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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	0001549346
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		34,963,878
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 289,841	$ 253,428
Accounts receivable, net	44,729	49,932
Prepaid expenses and other current assets	27,322	37,109
Total current assets	361,892	340,469
Property and equipment, net	84,693	85,698
Intangible assets, net	30,259	34,197
Goodwill	87,995	98,654
Deferred tax assets, net	10,356	9,761
Other assets	18,060	8,997
Total assets	593,255	577,776
Current liabilities:
Accounts payable	4,607	7,160
Accrued expenses	46,341	58,734
Contributor royalties payable	23,306	20,088
Deferred revenue	139,879	157,803
Other liabilities	1,871	1,957
Total current liabilities	216,004	245,742
Deferred tax liability, net	0	1,486
Other non-current liabilities	18,338	15,963
Total liabilities	234,342	263,191
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 37,510 and 37,270 shares issued and 34,952 and 34,712 shares outstanding as of June 30, 2018 and December 31, 2017, respectively	375	373
Treasury stock, at cost; 2,558 shares as of June 30, 2018 and December 31, 2017	(100,027)	(100,027)
Additional paid-in capital	281,579	272,657
Accumulated comprehensive loss	(6,663)	(3,557)
Retained earnings	183,649	145,139
Total stockholders’ equity	358,913	314,585
Total liabilities and stockholders’ equity	$ 593,255	$ 577,776

Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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)	37,510,000	37,270,000
Common stock, shares outstanding (in shares)	34,952,000	34,712,000
Treasury stock, shares held in treasury (in shares)	2,558,000	2,558,000

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 156,584	$ 133,995	$ 309,603	$ 264,219
Operating expenses:
Cost of revenue	67,891	57,289	132,381	109,700
Sales and marketing	42,018	37,109	82,386	69,612
Product development	16,728	12,892	33,176	23,936
General and administrative	24,322	23,420	51,546	47,383
Total operating expenses	150,959	130,710	299,489	250,631
Income from operations	5,625	3,285	10,114	13,588
Gain on Sale of Webdam	0	0	38,613	0
Other (expense)/income, net	(7,019)	1,510	(6,217)	1,965
(Loss)/income before income taxes	(1,394)	4,795	42,510	15,553
(Benefit)/provision for income taxes	(1,140)	1,729	10,183	5,884
Net (loss)/income	$ (254)	$ 3,066	$ 32,327	$ 9,669
Earnings per share:
Basic (in dollars per share)	$ (0.01)	$ 0.09	$ 0.93	$ 0.28
Diluted (in dollars per share)	$ (0.01)	$ 0.09	$ 0.91	$ 0.27
Weighted average shares outstanding:
Basic (in shares)	34,913	34,581	34,849	34,589
Diluted (in shares)	34,913	35,250	35,343	35,421

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net (loss)/income	$ (254)	$ 3,066	$ 32,327	$ 9,669
Foreign currency translation (loss)/gain	(4,181)	5,920	(3,106)	8,135
Other comprehensive (loss)/income	(4,181)	5,920	(3,106)	8,135
Comprehensive (loss)/income	$ (4,435)	$ 8,986	$ 29,221	$ 17,804

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 32,327	$ 9,669
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,227	14,721
Deferred taxes	(4,321)	676
Non-cash equity-based compensation	12,035	13,243
Settlement of contingent consideration liability in excess of acquisition-date fair value	0	(6,255)
Gain on Sale of Webdam	(38,613)	0
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	5,881	0
Bad debt expense	472	646
Changes in operating assets and liabilities:
Accounts receivable	(171)	(924)
Prepaid expenses and other current and non-current assets	7,886	(8,604)
Accounts payable and other current and non-current liabilities	(6,019)	4,980
Contributor royalties payable	3,063	136
Deferred revenue	3,256	12,117
Net cash provided by operating activities	38,023	40,405
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(23,051)	(25,769)
Investment sales, net	0	1,734
Acquisition of business - working capital adjustment	(845)	0
Proceeds from sale of digital asset management business, net	42,392	0
Other investments/advances	(15,000)	(3,134)
Acquisition of digital content	(1,242)	(1,551)
Security deposit release	(14)	30
Net cash provided by (used in) investing activities	2,240	(28,690)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury shares	0	(24,977)
Proceeds from exercise of stock options	1,879	944
Cash paid related to settlement of employee taxes related to RSU vesting	(4,972)	(4,991)
Settlement of contingent consideration liability	0	(3,745)
Net cash used in financing activities	(3,093)	(32,769)
Effect of foreign exchange rate changes on cash	(757)	7,414
Net increase/(decrease) in cash, cash equivalents and restricted cash	36,413	(13,640)
Cash, cash equivalents and restricted cash, beginning of period	256,041	226,803
Cash, cash equivalents and restricted cash, end of period	292,454	213,163
Supplemental Disclosure of Cash Information:
Cash (received)/paid for income taxes	$ 124	$ 3,329

Summary of Operations and Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Operations and Significant Accounting Policies

Summary of Operations

Shutterstock, Inc., together with its subsidiaries (collectively, 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 the digital imagery. The Company licenses creative content to its customers. Contributors upload their creative content to the Company’s websites in exchange for royalty payments based on customer download activity. The Company also offered digital asset management services through its cloud-based digital asset management platform (“Webdam”). As discussed in Note 4, on February 26, 2018, the Company completed a sale transaction, pursuant to which the buyer in the transaction acquired certain assets and assumed certain contracts and liabilities which constituted the Company’s digital asset management business (the “Sale of Webdam”).

Basis of Presentation

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements.

The interim consolidated balance sheet as of June 30, 2018, consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017, and consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 are unaudited. The consolidated balance sheet as of December 31, 2017, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position as of June 30, 2018, its consolidated results of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017, and cash flows for the six months ended June 30, 2018 and 2017. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2018 or for any other future annual or interim period.

These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 22, 2018. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

During the second quarter of 2018, the Company recorded certain immaterial adjustments related to the correction of errors to (i) increase revenue by approximately $0.4 million and (ii) increase general and administrative expense by approximately $0.8 million, related to prior periods. The Company has concluded that the impact of the adjustments is not material to the results of operations or financial position for the current period or any prior quarterly or annual period financial statements; accordingly, the Company recorded the related adjustments in the three months ended June 30, 2018.

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

Use of Estimates

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

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. Prior to the Sale of Webdam, the Company also earned revenue from licensing hosted software services through Webdam’s cloud-based tools for businesses, which were purchased as part of a subscription.

Prior to the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) on January 1, 2018, and reflected in the reported revenue amounts for the three and six months ended June 30, 2017, the Company recognized revenue when all of the following basic criteria were met: there was persuasive evidence of an arrangement, performance or delivery of services had occurred, the sales price was fixed or determinable, and collectability was reasonably assured. The Company considered persuasive evidence of an arrangement to be an electronic order form, or a signed contract, which contained the fixed pricing terms. Performance or delivery for digital content licenses was considered to have occurred upon the download of the licensed content. Subscription revenue was recognized upon each download using an effective per-license rate and revenue associated with any unused licenses was recognized at the subscription expiration.

