Perficient (PRFT) 10-Q 2 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 25, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	PERFICIENT INC
Entity Central Index Key	1,085,869
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		34,809,726
Trading Symbol	PRFT

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,359	$ 6,307
Accounts receivable, net	107,286	112,194
Prepaid expenses	4,523	4,470
Other current assets	3,483	6,237
Total current assets	125,651	129,208
Property and equipment, net	6,678	7,145
Goodwill	315,405	305,238
Intangible assets, net	48,995	51,066
Other non-current assets	7,811	6,403
Total assets	504,540	499,060
Current liabilities:
Accounts payable	14,495	23,196
Other current liabilities	41,662	38,077
Total current liabilities	56,157	61,273
Long-term debt	56,000	55,000
Other non-current liabilities	18,631	16,436
Total liabilities	130,788	132,709
STOCKHOLDERS' EQUITY ATTRIBUTABLE TO PARENT
Common stock (par value $.001 per share; 100,000,000 authorized; 47,920,263 shares issued and 33,228,199 shares outstanding as of June 30, 2018; 47,370,945 shares issued and 33,249,665 shares outstanding as of December 31, 2017)	48	47
Additional paid-in capital	414,610	403,906
Accumulated other comprehensive loss	(2,474)	(1,822)
Treasury stock, at cost (14,692,064 shares as of June 30, 2018; 14,121,280 shares as of December 31, 2017)	(177,301)	(163,871)
Retained earnings	138,869	128,091
Total stockholders’ equity	373,752	366,351
Total liabilities and stockholders’ equity	$ 504,540	$ 499,060

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	47,920,263	47,370,945
Common stock, shares outstanding (in shares)	33,228,199	33,249,665
Treasury Stock, shares	14,692,064	14,121,280

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Revenues	$ 121,798	$ 117,026	$ 242,739	$ 228,046
Cost of revenues (exclusive of depreciation and amortization, shown separately below)
Cost of Goods and Services Sold	79,595	77,635	158,821	152,580
Selling, general and administrative	27,884	26,128	56,624	51,812
Depreciation	1,028	1,205	2,062	2,464
Amortization	4,137	3,537	8,020	7,162
Acquisition costs	542	893	840	1,383
Adjustment to fair value of contingent consideration	121	(597)	1,091	(439)
Income from operations	8,491	8,225	15,281	13,084
Other Income (Expense)
Net interest expense	513	657	887	1,004
Net other expense (income)	52	(51)	49	(69)
Income before income taxes	7,926	7,619	14,345	12,149
Provision for income taxes	2,077	5,210	3,567	7,030
Net income	$ 5,849	$ 2,409	$ 10,778	$ 5,119
Basic net income per share (in dollars per share)	$ 0.18	$ 0.07	$ 0.33	$ 0.15
Diluted net income per share (in dollars per share)	$ 0.17	$ 0.07	$ 0.32	$ 0.15
Shares used in computing basic net income per share (in shares)	32,772	32,942	32,762	33,161
Shares used in computing diluted net income per share (in shares)	33,889	33,747	33,894	34,080
Services
Revenues
Revenues	$ 120,912	$ 107,756	$ 241,107	$ 211,777
Cost of revenues (exclusive of depreciation and amortization, shown separately below)
Cost of Goods and Services Sold	79,595	69,908	158,821	138,888
Software and hardware
Revenues
Revenues	886	9,270	1,632	16,269
Cost of revenues (exclusive of depreciation and amortization, shown separately below)
Cost of Goods and Services Sold	$ 0	$ 7,727	$ 0	$ 13,692

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statements of Comprehensive Income - 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 income	$ 5,849	$ 2,409	$ 10,778	$ 5,119
Other comprehensive (loss) income:
Foreign currency translation adjustment	(554)	267	(652)	583
Comprehensive income	$ 5,295	$ 2,676	$ 10,126	$ 5,702

Unaudited Condensed Consolidat6

Unaudited Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Treasury Stock	Retained Earnings
Balance at Dec. 31, 2017	$ 366,351	$ 47	$ 403,906	$ (1,822)	$ (163,871)	$ 128,091
Balance (in shares) at Dec. 31, 2017	33,249,665	33,250,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Proceeds from the sales of stock through the Employee Stock Purchase Plan (in shares)		4,000
Proceeds from the sales of stock through the Employee Stock Purchase Plan	$ 81		81
Stock compensation related to restricted stock vesting and retirement savings plan contributions (in shares)		392,000
Stock compensation related to restricted stock vesting and retirement savings plan contributions	7,615	$ 1	7,614
Purchases of treasury stock and buyback of shares for taxes (in shares)		(557,000)
Purchases of treasury stock and buyback of shares for taxes	(13,127)				(13,127)
Issuance of stock in conjunction with acquisition including stock attributed to future compensation (in shares)		153,000
Issuance of stock in conjunction with acquisition including stock attributed to future compensation	3,009		3,009		0
Surrender of stock in conjunction with net working capital settlement (in shares)		(14,000)
Surrender of stock in conjunction with net working capital settlement	(303)				(303)
Net income	10,778					10,778
Foreign currency translation adjustment	(652)			(652)
Balance at Jun. 30, 2018	$ 373,752	$ 48	$ 414,610	$ (2,474)	$ (177,301)	$ 138,869
Balance (in shares) at Jun. 30, 2018	33,228,199	33,228,000

Unaudited Condensed Consolidat7

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
OPERATING ACTIVITIES
Net income	$ 10,778	$ 5,119
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	2,062	2,464
Amortization	8,020	7,162
Deferred income taxes	774	2,034
Non-cash stock compensation and retirement savings plan contributions	7,615	7,095
Adjustment to fair value of contingent consideration for purchase of business	1,091	(439)
Write-off of unamortized credit facility fees	0	246
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	11,596	8,653
Other assets	1,422	2,901
Accounts payable	(8,701)	(6,372)
Other liabilities	(5,103)	(3,983)
Net cash provided by operating activities	29,554	24,880
INVESTING ACTIVITIES
Purchase of property and equipment	(1,564)	(2,112)
Capitalization of internally developed software costs	(290)	(585)
Purchase of business	(11,278)	(37,886)
Net cash used in investing activities	(13,132)	(40,583)
FINANCING ACTIVITIES
Proceeds from line of credit	117,500	154,000
Payments on line of credit	(116,500)	(118,000)
Payment for credit facility financing fees	0	(355)
Payment of contingent consideration for purchase of business	0	(1,344)
Proceeds from the sale of stock through the Employee Stock Purchase Plan	81	91
Purchases of treasury stock	(10,232)	(20,912)
Remittance of taxes withheld as part of a net share settlement of restricted stock vesting	(2,895)	(2,487)
Net cash (used in ) provided by financing activities	(12,046)	10,993
Effect of exchange rate on cash and cash equivalents	(324)	289
Change in cash and cash equivalents	4,052	(4,421)
Cash and cash equivalents at beginning of period	6,307	10,113
Cash and cash equivalents at end of period	10,359	5,692
Supplemental disclosures:
Cash paid for income taxes	1,620	1,202
Cash paid for interest	806	714
Non-cash investing activity:
Stock issued for purchase of business	2,666	9,429
Stock surrendered by sellers in conjunction with net working capital settlement	$ 303	$ 0

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements of Perficient, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Accordingly, certain note disclosures have been condensed or omitted. In the opinion of management, the interim unaudited condensed consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. These financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed with the SEC in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Operating results for the three and six months ended June 30, 2018 may not be indicative of the results for the full year ending December 31, 2018 . Certain prior period financial statement amounts have been reclassified to conform to current period presentation. This reclassification relates to reimbursable expenses, which have been combined with services revenues and cost of services within revenues and cost of revenues in the Unaudited Condensed Consolidated Statements of Operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the financial statements. Except for the accounting policies related to revenue recognition that were updated as a result of the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers issued by the Financial Accounting Standards Board (the “FASB”), there have been no changes to significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the SEC on March 1, 2018 , that have had a material impact on the Company’s condensed consolidated financial statements and related notes. See Note 4, Revenue , for updated policies related to revenue recognition.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification ( “ ASC ” ) Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. In 2015, the FASB deferred the effective date of ASU No. 2014-09 by one year. In 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations , ASU No. 2016-10, Identifying Performance Obligations and Licensing , ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , all of which further amended ASU No. 2014-09. The Company adopted the standard on January 1, 2018 using the modified retrospective method which requires a cumulative-effect adjustment to the opening balance of retained earnings within stockholders’ equity. The Company has determined that the most significant impact upon adoption was to third-party software and hardware revenue, which was primarily recorded on a gross basis as the principal in the transaction through December 31, 2017 and presented on a net basis as the agent as of January 1, 2018. The adoption of the standard also resulted in minor changes to the timing of revenue recognition. As the agent, revenue from multi-year sales of third-party software and support is recognized upfront as the performance obligation is fulfilled, rather than annually as invoiced to the customer. Additionally, variable consideration related to service contracts, such as volume discounts and holdbacks, are recognized earlier under the new standard in certain instances. The impact from these timing changes was immaterial as of January 1, 2018, and therefore, did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of the standard also resulted in increases to accounts receivable, net and deferred revenue within other current liabilities for those contracts under which the Company’s right to consideration is unconditional. Refer to Impacts of ASC Topic 606 Adoption on Current Period Results below for the impact of adopting ASC Topic 606 on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 and the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 . There was no material impact on the Unaudited Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 . The adoption of ASU No. 2014-09 and its amendments also resulted in additional disclosures around the nature and timing of performance obligations, contract costs, and deferred revenue, as well as significant judgments and practical expedients used by the Company. See Note 4, Revenue , for these disclosures. Impacts of ASC Topic 606 Adoption on Current Period Results The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 are as follows (in thousands): As Reported ASC Topic 606 Impact Without ASC Topic 606 Adoption Accounts receivable, net $ 107,286 $ (1,283 ) $ 106,003 Total assets 504,540 (1,283 ) 503,257 Other current liabilities 41,662 (1,283 ) 40,379 Total liabilities 130,788 (1,283 ) 129,505 The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 are as follows (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) Revenues Services $ 120,912 $ — $ 120,912 $ 241,107 $ — $ 241,107 Software and hardware 886 5,865 6,751 1,632 12,385 14,017 Total revenues 121,798 5,865 127,663 242,739 12,385 255,124 Cost of revenues Cost of services 79,595 — 79,595 158,821 — 158,821 Software and hardware costs — 5,865 5,865 — 12,385 12,385 Total cost of revenues 79,595 5,865 85,460 158,821 12,385 171,206 Income from operations 8,491 — 8,491 15,281 — 15,281 Net income 5,849 — 5,849 10,778 — 10,778 In February 2016, the FASB issued ASU No. 2016-02, Leases , which supersedes ASC Topic 840, Leases, and creates a new topic, ASC Topic 842, Leases . This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for the Company on January 1, 2019. Currently, ASU No. 2016-02 requires companies to adopt the requirements of the new standard by applying a modified retrospective approach to the beginning of the earliest period presented in the financial statements. However, the FASB issued an exposure draft in January 2018, which may allow companies the option to instead apply the provisions of the new standard at the effective date without adjusting the comparative periods presented. While the Company is currently assessing the impact ASU No. 2016-02 will have on its consolidated financial statements, the Company expects the primary impact upon adoption will be the recognition, on a discounted basis, of its minimum commitments under noncancellable operating leases on its consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Current minimum commitments under noncancellable operating leases are disclosed in Note 13, Commitments and Contingencies .

