Shutterstock (SSTK) 10-Q 6 Aug 19 2019 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2019	Aug. 02, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-35669
Entity Registrant Name	SHUTTERSTOCK, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0812659
Entity Address, Address Line One	350 Fifth Avenue, 21st Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10118
City Area Code	646
Local Phone Number	710-3417
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	SSTK
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35,294,729
Entity Central Index Key	0001549346
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 259,069	$ 230,852
Accounts receivable, net	44,295	41,028
Prepaid expenses and other current assets	29,747	34,841
Total current assets	333,111	306,721
Property and equipment, net	68,350	76,188
Right-of-use assets	44,808
Intangible assets, net	26,532	29,540
Goodwill	88,427	88,576
Deferred tax assets, net	13,642	12,375
Other assets	18,083	18,088
Total assets	592,953	531,488
Current liabilities:
Accounts payable	3,888	7,212
Accrued expenses	53,278	51,385
Contributor royalties payable	24,010	22,971
Deferred revenue	137,131	139,604
Other current liabilities	10,511	2,131
Total current liabilities	228,818	223,303
Deferred tax liability, net	0	77
Lease liabilities	47,007
Other non-current liabilities	13,207	21,441
Total liabilities	289,032	244,821
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 37,816 and 37,618 shares issued and 35,258 and 35,060 shares outstanding as of June 30, 2019 and December 31, 2018, respectively	379	376
Treasury stock, at cost; 2,558 shares as of June 30, 2019 and December 31, 2018	(100,027)	(100,027)
Additional paid-in capital	299,122	291,710
Accumulated comprehensive loss	(7,453)	(6,471)
Retained earnings	111,900	101,079
Total stockholders’ equity	303,921	286,667
Total liabilities and stockholders’ equity	$ 592,953	$ 531,488

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	37,816,000	37,618,000
Common stock, shares outstanding (in shares)	35,258,000	35,060,000
Treasury stock, shares held in treasury (in shares)	2,558,000	2,558,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue	$ 161,741	$ 156,584	$ 325,073	$ 309,603
Operating expenses:
Cost of revenue	68,526	67,891	137,744	132,381
Sales and marketing	44,488	42,018	88,934	82,386
Product development	13,594	16,728	28,580	33,176
General and administrative	32,063	24,322	58,646	51,546
Total operating expenses	158,671	150,959	313,904	299,489
Income from operations	3,070	5,625	11,169	10,114
Gain on Sale of Webdam	0	0	0	38,613
Other income / (expense), net	584	(7,019)	1,480	(6,217)
Income / (Loss) before taxes	3,654	(1,394)	12,649	42,510
Provision / (Benefit) for income taxes	355	(1,140)	1,828	10,183
Net income / (loss)	$ 3,299	$ (254)	$ 10,821	$ 32,327
Earnings / (Loss) per share:
Basic (in dollars per share)	$ 0.09	$ (0.01)	$ 0.31	$ 0.93
Diluted (in dollars per share)	$ 0.09	$ (0.01)	$ 0.30	$ 0.91
Weighted average shares outstanding:
Basic (in shares)	35,232	34,913	35,174	34,849
Diluted (in shares)	35,504	34,913	35,499	35,343

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income / (loss)	$ 3,299	$ (254)	$ 10,821	$ 32,327
Foreign currency translation loss	(1,027)	(4,181)	(982)	(3,106)
Other comprehensive loss	(1,027)	(4,181)	(982)	(3,106)
Comprehensive income / (loss)	$ 2,272	$ (4,435)	$ 9,839	$ 29,221

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjusted beginning balance	$ 320,763	$ 373	$ (100,027)	$ 272,657	$ (3,557)	$ 151,317
Beginning balance (in shares) at Dec. 31, 2017		37,270	2,558
Beginning balance at Dec. 31, 2017	314,585	$ 373	$ (100,027)	272,657	(3,557)	145,139
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	12,035			12,035
Issuance of common stock in connection with employee stock option exercises and RSU vesting	1,866	$ 3		1,863
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		343
Common shares withheld for settlement of taxes in connection with equity-based compensation	(4,972)	$ (1)		(4,971)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(103)
Other comprehensive income (loss)	(3,106)				(3,106)
Net income / (loss)	32,327					32,327
Ending balance at Jun. 30, 2018	358,913	$ 375	$ (100,027)	281,584	(6,663)	183,644
Ending balance (in shares) at Jun. 30, 2018		37,510	2,558
Beginning balance (in shares) at Mar. 31, 2018		37,439	2,558
Beginning balance at Mar. 31, 2018	357,164	$ 375	$ (100,027)	275,400	(2,482)	183,898
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	6,429			6,429
Issuance of common stock in connection with employee stock option exercises and RSU vesting	687	$ 0		687
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		91
Common shares withheld for settlement of taxes in connection with equity-based compensation	(932)	$ 0		(932)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(20)
Other comprehensive income (loss)	(4,181)				(4,181)
Net income / (loss)	(254)					(254)
Ending balance at Jun. 30, 2018	358,913	$ 375	$ (100,027)	281,584	(6,663)	183,644
Ending balance (in shares) at Jun. 30, 2018		37,510	2,558
Beginning balance (in shares) at Dec. 31, 2018		37,618	2,558
Beginning balance at Dec. 31, 2018	286,667	$ 376	$ (100,027)	291,710	(6,471)	101,079
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	12,375			12,375
Issuance of common stock in connection with employee stock option exercises and RSU vesting	222	$ 4		218
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		312
Common shares withheld for settlement of taxes in connection with equity-based compensation	(5,182)	$ (1)		(5,181)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(114)
Other comprehensive income (loss)	(982)				(982)
Net income / (loss)	10,821					10,821
Ending balance at Jun. 30, 2019	303,921	$ 379	$ (100,027)	299,122	(7,453)	111,900
Ending balance (in shares) at Jun. 30, 2019		37,816	2,558
Beginning balance (in shares) at Mar. 31, 2019		37,759	2,558
Beginning balance at Mar. 31, 2019	294,984	$ 378	$ (100,027)	292,458	(6,426)	108,601
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	7,751			7,751
Issuance of common stock in connection with employee stock option exercises and RSU vesting	5	$ 1		4
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		83
Common shares withheld for settlement of taxes in connection with equity-based compensation	(1,091)	$ 0		(1,091)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(26)
Other comprehensive income (loss)	(1,027)				(1,027)
Net income / (loss)	3,299					3,299
Ending balance at Jun. 30, 2019	$ 303,921	$ 379	$ (100,027)	$ 299,122	$ (7,453)	$ 111,900
Ending balance (in shares) at Jun. 30, 2019		37,816	2,558