Effective January 1, 2018, after the adoption of ASU 2014-09, the Company recognizes revenue upon the satisfaction of performance obligations, which occurs when (i) digital content is downloaded by a customer or (ii) hosted software services are provisioned and available to a customer. For digital content licenses, the Company recognizes revenue on both its subscription- based and transaction-based sales when content is downloaded, at which time the license is provided. In addition, management estimates expected unused licenses for its subscription-based products and recognizes the revenue associated with the unused licenses throughout the subscription period. The estimate of unused licenses is based on historical download activity and future changes in the estimate could impact the timing of revenue recognition of the Company’s subscription products. Revenue associated with hosted software services is recognized ratably over the term of the license. ASU 2014-09 has resulted in a change in the timing of recognizing revenue on the Company’s digital content license subscription products. ASU 2014-09 did not impact revenue recognition on digital content licenses sold on a transactional basis or license revenue associated with hosted software services.

Prior to the adoption of ASU 2014-09, the Company deferred certain acquisition costs that were then amortized over a period less than one year. Effective January 1, 2018 the Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less.

The majority of the Company’s 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. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payments under standard credit terms.

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2018 and December 31, 2017 (in thousands):



	As of June 30, 2018		As of December 31, 2017
Cash and cash equivalents	$	289,841	$	253,428
Restricted Cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	292,454	$	256,041

The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts, which are stated at cost, which approximates fair value.

The Company’s restricted cash relates to security deposits related to the lease for its headquarters in New York City, which expires in 2029. The carrying value of restricted cash approximates fair value. Restricted cash is included as a component of other current assets on the consolidated balance sheets.

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. During the six months ended June 30, 2018, bad debt expense, which increased the allowance for doubtful accounts, was $0.5 million, and write-offs and other adjustments, which decreased the allowance for doubtful accounts, were $0.2 million. As of June 30, 2018 and December 31, 2017, the Company’s allowance for doubtful accounts was approximately $4.3 million and $4.1 million, respectively, which was included as a reduction of accounts receivable.

Deferred Rent

The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized and the actual payments made in accordance with the lease agreement is recognized as a deferred rent liability on the Company’s balance sheet. As of June 30, 2018 and December 31, 2017, the Company had deferred rent of $11.4 million and $11.1 million, respectively, of which $11.2 million and $11.0 million, respectively, was included in other non-current liabilities, and $0.2 million and $0.1 million, respectively, was included in accrued expenses and other current liabilities.

Chargeback and Sales Refund Allowance

The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of June 30, 2018 and December 31, 2017, the Company’s combined allowance for chargebacks and sales refunds was $0.3 million and $0.4 million, respectively, which was included in other liabilities.

Recently Adopted Accounting Standard Updates

In March 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). ASU 2018-05 codifies existing SEC guidance contained in SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which expresses the view of the staff regarding application of existing guidance for the accounting for income taxes as it relates to the enactment of the Tax Cuts and Jobs Act (the “TCJA”), which was signed into law in the fourth quarter of 2017. In accordance with ASU 2018-05, the Company has recorded provisional estimates for the accounting impacts of the TCJA, including the transition tax, deferred tax remeasurements, and other items, due to the uncertainty regarding how these provisions are to be implemented and additional anticipated forthcoming guidance. As management completes the analysis of the impacts of the TCJA, the Company may refine its current estimate and make adjustments, which will be recognized through income in the period such adjustments are identified, as required by ASU 2018-05.

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. Effective January 1, 2018, the Company adopted ASU 2017-01 on a prospective basis. Adoption had no effect on the Company’s consolidated financial statements.

In November 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), 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. The Company adopted ASU 2016-18 retrospectively on January 1, 2018. As a result of this adoption, the Company has revised the presentation of its statement of cash flows for the six months ended June 30, 2017 to reflect restricted cash of $2.6 million in both the beginning and ending balances of cash, cash equivalents and restricted cash. There were no changes to previously reported amounts of cash used or provided by operating activities, investing activities or financing activities during the period.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires entities to measure all investments in equity securities at fair value and recognize any changes in fair value within the statement of operations. Under the standard, equity investments that do not have readily determinable fair values are eligible for a measurement alternative that allows for these investments to be recorded at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company adopted ASU 2016-01 on January 1, 2018. Adoption had no effect on the Company’s consolidated financial statements. ASU 2016-01 may increase the volatility in the statement of operations upon the occurrence of observable price changes or impairments in the equity securities.

In May 2014, the FASB issued ASU 2014-09. ASU 2014-09, together with 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 is permitted to expense these costs as incurred.

The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective approach, and prior period amounts were not restated. This standard resulted in a change in the timing of recognizing revenue on the Company’s digital content license subscription products. The Company has elected to utilize the practical expedient with regard to recognition of expense related to deferred contract acquisition costs, which resulted in a change in the timing of the recognition of such expenses.

The effect of adoption of this new guidance on the consolidated balance sheet as of January 1, 2018 was to reduce prepaid expenses and other current assets and to reduce deferred revenues, with an offsetting increase in 2018 opening retained earnings, as follows (in thousands):



	As Reported December 31, 2017	Adjustment		Revised January 1, 2018
Prepaid expenses and other current assets⁽¹⁾	37,109	(3,733	)	33,376
Deferred revenue	157,803	(9,911	)	147,892
Retained earnings	145,139	6,178		151,317


(1)	Prepaid expenses and other current assets adjustment is attributable to the reduction in deferred commissions and income tax receivables.

The effect of adoption of this new guidance on the Company’s reported balance sheet and statements of operations is as follows (in thousands):



	As Reported Under ASU 2014-09		Impact of Adoption		Under Legacy Guidance
For the three months ended June 30, 2018:
Revenue	156,584		(404	)	156,180
Cost of revenue	67,891		(14	)	67,877
Benefit for income taxes	(1,140	)	(62	)	(1,202	)
Net loss	(254	)	(328	)	(582	)
For the six months ended June 30, 2018:
Revenue	309,603		(1,400	)	308,203
Cost of revenue	132,381		(102	)	132,279
Provision for income taxes	10,183		(207	)	9,976
Net income	32,327		(1,091	)	31,236
As of June 30, 2018:
Prepaid expenses and other current assets	27,322		4,042		31,364
Deferred revenue	139,879		11,311		151,190
Retained Earnings	183,649		(7,269	)	176,380

Recently Issued Accounting Standard Updates

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. The ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance is required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

In 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. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and can be applied using a modified retrospective approach for all leases entered into before the effective date. Early adoption is permitted. The Company’s significant long-term leases relate primarily to its office facilities, which are described in Note 7. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

