Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 10, 2014 | |
Document And Entity Information Abstract | ' | ' |
Entity Registrant Name | 'RIGHTSIDE GROUP, LTD. | ' |
Entity Central Index Key | '0001589094 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 18,492,644 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $50,887 | $66,833 |
Accounts receivable | 19,378 | 9,176 |
Prepaid expenses and other current assets | 6,006 | 4,395 |
Deferred registration costs | 73,491 | 66,273 |
Total current assets | 149,762 | 146,677 |
Deferred registration costs, less current portion | 14,309 | 12,514 |
Property and equipment, net | 11,213 | 14,456 |
Intangible assets, net | 22,049 | 15,268 |
Goodwill | 103,042 | 103,042 |
Deferred tax assets | 8,076 | 6,314 |
Deposits for gTLD applications | 25,765 | 21,252 |
Other assets | 4,731 | 1,998 |
Total assets | 338,947 | 321,521 |
Current liabilities | ' | ' |
Accounts payable | 7,723 | 7,585 |
Accrued expenses and other current liabilities | 20,482 | 18,787 |
Debt | 1,125 | ' |
Deferred tax liabilities | 26,642 | 24,157 |
Deferred revenue | 92,486 | 80,999 |
Total current liabilities | 148,458 | 131,528 |
Deferred revenue, less current portion | 18,760 | 16,544 |
Credit facility | 24,573 | ' |
Other liabilities | 1,052 | 693 |
Total liabilities | 192,843 | 148,765 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity | ' | ' |
Shares issued and outstanding: 18,487 and 0 | 2 | ' |
Shares issued and outstanding: 0 and 0 | ' | ' |
Additional paid in capital | 140,426 | ' |
Accumulated other comprehensive income | ' | 577 |
Retained Earnings (Accumulated Deficit) | 5,676 | ' |
Parent company investment | ' | 172,179 |
Total stockholders' equity | 146,104 | 172,756 |
Total liabilities and stockholders' equity | $338,947 | $321,521 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 100,000 | 0 |
Common stock, shares issued | 18,487 | 18,487 |
Common stock, shares outstanding | 0 | 0 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $48,774 | $45,506 | $140,015 | $139,620 |
Service costs (Exclusive of amortization of intangible assets shown separately below) | 41,550 | 37,232 | 119,612 | 108,661 |
Sales and marketing | 2,239 | 2,426 | 7,210 | 7,790 |
Product development | 2,667 | 2,620 | 9,592 | 7,865 |
General and administrative | 5,690 | 6,590 | 17,869 | 18,639 |
Amortization of intangible assets | 1,931 | 1,877 | 5,530 | 6,093 |
Gain on other assets, net | -8,558 | -1,336 | -14,303 | -2,565 |
Interest expense | 701 | ' | 701 | ' |
Other expense (income), net | 65 | 25 | -1,232 | 44 |
Income (loss) before income taxes | 2,489 | -3,928 | -4,964 | -6,907 |
Income tax benefit | 1,608 | 1,366 | 1,650 | 1,930 |
Net income (loss) | $4,097 | ($2,562) | ($3,314) | ($4,977) |
Basic (in earnings per share) | $0.22 | ($0.14) | ($0.18) | ($0.27) |
Diluted (in earnings per share) | $0.22 | ($0.14) | ($0.18) | ($0.27) |
Weighted average shares outstanding, basic | 18,444 | 18,413 | 18,424 | 18,413 |
Weighted average shares outstanding, diluted | 18,488 | 18,413 | 18,424 | 18,413 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | $4,097 | ($2,562) | ($3,314) | ($4,977) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Realized gain on available for sale securities, net of tax expense of ($329) | ' | ' | -577 | ' |
Comprehensive income (loss) | $4,097 | ($2,562) | ($3,891) | ($4,977) |
Statements_of_Comprehensive_Lo
Statements of Comprehensive Loss (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ' |
Tax expense of realized gain on available for sale securities | $329 |
Statement_of_Equity
Statement of Equity (USD $) | Parent company investment | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total |
In Thousands | ||||||
Balance at the beginning of the period at Dec. 31, 2013 | $172,179 | ' | ' | ' | $577 | $172,756 |
Realized gain on available for sale securities | ' | ' | ' | ' | -577 | -577 |
Net loss prior to spin-off | -8,990 | ' | ' | ' | ' | -8,990 |
Net decrease in parent company investment | -28,045 | ' | ' | ' | ' | -28,045 |
Capitalization at spin-off | -135,144 | 2 | 135,142 | ' | ' | ' |
Capitalization at Spin-off (in shares) | ' | 18,413 | ' | ' | ' | ' |
Balance at the end of the period at Aug. 01, 2014 | ' | 2 | 135,142 | ' | ' | 135,144 |
Balance at the end of the period (in shares) at Aug. 01, 2014 | ' | 18,413 | ' | ' | ' | ' |
Stock option exercises and vesting of restricted stock units | ' | ' | 44 | ' | ' | 44 |
Stock option exercises and vesting of restricted stock units (in shares) | ' | 74 | ' | ' | ' | ' |
Stock warrants issued | ' | ' | 4,441 | ' | ' | 4,441 |
Stock-based compensation | ' | ' | 799 | ' | ' | 799 |
Net income after spin-off | ' | ' | ' | 5,676 | ' | 5,676 |
Balance at the end of the period at Sep. 30, 2014 | ' | $2 | $140,426 | $5,676 | ' | $146,104 |
Balance at the end of the period (in shares) at Sep. 30, 2014 | ' | 18,487 | ' | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net loss | ($3,314) | ($4,977) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 11,560 | 11,054 |
Amortization of Debt Discount (Premium) | 241 | ' |
Deferred income taxes | -1,670 | -1,936 |
Stockbbased compensation | 4,427 | 7,271 |
Gain on gTLD application withdrawals, net | -14,303 | -2,565 |
Gain on sale of marketable securities | -1,362 | ' |
Other | -342 | -760 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -914 | 1,093 |
Prepaid expenses and other current assets | -1,267 | -869 |
Deferred registration costs | -9,013 | -8,414 |
Deposits with registries | -13 | -400 |
Other longbterm assets | -1,830 | -1,606 |
Accounts payable | -715 | 1,759 |
Accrued expenses and other liabilities | 2,852 | -1,305 |
Deferred revenue | 13,702 | 10,196 |
Net cash (used in) provided by operating activities | -1,961 | 8,541 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -3,632 | -8,149 |
Purchases of intangible assets | -1,609 | -2,111 |
Payments and deposits for gTLD applications, net | -19,450 | -405 |
Proceeds from gTLD withdrawals, net | 10,339 | 2,876 |
Change in restricted cash | -345 | ' |
Proceeds from sale of marketable securities | 1,362 | ' |
Other | 341 | 784 |
Net cash used in investing activities | -12,994 | -7,005 |
Cash flows from financing activities | ' | ' |
Principal payments on capital lease obligations | -101 | -163 |
Proceeds from debt | 30,000 | ' |
Proceeds from stock options exercises | 44 | ' |
Issuance costs related to debt financings | -3,050 | ' |
Net (decrease) increase in parent company investment | -27,884 | 16,770 |
Net cash (used in) provided by financing activities | -991 | 16,607 |
Change in cash and cash equivalents | -15,946 | 18,143 |
Cash and cash equivalents, beginning of period | 66,833 | 40,593 |
Cash and cash equivalents, end of period | 50,887 | 58,736 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Warrants issued in connection with debt | 4,441 | ' |
Cash paid for interest | $432 | ' |
Company_Background_and_Basis_o
Company Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. Company Background, Separation from Demand Media and Basis of Presentation | |
In February 2013, Demand Media, Inc. (“Demand Media”) announced that its board of directors authorized Demand Media to pursue the separation of its business into two distinct publicly traded entities: a new company named Rightside Group, Ltd. (“Rightside,” the “Company,” “our,” “we,” or “us”) focused on domain name services, and Demand Media, a digital media company. On August 1, 2014, Demand Media consummated a tax free distribution of all of the outstanding shares of our common stock on a pro rata basis to Demand Media stockholders (the “separation” or the “spin‑off”) as of the record date. After the spin‑off, we began operating as an independent, publicly traded company. | |
We were incorporated on July 11, 2013, as a direct, wholly owned subsidiary of Demand Media, a New York Stock Exchange (“NYSE”) listed company that, prior to the spin-off, was a diversified digital media and domain name services company. Prior to our separation from Demand Media on August 1, 2014, Demand Media owned all of the outstanding shares of our capital stock. We have one class of common stock issued and outstanding, and no preferred stock outstanding. In connection with the spin‑off, Demand Media contributed or transferred certain of the subsidiaries and assets relating to Demand Media’s domain name services business to us, and we or our subsidiaries assumed all of the liabilities relating to Demand Media’s domain name services business. | |
We provide domain name registration and related value‑added service subscriptions to third parties through our wholly owned subsidiaries, eNom, Incorporated (“eNom”) and Name.com. We are also a significant participant in the substantial expansion of the number of available generic Top Level Domains (“gTLDs”) by the Internet Corporation for Assigned Names and Numbers (“ICANN”), with the first gTLDs delegated in October 2013 (the “New gTLD Program”). As part of the New gTLD Program, our domain name services business entered into its first registry operator agreements with ICANN, becoming an accredited registry for new gTLDs, and eNom and Name.com also entered into contracts necessary to participate in the New gTLD Program. We began to provide back‑end domain name registry and related services for gTLDs owned by third‑party domain name registries and we have operations for our own gTLDs. | |
Separation from Demand Media | |
Immediately prior to the separation, the authorized shares of Rightside capital stock were increased from 1,000 shares to 120.0 million shares, divided into the following classes: 100.0 million shares of common stock, par value $0.0001 per share, and 20.0 million shares of preferred stock, par value $0.0001 per share. The 1,000 shares of Rightside common stock, par value $0.0001 per share, that were previously issued and outstanding were automatically reclassified as and became 18.4 million shares of common stock, par value $0.0001 per share. The separation was effected by Demand Media through a tax-free dividend involving the distribution of all Rightside common stock held by Demand Media to Demand Media’s stockholders on August 1, 2014. | |
Upon effectiveness of the separation, holders of Demand Media common stock received one share of Rightside common stock for every five shares of Demand Media common stock they held on the record date. Following completion of the separation, Rightside became an independent, publicly traded company on the NASDAQ Global Select Market using the symbol: “NAME.” | |
