Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 04, 2015 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | RIGHTSIDE GROUP, LTD. | |
Entity Central Index Key | 1,589,094 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 | 18,987,303 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 45,856 | $ 49,743 |
Accounts receivable | 11,687 | 14,256 |
Prepaid expenses and other current assets | 7,597 | 6,898 |
Deferred registration costs | 76,699 | 73,289 |
Total current assets | 141,839 | 144,186 |
Deferred registration costs, less current portion | 15,638 | 14,502 |
Property and equipment, net | 11,516 | 11,527 |
Intangible assets, net | 56,377 | 37,116 |
Goodwill | 103,042 | 103,042 |
Deferred tax assets | 12,530 | 9,483 |
gTLD deposits | 8,415 | 21,180 |
Other assets | 3,036 | 3,298 |
Total assets | 352,393 | 344,334 |
Current liabilities | ||
Accounts payable | 8,184 | 7,190 |
Accrued expenses and other current liabilities | 23,594 | 22,313 |
Debt | 1,500 | 1,500 |
Deferred tax liabilities | 27,886 | 27,886 |
Deferred revenue | 100,076 | 92,683 |
Total current liabilities | 161,240 | 151,572 |
Deferred revenue, less current portion | 20,564 | 19,195 |
Debt, less current portion | 23,362 | 23,605 |
Other liabilities | 1,176 | 1,117 |
Total liabilities | $ 206,342 | $ 195,489 |
Stockholders' equity | ||
Preferred stock, $0.0001 par value per share Authorized shares: 20,000 and 20,000 Shares issued and outstanding: 0 and 0 | ||
Common stock, $0.0001 per share authorized shares: 100,000 and 100,000 shares issued and outstanding: 18,974 and 18,661 | $ 2 | $ 2 |
Additional paid in capital | 146,116 | 141,709 |
(Accumulated deficit) retained earnings | (67) | 7,134 |
Total stockholders' equity | 146,051 | 148,845 |
Total liabilities and stockholders' equity | $ 352,393 | $ 344,334 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
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) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, shares issued | 18,974,000 | 18,661,000 |
Common stock, shares outstanding | 18,974,000 | 18,661,000 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 54,119 | $ 48,774 | $ 156,821 | $ 140,015 |
Cost of revenue (excluding depreciation and amortization) | 41,583 | 38,297 | 120,870 | 109,507 |
Sales and marketing | 2,591 | 2,231 | 7,618 | 7,167 |
Technology and development | 5,355 | 4,705 | 15,737 | 15,432 |
General and administrative | 5,195 | 5,224 | 15,082 | 16,147 |
Depreciation and amortization | 4,237 | 3,620 | 12,317 | 11,560 |
Gain on other assets, net | (1,721) | (8,558) | (8,682) | (14,303) |
Interest expense | 1,225 | 701 | 3,695 | 701 |
Other expense (income), net | 4 | 65 | 2 | (1,232) |
(Loss) income before income tax | (4,350) | 2,489 | (9,818) | (4,964) |
Income tax benefit | (946) | (1,608) | (2,617) | (1,650) |
Net (loss) income | $ (3,404) | $ 4,097 | $ (7,201) | $ (3,314) |
Net (loss) income per share attributable to common stockholders - Basic (in earnings per share) | $ (0.18) | $ 0.22 | $ (0.38) | $ (0.18) |
Net (loss) income per share attributable to common stockholders - Diluted (in earnings per share) | $ (0.18) | $ 0.22 | $ (0.38) | $ (0.18) |
Weighted average shares outstanding, basic | 18,916 | 18,444 | 18,809 | 18,424 |
Weighted average shares outstanding, diluted | 18,916 | 18,488 | 18,809 | 18,424 |
Statements of Comprehensive (Lo
Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Loss [Abstract] | ||||
Net (loss) income | $ (3,404) | $ 4,097 | $ (7,201) | $ (3,314) |
Other comprehensive loss: | ||||
Unrealized loss on available-for-sale securities | (906) | |||
Tax effect | 329 | |||
Other comprehensive loss, net of tax | (577) | |||
Comprehensive (loss) income | $ (3,404) | $ 4,097 | $ (7,201) | $ (3,891) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (7,201) | $ (3,314) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 12,317 | 11,560 |
Amortization of discount and issuance costs on debt | 1,405 | 241 |
Deferred income taxes | (2,617) | (1,670) |
Stock‑based compensation expense | 4,643 | 4,427 |
Gain on gTLD application withdrawals, net | (8,682) | (14,303) |
Gain on sale of marketable securities | (1,362) | |
Other | (193) | (342) |
Change in operating assets and liabilities: | ||
Accounts receivable | (441) | (317) |
Prepaid expenses and other current assets | (2,199) | (1,176) |
Deferred registration costs | (4,546) | (9,013) |
Other long‑term assets | (484) | (2,155) |
Accounts payable | 994 | (715) |
Accrued expenses and other liabilities | 1,144 | 4,010 |
Deferred revenue | 8,762 | 13,702 |
Net cash provided by (used in) operating activities | 2,902 | (427) |