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income / (loss)	$ 10,821	$ 32,327
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	25,319	22,227
Deferred taxes	(1,312)	(4,321)
Non-cash equity-based compensation	12,375	12,035
Gain on Sale of Webdam	0	(38,613)
Loss on impairment of long-term investment	0	5,881
Bad debt expense	(635)	472
Changes in operating assets and liabilities:
Accounts receivable	(2,746)	(171)
Prepaid expenses and other current and non-current assets	1,944	7,886
Accounts payable and other current and non-current liabilities	1,899	(6,019)
Contributor royalties payable	1,059	3,063
Deferred revenue	(1,981)	3,256
Net cash provided by operating activities	46,743	38,023
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(13,726)	(23,051)
Acquisition of businesses, net of cash acquired	0	(845)
Proceeds from Sale of Webdam, net	2,500	42,392
Other investments / advances	0	(15,000)
Acquisition of digital content	(1,277)	(1,242)
Security deposit release	25	(14)
Net cash (used in) / provided by investing activities	(12,478)	2,240
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	218	1,879
Cash paid related to settlement of employee taxes related to RSU vesting	(5,181)	(4,972)
Net cash used in financing activities	(4,963)	(3,093)
Effect of foreign exchange rate changes on cash	(1,085)	(757)
Net increase in cash, cash equivalents and restricted cash	28,217	36,413
Cash, cash equivalents and restricted cash, beginning of period	233,465	256,041
Cash, cash equivalents and restricted cash, end of period	261,682	292,454
Supplemental Disclosure of Cash Information:
Cash paid / (received) for income taxes	$ 1,480	$ (124)

Summary of Operations and Signi

Summary of Operations and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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”), is a global technology company offering a creative platform, which provides high-quality digital content, tools and services to creative professionals. The digital content licensed by the Company’s customers includes: (a) imagery, consisting of licensed photographs, vectors, illustrations and video clips, which is used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and video content; and (b) music, consisting of high-quality music tracks and sound effects, which is often used to complement digital imagery. The Company licenses content to its customers. Contributors upload their content to the Company’s web properties in exchange for royalty payments based on customer download activity. The Company also offered digital asset management services through its cloud-based digital asset management platform (“Webdam”). As discussed in Note 3, on February 26, 2018, the Company completed a sale transaction, pursuant to which the buyer in the transaction acquired certain assets and assumed certain contracts and liabilities which constituted the Company’s digital asset management business (the “Sale of Webdam”). Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“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 GAAP for complete financial statements. The interim Consolidated Balance Sheet as of June 30, 2019 , Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2019 and 2018 , and Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 , are unaudited. The Consolidated Balance Sheet as of December 31, 2018 , included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by 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 all normal recurring adjustments necessary to state fairly the Company’s financial position as of June 30, 2019 , its consolidated results of operations, comprehensive income and stockholders’ equity for the three and six months ended June 30, 2019 and 2018 , and its cash flows for the six months ended June 30, 2019 and 2018 . 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 six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2019 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 26, 2019 . 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. During the second quarter of 2019, the Company recorded an adjustment related to the correction of an error to increase stock-based compensation expense by $0.5 million , related to the understatement of stock-based compensation expense in the first quarter of 2019. The Company has concluded that the impact of this adjustment is not material to the results of operations or financial position for the current or prior quarter financial statements. 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 GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the volume of expected unused licenses for our subscription-based products, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the grant-date fair value of non-cash equity-based compensation, the assessment of recoverability of deferred tax assets, the measurement of income tax and contingent non-income tax liabilities and the determination of the incremental borrowing rate to calculate the lease liability. Cash, Cash Equivalents and Restricted Cash The following represents the Company’s cash and cash equivalents and restricted cash balances as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 As of December 31, 2018 Cash and cash equivalents $ 259,069 $ 230,852 Restricted cash 2,613 2,613 Total cash, cash equivalents and restricted cash $ 261,682 $ 233,465 The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts. These assets are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits related to the lease for its headquarters in New York City, which expires in 2029 . The carrying value of restricted cash approximates fair value. Restricted cash is included as a component of other assets on the Consolidated Balance Sheets. Allowance for Doubtful Accounts The Company’s accounts receivable consists 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. During the six months ended June 30, 2019 , the Company reduced its allowance for doubtful accounts which included a $0.6 million benefit recorded to bad debt expense and $0.1 million related to write-offs and other adjustments. As of June 30, 2019 and December 31, 2018 , the Company’s allowance for doubtful accounts was approximately $4.0 million and $4.7 million , respectively, which was included as a reduction of accounts receivable on the Consolidated Balance Sheets. Chargeback and Sales Refund Allowance 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 June 30, 2019 and December 31, 2018 , the Company’s combined allowance for chargebacks and sales refunds was $0.3 million , which was included as a component of other current liabilities on the Consolidated Balance Sheets. Revenue Recognition The majority of the Company’s revenue is earned from the license of digital content. Digital content licenses are generally purchased on a monthly or annual subscription basis, whereby a customer pays for a predetermined quantity of content that may be downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. Prior to the Sale of Webdam, the Company also earned revenue from licensing hosted software services through Webdam’s cloud-based tools for businesses, which were purchased as part of a subscription. The Company recognizes revenue upon the satisfaction of performance obligations, which occurs when (i) digital content is downloaded by a customer or (ii) hosted software services are provisioned and available to a customer. For digital content licenses, the Company recognizes revenue on both its subscription-based and transaction-based sales when content is downloaded, at which time the license is provided. In addition, management estimates expected unused licenses for subscription-based products and recognizes the revenue associated with the unused licenses throughout the subscription period. The estimate of unused licenses is based on historical download activity and future changes in the estimate could impact the timing of revenue recognition of the Company’s subscription products. Revenue associated with hosted software services is recognized ratably over the term of the license. The Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less. Collectability is reasonably assured at the time the electronic order or contract is entered. The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payments under standard credit terms. Collectability for customers who pay on credit terms allowing for payment beyond the date at which service commences is based on a credit evaluation for certain new customers and transaction history with existing customers. The Company recognizes revenue gross of contributor royalties because the Company is the principal in the transaction as it is the party responsible for the performance obligation and it controls the product or service before transferring it to the customer. The Company also licenses content to customers through third-party resellers. Third-party resellers sell the Company’s products directly to customers as the principal in those transactions. Accordingly, the Company recognizes revenue net of costs paid to resellers. The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) 2014-09, as amended (“ASU 2014-09”), on January 1, 2018 using the modified retrospective approach, and prior period amounts were not restated. The effect of adoption of this new guidance on the Consolidated Balance Sheet as of January 1, 2018 was to reduce (i) prepaid expenses and other current assets by $3.7 million and (ii) deferred revenues by $9.9 million , with an offsetting $6.2 million increase in 2018 opening retained earnings. Leasing The Company records rent expense on a straight-line basis over the term of the related lease. Prior to the adoption of FASB ASU 2016-02, Leases (Topic 842) , as amended (“ASC 842”), the difference between the rent expense recognized and the actual payments made in accordance with the operating lease agreement was recognized as a deferred rent liability on the Company’s Consolidated Balance Sheets. As of December 31, 2018 , the Company had deferred rent of $11.3 million , which is included in other non-current liabilities on the Consolidated Balance Sheet. Effective January 1, 2019, the Company adopted ASC 842. In accordance with ASC 842, the Company first determines if an arrangement contains a lease and the classification of that lease, if applicable, at inception. This standard requires the recognition of right-of-use (“ROU”) assets and lease liabilities for the Company’s operating leases. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration, and to account for the lease and non-lease components as a single lease component. The Company has also elected not to recognize a lease liability or ROU asset for leases with a term of 12 months or less, and recognize lease payments for those short-term leases on a straight-line basis over the lease term in the Consolidated Statements of Operations. Operating leases are included in ROU assets, other current liabilities and lease liabilities (net of current portion) on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments under the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within the Company’s leases is generally not determinable and therefore the incremental borrowing rate at the lease commencement date is utilized to determine the present value of lease payments. The determination of the incremental borrowing rate requires judgment. Management determines the incremental borrowing rate for each lease using the Company’s estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The ROU asset also includes any lease prepayments, offset by lease incentives. Certain of the Company’s leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when the Company is reasonably certain that the option will be exercised. An option to terminate is considered unless the Company is reasonably certain the option will not be exercised. Recently Adopted Accounting Standard Updates In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted this standard as of January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. The Company has also elected the option, as permitted in ASU 2018-11, Leases (Topic 842): Targeted Improvements , whereby initial application of the new lease standard would occur at the adoption date and a cumulative-effect adjustment, if any, would be recognized to the opening balance of retained earnings in the period of adoption. For comparability purposes, the Company will continue to comply with previous disclosure requirements in accordance with existing lease guidance for all periods presented in the year of adoption. The Company has elected the practical expedients permitted under the transition guidance which enabled the Company: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, the Company has made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Upon adoption of this standard on January 1, 2019, the Company recognized a total lease liability in the amount of $58.0 million , representing the present value of the minimum rental payments remaining as of the adoption date and a right-of-use asset in the amount of $46.7 million . Recently Issued Accounting Standard Updates In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”) . ASU 2016-13, as amended, replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU 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 August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. Adoption of this guidance is required for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company is evaluating the impact of adopting this new standard on its financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

