Sizmek (SZMK) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 11, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Sizmek Inc.
Entity Central Index Key	1,591,877
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		29,584,359
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 64,865	$ 90,672
Accounts receivable (less allowances of $978 and $813 as of September 30, 2015 and December 31, 2014, respectively)	43,835	51,125
Deferred income taxes	620	636
Restricted cash	1,524	1,538
Other current assets	7,501	5,254
Current assets of TV business	957	2,470
Total current assets	119,302	151,695
Property and equipment, net	39,637	34,036
Goodwill	51,288	40,154
Intangible assets, net	65,293	71,306
Deferred income taxes	358	387
Restricted cash	4,625	3,941
Other non-current assets	3,231	3,393
Total assets	283,734	304,912
CURRENT LIABILITIES:
Accounts payable	4,177	3,976
Accrued liabilities	24,167	19,171
Current liabilities of TV business	420	395
Total current liabilities	28,764	23,542
Deferred income taxes	7,299	8,242
Other non-current liabilities	7,494	6,433
Non-current liabilities of TV business	273	260
Total liabilities	$ 43,830	$ 38,477
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value-Authorized 15,000 shares; issued and outstanding-none
Common stock, $0.001 par value-Authorized 200,000 shares; 29,584 issued and outstanding at September 30, 2015; 30,399 issued and 30,071 outstanding at December 31, 2014	$ 30	$ 30
Treasury stock, at cost (328 shares at December 31, 2014)		(2,000)
Additional capital	$ 367,566	371,261
Accumulated deficit	(124,731)	(101,341)
Accumulated other comprehensive loss	(2,961)	(1,515)
Total stockholders' equity	239,904	266,435
Total liabilities and stockholders' equity	$ 283,734	$ 304,912

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS [Abstract]
Accounts receivable, allowances	$ 978	$ 813
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, Authorized shares	15,000	15,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized shares	200,000	200,000
Common stock, issued shares	29,584	30,399
Common stock, outstanding shares	29,584	30,071
Treasury stock, shares		328

CONSOLIDATED AND COMBINED STATE

CONSOLIDATED AND COMBINED 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
Revenues:
Platform related	$ 32,869	$ 35,380	$ 101,406	$ 109,646
Programmatic managed services	7,397	4,133	15,835	12,247
Total	40,266	39,513	117,241	121,893
Cost of revenues (excluding depreciation and amortization):
Platform related	11,029	11,708	33,039	35,739
Programmatic managed services	6,002	2,566	12,144	8,289
Total	17,031	14,274	45,183	44,028
Selling and marketing	15,597	14,082	45,233	44,184
Research and development	3,816	3,300	10,393	10,041
General and administrative	5,005	4,276	14,298	17,464
Merger, integration and other	1,447	221	3,451	6,510
Depreciation and amortization	$ 7,524	6,280	$ 22,734	19,257
Goodwill impairment		98,196		98,196
Loss from operations	$ (10,154)	(101,116)	$ (24,051)	(117,787)
Other (income) expense, net	(58)	479	1,287	687
Loss before income taxes	(10,096)	(101,595)	(25,338)	(118,474)
Benefit for income taxes	(2,548)	(213)	(1,948)	(1,032)
Net loss	$ (7,548)	$ (101,382)	$ (23,390)	$ (117,442)
Basic and diluted loss per common share	$ (0.26)	$ (3.34)	$ (0.79)	$ (3.86)
Weighted average common shares outstanding:
Basic and diluted	29,567	30,399	29,633	30,399

CONSOLIDATED AND COMBINED STAT5

CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net loss	$ (7,548)	$ (101,382)	$ (23,390)	$ (117,442)
Other comprehensive loss:
Unrealized loss on derivatives, net of tax	(381)	(24)	(7)	(116)
Unrealized loss on available for sale securities, net of tax	(176)	(157)	(410)	(121)
Foreign currency translation adjustment	(805)	(989)	(1,029)	(517)
Total other comprehensive loss	(1,362)	(1,170)	(1,446)	(754)
Total comprehensive loss	$ (8,910)	$ (102,552)	$ (24,836)	$ (118,196)

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2014	$ 266,435	$ 30	$ (2,000)	$ 371,261	$ (101,341)	$ (1,515)
Balance, shares at Dec. 31, 2014	30,399	30,399	(328)
Increase (Decrease) in Stockholders' Equity
