Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | RIGHTSIDE GROUP, LTD. | |
Entity Central Index Key | 1589094 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,758,158 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $45,902 | $49,743 |
Accounts receivable | 16,557 | 14,256 |
Prepaid expenses and other current assets | 5,842 | 6,898 |
Deferred registration costs | 76,993 | 73,289 |
Total current assets | 145,294 | 144,186 |
Deferred registration costs | 15,244 | 14,502 |
Property and equipment, net | 10,790 | 11,527 |
Intangible assets, net | 45,837 | 37,116 |
Goodwill | 103,042 | 103,042 |
Deferred tax assets | 10,426 | 9,483 |
gTLD deposits | 17,366 | 21,180 |
Other assets | 3,105 | 3,298 |
Total assets | 351,104 | 344,334 |
Current liabilities | ||
Accounts payable | 7,507 | 7,190 |
Accrued expenses and other current liabilities | 18,967 | 22,313 |
Debt | 1,500 | 1,500 |
Deferred tax liabilities | 27,886 | 27,886 |
Deferred revenue | 98,299 | 92,683 |
Total current liabilities | 154,159 | 151,572 |
Deferred revenue, less current portion | 20,179 | 19,195 |
Credit facility | 23,525 | 23,605 |
Other liabilities | 1,113 | 1,117 |
Total liabilities | 198,976 | 195,489 |
Stockholders' equity | ||
Common stock, $0.0001 per share Authorized shares: 100,000 and 0 Shares issued and outstanding: 18,753 and 18,661 | 2 | 2 |
Additional paid in capital | 143,116 | 141,709 |
Retained earnings | 9,010 | 7,134 |
Total stockholders' equity | 152,128 | 148,845 |
Total liabilities and stockholders' equity | $351,104 | $344,334 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, shares issued | 18,753,000 | 18,661,000 |
Common stock, shares outstanding | 18,753,000 | 18,661,000 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $50,531 | $44,552 |
Cost of revenue (excluding depreciation and amortization) | 38,957 | 34,646 |
Sales and marketing | 2,494 | 2,753 |
Technology and development | 5,115 | 5,673 |
General and administrative | 4,983 | 6,004 |
Depreciation and amortization | 3,986 | 4,226 |
Gain on other assets, net | -7,223 | -4,860 |
Interest expense | 1,244 | |
Other expense (income), net | 42 | -1,333 |
Loss before income taxes | 933 | -2,557 |
Income tax (benefit) expense | -943 | 1,364 |
Net loss | $1,876 | ($3,921) |
Net loss per share attributable to common stockholders - Basic (in earnings per share) | $0.10 | ($0.21) |
Net loss per share attributable to common stockholders - Diluted (in earnings per share) | $0.10 | ($0.21) |
Weighted average shares outstanding, basic | 18,705 | 18,413 |
Weighted average shares outstanding, diluted | 18,714 | 18,413 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $1,876 | ($3,921) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available-for-sale securities | -906 | |
Tax effect | 329 | |
Other comprehensive loss, net of tax | -577 | |
Comprehensive income (loss) | $1,876 | ($4,498) |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income (loss) | $1,876 | ($3,921) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 3,986 | 4,226 |
Amortization of Debt Discount (Premium) | 469 | |
Deferred income taxes | -943 | 1,406 |
Stockbbased compensation | 1,539 | 1,984 |
Gain on gTLD application withdrawals, net | -7,223 | -4,860 |
Gain on sale of marketable securities | -1,362 | |
Other | -84 | -154 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | -339 | -1,393 |
Prepaid expenses and other current assets | -122 | -346 |
Deferred registration costs | -4,446 | -6,425 |
Deposits with registries | -322 | 348 |
Other longbterm assets | -34 | -535 |
Accounts payable | 317 | 1,054 |
Accrued expenses and other liabilities | -2,397 | 340 |
Deferred revenue | 6,600 | 7,574 |
Net cash provided by operating activities | -1,123 | -2,064 |
Cash flows from investing activities | ||
Purchases of property and equipment | -895 | -2,761 |
Purchases of intangible assets | -478 | -667 |
Payments and deposits for gTLD applications | -8,081 | -400 |
Proceeds from gTLD withdrawals, net | 5,672 | 5,099 |
Proceeds from repayment of note receivable | 1,500 | |
Change in restricted cash | -345 | |
Proceeds from sale of marketable securities | 1,362 | |
Other | 125 | 154 |
Net cash used in investing activities | -2,157 | 2,442 |
Cash flows from financing activities | ||
Principal payments on capital lease obligations | -44 | |
Principal payments on debt | -375 | |
Proceeds from stock options exercises | 45 | |
Minimum tax withholding on restricted stock awards | -231 | |
Net (decrease) increase in parent company investment | 11,329 | |
Net cash (used in) provided by financing activities | -561 | 11,285 |
Change in cash and cash equivalents | -3,841 | 11,663 |
Cash and cash equivalents, beginning of period | 49,743 | 66,833 |
Cash and cash equivalents, end of period | 45,902 | 78,496 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $788 |
Company_Background_Separation_
Company Background, Separation from Demand Media and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Background, Separation from Demand Media and Basis of Presentation | 1. Company Background, Separation from Demand Media and Basis of Presentation |