Fair Value Measurements and Oth

Fair Value Measurements and Other Long-term Investments	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements and Other Long-term Investments	Fair Value Measurements and Other Long-term Investments Fair Value Measurements The Company had no assets or liabilities requiring fair value hierarchy disclosures as of June 30, 2019 or December 31, 2018 . Other Fair Value Measurements Cash, accounts receivable, restricted cash, accounts payable and accrued expenses 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 the Company is required to evaluate the non-financial asset for impairment, whether due to certain triggering events or because annual impairment testing is required, a resulting asset impairment would require that the non-financial asset be recorded at fair value. Other Long-term Investments Investment in ZCool Technologies Limited (“ZCool”) On January 4, 2018, the Company invested $15.0 million in convertible preferred shares issued by ZCool (the “Preferred Shares”), which is equivalent to a 25% fully diluted equity ownership interest. ZCool’s primary business is the operation of an e-commerce platform in China whereby customers can pay to license content contributed by creative professionals. ZCool has been the exclusive distributor of Shutterstock creative content in China since 2014. ZCool is a variable interest entity that is not consolidated because the Company is not the primary beneficiary. The Preferred Shares are not deemed to be in-substance common stock and will be accounted for using the measurement alternative for equity investments with no readily determinable fair value. The Preferred Shares will be reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments issued by ZCool. As of June 30, 2019 and December 31, 2018 , the Company’s total investment in ZCool is approximately $15.0 million

Sale of Digital Asset Managemen

Sale of Digital Asset Management Business	6 Months Ended
	Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Sale of Digital Asset Management Business	Sale of Digital Asset Management Business On February 26, 2018, the Company completed the Sale of Webdam for an aggregate purchase price of $49.1 million . Total cash received, net of $4.6 million transaction costs paid, was $44.3 million , inclusive of $2.5 million received during the six months ended June 30, 2019 , from the release of funds from escrow. During the three months ended March 31, 2018 , the Company recognized a pre-tax gain on sale of approximately $38.6 million , which represents the excess of the net purchase price over the net assets transferred, less transaction costs.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment is summarized as follows (in thousands): As of June 30, 2019 As of December 31, 2018 Computer equipment and software $ 161,294 $ 148,104 Furniture and fixtures 10,089 10,020 Leasehold improvements 18,820 18,822 Property and equipment 190,203 176,946 Less accumulated depreciation (121,853 ) (100,758 ) Property and equipment, net $ 68,350 $ 76,188 Depreciation expense related to property and equipment was $10.5 million and $9.9 million for the three months ended June 30, 2019 and 2018 , respectively, and $21.1 million and $19.4 million for the six months ended June 30, 2019 and 2018 , respectively. Depreciation expense is included in cost of revenue and general and administrative expense in the Consolidated Statement of Operations 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 $5.8 million and $6.2 million for the three months ended June 30, 2019 and 2018 , respectively, and $12.3 million and $15.8 million for the six months ended June 30, 2019 and 2018 , respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software on the Consolidated Balance Sheets. The portion of total depreciation expense related to capitalized internal-use software was $7.5 million and $6.0 million for the three months ended June 30, 2019 and 2018 , respectively, and $14.8 million and $11.4 million for the six months ended June 30, 2019 and 2018 , respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue in the Consolidated Statements of Operations. As of June 30, 2019 and December 31, 2018 , the Company had capitalized internal-use software of $45.9 million and $48.5 million , respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill In 2018, the Company’s goodwill balance was allocated to four reporting units: Bigstock, Editorial, Images and Music. During the second quarter of 2019, due to changes in the Company’s reporting structure, which resulted in a change in the way management monitors the business, as well as key milestones achieved in the continued integration of the Company’s operations and technology platform, management concluded that the Company now operates with a single reporting unit. The Company evaluated its goodwill immediately prior and subsequent to the change in reporting units and concluded that no adjustment to the carrying value of goodwill was necessary. The aggregate goodwill for the legacy reporting units was assigned to the single content business reporting unit. The Company’s goodwill balance will continue to be tested for impairment annually on October 1 or upon a triggering event. The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2019 (in thousands): Goodwill Balance as of December 31, 2018 $ 88,576 Foreign currency translation adjustment (149 ) Balance as of June 30, 2019 $ 88,427 Intangible Assets Intangible assets consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Weighted Gross Accumulated Amortizing intangible assets: Customer relationships $ 17,224 $ (8,054 ) 9 $ 17,360 $ (7,135 ) Trade name 6,321 (5,633 ) 7 6,372 (3,719 ) Developed technology 4,732 (3,809 ) 4 4,940 (3,712 ) Contributor content 21,161 (5,577 ) 10 19,912 (4,653 ) Patents 259 (92 ) 18 259 (84 ) Total $ 49,697 $ (23,165 ) $ 48,843 $ (19,303 ) Amortization expense was $2.9 million and $1.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $4.2 million and $2.8 million for the six months ended June 30, 2019 and 2018 , respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $3.0 million for the remaining six months of 2019 , $5.5 million in 2020 , $4.7 million in 2021 , $3.7 million in 2022 , $2.8 million in 2023 , $2.7 million in 2024 and $4.1 million thereafter.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following (in thousands): As of June 30, 2019 As of December 31, 2018 Compensation $ 12,018 $ 15,153 Non-income taxes 9,376 7,885 Royalty tax withholdings 5,703 5,618 Other expenses 26,181 22,729 Total accrued expenses $ 53,278 $ 51,385

