LivePerson (LPSN) 10-Q1 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Jul. 28, 2014
Document - Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Trading Symbol	'lpsn	'
Entity Registrant Name	'LIVEPERSON INC	'
Entity Central Index Key	'0001102993	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	53,777,512

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS:	'	'
Cash and cash equivalents	$71,234	$91,906
Accounts receivable, net of allowance for doubtful accounts of $809 and $1,165 as of June 30, 2014 and December 31, 2013, respectively	33,877	29,489
Prepaid expenses and other current assets	10,055	6,361
Deferred tax assets, net	4,104	5,426
Total current assets	119,270	133,182
Property and equipment, net	17,329	17,618
Intangibles, net	12,533	13,088
Goodwill	35,783	32,724
Deferred tax assets, net	7,397	6,243
Other assets	5,033	2,235
Total assets	197,345	205,090
CURRENT LIABILITIES:	'	'
Accounts payable	8,143	10,139
Accrued expenses	26,252	25,419
Deferred revenue	7,317	8,747
Total current liabilities	41,712	44,305
Deferred revenue, net of current	0	468
Other liabilities	891	1,264
Total liabilities	42,603	46,037
Commitments and contingencies (See Note 11)	'	'
STOCKHOLDERSâ€™ EQUITY (See Note 12):	'	'
Common stock	54	54
Additional paid-in capital	241,878	244,621
Accumulated deficit	-87,285	-85,279
Accumulated other comprehensive income (loss)	95	-343
Total stockholdersâ€™ equity	154,742	159,053
Total liabilities and stockholdersâ€™ equity	$197,345	$205,090

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Accounts receivable, allowance for doubtful accounts	$809	$1,165

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended				6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Revenue	$51,087		$43,229		$98,915		$85,725
Costs and expenses (1) (2):	'		'		'		'
Cost of revenue	13,161	[1],[2]	10,612	[1],[2]	24,896	[1],[2]	20,746	[1],[2]
Sales and marketing	20,077	[1],[2]	15,499	[1],[2]	38,472	[1],[2]	29,977	[1],[2]
General and administrative	9,788	[1],[2]	9,835	[1],[2]	19,286	[1],[2]	20,072	[1],[2]
Product development	9,336	[1],[2]	9,047	[1],[2]	18,287	[1],[2]	17,068	[1],[2]
Amortization of purchased intangibles	206		224		396		448
Total costs and expenses	52,568		45,217		101,337		88,311
Operating income (loss)	-1,481		-1,988		-2,422		-2,586
Other income (expense)	45		20		-38		55
Loss before benefit from income taxes	-1,436		-1,968		-2,460		-2,531
Benefit from income taxes	-224		-138		-454		-470
Net loss	-1,212		-1,830		-2,006		-2,061
Basic net (loss) income per common share (in dollars per share)	($0.02)		($0.03)		($0.04)		($0.04)
Diluted net (loss) income per common share (in dollars per share)	($0.02)		($0.03)		($0.04)		($0.04)
Weighted average shares outstanding used in basic net (loss) income per common share calculation (in shares)	54,189,722		54,806,694		54,766,811		55,332,449
Weighted average shares outstanding used in diluted net (loss) income per common share calculation (in shares)	54,189,722		54,806,694		54,766,811		55,332,449
Share-based Compensation	3,207		2,901		5,904		5,952
Cost of revenue [Member]	'		'		'		'
Costs and expenses (1) (2):	'		'		'		'
Share-based Compensation	484		501		844		922
Depreciation	1,646		1,540		3,044		3,120
Sales and marketing expense [Member]	'		'		'		'
Costs and expenses (1) (2):	'		'		'		'
Share-based Compensation	923		569		1,737		1,315
Depreciation	201		22		408		45
General and administrative expense [Member]	'		'		'		'
Costs and expenses (1) (2):	'		'		'		'
Share-based Compensation	869		1,019		1,712		2,034
Depreciation	214		261		414		523
Product development expense [Member]	'		'		'		'
Costs and expenses (1) (2):	'		'		'		'
Share-based Compensation	931		812		1,611		1,681
Depreciation	$172		$175		$349		$360

[1]	Amounts include stock compensation expense as follows: Cost of revenue $484 and $501 for the three months ended June 30, 2014 and 2013, respectively and $844 and $922 for the six months ended June 30, 2014 and 2013, respectively, Sales and marketing $923 and $569 for the three months ended June 30, 2014 and 2013, respectively and $1,737 and $1,315 for the six months ended June 30, 2014 and 2013, respectively, General and administrative $869 and $1,019 for the three months ended June 30, 2014 and 2013, respectively and $1,712 and $2,034 for the six months ended June 30, 2014 and 2013, respectively, and Product development $931 and $812 for the three months ended June 30, 2014 and 2013, respectively and $1,611 and $1,681 for the six months ended June 30, 2014 and 2013, respectively.
[2]	Amounts include depreciation expense as follows: Cost of revenue $1,646 and $1,540 for the three months ended June 30, 2014 and 2013, respectively and $3,044 and $3,120 for the six months ended June 30, 2014 and 2013, respectively, Sales and marketing $201 and $22 for the three months ended June 30, 2014 and 2013, respectively and $408 and $45 for the six months ended June 30, 2014 and 2013, respectively, General and administrative $214 and $261 for the three months ended June 30, 2014 and 2013, respectively and $414 and $523 for the six months ended June 30, 2014 and 2013, respectively, and Product development $172 and $175 for the three months ended June 30, 2014 and 2013, respectively and $349 and $360 for the six months ended June 30, 2014 and 2013, respectively.

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net loss	($1,212)	($1,830)	($2,006)	($2,061)
Foreign currency translation adjustment	298	-428	438	-387
Comprehensive loss	($914)	($2,258)	($1,568)	($2,448)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES:	'	'
Net loss	($2,006)	($2,061)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:	'	'
Stock-based compensation expense	5,904	5,952
Depreciation	4,215	4,048
Amortization of purchased intangibles	2,133	884
Deferred income taxes and other non-cash tax items	-658	-1,174
Provision for doubtful accounts, net	979	0
Changes in operating assets and liabilities:	'	'
Accounts receivable	-5,230	-1,531
Prepaid expenses and other current assets	-4,599	-1,524
Other assets	394	80
Accounts payable	-1,700	-5,208
Accrued expenses	-287	1,553
Deferred revenue	-1,926	-254
Other liabilities	-365	-86
Net cash (used in) provided by operating activities	-3,146	679
INVESTING ACTIVITIES:	'	'
Purchases of property and equipment, including capitalized software	-4,322	-4,661
Investment in technology licenses	-3,174	0
Acquisition of Synchronite	2,300	0
Acquisition of NexGraph	-125	0
Acquisition of domains	-27	-50
Acquisition costs - Engage, net of cash	0	-79
Net cash used in investing activities	-9,948	-4,790
FINANCING ACTIVITIES:	'	'
Excess tax benefit from the exercise of employee stock options	0	135
Proceeds from issuance of common stock in connection with the exercise of options	3,922	2,318
Repurchase of common stock	-12,163	-26,526
Net cash used in financing activities	-8,241	-24,073
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	663	-203
CHANGE IN CASH AND CASH EQUIVALENTS	-20,672	-28,387
CASH AND CASH EQUIVALENTS - Beginning of the period	91,906	103,339
CASH AND CASH EQUIVALENTS - End of the period	71,234	74,952
SUPPLEMENTAL DISCLOSURE OF OTHER CASH FLOW INFORMATION:	'	'
Cash paid for income taxes	1,843	118
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:	'	'
Contingent earn-out in connection with the acquisition of Synchronite recorded in accrued expenses	1,810	0
Purchase of property and equipment recorded in accounts payable	407	144
Acquisition cost in connection with NexGraph recorded in accrued expenses	$250	$0

Description_of_Business_and_Ba

Description of Business and Basis of Presentation	6 Months Ended
Description of Business and Basis of Presentation	Jun. 30, 2014
Accounting Policies [Abstract]	'
Description of Business and Basis of Presentation	'
	Description of Business and Basis of Presentation
	LivePerson, Inc. (the “Company” or “LivePerson”) was incorporated in the State of Delaware in November 1995 and the LivePerson service was introduced in November 1998. In April 2000, the Company completed an initial public offering and is currently traded on the Nasdaq Global Select Market and the Tel Aviv Stock Exchange. LivePerson is headquartered in New York City with offices in Amsterdam, Atlanta, London, Melbourne, San Francisco, Santa Monica, Tokyo and Tel Aviv.
	LivePerson provides online engagement solutions offering a cloud-based platform which enables businesses to proactively connect with consumers through chat, voice and content delivery, across multiple channels and screens, including websites, social media, tablets and mobile devices. The Company’s engagements are driven by insights derived from a broad set of consumer and business data, including historical, behavioral, operational, and third party data. Each engagement is based on proprietary analytics and a real-time understanding of consumer needs and business objectives. The Company’s products, coupled with its domain knowledge and industry expertise, have been proven to maximize the effectiveness of the online channel — by increasing sales, as well as consumer satisfaction and loyalty ratings for its customers, while also enabling its customers to reduce consumer service costs.
	LivePerson monitors and analyzes valuable online consumer behavioral data on behalf of its customers. Spanning the breadth of an online visitor session, starting from an initial keyword search through actions on their customer’s website, and even into a shopping cart and an executed sale, this data enables the Company to develop unique insights into consumer behavior during specific transactions within a customer’s user base.
	The Company’s primary revenue source is from the sale of LivePerson services to businesses of all sizes. The Company also offers an online marketplace that connects independent service providers (“Experts”) who provide information and knowledge for a fee via real-time chat with individual consumers (“Users”).
	Basis of Presentation
	The accompanying condensed consolidated financial statements as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the consolidated financial position of LivePerson as of June 30, 2014, and the consolidated results of operations, comprehensive loss and cash flows for the interim periods ended June 30, 2014 and 2013. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. The condensed consolidated balance sheet at December 31, 2013 has been derived from audited consolidated financial statements at that date.
	Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 14, 2014.
	Reclassification
	For comparability, certain 2013 amounts have been reclassified where appropriate, to conform to the financial presentation in 2014.
	Principles of Consolidation
	The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.
	Use of Estimates
	The preparation of the Company’s condensed consolidated financial statements in conformity with 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates.
	Recently Issued Accounting Standards
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes most existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP.
	The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the Company’s pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