In February 2013, Demand Media, Inc. (“Demand Media”), a New York Stock Exchange listed company, announced that it would pursue the separation of its business into two distinct publicly-traded companies: a new company named Rightside Group, Ltd. (together with its subsidiaries, “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 completed 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”) as of the record date. After the Separation, 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. Prior to the Separation, 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 Separation, Demand Media contributed or transferred certain of the subsidiaries and assets relating to its 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. We are also a participant in the expansion of 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”). We became an accredited registry for new gTLDs as part of the New gTLD Program. | |
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 consummated through a tax-free transaction 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. Upon 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. | |
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, and statement of cash flows include the accounts of Rightside and our wholly-owned subsidiaries. These 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 (“GAAP”). | |
Prior to the Separation on August 1, 2014 | |
Our financial statements were presented on a combined basis as carve-out financial statements, as we were not a separate consolidated company. Our financial statements were derived from the financial statements and accounting records of Demand Media. Our financial statements assume the allocation to us of certain Demand Media corporate expenses relating to Rightside (refer to Note 8—Transactions with Related Parties for further information). The accounting for income taxes was computed for our company on a separate tax return basis. | |
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 as of August 1, 2014. The total net effect of the settlement of these transactions was reflected in the statements of cash flow as a financing activity. | |
These 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 expense. These expenses were 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 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 the Separation, we are performing a majority of these functions using our own resources and purchased services. For an interim period, some of these functions 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 Separation were not allocated to us. | |
Interim Financial Statements | |
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 months ended March 31, 2015 and 2014, are not necessarily indicative of the results expected for the full year. | |
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. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Therefore, these financial statements should be read in conjunction with our audited financial statements and notes thereto included in our Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 23, 2015. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
Refer to our audited financial statements included in our Form 10-K as filed with the SEC on March 23, 2015, for a complete discussion of all significant accounting policies. | |
Recently Adopted Accounting Guidance | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014‑08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The new standard changes the requirements and disclosures for reporting discontinued operations. We are required to adopt this standard effective January 1, 2015, although early adoption is permitted. The adoption of this standard did not have an impact on our financial position or results of operations. | |
Recent Accounting Guidance Not Yet Adopted | |
In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard does not change the accounting for a customer’s accounting for service contracts. The new standard is effective for interim and annual reporting periods beginning after December 15, 2015. We are assessing the provisions of the new standard and have not determined the impact of the adoption of this standard on our financial statements. | |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset, consistent with debt discounts. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update is effective for fiscal years beginning after December 15, 2015, and required retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of March 31, 2015, and December 31, 2014, we had $2.4 million and $2.6 million of debt issuance costs that are classified as an Other Asset on our balance sheets. Under this new standard we would recognize these costs as a reduction of Debt when we adopt the new guidance on January 1, 2016. | |
In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) - Amendments to the Consolidation Analysis.” The new standard modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes reduce the number of consolidation models from four to two and place more emphasis on the risk of loss when determining a controlling financial interest. The new standard is effective for fiscal years beginning after December 15, 2015. We are in the process of evaluating the adoption of the new standard, but we do not expect it to have a material effect on our results of operations and financial condition. | |