Stockholders_ Equity and Equity

Stockholders’ Equity and Equity-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stockholders’ Equity and Equity-Based Compensation	Stockholders’ Equity and Equity-Based Compensation Stockholders’ Equity Common Stock During the six months ended June 30, 2019 and 2018 , the Company issued approximately 198,000 and 240,000 shares of common stock, respectively, primarily related 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, authorizing the Company to purchase up to $100 million of its common stock. In February 2017, the Company’s Board of Directors approved an increase to the share repurchase program, authorizing the Company to repurchase up to an additional $100 million of its outstanding common stock. During the six months ended June 30, 2019 and 2018 , the Company did not repurchase any shares of its common stock under the share repurchase program. As of June 30, 2019 , the Company had $100 million of remaining authorization for purchases under the share repurchase program. The Company expects to fund future repurchases, if any, through a combination of cash on hand, cash generated by operations and future financing transactions, if appropriate. Accordingly, the share repurchase program is subject to the Company having available cash to fund repurchases. Under the program, management is authorized to purchase shares of the Company’s common stock 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. 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 Company’s Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”), based on the fair value of each award 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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenue $ 105 $ 140 $ 190 $ 314 Sales and marketing 675 715 1,257 1,142 Product development 1,252 1,738 2,427 3,215 General and administrative 5,719 3,836 8,501 7,364 Total $ 7,751 $ 6,429 $ 12,375 $ 12,035 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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options $ 2,176 $ 1,500 $ 3,067 $ 2,966 RSUs 5,575 4,929 9,308 9,069 Total $ 7,751 $ 6,429 $ 12,375 $ 12,035 Stock Option Awards During the six months ended June 30, 2019 , the Company did not grant any options to purchase shares of its common stock. As of June 30, 2019 , there were approximately 459,000 options vested and exercisable with a weighted average exercise price of $33.16 . As of June 30, 2019 , the total unrecognized compensation charge related to non-vested options was approximately $4.3 million , which is expected to be recognized through 2022 . Restricted Stock Unit Awards On March 26, 2019, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of the Company approved a performance-based restricted stock unit award (“PRSU”) under the 2012 Plan. On April 1, 2019, the Company awarded approximately 202,000 PRSUs, each with a grant date fair value of $46.69 and corresponding to one target share, to certain of the Company’s officers. The number of shares that may eventually vest will be between 0% and 150% of a recipient’s target shares, depending on both the recipient’s continued service with the Company and the extent to which performance goals will have been achieved. The value of the PRSUs is based on the Company’s stock price on the date of grant. Based upon the expected levels of achievement, stock-based compensation related to PRSUs is recognized on a straight-line basis over the requisite service period. The expected levels of achievement are reassessed over the requisite service period and, to the extent that the expected levels of achievement change, stock-based compensation is adjusted and recorded in the Consolidated Statements of Operations and the remaining unrecognized stock-based compensation is recognized over the remaining requisite service period. During the six months ended June 30, 2019 , the Company had RSU grants (including PRSUs), net of forfeitures, of approximately 465,000 . As of June 30, 2019 , there are approximately 1,184,000 non-vested RSUs (including PRSUs) outstanding with a weighted average grant-date fair value of $45.60 . As of June 30, 2019 , the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $35.4 million , which is expected to be recognized through 2022 . During the six months ended June 30, 2019 , shares of common stock with an aggregate value of $5.2 million

Revenue

Revenue	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company distributes its digital content offerings through two primary channels: E-commerce: The majority of customers purchase content licenses directly through the Company’s e-commerce platforms. E-commerce customers have the flexibility to purchase a subscription plan that is paid on a monthly or annual basis or to purchase content licenses on a transactional basis. These customers generally license content under the Company’s standard or enhanced licenses, with additional licensing options available to meet customers’ individual needs. E-commerce customers typically pay the full amount of the purchase price in advance or at the time of license, generally with a credit card. Enterprise: Enterprise customers are mainly composed of creative professionals and large organizations with unique content, licensing and workflow needs. Customers of this size benefit from dedicated sales, service and research teams which provide a number of enhancements to their creative workflows including non-standard licensing rights, multi-seat access, invoicing and the ability to pay on credit terms, increased indemnification protection, multi-brand licensing packages and content licensed for use-cases outside of those available on the e-commerce platform. In addition to the Company’s digital content offerings, the Company has historically generated revenue through other channels: Other: The Company’s other sales channel includes revenue from Webdam’s digital asset management offerings which included tools to help organizations manage, search, distribute and collaborate on creative and other brand-building activities. Effective February 26, 2018, the Company completed the Sale of Webdam. See Note 3 for further information on the Sale of Webdam. The Company’s revenues by distribution channel for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 E-commerce $ 96,993 $ 91,718 $ 195,106 $ 181,453 Enterprise 64,748 64,866 129,967 125,439 Other (1) — — — 2,711 Total Revenues $ 161,741 $ 156,584 $ 325,073 $ 309,603 (1) On February 26, 2018, the Company completed the Sale of Webdam. 2018 amounts include revenue earned during the period from January 1, 2018 through February 26, 2018. The June 30, 2019 deferred revenue balance will be earned as digital content is downloaded or upon the expiration of subscription-based products, and nearly all is expected to be earned within the next twelve months. $96.1 million of total revenue recognized for the six months ended June 30, 2019 was reflected in deferred revenue as of December 31, 2018 .

Other Income _ (Expense), Net

Other Income / (Expense), Net	6 Months Ended
	Jun. 30, 2019
Other Nonoperating Income (Expense) [Abstract]
Other Income / (Expense), Net	Other Income / (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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency loss $ (569 ) $ (1,782 ) $ (730 ) $ (1,463 ) Impairment of long-term investments — (5,881 ) — (5,881 ) Interest income 1,153 644 2,210 1,127 Total other income / (expense) $ 584 $ (7,019 ) $ 1,480 $ (6,217 )

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates yielded a net expense of 9.7% and 81.8% for the three months ended June 30, 2019 and 2018 , respectively, and a net expense of 14.5% and 24.0% for the six months ended June 30, 2019 and 2018 , respectively. In the three and six months ended June 30, 2019 , the impact of discrete tax items decreased the effective tax rate by 3.4% and 1.8% , respectively. In the three months ended June 30, 2018 , the Company incurred a discrete tax benefit relating primarily to the impairment of a long-term investment asset. In the six months ended June 30, 2018 , the Company incurred a net discrete tax expense relating primarily to the gain on the Sale of Webdam, partially offset by a discrete tax benefit related to the impairment of a long-term investment asset. The net effect of these discrete items increased the effective tax rate for the three and six months ended June 30, 2018 by 66.5% and 8.7% , respectively. 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 the international provisions enacted as part of the Tax Cuts and Jobs Act (“TCJA”) and the U.S. Research and Development tax credit. During the three months ended June 30, 2019 and during the three and six months ended June 30, 2018 , uncertain tax positions recorded by the Company were not significant. During the six months ended June 30, 2019 , uncertain tax positions recorded by the Company were $1.0 million . To the extent the remaining uncertain tax positions 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 significant for the three and six months ended June 30, 2019 and 2018 . During the six months ended June 30, 2019 , the Company paid net cash taxes of $1.5 million and during the six months ended June 30, 2018 , the Company received net tax refunds of $0.1 million