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue The Company’s revenues consist of services and software and hardware sales. Revenues are recognized when control of these services or goods are transferred to clients, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or goods. For a description of the Company’s revenue recognition policy prior to January 1, 2018 under ASC Subtopic 985-605, Software – Revenue Recognition, ASC Subtopic 605-25, Revenue Recognition – Multiple-Element Arrangements , and ASC Section 605-10-S99 (Staff Accounting Bulletin Topic 13, Revenue Recognition ), refer to Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The following discussion relates to the Company’s revenue recognition policy, effective January 1, 2018, under ASC Topic 606. Services Revenues Services revenues are primarily comprised of professional services that include developing, implementing, automating and extending business processes, technology infrastructure, and software applications. The Company’s professional services span multiple industries, platforms and solutions; however, the Company has remained relatively diversified and does not believe that it has significant revenue concentration within any single industry, platform or solution. Professional services revenues are recognized over time as services are rendered. Most projects are performed on a time and materials basis, while a portion of revenues is derived from projects performed on a fixed fee or fixed fee percent complete basis. For time and material contracts, revenues are generally recognized and invoiced by multiplying the number of hours expended in the performance of the contract by the billing rates established in the contract. For fixed fee contracts, revenues are generally recognized and invoiced by multiplying the fixed rate per time period established in the contract by the number of time periods elapsed. For fixed fee percent complete contracts, revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours, and the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract. Clients are typically billed monthly for services provided during that month, but can be billed on a more or less frequent basis as determined by the contract. If the time is worked and approved at the end of a fiscal period and the invoice has not yet been sent to the client, the amount is recorded as revenue once the Company verifies all other revenue recognition criteria have been met, and the amount is classified as a receivable as the right to consideration is unconditional at that point. Amounts invoiced and collected in excess of revenues recognized are contract liabilities, which are classified as deferred revenues in the Unaudited Condensed Consolidated Balance Sheet. The term between invoicing and payment due date is not significant. Contracts for professional services provide for a general right, to the client or the Company, to cancel or terminate the contract within a given period of time (generally 10 to 30 days’ notice is required). The client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract. Certain contracts may include volume discounts or holdbacks, which are accounted for as variable consideration under ASC Topic 606, but are not typically significant. The Company estimates variable consideration based on historical experience and forecasted sales and includes the variable consideration in the transaction price. Other services revenues are comprised of hosting fees, partner referral fees, maintenance agreements, training and internally developed software-as-a-service (“SaaS”) sales. Revenues from hosting fees, maintenance agreements, training and internally developed SaaS sales are generally recognized over time using a time-based measure of progress as services are rendered. Partner referral fees are recorded at a point in time upon meeting specified requirements set by each partner to earn the respective fee. On many professional service projects, the Company is also reimbursed for out-of-pocket expenses including travel and other project-related expenses. These reimbursements are included as a component of the transaction price of the respective professional services contract and are invoiced as the expenses are incurred. The Company structures its professional services arrangements to recover the cost of reimbursable expenses without a markup. Software and Hardware Revenues Software and hardware revenues are comprised of third-party software and hardware resales, in which the Company is considered the agent, and sales of internally developed software, in which the Company is considered the principal. Third-party software and hardware revenues are recognized and invoiced when the Company fulfills its obligation to arrange the sale, which occurs when the purchase order with the vendor is executed and the customer has access to the software or the hardware has been shipped to the customer. Internally developed software revenues are recognized and invoiced when control is transferred to the customer, which occurs when the software has been made available to the customer and the license term has commenced. Revenues from third-party software and hardware sales are recorded on a net basis, while revenues from internally developed software sales are recorded on a gross basis. There are no significant cancellation or termination-type provisions for the Company’s software and hardware sales, and the term between invoicing and payment due date is not significant. Arrangements with Multiple Performance Obligations Arrangements with clients may contain multiple promises such as delivery of software, hardware, professional services or post-contract support services. These promises are accounted for as separate performance obligations if they are distinct. For arrangements with clients that contain multiple performance obligations, the transaction price is allocated to the separate performance obligations based on estimated relative standalone selling price, which is estimated by the expected cost plus a margin approach, taking into consideration market conditions and competitive factors. Contract Costs In accordance with the terms of the Company’s sales commission plan, commissions are not earned until the related revenue is recognized. Therefore, sales commissions are expensed as they are incurred. Certain sales incentives are accrued based on achievement of specified bookings goals. For these incentives, the Company applies the practical expedient that allows the Company to expense the incentives as incurred, since the amortization period would have been one year or less. Deferred Revenue During the six months ended June 30, 2018 , $ 3.8 million was recognized in revenue that was included in the deferred revenue balance at the beginning of the period. The changes in deferred revenue for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 3,278 Impact of ASC Topic 606 adoption (offset to Accounts Receivable) 2,806 Opening balance at January 1, 2018 6,084 Deferral of revenue 6,418 Recognition of deferred revenue (7,127 ) Other (390 ) Balance at June 30, 2018 $ 4,985 Transaction Price Allocated to Remaining Performance Obligations Due to the ability of the client or the Company to cancel or terminate the contract within a given period of time (generally 10 to 30 days’ notice is required), the majority of the Company’s contracts have a term of less than one year. Perficient does not disclose the value of unsatisfied performance obligations for contracts with an original maturity date of one year or less or time and materials contracts for which the Company has the right to invoice for services performed. Revenue related to unsatisfied performance obligations for remaining contracts as of June 30, 2018 was immaterial. Disaggregation of Revenue The following table presents revenue disaggregated by revenue source and pattern of revenue recognition (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Over Time Point In Time Total Revenues Over Time Point In Time Total Revenues Time and materials contracts $ 84,884 $ — $ 84,884 $ 167,033 $ — $ 167,033 Fixed fee percent complete contracts 7,898 — 7,898 17,010 — 17,010 Fixed fee contracts 20,377 — 20,377 41,599 — 41,599 Reimbursable expenses 3,215 — 3,215 6,245 — 6,245 Total professional services fees 116,374 — 116,374 231,887 — 231,887 Other services revenue* 3,754 784 4,538 7,618 1,602 9,220 Total services 120,128 784 120,912 239,505 1,602 241,107 Software and hardware — 886 886 — 1,632 1,632 Total revenues $ 120,128 $ 1,670 $ 121,798 $ 239,505 $ 3,234 $ 242,739 * Other services revenue primarily consists of hosting fees, maintenance, training, internally developed SaaS and partner referral fees. The following table presents revenue disaggregated by geographic area, as determined by the billing address of customers (in thousands): Three Months Ended Six Months Ended United States $ 119,211 $ 236,739 Canada 739 2,110 Other countries 1,848 3,890 Total revenues $ 121,798 $ 242,739

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation is accounted for in accordance with ASC Topic 718, Compensation – Stock Compensation . Under this guidance, the Company recognizes share-based compensation ratably using the straight-line attribution method over the requisite service period, which is generally three years. In addition, the Company has elected to estimate the amount of expected forfeitures when calculating share-based compensation, instead of accounting for forfeitures as they occur. The fair value of restricted stock awards is based on the value of the Company’s common stock on the date of the grant. Stock Award Plans The Company’s Second Amended and Restated 2012 Long Term Incentive Plan (as amended, the “Incentive Plan”) allows for the granting of various types of stock awards, not to exceed a total of 7.0 million shares, to eligible individuals. The Compensation Committee of the Board of Directors administers the Incentive Plan and determines the terms of all stock awards made under the Incentive Plan. As of June 30, 2018 , there were 2.6 million shares of common stock available for issuance under the Incentive Plan. Stock-based compensation cost recognized for the three and six months ended June 30, 2018 was approximately $ 4.1 million and $ 8.0 million, respectively, which included $ 0.7 million and $ 1.4 million, respectively, of expense for retirement savings plan contributions. The associated current and future income tax benefits recognized were $ 0.8 million and $ 1.6 million for the three and six months ended June 30, 2018 , respectively. Stock-based compensation cost recognized for the three and six months ended June 30, 2017 was approximately $ 3.6 million and $ 7.3 million, respectively, which included $ 0.6 million and $ 1.3 million, respectively, of expense for retirement savings plan contributions. The associated current and future income tax benefits recognized were $ 1.1 million and $ 2.3 million for the three and six months ended June 30, 2017 , respectively. As of June 30, 2018 , there was $ 20.3 million of total unrecognized compensation cost related to non-vested share-based awards with a weighted-average remaining life of two years. Restricted stock activity for the six months ended June 30, 2018 was as follows (shares in thousands): Shares Weighted-Average Restricted stock awards outstanding at December 31, 2017 1,436 $ 18.12 Awards granted 364 22.06 Awards vested (330 ) 19.27 Awards forfeited (70 ) 17.45 Restricted stock awards outstanding at June 30, 2018 1,400 $ 18.88

