Shutterstock (SSTK) 10-Q 2 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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, 20th 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		35,843,326
Entity Central Index Key	0001549346
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 71,811	$ 100,490
Accounts receivable, net of allowance of $4,873 and $6,335	93,993	91,139
Prepaid expenses and other current assets	93,095	100,944
Total current assets	258,899	292,573
Property and equipment, net	63,430	64,300
Right-of-use assets	16,482	15,395
Intangible assets, net	174,868	184,396
Goodwill	402,787	383,325
Deferred tax assets, net	28,156	24,874
Other assets	83,881	71,152
Total assets	1,028,503	1,036,015
Current liabilities:
Accounts payable	9,373	9,108
Accrued expenses	99,212	131,443
Contributor royalties payable	61,392	54,859
Deferred revenue	198,041	203,463
Debt	30,000	30,000
Other current liabilities	34,959	23,513
Total current liabilities	432,977	452,386
Deferred tax liability, net	3,795	4,182
Lease liabilities	28,745	29,404
Other non-current liabilities	21,711	22,949
Total liabilities	487,228	508,921
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 40,013 and 39,982 shares issued and 35,603 and 35,572 shares outstanding as of March 31, 2024 and December 31, 2023, respectively	399	399
Treasury stock, at cost; 4,410 shares as of March 31, 2024 and December 31, 2023	(228,213)	(228,213)
Additional paid-in capital	434,416	424,229
Accumulated other comprehensive loss	(13,438)	(11,974)
Retained earnings	348,111	342,653
Total stockholders’ equity	541,275	527,094
Total liabilities and stockholders’ equity	$ 1,028,503	$ 1,036,015

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,873	$ 6,335
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)	40,013,000	39,982,000
Common stock, shares outstanding (in shares)	35,603,000	35,572,000
Treasury stock, shares held in treasury (in shares)	4,410,000	4,410,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 214,315	$ 215,280
Operating expenses:
Cost of revenue	88,204	78,163
Sales and marketing	56,236	47,527
Product development	21,051	15,406
General and administrative	32,078	33,815
Total operating expenses	197,569	174,911
Income from operations	16,746	40,369
Other income, net	3,644	1,045
Income before income taxes	20,390	41,414
Provision for income taxes	4,269	8,571
Net income	$ 16,121	$ 32,843
Earnings per share:
Basic (in dollars per share)	$ 0.45	$ 0.92
Diluted (in dollars per share)	$ 0.45	$ 0.90
Weighted average common shares outstanding:
Basic (in shares)	35,591	35,856
Diluted (in shares)	36,066	36,575

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 16,121	$ 32,843
Foreign currency translation (loss) / gain	(1,464)	1,419
Other comprehensive (loss) / income	(1,464)	1,419
Comprehensive income	$ 14,657	$ 34,262

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
Beginning balance (in shares) at Dec. 31, 2022		39,605
Beginning balance at Dec. 31, 2022	$ 447,482	$ 396	$ (200,008)	$ 391,482	$ (15,439)	$ 271,051
Beginning balance (in shares) at Dec. 31, 2022			3,776
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	8,643			8,643
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		144
Issuance of common stock in connection with employee stock option exercises and RSU vesting	2	$ 1		1
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(59)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(4,193)	$ (1)		(4,192)
Cash dividends paid	(9,662)					(9,662)
Other comprehensive loss	1,419				1,419
Net income	32,843					32,843
Ending balance (in shares) at Mar. 31, 2023		39,690
Ending balance at Mar. 31, 2023	$ 476,534	$ 396	$ (200,008)	395,934	(14,020)	294,232
Ending balance (in shares) at Mar. 31, 2023			3,776
Beginning balance (in shares) at Dec. 31, 2023	35,572	39,982
Beginning balance at Dec. 31, 2023	$ 527,094	$ 399	$ (228,213)	424,229	(11,974)	342,653
Beginning balance (in shares) at Dec. 31, 2023	4,410		4,410
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	$ 11,150			11,150
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares)		52
Issuance of common stock in connection with employee stock option exercises and RSU vesting	0	$ 0		0
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares)		(21)
Common shares withheld for settlement of taxes in connection with equity-based compensation	(963)			(963)
Cash dividends paid	(10,663)					(10,663)
Other comprehensive loss	(1,464)				(1,464)
Net income	$ 16,121					16,121
Ending balance (in shares) at Mar. 31, 2024	35,603	40,013
Ending balance at Mar. 31, 2024	$ 541,275	$ 399	$ (228,213)	$ 434,416	$ (13,438)	$ 348,111
Ending balance (in shares) at Mar. 31, 2024	4,410		4,410

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 16,121	$ 32,843
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,263	18,896
Deferred taxes	(3,854)	(977)
Non-cash equity-based compensation	11,150	8,643
Bad debt expense	(1,510)	790
Unrealized gain on investments	(3,755)	0
Changes in operating assets and liabilities:
Accounts receivable	(736)	19,168
Prepaid expenses and other current and non-current assets	(11,999)	5,189
Accounts payable and other current and non-current liabilities	(20,182)	(12,716)
Contributor royalties payable	6,127	2,246
Deferred revenue	(4,325)	(7,307)
Net cash provided by operating activities	8,300	66,775
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(14,461)	(12,380)
Business combination, net of cash acquired	(19,474)	0
Cash received related to Giphy Retention Compensation	18,401	0
Acquisition of content	(994)	(3,527)
Security deposit payment	0	(30)
Net cash used in investing activities	(16,528)	(15,937)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	0	3
Cash paid related to settlement of employee taxes related to RSU vesting	(7,966)	(11,008)
Payment of cash dividends	(10,663)	(9,662)
Repayment of credit facility	0	(50,000)
Net cash used in financing activities	(18,629)	(70,667)
Effect of foreign exchange rate changes on cash	(1,822)	507
Net decrease in cash and cash equivalents	(28,679)	(19,322)
Cash and cash equivalents, beginning of period	100,490	115,154
Cash and cash equivalents, end of period	71,811	95,832
Supplemental Disclosure of Cash Information:
Cash paid / (received) for income taxes	2,901	(5,150)
Cash paid for interest	$ 509	$ 428