Cash flows from investing activities | ||
Purchases of property and equipment | (4,159) | (2,525) |
Purchases of intangible assets | (1,256) | (1,609) |
Payments and deposits for gTLD applications | (10,273) | (20,048) |
Proceeds from gTLD withdrawals | 9,031 | 10,339 |
Proceeds from repayment of note receivable | 1,500 | |
Change in restricted cash | (345) | |
Proceeds from sale of marketable securities | 1,362 | |
Other | 270 | 341 |
Net cash used in investing activities | (4,887) | (12,485) |
Cash flows from financing activities | ||
Principal payments on capital lease obligations | (101) | |
Proceeds from debt | 30,000 | |
Principal payments on debt | (1,125) | |
Proceeds from stock options exercises | 46 | 44 |
Minimum tax withholding on restricted stock awards | (823) | |
Issuance costs related to debt financings | (2,725) | |
Payment for acquisition holdback | (1,042) | |
Net decrease in parent company investment | (29,210) | |
Net cash used in financing activities | (1,902) | (3,034) |
Change in cash and cash equivalents | (3,887) | (15,946) |
Cash and cash equivalents, beginning of period | 49,743 | 66,833 |
Cash and cash equivalents, end of period | 45,856 | 50,887 |
Supplemental disclosure of cash flows: | ||
Cash paid for interest | 2,361 | 432 |
Cash paid for income taxes | $ 61 | 16 |
Warrants issued in connection with debt | $ 4,441 |
Company Background, Separation
Company Background, Separation from Demand Media and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Company Background, Separation from Demand Media and Basis of Presentation [Abstract] | |
Company Background, Separation from Demand Media and Basis of Presentation | 1. Company Background, Separation from Demand Media and Basis of Presentation Rightside Group, Ltd. (together with its subsidiaries, “Rightside,” the “Company,” “our,” “we,” or “us”) provides domain name registration and related value ‑added service subscriptions to third parties. We are also an accredited registry for new generic Top Level Domains (“gTLDs”) made available by the expansion (the “New gTLD Program”) of new gTLDs by the Internet Corporation for Assigned Names and Numbers (“ICANN”). Separation from Demand Media On August 1, 2014, Demand Media, Inc. (“Demand Media”) separated into two independent, publicly-traded companies: Rightside, a domain name services company, and Demand Media, a digital media company (the “Separation”). The Separation was consummated through a tax-free distribution of all the outstanding shares of our common stock on a pro rata basis to Demand Media stockholders. After the Separation, holders of Demand Media common stock on the record date received one share of Rightside common stock for every five shares of Demand Media common stock. Rightside became an independent, publicly-traded company on the NASDAQ Global Select Market using the symbol: “NAME.” We were incorporated on July 11, 2013, as a wholly-owned subsidiary of Demand Media. Prior to the Separation, the authorized shares of our 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. After the Separation, 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 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 loss, equity and cash flows as a separate company and have been prepared in accordance with U.S. generally accepted accounting principles (“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. O ur financial statements assume the allocation to us of certain Demand Media corporate expenses relating to Rightside (refer to Note 9—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 and nine months ended September 30, 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 Accounti
Summary of Significant Accounting Policies and New Accounting Guidance | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies and New Accounting Guidance [Abstract] | |
Summary of Significant Accounting Policies and New Accounting Guidance | 2. Summary of Significant Accounting Policies and New Accounting Guidance 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 May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-08, “Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. ” The amendments update various SEC paragraphs included in the Accounting Standards Codification (“ASC”) to reflect the issuance of Staff Accounting Bulletin (“SAB”) No. 115. SAB No. 