Net Income per Share

Net Income per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Income per Share	Net Income per Share The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income $ 5,849 $ 2,409 $ 10,778 $ 5,119 Basic: Weighted-average shares of common stock outstanding 32,772 32,942 32,762 33,161 Shares used in computing basic net income per share 32,772 32,942 32,762 33,161 Effect of dilutive securities: Restricted stock subject to vesting 552 262 576 393 Shares issuable for acquisition consideration (1) 565 543 556 526 Shares used in computing diluted net income per share 33,889 33,747 33,894 34,080 Basic net income per share $ 0.18 $ 0.07 $ 0.33 $ 0.15 Diluted net income per share $ 0.17 $ 0.07 $ 0.32 $ 0.15 Anti-dilutive restricted stock not included in the calculation of diluted net income per share — 228 60 175 (1) For the three and six months ended June 30, 2018 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm Systems, Inc. (“BioPharm”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); and (v) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”), as part of the consideration. For the three and six months ended June 30, 2017 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with The Pup Group, Inc. d/b/a Enlighten (“Enlighten”); (iv) the Asset Purchase Agreement with RAS; and (v) the Asset Purchase Agreement with Clarity, as part of the consideration. Prior to 2018, the Company's Board of Directors authorized the repurchase of up to $135.0 million of Company common stock. On February 20, 2018, the Board of Directors authorized the expansion of the stock repurchase program by authorizing the repurchase of up to an additional $25.0 million of Company common stock for a total repurchase program of $160.0 million and extended the expiration date of the program from December 31, 2018 to December 31, 2019. The program could be suspended or discontinued at any time, based on market, economic, or business conditions. The timing and amount of repurchase transactions will be determined by management based on its evaluation of market conditions, share price, and other factors. Since the program’s inception on August 11, 2008, the Company has repurchased approximately $145.2 million ( 12.8 million shares) of outstanding common stock through June 30, 2018 .

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Balance Sheet Components June 30, 2018 (unaudited) December 31, 2017 (in thousands) Accounts receivable: Accounts receivable $ 63,314 $ 82,603 Unbilled revenues 45,151 30,863 Allowance for doubtful accounts (1,179 ) (1,272 ) Total $ 107,286 $ 112,194 Property and equipment: Computer hardware (useful life of 3 years) $ 13,436 $ 13,110 Software (useful life of 1 to 7 years) 5,042 5,159 Furniture and fixtures (useful life of 5 years) 4,203 3,772 Leasehold improvements (useful life of 5 years) 3,120 2,836 Less: Accumulated depreciation (19,123 ) (17,732 ) Total $ 6,678 $ 7,145 Other current liabilities: Estimated fair value of contingent consideration liability (1) $ 13,450 $ 8,148 Accrued variable compensation 12,381 16,842 Deferred revenue 4,985 3,278 Other current liabilities 4,652 3,879 Payroll related costs 3,352 2,971 Accrued medical claims expense 1,925 2,133 Professional fees 582 357 Accrued subcontractor fees 335 469 Total $ 41,662 $ 38,077 Other non-current liabilities: Deferred income taxes $ 7,990 $ 7,360 Other non-current liabilities 6,021 4,667 Deferred compensation liability 4,620 4,409 Total $ 18,631 $ 16,436 (1) As of June 30, 2018 , represents the fair value estimate of revenue and earnings-based contingent consideration that may be realized by Southport and Clarity twelve months after the acquisition. As of December 31, 2017 , represents the fair value estimate of additional revenue and earnings-based contingent consideration that may be realized by Clarity twelve months after the acquisition.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Business Combination Disclosure	Business Combinations 2017 Acquisitions Acquisition of RAS On January 3, 2017 , the Company acquired substantially all of the assets of RAS through a wholly-owned subsidiary of the Company, pursuant to the terms of an Asset Purchase Agreement. The Company’s total allocable purchase price consideration was $10.4 million . The purchase price was comprised of $7.1 million in cash paid and $2.1 million in Company common stock issued at closing reduced by $0.6 million as a result of a net working capital adjustment settled in Company common stock surrendered by RAS in 2017. The purchase price also included $1.8 million representing the initial fair value estimate of additional revenue and earnings-based contingent consideration, which was not realized by RAS. The amount of goodwill deductible for tax purposes was $3.7 million . Acquisition of Clarity On June 22, 2017 , the Company acquired substantially all of the assets of Clarity, pursuant to the terms of an Asset Purchase Agreement. The Company’s total allocable purchase price consideration was $41.7 million . The purchase price was comprised of $30.7 million in cash paid and $7.3 million in Company common stock issued at closing reduced by $0.4 million as a result of the net working capital adjustment settled in Company common stock surrendered by Clarity in February 2018. The purchase price also included $4.1 million representing the initial fair value estimate of additional revenue and earnings-based contingent consideration with a maximum cash payout of $9.2 million . Clarity achieved the maximum cash payout pursuant to the Asset Purchase Agreement and, as a result, the Company has accrued $9.2 million of contingent consideration as of June 30, 2018 . The amount of goodwill expected to be deductible for tax purposes, excluding contingent consideration, is $22.1 million . 2018 Acquisitions Acquisition of Southport On April 2, 2018 , the Company acquired substantially all of the assets of Southport, pursuant to the terms of an Asset Purchase Agreement. The acquisition of Southport expands the Company’s expertise in business intelligence and data warehousing services. The Company has initially estimated the total allocable purchase price consideration to be $18.5 million . The purchase price was comprised of $11.3 million in cash paid and $2.7 million in Company common stock issued at closing increased by $0.3 million for an estimated net working capital adjustment due to the seller. The purchase price also included $4.2 million representing the initial fair value estimate of additional revenue and earnings-based contingent consideration, which may be realized by the seller twelve months after the closing date of the acquisition with a maximum cash payout of $6.6 million . The Company incurred approximately $0.8 million in transaction costs, which were expensed when incurred. As part of the consideration transferred for the acquisition of Southport, the Company issued common stock to owners of Southport, who are continuing with the Company, with restrictions limiting the ability to sell the common stock which lapse over a certain period or over an accelerated period upon meeting specified employment milestones. As such, an estimated $0.3 million of the common stock value was attributed to future compensation and recorded as an asset within “Other current assets” and “Other non-current assets” in the Unaudited Condensed Consolidated Balance Sheet as of the acquisition date, to be amortized over the requisite service period. The Company has estimated the allocation of the total purchase price consideration between tangible assets, identified intangible assets, liabilities, and goodwill as follows (in millions): Acquired tangible assets $ 4.2 Identified intangible assets 5.6 Liabilities assumed (1.8 ) Goodwill 10.5 Total purchase price $ 18.5 The amount of goodwill expected to be deductible for tax purposes, excluding contingent consideration, is $7.1 million . The above purchase price accounting estimates are pending finalization of the intangible assets and contingent consideration valuation and a net working capital settlement that is subject to final adjustment as the Company evaluates information during the measurement period. The following table presents details of the intangible assets acquired during the six months ended June 30, 2018 (dollars in millions): Weighted Average Useful Life Estimated Useful Life Aggregate Acquisitions Customer relationships 5 years 5 years $ 4.6 Customer backlog 1 year 1 year 0.7 Non-compete agreements 5 years 5 years 0.2 Trade name 1 year 1 year 0.1 Total acquired intangible assets $ 5.6 The operating results of the 2017 and 2018 acquisitions have been included in the Company's interim unaudited condensed consolidated financial statements since the respective acquisition date. The aggregate amounts of revenue and net income of the Southport acquisition in the Unaudited Condensed Consolidated Statements of Operations from the acquisition date to June 30, 2018 are as follows (in thousands): Acquisition Date to June 30, 2018 Revenues $ 4,661 Net income $ 386 Pro-forma Results of Operations The following presents the unaudited pro-forma combined results of operations of the Company with the 2017 and 2018 acquisitions for the six months ended June 30, 2018 and 2017 , after giving effect to certain pro-forma adjustments and assuming the 2018 acquisition was acquired as of the beginning of 2017 and assuming the 2017 acquisitions were acquired as of the beginning of 2016 . These unaudited pro-forma results are presented in compliance with the adoption of ASU No. 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations , and are not necessarily indicative of the actual consolidated results of operations had the acquisitions actually occurred on January 1, 2017 or January 1, 2016 or of future results of operations of the consolidated entities (in thousands except per share data): Six Months Ended June 30, 2018 2017 Revenues $ 247,813 $ 250,920 Net income $ 13,544 $ 6,601 Basic net income per share $ 0.41 $ 0.20 Diluted net income per share $ 0.40 $ 0.19 Shares used in computing basic net income per share 33,210 33,731 Shares used in computing diluted net income per share 33,969 34,702

