
Sales and marketing	4,452		5,444		4,520
Product development	6,162		7,681		7,565
General and administrative	13,549		13,017		14,879
Total	$	24,958	$	28,080	$	28,860

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, 2017, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2017		2016		2015
Stock Options	$	6,364	$	7,295	$	8,191
Restricted Stock Units	18,594		20,179		19,765
ESPP	—		606		904
Total	$	24,958	$	28,080	$	28,860

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 1,044,000 and 1,071,000 shares, respectively, on January 1, 2017 and 2016, 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, 2016	1,411,369		$	51.52
Options granted	85,500		48.05
Options exercised	(75,508	)	22.27
Options cancelled or expired	(238,231	)	41.53
Options outstanding at December 31, 2017	1,183,130		$	55.14

Options exercisable at December 31, 2017	322,290		$	35.86

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



	As of December 31,
	2017		2016
Stock options outstanding	$	6,400	$	12,400
Stock options exercisable	3,600		4,700
Stock options vested and expected to vest	$	6,400	$	12,000

The intrinsic value of stock options exercised for the years ended December 31, 2017, 2016 and 2015 was approximately $1.6 million, $10.6 million and $12.7 million, respectively.

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2017, 2016 and 2015:



	Year Ended Year Ended December 31,
	2017			2016			2015
Expected term (in years)	6.2			6.3			6.5
Volatility	50.0		%	52.5		%	52.1		%
Risk-free interest rate	2.15		%	1.48		%	1.70		%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	24.19		$	19.03		$	15.90

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, 2017, the total unrecognized compensation charge related to 2012 Plan non-vested options is approximately $13.5 million, which is expected to be recognized through fiscal year 2021.

Restricted Stock Units Awards

The following table presents a summary of the Company’s RSUs activity for the year ended December 31, 2017:



	Plan RSUs		Weighted Average Fair Value
Non-vested balance at December 31, 2016	1,271,610		$	46.50
Units granted	830,807		43.56
Units vested	(427,583	)	49.23
Units cancelled or forfeited	(501,674	)	45.62
Non-vested balance at December 31, 2017	1,173,160		$	43.79

Non-vested and deferred balance at December 31, 2017	1,186,511		$	44.07

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, 2017, the total unrecognized compensation charge related to the restricted stock units is approximately $36.2 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 the Company’s 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, 2017, approximately 233,000 shares have been issued under the 2012 ESPP.

The number of shares of common stock available under the 2012 ESPP was increased by 1,000,000 shares on January 1, 2016, pursuant to the increase provisions of the 2012 ESPP. Effective December 1, 2016, the Company has suspended the ESPP plan.

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
Expected term (in years)	0.50		0.50
Volatility	59.1	%	52.1	%
Risk-free interest rate	0.46	%	0.07% - 0.42%
Dividend yield	—		—

- 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, 2017
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, 2017, the Company has not issued and has no plans to issue any shares of preferred stock. Treasury Stock In October 2015, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $100 million of its common stock. In February 2017, the Company’s Board of Directors approved an increase to the stock repurchase program, authorizing the Company to purchase an additional $100 million of its common stock. As of December 31, 2017, the Company has repurchased approximately 2,560,000 shares of its common stock under the share repurchase program at an average per-share cost of approximately $39.09. As of December 31, 2017, there is $100.0 million remaining for purchases under the share repurchase program. The Company expects to fund repurchases through a combination of cash on hand, cash generated by operations and future financing transactions, if 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

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-Name Accounting Standards Codification
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+ Details

Other (Expense)/Income, net

12 Months Ended

Dec. 31, 2017

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,
	2017		2016			2015
Foreign currency gain/(loss)	$	2,841	$	(167	)	$	(2,003	)
Change in contingent consideration fair value	—		(1,271		)	(4,770		)
Interest income	891		149			27
Other income/(expense), net	$	3,732	$	(1,289	)	$	(6,746	)

Net Income Per Share

12 Months Ended

Dec. 31, 2017

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,
	2017	2016	2015
Basic	34,627	35,114	35,880
Stock options and employee stock purchase plan shares	388	441	345
Unvested restricted stock awards	276	306	94
Diluted	35,291	35,861	36,319

Potentially dilutive shares included in the calculation	1,384	1,954	1,624
Anti-dilutive shares excluded from the calculation	1,325	999	1,064

Segment and Geographic Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Financial Information

The following table summarizes segment information for the years ended December 31, 2017 and 2016 (in thousands):



	Content Segment		Other and Corporate			Consolidated
December 31, 2017
Revenue	$	541,088	$	16,023		$	557,111
Operating Expenses⁽¹⁾	417,507		113,255			530,762
Income from Operations	123,581		(97,232		)	26,349
December 31, 2016
Revenue	483,278		11,039			494,317
Operating Expenses⁽¹⁾	364,631		83,900			448,531
Income from Operations	118,647		(72,861		)	45,786
December 31, 2015
Revenue	417,310		7,839			425,149
Operating Expenses⁽¹⁾	314,204		69,927			384,131
Income from Operations	$	103,106	$	(62,088	)	$	41,018

(1)

Other and corporate operating expenses include unallocated corporate expenses of approximately $96.5 million, $67.7 million and $59.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. Unallocated corporate expenses primarily relate to shared operational support functions and general and administrative functions of human resources, legal, finance and information technology.

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

Geographic Financial Information

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



	Year Ended December 31,
	2017		2016		2015
North America	$	218,865	$	197,650	$	166,225
Europe	181,693		161,906		144,103
Rest of the world	156,553		134,761		114,821
Total revenue	$	557,111	$	494,317	$	425,149

Included in North America is the United States which comprises approximately 35% of total revenue for the years ended December 31, 2017, 2016, and 2015. The United Kingdom accounts for approximately 10% of total revenue for the year ended December 31, 2016. No other country accounts for more than 10% of the Company’s revenue in any period presented.

