Shutterstock (SSTK) 10-Q 27 Jul 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
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		36,622,833
Entity Central Index Key	0001549346
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 411,046	$ 428,574
Accounts receivable, net of allowance of $2,425 and $4,942	49,756	43,846
Prepaid expenses and other current assets	23,615	16,650
Total current assets	484,417	489,070
Property and equipment, net	49,990	50,906
Right-of-use assets	36,336	39,552
Intangible assets, net	46,409	25,765
Goodwill	149,069	89,413
Deferred tax assets, net	7,867	13,566
Other assets	21,764	21,372
Total assets	795,852	729,644
Current liabilities:
Accounts payable	5,402	2,442
Accrued expenses	73,889	67,909
Contributor royalties payable	30,317	26,336
Deferred revenue	161,935	149,843
Other current liabilities	10,993	10,399
Total current liabilities	282,536	256,929
Lease liabilities	38,678	41,620
Other non-current liabilities	9,304	9,170
Total liabilities	330,518	307,719
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 39,173 and 38,803 shares issued and 36,615 and 36,245 shares outstanding as of June 30, 2021 and December 31, 2020, respectively	392	389
Treasury stock, at cost; 2,558 shares as of June 30, 2021 and December 31, 2020	(100,027)	(100,027)
Additional paid-in capital	360,404	360,939
Accumulated comprehensive loss	(7,391)	(7,681)
Retained earnings	211,956	168,305
Total stockholders’ equity	465,334	421,925
Total liabilities and stockholders’ equity	$ 795,852	$ 729,644

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,425	$ 4,942
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000	200,000
Common stock, shares issued (in shares)	39,173	38,803
Common stock, shares outstanding (in shares)	36,615	36,245
Treasury stock, shares held in treasury (in shares)	2,558	2,558

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 189,912	$ 159,230	$ 373,193	$ 320,515
Operating expenses:
Cost of revenue	67,757	63,811	129,589	132,934
Sales and marketing	45,896	35,557	87,817	78,217
Product development	11,993	12,485	22,724	25,554
General and administrative	31,041	24,832	61,720	55,484
Total operating expenses	156,687	136,685	301,850	292,189
Income from operations	33,225	22,545	71,343	28,326
Other income / (expense), net	1,323	149	(1,139)	662
Income before income taxes			70,204	28,988
Provision for income taxes	5,094	3,707	11,236	5,683
Net income	$ 29,454	$ 18,987	$ 58,968	$ 23,305
Earnings per share:
Basic (in dollars per share)	$ 0.81	$ 0.53	$ 1.62	$ 0.65
Diluted (in dollars per share)	$ 0.79	$ 0.53	$ 1.58	$ 0.65
Weighted average shares outstanding:
Basic (in shares)	36,570	35,652	36,453	35,587
Diluted (in shares)	37,189	35,906	37,218	35,894

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 29,454	$ 18,987	$ 58,968	$ 23,305
Foreign currency translation gain / (loss)	64	254	290	(2,194)
Other comprehensive gain / (loss)	64	254	290	(2,194)
Comprehensive income	$ 29,518	$ 19,241	$ 59,258	$ 21,111

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common StockCumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income / (Loss)	Accumulated Other Comprehensive Income / (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2019				38,055	38,055	2,558	2,558
Beginning balance at Dec. 31, 2019	$ 328,145	$ (247)	$ 327,898	$ 381	$ 381	$ (100,027)	$ (100,027)	$ 312,824	$ 312,824	$ (6,220)	$ (6,220)	$ 121,187	$ (247)	$ 120,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update	Accounting Standards Update 2016-13
Equity-based compensation	$ 9,396							9,396
Issuance of common stock in connection with employee stock option exercises and RSU vesting	629			$ 3				626
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				289
Common shares withheld for settlement of taxes in connection with equity-based compensation	(3,436)			$ (2)				(3,434)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(99)
Cash dividends paid	(12,098)											(12,098)
Other comprehensive income (loss)	(2,194)									(2,194)
Net income	23,305											23,305
Ending balance at Jun. 30, 2020	343,500			$ 382		$ (100,027)		319,412		(8,414)		132,147
Ending balance (in shares) at Jun. 30, 2020				38,245		2,558
Beginning balance (in shares) at Mar. 31, 2020				38,119		2,558
Beginning balance at Mar. 31, 2020	327,727			$ 381		$ (100,027)		316,823		(8,668)		119,218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	3,636							3,636
Issuance of common stock in connection with employee stock option exercises and RSU vesting	629			$ 2				627
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				180
Common shares withheld for settlement of taxes in connection with equity-based compensation	(1,675)			$ (1)				(1,674)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(54)
Cash dividends paid	(6,058)											(6,058)
Other comprehensive income (loss)	254									254
Net income	18,987											18,987
Ending balance at Jun. 30, 2020	$ 343,500			$ 382		$ (100,027)		319,412		(8,414)		132,147
Ending balance (in shares) at Jun. 30, 2020				38,245		2,558
Beginning balance (in shares) at Dec. 31, 2020	36,245			38,803		2,558
Beginning balance at Dec. 31, 2020	$ 421,925			$ 389		$ (100,027)		360,939		(7,681)		168,305
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	17,896							17,896
Issuance of common stock in connection with employee stock option exercises and RSU vesting	1,801			$ 6				1,795
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				601
Common shares withheld for settlement of taxes in connection with equity-based compensation	(20,229)			$ (3)				(20,226)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(231)
Cash dividends paid	(15,317)											(15,317)
Other comprehensive income (loss)	290									290
Net income	58,968											58,968
Ending balance at Jun. 30, 2021	$ 465,334			$ 392		$ (100,027)		360,404		(7,391)		211,956
Ending balance (in shares) at Jun. 30, 2021	36,615			39,173		2,558
Beginning balance (in shares) at Mar. 31, 2021				39,010		2,558
Beginning balance at Mar. 31, 2021	$ 440,504			$ 391		$ (100,027)		357,422		(7,455)		190,173
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	9,686							9,686
Issuance of common stock in connection with employee stock option exercises and RSU vesting	492			$ 2				490
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)				244
Common shares withheld for settlement of taxes in connection with equity-based compensation	(7,195)			$ (1)				(7,194)
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)				(81)
Cash dividends paid	(7,671)											(7,671)
Other comprehensive income (loss)	64									64
Net income	29,454											29,454
Ending balance at Jun. 30, 2021	$ 465,334			$ 392		$ (100,027)		$ 360,404		$ (7,391)		$ 211,956
Ending balance (in shares) at Jun. 30, 2021	36,615			39,173		2,558