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess purchase price over the fair value of net assets acquired, or net liabilities assumed, in a business combination. In accordance with ASC Topic 350, Intangibles – Goodwill and Other , the Company performs an annual impairment review in the fourth quarter and more frequently if events or changes in circumstances indicate that goodwill might be impaired. There was no indication that goodwill became impaired as of June 30, 2018 . Other intangible assets include customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software, which are being amortized over the assets’ estimated useful lives using the straight-line method. Estimated useful lives range from less than one year to ten years. Amortization of customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software is considered an operating expense and is included in “Amortization” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in a lack of recoverability or revised useful life. Goodwill The changes in the carrying amount of goodwill for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 305,238 Preliminary purchase price allocations for acquisition 10,467 Effect of foreign currency translation adjustments (300 ) Balance at June 30, 2018 $ 315,405 Intangible Assets with Definite Lives The following table presents a summary of the Company’s intangible assets that are subject to amortization (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Customer relationships $ 76,666 $ (34,693 ) $ 41,973 $ 75,407 $ (32,307 ) $ 43,100 Non-compete agreements 1,606 (705 ) 901 1,556 (707 ) 849 Customer backlog 680 (170 ) 510 1,650 (866 ) 784 Trade name 70 (18 ) 52 100 (53 ) 47 Internally developed software 11,377 (5,818 ) 5,559 11,325 (5,039 ) 6,286 Total $ 90,399 $ (41,404 ) $ 48,995 $ 90,038 $ (38,972 ) $ 51,066 The estimated useful lives of identifiable intangible assets are as follows: Customer relationships 5 - 10 years Non-compete agreements 2 - 5 years Customer backlog 1 year Trade name 1 year Internally developed software 2 - 7 years Estimated annual amortization expense for the next five years ended December 31 and thereafter is as follows (in thousands): 2018 remaining $ 7,484 2019 $ 13,529 2020 $ 10,261 2021 $ 8,128 2022 $ 6,784 Thereafter $ 2,809

Long-term Debt

Long-term Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Line of Credit	Long-term Debt On June 9, 2017 , the Company entered into a Credit Agreement as amended (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and the other lenders parties thereto. The Credit Agreement replaced the Second Amended and Restated Credit Agreement dated as of July 31, 2013 between the Company, Silicon Valley Bank and the other lenders and signatories thereto (the “Prior Credit Agreement”). The Credit Agreement provides for revolving credit borrowings up to a maximum principal amount of $125.0 million , subject to a commitment increase of $75.0 million . All outstanding amounts owed under the Credit Agreement become due and payable no later than the final maturity date of June 9, 2022 . The Credit Agreement also allows for the issuance of letters of credit in the aggregate amount of up to $10.0 million at any one time; outstanding letters of credit reduce the credit available for revolving credit borrowings. As of June 30, 2018 , the Company had one outstanding letter of credit for $0.3 million . Substantially all of the Company’s assets are pledged to secure the credit facility. Borrowings under the Credit Agreement bear interest at the Company’s option of the prime rate ( 5.00% on June 30, 2018 ) plus a margin ranging from 0.00% to 0.50% or one month LIBOR ( 2.09% on June 30, 2018 ) plus a margin ranging from 1.00% to 1.75% . The Company incurs an annual commitment fee of 0.15% to 0.20% on the unused portion of the line of credit. The additional margin amount and annual commitment fee are dependent on the level of outstanding borrowings. As of June 30, 2018 , the Company had $68.7 million of unused borrowing capacity. The Company is required to comply with various financial covenants under the Credit Agreement. Specifically, the Company is required to maintain a ratio of earnings before interest, taxes, depreciation, and amortization (“EBITDA”) plus stock compensation to interest expense for the previous four consecutive fiscal quarters of not less than 3.00 to 1.00 and a ratio of indebtedness to EBITDA plus stock compensation (“Leverage Ratio”) of not more than 3.00 to 1.00 . Additionally, the Credit Agreement currently restricts the payment of dividends that would result in a pro-forma Leverage Ratio of more than 2.00 to 1.00 . At June 30, 2018 , the Company was in compliance with all covenants under the Credit Agreement.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Internal Revenue Service (the “IRS”) has completed examinations of the Company’s U.S. income tax returns or the statute of limitations has passed on returns for the years through 2010. The Company’s 2011 through 2015 U.S. income tax returns are currently under examination by the IRS. The IRS has sought to disallow research credits in total of $2.5 million on the Company’s 2011, 2012 and 2013 U.S. income tax returns. The Company has exhausted all administrative appeals and formal mediation and has filed suit to resolve this dispute. A preliminary court date has been set by the U.S. Tax Court for November 5, 2018. The Company believes the research credits taken are appropriate and intends to vigorously defend its position. An amount of adjustment, if any, and the timing of such adjustment are not reasonably possible to estimate at this time. The total amount of research credits taken or expected to be taken in the Company’s income tax returns for 2011 through June 30, 2018 is $9.6 million . Under the provisions of the ASC Subtopic 740-10-25, Income Taxes - Recognition , the Company had an unrecognized tax benefit of $3.3 million (inclusive of $0.3 million of interest) as of June 30, 2018 . The Company’s effective tax rate was 26.2% and 24.9% for the three and six months ended June 30, 2018 compared to 68.4% and 57.9% for the three and six months ended June 30, 2017 . The decrease in the effective rate is primarily due to the passage of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”), as well as the one-time tax impact of the determination in the second quarter of 2017 that the foreign earnings of the Company's Chinese subsidiary were no longer permanently reinvested. As of June 30, 2018 , the Company’s net non-current deferred tax liability was $8.0 million . Deferred tax liabilities relate to goodwill, intangibles, fixed asset depreciation, and prepaid expenses. Net non-current deferred tax liabilities are recorded in “Other non-current liabilities” on the Condensed Consolidated Balance Sheet as of June 30, 2018 (unaudited) and December 31, 2017. In general, it is the Company’s practice and intention to reinvest the earnings of the Company’s foreign subsidiaries in those operations. However, during the second quarter of 2017, the Company determined that as a result of changes in the business and macroeconomic environment, the foreign earnings of the Company’s Chinese subsidiary were no longer permanently reinvested and may repatriate available earnings from time to time. A provision for the expected current and deferred taxes on the repatriation of earnings was recorded in the amount of $2.5 million during the second quarter of 2017. Approximately $1.6 million of this provision was reversed during the fourth quarter of 2017 due to the adoption of the 2017 Tax Act. Management intends to continue to permanently reinvest all other remaining current and prior earnings in its other foreign subsidiaries. Excluding China, foreign unremitted earnings of entities not included in the United States tax return have been included in the consolidated financial statements without giving effect to the United States taxes that may be payable on distribution to the United States because it is not anticipated such earnings will be remitted to the United States. Under current applicable tax laws, if the Company elects to remit some or all of the funds it has designated as indefinitely reinvested outside the United States, the amount remitted would be subject to non-U.S. withholding taxes. As of June 30, 2018 , the aggregate unremitted earnings of the Company’s foreign subsidiaries for which a deferred income tax liability has not been recorded was approximately $8.1 million , and the unrecognized deferred tax liability on unremitted earnings was approximately $0.4 million . U.S. Tax Reform On December 22, 2017, the U.S. government enacted the 2017 Tax Act. The 2017 Tax Act significantly revised the ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. The SEC has issued rules that would allow for a measurement period of up to one year after the enactment date of the 2017 Tax Act to finalize the recording of the related tax impacts. Based on a continued analysis of the estimates and further guidance on the application of the law, it is anticipated that additional revisions may occur throughout the allowable measurement period. However, there have been no changes in estimates or additional guidance during the current quarter which would change the Company’s assessment of the tax impacts recorded as of the prior year end. The Company currently anticipates finalizing and recording any resulting adjustments within a year of the enactment date.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Financial Instruments In the normal course of business, the Company uses derivative financial instruments to manage foreign currency exchange rate risk. Currency exposure is monitored and managed by the Company as part of its risk management program which seeks to reduce the potentially adverse effects that market volatility could have on operating results. The Company's derivative financial instruments consist of non-deliverable foreign currency forward contracts. Derivative financial instruments are neither held nor issued by the Company for trading purposes. Derivatives Not Designated as Hedging Instruments Both the gain or loss on the derivatives not designated as hedging instruments and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net loss of $0.1 million for each of the three and six months ended June 30, 2018 . A net gain of $0.1 million was recognized during the three and six months ended June 30, 2017 . Gains and losses on these contracts are recorded in net other expense (income) and net interest expense in the Unaudited Condensed Consolidated Statements of Operations and are offset by losses and gains on the related hedged items. The fair value of the Company’s derivative instruments outstanding as of June 30, 2018 was immaterial. The notional amounts of the Company’s derivative instruments outstanding were as follows (in thousands): June 30, 2018 December 31, 2017 Derivatives not designated as hedges Foreign exchange contracts $ 3,065 $ 3,979 Total derivatives not designated as hedges $ 3,065 $ 3,979