Net loss	$ (23,390)				$ (23,390)
Share-based compensation	3,141			$ 3,141
Common stock issued pursuant to RSU agreements, net of shares tendered to satisfy required tax withholding	(336)			$ (336)
Common stock issued pursuant to RSU agreements, net of shares tendered to satisfy required tax withholding, shares		131
Purchase of treasury stock	$ (4,500)		$ (4,500)
Purchase of treasury stock, shares			(618)
Retirement of treasury stock			$ 6,500	$ (6,500)
Retirement of treasury stock, shares		(946)	946
Other comprehensive loss	$ (1,446)					$ (1,446)
Balance at Sep. 30, 2015	$ 239,904	$ 30		$ 367,566	$ (124,731)	$ (2,961)
Balance, shares at Sep. 30, 2015	29,584	29,584

CONSOLIDATED AND COMBINED STAT7

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss		$ (23,390)	$ (117,442)
Adjustments to reconcile net loss to net cash provided by operating activities:
Goodwill impairment			98,196
Depreciation of property and equipment		$ 11,205	7,484
Amortization of intangibles		11,529	11,773
Share-based compensation		3,141	8,430
Deferred income taxes		(929)	(1,040)
Provision (benefit) for accounts receivable recoveries		165	(134)
Write-off (recovery) of TV business net assets	[1]	94	(1,819)
Other		23	(384)
Changes in operating assets and liabilities:
Accounts receivable		10,174	4,333
Other assets		(2,524)	1,092
Accounts payable and other liabilities		(6,665)	(1,370)
Net cash provided by operating activities		2,823	9,119
Cash flows from investing activities:
Purchases of property and equipment		(3,488)	(3,840)
Capitalized costs of developing software		(12,557)	(9,643)
Acquisitions, net of cash acquired		$ (7,541)	(6,079)
Purchase of long term investment			(975)
Other		$ (476)	(842)
Net cash used in investing activities		(24,062)	$ (21,379)
Cash flows from financing activities:
Purchases of treasury stock		(4,500)
Payment of seller financing		(625)
Payments of TV business liabilities		(342)	$ (9,431)
Proceeds from TV business assets		1,809	$ 45,408
Payment of tax withholding obligation for shares tendered		$ (336)
Net contributions from Parent			$ 44,833
Net cash (used in) provided by financing activities		$ (3,994)	80,810
Effect of exchange rate changes on cash and cash equivalents		(574)	31
Net (decrease) increase in cash and cash equivalents		(25,807)	68,581
Cash and cash equivalents at beginning of year		90,672	22,648
Cash and cash equivalents at end of period		64,865	91,229
Supplemental disclosures of cash flow information:
Cash paid (received) for income taxes		574	(1,272)
Cash paid (received) for interest		(61)	(340)
Holdback obligations incurred to acquire businesses		1,097	$ 625
Extended payment obligations incurred to purchase software		$ 960
[1]	Represents an increase (reduction) in expense due to realizing less (more) TV business net assets than originally estimated at the time of the Spin-Off.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation The Company Sizmek Inc. ("Sizmek," the "Company," "we," "us," and "our"), a Delaware corporation formed in 2013, operates a leading independent global online ad campaign management and distribution platform as measured by the number of advertising impressions served and the number of countries in which we serve customers. Our revenues are principally derived from services related to online advertising. We help advertisers, agencies and publishers engage with consumers across multiple online media channels (mobile, display, rich media, video and social) while delivering efficient, impactful and measurable ad campaigns. We connect approximately 17,000 advertisers and 3,500 agencies to audiences in about 60 countries, serving more than 1.4 trillion impressions a year. Separation from Digital Generation, Inc. Prior to February 7, 2014, we operated as the online segment of Digital Generation, Inc. ("DG"), a leading global television and online advertising management and distribution business. On February 7, 2014, pursuant to the terms of the Agreement and Plan of Merger, dated as of August 12, 2013 (the "Merger Agreement"), by