Shutterstock (SSTK) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Document and Entity Information
Entity Registrant Name	Shutterstock, Inc.
Entity Central Index Key	1,549,346
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		35,128,513
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 237,997	$ 241,304
Short-term investments	52,407	47,078
Credit card receivables	4,230	2,811
Accounts receivable, net	34,064	25,653
Prepaid expenses and other current assets	16,553	11,713
Deferred tax assets, net	6,654	7,116
Total current assets	351,905	335,675
Property and equipment, net	49,814	32,094
Intangible assets, net	30,763	29,781
Goodwill	50,523	50,934
Deferred tax assets, net	21,521	18,691
Other assets	2,807	1,946
Total assets	507,333	469,121
Current liabilities:
Accounts payable	15,303	6,816
Accrued expenses	39,126	30,696
Contributor royalties payable	19,286	17,822
Income taxes payable	845	953
Deferred revenue	117,877	98,239
Other liabilities	10,385	6,258
Total current liabilities	202,822	160,784
Deferred tax liability, net	2,199	3,778
Other non-current liabilities	8,967	15,994
Total liabilities	213,988	180,556
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 36,854 and 36,146 shares issued and 35,115 and 35,686 shares outstanding as of September 30, 2016 and December 31, 2015, respectively	368	361
Treasury stock, at cost; 1,739 and 460 shares as of September 30, 2016 and December 31, 2015, respectively	(59,728)	(15,635)
Additional paid-in capital	244,333	213,851
Accumulated comprehensive loss	(10,838)	(6,449)
Retained earnings	119,210	96,437
Total stockholders’ equity	293,345	288,565
Total liabilities and stockholders’ equity	$ 507,333	$ 469,121

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000	200,000,000
Common stock, shares issued (in shares)	36,854,000	36,146,000
Common stock, shares outstanding (in shares)	35,115,000	35,686,000
Treasury stock, shares held in treasury (in shares)	1,739,000	460,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 123,073	$ 107,260	$ 364,144	$ 309,147
Operating expenses:
Cost of revenue	50,184	44,512	150,492	126,582
Sales and marketing	32,977	27,393	91,636	79,927
Product development	11,604	10,827	34,800	31,700
General and administrative	17,020	16,441	54,629	44,949
Total operating expenses	111,785	99,173	331,557	283,158
Income from operations	11,288	8,087	32,587	25,989
Other income (expense), net	102	(767)	(122)	(3,386)
Income before income taxes	11,390	7,320	32,465	22,603
Provision for income taxes	1,999	3,217	9,692	9,920
Net income	9,391	4,103	22,773	12,683
Less:
Less: Undistributed earnings to participating stockholder	0	0	0	2
Net income available to common stockholders	$ 9,391	$ 4,103	$ 22,773	$ 12,681
Net income per share available to common stockholders:
Basic (in dollars per share)	$ 0.27	$ 0.11	$ 0.65	$ 0.35
Diluted (in dollars per share)	$ 0.26	$ 0.11	$ 0.64	$ 0.35
Weighted average shares outstanding:
Basic (in shares)	35,036	36,040	35,123	35,848
Diluted (in shares)	35,824	36,270	35,855	36,269

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 9,391	$ 4,103	$ 22,773	$ 12,683
Foreign currency translation loss	(2,236)	(3,620)	(4,641)	(3,240)
Unrealized gain on investments	34	13	252	30
Other comprehensive loss	(2,202)	(3,607)	(4,389)	(3,210)
Comprehensive income	$ 7,189	$ 496	$ 18,384	$ 9,473

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 22,773	$ 12,683
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,181	10,363
Deferred taxes	(3,453)	(4,587)
Non-cash equity-based compensation	21,110	22,771
Change in fair value of contingent consideration	2,600	1,440
Settlement of contingent consideration liability in excess of acquisition-date fair value	(1,640)	0
Tax effect from exercise/vesting of equity awards, net	558	(1,741)
Bad debt reserve	3,338	1,165
Chargeback and sales refund reserves	(15)	(215)
Changes in operating assets and liabilities:
Credit card receivables	(1,401)	(1,501)
Accounts receivable	(12,164)	(8,574)
Prepaid expenses and other current and non-current assets	(2,882)	1,521
Accounts payable and other current and non-current liabilities	15,546	3,680
Contributor royalties payable	1,702	2,589
Income taxes payable	(2,960)	1,365
Deferred revenue	19,443	18,490
Net cash provided by operating activities	76,736	59,449
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(26,747)	(9,873)
Purchase of investments	(202,282)	(203,469)
Sale and maturities of investments	197,100	205,851
Acquisition of business, net of cash acquired	0	(62,379)
Acquisition of digital content	(6,214)	(2,192)
Security deposit (payment)/release	(799)	93
Net cash used in investing activities	(38,942)	(71,969)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury shares	(44,916)	0
Proceeds from exercise of stock options	8,235	6,881
Proceeds from issuance of common stock under 2012 Employee Stock Purchase Plan	809	1,052
Settlement of contingent consideration liability	(2,360)	0
Tax effect from exercise/vesting of equity awards, net	(558)	1,741
Net cash (used in) provided by financing activities	(38,790)	9,674
Effect of foreign exchange rate changes on cash	(2,311)	(1,000)
Net decrease in cash and cash equivalents	(3,307)	(3,846)
Cash and cash equivalents, beginning of period	241,304	233,453
Cash and cash equivalents, end of period	237,997	229,607
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 16,316	$ 11,737