Summary of Operations and Signi

Summary of Operations and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
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 connecting brands and businesses to high quality content. The Company’s platform brings together users and contributors of content by providing readily-searchable content that customers pay to license and by compensating contributors as their content is licensed. Contributors upload their content to the Company’s web properties in exchange for royalty payments based on customer download activity. Beyond content, customers also leverage the Company’s platform to assist with the entire creative process from ideation through creative execution. Digital content licensed to customers for their creative needs includes images, footage, music, and 3D models (the Company’s “Content” offering). Content revenues represent the majority of the Company’s business and are supported by the Company’s searchable creative platform and driven by the Company’s large contributor network. In addition, customers have needs that are beyond traditional content license products and services. These include (i) licenses to metadata associated with the Company’s images, footage, music tracks and 3D models through the Company’s data offering, (ii) distribution and advertising services from the Company’s Giphy business, which consists of GIFs (graphics interchange format visuals) that serve as a critical ingredient in text- and message- based conversations and in contextual advertising settings, (iii) specialized solutions for high-quality content matched with production tools and services through Shutterstock Studios and (iv) other tailored white-glove services (collectively, the Company’s “Data, Distribution, and Services” offerings). The Company’s Content offering 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. • 3 Dimensional (“3D”) Models - consisting of 3D models, used in a variety of industries such as advertising, media and video production, gaming, retail, education, design and architecture. • Generative AI Content - consisting of images generated from algorithms trained with high-quality, ethically sourced content. Customers can generate images by entering a description of their desired content into model prompts. On February 1, 2024, the Company acquired Backgrid USA, Inc. and Backgrid London, Ltd. (collectively “Backgrid”). Backgrid supplies media organizations with real-time celebrity content. See Note 3 Acquisitions. 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 March 31, 2024, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three months ended March 31, 2024 and 2023, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 are unaudited. The Consolidated Balance Sheet as of December 31, 2023, 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 March 31, 2024, and its consolidated results of operations, comprehensive income, stockholders’ equity and cash flows for the three months ended March 31, 2024 and 2023. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 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, 2023 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 26, 2024. 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 bank deposits. Accounts Receivable and 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 and credit losses 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. For certain Data, Distribution, and Services transactions, the Company has $52.2 million of unbilled receivables of which $25.4 million are recorded in Accounts Receivable and $26.8 million are recorded in Other Assets, as of March 31, 2024. During the three months ended March 31, 2024, the Company recorded bad debt recovery of $1.5 million. As of March 31, 2024 and December 31, 2023, the Company’s allowance for doubtful accounts was approximately $4.9 million and $6.3 million, respectively. The allowance for doubtful accounts is included as a reduction of accounts receivable on the Consolidated Balance Sheets. The Company has certain customer arrangements that contain financing elements. Interest income earned from these financing receivables is recorded on the effective interest method and is included within interest income on the Consolidated Statements of Operations. As of March 31, 2024 and December 31, 2023, approximately $7.8 million and $16.0 million of financing receivables, respectively, were included in accounts receivable and other assets on the Consolidated Balance Sheets. In addition, as of March 31, 2024, one customer accounted for approximately 18% of the accounts receivable balance and as of December 31, 2023, two customers accounted for a total of 29% of the accounts receivable balance. 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 March 31, 2024 and December 31, 2023, the Company’s combined allowance for chargebacks and sales refunds was $0.4 million, which was included as a component of other current liabilities on the Consolidated Balance Sheets. Revenue Recognition A significant portion 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 also generates revenue from tools available through the Company’s platform. For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The standalone selling price is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information including internally approved pricing guidelines and pricing information of comparable products. The Company recognizes revenue upon the satisfaction of performance obligations. The Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded by a customer, at which time the license is provided. In addition, the Company estimates expected unused licenses for subscription-based products and recognizes the 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. For revenue associated with tools available through the Company’s platform, revenue is recognized on a straight-line basis over the subscription period. The Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less. Collectability is probable at the time the electronic order or contract is entered. A significant portion of the Company’s customers purchase products by making electronic payments with a credit card at the time of the 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.