and among Extreme Reach, Inc. ("Extreme Reach"), Dawn Blackhawk Acquisition Corp., a wholly-owned subsidiary of Extreme Reach ("Acquisition Sub"), and DG, all of our issued and outstanding shares of common stock, par value $0.001 per share ("Sizmek Common Stock") were distributed by DG pro rata to its stockholders (the "Spin-Off") with the DG stockholders receiving one share of Sizmek Common Stock for each share of DG common stock ("DG Common Stock") they held. Immediately after the distribution of the Sizmek Common Stock, pursuant to the Merger Agreement, Acquisition Sub merged with and into DG with DG as the surviving corporation (the "Merger") and each of the outstanding shares of DG Common Stock was converted into the right to receive $3.00 per share, and DG became a wholly-owned subsidiary of Extreme Reach. Prior to the Spin-Off, pursuant to the Separation and Redemption Agreement and related documents, DG contributed to us all of the business and operations of its online advertising segment, all of DG's cash, most of the working capital from its television segment, and certain other corporate assets; and we agreed to indemnify DG and affiliates of DG (including Extreme Reach) from all pre-closing liabilities of DG, including stockholder litigation, tax obligations, and employee liabilities. Sizmek now operates as a separate, stand-alone publicly-traded company in the online advertising services business segment. Carve-out Financial Statements Prior to Spin-Off Prior to our Spin-Off from DG on February 7, 2014, our combined financial statements were derived from the consolidated financial statements and accounting records of DG. These statements reflected the combined historical results of operations, financial position and cash flows of DG's online business primarily conducted through MediaMind Technologies Inc., EyeWonder, LLC, Peer39, Inc., and Unicast EMEA, Ltd., and an allocable portion of DG's corporate costs. For the period prior to the Spin-Off, our financial statements are presented as if such businesses had been combined for all periods presented. All intercompany transactions have been eliminated. All intercompany transactions between us and DG have been included in these combined financial statements and are considered to be effectively settled for cash in the combined financial statements at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the combined statements of cash flows as a financing activity. For the period prior to our Spin-Off on February 7, 2014, the combined financial statements include expense allocations for (1) certain corporate functions historically provided by DG, including, but not limited to, finance, audit, legal, information technology, human resources, communications, compliance, and shared services; (2) employee benefits and incentives; and (3) share-based compensation. These expenses have been allocated to us on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of combined revenues, headcount or other measures of the Company and DG. We consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to, or the benefit received by, us during the period presented. The allocations may not, however, reflect the expense we would have incurred as an independent, publicly-traded company for the period presented. We benefited from sharing the corporate cost structure of DG rather than incurring such costs ourselves on a stand-alone basis. The majority of the pre Spin-Off expense allocations were charged to general and administrative expense. For the periods subsequent to the Spin-Off, general and administrative expense as a percentage of revenues (excluding the accelerated recognition of share-based payment awards in connection with the Spin-Off in February 2014) has been comparable to the corresponding period of the prior year. Accordingly, while we benefited from sharing DG's cost structure prior to the Spin-Off, since the Spin-Off we have been able to control our corporate overhead expenses to a level reasonably consistent with the pre Spin-Off periods.

