Glu Mobile (GLUU) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	GLU MOBILE INC
Entity Central Index Key	1,366,246
Document Type	10-Q
Amendment Flag	false
Document Fiscal Period Focus	Q3
Trading Symbol	gluu
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		137,034,178
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 62,939	$ 102,102
Accounts receivable, net	34,192	21,477
Prepaid royalties	9,049	12,465
Restricted cash, current	602
Prepaid expenses and other assets	30,982	18,986
Total current assets	137,764	155,030
Property and equipment, net	6,425	5,640
Restricted cash, noncurrent		1,312
Long-term prepaid royalties	34,113	31,288
Other long-term assets	3,032	3,506
Intangible assets, net	19,799	25,896
Goodwill	117,447	116,832
Total assets	318,580	339,504
Current liabilities:
Accounts payable	21,305	16,298
Accrued liabilities	1,557	1,788
Accrued compensation	15,537	12,495
Accrued royalties	12,710	8,623
Accrued restructuring	1,138	271
Deferred revenue	74,394	44,865
Total current liabilities	126,641	84,340
Long-term accrued royalties	6,425	20,836
Other long-term liabilities	669	1,514
Total liabilities	133,735	106,690
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.0001 par value; 5,000 shares authorized at September 30, 2017 and December 31, 2016; no shares issued and outstanding at September 30, 2017 and December 31, 2016
Common stock, $0.0001 par value; 250,000 shares authorized at September 30, 2017 and December 31, 2016; 136,214 and 134,001 shares issued and outstanding at September 30, 2017 and December 31, 2016	13	13
Additional paid-in capital	581,385	571,243
Accumulated other comprehensive (loss) income	(10)	246
Accumulated deficit	(396,543)	(338,688)
Total stockholders' equity	184,845	232,814
Total liabilities and stockholders' equity	$ 318,580	$ 339,504

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	136,214	134,001
Common stock, shares outstanding	136,214	134,001

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement
Revenue	$ 81,148	$ 51,381	$ 206,615	$ 154,272
Cost of revenue:
Platform commissions, royalties and other	28,898	18,918	74,519	57,771
Impairment of prepaid royalties and minimum guarantees (including impairment of prepaid royalties and minimum guarantees paid to a related party)	464	29,836	1,256	29,984
Impairment and amortization of intangible assets (including impairment and amortization of intangible assets acquired from a related party)	2,363	7,320	8,796	11,981
Total cost of revenue	31,725	56,074	84,571	99,736
Gross profit	49,423	(4,693)	122,044	54,536
Operating expenses:
Research and development	22,004	20,080	71,025	61,113
Sales and marketing	29,776	10,104	78,015	33,663
General and administrative	8,698	7,011	25,873	22,091
Restructuring charge	1,402	57	6,040	2,279
Total operating expenses	61,880	37,252	180,953	119,146
Loss from operations	(12,457)	(41,945)	(58,909)	(64,610)
Interest and other expense, net:
Interest income	5	12	25	58
Other expense	(276)	(1,665)	(365)	(5,695)
Interest and other expense, net	(271)	(1,653)	(340)	(5,637)
Loss before income taxes	(12,728)	(43,598)	(59,249)	(70,247)
Income tax benefit (expense)	1,057	(129)	1,246	21
Net loss	$ (11,671)	$ (43,727)	$ (58,003)	$ (70,226)
Net loss per common share - basic and diluted
Net loss per common share - basic and diluted	$ (0.09)	$ (0.33)	$ (0.43)	$ (0.54)
Weighted average common shares outstanding - basic and diluted:
Weighted average common shares outstanding - basic and diluted	135,726	133,110	135,047	131,160

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement
Impairment of prepaid royalties and minimum guarantees paid to a related party	$ 9,866	$ 0	$ 9,866
Impairment and amortization of intangible assets acquired from a related party	$ 5,000	$ 0	$ 5,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,671)	$ (43,727)	$ (58,003)	$ (70,226)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(220)	812	(256)	198
Other comprehensive (loss) income	(220)	812	(256)	198
Comprehensive loss	$ (11,891)	$ (42,915)	$ (58,259)	$ (70,028)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (58,003)	$ (70,226)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,447	2,145
Impairment and amortization of intangible assets (including impairment and amortization of intangible assets acquired from a related party)	8,796	11,981
Change in fair value of investments		2,390
Non-cash foreign currency remeasurement loss	3	705
Stock-based compensation	10,639	9,596
Impairment of investments		2,600
Impairment of prepaid royalties and minimum guarantees (including impairment of prepaid royalties and minimum guarantees paid to a related party)	1,256	29,984
Other non-cash adjustments	(1,535)	(29)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(12,581)	3,631
Prepaid royalties	(14,408)	(16,139)
Prepaid expenses and other assets	(12,706)	(1,153)
Accounts payable and other accrued liabilities	5,602	674
Accrued liabilities	939	(14)
Accrued compensation	3,043	2,246
Accrued royalties	3,419	748
Deferred revenue	29,528	1,312
Accrued restructuring	867	40
Other long-term liabilities	(641)	(93)
Net cash used in operating activities	(33,335)	(19,602)
Cash flows from investing activities:
Purchase of property and equipment	(3,651)	(1,702)
Net cash paid for acquisitions	(1,659)	(358)
Decrease in restricted cash	710	336
Investments in Plain Vanilla Corp. and Dairy Free Games, Inc.		(9,500)
Purchase of intangible assets (including purchase of intangible assets from a related party of $0 and $2,500 for the nine months ended September 30, 2017 and September 30, 2016, respectively)		(2,500)
Other investing activities	(810)
Net cash used in investing activities	(5,410)	(13,724)
Cash flows from financing activities:
Proceeds from exercise of stock options and purchases under the ESPP	1,631	2,164
Taxes paid related to net share settlement of equity awards	(1,913)	(1,602)
Net cash used in (generated from) financing activities	(282)	562
Effect of exchange rate changes on cash	(136)	(263)
Net decrease in cash and cash equivalents	(39,163)	(33,027)
Cash and cash equivalents at beginning of period	102,102	180,542
Cash and cash equivalents at end of period	$ 62,939	$ 147,515

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Impairment and amortization of intangible assets acquired from a related party	$ 0	$ 5,000
Impairment of prepaid royalties and minimum guarantees paid to a related party	0	9,866
Purchase of intangible assets from a related party	$ 0	$ 2,500

