Etsy (ETSY) 10-Q 7 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 14, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	ETSY INC
Entity Central Index Key	1,370,637
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		118,257,427

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 226,885	$ 181,592
Short-term investments	60,353	100,494
Accounts receivable, net of allowance for doubtful accounts of $1,999 and $2,278 as of December 31, 2016 and June 30, 2017, respectively	24,990	26,426
Prepaid and other current assets	28,916	15,571
Deferred tax charge—current	0	17,132
Funds receivable and seller accounts	35,084	29,817
Total current assets	376,228	371,032
Restricted cash	5,341	5,341
Property and equipment, net of accumulated depreciation and amortization of $46,153 and $56,667 as of December 31, 2016 and June 30, 2017, respectively	129,074	126,407
Goodwill	37,438	35,657
Intangible assets, net of accumulated amortization of $4,209 and $3,274 as of December 31, 2016 and June 30, 2017, respectively	5,301	7,507
Deferred tax charge—net of current portion	0	34,264
Other assets	935	985
Total assets	554,317	581,193
Current liabilities:
Accounts payable	7,595	10,978
Accrued expenses	30,377	24,179
Capital lease obligations—current	7,345	6,829
Funds payable and amounts due to sellers	35,084	29,817
Deferred revenue	5,789	5,648
Other current liabilities	2,134	6,557
Total current liabilities	88,324	84,008
Capital lease obligations—net of current portion	6,191	5,296
Deferred tax liabilities	65,028	65,068
Facility financing obligation	60,668	57,360
Other liabilities	25,827	24,704
Total liabilities	246,038	236,436
Stockholders’ equity:
Common stock ($0.001 par value, 1,400,000,000 shares authorized as of December 31, 2016 and June 30, 2017; 115,973,039 and 117,819,400 shares issued and outstanding as of December 31, 2016 and June 30, 2017, respectively)	118	116
Additional paid-in capital	462,578	442,510
Accumulated deficit	(156,542)	(116,341)
Accumulated other comprehensive income	2,125	18,472
Total stockholders’ equity	308,279	344,757
Total liabilities and stockholders’ equity	$ 554,317	$ 581,193

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,278	$ 1,999
Accumulated depreciation and amortization	56,667	46,153
Accumulated amortization, intangible assets	$ 3,274	$ 4,209
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,400,000,000	1,400,000,000
Common stock, shares issued (in shares)	117,849,400	115,973,039
Common stock, shares outstanding (in shares)	117,849,400	115,973,039

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 101,692	$ 85,349	$ 198,583	$ 167,196
Cost of revenue	35,724	29,098	70,383	57,009
Gross profit	65,968	56,251	128,200	110,187
Operating expenses:
Marketing	27,521	17,205	50,975	33,052
Product development	21,754	11,840	39,870	24,070
General and administrative	28,411	22,537	51,174	41,613
Total operating expenses	77,686	51,582	142,019	98,735
Income (loss) from operations	(11,718)	4,669	(13,819)	11,452
Other (expense) income:
Interest expense and amortization of deferred financing costs	(2,696)	(1,803)	(5,287)	(2,341)
Interest and other income	543	470	982	911
Foreign exchange (loss) gain	16,103	(6,386)	18,883	1,734
Total other (expense) income	13,950	(7,719)	14,578	304
(Loss) income before income taxes	2,232	(3,050)	759	11,756
(Provision) benefit for income taxes	9,437	(4,261)	10,489	(17,875)
Net (loss) income	$ 11,669	$ (7,311)	$ 11,248	$ (6,119)
Net (loss) income per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.10	$ (0.06)	$ 0.10	$ (0.05)
Diluted (in dollars per share)	$ 0.10	$ (0.06)	$ 0.10	$ (0.05)
Weighted average common shares outstanding:
Basic (in shares)	116,933,216	113,045,888	116,453,790	112,760,531
Diluted (in shares)	120,723,938	113,045,888	120,424,631	112,760,531

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ 11,669	$ (7,311)	$ 11,248	$ (6,119)
Other comprehensive income (loss):
Cumulative translation adjustment	(13,381)	4,011	(16,336)	(3,428)
Unrealized gains (losses) on marketable securities, net of tax	11	16	(11)	108
Total other comprehensive income (loss)	(13,370)	4,027	(16,347)	(3,320)
Comprehensive loss	$ (1,701)	$ (3,284)	$ (5,099)	$ (9,439)