Net Income _ (Loss) Per Share

Net Income / (Loss) Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Net Income / (Loss) Per Share	Net Income / (Loss) Per Share Basic net income / (loss) per share is computed using the weighted average number of shares of common stock outstanding for the period, excluding unvested RSUs and stock options. Diluted net income per share is based upon the weighted average shares of common stock outstanding for the period plus dilutive potential shares of common stock, including unvested RSUs and stock options using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income / (loss) $ 3,299 $ (254 ) $ 10,821 $ 32,327 Shares used to compute basic net income / (loss) per share 35,232 34,913 35,174 34,849 Dilutive potential common shares Stock options 102 — 104 113 Unvested restricted stock awards 170 — 221 381 Shares used to compute diluted net income / (loss) per share 35,504 34,913 35,499 35,343 Basic net income / (loss) per share $ 0.09 $ (0.01 ) $ 0.31 $ 0.93 Diluted net income / (loss) per share $ 0.09 $ (0.01 ) $ 0.30 $ 0.91 Dilutive securities included in the calculation 1,005 — 992 1,366 Anti-dilutive securities excluded from the calculation 1,206 2,370 1,171 1,000

Geographic Information

Geographic Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Geographic Information	Geographic Information The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 North America $ 57,657 $ 56,056 $ 115,171 $ 113,014 Europe 53,647 53,291 109,132 105,225 Rest of the world 50,437 47,237 100,770 91,364 Total revenue $ 161,741 $ 156,584 $ 325,073 $ 309,603 The United States, included in North America in the above table, accounted for 32% and 33% of consolidated revenue for the three months ended June 30, 2019 and 2018 , respectively, and 32% and 33% of consolidated revenue for the six months ended June 30, 2019 and 2018 , respectively. 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): June 30, December 31, 2019 2018 North America $ 62,841 $ 71,758 Europe 5,446 4,371 Rest of the world 63 59 Total long-lived tangible assets $ 68,350 $ 76,188 The United States, included in North America in the above table, accounted for 84% and 88% of total long-lived tangible assets as of June 30, 2019 and December 31, 2018 , respectively. No other country accounts for more than 10% of the Company’s long-lived tangible assets in any period presented.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	Leases The Company’s leases relate primarily to office facilities that expire on various dates from 2019 through 2029 , some of which include one or more options to renew. All of the Company’s leases are classified as operating leases. Operating lease costs, including insignificant costs related to short-term leases, were $2.7 million and $2.4 million for the three months ended June 30, 2019 and 2018 , respectively and $5.4 million and $4.8 million for the six months ended June 30, 2019 and 2018 , respectively. Additional information related to the Company’s leases as of and for the six months ended June 30, 2019 , is as follows: (in thousands, except lease term and discount rate) June 30, 2019 Balance sheet information ROU assets $ 44,808 Lease liabilities, current $ 9,203 Lease liabilities, non-current 47,007 Total lease liabilities $ 56,210 Supplemental data Weighted average remaining lease term 9.0 years Weighted average discount rate 6.2 % Cash paid for amounts included in lease liabilities $ 4,857 ROU assets obtained in exchange for lease obligations $ 1,324 Maturities of lease liabilities as of June 30, 2019 were as follows: (in thousands) June 30, 2019 Year ending December 31, 2019 (remaining) $ 5,182 2020 9,433 2021 8,131 2022 7,078 2023 6,210 Thereafter 39,594 Total undiscounted lease payments 75,628 Less: imputed interest (19,418 ) Total lease liabilities $ 56,210 The Company’s most significant lease is for its headquarters in New York City, which was entered into in March 2013 and was amended in January 2016 (“ESB Lease”). As amended, the ESB Lease will expire in 2029, and the undiscounted remaining future minimum lease payments are approximately $64.8 million . The Company is also party to a $2.6 million letter of credit, as a security deposit for the ESB Lease, which is collateralized by an equivalent amount of cash, and is reported as restricted cash within other assets on the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 . Fiscal year 2018 lease commitments in accordance with prior guidance Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in thousands): Year Ending December 31, Operating 2019 $ 9,913 2020 8,762 2021 7,493 2022 6,829 2023 6,082 Thereafter 39,481 Total minimum lease payments $ 78,560

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of June 30, 2019 , the Company had total other non-lease obligations in the amount of approximately $60.9 million , which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of June 30, 2019 , the Company’s other non-lease obligations for the remainder of 2019 and for the years ending December 31, 2020 , 2021 and 2022 were approximately $15.5 million , $29.1 million , $12.5 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, accordingly, no material reserves related to litigation. Indemnification and Employment Agreements In the ordinary course of business, the Company enters into contractual arrangements 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 content is used. The standard maximum aggregate obligation and liability to any one customer for any single claim is generally limited to ten thousand dollars but can range to $250,000 , with certain exceptions for which our indemnification obligation are uncapped. As of June 30, 2019 , 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. Pursuant to the Company’s charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its executive officers, certain employees and directors, as well as certain former officers and directors. The Company has also entered into employment agreements with its executive officers and certain employees. These agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination in the event of a change in control or otherwise, with or without cause.