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 58,968	$ 23,305
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,243	21,370
Deferred taxes	1,782	693
Non-cash equity-based compensation	17,896	9,396
Bad debt expense	213	1,086
Changes in operating assets and liabilities:
Accounts receivable	(6,056)	(3,279)
Prepaid expenses and other current and non-current assets	(5,892)	49
Accounts payable and other current and non-current liabilities	6,359	(4,045)
Long-term incentives related to acquisitions	0	(7,759)
Contributor royalties payable	1,750	(840)
Deferred revenue	11,953	(3,633)
Net cash provided by operating activities	107,216	36,343
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(15,337)	(13,966)
Business combination, net of cash acquired	(72,165)	0
Acquisition of content	(3,396)	(1,577)
Security deposit (payment) / release	(65)	105
Net cash used in investing activities	(90,963)	(15,438)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	1,801	629
Cash paid related to settlement of employee taxes related to RSU vesting	(20,229)	(3,436)
Payment of cash dividend	(15,317)	(12,098)
Net cash used in financing activities	(33,745)	(14,905)
Effect of foreign exchange rate changes on cash	(36)	(717)
Net (decrease) / increase in cash, cash equivalents and restricted cash	(17,528)	5,283
Cash, cash equivalents and restricted cash, beginning of period	428,574	305,874
Cash, cash equivalents and restricted cash, end of period	411,046	311,157
Supplemental Disclosure of Cash Information:
Cash paid for income taxes	$ 9,495	$ 927

Summary of Operations and Signi

Summary of Operations and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Operations and Significant Accounting Policies	Summary of Operations and Significant Accounting Policies Summary of Operations Shutterstock, Inc. (the “Company” or “Shutterstock”) is a leading global creative platform offering full-service solutions, high-quality content, and tools for brands, businesses and media companies. The Company’s platform brings together users and contributors of content by providing readily-searchable content that our customers pay to license and by compensating contributors as their content is licensed. The content licensed by the Company’s customers includes: • Images - consisting of photographs, vectors and illustrations. Images are typically used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and other similar uses. • Footage - consisting of video clips, premium footage filmed by industry experts and cinema grade video effects, available in HD and 4K formats. Footage is often integrated into websites, social media, marketing campaigns and cinematic productions. • Music - consisting of high-quality music tracks and sound effects, which are often used to complement images and footage. • 3D Models - following the Company’s acquisition of TurboSquid, Inc. on February 1, 2021, Shutterstock now offers 3D models, used in industries such as advertising, media & video production, gaming, retail, education, design and architecture. See Note 3 Acquisition. 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. 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, 2021, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020, and the Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020, are unaudited. The Consolidated Balance Sheet as of December 31, 2020, 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 fairly state the Company’s financial position as of June 30, 2021, and its consolidated results of operations, comprehensive income and stockholders’ equity for the three and six months ended June 30, 2021 and 2020, and its cash flows for the six months ended June 30, 2021 and 2020. 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, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 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, 2020 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 11, 2021. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed 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 amount 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 used to calculate the lease liability. Cash and Cash Equivalents The Company’s cash and cash equivalents consist primarily of cash on hand, bank deposits, money market funds and commercial paper. 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 (i) the aging of its accounts receivable considering historical receivables loss rates, (ii) on a customer-by-customer basis, where appropriate, and (iii) the economic environments in which the Company operates. During the six months ended June 30, 2021, the Company recorded bad debt expense of $0.2 million. As of June 30, 2021 and December 31, 2020, the Company’s allowance for doubtful accounts was approximately $2.4 million and $4.9 million, respectively. The allowance for doubtful accounts is included as a reduction of accounts receivable on the Consolidated Balance Sheets. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”) on January 1, 2020, using the modified retrospective method and recorded a cumulative-effect adjustment of $0.2 million, net of tax, in retained earnings as of January 1, 2020. 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, 2021 and December 31, 2020, the Company’s combined allowance for chargebacks and sales refunds was $0.5 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 content. Content licenses are generally purchased on a monthly or annual 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. The Company recognizes revenue upon the satisfaction of performance obligations, which generally occurs when content is downloaded by a customer. The Company recognizes revenue on both its subscription-based and transaction-based products 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 estimated revenue associated with the unused licenses as digital content is downloaded and licenses are obtained for such content by the customer during 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. 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. Recently Adopted Accounting Standard Updates In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes

Fair Value Measurements and Lon

Fair Value Measurements and Long-term Investments	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements and Long-term Investments	Fair Value Measurements and Long-term Investments Fair Value Measurements The Company had no assets or liabilities requiring fair value hierarchy disclosures as of June 30, 2021 or December 31, 2020, except as noted below. Cash Equivalents Cash equivalents includes money market accounts and are classified as a level 1 measurement based on quoted prices in active markets for identical assets that the reporting entity can access at the measurement date. As of June 30, 2021 and December 31, 2020, the Company had cash equivalent balances of $280.1 million and $250.0 million, respectively. Other Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses 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 a 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. Long-term Investments As of June 30, 2021 and December 31, 2020, the Company’s long-term investments were in equity securities with no readily determinable fair value, totaled $20.0 million, and were reported within other assets on the Consolidated Balance Sheets. The Company uses the measurement alternative for these equity investments and their carrying value is reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments.

Acquisition

Acquisition	6 Months Ended
	Jun. 30, 2021
Business Combinations [Abstract]
Acquisition	Acquisition TurboSquid, Inc. On February 1, 2021, the Company completed its acquisition of all of the outstanding shares of TurboSquid, Inc. (“TurboSquid”), for approximately $77.3 million. The total purchase price was paid with existing cash on hand in the three months ended March 31, 2021. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company’s results of operations from the acquisition date. In connection with the acquisition, the Company incurred approximately $1.6 million of transaction costs. TurboSquid is a Louisiana-based company that operates a marketplace offering more than one million 3D models, a marketplace for 2D images derived from 3D objects and a digital asset management solution. The Company believes this acquisition establishes Shutterstock as the premium destination for 3D models as well as 3D models in an easy-to-use 2D format. The fair value of consideration transferred in this business combination was allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands): Assets acquired and liabilities assumed: Fair Value at Acquisition Date Cash and cash equivalents $ 5,165 Other assets 1,553 Property and equipment 472 Intangible assets 21,500 Goodwill 59,491 Total assets acquired $ 88,181 Accounts payable, accrued expenses and other liabilities (4,685) Contributor royalties payable (2,243) Deferred tax liability (3,923) Total liabilities assumed (10,851) Net assets acquired $ 77,330 The identifiable intangible assets, which include customer relationships, developed technology, trade names and contributor content, have a weighted average life of approximately 8.2 years and are being amortized on a straight-line basis. The fair value of the customer relationships was determined using a variation of the income approach known as the multiple-period excess earnings method. The fair value of the trade names and developed technology were determined using the relief-from-royalty method and the fair value of the contributor content was determined using the cost-to-recreate method. The goodwill arising from the transaction is primarily attributable to expected operational synergies and is not deductible for income tax purposes. The following unaudited pro forma consolidated financial information (in thousands) reflects the results of operations of the Company for the three and six months ended June 30, 2021 and 2020, as if the TurboSquid acquisition had been completed on January 1, 2020, after giving effect to certain purchase accounting adjustments, primarily related to intangible assets. These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue As Reported $ 189,912 $ 159,230 $ 373,193 $ 320,515 Pro Forma 189,912 164,762 375,256 331,485 Income before income taxes As Reported $ 34,548 $ 22,694 $ 70,204 $ 28,988 Pro Forma 34,548 22,728 71,505 27,569

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment is summarized as follows (in thousands): As of June 30, 2021 As of December 31, 2020 Computer equipment and software $ 208,018 $ 193,141 Furniture and fixtures 10,246 10,235 Leasehold improvements 19,380 19,382 Property and equipment 237,644 222,758 Less accumulated depreciation (187,654) (171,852) Property and equipment, net $ 49,990 $ 50,906 Depreciation expense related to property and equipment was $7.9 million and $9.6 million for the three months ended June 30, 2021 and 2020, respectively, and $15.9 million and $18.9 million for the six months ended June 30, 2021 and 2020, respectively. Cost of revenues included depreciation expense of $7.1 million and $8.6 million for the three months ended June 30, 2021 and 2020, respectively, and $14.2 million and $16.8 million for the six months ended June 30, 2021 and 2020, respectively. General and administrative expense included depreciation expense of $0.8 million and $1.0 million for the three months ended June 30, 2021 and 2020, respectively, and $1.7 million and $2.1 million for the six months ended June 30, 2021 and 2020, respectively. Capitalized Internal-Use Software The Company capitalized costs related to the development of internal-use software of $7.2 million and $6.5 million for the three months ended June 30, 2021 and 2020, respectively, and $14.2 million and $13.1 million for the six months ended June 30, 2021 and 2020, 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 $6.6 million and $7.8 million for the three months ended June 30, 2021 and 2020, respectively, and $13.3 million and $14.9 million for the six months ended June 30, 2021 and 2020, 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, 2021 and December 31, 2020, the Company had capitalized internal-use software of $38.9 million and $38.0 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, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The Company’s goodwill balance is attributable to its Content reporting unit and is tested for impairment annually on October 1 or upon a triggering event. No triggering events were identified during the six months ended June 30, 2021. The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2021 (in thousands): Goodwill Balance as of December 31, 2020 $ 89,413 Goodwill related to acquisitions $ 59,491 Foreign currency translation adjustment 165 Balance as of June 30, 2021 $ 149,069 Intangible Assets Intangible assets consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands): As of June 30, 2021 As of December 31, 2020 Gross Accumulated Net Weighted Gross Accumulated Net Amortizing intangible assets: Customer relationships $ 27,282 $ (12,181) $ 15,101 10 $ 18,132 $ (11,032) $ 7,100 Trade name 8,926 (6,592) 2,334 8 6,669 (6,328) 341 Developed technology 14,763 (6,131) 8,632 4 6,930 (5,039) 1,891 Contributor content 32,623 (12,416) 20,207 8 26,669 (10,378) 16,291 Patents 259 (124) 135 18 259 (117) 142 Total $ 83,853 $ (37,444) $ 46,409 $ 58,659 $ (32,894) $ 25,765 Amortization expense was $2.3 million and $1.2 million for the three months ended June 30, 2021 and 2020, respectively, and $4.4 million and $2.5 million for the six months ended June 30, 2021 and 2020, respectively. Cost of revenue included amortization expense of $1.2 million and $0.7 million for the three months ended June 30, 2021 and 2020, respectively, and $2.3 million and $1.3 million for the six months ended June 30, 2021 and 2020, respectively. General and administrative expense included amortization expense of $1.1 million and $0.5 million for the three months ended June 30, 2021 and 2020, respectively, and $2.0 million and $1.2 million for the six months ended June 30, 2021 and 2020, respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $4.6 million for the remaining six months of 2021, $8.9 million in 2022, $8.6 million in 2023, $7.6 million in 2024, $4.3 million in 2025, $3.2 million in 2026 and $9.2 million thereafter.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following (in thousands): As of June 30, 2021 As of December 31, 2020 Compensation $ 27,016 $ 31,499 Non-income taxes 20,937 17,164 Website hosting and marketing fees 12,831 9,991 Other expenses 13,105 9,255 Total accrued expenses $ 73,889 $ 67,909