As part of the separation, we entered into various agreements with Demand Media which provide for the allocation between Rightside and Demand Media of certain assets, liabilities, and obligations, and govern the relationship between Rightside and Demand Media after the separation. The agreements became effective as of August 1, 2014, and include the following: Separation and Distribution Agreement, Transition Services Agreement, Employee Matters Agreement and Tax Matters Agreement. | |
Basis of Presentation | |
After the separation on August 1, 2014, our financial statements are presented on a consolidated basis, as we became a separate consolidated group. Our balance sheet, statement of operations, statement of stockholders’ equity and statement of cash flows include the accounts of Rightside and our wholly-owned subsidiaries. These consolidated financial statements reflect our financial position, results of operations, statement of comprehensive income (loss), equity and cash flows as a separate company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | |
Prior to the separation on August 1, 2014, our financial statements were prepared on a condensed combined basis and presented as carve-out financial statements, as we were not a separate consolidated group. Our financial statements were derived from the financial statements and accounting records of Demand Media. | |
We have prepared the accompanying unaudited financial statements in accordance with GAAP for interim financial reporting. All intercompany accounts and transactions were eliminated in consolidation. In our opinion, we have included all adjustments necessary for a fair presentation. These adjustments consist of normal recurring items. We will refer to condensed combined and condensed consolidated financial statements as “financial statements,” “balance sheets,” “statement of operations,” “statement of cash flow” and “statement of stockholders’ equity” herein. | |
Prior to the separation on August 1, 2014, our financial statements assume the allocation to us of certain Demand Media corporate expenses relating to Rightside (refer to Note 13—Transactions with Related Parties and Parent Company Investment for further information). The accounting for income taxes is computed for our company on a separate tax return basis (refer to Note 9—Income Taxes for further information). | |
All significant intercompany accounts and transactions, other than those with Demand Media, have been eliminated in preparing the financial statements. All transactions between us and Demand Media have been included in these financial statements and are deemed to be settled. The total net effect of the settlement of these transactions is reflected in the statements of cash flow as a financing activity and in the combined balance sheets as “Parent company investment.” Parent company investment in the balance sheets represents Demand Media’s historical investment in our company, the net effect of cost allocations from transactions with Demand Media and our accumulated earnings. | |
Prior to the separation on August 1, 2014, the financial statements included expense allocations for certain: (1) corporate functions historically provided by Demand Media, including, but not limited to, finance, legal, information technology, human resources, communications, compliance, and other shared services; (2) employee benefits and incentives; and (3) stock‑based compensation. | |
These expenses have been allocated to us on a direct basis when identifiable, with the remainder allocated on a pro rata basis calculated as a percentage of our revenue, headcount or expenses to Demand Media’s consolidated results. We consider the basis on which these expenses were allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by us during the periods presented. The allocations do not, however, reflect the expense that we would have incurred as an independent company for the periods presented. Actual costs that may have been incurred if we had been a stand‑alone company would depend on a number of factors, including, but not limited to, the chosen organizational structure, the costs of being a stand‑alone publicly traded company, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. Following our separation from Demand Media, we will perform these functions using our own resources and purchased services. For an interim period, however, some of these functions will continue to be provided by Demand Media under a transition services agreement, which are planned to extend for a period up to 18 months. Costs incurred by Demand Media to complete the spin‑off were not allocated to us. | |
We have prepared the unaudited interim financial statements on the same basis as the audited financial statements and have included all adjustments, which include only normal recurring adjustments, necessary for the fair statement of our statement of financial position, results of operations, and cash flows. The results for the three and nine months ended September 30, 2014, are not necessarily indicative of the results expected for the full year. The balance sheet as of December 31, 2013, has been derived from our audited combined financial statements for the year ended December 31, 2013, included in our Form 10 as filed with the Securities and Exchange Commission (“SEC”) on July 14, 2014. | |
The interim unaudited financial statements have been prepared in accordance with GAAP. They do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited combined financial statements and notes thereto included in our Form 10 as filed with the SEC on July 14, 2014. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Refer to our audited combined financial statements included in our Form 10 as filed with the SEC on July 14, 2014, for a complete discussion of all significant accounting policies. | |
Recently Adopted Accounting Guidance | |
In February 2013, the FASB issued ASU 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income (ASU 2013-2), to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-2 requires presentation, either on the face of the financial statements or in the notes, of amounts reclassified out of accumulated other comprehensive income by component and by net income line item. ASU 2013-2 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. We adopted ASU 2013-2 in the first quarter of fiscal 2014. The adoption of ASU 2013-2 did not have a significant impact on our financial statements, but did require additional disclosures. | |
Recent Accounting Guidance Not Yet Adopted | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption is not permitted. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact that this updated standard will have on our financial statements and footnote disclosures. | |
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial statements. | |
In August 2014, the FASB issued ASU 2014-15 related to going concern. The new guidance explicitly requires that management assess an entity's ability to continue as a going concern and may require additional detailed disclosures. ASU 2014-15 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial statements. | |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Property and Equipment | ' | ||||||||||||
3. Property and Equipment | |||||||||||||
Property and equipment consisted of the following (in thousands): | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Computers and other related equipment | $ | 15,772 | $ | 19,180 | |||||||||
Purchased and internally developed software | 19,266 | 19,546 | |||||||||||
Furniture and fixtures | 906 | 775 | |||||||||||
Leasehold improvements | 1,329 | 1,278 | |||||||||||
Property and equipment, gross | 37,273 | 40,779 | |||||||||||
Less accumulated depreciation | -26,060 | -26,323 | |||||||||||
Property and equipment, net | $ | 11,213 | $ | 14,456 | |||||||||
Depreciation and software amortization expense, including the acceleration of depreciation, as a result of the shortening of the estimated useful lives for certain assets of $0.8 million in the first quarter of 2014, is shown by classification below (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 1,236 | $ | 1,341 | $ | 4,435 | $ | 3,984 | |||||
Sales and marketing | 8 | 23 | 43 | 76 | |||||||||
Product development | 28 | 41 | 110 | 133 | |||||||||
General and administrative | 417 | 284 | 1,442 | 768 | |||||||||
Total depreciation and amortization | $ | 1,689 | $ | 1,689 | $ | 6,030 | $ | 4,961 | |||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||||||
Intangible Assets | ' | ||||||||||||
4. Intangible Assets | |||||||||||||
Intangible assets consisted of the following (in thousands): | |||||||||||||
September 30, 2014 | |||||||||||||
Gross | |||||||||||||
carrying | Accumulated | ||||||||||||
amount | amortization | Net | |||||||||||
Owned website names | $ | 17,204 | $ | -11,271 | $ | 5,933 | |||||||
Customer relationships | 20,842 | -17,938 | 2,904 | ||||||||||
Technology | 7,954 | -7,907 | 47 | ||||||||||
Non-compete agreements | 207 | -71 | 136 | ||||||||||
Trade names | 5,468 | -2,086 | 3,382 | ||||||||||
gTLDs | 10,129 | -482 | 9,647 | ||||||||||
$ | 61,804 | $ | -39,755 | $ | 22,049 | ||||||||
December 31, 2013 | |||||||||||||
Gross | |||||||||||||
carrying | Accumulated | ||||||||||||
amount | amortization | Net | |||||||||||
Owned website names | $ | 18,580 | $ | -11,534 | $ | 7,046 | |||||||
Customer relationships | 20,976 | -17,119 | 3,857 | ||||||||||
Technology | 7,990 | -7,896 | 94 | ||||||||||
Non-compete agreements | 207 | -42 | 165 | ||||||||||
Trade names | 5,468 | -1,743 | 3,725 | ||||||||||
gTLDs | 381 | - | 381 | ||||||||||
$ | 53,602 | $ | -38,334 | $ | 15,268 | ||||||||
Identifiable finite‑lived intangible assets are amortized on a straight‑line basis over their estimated useful lives commencing on the date that the asset is available for its intended use. | |||||||||||||
Amortization expense by classification is shown below (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 1,498 | $ | 1,337 | $ | 4,221 | $ | 3,955 | |||||
Sales and marketing | 323 | 466 | 924 | 1,922 | |||||||||
Product development | 5 | 5 | 14 | 14 | |||||||||