Fair Value Measurements and Other Long-term Investments	6 Months Ended
Fair Value Measurements and Other Long-term Investments	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements and Other Long-term Investments	Fair Value Measurements and Other Long-term Investments Fair Value Measurements Money Market Accounts Cash equivalents include money market accounts which are classified as a level 1 measurement based on quoted prices in active markets for identical assets that the Company can access at the measurement date. During the second quarter of 2018, the Company liquidated its position in money market accounts, and converted the balance to cash. As a result, there are no money market accounts included in cash and cash equivalents as of June 30, 2018. The total amount of money market accounts included in cash and cash equivalents was $55.8 million as of December 31, 2017. Other Fair Value Measurements Cash, accounts receivable, restricted cash, accounts payable, accrued expenses and deferred revenue carrying amounts approximate fair value because of the short-term nature of these instruments. The Company’s non-financial assets, which include property and equipment, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required and the Company is required to evaluate the non-financial asset for impairment, a resulting asset impairment would require that non-financial assets be recorded at fair value. Other Long-term Investments Long-term Lending Facility and Note Receivable On October 20, 2016, the Company entered into a multi-part transaction with SilverHub Media Limited (“SHM”), an unrelated third-party contributor. 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 SHM. The Facility has a term of five years and requires SHM 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 SHM’s content in certain markets subject to certain limitations; and (c) an option to acquire SHM at any time after the third anniversary of the Facility or to match any third-party acquisition offer with respect to SHM 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 June 30, 2018, SHM 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 SHM, 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. In June 2018, SHM breached certain provisions of the distribution agreement, which constituted an event of default under the Facility. As a result of the occurrence of one or more events of default, the Company provided notice to SHM to demand immediate payment of all outstanding borrowings under the Facility and the convertible note, including accrued interest. SHM was unable to pay the outstanding borrowings and accrued interest and therefore, an administrator was appointed and SHM entered into United Kingdom administration (bankruptcy) proceedings. The Company has determined that its investments in SHM, including the Facility, the convertible note, accrued interest and a minor equity investment, are other-than-temporarily impaired and has recorded a $5.9 million impairment charge during the three months ended June 30, 2018 in order to reduce the fair value of the Company’s investment in SHM to zero. This charge was recorded in “Other (expense)/income, net” in the consolidated statements of operations. The investment was previously reported within “Other assets” on the consolidated balance sheet. Investment in ZCool Technologies Limited (“ZCool”) On January 4, 2018, the Company invested $15.0 million in convertible preferred shares issued by ZCool (the “Preferred Shares”), which is equivalent to a 25% fully diluted equity ownership interest. 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. ZCool is a variable interest entity that is not consolidated because the Company is not the primary beneficiary. The Preferred Shares are not deemed to be in-substance common stock and will be accounted for using the measurement alternative for equity investments with no readily determinable fair value. The Preferred Shares will be reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments issued by ZCool. As of June 30, 2018, the Company’s total investment in ZCool is approximately $15.0 million, which is reported in other non-current assets.

- 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

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

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



	As of June 30, 2018			As of December 31, 2017
Computer equipment and software	$	136,316		$	118,493
Furniture and fixtures	10,014			9,970
Leasehold improvements	18,488			18,487
Property and equipment	164,818			146,950
Less accumulated depreciation	(80,125		)	(61,252		)
Property and equipment, net	$	84,693		$	85,698

Depreciation expense related to property and equipment was $9.9 million and $6.3 million for the three months ended June 30, 2018 and 2017, respectively, and $19.4 million and $11.9 million for the six months ended June 30, 2018 and 2017, respectively. Depreciation expense is included in cost of revenue and general and administrative expense based on the nature of the asset being depreciated.

Capitalized Internal-Use Software

The Company capitalized costs related to the development of internal-use software of $6.2 million and $7.9 million for the three months ended June 30, 2018 and 2017, respectively, and $15.8 million and $14.6 million for the six months ended June 30, 2018 and 2017, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software.

The portion of total depreciation expense related to capitalized internal-use software was $6.0 million and $2.9 million for the three months ended June 30, 2018 and 2017, respectively, and $11.4 million and $5.0 million for the six months ended June 30, 2018 and 2017, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software. Depreciation expense related to capitalized internal-use software is included in cost of revenue and general and administrative expense.

As of June 30, 2018 and December 31, 2017, the Company had capitalized internal-use software of $49.8 million and $45.4 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Sale of Digital Asset Management Business	6 Months Ended
Sale of Digital Asset Management Business	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Sale of Digital Asset Management Business	Sale of Digital Asset Management Business On February 26, 2018, the Company completed the Sale of Webdam for an aggregate purchase price of $49.1 million, subject to working capital adjustments. Total cash received, after an initial working capital adjustment, net of transaction costs paid, was $42.3 million with an additional $5.0 million receivable placed in escrow. $2.5 million of the funds placed in escrow were released to the Company in the second quarter of 2018. The remaining $2.5 million of funds in escrow are expected to be released to the Company, net of final working capital adjustments, during the first quarter of 2019. The funds in escrow are included as a component of other current assets on the consolidated balance sheet as of June 30, 2018. In addition, approximately $2.5 million of transaction costs related to the sale were paid in the second quarter of 2018, and approximately $0.5 million is expected to be paid in the third quarter of 2018 and is included as a component of accrued expenses on the consolidated balance sheet as of June 30, 2018. The Company recognized a pre-tax gain on sale of approximately $38.6 million.

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

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” as of December 31, 2017. During the first quarter of 2018, the Company disposed of its Webdam business.

The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments through June 30, 2018 (in thousands):



	Consolidated			Content Business			Other Category
Balance as of December 31, 2017	$	98,654		$	89,891		$	8,763
Foreign currency translation adjustment	(1,896		)	(1,896		)	—
Sale of digital asset management business	(8,763		)	—			(8,763		)
Balance as of June 30, 2018	$	87,995		$	87,995		$	—

No triggering events were identified during the six months ended June 30, 2018.

Intangible Assets

Intangible assets consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands):



	As of June 30, 2018						As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets:
Customer relationships	$	17,725	$	(6,248	)	9	$	21,008	$	(6,996	)
Trade name	6,534		(3,364		)	7	7,159		(3,299		)
Developed technology	4,851		(3,393		)	4	5,528		(3,450		)
Contributor content	17,678		(3,788		)	11	17,041		(3,066		)
Patents	259		(76		)	18	259		(68		)
Domain name	160		(79		)	13	160		(79		)
Total	$	47,207	$	(16,948	)		$	51,155	$	(16,958	)

During the six months ended June 30, 2018, the Company completed the Sale of Webdam, which resulted in a reduction of the gross carrying amount and accumulated amortization of intangible assets.