Stockholders_ Equity and Equity

Stockholders’ Equity and Equity-Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stockholders’ Equity and Equity-Based Compensation	Stockholders’ Equity and Equity-Based Compensation Stockholders’ Equity Common Stock The Company issued approximately 163,000 and 126,000 shares of common stock during the three months ended June 30, 2021 and 2020, respectively, and 370,000 and 190,000 for the six months ended June 30, 2021 and 2020, respectively, related to the exercise of stock options and the vesting of Restricted Stock Units. 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, 2021 and 2020, the Company did not repurchase any shares of its common stock under the share repurchase program. As of June 30, 2021, 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 share repurchase 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. Dividends The Company declared and paid cash dividends of $0.21 and $0.42 per share of common stock, or $7.7 million and $15.3 million, during the three and six months ended June 30, 2021, respectively, and $0.17 and $0.34 per share of common stock, or $6.1 million and $12.1 million, during the three and six months ended June 30, 2020, respectively. On July 19, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share of outstanding common stock payable on September 16, 2021 to stockholders of record at the close of business on September 2, 2021. Future declarations of dividends are subject to the final determination of the Board of Directors, and will depend on, among other things, the Company’s future financial condition, results of operations, capital requirements, capital expenditure requirements, contractual restrictions, anticipated cash needs, business prospects, provisions of applicable law and other factors the Board of Directors may deem relevant. Equity-Based Compensation The Company recognizes stock-based compensation expense for all equity-based payment awards, including employee Restricted Stock Units and Performance-based Restricted Stock Units (“PRSUs” and, collectively with Restricted Stock Units, “RSUs”) and stock options 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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 194 $ 99 $ 358 $ 150 Sales and marketing 926 374 1,393 834 Product development 1,799 1,068 3,028 2,193 General and administrative 6,767 2,095 13,117 6,219 Total $ 9,686 $ 3,636 $ 17,896 $ 9,396 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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options $ 177 $ 414 $ 352 $ 1,730 RSUs 9,509 3,222 17,544 7,666 Total $ 9,686 $ 3,636 $ 17,896 $ 9,396 Stock Option Awards During the six months ended June 30, 2021, no options to purchase shares of its common stock were granted. As of June 30, 2021, there were approximately 300,000 options vested and exercisable with a weighted average exercise price of $34.43. As of June 30, 2021, the total unrecognized compensation charge related to non-vested options was approximately $1.3 million, which is expected to be recognized through 2023. Restricted Stock Unit Awards During the six months ended June 30, 2021, the Company had RSU grants, net of forfeitures, of approximately 382,000. As of June 30, 2021, there are approximately 1,242,000 non-vested RSUs outstanding with a weighted average grant-date fair value of $56.89. As of June 30, 2021, the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $56.7 million, which is expected to be recognized through 2024.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company distributes its content offerings through two primary channels: E-commerce: The majority of the Company’s customers license content directly through the Company’s self-service web properties. E-commerce customers have the flexibility to purchase a subscription plan that is paid on a monthly or annual basis or to license content 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: The Company also has a base of customers with unique content, licensing and workflow needs. These customers benefit from communication with dedicated sales professionals, service and research teams which provide a number of tailored enhancements to their creative workflows including non-standard licensing rights, multi-seat access, ability to pay on credit terms, multi-brand licensing packages, increased indemnification protection and content licensed for use-cases outside of those available on the E-commerce platform. The Company’s revenues by distribution channel for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 E-commerce $ 120,715 $ 98,164 $ 239,115 $ 197,900 Enterprise 69,197 61,066 134,078 122,615 Total Revenues $ 189,912 $ 159,230 $ 373,193 $ 320,515 The June 30, 2021 deferred revenue balance will be earned as content is downloaded or upon the expiration of subscription-based products, and nearly all is expected to be earned within the next twelve months. $99.2 million of total revenue recognized for the six months ended June 30, 2021 was reflected in deferred revenue as of December 31, 2020.