General

General	9 Months Ended
	Sep. 30, 2015
General [Abstract]
General	2. General Principles of Consolidation and Combination The consolidated and combined financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of our wholly-owned, and majority-owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation or combination. For the period prior to the Spin-Off, the carve-out financial statements have been prepared on a basis that management believes to be reasonable to reflect the results of operations and cash flows of the Company's operations, including portions of DG's corporate costs and administrative shared services. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. These financial statements have been prepared by us without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe the disclosures are adequate to make the information presented not misleading. The unaudited consolidated and combined financial statements reflect all adjustments, which are, in the opinion of management, of a normal and recurring nature and necessary for a fair presentation of our financial position as of the balance sheet dates, and the results of operations and cash flows for the periods presented. Seasonality Our business is seasonal. Revenues tend to be the highest in the fourth quarter as a large portion of our revenues follow the advertising spend or budgets of our customers which tend to be at their highest during the holiday season. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to the recoverability and useful lives of our long-lived assets, the adequacy of our allowance for doubtful accounts and credit memo reserves, contingent consideration and income taxes. We base our estimates on historical experience, future expectations and on other relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Effective November 1, 2014, we shortened the estimated remaining useful life of our Sizmek MDX platform assets from an average of 46 months to 20 months in anticipation of our new platform, which is currently in development. We anticipate the new platform will be operational by the end of 2015 and we expect to retire our existing platform by mid-2016. For the first nine months of 2015, this change increased our net loss and loss per share by $2.3 million and $0.08, respectively. Risk of Goodwill Impairment See Note 5 for a discussion of the risk of a future impairment of our goodwill. Assets and Liabilities of DG's TV Business Pursuant to the Separation and Redemption Agreement, DG contributed to us substantially all of its television business current assets and certain other assets existing on February 7, 2014, and we agreed to assume substantially all of DG's television business liabilities that existed on February 7, 2014 or were attributable to periods up to and including February 7, 2014. These net assets contributed were recorded at $78.5 million. The details of these assets and liabilities outstanding as of September 30, 2015 and December 31, 2014 were as follows (in thousands): Description September 30, 2015 December 31, 2014 Current assets of television business: Income tax receivables $ 748 $ 1,943 Trade accounts receivable 9 367 Springbox revenue sharing 200 160 Total $ 957 $ 2,470 Current liabilities of television business: Trade accounts payable $ — $ 165 Accrued liabilities 420 230 Total $ 420 $ 395 Non-current liabilities of television business: Uncertain tax positions $ 273 $ 260 Derivative Instruments We enter into foreign currency forward contracts and options to hedge a portion of the exposure to the variability in expected future cash flows resulting from changes in related foreign currency exchange rates between the New Israeli Shekel (“NIS”) and the U.S. Dollar. These transactions were designated as cash flow hedges, as defined by Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging.” ASC Topic 815 requires that we recognize derivative instruments as either assets or liabilities in our balance sheet at fair value. These contracts are Level 2 fair value measurements in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures.” For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss), net of taxes, and reclassified into earnings (various operating expenses) in the same period or periods during which the hedged transaction affects earnings. Our cash flow hedging strategy is to hedge against the risk of overall changes in cash flows resulting from certain forecasted foreign currency rent and salary payments during the next twelve months. We hedge portions of our forecasted expenses denominated in the NIS with a single counterparty