General and administrative | 105 | 69 | 371 | 202 | |||||||||
Total amortization | $ | 1,931 | $ | 1,877 | $ | 5,530 | $ | 6,093 | |||||
Estimated future amortization expense related to intangible assets held at September 30, 2014 (in thousands): | |||||||||||||
Years Ending December 31, | Amount | ||||||||||||
2014 (October 1, 2014, to December 31, 2014) | $ | 1,883 | |||||||||||
2015 | 5,162 | ||||||||||||
2016 | 3,380 | ||||||||||||
2017 | 2,052 | ||||||||||||
2018 | 1,897 | ||||||||||||
Thereafter | 7,675 | ||||||||||||
Total | $ | 22,049 | |||||||||||
Other_Assets
Other Assets | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||
Other Assets | ' | ||||||
5. Other Assets | |||||||
Other long‑term assets and gTLD deposits consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Deposits for gTLD applications | $ | 25,765 | $ | 21,252 | |||
Other | 4,731 | 1,998 | |||||
Other assets | $ | 30,496 | $ | 23,250 | |||
We paid $19.5 million during the nine months ended September 30, 2014, and $3.9 million during the year ended December 31, 2013, for certain gTLD applications under the New gTLD Program. Payments for gTLD applications represent amounts paid directly to ICANN or third parties in the pursuit of gTLD operator rights, the majority of which was paid to Donuts Inc. as described in Note 8— Commitments and Contingencies. These deposits would be applied to the purchase of the gTLD if we are awarded the gTLD operator rights or these deposits may be returned to us if we withdraw our interest in the gTLD application. | |||||||
The net gain related to the withdrawals of our interest in certain gTLD applications was $8.6 million for the three months ended September 30, 2014, and $14.3 million for the nine months ended September 30, 2014. The net gain related to the withdrawals of our interest in certain gTLD applications was $1.3 million for the three months ended September 30, 2013, and $2.6 million for the nine month periods ended September 30, 2013. We recorded these gains in gain on other assets, net on the statements of operations. | |||||||
Other assets include $1.2 million as of September 30, 2014, and $0.9 million as of December 31, 2013, of restricted cash comprising a collateralized letter of credit connected with the SVB Credit Facility. Subsequent to September 30, 2014, the restriction was released and we reclassified the $1.2 million to cash and cash equivalents. . | |||||||
Other_Balance_Sheet_Items
Other Balance Sheet Items | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||
Other Balance Sheet Items | ' | ||||||
6. Other Balance Sheet Items | |||||||
Accounts receivable consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Accounts receivable—trade | $ | 6,377 | $ | 5,515 | |||
gTLD deposit receivable | 9,080 | - | |||||
Receivables from registries | 3,921 | 3,661 | |||||
Accounts receivable | $ | 19,378 | $ | 9,176 | |||
Based on the nature of our business transactions, we do not have an allowance for uncollectible receivables. | |||||||
Accrued expenses and other current liabilities consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Customer deposits | $ | 8,116 | $ | 7,065 | |||
Accrued payroll and related items | 2,980 | 3,052 | |||||
Commissions payable | 2,189 | 2,209 | |||||
Domain owners’ royalties payable | 1,262 | 1,193 | |||||
Other | 5,935 | 5,268 | |||||
Accrued expenses and other current liabilities | $ | 20,482 | $ | 18,787 | |||
Debt
Debt | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Line of Credit Facility [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
7. Debt | |||||||||||||
Silicon Valley Bank Credit Facility | |||||||||||||
In August 2014, we entered into a $30.0 million revolving credit facility (“SVB Credit Facility”) with Silicon Valley Bank (“SVB”). Under this facility we may repay and reborrow until the maturity date in August 2017. The SVB Credit Facility includes a letter of credit sub-limit of up to $15.0 million. | |||||||||||||
The SVB Credit Facility provides us with the option to select the annual interest rate on borrowings in an amount equal to: (1) a base rate determined by reference to the highest of: (a) the prime rate; (b) 0.50% per annum above the federal funds effective rate; and (c) the Eurodollar base rate for an interest period of one month plus 1.00%, plus a margin ranging from 1.00% to 1.50%, depending on our consolidated senior leverage ratio (as determined under the SVB Credit Facility), or (2) a Eurodollar base rate determined by reference to LIBOR for the interest period equivalent to such borrowing adjusted for certain reserve requirements, plus a margin ranging from 2.00% to 2.50%, depending on our consolidated senior leverage ratio (as determined under the SVB Credit Facility). | |||||||||||||
We pay fees on the portion of the facility that is not drawn. The unused fee is payable to SVB in arrears on a quarterly basis in an amount equal to 0.250% multiplied by the daily amount by which the aggregate commitments exceed the sum of the outstanding amount of loans and the outstanding amount of letter of credit obligations. | |||||||||||||
The SVB Credit Facility allows SVB to require mandatory prepayments of outstanding borrowings from amounts otherwise required to prepay term loans under the Tennenbaum Credit Facility. | |||||||||||||
The SVB Credit Facility contains customary representations and warranties, events of default and affirmative and negative covenants. This facility has financial covenants, including a requirement that we maintain a minimum consolidated fixed charge coverage ratio, a maximum consolidated senior leverage ratio, a maximum consolidated net leverage ratio, and minimum liquidity. As of September 30, 2014, we were in compliance with the covenants under the SVB Credit Facility. | |||||||||||||
We incurred $0.5 million in fees to establish this facility that we have capitalized on our balance sheet as deferred financing costs, which we will amortize on a straight-line basis into interest expense over the term of the SVB Credit Facility. As of September 30, 2014, we had letters of credit with a face amount of $11.0 million that were issued under the SVB Credit Facility. We have made no other borrowings under this facility. | |||||||||||||
Tennenbaum Credit Facility | |||||||||||||
In August 2014, we entered into a $30.0 million term loan credit facility with certain funds managed by Tennenbaum Capital Partners LLC (the “Tennenbaum Credit Facility”). Under this facility, interest is based on a rate per year equal to LIBOR plus 8.75%. Interest on the term loans is payable quarterly, beginning September 30, 2014. Quarterly principal payments of $375,000 on the term loan begin March 31, 2015. Once repaid, the term loans may not be reborrowed. All amounts outstanding under the facility are due and payable in full on the maturity date in August 2019. We may prepay any principal amount outstanding on the term loan plus a premium of 4.00% (if prepaid in the first year), 2.50% (second year), 1.00% (third year), and 0.00% thereafter, plus customary “breakage” costs with respect to LIBOR loans. | |||||||||||||
Under this facility we are subject to mandatory prepayments from 50% of excess cash flow, which is paid on the first of the following to occur: (1) maturity, termination or refinancing of the SVB Credit Facility or the acceleration and termination of the SVB Credit Facility, or (2) from the excess cash flow as of December 31, 2014, and each subsequent fiscal year thereafter. In addition, mandatory prepayments, to the extent not used to prepay loans and cash collateralize letters of credit and permanently reduce the commitments under the SVB Credit Facility, are required from certain asset sales and insurance and condemnation events, subject to customary reinvestment rights. Mandatory prepayments are also required from the issuances of certain indebtedness. These mandatory prepayments are subject to a prepayment premium that is the same as for voluntary prepayments. | |||||||||||||
The Tennenbaum Credit Facility contains financial covenants and customary representations and warranties, events of default and affirmative and negative covenants. As of September 30, 2014, we were in compliance with the covenants under the Tennenbaum Credit Facility. | |||||||||||||
In connection with the Tennenbaum Credit Facility, we issued warrants to purchase up to an aggregate of 997,710 shares of common stock. The warrants have an exercise price of $15.05 per share and will be exercisable in accordance with their terms at any time on or after February 6, 2015, through August 6, 2019. The warrants contain a “cashless exercise” feature that allows the warrant holders to exercise such warrants by surrendering a number of shares underlying the portion of the warrant being exercised with a fair market value equal to the aggregate exercise price payable to us. | |||||||||||||
We estimated the fair value of the warrants by using the Black-Scholes Option Pricing Method ("Black-Scholes"). Under the Black-Scholes approach our key assumptions included the following: stock price of $14.49, strike price of $15.05, volatility of 42.44%, risk-free rate of 1.67%, dividend yield of 0% and 5 year term. We used the resulting fair value to allocate the proceeds from the Tennenbaum Credit Facility between liability and equity. | |||||||||||||
Since the warrants are classified as equity, we allocated the proceeds from the debt and warrants using the relative fair value method. Under this method we allocated $4.4 million to the warrants which we recorded to equity, with the remaining portion assigned to the liability component. The excess of the principal amount of the credit facility over its carrying value of $25.6 million represents a note discount that we will amortize to interest expense over the term of the Tennenbaum Credit Facility. | |||||||||||||
We incurred $3.2 million in fees to establish the Tennenbaum Credit Facility that we have capitalized on our balance sheet as deferred financing costs, which we will amortize on an effective interest method into interest expense over the term of the SVB Credit Facility. | |||||||||||||
We estimated the fair value of the Tennenbaum Credit Facility using a discounted cash flow model with Level 3 inputs. Under this approach, we estimated the fair value to approximate its carrying value of $25.7 million as of September 30, 2014. | |||||||||||||