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time the Company is involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. Although the Company cannot predict the outcome of such matters, currently the Company has no reason to believe the disposition of any current matter could reasonably be expected to have a material adverse impact on the Company’s financial position, results of operations or the ability to carry on any of its business activities. In June 2016, the Company entered into an agreement to purchase software licenses for internal use payable over a two year period. As a result, the Company has recorded $0.8 million in “Other current liabilities” in the Condensed Consolidated Balance Sheet as of June 30, 2018 (unaudited). The Company leases office space and certain equipment under various operating lease agreements. The Company has the option to extend the term of certain lease agreements. Future minimum commitments under these lease agreements as of June 30, 2018 were as follows (in thousands): Operating Leases 2018 remaining $ 3,434 2019 6,977 2020 6,639 2021 5,138 2022 3,288 Thereafter 3,609 Total minimum lease payments $ 29,085 Rent expense for the three and six months ended June 30, 2018 was $2.2 million and $4.2 million , respectively. Rent expense for the three and six months ended June 30, 2017 was $2.0 million and $3.9 million , respectively.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Acquisition of Stone Temple Consulting Corporation On July 16, 2018 , the Company acquired substantially all of the assets of Stone Temple Consulting Corporation, a Massachusetts corporation (“Stone Temple”), pursuant to the terms of an Asset Purchase Agreement. The Asset Purchase Agreement provided for approximately $9.9 million of cash to be paid at closing, subject to a net working capital adjustment, approximately 48,360 shares of Company common stock to be issued at closing and a maximum potential payout for additional revenue and earnings-based contingent consideration of $2.6 million , which may be realized by the seller twelve months after the closing date of the acquisition. The acquisition of Stone Temple expands the Company’s capabilities in search engine marketing and digital content services. Goodwill and intangible assets are expected to be recorded on the Consolidated Balance Sheet from the acquisition of Stone Temple. As of August 2, 2018, the initial accounting for the business combination has not been completed, including the measurement of certain intangible assets and goodwill. Acquisition costs related to Stone Temple for the three and six months ended June 30, 2018 were immaterial.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the financial statements. Except for the accounting policies related to revenue recognition that were updated as a result of the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers issued by the Financial Accounting Standards Board (the “FASB”), there have been no changes to significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the SEC on March 1, 2018 , that have had a material impact on the Company’s condensed consolidated financial statements and related notes. See Note 4, Revenue , for updated policies related to revenue recognition.
Revenue from Contract with Customer	The following discussion relates to the Company’s revenue recognition policy, effective January 1, 2018, under ASC Topic 606. Services Revenues Services revenues are primarily comprised of professional services that include developing, implementing, automating and extending business processes, technology infrastructure, and software applications. The Company’s professional services span multiple industries, platforms and solutions; however, the Company has remained relatively diversified and does not believe that it has significant revenue concentration within any single industry, platform or solution. Professional services revenues are recognized over time as services are rendered. Most projects are performed on a time and materials basis, while a portion of revenues is derived from projects performed on a fixed fee or fixed fee percent complete basis. For time and material contracts, revenues are generally recognized and invoiced by multiplying the number of hours expended in the performance of the contract by the billing rates established in the contract. For fixed fee contracts, revenues are generally recognized and invoiced by multiplying the fixed rate per time period established in the contract by the number of time periods elapsed. For fixed fee percent complete contracts, revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours, and the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract. Clients are typically billed monthly for services provided during that month, but can be billed on a more or less frequent basis as determined by the contract. If the time is worked and approved at the end of a fiscal period and the invoice has not yet been sent to the client, the amount is recorded as revenue once the Company verifies all other revenue recognition criteria have been met, and the amount is classified as a receivable as the right to consideration is unconditional at that point. Amounts invoiced and collected in excess of revenues recognized are contract liabilities, which are classified as deferred revenues in the Unaudited Condensed Consolidated Balance Sheet. The term between invoicing and payment due date is not significant. Contracts for professional services provide for a general right, to the client or the Company, to cancel or terminate the contract within a given period of time (generally 10 to 30 days’ notice is required). The client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract. Certain contracts may include volume discounts or holdbacks, which are accounted for as variable consideration under ASC Topic 606, but are not typically significant. The Company estimates variable consideration based on historical experience and forecasted sales and includes the variable consideration in the transaction price. Other services revenues are comprised of hosting fees, partner referral fees, maintenance agreements, training and internally developed software-as-a-service (“SaaS”) sales. Revenues from hosting fees, maintenance agreements, training and internally developed SaaS sales are generally recognized over time using a time-based measure of progress as services are rendered. Partner referral fees are recorded at a point in time upon meeting specified requirements set by each partner to earn the respective fee. On many professional service projects, the Company is also reimbursed for out-of-pocket expenses including travel and other project-related expenses. These reimbursements are included as a component of the transaction price of the respective professional services contract and are invoiced as the expenses are incurred. The Company structures its professional services arrangements to recover the cost of reimbursable expenses without a markup. Software and Hardware Revenues Software and hardware revenues are comprised of third-party software and hardware resales, in which the Company is considered the agent, and sales of internally developed software, in which the Company is considered the principal. Third-party software and hardware revenues are recognized and invoiced when the Company fulfills its obligation to arrange the sale, which occurs when the purchase order with the vendor is executed and the customer has access to the software or the hardware has been shipped to the customer. Internally developed software revenues are recognized and invoiced when control is transferred to the customer, which occurs when the software has been made available to the customer and the license term has commenced. Revenues from third-party software and hardware sales are recorded on a net basis, while revenues from internally developed software sales are recorded on a gross basis. There are no significant cancellation or termination-type provisions for the Company’s software and hardware sales, and the term between invoicing and payment due date is not significant. Arrangements with Multiple Performance Obligations Arrangements with clients may contain multiple promises such as delivery of software, hardware, professional services or post-contract support services. These promises are accounted for as separate performance obligations if they are distinct. For arrangements with clients that contain multiple performance obligations, the transaction price is allocated to the separate performance obligations based on estimated relative standalone selling price, which is estimated by the expected cost plus a margin approach, taking into consideration market conditions and competitive factors. Contract Costs In accordance with the terms of the Company’s sales commission plan, commissions are not earned until the related revenue is recognized. Therefore, sales commissions are expensed as they are incurred. Certain sales incentives are accrued based on achievement of specified bookings goals. For these incentives, the Company applies the practical expedient that allows the Company to expense the incentives as incurred, since the amortization period would have been one year or less.
Stock-Based Compensation	Stock-based compensation is accounted for in accordance with ASC Topic 718, Compensation – Stock Compensation . Under this guidance, the Company recognizes share-based compensation ratably using the straight-line attribution method over the requisite service period, which is generally three years. In addition, the Company has elected to estimate the amount of expected forfeitures when calculating share-based compensation, instead of accounting for forfeitures as they occur. The fair value of restricted stock awards is based on the value of the Company’s common stock on the date of the grant.
Goodwill and Intangible Assets	Goodwill represents the excess purchase price over the fair value of net assets acquired, or net liabilities assumed, in a business combination. In accordance with ASC Topic 350, Intangibles – Goodwill and Other , the Company performs an annual impairment review in the fourth quarter and more frequently if events or changes in circumstances indicate that goodwill might be impaired. There was no indication that goodwill became impaired as of June 30, 2018 . Other intangible assets include customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software, which are being amortized over the assets’ estimated useful lives using the straight-line method. Estimated useful lives range from less than one year to ten years. Amortization of customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software is considered an operating expense and is included in “Amortization” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in a lack of recoverability or revised useful life.
Financial Instruments	Both the gain or loss on the derivatives not designated as hedging instruments and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net loss of $0.1 million for each of the three and six months ended June 30, 2018 . A net gain of $0.1 million was recognized during the three and six months ended June 30, 2017 . Gains and losses on these contracts are recorded in net other expense (income) and net interest expense in the Unaudited Condensed Consolidated Statements of Operations and are offset by losses and gains on the related hedged items. The fair value of the Company’s derivative instruments outstanding as of June 30, 2018 was immaterial.
Commitments and Contingencies, Policy	From time to time the Company is involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. Although the Company cannot predict the outcome of such matters, currently the Company has no reason to believe the disposition of any current matter could reasonably be expected to have a material adverse impact on the Company’s financial position, results of operations or the ability to carry on any of its business activities.
Lessee, Leases	The Company leases office space and certain equipment under various operating lease agreements. The Company has the option to extend the term of certain lease agreements.

Recent Accounting Pronounceme23

Recent Accounting Pronouncements (Tables)	6 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Impacts of ASC Topic 606 Adoption on Current Period Results	The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 are as follows (in thousands): As Reported ASC Topic 606 Impact Without ASC Topic 606 Adoption Accounts receivable, net $ 107,286 $ (1,283 ) $ 106,003 Total assets 504,540 (1,283 ) 503,257 Other current liabilities 41,662 (1,283 ) 40,379 Total liabilities 130,788 (1,283 ) 129,505 The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 are as follows (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) Revenues Services $ 120,912 $ — $ 120,912 $ 241,107 $ — $ 241,107 Software and hardware 886 5,865 6,751 1,632 12,385 14,017 Total revenues 121,798 5,865 127,663 242,739 12,385 255,124 Cost of revenues Cost of services 79,595 — 79,595 158,821 — 158,821 Software and hardware costs — 5,865 5,865 — 12,385 12,385 Total cost of revenues 79,595 5,865 85,460 158,821 12,385 171,206 Income from operations 8,491 — 8,491 15,281 — 15,281 Net income 5,849 — 5,849 10,778 — 10,778

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Deferred Revenue	During the six months ended June 30, 2018 , $ 3.8 million was recognized in revenue that was included in the deferred revenue balance at the beginning of the period. The changes in deferred revenue for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 3,278 Impact of ASC Topic 606 adoption (offset to Accounts Receivable) 2,806 Opening balance at January 1, 2018 6,084 Deferral of revenue 6,418 Recognition of deferred revenue (7,127 ) Other (390 ) Balance at June 30, 2018 $ 4,985
Disaggregation of Revenue	The following table presents revenue disaggregated by revenue source and pattern of revenue recognition (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Over Time Point In Time Total Revenues Over Time Point In Time Total Revenues Time and materials contracts $ 84,884 $ — $ 84,884 $ 167,033 $ — $ 167,033 Fixed fee percent complete contracts 7,898 — 7,898 17,010 — 17,010 Fixed fee contracts 20,377 — 20,377 41,599 — 41,599 Reimbursable expenses 3,215 — 3,215 6,245 — 6,245 Total professional services fees 116,374 — 116,374 231,887 — 231,887 Other services revenue* 3,754 784 4,538 7,618 1,602 9,220 Total services 120,128 784 120,912 239,505 1,602 241,107 Software and hardware — 886 886 — 1,632 1,632 Total revenues $ 120,128 $ 1,670 $ 121,798 $ 239,505 $ 3,234 $ 242,739 * Other services revenue primarily consists of hosting fees, maintenance, training, internally developed SaaS and partner referral fees. The following table presents revenue disaggregated by geographic area, as determined by the billing address of customers (in thousands): Three Months Ended Six Months Ended United States $ 119,211 $ 236,739 Canada 739 2,110 Other countries 1,848 3,890 Total revenues $ 121,798 $ 242,739