Other Income _ (Loss), net

Other Income / (Loss), net	6 Months Ended
	Jun. 30, 2021
Other Nonoperating Income (Expense) [Abstract]
Other Income / (Loss), net	Other Income / (Loss), 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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency gain / (loss) $ 1,277 $ 132 $ (1,233) $ (466) Interest income, net 46 17 94 1,128 Total other income / (loss) $ 1,323 $ 149 $ (1,139) $ 662

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates yielded a net expense of 14.7% and 16.3% for the three months ended June 30, 2021 and 2020, respectively, and a net expense of 16.0% and 19.6% for the six months ended June 30, 2021 and 2020, respectively. During the three months ended June 30, 2021, the net effect of discrete items decreased the effective tax rate by 5.3%. For the six months ended June 30, 2021, the net effect of discrete items decreased the effective tax rate by 4.0%. The discrete items for the three and six months ended June 30, 2021, primarily relate to windfall tax benefits associated with equity-based compensation. Excluding discrete items, the Company’s effective tax rate would have been 20.0% for the three and six months ended June 30, 2021. During the three months ended June 30, 2020, the net effect of discrete items decreased the effective tax rate by 0.3%. For the six months ended June 30, 2020, the effective tax rate increased by 1.6% as a result of a loss jurisdiction with no tax benefit. Discrete items further increased the effective tax rate by 1.4%. Excluding the discrete items, the Company’s effective tax rate would have been 16.6% for the three and six months ended June 30, 2020. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding a loss jurisdiction with no tax benefit and the application of discrete items, if any, in the applicable period. During the three and six months ended June 30, 2021 and 2020, uncertain tax positions recorded by the Company were not significant. 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, 2021 and 2020. During the six months ended June 30, 2021 and 2020, the Company paid net cash taxes of $9.5 million and $0.9 million, respectively.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income 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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 29,454 $ 18,987 $ 58,968 $ 23,305 Shares used to compute basic net income per share 36,570 35,652 36,453 35,587 Dilutive potential common shares Stock options 242 39 233 53 Unvested restricted stock awards 377 215 532 254 Shares used to compute diluted net income per share 37,189 35,906 37,218 35,894 Basic net income per share $ 0.81 $ 0.53 $ 1.62 $ 0.65 Diluted net income per share $ 0.79 $ 0.53 $ 1.58 $ 0.65 Dilutive shares included in the calculation 1,221 1,304 1,328 1,080 Anti-dilutive shares excluded from the calculation 2 1,152 10 1,148

Geographic Information

Geographic Information	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Geographic Information	Geographic Information The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended June 30, Six Months Ended 2021 2020 2021 2020 North America $ 68,954 $ 56,211 $ 133,263 $ 113,229 Europe 64,778 52,207 127,055 106,003 Rest of the world 56,180 50,812 112,875 101,283 Total revenue $ 189,912 $ 159,230 $ 373,193 $ 320,515 The United States, included in North America in the above table, accounted for 31% and 32% of consolidated revenue for the six months ended June 30, 2021 and 2020, 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): As of June 30, As of December 31, 2021 2020 North America $ 42,324 $ 43,451 Europe 7,470 7,192 Rest of the world 196 263 Total long-lived tangible assets $ 49,990 $ 50,906

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of June 30, 2021, the Company had total non-lease obligations in the amount of approximately $45.4 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, 2021, the Company’s non-lease obligations for the remainder of 2021 and for the years ending December 31, 2022, 2023, 2024 and 2025 were approximately $14.2 million, $14.2 million, $9.9 million, $4.7 million and $2.1 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, 2021, the Company had recorded no material liabilities related to indemnification obligations 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.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn July 2021, the Company acquired Pattern89 Inc., Datasine Limited and assets from Shotzr, Inc. The aggregate cash consideration was approximately $35 million, and is subject to customary working capital and other adjustments, paid from existing cash on hand. These three entities provide data driven insights through their artificial intelligence platforms. The Company is currently evaluating the accounting model for these transactions.

Summary of Operations and Sig_2

Summary of Operations and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe 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, 2021, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020, and the Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020, are unaudited. The Consolidated Balance Sheet as of December 31, 2020, 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 fairly state the Company’s financial position as of June 30, 2021, and its consolidated results of operations, comprehensive income and stockholders’ equity for the three and six months ended June 30, 2021 and 2020, and its cash flows for the six months ended June 30, 2021 and 2020. 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, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 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, 2020 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 11, 2021. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting.
Use of Estimates	Use of EstimatesThe preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed 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 amount 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 used to calculate the lease liability.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company’s cash and cash equivalents consist primarily of cash on hand, bank deposits, money market funds and commercial paper.
Allowance for Doubtful Accounts	Allowance for Doubtful AccountsThe 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 (i) the aging of its accounts receivable considering historical receivables loss rates, (ii) on a customer-by-customer basis, where appropriate, and (iii) the economic environments in which the Company operates.
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, 2021 and December 31, 2020, the Company’s combined allowance for chargebacks and sales refunds was $0.5 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 content. Content licenses are generally purchased on a monthly or annual 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. The Company recognizes revenue upon the satisfaction of performance obligations, which generally occurs when content is downloaded by a customer. The Company recognizes revenue on both its subscription-based and transaction-based products 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 estimated revenue associated with the unused licenses as digital content is downloaded and licenses are obtained for such content by the customer during 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. 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.
Recently Adopted and Issued Accounting Standard Updates	Recently Adopted Accounting Standard Updates In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Jun. 30, 2021
Business Combinations [Abstract]
Schedule of Aggregate Purchase Price Allocation to Assets Acquired and Liabilities Assumed	The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows (in thousands): Assets acquired and liabilities assumed: Fair Value at Acquisition Date Cash and cash equivalents $ 5,165 Other assets 1,553 Property and equipment 472 Intangible assets 21,500 Goodwill 59,491 Total assets acquired $ 88,181 Accounts payable, accrued expenses and other liabilities (4,685) Contributor royalties payable (2,243) Deferred tax liability (3,923) Total liabilities assumed (10,851) Net assets acquired $ 77,330
Business Acquisition, Pro Forma Information	These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue As Reported $ 189,912 $ 159,230 $ 373,193 $ 320,515 Pro Forma 189,912 164,762 375,256 331,485 Income before income taxes As Reported $ 34,548 $ 22,694 $ 70,204 $ 28,988 Pro Forma 34,548 22,728 71,505 27,569