Amortization expense was $1.3 million and $1.4 million for the three months ended June 30, 2018 and 2017, respectively, and $2.8 million and $2.8 million for the six months ended June 30, 2018 and 2017, respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense for the next five years is: $2.9 million for the remaining six months of 2018, $5.6 million in 2019, $5.0 million in 2020, $4.1 million in 2021, $3.1 million in 2022, $2.8 million in 2023 and $6.9 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

Accrued Expenses

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	As of June 30, 2018		As of December 31, 2017
Compensation	$	11,270	$	19,897
Non-income taxes	8,155		6,895
Royalty tax withholdings	7,444		7,566
Other expenses	19,472		24,376
Total accrued expenses	$	46,341	$	58,734

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases was $2.4 million and $2.0 million for the three months ended June 30, 2018 and 2017, respectively, and $4.8 million and $4.2 million for the six months ended June 30, 2018 and 2017, 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. In addition to contractual rent amounts, the Company’s lease payments are also subject to adjustments in real estate taxes and operating expenses. In 2016, the Company’s lease for its office facility in New York City was amended to, among other things, provide for the lease of approximately 25,000 square feet of additional office space and extend the term of the lease. In connection with the underlying lease agreement, the Company entered into a letter of credit as a security deposit for the leased facilities, which was increased to $2.6 million in connection with the 2016 amendment. The letter of credit was collateralized by $2.6 million of cash as of June 30, 2018, which is recorded as restricted cash and is included in other assets in the consolidated balance sheet. As amended, the lease is scheduled to expire in 2029 and aggregate future minimum payments under the amended lease are approximately $75.2 million. Other Obligations As of June 30, 2018, the Company had other obligations in the amount of approximately $80.2 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of June 30, 2018, the Company’s other obligations for the remainder of 2018 and for the years ending December 31, 2019, 2020, 2021 and 2022 were approximately $17.7 million, $22.7 million, $27.4 million, $9.0 million and $3.3 million, respectively. Legal Matters From time to time, the Company may become party to litigation in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company reviews reserves, if any, at least quarterly and may change the amount of any such reserve in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and threats of litigation, investigations and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company currently has no material active litigation matters and, accordingly, no material reserves related to litigation. Indemnification and Employment Agreements In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of the Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of any modifications made by the customer, or the context in which 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 June 30, 2018, the Company had recorded no material liabilities related to indemnification obligations in accordance with the authoritative guidance for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary. Pursuant to the Company’s charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its executive officers, certain employees and directors, as well as certain former officers and directors. The Company has also entered into employment agreements with its executive officers and certain employees. These agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause and in the event of a change in control.

Stockholders’ Equity and Equity-Based Compensation

6 Months Ended

Jun. 30, 2018

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

Stockholders’ Equity and Equity-Based Compensation

Stockholders’ Equity

Common Stock

During the six months ended June 30, 2018, the Company issued approximately 233,000 shares of common stock, primarily related to the exercise of stock options and the vesting of restricted stock units (“RSUs”).

Treasury Stock

In October 2015, the Company’s Board of Directors approved a share repurchase program, pursuant to which the Company is authorized to purchase up to $100 million of its common stock. In February 2017, the Company’s Board of Directors approved an increase to the share repurchase program, pursuant to which the Company is authorized to repurchase up to an additional $100 million of its outstanding common stock. The Company expects to fund future repurchases through a combination of cash on hand, cash generated by operations and future financing transactions, if needed. Accordingly, the Company’s share repurchase program is subject to the Company having available cash to fund repurchases. Under the program, the Company is authorized to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors.

During the six months ended June 30, 2018, the Company did not repurchase any shares of its common stock under the share repurchase program. As of June 30, 2018, the Company had $100.0 million remaining for purchases under the share repurchase program.

Equity-Based Compensation

The Company recognizes stock-based compensation expense for all share-based payment awards, including employee stock options and RSUs granted under the 2012 Omnibus Equity Incentive Plan, based on the fair value of each award on the grant date.

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cost of revenue	$	140	$	225	$	314	$	433
Sales and marketing	715		1,226		1,142		2,444
Product development	1,738		2,004		3,215		3,260
General and administrative	3,836		3,832		7,364		7,106
Total	$	6,429	$	7,287	$	12,035	$	13,243

The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options	$	1,500	$	1,858	$	2,966	$	3,424
RSUs	4,929		5,429		9,069		9,819
Total	$	6,429	$	7,287	$	12,035	$	13,243

Stock Option Awards

During the six months ended June 30, 2018, the Company granted approximately 21,000 options to purchase shares of its common stock with a weighted average exercise price of $47.80. As of June 30, 2018, there were approximately 321,000 options vested and exercisable with a weighted average exercise price of $35.61. As of June 30, 2018, the total unrecognized compensation charge related to non-vested options was approximately $10.9 million, which is expected to be recognized through 2021.

Restricted Stock Units

During the six months ended June 30, 2018, the Company granted approximately 296,000 RSUs, net of forfeitures. As of June 30, 2018 there are approximately 1,209,000 non-vested RSUs outstanding. As of June 30, 2018, the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $41.7 million, which is expected to be recognized through 2022.

During the six months ended June 30, 2018, shares with an aggregate value of $5.0 million were withheld upon vesting of RSUs and in connection with related remittance to taxing authorities.

Revenue

6 Months Ended

Jun. 30, 2018

Deferred Revenue Disclosure [Abstract]

Revenue

The Company distributes its digital content offerings through two primary channels:

E-commerce: The majority of customers purchase content licenses directly through the Company’s e-commerce platforms. E-commerce customers have the flexibility to purchase a subscription plan that is paid on a monthly or annual basis or to purchase content on a transactional basis. These customers generally license content under the Company’s standard license, with additional licensing options available to meet customers’ individual needs. E-commerce customers typically pay the full amount of the purchase price in advance or at the time of license, generally with a credit card.

Enterprise: Enterprise customers are mainly composed of creative professionals and large organizations with unique content, licensing and workflow needs. Customers of this size benefit from dedicated sales, service and research teams which provide a number of enhancements to their creative workflows including non-standard licensing rights, multi-seat access, invoicing and the ability to pay on credit terms, increased indemnification protection, multi-brand licensing packages and content licensed for use-cases outside of those available on the e-commerce platform.

In addition to the Company’s digital content offerings, the Company has historically generated revenue through other channels:

Digital asset management: The Company provided tools to help organizations manage, search, distribute and collaborate on creative and other brand-buildings activities through Webdam. Effective February 26, 2018, the Company sold Webdam. See Note 4 for further information on the Sale of Webdam.

The Company’s revenue by distribution channel for the three and six months ended June 30, 2018 and 2017 are as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017⁽¹⁾		2018		2017⁽¹⁾
E-Commerce	$	91,718	$	82,169	$	181,453	$	162,774
Enterprise	64,866		48,089		125,439		94,249
Digital asset management⁽²⁾	—		3,737		2,711		7,196
Total Revenues	$	156,584	$	133,995	$	309,603	$	264,219


(1)	As previously discussed in Note 1, the Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. Historical revenue amounts reflect those previously reported and have not been restated.