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Balance as of December 31, 2016 at Dec. 31, 2016	$ 344,757	$ 116	$ 442,510	$ (116,341)	$ 18,472
Balance as of December 31, 2016 (in shares) at Dec. 31, 2016		115,973,039
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	11,117		11,117
Exercise of vested options	$ 6,376	$ 2	6,374
Exercise of vested options (in shares)	1,592,327	1,592,327
Vesting of restricted stock units, net of shares withheld	$ (2,029)		(2,029)
Vesting of restricted stock units, net of shares withheld (in shares)		254,034
Stock-based compensation—acquisitions	1,683		1,683
Conversion of liability-classified restricted shares upon vesting	2,838		2,838
Other comprehensive loss	(16,347)				(16,347)
Net income	11,248			11,248
Balance as of June 30, 2017 at Jun. 30, 2017	308,279	$ 118	462,578	(156,542)	$ 2,125
Balance as of June 30, 2017 (in shares) at Jun. 30, 2017		117,819,400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment	$ (51,364)		$ 85	$ (51,449)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net (loss) income	$ 11,248	$ (6,119)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation expense	10,592	6,033
Stock-based compensation expense—acquisitions	2,455	1,472
Depreciation and amortization expense	13,598	9,834
Bad debt expense	863	681
Foreign exchange gain	(18,883)	(1,734)
Amortization of debt issuance costs	110	91
Non-cash interest expense	4,368	1,287
Interest on marketable securities	302	(573)
Loss on disposal of assets	89	766
Amortization of deferred tax charge	0	9,267
Changes in operating assets and liabilities:
Accounts receivable	1,008	135
Funds receivable and seller accounts	(4,436)	(3,630)
Prepaid expenses and other current assets	(13,172)	453
Other assets	(54)	593
Accounts payable	(2,282)	(5,804)
Accrued and other current liabilities	3,928	1,288
Funds payable and amounts due to sellers	4,436	3,630
Deferred revenue	27	469
Other liabilities	1,251	1,442
Net cash provided by operating activities	15,448	19,581
Cash flows from investing activities
Purchases of property and equipment	(3,593)	(26,278)
Development of internal-use software	(6,604)	(5,611)
Purchases of marketable securities	(29,462)	(108,216)
Sales of marketable securities	69,290	19,799
Net cash (used in) provided by investing activities	29,631	(120,306)
Cash flows from financing activities
Repurchase of stock for tax on RSU vesting	(2,028)	(180)
Proceeds from exercise of stock options	6,376	2,894
Payments on capital lease obligations	(3,742)	(2,810)
Deferred payments on acquisition of business	0	(649)
Net cash used in financing activities	(618)	(745)
Effect of exchange rate changes on cash	832	(2,292)
Net (decrease) increase in cash and cash equivalents	45,293	(103,762)
Cash and cash equivalents at beginning of period	181,592	271,244
Cash and cash equivalents at end of period	226,885	167,482
Supplemental non-cash disclosures
Equipment acquired under capital lease obligations	5,152	2,074
Stock-based compensation capitalized in development of capitalized software	525	267
Non-cash additions to development of internal-use software and property and equipment	176	9,800
Payments for Facility Financing Obligation	$ (1,224)	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 1—Basis of Presentation and Summary of Significant Accounting Policies Description of Business Etsy, Inc. (the “Company” or “Etsy”) was incorporated in Delaware in February 2006. Etsy is a global creative commerce platform. Etsy builds markets, services and economic opportunity for creative entrepreneurs. The Company generates revenue primarily from transaction and listing fees, Etsy Payments fees (formerly referred to as Direct Checkout fees), Promoted Listing fees and Shipping Label sales. Basis of Consolidation The consolidated financial statements include the accounts of Etsy and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications For the six months ended June 30, 2016 , the Company reclassified $0.5 million of excess tax benefits from exercise of stock options from cash used in financing activities to cash provided by operating activities to conform to the current year presentation upon adoption of ASU 2016-09, Stock Compensation: Improvements to Employee Share-based Payment Accounting . Unaudited Interim Financial Information The accompanying consolidated balance sheet as of June 30, 2017 , the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2016 and 2017 , the consolidated statements of cash flows for the six months ended June 30, 2016 and 2017 and the consolidated statement of changes in stockholders’ equity for the six months ended June 30, 2017 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position as of June 30, 2017 , results of operations for the three and six months ended June 30, 2016 and 2017 and cash flows for the six months ended June 30, 2016 and 2017 . The results from these interim periods are not necessarily indicative of the results to be anticipated for the full annual period or any future period. The financial data and the other information disclosed in these notes to the consolidated financial statements related to these three and six month periods are unaudited. These unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2017 (the “Annual Report”). During the first quarter of 2017, the Company adopted the accounting principles outlined within ASU 2016-16, Income Taxes: Intra-entity Transfers of Assets other than Inventory removing the requirement to capitalize previously reported deferred tax charges and recognize the associated amortization through the tax provision . There have been no additional material changes in the Company's significant accounting policies from those that were disclosed in the Annual Report. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include revenue recognition, income taxes, website development costs and internal-use software, purchase price allocations for business combinations, valuation of goodwill and intangible assets, leases stock-based compensation and restructuring and other exit costs. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates. Income Taxes The Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate adjusted for discrete items, if any, for relevant interim periods. The Company updates its estimate of the annual effective tax rate each quarter and makes cumulative adjustments if its estimated annual tax rate changes. The Company's quarterly tax provision and quarterly estimate of its annual effective tax rate are subject to significant variations due to several factors, including variability in predicting its pretax and taxable income and the mix of jurisdictions to which those relate, changes of expenses or losses for which tax benefits are not recognized and changes in the laws, regulations and administrative practices of the jurisdictions in which the Company operates. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers , which replaces existing revenue recognition guidance. The new guidance is effective for the annual and interim periods beginning after December 15, 2017. Among other things, the updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company has performed a preliminary assessment of its Markets and Seller Services revenue streams and, while the Company is still finalizing the identification of its performance obligations, it does not expect the adoption of this standard to have a material impact on its revenue recognition on an ongoing basis. The Company is also performing an assessment over data availability and the presentation that will be necessary to meet additional disclosure requirements pursuant to this guidance. In addition, the Company continues to monitor additional changes, modifications, clarifications or interpretations related to this guidance being undertaken by the FASB, which may impact current conclusions. In February 2016, the FASB issued ASU 2016-02, Leases , which requires a reporting entity to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. The new guidance is effective for annual and interim periods beginning after December 15, 2018, and early adoption is permitted. Upon adoption of this standard, the Company expects to recognize, on a discounted basis, its minimum commitments under noncancelable operating leases on the consolidated balance sheets resulting in the recording of right of use assets and lease obligations. The Company is currently evaluating whether there are any additional impacts this guidance will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash , which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The new guidance is effective for the annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements, but does not expect it to have a significant impact on its consolidated financial statements because its balance of restricted cash does not change significantly from period to period. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business , to clarify the definition of a business and provide guidance for evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance is to be applied on a prospective basis and is effective for the annual and interim periods beginning after December 15, 2017. As the adoption of this standard will only impact prospective acquisitions, the Company does not anticipate that this update will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment , to simplify the measurement of goodwill impairment by eliminating step two from the goodwill impairment test. The new guidance requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The new guidance is effective for the annual and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company expects to adopt this guidance in the fourth quarter of 2017 and does not anticipate the update to have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation: Scope of Modification Accounting , to increase comparability and provide clarity on whether changes in the terms or conditions in a share-based payment award require a reporting entity to apply modification guidance per FASB Accounting Standards Codification Topic 718. The new guidance is to be applied on a prospective basis, is effective for the annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-based Payment Accounting , for share-based payment transactions that require a reporting entity to recognize excess tax benefits and deficiencies as income tax expense or benefit in the income statement. The new guidance is effective for annual and interim periods beginning after December 15, 2016, and early adoption is permitted for financial statements as of the beginning of an interim or annual reporting period. The Company adopted this standard in the first quarter of 2017. As a result of this updated guidance, the Company recorded $2.6 million and $2.9 million of excess tax benefits to income tax expense, rather than additional paid-in capital, in the three and six months ended June 30, 2017 . On a prospective basis, the Company has updated its calculation of diluted earnings per share to exclude excess tax benefits previously included in the calculation of assumed proceeds under the treasury stock method. The Company has elected to apply the updated guidance on cash flow classification of excess tax benefits as operating activities using a retrospective approach for consistent year-over-year comparability. The Company has elected to recognize forfeitures as they occur on a modified retrospective basis and to adopt the amendments on statutory withholding requirements on a prospective basis, both of which have no material impact to the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-entity Transfers of Assets other than Inventory , which eliminated the exception that previously existed for the income tax consequences of intra-entity asset transfers other than inventory. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted in annual reporting periods for which interim or annual financial statements have not been issued. The Company has adopted this standard in the first quarter of 2017. The amendments in this update have been applied on a modified retrospective basis through a cumulative effect adjustment recorded to retained earnings as of January 1, 2017 of $51.4 million , which represents the unamortized amount of the deferred tax charge asset on the balance sheet at December 31, 2016. Consequently, the adoption of this standard eliminates the recognition in the tax provision of $17.1 million in each year through 2019, the year through which the deferred tax charge was previously amortizable. Additionally, a deferred tax asset of $21.7 million was recognized which previously qualified for an exception that has been eliminated. A full valuation allowance for that deferred tax asset was also recognized resulting in no impact to the consolidated financial statements.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Note 2—Stock-based Compensation The Company granted stock options and restricted stock units (“RSUs”) under its 2015 Equity Incentive Plan (“2015 Plan”) in the three months ended June 30, 2017 . As permitted by the 2015 Plan, the Board of Directors approved an increase of 5,798,651 shares to the total number of shares available for issuance under the 2015 Plan as of January 3, 2017. At June 30, 2017 , 23,347,913 shares were authorized under the 2015 Plan, and 13,407,187 shares were available for future grant. In the first quarter of 2017, the Company made an accounting policy election to recognize forfeitures as they occur upon adoption of guidance per ASU 2016-09. In reporting periods prior to 2017, the Company estimated forfeitures at the time of grant and revised in subsequent periods as necessary if actual forfeitures differed from estimates. The fair value of options granted in the periods presented below using the Black-Scholes pricing model has been based on the following assumptions: Three Months Ended Six Months Ended 2016 2017 2016 2017 Volatility 44.3% - 44.6% 41.7% - 44.2% 44.2% - 44.6% 41.7% - 44.2% Risk-free interest rate 1.2% - 1.5% 1.9% - 2.0% 1.2% - 1.9% 1.9% - 2.2% Expected term (in years) 5.5 - 6.3 5.5 - 6.3 5.5 - 6.3 5.5 - 6.3 Dividend rate —% —% —% —% The following table summarizes the activity for the Company's options during the period presented below: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contract Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2016 9,339,567 $ 7.89 Granted 5,473,601 10.77 Exercised (1,592,327 ) 4.00 Forfeited/Canceled (718,334 ) 10.80 Outstanding at June 30, 2017 12,502,507 9.47 6.60 $ 71,404 Total exercisable at June 30, 2017 6,069,330 7.87 3.59 45,027 The following table summarizes the weighted average grant date fair value of options granted, intrinsic value of options exercised and fair value of awards vested in the three and six months ended June 30, 2016 and 2017 (in thousands except per share amounts): Three Months Ended Six Months Ended 2016 2017 2016 2017 Weighted average grant date fair value of options granted $ 4.09 $ 4.73 $ 3.78 $ 4.71 Intrinsic value of options exercised 3,722 11,135 6,110 12,866 Fair value of awards vested 2,873 6,695 6,209 10,485 The total unrecognized compensation expense at June 30, 2017 related to the Company's options was $29.6 million , which will be recognized over an estimated weighted-average amortization period of 3.44 years. The following table summarizes the activity for the Company's unvested RSUs during the period presented below: Shares Weighted-Average Unvested at December 31, 2016 3,135,181 $ 10.70 Granted 1,775,586 11.14 Vested (433,174 ) 9.39 Forfeited/Canceled (473,653 ) 10.50 Unvested at June 30, 2017 4,003,940 11.06 The total unrecognized compensation expense at June 30, 2017 related to the Company's unvested RSUs was $38.8 million , which will be recognized over an estimated weighted-average amortization period of 3.03 years. Total stock-based compensation expense included in the consolidated statements of operations for the periods presented below is as follows (in thousands): Three Months Ended Six Months Ended 2016 2017 2016 2017 Cost of revenue $ 250 $ 398 $ 451 $ 762 Marketing 221 528 402 972 Product development 1,026 2,053 1,883 4,073 General and administrative 2,771 5,183 4,769 7,240 Total stock-based compensation expense $ 4,268 $ 8,162 $ 7,505 $ 13,047 Total stock-based compensation expense in the three months ended June 30, 2016 and 2017 includes $0.8 million and $1.6 million in acquisition-related stock-based compensation expense, respectively. Total stock-based compensation expense in the six months ended June 30, 2016 and 2017 includes $1.5 million and $2.5 million in acquisition-related stock-based compensation expense, respectively. Total stock-based compensation expense in the three and six months ended June 30, 2017 includes $1.7 million of costs associated with the Actions (as defined below) approved by the Board of Directors during the second quarter of 2017 discussed in “ Note 9—Restructuring and Other Exit Costs .”