Summary of Operations and Signi

Summary of Operations and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Operations and Significant Accounting Policies	Summary of Operations and Significant Accounting Policies Summary of Operations Shutterstock, Inc., together with its subsidiaries (collectively, the “Company” or “Shutterstock”), operates a global marketplace and is a leading provider of high-quality creative content including: (a) digital imagery, which consists of licensed photographs, vectors, illustrations and video clips that customers use in their visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and video content; and (b) commercial music, which consists of high-quality music tracks and sound effects, and is often used to complement the digital imagery. The Company licenses creative content to its customers. Contributors upload their creative content to the Company’s websites in exchange for royalty payments based on customer download activity. The Company also offers digital asset management services through its cloud-based digital asset management platform, WebDAM. This service provides tools for customers to better manage creative content and brand management assets. In recent years, the Company has grown, in part, through acquisitions, most notably through the acquisition of WebDAM in 2014 and the acquisitions of Rex Features and PremiumBeat in 2015. The Company is headquartered in New York City with offices in Amsterdam, Berlin, Chicago, Dallas, Denver, London, Los Angeles, Montreal, Paris, San Francisco and Silicon Valley. Basis of Presentation The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statements. The interim consolidated balance sheet as of September 30, 2016 , the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 , and the consolidated statement of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The consolidated balance sheet as of December 31, 2015 , included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by U.S. GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position as of September 30, 2016 and its consolidated results of operations, comprehensive income and cash flows for the three and nine months ended September 30, 2016 and 2015 . The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016 or for any other future annual or interim period. There have been no material changes in the significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 24, 2016 . These financial statements should also be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015 . The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. The Company evaluates its significant estimates on an ongoing basis, including, but not limited to allowance for doubtful accounts, sales refund reserve, accruals related to self-insurance, the fair value of goodwill, intangible assets and other long-lived assets, non-cash equity-based compensation, the fair value of contingent consideration, the provision for income taxes and the amount of certain non-income tax accruals. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Restricted Cash The Company’s restricted cash relates to security deposits for its office leases. As of September 30, 2016 and December 31, 2015 , the Company had restricted cash of approximately $2.6 million and $1.8 million , respectively, in other assets that related to the lease for its headquarters in New York City, which expires in 2029 . In January 2016, this lease was amended to provide additional space and extend the lease term, which required an increased security deposit. The carrying value of restricted cash approximates fair value. Allowance for Doubtful Accounts The Company’s accounts receivable consist of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates. As of September 30, 2016 and December 31, 2015 , the Company’s allowance for doubtful accounts was approximately $6.2 million and $3.8 million , respectively, which was included as a reduction of accounts receivable. Deferred Rent The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized and the actual payments made in accordance with the lease agreement is recognized as a deferred rent liability on the Company’s balance sheet. As of September 30, 2016 , the Company had deferred rent of $8.1 million which was included in other non-current liabilities. As of December 31, 2015 , the Company had deferred rent of $8.0 million , of which $0.7 million was included in other liabilities and $7.3 million was included in other non-current liabilities. Chargeback and Sales Refund Allowance The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of both September 30, 2016 and December 31, 2015 , the Company’s combined allowance for chargebacks and sales refunds was $0.7 million , which was included in other liabilities. Medical Self-insurance Costs The Company is partially self-insured for claims relating to employee medical benefit programs. The medical self-insurance program is administered by a third party and contains stop-loss provisions on both an individual claim basis and in aggregate. The Company records claims incurred as an expense each period, including an estimate of claims incurred but not yet reported. The Company uses claims data and historical experience, as applicable, to estimate the liability for unreported claims and believes that the methodologies used to estimate insurance liabilities result in an accurate reflection of the liabilities as of the date of the balance sheet. Contingent Consideration The Company records a liability for contingent consideration at the date of a business combination and reassesses the fair value of the liability each period until it is settled. Upon settlement of these liabilities, the portion of the contingent consideration payment that is attributable to the initial amount recorded as part of the business combination is classified as a cash flow from financing activities and the portion of the settlement that is attributable to subsequent changes in the fair value of the contingent consideration is classified as a cash flow from operating activities in the consolidated statement of cash flows. Income Taxes The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Significant management judgment is required in projecting ordinary income in order to determine the Company’s estimated effective tax rate. The Company has assessed the realizability of deferred tax assets and determined that based on the available evidence, including a history of taxable income and estimates of future taxable income, it is more likely than not that the deferred tax assets will be realized. Quarterly, the Company will continue to evaluate its ability to realize deferred tax assets. Significant management judgment is required in determining the provision for income taxes and deferred tax assets and liabilities. In the event that actual results differ from these estimates, the Company will adjust these estimates in future periods, which may result in a change in the effective tax rate in a future period. Recently Issued Accounting Standard Updates In August 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the statement of cash flows. The new guidance is intended to provide clarification and reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and should be applied retrospectively. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In June 2016, the FASB issued new guidance which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance is required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In March 2016, the FASB issued new guidance related to stock-based compensation. The new standard changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of certain related items in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective approach; amendments related to the recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively; and amendments related to the presentation of excess tax benefits on the statement of cash flows may be applied prospectively or retrospectively. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In February 2016, the FASB issued new guidance related to leases. The new standard requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and can be applied using a modified retrospective approach for all leases entered into before the effective date. Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In November 2015, the FASB issued new guidance related to income taxes. The new standard requires that all deferred tax assets and liabilities, and any related valuation allowance, be classified as non-current on the balance sheet. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, although early adoption is permitted and can be applied either prospectively or retrospectively to all periods presented. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and will eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB approved the deferral of the effective date of this guidance by one year. As a result, this new guidance will be effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company may choose to adopt the standard as of the original effective date for annual reporting periods beginning after December 15, 2016; if it does so, the Company is required to apply the standard beginning in the first interim period within the year of adoption. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present the Company’s fair value hierarchy for its assets and liabilities (in thousands): As of September 30, 2016 Aggregate Fair Value Level 1 Level 2 Level 3 Assets: Money market accounts $ 84,095 $ 84,095 $ — $ — Commercial paper 52,407 — 52,407 Total assets measured at fair value $ 136,502 $ 84,095 $ 52,407 $ — Liabilities: Acquisition-related contingent consideration $ 9,700 $ — $ — $ 9,700 Total liabilities measured at fair value $ 9,700 $ — $ — $ 9,700 As of December 31, 2015 Aggregate Fair Value Level 1 Level 2 Level 3 Assets: Money market accounts $ 89,153 $ 89,153 $ — $ — Commercial paper 47,078 — 47,078 — Total assets measured at fair value $ 136,231 $ 89,153 $ 47,078 $ — Liabilities: Acquisition-related contingent consideration $ 11,075 $ — $ — $ 11,075 Total liabilities measured at fair value $ 11,075 $ — $ — $ 11,075 Money Market Accounts Cash equivalents include money market accounts and are classified as a level 1 measurement based on quoted prices in active markets for identical assets that the reporting entity can access at the measurement date. Commercial Paper The Company’s short-term investments consist of commercial paper with original maturity dates of 90 days or less, which are available to support current operations and are classified as available-for-sale securities. Commercial paper is classified as a level 2 measurement based on quoted market prices for identical assets, which are subject to infrequent transactions. Short-term investments are summarized as follows (in thousands): As of September 30, 2016 As of December 31, 2015 Commercial Paper: Amortized cost $ 52,417 $ 47,084 Unrealized gains — — Unrealized losses (10 ) (6 ) Total short-term investments measured at fair value $ 52,407 $ 47,078 Acquisition-Related Contingent Consideration The Company reassesses the fair value of contingent consideration to be settled in cash related to certain of the Company’s acquisitions using the Black-Scholes model until the settlement amount of the cash flow is determinable. These contingencies are considered level 3 measurements. Significant assumptions used in measuring the fair value include probabilities of achieving certain revenue milestones based on the Company’s expectations and a discount rate which is based on an unobservable input that is supported by little or no market activity. As of December 31, 2015 , the settlement amount of the contingent consideration related to the Company’s acquisition of WebDAM was determined to be $4.0 million and was included in other liabilities. No changes in fair value were recorded during the nine months ended September 30, 2016 . The contingent consideration of $4.0 million was paid in April 2016, and there was no remaining liability as of September 30, 2016 . During the first quarter of fiscal 2016, the settlement amount of the contingent consideration related to the PremiumBeat acquisition was determined to be $10.0 million , which will be paid during 2017. As of September 30, 2016 , the present value of the amount to be paid was $9.7 million and was included in other liabilities. As of December 31, 2015 , the fair value of the contingent consideration was $7.1 million , and was included in other non-current liabilities. Other Fair Value Measurements Cash, accounts receivable, restricted cash, accounts payable, accrued expenses and deferred revenue carrying amounts approximate fair value because of the short-term nature of these instruments. The Company’s non-financial assets, which include property and equipment, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required and the Company is required to evaluate the non-financial asset for impairment, a resulting asset impairment would require that non-financial assets be recorded at fair value.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment is summarized as follows (in thousands): As of September 30, 2016 As of December 31, 2015 Computer equipment and software $ 55,628 $ 37,502 Furniture and fixtures 3,329 2,933 Leasehold improvements 18,769 14,471 Property and equipment 77,726 54,906 Less accumulated depreciation (27,912 ) (22,812 ) Property and equipment, net $ 49,814 $ 32,094 Depreciation expense related to property and equipment was $3.9 million and $2.6 million for the three months ended September 30, 2016 and 2015 , respectively, and $10.4 million and $6.9 million for the nine months ended September 30, 2016 and 2015 , respectively. Depreciation expense is included in cost of revenue and general and administrative expense based on the nature of the asset being depreciated. Capitalized Internal-Use Software The Company capitalized costs related to the development of internal-use software of $6.5 million and $0.3 million for the three months ended September 30, 2016 and 2015 , respectively, and $12.8 million and $0.6 million for the nine months ended September 30, 2016 and 2015 , respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software. The portion of total depreciation expense related to capitalized internal-use software was $1.0 million and $0.1 million for the three months ended September 30, 2016 and 2015 , respectively, and $2.1 million and $0.3 million for the nine months ended September 30, 2016 and 2015 , respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue and general and administrative expense. As of September 30, 2016 and December 31, 2015 , the Company had capitalized internal-use software of $14.5 million and $3.9 million , respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill, Intangible Assets and