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. We have adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption of this standard did not have an impact on our financial statements. Recent Accounting Guidance Not Yet Adopted In August 2015, the FASB issued ASU 2015-15, “ Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” The new standard clarifies the SEC staff’s position on debt issuance costs in connection with line of credit arrangements from ASU 2015-03 . The SEC staff would not object to presenting debt issuance costs as an asset if they are incurred before a debt liability is recognized or if they are associated wit h revolving debt arrangements. The update is effective for fiscal years beginning after December 15, 2015, and requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of September 30, 2015, and December 31, 2014, we had $0.4 million and $0.5 million of debt issuance costs that will remain classified as an Other Asset on our balance sheets when we adopt the new standard on January 1, 2016. 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 standard 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 requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of September 30, 2015, and December 31, 2014, we had $1.7 million and $2.1 million of debt issuance costs that are currently classified as an Oth er Asset on our balance sheets. Under this new standard we would recognize these costs as a reduction of Debt when we adopt the new standard on January 1, 2016. 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. It also 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. In August 2015, the FASB issued ASU 2015-14, “ Deferral of the Effective Date,” which changed the effective date of ASU 2014-09 to be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after the original effective date of December 15, 2016. 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. Reclassifications and Revisions Certain amounts previously presented for prior periods have been reclassified to conform to current presentation as described further below. 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. As we discussed in our Annual Report on Form 10-K for the year ended December 31, 2014, subsequent to the filing of our Form 10-Q for the th ree months ended September 30, 2014, we determined that certain transactions were misclassified in the Statements of Cash Flows for the nine mo nths ended September 30, 2014. The misclassifications primarily related to the repayment of an acquisition holdback liability for our 2012 Name.com acquisition and the timing of cash received rela ted to gains on gTLD auctions. For the nine months ended September 30, 2014, these classification errors resulted in an overstatement of cash outflows from operations by a total of $1.5 million; an overstatement of cash outflows from investing activities of $0.5 million; and an understatement of cash outflows from financing of $2.0 million. We assessed the materiality of the error on our previously issued quarterly financial statements in accordance with SAB No. 99, “ Materiality, ” and concluded that the error was not material to the financial statements taken as a whole. We revised our Statement of Cash Flows for the nine months ended September 30, 2014 , to correct this error. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | 3. Intangible Assets Intangible assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Gross Gross carrying Accumulated carrying Accumulated amount amortization Net amount amortization Net Owned website names $ $ $ $ $ $ Customer relationships Technology Non-compete agreements Trade names gTLDs Total $ $ $ $ $ $ Amortization expense by classification is shown below (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Cost of revenue $ $ $ $ Sales and marketing Technology and development General and administrative Total amortization $ $ $ $ Estimated future amortization expense related to intangible assets held as of September 30, 2015 (in thousands): Years Ending December 31, Amount 2015 (October 1, 2015, to December 31, 2015) $ 2016 2017 2018 2019 Thereafter Total $ |
gTLD Deposits
gTLD Deposits | 9 Months Ended |
Sep. 30, 2015 | |
gTLD Deposits [Abstract] | |