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 3—Income Taxes The Company adopted the provisions of ASU 2016-09 and ASU 2016-16 as of the beginning of the current fiscal year. Please refer to “ Note 1—Basis of Presentation and Summary of Significant Accounting Policies ” for additional detail regarding the adoption of these accounting standards and their impact on the consolidated financial statements. Included in the tax benefit for the three and six months ended June 30, 2017 is a discrete benefit of $3.0 million related to the costs discussed in “ Note 9—Restructuring and Other Exit Costs .” The amount of unrecognized tax benefits included in the consolidated balance sheets increased $0.3 million in the six months ended June 30, 2017 , from $23.6 million at December 31, 2016 to $23.9 million at June 30, 2017 . The total amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate is $23.9 million at June 30, 2017 .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4—Fair Value Measurements The Company has characterized its investments in marketable securities, based on the priority of the inputs used to value the investments, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and lowest priority to unobservable inputs (Level 3). If the inputs used to measure the investments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the investment. Investments recorded in the accompanying consolidated balance sheet are categorized based on the inputs to valuation techniques as follows: Level 1—These are investments where values are based on unadjusted quoted prices for identical assets in an active market that the Company has the ability to access. Level 2—These are investments where values are based on quoted market prices in markets that are not active or model derived valuations in which all significant inputs are observable in active markets. Level 3—These are liabilities where values are derived from techniques in which one or more significant inputs are unobservable. The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and June 30, 2017 (in thousands): As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Commercial Paper $ — $ 2,997 $ — $ 2,997 Money market funds 98,161 — — 98,161 U.S. Government bills 1,950 — — 1,950 100,111 2,997 — 103,108 Short-term investments: Commercial paper — 17,146 — 17,146 Corporate bonds — 33,303 — 33,303 U.S. Government and agency bills 50,045 — — 50,045 50,045 50,449 — 100,494 $ 150,156 $ 53,446 $ — $ 203,602 Liability Post-combination compensation classified as liability $ — $ — $ 2,067 $ 2,067 $ — $ — $ 2,067 $ 2,067 As of June 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Commercial Paper $ — $ 32,570 $ — $ 32,570 Money market funds 88,819 — — 88,819 U.S. Government and agency bills 20,177 — — 20,177 108,996 32,570 — 141,566 Short-term investments: Commercial paper — 9,764 — 9,764 Corporate bonds — 17,335 — 17,335 U.S. Government and agency bills 33,254 — — 33,254 33,254 27,099 — 60,353 $ 142,250 $ 59,669 $ — $ 201,919 Level 1 instruments include money market funds and AAA-rated U.S. Government and agency securities, which are valued based on inputs including quotes from broker-dealers or recently executed transactions in the same or similar securities. Level 2 instruments include fixed-income funds consisting of investments in commercial paper and corporate bonds, which are valued based on quoted market prices in markets that are not active or model derived valuations in which all significant inputs are observable in active markets. Level 3 instruments include post-combination compensation classified as a liability in connection with the acquisition of ALM. The post-combination compensation was classified as a liability due to its affiliation with a related put option, which expired upon vesting of the underlying consideration in the second quarter of 2017, and its fair value was previously determined based on the fair value of the Company's common stock at the period-end reporting date, with adjustments included in general and administrative expenses. The table below provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3) (in thousands): Six Months Ended Balance at beginning of period $ 2,067 Changes to liability-classified stock awards 771 Conversion of liability-classified restricted shares upon vesting (2,838 ) Balance at end of period $ —