Goodwill, Intangible Assets and Acquisition Activity	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Intangible Assets and Acquisition Activity	Goodwill, Intangible Assets and Acquisition Activity Goodwill The Company’s goodwill balance is attributable to its Bigstock, Editorial, Music and WebDAM reporting units and is tested for impairment at least annually on October 1 or upon a triggering event. Bigstock, Music and Editorial are included in the Company's “Content Business” reporting segment while WebDAM is included in the non-reportable “Other Category”. The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments through September 30, 2016 (in thousands): Consolidated Content Business Other Category Balance as of December 31, 2015 $ 50,934 $ 42,171 $ 8,763 Foreign currency translation adjustment (411 ) (411 ) — Balance as of September 30, 2016 $ 50,523 $ 41,760 $ 8,763 No triggering events were identified during the nine months ended September 30, 2016 . Intangible Assets Intangible assets consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Weighted Gross Accumulated Amortizing intangible assets: Customer relationships $ 17,366 $ (3,950 ) 9 $ 19,523 $ (3,089 ) Trade name 6,993 (1,851 ) 7 7,111 (1,188 ) Developed technology 3,364 (1,773 ) 4 3,734 (1,129 ) Contributor content 11,411 (1,083 ) 11 5,138 (567 ) Patents 222 (49 ) 18 193 (40 ) Domain name 160 (47 ) 11 120 (25 ) Total $ 39,516 $ (8,753 ) $ 35,819 $ (6,038 ) Amortization expense was $1.2 million and $1.3 million for the three months ended September 30, 2016 and 2015 , respectively, and $3.8 million and $3.5 million for the nine months ended September 30, 2016 and 2015 , respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense for the next five years is: $1.3 million for the remaining three months of 2016 , $5.3 million in 2017 , $4.4 million in 2018 , $4.3 million in 2019 , $3.6 million in 2020 , $3.2 million in 2021 and $8.6 million thereafter. Acquisition Activity The Picture Desk On September 1, 2016, the Company acquired content assets and intellectual property of The Picture Desk Limited, which includes over 700,000 images from two image collections: The Art Archive and The Kobal Collection, pursuant to an asset purchase agreement. The total purchase price consisted of a cash payment of $3.9 million including transaction costs, which has been recorded as an addition to intangible assets, of which $0.3 million has been recorded under trade name with an estimated useful life of 7 years, and the remainder has been recorded under contributor content with an estimated useful life of 15 years. Rex Features On January 19, 2015, the Company acquired all of the shares of Rex Features (Holdings) Limited, or Rex Features, pursuant to a stock purchase agreement. The total purchase price consisted of a cash payment of $32.7 million subject to certain working capital adjustments. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date. Goodwill related to the acquisition of Rex Features is attributable to its ability to serve as the foundation of the Company’s editorial offering, serving as a base for accelerating the growth of the offering by leveraging Rex Features’ editorial expertise and the Company’s technical capabilities and position in the marketplace, and is not deductible for tax purposes. PremiumBeat On January 22, 2015, the Company acquired substantially all of the assets and certain liabilities of Arbour Interactive, Inc., or PremiumBeat, pursuant to an asset purchase agreement. The total purchase price of $35.4 million consisted of a cash payment of $31.7 million and $3.7 million in contingent consideration based on certain performance criteria. As of September 30, 2016 , the fair value of the contingent consideration related to the PremiumBeat acquisition was $9.7 million , which represents the present value of the amount that will be paid, and is included in other liabilities. During the nine months ended September 30, 2016 , the Company recorded a change in the fair value of the contingent consideration in the amount of $2.6 million , of which $1.0 million was recorded as a component of other (expense) income, net related to the passage of time and $1.7 million was recorded as a component of general and administrative expense related to a modification of the terms of the contingent consideration agreement. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date. Goodwill related to the acquisition of PremiumBeat is attributable to expected synergies from future growth and the ability to accelerate the growth of the Company’s music offering by leveraging PremiumBeat’s experience in the music market, and is deductible for tax purposes. 2015 Acquisition Activity The fair value of consideration transferred in the acquisitions of Rex Features and PremiumBeat was allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The fair values of intangible assets were determined primarily using the income approach. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands): Acquisition Activity Assets acquired: Cash $ 1,525 Accounts receivable 2,908 Other assets 1,319 Fixed assets 297 Intangible assets (1) 27,433 Goodwill 44,767 Deferred tax asset 229 Total assets acquired $ 78,478 Liabilities assumed: Accounts payable $ (253 ) Contributor payable (3,145 ) Accrued expenses (2,431 ) Deferred revenue (23 ) Deferred tax liability (4,454 ) Total liabilities assumed $ (10,306 ) Total $ 68,172 ______________________________________________________________________________ (1) Identifiable intangible assets include customer relationships, trade names, developed technology and content libraries and are being amortized on a straight-line basis over a weighted average life of approximately eight years . As a result of the acquisitions of Rex Features and PremiumBeat, the Company recorded $0.4 million of professional fees in the nine months ended September 30, 2015 . There were no professional fees related to these acquisitions in the three and nine months ended September 30, 2016 or the three months ended September 30, 2015 . The professional fees are included in general and administrative expense. Pro forma results of operations have not been presented because the effect of these business combinations was not material to the Company’s pro forma consolidated results of operations for any of the periods presented.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Compensation $ 10,186 $ 8,995 Non-income taxes 6,831 7,095 Royalty tax withholdings 6,768 6,439 Payroll tax withholdings 4,476 426 Professional fees 2,428 902 Marketing expenses 542 237 Other expenses 7,895 6,602 Total accrued expenses $ 39,126 $ 30,696