The Company, Basis of Presentat

The Company, Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
The Company, Basis of Presentation and Summary of Significant Accounting Policies
The Company, Basis of Presentation and Summary of Significant Accounting Policies	Note 1 — The Company, Basis of Presentation and Summary of Significant Accounting Policies Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops, publishes, and markets a portfolio of games designed for users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, Amazon Appstore and others (“Digital Storefronts”). The Company creates games based on its own original brands, as well as third-party licensed brands, properties and other content . Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 10, 2017. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of September 30, 2017 and its unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2017 and 2016, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2016 has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of September 30, 2017 has been derived from the unaudited condensed consolidated financial statements as of that date. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect revenue, operating loss, net loss, cash flows, total assets, total liabilities or stockholders’ equity. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Revenue Recognition The Company generates revenue through in-app purchases within its games on smartphones and tablets, such as Apple’s iPhone and iPad and mobile devices utilizing Google’s Android operating system. Smartphone and tablet games are distributed primarily through Digital Storefronts. Revenue The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the game for virtual goods. The Company recognizes revenue, when persuasive evidence of an arrangement exists, the service has been provided to the user, the price paid by the user is fixed or determinable, and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied requires judgments that may have a significant impact on the timing and amount of revenue the Company reports in each period. For the purposes of determining when the service has been provided to the player, the Company has determined that an implied obligation exists to the paying user to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game, which represents the Company’s best estimate of the estimated average life of virtual goods. The Company sells both consumable and durable virtual goods and receives reports from the Digital Storefronts, which breakdown the various purchases made from their games over a given time period. The Company reviews these reports and determines on a per-item basis whether the purchase was a consumable virtual good or a durable virtual good. Consumable goods are items that can be purchased directly by the player through the Digital Storefront and are consumed at a predetermined time or otherwise have limitations on repeated use, while durable goods are items that remain in the game for as long as the player continues to play. The Company’s revenue from consumable virtual goods has been insignificant over the previous two years. The Company recognizes revenue from consumable virtual goods immediately, since it believes that the delivery obligation has been met and there are no further implicit or explicit performance obligations related to the purchase of that consumable virtual good. Revenue from durable virtual goods are generated through the purchase of virtual coins by users through a Digital Storefront. Players convert the virtual coins within the game to durable virtual goods such as weapons, armor or other accessories to enhance their game-playing experience. The Company believes this represents an implied service obligation, and accordingly, recognizes the revenue from the purchase of these durable virtual goods over the estimated average playing period of paying users. Based on the Company’s analysis, the estimated weighted average useful life of a paying user has been determined to range from three to eight months. If a new game is launched and only a limited period of paying player data is available, then the Company also considers other quantitative and qualitative factors, such as the playing patterns for paying users for other games with similar characteristics. The Company computes its estimated average playing period of paying users at least twice each year. It has examined the playing patterns of paying users across a representative sample of its games across various genres. At the start of the second quarter of 2017, the Company began using a new model to estimate the average playing period for paying users. As the Company continues to execute on its strategy in developing new content for its existing evergreen and growth titles, the Company re-evaluated its existing estimation methodology and concluded that the “survival analysis” model provides for a singular approach to estimating the average playing period of paying users on a title by title basis for the Company’s diverse portfolio of games. The new model is a statistical model that analyzes time duration until one or more events happens. It is a commonly used model in various industries for estimating lifespans. The Company believes this is an appropriate model to estimate the average playing period of paying users for its titles as this model statistically estimates the average playing period of each title by analyzing the historical behavior patterns of paying users. This model requires the stratification of user data into active and inactive monetizing users on a per title basis. Active users are those who are active in the game for the past 30 days as of the evaluation date. The remaining users are considered inactive and deemed to have churned from the game. These users are treated mathematically differently in the model than those who are still active. A distribution curve is then fit to the user data to estimate the average playing period of paying users on a per title basis. The Company has selected a threshold of 120 days from the commercial launch of a title as the minimum number of days of data required for this model. This threshold was deemed to be appropriate as the Company tested the model using lower thresholds which resulted in inconsistencies in the estimate of the average playing period of paying users. For new titles with less than 120 days of data that share similar attributes with an existing title and/or prequel titles, the average playing period will be determined based on the average playing period of that existing title or prequel title, as applicable. For all other titles with less than 120 days of data, the average playing period will be determined based on the average playing period of all other remaining existing titles. The selection of the new model was considered a change in accounting estimates which was implemented in the quarter ended June 30, 2017 and had no material impact on the estimated average playing period of paying users. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future if a titles’ user characteristics change. Any adjustments arising from changes in the estimates of the average playing period for paying users would be applied to the current quarter and prospectively on the basis that such changes are caused by new information that indicates a change in user behavior patterns compared to historical titles. Any changes in the Company’s estimates of the useful life of virtual goods in a certain title may result in revenue being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. The Company also has relationships with certain advertising service providers for advertisements within smartphone games and revenue from these advertising providers is generated through impressions, clickthroughs, banner ads and offers. Revenue is recognized as advertisements are delivered and reported to the Company, an executed contract exists, the price is fixed or determinable and collectability has been reasonably assured. Delivery generally occurs when the advertisement has been displayed or the offer has been completed by the user. The fee received for offer advertisements that result in the user receiving virtual currency for redemption within a game are deferred and recognized over the average playing period of paying users. Other Estimates and Judgments The Company estimates revenue from Digital Storefronts and advertising service providers in the current period when reasonable estimates of these amounts can be made. Certain Digital Storefronts and advertising service providers provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenue and therefore to recognize revenue during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company’s estimates. When the Company receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any significant differences between estimated revenue and actual revenue in the reporting period when the Company determines the actual amounts. Historically, the revenue on a final revenue report has not differed significantly from the reported revenue for the period. Principal Agent Considerations In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, the Company evaluates its Digital Storefront and advertising service provider agreements in order to determine whether or not it is acting as the principal or as an agent when selling its games or when selling advertisements within its games, which it considers in determining if revenue should be reported on a gross or net basis. The Company primarily uses Digital Storefronts for distributing its smartphone games and advertising service providers for serving advertisements within its games. Key indicators that the Company evaluates to reach this determination include: · the terms and conditions of the Company’s contracts with the Digital Storefronts and advertising service providers; · the party responsible for billing and collecting fees from the end-users, including the resolution of billing disputes; · whether the Company is paid a fixed percentage of the arrangement’s consideration or a fixed fee for each game, transaction, or advertisement; · which party sets pricing with the end-user, has the credit risk and provides customer support; and · which party is responsible for the fulfillment of the game or serving of advertisements and determines the specifications of the game or advertisement. Based on the evaluation of the above indicators, the Company has determined that it is generally acting as a principal and is the primary obligor to end-users for smartphone games distributed through digital storefronts and advertisements served through our advertising service providers. Therefore, the Company recognizes revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts and advertising service providers . Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company derives its accounts receivable from revenue earned from customers or through Digital Storefronts located in the United States and other locations outside of the United States. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and, generally, requires no collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. It reviews all other balances quarterly. The Company charges off accounts receivable balances against the allowance when it determines that the amount will not be recovered. The following table summarizes the revenue from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenue: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Apple 54.8 % 52.7 % 53.6 % 52.9 % Google 30.5 % 27.1 % 30.7 % 26.9 % At September 30, 2017, Apple Inc. (“Apple”) accounted for 59.5% and Google Inc. (“Google”) accounted for 16.3% of total accounts receivable. At December 31, 2016, Apple accounted for 43.9%, Google accounted for 22.3%, Jirbo, Inc. (dba AdColony) accounted for 10.8%, and Fyber GmbH accounted for 10.5%, of total accounts receivable . No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The new guidance, which simplifies the accounting and presentation for share-based payments, provides for a number of amendments which impact the accounting for income taxes and the accounting for forfeitures. ASU 2016-09 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and requires varied adoption methods for each respective amendment. The Company adopted this guidance in the first quarter of 2017 and elected to change its policy on accounting for forfeitures and recognize them as they occur using the modified retrospective transition method. This resulted in a cumulative-effect adjustment of $148 between opening accumulated deficit and additional paid in capital balance as of January 1, 2017. In addition, the other amendments related to accounting for income taxes and statutory tax withholding requirements were adopted using a prospective transition method and did not have a material impact on the Company’s consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-19, Technical Corrections and Improvements . The amendments in ASU No. 2016-19 represent changes to clarify the accounting standard codification, correct unintended application of guidance, or make minor improvements to the accounting standards codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. For public companies, the standard is effective immediately for amendments that do not have transition guidance. Amendments that are subject to transition guidance, the effective date is interim and annual reporting periods beginning after December 15, 2016. The Company adopted the standard immediately upon issuance for amendments that do not have transition guidance and effective January 1, 2017 for amendments that are subject to transition guidance. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. It is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. The impact of the new standard on the Company's consolidated financial statements subsequent to adoption will be dependent on the terms and conditions of any modifications made to share-based awards after fiscal 2017. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment . This new accounting standard update simplifies the measurement of goodwill by eliminating the Step 2 impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently assessing the impact of this new guidance . In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) , which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard will be effective in the first quarter of fiscal 2019. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The standard will be effective in the first quarter of fiscal 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . ASU No. 2016-16 requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements . In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU No. 2016-15 addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements . In February 2016, the FASB issued ASU No. 2016-02, Leases . The guidance requires lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. The guidance is effective for annual and interim periods beginning after December 31, 2018. The updated standard mandates a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for a practicability exception. The updated standard is effective for interim and annual reporting periods beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements . In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Under the standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The standard permits the use of either a full retrospective or modified retrospective transition method. The Company has concluded it will apply the modified retrospective approach when it adopts the standard in the first quarter of 2018. The Company has substantially completed the evaluation of the impact of the new standard in relation to the revenue recognition of all of its material revenue arrangements. Based on this evaluation, the Company has determined that the new standard will impact revenue recognized from offer advertisements. Fees received from offer advertisements that result in users receiving virtual currency for redemption within a game will now be recognized at the time such advertisements are delivered and reported to the Company. The performance obligations are satisfied when the advertisement has been displayed. Further, the Company anticipates that it will continue to be considered the principal in its transactions and as the primary obligor to end-users for smartphone games distributed through Digital Storefronts and advertisements served through its advertising service providers. Therefore, revenue related to these arrangements will continue to be recognized on a gross basis if the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available to the Company by the Digital Storefronts and advertising service providers. The Company does not anticipate that its internal control framework will materially change, but rather existing internal controls will be modified and augmented as necessary to implement the new revenue standard. The Company is currently in the process of evaluating the required financial statement disclosures to allow users of its financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with its customers.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2017
Net Loss Per Share
Net Loss Per Share	Note 2 — Net Loss Per Share The Company computes net loss per share by dividing its net loss for the period by the weighted average number of common shares outstanding during the period less the weighted average common shares subject to restrictions imposed by the Company. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net loss $ (11,671) $ (43,727) $ (58,003) $ (70,226) Shares used to compute net loss per share: Weighted average common shares outstanding 135,726 133,110 135,047 132,499 Weighted average common shares subject to restrictions — — — (1,339) Weighted average shares used to compute basic and diluted net loss per share 135,726 133,110 135,047 131,160 Net loss per share - basic and diluted $ (0.09) $ (0.33) $ (0.43) $ (0.54) The weighted average of the following options to purchase common stock, warrants to purchase common stock, unvested shares of common stock subject to restrictions, and restricted stock units (“RSUs”) have been excluded from the computation of net loss per share of common stock for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Warrants to purchase common stock 4,267 4,267 4,267 4,267 Unvested common shares subject to restrictions — — — 1,339 Options to purchase common stock 15,955 6,936 16,214 7,048 RSUs 7,506 7,599 7,936 7,487 27,728 18,802 28,417 20,141

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2017
Business Combinations
Business Combinations	Note 3 — Business Combinations Dairy Free Games, Inc. On August 1, 2017 (the “Merger Date”), the Company completed the acquisition of Dairy Free Games, Inc (“Dairy Free”) by acquiring 100% of its equity pursuant to an Agreement and Plan of Merger (the “Dairy Free Merger Agreement”) by and among the Company, Winterfell Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Company, and Dairy Free. Dairy Free, which is based in California, is building a mobile real-time strategy game. The Company acquired Dairy Free in order to expand its game offerings on smartphones and tablets. Pursuant to the terms of the Dairy Free Merger Agreement, the Company paid $2,000 in cash for the outstanding common stock of Dairy Free. The Company had previously acquired from Dairy Free shares of its series A preferred stock (“Series A Preferred Stock”), as further described below, for $2,000. The fair value of the Series A Preferred Stock as of the Merger Date was determined to be equal to the original investment amount of $2,000. The transaction was accounted for as a business combination under the acquisition method of accounting. The Company allocated the purchase price to the individually identifiable assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over those fair values was recorded as goodwill. The determination of these fair values was based on estimates and assumptions requiring significant judgments. While the Company believes that its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition: Assets acquired: Cash and cash equivalents $ 341 Intangible assets: In-process research and development 2,700 Other current assets 32 Goodwill 573 Total assets 3,646 Liabilities assumed: Deferred tax liability (294) Other accrued liabilities (2) Total liabilities assumed (296) Net acquired assets $ 3,350 In-process research and development included in the above table is finite-lived upon completion, and will be amortized on a straight-line basis over its estimated life of three years, which approximates the pattern in which the economic benefits of the intangible asset are expected to be realized. As of the valuation date, Dairy Free was in the process of developing a game, which the Company estimates will be launched in 2018. Pursuant to ASC 805, the Company incurred and expensed a total of $396 in acquisition and transitional costs associated with the acquisition of Dairy Free during the three months ended September 30, 2017, which were primarily general and administrative related. The Company allocated the residual value of $573 to goodwill. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Dairy Free. Goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the Dairy Free acquisition is not deductible for tax purposes. In January 2016, the Company acquired a minority equity stake and entered into a commercial agreement with Dairy Free. As part of the arrangement, the Company invested $2,000 in Dairy Free’s Series A Preferred Stock. The preferred stock investment was recorded at cost. The Company had also agreed to provide up to $1,000 of recoupable and non-refundable development funding for a mobile game under development by Dairy Free. The development funding was payable in installments upon Dairy Free achieving certain milestones. The development funding was fully recognized as research and development expense as the development activities were performed. The Company had recorded $650 in accrued research and development expenses. The accrued research and development expenses balance of $650 was also determined to be equal to the fair market value as of the date of the merger and was offset against the goodwill amount resulting from the acquisition of Dairy Free. Crowdstar Inc. On November 2, 2016, the Company, acquired shares representing approximately 80.6% of the issued and outstanding voting power of Crowdstar Inc., a Delaware corporation (“Crowdstar”), from Time Warner Inc., Intel Capital Corporation and certain other stockholders of Crowdstar (the “Participating Stockholders”). Crowdstar is a developer of fashion and home decor genre games for mobile devices based in Burlingame, California. The Company acquired Crowdstar to leverage its casual games expertise, assembled workforce and existing mobile games in order to expand the Company’s game offerings on smartphones and tablets. The Company paid approximately $40,794 in cash to the Participating Stockholders in exchange for the acquired shares. In addition, certain drag-along provisions specified in a voting agreement by and among Crowdstar and certain other stockholders of Crowdstar were triggered. Pursuant to the drag-along provisions, certain other stockholders of Crowdstar were required to tender their Crowdstar capital stock to the Company on the same terms as the Participating Stockholders. Upon acquiring over 90% of the issued and outstanding voting power of Crowdstar pursuant to the drag-along provisions, on December 6, 2016, the Company acquired the remaining issued and outstanding shares of Crowdstar in a short-form merger under the laws of the State of Delaware for an additional $4,667 for a total of $45,461 for 100% ownership of Crowdstar. The allocation of the purchase price is based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition: Assets acquired: Cash and cash equivalents $ 4,492 Accounts receivable 3,905 Prepaid expenses 521 Other current assets 34 Fixed assets 315 Intangible assets: Titles, content and technology 16,000 Goodwill 28,776 Total assets 54,043 Liabilities assumed: Accounts payable (584) Accrued liabilities (4,284) Deferred revenue (1,500) Note payable - current portion (1,279) Long term liabilities (935) Total liabilities assumed (8,582) Net acquired assets $ 45,461 Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives of three to five years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Of the total purchase price, $16,000 was allocated to identifiable intangible assets. Pursuant to ASC 805, the Company incurred and expensed a total of $110 and $3,616 of transitional costs associated with the acquisition of Crowdstar during the three and nine months ended September 30, 2017, respectively. These costs included $0 and $2,936 of research and development expense during the three and nine months ended September 30, 2017, respectively, and $110 and $680 of general and administrative expense during the three and nine months ended September 30, 2017, respectively. The Company allocated the residual value of $28,776 to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with ASC 350, Intangibles – Goodwill and Other – Internal-Use Software , (“ASC 350”) , goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the Crowdstar acquisition is not deductible for tax purposes. Plain Vanilla Corp. On December 19, 2016, the Company acquired substantially all of the intangible assets and certain other assets of Plain Vanilla Corp. (“Plain Vanilla”), the developer of the QuizUp interactive software application for mobile devices, based in Reykjavik, Iceland. The Company acquired these assets in order to expand the Company’s game offerings on smartphones and tablets. The Company forgave and canceled $7,500 in aggregate principal amount of convertible promissory notes of Plain Vanilla held by the Company, and all interest thereon, in exchange for acquiring the QuizUp assets and technology and other receivables. The deemed fair value of the consideration as of the acquisition date was determined to be $3,200. The acquired assets represent a business as defined in ASC 805, Business Combinations. The Company has integrated the acquired assets into the Company’s existing business. The asset purchase agreement also contains customary representations, warranties and covenants, including non-competition and indemnification provisions. The allocation of the purchase price is based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the Fair value of purchase consideration: $ Assets acquired: Cash $ Accounts receivable Intangible assets: Title, content and technology Total Assets acquired $ Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives of three years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Of the total purchase price, $1,817 was allocated to identifiable intangible assets. No residual value was allocated to goodwill. Valuation Methodology The Company valued titles, content and technology primarily using the Multi-Period Excess Earnings (“MPEE”) method of the income approach and key assumptions used included: projected revenue, cost of goods sold, and operating expenses for Crowdstar’s legacy titles, the future amortization tax benefit of the legacy titles, and a discount rate of between 20% and 35%. The fair value of the in-process research and development acquired from Dairy Free was determined using the replacement cost method under the cost approach. The replacement cost was estimated based on the historical research and development expenses incurred, adjusted for an estimated developer’s profit and rate of return in accordance with accepted valuation methodologies. The fair value of Crowdstar’s deferred revenue was determined to be $1,500 as of the valuation date. This was valued using the estimated costs including hosting fees and salaries and benefits to support the contractual obligations associated with these revenue, plus a market participant margin. The deferred revenue will be recognized on a straight-line basis over nine months from the valuation date. As of the valuation date, Crowdstar was in process of developing Design Home , which was launched in the fourth quarter of 2016. Pro Forma Financial Information The results of operations for Dairy Free, Crowdstar and Plain Vanilla and the estimated fair market values of the assets acquired and liabilities assumed have been included in the Company’s unaudited consolidated financial statements since their respective dates of acquisition. The unaudited pro forma financial information in the table below summarizes the combined results of the Company’s operations and those of Dairy Free, Crowdstar and Plain Vanilla for the periods shown as if the acquisition of Dairy Free had occurred on January 1, 2016 and the acquisitions of Crowdstar and Plain Vanilla had each occurred on January 1, 2015. The pro forma financial information includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions and other uncertainties. Three months ended Nine months ended 2017 2016 2017 2016 Total pro forma revenue $ 81,148 65,014 $ 206,615 194,163 Pro forma net loss (11,899) (46,629) (58,883) (81,801) Pro forma net loss per share - basic (0.09) (0.35) (0.44) (0.62) Pro forma net loss per share - diluted (0.09) (0.35) (0.44) (0.62)