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



	December 31,
	2017		2016
North America	$	83,027	$	54,913
Europe	2,599		1,141
Rest of world	72		47
Total long-lived tangible assets	$	85,698	$	56,101

Included in North America is the United States, which comprises 92% and 95% of total long-lived tangible assets as of December 31, 2017 and 2016, respectively.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: 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
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-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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-Name Accounting Standards Codification
-Topic 280
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-Name Accounting Standards Codification
-Topic 280
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-Name Accounting Standards Codification
-Topic 280
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 4, 2018, the Company invested $15.0 million in convertible preferred shares issued by Zcool Network Technology Limited (“Zcool”), which is equivalent to a 25% fully diluted equity ownership interest, to further expand the Company’s presence in fast-growing markets. Zcool’s primary business is the operation of an e-commerce platform in China whereby customers can pay to license content contributed by creative professionals. Zcool has been the exclusive distributor of Shutterstock creative content in China since 2014. On February 15, 2018, the Company entered into an asset purchase agreement to sell certain assets and for the buyer to assume certain liabilities constituting the Company’s digital asset management business, known as Webdam, for an aggregate purchase price of approximately $49.1 million. The purchase price, subject to adjustments typical for transactions of this type, is payable in cash at closing, which is expected to occur on or about February 26, 2018.

Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

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, 2017. 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, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017		Dec 31, 2016			Sep 30, 2016		Jun 30, 2016			Mar 31, 2016

	(in thousands, except per share data)
Revenue⁽¹⁾	$	151,829	$	141,063	$	133,995	$	130,224	$	130,173		$	123,073	$	124,419		$	116,652
Operating expenses⁽²⁾:
Cost of revenue	64,590		58,812		57,289		52,411		52,637			50,184		52,245			48,063
Sales & marketing	40,844		36,008		37,109		32,503		34,990			32,977		31,571			27,088
Product development	15,210		13,340		12,892		11,044		12,989			11,604		11,971			11,225
General and administrative	23,994		27,333		23,420		23,963		16,358			17,020		18,155			19,454
Total operating expenses	144,638		135,493		130,710		119,921		116,974			111,785		113,942			105,830
Income from operations	7,191		5,570		3,285		10,303		13,199			11,288		10,477			10,822
Other (expense)/ income, net⁽³⁾	1,637		130		1,510		455		(1,167		)	102		(212		)	(12		)
Income before income taxes	8,828		5,700		4,795		10,758		12,032			11,390		10,265			10,810
Provision for income tax⁽⁴⁾	6,772		698		1,729		4,155		2,177			1,999		3,016			4,677
Net income available to common stockholders	$	2,056	$	5,002	$	3,066	$	6,603	$	9,855		$	9,391	$	7,249		$	6,133
Net income per common share available to common stockholders:
Basic	$	0.06	$	0.14	$	0.09	$	0.19	$	0.28		$	0.27	$	0.21		$	0.17
Diluted	$	0.06	$	0.14	$	0.09	$	0.19	$	0.27		$	0.26	$	0.20		$	0.17
Weighted average common shares outstanding:
Basic	34,686		34,643		34,581		34,597		35,089			35,036		34,957			35,375
Diluted	35,149		35,177		35,250		35,595		35,881			35,824		35,642			36,099

____________________________________________________________________________

(1)

During 2017, the Company recorded adjustments to its unaudited consolidated financial statements relating to certain prior period transactions. Such adjustments decreased revenue during the second quarter of 2017 by approximately $0.6 million, and increased revenue during the third and fourth quarter of 2017 by approximately $0.9 million and $0.5 million, respectively. The Company has concluded that the impacts of the adjustments are not material to the results of operations or financial position for the current periods or any prior quarterly or annual period financial statements; accordingly, the Company recorded the related adjustments in the three months ended June 30, 2017, September 30, 2017 and December 31, 2017, respectively.


(2)	Includes non-cash equity-based compensation of $24,958 and $28,080 for the years ended December 31, 2017 and 2016, respectively.


(3)	Includes changes in fair value of contingent consideration related to the PremiumBeat acquisition; 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.


(4)	Included in the provision for income taxes for the three months ended December 31, 2017 are approximately $3.7 million of non-cash charges related to a remeasurement of deferred tax assets related to the change in U.S. tax rates from 35% to 21% and approximately $0.8 million of cash charges related to a one-time U.S. cash tax for unrepatriated foreign earnings related to the TCJA.

Summary of Operations and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

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 bank deposits. 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


•	Fair Value of Common Stock. The grant date fair value for stock-based awards is based on the closing price of the Company’s common stock on the NYSE on the date of grant and fair value for all other purposes related to stock-based awards shall be the closing price of the Company’s common stock on the NYSE on the relevant date.


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


•	Volatility. The volatility is estimated based on historical price volatility of the Company’s common stock.


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


•	Dividend Yield. The Company 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, 2017

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,
	2017			2016			2015
Balance, beginning of period	$	5,495		$	3,768		$	1,031
Add: bad debt expense	1,292			2,992			3,175
Less: write-offs, net of recoveries and other adjustments	(2,699		)	(1,265		)	(438		)
Balance, end of period	$	4,088		$	5,495		$	3,768

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,
	2017			2016
Computer equipment and software	$	118,493		$	63,711
Furniture and fixtures	9,970			3,434
Leasehold improvements	18,487			20,944
Property and equipment	146,950			88,089
Less: accumulated depreciation	(61,252		)	(31,988		)
Property and equipment, net	$	85,698		$	56,101

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017
	Aggregate Fair Value		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	55,775	$	55,775	$	—	$	—
Total assets measured at fair value	$	55,775	$	55,775	$	—	$	—



	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

Schedule of changes in fair value contingent consideration

The changes in the fair value of contingent consideration through December 31, 2017 are as follows (in thousands):



	Consolidated			Webdam			PremiumBeat⁽¹⁾
Balance at January 1, 2016	$	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
Payments of contingent consideration	(10,000		)	—			(10,000		)
Balance at December 31, 2017	$	—		$	—		$	—

______________________________________________________________________________


(1)	Included as a component of accrued expenses and other current liabilities as of December 31, 2016

- 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, 2017

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,
	2017			2016
Computer equipment and software	$	118,493		$	63,711
Furniture and fixtures	9,970			3,434
Leasehold improvements	18,487			20,944
Property and equipment	146,950			88,089
Less: accumulated depreciation	(61,252		)	(31,988		)
Property and equipment, net	$	85,698		$	56,101

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

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 period ended December 31, 2017 (in thousands):



	Content Business		Other Category		Consolidated
Balance as of December 31, 2016	$	40,508	$	8,763	$	49,271
Acquired goodwill	46,217		—		46,217
Foreign currency translation adjustment	3,166		—		3,166
Balance as of December 31, 2017	$	89,891	$	8,763	$	98,654

Schedule of intangible assets

Intangible assets, all of which are subject to amortization, consist of the following as of December 31, 2017 and 2016 (in thousands):