using foreign currency forward contracts and options. At September 30, 2015, we had $16.2 million notional amount of foreign currency forward contracts and options outstanding that had a net fair value liability balance of $0.1 million ($0.3 million liability, net of a $0.2 million asset). At December 31, 2014, we had $14.3 million notional amount of foreign currency forward contracts and options outstanding that had a net fair value liability balance of $0.1 million ($0.2 million liability, net of a $0.1 million asset). The net liability at September 30, 2015 is included in accrued liabilities and is expected to be recognized in our results of operations in the next twelve months. The net liability at December 31, 2014 was also included in accrued liabilities. The vast majority of any gain or loss from hedging activities is included in our various operating expenses. As a result of our hedging activities, we incurred the following gains and losses in our results of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Hedging gain (loss) recognized in operations $ (24 ) $ 6 $ (71 ) $ 121 It is our policy to offset fair value amounts recognized for derivative instruments executed with the same counterparty. In connection with our foreign currency forward contracts and options and other banking arrangements, we have agreed to maintain $1.5 million of cash in bank accounts with our counterparty, which we classify as restricted cash on our balance sheet. Accumulated Other Comprehensive Income (Loss) Components of accumulated other comprehensive income (loss) (“AOCI” or “AOCL”), net of tax, for the three and nine months ended September 30, 2015 and 2014 were as follows (in thousands): Three Months Ended September 30, 2015 Foreign Currency Translation Unrealized Gains (Losses) Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2015 $ (2,896 ) $ 276 $ 1,021 $ (1,599 ) Other comprehensive loss before reclassifications (805 ) (403 ) (176 ) (1,384 ) Amounts reclassified out of AOCL — 22 — 22 Net current period activity (805 ) (381 ) (176 ) (1,362 ) Balance at September 30, 2015 $ (3,701 ) $ (105 ) $ 845 $ (2.961 ) Nine Months Ended September 30, 2015 Foreign Currency Translation Unrealized Gains (Losses) Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (2,672 ) $ (98 ) $ 1,255 $ (1,515 ) Other comprehensive loss before reclassifications (1,029 ) (71 ) (410 ) (1,510 ) Amounts reclassified out of AOCL — 64 — 64 Net current period activity (1,029 ) (7 ) (410 ) (1,446 ) Balance at September 30, 2015 $ (3,701 ) $ (105 ) $ 845 $ (2,961 ) Three Months Ended September 30, 2014 Foreign Currency Translation Unrealized Gains (Losses) on Foreign Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2014 $ (726 ) $ 24 $ 1,800 $ 1,098 Other comprehensive loss before reclassifications (989 ) (18 ) (157 ) (1,164 ) Amounts reclassified out of AOCI — (6 ) — (6 ) Net current period activity (989 ) (24 ) (157 ) (1,170 ) Balance at September 30, 2014 $ (1,715 ) $ — $ 1,643 $ (72 ) Nine Months Ended September 30, 2014 Foreign Currency Translation Unrealized Gains (Losses) on Foreign Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Other Comprehensive Income (Loss) Balance at December 31, 2013 $ (1,198 ) $ 116 $ 1,764 $ 682 Other comprehensive loss before reclassifications (517 ) (10 ) (121 ) (648 ) Amounts reclassified out of AOCI — (106 ) — (106 ) Net current period activity (517 ) (116 ) (121 ) (754 ) Balance at September 30, 2014 $ (1,715 ) $ — $ 1,643 $ (72 ) The following table summarizes the reclassifications from AOCI or AOCL to the consolidated and combined statements of operations for the three and nine months ended September 30, 2015 and 2014 (in thousands): Amounts Reclassified out of AOCI or AOCL Three Months Ended 2015 Three Months Ended 2014 Affected Line Items in the Consolidated and Gains (losses) on cash flow hedges: Foreign currency derivatives $ (2 ) $ 1 Cost of revenues Foreign currency derivatives (1 ) — Selling and marketing Foreign currency derivatives (13 ) 4 Research and development Foreign currency derivatives (4 ) 1 General and administrative Foreign currency derivatives (4 ) — Other, net Total before taxes (24 ) 6 Tax amounts 2 — Income (loss) after tax $ (22 ) $ 6 Amounts Reclassified out of AOCI or AOCL Nine Months Ended 2015 Nine Months Ended 2014 Affected Line Items in the Consolidated and Gains (losses) on cash flow hedges: Foreign currency derivatives $ (7 ) $ 12 Cost of revenues Foreign currency derivatives (3 ) 5 Selling and marketing Foreign currency derivatives (47 ) 58 Research and development Foreign currency derivatives (12 ) 16 