In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The new standard eliminates the separate presentation of extraordinary items but does not change the requirement to disclose material items that are unusual or infrequent in nature. The new standard is effective for fiscal years beginning after December 15, 2015, as well as interim periods within those fiscal years. The new standard may be applied retrospectively to all prior periods presented in the financial statements, and early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We do not expect the adoption of the new standard will have a material impact on our financial statements. | |
In May 2014, the FASB issued ASU 2014‑09, “Revenue from Contracts with Customers (Topic 606).” The new standard provides new criteria for recognizing revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard requires expanded disclosures to provide greater insight into both revenue that has been recognized and revenue that is expected to be recognized in the future from existing contracts. Quantitative and qualitative information will be provided about the significant judgments and changes in those judgments that management made to determine the revenue that is recorded. The new standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are assessing the provisions of the new standard and have not determined the impact of the adoption of this standard guidance on our financial statements. | |
Reclassifications | |
Certain amounts previously presented for prior periods have been reclassified to conform to current presentation. We reclassified $1.0 million of current deferred revenue to accrued expenses and other current liabilities on our balance sheet as of December 31, 2014. This balance was settled in March 2015. | |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||
Intangible Assets | 3. Intangible Assets | ||||||||||||||||||
Intangible assets consisted of the following (in thousands): | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||
Gross | Gross | ||||||||||||||||||
carrying | Accumulated | carrying | Accumulated | ||||||||||||||||
amount | amortization | Net | amount | amortization | Net | ||||||||||||||
Owned website names | $ | 15,530 | $ | -10,918 | $ | 4,612 | $ | 16,581 | $ | -11,402 | $ | 5,179 | |||||||
Customer relationships | 20,842 | -18,581 | 2,261 | 20,842 | -18,258 | 2,584 | |||||||||||||
Technology | 7,954 | -7,920 | 34 | 7,954 | -7,915 | 39 | |||||||||||||
Non-compete agreements | 207 | -92 | 115 | 207 | -81 | 126 | |||||||||||||
Trade names | 5,476 | -2,230 | 3,246 | 5,477 | -2,151 | 3,326 | |||||||||||||
gTLDs | 37,394 | -1,825 | 35,569 | 26,909 | -1,047 | 25,862 | |||||||||||||
Total | $ | 87,403 | $ | -41,566 | $ | 45,837 | $ | 77,970 | $ | -40,854 | $ | 37,116 | |||||||
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 | |||||||||||||||||||
March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Cost of revenue | $ | 1,882 | $ | 1,344 | |||||||||||||||
Sales and marketing | 323 | 278 | |||||||||||||||||
Technology and development | 5 | 5 | |||||||||||||||||
General and administrative | 90 | 64 | |||||||||||||||||
Total amortization | $ | 2,300 | $ | 1,691 | |||||||||||||||
Estimated future amortization expense related to intangible assets held as of March 31, 2015 (in thousands): | |||||||||||||||||||
Years Ending December 31, | Amount | ||||||||||||||||||
2015 (April 1, 2015, to December 31, 2015) | $ | 6,238 | |||||||||||||||||
2016 | 6,224 | ||||||||||||||||||
2017 | 5,185 | ||||||||||||||||||
2018 | 4,463 | ||||||||||||||||||
2019 | 4,485 | ||||||||||||||||||
Thereafter | 19,242 | ||||||||||||||||||
Total | $ | 45,837 | |||||||||||||||||
gTLD_Deposits
gTLD Deposits | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||
gTLD Deposits | 4. gTLD Deposits | ||||||
gTLD deposits consisted of the following (in thousands): | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
gTLD deposits | $ | 17,366 | $ | 21,180 | |||
We paid $8.1 million during the three months ended March 31, 2015, and $32.0 million during the year ended December 31, 2014, 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. 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 $7.2 million and $4.9 million for the three months ended March 31, 2015 and 2014. We recorded these gains in gain on other assets, net on the statements of operations. | |||||||
Other_Balance_Sheet_Items
Other Balance Sheet Items | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Balance Sheet Related Disclosures [Abstract] | |||||||
Other Balance Sheet Items | 5. Other Balance Sheet Items | ||||||
Accounts receivable consisted of the following (in thousands): | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Accounts receivable—trade | $ | 6,212 | $ | 7,101 | |||
gTLD deposit receivable | 5,519 | 3,557 | |||||
Receivables from registries | 4,826 | 3,598 | |||||
Accounts receivable | $ | 16,557 | $ | 14,256 | |||