Fair Value Measurements and Lon

Fair Value Measurements and Long-term Investments	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 or December 31, 2023, except as noted below. 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. Debt consists of principal amounts outstanding under our credit facility, which approximates fair value as underlying interest rates are reset regularly based on current market rates and is classified as Level 2. The Company’s non-financial assets, which include long-lived assets, 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 Investment in Meitu, Inc. (“Meitu”) In 2018, the Company invested $15.0 million in convertible preferred shares issued by ZCool Technologies Limited (“ZCool”) (the “Preferred Shares”). ZCool’s primary business is the operation of an e-commerce platform in the People’s Republic of China (the “PRC”) whereby customers can pay to license content contributed by creative professionals. ZCool and its affiliates have been the exclusive distributor of Shutterstock content in China since 2014. The Company used the measurement alternative and the investment in ZCool was reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments. On March 27, 2024, ZCool was acquired by Meitu, and the Company’s Preferred Shares in ZCool were exchanged for $18.4 million of Meitu common shares, resulting in an investment carrying value increase of $3.4 million, which is recorded in Other income, net in the Consolidated Statement of Operations. Meitu’s primary business is the provision of online advertising and other internet value added services in the PRC, and its common shares are publicly traded on the Main Board of The Stock Exchange of Hong Kong Limited. This investment will be recorded at fair value on a recurring basis, with changes in fair value being recorded in Other income, net in the Consolidated Statement of Operations. Its fair value level hierarchy and amount at March 31, 2024 are as follows: As of March 31, 2024 Hierarchy Level: Fair Value Level 1 $ 18,755 Other Long-Term Investment As of March 31, 2024 and December 31, 2023, the Company also had a long-term investment in an equity security with no readily determinable fair value totaling $5.0 million. The Company uses the measurement alternative for fair value and the investment’s carrying value is reported at cost, adjusted for impairments or any observable price changes in ordinary transactions with identical or similar investments. Equity Contract In connection with its Data, Distribution, and Services business, as part of the consideration for a customer data deal sale, the Company received a forward contract (the “Equity Contract”) for the right to receive a variable number of equity shares for a fixed value from the customer. The Company estimated the value of the Equity Contract to be $11.8 million, which is included in the overall customer contract transaction price. In addition, the Equity Contract is recorded in Other Assets in the Consolidated Balance Sheet and will be carried at cost and evaluated for impairment at each reporting date.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions Backgrid On February 1, 2024, the Company completed its acquisition of all of the outstanding shares of Backgrid USA, Inc. and Backgrid London LTD, (collectively, “Backgrid”), for approximately $20 million, subject to customary working capital adjustments. The total purchase price was paid with existing cash on hand. In connection with the acquisition, the Company incurred approximately $1.5 million of transaction costs in total, which are included in general and administrative expenses on the Consolidated Statements of Operations. Backgrid supplies media organizations with real-time celebrity content. The Company believes this acquisition expands Shutterstock Editorial’s Newsroom offering of editorial images and footage across celebrity, red carpet and live-events. The identifiable intangible assets, trademark and developed technology, have useful lives of approximately 10 years and 5 years, respectively. The goodwill arising from the transaction is primarily attributable to expected operational synergies and is not deductible for income tax purposes. The Backgrid transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business has been included in the Company’s results of operations from the acquisition date. The fair value of consideration transferred in this business combination has been allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The identifiable intangible asset of this acquisition is being amortized on a straight-line basis. The fair value of the trademark and developed technology was determined using the excess earnings and relief-from-royalty methods. The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands): Assets acquired and liabilities assumed: Backgrid Cash and cash equivalents $ 1,718 Accounts receivable 732 Other assets 77 Intangible assets: Trade name 300 Developed technology 900 Intangible assets 1,200 Goodwill 19,843 Total assets acquired $ 23,570 Contributor royalties payable (849) Accrued expenses (1,302) Deferred tax liability (271) Total liabilities assumed (2,422) Net assets acquired $ 21,148 Giphy, Inc. On May 22, 2023, the Company entered into a Stock Purchase Agreement with Meta Platforms, Inc. (“Meta”) dated May 22, 2023 (the “Purchase Agreement”). On June 23, 2023, the Company completed its acquisition of all of the outstanding shares of Giphy, Inc. (“Giphy”) from Meta. The consideration paid by the Company pursuant to the Purchase Agreement was $53 million in net cash, in addition to cash acquired, assumed debt and other working capital adjustments. The consideration was paid with existing cash on hand. Giphy is a New York-based company that operates a collection of GIFs and stickers that supplies casual conversational content. The Company believes its acquisition of Giphy extends Shutterstock’s audience touchpoints beyond primarily professional marketing and advertising use cases and expands into casual conversations. In January 2023, the United Kingdom Competition and Markets Authority (the “CMA”) issued its final order requiring Meta to divest its ownership of Giphy, which Meta acquired in 2020. In connection with the closing of the acquisition, whose terms were preapproved by the CMA, the Company and Meta entered into a transitional services agreement (the “TSA”) pursuant to which Meta is responsible for certain costs related to retention of Giphy employees, including (i) recurring salary, bonus, and benefits through August 2024, which would be $35.6 million if all employees are retained through August 2024, and (ii) nonrecurring items, totaling $87.9 million, comprised of one-time employment inducement bonuses and the cash value of unvested Meta equity awards (collectively, the “Giphy Retention Compensation”) and certain costs related to technology and integration expenses, totaling $30 million to be paid in $1.25 million monthly installments through May 2025. The Giphy Retention Compensation will be paid to the individuals for being employees of the Company subsequent to the completion of the acquisition. Accordingly, it was determined that the payments by the Company are for future service requirements and will be reflected as operating expenses, less any amounts earned by the employees prior to the acquisition, in the Company’s Statements of Operations as incurred. The Giphy Retention Compensation is reflected as a reduction of the purchase price and has been funded into an escrow account. The Giphy purchase price was calculated as follows: Purchase Price Purchase price $ 53,000 Cash acquired and other working capital adjustments 4,750 Cash paid on closing $ 57,750 Fair value of Giphy Retention Compensation contingent consideration 1 (98,723) Fair value of consideration attributable to pre-combination service 2 34,972 Net purchase price $ (6,001) 1 - This amount consists of $123.5 million of Giphy Retention Compensation, adjusted for $18.9 million of income tax obligations associated with the receipt of the Giphy Retention Compensation and $5.9 million for the time value of money. 2 - Relates to the cash value of replaced unvested Meta equity awards attributable to pre-combination services. Upon closing of the acquisition, the Company also entered into an agreement with Meta whereby the Company will provide Meta with access to Giphy content that is displayed through an API for a period of two years. The Company determined that the API arrangement represents a transaction separate from the business combination and was priced below market. Therefore, the Company allocated $30 million of the purchase price to these services, which represents the step-up to fair market value. This amount has been recognized in deferred revenue and will be recognized as revenue over-time as the API is provided. The identifiable intangible assets, which include developed technology and the trade name have weighted average useful lives of approximately 7 years and 15 years, respectively. The fair value of the developed technology was determined using the cost to recreate method, and the fair value of the trade name was determined using the relief-from-royalty method. The Giphy transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business has been included in the Company’s results of operations from the acquisition date. The fair value of consideration transferred in this business combination has been allocated to the intangible and tangible assets acquired and liabilities assumed at the acquisition date, with the excess of the fair value of the net assets acquired over the net consideration received recorded as a bargain purchase gain. The identifiable intangible assets of these acquisitions are being amortized on a straight-line basis. The aggregate purchase price for this acquisition has been allocated to the assets acquired and liabilities assumed as follows (in thousands): Assets acquired and liabilities assumed: Giphy Cash and cash equivalents $ 4,030 Prepaid expenses and other current assets 1,416 Right of use assets 1,243 Intangible assets: Trade name 21,000 Developed technology 19,500 Intangible assets 40,500 Deferred tax asset 1,463 Other assets 1,647 Total assets acquired $ 50,299 Accounts payable, accrued expenses and other liabilities (4,949) Lease liability (1,090) Total liabilities assumed (6,039) Net assets acquired $ 44,260 Net purchase price (6,001) Bargain purchase gain $ 50,261 1 - During the three months ended September 30, 2023, the Company revised its preliminary allocation of the Giphy purchase price to the assets acquired and liabilities assumed by $9.9 million associated with additional information analyzed related to the deferred income tax balances. The measurement and allocation of the purchase price is preliminary and will be finalized within the allowable measurement period once the Company finalizes its assessment of fair value of intangible assets, income tax balances and other assets acquired and liabilities assumed. 2 - During the three months ended December 31, 2023, the Company revised its preliminary allocation of the Giphy purchase price to the assets acquired and liabilities assumed by $1.6 million associated with additional information analyzed related to the valuation of the Developed Technology asset. The measurement and allocation of the purchase price is preliminary and will be finalized within the allowable measurement period once the Company finalizes its assessment of fair value of intangible assets, income tax balances and other assets acquired and liabilities assumed. The Company recognized a non-taxable bargain purchase gain of $50.3 million, representing the excess of the fair value of the net assets acquired in addition to the net consideration to be received from Meta. The bargain purchase gain is the result of the CMA’s regulatory order requiring Meta’s divestiture of Giphy and the Giphy Retention Compensation payments. In connection with the acquisition, the Company incurred approximately $3.0 million of transaction costs, which are included in general and administrative expenses on the Consolidated Statements of Operations. As of March 31, 2024, Shutterstock’s receivable of $65.5 million, is against an escrow fully funded by Meta. $48.7 million and $16.8 million are included within Prepaid expenses and other current assets and Other assets, respectively, on the Consolidated Balance Sheet. Pro-Forma Financial Information (unaudited) The following unaudited pro forma consolidated financial information (in thousands) reflects the results of operations of the Company for the three months ended March 31, 2024 and 2023, respectively, as if the Backgrid acquisition had been completed on January 1, 2023, and as if the the Giphy acquisition had been completed on January 1, 2022, after giving effect to certain purchase accounting adjustments, primarily related to Giphy Retention Compensation - non-recurring, intangible assets and transaction costs. These pro forma results have been prepared for comparative purposes only and are based on estimates and assumptions that have been made solely for purposes of developing such pro forma information 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 March 31, 2024 2023 Revenue As Reported $ 214,315 $ 215,280 Pro Forma 215,259 224,066 Income before income taxes As Reported $ 20,390 $ 41,414 Pro Forma 23,030 28,764