The following table presents our debt outstanding on the Tennenbaum Credit Facility (in thousands): | |||||||||||||
September 30, | |||||||||||||
2014 | |||||||||||||
Principal | 30,000 | ||||||||||||
Unamortized note discount | -4,302 | ||||||||||||
Carrying value | 25,698 | ||||||||||||
The following table presents the interest expense on the Tennenbaum Credit Facility (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Contractual interest expense | $ | 424 | $ | - | $ | 424 | $ | - | |||||
Amortization of issuance costs | 100 | - | 100 | - | |||||||||
Amortization of note discount | 138 | - | 138 | - | |||||||||
Total | $ | 662 | $ | - | $ | 662 | $ | - | |||||
Effective interest rate | 16.4 | % | - | % | 16.4 | % | - | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Leases | |
We conduct our operations utilizing leased office facilities in various locations and lease certain equipment under non‑cancelable operating and capital leases. Our leases expire between August 2015 and April 2019. In February 2014, we executed the First Amendment to Lease to obtain additional space for our headquarters in Kirkland, Washington and to extend the lease to April 2019. | |
Letters of Credit | |
We have issued letters of credit totaling $11.0 million under our SVB Credit Facility as of September 30, 2014. | |
Credit Facilities | |
In August 2014, we entered into the $30.0 million Tennenbaum Credit Facility, which matures in August 2019. The principal amount of the term loans is scheduled to be repaid in quarterly installments of $375,000 beginning March 31, 2015. Once repaid, term loans may not be reborrowed. All amounts outstanding under the facility are due and payable in full on the maturity date in August 2019. | |
Litigation | |
From time to time, we are party to various litigation matters incidental to the conduct of our business. There is no pending or threatened legal proceeding to which we are a party that, in our belief, is likely to have a material adverse effect on our future financial results. | |
Taxes | |
From time to time, various federal, state and other jurisdictional tax authorities undertake review of us and our filings. In evaluating the exposure associated with various tax filing positions, we accrue charges for possible exposures. We believe any adjustments that may ultimately be required as a result of any of these reviews will not be material to our financial statements. | |
Domain Name Agreement | |
On April 1, 2011, we entered into an agreement with a customer to provide domain name registration services and manage certain domain names owned and operated by the customer (the “Domain Agreement”). In December 2013, we amended the Domain Agreement (as amended, the “Amended Domain Agreement”). The term of the Amended Domain Agreement expires on December 31, 2014, but will automatically renew for an additional one‑year period unless terminated by either party. Pursuant to the Amended Domain Agreement, we are committed to purchase approximately $0.2 million of expired domain names every calendar quarter over the remaining term of the agreement. | |
Donuts Agreement | |
As part of our initiative to pursue the acquisition of gTLD operator rights, we have entered into a gTLD acquisition agreement (“gTLD Agreement”) with Donuts Inc. (“Donuts”). The gTLD Agreement provides us with rights to acquire the operating and economic rights to certain gTLDs. These rights are shared equally with Donuts and are associated with specific gTLDs (“Covered gTLDs”) for which Donuts is the applicant under the New gTLD Program. We have the right, but not the obligation, to make further deposits with Donuts in the pursuit of acquisitions of Covered gTLDs, for example as part of the ICANN auction process. The operating and economic rights for each Covered gTLD will be determined through a process whereby we and Donuts each select gTLDs from the pool of Covered gTLDs, with the number of selections available to each party based upon the proportion of the total acquisition price of all Covered gTLDs that they funded. Gains on sale of our interest in Covered gTLDs will be recognized when realized, while losses will be recognized when deemed probable. Separately, we entered into an agreement to provide certain back‑end registry services for gTLD operator rights owned by Donuts for a period of five years commencing from the launch of Donut’s first gTLD. Outside of the collaboration, we are not an investor in Donuts nor involved in any joint venture with Donuts or its affiliates. | |
Indemnifications Arrangements | |
In the normal course of business, we have made certain indemnities, commitments and guarantees under which we may be required to make payments in relation to certain transactions. Those indemnities include intellectual property indemnities to our customers, indemnities to our directors and officers to the maximum extent permitted under the laws of the State of Delaware and indemnities related to our lease agreements. In addition, our advertiser and distribution partner agreements contain certain indemnification provisions, which are generally consistent with those prevalent in our industry. We have not incurred significant obligations under indemnification provisions historically and do not expect to incur significant obligations in the future. Accordingly, we have not recorded any liability for these indemnities, commitments and guarantees in the balance sheets. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
9. Income Taxes | |
Our effective tax rate differs from the statutory rate primarily as a result of state taxes and nondeductible stock option expenses. The effective tax rate was (64.6%) for the three months ended September 30, 2014, and 33.2% for the nine months ended September 30, 2014, compared to 34.8% for the three months ended September 30, 2013, and 27.9% for the nine months ended September 30, 2013. | |
We recorded an income tax benefit of $1.6 million during the three months ended September 30, 2014, compared to an income tax benefit of $1.4 million during the same period in 2013. The increase was primarily due to increased book losses from our domestic operations during the period, which were not offset by books gains in our international operations. | |
We recorded an income tax benefit of $1.6 million during the nine months ended September 30, 2014, compared to an income tax benefit of $1.9 million during the same period in 2013, representing a decreased benefit of $0.3 million. The decreased benefit was primarily due to the reversal of deferred tax assets as a result of cancelled stock options in the 2014 periods as compared to the 2013 periods. | |
We are subject to the accounting guidance for uncertain income tax positions. We believe that our income tax positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material adverse effect on our financial condition, results of operations, or cash flow. | |
Our policy for recording interest and penalties associated with audits and uncertain tax positions is to record such items as a component of income tax expense, and amounts recognized to date are insignificant. No uncertain income tax positions were recorded during the three or nine months ended September 30, 2014 or 2013, and we do not expect our uncertain tax position to change materially during the next 12 months. We file a U.S. federal and many state tax returns as well as tax returns in multiple foreign jurisdictions. All tax years since our incorporation remain subject to examination by the Internal Revenue Service and various state authorities. | |
Employee_Benefit_Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
10. Employee Benefit Plan | |
We have a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) covering all our full‑time employees who meet certain eligibility requirements. Eligible employees may defer up to 90% of their pre‑tax eligible compensation, up to the annual maximum allowed by the Internal Revenue Service. Effective January 1, 2013, we began matching a portion of the employee contributions under the 401(k) Plan up to a defined maximum. Our contributions to the 401(k) Plan were $0.2 million, and $0.1 million for the three months ended September 30, 2014 and 2013, and $0.5 million and $0.4 million for the nine months ended September 30, 2014 and 2013. | |
Stock_based_Compensation_Expen
Stock based Compensation Expense | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock based Compensation Expense | ' | ||||||||||||
11. Stock‑based Compensation | |||||||||||||
Our stock-based award plan grants restricted stock, stock options, stock bonuses, stock appreciation rights, and restricted stock units (“RSUs”). | |||||||||||||
On August 1, 2014, as part of the spin-off and the resulting conversion of equity awards, we had 1.1 million RSUs and options outstanding. Stock option holders received one Rightside stock option for every five Demand Media stock options. Holders of RSUs received 1.71 Rightside RSUs for every five Demand Media RSUs. | |||||||||||||
In August 2014, we granted 0.4 million RSUs related to new employee, executive and board of director grants. The stock-based award information presented in this note has been updated to reflect the conversion of equity awards that occurred on August 1, 2014. | |||||||||||||
As of September 30, 2014, we had 2.6 million shares of common stock reserved for future grants under our equity plan. Our stock-based awards generally vest over four years and are subject to the employee’s continued employment with us. We also estimate forfeiture rates at the time of grants and revise the estimates in subsequent periods if actual forfeitures differ from our estimates. We record share-based compensation net of estimated forfeitures. | |||||||||||||
The following table summarizes the stock‑based compensation expense related to stock‑based awards that has been included in the following line items within the statements of operations for each of the periods presented (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 90 | $ | 117 | $ | 272 | $ | 341 | |||||
Sales and marketing | 149 | 421 | 992 | 1,253 | |||||||||
Product development | 202 | 389 | 781 | 869 | |||||||||
General and administrative | 715 | 1,577 | 2,381 | 4,808 | |||||||||
Total stock-based compensation expense | $ | 1,156 | $ | 2,504 | $ | 4,426 | $ | 7,271 | |||||