Summary of Operations and Sig_2

Summary of Operations and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“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 GAAP for complete financial statements.
Unaudited Interim Financial Statements	The interim Consolidated Balance Sheet as of June 30, 2019 , Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2019 and 2018 , and Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 , are unaudited. The Consolidated Balance Sheet as of December 31, 2018 , included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by 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 all normal recurring adjustments necessary to state fairly the Company’s financial position as of June 30, 2019 , its consolidated results of operations, comprehensive income and stockholders’ equity for the three and six months ended June 30, 2019 and 2018 , and its cash flows for the six months ended June 30, 2019 and 2018 . 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 six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2019 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 26, 2019 . 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. During the second quarter of 2019, the Company recorded an adjustment related to the correction of an error to increase stock-based compensation expense by $0.5 million , related to the understatement of stock-based compensation expense in the first quarter of 2019. The Company has concluded that the impact of this adjustment is not material to the results of operations or financial position for the current or prior quarter financial statements.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the volume of expected unused licenses for our subscription-based products, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the grant-date fair value of non-cash equity-based compensation, the assessment of recoverability of deferred tax assets, the measurement of income tax and contingent non-income tax liabilities and the determination of the incremental borrowing rate to calculate the lease liability.
Cash, Cash Equivalents and Restricted Cash	The Company’s cash and cash equivalents consist primarily of (i) cash on hand and bank deposits and (ii) money market accounts. These assets are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits related to the lease for its headquarters in New York City, which expires in 2029 . The carrying value of restricted cash approximates fair value. Restricted cash is included as a component of other assets on the Consolidated Balance Sheets.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
Chargeback and Sales Refund Allowance and Revenue Recognition	Chargeback and Sales Refund Allowance 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 June 30, 2019 and December 31, 2018 , the Company’s combined allowance for chargebacks and sales refunds was $0.3 million , which was included as a component of other current liabilities on the Consolidated Balance Sheets. Revenue Recognition The majority of the Company’s revenue is earned from the license of digital content. Digital content licenses are generally purchased on a monthly or annual subscription basis, whereby a customer pays for a predetermined quantity of content that may be downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. Prior to the Sale of Webdam, the Company also earned revenue from licensing hosted software services through Webdam’s cloud-based tools for businesses, which were purchased as part of a subscription. The Company recognizes revenue upon the satisfaction of performance obligations, which occurs when (i) digital content is downloaded by a customer or (ii) hosted software services are provisioned and available to a customer. For digital content licenses, the Company recognizes revenue on both its subscription-based and transaction-based sales when content is downloaded, at which time the license is provided. In addition, management estimates expected unused licenses for subscription-based products and recognizes the revenue associated with the unused licenses throughout the subscription period. The estimate of unused licenses is based on historical download activity and future changes in the estimate could impact the timing of revenue recognition of the Company’s subscription products. Revenue associated with hosted software services is recognized ratably over the term of the license. The Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less. Collectability is reasonably assured at the time the electronic order or contract is entered. The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payments under standard credit terms. Collectability for customers who pay on credit terms allowing for payment beyond the date at which service commences is based on a credit evaluation for certain new customers and transaction history with existing customers. The Company recognizes revenue gross of contributor royalties because the Company is the principal in the transaction as it is the party responsible for the performance obligation and it controls the product or service before transferring it to the customer. The Company also licenses content to customers through third-party resellers. Third-party resellers sell the Company’s products directly to customers as the principal in those transactions. Accordingly, the Company recognizes revenue net of costs paid to resellers.
Leasing	Leasing The Company records rent expense on a straight-line basis over the term of the related lease. Prior to the adoption of FASB ASU 2016-02, Leases (Topic 842) , as amended (“ASC 842”), the difference between the rent expense recognized and the actual payments made in accordance with the operating lease agreement was recognized as a deferred rent liability on the Company’s Consolidated Balance Sheets. As of December 31, 2018 , the Company had deferred rent of $11.3 million , which is included in other non-current liabilities on the Consolidated Balance Sheet. Effective January 1, 2019, the Company adopted ASC 842. In accordance with ASC 842, the Company first determines if an arrangement contains a lease and the classification of that lease, if applicable, at inception. This standard requires the recognition of right-of-use (“ROU”) assets and lease liabilities for the Company’s operating leases. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration, and to account for the lease and non-lease components as a single lease component. The Company has also elected not to recognize a lease liability or ROU asset for leases with a term of 12 months or less, and recognize lease payments for those short-term leases on a straight-line basis over the lease term in the Consolidated Statements of Operations. Operating leases are included in ROU assets, other current liabilities and lease liabilities (net of current portion) on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments under the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within the Company’s leases is generally not determinable and therefore the incremental borrowing rate at the lease commencement date is utilized to determine the present value of lease payments. The determination of the incremental borrowing rate requires judgment. Management determines the incremental borrowing rate for each lease using the Company’s estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The ROU asset also includes any lease prepayments, offset by lease incentives. Certain of the Company’s leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when the Company is reasonably certain that the option will be exercised. An option to terminate is considered unless the Company is reasonably certain the option will not be exercised.
Recently Adopted and Issued Accounting Standard Updates	Recently Adopted Accounting Standard Updates In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted this standard as of January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. The Company has also elected the option, as permitted in ASU 2018-11, Leases (Topic 842): Targeted Improvements , whereby initial application of the new lease standard would occur at the adoption date and a cumulative-effect adjustment, if any, would be recognized to the opening balance of retained earnings in the period of adoption. For comparability purposes, the Company will continue to comply with previous disclosure requirements in accordance with existing lease guidance for all periods presented in the year of adoption. The Company has elected the practical expedients permitted under the transition guidance which enabled the Company: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, the Company has made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Upon adoption of this standard on January 1, 2019, the Company recognized a total lease liability in the amount of $58.0 million , representing the present value of the minimum rental payments remaining as of the adoption date and a right-of-use asset in the amount of $46.7 million . Recently Issued Accounting Standard Updates In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”) . ASU 2016-13, as amended, replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU 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 August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. Adoption of this guidance is required for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company is evaluating the impact of adopting this new standard on its financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

Summary of Operations and Sig_3

Summary of Operations and Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of Restricted Cash	The following represents the Company’s cash and cash equivalents and restricted cash balances as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 As of December 31, 2018 Cash and cash equivalents $ 259,069 $ 230,852 Restricted cash 2,613 2,613 Total cash, cash equivalents and restricted cash $ 261,682 $ 233,465
Schedule of Cash and Cash Equivalents	The following represents the Company’s cash and cash equivalents and restricted cash balances as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 As of December 31, 2018 Cash and cash equivalents $ 259,069 $ 230,852 Restricted cash 2,613 2,613 Total cash, cash equivalents and restricted cash $ 261,682 $ 233,465

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Summary of property and equipment	Property and equipment is summarized as follows (in thousands): As of June 30, 2019 As of December 31, 2018 Computer equipment and software $ 161,294 $ 148,104 Furniture and fixtures 10,089 10,020 Leasehold improvements 18,820 18,822 Property and equipment 190,203 176,946 Less accumulated depreciation (121,853 ) (100,758 ) Property and equipment, net $ 68,350 $ 76,188

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2019 (in thousands): Goodwill Balance as of December 31, 2018 $ 88,576 Foreign currency translation adjustment (149 ) Balance as of June 30, 2019 $ 88,427
Schedule of intangible assets	Intangible assets consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Weighted Gross Accumulated Amortizing intangible assets: Customer relationships $ 17,224 $ (8,054 ) 9 $ 17,360 $ (7,135 ) Trade name 6,321 (5,633 ) 7 6,372 (3,719 ) Developed technology 4,732 (3,809 ) 4 4,940 (3,712 ) Contributor content 21,161 (5,577 ) 10 19,912 (4,653 ) Patents 259 (92 ) 18 259 (84 ) Total $ 49,697 $ (23,165 ) $ 48,843 $ (19,303 )

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Schedule of accrued expenses	Accrued expenses consisted of the following (in thousands): As of June 30, 2019 As of December 31, 2018 Compensation $ 12,018 $ 15,153 Non-income taxes 9,376 7,885 Royalty tax withholdings 5,703 5,618 Other expenses 26,181 22,729 Total accrued expenses $ 53,278 $ 51,385

Stockholders_ Equity and Equi_2

Stockholders’ Equity and Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenue $ 105 $ 140 $ 190 $ 314 Sales and marketing 675 715 1,257 1,142 Product development 1,252 1,738 2,427 3,215 General and administrative 5,719 3,836 8,501 7,364 Total $ 7,751 $ 6,429 $ 12,375 $ 12,035 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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options $ 2,176 $ 1,500 $ 3,067 $ 2,966 RSUs 5,575 4,929 9,308 9,069 Total $ 7,751 $ 6,429 $ 12,375 $ 12,035

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The Company’s revenues by distribution channel for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 E-commerce $ 96,993 $ 91,718 $ 195,106 $ 181,453 Enterprise 64,748 64,866 129,967 125,439 Other (1) — — — 2,711 Total Revenues $ 161,741 $ 156,584 $ 325,073 $ 309,603 (1) On February 26, 2018, the Company completed the Sale of Webdam. 2018 amounts include revenue earned during the period from January 1, 2018 through February 26, 2018.