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Restricted Stock Activity	Restricted stock activity for the six months ended June 30, 2018 was as follows (shares in thousands): Shares Weighted-Average Restricted stock awards outstanding at December 31, 2017 1,436 $ 18.12 Awards granted 364 22.06 Awards vested (330 ) 19.27 Awards forfeited (70 ) 17.45 Restricted stock awards outstanding at June 30, 2018 1,400 $ 18.88

Net Income per Share (Tables)

Net Income per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Basic and Diluted Net Income per Share	The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income $ 5,849 $ 2,409 $ 10,778 $ 5,119 Basic: Weighted-average shares of common stock outstanding 32,772 32,942 32,762 33,161 Shares used in computing basic net income per share 32,772 32,942 32,762 33,161 Effect of dilutive securities: Restricted stock subject to vesting 552 262 576 393 Shares issuable for acquisition consideration (1) 565 543 556 526 Shares used in computing diluted net income per share 33,889 33,747 33,894 34,080 Basic net income per share $ 0.18 $ 0.07 $ 0.33 $ 0.15 Diluted net income per share $ 0.17 $ 0.07 $ 0.32 $ 0.15 Anti-dilutive restricted stock not included in the calculation of diluted net income per share — 228 60 175 (1) For the three and six months ended June 30, 2018 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm Systems, Inc. (“BioPharm”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); and (v) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”), as part of the consideration. For the three and six months ended June 30, 2017 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with The Pup Group, Inc. d/b/a Enlighten (“Enlighten”); (iv) the Asset Purchase Agreement with RAS; and (v) the Asset Purchase Agreement with Clarity, as part of the consideration.

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Accounts Receivable	June 30, 2018 (unaudited) December 31, 2017 (in thousands) Accounts receivable: Accounts receivable $ 63,314 $ 82,603 Unbilled revenues 45,151 30,863 Allowance for doubtful accounts (1,179 ) (1,272 ) Total $ 107,286 $ 112,194
Property and Equipment	Property and equipment: Computer hardware (useful life of 3 years) $ 13,436 $ 13,110 Software (useful life of 1 to 7 years) 5,042 5,159 Furniture and fixtures (useful life of 5 years) 4,203 3,772 Leasehold improvements (useful life of 5 years) 3,120 2,836 Less: Accumulated depreciation (19,123 ) (17,732 ) Total $ 6,678 $ 7,145
Other Current Liabilities	Other current liabilities: Estimated fair value of contingent consideration liability (1) $ 13,450 $ 8,148 Accrued variable compensation 12,381 16,842 Deferred revenue 4,985 3,278 Other current liabilities 4,652 3,879 Payroll related costs 3,352 2,971 Accrued medical claims expense 1,925 2,133 Professional fees 582 357 Accrued subcontractor fees 335 469 Total $ 41,662 $ 38,077
Other Non-Current Liabilities	Other non-current liabilities: Deferred income taxes $ 7,990 $ 7,360 Other non-current liabilities 6,021 4,667 Deferred compensation liability 4,620 4,409 Total $ 18,631 $ 16,436 (1) As of June 30, 2018 , represents the fair value estimate of revenue and earnings-based contingent consideration that may be realized by Southport and Clarity twelve months after the acquisition. As of December 31, 2017 , represents the fair value estimate of additional revenue and earnings-based contingent consideration that may be realized by Clarity twelve months after the acquisition.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Allocation of Total Purchase Price Consideration	The Company has estimated the allocation of the total purchase price consideration between tangible assets, identified intangible assets, liabilities, and goodwill as follows (in millions): Acquired tangible assets $ 4.2 Identified intangible assets 5.6 Liabilities assumed (1.8 ) Goodwill 10.5 Total purchase price $ 18.5
Schedule of Finite-Lived Intangible Assets Acquired	The following table presents details of the intangible assets acquired during the six months ended June 30, 2018 (dollars in millions): Weighted Average Useful Life Estimated Useful Life Aggregate Acquisitions Customer relationships 5 years 5 years $ 4.6 Customer backlog 1 year 1 year 0.7 Non-compete agreements 5 years 5 years 0.2 Trade name 1 year 1 year 0.1 Total acquired intangible assets $ 5.6
Pro-Forma Results of Operations	The aggregate amounts of revenue and net income of the Southport acquisition in the Unaudited Condensed Consolidated Statements of Operations from the acquisition date to June 30, 2018 are as follows (in thousands): Acquisition Date to June 30, 2018 Revenues $ 4,661 Net income $ 386 These unaudited pro-forma results are presented in compliance with the adoption of ASU No. 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations , and are not necessarily indicative of the actual consolidated results of operations had the acquisitions actually occurred on January 1, 2017 or January 1, 2016 or of future results of operations of the consolidated entities (in thousands except per share data): Six Months Ended June 30, 2018 2017 Revenues $ 247,813 $ 250,920 Net income $ 13,544 $ 6,601 Basic net income per share $ 0.41 $ 0.20 Diluted net income per share $ 0.40 $ 0.19 Shares used in computing basic net income per share 33,210 33,731 Shares used in computing diluted net income per share 33,969 34,702

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The changes in the carrying amount of goodwill for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 305,238 Preliminary purchase price allocations for acquisition 10,467 Effect of foreign currency translation adjustments (300 ) Balance at June 30, 2018 $ 315,405
Intangible Assets	The following table presents a summary of the Company’s intangible assets that are subject to amortization (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Customer relationships $ 76,666 $ (34,693 ) $ 41,973 $ 75,407 $ (32,307 ) $ 43,100 Non-compete agreements 1,606 (705 ) 901 1,556 (707 ) 849 Customer backlog 680 (170 ) 510 1,650 (866 ) 784 Trade name 70 (18 ) 52 100 (53 ) 47 Internally developed software 11,377 (5,818 ) 5,559 11,325 (5,039 ) 6,286 Total $ 90,399 $ (41,404 ) $ 48,995 $ 90,038 $ (38,972 ) $ 51,066
Estimated Useful Lives of Intangible Assets	The estimated useful lives of identifiable intangible assets are as follows: Customer relationships 5 - 10 years Non-compete agreements 2 - 5 years Customer backlog 1 year Trade name 1 year Internally developed software 2 - 7 years
Estimated Annual Amortization Expense	Estimated annual amortization expense for the next five years ended December 31 and thereafter is as follows (in thousands): 2018 remaining $ 7,484 2019 $ 13,529 2020 $ 10,261 2021 $ 8,128 2022 $ 6,784 Thereafter $ 2,809

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Outstanding Derivative Positions	The notional amounts of the Company’s derivative instruments outstanding were as follows (in thousands): June 30, 2018 December 31, 2017 Derivatives not designated as hedges Foreign exchange contracts $ 3,065 $ 3,979 Total derivatives not designated as hedges $ 3,065 $ 3,979

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Commitments Under Operating Lease Agreements	Future minimum commitments under these lease agreements as of June 30, 2018 were as follows (in thousands): Operating Leases 2018 remaining $ 3,434 2019 6,977 2020 6,639 2021 5,138 2022 3,288 Thereafter 3,609 Total minimum lease payments $ 29,085

Recent Accounting Pronounceme32

Recent Accounting Pronouncements, Impact on Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets [Abstract]
Accounts receivable, net	$ 107,286	$ 112,194
Total assets	504,540	499,060
Liabilities [Abstract]
Other current liabilities	41,662	38,077
Total liabilities	130,788	$ 132,709
ASC Topic 606 Impact | ASU 2014-09
Assets [Abstract]
Accounts receivable, net	(1,283)
Total assets	(1,283)
Liabilities [Abstract]
Other current liabilities	(1,283)
Total liabilities	(1,283)
Without ASC Topic 606 Adoption | ASU 2014-09
Assets [Abstract]
Accounts receivable, net	106,003
Total assets	503,257
Liabilities [Abstract]
Other current liabilities	40,379
Total liabilities	$ 129,505

Recent Accounting Pronounceme33

Recent Accounting Pronouncements, Impact on Unaudited Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Revenues	$ 121,798	$ 117,026	$ 242,739	$ 228,046
Cost of revenues
Cost of Goods and Services Sold	79,595	77,635	158,821	152,580
Income from operations	8,491	8,225	15,281	13,084
Net income	5,849	2,409	10,778	5,119
Services
Revenues
Revenues	120,912	107,756	241,107	211,777
Cost of revenues
Cost of Goods and Services Sold	79,595	69,908	158,821	138,888
Software and hardware
Revenues
Revenues	886	9,270	1,632	16,269
Cost of revenues
Cost of Goods and Services Sold	0	$ 7,727	0	$ 13,692
Impact of ASC Topic 606 Adoption | ASU 2014-09
Revenues
Revenues	5,865		12,385
Cost of revenues
Cost of Goods and Services Sold	5,865		12,385
Income from operations	0		0
Net income	0		0
Impact of ASC Topic 606 Adoption | ASU 2014-09 | Services
Revenues
Revenues	0		0
Cost of revenues
Cost of Goods and Services Sold	0		0
Impact of ASC Topic 606 Adoption | ASU 2014-09 | Software and hardware
Revenues
Revenues	5,865		12,385
Cost of revenues
Cost of Goods and Services Sold	5,865		12,385
Without ASC Topic 606 Adoption | ASU 2014-09
Revenues
Revenues	127,663		255,124
Cost of revenues
Cost of Goods and Services Sold	85,460		171,206
Income from operations	8,491		15,281
Net income	5,849		10,778
Without ASC Topic 606 Adoption | ASU 2014-09 | Services
Revenues
Revenues	120,912		241,107
Cost of revenues
Cost of Goods and Services Sold	79,595		158,821
Without ASC Topic 606 Adoption | ASU 2014-09 | Software and hardware
Revenues
Revenues	6,751		14,017
Cost of revenues
Cost of Goods and Services Sold	$ 5,865		$ 12,385