The following table presents our stock option activity for the nine months ended September 30, 2014, recast to reflect the conversion of five Demand Media stock options to one Rightside stock option on August 1, 2014 (in thousands, except for per share amounts and contractual term): | |||||||||||||
Shares | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||
Outstanding as of December 31, 2013 | 335 | $ | 15.42 | - | $ | 167 | |||||||
Exercised | -6 | 7.88 | - | ||||||||||
Outstanding as of September 30, 2014 | 329 | 15.55 | 4.56 | 157 | |||||||||
Exercisable as of September 30, 2014 | 329 | 15.55 | 4.56 | 157 | |||||||||
The following table presents a summary of restricted stock unit award activity for the nine months ended September 30, 2014, recast to reflect the conversion of five Demand Media RSUs to 1.71 Rightside RSUs (in thousands, except for per share amounts): | |||||||||||||
Shares | Weighted Average Share Value | ||||||||||||
Outstanding as of December 31, 2013 | 679 | $ | 24.54 | ||||||||||
Granted | 537 | 12.77 | |||||||||||
Vested | -106 | 23.68 | |||||||||||
Cancelled | -48 | 20.56 | |||||||||||
Outstanding as of September 30, 2014 | 1,062 | 18.82 | |||||||||||
As of September 30, 2014, we had $8.7 million of unrecognized stock-based compensation, net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.9 years. | |||||||||||||
Business_Segments
Business Segments | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Business Segments | ' | ||||||||||||
12. Business Segments | |||||||||||||
We operate in one operating segment. Our chief operating decision maker (“CODM”) manages our operations on a combined basis for purposes of evaluating financial performance and allocating resources. The CODM reviews separate revenue information for our domain name services and aftermarket services. All other financial information is reviewed by the CODM on a combined basis. Our operations are located in the United States, Ireland, Canada, Australia and Cayman Islands. Revenue generated outside of the United States is not material for any of the periods presented. | |||||||||||||
Revenue derived from our Domain name services and Aftermarket and other service offering is as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Domain name services | $ | 41,332 | $ | 36,034 | $ | 118,432 | $ | 104,366 | |||||
Aftermarket and other | 7,442 | 9,472 | 21,583 | 35,254 | |||||||||
Total revenue | $ | 48,774 | $ | 45,506 | $ | 140,015 | $ | 139,620 | |||||
Transactions_with_Related_Part
Transactions with Related Parties and Parent Company Investment | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Transactions with Related Parties and Parent Company Investment | ' | ||||||||||||
13. Transactions with Related Parties and Parent Company Investment | |||||||||||||
Prior to the separation on August 1, 2014, our financial statements included direct costs of Rightside incurred by Demand Media on our behalf and an allocation of certain general corporate costs incurred by Demand Media. Direct costs include finance, legal, human resources, technology development, and other services and have been determined based on a direct basis when identifiable, with the remainder allocated on a pro rata basis calculated as a percentage of our revenue, headcount or expenses to Demand Media’s consolidated results. General corporate costs include, but are not limited to, executive oversight, accounting, internal audit, treasury, tax, and legal. The allocations of general corporate costs are based primarily on estimated time incurred and/or activities associated with us. Management believes the allocations of corporate costs from Demand Media are reasonable. Costs incurred by Demand Media to complete the spin‑off have not been allocated to us. However, the financial statements may not include all of the costs that would have been incurred had we been a stand‑alone company during the periods presented and may not reflect our financial position, results of operations and cash flows had we been a stand‑alone company during the periods presented. | |||||||||||||
Prior to the separation on August 1, 2014, we recorded the following costs incurred and allocated by Demand Media in our statements of operations as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 899 | $ | 2,822 | $ | 6,231 | $ | 8,125 | |||||
Sales and marketing | 80 | 527 | 1,499 | 1,654 | |||||||||
Product development | 180 | 446 | 2,280 | 1,161 | |||||||||
General and administration | 1,758 | 5,189 | 11,500 | 15,079 | |||||||||
Total allocated expenses | $ | 2,917 | $ | 8,984 | $ | 21,510 | $ | 26,019 | |||||
The table above includes allocated stock‑based compensation of $0.1 million and $1.4 million for the three months ended September 30, 2014 and 2013, and $0.8 million and $4.4 million for the nine months ended September 30, 2014 and 2013, for the employees of Demand Media whose cost of services was partially allocated to us. | |||||||||||||
The table below presents the activity that comprises the decrease in parent company investment for the nine months ended September 30, 2014 (in thousands): | |||||||||||||
Nine months ended | |||||||||||||
30-Sep-14 | |||||||||||||
Cash transfer to Demand Media, net | $ | 45,735 | |||||||||||
Stock based compensation from equity awards | -809 | ||||||||||||
Allocated expenses, assets and liabilities, net | -16,881 | ||||||||||||
Net decrease in parent company investment | $ | 28,045 | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Fair Value Disclosures [Abstract] | ' | |||
Fair Value of Financial Instruments | ' | |||
14. Fair Value of Financial Instruments | ||||
Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. | ||||
· | Level 1—valuations for assets and liabilities traded in active exchange markets, or interest in open‑end mutual funds that allow a company to sell its ownership interest back at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities or funds. | |||
· | Level 2—valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and certain corporate obligations. Valuations are usually obtained from third‑party pricing services for identical or comparable assets or liabilities. | |||
· | Level 3—valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. | |||
In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider counterparty credit risk in our assessment of fair value. | ||||
We chose not to elect the fair value option for our financial assets and liabilities that had not been previously carried at fair value. Therefore, material financial assets and liabilities not carried at fair value, such as trade accounts receivable, trade payables and debt, are reported at their carrying values. | ||||
The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable, receivables from domain name registries, registry deposits, restricted cash, accounts payable, debt, accrued liabilities and customer deposits approximate fair value because of their short maturities. Our investments in marketable securities are recorded at fair value. Certain assets, including equity investments, investments held at cost, goodwill and intangible assets are also subject to measurement at fair value on a nonrecurring basis, if they are deemed to be impaired as the result of an impairment review. | ||||
The cost of marketable securities sold is based upon the specific identification method and any realized gains or losses on the sale of investments are reflected as a component of other income or expense. For the year ended December 31, 2013, unrealized gain on marketable securities was $0.9 million. During the first quarter 2013, we sold all of our marketable securities, resulting in a reclassification of $0.9 million of unrealized gain on marketable securities from accumulated other comprehensive income to other (expense) income, net. The sale of our marketable securities resulted in total realized gains of $1.4 million, which are included in other income (expense), net. | ||||
Earnings_loss_Per_Share
Earnings (loss) Per Share | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings (loss) per share | ' | ||||||||||||
15. Earnings (loss) per share | |||||||||||||
Basic and diluted earnings (loss) per share were calculated using the following (in thousands, except per share amounts): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net income (loss) | $ | 4,097 | $ | -2,562 | $ | -3,314 | $ | -4,977 | |||||
Weighted average number of shares outstanding: | |||||||||||||
Basic | 18,444 | 18,413 | 18,424 | 18,413 | |||||||||
Dilutive effect of stock-based equity awards | 44 | 0 | 0 | 0 | |||||||||
Dilutive effect of warrants | 0 | 0 | 0 | 0 | |||||||||
Diluted | 18,488 | 18,413 | 18,424 | 18,413 | |||||||||
Net income (loss) per share attributable to common stockholders | |||||||||||||
Basic | $ | 0.22 | $ | -0.14 | $ | -0.18 | $ | -0.27 | |||||
Diluted | $ | 0.22 | $ | -0.14 | $ | -0.18 | $ | -0.27 | |||||
On August 1, 2014, the 1,000 shares of Rightside common stock, par value $0.0001 per share, issued and outstanding immediately prior to the separation from Demand Media, Inc. were automatically reclassified as and became 18.4 million shares of common stock, par value $0.0001 per share. Basic and diluted earnings per share and the weighted average number of shares outstanding were retrospectively updated to reflect these transactions. | |||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
16. Subsequent Events | |
Namecheap Senior Unsecured Promissory Note Receivable | |
In October 2014, we entered into an agreement with Namecheap, Inc. (“Namecheap”), whereby Namecheap issued a Senior Unsecured Promissory Note (the “Note”) to us for $2.5 million that accrues interest at a rate determined in part by reference to the six-month LIBOR rate. Namecheap may use the proceeds from the Note for general corporate purposes. Once the Note has been repaid by Namecheap, no portion of the Note may be reborrowed. | |
The Note matures on December 31, 2014, and may be extended by Namecheap up to one additional year for a maturity date through December 31, 2015, if certain conditions are met. The Note is unsecured, but we shall have a first priority lien if Namecheap proposes to raise new secured debt in excess of an agreed minimum amount. The Note is guaranteed on a senior basis by each domestic subsidiary of Namecheap. | |
gTLD Application Withdrawal Gain | |