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment is summarized as follows (in thousands): As of March 31, 2024 As of December 31, 2023 Computer equipment and software $ 317,244 $ 308,473 Furniture and fixtures 10,823 10,829 Leasehold improvements 19,316 19,153 Property and equipment 347,383 338,455 Less accumulated depreciation (283,953) (274,155) Property and equipment, net $ 63,430 $ 64,300 Depreciation and amortization expense related to property and equipment was $10.3 million and $9.1 million for the three months ended March 31, 2024 and 2023, respectively. Of these amounts, $9.9 million and $8.7 million are included in cost of revenue for the three months ended March 31, 2024 and 2023, respectively, and $0.4 million and $0.5 million are included in general and administrative expense for the three months ended March 31, 2024 and 2023, respectively. Depreciation and amortization expense is included in cost of revenue and general and administrative expense in the Consolidated Statements 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 $9.0 million and $10.3 million for the three months ended March 31, 2024 and 2023, 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 $9.6 million and $8.4 million for the three months ended March 31, 2024 and 2023, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue in the Consolidated Statements of Operations. As of March 31, 2024 and December 31, 2023, the Company had capitalized internal-use software of $59.6 million and $60.3 million, respectively, net of accumulated depreciation, which was included in property and equipment, net.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
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 three months ended March 31, 2024. The following table summarizes the changes in the carrying value of the Company’s goodwill balance during the three months ended March 31, 2024 (in thousands): Goodwill Balance as of December 31, 2023 $ 383,325 Goodwill related to acquisitions $ 19,843 Foreign currency translation adjustment (381) Balance as of March 31, 2024 $ 402,787 Intangible Assets Intangible assets, all of which are subject to amortization, consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 As of December 31, 2023 Gross Accumulated Net Weighted Gross Accumulated Net Amortizing intangible assets: Customer relationships $ 89,832 $ (28,664) $ 61,168 12 $ 90,350 $ (26,982) $ 63,368 Trade name 38,142 (9,855) 28,287 12 37,937 (9,272) 28,665 Developed technology 116,354 (67,737) 48,617 5 115,914 (61,376) 54,538 Contributor content 66,590 (29,884) 36,706 8 65,628 (27,897) 37,731 Patents 259 (169) 90 18 259 (165) 94 Total $ 311,177 $ (136,309) $ 174,868 $ 310,088 $ (125,692) $ 184,396 Amortization expense was $11.0 million and $9.8 million for the three months ended March 31, 2024 and 2023, respectively. Of these amounts, $10.0 million and $9.2 million are included in cost of revenue for the three months ended March 31, 2024 and 2023, respectively, and $1.0 million and $0.6 million are included in general and administrative expense for the three months ended March 31, 2024 and 2023, respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $27.0 million for the remaining nine months of 2024, $27.5 million in 2025, $25.2 million in 2026, $19.0 million in 2027, $16.5 million in 2028, $15.3 million in 2029 and $44.3 million thereafter.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following (in thousands): As of March 31, 2024 As of December 31, 2023 Compensation $ 44,268 $ 75,752 Non-income taxes 24,175 23,702 Website hosting and marketing fees 11,222 11,804 Other expenses 19,547 20,185 Total accrued expenses $ 99,212 $ 131,443

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt On May 6, 2022, the Company entered into a five-year $100 million unsecured revolving loan facility (the “Credit Facility”) with Bank of America, N.A., as Administrative Agent and other lenders. The Credit Facility includes a letter of credit sub-facility and a swingline facility and it also permits, subject to the satisfaction of certain conditions, up to $100 million of additional revolving loan commitments with the consent of the Administrative Agent. At the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.125% to 0.500%, determined based on the Company’s consolidated leverage ratio or (ii) the Term Secured Overnight Financing Rate (“SOFR”) (for interest periods of 1, 3 or 6 months) plus a margin ranging from 1.125% to 1.5%, determined based on the Company’s consolidated leverage ratio. The Company is also required to pay an unused commitment fee ranging from 0.150% to 0.225%, determined based on the Company’s consolidated leverage ratio. In connection with the execution of this agreement, the Company paid debt issuance costs of approximately $0.6 million. As of March 31, 2024 and December 31, 2023, the Company had $30 million of outstanding borrowings under the Credit Facility. As of March 31, 2024, the Company had a remaining borrowing capacity of $67 million, net of standby letters of credit. For the three months ended March 31, 2024, the Company recognized interest expense of $0.6 million.

Stockholders_ Equity and Equity

Stockholders’ Equity and Equity-Based Compensation	3 Months Ended
	Mar. 31, 2024
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 31,000 and 85,000 shares of common stock during the three months ended March 31, 2024 and 2023, respectively, related to the exercise of stock options and the vesting of Restricted Stock Units. Treasury Stock In June 2023, the Company’s Board of Directors approved a share repurchase program (the “2023 Share Repurchase Program”), providing authorization to repurchase up to $100 million of its common stock. 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 2023 Share Repurchase Program is subject to the Company having available cash to fund repurchases. Under the 2023 Share Repurchase Program, 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. As of March 31, 2024, the Company has repurchased approximately 4.4 million shares of common stock under the 2023 Share Repurchase Program at an average per-share cost of $51.74. During the three months ended March 31, 2024, the Company did not repurchase any shares of common stock. As of March 31, 2024, the Company had $71.8 million of remaining authorization for purchases under the 2023 Share Repurchase Program. Dividends The Company declared and paid cash dividends of $0.30 and $0.27 per share of common stock, or $10.7 million and $9.7 million during the three months ended March 31, 2024 and 2023, respectively. On April 22, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.30 per share of outstanding common stock payable on June 13, 2024 to stockholders of record at the close of business on May 30, 2024. 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 compensation awards, including employee Restricted Stock Units and Performance-based Restricted Stock Units (“PRSUs” and, collectively with Restricted Stock Units, “RSUs”) and stock options, based on the fair value of each award on the grant date. Awards granted prior to June 1, 2022 were granted under the Company’s Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”). At the Annual Meeting held on June 2, 2022, the Company’s stockholders approved the 2022 Omnibus Equity Incentive Plan (the “2022 Plan”). Awards granted subsequent to June 2, 2022 were granted under the 2022 Plan. 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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 224 $ 184 Sales and marketing 2,011 604 Product development 2,285 2,448 General and administrative 6,630 5,407 Total $ 11,150 $ 8,643 For the three months ended March 31, 2024 and 2023, substantially all of the Company’s non-cash equity-based compensation expense related to RSUs. Stock Option Awards During the three months ended March 31, 2024, no options to purchase shares of its common stock were granted. As of March 31, 2024, there were approximately 299,000 options vested and exercisable with a weighted average exercise price of $34.14. Restricted Stock Unit Awards During the three months ended March 31, 2024, the Company had RSU grants, net of forfeitures, of approximately 71,000. As of March 31, 2024, there are approximately 1,958,000 non-vested RSUs outstanding with a weighted average grant-date fair value of $66.45. As of March 31, 2024, the total unrecognized non-cash equity-based compensation expense related to the non-vested RSUs was approximately $64.6 million, which is expected to be recognized through 2028. During the three months ended March 31, 2024 and 2023, shares of common stock with an aggregate value of $1.0 million and $4.2 million were withheld upon vesting of RSUs and paid in connection with related remittance of employee withholding taxes to taxing authorities. On April 1, 2024, the Company granted approximately 1,422,000 RSUs with a grant date fair value of $61 million.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company distributes its products through two primary offerings: Content : The majority of the Company’s customers license image, video, music and 3D content for commercial purposes either directly through the Company’s self-service web properties or through the Company’s dedicated sales teams. Content customers have the flexibility to purchase subscription-based plans that are paid on a monthly or annual basis. Customers are also able 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. Certain content customers also have unique content, licensing and workflow needs. These customers communicate 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. Data, Distribution, and Services : The Company’s Data, Distribution, and Services offerings address customer demand for products and services that are beyond the stock image, footage music and 3D model licenses. These offerings include access to the Company’s metadata for machine learning and generative artificial intelligence model training and high-quality production and custom content at scale provided by Shutterstock Studios. The Company’s revenues by product offering for the three months ended March 31, 2024 and 2023 are as follows (in thousands): Three Months Ended March 31, 2024 2023 Content $ 173,830 $ 193,984 Data, Distribution, and Services 40,485 21,296 Total Revenue $ 214,315 $ 215,280