Revenue_Recognition

Revenue Recognition	6 Months Ended
Revenue Recognition	Jun. 30, 2014
Revenue Recognition [Abstract]	'
Revenue Recognition	'
	Revenue Recognition
	The majority of the Company’s revenue is generated from monthly service revenues and related professional services from the sale of the LivePerson services. Because the Company provides its application as a service, the Company follows the provisions of FASB Accounting Standards Codification (“ASC”) 605-10-S99, “Revenue Recognition” and ASC 605-25, “Revenue Recognition with Multiple-Element Arrangements.” The Company charges a monthly fee, which varies by type of service, the level of customer usage and website traffic, and in some cases, the number of orders placed via the Company’s online engagement solutions.
	For certain of the Company’s larger customers, the Company may provide call center labor through an arrangement with one or more of several qualified vendors. For most of these customers, the Company passes the fee it incurs with the labor provider and its fee for the hosted services through to its customers in the form of a fixed fee for each order placed via the Company’s online engagement solutions. For these Pay for Performance (“PFP”) arrangements, in accordance with ASC 605-45, “Principal Agent Considerations,” the Company records revenue for transactions in which it acts as an agent on a net basis, and revenue for transactions in which it acts as a principal on a gross basis.
	The Company also sells certain of the LivePerson services directly via Internet download. These services are marketed as LiveEngage for small to medium-sized businesses (“SMBs”), and are paid for almost exclusively by credit card. Credit card payments accelerate cash flow and reduce the Company’s collection risk, subject to the merchant bank's right to hold back cash pending settlement of the transactions. Sales of LiveEngage may occur with or without the assistance of an online sales representative, rather than through face-to-face or telephone contact that is typically required for traditional direct sales.
	The Company recognizes monthly service revenue based upon the fee charged for the LivePerson services, provided that there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed or determinable. The Company’s service agreements typically have twelve month terms and, in some cases, are terminable or may terminate upon 30 to 90 days’ notice without penalty. When professional service fees add value to the customer on a standalone basis, the Company recognizes professional service fees upon completion and customer acceptance in accordance with FASB Accounting Standards Update 2009-13. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence; (b) third-party evidence; or (c) best estimated selling price. If a professional services arrangement does not qualify for separate accounting, the Company recognizes the fees, and the related labor costs, ratably over the contracted period.
	For revenue generated from online transactions between Experts and Users, the Company recognizes revenue net of the Expert fees in accordance with ASC 605-45, “Principal Agent Considerations,” due primarily to the fact that the Expert is the primary obligor. Additionally, the Company performs as an agent without any risk of loss for collection, and is not involved in selecting the Expert or establishing the Expert’s fee. The Company collects a fee from the User and retains a portion of the fee, and then remits the balance to the Expert. Revenue from these transactions is recognized when there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed and determinable.

Net_Loss_Per_Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Net Loss Per Share	'
	Net Loss Per Share
	The Company calculates earnings per share (“EPS”) in accordance with the provisions of ASC 260-10 and the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 98. Under ASC 260-10, basic EPS excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. All options, warrants or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.
	Diluted net loss per common share for the three and six months ended June 30, 2014 does not include the effect of options to purchase 11,434,227 shares of common stock as the effect of their inclusion is anti-dilutive. Diluted net loss per common share for the three and six months ended June 30, 2013 does not include the effect of options to purchase 9,344,220 shares of common stock as the effect of their inclusion is anti-dilutive.
	A reconciliation of shares used in calculating basic and diluted earnings per share follows:


		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Basic	54,189,722	54,806,694	54,766,811	55,332,449

	Effect of assumed exercised options	—	—	—	—

	Diluted	54,189,722	54,806,694	54,766,811	55,332,449

Segment_Information

Segment Information	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Segment Information	'
	Segment Information
	The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment facilitates real-time online interactions – chat, voice and content delivery across multiple channels and screens for global corporations of all sizes. The Consumer segment facilitates online transactions between Experts and Users and sells its services to consumers. Both segments currently generate their revenue primarily in the United States. The chief operating decision makers evaluate performance, make operating decisions, and allocate resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s condensed consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no inter-segment sales.
	Summarized financial information by segment for the three months ended June 30, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business			Consumer			Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	41,996		$	—		$	—			$	41,996

	Hosted services – Consumer	—			4,539			—				4,539

	Professional services	4,552			—			—				4,552

	Total revenue	46,548			4,539			—				51,087

	Cost of revenue	12,483			678			—				13,161

	Sales and marketing	18,799			1,278			—				20,077

	Amortization of purchased intangibles	206			—			—				206

	Unallocated corporate expenses	—			—			19,124				19,124

	Operating income (loss)	$	15,060		$	2,583		$	(19,124	)		$	(1,481	)

	Summarized financial information by segment for the three months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business			Consumer			Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	36,634		$	—		$	—			$	36,634

	Hosted services – Consumer	—			3,776			—				3,776

	Professional services	2,819			—			—				2,819

	Total revenue	39,453			3,776			—				43,229

	Cost of revenue	9,974			638			—				10,612

	Sales and marketing	14,243			1,256			—				15,499

	Amortization of purchased intangibles	224			—			—				224

	Unallocated corporate expenses	—			—			18,882				18,882

	Operating income (loss)	$	15,012		$	1,882		$	(18,882	)		$	(1,988	)

	Summarized financial information by segment for the six months ended June 30, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business			Consumer			Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	81,677		$	—		$	—			$	81,677

	Hosted services – Consumer	—			8,448			—				8,448

	Professional services	8,790			—			—				8,790

	Total revenue	90,467			8,448			—				98,915

	Cost of revenue	23,627			1,269			—				24,896

Sales and marketing	35,717			2,755			—				38,472

Amortization of purchased intangibles	396			—			—				396

Unallocated corporate expenses	—			—			37,573				37,573

Operating income (loss)	$	30,727		$	4,424		$	(37,573	)		$	(2,422	)

Summarized financial information by segment for the six months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


	Business			Consumer			Corporate				Consolidated
Revenue:
Hosted services – Business	$	72,778		$	—		$	—			$	72,778

Hosted services – Consumer	—			7,395			—				7,395

Professional services	5,552			—			—				5,552

Total revenue	78,330			7,395			—				85,725

Cost of revenue	19,510			1,236			—				20,746

Sales and marketing	27,449			2,528			—				29,977

Amortization of purchased intangibles	448			—			—				448

Unallocated corporate expenses	—			—			37,140				37,140

Operating income (loss)	$	30,923		$	3,631		$	(37,140	)		$	(2,586	)

Geographic Information
The Company is domiciled in the United States and has international operations in the United Kingdom, Asia-Pacific, Latin America and Western Europe, particularly France and Germany. The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014				2013

United States	$	33,765		$	28,966		$	64,865			$	57,606

Other Americas (1)	2,172			1,825			4,321				3,792

Total Americas	35,937			30,791			69,186				61,398

EMEA (2)	11,055			8,051			21,569				15,972

APAC (3)	4,095			4,387			8,160				8,355

Total revenue	$	51,087		$	43,229		$	98,915			$	85,725

(1) Canada, Latin America and South America
(2) Europe, the Middle East and Africa (“EMEA”)
(3) Asia-Pacific (“APAC”)
The following table presents the Company's long-lived assets by geographic region for the periods presented (amounts in thousands):


	June 30,			December 31,
	2014			2013
United States	$	39,347		$	34,422

Israel	20,551			22,580

Australia	9,058			9,827

Netherlands	7,696			3,540

United Kingdom	1,423			1,539

Total long-lived assets	$	78,075		$	71,908

No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. One customer accounted for approximately 20% and 12% of accounts receivable as of June 30, 2014 and December 31, 2013, respectively.

Goodwill_and_Intangible_Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Goodwill and Intangible Assets	'
	Goodwill and Intangible Assets
	Goodwill
	The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows (amounts in thousands):


		Business			Consumer				Total
	Balance as of December 31, 2013	$	24,700		$	8,024			$	32,724

	Adjustments to goodwill:
	NexGraph acquisition	400			—				400

	Synchronite acquisition	2,659			—				2,659

	Balance as of June 30, 2014	$	27,759		$	8,024			$	35,783

	The changes in the carrying amount of goodwill for the year ended December 31, 2013 are as follows (amounts in thousands):


		Business			Consumer				Total
	Balance as of December 31, 2012	$	24,621		$	8,024			$	32,645

	Adjustments to goodwill:
	Adjustments to Engage acquisition	79			—				79

	Balance as of December 31, 2013	$	24,700		$	8,024			$	32,724

	Intangible Assets
	Intangible assets are summarized as follows (see Note 8) (amounts in thousands):


		As of June 30, 2014
		Gross			Accumulated				Net Carrying Amount			Weighted
		Carrying			Amortization							Average
		Amount										Amortization
												Period
	Amortizing intangible assets:
	Technology	$	19,615		$	(9,416	)		$	10,199		4.1 years

	Customer relationships	5,308			(3,480		)		1,828			3.7 years

	Trade names	787			(725		)		62			2.8 years

	Non-compete agreements	646			(519		)		127			1.3 years

	Patents	475			(210		)		265			11.0 years

	Other	312			(260		)		52			3.0 years

	Total	$	27,143		$	(14,610	)		$	12,533



		As of December 31, 2013
		Gross			Accumulated				Net Carrying Amount			Weighted
		Carrying			Amortization							Average
		Amount										Amortization
												Period
	Amortizing intangible assets:
	Technology	$	18,533		$	(7,678	)		$	10,855		3.8 years

	Customer relationships	5,061			(3,148		)		1,913			3.5 years

	Trade names	725			(725		)		—			2.7 years

Non-compete agreements	486			(486		)		—			1.2 years

Patents	475			(189		)		286			11.0 years

Other	285			(251		)		34			3.0 years

Total	$	25,565		$	(12,477	)		$	13,088


Amortization expense is calculated on a straight-line basis over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $1.1 million and $2.1 million for the three and six months ended June 30, 2014, respectively. Aggregate amortization expense for intangible assets was $0.5 million and $0.9 million for the three and six months ended June 30, 2013, respectively. For the three and six months ended June 30, 2014, a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years are as follows (amounts in thousands):


	Estimated Amortization Expense
2014	$	2,182

2015	3,976

2016	3,514

2017	1,915

2018	194

Thereafter	752

Total	$	12,533

Property_and_Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Property and Equipment	'
	Property and Equipment
	The following table presents the detail of property and equipment for the periods presented (amounts in thousands):


		June 30,			December 31,
		2014			2013
	Computer equipment and software	$	49,170		$	45,790

	Furniture, equipment and building improvements	8,452			7,906

		57,622			53,696

	Less: accumulated depreciation	(40,293		)	(36,078		)
	Total	$	17,329		$	17,618

Accrued_Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2014
Payables and Accruals [Abstract]	'
Accrued Liabilities	'
	Accrued Liabilities
	The following table presents the detail of accrued liabilities for the periods presented (amounts in thousands):


		June 30,		December 31,
		2014		2013
	Payroll and other employee related costs	$	9,804	$	13,090

	Professional services and consulting and other vendor fees	7,451		6,769

	Sales commissions	3,142		1,778

	Contingent earnout (Note 8)	3,220		1,660

	Other	2,635		2,122

	Total	$	26,252	$	25,419

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2014
Business Combinations [Abstract]	'
Acquisitions	'
	Acquisitions
	Amadesa Ltd.
	On May 31, 2012, the Company acquired technology assets from Amadesa, Ltd., an Israeli-based start-up, for aggregate cash consideration of approximately $10.3 million. The acquisition provides the Company with sophisticated, machine-learning predictive modeling that it expects to leverage across multiple engagement channels, enhancing its real-time intelligent engagement platform. The asset was allocated to “Intangibles, net” on the Company’s condensed consolidated balance sheet and is being amortized over its expected period of benefit. The acquisition did not have a material impact on the Company’s reported operating results. Total acquisition costs incurred were approximately $0.5 million and are included in “Intangibles, net” on the Company’s condensed consolidated balance sheet.
	LookIO, Inc.
	On June 13, 2012, the Company acquired LookIO, Inc., a start-up that provides mobile engagement solutions. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of LookIO, Inc. were included in the Company’s consolidated results of operations from the date of acquisition. The acquisition did not have a material impact on the Company’s reported operating results.
	The purchase price was approximately $2.9 million, which included the issuance of 109,517 shares of the Company’s common stock valued at approximately $2.0 million, based on the quoted market price of the Company’s common stock on the day of closing, and a cash payment of $0.9 million. Total acquisition costs incurred were approximately $0.2 million and were included in general and administrative expenses in the Company’s condensed consolidated statements of operations. The acquisition adds plug-and-play mobile engagement capabilities to LivePerson’s platform allowing its customers to connect with consumers on mobile devices. All 109,517 shares are included in the weighted average shares outstanding used in basic and diluted net income (loss) per share as of the acquisition date. The purchase price was allocated based on management’s estimate of fair values, taking into account all relevant information available. A substantial amount of the purchase price was allocated to intangibles (technology) and the excess was allocated to goodwill. The goodwill is not deductible for income tax purposes. The intangible asset is being amortized over its expected period of benefit. In addition to the purchase price, certain founders can earn an additional 30,422 shares of LivePerson common stock by achieving an employment milestone by providing continued services through a specified date. The Company valued these shares at approximately $0.6 million, based on the quoted market price of the Company’s common stock on the day of closing. In accordance with ASC 805-10, the Company is accruing this contingent compensation ratably over the requisite employment period.
	Management’s allocation of the purchase price in connection with the LookIO acquisition is as follows (amounts in thousands):