General and administrative Foreign currency derivatives (2 ) 30 Other, net Total before taxes (71 ) 121 Tax amounts 7 (15 ) Income (loss) after tax $ (64 ) $ 106 Merger, Integration and Other Expenses Merger, integration and other expenses reflect the expenses incurred in (i) DG's Merger with Extreme Reach and our Spin-Off from DG, (ii) acquiring or disposing of a business, (iii) integrating an acquired operation (e.g., office closure costs) into the Company and (iv) certain other items of income or expense not deemed to be part of our core operations. A summary of our merger, integration and other expenses is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Description 2015 2014 2015 2014 Merger and Spin-Off (1) $ — $ 471 $ — $ 5,209 Severance 1 504 467 1,062 Integration and restructuring costs 1,057 912 2,127 1,867 Acquisition, legal and due diligence fees 33 153 763 191 Write-off (recovery) of TV business net assets (2) 356 (1,819 ) 94 (1,819 ) Total $ 1,447 $ 221 $ 3,451 $ 6,510 (1) - See discussion of Merger and Spin-Off under “Separation from Digital Generation, Inc.” in Note 1. (2) - Represents an increase (reduction) in expense due to realizing less (more) TV business net assets than originally estimated at the time of the Spin-Off. Israel Operations The majority of our research and development activities and a large portion of our accounting functions are performed in Herzliya, Israel. In total, about 26% of our workforce is located in Israel. As a result, we are subject to risks associated with operating in the Middle East. Recently Issued Accounting Guidance In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 modifies revenue recognition guidance for GAAP. Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, International Accounting Standards Board ("IASB") provided limited guidance on revenue recognition. Accordingly, the FASB and IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards ("IFRS"). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 by one year. is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. An entity shall adopt the amendments in ASU 2014-09 by either (i) retrospectively adjusting each prior reporting period presented or (ii) retrospectively adjusting for the cumulative effect of initially applying ASU 2014-09 at the date of initial adoption. We have not as yet determined (i) the extent to which we expect ASU 2014-09 will impact our reported revenues or (ii) the manner in which it will be adopted In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805)." an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	3. Fair Value Measurements ASC 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. We have classified our assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. The tables below set forth by level, assets and liabilities that were accounted for at fair value as of September 30, 2015 and December 31, 2014. The carrying values of our accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these financial instruments. The tables do not include cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands). Fair Value Measurements at September 30, 2015 Balance Sheet Location Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements Assets: Money market funds (a) $ 28,920 $ — $ — $ 28,920 Revenue sharing arrangement (b) — — 200 200 Marketable equity securities (c) 1,186 — — 1,186 Total $ 30,106 $ — $ 200 $ 30,306 Liabilities: Currency forward derivatives / options (d) $ — $ 130 $ — $ 130 Fair Value Measurements at December 31, 2014 Balance Sheet Location Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements Assets: Money market funds (a) $ 35,953 $ — $ — $ 35,953 Revenue sharing arrangement (b) — — 160 160 Marketable equity securities (c) 1,596 — — 1,596 Total $ 37,549 $ — $ 160 $ 37,709 Liabilities: Currency forward derivatives / options (d) $ — $ 113 $ — $ 113 (a) Included in cash and cash equivalents. (b) Included in current assets of TV business. (c) Included in other non-current assets. (d) Included in accrued liabilities. The fair value of our money market funds was determined based upon quoted market prices. The currency forward derivatives/options are derivative instruments whose value is based upon quoted market prices from various market participants. We have a zero cost basis in these derivative instruments. Our marketable equity securities relate to a single issuer and have a cost basis of $0.3 million. In connection with our Spin-Off from DG, DG contributed a revenue sharing asset to us that resulted from DG's sale of its Springbox unit. We are entitled to a percentage of