Other Income _ (Expense), net

Other Income / (Expense), net	3 Months Ended
	Mar. 31, 2024
Other Nonoperating Income (Expense) [Abstract]
Other Income / (Expense), net	Other Income, 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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Foreign currency (loss) / gain $ (592) $ 1,111 Interest expense (562) (231) Interest income, unrealized gain on investments, and other 4,798 165 Total other income $ 3,644 $ 1,045

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates were 20.9% and 20.7% for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, the net effect of discrete items increased the effective tax rate by 1.5%. Excluding these items, the Company’s effective tax rate would have been 19.4% for the three months ended March 31, 2024. For the three months ended March 31, 2023, the net effect of discrete items increased the effective tax rate by 0.9%. Excluding these items, the Company’s effective tax rate would have been 19.8% for the three months ended March 31, 2023. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, in the applicable period. During the three months ended March 31, 2024 and 2023, uncertain tax positions recorded by the Company were not material. 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 material for the three months ended March 31, 2024 and 2023.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2024
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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Net income $ 16,121 $ 32,843 Shares used to compute basic net income per share 35,591 35,856 Dilutive potential common shares Stock options 84 153 Unvested restricted stock awards 391 566 Shares used to compute diluted net income per share 36,066 36,575 Basic net income per share $ 0.45 $ 0.92 Diluted net income per share $ 0.45 $ 0.90 Dilutive shares included in the calculation 1,357 1,691 Anti-dilutive shares excluded from the calculation 665 176

Geographic Information

Geographic Information	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Geographic Information	Geographic Information The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended March 31, 2024 2023 North America $ 110,427 $ 99,140 Europe 55,400 59,034 Rest of the world 48,488 57,106 Total revenue $ 214,315 $ 215,280 The United States, included in North America in the above table, accounted for 49% and 43% of consolidated revenue for the three months ended March 31, 2024 and 2023, 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 March 31, As of December 31, 2024 2023 North America $ 45,509 $ 46,531 Europe 17,859 17,695 Rest of the world 62 74 Total long-lived tangible assets $ 63,430 $ 64,300 The United States, included in North America in the above table, accounted for 67% and 68% of total long-lived tangible assets as of March 31, 2024 and December 31, 2023, respectively. Ireland, included in Europe in the above table, accounted for 22% and 21% of total long-lived tangible assets as of March 31, 2024 and December 31, 2023, respectively. No other country accounts for more than 10% of the Company’s long-lived tangible assets in any period presented.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of March 31, 2024, the Company had total non-lease obligations in the amount of approximately $73.9 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of March 31, 2024, the Company’s non-lease obligations for the remainder of 2024 and for the years ending December 31, 2025, and 2026 were approximately $37.1 million, $32.1 million, and $4.6 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 occurrence 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 the modifications made by the customer, or the context in which an image is used. The standard maximum aggregate obligation and liability to any one customer for all claims is generally limited to ten thousand dollars The Company offers certain of its customers greater levels of indemnification, including unlimited indemnification and believes that it has appropriate insurance coverage in place to adequately cover indemnification claims, if necessary. As of and for the three months ended March 31, 2024, the Company made no material payments for losses on customer indemnification claims and recorded no liabilities related to indemnification for loss contingencies, before considering any insurance recoveries. 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	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Share Purchase Agreement On May 1, 2024, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) to acquire all of the outstanding shares (the “Acquisition”) of Envato Pty Ltd. (“Envato”). The consideration payable for the Acquisition, after customary working capital and other adjustments, will be approximately $245 million. The purchase price will be funded through a newly established credit facility. Envato is an Australian based company that provides an on-line marketplace for creative digital assets. The Company believes the Acquisition will expand its offerings across customers and products. The acquisition is anticipated to close in the third quarter, subject to regulatory approvals and other customary closing conditions. Commitment Letter On May 1, 2024, in connection with the execution of the Purchase Agreement, the Company entered into a commitment letter (the “Debt Commitment Letter”) with Bank of America, N.A., BofA Securities, Inc., Citibank, N.A., Wells Fargo Bank, N.A. and Citizens Bank, N.A. (collectively, the “Commitment Parties”). The Debt Commitment Letter provides that the Commitment Parties have agreed to provide the Company with debt financing in connection with the Acquisition comprised of (i) a senior unsecured term loan facility in an aggregate principal amount of $125.0 million and (ii) a senior unsecured revolving credit facility in an aggregate principal amount of $250.0 million. The funding of the debt financing pursuant to the Debt Commitment Letter is contingent on the satisfaction of certain conditions set forth therein, including negotiation and execution of the definitive debt financing agreement contemplated by the Debt Commitment Letter and the Acquisition being consummated substantially contemporaneously with the initial funding of the debt financing. The proceeds from the debt financing will be used by the Company: (i) to finance the consideration, and related transaction costs, due in connection with the Acquisition, (ii) to repay certain existing indebtedness and (iii) for general corporate purposes of the Company and its subsidiaries.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 16,121	$ 32,843

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Operations and Sig_2

Summary of Operations and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Unaudited Interim Financial Statements	The interim Consolidated Balance Sheet as of March 31, 2024, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three months ended March 31, 2024 and 2023, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 are unaudited. The Consolidated Balance Sheet as of December 31, 2023, 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 March 31, 2024, and its consolidated results of operations, comprehensive income, stockholders’ equity and cash flows for the three months ended March 31, 2024 and 2023. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 or for any other future annual or interim period.
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and 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 March 31, 2024 and December 31, 2023, the Company’s combined allowance for chargebacks and sales refunds was $0.4 million, which was included as a component of other current liabilities on the Consolidated Balance Sheets. Revenue Recognition A significant portion 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 also generates revenue from tools available through the Company’s platform. For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The standalone selling price is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information including internally approved pricing guidelines and pricing information of comparable products. The Company recognizes revenue upon the satisfaction of performance obligations. The Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded by a customer, at which time the license is provided. In addition, the Company estimates expected unused licenses for subscription-based products and recognizes the 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. For revenue associated with tools available through the Company’s platform, revenue is recognized on a straight-line basis over the subscription period. The Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less. Collectability is probable at the time the electronic order or contract is entered. A significant portion of the Company’s customers purchase products by making electronic payments with a credit card at the time of the 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.