Prepaid expenses and other current assets consisted of the following (in thousands): | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Prepaid expenses | $ | 2,884 | $ | 2,799 | |||
Prepaid registry fees | 1,948 | 1,599 | |||||
Note receivable | 1,010 | 2,500 | |||||
Prepaid expenses and other current assets | $ | 5,842 | $ | 6,898 | |||
In October 2014, we entered into an agreement with Namecheap, Inc. (“Namecheap”), whereby Namecheap issued a Senior Unsecured Promissory Note (“Note receivable”) to us for $2.5 million. As of December 31, 2014, the outstanding balance on the Note receivable was $2.5 million. During the three months ended March 31, 2015, Namecheap made two principal payments totaling $1.5 million reducing the outstanding balance of the Note receivable to $1.0 million. | |||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes |
Our effective tax rate differs from the statutory rate primarily as a result of state taxes, nondeductible stock option expenses and international operations. The effective tax rate was (101%) for the three months ended March 31, 2015, compared to (53.4%) for the three months ended March 31, 2014. | |
We recorded an income tax benefit of $0.9 million during the three months ended March 31, 2015, compared to an income tax expense of $1.4 million during the same period in 2014. The increase was primarily due to increased book losses and decreased expired stock options during the period. | |
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 months ended March 31, 2015 or 2014, 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. | |
Business_Segments
Business Segments | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Business Segments | 7. 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 registrar services, registry services, and aftermarket and other 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 derived from our registrar services, registry services, and aftermarket and other service offerings are as follows (in thousands): | |||||||
Three months ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Registrar services | $ | 41,999 | $ | 37,532 | |||
Registry services | 1,605 | 42 | |||||
Aftermarket and other | 7,332 | 7,018 | |||||
Eliminations | -405 | -40 | |||||
Total revenue | $ | 50,531 | $ | 44,552 | |||
Beginning January 1, 2015, we started presenting our Registrar and Registry services revenue separately. These amounts were previously presented on a combined basis as Domain name services revenue. Amounts in the prior periods have been updated to reflect this presentation. The amounts in the eliminations line reflect the elimination of intercompany transactions between our registry and registrar businesses. | |||||||
Revenue by geographic location is as follows (in thousands): | |||||||
Three months ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
United States | $ | 36,612 | $ | 31,187 | |||
International | 13,919 | 13,365 | |||||
Total | $ | 50,531 | $ | 44,552 | |||
No international country represented more than 10% of total revenue in any period presented. | |||||||
Transactions_with_Related_Part
Transactions with Related Parties | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Related Party Transactions [Abstract] | ||||
Transactions with Related Parties | 8. Transactions with Related Parties | |||
Prior to the Separation, 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 Separation 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, we recorded the following costs incurred and allocated by Demand Media in our statements of operations as follows (in thousands): | ||||
Three months ended | ||||
March 31, | ||||
2014 | ||||
Cost of revenue | $ | 92 | ||
Sales and marketing | 896 | |||
Technology and development | 2,868 | |||
General and administration | 5,028 | |||
Depreciation and amortization | 1,052 | |||
Total allocated expenses | $ | 9,936 | ||
The table above includes allocated stock‑based compensation of $0.5 million for the three months ended March 31, 2014, for the employees of Demand Media whose cost of services was partially allocated to us. | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments | ||||||||||||
Our financial assets and liabilities measured at fair value as of March 31, 2015, and December 31, 2014, are summarized below (in thousands): | |||||||||||||
Fair Value Measurement Using | Assets at Fair | ||||||||||||
As of March 31, 2015 | Level 1 | Level 2 | Level 3 | Value | |||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 45,902 | $ | - | $ | - | $ | 45,902 | |||||
Note Receivable | 1,010 | 1,010 | |||||||||||
Liabilities: | |||||||||||||
Debt | $ | - | $ | - | $ | 25,025 | $ | 25,025 | |||||
Fair Value Measurement Using | Assets at Fair | ||||||||||||
As of December 31, 2014 | Level 1 | Level 2 | Level 3 | Value | |||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 49,743 | $ | - | $ | - | $ | 49,743 | |||||
Note Receivable | 2,500 | 2,500 | |||||||||||
Liabilities: | |||||||||||||
Debt | $ | - | $ | - | $ | 25,105 | $ | 25,105 | |||||
The following table presents a reconciliation of our note receivable at fair value using unobservable inputs (Level 3) as of March 31, 2015 (in thousands): | |||||||||||||