the revenues collected by the business for three years after the closing date (June 1, 2012). Revenue sharing payments are generally made once a year. We have estimated the future revenues of Springbox based on the historical revenues and certain other factors, discounted to their present value. The following table provides a reconciliation of changes in the fair values of our Level 3 assets (in thousands): Revenue Sharing Arrangement Nine Months Ended 2015 Balance at beginning of year $ 160 Additions recognized in operating results 40 Balance at end of period $ 200 In connection with an acquisition of a business, we sometimes include a contingent consideration component of the purchase price based on (i) future revenues or (ii) future revenues and operating results (e.g., adjusted EBITDA), that require minimum thresholds be met before any earnout payment becomes due. Accordingly, there can be significant volatility in the earnout liability. Each reporting period, we review our estimates of the performance indicators (e.g., revenue, adjusted EBITDA) and the corresponding earnout levels achieved, discounted to their present values. The change in fair value is recorded in cost of revenues in the accompanying statements of operations. In connection with our acquisition of Republic Project, we agreed to make additional payments to the sellers if Republic's 2014 or 2015 revenues and adjusted EBITDA exceeded certain levels. As of September 30, 2015, we do not expect to make any payments with respect to the Republic Project contingent consideration arrangement. Abakus Convertible Notes In May 2014, we purchased $1.0 million of Abakus convertible promissory notes ("Convertible Notes") for $1.0 million. The Convertible Notes are due 90 days after written notice after the earlier of (i) May 30, 2016 or (ii) an occurrence of an Event of Default (as defined in the Convertible Notes). Abakus is a small private company that has developed a digital attribution software solution. The Convertible Notes bear interest at 5% per annum payable at maturity. The Convertible Notes are convertible into Abakus Series A Preferred Stock ("Series A Preferred") as follows: a) Automatic conversion if Abakus sells $2.0 million of Series A Preferred ("Qualified Financing"), whereupon the Convertible Notes shall be converted, at Sizmek's option, at either (i) 75% of the share price in the Qualified Financing, or (ii) the quotient of $7.0 million divided by the number of shares outstanding upon exercise of all dilutive securities, or b) Optional conversion at Sizmek's election if Abakus completes an Equity Financing (as defined in the Convertible Notes) that is not a Qualified Financing, whereupon the Convertible Notes shall be converted at 75% of the share price in the Equity Financing. In addition, upon a Change in Control, as defined in the Convertible Notes, the Convertible Notes shall be paid off at the greater of (i) the outstanding balance, or (ii) the amount the holder would have received upon conversion of the Convertible Notes. The Convertible Notes are considered held-to-maturity securities and are carried at amortized cost. The fair value of the Convertible Notes is not readily determinable. We are not aware of a market for the Convertible Notes. The Convertible Notes are included in other non-current assets.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2015
Acquisitions [Abstract]
Acquisitions	4. Acquisitions StrikeAd On May 28, 2015, we acquired substantially all the assets and operations, and assumed certain liabilities, of privately-held StrikeAd, Inc. and its affiliates (collectively, “StrikeAd”) for $8.8 million. The purchase price includes $7.7 million in cash paid at closing and deferred payment obligations totaling $1.1 million. StrikeAd operates a mobile demand side platform (“DSP”) based in the United Kingdom. We intend to combine the StrikeAd assets with our existing programmatic assets to build an end-to-end DSP for use by our customers. The objective of the transaction was to accelerate the development of our mobile technology in order to better serve the advertising community. We expect to realize operating synergies from this transaction. StrikeAd has been included in our results of operations since the date of closing. The $8.8 million purchase price was preliminarily allocated to the assets acquired and liabilities assumed based upon their estimated fair values. For estimation purposes, we preliminarily allocated $4.3 million to developed technology, $1.1 million to customer relationships and $11.1 million to goodwill. The developed technology