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company leases facilities under agreements accounted for as operating leases. Rental expense for operating leases was $2.1 million and $1.2 million for the three months ended September 30, 2016 and 2015 , respectively, and $5.0 million and $3.6 million for the nine months ended September 30, 2016 and 2015 , respectively. Some leases have defined escalating rent provisions, which are expensed over the term of the related lease on a straight-line basis commencing with the date of possession. Any rent allowance or abatement is netted in this calculation. All leases require payment of real estate taxes and operating expense increases. In 2016, the Company’s lease for its office facility in New York City was amended to, among other things, provide for the lease of approximately 25,000 square feet of additional office space and extend the term of the lease. In connection with the underlying lease agreement, the Company entered into a letter of credit as a security deposit for the leased facilities, which was increased to $2.6 million in connection with the January 2016 amendment. The letter of credit was collateralized by $2.6 million of cash as of September 30, 2016 , which is recorded as restricted cash and is included in other assets in the consolidated balance sheet. As amended, the lease is scheduled to expire in 2029 and aggregate future minimum payments under the amended lease are approximately $83.8 million . Capital Expenditures As of September 30, 2016 , the Company had outstanding commitments to purchase approximately $0.2 million of data servers and other equipment related to the expansion of its existing business and infrastructure. Other Obligations As of September 30, 2016 , the Company had other obligations in the amount of approximately $26.9 million , which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of September 30, 2016 , the Company’s other obligations for the remainder of 2016 and for the years ending December 31, 2017 , 2018 , 2019 and 2020 were approximately $1.2 million , $9.7 million , $8.1 million , $4.0 million and $3.8 million , respectively. Legal Matters From time to time, the Company may become party to litigation in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company reviews reserves, if any, at least quarterly and may change the amount of any such reserve in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and threats of litigation, investigations and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company currently has no material active litigation matters and, as such, no material reserves related to litigation . Indemnification In the ordinary course of business, the Company enters into contractual agreements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of the Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of any modifications made by the customer, or the context in which an image is used. The Company’s license agreements generally cap indemnification obligations at amounts ranging from $10,000 to $250,000 , with certain exceptions for which the Company’s indemnification obligations are uncapped. As of September 30, 2016 , the Company had recorded no material liabilities related to indemnification obligations in accordance with the authoritative guidance for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary. Employment Agreements and Indemnification Agreements The Company has entered into employment arrangements and indemnification agreements with its executive officers, directors and certain employees. These agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause.

Shareholders' Equity and Equity

Shareholders' Equity and Equity-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shareholders' Equity and Equity-Based Compensation	Stockholders’ Equity and Equity-Based Compensation Stockholders’ Equity Common Stock During the nine months ended September 30, 2016 , the Company issued approximately 708,000 shares of common stock, related primarily to the exercise of stock options and the vesting of restricted stock units (“RSUs”). Treasury Stock In October 2015, the Company’s Board of Directors approved a share repurchase program, pursuant to which the Company is authorized to purchase up to $100 million of its common stock. The Company expects to fund repurchases through a combination of cash on hand, cash generated by operations and future financing transactions, if needed. Accordingly, the Company’s share repurchase program is subject to the Company having available cash to fund repurchases. Under the program, the Company is authorized to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. During the nine months ended September 30, 2016 , the Company repurchased approximately 1,280,000 shares of its common stock under the share repurchase program at an average per-share cost of approximately $34.44 . As of September 30, 2016 , the Company had $40.3 million remaining for purchases under the share repurchase program. Equity-Based Compensation The Company recognizes stock-based compensation expense for all share-based payment awards including employee stock options and RSUs granted under the 2012 Omnibus Equity Incentive Plan and sales of shares of common stock under the 2012 Employee Stock Purchase Plan (the “2012 ESPP”) based on each award’s fair value on the grant date. The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of revenue $ 498 $ 496 $ 1,552 $ 1,444 Sales and marketing 1,524 1,364 4,072 4,110 Product development 1,580 1,743 5,732 5,863 General and administrative 2,903 4,080 9,754 11,354 Total $ 6,505 $ 7,683 $ 21,110 $ 22,771 The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Stock options $ 1,751 $ 2,663 $ 5,379 $ 6,486 RSUs 4,602 4,724 15,211 15,244 ESPP shares 152 169 477 589 RSUs related to the acquisition of WebDAM — 127 43 452 Total $ 6,505 $ 7,683 $ 21,110 $ 22,771 Stock Option Awards During the nine months ended September 30, 2016 , the Company granted options to purchase approximately 515,000 shares of its common stock with a weighted average exercise price of $37.06 . As of September 30, 2016 , there were approximately 215,000 options vested and exercisable with a weighted average exercise price of $32.01 . As of September 30, 2016 , the total unrecognized compensation charge related to non-vested options was approximately $24.3 million , which is expected to be recognized through the fiscal year 2021 . Restricted Stock Units During the nine months ended September 30, 2016 , the Company granted approximately 847,000 RSUs. As of September 30, 2016 there are approximately 1,301,000 non-vested RSUs outstanding. As of September 30, 2016 , the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $46.6 million , which is expected to be recognized through fiscal year 2021 . Included in the total number of RSUs granted during the nine months ended September 30, 2016 was approximately 31,000 RSUs granted and issued in satisfaction of the Company’s liability to certain WebDAM executives to provide a fixed-dollar amount of RSUs in connection with the acquisition. As of September 30, 2016 , the Company had no additional stock-based compensation awards which require liability accounting. ESPP Shares During the nine months ended September 30, 2016 , approximately 26,000 shares of the Company’s common stock were issued under the 2012 ESPP.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company has a 401(k) defined contribution plan and provides for annual discretionary employer matching contributions not to exceed 3% of employees’ base compensation per year. Matching contributions are fully vested and non-forfeitable at all times. The Company recorded expenses related to employer matching contributions of $0.5 million and $0.4 million for the three months ended September 30, 2016 and 2015 , respectively, and $1.5 million and $1.0 million for the nine months ended September 30, 2016 and 2015 , respectively.