	Intangible assets (technology)	$	767

	Goodwill	2,405

		3,172

	Deferred tax liability	(288		)
	Total purchase price consideration	$	2,884

	Engage Pty Ltd.
	On November 9, 2012, the Company acquired all outstanding shares of Engage Pty Ltd. (“Engage”), an Australian provider of cloud-based customer contact solutions. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of Engage were included in the Company’s consolidated results of operations from the date of acquisition. The acquisition did not have a material impact on the Company’s reported operating results.
	The purchase price was approximately $10.6 million. The total acquisition costs incurred in the year ended December 31, 2012 were approximately $0.5 million and are included in general and administrative expenses in the Company’s condensed consolidated statements of operations for the same period. The acquisition enhances the Company’s ability to offer intelligent engagement solutions to businesses in the Asia Pacific region. Of the total purchase price, $0.8 million was allocated to the net book values of the acquired assets and assumed liabilities. The historical carrying amounts of such assets and liabilities approximated their fair values. All receivables acquired are expected to be collectible. The purchase price in excess of the fair value of the net book values of the assets acquired and liabilities assumed was allocated to intangible assets based on management’s best estimate of fair values, taking into account all relevant information available at the time of acquisition, and the excess was allocated to goodwill. The goodwill is not deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The purchase price includes approximately $1.6 million of potential earn-out consideration for the shareholders if certain revenue targets are achieved. The earn-out is payable in shares of LivePerson common stock. The Company recorded the contingent earn-out as part of the purchase price. In accordance with ASC 480, the Company has classified this amount as a liability and the amount is included in accrued expenses in the June 30, 2014 balance sheet, due to the variable number of shares that will be issued if and when the targets are achieved. During 2014, the Company paid $0.2 million of the total potential earn-out consideration amount. The Company will assess the earn-out calculation in future periods and any future adjustments will affect operating income.
	Management’s preliminary allocation of the purchase price in connection with the Engage acquisition is as follows (amounts in thousands):


	Cash	$	386

	Accounts receivable	3,454

	Other current assets	57

	Property and equipment	432

	Other assets	104

	Intangible assets	3,600

	Goodwill	6,152

		14,185

	Liabilities assumed	(2,632		)
	Deferred tax liability	(962		)
	Total purchase price consideration	$	10,591

	The components of the intangible assets listed in the above table are as follows (amounts in thousands):


		Weighted		Amount
		Average Useful
		Life (Months)
	Technology	36		$	768

	Trade-name	12		95

	Customer relationships	48		2,661

	Non-compete agreements	12		76

				$	3,600

	NexGraph LLC
	In March 2014, the Company acquired all the outstanding shares of NexGraph LLC (“NexGraph”), a company focused on analytic solutions, in exchange for aggregate cash consideration of $0.5 million. This transaction was accounted for as an asset purchase. The $0.1 million was allocated to Intangibles, net and $0.4 million was allocated to Goodwill.
	Synchronite LLC
On June 2, 2014, the Company acquired Synchronite LLC (“Synchronite”), a German based start-up that provides co-browsing technology. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of Synchronite were included in the Company’s consolidated results of operations from the date of acquisition. The acquisition did not have a material impact on the Company’s reported operating results.
The allocation of the total purchase price of approximately $4.1 million was based upon the estimated fair value of Synchronite's net tangible and identifiable intangible assets as of the date of acquisition. The total acquisition costs incurred in the period ended June 30, 2014 were approximately $0.4 million and are included in general and administrative expenses in the Company’s condensed consolidated statements of operations. Of the total purchase price, $45,000 was allocated to the net book values of the acquired assets and assumed liabilities. The historical carrying amounts of such assets and liabilities approximated their fair values. All receivables acquired are expected to be collectible. The purchase price includes approximately $2.7 million of goodwill and approximately $1.5 million of intangible assets. The goodwill is not deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The purchase price includes $1.8 million of potential earn-out consideration for the shareholders if complete product integration is achieved. The earn-out is payable in shares of LivePerson common stock and cash. The Company recorded the contingent earn-out as part of the purchase price. In accordance with ASC 480, the Company has classified this amount as a liability and the amount is included in accrued expenses in the June 30, 2014 condensed consolidated balance sheet, due to the variable number of shares that will be issued if and when the targets are achieved. The Company will assess the earn-out calculation in future periods and any future adjustments will affect operating income.
The components of the intangible assets are as follows (amounts in thousands):


	Weighted		Amount
	Average Useful
	Life (Months)
Technology	120		$	1,082

Trade-name	48		62

Customer relationships	84		247

Non-compete agreements	36		60

			$	1,451

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	Fair Value Measurements
	The Company measures its cash equivalents at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

	•	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

	•	Level 2: Inputs reflect: quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	•	Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
	The Company's assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2014 and December 31, 2013, are summarized as follows (amounts in thousands):


		June 30, 2014									December 31, 2013
		Level 1			Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Assets:
	Cash equivalents:
	Money market funds	$	8,488		$	—	$	—	$	8,488	$	13,674	$	—	$	—	$	13,674
	Money market funds	$	8,488		$	—	$	—	$	8,488	$	13,674	$	—	$	—	$	13,674
	Total assets	$	8,488		$	—	$	—	$	8,488	$	13,674	$	—	$	—	$	13,674
	Total assets	$	8,488		$	—	$	—	$	8,488	$	13,674	$	—	$	—	$	13,674

	Liabilities:
	Contingent earn-out	$	—		$	—	$	3,220	$	3,220	$	—	$	—	$	1,660	$	1,660
	Contingent earn-out	$	—		$	—	$	3,220	$	3,220	$	—	$	—	$	1,660	$	1,660
	Total liabilities	$	—		$	—	$	3,220	$	3,220	$	—	$	—	$	1,660	$	1,660
	Total liabilities	$	—		$	—	$	3,220	$	3,220	$	—	$	—	$	1,660	$	1,660
	In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's assumptions based on the best information available.
	The Company's only asset that is measured at fair value on a recurring basis is money market funds, based on quoted market prices in active markets and therefore classified as level 1 within the fair value hierarchy. The Company's only liability that is measured at fair value on a recurring basis is the contingent earn-out and is classified as level 3 within the fair value hierarchy. On a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. Long-lived tangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. The Company uses an income approach and inputs that constitute level 3. During the third quarter of each year, the Company evaluates goodwill for impairment at the reporting unit level. The Company uses a combination of discounted cash flows and other qualitative factors in accordance with ASU No. 2011-08 to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This measurement is classified based on level 3 input.
	The contingent earn-out consists of $1.4 million and $1.7 million in connection with the acquisition of Engage and is recorded in accrued expenses in the condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013, respectively. The earn-out is based on the potential earn-out consideration if certain revenue targets are achieved. The total contingent earn-out was increased by $1.8 million during the three months ended June 30, 2014 in connection with the acquisition of Synchronite and is also recorded in accrued expense in the condensed consolidated balance sheet as of June 30, 2014. The contingent earn-out is based on the fulfillment of a complete product integration and a minimum number of “Co-Browse” interactions per month.
	The changes in fair value of the Level 3 liabilities are as follows (amounts in thousands):


		Contingent Earn-Out
		30-Jun-14			31-Dec-13
	Balance, Beginning of Period	$	1,660		$	1,660
	Balance, Beginning of Period	$	1,660		$	1,660
	Synchronite addition (see Note 8)	1,810			—
	Synchronite addition (see Note 8)	1,810			—
	Cash payment	(250		)	—
	Cash payment	(250		)	—
	Balance, End of Period	$	3,220		$	1,660
	Balance, End of Period	$	3,220		$	1,660

Investments

Investments	6 Months Ended
Investments	Jun. 30, 2014
Investments, All Other Investments [Abstract]	'
Investments	'
	Investments
	In February 2014, the Company made a cost method investment in technology licenses in the amount of $3.2 million. The Company will receive access to patents as well as certain consulting services from the company holding the patents. This transaction was accounted for as an asset purchase. The net asset was allocated to other assets.

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	Contractual Obligations
	The Company leases facilities and certain equipment under agreements accounted for as operating leases. These leases generally require the Company to pay all executory costs such as maintenance and insurance. Rental expense for operating leases for the three and six months ended June 30, 2014 was approximately $2.4 million and $4.6 million, respectively. Rental expense for operating leases for the three and six months ended June 30, 2013 was approximately $2.3 million and $4.8 million, respectively.
	Employee Benefit Plans
	The Company has a 401(k) defined contribution plan covering all eligible employees. The Company provides for employer matching contributions equal to 50% of employee contributions, up to the lesser of 5% of eligible compensation or $6,000. Matching contributions are deposited into the employee’s 401(k) account and are subject to 5 year graded vesting. Salaries and related expenses include $0.3 million and $0.6 million of employer matching contributions for the three and six months ended June 30, 2014, respectively. Salaries and related expenses include $0.2 million and $0.5 million of employer matching contributions for the three and six months ended June 30, 2013, respectively.