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment is summarized as follows (in thousands): As of June 30, 2021 As of December 31, 2020 Computer equipment and software $ 208,018 $ 193,141 Furniture and fixtures 10,246 10,235 Leasehold improvements 19,380 19,382 Property and equipment 237,644 222,758 Less accumulated depreciation (187,654) (171,852) Property and equipment, net $ 49,990 $ 50,906

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 (in thousands): Goodwill Balance as of December 31, 2020 $ 89,413 Goodwill related to acquisitions $ 59,491 Foreign currency translation adjustment 165 Balance as of June 30, 2021 $ 149,069
Schedule of Intangible Assets	Intangible assets consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands): As of June 30, 2021 As of December 31, 2020 Gross Accumulated Net Weighted Gross Accumulated Net Amortizing intangible assets: Customer relationships $ 27,282 $ (12,181) $ 15,101 10 $ 18,132 $ (11,032) $ 7,100 Trade name 8,926 (6,592) 2,334 8 6,669 (6,328) 341 Developed technology 14,763 (6,131) 8,632 4 6,930 (5,039) 1,891 Contributor content 32,623 (12,416) 20,207 8 26,669 (10,378) 16,291 Patents 259 (124) 135 18 259 (117) 142 Total $ 83,853 $ (37,444) $ 46,409 $ 58,659 $ (32,894) $ 25,765

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): As of June 30, 2021 As of December 31, 2020 Compensation $ 27,016 $ 31,499 Non-income taxes 20,937 17,164 Website hosting and marketing fees 12,831 9,991 Other expenses 13,105 9,255 Total accrued expenses $ 73,889 $ 67,909

Stockholders_ Equity and Equi_2

Stockholders’ Equity and Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 194 $ 99 $ 358 $ 150 Sales and marketing 926 374 1,393 834 Product development 1,799 1,068 3,028 2,193 General and administrative 6,767 2,095 13,117 6,219 Total $ 9,686 $ 3,636 $ 17,896 $ 9,396 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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options $ 177 $ 414 $ 352 $ 1,730 RSUs 9,509 3,222 17,544 7,666 Total $ 9,686 $ 3,636 $ 17,896 $ 9,396

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 and 2020 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 E-commerce $ 120,715 $ 98,164 $ 239,115 $ 197,900 Enterprise 69,197 61,066 134,078 122,615 Total Revenues $ 189,912 $ 159,230 $ 373,193 $ 320,515

Other Income _ (Loss), net (Tab

Other Income / (Loss), net (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency gain / (loss) $ 1,277 $ 132 $ (1,233) $ (466) Interest income, net 46 17 94 1,128 Total other income / (loss) $ 1,323 $ 149 $ (1,139) $ 662

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 29,454 $ 18,987 $ 58,968 $ 23,305 Shares used to compute basic net income per share 36,570 35,652 36,453 35,587 Dilutive potential common shares Stock options 242 39 233 53 Unvested restricted stock awards 377 215 532 254 Shares used to compute diluted net income per share 37,189 35,906 37,218 35,894 Basic net income per share $ 0.81 $ 0.53 $ 1.62 $ 0.65 Diluted net income per share $ 0.79 $ 0.53 $ 1.58 $ 0.65 Dilutive shares included in the calculation 1,221 1,304 1,328 1,080 Anti-dilutive shares excluded from the calculation 2 1,152 10 1,148

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2021
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 June 30, Six Months Ended 2021 2020 2021 2020 North America $ 68,954 $ 56,211 $ 133,263 $ 113,229 Europe 64,778 52,207 127,055 106,003 Rest of the world 56,180 50,812 112,875 101,283 Total revenue $ 189,912 $ 159,230 $ 373,193 $ 320,515
Long-lived Assets by Geographic Areas	The Company’s long-lived tangible assets were located as follows (in thousands): As of June 30, As of December 31, 2021 2020 North America $ 42,324 $ 43,451 Europe 7,470 7,192 Rest of the world 196 263 Total long-lived tangible assets $ 49,990 $ 50,906

Summary of Operations and Sig_3

Summary of Operations and Significant Accounting Policies - Allowance for Doubtful Accounts and Chargeback and Sales Refund Allowance (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Bad debt expense	$ 213	$ 1,086
Allowance for doubtful accounts	2,425		$ 4,942
Chargeback and sales refund allowances	$ 500		$ 500

Summary of Operations and Sig_4

Summary of Operations and Significant Accounting Policies - Accounting Standards Update (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity	$ (465,334)	$ (440,504)	$ (421,925)	$ (343,500)	$ (327,727)	$ (328,145)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity	$ (211,956)	$ (190,173)	$ (168,305)	$ (132,147)	$ (119,218)	(121,187)
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity						247
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity						247
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity						$ 200