Other Expense, Net

Other Expense, Net	9 Months Ended
	Sep. 30, 2016
Other Nonoperating Income (Expense) [Abstract]
Other Expense, Net	Other Expense, Net The following table presents a summary of the Company’s other income and expense activity included in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Foreign currency gain (loss) $ 192 $ (244 ) $ 739 $ (2,005 ) Change in fair value of contingent consideration (130 ) (540 ) (974 ) (1,440 ) Interest income 40 17 113 59 Total income (expense) $ 102 $ (767 ) $ (122 ) $ (3,386 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates were 17.6% and 43.9% for the three months ended September 30, 2016 and 2015 , respectively, and 29.9% and 43.9% for the nine months ended September 30, 2016 and 2015 , respectively. The Company incurred discrete tax items, the net effect of which decreased the effective tax rate by 22.3% and 1.6% for the three months ended September 30, 2016 and 2015 , respectively, and decreased the effective rate by 10.0% and increased the effective rate by 0.6% for the nine months ended September 30, 2016 and 2015 , respectively. In the third quarter of fiscal 2016, the Company completed a study which determined the amount of the U.S. Research and Development tax credit for the years 2013 to 2015 to which it was entitled. The 2015 tax credit was reflected in the 2015 federal tax return filed in the third quarter of 2016 and the 2013 and 2014 tax credits will be reflected in an amended federal tax return. The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The estimated annual effective tax rate differs from the statutory tax rate due primarily to non-deductible expenses related to non-cash equity-based compensation. During the three months ended September 30, 2016, unrecognized tax benefits recorded by the Company for uncertain tax positions taken in prior years were $1.0 million . During the nine months ended September 30, 2016, the unrecognized tax benefits recorded by the Company of $1.0 million were offset by a recognized tax benefit of $1.0 million related to the release of a reserve for uncertain tax positions due to a lapse in the statute of limitations, resulting in a net amount recorded that was not material. During the three and nine months ended September 30 2015, unrecognized tax benefits recorded by the Company for uncertain tax positions taken in prior years were not material. To the extent the remaining unrecognized tax benefits are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not material for the each of three and nine months ended September 30, 2016 and 2015 . As of September 30, 2016 , the Company had approximately $2.3 million of undistributed earnings attributable to its foreign subsidiaries. It is the Company’s practice and intention to indefinitely reinvest the earnings of its foreign subsidiaries in those operations. The Company has not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences resulting from the earnings indefinitely reinvested outside the United States. It is currently not practicable for the Company to calculate the associated unrecognized deferred tax liability.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income per share is computed by dividing the net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, is excluded from weighted average number of common shares outstanding. Income available to common stockholders is computed by deducting income allocated to participating securities, if any, including unvested shares for the restricted award holder since these unvested shares have participating rights. Diluted net income per share is computed by dividing the net income attributable to common stockholders by the weighted average common shares outstanding and all potential common shares, if they are dilutive. A reconciliation of assumed exercised shares used in calculating basic and diluted net income per share available to common stockholders follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic 35,036 36,040 35,123 35,848 Stock options and ESPP shares 315 230 298 337 Unvested RSUs and restricted stock awards 473 — 434 84 Diluted 35,824 36,270 35,855 36,269 Dilutive securities included in the calculation 2,097 681 1,940 1,538 Anti-dilutive securities excluded from the calculation 856 1,793 1,061 1,056

Geographic Information

Geographic Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Geographic Information	Geographic Information The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 North America $ 49,221 $ 42,153 $ 145,928 $ 120,848 Europe 39,382 35,453 119,662 104,499 Rest of the world 34,470 29,654 98,554 83,800 Total revenue $ 123,073 $ 107,260 $ 364,144 $ 309,147 The United States, included in North America in the above table, accounted for 34% of consolidated revenue for both of the three months ended September 30, 2016 and 2015 , and 35% and 34% for the nine months ended September 30, 2016 and 2015 , respectively. The United Kingdom, included in Europe in the above table, accounted for 9% and 10% of total revenue for the three and nine months ended September 30, 2016 , respectively, and 11% of consolidated revenue for both of the three and nine months ended September 30, 2015 . No other country accounts for more than 10% of the Company’s revenue in any period presented. The Company’s long-lived tangible assets were located as follows (in thousands): September 30, December 31, 2016 2015 North America $ 48,631 $ 31,699 Europe 1,183 395 Total long-lived tangible assets $ 49,814 $ 32,094

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 20, 2016, the Company entered into a multi-part transaction (the “Transaction”) with an unrelated third-party contributor (the “Transaction Party”). The Transaction included three primary components: (a) a revolving credit facility pursuant to which the Company would be obligated to lend up to $4.6 million (the “Facility”) to the Transaction Party. The Facility has a term of five years and requires the Transaction Party to make quarterly payments of principal to the Company beginning on the fourth anniversary of the Facility. The facility bears interest at 10.0% , with all interest payments deferred until maturity, and the entire unpaid balance of principal and accrued interest due upon maturity; (b) the Company will be the exclusive distributor of the Transaction Party’s content in certain markets subject to certain limitations; and (c) the Company, at its option, may acquire the Transaction Party at any time after the third anniversary of the Facility or match any third-party acquisition offer at any time until the fifth anniversary of the Facility.