	As of December 31, 2017								As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	21,008	$	(6,996	)	$	14,012	9	$	16,712	$	(4,344	)	$	12,368
Trade name	7,159		(3,299		)	3,860		7	6,677		(2,030		)	4,647
Developed technology	5,528		(3,450		)	2,078		4	3,224		(1,934		)	1,290
Contributor content	17,041		(3,066		)	13,975		11	12,958		(1,386		)	11,572
Patents	259		(68		)	191		18	227		(52		)	175
Domain name	160		(79		)	81		12	160		(55		)	105
Total	$	51,155	$	(16,958	)	$	34,197		$	39,958	$	(9,801	)	$	30,157

Acquisition Activity (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Aggregate purchase price allocation, assets acquired liabilities assumed schedule

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



Assets:
Cash and cash equivalents	$	1,330
Accounts receivable	3,105
Prepaid expenses and other current assets	155
Intangible Assets:
Customer relationships	3,000
Developed technology	2,200
Goodwill	46,217
Total assets acquired	56,007
Liabilities:
Accrued expenses	(279		)
Accounts payable	(99		)
Deferred tax liability, net	(333		)
Deferred revenue	(3,550		)
Total liabilities acquired	(4,261		)
Net assets acquired	$	51,746

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

Schedule of pro forma information

The following unaudited pro forma consolidated financial information reflects the results of operations of the Company for the years ended December 31, 2017 and 2016, as if the Flashstock acquisition was had been completed on January 1, 2016, after giving effect to certain purchase accounting adjustments, primarily related to intangible assets and deferred revenue. These unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the period (in thousands):



	Year Ended December 31,
	2017		2016
Revenue
As reported	$	557,111	$	494,317
Pro forma	562,137		496,853
Income before income taxes
As reported	$	30,081	$	44,497
Pro forma	29,842		40,908

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consisted of the following (in thousands):



	December 31,
	2017		2016
Compensation	$	19,897	$	13,732
Non-income taxes	6,895		7,383
Royalty tax withholdings	7,566		6,921
Other expenses	24,376		13,070
Total accrued expenses	$	58,734	$	41,106

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017		2016		2015
Domestic	$	24,558	$	38,549	$	36,643
Foreign	5,523		5,948		(2,371		)
Income before income taxes	$	30,081	$	44,497	$	34,272

Summary of consolidated provision (benefit) for income taxes

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



	Year Ended December 31,
	2017			2016			2015
Current:
Federal provision	$	(4,813	)	$	6,389		$	16,551
State and local provision	112			852			1,683
Foreign provision	5,564			2,861			1,326
Deferred:
Federal benefit	14,578			3,376			(3,311		)
State and local provision	523			(34		)	33
Foreign benefit	(2,610		)	(1,575		)	(1,562		)
Provision for income taxes	$	13,354		$	11,869		$	14,720

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,
	2017		2016		2015
U.S. income tax at federal statutory rate	35.0	%	35.0	%	35.0	%
Tax credits	(4.0	)	(12.0	)	—
State and local taxes, net of federal benefit	2.1		2.9		3.7
Equity-based compensation⁽¹⁾	1.9		2.1		2.7
Foreign rate differential	(2.3	)	(1.8	)	1.2
Uncertain tax positions	5.2		(0.4	)	(1.0	)
Transition tax related to TCJA	2.6		—		—
U.S. Federal rate change related to TCJA	12.4		—		—
Domestic production activities deduction	(9.8	)	—		—
Non-deductible—other	1.3		0.9		1.4
Total provision for income taxes	44.4	%	26.7	%	43.0	%


(1)	Included in this amount for the year ended December 31, 2017 is the impact of windfall/shortfall related to stock option exercises and RSU vestings that were reflected in additional paid-in capital, prior to the adoption of ASU 2016-09 on January 1, 2017. All periods presented include the impact of non-deductible stock-based compensation expenses.

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,
	2017			2016
Deferred tax assets:
Non-cash equity-based compensation	$	8,342		$	10,611
Intangible amortization	4,555			8,197
Non-income tax accruals	2,887			3,682
Deferred rent	2,484			3,123
Other liabilities	2,895			5,600
Deferred tax assets	21,163			31,213
Deferred tax liabilities:
Depreciation and amortization	(12,888		)	(10,347		)
Net deferred tax assets	$	8,275		$	20,866

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,
	2017			2016			2015
Balance of unrecognized tax benefits at January 1	$	1,455		$	1,479		$	1,500
Gross additions for tax positions for prior years	1,412			886			280
Gross additions for tax positions for current year	273			360			57
Gross expirations	(174		)	(1,270		)	(358		)
Balance of unrecognized tax benefits at December 31	$	2,966		$	1,455		$	1,479

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 are as follows (in thousands):



Year Ending December 31,	Operating Leases		Other Obligations
2018	$	7,711	$	21,921
2019	7,736		14,017
2020	7,067		9,964
2021	6,956		—
2022	6,866		—
Thereafter	49,848		—
Total minimum lease payments	$	86,184	$	45,902

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

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



	Year Ended December 31,
	2017		2016		2015
Cost of revenue	$	795	$	1,938	$	1,896
Sales and marketing	4,452		5,444		4,520
Product development	6,162		7,681		7,565
General and administrative	13,549		13,017		14,879
Total	$	24,958	$	28,080	$	28,860



	Year Ended December 31,
	2017		2016		2015
Stock Options	$	6,364	$	7,295	$	8,191
Restricted Stock Units	18,594		20,179		19,765
ESPP	—		606		904
Total	$	24,958	$	28,080	$	28,860



	As of December 31,
	2017		2016
Stock options outstanding	$	6,400	$	12,400
Stock options exercisable	3,600		4,700
Stock options vested and expected to vest	$	6,400	$	12,000

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, 2016	1,411,369		$	51.52
Options granted	85,500		48.05
Options exercised	(75,508	)	22.27
Options cancelled or expired	(238,231	)	41.53
Options outstanding at December 31, 2017	1,183,130		$	55.14

Options exercisable at December 31, 2017	322,290		$	35.86

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
Expected term (in years)	0.50		0.50
Volatility	59.1	%	52.1	%
Risk-free interest rate	0.46	%	0.07% - 0.42%
Dividend yield	—		—

The following weighted average assumptions were used in the fair value calculation for the years ended December 31, 2017, 2016 and 2015:



	Year Ended Year Ended December 31,
	2017			2016			2015
Expected term (in years)	6.2			6.3			6.5
Volatility	50.0		%	52.5		%	52.1		%
Risk-free interest rate	2.15		%	1.48		%	1.70		%
Dividend yield	—			—			—
Valuation Data:
Weighted average fair value per share granted	$	24.19		$	19.03		$	15.90

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, 2017:



	Plan RSUs		Weighted Average Fair Value
Non-vested balance at December 31, 2016	1,271,610		$	46.50
Units granted	830,807		43.56
Units vested	(427,583	)	49.23
Units cancelled or forfeited	(501,674	)	45.62
Non-vested balance at December 31, 2017	1,173,160		$	43.79

Non-vested and deferred balance at December 31, 2017	1,186,511		$	44.07

Other (Expense)/Income, net (Tables)

12 Months Ended

Dec. 31, 2017

Other Nonoperating Income (Expense) [Abstract]

Summary of the Company’s other (expense)/income activity

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,
	2017		2016			2015
Foreign currency gain/(loss)	$	2,841	$	(167	)	$	(2,003	)
Change in contingent consideration fair value	—		(1,271		)	(4,770		)
Interest income	891		149			27
Other income/(expense), net	$	3,732	$	(1,289	)	$	(6,746	)

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Schedule of 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,
	2017	2016	2015
Basic	34,627	35,114	35,880
Stock options and employee stock purchase plan shares	388	441	345
Unvested restricted stock awards	276	306	94
Diluted	35,291	35,861	36,319

Potentially dilutive shares included in the calculation	1,384	1,954	1,624
Anti-dilutive shares excluded from the calculation	1,325	999	1,064

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Summarized segment information

The following table summarizes segment information for the years ended December 31, 2017 and 2016 (in thousands):



	Content Segment		Other and Corporate			Consolidated
December 31, 2017
Revenue	$	541,088	$	16,023		$	557,111
Operating Expenses⁽¹⁾	417,507		113,255			530,762
Income from Operations	123,581		(97,232		)	26,349
December 31, 2016
Revenue	483,278		11,039			494,317
Operating Expenses⁽¹⁾	364,631		83,900			448,531
Income from Operations	118,647		(72,861		)	45,786
December 31, 2015
Revenue	417,310		7,839			425,149
Operating Expenses⁽¹⁾	314,204		69,927			384,131
Income from Operations	$	103,106	$	(62,088	)	$	41,018

(1)

Schedule of geographic revenue

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



	Year Ended December 31,
	2017		2016		2015
North America	$	218,865	$	197,650	$	166,225
Europe	181,693		161,906		144,103
Rest of the world	156,553		134,761		114,821
Total revenue	$	557,111	$	494,317	$	425,149

Schedule of long-lived tangible assets

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



	December 31,
	2017		2016
North America	$	83,027	$	54,913
Europe	2,599		1,141
Rest of world	72		47
Total long-lived tangible assets	$	85,698	$	56,101

Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

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



	Three Months Ended
	Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017		Dec 31, 2016			Sep 30, 2016		Jun 30, 2016			Mar 31, 2016

	(in thousands, except per share data)
Revenue⁽¹⁾	$	151,829	$	141,063	$	133,995	$	130,224	$	130,173		$	123,073	$	124,419		$	116,652
Operating expenses⁽²⁾:
Cost of revenue	64,590		58,812		57,289		52,411		52,637			50,184		52,245			48,063
Sales & marketing	40,844		36,008		37,109		32,503		34,990			32,977		31,571			27,088
Product development	15,210		13,340		12,892		11,044		12,989			11,604		11,971			11,225
General and administrative	23,994		27,333		23,420		23,963		16,358			17,020		18,155			19,454
Total operating expenses	144,638		135,493		130,710		119,921		116,974			111,785		113,942			105,830
Income from operations	7,191		5,570		3,285		10,303		13,199			11,288		10,477			10,822
Other (expense)/ income, net⁽³⁾	1,637		130		1,510		455		(1,167		)	102		(212		)	(12		)
Income before income taxes	8,828		5,700		4,795		10,758		12,032			11,390		10,265			10,810
Provision for income tax⁽⁴⁾	6,772		698		1,729		4,155		2,177			1,999		3,016			4,677
Net income available to common stockholders	$	2,056	$	5,002	$	3,066	$	6,603	$	9,855		$	9,391	$	7,249		$	6,133
Net income per common share available to common stockholders:
Basic	$	0.06	$	0.14	$	0.09	$	0.19	$	0.28		$	0.27	$	0.21		$	0.17
Diluted	$	0.06	$	0.14	$	0.09	$	0.19	$	0.27		$	0.26	$	0.20		$	0.17
Weighted average common shares outstanding:
Basic	34,686		34,643		34,581		34,597		35,089			35,036		34,957			35,375
Diluted	35,149		35,177		35,250		35,595		35,881			35,824		35,642			36,099

____________________________________________________________________________

(1)


(2)	Includes non-cash equity-based compensation of $24,958 and $28,080 for the years ended December 31, 2017 and 2016, respectively.


(3)	Includes changes in fair value of contingent consideration related to the PremiumBeat acquisition; 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.


(4)	Included in the provision for income taxes for the three months ended December 31, 2017 are approximately $3.7 million of non-cash charges related to a remeasurement of deferred tax assets related to the change in U.S. tax rates from 35% to 21% and approximately $0.8 million of cash charges related to a one-time U.S. cash tax for unrepatriated foreign earnings related to the TCJA.

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, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts:
Balance, beginning of period	$ 5,495	$ 3,768	$ 1,031
Add: bad debt expense	1,292	2,992	3,175
Less: write-offs, net of recoveries and other adjustments	(2,699)	(1,265)	(438)
Balance, end of period	$ 4,088	5,495	$ 3,768
Other assets
Restricted Cash
Restricted cash		$ 2,600

Summary of Operations and Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2017
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, 2017	Dec. 31, 2016	Dec. 31, 2015
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	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Chargeback and sales refund allowances	$ 0.4	$ 0.6

Summary of Operations and Significant Accounting Policies - Contributor Royalties and Internal Sales Commissions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Deferred royalty advances	$ 4.7	$ 5.0	$ 3.9
Amortization of advance royalty	$ (4.9)	(5.5)	(2.7)
Maximum period over which internal sales commissions get deferred and recognized	12 months
Deferred internal sales commissions	$ 5.5	4.5	5.5
Amortized internal sales commission expense	(5.0)	(4.7)	$ (4.5)
Prepaid expenses and other current assets
Deferred Revenue Arrangement [Line Items]
Deferred contributor royalties	2.5	2.7
Deferred internal sales commission	$ 1.9	$ 1.5