Revenue, Services Revenue (Deta

Revenue, Services Revenue (Details) - Services	6 Months Ended
	Jun. 30, 2018
Minimum
Revenue [Abstract]
Notice period to cancel or terminate contract	10 days
Maximum
Revenue [Abstract]
Notice period to cancel or terminate contract	30 days

Revenue, Deferred Revenue (Deta

Revenue, Deferred Revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Change in Contract with Customer, Asset and Liability [Abstract]
Balance at beginning of period	$ 3,278
Deferral of revenue	6,418
Recognition of deferred revenue	(7,127)
Other	(390)
Balance at end of period	4,985
ASU 2014-09
Change in Contract with Customer, Asset and Liability [Abstract]
Balance at beginning of period	6,084
Impact of ASC Topic 606 Adoption | ASU 2014-09
Change in Contract with Customer, Asset and Liability [Abstract]
Balance at beginning of period	2,806
Recognition of deferred revenue	$ 3,800

Revenue, Disaggregation of Reve

Revenue, Disaggregation of Revenue by Revenue Source and Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue [Abstract]
Revenues	$ 121,798	$ 117,026	$ 242,739	$ 228,046
Transferred over Time
Revenue [Abstract]
Revenues	120,128		239,505
Transferred at Point in Time
Revenue [Abstract]
Revenues	1,670		3,234
Services
Revenue [Abstract]
Revenues	120,912	107,756	241,107	211,777
Services | Transferred over Time
Revenue [Abstract]
Revenues	120,128		239,505
Services | Transferred at Point in Time
Revenue [Abstract]
Revenues	784		1,602
Professional Services
Revenue [Abstract]
Revenues	116,374		231,887
Professional Services | Transferred over Time
Revenue [Abstract]
Revenues	116,374		231,887
Professional Services | Transferred at Point in Time
Revenue [Abstract]
Revenues	0		0
Professional Services | Time and materials contracts
Revenue [Abstract]
Revenues	84,884		167,033
Professional Services | Time and materials contracts | Transferred over Time
Revenue [Abstract]
Revenues	84,884		167,033
Professional Services | Time and materials contracts | Transferred at Point in Time
Revenue [Abstract]
Revenues	0		0
Professional Services | Fixed fee percent complete contracts
Revenue [Abstract]
Revenues	7,898		17,010
Professional Services | Fixed fee percent complete contracts | Transferred over Time
Revenue [Abstract]
Revenues	7,898		17,010
Professional Services | Fixed fee percent complete contracts | Transferred at Point in Time
Revenue [Abstract]
Revenues	0		0
Professional Services | Fixed fee contracts
Revenue [Abstract]
Revenues	20,377		41,599
Professional Services | Fixed fee contracts | Transferred over Time
Revenue [Abstract]
Revenues	20,377		41,599
Professional Services | Fixed fee contracts | Transferred at Point in Time
Revenue [Abstract]
Revenues	0		0
Professional Services | Reimbursable expenses
Revenue [Abstract]
Revenues	3,215		6,245
Professional Services | Reimbursable expenses | Transferred over Time
Revenue [Abstract]
Revenues	3,215		6,245
Professional Services | Reimbursable expenses | Transferred at Point in Time
Revenue [Abstract]
Revenues	0		0
Other Services
Revenue [Abstract]
Revenues	4,538		9,220
Other Services | Transferred over Time
Revenue [Abstract]
Revenues	3,754		7,618
Other Services | Transferred at Point in Time
Revenue [Abstract]
Revenues	784		1,602
Software and hardware
Revenue [Abstract]
Revenues	886	$ 9,270	1,632	$ 16,269
Software and hardware | Transferred over Time
Revenue [Abstract]
Revenues	0		0
Software and hardware | Transferred at Point in Time
Revenue [Abstract]
Revenues	$ 886		$ 1,632

Revenue, Disaggregation of Re37

Revenue, Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue [Abstract]
Revenues	$ 121,798	$ 117,026	$ 242,739	$ 228,046
United States
Revenue [Abstract]
Revenues	119,211		236,739
Canada
Revenue [Abstract]
Revenues	739		2,110
Other countries
Revenue [Abstract]
Revenues	$ 1,848		$ 3,890

Stock-Based Compensation, Stock

Stock-Based Compensation, Stock Award Plans (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation [Abstract]
Requisite service period			3 years
Stock-based compensation expense	$ 4.1	$ 3.6	$ 8	$ 7.3
Stock-based compensation expense for retirement savings plan contributions	0.7	0.6	1.4	1.3
Associated current and future income tax benefits recognized	0.8	$ 1.1	1.6	$ 2.3
Total unrecognized compensation cost related to non-vested share-based awards	$ 20.3		$ 20.3
Unrecognized compensation cost, weighted-average period for recognition			2 years
2012 Long Term Incentive Plan
Stock-Based Compensation [Abstract]
Maximum number of shares authorized under plan (in shares)	7		7
Number of shares available for issuance under the Incentive Plan	2.6		2.6

Stock-Based Compensation, Restr

Stock-Based Compensation, Restricted Stock Activity (Details) - 2012 Long Term Incentive Plan - Restricted Stock shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock awards outstanding at beginning of period | shares	1,436
Awards granted (in shares) | shares	364
Awards vested (in shares) | shares	(330)
Awards forfeited (in shares) | shares	(70)
Restricted stock awards outstanding at end of period | shares	1,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Awards outstanding at beginning of period (in dollars per share) | $ / shares	$ 18.12
Awards granted (in dollars per share) | $ / shares	22.06
Awards vested (in dollars per share) | $ / shares	19.27
Awards forfeited (in dollars per share) | $ / shares	17.45
Awards outstanding at end of period (in dollars per share) | $ / shares	$ 18.88

Net Income per Share (Details)

Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Earnings Per Share [Abstract]
Net income	$ 5,849	$ 2,409	$ 10,778	$ 5,119
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted-average shares of common stock outstanding	32,772	32,942	32,762	33,161
Shares used in computing basic net income per share	32,772	32,942	32,762	33,161
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Restricted stock subject to vesting	552	262	576	393
Shares issuable for acquisition consideration (in shares)	565	543	556	526
Shares used in computing diluted net income per share	33,889	33,747	33,894	34,080
Basic net income per share (in dollars per share)	$ 0.18	$ 0.07	$ 0.33	$ 0.15
Diluted net income per share (in dollars per share)	$ 0.17	$ 0.07	$ 0.32	$ 0.15
Anti-dilutive options and restricted stock not included in the calculation of diluted net income per share (in shares)	0	228	60	175
Stock Repurchase Program [Abstract]
Authorized amount to be repurchased	$ 160,000		$ 160,000		$ 135,000
Increase in authorized amount to be repurchased			25,000
Cumulative amount repurchased	$ 145,200		$ 145,200
Cumulative number of shares repurchased	12,800		12,800

Balance Sheet Components, Accou

Balance Sheet Components, Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 63,314	$ 82,603
Unbilled revenues	45,151	30,863
Allowance for doubtful accounts	(1,179)	(1,272)
Total	$ 107,286	$ 112,194

Balance Sheet Components, Prope

Balance Sheet Components, Property and Equipment) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Property and Equipment [Abstract]
Less: Accumulated depreciation	$ (19,123)	$ (17,732)
Property and equipment, net	6,678	7,145
Computer Hardware
Property and Equipment [Abstract]
Property, Plant and Equipment, Gross	$ 13,436	13,110
Useful life	3 years
Software and Software Development Costs
Property and Equipment [Abstract]
Property, Plant and Equipment, Gross	$ 5,042	5,159
Furniture And Fixtures
Property and Equipment [Abstract]
Property, Plant and Equipment, Gross	$ 4,203	3,772
Useful life	5 years
Leasehold Improvements
Property and Equipment [Abstract]
Property, Plant and Equipment, Gross	$ 3,120	$ 2,836
Useful life	5 years
Minimum | Software and Software Development Costs
Property and Equipment [Abstract]
Useful life	1 year
Maximum | Software and Software Development Costs
Property and Equipment [Abstract]
Useful life	7 years

Balance Sheet Components, Other

Balance Sheet Components, Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Estimated fair value of contingent consideration liability	$ 13,450	$ 8,148
Accrued variable compensation	12,381	16,842
Deferred revenue	4,985	3,278
Other current liabilities	4,652	3,879
Payroll related costs	3,352	2,971
Accrued medical claims expense	1,925	2,133
Professional fees	582	357
Accrued subcontractor fees	335	469
Total	$ 41,662	$ 38,077

Balance Sheet Components, Oth44

Balance Sheet Components, Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Deferred income taxes	$ 7,990	$ 7,360
Other non-current liabilities	6,021	4,667
Deferred compensation liability	4,620	4,409
Total	$ 18,631	$ 16,436