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Note 5—Marketable Securities Short-term investments and certain cash equivalents consist of marketable securities that are available-for-sale. The cost and fair value of available-for-sale securities were as follows as of the dates indicated (in thousands): Cost Gross Gross Fair Value December 31, 2016 Cash equivalents: Commercial paper $ 2,997 $ — $ — $ 2,997 2,997 — — 2,997 Short-term investments: Commercial paper 17,146 — — 17,146 Corporate bonds 33,318 (16 ) 1 33,303 U.S. Government and agency bills 50,059 (15 ) 1 50,045 100,523 (31 ) 2 100,494 $ 103,520 $ (31 ) $ 2 $ 103,491 June 30, 2017 Cash equivalents: Commercial paper $ 32,570 $ — $ — $ 32,570 U.S. Government and agency bills 20,177 — — 20,177 52,747 — — 52,747 Short-term investments: Commercial paper 9,764 — — 9,764 Corporate bonds 17,349 (14 ) — 17,335 U.S. Government and agency bills 33,280 (26 ) — 33,254 60,393 (40 ) — 60,353 $ 113,140 $ (40 ) $ — $ 113,100 The Company’s investments in marketable securities consist primarily of investments in fixed-income funds and AAA-rated U.S. Government and agency bills. When evaluating investments for other-than-temporary impairment, the Company reviews factors such as length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company’s ability and intent to hold the investment for a period of time, which may be sufficient for anticipated recovery in market value. The Company evaluates fair values for each individual security in the investment portfolio.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note 6— Net (Loss) Income Per Share The following table presents the calculation of basic and diluted net (loss) income per share for periods presented (in thousands except share and per share amounts): Three Months Ended Six Months Ended 2016 2017 2016 2017 Numerator: Net (los s) income $ (7,311 ) $ 11,669 $ (6,119 ) $ 11,248 Net income allocated to participating securities under the two-class method — (17 ) — (16 ) Net (los s) income applicable to common sto ckholders—basic (7,311 ) 11,652 (6,119 ) 11,232 Dilutive effect of net income allocated to participating securities under the two-class method — 17 — 16 Change in fair value of liability classified restricted stock — 832 — 771 Net (loss) income applicable to common stockholders—diluted $ (7,311 ) $ 12,501 $ (6,119 ) $ 12,019 Denominator: Weighted average common shares outstanding—basic (1) 113,045,888 116,933,216 112,760,531 116,453,790 Common equivalent shares from options to purchase common stock and restricted stock units — 2,921,081 — 3,118,640 Dilutive effect of assumed conversion of restricted stock units — 844,331 — 838,890 Dilutive effect of assumed conversion of restricted stock from acquisition — 25,310 — 13,311 Weighted average common shares outstanding—diluted 113,045,888 120,723,938 112,760,531 120,424,631 Net (los s) income per share applicable to common stockhold ers—basic $ (0.06 ) $ 0.10 $ (0.05 ) $ 0.10 Net (loss) income per shar e applicable to common stockholders—diluted $ (0.06 ) $ 0.10 $ (0.05 ) $ 0.10 (1) 172,445 shares of unvested stock are considered participating securities and are excluded from basic shares outstanding for the three and six months ended June 30, 2017 . The following potential common shares were excluded from the calculation of diluted net (loss) income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented: Three Months Ended Six Months Ended 2016 2017 2016 2017 Stock options 11,129,114 6,201,891 11,155,837 4,451,613 Restricted stock units 1,941,768 648,762 1,395,452 1,065,495 Warrants 36,590 — 67,261 — Total anti-dilutive securities 13,107,472 6,850,653 12,618,550 5,517,108

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment and Geographic Information	Note 7—Segment and Geographic Information The Company has determined it operates as one operating and reportable segment for purposes of allocating resources and evaluating financial performance. Revenue by country is based on the billing address of the seller. The following table summarizes revenue by geographic area for the periods presented (in thousands): Three Months Ended Six Months Ended 2016 2017 2016 2017 United States $ 64,773 $ 73,546 $ 127,814 $ 145,068 International 20,576 28,146 39,382 53,515 Revenue $ 85,349 $ 101,692 $ 167,196 $ 198,583 No individual country’s revenue other than the United States exceeded 10% of total revenue for the periods presented. All significant long-lived assets are located in the United States.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 8—Contingencies Non-Income Tax Contingencies The Company had reserves of $0.3 million and $0.4 million at December 31, 2016 and June 30, 2017 , respectively, for certain non-income tax obligations, representing management’s best estimate of its potential liability. The Company could also be subject to examination in various jurisdictions related to non-income tax matters. The resolution of these types of matters, if in excess of the recorded reserve, could have an adverse impact on the Company’s business. Legal Proceedings On May 13, 2015, a purported securities class action complaint ( Altayyar v. Etsy, Inc., et al. , Docket No. 1:15-cv-02785) was filed in the United States District Court for the Eastern District of New York against the Company and certain officers. The complaint was brought on behalf of a purported class consisting of all persons or entities who purchased or otherwise acquired shares of the Company's common stock from April 16, 2015 through and including May 10, 2015. It asserted violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegedly false or misleading statements and omissions with respect to, among other things, merchandise for sale on the Company's website that may be counterfeit or constitute trademark or copyright infringement and actions taken by third-party brands against Etsy sellers for trademark or copyright infringement. On October 22, 2015, the court appointed a lead plaintiff and lead plaintiff’s counsel. On January 21, 2016, the lead plaintiff filed an amended class action complaint alleging false or misleading statements or omissions with respect to substantially the same topics as the original complaint. The amended complaint adds certain outside directors and underwriters as defendants, expands the purported class period to be April 16, 2015 to August 4, 2015, inclusive, and asserts violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as well as Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The amended complaint seeks certification as a class action and unspecified compensatory damages plus interest and attorneys' fees. On April 5, 2016, defendants moved to dismiss the amended complaint. On March 24, 2017, the court entered a judgment dismissing the amended complaint in its entirety, with prejudice, based on an opinion filed March 16, 2017. On August 2, 2017, Plaintiffs appealed to the United States Court of Appeals for the Second Circuit. The Company and the named officers and directors intend to defend themselves vigorously against this action. In light of, among other things, the early stage of the litigation, the Company is unable to predict the outcome of this matter and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from an unfavorable outcome. On July 21, 2015, a purported securities class action complaint ( Cervantes v. Dickerson, et.al ., Case No. CIV 534768) was filed in the Superior Court of State of California, County of San Mateo against the Company, certain officers, directors and underwriters. The complaint asserts violations of Sections 11 and 15 of the Securities Act of 1933. As in the Altayyar litigation, the complaint alleges misrepresentations in the Company’s Registration Statement on Form S-1 and Prospectus with respect to, among other things, merchandise for sale on the Company's website that may be counterfeit or constitute trademark or copyright infringement. The complaint seeks certification as a class action and unspecified compensatory damages plus interest and attorneys' fees. On December 7, 2015, the Company and the underwriter defendants moved to stay the Cervantes action on the grounds of forum non conveniens. On November 5, 2015, another purported securities class action complaint ( Weiss v. Etsy et al. , No. CIV 536123) was filed in the Superior Court of State of California, County of San Mateo. The Weiss complaint names as defendants the Company and the same officers, directors and underwriters named in the Cervantes complaint, and also asserts violations of Sections 11 and 15 of the Securities Act of 1933 based on allegedly false or misleading statements or omissions with respect to, among other things, merchandise for sale on the Company's website that may be counterfeit or constitute trademark or copyright infringement. On December 24, 2015, the court consolidated the Cervantes and Weiss actions. The Company and the named officers and directors intend to defend themselves vigorously against these consolidated actions. In light of, among other things, the early stage of the litigation, the Company is unable to predict the outcome of this matter and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from an unfavorable outcome. On February 3, 2016, the court granted the Company’s motion to stay the consolidated actions. In addition, from time to time in the normal course of business, various other claims and litigation have been asserted or commenced against the Company. Due to uncertainties inherent in litigation and other claims, the Company can give no assurance that it will prevail in any such matters, which could subject the Company to significant liability for damages. Any claims or litigation, regardless of their success, could have an adverse effect on the Company’s consolidated results of operations or cash flows in the period the claims or litigation are resolved. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business.