Summary of Operations and Sig20

Summary of Operations and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statements.
Unaudited Interim Financial Statements	The interim consolidated balance sheet as of September 30, 2016 , the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 , and the consolidated statement of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The consolidated balance sheet as of December 31, 2015 , included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by U.S. GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position as of September 30, 2016 and its consolidated results of operations, comprehensive income and cash flows for the three and nine months ended September 30, 2016 and 2015 . The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016 or for any other future annual or interim period. There have been no material changes in the significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 24, 2016 . These financial statements should also be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015 . The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. The Company evaluates its significant estimates on an ongoing basis, including, but not limited to allowance for doubtful accounts, sales refund reserve, accruals related to self-insurance, the fair value of goodwill, intangible assets and other long-lived assets, non-cash equity-based compensation, the fair value of contingent consideration, the provision for income taxes and the amount of certain non-income tax accruals. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Restricted Cash	Restricted Cash The Company’s restricted cash relates to security deposits for its office leases. As of September 30, 2016 and December 31, 2015 , the Company had restricted cash of approximately $2.6 million and $1.8 million , respectively, in other assets that related to the lease for its headquarters in New York City, which expires in 2029 . In January 2016, this lease was amended to provide additional space and extend the lease term, which required an increased security deposit. The carrying value of restricted cash approximates fair value.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company’s accounts receivable consist of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates.
Deferred Rent	Deferred Rent The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized and the actual payments made in accordance with the lease agreement is recognized as a deferred rent liability on the Company’s balance sheet.
Chargeback and Sales Refund Allowance	Chargeback and Sales Refund Allowance The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information.
Medical Self-insurance Costs	Medical Self-insurance Costs The Company is partially self-insured for claims relating to employee medical benefit programs. The medical self-insurance program is administered by a third party and contains stop-loss provisions on both an individual claim basis and in aggregate. The Company records claims incurred as an expense each period, including an estimate of claims incurred but not yet reported. The Company uses claims data and historical experience, as applicable, to estimate the liability for unreported claims and believes that the methodologies used to estimate insurance liabilities result in an accurate reflection of the liabilities as of the date of the balance sheet.
Contingent Consideration	Contingent Consideration The Company records a liability for contingent consideration at the date of a business combination and reassesses the fair value of the liability each period until it is settled. Upon settlement of these liabilities, the portion of the contingent consideration payment that is attributable to the initial amount recorded as part of the business combination is classified as a cash flow from financing activities and the portion of the settlement that is attributable to subsequent changes in the fair value of the contingent consideration is classified as a cash flow from operating activities in the consolidated statement of cash flows.
Income Taxes	Income Taxes The Company’s income tax expense includes U.S. (federal and state) and foreign income taxes. Significant management judgment is required in projecting ordinary income in order to determine the Company’s estimated effective tax rate. The Company has assessed the realizability of deferred tax assets and determined that based on the available evidence, including a history of taxable income and estimates of future taxable income, it is more likely than not that the deferred tax assets will be realized. Quarterly, the Company will continue to evaluate its ability to realize deferred tax assets. Significant management judgment is required in determining the provision for income taxes and deferred tax assets and liabilities. In the event that actual results differ from these estimates, the Company will adjust these estimates in future periods, which may result in a change in the effective tax rate in a future period.
Recently Issued Accounting Standard Updates	Recently Issued Accounting Standard Updates In August 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the statement of cash flows. The new guidance is intended to provide clarification and reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and should be applied retrospectively. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In June 2016, the FASB issued new guidance which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance is required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In March 2016, the FASB issued new guidance related to stock-based compensation. The new standard changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of certain related items in the statement of cash flows. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective approach; amendments related to the recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively; and amendments related to the presentation of excess tax benefits on the statement of cash flows may be applied prospectively or retrospectively. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In February 2016, the FASB issued new guidance related to leases. The new standard requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and can be applied using a modified retrospective approach for all leases entered into before the effective date. Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In November 2015, the FASB issued new guidance related to income taxes. The new standard requires that all deferred tax assets and liabilities, and any related valuation allowance, be classified as non-current on the balance sheet. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, although early adoption is permitted and can be applied either prospectively or retrospectively to all periods presented. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and will eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB approved the deferral of the effective date of this guidance by one year. As a result, this new guidance will be effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company may choose to adopt the standard as of the original effective date for annual reporting periods beginning after December 15, 2016; if it does so, the Company is required to apply the standard beginning in the first interim period within the year of adoption. The Company is evaluating the impact of adopting this new accounting standard on its financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value measurements	The following tables present the Company’s fair value hierarchy for its assets and liabilities (in thousands): As of September 30, 2016 Aggregate Fair Value Level 1 Level 2 Level 3 Assets: Money market accounts $ 84,095 $ 84,095 $ — $ — Commercial paper 52,407 — 52,407 Total assets measured at fair value $ 136,502 $ 84,095 $ 52,407 $ — Liabilities: Acquisition-related contingent consideration $ 9,700 $ — $ — $ 9,700 Total liabilities measured at fair value $ 9,700 $ — $ — $ 9,700 As of December 31, 2015 Aggregate Fair Value Level 1 Level 2 Level 3 Assets: Money market accounts $ 89,153 $ 89,153 $ — $ — Commercial paper 47,078 — 47,078 — Total assets measured at fair value $ 136,231 $ 89,153 $ 47,078 $ — Liabilities: Acquisition-related contingent consideration $ 11,075 $ — $ — $ 11,075 Total liabilities measured at fair value $ 11,075 $ — $ — $ 11,075
Schedule of short-term investments	Short-term investments are summarized as follows (in thousands): As of September 30, 2016 As of December 31, 2015 Commercial Paper: Amortized cost $ 52,417 $ 47,084 Unrealized gains — — Unrealized losses (10 ) (6 ) Total short-term investments measured at fair value $ 52,407 $ 47,078

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Summary of property and equipment	Property and equipment is summarized as follows (in thousands): As of September 30, 2016 As of December 31, 2015 Computer equipment and software $ 55,628 $ 37,502 Furniture and fixtures 3,329 2,933 Leasehold improvements 18,769 14,471 Property and equipment 77,726 54,906 Less accumulated depreciation (27,912 ) (22,812 ) Property and equipment, net $ 49,814 $ 32,094

Goodwill, Intangible Assets a23

Goodwill, Intangible Assets and Acquisition Activity (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following table summarizes the changes in the Company’s goodwill balance by reportable and non-reportable segments through September 30, 2016 (in thousands): Consolidated Content Business Other Category Balance as of December 31, 2015 $ 50,934 $ 42,171 $ 8,763 Foreign currency translation adjustment (411 ) (411 ) — Balance as of September 30, 2016 $ 50,523 $ 41,760 $ 8,763
Schedule of intangible assets	Intangible assets consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Weighted Gross Accumulated Amortizing intangible assets: Customer relationships $ 17,366 $ (3,950 ) 9 $ 19,523 $ (3,089 ) Trade name 6,993 (1,851 ) 7 7,111 (1,188 ) Developed technology 3,364 (1,773 ) 4 3,734 (1,129 ) Contributor content 11,411 (1,083 ) 11 5,138 (567 ) Patents 222 (49 ) 18 193 (40 ) Domain name 160 (47 ) 11 120 (25 ) Total $ 39,516 $ (8,753 ) $ 35,819 $ (6,038 )
Purchase price allocation	The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands): Acquisition Activity Assets acquired: Cash $ 1,525 Accounts receivable 2,908 Other assets 1,319 Fixed assets 297 Intangible assets (1) 27,433 Goodwill 44,767 Deferred tax asset 229 Total assets acquired $ 78,478 Liabilities assumed: Accounts payable $ (253 ) Contributor payable (3,145 ) Accrued expenses (2,431 ) Deferred revenue (23 ) Deferred tax liability (4,454 ) Total liabilities assumed $ (10,306 ) Total $ 68,172 ______________________________________________________________________________ (1) Identifiable intangible assets include customer relationships, trade names, developed technology and content libraries and are being amortized on a straight-line basis over a weighted average life of approximately eight years .

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Compensation $ 10,186 $ 8,995 Non-income taxes 6,831 7,095 Royalty tax withholdings 6,768 6,439 Payroll tax withholdings 4,476 426 Professional fees 2,428 902 Marketing expenses 542 237 Other expenses 7,895 6,602 Total accrued expenses $ 39,126 $ 30,696

Shareholders' Equity and Equi25

Shareholders' Equity and Equity-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of non-cash equity-based compensation expense included in the Company's statement of operations	The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of revenue $ 498 $ 496 $ 1,552 $ 1,444 Sales and marketing 1,524 1,364 4,072 4,110 Product development 1,580 1,743 5,732 5,863 General and administrative 2,903 4,080 9,754 11,354 Total $ 6,505 $ 7,683 $ 21,110 $ 22,771 The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Stock options $ 1,751 $ 2,663 $ 5,379 $ 6,486 RSUs 4,602 4,724 15,211 15,244 ESPP shares 152 169 477 589 RSUs related to the acquisition of WebDAM — 127 43 452 Total $ 6,505 $ 7,683 $ 21,110 $ 22,771

Other Expense, Net (Tables)

Other Expense, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Other Nonoperating Income (Expense) [Abstract]
Summary of the Company's other (expense) income, net activity	The following table presents a summary of the Company’s other income and expense activity included in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Foreign currency gain (loss) $ 192 $ (244 ) $ 739 $ (2,005 ) Change in fair value of contingent consideration (130 ) (540 ) (974 ) (1,440 ) Interest income 40 17 113 59 Total income (expense) $ 102 $ (767 ) $ (122 ) $ (3,386 )

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	A reconciliation of assumed exercised shares used in calculating basic and diluted net income per share available to common stockholders follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic 35,036 36,040 35,123 35,848 Stock options and ESPP shares 315 230 298 337 Unvested RSUs and restricted stock awards 473 — 434 84 Diluted 35,824 36,270 35,855 36,269 Dilutive securities included in the calculation 2,097 681 1,940 1,538 Anti-dilutive securities excluded from the calculation 856 1,793 1,061 1,056