Summary of Operations and Significant Accounting Policies - Advertising Costs and Deferred Rent (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Advertising Costs
Advertising costs	$ 76.6	$ 64.9	$ 53.0
Deferred Rent
Deferred rent balance	$ 11.1	$ 8.6

Summary of Operations and Significant Accounting Policies - Equity-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2017
2012 Plan \| Stock Options
Equity-Based Compensation
Vesting period	4 years
2012 Plan \| Restricted Stock Units
Equity-Based Compensation
Vesting period	3 years
2012 ESPP \| ESPP
Equity-Based Compensation
Vesting period	6 months

Summary of Operations and Significant Accounting Policies - Reportable Segments (Details)	12 Months Ended
	Dec. 31, 2017 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, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Foreign currency transactional losses	$ 2.6	$ (1.0)	$ (2.6)

Summary of Operations and Significant Accounting Policies - Recently Adopted Accounting Standard Update (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings		$ 326
Increase (decrease) from operating activity	$ 108,037	100,723	$ 87,016
Accounting Standards Update 2016-09, Excess Tax Benefit Component \| New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (decrease) from operating activity		(400)	1,700
Increase (decrease) from financing activity		400	$ (1,700)
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization period of deferred costs	12 months
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings		(653)
Retained Earnings \| Accounting Standards Update 2016-09, Excess Tax Benefit Component \| New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings		(700)
Retained Earnings \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings	$ 6,900
Other assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash		$ 2,600

Fair Value Measurements - Schedule of fair value measurements (Details) - Aggregate Fair Value - Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets:
Total assets measured at fair value	$ 55,775	$ 136,595
Liabilities:
Total liabilities measured at fair value		10,000
Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value		10,000
Money market accounts
Assets:
Total assets measured at fair value	55,775	81,623
Commercial paper
Assets:
Total assets measured at fair value		54,972
Level 1
Assets:
Total assets measured at fair value	55,775	81,623
Liabilities:
Total liabilities measured at fair value		0
Level 1 \| Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value		0
Level 1 \| Money market accounts
Assets:
Total assets measured at fair value	55,775	81,623
Level 1 \| Commercial paper
Assets:
Total assets measured at fair value		0
Level 2
Assets:
Total assets measured at fair value	0	54,972
Liabilities:
Total liabilities measured at fair value		0
Level 2 \| Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value		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
Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value		10,000
Level 3 \| Acquisition related contingent consideration
Liabilities:
Total liabilities measured at fair value		10,000
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) - Acquisition related contingent consideration - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value	$ 2,925
PremiumBeat
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value	2,925
Aggregate Fair Value \| Other Current Liabilities \| PremiumBeat \| Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value contingent consideration	$ 10,000	$ 10,000

Fair Value Measurements - Schedule of changes in fair value contingent consideration (Details) - Level 3 - Acquisition related contingent consideration - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 10,000,000	$ 11,075,000
Changes in fair value		2,925,000
Payments of contingent consideration	(10,000,000)	(4,000,000)
Ending Balance	0	10,000,000
WebDAM
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0	4,000,000
Changes in fair value	0	0
Payments of contingent consideration	0	(4,000,000)
Ending Balance	0	0
PremiumBeat
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	10,000,000	7,075,000
Changes in fair value		2,925,000
Payments of contingent consideration	(10,000,000)	0
Ending Balance	$ 0	$ 10,000,000

Property and Equipment - Summary of property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property and Equipment
Property and equipment	$ 146,950	$ 88,089
Less: accumulated depreciation	(61,252)	(31,988)
Property and equipment, net	85,698	56,101
Computer equipment and software
Property and Equipment
Property and equipment	118,493	63,711
Furniture and fixtures
Property and Equipment
Property and equipment	9,970	3,434
Leasehold improvements
Property and Equipment
Property and equipment	$ 18,487	$ 20,944

Property and Equipment - Narrative (Details) - USD ($)	12 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 29,200,000	$ 14,900,000	$ 10,100,000
Loss on disposal		0	0
Capitalized costs	39,200,000	20,000,000	3,300,000
Portion of depreciation expense capitalized internal-use software	14,100,000	3,600,000	$ 600,000
Capitalized internal-use software	$ 45,400,000	$ 20,300,000

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Changes in goodwill
December 31, 2016	$ 49,271
Acquired goodwill	46,217
Foreign currency translation adjustment	3,166
December 31, 2017	98,654
Content Business
Changes in goodwill
December 31, 2016	40,508
Acquired goodwill	46,217
Foreign currency translation adjustment	3,166
December 31, 2017	89,891
Other Category
Changes in goodwill
December 31, 2016	8,763
Acquired goodwill	0
Foreign currency translation adjustment	0
December 31, 2017	$ 8,763

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Amortizing intangible assets:
Gross Carrying Amount	$ 51,155	$ 39,958
Accumulated Amortization	(16,958)	(9,801)
Net Carrying Amount	34,197	30,157
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	21,008	16,712
Accumulated Amortization	(6,996)	(4,344)
Net Carrying Amount	$ 14,012	12,368
Weighted Average Life (Years)	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 7,159	6,677
Accumulated Amortization	(3,299)	(2,030)
Net Carrying Amount	$ 3,860	4,647
Weighted Average Life (Years)	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 5,528	3,224
Accumulated Amortization	(3,450)	(1,934)
Net Carrying Amount	$ 2,078	1,290
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 17,041	12,958
Accumulated Amortization	(3,066)	(1,386)
Net Carrying Amount	$ 13,975	11,572
Weighted Average Life (Years)	11 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 259	227
Accumulated Amortization	(68)	(52)
Net Carrying Amount	$ 191	175
Weighted Average Life (Years)	18 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	160
Accumulated Amortization	(79)	(55)
Net Carrying Amount	$ 81	$ 105
Weighted Average Life (Years)	12 years

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Hypothetical decrease	10.00%
Decrease in fair value	8.00%
Impairment of goodwill	$ 0	$ 0	$ 0
Amortization expense	6,300,000	$ 5,100,000	$ 4,700,000
2018	6,300,000
2019	6,100,000
2020	5,100,000
2021	4,000,000
2022	3,100,000
Thereafter	$ 9,600,000