Stockholders_Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stockholders' Equity	'
	Stockholders' Equity
	Common Stock
	As of June 30, 2014, there were 100,000,000 shares of common stock authorized, and 54,297,797 shares issued and outstanding. As of December 31, 2013, there were 100,000,000 shares of common stock authorized, and 54,484,760 shares issued and outstanding. The par value for common shares is $0.001.
	Preferred Stock
	As of June 30, 2014 and December 31, 2013, there were 5,000,000 shares of preferred stock authorized, and zero shares issued and outstanding. The par value for preferred shares is $0.001.
	Stock Repurchase Program
	On December 10, 2012, the Company’s Board of Directors approved a stock repurchase program through June 30, 2014. Under the stock repurchase program, the Company is authorized to repurchase shares of its common stock, in the open market or privately negotiated transactions, at times and prices considered appropriate by the Board of Directors depending upon prevailing market conditions and other corporate considerations. On March 13, 2014, the Company's Board of Directors increased the aggregate purchase price of the stock repurchase program from $30.0 million to $40.0 million. On July 23, 2014, the Company's Board of Directors extended the expiration date of the program out to December 31, 2014 and also increased the aggregate purchase price of the stock repurchase program from $40.0 million to $50.0 million. There were 1,113,701 shares repurchased under this program during 2014, of which 462,912 shares were recorded in treasury stock at cost on the condensed consolidated balance sheets as of June 30, 2014. As of June 30, 2014, approximately $1.1 million remained available for purchase under the program as in effect at that time.
	Stock-Based Compensation
	The Company follows FASB ASC 718-10, “Stock Compensation,” which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized.
	The following table summarizes stock-based compensation expense related to employee stock options under ASC 718-10 included in Company’s statements of operations for the periods presented (amounts in thousands):


		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2014				2013			2014		2013
	Cost of revenue	$	484			$	501		$	844	$	922
	Cost of revenue	$	484			$	501		$	844	$	922
	Sales and marketing expense	923				569			1,737		1,315
	Sales and marketing expense	923				569			1,737		1,315
	Product development expense	931				812			1,611		1,681
	Product development expense	931				812			1,611		1,681
	General and administrative expense	869				1,019			1,712		2,034
	General and administrative expense	869				1,019			1,712		2,034
	Total stock based compensation included in costs and expenses	$	3,207			$	2,901		$	5,904	$	5,952
		$	3,207			$	2,901		$	5,904	$	5,952
	The per share weighted average fair value of stock options granted during the three and six months ended June 30, 2014 was $4.76 and $5.06, respectively. The per share weighted average fair value of stock options granted during the three and six months ended June 30, 2013 was $5.72 and $6.16, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Dividend yield	0.00%		0.00%		0.00%		0.00%
	Risk-free interest rate	1.6% - 1.7%		0.7% - 1.0%		1.5% - 1.7%		0.7% - 1.0%
	Expected life (in years)	5		5		5		5
	Historical volatility	52.6% - 53.2%		56.7% - 60.1%		52.6% - 53.7%		56.7% - 60.1%
	A description of the methods used in the significant assumptions used to estimate the fair value of stock-based compensation awards follows:
	Dividend yield – The Company uses 0% as it has never issued dividends and does not anticipate issuing dividends in the near term.
	Risk-free interest rate – The Company uses the market yield on U.S. Treasury securities at five years with constant maturity, representing the current expected life of stock options in years.
	Expected life – The Company uses historical data to estimate the expected life of a stock option.
	Historical volatility – The Company uses a trailing five year from grant date to determine volatility.
	During 1998, the Company established the Stock Option and Restricted Stock Purchase Plan (the “1998 Plan”). Under the 1998 Plan, the Board of Directors could issue incentive stock options or nonqualified stock options to purchase up to 5,850,000 shares of common stock. The 2000 Stock Incentive Plan (the “2000 Plan”) succeeded the 1998 Plan. Under the 2000 Plan, the options which had been outstanding under the 1998 Plan were incorporated in the 2000 Plan increasing the number of shares available for issuance under the plan by approximately 4,150,000, thereby reserving for issuance 10,000,000 shares of common stock in the aggregate.
	The Company established the 2009 Stock Incentive Plan (as amended and restated, the “2009 Plan”) as a successor to the 2000 Plan. Under the 2009 Plan, the options which had been outstanding under the 2000 Plan were incorporated into the 2009 Plan and the Company increased the number of shares available for issuance under the plan by 6,000,000. The Company amended the 2009 stock incentive plan (the “Amended 2009 Plan”) effective June 7, 2012. The Amended 2009 Plan increased the number of shares authorized for issuance under the plan by an additional 4,250,000, thereby reserving for issuance 23,817,744 shares of common stock in the aggregate. Options to acquire common stock granted thereunder have 10-year terms. As of June 30, 2014, approximately 14,300,000 shares of common stock were reserved for issuance under the 2009 Plan (taking into account all option exercises through June 30, 2014).
	As of June 30, 2014, there was approximately $33.7 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 2.0 years.
	In June 2010, the Company’s stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. As of June 30, 2014, approximately 615,000 shares of common stock were reserved for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through June 30, 2014).
	A summary of the Company’s stock option activity and weighted average exercise prices follows:


		Options			Weighted
					Average
					Exercise Price
	Options outstanding at December 31, 2013	9,724,193			$	10.86
	Options outstanding at December 31, 2013	9,724,193			$	10.86
	Options granted	2,833,500			10.72
	Options granted	2,833,500			10.72
	Options exercised	(286,553	)		8.4
	Options exercised	(286,553	)		8.4
	Options cancelled	(836,916	)		13.27
	Options cancelled	(836,916	)		13.27
	Options outstanding at June 30, 2014	11,434,224			10.71
	Options outstanding at June 30, 2014	11,434,224			10.71
	Options exercisable at June 30, 2014	4,512,864			$	9.15
	Options exercisable at June 30, 2014	4,512,864			$	9.15
	The total value of stock options exercised during the six months ended June 30, 2014 was approximately $1.0 million. The total intrinsic value of options exercisable at June 30, 2014 was approximately $12.3 million. The total intrinsic value of nonvested options at June 30, 2014 is approximately $1.7 million. The total intrinsic value of all outstanding options at June 30, 2014 is $14.0 million.
A summary of the status of the Company’s nonvested shares as of December 31, 2013, and changes during the six months ended June 30, 2014 is as follows:


	Options			Weighted
				Average Grant-
				Date Fair Value
Nonvested Shares at December 31, 2013	5,633,701			$	6.9
Nonvested Shares at December 31, 2013	5,633,701			$	6.9
Granted	2,833,500			5.06
Granted	2,833,500			5.06
Vested	(708,925	)		5.79
Vested	(708,925	)		5.79
Cancelled	(836,916	)		6.73
Cancelled	(836,916	)		6.73
Nonvested Shares at June 30, 2014	6,921,360			$	5.8
Nonvested Shares at June 30, 2014	6,921,360			$	5.8

Legal_Matters

Legal Matters	6 Months Ended
Legal Matters	Jun. 30, 2014
Loss Contingency, Information about Litigation Matters [Abstract]	'
Legal Matters	'
	Legal Matters
	The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where the Company assesses the likelihood of loss as probable.
	From time to time, the Company is involved in or subject to legal, administrative and regulatory proceedings, claims, demands and investigations arising in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450. The accruals or estimates, if any, resulting from the foregoing analysis, are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company will, as applicable, adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made.

Description_of_Business_and_Ba1

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
SUMMARY OF OPERATIONS	'
	LivePerson, Inc. (the “Company” or “LivePerson”) was incorporated in the State of Delaware in November 1995 and the LivePerson service was introduced in November 1998. In April 2000, the Company completed an initial public offering and is currently traded on the Nasdaq Global Select Market and the Tel Aviv Stock Exchange. LivePerson is headquartered in New York City with offices in Amsterdam, Atlanta, London, Melbourne, San Francisco, Santa Monica, Tokyo and Tel Aviv.
	LivePerson provides online engagement solutions offering a cloud-based platform which enables businesses to proactively connect with consumers through chat, voice and content delivery, across multiple channels and screens, including websites, social media, tablets and mobile devices. The Company’s engagements are driven by insights derived from a broad set of consumer and business data, including historical, behavioral, operational, and third party data. Each engagement is based on proprietary analytics and a real-time understanding of consumer needs and business objectives. The Company’s products, coupled with its domain knowledge and industry expertise, have been proven to maximize the effectiveness of the online channel — by increasing sales, as well as consumer satisfaction and loyalty ratings for its customers, while also enabling its customers to reduce consumer service costs.
	LivePerson monitors and analyzes valuable online consumer behavioral data on behalf of its customers. Spanning the breadth of an online visitor session, starting from an initial keyword search through actions on their customer’s website, and even into a shopping cart and an executed sale, this data enables the Company to develop unique insights into consumer behavior during specific transactions within a customer’s user base.
	The Company’s primary revenue source is from the sale of LivePerson services to businesses of all sizes. The Company also offers an online marketplace that connects independent service providers (“Experts”) who provide information and knowledge for a fee via real-time chat with individual consumers (“Users”).
BASIS OF PRESENTATION	'
	Basis of Presentation
	The accompanying condensed consolidated financial statements as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the consolidated financial position of LivePerson as of June 30, 2014, and the consolidated results of operations, comprehensive loss and cash flows for the interim periods ended June 30, 2014 and 2013. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. The condensed consolidated balance sheet at December 31, 2013 has been derived from audited consolidated financial statements at that date.
	Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 14, 2014.
REVENUE RECOGNITION	'
	Revenue Recognition
	The majority of the Company’s revenue is generated from monthly service revenues and related professional services from the sale of the LivePerson services. Because the Company provides its application as a service, the Company follows the provisions of FASB Accounting Standards Codification (“ASC”) 605-10-S99, “Revenue Recognition” and ASC 605-25, “Revenue Recognition with Multiple-Element Arrangements.” The Company charges a monthly fee, which varies by type of service, the level of customer usage and website traffic, and in some cases, the number of orders placed via the Company’s online engagement solutions.
	For certain of the Company’s larger customers, the Company may provide call center labor through an arrangement with one or more of several qualified vendors. For most of these customers, the Company passes the fee it incurs with the labor provider and its fee for the hosted services through to its customers in the form of a fixed fee for each order placed via the Company’s online engagement solutions. For these Pay for Performance (“PFP”) arrangements, in accordance with ASC 605-45, “Principal Agent Considerations,” the Company records revenue for transactions in which it acts as an agent on a net basis, and revenue for transactions in which it acts as a principal on a gross basis.
	The Company also sells certain of the LivePerson services directly via Internet download. These services are marketed as LiveEngage for small to medium-sized businesses (“SMBs”), and are paid for almost exclusively by credit card. Credit card payments accelerate cash flow and reduce the Company’s collection risk, subject to the merchant bank's right to hold back cash pending settlement of the transactions. Sales of LiveEngage may occur with or without the assistance of an online sales representative, rather than through face-to-face or telephone contact that is typically required for traditional direct sales.
	The Company recognizes monthly service revenue based upon the fee charged for the LivePerson services, provided that there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed or determinable. The Company’s service agreements typically have twelve month terms and, in some cases, are terminable or may terminate upon 30 to 90 days’ notice without penalty. When professional service fees add value to the customer on a standalone basis, the Company recognizes professional service fees upon completion and customer acceptance in accordance with FASB Accounting Standards Update 2009-13. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence; (b) third-party evidence; or (c) best estimated selling price. If a professional services arrangement does not qualify for separate accounting, the Company recognizes the fees, and the related labor costs, ratably over the contracted period.
	For revenue generated from online transactions between Experts and Users, the Company recognizes revenue net of the Expert fees in accordance with ASC 605-45, “Principal Agent Considerations,” due primarily to the fact that the Expert is the primary obligor. Additionally, the Company performs as an agent without any risk of loss for collection, and is not involved in selecting the Expert or establishing the Expert’s fee. The Company collects a fee from the User and retains a portion of the fee, and then remits the balance to the Expert. Revenue from these transactions is recognized when there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed and determinable.
NET LOSS PER SHARE	'
	Net Loss Per Share
	The Company calculates earnings per share (“EPS”) in accordance with the provisions of ASC 260-10 and the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 98. Under ASC 260-10, basic EPS excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. All options, warrants or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.
	Diluted net loss per common share for the three and six months ended June 30, 2014 does not include the effect of options to purchase 11,434,227 shares of common stock as the effect of their inclusion is anti-dilutive. Diluted net loss per common share for the three and six months ended June 30, 2013 does not include the effect of options to purchase 9,344,220 shares of common stock as the effect of their inclusion is anti-dilutive.
	A reconciliation of shares used in calculating basic and diluted earnings per share follows:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Basic	54,189,722			54,806,694			54,766,811			55,332,449