(2)	As previously discussed in Note 1, the Company completed the Sale of Webdam on February 26, 2018. 2018 amounts include revenue earned during the period from January 1, 2018 through February 26, 2018.

The Company’s deferred revenue balance decreased from $157.8 million at December 31, 2017 to $139.9 million at June 30, 2018. This decrease was primarily the result of (i) the adoption of ASC 2014-09 which reduced deferred revenue by $9.9 million on January 1, 2018, and (ii) $10.2 million resulting from the Sale of Webdam, partially offset by an increase in deferred revenue due to the ongoing operations of the Company. The June 30, 2018 deferred revenue balance will be earned as digital content is downloaded or upon the expiration of subscription-based products, and nearly all is expected to be earned within the next twelve months. $90.4 million of total revenue recognized for the six months ended June 30, 2018 was reflected in deferred revenue as of January 1, 2018.

Employee Benefit Plans	6 Months Ended
Employee Benefit Plans	Jun. 30, 2018
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company has a 401(k) defined contribution plan and, prior to January 1, 2018, provided for annual discretionary employer matching contributions not to exceed 3% of employees’ annual base salary per year. Effective January 1, 2018 the Company provides discretionary employer matching of 50% of employees’ eligible contributions. Matching contributions are fully vested and non-forfeitable at all times. The Company recorded expenses related to employer matching contributions of $0.9 million and $0.5 million for the three months ended June 30, 2018 and 2017, respectively, and $1.8 million and $0.9 million for the six months ended June 30, 2018 and 2017, respectively.

Other Expense/Income, Net

6 Months Ended

Jun. 30, 2018

Other Nonoperating Income (Expense) [Abstract]

Other Expense/Income, Net

The following table presents a summary of the Company’s other income and expense activity included in the accompanying consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Foreign currency (loss)/gain	$	(1,782	)	$	1,295	$	(1,463	)	$	1,660
Impairment of long-term investments	(5,881		)	—		(5,881		)	—
Interest income	644			215		1,127			305
Total (expense)/income	$	(7,019	)	$	1,510	$	(6,217	)	$	1,965

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes 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 provision for income taxes for the three months ended June 30, 2018 includes provisional amounts for certain specific tax effects of the TCJA. These provisional amounts represent the Company’s reasonable estimates. The Company will evaluate these estimates throughout 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. The Company’s effective tax rates were 81.8% and 36.1% for the three months ended June 30, 2018 and 2017, respectively, and 24.0% and 37.8% for the six months ended June 30, 2018 and 2017, respectively. In the three months ended June 30, 2018, the Company incurred a discrete tax benefit relating primarily to the impairment of its long-term investment in SHM. In the six months ended June 30, 2018, the Company incurred a net discrete tax expense relating primarily to the gain on sale of the digital asset management business. The net effect of these discrete items increased the effective tax rate for the three and six months ended June 30, 2018 by 66.5% and 8.7%, respectively. In the three and six months ended June 30, 2017, the Company incurred a discrete tax benefit related primarily to withholding tax incurred on income earned in foreign jurisdictions, the net effect of which increased the effective tax rate by 0.5% and 3.6%, respectively. The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The estimated annual effective tax rate differs from the statutory tax rate due primarily to the international provisions enacted as part of the TCJA. During the three and six months ended June 30, 2018 and 2017, unrecognized tax benefits recorded by the Company for uncertain tax positions taken in prior years were not material. To the extent the remaining unrecognized tax benefits are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not material for the three and six months ended June 30, 2018 and 2017. During the six months ended June 30, 2018, the Company received net cash tax refunds of $0.1 million and during the six months ended June 30, 2017, the Company paid net cash taxes of $3.3 million.

Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share is computed by dividing net income or loss 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.

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

A reconciliation of assumed exercised shares used in calculating basic and diluted earnings per share follows (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
Weighted average shares outstanding:
Basic	34,913	34,581	34,849	34,589
Stock options	—	473	113	484
Unvested RSUs	—	196	381	348
Diluted	34,913	35,250	35,343	35,421

Dilutive securities included in the calculation	—	1,646	1,366	1,786
Anti-dilutive securities excluded from the calculation	2,370	1,091	1,000	1,086


(1)	The dilutive effect of stock options of 110,000 shares for the three months ended June 30, 2018 has been excluded from the calculation of diluted earnings per share, as those shares would have been anti-dilutive due to the net loss incurred during that period.


(2)	The dilutive effect of unvested RSUs of 345,000 shares for the three months ended June 30, 2018 has been excluded from the calculation of diluted earnings per share, as those shares would have been anti-dilutive due to the net loss incurred during that period.

Geographic Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Geographic Information

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017⁽¹⁾		2018		2017⁽¹⁾
North America	$	56,056	$	52,771	$	113,014	$	105,569
Europe	53,291		44,064		105,225		86,637
Rest of the world	47,237		37,160		91,364		72,013
Total revenue	$	156,584	$	133,995	$	309,603	$	264,219


(1)	As previously discussed in Note 1, the Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. Historical revenue amounts reflect those previously reported and have not been restated.

The United States, included in North America in the above table, accounted for 33% and 35% of consolidated revenue for the three months ended June 30, 2018 and 2017, respectively and 33% and 36% of consolidated revenue for the six months ended June 30, 2018 and 2017, respectively. No other country accounts for more than 10% of the Company’s revenue in any period presented.

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



	June 30,		December 31,
	2018		2017
North America	$	81,780	$	83,027
Europe	2,848		2,599
Rest of the world	65		72
Total long-lived tangible assets	$	84,693	$	85,698

The United States, included in North America in the above table, accounted for 90% and 92% of total long-lived tangible assets as of June 30, 2018 and December 31, 2017, respectively.

Subsequent Events (Notes)	6 Months Ended
Subsequent Events (Notes)	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 1, 2018, the Board of Directors declared a special cash dividend of $3.00 per share. The dividend will be payable on August 29, 2018 to stockholders of record at the close of business on August 15, 2018. The aggregate payment to be made in connection with this dividend will be approximately $105 million.

Summary of Operations and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Unaudited Interim Financial Statements

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

Use of Estimates

Revenue Recognition

Chargeback and Sales Refund Allowance

Revenue Recognition

Cash, Cash Equivalents and Restricted Cash

The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2018 and December 31, 2017 (in thousands):



	As of June 30, 2018		As of December 31, 2017
Cash and cash equivalents	$	289,841	$	253,428
Restricted Cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	292,454	$	256,041

The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts, which are stated at cost, which approximates fair value.

Allowance for Doubtful Accounts

Deferred Rent

Recently Adopted and Issued Accounting Standard Updates

Recently Adopted Accounting Standard Updates



	As Reported December 31, 2017	Adjustment		Revised January 1, 2018
Prepaid expenses and other current assets⁽¹⁾	37,109	(3,733	)	33,376
Deferred revenue	157,803	(9,911	)	147,892
Retained earnings	145,139	6,178		151,317


(1)	Prepaid expenses and other current assets adjustment is attributable to the reduction in deferred commissions and income tax receivables.