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Fair Value Measurements	Note 4 — Fair Value Measurements Fair Value Measurements The Company accounts for fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of September 30, 2017, the Company’s financial assets and financial liabilities are presented below at fair value and were classified within the fair value hierarchy as follows (in thousands): Level 1 Level 2 Level 3 September 30, 2017 Financial Assets Cash and cash equivalents $ 62,939 $ — $ — $ 62,939 Restricted cash 602 — — 602 Total Financial Assets $ 63,541 $ — $ — $ 63,541 As of December 31, 2016, the Company’s financial assets and financial liabilities are presented below at fair value and were classified within the fair value hierarchy as follows (in thousands): Level 1 Level 2 Level 3 December 31, 2016 Financial Assets Cash and cash equivalents $ 102,102 $ — $ — $ 102,102 Restricted cash 1,312 — — 1,312 Total Financial Assets $ 103,414 $ — $ — $ 103,414 The Company’s cash and cash equivalents, which were held in operating bank accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. In addition, the Company’s restricted cash is classified within Level 1 of the fair value hierarchy. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected payment or receipt of cash.

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2017
Balance Sheet Components
Balance Sheet Components	Note 5 — Balance Sheet Components Accounts Receivable September 30, December 31, 2017 2016 Accounts receivable $ 35,029 $ 22,314 Less: Allowance for doubtful accounts (837) (837) $ 34,192 $ 21,477 Accounts receivable includes amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions paid to the Digital Storefronts. The Company had no significant bad debts during the three and nine months ended September 30, 2017 and 2016. Prepaid Expenses and Other Assets September 30, December 31, 2017 2016 Deferred platform commission fees $ 19,739 $ 11,571 Deferred royalties 4,009 3,275 Deposits 3,000 960 Other 4,234 3,180 $ 30,982 $ 18,986

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 — Goodwill and Intangible Assets Intangible Assets The Company’s intangible assets were acquired primarily in various acquisitions as well as in connection with the purchase of certain trademarks, brand assets and licensed content. The carrying amounts and accumulated amortization expense of the acquired intangible assets, including the impact of foreign currency exchange translation, at September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value * Expense * Value * Value * Expense * Value * Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 40,422 $ (26,246) $ 14,176 $ 40,942 $ (19,255) $ 21,687 Carrier contract and related relationships 5 yrs 5,000 (3,149) 1,851 14,029 (11,427) 2,602 Licensed content 2.5 - 5 yrs — — — 2,334 (2,334) — Service provider license 9 yrs — — — 212 (212) — Trademarks 7 yrs 5,000 (3,928) 1,072 5,117 (3,510) 1,607 In-process research and development N/A 2,700 — 2,700 — — — Total intangibles assets $ 53,122 $ (33,323) $ 19,799 $ 62,634 $ (36,738) $ 25,896 * Including impact of foreign exchange Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenue. During the three and nine months ended September 30, 2016, the Company recorded an impairment of intangible asset of $4,597 related to the license fee paid to an affiliate of Tencent Holdings Limited (“Tencent”), one of the Company’s principal stockholders, related to the Company’s Rival Fire game due to the underperformance of the title which launched during the third quarter of 2016 and the negligible cash flows anticipated during the remaining contractual life of the license. No impairment of intangible assets was recorded during the three and nine months ended September 30, 2017. During the three months ended September 30, 2017 and 2016, the Company recorded amortization expense in the amounts of $2,363 and $2,723, respectively, in cost of revenue. During the nine months ended September 30, 2017 and 2016, the Company recorded amortization expense in the amounts of $8,796 and $7,384, respectively, in cost of revenue. As of September 30, 2017, total expected future amortization related to intangible assets was as follows: Amortization to Be Included in Cost of Year Ending December 31, Revenue 2017 (remaining 3 months) $ 1,476 2018 5,905 2019 4,960 2020 3,258 2021 and thereafter 1,500 Total intangible assets subject to amortization 17,099 In-process research and development* 2,700 Total intangible assets, net $ 19,799 * The in-process research and development intangible asset will be amortized on a straight-line basis over its estimated life of three years upon successful completion of the game under development. Goodwill Goodwill for the periods indicated was as follows: September 30, 2017 Goodwill $ 189,943 Accumulated impairment losses (73,111) Balance as of December 31, 2016 116,832 Goodwill acquired during the year 573 Effects of foreign currency exchange 42 Balance as of period ended: 117,447 Goodwill 190,558 Accumulated impairment losses (73,111) Balance as of period ended $ 117,447 In accordance with ASC 350, the Company’s goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company performs its annual impairment review of its goodwill balance as of September 30 or more frequently if triggering events occur. The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the goodwill impairment test. ASC 350 requires a multiple-step approach to testing goodwill for impairment for each reporting unit annually, or whenever events or changes in circumstances indicate the fair value of a reporting unit is below its carrying amount. The first step measures for impairment by applying the fair value-based tests at the reporting unit level. The second step (if necessary) measures the amount of impairment by applying the fair value-based tests to individual assets and liabilities within each reporting unit. The fair value of the reporting units is estimated using a combination of the market approach, which utilizes comparable companies’ data, and/or the income approach, which uses discounted cash flows. During the third quarter ended September 30, 2017, the Company performed a Step 0 qualitative assessment and concluded that it was more likely than not that the fair value of the reporting unit was greater than its carrying value, and, as a result, did not proceed to further impairment testing and accordingly did not recognize an impairment of goodwill in the three and nine months ended September 30, 2017.