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 North America $ 49,221 $ 42,153 $ 145,928 $ 120,848 Europe 39,382 35,453 119,662 104,499 Rest of the world 34,470 29,654 98,554 83,800 Total revenue $ 123,073 $ 107,260 $ 364,144 $ 309,147
Long-lived Assets by Geographic Areas	The Company’s long-lived tangible assets were located as follows (in thousands): September 30, December 31, 2016 2015 North America $ 48,631 $ 31,699 Europe 1,183 395 Total long-lived tangible assets $ 49,814 $ 32,094

Summary of Operations and Sig29

Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts
Allowance for doubtful accounts	$ 6.2	$ 3.8
Deferred Rent
Deferred rent balance		8
Deferred rent non-current balance	8.1	7.3
Deferred rent current balance		0.7
Chargeback and sales refund allowances	0.7	0.7
Other assets
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash related to security deposits for leased office location that expires in 2024	$ 2.6	$ 1.8

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Estimate of Fair Value Measurement - Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets:
Total assets measured at fair value	$ 136,502	$ 136,231
Liabilities:
Total liabilities measured at fair value	9,700	11,075
Acquisition-related contingent consideration
Liabilities:
Total liabilities measured at fair value	9,700	11,075
Money market accounts
Assets:
Total assets measured at fair value	84,095	89,153
Commercial Paper
Assets:
Total assets measured at fair value	52,407	47,078
Level 1
Assets:
Total assets measured at fair value	84,095	89,153
Liabilities:
Total liabilities measured at fair value	0	0
Level 1 | Money market accounts
Assets:
Total assets measured at fair value	84,095	89,153
Level 2
Assets:
Total assets measured at fair value	52,407	47,078
Liabilities:
Total liabilities measured at fair value	0	0
Level 2 | Commercial Paper
Assets:
Total assets measured at fair value	52,407	47,078
Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value	9,700	11,075
Level 3 | Acquisition-related contingent consideration
Liabilities:
Total liabilities measured at fair value	$ 9,700	$ 11,075

Fair Value Measurements (Deta31

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Short term investments and fair value measurements
Total short-term investments measured at fair value	$ 52,407	$ 47,078
Commercial Paper:
Short term investments and fair value measurements
Amortized cost	52,417	47,084
Unrealized gains	0	0
Unrealized losses	(10)	(6)
Total short-term investments measured at fair value	$ 52,407	$ 47,078

Fair Value Measurements (Deta32

Fair Value Measurements (Details 3) - USD ($)	1 Months Ended	9 Months Ended
	Apr. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid		$ (2,600,000)	$ (1,440,000)
Acquisition-related contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value contingent consideration		9,700,000
Fair value included in other non-current liabilities					$ 7,100,000
Estimate of Fair Value Measurement | Virtual Moment, LLC (WebDAM) | Acquisition-related contingent consideration | Recurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid	$ 4,000,000	0
Estimate of Fair Value Measurement | Arbour Interactive Inc (PremiumBeat) | Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration paid		(2,600,000)
Estimate of Fair Value Measurement | Other Current Liabilities | Virtual Moment, LLC (WebDAM) | Acquisition-related contingent consideration | Recurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration		$ 0			$ 4,000,000
Estimate of Fair Value Measurement | Other Current Liabilities | Arbour Interactive Inc (PremiumBeat) | Acquisition-related contingent consideration | Recurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration				$ 10,000,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property and Equipment
Property and equipment	$ 77,726		$ 77,726		$ 54,906
Less accumulated depreciation	(27,912)		(27,912)		(22,812)
Property and equipment, net	49,814		49,814		32,094
Depreciation expense	3,900	$ 2,600	10,400	$ 6,900
Capitalized amount	6,500	300	12,800	600
Amortization expense	1,000	$ 100	2,100	$ 300
Internal use software	14,500		14,500		3,900
Computer equipment and software
Property and Equipment
Property and equipment	55,628		55,628		37,502
Furniture and fixtures
Property and Equipment
Property and equipment	3,329		3,329		2,933
Leasehold improvements
Property and Equipment
Property and equipment	$ 18,769		$ 18,769		$ 14,471

Goodwill, Intangible Assets a34

Goodwill, Intangible Assets and Acquisition Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 50,934
Foreign currency translation adjustment	(411)
Balance at the end of the period	50,523
Content Business
Changes in goodwill
Balance at the beginning of the period	42,171
Foreign currency translation adjustment	(411)
Balance at the end of the period	41,760
Other Category
Changes in goodwill
Balance at the beginning of the period	8,763
Foreign currency translation adjustment	0
Balance at the end of the period	$ 8,763

Goodwill, Intangible Assets a35

Goodwill, Intangible Assets and Acquisition Activity (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Amortizing intangible assets:
Gross Carrying Amount	$ 39,516	$ 35,819
Accumulated Amortization	(8,753)	(6,038)
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	17,366	19,523
Accumulated Amortization	$ (3,950)	(3,089)
Customer relationships | Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,993	7,111
Accumulated Amortization	$ (1,851)	(1,188)
Trade name | Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 3,364	3,734
Accumulated Amortization	$ (1,773)	(1,129)
Developed technology | Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 11,411	5,138
Accumulated Amortization	$ (1,083)	(567)
Contributor content | Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	11 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 222	193
Accumulated Amortization	$ (49)	(40)
Patents | Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	18 years
Domain name
Amortizing intangible assets:
Gross Carrying Amount	$ 160	120
Accumulated Amortization	$ (47)	$ (25)
Domain name | Contractual Weighted Average Life (Years)
Amortizing intangible assets:
Weighted Average Life (Years)	11 years

Goodwill, Intangible Assets a36

Goodwill, Intangible Assets and Acquisition Activity (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1.2	$ 1.3	$ 3.8	$ 3.5
Remainder of 2016	1.3		1.3
2,017	5.3		5.3
2,018	4.4		4.4
2,019	4.3		4.3
2,020	3.6		3.6
2,021	3.2		3.2
Thereafter	$ 8.6		$ 8.6

Goodwill, Intangible Assets a37

Goodwill, Intangible Assets and Acquisition Activity (Details 4) image in Thousands	Sep. 01, 2016USD ($)image	Jan. 22, 2015USD ($)	Jan. 19, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Business Acquisition [Line Items]
Cash payment						$ 0	$ 62,379,000
Change in fair value of contingent consideration						2,600,000	1,440,000
The Picture Desk
Business Acquisition [Line Items]
Number of images acquired | image	700
Cash payment	$ 3,900,000
Rex Features
Business Acquisition [Line Items]
Purchase price			$ 32,700,000
Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Cash payment		$ 31,700,000
Purchase price		35,400,000
Contingent consideration		$ 3,700,000
Other Liabilities | Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Contingent consideration				$ 9,700,000		9,700,000
Other Expense
Business Acquisition [Line Items]
Change in fair value of contingent consideration				130,000	$ 540,000	974,000	1,440,000
General and administrative
Business Acquisition [Line Items]
Professional fees				$ 0	$ 0	0	$ 400,000
Estimate of Fair Value Measurement | Recurring Basis | Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Change in fair value of contingent consideration						2,600,000
Estimate of Fair Value Measurement | Other Expense | Recurring Basis | Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Change in fair value of contingent consideration						1,000,000
Estimate of Fair Value Measurement | General and administrative | Recurring Basis | Arbour Interactive Inc (PremiumBeat)
Business Acquisition [Line Items]
Change in fair value of contingent consideration						$ 1,700,000
Trade name | The Picture Desk
Business Acquisition [Line Items]
Intangible asset acquired	$ 300,000
Estimated useful life (in years)	7 years
Images | The Picture Desk
Business Acquisition [Line Items]
Estimated useful life (in years)	15 years