During October 2014 we recorded a gain on other assets of $7 million due to payments received in exchange for the withdrawals of our interest in certain gTLD applications. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recently Adopted Accounting Guidance | |
In February 2013, the FASB issued ASU 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income (ASU 2013-2), to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-2 requires presentation, either on the face of the financial statements or in the notes, of amounts reclassified out of accumulated other comprehensive income by component and by net income line item. ASU 2013-2 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. We adopted ASU 2013-2 in the first quarter of fiscal 2014. The adoption of ASU 2013-2 did not have a significant impact on our financial statements, but did require additional disclosures. | |
Recent Accounting Guidance Not Yet Adopted | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption is not permitted. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact that this updated standard will have on our financial statements and footnote disclosures. | |
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial statements. | |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Schedule of property and equipment | ' | ||||||||||||
Property and equipment consisted of the following (in thousands): | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Computers and other related equipment | $ | 15,772 | $ | 19,180 | |||||||||
Purchased and internally developed software | 19,266 | 19,546 | |||||||||||
Furniture and fixtures | 906 | 775 | |||||||||||
Leasehold improvements | 1,329 | 1,278 | |||||||||||
Property and equipment, gross | 37,273 | 40,779 | |||||||||||
Less accumulated depreciation | -26,060 | -26,323 | |||||||||||
Property and equipment, net | $ | 11,213 | $ | 14,456 | |||||||||
Depreciation expense and amortization expense by classification | ' | ||||||||||||
Depreciation and software amortization expense, including the acceleration of depreciation, as a result of the shortening of the estimated useful lives for certain assets of $0.8 million in the first quarter of 2014, is shown by classification below (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 1,236 | $ | 1,341 | $ | 4,435 | $ | 3,984 | |||||
Sales and marketing | 8 | 23 | 43 | 76 | |||||||||
Product development | 28 | 41 | 110 | 133 | |||||||||
General and administrative | 417 | 284 | 1,442 | 768 | |||||||||
Total depreciation and amortization | $ | 1,689 | $ | 1,689 | $ | 6,030 | $ | 4,961 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||||||
Schedule of intangible assets | ' | ||||||||||||
Intangible assets consisted of the following (in thousands): | |||||||||||||
September 30, 2014 | |||||||||||||
Gross | |||||||||||||
carrying | Accumulated | ||||||||||||
amount | amortization | Net | |||||||||||
Owned website names | $ | 17,204 | $ | -11,271 | $ | 5,933 | |||||||
Customer relationships | 20,842 | -17,938 | 2,904 | ||||||||||
Technology | 7,954 | -7,907 | 47 | ||||||||||
Non-compete agreements | 207 | -71 | 136 | ||||||||||
Trade names | 5,468 | -2,086 | 3,382 | ||||||||||
gTLDs | 10,129 | -482 | 9,647 | ||||||||||
$ | 61,804 | $ | -39,755 | $ | 22,049 | ||||||||
December 31, 2013 | |||||||||||||
Gross | |||||||||||||
carrying | Accumulated | ||||||||||||
amount | amortization | Net | |||||||||||
Owned website names | $ | 18,580 | $ | -11,534 | $ | 7,046 | |||||||
Customer relationships | 20,976 | -17,119 | 3,857 | ||||||||||
Technology | 7,990 | -7,896 | 94 | ||||||||||
Non-compete agreements | 207 | -42 | 165 | ||||||||||
Trade names | 5,468 | -1,743 | 3,725 | ||||||||||
gTLDs | 381 | - | 381 | ||||||||||
$ | 53,602 | $ | -38,334 | $ | 15,268 | ||||||||
Amortization expense by classification | ' | ||||||||||||
Amortization expense by classification is shown below (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 1,498 | $ | 1,337 | $ | 4,221 | $ | 3,955 | |||||
Sales and marketing | 323 | 466 | 924 | 1,922 | |||||||||
Product development | 5 | 5 | 14 | 14 | |||||||||
General and administrative | 105 | 69 | 371 | 202 | |||||||||
Total amortization | $ | 1,931 | $ | 1,877 | $ | 5,530 | $ | 6,093 | |||||
Estimated future amortization expense | ' | ||||||||||||
Estimated future amortization expense related to intangible assets held at September 30, 2014 (in thousands): | |||||||||||||
Years Ending December 31, | Amount | ||||||||||||
2014 (October 1, 2014, to December 31, 2014) | $ | 1,883 | |||||||||||
2015 | 5,162 | ||||||||||||
2016 | 3,380 | ||||||||||||
2017 | 2,052 | ||||||||||||
2018 | 1,897 | ||||||||||||
Thereafter | 7,675 | ||||||||||||
Total | $ | 22,049 | |||||||||||
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||
Schedule of other assets | ' | ||||||
Other long‑term assets and gTLD deposits consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Deposits for gTLD applications | $ | 25,765 | $ | 21,252 | |||
Other | 4,731 | 1,998 | |||||
Other assets | $ | 30,496 | $ | 23,250 | |||
Other_Balance_Sheet_Items_Tabl
Other Balance Sheet Items (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||
Schedule of accounts receivable | ' | ||||||
Accounts receivable consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Accounts receivable—trade | $ | 6,377 | $ | 5,515 | |||
gTLD deposit receivable | 9,080 | - | |||||
Receivables from registries | 3,921 | 3,661 | |||||
Accounts receivable | $ | 19,378 | $ | 9,176 | |||
Tabular disclosure of the components of accrued and other current liabilities. | ' | ||||||
Based on the nature of our business transactions, we do not have an allowance for uncollectible receivables. | |||||||
Accrued expenses and other current liabilities consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Customer deposits | $ | 8,116 | $ | 7,065 | |||
Accrued payroll and related items | 2,980 | 3,052 | |||||
Commissions payable | 2,189 | 2,209 | |||||
Domain owners’ royalties payable | 1,262 | 1,193 | |||||
Other | 5,935 | 5,268 | |||||
Accrued expenses and other current liabilities | $ | 20,482 | $ | 18,787 | |||
Debt_Tables
Debt (Tables) (Term loan credit facility, Tennebaum) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Term loan credit facility | Tennebaum | ' | ||||||||||||
Schedule of debt outstanding | ' | ||||||||||||
We estimated the fair value of the Tennenbaum Credit Facility using a discounted cash flow model with Level 3 inputs. Under this approach, we estimated the fair value to approximate its carrying value of $25.7 million as of September 30, 2014. | |||||||||||||
The following table presents our debt outstanding on the Tennenbaum Credit Facility (in thousands): | |||||||||||||
September 30, | |||||||||||||
2014 | |||||||||||||
Principal | 30,000 | ||||||||||||
Unamortized note discount | -4,302 | ||||||||||||
Carrying value | 25,698 | ||||||||||||
Schedule Of Interest Expense | ' | ||||||||||||
The following table presents the interest expense on the Tennenbaum Credit Facility (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Contractual interest expense | $ | 424 | $ | - | $ | 424 | $ | - | |||||
Amortization of issuance costs | 100 | - | 100 | - | |||||||||
Amortization of note discount | 138 | - | 138 | - | |||||||||
Total | $ | 662 | $ | - | $ | 662 | $ | - | |||||
Effective interest rate | 16.4 | % | - | % | 16.4 | % | - | ||||||
Stock_based_Compensation_Expen1
Stock based Compensation Expense (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of stock-based compensation expense related to all employee and non-employee stock-based awards | ' | ||||||||||||
The following table summarizes the stock‑based compensation expense related to stock‑based awards that has been included in the following line items within the statements of operations for each of the periods presented (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 90 | $ | 117 | $ | 272 | $ | 341 | |||||
Sales and marketing | 149 | 421 | 992 | 1,253 | |||||||||
Product development | 202 | 389 | 781 | 869 | |||||||||
General and administrative | 715 | 1,577 | 2,381 | 4,808 | |||||||||
Total stock-based compensation expense | $ | 1,156 | $ | 2,504 | $ | 4,426 | $ | 7,271 | |||||
Schedule of stock options activity | ' | ||||||||||||
The following table presents our stock option activity for the nine months ended September 30, 2014, recast to reflect the conversion of five Demand Media stock options to one Rightside stock option on August 1, 2014 (in thousands, except for per share amounts and contractual term): | |||||||||||||
Shares | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||
Outstanding as of December 31, 2013 | 335 | $ | 15.42 | - | $ | 167 | |||||||
Exercised | -6 | 7.88 | - | ||||||||||
Outstanding as of September 30, 2014 | 329 | 15.55 | 4.56 | 157 | |||||||||
Exercisable as of September 30, 2014 | 329 | 15.55 | 4.56 | 157 | |||||||||
Schedule of restricted stock unit awards activity | ' | ||||||||||||
The following table presents a summary of restricted stock unit award activity for the nine months ended September 30, 2014, recast to reflect the conversion of five Demand Media RSUs to 1.71 Rightside RSUs (in thousands, except for per share amounts): | |||||||||||||
Shares | Weighted Average Share Value | ||||||||||||
Outstanding as of December 31, 2013 | 679 | $ | 24.54 | ||||||||||
Granted | 537 | 12.77 | |||||||||||
Vested | -106 | 23.68 | |||||||||||
Cancelled | -48 | 20.56 | |||||||||||
Outstanding as of September 30, 2014 | 1,062 | 18.82 | |||||||||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of revenue derived from segments | ' | ||||||||||||
Revenue derived from our Domain name services and Aftermarket and other service offering is as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Domain name services | $ | 41,332 | $ | 36,034 | $ | 118,432 | $ | 104,366 | |||||
Aftermarket and other | 7,442 | 9,472 | 21,583 | 35,254 | |||||||||
Total revenue | $ | 48,774 | $ | 45,506 | $ | 140,015 | $ | 139,620 | |||||
Transactions_with_Related_Part1
Transactions with Related Parties and Parent Company Investment (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Schedule of costs incurred and allocated by Demand Media | ' | ||||||||||||
Prior to the separation on August 1, 2014, we recorded the following costs incurred and allocated by Demand Media in our statements of operations as follows (in thousands): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Service costs | $ | 899 | $ | 2,822 | $ | 6,231 | $ | 8,125 | |||||