Restructuring and Other Exit Co

Restructuring and Other Exit Costs	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Other Exit Costs	Note 9—Restructuring and Other Exit Costs On April 30, 2017, the Board of Directors approved a plan to increase efficiency and streamline the Company's cost structure through headcount reductions and a reduction in internal program expenses (the “May Actions”). On June 16, 2017, the Board of Directors approved additional initiatives that are designed to improve focus on key strategic growth opportunities (together with the May Actions, the “Actions”). The Actions included total headcount reductions of 245 positions or 23% of the total workforce as of December 31, 2016 , closing A Little Market (“ALM”), a market in France, and closing or consolidating certain international offices. In connection with the Actions, the Company expects to incur restructuring and other exit costs, comprised of employee severance, stock compensation modifications and other exit costs, of $12.3 million to $16.6 million , largely made up of cash expenditures. For the three months ended June 30, 2017, $11.3 million of these costs have been incurred, including $9.0 million of severance charges, $1.7 million of stock modification charges and $0.6 million of other exit costs. The remaining $1.0 million to $5.3 million of expected costs and all remaining cash payments are expected to be recognized over the remainder of 2017 . The remaining range of expected costs relates primarily to uncertainty in the amount of exit costs that will be recognized in connection with the ultimate disposition of one of the Company's international offices. The following table displays restructuring and other exit costs recorded related to the Actions and a rollforward of the charges to the accrued expenses balance as of June 30, 2017 (in thousands): Severance Charge Stock-Based Compensation Other Exit Costs Total Balance, December 31, 2016 $ — $ — $ — $ — Total restructuring and other exit costs 8,972 1,668 620 11,260 Costs charged against equity/assets — (1,668 ) — (1,668 ) Cash payments (2,110 ) — (278 ) (2,388 ) Balance, June 30, 2017 $ 6,862 $ — $ 342 $ 7,204 Total restructuring and other exit costs related to the Actions included in the consolidated statements of operations are as follows (in thousands): Three and Six Months Ended June 30, 2017 Cost of revenue $ 694 Marketing 2,349 Product development 3,101 General and administrative 5,116 Total restructuring and other exit costs $ 11,260

Basis of Presentation and Sum17

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Consolidation	Basis of Consolidation The consolidated financial statements include the accounts of Etsy and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications	Reclassifications For the six months ended June 30, 2016 , the Company reclassified $0.5 million of excess tax benefits from exercise of stock options from cash used in financing activities to cash provided by operating activities to conform to the current year presentation upon adoption of ASU 2016-09, Stock Compensation: Improvements to Employee Share-based Payment Accounting .
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include revenue recognition, income taxes, website development costs and internal-use software, purchase price allocations for business combinations, valuation of goodwill and intangible assets, leases stock-based compensation and restructuring and other exit costs. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates.
Income Tax	Income Taxes The Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate adjusted for discrete items, if any, for relevant interim periods. The Company updates its estimate of the annual effective tax rate each quarter and makes cumulative adjustments if its estimated annual tax rate changes. The Company's quarterly tax provision and quarterly estimate of its annual effective tax rate are subject to significant variations due to several factors, including variability in predicting its pretax and taxable income and the mix of jurisdictions to which those relate, changes of expenses or losses for which tax benefits are not recognized and changes in the laws, regulations and administrative practices of the jurisdictions in which the Company operates.
Recently Issued and Recently Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers , which replaces existing revenue recognition guidance. The new guidance is effective for the annual and interim periods beginning after December 15, 2017. Among other things, the updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company has performed a preliminary assessment of its Markets and Seller Services revenue streams and, while the Company is still finalizing the identification of its performance obligations, it does not expect the adoption of this standard to have a material impact on its revenue recognition on an ongoing basis. The Company is also performing an assessment over data availability and the presentation that will be necessary to meet additional disclosure requirements pursuant to this guidance. In addition, the Company continues to monitor additional changes, modifications, clarifications or interpretations related to this guidance being undertaken by the FASB, which may impact current conclusions. In February 2016, the FASB issued ASU 2016-02, Leases , which requires a reporting entity to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. The new guidance is effective for annual and interim periods beginning after December 15, 2018, and early adoption is permitted. Upon adoption of this standard, the Company expects to recognize, on a discounted basis, its minimum commitments under noncancelable operating leases on the consolidated balance sheets resulting in the recording of right of use assets and lease obligations. The Company is currently evaluating whether there are any additional impacts this guidance will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash , which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The new guidance is effective for the annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements, but does not expect it to have a significant impact on its consolidated financial statements because its balance of restricted cash does not change significantly from period to period. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business , to clarify the definition of a business and provide guidance for evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance is to be applied on a prospective basis and is effective for the annual and interim periods beginning after December 15, 2017. As the adoption of this standard will only impact prospective acquisitions, the Company does not anticipate that this update will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment , to simplify the measurement of goodwill impairment by eliminating step two from the goodwill impairment test. The new guidance requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The new guidance is effective for the annual and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company expects to adopt this guidance in the fourth quarter of 2017 and does not anticipate the update to have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation: Scope of Modification Accounting , to increase comparability and provide clarity on whether changes in the terms or conditions in a share-based payment award require a reporting entity to apply modification guidance per FASB Accounting Standards Codification Topic 718. The new guidance is to be applied on a prospective basis, is effective for the annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-based Payment Accounting , for share-based payment transactions that require a reporting entity to recognize excess tax benefits and deficiencies as income tax expense or benefit in the income statement. The new guidance is effective for annual and interim periods beginning after December 15, 2016, and early adoption is permitted for financial statements as of the beginning of an interim or annual reporting period. The Company adopted this standard in the first quarter of 2017. As a result of this updated guidance, the Company recorded $2.6 million and $2.9 million of excess tax benefits to income tax expense, rather than additional paid-in capital, in the three and six months ended June 30, 2017 . On a prospective basis, the Company has updated its calculation of diluted earnings per share to exclude excess tax benefits previously included in the calculation of assumed proceeds under the treasury stock method. The Company has elected to apply the updated guidance on cash flow classification of excess tax benefits as operating activities using a retrospective approach for consistent year-over-year comparability. The Company has elected to recognize forfeitures as they occur on a modified retrospective basis and to adopt the amendments on statutory withholding requirements on a prospective basis, both of which have no material impact to the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-entity Transfers of Assets other than Inventory , which eliminated the exception that previously existed for the income tax consequences of intra-entity asset transfers other than inventory. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted in annual reporting periods for which interim or annual financial statements have not been issued. The Company has adopted this standard in the first quarter of 2017. The amendments in this update have been applied on a modified retrospective basis through a cumulative effect adjustment recorded to retained earnings as of January 1, 2017 of $51.4 million , which represents the unamortized amount of the deferred tax charge asset on the balance sheet at December 31, 2016. Consequently, the adoption of this standard eliminates the recognition in the tax provision of $17.1 million in each year through 2019, the year through which the deferred tax charge was previously amortizable. Additionally, a deferred tax asset of $21.7 million was recognized which previously qualified for an exception that has been eliminated. A full valuation allowance for that deferred tax asset was also recognized resulting in no impact to the consolidated financial statements.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Black-Scholes Valuation Assumptions Used to Determine Fair Value of Options Granted	The fair value of options granted in the periods presented below using the Black-Scholes pricing model has been based on the following assumptions: Three Months Ended Six Months Ended 2016 2017 2016 2017 Volatility 44.3% - 44.6% 41.7% - 44.2% 44.2% - 44.6% 41.7% - 44.2% Risk-free interest rate 1.2% - 1.5% 1.9% - 2.0% 1.2% - 1.9% 1.9% - 2.2% Expected term (in years) 5.5 - 6.3 5.5 - 6.3 5.5 - 6.3 5.5 - 6.3 Dividend rate —% —% —% —%
Summary of Stock Option Activity	The following table summarizes the activity for the Company's options during the period presented below: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contract Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2016 9,339,567 $ 7.89 Granted 5,473,601 10.77 Exercised (1,592,327 ) 4.00 Forfeited/Canceled (718,334 ) 10.80 Outstanding at June 30, 2017 12,502,507 9.47 6.60 $ 71,404 Total exercisable at June 30, 2017 6,069,330 7.87 3.59 45,027
Summary of Intrinsic Value of Options Exercised and Fair Value of Awards Vested	The following table summarizes the weighted average grant date fair value of options granted, intrinsic value of options exercised and fair value of awards vested in the three and six months ended June 30, 2016 and 2017 (in thousands except per share amounts): Three Months Ended Six Months Ended 2016 2017 2016 2017 Weighted average grant date fair value of options granted $ 4.09 $ 4.73 $ 3.78 $ 4.71 Intrinsic value of options exercised 3,722 11,135 6,110 12,866 Fair value of awards vested 2,873 6,695 6,209 10,485
Summary of Unvested RSU Activity	The following table summarizes the activity for the Company's unvested RSUs during the period presented below: Shares Weighted-Average Unvested at December 31, 2016 3,135,181 $ 10.70 Granted 1,775,586 11.14 Vested (433,174 ) 9.39 Forfeited/Canceled (473,653 ) 10.50 Unvested at June 30, 2017 4,003,940 11.06
Schedule of Stock-Based Compensation Expense	Total stock-based compensation expense included in the consolidated statements of operations for the periods presented below is as follows (in thousands): Three Months Ended Six Months Ended 2016 2017 2016 2017 Cost of revenue $ 250 $ 398 $ 451 $ 762 Marketing 221 528 402 972 Product development 1,026 2,053 1,883 4,073 General and administrative 2,771 5,183 4,769 7,240 Total stock-based compensation expense $ 4,268 $ 8,162 $ 7,505 $ 13,047