Other Income _ (Expense), Net (

Other Income / (Expense), Net (Tables)	6 Months Ended
	Jun. 30, 2019
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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency loss $ (569 ) $ (1,782 ) $ (730 ) $ (1,463 ) Impairment of long-term investments — (5,881 ) — (5,881 ) Interest income 1,153 644 2,210 1,127 Total other income / (expense) $ 584 $ (7,019 ) $ 1,480 $ (6,217 )

Net Income _ (Loss) Per Share (

Net Income / (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income / (loss) $ 3,299 $ (254 ) $ 10,821 $ 32,327 Shares used to compute basic net income / (loss) per share 35,232 34,913 35,174 34,849 Dilutive potential common shares Stock options 102 — 104 113 Unvested restricted stock awards 170 — 221 381 Shares used to compute diluted net income / (loss) per share 35,504 34,913 35,499 35,343 Basic net income / (loss) per share $ 0.09 $ (0.01 ) $ 0.31 $ 0.93 Diluted net income / (loss) per share $ 0.09 $ (0.01 ) $ 0.30 $ 0.91 Dilutive securities included in the calculation 1,005 — 992 1,366 Anti-dilutive securities excluded from the calculation 1,206 2,370 1,171 1,000

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2019
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 Six Months Ended 2019 2018 2019 2018 North America $ 57,657 $ 56,056 $ 115,171 $ 113,014 Europe 53,647 53,291 109,132 105,225 Rest of the world 50,437 47,237 100,770 91,364 Total revenue $ 161,741 $ 156,584 $ 325,073 $ 309,603
Long-lived Assets by Geographic Areas	The Company’s long-lived tangible assets were located as follows (in thousands): June 30, December 31, 2019 2018 North America $ 62,841 $ 71,758 Europe 5,446 4,371 Rest of the world 63 59 Total long-lived tangible assets $ 68,350 $ 76,188

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of Supplemental Information for Leases	Additional information related to the Company’s leases as of and for the six months ended June 30, 2019 , is as follows: (in thousands, except lease term and discount rate) June 30, 2019 Balance sheet information ROU assets $ 44,808 Lease liabilities, current $ 9,203 Lease liabilities, non-current 47,007 Total lease liabilities $ 56,210 Supplemental data Weighted average remaining lease term 9.0 years Weighted average discount rate 6.2 % Cash paid for amounts included in lease liabilities $ 4,857 ROU assets obtained in exchange for lease obligations $ 1,324
Schedule of Maturity of Operating Lease Liabilities	Maturities of lease liabilities as of June 30, 2019 were as follows: (in thousands) June 30, 2019 Year ending December 31, 2019 (remaining) $ 5,182 2020 9,433 2021 8,131 2022 7,078 2023 6,210 Thereafter 39,594 Total undiscounted lease payments 75,628 Less: imputed interest (19,418 ) Total lease liabilities $ 56,210
Schedule of Future Minimum Lease Payments	Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in thousands): Year Ending December 31, Operating 2019 $ 9,913 2020 8,762 2021 7,493 2022 6,829 2023 6,082 Thereafter 39,481 Total minimum lease payments $ 78,560

Summary of Operations and Sig_4

Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock-based compensation expense	$ 7,751	$ 6,429	$ 12,375	$ 12,035
Prepaid expenses and other current assets	29,747		29,747			$ 34,841
Deferred revenue	137,131		137,131			139,604
Retained earnings	111,900		111,900			101,079
Bad debt expense			(635)	$ 472
Write-offs and other adjustments			100
Allowance for doubtful accounts	4,000		4,000			4,700
Chargeback and sales refund allowances	300		300			300
Deferred rent non-current balance						$ 11,300
Total lease liability	56,210		56,210		$ 58,000
Right-of-use assets	44,808		$ 44,808		$ 46,700
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets							$ 3,700
Deferred revenue							9,900
Retained earnings							$ 6,200
Understatement Of Stock-Based Compensation Expense | Restatement Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock-based compensation expense	$ 500

Summary of Operations and Sig_5

Summary of Operations and Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 259,069	$ 230,852
Restricted cash	2,613	2,613
Total cash, cash equivalents and restricted cash	$ 261,682	$ 233,465	$ 292,454	$ 256,041

Fair Value Measurements and O_2

Fair Value Measurements and Other Long-term Investments (Details) - Variable Interest Entity, Not Primary Beneficiary - Zcool Network Technology Limited - USD ($) $ in Millions	Jan. 04, 2018	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Variable interest investment		$ 15	$ 15
Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment value	$ 15
Equity ownership percent	25.00%

Sale of Digital Asset Managem_2

Sale of Digital Asset Management Business (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Feb. 26, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received				$ 2,500	$ 42,392
Gain on sale of Webdam	$ 0	$ 0		0	$ 38,613
Webdam
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of Webdam			$ 38,600
Webdam | Disposal Group, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price						$ 49,100
Transaction costs				4,600
Cash received				44,300
Escrow deposit				$ 2,500

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Property and Equipment
Property and equipment	$ 190,203		$ 190,203		$ 176,946
Less accumulated depreciation	(121,853)		(121,853)		(100,758)
Property and equipment, net	68,350		68,350		76,188
Depreciation expense	10,500	$ 9,900	21,100	$ 19,400
Capitalized amount	5,800	6,200	12,300	15,800
Amortization expense	7,500	$ 6,000	14,800	$ 11,400
Internal use software	45,900		45,900		48,500
Computer equipment and software
Property and Equipment
Property and equipment	161,294		161,294		148,104
Furniture and fixtures
Property and Equipment
Property and equipment	10,089		10,089		10,020
Leasehold improvements
Property and Equipment
Property and equipment	$ 18,820		$ 18,820		$ 18,822

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 88,576
Foreign currency translation adjustment	(149)
Balance at the end of the period	$ 88,427

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Amortizing intangible assets:
Gross Carrying Amount	$ 49,697	$ 48,843
Accumulated Amortization	(23,165)	(19,303)
Customer relationships
Amortizing intangible assets:
Gross Carrying Amount	17,224	17,360
Accumulated Amortization	$ (8,054)	(7,135)
Weighted Average Life	9 years
Trade name
Amortizing intangible assets:
Gross Carrying Amount	$ 6,321	6,372
Accumulated Amortization	$ (5,633)	(3,719)
Weighted Average Life	7 years
Developed technology
Amortizing intangible assets:
Gross Carrying Amount	$ 4,732	4,940
Accumulated Amortization	$ (3,809)	(3,712)
Weighted Average Life	4 years
Contributor content
Amortizing intangible assets:
Gross Carrying Amount	$ 21,161	19,912
Accumulated Amortization	$ (5,577)	(4,653)
Weighted Average Life	10 years
Patents
Amortizing intangible assets:
Gross Carrying Amount	$ 259	259
Accumulated Amortization	$ (92)	$ (84)
Weighted Average Life	18 years