Acquisition Activity - Narrative (Details) $ in Thousands					3 Months Ended	12 Months Ended
Acquisition Activity - Narrative (Details) $ in Thousands	Jul. 07, 2017 USD ($)	Sep. 01, 2016 USD ($) image image_collection	Jan. 22, 2015 USD ($)	Jan. 19, 2015 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Cash payment						$ 49,571	$ 0	$ 62,379
FlashStock Technology, Inc.
Business Acquisition [Line Items]
Purchase price	$ 51,700
Cash payment						50,900
Estimated useful life	7 years
Portion of goodwill deductible for income tax purposes	26.00%
Professional fees						$ 800
The Picture Desk
Business Acquisition [Line Items]
Cash payment		$ 3,900
Minimum number of images \| image		700,000
Number of image collections \| image_collection		2
Rex Features
Business Acquisition [Line Items]
Cash payment				$ 32,700
PremiumBeat
Business Acquisition [Line Items]
Purchase price			$ 35,400
Cash payment			31,700
Contingent consideration			$ 3,700
Contingent consideration settlement amount							$ 10,000
Trade name \| The Picture Desk
Business Acquisition [Line Items]
Estimated useful life		7 years
Contributor content		$ 3,600
Images \| The Picture Desk
Business Acquisition [Line Items]
Estimated useful life		15 years
Forecast \| FlashStock Technology, Inc.
Business Acquisition [Line Items]
Cash payment					$ 800

Acquisition Activity - Schedule of Acquisition (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jul. 07, 2017	Dec. 31, 2016	Jan. 22, 2016	Jan. 19, 2015
Intangible Assets:
Goodwill	$ 98,654		$ 49,271
FlashStock Technology, Inc.
Assets:
Cash		$ 1,330
Accounts receivables		3,105
Prepaid expenses and other current assets		155
Intangible Assets:
Goodwill		46,217
Total assets acquired		56,007
Liabilities:
Accrued expenses		(279)
Accounts payable		(99)
Deferred tax liability, net		(333)
Deferred revenue		(3,550)
Total liabilities assumed		(4,261)
Total		51,746
FlashStock Technology, Inc. \| Customer relationships
Intangible Assets:
Intangible assets		3,000
FlashStock Technology, Inc. \| Developed technology
Intangible Assets:
Intangible assets		$ 2,200
Rex Features
Assets:
Cash					$ 1,525
Accounts receivables					2,908
Other assets					356
Fixed assets					92
Intangible Assets:
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
Intangible Assets:
Intangible assets					13,768
Rex Features \| Trade name
Intangible Assets:
Intangible assets					4,993
Rex Features \| Developed technology
Intangible Assets:
Intangible assets					3,026
Rex Features \| Photo library
Intangible Assets:
Intangible assets					$ 484
PremiumBeat
Assets:
Cash				$ 963
Fixed assets				205
Intangible Assets:
Goodwill				29,849
Deferred tax asset				229
Total assets acquired				36,408
Liabilities:
Deferred revenue				(23)
Contributor payable				(896)
Accrued expenses				(44)
Total liabilities assumed				(963)
Total				35,445
PremiumBeat \| Customer relationships
Intangible Assets:
Intangible assets				3,000
PremiumBeat \| Trade name
Intangible Assets:
Intangible assets				1,400
PremiumBeat \| Music catalog
Intangible Assets:
Intangible assets				584
PremiumBeat \| Developed technology
Intangible Assets:
Intangible assets				$ 178

Acquisition Activity - Unaudited Pro Forma Consolidated Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue
As reported	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 557,111	$ 494,317	$ 425,149
Income before income taxes
As reported	$ 8,828	$ 5,700	$ 4,795	$ 10,758	$ 12,032	$ 11,390	$ 10,265	$ 10,810	30,081	44,497	$ 34,272
FlashStock Technology, Inc.
Revenue
Pro forma									562,137	496,853
Income before income taxes
Pro forma									$ 29,842	$ 40,908

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Compensation	$ 19,897	$ 13,732
Non-income taxes	6,895	7,383
Royalty tax withholdings	7,566	6,921
Other expenses	24,376	13,070
Total accrued expenses	$ 58,734	$ 41,106

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Domestic									$ 24,558	$ 38,549	$ 36,643
Foreign									5,523	5,948	(2,371)
Income before income taxes	$ 8,828	$ 5,700	$ 4,795	$ 10,758	$ 12,032	$ 11,390	$ 10,265	$ 10,810	30,081	44,497	34,272
Current:
Federal provision									(4,813)	6,389	16,551
State and local provision									112	852	1,683
Foreign provision									5,564	2,861	1,326
Deferred:
Federal benefit									14,578	3,376	(3,311)
State and local provision									523	(34)	33
Foreign benefit									(2,610)	(1,575)	(1,562)
Provision for income taxes									$ 13,354	$ 11,869	$ 14,720
Effective income tax rate reconciliation:
U.S. income tax at federal statutory rate									35.00%	35.00%	35.00%
Tax credits									(4.00%)	(12.00%)	(0.00%)
State and local taxes, net of federal benefit									2.10%	2.90%	3.70%
Equity-based compensation(1)									1.90%	2.10%	2.70%
Foreign rate differential									(2.30%)	(1.80%)	1.20%
Uncertain tax positions									5.20%	(0.40%)	(1.00%)
Transition tax related to TCJA									2.60%	0.00%	0.00%
U.S. Federal rate change related to TCJA									12.40%	0.00%	0.00%
Domestic production activities deduction									(9.80%)	(0.00%)	(0.00%)
Non-deductible—other									1.30%	0.90%	1.40%
Total provision for income taxes									44.40%	26.70%	43.00%
Impact of remeasuring deferred tax balances									$ 3,700
Transition tax expense									800
Deferred tax assets:
Non-cash equity-based compensation	8,342				10,611				8,342	$ 10,611
Intangible amortization	4,555				8,197				4,555	8,197
Non-income tax accruals	2,887				3,682				2,887	3,682
Deferred rent	2,484				3,123				2,484	3,123
Other liabilities	2,895				5,600				2,895	5,600
Deferred tax assets	21,163				31,213				21,163	31,213
Deferred tax liabilities:
Depreciation and amortization	(12,888)				(10,347)				(12,888)	(10,347)
Net deferred tax assets	8,275				20,866				8,275	20,866
Reconciliation of unrecognized tax benefits
Balance at the beginning of the period				$ 1,455				$ 1,479	1,455	1,479	$ 1,500
Gross additions for tax positions for prior years									1,412	886	280
Gross additions for tax positions for current year									273	360	57
Gross expirations									(174)	(1,270)	(358)
Balance at the end of the period	2,966				$ 1,455				2,966	$ 1,455	$ 1,479
Impact on effective tax rate on recognition of unrecognized tax benefits	3,000								3,000
Chief Executive Officer \| Performance Shares And Restricted Stock Units (RSUs)
Deferred tax assets:
Non-cash equity-based compensation	3,800								3,800
Canada
Reconciliation of unrecognized tax benefits
Operating loss carryforwards	6,200								6,200
U.K.
Reconciliation of unrecognized tax benefits
Operating loss carryforwards	$ 2,600								$ 2,600