gTLD Deposits | 4. gTLD Deposits gTLD deposits consisted of the following (in thousands): September 30, December 31, 2015 2014 gTLD deposits $ $ We paid $10.3 million during the nine months ended September 30, 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. Gains on the sale of our interest in gTLDs applications are recognized when realized, while losses are recognized when deemed probable. We transferred $25.1 million during the nine months ended September 30, 2015, and $26.5 million during the year ended December 31, 2014, to intangible assets for certain gTLD applications for which we were awarded the gTLD operator rights. When we are awarded the operator rights, the gTLD becomes available for its intended use, and we reclassify the application fees and acquisition-related costs as finite lived intangible assets. The withdrawal of our interest in certain gTLD applications resulted in a net gain of $1.7 million and $8.6 million for the three months ended September 30, 2015 and 2014. The withdrawal of our interest in certain gTLD applications resulted in a net gain of $8.7 million and $14.3 million for the nine months ended September 30, 2015 and 2014. We recorded these gains and losses in gain on other assets, net , on the statements of operations. |
Other Balance Sheet Items
Other Balance Sheet Items | 9 Months Ended |
Sep. 30, 2015 | |
Other Balance Sheet Items [Abstract] | |
Other Balance Sheet Items | 5. Other Balance Sheet Items Accounts receivable consisted of the following (in thousands): September 30, December 31, 2015 2014 Accounts receivable—trade $ $ gTLD deposit receivable Receivables from registries Accounts receivable $ $ Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, 2015 2014 Prepaid expenses $ $ Prepaid registry fees Note receivable Prepaid expenses and other current assets $ $ 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 nine months ended September 30, 2015, Namecheap made two principal payments totaling $1.5 million , reducing the outstanding balance of the Note receivable to $1.0 million. Effective August 1, 2015, we and Namecheap entered into Amendment No. 3 of S enior Unsecured Promissory Note, which extends the maturity date of the Note receivable dated October 17, 2014, as amended, from July 31, 2015, to December 31, 2015. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Line of Credit Facility [Abstract] | |
Debt | 6. Debt Silicon Valley Bank Credit Facility In June 2015, we amended our Credit Agreement (“Amendment”) with Silicon Valley Bank. The Amendment revises the terms of our existing Credit Agreement (“SVB Credit Facility”). The Amendment, among other changes, amends the consolidated fixed charge coverage ratio in the SVB Credit Facility, to require that we maintain a consolidated fixed charge coverage ratio on a scale depending on the available revolving commitment under the SVB Credit Facility plus unrestricted cash. As of September 30, 2015, we were in compliance with the covenants under the SVB Credit Facility. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes Our effective tax rate differs from the statutory rate primarily as a result of state taxes, non-deductible stock option expenses and international operations. The effective tax rate was 21.7% and (64.6)% f or the three months ended September 30, 2015 and 2014, and was 26.6% and 33.2% f or the nine months ended September 30, 2015 and 2014. We recorded an income tax benefit of $0.9 million during the three months ended September 30, 2015, compared to an income tax benefit of $ 1.6 million during the same period in 2014. The decreased benefit was primarily due to an increase in non-deductible stock warrant amortization and an increase in our state effective tax rate. We recorded an income tax benefit of $2.6 million during the nine months ended September 30, 2015, compared to an income tax benefit of $1.6 million during the same period in 2014. The increased benefit was primarily due to a one-time tax expense in 2014 upon the reversal of deferred tax assets as a result of cancelled stock options. We currently ha ve a net deferred tax liability , and it appears more likely than not that our deferred tax assets will be realized. However, if future results differ from current projections, a valuation allowance may be required to reduce the deferred tax assets. We will continue to assess the need for a valuation allowance in the future. 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 and nine months ended September 30, 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 tax return 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 | 9 Months Ended |
Sep. 30, 2015 | |
Business Segments [Abstract] | |
Business Segments | 8. Business Segments We operate in one operating segment. Our chief operating decision maker (“CODM”) manages our operations on a global 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 global 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 offerings are as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Registrar services $ $ $ $ Registry services Aftermarket and other Eliminations Total revenue $ $ $ $ Beginning January 1, 2015, we started presenting our Registrar services 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 services businesses. Revenue by geographic location is as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 United States $ $ $ $ International Total $ $ $ $ No international country represented more than 10% of total revenue in any period presented. |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2015 | |