	Effect of assumed exercised options	—			—			—			—

	Diluted	54,189,722			54,806,694			54,766,811			55,332,449

SEGMENT REPORTING	'
	Segment Information
	The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment facilitates real-time online interactions – chat, voice and content delivery across multiple channels and screens for global corporations of all sizes. The Consumer segment facilitates online transactions between Experts and Users and sells its services to consumers. Both segments currently generate their revenue primarily in the United States. The chief operating decision makers evaluate performance, make operating decisions, and allocate resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s condensed consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no inter-segment sales.
	Summarized financial information by segment for the three months ended June 30, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business				Consumer				Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	41,996			$	—			$	—			$	41,996

	Hosted services – Consumer	—				4,539				—				4,539

	Professional services	4,552				—				—				4,552

	Total revenue	46,548				4,539				—				51,087

	Cost of revenue	12,483				678				—				13,161

	Sales and marketing	18,799				1,278				—				20,077

	Amortization of purchased intangibles	206				—				—				206

	Unallocated corporate expenses	—				—				19,124				19,124

	Operating income (loss)	$	15,060			$	2,583			$	(19,124	)		$	(1,481	)

	Summarized financial information by segment for the three months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business				Consumer				Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	36,634			$	—			$	—			$	36,634

	Hosted services – Consumer	—				3,776				—				3,776

	Professional services	2,819				—				—				2,819

	Total revenue	39,453				3,776				—				43,229

	Cost of revenue	9,974				638				—				10,612

	Sales and marketing	14,243				1,256				—				15,499

	Amortization of purchased intangibles	224				—				—				224

	Unallocated corporate expenses	—				—				18,882				18,882

	Operating income (loss)	$	15,012			$	1,882			$	(18,882	)		$	(1,988	)

	Summarized financial information by segment for the six months ended June 30, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business				Consumer				Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	81,677			$	—			$	—			$	81,677

	Hosted services – Consumer	—				8,448				—				8,448

	Professional services	8,790				—				—				8,790

	Total revenue	90,467				8,448				—				98,915

	Cost of revenue	23,627				1,269				—				24,896

Sales and marketing	35,717				2,755				—				38,472

Amortization of purchased intangibles	396				—				—				396

Unallocated corporate expenses	—				—				37,573				37,573

Operating income (loss)	$	30,727			$	4,424			$	(37,573	)		$	(2,422	)

Summarized financial information by segment for the six months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


	Business				Consumer				Corporate				Consolidated
Revenue:
Hosted services – Business	$	72,778			$	—			$	—			$	72,778

Hosted services – Consumer	—				7,395				—				7,395

Professional services	5,552				—				—				5,552

Total revenue	78,330				7,395				—				85,725

Cost of revenue	19,510				1,236				—				20,746

Sales and marketing	27,449				2,528				—				29,977

Amortization of purchased intangibles	448				—				—				448

Unallocated corporate expenses	—				—				37,140				37,140

Operating income (loss)	$	30,923			$	3,631			$	(37,140	)		$	(2,586	)

Geographic Information
The Company is domiciled in the United States and has international operations in the United Kingdom, Asia-Pacific, Latin America and Western Europe, particularly France and Germany. The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):


	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2014				2013				2014				2013

United States	$	33,765			$	28,966			$	64,865			$	57,606

Other Americas (1)	2,172				1,825				4,321				3,792

Total Americas	35,937				30,791				69,186				61,398

EMEA (2)	11,055				8,051				21,569				15,972

APAC (3)	4,095				4,387				8,160				8,355

Total revenue	$	51,087			$	43,229			$	98,915			$	85,725

(1) Canada, Latin America and South America
(2) Europe, the Middle East and Africa (“EMEA”)
(3) Asia-Pacific (“APAC”)
The following table presents the Company's long-lived assets by geographic region for the periods presented (amounts in thousands):


	June 30,				December 31,
	2014				2013
United States	$	39,347			$	34,422

Israel	20,551				22,580

Australia	9,058				9,827

Netherlands	7,696				3,540

United Kingdom	1,423				1,539

Total long-lived assets	$	78,075			$	71,908

GOODWILL AND INTANGIBLE ASSETS	'
	Goodwill and Intangible Assets
	Goodwill
	The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows (amounts in thousands):


		Business				Consumer				Total
	Balance as of December 31, 2013	$	24,700			$	8,024			$	32,724

	Adjustments to goodwill:
	NexGraph acquisition	400				—				400

	Synchronite acquisition	2,659				—				2,659

	Balance as of June 30, 2014	$	27,759			$	8,024			$	35,783

	The changes in the carrying amount of goodwill for the year ended December 31, 2013 are as follows (amounts in thousands):


		Business				Consumer				Total
	Balance as of December 31, 2012	$	24,621			$	8,024			$	32,645

	Adjustments to goodwill:
	Adjustments to Engage acquisition	79				—				79

	Balance as of December 31, 2013	$	24,700			$	8,024			$	32,724

	Intangible Assets
	Intangible assets are summarized as follows (see Note 8) (amounts in thousands):


		As of June 30, 2014
		Gross				Accumulated				Net Carrying Amount				Weighted
		Carrying				Amortization								Average
		Amount												Amortization
														Period
	Amortizing intangible assets:
	Technology	$	19,615			$	(9,416	)		$	10,199			4.1 years

	Customer relationships	5,308				(3,480		)		1,828				3.7 years

	Trade names	787				(725		)		62				2.8 years

	Non-compete agreements	646				(519		)		127				1.3 years

	Patents	475				(210		)		265				11.0 years

	Other	312				(260		)		52				3.0 years

	Total	$	27,143			$	(14,610	)		$	12,533



		As of December 31, 2013
		Gross				Accumulated				Net Carrying Amount				Weighted
		Carrying				Amortization								Average
		Amount												Amortization
														Period
	Amortizing intangible assets:
	Technology	$	18,533			$	(7,678	)		$	10,855			3.8 years

	Customer relationships	5,061				(3,148		)		1,913				3.5 years

	Trade names	725				(725		)		—				2.7 years

Non-compete agreements	486				(486		)		—				1.2 years

Patents	475				(189		)		286				11.0 years

Other	285				(251		)		34				3.0 years

Total	$	25,565			$	(12,477	)		$	13,088


Amortization expense is calculated on a straight-line basis over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $1.1 million and $2.1 million for the three and six months ended June 30, 2014, respectively. Aggregate amortization expense for intangible assets was $0.5 million and $0.9 million for the three and six months ended June 30, 2013, respectively. For the three and six months ended June 30, 2014, a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years are as follows (amounts in thousands):


	Estimated Amortization Expense
2014	$	2,182

2015	3,976

2016	3,514

2017	1,915

2018	194

Thereafter	752

Total	$	12,533

STOCK-BASED COMPENSATION	'
	Stock-Based Compensation
	The Company follows FASB ASC 718-10, “Stock Compensation,” which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized.
	The following table summarizes stock-based compensation expense related to employee stock options under ASC 718-10 included in Company’s statements of operations for the periods presented (amounts in thousands):


		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2014				2013				2014				2013
	Cost of revenue	$	484			$	501			$	844			$	922

	Sales and marketing expense	923				569				1,737				1,315

	Product development expense	931				812				1,611				1,681

	General and administrative expense	869				1,019				1,712				2,034

	Total stock based compensation included in costs and expenses	$	3,207			$	2,901			$	5,904			$	5,952

	The per share weighted average fair value of stock options granted during the three and six months ended June 30, 2014 was $4.76 and $5.06, respectively. The per share weighted average fair value of stock options granted during the three and six months ended June 30, 2013 was $5.72 and $6.16, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Dividend yield	0.00%		0.00%		0.00%		0.00%
	Risk-free interest rate	1.6% - 1.7%		0.7% - 1.0%		1.5% - 1.7%		0.7% - 1.0%
	Expected life (in years)	5		5		5		5
	Historical volatility	52.6% - 53.2%		56.7% - 60.1%		52.6% - 53.7%		56.7% - 60.1%
	A description of the methods used in the significant assumptions used to estimate the fair value of stock-based compensation awards follows:
	Dividend yield – The Company uses 0% as it has never issued dividends and does not anticipate issuing dividends in the near term.
	Risk-free interest rate – The Company uses the market yield on U.S. Treasury securities at five years with constant maturity, representing the current expected life of stock options in years.
	Expected life – The Company uses historical data to estimate the expected life of a stock option.
	Historical volatility – The Company uses a trailing five year from grant date to determine volatility.
	During 1998, the Company established the Stock Option and Restricted Stock Purchase Plan (the “1998 Plan”). Under the 1998 Plan, the Board of Directors could issue incentive stock options or nonqualified stock options to purchase up to 5,850,000 shares of common stock. The 2000 Stock Incentive Plan (the “2000 Plan”) succeeded the 1998 Plan. Under the 2000 Plan, the options which had been outstanding under the 1998 Plan were incorporated in the 2000 Plan increasing the number of shares available for issuance under the plan by approximately 4,150,000, thereby reserving for issuance 10,000,000 shares of common stock in the aggregate.
	The Company established the 2009 Stock Incentive Plan (as amended and restated, the “2009 Plan”) as a successor to the 2000 Plan. Under the 2009 Plan, the options which had been outstanding under the 2000 Plan were incorporated into the 2009 Plan and the Company increased the number of shares available for issuance under the plan by 6,000,000. The Company amended the 2009 stock incentive plan (the “Amended 2009 Plan”) effective June 7, 2012. The Amended 2009 Plan increased the number of shares authorized for issuance under the plan by an additional 4,250,000, thereby reserving for issuance 23,817,744 shares of common stock in the aggregate. Options to acquire common stock granted thereunder have 10-year terms. As of June 30, 2014, approximately 14,300,000 shares of common stock were reserved for issuance under the 2009 Plan (taking into account all option exercises through June 30, 2014).
	As of June 30, 2014, there was approximately $33.7 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 2.0 years.
	In June 2010, the Company’s stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. As of June 30, 2014, approximately 615,000 shares of common stock were reserved for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through June 30, 2014).
	A summary of the Company’s stock option activity and weighted average exercise prices follows:


		Options			Weighted
					Average
					Exercise Price
	Options outstanding at December 31, 2013	9,724,193			$	10.86

	Options granted	2,833,500			10.72

	Options exercised	(286,553	)		8.4

	Options cancelled	(836,916	)		13.27

	Options outstanding at June 30, 2014	11,434,224			10.71

	Options exercisable at June 30, 2014	4,512,864			$	9.15

	The total value of stock options exercised during the six months ended June 30, 2014 was approximately $1.0 million. The total intrinsic value of options exercisable at June 30, 2014 was approximately $12.3 million. The total intrinsic value of nonvested options at June 30, 2014 is approximately $1.7 million. The total intrinsic value of all outstanding options at June 30, 2014 is $14.0 million.
	A summary of the status of the Company’s nonvested shares as of December 31, 2013, and changes during the six months ended June 30, 2014 is as follows:


		Options			Weighted
					Average Grant-
					Date Fair Value
	Nonvested Shares at December 31, 2013	5,633,701			$	6.9