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and June 30, 2017 (in thousands): As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Commercial Paper $ — $ 2,997 $ — $ 2,997 Money market funds 98,161 — — 98,161 U.S. Government bills 1,950 — — 1,950 100,111 2,997 — 103,108 Short-term investments: Commercial paper — 17,146 — 17,146 Corporate bonds — 33,303 — 33,303 U.S. Government and agency bills 50,045 — — 50,045 50,045 50,449 — 100,494 $ 150,156 $ 53,446 $ — $ 203,602 Liability Post-combination compensation classified as liability $ — $ — $ 2,067 $ 2,067 $ — $ — $ 2,067 $ 2,067 As of June 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Commercial Paper $ — $ 32,570 $ — $ 32,570 Money market funds 88,819 — — 88,819 U.S. Government and agency bills 20,177 — — 20,177 108,996 32,570 — 141,566 Short-term investments: Commercial paper — 9,764 — 9,764 Corporate bonds — 17,335 — 17,335 U.S. Government and agency bills 33,254 — — 33,254 33,254 27,099 — 60,353 $ 142,250 $ 59,669 $ — $ 201,919
Reconciliation of the Beginning and Ending Balances for Liabilities Measured at Fair Value using Significant Unobservable Inputs	The table below provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3) (in thousands): Six Months Ended Balance at beginning of period $ 2,067 Changes to liability-classified stock awards 771 Conversion of liability-classified restricted shares upon vesting (2,838 ) Balance at end of period $ —

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Cost and Fair Value of Available-for-sale Securities	The cost and fair value of available-for-sale securities were as follows as of the dates indicated (in thousands): Cost Gross Gross Fair Value December 31, 2016 Cash equivalents: Commercial paper $ 2,997 $ — $ — $ 2,997 2,997 — — 2,997 Short-term investments: Commercial paper 17,146 — — 17,146 Corporate bonds 33,318 (16 ) 1 33,303 U.S. Government and agency bills 50,059 (15 ) 1 50,045 100,523 (31 ) 2 100,494 $ 103,520 $ (31 ) $ 2 $ 103,491 June 30, 2017 Cash equivalents: Commercial paper $ 32,570 $ — $ — $ 32,570 U.S. Government and agency bills 20,177 — — 20,177 52,747 — — 52,747 Short-term investments: Commercial paper 9,764 — — 9,764 Corporate bonds 17,349 (14 ) — 17,335 U.S. Government and agency bills 33,280 (26 ) — 33,254 60,393 (40 ) — 60,353 $ 113,140 $ (40 ) $ — $ 113,100

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net (Loss) Income Per Share	The following table presents the calculation of basic and diluted net (loss) income per share for periods presented (in thousands except share and per share amounts): Three Months Ended Six Months Ended 2016 2017 2016 2017 Numerator: Net (los s) income $ (7,311 ) $ 11,669 $ (6,119 ) $ 11,248 Net income allocated to participating securities under the two-class method — (17 ) — (16 ) Net (los s) income applicable to common sto ckholders—basic (7,311 ) 11,652 (6,119 ) 11,232 Dilutive effect of net income allocated to participating securities under the two-class method — 17 — 16 Change in fair value of liability classified restricted stock — 832 — 771 Net (loss) income applicable to common stockholders—diluted $ (7,311 ) $ 12,501 $ (6,119 ) $ 12,019 Denominator: Weighted average common shares outstanding—basic (1) 113,045,888 116,933,216 112,760,531 116,453,790 Common equivalent shares from options to purchase common stock and restricted stock units — 2,921,081 — 3,118,640 Dilutive effect of assumed conversion of restricted stock units — 844,331 — 838,890 Dilutive effect of assumed conversion of restricted stock from acquisition — 25,310 — 13,311 Weighted average common shares outstanding—diluted 113,045,888 120,723,938 112,760,531 120,424,631 Net (los s) income per share applicable to common stockhold ers—basic $ (0.06 ) $ 0.10 $ (0.05 ) $ 0.10 Net (loss) income per shar e applicable to common stockholders—diluted $ (0.06 ) $ 0.10 $ (0.05 ) $ 0.10 (1) 172,445 shares of unvested stock are considered participating securities and are excluded from basic shares outstanding for the three and six months ended June 30, 2017 .
Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share	The following potential common shares were excluded from the calculation of diluted net (loss) income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented: Three Months Ended Six Months Ended 2016 2017 2016 2017 Stock options 11,129,114 6,201,891 11,155,837 4,451,613 Restricted stock units 1,941,768 648,762 1,395,452 1,065,495 Warrants 36,590 — 67,261 — Total anti-dilutive securities 13,107,472 6,850,653 12,618,550 5,517,108