Transactions with Related Parties [Abstract] | |
Transactions with Related Parties | 9. 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 Nine months ended September 30, 2014 September 30, 2014 Cost of revenue $ $ Sales and marketing Technology and development General and administration Depreciation and amortization Total allocated expenses $ $ The table above includes allocated stock ‑based compensation of $0.1 million and $0.8 million for the three and nine months ended September 30, 2014, for the employees of Demand Media whose cost of services was partially allocated to us. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 10. Fair Value of Financial Instruments Our financial assets and liabilities are measured at fair value. We estimated the fair value of our term loan credit facility with Tennenbaum Capital Partners LLC (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 $24.9 million as of September 30, 2015 , and $25.1 million as of December 31, 2014 . |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
(Loss) Earnings Per Share [Abstract] | |
(Loss) Earnings per share | 11 . (Loss) Earnings Per S hare Basic and diluted (loss) earnings per share were calculated using the following (in thousands, except per share amounts): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net (loss) income $ $ $ $ Weighted average number of shares outstanding: Basic Dilutive effect of stock-based equity awards - - - Diluted Net (loss) income per share attributable to common stockholders: Basic $ $ $ $ Diluted 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. For the three months ended September 30, 2015, we excluded 14,800 shares of restricted stock units and stock options from the calculation of diluted weighted average shares outstanding as their inclusion would have been antidilutive. For the three months ended September 30, 2014, there were no antidilutive shares of restricted stock units and stock options. For the nine months ended September 30, 2015 and 2014, we excluded 26,100 and 44,300 shares of restricted stock units and stock options from the calculation of diluted weighted average shares outstanding as their inclusion would have been antidilutive. The $15.05 exercise price per share on the stock warrants related to the Tennenbaum Credit Facility did not have a dilutive effect for any period presented. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies 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 proceedings to which we are a party that, in our belief, is likely to have a material adverse effect on our future financial results. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies and New Accounting Guidance (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies and New Accounting Guidance [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Guidance In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-08, “Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. ” The amendments update various SEC paragraphs included in the Accounting Standards Codification (“ASC”) to reflect the issuance of Staff Accounting Bulletin (“SAB”) No. 115. SAB No. 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. We have adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption of this standard did not have an impact on our financial statements. Recent Accounting Guidance Not Yet Adopted In August 2015, the FASB issued ASU 2015-15, “ Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” The new standard clarifies the SEC staff’s position on debt issuance costs in connection with line of credit arrangements from ASU 2015-03 . The SEC staff would not object to presenting debt issuance costs as an asset if they are incurred before a debt liability is recognized or if they are associated wit h revolving debt arrangements. The update is effective for fiscal years beginning after December 15, 2015, and requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of September 30, 2015, and December 31, 2014, we had $0.4 million and $0.5 million of debt issuance costs that will remain classified as an Other Asset on our balance sheets when we adopt the new standard on January 1, 2016. 