Balance as of December 31, 2014 | $ | 2,500 | |||||||||||
Issuance of note receivable | 10 | ||||||||||||
Repayments on note receivable | -1,500 | ||||||||||||
Balance as of March 31, 2015 | $ | 1,010 | |||||||||||
The following table presents a reconciliation of our debt measured at fair value using unobservable inputs (Level 3) as of March 31, 2015 (in thousands): | |||||||||||||
Balance as of December 31, 2014 | $ | 25,105 | |||||||||||
Amortization of discount on debt | 295 | ||||||||||||
Principal payments on debt | -375 | ||||||||||||
Balance as of March 31, 2015 | $ | 25,025 | |||||||||||
· | |||||||||||||
Earnings_loss_Per_Share
Earnings (loss) Per Share | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings (loss) per share | 10. 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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net income (loss) | $ | 1,876 | $ | -3,921 | |||
Weighted average number of shares outstanding: | |||||||
Basic | 18,705 | 18,413 | |||||
Dilutive effect of stock-based equity awards | 9 | - | |||||
Dilutive effect of warrants | - | - | |||||
Diluted | 18,714 | 18,413 | |||||
Net income (loss) per share attributable to common stockholders | |||||||
Basic | $ | 0.10 | $ | -0.21 | |||
Diluted | 0.10 | -0.21 | |||||
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 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. | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Guidance |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014‑08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The new standard changes the requirements and disclosures for reporting discontinued operations. We are required to adopt this standard effective January 1, 2015, although early adoption is permitted. The adoption of this standard did not have an impact on our financial position or results of operations. | |
Recent Accounting Guidance Not Yet Adopted | |
In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard does not change the accounting for a customer’s accounting for service contracts. The new standard is effective for interim and annual reporting periods beginning after December 15, 2015. We are assessing the provisions of the new standard and have not determined the impact of the adoption of this standard on our financial statements. | |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset, consistent with debt discounts. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update is effective for fiscal years beginning after December 15, 2015, and required retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of March 31, 2015, and December 31, 2014, we had $2.4 million and $2.6 million of debt issuance costs that are classified as an Other Asset on our balance sheets. Under this new standard we would recognize these costs as a reduction of Debt when we adopt the new guidance on January 1, 2016. | |
In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) - Amendments to the Consolidation Analysis.” The new standard modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes reduce the number of consolidation models from four to two and place more emphasis on the risk of loss when determining a controlling financial interest. The new standard is effective for fiscal years beginning after December 15, 2015. We are in the process of evaluating the adoption of the new standard, but we do not expect it to have a material effect on our results of operations and financial condition. | |
In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The new standard eliminates the separate presentation of extraordinary items but does not change the requirement to disclose material items that are unusual or infrequent in nature. The new standard is effective for fiscal years beginning after December 15, 2015, as well as interim periods within those fiscal years. The new standard may be applied retrospectively to all prior periods presented in the financial statements, and early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We do not expect the adoption of the new standard will have a material impact on our financial statements. | |
In May 2014, the FASB issued ASU 2014‑09, “Revenue from Contracts with Customers (Topic 606).” The new standard provides new criteria for recognizing revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard requires expanded disclosures to provide greater insight into both revenue that has been recognized and revenue that is expected to be recognized in the future from existing contracts. Quantitative and qualitative information will be provided about the significant judgments and changes in those judgments that management made to determine the revenue that is recorded. The new standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are assessing the provisions of the new standard and have not determined the impact of the adoption of this standard guidance on our financial statements. | |
Reclassifications | Reclassifications |
Certain amounts previously presented for prior periods have been reclassified to conform to current presentation. We reclassified $1.0 million of current deferred revenue to accrued expenses and other current liabilities on our balance sheet as of December 31, 2014. This balance was settled in March 2015 | |