Segment and Geographic Inform22

Segment and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Area	The following table summarizes revenue by geographic area for the periods presented (in thousands): Three Months Ended Six Months Ended 2016 2017 2016 2017 United States $ 64,773 $ 73,546 $ 127,814 $ 145,068 International 20,576 28,146 39,382 53,515 Revenue $ 85,349 $ 101,692 $ 167,196 $ 198,583

Restructuring and Other Exit 23

Restructuring and Other Exit Costs (Tables)	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The following table displays restructuring and other exit costs recorded related to the Actions and a rollforward of the charges to the accrued expenses balance as of June 30, 2017 (in thousands): Severance Charge Stock-Based Compensation Other Exit Costs Total Balance, December 31, 2016 $ — $ — $ — $ — Total restructuring and other exit costs 8,972 1,668 620 11,260 Costs charged against equity/assets — (1,668 ) — (1,668 ) Cash payments (2,110 ) — (278 ) (2,388 ) Balance, June 30, 2017 $ 6,862 $ — $ 342 $ 7,204
Restructuring and Related Costs	Total restructuring and other exit costs related to the Actions included in the consolidated statements of operations are as follows (in thousands): Three and Six Months Ended June 30, 2017 Cost of revenue $ 694 Marketing 2,349 Product development 3,101 General and administrative 5,116 Total restructuring and other exit costs $ 11,260

Basis of Presentation and Sum24

Basis of Presentation and Summary of Significant Accounting Policies - Reclassifications and New Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided by (used in) operating activities		$ 15,448	$ 19,581
Excess tax benefit	$ 2,600	2,900
Cumulative effect of new accounting principle in period of adoption	$ (51,364)	$ (51,364)
Accounting Standards Update 2016-16
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cumulative effect of new accounting principle in period of adoption				$ (51,400)
Deferred tax assets				21,700
Adjustments for New Accounting Principle, Early Adoption | Accounting Standards Update 2016-16
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Amortization of deferred charges related to deferred tax liability				$ 17,100
Restatement Adjustment | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Statutory Tax Withholding Component
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided by (used in) operating activities			$ 500

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	Jan. 03, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense—acquisitions		$ 1,600	$ 800	$ 2,455	$ 1,472
Restructuring charges				11,260
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation		29,600		$ 29,600
Total unrecognized compensation, period of recognition				3 years 5 months 9 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation, period of recognition				3 years 11 days
Total unrecognized compensation		$ 38,800		$ 38,800
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of additional shares issued annually (in shares)	5,798,651
Number of shares authorized (in shares)		23,347,913		23,347,913
Number of shares available for grant (in shares)		13,407,187		13,407,187
Stock-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restructuring charges				$ 1,668

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value of Options Granted Using the Black-Scholes Pricing Model (Details) - Stock options	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility, minimum	41.70%	44.30%	41.70%	44.20%
Volatility, maximum	44.20%	44.60%	44.20%	44.60%
Risk-free interest rate, minimum	1.90%	1.20%	1.90%	1.20%
Risk-free interest rate, maximum	2.00%	1.50%	2.20%	1.90%
Dividend rate	0.00%	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 6 months	5 years 6 months	5 years 6 months	5 years 6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 3 months 18 days	6 years 3 months 18 days	6 years 3 months 18 days	6 years 3 months 18 days

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Shares
Outstanding, beginning balance (in shares) | shares	9,339,567
Granted (in shares) | shares	5,473,601
Exercised (in shares) | shares	(1,592,327)
Forfeited/Canceled (in shares) | shares	(718,334)
Outstanding, ending balance (in shares) | shares	12,502,507
Total exercisable at June 30, 2017 (in shares) | shares	6,069,330
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 7.89
Granted (in dollars per share) | $ / shares	10.77
Exercised (in dollars per share) | $ / shares	4
Forfeited/Canceled (in dollars per share) | $ / shares	10.80
Outstanding, ending balance (in dollars per share) | $ / shares	9.47
Total exercisable at June 30, 2017 (in dollars per share) | $ / shares	$ 7.87
Weighted-Average Remaining Contract Term (in years)
Outstanding at June 30, 2017, Weighted-Average Remaining Contract Term	6 years 7 months 6 days
Total exercisable at June 30, 2017, Weighted-Average Remaining Contract Term	3 years 7 months 2 days
Aggregate Intrinsic Value
Outstanding at June 30, 2017, Aggregate Intrinsic Value | $	$ 71,404
Total exercisable at June 30, 2017, Aggregate Intrinsic Value | $	$ 45,027

Stock-based Compensation - Weig

Stock-based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Intrinsic Value of Options Exercised and Fair Value of Awards Vested (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average grant date fair value of options (in dollars per share)	$ 4.73	$ 4.09	$ 4.71	$ 3.78
Intrinsic value of options exercised	$ 11,135	$ 3,722	$ 12,866	$ 6,110
Fair value of awards vested	$ 6,695	$ 2,873	$ 10,485	$ 6,209

Stock-based Compensation - Su29

Stock-based Compensation - Summary of Unvested RSUs (Details) - RSUs	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Shares
Unvested at December 31, 2016 (in shares) | shares	3,135,181
Granted (in shares) | shares	1,775,586
Vested (in shares) | shares	(433,174)
Forfeited/Cancelled (in shares) | shares	(473,653)
Unvested at June 30, 2017 (in shares) | shares	4,003,940
Weighted-Average Grant Date Fair Value
Unvested at December 31, 2016 (in dollars per share) | $ / shares	$ 10.70
Granted (in dollars per share) | $ / shares	11.14
Vested (in dollars per share) | $ / shares	9.39
Forfeited/Cancelled (in dollars per share) | $ / shares	10.50
Unvested at June 30, 2017 (in dollars per share) | $ / shares	$ 11.06

Stock-based Compensation - Allo

Stock-based Compensation - Allocated Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 8,162	$ 4,268	$ 13,047	$ 7,505
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	398	250	762	451
Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	528	221	972	402
Product development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,053	1,026	4,073	1,883
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 5,183	$ 2,771	$ 7,240	$ 4,769

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Benefit for income taxes	$ 9,437	$ (4,261)	$ 10,489	$ (17,875)
Unrecognized Tax Benefit
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Increase in unrecognized tax benefits			300
Unrecognized tax benefits	23,900		23,900		$ 23,600
Unrecognized tax benefits that would impact effective tax rate favorably	23,900		23,900
Restructuring and exit costs
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Benefit for income taxes	$ 3,000		$ 3,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 141,566	$ 103,108
Short-term investments	60,353	100,494
Asset	201,919	203,602
Liability		2,067
Post-combination compensation classified as liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability		2,067
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	32,570	2,997
Short-term investments	9,764	17,146
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	88,819	98,161
U.S. Government bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		1,950
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	17,335	33,303
U.S. Government and agency bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	20,177
Short-term investments	33,254	50,045
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	108,996	100,111
Short-term investments	33,254	50,045
Asset	142,250	150,156
Liability		0
Level 1 | Post-combination compensation classified as liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability		0
Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	88,819	98,161
Level 1 | U.S. Government bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		1,950
Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 | U.S. Government and agency bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	20,177
Short-term investments	33,254	50,045
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	32,570	2,997
Short-term investments	27,099	50,449
Asset	59,669	53,446
Liability		0
Level 2 | Post-combination compensation classified as liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability		0
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	32,570	2,997
Short-term investments	9,764	17,146
Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 2 | U.S. Government bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		0
Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	17,335	33,303
Level 2 | U.S. Government and agency bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Short-term investments	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Asset	0	0
Liability		2,067
Level 3 | Post-combination compensation classified as liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability		2,067
Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3 | U.S. Government bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		0
Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 | U.S. Government and agency bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Short-term investments	$ 0	$ 0