Commitments and Contingencies - Narrative (Details) - USD ($)		12 Months Ended
	Oct. 20, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 27, 2017	Mar. 21, 2013
Operating Leased Assets [Line Items]
Rental expense inclusive of operating leases		$ 8,500,000	$ 7,200,000	$ 4,800,000
Letter of credit as a security deposit for the leased facilities						$ 2,600,000
Total minimum lease payments		86,184,000				$ 77,800,000
Other obligations		45,902,000
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
Indirect Guarantee of Indebtedness \| The Facility \| Revolving Credit Facility
Operating Leased Assets [Line Items]
Maximum obligation	$ 4,600,000				$ 3,300,000
The Facility term	P5Y
Interest rate	10.00%
Outstanding borrowings		3,300,000
Convertible Notes Payable \| Indirect Guarantee of Indebtedness \| Convertible Note Maturing October 2021 [Member]
Operating Leased Assets [Line Items]
Maximum obligation		$ 6,000,000			$ 1,600,000
Interest rate					10.00%

Commitments and Contingencies - Schedule of future minimum lease payments under non-cancelable operating leases (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 21, 2013
Leases, Operating [Abstract]
2018	$ 7,711
2019	7,736
2020	7,067
2021	6,956
2022	6,866
Thereafter	49,848
Total minimum lease payments	86,184	$ 77,800
Other Obligations
2018	21,921
2019	14,017
2020	9,964
2021	0
2022	0
Thereafter	0
Total other obligations	$ 45,902

Employee Benefit Plans (Details) - USD ($) $ in Millions		12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Annual discretionary employer matching contributions maximum		3.00%
Employer matching contributions		$ 1.8	$ 1.7	$ 1.2
Subsequent Event
Subsequent Event [Line Items]
Match percent of eligible contributions	50.00%

Equity-Based Compensation - Summary of non-cash equity-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 24,958	$ 28,080	$ 28,860
Stock Options
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	6,364	7,295	8,191
Restricted Stock Units
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	18,594	20,179	19,765
ESPP
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	0	606	904
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	795	1,938	1,896
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	4,452	5,444	4,520
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	6,162	7,681	7,565
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Total	$ 13,549	$ 13,017	$ 14,879

Equity-Based Compensation - Summary of stock option awards and weighted average exercise price per option (Details) - VAR Plan	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Plan Options
Options outstanding at the beginning of the period (in shares) \| shares	1,411,369
Options granted (in shares) \| shares	85,500
Options exercised (in shares) \| shares	(75,508)
Options cancelled or expired (in shares) \| shares	(238,231)
Options outstanding at the end of the period (in shares) \| shares	1,183,130
Options vested and expected to vest at the end of the period (in shares) \| shares	322,290
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per unit) \| $ / shares	$ 51.52
Options granted (in dollars per share) \| $ / shares	48.05
Options exercised (in dollars per share) \| $ / shares	22.27
Options cancelled or expired (in dollars per share) \| $ / shares	41.53
Options outstanding at the end of the period (in dollars per unit) \| $ / shares	55.14
Options vested and expected to vest at the end of the period (in dollars per shares) \| $ / shares	$ 35.86

Equity-Based Compensation - Intrinsic value of the Company's stock options (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options outstanding	$ 6,400	$ 12,400
Stock options exercisable	3,600	4,700
Stock options vested and expected to vest	$ 6,400	$ 12,000

Equity-Based Compensation - Weighted average assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
VAR Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 2 months 12 days	6 years 3 months 18 days	6 years 6 months
Volatility	50.00%	52.50%	52.10%
Risk-free interest rate	2.15%	1.48%	1.70%
Dividend yield	0.00%	0.00%	0.00%
Weighted average fair value per share granted (in dollars per share)	$ 24.19	$ 19.03	$ 15.90
2012 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		6 months	6 months
Volatility		59.10%	52.10%
Risk-free interest rate		0.46%
Dividend yield		0.00%	0.00%
2012 ESPP \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			0.07%
2012 ESPP \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			0.42%

Equity-Based Compensation - Summary of the Company's RSUs activity (Details) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Plan RSUs
Non-vested balance at the beginning of the period (in shares) \| shares	1,271,610
Units granted (in shares) \| shares	830,807
Units vested (in shares) \| shares	(427,583)
Units cancelled or forfeited (in shares) \| shares	(501,674)
Non-vested balance at the end of the period (in shares) \| shares	1,173,160
Non-vested and deferred balance (in dollars per share) \| shares	1,186,511
Weighted Average Fair Value
Non-vested balance at the beginning of the period (in dollars per share) \| $ / shares	$ 46.50
Units granted (in dollars per share) \| $ / shares	43.56
Units vested (in dollars per share) \| $ / shares	49.23
Units cancelled or forfeited (in dollars per share) \| $ / shares	45.62
Non-vested balance at the end of the period (in dollars per share) \| $ / shares	43.79
Non-vested and deferred balance (in shares) \| $ / shares	$ 44.07

Equity-Based Compensation - Narrative (Details) - USD ($)					12 Months Ended
	Jan. 01, 2017	Jan. 01, 2016	Apr. 24, 2014	Oct. 10, 2012	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge					$ 13,500,000
Stock Options \| 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
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge					$ 36,200,000
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares/notional units available for issuance (shares)				6,750,000
Annual increase in shares available for issuance (shares)				1,500,000
Annual increase in the shares available for issuance as a percentage of common stock outstanding as of the last day of immediately preceding fiscal year				3.00%
2012 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Automatic increase (in shares)	1,044,000	1,071,000
Vesting period					4 years
2012 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years
VAR Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of total stock options exercised					$ 1,600,000	$ 10,600,000	$ 12,700,000
Options granted (in shares)					85,500
Options granted (in dollars per share)					$ 48.05
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
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, 2017 USD ($) Vote $ / shares shares	Feb. 28, 2017 USD ($)	Dec. 31, 2016 $ / 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)	200,000,000		200,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01		$ 0.01
Preferred Stock
Preferred stock, authorized shares (in shares)	5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.01
Treasury Stock
Number of shares acquired	2,558,000		2,110,000
Common Stock
Treasury Stock
Authorized repurchase amount \| $		$ 100,000,000		$ 100,000,000
Number of shares acquired	2,560,000
Average per-share cost (in dollars per share) \| $ / shares	$ 39.09
Share value remaining for repurchase \| $	$ 100,000,000