The effect of adoption of this new guidance on the Company’s reported balance sheet and statements of operations is as follows (in thousands):



	As Reported Under ASU 2014-09		Impact of Adoption		Under Legacy Guidance
For the three months ended June 30, 2018:
Revenue	156,584		(404	)	156,180
Cost of revenue	67,891		(14	)	67,877
Benefit for income taxes	(1,140	)	(62	)	(1,202	)
Net loss	(254	)	(328	)	(582	)
For the six months ended June 30, 2018:
Revenue	309,603		(1,400	)	308,203
Cost of revenue	132,381		(102	)	132,279
Provision for income taxes	10,183		(207	)	9,976
Net income	32,327		(1,091	)	31,236
As of June 30, 2018:
Prepaid expenses and other current assets	27,322		4,042		31,364
Deferred revenue	139,879		11,311		151,190
Retained Earnings	183,649		(7,269	)	176,380

Recently Issued Accounting Standard Updates

Summary of Operations and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents

The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2018 and December 31, 2017 (in thousands):



	As of June 30, 2018		As of December 31, 2017
Cash and cash equivalents	$	289,841	$	253,428
Restricted Cash	2,613		2,613
Total cash, cash equivalents and restricted cash	$	292,454	$	256,041

Schedule of New Accounting Pronouncements and Changes in Accounting Principles



	As Reported December 31, 2017	Adjustment		Revised January 1, 2018
Prepaid expenses and other current assets⁽¹⁾	37,109	(3,733	)	33,376
Deferred revenue	157,803	(9,911	)	147,892
Retained earnings	145,139	6,178		151,317


(1)	Prepaid expenses and other current assets adjustment is attributable to the reduction in deferred commissions and income tax receivables.

The effect of adoption of this new guidance on the Company’s reported balance sheet and statements of operations is as follows (in thousands):



	As Reported Under ASU 2014-09		Impact of Adoption		Under Legacy Guidance
For the three months ended June 30, 2018:
Revenue	156,584		(404	)	156,180
Cost of revenue	67,891		(14	)	67,877
Benefit for income taxes	(1,140	)	(62	)	(1,202	)
Net loss	(254	)	(328	)	(582	)
For the six months ended June 30, 2018:
Revenue	309,603		(1,400	)	308,203
Cost of revenue	132,381		(102	)	132,279
Provision for income taxes	10,183		(207	)	9,976
Net income	32,327		(1,091	)	31,236
As of June 30, 2018:
Prepaid expenses and other current assets	27,322		4,042		31,364
Deferred revenue	139,879		11,311		151,190
Retained Earnings	183,649		(7,269	)	176,380

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Summary of property and equipment

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



	As of June 30, 2018			As of December 31, 2017
Computer equipment and software	$	136,316		$	118,493
Furniture and fixtures	10,014			9,970
Leasehold improvements	18,488			18,487
Property and equipment	164,818			146,950
Less accumulated depreciation	(80,125		)	(61,252		)
Property and equipment, net	$	84,693		$	85,698

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in goodwill

The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments through June 30, 2018 (in thousands):



	Consolidated			Content Business			Other Category
Balance as of December 31, 2017	$	98,654		$	89,891		$	8,763
Foreign currency translation adjustment	(1,896		)	(1,896		)	—
Sale of digital asset management business	(8,763		)	—			(8,763		)
Balance as of June 30, 2018	$	87,995		$	87,995		$	—

Schedule of intangible assets

Intangible assets consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands):



	As of June 30, 2018						As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets:
Customer relationships	$	17,725	$	(6,248	)	9	$	21,008	$	(6,996	)
Trade name	6,534		(3,364		)	7	7,159		(3,299		)
Developed technology	4,851		(3,393		)	4	5,528		(3,450		)
Contributor content	17,678		(3,788		)	11	17,041		(3,066		)
Patents	259		(76		)	18	259		(68		)
Domain name	160		(79		)	13	160		(79		)
Total	$	47,207	$	(16,948	)		$	51,155	$	(16,958	)

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consisted of the following (in thousands):



	As of June 30, 2018		As of December 31, 2017
Compensation	$	11,270	$	19,897
Non-income taxes	8,155		6,895
Royalty tax withholdings	7,444		7,566
Other expenses	19,472		24,376
Total accrued expenses	$	46,341	$	58,734

Stockholders’ Equity and Equity-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

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

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cost of revenue	$	140	$	225	$	314	$	433
Sales and marketing	715		1,226		1,142		2,444
Product development	1,738		2,004		3,215		3,260
General and administrative	3,836		3,832		7,364		7,106
Total	$	6,429	$	7,287	$	12,035	$	13,243



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options	$	1,500	$	1,858	$	2,966	$	3,424
RSUs	4,929		5,429		9,069		9,819
Total	$	6,429	$	7,287	$	12,035	$	13,243

Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Deferred Revenue Disclosure [Abstract]

Disaggregation of Revenue

The Company’s revenue by distribution channel for the three and six months ended June 30, 2018 and 2017 are as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017⁽¹⁾		2018		2017⁽¹⁾
E-Commerce	$	91,718	$	82,169	$	181,453	$	162,774
Enterprise	64,866		48,089		125,439		94,249
Digital asset management⁽²⁾	—		3,737		2,711		7,196
Total Revenues	$	156,584	$	133,995	$	309,603	$	264,219


(1)	As previously discussed in Note 1, the Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. Historical revenue amounts reflect those previously reported and have not been restated.


(2)	As previously discussed in Note 1, the Company completed the Sale of Webdam on February 26, 2018. 2018 amounts include revenue earned during the period from January 1, 2018 through February 26, 2018.

Other Expense/Income, Net (Tables)

6 Months Ended

Jun. 30, 2018

Other Nonoperating Income (Expense) [Abstract]

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



	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Foreign currency (loss)/gain	$	(1,782	)	$	1,295	$	(1,463	)	$	1,660
Impairment of long-term investments	(5,881		)	—		(5,881		)	—
Interest income	644			215		1,127			305
Total (expense)/income	$	(7,019	)	$	1,510	$	(6,217	)	$	1,965

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares

A reconciliation of assumed exercised shares used in calculating basic and diluted earnings per share follows (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
Weighted average shares outstanding:
Basic	34,913	34,581	34,849	34,589
Stock options	—	473	113	484
Unvested RSUs	—	196	381	348
Diluted	34,913	35,250	35,343	35,421

Dilutive securities included in the calculation	—	1,646	1,366	1,786
Anti-dilutive securities excluded from the calculation	2,370	1,091	1,000	1,086


(1)	The dilutive effect of stock options of 110,000 shares for the three months ended June 30, 2018 has been excluded from the calculation of diluted earnings per share, as those shares would have been anti-dilutive due to the net loss incurred during that period.