Fair Value Measurements - Sch33

Fair Value Measurements - Schedule of Unobservable Inputs Reconciliation (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Reconciliation of Beginning and Ending Balances for the Liabilities Measured at Fair Value Using Significant Observable Inputs
Balance at beginning of period	$ 2,067
Changes to liability-classified stock awards	771
Conversion of liability-classified restricted shares upon vesting	(2,838)
Balance at end of period	$ 0

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 113,140	$ 103,520
Gross Unrealized Holding Loss	(40)	(31)
Gross Unrealized Holding Gain	0	2
Fair Value	113,100	103,491
Cash and Cash Equivalents
Schedule of Available-for-sale Securities [Line Items]
Cost	52,747	2,997
Gross Unrealized Holding Loss	0	0
Gross Unrealized Holding Gain	0	0
Fair Value	52,747	2,997
Cash and Cash Equivalents | Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Cost	32,570	2,997
Gross Unrealized Holding Loss	0	0
Gross Unrealized Holding Gain	0	0
Fair Value	32,570	2,997
Cash and Cash Equivalents | U.S. Government and agency bills
Schedule of Available-for-sale Securities [Line Items]
Cost	20,177
Gross Unrealized Holding Loss	0
Gross Unrealized Holding Gain	0
Fair Value	20,177
Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Cost	60,393	100,523
Gross Unrealized Holding Loss	(40)	(31)
Gross Unrealized Holding Gain	0	2
Fair Value	60,353	100,494
Short-term Investments | Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Cost	9,764	17,146
Gross Unrealized Holding Loss	0	0
Gross Unrealized Holding Gain	0	0
Fair Value	9,764	17,146
Short-term Investments | Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Cost	17,349	33,318
Gross Unrealized Holding Loss	(14)	(16)
Gross Unrealized Holding Gain	0	1
Fair Value	17,335	33,303
Short-term Investments | U.S. Government and agency bills
Schedule of Available-for-sale Securities [Line Items]
Cost	33,280	50,059
Gross Unrealized Holding Loss	(26)	(15)
Gross Unrealized Holding Gain	0	1
Fair Value	$ 33,254	$ 50,045

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net (loss) income	$ 11,669	$ (7,311)	$ 11,248	$ (6,119)
Net income allocated to participating securities under the two-class method	(17)	0	(16)	0
Net (loss) income applicable to common stockholders—basic	11,652	(7,311)	11,232	(6,119)
Dilutive effect of net income allocated to participating securities under the two-class method	17	0	16	0
Change in fair value of liability classified restricted stock	832	0	771	0
Net (loss) income applicable to common stockholders—diluted	$ 12,501	$ (7,311)	$ 12,019	$ (6,119)
Denominator:
Weighted average common shares outstanding—basic (in shares)	116,933,216	113,045,888	116,453,790	112,760,531
Weighted average common shares outstanding—diluted (in shares)	120,723,938	113,045,888	120,424,631	112,760,531
Net (loss) income per share applicable to common stockholders—basic (in dollars per shares)	$ 0.10	$ (0.06)	$ 0.10	$ (0.05)
Net (loss) income per share applicable to common stockholders—diluted (in dollars per share)	$ 0.10	$ (0.06)	$ 0.10	$ (0.05)
Participating securities excluded from computation of earnings per share (in shares)	6,850,653	13,107,472	5,517,108	12,618,550
Participating Securities
Denominator:
Participating securities excluded from computation of earnings per share (in shares)	172,445		172,445
Stock Options
Denominator:
Dilutive effect of common equivalent shares from options and restricted stock (in shares)	2,921,081	0	3,118,640	0
Restricted stock units
Denominator:
Dilutive effect of common equivalent shares from options and restricted stock (in shares)	844,331	0	838,890	0
Restricted Stock
Denominator:
Dilutive effect of common equivalent shares from options and restricted stock (in shares)	25,310	0	13,311	0

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Summary of Shares Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	6,850,653	13,107,472	5,517,108	12,618,550
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	6,201,891	11,129,114	4,451,613	11,155,837
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	648,762	1,941,768	1,065,495	1,395,452
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	0	36,590	0	67,261

Segment and Geographic Inform37

Segment and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue, Major Customer [Line Items]
Revenue	$ 101,692	$ 85,349	$ 198,583	$ 167,196
United States
Revenue, Major Customer [Line Items]
Revenue	73,546	64,773	145,068	127,814
International
Revenue, Major Customer [Line Items]
Revenue	$ 28,146	$ 20,576	$ 53,515	$ 39,382

Contingencies (Details)

Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Non-Income Tax Obligations
Loss Contingencies [Line Items]
Non-income tax obligation reserve	$ 0.4	$ 0.3

Restructuring and Other Exit 39

Restructuring and Other Exit Costs (Details) $ in Thousands	Jun. 16, 2017position	Jun. 30, 2017USD ($)	Jun. 30, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated | position	245
Number of positions eliminated, inception to date	23.00%
Restructuring costs		$ 11,260	$ 11,260
Restructuring charges			11,260
Minimum
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		12,300	12,300
Expected remaining costs		1,000	1,000
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost		16,600	16,600
Expected remaining costs		$ 5,300	5,300
Severance Charge
Restructuring Cost and Reserve [Line Items]
Restructuring charges			8,972
Stock-Based Compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges			1,668
Other Exit Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 620

Restructuring and Other Exit 40

Restructuring and Other Exit Costs - Restructuring Charges Recorded to Date (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 0
Total restructuring and other exit costs	11,260
Costs charged against equity/assets	(1,668)
Cash payments	(2,388)
Ending balance	7,204
Severance Charge
Restructuring Reserve [Roll Forward]
Beginning balance	0
Total restructuring and other exit costs	8,972
Costs charged against equity/assets	0
Cash payments	(2,110)
Ending balance	6,862
Stock-Based Compensation
Restructuring Reserve [Roll Forward]
Beginning balance	0
Total restructuring and other exit costs	1,668
Costs charged against equity/assets	(1,668)
Cash payments	0
Ending balance	0
Other Exit Costs
Restructuring Reserve [Roll Forward]
Beginning balance	0
Total restructuring and other exit costs	620
Costs charged against equity/assets	0
Cash payments	(278)
Ending balance	$ 342

Restructuring and Other Exit 41

Restructuring and Other Exit Costs - Restructuring and Other Exit Costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 11,260	$ 11,260
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring costs	694	694
Marketing
Restructuring Cost and Reserve [Line Items]
Restructuring costs	2,349	2,349
Product development
Restructuring Cost and Reserve [Line Items]
Restructuring costs	3,101	3,101
General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 5,116	$ 5,116