Goodwill, Intangible Assets a38

Goodwill, Intangible Assets and Acquisition Activity (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2016
Business Acquisition [Line Items]
Goodwill	$ 50,934	$ 50,523
Rex Features and Arbour Interactive Inc
Business Acquisition [Line Items]
Cash	1,525
Accounts receivable	2,908
Other assets	1,319
Fixed assets	297
Intangible assets(1)	27,433
Goodwill	44,767
Deferred tax asset	229
Total assets acquired	78,478
Accounts payable	(253)
Contributor payable	(3,145)
Accrued expenses	(2,431)
Deferred revenue	(23)
Deferred tax liability	(4,454)
Total liabilities assumed	(10,306)
Total	$ 68,172
Weighted average life (in yers)	8 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Compensation	$ 10,186	$ 8,995
Non-income taxes	6,831	7,095
Royalty tax withholdings	6,768	6,439
Payroll tax withholdings	4,476	426
Professional fees	2,428	902
Marketing expenses	542	237
Other expenses	7,895	6,602
Total accrued expenses	$ 39,126	$ 30,696

Commitments and Contingencies (

Commitments and Contingencies (Details) ft² in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)ft²	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)ft²	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Operating leases
Rental expense inclusive of operating leases	$ 2.1	$ 1.2	$ 5	$ 3.6
Letter of credit as a security deposit for the leased facilities	2.6		2.6
Future minimum lease payments under non-cancelable operating leases
Total minimum lease payments	83.8		83.8
Other assets
Operating leases
Letter of credit collateralized as restricted cash	$ 2.6		$ 2.6		$ 1.8
New York CIty Office Space
Operating leases
Area of additional office space (sq ft) | ft²	25		25

Commitments and Contingencies41

Commitments and Contingencies (Details 2)	9 Months Ended
	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitment to purchase data server equipment	$ 200,000
Other obligations	26,900,000
Maturity of unconditional purchase obligations
Remainder of 2016	1,200,000
2,017	9,700,000
2,018	8,100,000
2,019	4,000,000
2,020	3,800,000
Indemnifications
Minimum aggregate obligation and liability	10,000
Maximum aggregate obligation and liability	250,000
Material indemnification obligation	$ 0

Shareholders' Equity and Equi42

Shareholders' Equity and Equity-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	$ 6,505	$ 7,683	$ 21,110	$ 22,771
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	498	496	1,552	1,444
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	1,524	1,364	4,072	4,110
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	1,580	1,743	5,732	5,863
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Recognized compensation charge	$ 2,903	$ 4,080	$ 9,754	$ 11,354

Shareholders' Equity and Equi43

Shareholders' Equity and Equity-Based Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	$ 6,505	$ 7,683	$ 21,110	$ 22,771
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	1,751	2,663	5,379	6,486
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	4,602	4,724	15,211	15,244
2012 ESPP | Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense net of estimated forfeitures recognized in connection with one-time acceleration charge	152	169	477	589
Virtual Moment, LLC (WebDAM) | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock-based compensation expense, net of estimated forfeitures	$ 0	$ 127	$ 43	$ 452

Shareholders' Equity and Equi44

Shareholders' Equity and Equity-Based Compensation (Details 3) - USD ($) $ / shares in Units, shares in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares repurchased	1,739	460
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	708
Authorized repurchase amount			$ 100,000,000
Number of shares repurchased	1,280
Per-share cost (in dollars per share)	$ 34.44
Purchase amount remaining	$ 40,300,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	847
Number of units outstanding	1,301
Value Appreciation Rights Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted	515
Weighted average exercise price (in dollars per share)	$ 37.06
Number of options vested and exercisable	215
Weighted average exercise price of options vested and exercisable (in dollars per share)	$ 32.01
2012 Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation charge, 2012 plan non-vested options	$ 24,300,000
2012 Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized non-cash equity-based compensation charge, 2012 Plan non-vested restricted stock and RSU	$ 46,600,000
2012 ESPP | Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	26
Virtual Moment, LLC (WebDAM) | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	31

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Annual discretionary employer matching contributions (as a percent)			3.00%
Employer matching contributions	$ 0.5	$ 0.4	$ 1.5	$ 1

Other Expense, Net (Details)

Other Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Income Statements, Captions [Line Items]
Foreign currency gain (loss)	$ 192	$ (244)	$ 739	$ (2,005)
Change in fair value of contingent consideration			(2,600)	(1,440)
Interest income	40	17	113	59
Other expense, net	102	(767)	(122)	(3,386)
Other Expense
Condensed Income Statements, Captions [Line Items]
Change in fair value of contingent consideration	$ (130)	$ (540)	$ (974)	$ (1,440)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	17.60%	43.90%	29.90%	43.90%
Change in effective tax rate	(22.30%)	(1.60%)	(10.00%)	0.60%
Unrecognized tax benefits	$ 1		$ 1
Recognized tax benefit	(1)		(1.2)
Undistributed earnings	$ 2.3		$ 2.3

Net Income Per Share (Details)

Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Basic (in shares)	35,036	36,040	35,123	35,848
Stock options and ESPP shares (in shares)	315	230	298	337
Unvested RSUs and restricted stock awards (in shares)	473	0	434	84
Diluted (in shares)	35,824	36,270	35,855	36,269
Dilutive securities included in the calculation (in shares)	2,097	681	1,940	1,538
Anti-dilutive securities excluded from the calculation (in shares)	856	1,793	1,061	1,056

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 123,073	$ 107,260	$ 364,144	$ 309,147
Long-lived tangible assets	49,814		49,814		$ 32,094
North America
Geographic revenue based on customer location and long-lived tangible assets
Revenue	49,221	$ 42,153	145,928	$ 120,848
Long-lived tangible assets	$ 48,631		$ 48,631		31,699
United States | Total revenue | Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	34.00%	34.00%	35.00%	34.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 39,382	$ 35,453	$ 119,662	$ 104,499
Long-lived tangible assets	$ 1,183		$ 1,183		$ 395
United Kingdom | Total revenue | Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	9.00%	11.00%	10.00%	11.00%
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 34,470	$ 29,654	$ 98,554	$ 83,800

Subsequent Events (Details)

Subsequent Events (Details) - The Facility - Revolving Credit Facility - Subsequent Event	Oct. 20, 2016USD ($)
Subsequent Event [Line Items]
The Facility amount (up to)	$ 4,600,000
Debt term (in years)	5 years
Interest rate percent	10.00%