Granted	2,833,500			5.06

Vested	(708,925	)		5.79

Cancelled	(836,916	)		6.73

Nonvested Shares at June 30, 2014	6,921,360			$	5.8

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share	'
	A reconciliation of shares used in calculating basic and diluted earnings per share follows:


		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Basic	54,189,722	54,806,694	54,766,811	55,332,449

	Effect of assumed exercised options	—	—	—	—

	Diluted	54,189,722	54,806,694	54,766,811	55,332,449

Segment_Information_Tables

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Summary of Financial Information by Segment	'
	Summarized financial information by segment for the three months ended June 30, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business			Consumer			Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	41,996		$	—		$	—			$	41,996

	Hosted services – Consumer	—			4,539			—				4,539

	Professional services	4,552			—			—				4,552

	Total revenue	46,548			4,539			—				51,087

	Cost of revenue	12,483			678			—				13,161

	Sales and marketing	18,799			1,278			—				20,077

	Amortization of purchased intangibles	206			—			—				206

	Unallocated corporate expenses	—			—			19,124				19,124

	Operating income (loss)	$	15,060		$	2,583		$	(19,124	)		$	(1,481	)

	Summarized financial information by segment for the three months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business			Consumer			Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	36,634		$	—		$	—			$	36,634

	Hosted services – Consumer	—			3,776			—				3,776

	Professional services	2,819			—			—				2,819

	Total revenue	39,453			3,776			—				43,229

	Cost of revenue	9,974			638			—				10,612

	Sales and marketing	14,243			1,256			—				15,499

	Amortization of purchased intangibles	224			—			—				224

	Unallocated corporate expenses	—			—			18,882				18,882

	Operating income (loss)	$	15,012		$	1,882		$	(18,882	)		$	(1,988	)

	Summarized financial information by segment for the six months ended June 30, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


		Business			Consumer			Corporate				Consolidated
	Revenue:
	Hosted services – Business	$	81,677		$	—		$	—			$	81,677

	Hosted services – Consumer	—			8,448			—				8,448

	Professional services	8,790			—			—				8,790

	Total revenue	90,467			8,448			—				98,915

	Cost of revenue	23,627			1,269			—				24,896

	Sales and marketing	35,717			2,755			—				38,472

Amortization of purchased intangibles	396			—			—				396

Unallocated corporate expenses	—			—			37,573				37,573

Operating income (loss)	$	30,727		$	4,424		$	(37,573	)		$	(2,422	)

Summarized financial information by segment for the six months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):


	Business			Consumer			Corporate				Consolidated
Revenue:
Hosted services – Business	$	72,778		$	—		$	—			$	72,778

Hosted services – Consumer	—			7,395			—				7,395

Professional services	5,552			—			—				5,552

Total revenue	78,330			7,395			—				85,725

Cost of revenue	19,510			1,236			—				20,746

Sales and marketing	27,449			2,528			—				29,977

Amortization of purchased intangibles	448			—			—				448

Unallocated corporate expenses	—			—			37,140				37,140

Operating income (loss)	$	30,923		$	3,631		$	(37,140	)		$	(2,586	)

Revenues Attributable to Domestic and Foreign Operations	'
	The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014				2013

	United States	$	33,765		$	28,966		$	64,865			$	57,606

	Other Americas (1)	2,172			1,825			4,321				3,792

	Total Americas	35,937			30,791			69,186				61,398

	EMEA (2)	11,055			8,051			21,569				15,972

	APAC (3)	4,095			4,387			8,160				8,355

	Total revenue	$	51,087		$	43,229		$	98,915			$	85,725

	(1) Canada, Latin America and South America
	(2) Europe, the Middle East and Africa (“EMEA”)
	(3) Asia-Pacific (“APAC”)
Long-Lived Assets by Geographic Region	'
	The following table presents the Company's long-lived assets by geographic region for the periods presented (amounts in thousands):


		June 30,			December 31,
		2014			2013
	United States	$	39,347		$	34,422

	Israel	20,551			22,580

	Australia	9,058			9,827

	Netherlands	7,696			3,540

	United Kingdom	1,423			1,539

	Total long-lived assets	$	78,075		$	71,908

Goodwill_and_Intangible_Assets1

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Changes in Carrying Amount of Goodwill	'
	The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows (amounts in thousands):


		Business		Consumer			Total
	Balance as of December 31, 2013	$	24,700	$	8,024		$	32,724

	Adjustments to goodwill:
	NexGraph acquisition	400		—			400

	Synchronite acquisition	2,659		—			2,659

	Balance as of June 30, 2014	$	27,759	$	8,024		$	35,783

	The changes in the carrying amount of goodwill for the year ended December 31, 2013 are as follows (amounts in thousands):


		Business		Consumer			Total
	Balance as of December 31, 2012	$	24,621	$	8,024		$	32,645

	Adjustments to goodwill:
	Adjustments to Engage acquisition	79		—			79

	Balance as of December 31, 2013	$	24,700	$	8,024		$	32,724

Summary of Intangible Assets	'
	Intangible assets are summarized as follows (see Note 8) (amounts in thousands):


		As of June 30, 2014
		Gross		Accumulated			Net Carrying Amount		Weighted
		Carrying		Amortization					Average
		Amount							Amortization
									Period
	Amortizing intangible assets:
	Technology	$	19,615	$	(9,416	)	$	10,199	4.1 years

	Customer relationships	5,308		(3,480		)	1,828		3.7 years

	Trade names	787		(725		)	62		2.8 years

	Non-compete agreements	646		(519		)	127		1.3 years

	Patents	475		(210		)	265		11.0 years

	Other	312		(260		)	52		3.0 years

	Total	$	27,143	$	(14,610	)	$	12,533



		As of December 31, 2013
		Gross		Accumulated			Net Carrying Amount		Weighted
		Carrying		Amortization					Average
		Amount							Amortization
									Period
	Amortizing intangible assets:
	Technology	$	18,533	$	(7,678	)	$	10,855	3.8 years

	Customer relationships	5,061		(3,148		)	1,913		3.5 years

	Trade names	725		(725		)	—		2.7 years

	Non-compete agreements	486		(486		)	—		1.2 years

	Patents	475		(189		)	286		11.0 years

	Other	285		(251		)	34		3.0 years

	Total	$	25,565	$	(12,477	)	$	13,088


Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	'
	Estimated amortization expense for the next five years are as follows (amounts in thousands):


		Estimated Amortization Expense
	2014	$	2,182

	2015	3,976

	2016	3,514

	2017	1,915

	2018	194

	Thereafter	752

	Total	$	12,533

Property_and_Equipment_Tables

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Summary of Property and Equipment	'
	The following table presents the detail of property and equipment for the periods presented (amounts in thousands):


		June 30,			December 31,
		2014			2013
	Computer equipment and software	$	49,170		$	45,790

	Furniture, equipment and building improvements	8,452			7,906

		57,622			53,696

	Less: accumulated depreciation	(40,293		)	(36,078		)
	Total	$	17,329		$	17,618

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2014
Payables and Accruals [Abstract]	'
Accrued Liabilities	'
	The following table presents the detail of accrued liabilities for the periods presented (amounts in thousands):


		June 30,		December 31,
		2014		2013
	Payroll and other employee related costs	$	9,804	$	13,090

	Professional services and consulting and other vendor fees	7,451		6,769

	Sales commissions	3,142		1,778

	Contingent earnout (Note 8)	3,220		1,660

	Other	2,635		2,122

	Total	$	26,252	$	25,419

Acquisitions_Tables

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2014
Synchronite, LLC [Member]	'
Business Acquisition [Line Items]	'
Components of Intangible Assets	'
	The components of the intangible assets are as follows (amounts in thousands):


		Weighted		Amount
		Average Useful
		Life (Months)
	Technology	120		$	1,082

	Trade-name	48		62

	Customer relationships	84		247

	Non-compete agreements	36		60

				$	1,451

Look.io [Member]	'
Business Acquisition [Line Items]	'
Purchase Price Preliminary Allocation	'
	Management’s allocation of the purchase price in connection with the LookIO acquisition is as follows (amounts in thousands):


	Intangible assets (technology)	$	767

	Goodwill	2,405

		3,172

	Deferred tax liability	(288		)
	Total purchase price consideration	$	2,884

Engage Pty Ltd. [Member]	'
Business Acquisition [Line Items]	'
Purchase Price Preliminary Allocation	'
	Management’s preliminary allocation of the purchase price in connection with the Engage acquisition is as follows (amounts in thousands):


	Cash	$	386

	Accounts receivable	3,454

	Other current assets	57

	Property and equipment	432

	Other assets	104

	Intangible assets	3,600

	Goodwill	6,152

		14,185

	Liabilities assumed	(2,632		)
	Deferred tax liability	(962		)
	Total purchase price consideration	$	10,591

Components of Intangible Assets	'
	The components of the intangible assets listed in the above table are as follows (amounts in thousands):


		Weighted		Amount
		Average Useful
		Life (Months)
	Technology	36		$	768

	Trade-name	12		95

	Customer relationships	48		2,661

	Non-compete agreements	12		76

				$	3,600

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Fair Value, Assets Measured on Recurring Basis	'
	The Company's assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2014 and December 31, 2013, are summarized as follows (amounts in thousands):


		June 30, 2014									December 31, 2013
		Level 1			Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Assets:
	Cash equivalents:
	Money market funds	$	8,488		$	—	$	—	$	8,488	$	13,674	$	—	$	—	$	13,674

	Total assets	$	8,488		$	—	$	—	$	8,488	$	13,674	$	—	$	—	$	13,674


	Liabilities:
	Contingent earn-out	$	—		$	—	$	3,220	$	3,220	$	—	$	—	$	1,660	$	1,660

	Total liabilities	$	—		$	—	$	3,220	$	3,220	$	—	$	—	$	1,660	$	1,660

Change in Fair Value of Level 3 Liabilities	'
	The changes in fair value of the Level 3 liabilities are as follows (amounts in thousands):


		Contingent Earn-Out
		30-Jun-14			31-Dec-13
	Balance, Beginning of Period	$	1,660		$	1,660

	Synchronite addition (see Note 8)	1,810			—

	Cash payment	(250		)	—

	Balance, End of Period	$	3,220		$	1,660

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Summary of Stock-Based Compensation Expense Related to Employee Stock Options	'
	The following table summarizes stock-based compensation expense related to employee stock options under ASC 718-10 included in Company’s statements of operations for the periods presented (amounts in thousands):


		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2014				2013			2014		2013
	Cost of revenue	$	484			$	501		$	844	$	922
	Cost of revenue	$	484			$	501		$	844	$	922
	Sales and marketing expense	923				569			1,737		1,315
	Sales and marketing expense	923				569			1,737		1,315
	Product development expense	931				812			1,611		1,681
	Product development expense	931				812			1,611		1,681
	General and administrative expense	869				1,019			1,712		2,034
	General and administrative expense	869				1,019			1,712		2,034
	Total stock based compensation included in costs and expenses	$	3,207			$	2,901		$	5,904	$	5,952
		$	3,207			$	2,901		$	5,904	$	5,952
Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model	'
	The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Dividend yield	0.00%		0.00%		0.00%		0.00%
	Risk-free interest rate	1.6% - 1.7%		0.7% - 1.0%		1.5% - 1.7%		0.7% - 1.0%
	Expected life (in years)	5		5		5		5
	Historical volatility	52.6% - 53.2%		56.7% - 60.1%		52.6% - 53.7%		56.7% - 60.1%
Summary of Stock Option Activity and Weighted Average Exercise Prices	'
	A summary of the Company’s stock option activity and weighted average exercise prices follows:


		Options			Weighted
					Average
					Exercise Price
	Options outstanding at December 31, 2013	9,724,193			$	10.86
	Options outstanding at December 31, 2013	9,724,193			$	10.86
	Options granted	2,833,500			10.72
	Options granted	2,833,500			10.72
	Options exercised	(286,553	)		8.4
	Options exercised	(286,553	)		8.4
	Options cancelled	(836,916	)		13.27
	Options cancelled	(836,916	)		13.27
	Options outstanding at June 30, 2014	11,434,224			10.71
	Options outstanding at June 30, 2014	11,434,224			10.71
	Options exercisable at June 30, 2014	4,512,864			$	9.15
	Options exercisable at June 30, 2014	4,512,864			$	9.15
Summary of Status of Nonvested Shares	'
	A summary of the status of the Company’s nonvested shares as of December 31, 2013, and changes during the six months ended June 30, 2014 is as follows:


		Options			Weighted
					Average Grant-
					Date Fair Value
	Nonvested Shares at December 31, 2013	5,633,701			$	6.9
	Nonvested Shares at December 31, 2013	5,633,701			$	6.9
	Granted	2,833,500			5.06
	Granted	2,833,500			5.06
	Vested	(708,925	)		5.79
	Vested	(708,925	)		5.79
	Cancelled	(836,916	)		6.73
	Cancelled	(836,916	)		6.73
	Nonvested Shares at June 30, 2014	6,921,360			$	5.8
	Nonvested Shares at June 30, 2014	6,921,360			$	5.8

Revenue_Recognition_Details

Revenue Recognition (Details)	6 Months Ended
Revenue Recognition (Details)	Jun. 30, 2014
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]	'
Typical service agreements	'12 months
Minimum [Member]	'
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]	'
Typical service agreements termination notice period	'30 days
Maximum [Member]	'
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]	'
Typical service agreements termination notice period	'90 days

Net_Loss_Per_Share_Narrative_D

Net Loss Per Share (Narrative) (Details)	3 Months Ended		6 Months Ended
Net Loss Per Share (Narrative) (Details)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Effect of option to purchase share of common stock on diluted net income per share	11,434,227	9,344,220	11,434,227	9,344,220

Net_Loss_Per_Share_Reconciliat

Net Loss Per Share (Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Basic	54,189,722	54,806,694	54,766,811	55,332,449
Effect of assumed exercised options	0	0	0	0
Diluted	54,189,722	54,806,694	54,766,811	55,332,449

Segment_Information_Narrative_

Segment Information (Narrative) (Details)	6 Months Ended	12 Months Ended
Segment Information (Narrative) (Details)	Jun. 30, 2014	Dec. 31, 2012
Segment Reporting [Abstract]	'	'
Number of operating segments	2	'
Customer Concentration Risk [Member] \| Accounts Receivable [Member]	'	'
Concentration Risk [Line Items]	'	'
Concentration risk, percentage	20.00%	12.00%

Segment_Information_Summary_of

Segment Information (Summary of Financial Information by Segment) (Details) (USD $)	3 Months Ended				6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Revenue	'		'		'		'
Hosted services â€“ Business	$41,996		$36,634		$81,677		$72,778
Hosted services â€“ Consumer	4,539		3,776		8,448		7,395
Professional services	4,552		2,819		8,790		5,552
Revenue	51,087		43,229		98,915		85,725
Cost of revenue	13,161	[1],[2]	10,612	[1],[2]	24,896	[1],[2]	20,746	[1],[2]
Sales and marketing	20,077	[1],[2]	15,499	[1],[2]	38,472	[1],[2]	29,977	[1],[2]
Amortization of purchased intangibles	206		224		396		448
Unallocated corporate expenses	19,124		18,882		37,573		37,140
Operating income (loss)	-1,481		-1,988		-2,422		-2,586
Business [Member]	'		'		'		'
Revenue	'		'		'		'
Hosted services â€“ Business	41,996		36,634		81,677		72,778
Professional services	4,552		2,819		8,790		5,552
Revenue	46,548		39,453		90,467		78,330
Cost of revenue	12,483		9,974		23,627		19,510
Sales and marketing	18,799		14,243		35,717		27,449
Amortization of purchased intangibles	206		224		396		448
Operating income (loss)	15,060		15,012		30,727		30,923
Consumer [Member]	'		'		'		'
Revenue	'		'		'		'
Hosted services â€“ Consumer	4,539		3,776		8,448		7,395
Revenue	4,539		3,776		8,448		7,395
Cost of revenue	678		638		1,269		1,236
Sales and marketing	1,278		1,256		2,755		2,528
Operating income (loss)	2,583		1,882		4,424		3,631
Corporate [Member]	'		'		'		'
Revenue	'		'		'		'
Unallocated corporate expenses	19,124		18,882		37,573		37,140
Operating income (loss)	($19,124)		($18,882)		($37,573)		($37,140)

[1]	Amounts include stock compensation expense as follows: Cost of revenue $484 and $501 for the three months ended June 30, 2014 and 2013, respectively and $844 and $922 for the six months ended June 30, 2014 and 2013, respectively, Sales and marketing $923 and $569 for the three months ended June 30, 2014 and 2013, respectively and $1,737 and $1,315 for the six months ended June 30, 2014 and 2013, respectively, General and administrative $869 and $1,019 for the three months ended June 30, 2014 and 2013, respectively and $1,712 and $2,034 for the six months ended June 30, 2014 and 2013, respectively, and Product development $931 and $812 for the three months ended June 30, 2014 and 2013, respectively and $1,611 and $1,681 for the six months ended June 30, 2014 and 2013, respectively.
[2]	Amounts include depreciation expense as follows: Cost of revenue $1,646 and $1,540 for the three months ended June 30, 2014 and 2013, respectively and $3,044 and $3,120 for the six months ended June 30, 2014 and 2013, respectively, Sales and marketing $201 and $22 for the three months ended June 30, 2014 and 2013, respectively and $408 and $45 for the six months ended June 30, 2014 and 2013, respectively, General and administrative $214 and $261 for the three months ended June 30, 2014 and 2013, respectively and $414 and $523 for the six months ended June 30, 2014 and 2013, respectively, and Product development $172 and $175 for the three months ended June 30, 2014 and 2013, respectively and $349 and $360 for the six months ended June 30, 2014 and 2013, respectively.

Segment_Information_Revenues_A

Segment Information (Revenues Attributable to Domestic and Foreign Operations) (Details) (USD $)	3 Months Ended				6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Segment Reporting Information [Line Items]	'		'		'		'
Revenue	$51,087		$43,229		$98,915		$85,725
United States [Member]	'		'		'		'
Segment Reporting Information [Line Items]	'		'		'		'
Revenue	33,765		28,966		64,865		57,606
Other Americas [Member]	'		'		'		'
Segment Reporting Information [Line Items]	'		'		'		'
Revenue	2,172	[1]	1,825	[1]	4,321	[1]	3,792	[1]
Americas [Member]	'		'		'		'
Segment Reporting Information [Line Items]	'		'		'		'
Revenue	35,937		30,791		69,186		61,398
EMEA [Member]	'		'		'		'
Segment Reporting Information [Line Items]	'		'		'		'
Revenue	11,055	[2]	8,051	[2]	21,569	[2]	15,972	[2]
APAC [Member]	'		'		'		'
Segment Reporting Information [Line Items]	'		'		'		'
Revenue	$4,095	[3]	$4,387	[3]	$8,160	[3]	$8,355	[3]

[1]	Canada, Latin America and South America
[2]	Europe, the Middle East and Africa (â€œEMEAâ€)
[3]	Asia-Pacific (â€œAPACâ€)

Segment_Information_LongLived_

Segment Information (Long-Lived Assets by Geographic Region) (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]	'	'
Total long-lived assets	$78,075	$71,908
United States [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total long-lived assets	39,347	34,422
Israel [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total long-lived assets	20,551	22,580
Australia [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total long-lived assets	9,058	9,827
Netherlands [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total long-lived assets	7,696	3,540
United Kingdom [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total long-lived assets	$1,423	$1,539

Goodwill_and_Intangible_Assets2

Goodwill and Intangible Assets (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'
Aggregate amortization expense for intangible assets	$1,075	$466	$2,133	$884

Goodwill_and_Intangible_Assets3

Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $)

Jun. 30, 2014

Dec. 31, 2013

Dec. 31, 2012

Jun. 30, 2014

Dec. 31, 2013

Dec. 31, 2012

Jun. 30, 2014

Dec. 31, 2013

Dec. 31, 2012

Jun. 30, 2014

Mar. 31, 2014

Jun. 30, 2014

Dec. 31, 2013

Nov. 09, 2012

Dec. 31, 2013

In Thousands, unless otherwise specified

Business [Member]

Consumer [Member]

NexGraph, LLC [Member]

Synchronite, LLC [Member]

Engage Pty Ltd. [Member]

Business [Member]

Goodwill [Roll Forward]

Beginning Balance

$35,783

$32,724

$32,645

$27,759

$24,700

$24,621

$8,024

$400

$6,152

Goodwill acquisitions

400

2,659

Ending Balance

$35,783

$32,724

$32,645

$27,759

$24,700

$24,621

$8,024

$400

$2,650

$6,152

Goodwill_and_Intangible_Assets4

Goodwill and Intangible Assets (Summary of Intangible Assets) (Details) (USD $)	6 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	$27,143	$25,565	'
Accumulated Amortization	-14,610	'	-12,477
Intangibles, net	12,533	'	13,088
Technology [Member]	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	19,615	18,533	'
Accumulated Amortization	-9,416	'	-7,678
Intangibles, net	10,199	'	10,855
Weighted Average Amortization Period	'4 years 1 month 18 days	'	'3 years 9 months 18 days
Customer relationships [Member]	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	5,308	5,061	'
Accumulated Amortization	-3,480	'	-3,148
Intangibles, net	1,828	'	1,913
Weighted Average Amortization Period	'3 years 8 months	'	'3 years 6 months
Trade names [Member]	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	787	725	'
Accumulated Amortization	-725	'	-725
Intangibles, net	62	'	0
Weighted Average Amortization Period	'2 years 9 months 12 days	'	'2 years 8 months 12 days
Non-compete agreements [Member]	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	646	486	'
Accumulated Amortization	-519	'	-486
Intangibles, net	127	'	0
Weighted Average Amortization Period	'1 year 3 months 12 days	'	'1 year 2 months 12 days
Patents [Member]	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	475	475	'
Accumulated Amortization	-210	'	-189
Intangibles, net	265	'	286
Weighted Average Amortization Period	'11 years	'	'11 years
Other [Member]	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'
Gross Carrying Amount	312	285	'
Accumulated Amortization	-260	'	-251
Intangibles, net	$52	'	$34
Weighted Average Amortization Period	'3 years	'	'3 years

Goodwill_and_Intangible_Assets5

Goodwill and Intangible Assets (Future Amortization Expense) (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
2014	$2,182
2015	3,976
2016	3,514
2017	1,915
2018	194
Thereafter	752
Total	$12,533