Fair Value Measurement and Long

Fair Value Measurement and Long-term Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	Its fair value level hierarchy and amount at March 31, 2024 are as follows: As of March 31, 2024 Hierarchy Level: Fair Value Level 1 $ 18,755

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Schedule of Aggregate Purchase Price Allocation to Assets Acquired and Liabilities Assumed	The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands): Assets acquired and liabilities assumed: Backgrid Cash and cash equivalents $ 1,718 Accounts receivable 732 Other assets 77 Intangible assets: Trade name 300 Developed technology 900 Intangible assets 1,200 Goodwill 19,843 Total assets acquired $ 23,570 Contributor royalties payable (849) Accrued expenses (1,302) Deferred tax liability (271) Total liabilities assumed (2,422) Net assets acquired $ 21,148 The aggregate purchase price for this acquisition has been allocated to the assets acquired and liabilities assumed as follows (in thousands): Assets acquired and liabilities assumed: Giphy Cash and cash equivalents $ 4,030 Prepaid expenses and other current assets 1,416 Right of use assets 1,243 Intangible assets: Trade name 21,000 Developed technology 19,500 Intangible assets 40,500 Deferred tax asset 1,463 Other assets 1,647 Total assets acquired $ 50,299 Accounts payable, accrued expenses and other liabilities (4,949) Lease liability (1,090) Total liabilities assumed (6,039) Net assets acquired $ 44,260 Net purchase price (6,001) Bargain purchase gain $ 50,261 1 - During the three months ended September 30, 2023, the Company revised its preliminary allocation of the Giphy purchase price to the assets acquired and liabilities assumed by $9.9 million associated with additional information analyzed related to the deferred income tax balances. The measurement and allocation of the purchase price is preliminary and will be finalized within the allowable measurement period once the Company finalizes its assessment of fair value of intangible assets, income tax balances and other assets acquired and liabilities assumed. 2 - During the three months ended December 31, 2023, the Company revised its preliminary allocation of the Giphy purchase price to the assets acquired and liabilities assumed by $1.6 million associated with additional information analyzed related to the valuation of the Developed Technology asset. The measurement and allocation of the purchase price is preliminary and will be finalized within the allowable measurement period once the Company finalizes its assessment of fair value of intangible assets, income tax balances and other assets acquired and liabilities assumed.
Schedule of Business Acquisitions by Acquisition, Contingent Consideration	The Giphy purchase price was calculated as follows: Purchase Price Purchase price $ 53,000 Cash acquired and other working capital adjustments 4,750 Cash paid on closing $ 57,750 Fair value of Giphy Retention Compensation contingent consideration 1 (98,723) Fair value of consideration attributable to pre-combination service 2 34,972 Net purchase price $ (6,001) 1 - This amount consists of $123.5 million of Giphy Retention Compensation, adjusted for $18.9 million of income tax obligations associated with the receipt of the Giphy Retention Compensation and $5.9 million for the time value of money. 2 - Relates to the cash value of replaced unvested Meta equity awards attributable to pre-combination services.
Business Acquisition, Pro Forma Information	These pro forma results have been prepared for comparative purposes only and are based on estimates and assumptions that have been made solely for purposes of developing such pro forma information 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 March 31, 2024 2023 Revenue As Reported $ 214,315 $ 215,280 Pro Forma 215,259 224,066 Income before income taxes As Reported $ 20,390 $ 41,414 Pro Forma 23,030 28,764

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment is summarized as follows (in thousands): As of March 31, 2024 As of December 31, 2023 Computer equipment and software $ 317,244 $ 308,473 Furniture and fixtures 10,823 10,829 Leasehold improvements 19,316 19,153 Property and equipment 347,383 338,455 Less accumulated depreciation (283,953) (274,155) Property and equipment, net $ 63,430 $ 64,300

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Goodwill	The following table summarizes the changes in the carrying value of the Company’s goodwill balance during the three months ended March 31, 2024 (in thousands): Goodwill Balance as of December 31, 2023 $ 383,325 Goodwill related to acquisitions $ 19,843 Foreign currency translation adjustment (381) Balance as of March 31, 2024 $ 402,787
Schedule of Intangible Assets	Intangible assets, all of which are subject to amortization, consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 As of December 31, 2023 Gross Accumulated Net Weighted Gross Accumulated Net Amortizing intangible assets: Customer relationships $ 89,832 $ (28,664) $ 61,168 12 $ 90,350 $ (26,982) $ 63,368 Trade name 38,142 (9,855) 28,287 12 37,937 (9,272) 28,665 Developed technology 116,354 (67,737) 48,617 5 115,914 (61,376) 54,538 Contributor content 66,590 (29,884) 36,706 8 65,628 (27,897) 37,731 Patents 259 (169) 90 18 259 (165) 94 Total $ 311,177 $ (136,309) $ 174,868 $ 310,088 $ (125,692) $ 184,396

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): As of March 31, 2024 As of December 31, 2023 Compensation $ 44,268 $ 75,752 Non-income taxes 24,175 23,702 Website hosting and marketing fees 11,222 11,804 Other expenses 19,547 20,185 Total accrued expenses $ 99,212 $ 131,443

Stockholders_ Equity and Equi_2

Stockholders’ Equity and Equity-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 224 $ 184 Sales and marketing 2,011 604 Product development 2,285 2,448 General and administrative 6,630 5,407 Total $ 11,150 $ 8,643

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The Company’s revenues by product offering for the three months ended March 31, 2024 and 2023 are as follows (in thousands): Three Months Ended March 31, 2024 2023 Content $ 173,830 $ 193,984 Data, Distribution, and Services 40,485 21,296 Total Revenue $ 214,315 $ 215,280

Other Income _ (Expense), net (

Other Income / (Expense), net (Tables)	3 Months Ended
	Mar. 31, 2024
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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Foreign currency (loss) / gain $ (592) $ 1,111 Interest expense (562) (231) Interest income, unrealized gain on investments, and other 4,798 165 Total other income $ 3,644 $ 1,045

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Net income $ 16,121 $ 32,843 Shares used to compute basic net income per share 35,591 35,856 Dilutive potential common shares Stock options 84 153 Unvested restricted stock awards 391 566 Shares used to compute diluted net income per share 36,066 36,575 Basic net income per share $ 0.45 $ 0.92 Diluted net income per share $ 0.45 $ 0.90 Dilutive shares included in the calculation 1,357 1,691 Anti-dilutive shares excluded from the calculation 665 176

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Geographic Revenue	The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended March 31, 2024 2023 North America $ 110,427 $ 99,140 Europe 55,400 59,034 Rest of the world 48,488 57,106 Total revenue $ 214,315 $ 215,280
Schedule of Long-lived Tangible Assets	The Company’s long-lived tangible assets were located as follows (in thousands): As of March 31, As of December 31, 2024 2023 North America $ 45,509 $ 46,531 Europe 17,859 17,695 Rest of the world 62 74 Total long-lived tangible assets $ 63,430 $ 64,300

Summary of Operations and Sig_3

Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Concentration Risk [Line Items]
Unbilled contracts receivable	$ 52,200
Bad debt expense (reversal)	(1,510)	$ 790
Allowance for doubtful accounts	4,873		$ 6,335
Allowance for credit loss	7,800		16,000
Chargeback and sales refund allowances	400		$ 400
Accounts Receivable
Concentration Risk [Line Items]
Unbilled contracts receivable	25,400
Other Assets
Concentration Risk [Line Items]
Unbilled contracts receivable	$ 26,800
Accounts Receivable | Customer Concentration Risk | One Customer
Concentration Risk [Line Items]
Concentration risk percentage	18%
Accounts Receivable | Customer Concentration Risk | Two Customers
Concentration Risk [Line Items]
Concentration risk percentage			29%

Fair Value Measurements and L_2

Fair Value Measurements and Long-term Investments (Details) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
	Mar. 27, 2024	Mar. 31, 2024	Dec. 31, 2018	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term investments		$ 5		$ 5
Equity contract, estimated value		$ 11.8
Meitu, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of hierarchy securities	$ 18.4
Equity securities, realized gain	$ 3.4
Variable Interest Entity, Not Primary Beneficiary | Zcool Network Technology Limited | Convertible Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment value			$ 15

Fair Value Measurements and L_3

Fair Value Measurements and Long-term Investments - Fair Value, Assets Measured on Recurring Basis (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of hierarchy securities	$ 18,755