Fair Value Measurements and Oth

Fair Value Measurements and Other Long-term Investments (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Cash equivalents	$ 280.1	$ 250
Long-term investments	$ 20	$ 20

Acquisition - Narrative (Detail

Acquisition - Narrative (Details) - TurboSquid, Inc. $ in Millions	Feb. 01, 2021USD ($)
Business Acquisition [Line Items]
Purchase price	$ 77.3
Professional fees	$ 1.6
Estimated useful life	8 years 2 months 12 days

Acquisition - Schedule of Acqui

Acquisition - Schedule of Acquisition (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Feb. 01, 2021	Dec. 31, 2020
Assets acquired and liabilities assumed:
Goodwill	$ 149,069		$ 89,413
TurboSquid, Inc.
Assets acquired and liabilities assumed:
Cash and cash equivalents		$ 5,165
Other assets		1,553
Property and equipment		472
Intangible assets		21,500
Goodwill		59,491
Total assets acquired		88,181
Accounts payable, accrued expenses and other liabilities		(4,685)
Contributor royalties payable		(2,243)
Deferred tax liability		(3,923)
Total liabilities assumed		(10,851)
Net assets acquired		$ 77,330

Acquisition - Pro Forma (Detail

Acquisition - Pro Forma (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Revenue - As Reported	$ 189,912	$ 159,230	$ 373,193	$ 320,515
Income before income taxes - As Reported			70,204	28,988
TurboSquid, Inc.
Business Acquisition [Line Items]
Revenue - As Reported	189,912	159,230	373,193	320,515
Revenue - Pro Forma	189,912	164,762	375,256	331,485
Income before income taxes - As Reported	34,548	22,694	70,204	28,988
Income before income taxes - Pro Forma	$ 34,548	$ 22,728	$ 71,505	$ 27,569

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property and Equipment
Property and equipment	$ 237,644		$ 237,644		$ 222,758
Less accumulated depreciation	(187,654)		(187,654)		(171,852)
Property and equipment, net	49,990		49,990		50,906
Capitalized amount	7,200	$ 6,500	14,200	$ 13,100
Amortization expense	6,600	7,800	13,300	14,900
Internal use software	38,900		38,900		38,000
Computer equipment and software
Property and Equipment
Property and equipment	208,018		208,018		193,141
Furniture and fixtures
Property and Equipment
Property and equipment	10,246		10,246		10,235
Leasehold improvements
Property and Equipment
Property and equipment	19,380		19,380		$ 19,382
Property And Equipment
Property and Equipment
Depreciation	7,900	9,600	15,900	18,900
Cost of revenue
Property and Equipment
Depreciation	7,100	8,600	14,200	16,800
Selling, General and Administrative Expenses
Property and Equipment
Depreciation	$ 800	$ 1,000	$ 1,700	$ 2,100

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 89,413
Goodwill related to acquisitions	59,491
Foreign currency translation adjustment	165
Balance at the end of the period	$ 149,069

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Amortizing intangible assets
Gross Carrying Amount	$ 83,853	$ 58,659
Accumulated Amortization	(37,444)	(32,894)
Net Carrying Amount	46,409	25,765
Customer relationships
Amortizing intangible assets
Gross Carrying Amount	27,282	18,132
Accumulated Amortization	(12,181)	(11,032)
Net Carrying Amount	$ 15,101	7,100
Weighted Average Life (Years)	10 years
Trade name
Amortizing intangible assets
Gross Carrying Amount	$ 8,926	6,669
Accumulated Amortization	(6,592)	(6,328)
Net Carrying Amount	$ 2,334	341
Weighted Average Life (Years)	8 years
Developed technology
Amortizing intangible assets
Gross Carrying Amount	$ 14,763	6,930
Accumulated Amortization	(6,131)	(5,039)
Net Carrying Amount	$ 8,632	1,891
Weighted Average Life (Years)	4 years
Contributor content
Amortizing intangible assets
Gross Carrying Amount	$ 32,623	26,669
Accumulated Amortization	(12,416)	(10,378)
Net Carrying Amount	$ 20,207	16,291
Weighted Average Life (Years)	8 years
Patents
Amortizing intangible assets
Gross Carrying Amount	$ 259	259
Accumulated Amortization	(124)	(117)
Net Carrying Amount	$ 135	$ 142
Weighted Average Life (Years)	18 years

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Amortizing intangible assets
Amortization expense	$ 2.3	$ 1.2	$ 4.4	$ 2.5
Remainder of 2021	4.6		4.6
2022	8.9		8.9
2023	8.6		8.6
2024	7.6		7.6
2025	4.3		4.3
2026	3.2		3.2
Thereafter	9.2		9.2
Cost of revenue
Amortizing intangible assets
Amortization expense	1.2	0.7	2.3	1.3
Selling, General and Administrative Expenses
Amortizing intangible assets
Amortization expense	$ 1.1	$ 0.5	$ 2	$ 1.2

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Compensation	$ 27,016	$ 31,499
Non-income taxes	20,937	17,164
Website hosting and marketing fees	12,831	9,991
Other expenses	13,105	9,255
Total accrued expenses	$ 73,889	$ 67,909