Other (Expense)/Income, net (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Nonoperating Income (Expense) [Abstract]
Foreign currency gain/(loss)									$ 2,841	$ (167)	$ (2,003)
Change in contingent consideration fair value									0	(1,271)	(4,770)
Interest income									891	149	27
Other income/(expense), net	$ 1,637	$ 130	$ 1,510	$ 455	$ (1,167)	$ 102	$ (212)	$ (12)	$ 3,732	$ (1,289)	$ (6,746)

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, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Basic (in shares)	34,686	34,643	34,581	34,597	35,089	35,036	34,957	35,375	34,627	35,114	35,880
Stock options and employee stock purchase plan shares (in shares)									388	441	345
Unvested restricted stock awards (in shares)									276	306	94
Diluted (in shares)	35,149	35,177	35,250	35,595	35,881	35,824	35,642	36,099	35,291	35,861	36,319
Potentially dilutive shares included in the calculation (in shares)									1,384	1,954	1,624
Anti-dilutive shares excluded from the calculation (in shares)									1,325	999	1,064

Segment and Geographic Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 557,111	$ 494,317	$ 425,149
Operating Expenses	144,638	135,493	130,710	119,921	116,974	111,785	113,942	105,830	530,762	448,531	384,131
Income from operations	$ 7,191	$ 5,570	$ 3,285	$ 10,303	$ 13,199	$ 11,288	$ 10,477	$ 10,822	26,349	45,786	41,018
Content Segment
Segment Reporting Information [Line Items]
Revenue									541,088	483,278	417,310
Operating Expenses									417,507	364,631	314,204
Income from operations									123,581	118,647	103,106
Other and Corporate
Segment Reporting Information [Line Items]
Revenue									16,023	11,039	7,839
Operating Expenses									113,255	83,900	69,927
Income from operations									(97,232)	(72,861)	(62,088)
Corporate \| Other and Corporate
Segment Reporting Information [Line Items]
Operating Expenses									$ 96,500	$ 67,700	$ 59,200

Segment and Geographic Information - Narrative (Details) - Geographic Concentration Risk	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Sales Revenue, Services, Net \| United States
Concentration Risk [Line Items]
Revenue percent	35.00%	35.00%	35.00%
Sales Revenue, Services, Net \| United Kingdom
Concentration Risk [Line Items]
Revenue percent		10.00%
Long-Lived Tangible Assets \| United States
Concentration Risk [Line Items]
Revenue percent	92.00%	95.00%

Segment and Geographic Information - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 557,111	$ 494,317	$ 425,149
North America
Segment Reporting Information [Line Items]
Revenue									218,865	197,650	166,225
Europe
Segment Reporting Information [Line Items]
Revenue									181,693	161,906	144,103
Rest of the world
Segment Reporting Information [Line Items]
Revenue									$ 156,553	$ 134,761	$ 114,821

Segment and Geographic Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 85,698	$ 56,101
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	83,027	54,913
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	2,599	1,141
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 72	$ 47

Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions	Jan. 04, 2018	Feb. 15, 2018
Zcool \| Convertible Preferred Stock
Subsequent Event [Line Items]
Purchase of convertible preferred stock	$ 15.0
Equity ownership interest	25.00%
Webdam \| Disposal Group, Held-for-sale, Not Discontinued Operations
Subsequent Event [Line Items]
Asset purchase price		$ 49.1

Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 151,829	$ 141,063	$ 133,995	$ 130,224	$ 130,173	$ 123,073	$ 124,419	$ 116,652	$ 557,111	$ 494,317	$ 425,149
Operating expenses:
Cost of revenue	64,590	58,812	57,289	52,411	52,637	50,184	52,245	48,063	233,102	203,129	174,526
Sales & marketing	40,844	36,008	37,109	32,503	34,990	32,977	31,571	27,088	146,464	126,626	106,636
Product development	15,210	13,340	12,892	11,044	12,989	11,604	11,971	11,225	52,486	47,789	41,322
General and administrative	23,994	27,333	23,420	23,963	16,358	17,020	18,155	19,454	98,710	70,987	61,647
Total operating expenses	144,638	135,493	130,710	119,921	116,974	111,785	113,942	105,830	530,762	448,531	384,131
Income from operations	7,191	5,570	3,285	10,303	13,199	11,288	10,477	10,822	26,349	45,786	41,018
Other income/(expense), net	1,637	130	1,510	455	(1,167)	102	(212)	(12)	3,732	(1,289)	(6,746)
Income before income taxes	8,828	5,700	4,795	10,758	12,032	11,390	10,265	10,810	30,081	44,497	34,272
Provision for income taxes	6,772	698	1,729	4,155	2,177	1,999	3,016	4,677	13,354	11,869	14,720
Net income available to common stockholders	$ 2,056	$ 5,002	$ 3,066	$ 6,603	$ 9,855	$ 9,391	$ 7,249	$ 6,133	$ 16,727	$ 32,628	$ 19,550
Net income per common share available to common stockholders:
Basic (in dollars per share)	$ 0.06	$ 0.14	$ 0.09	$ 0.19	$ 0.28	$ 0.27	$ 0.21	$ 0.17	$ 0.48	$ 0.93	$ 0.54
Diluted (in dollars per share)	$ 0.06	$ 0.14	$ 0.09	$ 0.19	$ 0.27	$ 0.26	$ 0.20	$ 0.17	$ 0.47	$ 0.91	$ 0.54
Weighted average common shares outstanding:
Basic (in shares)	34,686	34,643	34,581	34,597	35,089	35,036	34,957	35,375	34,627	35,114	35,880
Diluted (in shares)	35,149	35,177	35,250	35,595	35,881	35,824	35,642	36,099	35,291	35,861	36,319
Equity based compensation									$ 24,958	$ 28,080	$ 28,860
Impact of remeasuring deferred tax balances									3,700
Transition tax expense									$ 800
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 500	$ 900	$ (600)