Sales and marketing | 80 | 527 | 1,499 | 1,654 | |||||||||
Product development | 180 | 446 | 2,280 | 1,161 | |||||||||
General and administration | 1,758 | 5,189 | 11,500 | 15,079 | |||||||||
Total allocated expenses | $ | 2,917 | $ | 8,984 | $ | 21,510 | $ | 26,019 | |||||
Schedule of parent company investment activity | ' | ||||||||||||
The table below presents the activity that comprises the decrease in parent company investment for the nine months ended September 30, 2014 (in thousands): | |||||||||||||
Nine months ended | |||||||||||||
30-Sep-14 | |||||||||||||
Cash transfer to Demand Media, net | $ | 45,735 | |||||||||||
Stock based compensation from equity awards | -809 | ||||||||||||
Allocated expenses, assets and liabilities, net | -16,881 | ||||||||||||
Net decrease in parent company investment | $ | 28,045 | |||||||||||
Earnings_loss_Per_Share_Tables
Earnings (loss) Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of earnings (loss) per share | ' | ||||||||||||
Basic and diluted earnings (loss) per share were calculated using the following (in thousands, except per share amounts): | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net income (loss) | $ | 4,097 | $ | -2,562 | $ | -3,314 | $ | -4,977 | |||||
Weighted average number of shares outstanding: | |||||||||||||
Basic | 18,444 | 18,413 | 18,424 | 18,413 | |||||||||
Dilutive effect of stock-based equity awards | 44 | 0 | 0 | 0 | |||||||||
Dilutive effect of warrants | 0 | 0 | 0 | 0 | |||||||||
Diluted | 18,488 | 18,413 | 18,424 | 18,413 | |||||||||
Net income (loss) per share attributable to common stockholders | |||||||||||||
Basic | $ | 0.22 | $ | -0.14 | $ | -0.18 | $ | -0.27 | |||||
Diluted | $ | 0.22 | $ | -0.14 | $ | -0.18 | $ | -0.27 | |||||
Company_Background_and_Basis_o1
Company Background and Basis of Presentation (Details) (USD $) | 0 Months Ended | 9 Months Ended | ||||
Aug. 01, 2014 | Sep. 30, 2014 | Aug. 01, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2013 | |
item | item | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' | ' |
Number of publicly traded entities after spin-off | ' | ' | ' | ' | ' | 2 |
Number of classes of common stock | ' | 1 | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | 0 | ' | ' | 0 | ' |
Authorized capital stock (in shares) | ' | ' | 120,000,000 | ' | ' | ' |
Common stock shares authorized (in shares) | ' | 100,000 | 100,000,000 | ' | 0 | ' |
Common stock par value (in dollars per share) | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' |
Preferred stock authorized (in shares) | ' | 20,000 | 20,000,000 | ' | 0 | ' |
Preferred stock, par value (in dollars per share) | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' |
Shares issued | ' | 18,487 | 18,400,000 | 1,000 | 18,487 | ' |
Shares outstanding | ' | 0 | 18,400,000 | 1,000 | 0 | ' |
Separation conversion ratio - one share of Rightside common stock for every five shares of Demand Media | 0.2 | ' | ' | ' | ' | ' |
Duration of the transition services agreement | ' | '18 months | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | $37,273,000 | ' | ' | $37,273,000 | ' | $40,779,000 |
Less accumulated depreciation | -26,060,000 | ' | ' | -26,060,000 | ' | -26,323,000 |
Property and equipment, net | 11,213,000 | ' | ' | 11,213,000 | ' | 14,456,000 |
Accelerated Depreciation included in the depreciation and software amortization expense | ' | 800,000 | ' | ' | ' | ' |
Depreciation and amortization | 1,689,000 | ' | 1,689,000 | 6,030,000 | 4,961,000 | ' |
Service costs | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | 1,236,000 | ' | 1,341,000 | 4,435,000 | 3,984,000 | ' |
Sales and marketing | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | 8,000 | ' | 23,000 | 43,000 | 76,000 | ' |
Product development | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | 28,000 | ' | 41,000 | 110,000 | 133,000 | ' |
General and administrative | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | 417,000 | ' | 284,000 | 1,442,000 | 768,000 | ' |
Computers and other equipment | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | 15,772,000 | ' | ' | 15,772,000 | ' | 19,180,000 |
Purchased and internally developed software | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | 19,266,000 | ' | ' | 19,266,000 | ' | 19,546,000 |
Furniture and fixtures | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | 906,000 | ' | ' | 906,000 | ' | 775,000 |
Leasehold improvements | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | $1,329,000 | ' | ' | $1,329,000 | ' | $1,278,000 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | $61,804 | ' | $61,804 | ' | $53,602 |
Accumulated amortization | -39,755 | ' | -39,755 | ' | -38,334 |
Total | 22,049 | ' | 22,049 | ' | 15,268 |
Amortization of intangible assets | 1,931 | 1,877 | 5,530 | 6,093 | ' |
Owned website names | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 17,204 | ' | 17,204 | ' | 18,580 |
Accumulated amortization | -11,271 | ' | -11,271 | ' | -11,534 |
Total | 5,933 | ' | 5,933 | ' | 7,046 |
Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 20,842 | ' | 20,842 | ' | 20,976 |
Accumulated amortization | -17,938 | ' | -17,938 | ' | -17,119 |
Total | 2,904 | ' | 2,904 | ' | 3,857 |
Technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 7,954 | ' | 7,954 | ' | 7,990 |
Accumulated amortization | -7,907 | ' | -7,907 | ' | -7,896 |
Total | 47 | ' | 47 | ' | 94 |
Noncompete agreements | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 207 | ' | 207 | ' | 207 |
Accumulated amortization | -71 | ' | -71 | ' | -42 |
Total | 136 | ' | 136 | ' | 165 |
Trade names | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 5,468 | ' | 5,468 | ' | 5,468 |
Accumulated amortization | -2,086 | ' | -2,086 | ' | -1,743 |
Total | 3,382 | ' | 3,382 | ' | 3,725 |
gTLD deposit receivable | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 10,129 | ' | 10,129 | ' | 381 |
Accumulated amortization | -482 | ' | -482 | ' | ' |
Total | 9,647 | ' | 9,647 | ' | 381 |
Service costs | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization of intangible assets | 1,498 | 1,337 | 4,221 | 3,955 | ' |
Sales and marketing | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization of intangible assets | 323 | 466 | 924 | 1,922 | ' |
Product development | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization of intangible assets | 5 | 5 | 14 | 14 | ' |
General and administrative | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization of intangible assets | $105 | $69 | $371 | $202 | ' |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ' | ' |
2014 (October 1, 2014 to December 31, 2014) | $1,883 | ' |
2015 | 5,162 | ' |
2016 | 3,380 | ' |
2017 | 2,052 | ' |
2018 | 1,897 | ' |
Thereafter | 7,675 | ' |
Total | $22,049 | $15,268 |
Other_Assets_Details
Other Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Deposits for gTLD applications | $25,765 | $21,252 |
Other | 4,731 | 1,998 |
Other Assets | $30,496 | $23,250 |
Other_Assets_Details1
Other Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Payments made for gTLD applications | ' | ' | $19,500,000 | ' | $3,900,000 | ' |
Gain on gTLD application withdrawals, net | 8,558,000 | 1,336,000 | 14,303,000 | 2,565,000 | ' | ' |
Restricted cash and cash equivalents | 1,200,000 | ' | 1,200,000 | ' | 900,000 | ' |
Restricted cash restriction released | ' | ' | ' | ' | ' | $1,200,000 |
Other_Balance_Sheet_Items_Deta
Other Balance Sheet Items (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable | ' | ' |
Accounts receivable | $19,378 | $9,176 |
Accounts receivable - trade | ' | ' |
Accounts receivable | ' | ' |
Accounts receivable | 6,377 | 5,515 |
gTLD deposit receivable | ' | ' |
Accounts receivable | ' | ' |
Accounts receivable | 9,080 | ' |
Receivables from registries | ' | ' |
Accounts receivable | ' | ' |
Accounts receivable | $3,921 | $3,661 |
Other_Balance_Sheet_Items_Deta1
Other Balance Sheet Items (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Customer deposits | $8,116 | $7,065 |
Accrued payroll and related items | 2,980 | 3,052 |
Commissions payable | 2,189 | 2,209 |
Domain owners' royalties payable | 1,262 | 1,193 |
Other | 5,935 | 5,268 |
Accrued expenses and other current liabilities | $20,482 | $18,787 |
Debt_Details
Debt (Details) (USD $) | 1 Months Ended | 9 Months Ended |
Aug. 31, 2014 | Sep. 30, 2014 | |
Letter of credit subfacility | ' | ' |
Credit facilities disclosures | ' | ' |
Letters of credit issued | ' | $11,000,000 |
Silicon Valley Bank | Revolving credit facility | ' | ' |
Credit facilities disclosures | ' | ' |
Facility capacity | 30,000,000 | ' |
Unused borrowing capacity fee | 0.25 | ' |
Debt instrument fee | 500,000 | ' |
Silicon Valley Bank | Letter of credit subfacility | ' | ' |
Credit facilities disclosures | ' | ' |
Facility capacity | 15,000,000 | ' |
Letters of credit issued | ' | 11,000,000 |
Silicon Valley Bank | Federal Funds Effective Swap Rate | Revolving credit facility | ' | ' |
Credit facilities disclosures | ' | ' |
Margin | 0.50% | ' |
Silicon Valley Bank | Eurodollar | Revolving credit facility | ' | ' |
Credit facilities disclosures | ' | ' |
Percentage added to interest rate | 1.00% | ' |
Silicon Valley Bank | Eurodollar | Revolving credit facility | Minimum | ' | ' |
Credit facilities disclosures | ' | ' |
Margin | 1.00% | ' |
Silicon Valley Bank | Eurodollar | Revolving credit facility | Maximum | ' | ' |
Credit facilities disclosures | ' | ' |
Margin | 1.50% | ' |
Silicon Valley Bank | London Interbank Offered Rate (LIBOR) | Revolving credit facility | Minimum | ' | ' |
Credit facilities disclosures | ' | ' |
Margin | 2.00% | ' |
Silicon Valley Bank | London Interbank Offered Rate (LIBOR) | Revolving credit facility | Maximum | ' | ' |
Credit facilities disclosures | ' | ' |
Margin | 2.50% | ' |
Tennebaum | Term loan credit facility | ' | ' |
Credit facilities disclosures | ' | ' |
Term loan borrowing | 30,000,000 | ' |
Quarterly principal payment | ' | $375,000 |
Beginning date for required repayments | 31-Mar-15 | ' |
Percentage of excess cash flow used for mandatory prepayments | 50.00% | ' |
Tennebaum | Term loan credit facility | Prepaid in year one | ' | ' |
Credit facilities disclosures | ' | ' |
Premium on prepayment | ' | 4.00% |
Tennebaum | Term loan credit facility | Prepaid in year two | ' | ' |