Investments

Investments	9 Months Ended
	Sep. 30, 2017
Investments
Investments	Note 7 — Investments In January 2016, the Company announced an investment of up to $7,500 in promissory notes convertible into a minority equity stake in Plain Vanilla. $5,000 was paid in January 2016 and the remaining $2,500 was paid in May 2016. As part of the investment, the Company also received a call option to acquire all outstanding equity of Plain Vanilla for 15 months from the closing of the initial investment, unless earlier terminated by the Company, at a pre-agreed price. Plain Vanilla was the Icelandic developer of the mobile game QuizUp, and was financed primarily through equity investments prior to the Company’s acquisition of all of its intangible assets and certain other assets. The Company elected the fair value option to account for its investment in the promissory notes. The call option was recorded at cost. As of the investment date, the fair value of the promissory note and the call option was determined to be $5,100 and $2,400, respectively. As of September 30, 2016, the Company computed the fair value of the promissory notes to be $2,710 and the fair value of the call option to be $0. Due to the decrease in the fair market value of the promissory notes, the Company recorded a charge of $570 and $2,390 in other expense for the three and nine months ended September 30, 2016, respectively. Due to a decline in the forecasted revenue and future cash flow outlook of Plain Vanilla, the fair value of the call option as of September 30, 2016 was estimated to be negligible, which resulted in the Company recording an impairment charge of $60 and $2,400 in other expense for the three months and nine months ended September 30, 2016, respectively. On December 19, 2016, the Company acquired substantially all of the intangible assets and certain other assets of Plain Vanilla in exchange for forgiveness and cancellation of $7,500 in aggregate principal amount of convertible promissory notes and all interest thereon. The call option agreement was terminated as of that date. See “Note 3 – Business Combinations” for additional details. Plain Vanilla, prior to acquisition of its assets by the Company, was a variable interest entity (“VIE”). However, the Company determined that it was not the primary beneficiary of this VIE since the Company did not have the power to direct the activities of this VIE that most significantly impacted its economic performance. This determination was based on the following factors: (i) the development stage of Plain Vanilla’s products; (ii) the Company's inability to exercise control or decision-making power over Plain Vanilla, as well as its lack of involvement in day-to-day operations and management decisions; and (iii) the fact that the call option to acquire Plain Vanilla, before the acquisition of its assets by the Company, was significantly out of the money. The Company was not obligated to provide any explicit or implicit financial or other support to Plain Vanilla other than what was contractually agreed to in the investment agreement and the Company had no exposure to loss beyond its investment in Plain Vanilla prior to the acquisition of its assets. In January 2016, the Company acquired a minority equity stake and entered into a commercial agreement with Dairy Free. As part of the arrangement, the Company invested $2,000 in Dairy Free’s Series A Preferred Stock. The Company also agreed to provide up to $1,000 of recoupable and non-refundable development funding for a mobile game under development by Dairy Free. The development funding was payable in installments upon Dairy Free achieving certain milestones. The development funding was fully recognized as research and development expense as the development activities were performed. The Company recorded $289 and $889 for the three and nine months ended September 30, 2016, respectively, in research and development expense related to this arrangement. On August 1, 2017, the Company acquired 100% of the outstanding equity of Dairy Free pursuant to the Dairy Free Merger Agreement. See “Note 3 – Business Combinations” for additional details. Prior to the acquisition by the Company, Dairy Free was a VIE. However, the Company determined that it was not the primary beneficiary of this VIE since the Company did not have the power to direct the activities of this VIE that most significantly impacted its economic performance. This determination was based on the following factors: (i) the development stage of Dairy Free’s products; and (ii) the Company's inability to exercise control or decision-making power over Dairy Free, based on the Company's ownership percentage and voting rights, as well as its lack of involvement in day-to-day operations and management decisions. The Company was not obligated to provide any explicit or implicit financial or other support to Dairy Free other than what was contractually agreed to in the investment agreement and the Company had no exposure to loss beyond its investment in Dairy Free prior to the acquisition.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 8 — Commitments and Contingencies Leases The Company leases office space under non-cancelable operating facility leases with various expiration dates through November 2027. Rent expense for the three months ended September 30, 2017 and 2016 was $995 and $1,164, respectively. Rent expense for the nine months ended September 30, 2017 and 2016 was $3,191 and $3,697, respectively. The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. The Company has provided deposits for lines of credit totaling $492 to secure its obligations under the leases, which have been classified as restricted cash on the Company’s consolidated balance sheet as of September 30, 2017. In May 2017, the Company entered into a lease for approximately 57,000 square feet of office space for its new San Francisco headquarters (the “Lease”). The term of the Lease began on July 1, 2017 and the obligation to pay rent will begin on the earlier to occur of (1) the date the Company begins conducting business in the leased premises or (2) 14 days following the date of Substantial Completion of the Tenant Improvements (as such terms are defined in the Lease) (the “Rent Commencement Date”). The term of the Lease will expire on the tenth anniversary of the Rent Commencement Date. The Company paid a security deposit of $1,542 in connection with the Lease which has been classified within other long term assets on the Company’s consolidated balance sheet as of September 30, 2017. The security deposit will be reduced to $1,000 on or after April 1, 2019, provided the Company has generated annual bookings of at least $250,000 for two consecutive fiscal years and is otherwise not in default under the Lease. As of September 30, 2017, future minimum lease payments under non-cancelable operating leases were as follows: Minimum Operating Lease Year Ending December 31, Payments 2017 (remaining 3 months) $ 1,462 2018 7,222 2019 6,896 2020 5,873 2021 4,626 2022 and thereafter 29,146 $ 55,225 Minimum Guaranteed Royalties and Developer Commitments The Company has entered into license and publishing agreements with various celebrities, Hollywood studios, athletes, sports organizations, and other well-known brands and properties to develop and publish games for mobile devices. Pursuant to some of these agreements, the Company is required to make minimum guaranteed royalty payments regardless of r evenue generated by the applicable game, which may not be dependent on any deliverables . The significant majority of these minimum guaranteed royalty payments are recoupable against future royalty obligations that would otherwise become payable, or in certain circumstances, where not recoupable, are capitalized and amortized over the lesser of (1) the estimated life of the title incorporating licensed content or (2) the term of the license agreement. At September 30, 2017, future unpaid minimum guaranteed royalty commitments were as follows: Future Future Minimum Minimum Guarantee Developer Year Ending December 31, Commitments Commitments 2017 (remaining 3 months) $ 1,901 $ 1,000 2018 6,256 500 2019 2,600 — 2020 300 — $ 11,057 $ 1,500 The amounts represented in the table above reflect the Company’s minimum cash obligations for the respective calendar years, but do not necessarily represent the periods in which they will be expensed in the Company’s consolidated financial statements. Future developer commitments as of September 30, 2017, were $1,5 00 . These developer commitments reflect the Company’s minimum cash obligations to external software developers (“third-party developers”) to design and develop its software applications but do not necessarily represent the periods in which they will be expensed. The Company advances funds to these third-party developers, in installments, payable upon the completion of specified development milestones, and expenses third-party developer commitments as services are provided. Licensor commitments include $8,868 of commitments due to licensors that have been recorded in current and long-term liabilities and a corresponding amount in current and long-term assets because payment is not contingent upon performance by the licensor. The classification of commitments between long-term and short-term is determined based on the timing of recoupment of earned royalties calculated on projected revenue for the licensed intellectual property games. Each quarter, the Company evaluates the realization of its royalties as well as any recognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenues, cash flows and net margins to evaluate the future realization of prepaid royalties, license fees, and guarantees. This evaluation considers multiple factors, including Level 3 inputs such as the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices published by the Company and its competitors and/or other game platforms (e.g., consoles and personal computers) utilizing the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenues in the period in which impairment is indicated. The Company recorded impairment charges to cost of revenue of $464 and $1,256 related to prepaid guaranteed royalties during the three and nine months ended September 30, 2017, respectively, and $29,836 and $29,984 related to prepaid guaranteed royalties and license fees paid to an affiliate of Tencent related to the Company’s game, Rival Fire , guaranteed royalty payments related to certain of its celebrity license agreements, and certain other prepaid royalties during the three and nine months ended September 30, 2016, respectively. Indemnification Arrangements The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. Accordingly, the Company had recorded no liabilities for these agreements as of September 30, 2017 and December 31, 2016. In the ordinary course of its business, the Company includes standard indemnification provisions in most of its commercial agreements with Digital Storefronts and licensors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types. The Company had recorded no liabilities for these provisions as of September 30, 2017 and December 31, 2016. Contingencies From time to time, the Company is subject to various claims, complaints and legal actions in the normal course of business. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company’s estimate of losses is developed in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. After taking all of the above factors into account, the Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed reasonably probable and the amount can be reasonably estimated. The Company further determines whether an estimated loss from a contingency should be disclosed by assessing whether a material loss is deemed reasonably possible. Such disclosure will include an estimate of the additional loss or range of loss or will state that an estimate cannot be made. The Company does not believe it is party to any currently pending litigation, the outcome of which is reasonably possible to have a material adverse effect on its operations, financial position or liquidity. However, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity
Stockholders' Equity	Note 9 — Stockholders’ Equity Warrants to Purchase Common Stock Warrants outstanding at September 30, 2017 were as follows: Number Weighted of Shares Average Outstanding Exercise Average Under Price per Contractual Warrant Share Term Warrants outstanding, December 31, 2016 4,267 $ 3.61 4.78 Granted - - Exercised - - Warrants outstanding, September 30, 2017 4,267 $ 3.61 4.78 The amount recognized as expense with respect to these warrants was immaterial for the three and nine months ended September 30, 2017 and 2016.

Stock Option and Other Benefit

Stock Option and Other Benefit Plans	9 Months Ended
	Sep. 30, 2017
Stock Option and Other Benefit Plans
Stock Option and Other Benefit Plans	Note 10 — Stock Option and Other Benefit Plans 2007 Equity Incentive Plan In April 2017, the Company’s Board of Directors approved, and in June 2017, the Company’s stockholders approved, the Third Amended and Restated 2007 Equity Incentive Plan (the “Third Amended 2007 Plan”). The Third Amended 2007 Plan includes an increase of 8,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan. It also includes (i) a minimum vesting requirement, pursuant to which each share that is subject to a stock-based award may not vest prior to the first anniversary of the date of grant of such stock-based award (subject to a carve-out of 5% of the shares reserved for issuance under the plan) and (ii) a limitation on the value of stock-based awards that may be granted to any non-employee director in any calendar year. 2007 Employee Stock Purchase Plan In April 2017, the Company’s Board of Directors approved, and in June 2017, the Company’s stockholders approved, the Amended and Restated 2007 Employee Stock Purchase Plan (the “Amended 2007 Purchase Plan”). The Amended 2007 Purchase Plan includes an increase of 4,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan and removal of the expiration date of the plan. Share-Based Awards Available for Grant The calculation of share-based awards available for grant under the Third Amended 2007 Plan and the Company’s 2008 Equity Inducement Plan for the nine months ended September 30, 2017 is as follows: Shares Available Balances at December 31, 2016 3,864 Increase in authorized shares 8,000 Share-based awards granted (1) (5,169) Share-based awards canceled (2) 5,689 Balances at September 30, 2017 12,384 (1) RSUs granted on or after June 6, 2013 but before June 4, 2015 reduced the number of shares available for grant by 1.39 shares for each share subject to an RSU award. RSUs granted on or after June 4, 2015 reduce the number of shares available for grant by 1.32 shares for each share subject to an RSU award. (2) RSUs forfeited and returned to the pool of shares available for grant that were granted on or after June 6, 2013 but before June 4, 2015 increase the pool by 1.39 shares for each share subject to an RSU that is forfeited. RSUs forfeited and returned to the pool of shares available for grant that were granted on or after June 4, 2015 increase the pool by 1.32 shares for each share subject to an RSU that is forfeited. RSU Activity A summary of the Company’s RSU activity for the nine months ended September 30, 2017 is as follows: Weighted Number of Average Aggregate Units Grant Date Intrinsic Outstanding Fair Value Value Awarded and unvested, December 31, 2016 8,224 $ 3.33 Granted 2,300 $ 2.28 Vested (1,968) $ 3.64 Forfeited (1,694) $ 3.03 Awarded and unvested, September 30, 2017 6,862 $ 2.96 Restricted stock units vested and expected to vest at September 30, 2017 6,862 $ 2.96 $ 25,805 Stock Option Activity The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2017 : Options Outstanding Weighted Number Average Average Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2016 15,813 $ 2.74 $ — Options granted 2,184 $ 2.32 Options canceled (2,354) $ 3.04 Options exercised (288) $ 2.88 Balances at September 30, 2017 15,355 $ 2.63 7.05 $ 18,873 Options vested and expected to vest at September 30, 2017 15,355 $ 2.63 7.05 $ 18,873 Options exercisable at September 30, 2017 4,713 $ 3.46 2.56 $ 2,719 The aggregate intrinsic value in the preceding table is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of the Company’s common stock on The NASDAQ Global Market of $3.76 per share as of September 29, 2017 (the last trading day in the quarter). Net cash proceeds from option exercises were immaterial for the nine months ended September 30, 2017 and 2016, respectively. Stock-Based Compensation The cost of RSUs is determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on The NASDAQ Global Market on the date of grant. Compensation cost is amortized on a straight-line basis over the requisite service period. Under ASC 718, Compensation-Stock Compensation (“ASC 718”), the Company estimated the fair value of each option award on the grant date using the Black-Scholes option valuation model and the weighted average assumptions noted in the following table. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Dividend yield — % — % — % — % Risk-free interest rate 1.65 % 0.99 % 1.68 % 1.09 % Expected volatility 59.7 % 54.1 % 56.2 % 55.2 % Expected term (years) 4.00 4.00 4.00 4.00 The Company based its expected volatility on its own historical volatility. The expected term of options gave consideration to early exercises, post-vesting cancellations and the options’ contractual term ranging from six to ten years. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury Constant Maturity Rate as of the date of grant. The weighted-average fair value of stock options granted during the nine months ended September 30, 2017 and 2016 was $1.04 and $1.21 per share, respectively. The following table summarizes the consolidated stock-based compensation expense by line items in the unaudited condensed consolidated statement of operations: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Research and development $ 1,521 $ 1,135 $ 4,520 $ 3,165 Sales and marketing 283 263 823 747 General and administrative 1,771 1,692 5,296 5,684 Total stock-based compensation expense $ 3,575 $ 3,090 $ 10,639 $ 9,596 As of September 30, 2017 , the Company had $17,755 of total unrecognized compensation expense related to RSUs. As of September 30, 2017 , the Company had $8,187 of total unrecognized compensation expense related to stock options. The unrecognized compensation expense related to RSUs will be recognized over a weighted average period of 2.67 years. The unrecognized compensation expense related to stock options will be recognized over a weighted average period of 3.00 years .