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018reporting_unit
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reporting units | reporting_unit					4
Amortization expense	$ 2.9	$ 1.3	$ 4.2	$ 2.8
Remainder of 2019	3		3
2020	5.5		5.5
2021	4.7		4.7
2022	3.7		3.7
2023	2.8		2.8
2024	2.7		2.7
Thereafter	$ 4.1		$ 4.1

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Compensation	$ 12,018	$ 15,153
Non-income taxes	9,376	7,885
Royalty tax withholdings	5,703	5,618
Other expenses	26,181	22,729
Total accrued expenses	$ 53,278	$ 51,385

Stockholders_ Equity and Equi_3

Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands	Apr. 01, 2019	Jun. 30, 2019	Jun. 30, 2018	Feb. 28, 2017	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares withheld		$ 5,181,000	$ 4,972,000
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		198	240
Authorized purchase amount (up to)				$ 100,000,000	$ 100,000,000
Value remaining for repurchase		$ 100,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested and exercisable (in shares)		459
Options vested and exercisable, weighted average exercise price (in dollars per share)		$ 33.16
Unrecognized compensation charge		$ 4,300,000
PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	202
Weighted average grant-date fair value (in usd per share)	$ 46.69
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)		465
Nonvested shares outstanding (in shares)		1,184
Weighted average grant-date fair value (in usd per share)		$ 45.60
Unrecognized non-cash equity-based compensation charge		$ 35,400,000
Value of shares withheld		$ 5,200,000
Minimum | PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.00%
Maximum | PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	150.00%

Stockholders_ Equity and Equi_4

Stockholders’ Equity and Equity-Based Compensation - Summary of non-cash equity-based compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 7,751	$ 6,429	$ 12,375	$ 12,035
Stock options
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	2,176	1,500	3,067	2,966
RSUs
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	5,575	4,929	9,308	9,069
Cost of revenue
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	105	140	190	314
Sales and marketing
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	675	715	1,257	1,142
Product development
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	1,252	1,738	2,427	3,215
General and administrative
Non-cash equity-based compensation expense related to the 2012 Plan and 2012 ESPP
Non-cash equity-based compensation	$ 5,719	$ 3,836	$ 8,501	$ 7,364

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 161,741	$ 156,584	$ 325,073	$ 309,603
Disposal group deferred revenue			96,100
E-commerce
Segment Reporting Information [Line Items]
Total revenue	96,993	91,718	195,106	181,453
Enterprise
Segment Reporting Information [Line Items]
Total revenue	64,748	64,866	129,967	125,439
Other
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 0	$ 0	$ 2,711

Other Income _ (Expense), Net_2

Other Income / (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Nonoperating Income (Expense) [Abstract]
Foreign currency loss	$ (569)	$ (1,782)	$ (730)	$ (1,463)
Impairment of long-term investments	0	(5,881)	0	(5,881)
Interest income	1,153	644	2,210	1,127
Total other income / (expense)	$ 584	$ (7,019)	$ 1,480	$ (6,217)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	9.70%	81.80%	14.50%	24.00%
Effective tax rate change	(3.40%)	66.50%	1.80%	8.70%
Uncertain tax positions recorded			$ 1,000
Cash paid for income taxes			$ 1,480	$ (124)
Proceeds from net tax refunds				$ 100

Net Income _ (Loss) Per Share_2

Net Income / (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net income / (loss)	$ 3,299	$ (254)	$ 10,821	$ 32,327
Shares used to compute basic net income / (loss) per share (in shares)	35,232	34,913	35,174	34,849
Dilutive potential common shares
Stock options (in shares)	102	0	104	113
Unvested restricted stock awards (in shares)	170	0	221	381
Shares used to compute diluted net income / (loss) per share (in shares)	35,504	34,913	35,499	35,343
Basic net income / (loss) per share (in dollars per share)	$ 0.09	$ (0.01)	$ 0.31	$ 0.93
Diluted net income / (loss) per share (in dollars per share)	$ 0.09	$ (0.01)	$ 0.30	$ 0.91
Dilutive securities included in the calculation (in shares)	1,005	0	992	1,366
Anti-dilutive securities excluded from the calculation (in shares)	1,206	2,370	1,171	1,000

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 161,741	$ 156,584	$ 325,073	$ 309,603
Total long-lived tangible assets	68,350		68,350		$ 76,188
North America
Geographic revenue based on customer location and long-lived tangible assets
Revenue	57,657	$ 56,056	115,171	$ 113,014
Total long-lived tangible assets	$ 62,841		$ 62,841		$ 71,758
United States | Revenue benchmark | Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage	32.00%	33.00%	32.00%	33.00%
United States | Total long-lived tangible assets | Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			84.00%		88.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 53,647	$ 53,291	$ 109,132	$ 105,225
Total long-lived tangible assets	5,446		5,446		$ 4,371
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Revenue	50,437	$ 47,237	100,770	$ 91,364
Total long-lived tangible assets	$ 63		$ 63		$ 59

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Rental expense inclusive of operating leases	$ 2,700	$ 2,400	$ 5,400	$ 4,800
Total minimum lease payments					$ 78,560
Letter of credit as a security deposit for the leased facilities	2,600		2,600		$ 2,600
ESB Lease
Lessee, Lease, Description [Line Items]
Total minimum lease payments	$ 64,800		$ 64,800

Leases - Lease Information (Det

Leases - Lease Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jan. 01, 2019
Balance sheet information
ROU assets	$ 44,808	$ 46,700
Lease liabilities, current	9,203
Lease liabilities, non-current	47,007
Total lease liabilities	$ 56,210	$ 58,000
Weighted average remaining lease term	9 years
Weighted average discount rate	6.20%
Cash paid for amounts included in lease liabilities	$ 4,857
ROU assets obtained in exchange for lease obligations	$ 1,324

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
2019 (remaining)	$ 5,182
2020	9,433
2021	8,131
2022	7,078
2023	6,210
Thereafter	39,594
Total undiscounted lease payments	75,628
Less: imputed interest	(19,418)
Total lease liabilities	$ 56,210	$ 58,000

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments - ASC 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 9,913
2020	8,762
2021	7,493
2022	6,829
2023	6,082
Thereafter	39,481
Total minimum lease payments	$ 78,560

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	Jun. 30, 2019USD ($)
Other Commitments [Line Items]
Other obligations	$ 60,900,000
Maturity of unconditional purchase obligations
Remainder of 2019	15,500,000
2020	29,100,000
2021	12,500,000
2022	3,800,000
Indemnifications
Material indemnification obligation	0
Minimum
Indemnifications
Maximum aggregate obligation and liability for customer	10,000
Maximum
Indemnifications
Maximum aggregate obligation and liability for customer	$ 250,000

Uncategorized Items - a2019-q21

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 6,178,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 6,178,000