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 standard 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 requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of September 30, 2015, and December 31, 2014, we had $1.7 million and $2.1 million of debt issuance costs that are currently classified as an Oth er Asset on our balance sheets. Under this new standard we would recognize these costs as a reduction of Debt when we adopt the new standard on January 1, 2016. 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. It also 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. In August 2015, the FASB issued ASU 2015-14, “ Deferral of the Effective Date,” which changed the effective date of ASU 2014-09 to be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after the original effective date of December 15, 2016. 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. |
Reclassifications and Revisions | Reclassifications and Revisions Certain amounts previously presented for prior periods have been reclassified to conform to current presentation as described further below. 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. As we discussed in our Annual Report on Form 10-K for the year ended December 31, 2014, subsequent to the filing of our Form 10-Q for the th ree months ended September 30, 2014, we determined that certain transactions were misclassified in the Statements of Cash Flows for the nine mo nths ended September 30, 2014. The misclassifications primarily related to the repayment of an acquisition holdback liability for our 2012 Name.com acquisition and the timing of cash received rela ted to gains on gTLD auctions. For the nine months ended September 30, 2014, these classification errors resulted in an overstatement of cash outflows from operations by a total of $1.5 million; an overstatement of cash outflows from investing activities of $0.5 million; and an understatement of cash outflows from financing of $2.0 million. We assessed the materiality of the error on our previously issued quarterly financial statements in accordance with SAB No. 99, “ Materiality, ” and concluded that the error was not material to the financial statements taken as a whole. We revised our Statement of Cash Flows for the nine months ended September 30, 2014 , to correct this error. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Gross Gross carrying Accumulated carrying Accumulated amount amortization Net amount amortization Net Owned website names $ $ $ $ $ $ Customer relationships Technology Non-compete agreements Trade names gTLDs Total $ $ $ $ $ $ |
Amortization expense by classification | Amortization expense by classification is shown below (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Cost of revenue $ $ $ $ Sales and marketing Technology and development General and administrative Total amortization $ $ $ $ |
Estimated future amortization expense | Estimated future amortization expense related to intangible assets held as of September 30, 2015 (in thousands): Years Ending December 31, Amount 2015 (October 1, 2015, to December 31, 2015) $ 2016 2017 2018 2019 Thereafter Total $ |
gTLD Deposits (Tables)
gTLD Deposits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
gTLD Deposits [Abstract] | |
Schedule of gTLD deposits | gTLD deposits consisted of the following (in thousands): September 30, December 31, 2015 2014 gTLD deposits $ $ |
Other Balance Sheet Items (Tabl
Other Balance Sheet Items (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Balance Sheet Items [Abstract] | |
Schedule of accounts receivable | Accounts receivable consisted of the following (in thousands): September 30, December 31, 2015 2014 Accounts receivable—trade $ $ gTLD deposit receivable Receivables from registries Accounts receivable $ $ |
Schedule of prepaids and other current assets | Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, 2015 2014 Prepaid expenses $ $ Prepaid registry fees Note receivable Prepaid expenses and other current assets $ $ |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Segments [Abstract] | |
Schedule of revenue derived from segments | Revenue derived from our Registrar services, Registry services, and Aftermarket and other offerings are as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Registrar services $ $ $ $ Registry services Aftermarket and other Eliminations Total revenue $ $ $ $ |
Schedule of revenue by location | Revenue by geographic location is as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 United States $ $ $ $ International Total $ $ $ $ |
Transactions with Related Par24
Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transactions with Related Parties [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 Nine months ended September 30, 2014 September 30, 2014 Cost of revenue $ $ Sales and marketing Technology and development General and administration Depreciation and amortization Total allocated expenses $ $ |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
(Loss) Earnings Per Share [Abstract] | |
Schedule of (loss) earnings per share | Basic and diluted (loss) earnings per share were calculated using the following (in thousands, except per share amounts): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net (loss) income $ $ $ $ Weighted average number of shares outstanding: Basic Dilutive effect of stock-based equity awards - - - Diluted Net (loss) income per share attributable to common stockholders: Basic $ $ $ $ Diluted |
Company Background, Separatio26
Company Background, Separation from Demand Media and Basis of Presentation (Details) | Aug. 01, 2014item$ / sharesshares | Sep. 30, 2015item$ / sharesshares | Dec. 31, 2014$ / sharesshares | Jul. 31, 2014$ / sharesshares |
Company Background, Separation from Demand Media and Basis of Presentation [Abstract] | ||||
Number of publicly traded entities after spin-off | item | 2 | |||
Number of classes of common stock | item | 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) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Shares issued | 18,400,000 | 18,974,000 | 18,661,000 | 1,000 |
Shares outstanding | 18,400,000 | 18,974,000 | 18,661,000 | 1,000 |
Separation conversion ratio - one share of Rightside common stock for every five shares of Demand Media | 0.20 | |||
Duration of the transition services agreement | 18 months |
Summary of Significant Accoun27
Summary of Significant Accounting Policies and New Accounting Guidance (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Deferred Revenue Reclassified to Accrued Expenses and Other Liabilities | $ 1,000 | ||
Cash outflows from operations | $ 2,902 | $ (427) | |
Cash outflows from investing activities | (4,887) | (12,485) | |
Cash outflows from financing | (1,902) | (3,034) | |
Pro Forma [Member] | ASU 2015-15 | |||
Debt Issuance Costs Classified as Other Assets | 400 | 500 | |
Pro Forma [Member] | ASU 2015-03 | |||
Debt Issuance Costs Classified as Other Assets | $ (1,700) | $ (2,100) | |
Overstatement [Member] | |||
Cash outflows from operations | 1,500 | ||
Cash outflows from investing activities | 500 | ||
Understatement [Member] | |||
Cash outflows from financing | $ 2,000 |
Intangible Assets - Summary (De
Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 101,395 | $ 77,970 |
Accumulated amortization | (45,018) | (40,854) |
Total | 56,377 | 37,116 |
Owned website names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 14,939 | 16,581 |
Accumulated amortization | (11,289) | (11,402) |
Total | 3,650 | 5,179 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 20,842 | 20,842 |
Accumulated amortization | (19,197) | (18,258) |
Total | 1,645 | 2,584 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,954 | 7,954 |
Accumulated amortization | (7,929) | (7,915) |
Total | 25 | 39 |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 207 | 207 |
Accumulated amortization | (112) | (81) |
Total | 95 | 126 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5,465 | 5,477 |
Accumulated amortization | (2,389) | (2,151) |
Total | 3,076 | 3,326 |
gTLD deposit receivable | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 51,988 | 26,909 |
Accumulated amortization | (4,102) | (1,047) |
Total | $ 47,886 | $ 25,862 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 2,499 | $ 1,931 | $ 7,256 | $ 5,530 |
Cost of revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 2,113 | 1,498 | 6,034 | 4,221 |
Sales and marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 293 | 323 | 939 | 924 |
Technology and development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 4 | 5 | 14 | 14 |
General and administrative | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 89 | $ 105 | $ 269 | $ 371 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||
2015 (October 1, 2015 to December 31, 2015) | $ 2,431 | |
2,016 | 8,091 | |
2,017 | 6,461 | |
2,018 | 6,343 | |
2,019 | 6,037 | |
Thereafter | 27,014 | |
Total | $ 56,377 | $ 37,116 |
gTLD Deposits (Details)
gTLD Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Deposits for gtld applications | $ 8,415 | $ 8,415 | $ 21,180 | ||
Payments and deposits for gTLD applications | 10,273 | $ 20,048 | 32,000 | ||
Gain (Loss) on Disposition of Other Assets | $ 1,721 | $ 8,558 | 8,682 | $ 14,303 | |
Certain gTLD operator rights | |||||
Amount transferred into intangible assets during the period | $ 25,100 | $ 26,500 |