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	Note 11 – Income Taxes The Company recorded an income tax benefit of $1,057 and $1,246 for the three and nine months ended September 30, 2017, respectively and an income tax expense of $129 and an income tax benefit of $21 for the three and nine months ended September 30, 2016, respectively. The change in income tax provision was due to the release of certain income tax reserves in relation to winding down of a foreign subsidiary and an increase in deferred tax benefits related to the release of a valuation allowance from an acquisition completed during the current quarter. The income tax rates vary from the Federal and State statutory rates due to the valuation allowances on the Company’s net operating losses, foreign tax rate differences and withholding taxes. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The Company accounts for uncertain tax positions in accordance with ASC 740. As of September 30, 2017 and December 31, 2016, the total amount of unrecognized tax benefits was $12,311 and $11,011, respectively. As of September 30, 2017 and December 31, 2016, approximately $235 and $421, respectively, of unrecognized tax benefits, if recognized, would impact the Company’s effective tax rate. The remaining balance, if recognized, would adjust the Company’s deferred tax assets, each of which are subject to a valuation allowance. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The expense related to interest on uncertain tax positions was immaterial during the three and nine months ended September 30, 2017 and 2016. As of September 30, 2017 and December 31, 2016, the Company had a liability of $118 and $294, respectively, related to interest and penalties for uncertain tax positions. The Company is subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions subject to examination by tax authorities are primarily the State of California, United States, Canada, China, and India. The Company’s federal tax returns are open by statute for tax years 1997 and forward and California tax returns are open by statute for tax years 2003 and forward and could be subject to examination by the tax authorities. The Company’s income tax returns in its international locations are open by statute for tax years 2012 and forward. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2017
Segment Reporting
Segment Reporting	Note 12 — Segment Reporting ASC 280, Segment Reporting (“ASC 280”), establishes standards for reporting information about operating segments. It defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer, who is also chief operating decision maker, makes decisions and manages the Company’s operations as one operating segment . The financial information reviewed by him is included within one operating segment for purposes of allocating resources and evaluating financial performance. Accordingly, the Company reports as a single reportable segment—mobile games. In the case of Digital Storefronts, revenue is attributed to the geographic location where the end-user makes the purchase. The Company generates its revenue in the following geographic regions: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 United States of America $ 62,090 $ 38,432 $ 156,066 $ 113,677 Americas, excluding the United States 4,423 2,408 11,494 6,815 EMEA 8,845 5,665 23,793 19,209 APAC 5,790 4,876 15,262 14,571 $ 81,148 $ 51,381 $ 206,615 $ 154,272 The Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: September 30, December 31, 2017 2016 United States of America $ 4,637 $ 3,768 Rest of the World 1,788 1,872 $ 6,425 $ 5,640

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2017
Restructuring.
Restructuring	Note 13 — Restructuring During 2016 and the first nine months of 2017 , the Company’s management approved restructuring plans to improve the effectiveness and efficiency of its operating model and reduce operating expenses around the world. During the three and nine months ended September 30, 2017, the Company recorded $1,402 and $6,040, respectively, of restructuring charges related to employee and lease termination costs in the Company’s Bellevue, Washington; Long Beach, California; San Francisco, California; Portland, Oregon; and Beijing, China offices. The Company expects to substantially complete payments of employee and lease termination costs associated with these restructurings by the first quarter of 2018. During the three and nine months ended September 30, 2016, the Company recorded $57 and $2,279, respectively, of restructuring charges related to employee termination costs in the Company’s Long Beach, San Francisco, Bellevue, and Beijing, China offices, and lease termination costs for the Company’s Bellevue and Beijing, China offices . Fiscal 2017 and 2016 Restructuring Restructuring Restructuring Restructuring Workforce Facility Other Total Balance as of January 1, 2016 $ 310 $ — $ 31 $ 341 Charges to operations 1,491 740 48 2,279 Non-cash charges/adjustments — 122 — 122 Charges settled in cash (1,801) (591) (79) (2,471) Balance as of December 31, 2016 $ — $ 271 $ — $ 271 Charges to operations 4,367 1,673 — 6,040 Non-cash charges/adjustments 146 49 — 195 Charges settled in cash (4,144) (1,224) — (5,368) Balance as of September 30, 2017 $ 369 $ 769 $ — $ 1,138

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions
Related Party Transactions	Note 14 — Related Party Transactions The Company and an affiliate of Tencent, one of the Company’s principal stockholders, entered into an agreement in November 2015 pursuant to which, the Company agreed, subject to certain conditions, to pay in the aggregate, up to $15,000 in recoupable advanced royalties and non-recoupable license fees related to the Company’s Rival Fire title, which amounts were fully paid by December 31, 2016. During the three months ended September 30, 2016, the Company recorded an impairment of $14,463 for un-recouped advanced royalties and non-recoupable license fees, due to the underperformance of the Company’s Rival Fire title which launched during the third quarter of 2016 and the negligible cash flows anticipated for the remaining contractual life of these assets.

The Company, Basis of Present23

The Company, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
The Company, Basis of Presentation and Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 10, 2017. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of September 30, 2017 and its unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2017 and 2016, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2016 has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of September 30, 2017 has been derived from the unaudited condensed consolidated financial statements as of that date. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect revenue, operating loss, net loss, cash flows, total assets, total liabilities or stockholders’ equity.
Basis of Consolidation	The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
Revenue Recognition	The Company generates revenue through in-app purchases within its games on smartphones and tablets, such as Apple’s iPhone and iPad and mobile devices utilizing Google’s Android operating system. Smartphone and tablet games are distributed primarily through Digital Storefronts. Revenue The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the game for virtual goods. The Company recognizes revenue, when persuasive evidence of an arrangement exists, the service has been provided to the user, the price paid by the user is fixed or determinable, and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied requires judgments that may have a significant impact on the timing and amount of revenue the Company reports in each period. For the purposes of determining when the service has been provided to the player, the Company has determined that an implied obligation exists to the paying user to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game, which represents the Company’s best estimate of the estimated average life of virtual goods. The Company sells both consumable and durable virtual goods and receives reports from the Digital Storefronts, which breakdown the various purchases made from their games over a given time period. The Company reviews these reports and determines on a per-item basis whether the purchase was a consumable virtual good or a durable virtual good. Consumable goods are items that can be purchased directly by the player through the Digital Storefront and are consumed at a predetermined time or otherwise have limitations on repeated use, while durable goods are items that remain in the game for as long as the player continues to play. The Company’s revenue from consumable virtual goods has been insignificant over the previous two years. The Company recognizes revenue from consumable virtual goods immediately, since it believes that the delivery obligation has been met and there are no further implicit or explicit performance obligations related to the purchase of that consumable virtual good. Revenue from durable virtual goods are generated through the purchase of virtual coins by users through a Digital Storefront. Players convert the virtual coins within the game to durable virtual goods such as weapons, armor or other accessories to enhance their game-playing experience. The Company believes this represents an implied service obligation, and accordingly, recognizes the revenue from the purchase of these durable virtual goods over the estimated average playing period of paying users. Based on the Company’s analysis, the estimated weighted average useful life of a paying user has been determined to range from three to eight months. If a new game is launched and only a limited period of paying player data is available, then the Company also considers other quantitative and qualitative factors, such as the playing patterns for paying users for other games with similar characteristics. The Company computes its estimated average playing period of paying users at least twice each year. It has examined the playing patterns of paying users across a representative sample of its games across various genres. At the start of the second quarter of 2017, the Company began using a new model to estimate the average playing period for paying users. As the Company continues to execute on its strategy in developing new content for its existing evergreen and growth titles, the Company re-evaluated its existing estimation methodology and concluded that the “survival analysis” model provides for a singular approach to estimating the average playing period of paying users on a title by title basis for the Company’s diverse portfolio of games. The new model is a statistical model that analyzes time duration until one or more events happens. It is a commonly used model in various industries for estimating lifespans. The Company believes this is an appropriate model to estimate the average playing period of paying users for its titles as this model statistically estimates the average playing period of each title by analyzing the historical behavior patterns of paying users. This model requires the stratification of user data into active and inactive monetizing users on a per title basis. Active users are those who are active in the game for the past 30 days as of the evaluation date. The remaining users are considered inactive and deemed to have churned from the game. These users are treated mathematically differently in the model than those who are still active. A distribution curve is then fit to the user data to estimate the average playing period of paying users on a per title basis. The Company has selected a threshold of 120 days from the commercial launch of a title as the minimum number of days of data required for this model. This threshold was deemed to be appropriate as the Company tested the model using lower thresholds which resulted in inconsistencies in the estimate of the average playing period of paying users. For new titles with less than 120 days of data that share similar attributes with an existing title and/or prequel titles, the average playing period will be determined based on the average playing period of that existing title or prequel title, as applicable. For all other titles with less than 120 days of data, the average playing period will be determined based on the average playing period of all other remaining existing titles. The selection of the new model was considered a change in accounting estimates which was implemented in the quarter ended June 30, 2017 and had no material impact on the estimated average playing period of paying users. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future if a titles’ user characteristics change. Any adjustments arising from changes in the estimates of the average playing period for paying users would be applied to the current quarter and prospectively on the basis that such changes are caused by new information that indicates a change in user behavior patterns compared to historical titles. Any changes in the Company’s estimates of the useful life of virtual goods in a certain title may result in revenue being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. The Company also has relationships with certain advertising service providers for advertisements within smartphone games and revenue from these advertising providers is generated through impressions, clickthroughs, banner ads and offers. Revenue is recognized as advertisements are delivered and reported to the Company, an executed contract exists, the price is fixed or determinable and collectability has been reasonably assured. Delivery generally occurs when the advertisement has been displayed or the offer has been completed by the user. The fee received for offer advertisements that result in the user receiving virtual currency for redemption within a game are deferred and recognized over the average playing period of paying users. Other Estimates and Judgments The Company estimates revenue from Digital Storefronts and advertising service providers in the current period when reasonable estimates of these amounts can be made. Certain Digital Storefronts and advertising service providers provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenue and therefore to recognize revenue during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company’s estimates. When the Company receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any significant differences between estimated revenue and actual revenue in the reporting period when the Company determines the actual amounts. Historically, the revenue on a final revenue report has not differed significantly from the reported revenue for the period. Principal Agent Considerations In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, the Company evaluates its Digital Storefront and advertising service provider agreements in order to determine whether or not it is acting as the principal or as an agent when selling its games or when selling advertisements within its games, which it considers in determining if revenue should be reported on a gross or net basis. The Company primarily uses Digital Storefronts for distributing its smartphone games and advertising service providers for serving advertisements within its games. Key indicators that the Company evaluates to reach this determination include: · the terms and conditions of the Company’s contracts with the Digital Storefronts and advertising service providers; · the party responsible for billing and collecting fees from the end-users, including the resolution of billing disputes; · whether the Company is paid a fixed percentage of the arrangement’s consideration or a fixed fee for each game, transaction, or advertisement; · which party sets pricing with the end-user, has the credit risk and provides customer support; and · which party is responsible for the fulfillment of the game or serving of advertisements and determines the specifications of the game or advertisement. Based on the evaluation of the above indicators, the Company has determined that it is generally acting as a principal and is the primary obligor to end-users for smartphone games distributed through digital storefronts and advertisements served through our advertising service providers. Therefore, the Company recognizes revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts and advertising service providers .
Concentration of Credit Risk	Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company derives its accounts receivable from revenue earned from customers or through Digital Storefronts located in the United States and other locations outside of the United States. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and, generally, requires no collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. It reviews all other balances quarterly. The Company charges off accounts receivable balances against the allowance when it determines that the amount will not be recovered. The following table summarizes the revenue from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenue: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Apple 54.8 % 52.7 % 53.6 % 52.9 % Google 30.5 % 27.1 % 30.7 % 26.9 % At September 30, 2017, Apple Inc. (“Apple”) accounted for 59.5% and Google Inc. (“Google”) accounted for 16.3% of total accounts receivable. At December 31, 2016, Apple accounted for 43.9%, Google accounted for 22.3%, Jirbo, Inc. (dba AdColony) accounted for 10.8%, and Fyber GmbH accounted for 10.5%, of total accounts receivable . No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates.
Recent Accounting Pronouncements	In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The new guidance, which simplifies the accounting and presentation for share-based payments, provides for a number of amendments which impact the accounting for income taxes and the accounting for forfeitures. ASU 2016-09 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and requires varied adoption methods for each respective amendment. The Company adopted this guidance in the first quarter of 2017 and elected to change its policy on accounting for forfeitures and recognize them as they occur using the modified retrospective transition method. This resulted in a cumulative-effect adjustment of $148 between opening accumulated deficit and additional paid in capital balance as of January 1, 2017. In addition, the other amendments related to accounting for income taxes and statutory tax withholding requirements were adopted using a prospective transition method and did not have a material impact on the Company’s consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-19, Technical Corrections and Improvements . The amendments in ASU No. 2016-19 represent changes to clarify the accounting standard codification, correct unintended application of guidance, or make minor improvements to the accounting standards codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. For public companies, the standard is effective immediately for amendments that do not have transition guidance. Amendments that are subject to transition guidance, the effective date is interim and annual reporting periods beginning after December 15, 2016. The Company adopted the standard immediately upon issuance for amendments that do not have transition guidance and effective January 1, 2017 for amendments that are subject to transition guidance. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. It is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. The impact of the new standard on the Company's consolidated financial statements subsequent to adoption will be dependent on the terms and conditions of any modifications made to share-based awards after fiscal 2017. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment . This new accounting standard update simplifies the measurement of goodwill by eliminating the Step 2 impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently assessing the impact of this new guidance . In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) , which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard will be effective in the first quarter of fiscal 2019. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The standard will be effective in the first quarter of fiscal 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . ASU No. 2016-16 requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements . In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU No. 2016-15 addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements . In February 2016, the FASB issued ASU No. 2016-02, Leases . The guidance requires lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. The guidance is effective for annual and interim periods beginning after December 31, 2018. The updated standard mandates a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for a practicability exception. The updated standard is effective for interim and annual reporting periods beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements . In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Under the standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The standard permits the use of either a full retrospective or modified retrospective transition method. The Company has concluded it will apply the modified retrospective approach when it adopts the standard in the first quarter of 2018. The Company has substantially completed the evaluation of the impact of the new standard in relation to the revenue recognition of all of its material revenue arrangements. Based on this evaluation, the Company has determined that the new standard will impact revenue recognized from offer advertisements. Fees received from offer advertisements that result in users receiving virtual currency for redemption within a game will now be recognized at the time such advertisements are delivered and reported to the Company. The performance obligations are satisfied when the advertisement has been displayed. Further, the Company anticipates that it will continue to be considered the principal in its transactions and as the primary obligor to end-users for smartphone games distributed through Digital Storefronts and advertisements served through its advertising service providers. Therefore, revenue related to these arrangements will continue to be recognized on a gross basis if the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available to the Company by the Digital Storefronts and advertising service providers. The Company does not anticipate that its internal control framework will materially change, but rather existing internal controls will be modified and augmented as necessary to implement the new revenue standard. The Company is currently in the process of evaluating the required financial statement disclosures to allow users of its financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with its customers.