(2)	The dilutive effect of unvested RSUs of 345,000 shares for the three months ended June 30, 2018 has been excluded from the calculation of diluted earnings per share, as those shares would have been anti-dilutive due to the net loss incurred during that period.

Geographic Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Revenue from External Customers by Geographic Areas

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017⁽¹⁾		2018		2017⁽¹⁾
North America	$	56,056	$	52,771	$	113,014	$	105,569
Europe	53,291		44,064		105,225		86,637
Rest of the world	47,237		37,160		91,364		72,013
Total revenue	$	156,584	$	133,995	$	309,603	$	264,219


(1)	As previously discussed in Note 1, the Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. Historical revenue amounts reflect those previously reported and have not been restated.

Long-lived Assets by Geographic Areas

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



	June 30,		December 31,
	2018		2017
North America	$	81,780	$	83,027
Europe	2,848		2,599
Rest of the world	65		72
Total long-lived tangible assets	$	84,693	$	85,698

Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Increase to general and administrative expense	$ 24,322	$ 23,420	$ 51,546	$ 47,383
Allowance for Doubtful Accounts
Bad debt expense			472	$ 646
Write-offs and other adjustments			200
Allowance for doubtful accounts	4,300		4,300		$ 4,100
Deferred Rent
Deferred rent non-current balance	11,400		11,400		11,100
Chargeback and Sales Refund Allowance
Chargeback and sales refund allowances	300		300		400
Recently Adopted Accounting Standard Updates
Restricted Cash	2,613		2,613		2,613
Other Noncurrent Liabilities
Deferred Rent
Deferred rent non-current balance	11,200		11,200		11,000
Accrued Expenses And Other Current Liabilities
Deferred Rent
Deferred rent non-current balance	200		$ 200		$ 100
Immaterial Adjustment to Financial Statement
Restricted Cash and Cash Equivalents Items [Line Items]
Increase to revenue	400
Increase to general and administrative expense	$ 800

Summary of Operations and Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 289,841	$ 253,428
Restricted Cash	2,613	2,613
Total cash, cash equivalents and restricted cash	$ 292,454	$ 256,041	$ 213,163	$ 226,803

Summary of Operations and Significant Accounting Policies - Schedule of New Accounting Pronouncements and Changes in Accounting Principles (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses and other current assets	$ 27,322		$ 27,322		$ 33,376	$ 37,109
Deferred revenue	139,879		139,879		147,892	157,803
Retained earnings	183,649		183,649		151,317	145,139
Income Statement [Abstract]
Revenue	156,584	$ 133,995	309,603	$ 264,219
Cost of revenue	67,891	57,289	132,381	109,700
(Benefit)/provision for income taxes	(1,140)	1,729	10,183	5,884
Net (loss)/income	(254)	$ 3,066	32,327	$ 9,669
As Reported
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses and other current assets	31,364		31,364
Deferred revenue	151,190		151,190
Retained earnings	176,380		176,380
Income Statement [Abstract]
Revenue	156,180		308,203
Cost of revenue	67,877		132,279
(Benefit)/provision for income taxes	(1,202)		9,976
Net (loss)/income	(582)		31,236
Accounting Standards Update 2014-09 \| Adjustment
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses and other current assets	4,042		4,042			(3,733)
Deferred revenue	11,311		11,311		$ (9,911)
Retained earnings	(7,269)		(7,269)			$ 6,178
Income Statement [Abstract]
Revenue	(404)		(1,400)
Cost of revenue	(14)		(102)
(Benefit)/provision for income taxes	(62)		(207)
Net (loss)/income	$ (328)		$ (1,091)

Fair Value Measurements and Other Long-term Investments (Details) - USD ($)			3 Months Ended
	Jan. 04, 2018	Oct. 20, 2016	Jun. 30, 2018	Dec. 31, 2017	Mar. 27, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charge recorded on the Transaction Party investment			$ 5,900,000
Estimate of Fair Value Measurement \| Recurring Basis \| Money market accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value			0	$ 55,800,000
The Facility \| Indirect Guarantee of Indebtedness \| Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maximum lending amount		$ 4,600,000			$ 3,300,000
Facility term		5 years
Interest rate percent		10.00%
Borrowings made			3,300,000
Convertible Notes Payable \| Convertible Note Maturing October 2021 \| Indirect Guarantee of Indebtedness
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maximum lending amount					$ 1,600,000
Interest rate percent					10.00%
Variable Interest Entity, Not Primary Beneficiary \| Zcool Network Technology Limited
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Variable interest investment			15,000,000
Variable Interest Entity, Not Primary Beneficiary \| Zcool Network Technology Limited \| Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment value	$ 15,000,000
Equity ownership percent	25.00%
SilverHub Media Limited
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of investment in SHM			$ 0

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Property and Equipment
Property and equipment	$ 164,818		$ 164,818	$ 146,950
Less accumulated depreciation	(80,125)		(80,125)	(61,252)
Property and equipment, net	84,693		84,693	85,698
Depreciation expense	9,900	$ 6,300	19,400	11,900
Capitalized amount	6,200	7,900	15,800	14,600
Amortization expense	6,000	$ 2,900	11,400	5,000
Internal use software	49,800		49,800	45,400
Computer equipment and software
Property and Equipment
Property and equipment	136,316		136,316	118,493
Furniture and fixtures
Property and Equipment
Property and equipment	10,014		10,014	9,970
Leasehold improvements
Property and Equipment
Property and equipment	$ 18,488		$ 18,488	$ 18,487

Sale of Digital Asset Management Business (Details) - USD ($) $ in Thousands		3 Months Ended				6 Months Ended
	Feb. 26, 2018	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received						$ 42,392	$ 0
Gain on Sale of Webdam				$ 0	$ 0	$ 38,613	$ 0
Webdam
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on Sale of Webdam	$ 38,613
Webdam \| Disposal Group, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price	49,100
Cash received	42,300
Escrow deposit	$ 5,000
Release of escrow deposit				2,500
Transaction costs				$ 2,500
Scenario, Forecast \| Webdam \| Disposal Group, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Release of escrow deposit		$ 2,500
Transaction costs			$ 500

Goodwill and Intangible Assets - Changes in goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 98,654
Foreign currency translation adjustment	(1,896)
Sale of digital asset management business	(8,763)
Balance at the end of the period	87,995
Content Business
Changes in goodwill
Balance at the beginning of the period	89,891
Foreign currency translation adjustment	(1,896)
Sale of digital asset management business	0
Balance at the end of the period	87,995
Other Category
Changes in goodwill
Balance at the beginning of the period	8,763
Foreign currency translation adjustment	0
Sale of digital asset management business	(8,763)
Balance at the end of the period	$ 0