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||
Schedule of intangible assets | Intangible assets consisted of the following (in thousands): | ||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||
Gross | Gross | ||||||||||||||||||
carrying | Accumulated | carrying | Accumulated | ||||||||||||||||
amount | amortization | Net | amount | amortization | Net | ||||||||||||||
Owned website names | $ | 15,530 | $ | -10,918 | $ | 4,612 | $ | 16,581 | $ | -11,402 | $ | 5,179 | |||||||
Customer relationships | 20,842 | -18,581 | 2,261 | 20,842 | -18,258 | 2,584 | |||||||||||||
Technology | 7,954 | -7,920 | 34 | 7,954 | -7,915 | 39 | |||||||||||||
Non-compete agreements | 207 | -92 | 115 | 207 | -81 | 126 | |||||||||||||
Trade names | 5,476 | -2,230 | 3,246 | 5,477 | -2,151 | 3,326 | |||||||||||||
gTLDs | 37,394 | -1,825 | 35,569 | 26,909 | -1,047 | 25,862 | |||||||||||||
Total | $ | 87,403 | $ | -41,566 | $ | 45,837 | $ | 77,970 | $ | -40,854 | $ | 37,116 | |||||||
Amortization expense by classification | Amortization expense by classification is shown below (in thousands): | ||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Cost of revenue | $ | 1,882 | $ | 1,344 | |||||||||||||||
Sales and marketing | 323 | 278 | |||||||||||||||||
Technology and development | 5 | 5 | |||||||||||||||||
General and administrative | 90 | 64 | |||||||||||||||||
Total amortization | $ | 2,300 | $ | 1,691 | |||||||||||||||
Estimated future amortization expense | Estimated future amortization expense related to intangible assets held as of March 31, 2015 (in thousands): | ||||||||||||||||||
Years Ending December 31, | Amount | ||||||||||||||||||
2015 (April 1, 2015, to December 31, 2015) | $ | 6,238 | |||||||||||||||||
2016 | 6,224 | ||||||||||||||||||
2017 | 5,185 | ||||||||||||||||||
2018 | 4,463 | ||||||||||||||||||
2019 | 4,485 | ||||||||||||||||||
Thereafter | 19,242 | ||||||||||||||||||
Total | $ | 45,837 | |||||||||||||||||
gTLD_Deposits_Tables
gTLD Deposits (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||
Schedule of gTLD deposits | gTLD deposits consisted of the following (in thousands): | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
gTLD deposits | $ | 17,366 | $ | 21,180 | |||
Other_Balance_Sheet_Items_Tabl
Other Balance Sheet Items (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Balance Sheet Related Disclosures [Abstract] | |||||||
Schedule of accounts receivable | Accounts receivable consisted of the following (in thousands): | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Accounts receivable—trade | $ | 6,212 | $ | 7,101 | |||
gTLD deposit receivable | 5,519 | 3,557 | |||||
Receivables from registries | 4,826 | 3,598 | |||||
Accounts receivable | $ | 16,557 | $ | 14,256 | |||
Schedule of prepaids and other current assets | Prepaid expenses and other current assets consisted of the following (in thousands): | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Prepaid expenses | $ | 2,884 | $ | 2,799 | |||
Prepaid registry fees | 1,948 | 1,599 | |||||
Note receivable | 1,010 | 2,500 | |||||
Prepaid expenses and other current assets | $ | 5,842 | $ | 6,898 | |||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Schedule of revenue derived from segments | |||||||
Revenue derived from our registrar services, registry services, and aftermarket and other service offerings are as follows (in thousands): | |||||||
Three months ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Registrar services | $ | 41,999 | $ | 37,532 | |||
Registry services | 1,605 | 42 | |||||
Aftermarket and other | 7,332 | 7,018 | |||||
Eliminations | -405 | -40 | |||||
Total revenue | $ | 50,531 | $ | 44,552 | |||
Schedule of revenue by location | Revenue by geographic location is as follows (in thousands): | ||||||
Three months ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
United States | $ | 36,612 | $ | 31,187 | |||
International | 13,919 | 13,365 | |||||
Total | $ | 50,531 | $ | 44,552 | |||
Transactions_with_Related_Part1
Transactions with Related Parties (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Related Party Transactions [Abstract] | ||||
Schedule of costs incurred and allocated by Demand Media | ||||
Prior to the Separation, we recorded the following costs incurred and allocated by Demand Media in our statements of operations as follows (in thousands): | ||||
Three months ended | ||||
March 31, | ||||
2014 | ||||
Cost of revenue | $ | 92 | ||
Sales and marketing | 896 | |||
Technology and development | 2,868 | |||
General and administration | 5,028 | |||
Depreciation and amortization | 1,052 | |||
Total allocated expenses | $ | 9,936 | ||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Schedule of assets and liabilities meansured at fair value | Our financial assets and liabilities measured at fair value as of March 31, 2015, and December 31, 2014, are summarized below (in thousands): | ||||||||||||
Fair Value Measurement Using | Assets at Fair | ||||||||||||