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Feb. 01, 2024	Jun. 23, 2023	Mar. 31, 2024	Mar. 31, 2023
Business Acquisition [Line Items]
Net cash to acquire business			$ 19,474	$ 0
Total revenue			214,315	$ 215,280
Giphy, Inc.
Business Acquisition [Line Items]
Cash paid on closing		$ 57,750
Transaction costs		30,000
Net cash to acquire business		53,000
Nonrecurring benefits receivable		123,500
Expenses payment in installments		$ 1,250
Period of services provided		2 years
Revenue to be recognized		$ 30,000
Bargain purchase gain		50,261
Contingent consideration, asset			65,500
Contingent consideration, asset, current			48,700
Contingent consideration, asset, noncurrent			$ 16,800
Giphy, Inc. | General and administrative
Business Acquisition [Line Items]
Transaction costs		3,000
Giphy, Inc. | Mandated Payments Consideration - Recurring
Business Acquisition [Line Items]
Nonrecurring benefits receivable		35,600
Giphy, Inc. | Mandated Payments Consideration - Nonrecurring
Business Acquisition [Line Items]
Nonrecurring benefits receivable		$ 87,900
Giphy, Inc. | Developed technology
Business Acquisition [Line Items]
Estimated useful life		7 years
Giphy, Inc. | Trade name
Business Acquisition [Line Items]
Estimated useful life		15 years
Backgrid USA, Inc. and Backgrid London LTD
Business Acquisition [Line Items]
Cash paid on closing	$ 20,000
Transaction costs	$ 1,500
Backgrid USA, Inc. and Backgrid London LTD | Developed technology
Business Acquisition [Line Items]
Estimated useful life	5 years
Backgrid USA, Inc. and Backgrid London LTD | Trade name
Business Acquisition [Line Items]
Estimated useful life	10 years

Acquisitions - Schedule of Aggr

Acquisitions - Schedule of Aggregate Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		3 Months Ended
	Jun. 23, 2023	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2024	Feb. 01, 2024
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill		$ 383,325		$ 402,787
Backgrid USA, Inc. and Backgrid London LTD
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash and cash equivalents					$ 1,718
Accounts receivable					732
Other assets					77
Intangible assets					1,200
Goodwill					19,843
Total assets acquired					23,570
Contributor royalties payable					(849)
Accrued expenses					(1,302)
Deferred tax liability					(271)
Total liabilities assumed					(2,422)
Net assets acquired					21,148
Backgrid USA, Inc. and Backgrid London LTD | Trade name
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Intangible assets					300
Backgrid USA, Inc. and Backgrid London LTD | Developed technology
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Intangible assets					$ 900
Giphy, Inc.
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash and cash equivalents	$ 4,030
Other assets	1,647
Right of use assets	1,243
Prepaid expenses and other current assets	1,416
Intangible assets	40,500
Deferred tax asset	1,463
Total assets acquired	50,299
Accounts payable, accrued expenses and other liabilities	(4,949)
Lease liability	(1,090)
Total liabilities assumed	(6,039)
Net assets acquired	44,260
Net purchase price	(6,001)
Bargain purchase gain	50,261
Adjustment consideration		$ 1,600	$ 9,900
Giphy, Inc. | Trade name
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Intangible assets	21,000
Giphy, Inc. | Developed technology
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Intangible assets	$ 19,500

Acquisitions - Schedule of Busi

Acquisitions - Schedule of Business Acquisitions by Acquisition, Contingent Consideration (Details) - USD ($) $ in Thousands		3 Months Ended
	Jun. 23, 2023	Mar. 31, 2024	Mar. 31, 2023
Asset Acquisition, Contingent Consideration [Line Items]
Net cash to acquire business		$ 19,474	$ 0
Giphy, Inc.
Asset Acquisition, Contingent Consideration [Line Items]
Net cash to acquire business	$ 53,000
Cash acquired and other working capital adjustments	4,750
Cash paid on closing	57,750
Net purchase price	(6,001)
Nonrecurring benefits receivable	123,500
Income tax obligation	18,900
Time value of money	(5,900)
Fair value of Giphy Retention Compensation contingent consideration | Giphy, Inc.
Asset Acquisition, Contingent Consideration [Line Items]
Fair value consideration	(98,723)
Fair value of consideration attributable to pre-combination service | Giphy, Inc.
Asset Acquisition, Contingent Consideration [Line Items]
Fair value consideration	$ 34,972

Acquisitions - Business Acquisi

Acquisitions - Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue
As Reported	$ 214,315	$ 215,280
Pro Forma	215,259	224,066
Income before income taxes
As Reported	20,390	41,414
Pro Forma	$ 23,030	$ 28,764

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property and Equipment
Property and equipment	$ 347,383	$ 338,455
Less accumulated depreciation	(283,953)	(274,155)
Property and equipment, net	63,430	64,300
Computer equipment and software
Property and Equipment
Property and equipment	317,244	308,473
Furniture and fixtures
Property and Equipment
Property and equipment	10,823	10,829
Leasehold improvements
Property and Equipment
Property and equipment	$ 19,316	$ 19,153

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property and Equipment
Capitalized amount	$ 9	$ 10.3
Amortization expense	9.6	8.4
Internal use software	59.6		$ 60.3
Cost of revenue
Property and Equipment
Depreciation	9.9	8.7
Selling, General and Administrative Expenses
Property and Equipment
Depreciation	0.4	0.5
Property And Equipment
Property and Equipment
Depreciation	$ 10.3	$ 9.1

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 383,325
Goodwill related to acquisitions	19,843
Foreign currency translation adjustment	(381)
Balance at the end of the period	$ 402,787

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortizing intangible assets
Gross Carrying Amount	$ 311,177	$ 310,088
Accumulated Amortization	(136,309)	(125,692)
Net Carrying Amount	174,868	184,396
Customer relationships
Amortizing intangible assets
Gross Carrying Amount	89,832	90,350
Accumulated Amortization	(28,664)	(26,982)
Net Carrying Amount	$ 61,168	63,368
Weighted Average Life (Years)	12 years
Trade name
Amortizing intangible assets
Gross Carrying Amount	$ 38,142	37,937
Accumulated Amortization	(9,855)	(9,272)
Net Carrying Amount	$ 28,287	28,665
Weighted Average Life (Years)	12 years
Developed technology
Amortizing intangible assets
Gross Carrying Amount	$ 116,354	115,914
Accumulated Amortization	(67,737)	(61,376)
Net Carrying Amount	$ 48,617	54,538
Weighted Average Life (Years)	5 years
Contributor content
Amortizing intangible assets
Gross Carrying Amount	$ 66,590	65,628
Accumulated Amortization	(29,884)	(27,897)
Net Carrying Amount	$ 36,706	37,731
Weighted Average Life (Years)	8 years
Patents
Amortizing intangible assets
Gross Carrying Amount	$ 259	259
Accumulated Amortization	(169)	(165)
Net Carrying Amount	$ 90	$ 94
Weighted Average Life (Years)	18 years

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Amortizing intangible assets
Amortization expense	$ 11	$ 9.8
Remainder of 2024	27
2025	27.5
2026	25.2
2027	19
2028	16.5
2029	15.3
Thereafter	44.3
Cost of revenue
Amortizing intangible assets
Amortization expense	10	9.2
Selling, General and Administrative Expenses
Amortizing intangible assets
Amortization expense	$ 1	$ 0.6