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Amortizing intangible assets:
Gross Carrying Amount	$ 47,207	$ 51,155
Accumulated Amortization	(16,948)	(16,958)
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	17,725	21,008
Accumulated Amortization	$ (6,248)	(6,996)
Weighted Average Life	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,534	7,159
Accumulated Amortization	$ (3,364)	(3,299)
Weighted Average Life	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 4,851	5,528
Accumulated Amortization	$ (3,393)	(3,450)
Weighted Average Life	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 17,678	17,041
Accumulated Amortization	$ (3,788)	(3,066)
Weighted Average Life	11 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 259	259
Accumulated Amortization	$ (76)	(68)
Weighted Average Life	18 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	160
Accumulated Amortization	$ (79)	$ (79)
Weighted Average Life	13 years

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1.3	$ 1.4	$ 2.8	$ 2.8
Remainder of 2018	2.9		2.9
2019	5.6		5.6
2020	5.0		5.0
2021	4.1		4.1
2022	3.1		3.1
2023	2.8		2.8
Thereafter	$ 6.9		$ 6.9

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Compensation	$ 11,270	$ 19,897
Non-income taxes	8,155	6,895
Royalty tax withholdings	7,444	7,566
Other expenses	19,472	24,376
Total accrued expenses	$ 46,341	$ 58,734

Commitments and Contingencies - Leases (Details) ft² in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($) ft²
Operating leases
Rental expense inclusive of operating leases	$ 2.4	$ 2.0	$ 4.8	$ 4.2
Letter of credit as a security deposit for the leased facilities					$ 2.6
Future minimum lease payments under non-cancelable operating leases
Total minimum lease payments					$ 75.2
Other assets
Operating leases
Letter of credit collateralized as restricted cash	$ 2.6		$ 2.6
New York CIty Office Space
Operating leases
Area of additional office space (sq ft) \| ft²					25

Commitments and Contingencies - Other Obligations and Indemnification and Employment Agreements (Details)	Jun. 30, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Other obligations	$ 80,200,000
Maturity of unconditional purchase obligations
Remainder of 2018	17,700,000
2019	22,700,000
2020	27,400,000
2021	9,000,000
2022	3,333,000
Indemnifications
Minimum aggregate obligation and liability	10,000
Material indemnification obligation	$ 0

Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Feb. 28, 2017	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares withheld	$ 4,972,000	$ 4,991,000
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	233
Authorized purchase amount (up to)			$ 100,000,000	$ 100,000,000
Value remaining for repurchase	$ 100,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	21
Weighted average exercise price (in usd per share)	$ 47.80
Options vested and exercisable (in shares)	321
Options vested and exercisable, weighted average exercise price (in dollars per share)	$ 35.61
Unrecognized compensation charge	$ 10,900,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	296
Nonvested shares outstanding (in shares)	1,209
Unrecognized non-cash equity-based compensation charge	$ 41,700,000
Value of shares withheld	$ 5,000,000

Stockholders’ Equity and Equity-Based Compensation - Summary of non-cash equity-based compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 6,429	$ 7,287	$ 12,035	$ 13,243
Stock options
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	1,500	1,858	2,966	3,424
RSUs
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	4,929	5,429	9,069	9,819
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	140	225	314	433
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	715	1,226	1,142	2,444
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	1,738	2,004	3,215	3,260
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 3,836	$ 3,832	$ 7,364	$ 7,106

Revenue (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue		$ 156,584	$ 133,995	$ 309,603	$ 264,219
Decrease in deferred revenue due to adoption of ASC 2014-09	$ 147,892	139,879		139,879		$ 157,803
Disposal group deferred revenue				90,400
E-Commerce
Segment Reporting Information [Line Items]
Total revenue		91,718	82,169	181,453	162,774
Enterprise
Segment Reporting Information [Line Items]
Total revenue		64,866	48,089	125,439	94,249
Digital asset management(2)
Segment Reporting Information [Line Items]
Total revenue		$ 0	$ 3,737	$ 2,711	$ 7,196
Webdam \| Disposal Group, Not Discontinued Operations
Segment Reporting Information [Line Items]
Deferred revenue decrease	$ 10,200

Employee Benefit Plans (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Maximum employees’ base compensation					3.00%
Employer match percent	50.00%
Employer matching contributions		$ 0.9	$ 0.5	$ 1.8	$ 0.9

Other Expense/Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Nonoperating Income (Expense) [Abstract]
Foreign currency (loss)/gain	$ (1,782)	$ 1,295	$ (1,463)	$ 1,660
Impairment of long-term investments	(5,881)	0	(5,881)	0
Interest income	644	215	1,127	305
Total (expense)/income	$ (7,019)	$ 1,510	$ (6,217)	$ 1,965

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	81.80%	36.10%	24.00%	37.80%
Effective tax rate change	(66.50%)		(8.70%)
Discrete tax benefit, foreign jurisdiction, change in tax rate		(0.50%)		(3.60%)
Cash (received)/paid for income taxes			$ (124)	$ (3,329)

Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
Earnings Per Share (Details) - shares	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted average shares outstanding:
Basic (in shares)	34,913,000	34,581,000	34,849,000	34,589,000
Stock options and ESPP shares (in shares)	0	473,000	113,000	484,000
Unvested RSUs (in shares)	0	196,000	381,000	348,000
Diluted (in shares)	34,913,000	35,250,000	35,343,000	35,421,000
Dilutive securities included in the calculation (in shares)	0	1,646,000	1,366,000	1,786,000
Anti-dilutive securities excluded from the calculation (in shares)	2,370,000	1,091,000	1,000,000	1,086,000
RSUs
Weighted average shares outstanding:
Anti-dilutive securities excluded from the calculation (in shares)	345,000
Stock options
Weighted average shares outstanding:
Anti-dilutive securities excluded from the calculation (in shares)	110,000

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Geographic revenue based on customer location and long-lived tangible assets
Total revenue	$ 156,584	$ 133,995	$ 309,603	$ 264,219
Total long-lived tangible assets	84,693		84,693		$ 85,698
North America
Geographic revenue based on customer location and long-lived tangible assets
Total revenue	56,056	$ 52,771	113,014	$ 105,569
Total long-lived tangible assets	$ 81,780		$ 81,780		$ 83,027
United States \| Total revenue \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	33.00%	35.00%	33.00%	36.00%
United States \| Total long-lived tangible assets \| Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			90.00%		92.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Total revenue	$ 53,291	$ 44,064	$ 105,225	$ 86,637
Total long-lived tangible assets	2,848		2,848		$ 2,599
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Total revenue	47,237	$ 37,160	91,364	$ 72,013
Total long-lived tangible assets	$ 65		$ 65		$ 72

Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions	Aug. 01, 2018	Aug. 29, 2018
Subsequent Event [Line Items]
Dividends Payable, Amount Per Share		$ 3.00
Common Stock, Dividends, Per Share, Declared	$ 3.00
Dividends, Cash		$ 105