The Company, Basis of Present24

The Company, Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
The Company, Basis of Presentation and Summary of Significant Accounting Policies
Schedule of Revenue Concentration	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Apple 54.8 % 52.7 % 53.6 % 52.9 % Google 30.5 % 27.1 % 30.7 % 26.9 %

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Net Loss Per Share
Computation of Net Loss Per Share	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net loss $ (11,671) $ (43,727) $ (58,003) $ (70,226) Shares used to compute net loss per share: Weighted average common shares outstanding 135,726 133,110 135,047 132,499 Weighted average common shares subject to restrictions — — — (1,339) Weighted average shares used to compute basic and diluted net loss per share 135,726 133,110 135,047 131,160 Net loss per share - basic and diluted $ (0.09) $ (0.33) $ (0.43) $ (0.54)
Schedule of Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Warrants to purchase common stock 4,267 4,267 4,267 4,267 Unvested common shares subject to restrictions — — — 1,339 Options to purchase common stock 15,955 6,936 16,214 7,048 RSUs 7,506 7,599 7,936 7,487 27,728 18,802 28,417 20,141

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2017
Business Acquisition [Line Items]
Pro Forma Financial Information	Three months ended Nine months ended 2017 2016 2017 2016 Total pro forma revenue $ 81,148 65,014 $ 206,615 194,163 Pro forma net loss (11,899) (46,629) (58,883) (81,801) Pro forma net loss per share - basic (0.09) (0.35) (0.44) (0.62) Pro forma net loss per share - diluted (0.09) (0.35) (0.44) (0.62)
Dairy Free, Inc.
Business Acquisition [Line Items]
Fair Values of Assets Acquired and Liabilities Assumed	Assets acquired: Cash and cash equivalents $ 341 Intangible assets: In-process research and development 2,700 Other current assets 32 Goodwill 573 Total assets 3,646 Liabilities assumed: Deferred tax liability (294) Other accrued liabilities (2) Total liabilities assumed (296) Net acquired assets $ 3,350
CrowdStar
Business Acquisition [Line Items]
Fair Values of Assets Acquired and Liabilities Assumed	Assets acquired: Cash and cash equivalents $ 4,492 Accounts receivable 3,905 Prepaid expenses 521 Other current assets 34 Fixed assets 315 Intangible assets: Titles, content and technology 16,000 Goodwill 28,776 Total assets 54,043 Liabilities assumed: Accounts payable (584) Accrued liabilities (4,284) Deferred revenue (1,500) Note payable - current portion (1,279) Long term liabilities (935) Total liabilities assumed (8,582) Net acquired assets $ 45,461
Plain Vanilla Corp.
Business Acquisition [Line Items]
Fair Values of Assets Acquired and Liabilities Assumed	Fair value of purchase consideration: $ Assets acquired: Cash $ Accounts receivable Intangible assets: Title, content and technology Total Assets acquired $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Schedule of Assets and Liabilities Presented at Fair Value	As of September 30, 2017, the Company’s financial assets and financial liabilities are presented below at fair value and were classified within the fair value hierarchy as follows (in thousands): Level 1 Level 2 Level 3 September 30, 2017 Financial Assets Cash and cash equivalents $ 62,939 $ — $ — $ 62,939 Restricted cash 602 — — 602 Total Financial Assets $ 63,541 $ — $ — $ 63,541 As of December 31, 2016, the Company’s financial assets and financial liabilities are presented below at fair value and were classified within the fair value hierarchy as follows (in thousands): Level 1 Level 2 Level 3 December 31, 2016 Financial Assets Cash and cash equivalents $ 102,102 $ — $ — $ 102,102 Restricted cash 1,312 — — 1,312 Total Financial Assets $ 103,414 $ — $ — $ 103,414

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2017
Balance Sheet Components
Schedule of Components of Accounts Receivable	Accounts Receivable September 30, December 31, 2017 2016 Accounts receivable $ 35,029 $ 22,314 Less: Allowance for doubtful accounts (837) (837) $ 34,192 $ 21,477
Schedule of Components of Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets September 30, December 31, 2017 2016 Deferred platform commission fees $ 19,739 $ 11,571 Deferred royalties 4,009 3,275 Deposits 3,000 960 Other 4,234 3,180 $ 30,982 $ 18,986

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets
Schedule of Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets	September 30, 2017 December 31, 2016 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value * Expense * Value * Value * Expense * Value * Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 40,422 $ (26,246) $ 14,176 $ 40,942 $ (19,255) $ 21,687 Carrier contract and related relationships 5 yrs 5,000 (3,149) 1,851 14,029 (11,427) 2,602 Licensed content 2.5 - 5 yrs — — — 2,334 (2,334) — Service provider license 9 yrs — — — 212 (212) — Trademarks 7 yrs 5,000 (3,928) 1,072 5,117 (3,510) 1,607 In-process research and development N/A 2,700 — 2,700 — — — Total intangibles assets $ 53,122 $ (33,323) $ 19,799 $ 62,634 $ (36,738) $ 25,896 * Including impact of foreign exchange
Schedule of Expected Amortization Related to Intangible Assets	Amortization to Be Included in Cost of Year Ending December 31, Revenue 2017 (remaining 3 months) $ 1,476 2018 5,905 2019 4,960 2020 3,258 2021 and thereafter 1,500 Total intangible assets subject to amortization 17,099 In-process research and development* 2,700 Total intangible assets, net $ 19,799
Schedule of Goodwill	September 30, 2017 Goodwill $ 189,943 Accumulated impairment losses (73,111) Balance as of December 31, 2016 116,832 Goodwill acquired during the year 573 Effects of foreign currency exchange 42 Balance as of period ended: 117,447 Goodwill 190,558 Accumulated impairment losses (73,111) Balance as of period ended $ 117,447

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases	Minimum Operating Lease Year Ending December 31, Payments 2017 (remaining 3 months) $ 1,462 2018 7,222 2019 6,896 2020 5,873 2021 4,626 2022 and thereafter 29,146 $ 55,225
Schedule of Future Minimum Guaranteed Royalty Commitments	Future Future Minimum Minimum Guarantee Developer Year Ending December 31, Commitments Commitments 2017 (remaining 3 months) $ 1,901 $ 1,000 2018 6,256 500 2019 2,600 — 2020 300 — $ 11,057 $ 1,500

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity
Schedule of Warrants Outstanding	Number Weighted of Shares Average Outstanding Exercise Average Under Price per Contractual Warrant Share Term Warrants outstanding, December 31, 2016 4,267 $ 3.61 4.78 Granted - - Exercised - - Warrants outstanding, September 30, 2017 4,267 $ 3.61 4.78

Stock Option and Other Benefi32

Stock Option and Other Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2017
Stock Option and Other Benefit Plans
Calculation of Share-based Awards Available for Grant	Shares Available Balances at December 31, 2016 3,864 Increase in authorized shares 8,000 Share-based awards granted (1) (5,169) Share-based awards canceled (2) 5,689 Balances at September 30, 2017 12,384 (1) RSUs granted on or after June 6, 2013 but before June 4, 2015 reduced the number of shares available for grant by 1.39 shares for each share subject to an RSU award. RSUs granted on or after June 4, 2015 reduce the number of shares available for grant by 1.32 shares for each share subject to an RSU award. (2) RSUs forfeited and returned to the pool of shares available for grant that were granted on or after June 6, 2013 but before June 4, 2015 increase the pool by 1.39 shares for each share subject to an RSU that is forfeited. RSUs forfeited and returned to the pool of shares available for grant that were granted on or after June 4, 2015 increase the pool by 1.32 shares for each share subject to an RSU that is forfeited.
Summary of Company's RSU Activity	Weighted Number of Average Aggregate Units Grant Date Intrinsic Outstanding Fair Value Value Awarded and unvested, December 31, 2016 8,224 $ 3.33 Granted 2,300 $ 2.28 Vested (1,968) $ 3.64 Forfeited (1,694) $ 3.03 Awarded and unvested, September 30, 2017 6,862 $ 2.96 Restricted stock units vested and expected to vest at September 30, 2017 6,862 $ 2.96 $ 25,805
Summary of Stock Option Activity	Options Outstanding Weighted Number Average Average Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2016 15,813 $ 2.74 $ — Options granted 2,184 $ 2.32 Options canceled (2,354) $ 3.04 Options exercised (288) $ 2.88 Balances at September 30, 2017 15,355 $ 2.63 7.05 $ 18,873 Options vested and expected to vest at September 30, 2017 15,355 $ 2.63 7.05 $ 18,873 Options exercisable at September 30, 2017 4,713 $ 3.46 2.56 $ 2,719
Schedule of Assumptions Used to Estimate Fair Value of Options	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Dividend yield — % — % — % — % Risk-free interest rate 1.65 % 0.99 % 1.68 % 1.09 % Expected volatility 59.7 % 54.1 % 56.2 % 55.2 % Expected term (years) 4.00 4.00 4.00 4.00
Schedule of Stock-Based Compensation Expense by Line Item	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Research and development $ 1,521 $ 1,135 $ 4,520 $ 3,165 Sales and marketing 283 263 823 747 General and administrative 1,771 1,692 5,296 5,684 Total stock-based compensation expense $ 3,575 $ 3,090 $ 10,639 $ 9,596