As of March 31, 2015 | Level 1 | Level 2 | Level 3 | Value | |||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 45,902 | $ | - | $ | - | $ | 45,902 | |||||
Note Receivable | 1,010 | 1,010 | |||||||||||
Liabilities: | |||||||||||||
Debt | $ | - | $ | - | $ | 25,025 | $ | 25,025 | |||||
Fair Value Measurement Using | Assets at Fair | ||||||||||||
As of December 31, 2014 | Level 1 | Level 2 | Level 3 | Value | |||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 49,743 | $ | - | $ | - | $ | 49,743 | |||||
Note Receivable | 2,500 | 2,500 | |||||||||||
Liabilities: | |||||||||||||
Debt | $ | - | $ | - | $ | 25,105 | $ | 25,105 | |||||
Schedule of reconciliation of note receivable fair value using unobservable inputs | The following table presents a reconciliation of our note receivable at fair value using unobservable inputs (Level 3) as of March 31, 2015 (in thousands): | ||||||||||||
Balance as of December 31, 2014 | $ | 2,500 | |||||||||||
Issuance of note receivable | 10 | ||||||||||||
Repayments on note receivable | -1,500 | ||||||||||||
Balance as of March 31, 2015 | $ | 1,010 | |||||||||||
Schedule of reconciliation of debt fair value using unobservable inputs | The following table presents a reconciliation of our debt measured at fair value using unobservable inputs (Level 3) as of March 31, 2015 (in thousands): | ||||||||||||
Balance as of December 31, 2014 | $ | 25,105 | |||||||||||
Amortization of discount on debt | 295 | ||||||||||||
Principal payments on debt | -375 | ||||||||||||
Balance as of March 31, 2015 | $ | 25,025 | |||||||||||
Earnings_loss_Per_Share_Tables
Earnings (loss) Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net income (loss) | $ | 1,876 | $ | -3,921 | |||
Weighted average number of shares outstanding: | |||||||
Basic | 18,705 | 18,413 | |||||
Dilutive effect of stock-based equity awards | 9 | - | |||||
Dilutive effect of warrants | - | - | |||||
Diluted | 18,714 | 18,413 | |||||
Net income (loss) per share attributable to common stockholders | |||||||
Basic | $ | 0.10 | $ | -0.21 | |||
Diluted | 0.10 | -0.21 | |||||
Company_Background_Separation_1
Company Background, Separation from Demand Media and Basis of Presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||||
Aug. 01, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Aug. 01, 2014 | Jul. 31, 2014 | 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) | 100,000,000 | 100,000,000 | 100,000,000 | |||
Common stock par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ||
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | |||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ||
Shares issued | 18,753,000 | 18,661,000 | 18,400,000 | 1,000 | ||
Shares outstanding | 18,753,000 | 18,661,000 | 18,400,000 | 1,000 | ||
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 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | item | |
Accounting Policies [Abstract] | ||
Debt Issuance Costs Classified as Other Assets | $2.40 | $2.60 |
Number Of Consolidation Models Prior To FASB Amendment | 4 | |
Number Of Consolidation Models After FASB Amendment | 2 | |
Deferred Revenue Reclassified to Accrued Expenses and Other Liabilities | $1 |
Intangible_Assets_Summary_Deta
Intangible Assets - Summary (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $87,403 | $77,970 |
Accumulated amortization | -41,566 | -40,854 |
Total | 45,837 | 37,116 |
Owned website names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 15,530 | 16,581 |
Accumulated amortization | -10,918 | -11,402 |
Total | 4,612 | 5,179 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 20,842 | 20,842 |
Accumulated amortization | -18,581 | -18,258 |
Total | 2,261 | 2,584 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,954 | 7,954 |
Accumulated amortization | -7,920 | -7,915 |
Total | 34 | 39 |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 207 | 207 |
Accumulated amortization | -92 | -81 |
Total | 115 | 126 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5,476 | 5,477 |
Accumulated amortization | -2,230 | -2,151 |
Total | 3,246 | 3,326 |
gTLD deposit receivable | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 37,394 | 26,909 |
Accumulated amortization | -1,825 | -1,047 |
Total | $35,569 | $25,862 |
Intangible_Assets_Amortization
Intangible Assets - Amortization Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $2,300 | $1,691 |
Cost of revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 1,882 | 1,344 |
Sales and marketing | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 323 | 278 |
Technology and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 5 | 5 |
General and administrative | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $90 | $64 |
Intangible_Assets_Future_Amort
Intangible Assets - Future Amortization Expense (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||
2015 (April 1, 2015 to December 31, 2015) | $6,238 | |
2016 | 6,224 | |
2017 | 5,185 | |
2018 | 4,463 | |
2019 | 4,485 | |
Thereafter | 19,242 | |
Total | $45,837 | $37,116 |
gTLD_Deposits_Details
gTLD Deposits (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deposits for gtld applications | $17,366,000 | $21,180,000 | |
Payments made for gTLD applications | 8,100,000 | 32,000,000 | |