Other Balance Sheet Items - Acc
Other Balance Sheet Items - Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable | ||
Accounts receivable | $ 11,687 | $ 14,256 |
Accounts receivable - trade | ||
Accounts receivable | ||
Accounts receivable | 6,575 | 7,101 |
gTLD deposit receivable | ||
Accounts receivable | ||
Accounts receivable | 547 | 3,557 |
Receivables from registries | ||
Accounts receivable | ||
Accounts receivable | $ 4,565 | $ 3,598 |
Other Balance Sheet Items - Pre
Other Balance Sheet Items - Prepaid Expenses and Other Current Assets (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)payment | Dec. 31, 2014USD ($) | Oct. 31, 2014USD ($) | |
Prepaid Expense, Current [Abstract] | |||
Prepaid expenses | $ 3,326 | $ 2,799 | |
Prepaid registry fees | 3,261 | 1,599 | |
Note receivable | 1,010 | 2,500 | |
Prepaid expenses and other current assets | 7,597 | $ 6,898 | |
Proceeds from repayment of note receivable | $ 1,500 | ||
Namecheap, Inc | |||
Prepaid Expense, Current [Abstract] | |||
Note receivable | $ 2,500 | ||
Number of Principal Repayments Received | payment | 2 | ||
Proceeds from repayment of note receivable | $ 1,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of effective income tax rate | ||||
Effective income tax rate | 21.70% | (64.60%) | 26.60% | 33.20% |
Income tax benefit | $ (946,000) | $ (1,608,000) | $ (2,617,000) | $ (1,650,000) |
Liability for uncertain tax positions | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Business Segments | ||||
Number of Operating Segments | segment | 1 | |||
Total Revenue | $ 54,119 | $ 48,774 | $ 156,821 | $ 140,015 |
Eliminations | ||||
Business Segments | ||||
Total Revenue | (763) | (137) | (1,747) | (235) |
United States | ||||
Business Segments | ||||
Total Revenue | 39,522 | 35,047 | 113,962 | 99,000 |
International | ||||
Business Segments | ||||
Total Revenue | $ 14,597 | $ 13,727 | $ 42,859 | $ 41,015 |
Concentration percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Registrar services | Operating segment | ||||
Business Segments | ||||
Total Revenue | $ 43,953 | $ 40,907 | $ 129,233 | $ 117,847 |
Registry services | Operating segment | ||||
Business Segments | ||||
Total Revenue | 2,382 | 562 | 5,912 | 820 |
Aftermarket and other | Operating segment | ||||
Business Segments | ||||
Total Revenue | $ 8,547 | $ 7,442 | $ 23,423 | $ 21,583 |
Transactions with Related Par36
Transactions with Related Parties (Details) - Demand Media - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||
Allocated expenses | $ 2,917 | $ 21,510 |
Allocated stock-based compensation expense | 100 | 800 |
Cost of revenue | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 32 | 215 |
Sales and marketing | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 75 | 1,452 |
Technology and development | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 824 | 6,684 |
General and administrative | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | 1,658 | 10,768 |
Depreciation and amortization | ||
Related Party Transaction [Line Items] | ||
Allocated expenses | $ 328 | $ 2,391 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments - Level 3 (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 24.9 | $ 25.1 |
(Loss) Earnings Per Share (Deta
(Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Aug. 01, 2014 | Jul. 31, 2014 | |
Earnings Loss Per Share [Line Items] | |||||||
Net (loss) income | $ (3,404) | $ 4,097 | $ (7,201) | $ (3,314) | |||
Weighted average number of shares outstanding | |||||||
Weighted average shares outstanding, basic | 18,916,000 | 18,444,000 | 18,809,000 | 18,424,000 | |||
Dilutive effect of stock based equity awards | 44,000 | ||||||
Weighted average shares outstanding, diluted | 18,916,000 | 18,488,000 | 18,809,000 | 18,424,000 | |||
Net (loss) income per share attributable to common | |||||||
Net (loss) income per share attributable to common stockholders - Basic (in earnings per share) | $ (0.18) | $ 0.22 | $ (0.38) | $ (0.18) | |||
Net (loss) income per share attributable to common stockholders - Diluted (in earnings per share) | $ (0.18) | $ 0.22 | $ (0.38) | $ (0.18) | |||
Shares issued | 18,974,000 | 18,974,000 | 18,661,000 | 18,400,000 | 1,000 | ||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Shares outstanding | 18,974,000 | 18,974,000 | 18,661,000 | 18,400,000 | 1,000 | ||
Restricted stock units | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14,800 | 0 | 26,100 | 44,300 | |||
Tennebaum Credit Facility warrants | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 15.05 | $ 15.05 | $ 15.05 | $ 15.05 |