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting
Schedule of Revenues by Geographic Region	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 United States of America $ 62,090 $ 38,432 $ 156,066 $ 113,677 Americas, excluding the United States 4,423 2,408 11,494 6,815 EMEA 8,845 5,665 23,793 19,209 APAC 5,790 4,876 15,262 14,571 $ 81,148 $ 51,381 $ 206,615 $ 154,272
Schedule of Long-Lived Assets by Geographic Location	September 30, December 31, 2017 2016 United States of America $ 4,637 $ 3,768 Rest of the World 1,788 1,872 $ 6,425 $ 5,640

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Sep. 30, 2017
Restructuring.
Summary of Restructuring Reserve Activity	Fiscal 2017 and 2016 Restructuring Restructuring Restructuring Restructuring Workforce Facility Other Total Balance as of January 1, 2016 $ 310 $ — $ 31 $ 341 Charges to operations 1,491 740 48 2,279 Non-cash charges/adjustments — 122 — 122 Charges settled in cash (1,801) (591) (79) (2,471) Balance as of December 31, 2016 $ — $ 271 $ — $ 271 Charges to operations 4,367 1,673 — 6,040 Non-cash charges/adjustments 146 49 — 195 Charges settled in cash (4,144) (1,224) — (5,368) Balance as of September 30, 2017 $ 369 $ 769 $ — $ 1,138

The Company, Basis of Present35

The Company, Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risks (Details)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Concentration Risk [Line Items]
Consumable virtual goods, period of insignificant revenue				2 years
Active User, Activity Period			30 days
Post-launch period for inclusion in revenue recognition model			120 days
Maximum
Concentration Risk [Line Items]
Durable virtual goods, estimated useful life				8 months
Minimum
Concentration Risk [Line Items]
Durable virtual goods, estimated useful life				3 months
Revenues from customers | Customer Concentration Risk [Member] | Apple
Concentration Risk [Line Items]
Concentration risk percentage from customers	54.80%	52.70%		53.60%	52.90%
Revenues from customers | Customer Concentration Risk [Member] | Google
Concentration Risk [Line Items]
Concentration risk percentage from customers	30.50%	27.10%		30.70%	26.90%
Accounts Receivable | Customer Concentration Risk [Member] | Apple
Concentration Risk [Line Items]
Concentration risk percentage from customers				59.50%		43.90%
Accounts Receivable | Customer Concentration Risk [Member] | Google
Concentration Risk [Line Items]
Concentration risk percentage from customers				16.30%		22.30%
Accounts Receivable | Customer Concentration Risk [Member] | Fyber
Concentration Risk [Line Items]
Concentration risk percentage from customers						10.50%
Accounts Receivable | Customer Concentration Risk [Member] | Ad Colony
Concentration Risk [Line Items]
Concentration risk percentage from customers						10.80%

The Company, Basis of Present36

The Company, Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) $ in Thousands	Jan. 01, 2017USD ($)
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	$ (148)

Net Loss Per Share - Basic and

Net Loss Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic and Diluted [Abstract]
Net loss	$ (11,671)	$ (43,727)	$ (58,003)	$ (70,226)
Shares used to compute net loss per share:
Weighted average common shares outstanding	135,726	133,110	135,047	132,499
Weighted average common shares subject to restrictions				(1,339)
Weighted average shares used to compute basic and diluted net loss per share	135,726	133,110	135,047	131,160
Net loss per common share - basic and diluted	$ (0.09)	$ (0.33)	$ (0.43)	$ (0.54)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Shares (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of diluted net loss per share	27,728	18,802	28,417	20,141
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of diluted net loss per share	4,267	4,267	4,267	4,267
Common shares subject to restrictions
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of diluted net loss per share				1,339
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of diluted net loss per share	15,955	6,936	16,214	7,048
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of diluted net loss per share	7,506	7,599	7,936	7,487

Business Combinations - Dairy F

Business Combinations - Dairy Free Games, Inc. (Details) - USD ($) $ in Thousands	Aug. 01, 2017	Jan. 31, 2016	Sep. 30, 2017	Sep. 30, 2017	Aug. 01, 2017	Dec. 31, 2016
Business Acquisition, Date of Acquisition [Abstract]
Investment amount		$ 2,000
Intangible assets:
Goodwill			$ 117,447	$ 117,447		$ 116,832
Dairy Free, Inc.
Business Acquisition, Date of Acquisition [Abstract]
Voting power percent acquired	100.00%				100.00%
Cash paid	$ 2,000	2,000
Fair value of shares previously acquired	2,000
Assets acquired:
Cash and cash equivalents	341				$ 341
Intangible assets:
Other current assets	32				32
Goodwill	573				573
Total assets acquired	3,646				3,646
Liabilities assumed:
Deferred tax liability	(294)				(294)
Other accrued liabilities	(2)				(2)
Total liabilities assumed	(296)				(296)
Net acquired assets	3,350				3,350
Business acquisition, transitional costs			$ 396
Goodwill expected to be deductible	0				0
Development funding offset against goodwill					650
Dairy Free, Inc. | Maximum
Liabilities assumed:
Development funding commitment		$ 1,000
In-process research and development
Liabilities assumed:
Intangible assets estimated useful life				3 years
In-process research and development | Dairy Free, Inc.
Intangible assets:
Acquired intangible assets	$ 2,700				$ 2,700
Liabilities assumed:
Intangible assets estimated useful life	3 years

Business Combinations - CrowdSt

Business Combinations - CrowdStar, Inc. (Details) - USD ($)	Dec. 06, 2016	Nov. 02, 2016	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Dec. 16, 2016
Intangible assets:
Goodwill			$ 117,447,000	$ 117,447,000	$ 116,832,000
CrowdStar
Business Acquisition, Date of Acquisition [Abstract]
Voting power percent acquired	90.00%	80.60%
Cash paid	$ 4,667,000	$ 40,794,000
Voting power percent intended to be acquired	100.00%
Assets acquired:
Cash and cash equivalents	$ 4,492,000
Accounts receivable	3,905,000
Prepaid expenses	521,000
Other current assets	34,000
Fixed assets	315,000
Intangible assets:
Acquired intangible assets	16,000,000
Goodwill	28,776,000
Total assets acquired	54,043,000
Liabilities assumed:
Accounts payable	(584,000)
Accrued liabilities	(4,284,000)
Deferred revenue	(1,500,000)					$ (1,500,000)
Note payable - current portion	(1,279,000)
Long term liabilities	(935,000)
Total liabilities assumed	(8,582,000)
Net acquired assets	$ 45,461,000
Business acquisition, transitional costs			110,000	3,616,000
Goodwill expected to be deductible			0	$ 0
Titles, content and technology | Minimum
Liabilities assumed:
Intangible assets estimated useful life				3 years	3 years
Titles, content and technology | Maximum
Liabilities assumed:
Intangible assets estimated useful life				5 years	5 years
Titles, content and technology | CrowdStar | Minimum
Liabilities assumed:
Intangible assets estimated useful life				3 years
Titles, content and technology | CrowdStar | Maximum
Liabilities assumed:
Intangible assets estimated useful life				5 years
Research and development | CrowdStar
Liabilities assumed:
Business acquisition, transitional costs			0	$ 2,936,000
General and administrative | CrowdStar
Liabilities assumed:
Business acquisition, transitional costs			$ 110,000	$ 680,000

Business Combinations - Plain V

Business Combinations - Plain Vanilla, Inc. (Details) - USD ($) $ in Thousands	Dec. 19, 2016	Sep. 30, 2017	Dec. 31, 2016
Assets acquired:
Goodwill		$ 117,447	$ 116,832
Plain Vanilla Corp.
Business Acquisition [Line Items]
Forgiveness and cancellation of promissory notes	$ 7,500
Fair value of investment	3,200
Assets acquired:
Cash	1,200
Accounts receivable	183
Acquired intangible assets	1,817
Total assets acquired	$ 3,200
Intangible assets estimated useful life	3 years
Goodwill	$ 0

Business Combinations - Valuati

Business Combinations - Valuation Methodology (Details) - USD ($) $ in Thousands	Dec. 16, 2016	Sep. 30, 2017	Dec. 06, 2016
Minimum
Fair Value Inputs [Abstract]
Fair value assumptions income approach discount rate		20.00%
Maximum
Fair Value Inputs [Abstract]
Fair value assumptions income approach discount rate		35.00%
CrowdStar
Fair Value Inputs [Abstract]
Deferred revenue	$ 1,500		$ 1,500
Deferred revenue recognition period	9 months

Business Combinations - Pro for

Business Combinations - Pro forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Combinations
Total pro forma revenues	$ 81,148	$ 65,014	$ 206,615	$ 194,163
Pro forma net loss	$ (11,899)	$ (46,629)	$ (58,883)	$ (81,801)
Pro forma net loss per share - basic	$ (0.09)	$ (0.35)	$ (0.44)	$ (0.62)
Pro forma net loss per share - diluted	$ (0.09)	$ (0.35)	$ (0.44)	$ (0.62)

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 62,939	$ 102,102
Restricted cash	602	1,312
Total Financial Assets	63,541	103,414
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	62,939	102,102
Restricted cash	602	1,312
Total Financial Assets	$ 63,541	$ 103,414

Balance Sheet Components - Acco

Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Balance Sheet Components
Accounts receivable	$ 35,029	$ 22,314
Less: Allowance for doubtful accounts	(837)	(837)
Accounts receivable, net	$ 34,192	$ 21,477

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid expenses and Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Prepaid Expense and Other Assets, Current [Abstract]
Deferred platform commission fees	$ 19,739	$ 11,571
Deferred royalties	4,009	3,275
Deposits	3,000	960
Other	4,234	3,180
Prepaid expenses and other assets	$ 30,982	$ 18,986

Goodwill And Intangible Asset47

Goodwill And Intangible Assets - Intangible Assets (Details) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value (Including Impact of Foreign Exchange)		$ 53,122,000		$ 62,634,000
Accumulated Amortization Expense (Including Impact of Foreign Exchange)		(33,323,000)		(36,738,000)
Total intangible assets		19,799,000		25,896,000
Impairment of prepaid royalties and minimum guarantees paid to a related party	$ 9,866,000	0	$ 9,866,000
Tencent, a principal stockholder | License fee for Rival Fire
Finite-Lived Intangible Assets [Line Items]
Impairment of prepaid royalties and minimum guarantees paid to a related party	$ 4,597	0	$ 4,597
Titles, content and technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value (Including Impact of Foreign Exchange)		40,422,000		40,942,000
Accumulated Amortization Expense (Including Impact of Foreign Exchange)		(26,246,000)		(19,255,000)
Total intangible assets		$ 14,176,000		$ 21,687,000
Titles, content and technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		3 years		3 years
Titles, content and technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		5 years		5 years
Carrier contract and related relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		5 years		5 years
Gross Carrying Value (Including Impact of Foreign Exchange)		$ 5,000,000		$ 14,029,000
Accumulated Amortization Expense (Including Impact of Foreign Exchange)		(3,149,000)		(11,427,000)
Total intangible assets		$ 1,851,000		$ 2,602,000
Carrier contract and related relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		2 years 6 months		2 years 6 months
Carrier contract and related relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		5 years		5 years
Licensed content
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value (Including Impact of Foreign Exchange)				$ 2,334,000
Accumulated Amortization Expense (Including Impact of Foreign Exchange)				$ (2,334,000)
Service provider license
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		9 years		9 years
Gross Carrying Value (Including Impact of Foreign Exchange)				$ 212,000
Accumulated Amortization Expense (Including Impact of Foreign Exchange)				$ (212,000)
Trademarks
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		7 years		7 years
Gross Carrying Value (Including Impact of Foreign Exchange)		$ 5,000,000		$ 5,117,000
Accumulated Amortization Expense (Including Impact of Foreign Exchange)		(3,928,000)		(3,510,000)
Total intangible assets		$ 1,072,000		$ 1,607,000
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life		3 years
Gross Carrying Value (Including Impact of Foreign Exchange)		$ 2,700,000
Total intangible assets		$ 2,700,000