Stockholders_ Equity and Equi_3

Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($)	Jul. 19, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Feb. 28, 2017	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		163,000	126,000
Payment of cash dividend (in dollars per share)		$ 0.21	$ 0.17	$ 0.42	$ 0.34
Cash dividend paid		$ 7,700,000	$ 6,100,000	$ 15,300,000	$ 12,100,000
Value of shares withheld				$ 20,229,000	$ 3,436,000
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly cash dividend, declared (in usd per share)	$ 0.21
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)				370,000	190,000
Authorized purchase amount (up to)						$ 100,000,000	$ 100,000,000
Repurchase of treasury shares (in shares)				0	0
Value remaining for repurchase		$ 100,000,000		$ 100,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested and exercisable (in shares)		300,000		300,000
Options vested and exercisable, weighted average exercise price (in dollars per share)		$ 34.43		$ 34.43
Unrecognized compensation charge		$ 1,300,000		$ 1,300,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)				382,000
Weighted average grant-date fair value (in usd per share)		$ 56.89		$ 56.89
Nonvested shares outstanding (in shares)		1,242,000		1,242,000
Unrecognized non-cash equity-based compensation charge		$ 56,700,000		$ 56,700,000
Value of shares withheld				$ 20,200,000	$ 3,400,000

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, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Non-cash equity-based compensation expense
Non-cash equity-based compensation	$ 9,686	$ 3,636	$ 17,896	$ 9,396
Stock options
Non-cash equity-based compensation expense
Non-cash equity-based compensation	177	414	352	1,730
RSUs
Non-cash equity-based compensation expense
Non-cash equity-based compensation	9,509	3,222	17,544	7,666
Cost of revenue
Non-cash equity-based compensation expense
Non-cash equity-based compensation	194	99	358	150
Sales and marketing
Non-cash equity-based compensation expense
Non-cash equity-based compensation	926	374	1,393	834
Product development
Non-cash equity-based compensation expense
Non-cash equity-based compensation	1,799	1,068	3,028	2,193
General and administrative
Non-cash equity-based compensation expense
Non-cash equity-based compensation	$ 6,767	$ 2,095	$ 13,117	$ 6,219

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Total revenue	$ 189,912	$ 159,230	$ 373,193	$ 320,515
Disposal group deferred revenue			99,200
E-commerce
Segment Reporting Information [Line Items]
Total revenue	120,715	98,164	239,115	197,900
Enterprise
Segment Reporting Information [Line Items]
Total revenue	$ 69,197	$ 61,066	$ 134,078	$ 122,615

Other Income _ (Loss), net (Det

Other Income / (Loss), net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Nonoperating Income (Expense) [Abstract]
Foreign currency gain / (loss)	$ 1,277	$ 132	$ (1,233)	$ (466)
Interest income, net	46	17	94	1,128
Total other income / (loss)	$ 1,323	$ 149	$ (1,139)	$ 662

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate, expense	14.70%	16.30%	16.00%	19.60%
Effective tax rate decrease due to windfall tax benefits associated with equity-based compensation	5.30%		4.00%
Effective tax rate, excluding discrete items	20.00%		20.00%	16.60%
Increase (decrease) in effective tax rate, loss jurisdiction		(0.30%)		1.60%
Increase in effective tax rate, effect of discrete items				(1.40%)
Cash paid for income taxes			$ 9,495	$ 927

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 29,454	$ 18,987	$ 58,968	$ 23,305
Shares used to compute basic net income per share (in shares)	36,570	35,652	36,453	35,587
Dilutive potential common shares
Stock options (in shares)	242	39	233	53
Unvested restricted stock awards (in shares)	377	215	532	254
Shares used to compute diluted net income per share (in shares)	37,189	35,906	37,218	35,894
Basic net income per share (in dollars per share)	$ 0.81	$ 0.53	$ 1.62	$ 0.65
Diluted net income per share (in dollars per share)	$ 0.79	$ 0.53	$ 1.58	$ 0.65
Dilutive securities included in the calculation (in shares)	1,221	1,304	1,328	1,080
Anti-dilutive securities excluded from the calculation (in shares)	2	1,152	10	1,148

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Geographic revenue based on customer location and long-lived tangible assets
Revenue	$ 189,912	$ 159,230	$ 373,193	$ 320,515
Total long-lived tangible assets	49,990		49,990		$ 50,906
North America
Geographic revenue based on customer location and long-lived tangible assets
Revenue	68,954	56,211	133,263	$ 113,229
Total long-lived tangible assets	42,324		$ 42,324		$ 43,451
United States | Revenue benchmark | Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			31.00%	32.00%
United States | Total long-lived tangible assets | Geographic concentration
Geographic revenue based on customer location and long-lived tangible assets
Concentration risk percentage			75.00%		75.00%
Europe
Geographic revenue based on customer location and long-lived tangible assets
Revenue	64,778	52,207	$ 127,055	$ 106,003
Total long-lived tangible assets	7,470		7,470		$ 7,192
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Revenue	56,180	$ 50,812	112,875	$ 101,283
Total long-lived tangible assets	$ 196		$ 196		$ 263

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	Jun. 30, 2021USD ($)
Other Commitments [Line Items]
Other obligations	$ 45,400,000
Maturity of unconditional purchase obligations
Remainder of 2021	14,200,000
2022	14,200,000
2023	9,900,000
2024	4,700,000
2025	2,100,000
Indemnifications
Maximum aggregate obligation and liability for customer	250,000
Indemnification Agreement
Indemnifications
Maximum possible loss per customer	$ 10,000

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	1 Months Ended
	Jul. 27, 2021USD ($)
Subsequent Event | AI Companies
Subsequent Event [Line Items]
Cash payment	$ 35