Gain On Other Assets Net | $7,223,000 | $4,860,000 |
Other_Balance_Sheet_Items_Deta
Other Balance Sheet Items (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts receivable | ||
Accounts receivable | $16,557 | $14,256 |
Prepaid Expense, Current [Abstract] | ||
Prepaid expenses | 2,884 | 2,799 |
Prepaid registry fees | 1,948 | 1,599 |
Note receivable | 1,010 | 2,500 |
Prepaid expenses and other current assets | 5,842 | 6,898 |
Proceeds from repayment of note receivable | 1,500 | |
Accounts receivable - trade | ||
Accounts receivable | ||
Accounts receivable | 6,212 | 7,101 |
gTLD deposit receivable | ||
Accounts receivable | ||
Accounts receivable | 5,519 | 3,557 |
Receivables from registries | ||
Accounts receivable | ||
Accounts receivable | 4,826 | 3,598 |
Namecheap, Inc | ||
Prepaid Expense, Current [Abstract] | ||
Number of Principal Repayments Received | 2 | |
Proceeds from repayment of note receivable | $1,500 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation of effective income tax rate | ||
Federal statutory income tax rate | -101.00% | -53.40% |
Income tax benefit (expense) | ($943,000) | $1,364,000 |
Liability for uncertain tax positions | $0 | $0 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Business Segments | ||
Number of Operating Segments | 1 | |
Total Revenue | $50,531 | $44,552 |
US [Member] | ||
Business Segments | ||
Total Revenue | 36,612 | 31,187 |
International [Member] | ||
Business Segments | ||
Total Revenue | 13,919 | 13,365 |
Registrar services | ||
Business Segments | ||
Total Revenue | 41,999 | 37,532 |
Registry services | ||
Business Segments | ||
Total Revenue | 1,605 | 42 |
Aftermarket and other | ||
Business Segments | ||
Total Revenue | 7,332 | 7,018 |
Eliminations member | ||
Business Segments | ||
Total Revenue | ($405) | ($40) |
Transactions_with_Related_Part2
Transactions with Related Parties (Details) (Demand Media, USD $) | 3 Months Ended | |
Mar. 31, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ||
Allocated expenses | $9,936,000 | |
Allocated stock-based compensation expense | 500,000 | |
Cost of revenue | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 92,000 | |
Sales and marketing | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 896,000 | |
Technology and development | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 2,868,000 | |
General and administrative | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 5,028,000 | |
Depreciation and amortization | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | $1,052,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Hierarchy (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $45,902 | $49,743 | $78,496 | $66,833 |
Prepaid Expense and Other Assets, Current | 5,842 | 6,898 | ||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 45,902 | 49,743 | ||
Debt Instrument, Fair Value Disclosure | 25,025 | 25,105 | ||
Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 45,902 | 49,743 | ||
Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Note Receivable | 1,010 | 2,500 | ||
Debt Instrument, Fair Value Disclosure | 25,025 | 25,105 | ||
Note Receivable [Member] | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Prepaid Expense and Other Assets, Current | 1,010 | 2,500 | ||
Note Receivable [Member] | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Prepaid Expense and Other Assets, Current | $1,010 | $2,500 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Level 3 (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from repayment of note receivable | $1,500 | |
Amortization of discount on debt | 469 | |
Principal payments on debt | -375 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance (beginning of period) | 25,105 | |
Balance (end of period) | 25,025 | 25,105 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance (beginning of period) | 2,500 | |
Issuance of note receivable | 10 | |
Proceeds from repayment of note receivable | -1,500 | |
Balance (end of period) | 1,010 | |
Balance (beginning of period) | 25,105 | |
Amortization of discount on debt | 295 | |
Principal payments on debt | -375 | |
Balance (end of period) | $25,025 |
Earnings_loss_Per_Share_Detail
Earnings (loss) Per Share (Details) (USD $) | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 01, 2014 | Jul. 31, 2014 |
Earnings Per Share [Abstract] | |||||
Net income (loss) | $1,876 | ($3,921) | |||
Weighted average number of shares outstanding | |||||
Weighted average shares outstanding, basic | 18,705,000 | 18,413,000 | |||
Dilutive effect of stock based equity awards | 9,000 | ||||
Weighted average shares outstanding, diluted | 18,714,000 | 18,413,000 | |||
Net income (loss) per share attributable to common | |||||
Net loss per share attributable to common stockholders - Basic (in earnings per share) | $0.10 | ($0.21) | |||
Net loss per share attributable to common stockholders - Diluted (in earnings per share) | $0.10 | ($0.21) | |||
Shares issued | 18,753,000 | 18,661,000 | 18,400,000 | 1,000 | |
Common stock par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | |
Shares outstanding | 18,753,000 | 18,661,000 | 18,400,000 | 1,000 |