Goodwill And Intangible Asset48

Goodwill And Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cost of Goods and Services Sold, Depreciation and Amortization [Abstract]
Amortization expense, cost of revenues	$ 2,363	$ 2,723	$ 8,796	$ 7,384
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total intangible assets	19,799		19,799
Finite Lived Intangible Assets Excluding Those Under Development [Member]
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,017	1,476		1,476
2,018	5,905		5,905
2,019	4,960		4,960
2,020	3,258		3,258
2021 and thereafter	1,500		1,500
Total intangible assets	17,099		17,099
In-process research and development
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total intangible assets	$ 2,700		$ 2,700
Finite-Lived Intangible Asset, Useful Life			3 years

Goodwill And Intangible Asset49

Goodwill And Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Goodwill, Gross		$ 190,558	$ 189,943
Accumulated impairment losses		(73,111)	(73,111)
Goodwill, Net, Beginning Balance	$ 117,447	$ 117,447	$ 116,832
Goodwill acquired during the year	573
Effects of foreign currency exchange	42
Goodwill, Net, Ending Balance	$ 117,447

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Dec. 19, 2016	May 31, 2016	Jan. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Aug. 01, 2017
Schedule of Cost-method Investments [Line Items]
Payment for investment							$ 9,500
Investment amount			$ 2,000
Change in fair value of investments							2,390
Impairment charge							2,600
Research and development expense				$ 22,004	$ 20,080	$ 71,025	61,113
Convertible promissory notes
Schedule of Cost-method Investments [Line Items]
Payment for investment		$ 2,500	5,000
Investment amount			7,500
Fair value of investment			$ 5,100		2,710		2,710
Impairment charge					570		2,390
Call Option
Schedule of Cost-method Investments [Line Items]
Call option, term from closing of initial investment			15 months
Fair value of investment			$ 2,400		0		0
Impairment charge					60		2,400
Plain Vanilla Corp.
Schedule of Cost-method Investments [Line Items]
Forgiveness and cancellation of promissory notes	$ 7,500
Dairy Free, Inc.
Schedule of Cost-method Investments [Line Items]
Investment amount			2,000
Development funding commitment			$ 1,000
Research and development expense					$ 289		$ 889
Voting power percent acquired								100.00%

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details) ft² in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2017USD ($)ft²	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Commitments and Contingencies
Rent expense		$ 995	$ 1,164	$ 3,191	$ 3,697
Area of Office | ft²	57
Security deposit		1,542		1,542
Contingent security deposit	$ 1,000
Contingent security deposit, bookings amount	$ 250,000
Contingent security deposit, bookings period	2 years
Deposits for lines of credit to secure obligations under the leases		492		492
Minimum Operating Lease Payments
2,017		1,462		1,462
2,018		7,222		7,222
2,019		6,896		6,896
2,020		5,873		5,873
2,021		4,626		4,626
2022 and thereafter		29,146		29,146
Total		$ 55,225		$ 55,225

Commitments and Contingencies52

Commitments and Contingencies - Minimum Guaranteed Royalties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Future Minimum Guarantee Commitments
Impairment of prepaid royalties and minimum guarantees	$ 464	$ 29,836	$ 1,256	$ 29,984
Guaranteed royalty commitments
Future Minimum Guarantee Commitments
2017 (remaining 3 months)	1,901		1,901
2,018	6,256		6,256
2,019	2,600		2,600
2,020	300		300
Other commitments	11,057		11,057
Impairment of prepaid royalties and minimum guarantees	464	$ 29,836	1,256	$ 29,984
Developer Commitments
Future Minimum Guarantee Commitments
2017 (remaining 3 months)	1,000		1,000
2,018	500		500
Other commitments	1,500		1,500
Agreements With Various Licensors | Current and long-term liabilities
Future Minimum Guarantee Commitments
Other commitments	8,868		8,868
Agreements With Various Licensors | Current and long-term assets
Future Minimum Guarantee Commitments
Recoupment of earned royalties	$ 8,868		$ 8,868

Commitments and Contingencies53

Commitments and Contingencies - Other Commitments (Details) - Indemnification Agreement - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Officers And Directors
Indemnification Agreements [Abstract]
Indemnification liability recorded	$ 0	$ 0
Digital Storefronts
Indemnification Agreements [Abstract]
Indemnification liability recorded	$ 0	$ 0

Stockholders' Equity - Warrants

Stockholders' Equity - Warrants Outstanding Roll Forward (Details) - Warrants to purchase common stock - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Number of Shares Outstanding Under Warrants
Warrants outstanding, beginning balance	4,267
Granted
Exercised
Warrants outstanding, ending balance	4,267	4,267
Weighted Average Exercise Price
Weighted average exercise price, beginning balance	$ 3.61
Granted
Exercised
Weighted average exercise price, ending balance	$ 3.61	$ 3.61
Average Contractual Term
Average contractual term	4 years 9 months 11 days	4 years 9 months 11 days

Stock Option And Other Benefi55

Stock Option And Other Benefit Plans (Details) - shares shares in Thousands	1 Months Ended	9 Months Ended
	Apr. 30, 2017	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance, increased		8,000
2007 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance, increased	8,000
Carve-out percentage	5.00%
2007 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance, increased	4,000

Stock Option And Other Benefi56

Stock Option And Other Benefit Plans - Share-Based Awards Available for Grant (Details) shares in Thousands	1 Months Ended	9 Months Ended
	Apr. 30, 2017shares	Sep. 30, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in authorized shares		8,000
Share-based awards granted		(2,184)
Share-based awards canceled		2,354
2007 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in authorized shares	8,000
Grants after October, 2007 and before June, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pool share reduced for each share granted		1.39
Pool share increased for each share canceled		1.39
Grants before October, 2007 and after June, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pool share reduced for each share granted		1.32
Pool share increased for each share canceled		1.32
2007 Equity Incentive and 2008 Equity Inducement Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available, beginning balances		3,864
Share-based awards granted		(5,169)
Share-based awards canceled		5,689
Shares available, ending balances		12,384

Stock Option And Other Benefi57

Stock Option And Other Benefit Plans - RSU Activity (Details) - RSUs $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded and unvested, Number of Units Outstanding, beginning balance | shares	8,224
Granted, Number of Units Outstanding | shares	2,300
Vested, Number of Units Outstanding | shares	(1,968)
Forfeited, Number of Units Outstanding | shares	(1,694)
Awarded and unvested, Number of Units Outstanding, ending balance | shares	6,862
Vested and expected to vest, number of units | shares	6,862
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ / shares	$ 3.33
Granted, Weighted Average Grant Date Fair Value | $ / shares	2.28
Vested, Weighted Average Grant Date Fair Value | $ / shares	3.64
Forfeited, Weighted Average Grant Date Fair Value | $ / shares	3.03
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $ / shares	2.96
Vested and expected to vest, Weighted Average Grant Date Fair Value | $ / shares	$ 2.96
Vested and expected to vest, Aggregate Intrinsic Value | $	$ 25,805

Stock Option And Other Benefi58

Stock Option And Other Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Stock Option and Other Benefit Plans
Number of shares, beginning balances	15,813
Options granted, number of shares	2,184
Options canceled, number of shares	(2,354)
Options exercised, number of shares	(288)
Number of shares, ending balances	15,355	15,813
Options vested and expected to vest, number of shares	15,355
Options exercisable, number of shares	4,713
Weighted average exercise price, beginning balances	$ 2.74
Options granted, weighted average exercise price	2.32
Options canceled, weighted average exercise price	3.04
Options exercised, weighted average exercise price	2.88
Weighted average exercise price, ending balances	2.63	$ 2.74
Options vested and expected to vest, weighted average exercise price	2.63
Options exercisable, weighted average exercise price	$ 3.46
Weighted average contractual term, options outstanding	7 years 18 days	7 years 4 months 17 days
Weighted average contractual term, options vested and expected	7 years 18 days
Weighted average contractual term, Options exercisable	2 years 6 months 22 days
Aggregate intrinsic value, options outstanding	$ 18,873
Aggregate intrinsic value, Options vested and expected to vest	18,873
Aggregate intrinsic value, options exercisable	$ 2,719
Quoted closing price of Company's common stock	$ 3.76

Stock Option And Other Benefi59

Stock Option And Other Benefit Plans - Weighted Average Assumptions (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Black-Sholes Valuation Assumptions
Risk-free interest rate	1.65%	0.99%	1.68%	1.09%
Expected volatility	59.70%	54.10%	56.20%	55.20%
Expected term (years)	4 years	4 years	4 years	4 years
Options to purchase common stock | Minimum
Stock Based Compensation Additional Details
Contractual term			6 years
Options to purchase common stock | Maximum
Stock Based Compensation Additional Details
Contractual term			10 years

Stock Option And Other Benefi60

Stock Option And Other Benefit Plans - Stock-Based Compensation (Details) - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of stock options granted	$ 1.04	$ 1.21
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	2,300

Stock Option And Other Benefi61

Stock Option And Other Benefit Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,575	$ 3,090	$ 10,639	$ 9,596
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,521	1,135	4,520	3,165
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	283	263	823	747
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,771	$ 1,692	5,296	$ 5,684
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized compensation expense	17,755		$ 17,755
Unrecognized compensation expense recognized over weighted average period			2 years 8 months 1 day
Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized compensation expense	$ 8,187		$ 8,187
Unrecognized compensation expense recognized over weighted average period			3 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Taxes
Income tax expense (benefit)	$ (1,057)	$ 129	$ (1,246)	$ (21)
Unrecognized tax benefits	12,311		12,311		$ 11,011
Unrecognized tax benefits, if recognized, would impact effective tax rate	235		235		421
Liability related to interest and penalties for uncertain tax positions	$ 118		$ 118		$ 294

Segment Reporting - Revenues (D

Segment Reporting - Revenues (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of Operating Segments | segment			1
Number of Reporting Units | segment			1
Revenue	$ 81,148	$ 51,381	$ 206,615	$ 154,272
United States of America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	62,090	38,432	156,066	113,677
Americas, excluding the USA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,423	2,408	11,494	6,815
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	8,845	5,665	23,793	19,209
APAC
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,790	$ 4,876	$ 15,262	$ 14,571

Segment Reporting - PPE (Detail

Segment Reporting - PPE (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net of accumulated depreciation and amortization	$ 6,425	$ 5,640
United States of America
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net of accumulated depreciation and amortization	4,637	3,768
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net of accumulated depreciation and amortization	$ 1,788	$ 1,872

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Restructuring Reserve [Roll Forward]
Beginning Balance			$ 271	$ 341	$ 341
Charges to operations	$ 1,402	$ 57	6,040	2,279	2,279
Non-cash charges/adjustments			195		122
Charges settled in cash			(5,368)		(2,471)
Ending Balance	1,138		1,138		271
Workforce and facility
Restructuring Reserve [Roll Forward]
Charges to operations	1,402	$ 57
Workforce
Restructuring Reserve [Roll Forward]
Beginning Balance				310	310
Charges to operations			4,367		1,491
Non-cash charges/adjustments			146
Charges settled in cash			(4,144)		(1,801)
Ending Balance	369		369
Facility
Restructuring Reserve [Roll Forward]
Beginning Balance			271
Charges to operations			1,673		740
Non-cash charges/adjustments			49		122
Charges settled in cash			(1,224)		(591)
Ending Balance	$ 769		$ 769		271
Other
Restructuring Reserve [Roll Forward]
Beginning Balance				$ 31	31
Charges to operations					48
Charges settled in cash					$ (79)

Related Party Transactions (Det

Related Party Transactions (Details) - Tencent, a principal stockholder - Recoupable Advanced Royalties And Non-recoupable License Fees Agreement - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2015	Sep. 30, 2016
Related Party Transaction [Line Items]
Related party transaction amount	$ 15,000
Impairment of un-recouped advanced royalties and non-recoupable license fees		$ 14,463