Business Combinations, RAS (Det

Business Combinations, RAS (Details) - RAS - USD ($) $ in Millions	Jan. 03, 2017	Jun. 30, 2018
Business Combinations [Abstract]
Date of acquisition	Jan. 3, 2017
Total purchase price	$ 10.4
Cash paid for acquisition	7.1
Common stock issued	2.1
Net working capital settlement	(0.6)
Initial fair value estimate of additional earnings-based contingent consideration	$ 1.8
Tax deductible amount of Goodwill		$ 3.7

Business Combinations, Clarity

Business Combinations, Clarity (Details) - Clarity Consultants - USD ($) $ in Millions	Jun. 22, 2017	Jun. 30, 2018
Business Combinations [Abstract]
Date of acquisition	Jun. 22, 2017
Total purchase price	$ 41.7
Cash paid for acquisition	30.7
Common stock issued	7.3
Net working capital settlement	(0.4)
Initial fair value estimate of additional earnings-based contingent consideration	$ 4.1
Contingent consideration, maximum cash payout		$ 9.2
Tax deductible amount of Goodwill		$ 22.1

Business Combinations, Southpor

Business Combinations, Southport (Details) - USD ($) $ in Thousands	Apr. 02, 2018	Jun. 30, 2018	Dec. 31, 2017
Business Combinations [Abstract]
Period to realize additional earnings-based contingent consideration		12 months
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill		$ 315,405	$ 305,238
Southport Services Group, LLC
Business Combinations [Abstract]
Date of acquisition	Apr. 2, 2018
Cash paid for acquisition	$ 11,300
Common stock issued	2,700
Net working capital settlement	300
Initial fair value estimate of additional earnings-based contingent consideration	4,200
Contingent consideration, maximum cash payout		6,600
Transaction costs		800
Common stock value attributed to future compensation		300
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Acquired tangible assets	4,200
Identified intangible assets	5,600
Liabilities assumed	(1,800)
Goodwill	10,500
Total purchase price	$ 18,500
Tax deductible amount of Goodwill		$ 7,100

Business Combinations, Intangib

Business Combinations, Intangible Assets Acquired (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Finite-Lived Intangible Assets, Gross [Abstract]
Aggregate Acquisitions	$ 5.6
Customer relationships
Finite-Lived Intangible Assets, Gross [Abstract]
Weighted Average Useful Life	5 years
Estimated Useful Life	5 years
Aggregate Acquisitions	$ 4.6
Customer backlog
Finite-Lived Intangible Assets, Gross [Abstract]
Weighted Average Useful Life	1 year
Estimated Useful Life	1 year
Aggregate Acquisitions	$ 0.7
Non-compete agreements
Finite-Lived Intangible Assets, Gross [Abstract]
Weighted Average Useful Life	5 years
Estimated Useful Life	5 years
Aggregate Acquisitions	$ 0.2
Trade name
Finite-Lived Intangible Assets, Gross [Abstract]
Weighted Average Useful Life	1 year
Estimated Useful Life	1 year
Aggregate Acquisitions	$ 0.1

Business Combinations Acquisiti

Business Combinations Acquisition Results (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Business Combinations [Abstract]
Revenues	$ 4,661
Net income	$ 386

Business Combinations, Pro Form

Business Combinations, Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition, Pro Forma Information [Abstract]
Revenues	$ 247,813	$ 250,920
Net income	$ 13,544	$ 6,601
Basic net income per share	$ 0.41	$ 0.20
Diluted net income per share	$ 0.40	$ 0.19
Shares used in computing basic net income per share	33,210	33,731
Shares used in computing diluted net income per share	33,969	34,702

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Goodwill) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Balance at beginning of period	$ 305,238
Preliminary purchase price allocations for acquisition	10,467
Effect of foreign currency translation adjustments	(300)
Balance at end of period	$ 315,405

Goodwill and Intangible Asset52

Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amounts	$ 90,399	$ 90,038
Accumulated Amortization	(41,404)	(38,972)
Net Carrying Amounts	48,995	51,066
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amounts	76,666	75,407
Accumulated Amortization	(34,693)	(32,307)
Net Carrying Amounts	41,973	43,100
Non-compete agreements
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amounts	1,606	1,556
Accumulated Amortization	(705)	(707)
Net Carrying Amounts	901	849
Customer backlog
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amounts	680	1,650
Accumulated Amortization	(170)	(866)
Net Carrying Amounts	510	784
Trade name
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amounts	70	100
Accumulated Amortization	(18)	(53)
Net Carrying Amounts	52	47
Internally developed software
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amounts	11,377	11,325
Accumulated Amortization	(5,818)	(5,039)
Net Carrying Amounts	$ 5,559	$ 6,286

Goodwill and Intangible Asset53

Goodwill and Intangible Assets, Estimated Useful Lives (Details)	6 Months Ended
	Jun. 30, 2018
Customer relationships | Minimum
Intangible Assets [Abstract]
Estimated useful lives	5 years
Customer relationships | Maximum
Intangible Assets [Abstract]
Estimated useful lives	10 years
Non-compete agreements | Minimum
Intangible Assets [Abstract]
Estimated useful lives	2 years
Non-compete agreements | Maximum
Intangible Assets [Abstract]
Estimated useful lives	5 years
Customer backlog
Intangible Assets [Abstract]
Estimated useful lives	1 year
Trade name
Intangible Assets [Abstract]
Estimated useful lives	1 year
Internally developed software | Minimum
Intangible Assets [Abstract]
Estimated useful lives	2 years
Internally developed software | Maximum
Intangible Assets [Abstract]
Estimated useful lives	7 years

Goodwill and Intangible Asset54

Goodwill and Intangible Assets, Estimated Amortization Expense (Details) $ in Thousands	Jun. 30, 2018USD ($)
Estimated Amortization Expense [Abstract]
2018 remaining	$ 7,484
2,019	13,529
2,020	10,261
2,021	8,128
2,022	6,784
Thereafter	$ 2,809

Long-term Debt (Details)

Long-term Debt (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Line of Credit [Abstract]
Leverage Ratio	3
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum
Line of Credit [Abstract]
Margin interest rate percentage	1.00%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum
Line of Credit [Abstract]
Margin interest rate percentage	1.75%
Revolving Credit Facility | Credit Agreement
Line of Credit [Abstract]
Maximum borrowing capacity	$ 125,000,000
Additional commitment increase	75,000,000
Allowable amount of letters of credit for issuance	10,000,000
Letters of Credit Outstanding, Amount	$ 300,000
Maturity date	Jun. 9, 2022
Available borrowing capacity	$ 68,700,000
EBITDA Ratio	3
Leverage Ratio needed for payment of dividends	2
Revolving Credit Facility | Credit Agreement | Minimum
Line of Credit [Abstract]
Annual commitment fee percentage on unused capacity	0.15%
Revolving Credit Facility | Credit Agreement | Maximum
Line of Credit [Abstract]
Annual commitment fee percentage on unused capacity	0.20%
Revolving Credit Facility | Credit Agreement | Prime Rate
Line of Credit [Abstract]
Interest rate at end of period	5.00%
Revolving Credit Facility | Credit Agreement | Prime Rate | Minimum
Line of Credit [Abstract]
Margin interest rate percentage	0.00%
Revolving Credit Facility | Credit Agreement | Prime Rate | Maximum
Line of Credit [Abstract]
Margin interest rate percentage	0.50%
Revolving Credit Facility | Credit Agreement | London Interbank Offered Rate (LIBOR)
Line of Credit [Abstract]
Term of variable rate	1 month
Interest rate at end of period	2.09%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Taxes [Abstract]
Unrecognized tax benefits	$ 3,300			$ 3,300
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 300			$ 300
Effective tax rate	26.20%		68.40%	24.90%	57.90%
Deferred income taxes	$ 7,990	$ 7,360		$ 7,990
Taxes on foreign earnings repatriated			$ 2,500
Reversal of taxes on foreign earnings repatriated due to 2017 Tax Act		$ (1,600)
Unremitted earnings of foreign subsidiaries	8,100			8,100
Unrecognized deferred tax liability on unremitted earnings of foreign subsidiaries	400			400
Internal Revenue Service (IRS) | Tax Years 2011, 2012 and 2013
Income Taxes [Abstract]
Disallowed research tax credits being litigated	$ 2,500			2,500
Internal Revenue Service (IRS) | Tax Years 2011 to Date
Income Taxes [Abstract]
Income Tax Credits and Adjustments				$ 9,600

Financial Instruments, Gains (L

Financial Instruments, Gains (Losses) on Derivatives, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Foreign Exchange Forward | Net Other Income (Expense) and Net Interest Expense | Not Designated as Hedging Instrument
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative, Gain (Loss) on Derivative, Net	$ (0.1)	$ 0.1	$ (0.1)	$ 0.1

Financial Instruments, Notional

Financial Instruments, Notional Amounts (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 3,065	$ 3,979
Foreign Exchange Forward
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 3,065	$ 3,979

Commitments and Contingencies59

Commitments and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Commitments [Abstract]
Other current liabilities		$ 41,662		$ 41,662		$ 38,077
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018 remaining		3,434		3,434
2,019		6,977		6,977
2,020		6,639		6,639
2,021		5,138		5,138
2,022		3,288		3,288
Thereafter		3,609		3,609
Total minimum lease payments		29,085		29,085
Rent expense		2,200	$ 2,000	4,200	$ 3,900
Software Licenses
Commitments [Abstract]
Period to purchase software licenses	2 years
Other current liabilities		$ 800		$ 800

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Stone Temple Consulting Corporation $ in Millions	Jul. 16, 2018USD ($)shares
Business Combinations [Abstract]
Date of acquisition	Jul. 16, 2018
Cash paid for acquisition	$ 9.9
Common stock issued | shares	48,360
Contingent consideration, maximum cash payout	$ 2.6