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Compensation	$ 44,268	$ 75,752
Non-income taxes	24,175	23,702
Website hosting and marketing fees	11,222	11,804
Other expenses	19,547	20,185
Total accrued expenses	$ 99,212	$ 131,443

Accrued Expenses - Narrative (D

Accrued Expenses - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued severance costs	$ 1.8	$ 7.7

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		3 Months Ended
	May 06, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Line of Credit Facility [Line Items]
Interest expense		$ 562,000	$ 231,000
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Line of credit, term	5 years
Maximum borrowing capacity	$ 100,000,000
Available additional revolving loan commitments	100,000,000
Payment of debt issuance costs	$ 600,000
Line of credit		30,000,000		$ 30,000,000
Remaining borrowing capacity		67,000,000
Interest expense		$ 600,000
Revolving Credit Facility | Line of Credit | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.15%
Revolving Credit Facility | Line of Credit | Minimum | Base Rate
Line of Credit Facility [Line Items]
Variable rate, basis spread	0.125%
Revolving Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Variable rate, basis spread	1.125%
Revolving Credit Facility | Line of Credit | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.225%
Revolving Credit Facility | Line of Credit | Maximum | Base Rate
Line of Credit Facility [Line Items]
Variable rate, basis spread	0.50%
Revolving Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Variable rate, basis spread	1.50%

Stockholders_ Equity and Equi_3

Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($)			3 Months Ended
	Apr. 22, 2024	Apr. 01, 2024	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)			31,000	85,000
Value remaining for repurchase			$ 71,800,000
Payment of cash dividend (in dollars per share)			$ 0.30	$ 0.27
Cash dividend paid			$ 10,700,000	$ 9,700,000
Value of shares withheld			$ 7,966,000	11,008,000
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly cash dividend, declared (in dollars per share)	$ 0.30
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized purchase amount (up to)					$ 100,000,000
Repurchase of treasury shares (in shares)			4,400,000
Shares repurchased, average per share cost (in dollars per share)			$ 51.74
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)			0
Options vested and exercisable (in shares)			299,000
Options vested and exercisable, weighted average exercise price (in dollars per share)			$ 34.14
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)			71,000
Nonvested shares outstanding (in shares)			1,958,000
Weighted average grant-date fair value (in dollars per share)			$ 66.45
Unrecognized non-cash equity-based compensation charge			$ 64,600,000
Value of shares withheld			$ 1,000,000	$ 4,200,000
Restricted Stock Units (RSUs) | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)		1,422,000
Fair value of shares granted		$ 61,000,000

Stockholders_ Equity and Equi_4

Stockholders’ Equity and Equity-Based Compensation - Summary of Non-cash Equity-based Compensation Expense Included in the Company's Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Non-cash equity-based compensation expense
Non-cash equity-based compensation	$ 11,150	$ 8,643
Cost of revenue
Non-cash equity-based compensation expense
Non-cash equity-based compensation	224	184
Sales and marketing
Non-cash equity-based compensation expense
Non-cash equity-based compensation	2,011	604
Product development
Non-cash equity-based compensation expense
Non-cash equity-based compensation	2,285	2,448
General and administrative
Non-cash equity-based compensation expense
Non-cash equity-based compensation	$ 6,630	$ 5,407

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) channel
Segment Reporting Information [Line Items]
Number of primary channels for content offerings | channel	2
Disposal group deferred revenue	$ 82.7
Revenue, remaining performance obligation, amount	$ 60.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Segment Reporting Information [Line Items]
Period of performance obligation recognition	5 years

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Deferred Revenue Arrangement [Line Items]
Total revenue	$ 214,315	$ 215,280
Content
Deferred Revenue Arrangement [Line Items]
Total revenue	173,830	193,984
Data, Distribution, and Services
Deferred Revenue Arrangement [Line Items]
Total revenue	$ 40,485	$ 21,296

Other Income _ (Expense), net_2

Other Income / (Expense), net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other Nonoperating Income (Expense) [Abstract]
Foreign currency (loss) / gain	$ (592)	$ 1,111
Interest expense	(562)	(231)
Interest income, unrealized gain on investments, and other	4,798	165
Total other income	$ 3,644	$ 1,045

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate, expense (benefit)	20.90%	20.70%
Effective income tax rate reconciliation, tax expense (benefit)	1.50%	0.90%
Effective tax rate, excluding discrete items	19.40%	19.80%
Cash paid (refunded) for income taxes	$ 2,901	$ (5,150)

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 16,121	$ 32,843
Shares used to compute basic net income per share (in shares)	35,591	35,856
Dilutive potential common shares
Stock options (in shares)	84	153
Unvested restricted stock awards (in shares)	391	566
Shares used to compute diluted net income per share (in shares)	36,066	36,575
Basic net income per share (in dollars per share)	$ 0.45	$ 0.92
Diluted net income per share (in dollars per share)	$ 0.45	$ 0.90
Dilutive securities included in the calculation (in shares)	1,357	1,691
Anti-dilutive securities excluded from the calculation (in shares)	665	176

Geographic Information - Schedu

Geographic Information - Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Total revenue	$ 214,315	$ 215,280
North America
Segment Reporting Information [Line Items]
Total revenue	110,427	99,140
Europe
Segment Reporting Information [Line Items]
Total revenue	55,400	59,034
Rest of the world
Segment Reporting Information [Line Items]
Total revenue	$ 48,488	$ 57,106

Geographic Information - Narrat

Geographic Information - Narrative (Details) - Geographic concentration	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
United States | Revenue benchmark
Product Information [Line Items]
Concentration risk percentage	49%	43%
United States | Total long-lived tangible assets
Product Information [Line Items]
Concentration risk percentage	67%		68%
IRELAND | Total long-lived tangible assets
Product Information [Line Items]
Concentration risk percentage	22%		21%

Geographic Information - Sche_2

Geographic Information - Schedule of Long-lived Tangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Geographic revenue based on customer location and long-lived tangible assets
Total long-lived tangible assets	$ 63,430	$ 64,300
North America
Geographic revenue based on customer location and long-lived tangible assets
Total long-lived tangible assets	45,509	46,531
Europe
Geographic revenue based on customer location and long-lived tangible assets
Total long-lived tangible assets	17,859	17,695
Rest of the world
Geographic revenue based on customer location and long-lived tangible assets
Total long-lived tangible assets	$ 62	$ 74

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	Mar. 31, 2024 USD ($)
Other Commitments [Line Items]
Other obligations	$ 73,900,000
Maturity of unconditional purchase obligations
Remainder of 2024	37,100,000
2025	32,100,000
2026	4,600,000
Indemnification Agreement
Indemnifications
Maximum possible loss per customer	10,000
Liabilities related to indemnification	$ 0

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Apr. 01, 2024	May 01, 2024	May 06, 2022
Revolving Credit Facility | Line of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 100,000,000
Subsequent Event | Senior Notes
Subsequent Event [Line Items]
Debt instrument, face amount		$ 125,000,000
Subsequent Event | Envato
Subsequent Event [Line Items]
Net purchase price	$ 245,000,000
Subsequent Event | Revolving Credit Facility | Line of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 250,000,000