Credit facilities disclosures | ' | ' |
Premium on prepayment | ' | 2.50% |
Tennebaum | Term loan credit facility | Prepaid in year three | ' | ' |
Credit facilities disclosures | ' | ' |
Premium on prepayment | ' | 1.00% |
Tennebaum | Term loan credit facility | Prepaid after year three | ' | ' |
Credit facilities disclosures | ' | ' |
Premium on prepayment | ' | 0.00% |
Tennebaum | London Interbank Offered Rate (LIBOR) | Term loan credit facility | ' | ' |
Credit facilities disclosures | ' | ' |
Margin | ' | 8.75% |
Debt_Details_2
Debt (Details 2) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Tennebaum Credit Facility warrants | Tennebaum Credit Facility warrants | Tennebaum Credit Facility warrants | Tennebaum Credit Facility warrants | Term loan credit facility | Tennebaum | Tennebaum | ||||
Maximum | Tennebaum Credit Facility warrants | Level 3 | Term loan credit facility | |||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase common stock (in shares) | ' | ' | ' | ' | ' | ' | 997,710 | ' | ' | ' |
Exercise price | ' | ' | ' | $15.05 | ' | ' | ' | ' | ' | ' |
Stock warrants issued | $4,441,000 | ' | $4,441,000 | ' | ' | ' | ' | ' | ' | ' |
Stock price | ' | ' | ' | $14.49 | ' | ' | ' | ' | ' | ' |
Strike price | ' | ' | ' | $15.05 | ' | ' | ' | ' | ' | ' |
Volatility | ' | ' | ' | 42.44% | ' | ' | ' | ' | ' | ' |
Risk free rate | ' | ' | ' | 1.67% | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Warrant equity component | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' |
Note discount that will be amortized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,302,000,000 |
Debt instrument fee | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' |
Long-term debt fair value | ' | ' | ' | ' | ' | ' | ' | ' | 25,700,000 | ' |
Principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000,000 |
Unamortized note discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,302,000,000 |
Carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,698,000,000 |
Interest Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual interest expense | ' | ' | ' | ' | 424,000 | 424,000 | ' | ' | ' | ' |
Amortization of issuance costs | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' | ' |
Accretion of note discount | ' | ' | ' | ' | 138,000 | 138,000 | ' | ' | ' | ' |
Total | ' | $701,000 | $701,000 | ' | $662,000 | $662,000 | ' | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | 16.40% | 16.40% | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 | Aug. 06, 2014 | Aug. 06, 2014 |
Letter of credit subfacility | Tennenbaum Capital Partners LLC | Tennenbaum Capital Partners LLC | |
Term loan | Term loan | ||
Leases and Letters of Credit | ' | ' | ' |
Letters of credit outstanding | $11,000,000 | ' | ' |
Debt instrument amount | ' | ' | 30,000,000 |
Debt Instrument, Periodic Payment | ' | $375,000 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 |
Domain Name Agreement | ' | ' |
Other Commitments [Line Items] | ' | ' |
Contract term | '1 year | ' |
Quarterly purchase obligation | ' | $0.20 |
Donuts Agreement | ' | ' |
Other Commitments [Line Items] | ' | ' |
Contract term | '5 years | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent | -64.60% | 34.80% | 33.20% | 27.90% |
Income Tax Expense (Benefit) | ($1,608,000) | ($1,366,000) | ($1,650,000) | ($1,930,000) |
Increase in income tax expense | ' | ' | -300,000 | ' |
Liability for uncertain tax positions | $0 | $0 | $0 | $0 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined contribution plan | ' | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | ' | ' | 90.00% | ' |
Demand Media 401k Plan | ' | ' | ' | ' |
Defined contribution plan | ' | ' | ' | ' |
Contributions | $0.20 | $0.10 | $0.50 | $0.40 |
Recovered_Sheet1
Stock Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Aug. 31, 2014 | Aug. 01, 2014 | Aug. 01, 2014 | Aug. 31, 2014 |
Service costs | Service costs | Service costs | Service costs | Sales and marketing | Sales and marketing | Sales and marketing | Sales and marketing | Product development | Product development | Product development | Product development | General and administrative | General and administrative | General and administrative | General and administrative | Equity Plan [Member] | Equity Plan [Member] | Equity Plan [Member] | Equity Plan [Member] | Equity Plan [Member] | |||||
Stock Option | Restricted stock units | Restricted stock units | |||||||||||||||||||||||
Stock-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units and options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' |
Option issued ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | ' | ' |
RSU's issued ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.342 | ' |
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 |
Common stock reserved for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' |
Shared based compensation vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,156 | $2,504 | $4,426 | $7,271 | $90 | $117 | $272 | $341 | $149 | $421 | $992 | $1,253 | $202 | $389 | $781 | $869 | $715 | $1,577 | $2,381 | $4,808 | ' | ' | ' | ' | ' |
Recovered_Sheet2
Stock Based Compensation Expense (Details 2) (Equity Plan [Member], USD $) | 9 Months Ended |
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | ' |
Unrecognized stock based compensation, net of forfeitures | $8,700,000 |
Nonvested awards period of recognition | '2 years 10 months 24 days |
Stock Option | ' |
Shares | ' |
Outstanding beginning balance | 335 |
Exercised | -6 |
Outstanding ending balance | 329 |
Exercisable | 329 |
Weighted Average Exercise Price | ' |
Weighted average exercise price outstanding beginning balance | $15.42 |
Weighted average exercise price exercised | $7.88 |
Weighted average exercise price outstanding ending balance | $15.55 |
Weighted average exercise price exercisable | $15.55 |
Additional Disclosures | ' |
Weighted average remaining contractual term outstanding | '4 years 6 months 22 days |
Weighted average remaining contractual term exercisable | '4 years 6 months 22 days |
Aggregate intrinsic value outstanding beginning of period | 167,000 |
Aggregate intrinsic value outstanding end of period | 157,000 |
Aggregate intrinsic value exercisable | $157,000 |
Restricted Stock Units (RSUs) [Member] | ' |
Non-option rollforward | ' |
Outstanding beginning balance | 679 |
Granted | 537 |
Vested | -106 |
Cancelled | -48 |
Outstanding ending balance | 1,062 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Weighted average share value outstanding beginning balance | $24.54 |
Weighted average share value granted | $12.77 |
Weighted average share value vested and released | $23.68 |
Weighted average share value cancelled | $20.56 |
Weighted average share value outstanding ending balance | $18.82 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
segment | ||||
Business Segments | ' | ' | ' | ' |
Number of Operating Segments | ' | ' | 1 | ' |
Total Revenue | $48,774 | $45,506 | $140,015 | $139,620 |
Domain name services | ' | ' | ' | ' |
Business Segments | ' | ' | ' | ' |
Total Revenue | 41,332 | 36,034 | 118,432 | 104,366 |
Aftermarket and other | ' | ' | ' | ' |
Business Segments | ' | ' | ' | ' |
Total Revenue | $7,442 | $9,472 | $21,583 | $35,254 |
Transactions_with_Related_Part2
Transactions with Related Parties and Parent Company Investment (Details) (USD $) | 7 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Aug. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | Demand Media | ||
Service costs | Service costs | Service costs | Service costs | Sales and marketing | Sales and marketing | Sales and marketing | Sales and marketing | Product development | Product development | Product development | Product development | General and administrative | General and administrative | General and administrative | General and administrative | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated expenses | ' | $2,917 | $8,984 | $21,510 | $26,019 | $899 | $2,822 | $6,231 | $8,125 | $80 | $527 | $1,499 | $1,654 | $180 | $446 | $2,280 | $1,161 | $1,758 | $5,189 | $11,500 | $15,079 |
Cash transfer to Demand Media, net | ' | ' | ' | 45,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated stock-based compensation expense | ' | 100 | 1,400 | -809 | 4,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated expenses, assets and liabilities not settled in cash, net. | ' | ' | ' | -16,881 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net decrease in parent company investment | ($28,045) | ' | ' | $28,045 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet3
Fair Value Of Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Unrealized gains on marketable securities | ' | ' | $0.90 |
Reclassification of unrealized gain on marketable securities | 0.9 | ' | ' |
Total realized gain on sale of marketable securities | ' | $1.40 | ' |
Earnings_loss_Per_Share_Detail
Earnings (loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 01, 2014 | Jul. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Net loss | $4,097 | ($2,562) | ($3,314) | ($4,977) | ' | ' | ' |
Weighted average number of shares outstanding | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding, basic | 18,444,000 | 18,413,000 | 18,424,000 | 18,413,000 | ' | ' | ' |
Dilutive effect of stock based equity awards | 44,000 | 0 | 0 | 0 | ' | ' | ' |
Dilutive effect of warrants | 0 | 0 | 0 | 0 | ' | ' | ' |
Weighted average shares outstanding, diluted | 18,488,000 | 18,413,000 | 18,424,000 | 18,413,000 | ' | ' | ' |
Net income (loss) per share attributable to common | ' | ' | ' | ' | ' | ' | ' |
Basic (in earnings per share) | $0.22 | ($0.14) | ($0.18) | ($0.27) | ' | ' | ' |
Diluted (in earnings per share) | $0.22 | ($0.14) | ($0.18) | ($0.27) | ' | ' | ' |
Shares issued | 18,487 | ' | 18,487 | ' | 18,400,000 | 1,000 | 18,487 |
Common stock par value (in dollars per share) | $0.00 | ' | $0.00 | ' | $0.00 | $0.00 | $0.00 |
Shares outstanding | 0 | ' | 0 | ' | 18,400,000 | 1,000 | 0 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | |
Subsequent Event | Subsequent Event | |||||
Namecheap | ||||||
Subsequent events | ' | ' | ' | ' | ' | ' |
Note receivable | ' | ' | ' | ' | ' | $2,500,000 |
Note receivable term extension | ' | ' | ' | ' | ' | '1 year |
Gain on gTLD application withdrawals, net | $8,558,000 | $1,336,000 | $14,303,000 | $2,565,000 | $7,000,000 | ' |