Property_and_Equipment_Details

Property and Equipment (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]	'	'
Property plant and equipment gross	$57,622	$53,696
Less: accumulated depreciation	-40,293	-36,078
Total	17,329	17,618
Computer Equipment And Software [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property plant and equipment gross	49,170	45,790
Furniture, Equipment and Building Improvements [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property plant and equipment gross	$8,452	$7,906

Accrued_Liabilities_Details

Accrued Liabilities (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]	'	'
Payroll and other employee related costs	$9,804	$13,090
Professional services and consulting and other vendor fees	7,451	6,769
Sales commissions	3,142	1,778
Contingent earnout (Note 8)	3,220	1,660
Other	2,635	2,122
Total	$26,252	$25,419

Acquisitions_Narrative_Details

Acquisitions (Narrative) (Details) (USD $)

6 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

12 Months Ended

1 Months Ended

0 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

31-May-12

Jun. 13, 2012

Jun. 30, 2012

Nov. 09, 2012

Jun. 30, 2014

Dec. 31, 2012

Mar. 31, 2014

Jun. 02, 2014

Jun. 30, 2014

Amadesa Ltd. [Member]

Look.io [Member]

Engage Pty Ltd. [Member]

NexGraph, LLC [Member]

Synchronite, LLC [Member]

Business Acquisition [Line Items]

Business acquisition, acquisition date

31-May-12

13-Jun-12

9-Nov-12

1-Mar-14

2-Jun-14

Purchase price consideration

$2,884,000

$10,591,000

$4,100,000

Acquired intangible asset, aggregate cash consideration

10,300,000

500,000

Intangible assets

500,000

767,000

3,600,000

100,000

1,451,000

1,450,000

Business acquisition, shares of common stock issued

109,517

Cash payment

2,300,000

900,000

Acquisition costs incurred to acquire entity

200,000

500,000

400,000

Goodwill

35,783,000

32,724,000

32,645,000

2,405,000

6,152,000

400,000

2,650,000

Business acquisition, value of shares of common stock issued

2,000,000

Potential shares of common stock in addition to purchase price

30,422

Potential shares of common stock, value

600,000

Weighted average shares outstanding used in basic and diluted net income per share as of the acquisition date

109,517

Assets acquired liabilities assumed, net

800,000

45,000

Potential earn-out consideration

1,600,000

1,800,000

Payment of a portion of potential earn-out consideration amount

$200,000

Acquisitions_Purchase_Price_Pr

Acquisitions (Purchase Price Preliminary Allocation) (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2014	Jun. 02, 2014	Jun. 13, 2012	Nov. 09, 2012
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2012	Synchronite, LLC [Member]	Synchronite, LLC [Member]	Look.io [Member]	Engage Pty Ltd. [Member]
Business Acquisition [Line Items]	'	'	'	'	'	'	'
Cash	'	'	'	'	'	'	$386
Accounts receivable	'	'	'	'	'	'	3,454
Other current assets	'	'	'	'	'	'	57
Property and equipment	'	'	'	'	'	'	432
Other assets	'	'	'	'	'	'	104
Intangible assets	'	'	'	1,450	1,451	767	3,600
Goodwill	35,783	32,724	32,645	2,650	'	2,405	6,152
Total assets acquired	'	'	'	'	'	3,172	14,185
Liabilities assumed	'	'	'	'	'	'	-2,632
Deferred tax liability	'	'	'	'	'	-288	-962
Total purchase price consideration	'	'	'	'	$4,100	$2,884	$10,591

Acquisitions_Components_of_Int

Acquisitions (Components of Intangible Assets) (Details) (USD $)

Jun. 30, 2014

Jun. 02, 2014

Nov. 09, 2012

Jun. 30, 2014

Dec. 31, 2013

Jun. 02, 2014

Nov. 09, 2012

Jun. 30, 2014

Dec. 31, 2013

Jun. 02, 2014

Nov. 09, 2012

Jun. 02, 2014

Nov. 09, 2012

Jun. 30, 2014

Dec. 31, 2013

Jun. 02, 2014

Nov. 09, 2012

In Thousands, unless otherwise specified

Synchronite, LLC [Member]

Engage Pty Ltd. [Member]

Technology [Member]

Trade Names [Member]

Customer Relationships [Member]

Non-compete Agreements [Member]

Synchronite, LLC [Member]

Engage Pty Ltd. [Member]

Synchronite, LLC [Member]

Engage Pty Ltd. [Member]

Synchronite, LLC [Member]

Engage Pty Ltd. [Member]

Synchronite, LLC [Member]

Engage Pty Ltd. [Member]

Business Acquisition [Line Items]

Weighted Average Amortization Period

'4 years 1 month 18 days

'3 years 9 months 18 days

'120 months

'36 months

'2 years 9 months 12 days

'2 years 8 months 12 days

'48 months

'12 months

'84 months

'48 months

'1 year 3 months 12 days

'1 year 2 months 12 days

'36 months

'12 months

Intangible assets

$1,450

$1,451

$3,600

$1,082

$768

$62

$95

$247

$2,661

$60

$76

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Recurring [Member], USD $)

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

In Thousands, unless otherwise specified

Level 1 [Member]

Level 3 [Member]

Total [Member]

Money Market Funds [Member]

Contingent Earn-Out [Member]

Engage [Member]

Synchronite, LLC [Member]

Level 1 [Member]

Total [Member]

Level 3 [Member]

Total [Member]

Contingent Earn-Out [Member]

Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

$8,488

$13,674

$8,488

$13,674

$8,488

$13,674

$8,488

$13,674

Liabilities, Fair Value Disclosure

3,220

1,660

3,220

1,660

3,220

1,660

3,220

1,660

1,400

1,700

Change in contingent consideration

$1,810

$1,800

Fair_Value_Measurements_Level_

Fair Value Measurements Level 3 Liabilities (Details) (Recurring [Member], Level 3 [Member], USD $)	6 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Recurring [Member] \| Level 3 [Member]	'	'
Business Combination, Contingent Consideration Arrangements, Change In Contingent Consideration Liability [Roll Forward]	'	'
Balance, Beginning of Period	$1,660	$1,660
Synchronite addition	1,810	0
Cash payment	-250	0
Balance, End of Period	$3,220	$1,660

Investments_Details

Investments (Details) (USD $)	1 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Feb. 28, 2014	Jun. 30, 2014	Jun. 30, 2013
Investments, All Other Investments [Abstract]	'	'	'
Cost-method investment amount	$3,200	$3,174	$0

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	3 Months Ended		6 Months Ended
Commitments and Contingencies (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Commitments and Contingencies [Line Items]	'	'	'	'
Rental expense for operating leases	$2,400,000	$2,300,000	$4,600,000	$4,800,000
Defined benefit plan employer matching contribution on first five percent of employee compensation	'	'	50.00%	'
Defined benefit plan employer contribution limit	'	'	6,000	'
Defined benefit plan employer contribution vesting period	'	'	'5 years	'
Maximum [Member]	'	'	'	'
Commitments and Contingencies [Line Items]	'	'	'	'
Percentage of employees' eligible compensation for employer matching contribution	'	'	5.00%	'
Salaries And Related Expenses [Member]	'	'	'	'
Commitments and Contingencies [Line Items]	'	'	'	'
Defined benefit plan employer contribution	$300,000	$200,000	$600,000	$500,000

Stockholders_Equity_Narrative_

Stockholders' Equity (Narrative) (Details) (USD $)

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2010

Jun. 30, 2014

Mar. 13, 2014

Dec. 10, 2012

Jul. 23, 2014

Incentive Stock Option [Member]

1998 Plan [Member]

2000 Plan [Member]

1998 and 2000 Plan [Member]

2009 Plan [Member]

2010 Employee Stock Purchase Plan [Member]

2009 Plan [Member]

2012 Stock Repurchase Program [Member]

Subsequent Event [Member]

Incentive Stock Option [Member]

2012 Stock Repurchase Program [Member]

Maximum [Member]

Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]

Common Stock, Shares Authorized

100,000,000

Common stock, shares issued (in shares)

54,297,797

54,484,760

Common stock, shares outstanding (in shares)

54,297,797

54,484,760

Common stock, par value (in dollars per share)

$0.00

Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]

Preferred Stock, Shares Authorized

5,000,000

Preferred stock, shares issued (in shares)

Preferred stock, shares outstanding (in shares)

Preferred stock, par value (in dollars per share)

$0.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average fair value of stock options granted

$4.76

$5.72

$5.06

$6.16

Dividend yield

0.00%

Shares of common stock available for issuance

5,850,000

10,000,000

14,300,000

615,000

1,000,000

23,817,744

Increase in number of shares of common stock available for issuance

4,150,000

6,000,000

4,250,000

Stock option term

'10 years

Unrecognized compensation cost related to nonvested share-based compensation arrangements

$33,700,000

Weighted average recognition period of unrecognized compensation cost

'2 years

Total value of stock options exercised

1,000,000

Total intrinsic value of options exercisable

12,300,000

Total intrinsic value of nonvested options

1,700,000

Total intrinsic value of all outstanding options

14,000,000

Stock repurchase program, authorized amount

40,000,000

30,000,000

50,000,000

Stock repurchased during period, shares

1,113,701

Treasury Stock, Shares

462,912

Stock repurchase program, remaining authorized repurchase amount

$1,100,000

Stockholders_Equity_Summary_of

Stockholders' Equity (Summary of Stock-Based Compensation Expense Related to Employee Stock Options) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock-based compensation expense	$3,207	$2,901	$5,904	$5,952
Cost of revenue [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock-based compensation expense	484	501	844	922
Sales and marketing expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock-based compensation expense	923	569	1,737	1,315
Product development expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock-based compensation expense	931	812	1,611	1,681
General and administrative expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock-based compensation expense	$869	$1,019	$1,712	$2,034

Stockholders_Equity_Weighted_A

Stockholders' Equity (Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected life (in years)	'5 years	'5 years	'5 years	'5 years
Minimum [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Risk-free interest rate	1.60%	0.70%	1.50%	0.70%
Historical volatility	52.60%	56.70%	52.60%	56.70%
Maximum [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Risk-free interest rate	1.70%	1.00%	1.70%	1.00%
Historical volatility	53.20%	60.10%	53.70%	60.10%

Stockholders_Equity_Summary_of1

Stockholders' Equity (Summary of Stock Option Activity and Weighted Average Exercise Prices) (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Options	'
Options outstanding at December 31, 2013	9,724,193
Options granted	2,833,500
Options exercised	-286,553
Options cancelled	-836,916
Options outstanding at June 30, 2014	11,434,224
Options exercisable at June 30, 2014	4,512,864
Weighted Average Exercise Price	'
Options outstanding at December 31, 2013	$10.86
Options granted	$10.72
Options exercised	$8.40
Options cancelled	$13.27
Options outstanding at June 30, 2014	$10.71
Options exercisable at June 30, 2014	$9.15

Stockholders_Equity_Summary_of2

Stockholders' Equity (Summary of Status of Nonvested Shares) (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Shares	'
Nonvested Shares at December 31, 2013	5,633,701
Granted	2,833,500
Vested	-708,925
Cancelled	-836,916
Nonvested Shares at June 30, 2014	6,921,360
Weighted Average Grant-Date Fair Value	'
Nonvested Shares at December 31, 2013	$6.90
Granted	$5.06
Vested	$5.79
Cancelled	$6.73
Nonvested Shares at June 30, 2014	$5.80