and customer relationships acquired in the transaction are presently being amortized on a straight-line basis over 3.2 years and 5.7 years, respectively. The weighted average amortization period is 3.7 years. The goodwill and other intangible assets created in the acquisition are deductible for tax purposes. The acquired assets include $3.7 million of gross receivables, which we recognized at their estimated fair value of $3.5 million. For 2014, StrikeAd reported revenues of $11.0 million and a loss before income taxes of $6.2 million. For the period from the acquisition date through September 30, 2015, StrikeAd reported $3.0 million of revenues. The purchase price allocation is preliminary pending the completion of the valuation analysis. Pixel On September 4, 2014, we acquired all of the outstanding shares of Zestraco Investments Limited including its wholly-owned subsidiary PixelCo. D.O.O. (“Pixel”) for $0.45 million in cash and a deferred payment obligation of $0.05 million which was paid in December 2014. Pixel performed advertising service operations principally for us prior to our purchase and had no appreciable assets. The objective of the transaction was to bring in-house the group of technology service personnel that had been providing advertising operations service to us through a contract. We expect to realize operating synergies from this transaction. Pixel has been included in our results of operations since the date of closing. The $0.5 million purchase price was allocated to goodwill and is not deductible for income tax purposes. The purchase price allocation is final. Aerify Media On August 11, 2014, we acquired substantially all the assets and operations of privately-held Aerify Media LLC (“Aerify”), a firm specializing in mobile tracking and retargeting, for $5.625 million in cash and a $0.625 million deferred payment obligation due in one-year. Aerify's mobile in-app and web tracking technology expands our capabilities in the fast-growing mobile segment, adding both talent and technology to the platform. The objective of the transaction was to accelerate the development of our mobile technology in order to better serve the advertising community. We expect to realize operating synergies from this transaction. Aerify has been included in our results of operations since the date of closing. The $6.25 million purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values. We allocated $2.05 million to developed technology, $0.4 million to customer relationships and $3.8 million to goodwill. The developed technology and customer relationships acquired in the transaction are being amortized on a straight-line basis over 4 years and 5 years, respectively. The weighted average amortization period is 4.2 years. The goodwill and other intangible assets created in the acquisition are deductible for tax purposes. For 2013, Aerify reported revenues of $3.1 million and a loss before income taxes of $0.6 million. The purchase price allocation is final. Purchase Price Allocations The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the respective dates of acquisition for the above referenced transactions (in millions). Category StrikeAd (preliminary) Pixel Aerify Cash $ 0.1 $ — $ — Receivables 3.5 — — Other current assets 0.1 — — Customer relationships 1.1 — 0.4 Developed technology 4.3 — 2.1 Goodwill 11.1 0.5 3.8 Total assets acquired 20.2 0.5 6.3 Less liabilities assumed (11.4 ) — — Net assets acquired $ 8.8 $ 0.5 $ 6.3 Pro Forma Information The following pro forma information presents our results of operations for the nine months ended September 30, 2015 and 2014 as if the acquisitions of StrikeAd, Pixel and Aerify had occurred on January 1, 2014 (in thousands). A table of actual amounts is provided for reference. As Reported Nine Months Ended September 30, Unaudited Pro Forma Nine Months Ended September 30, 2015 2014 2015 2014 Revenue $ 117,241 $ 121,893 $ 120,794 $ 131,214 Net loss (23,390 ) (117,442 ) (25,709 ) (121,742 )

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2015
Goodwill [Abstract]
Goodwill	5. Goodwill We operate as a single reporting unit. Changes in the carrying value of our goodwill for the nine months ended September 30, 2015 were as follows (in thousands): Goodwill Accumulated Impairment Losses Net Carrying Value Balance at December 31, 2014 $ 380,681 $ (340,527 ) $ 40,154 Acquisition of StrikeAd 11,134 — 11,134 Balance at September 30, 2015 $ 391,815 $ (340,527 ) $ 51,288 We evaluate goodwill for possible impairment each year on December 31 st During the third quarter of 2014, we determined that indicators of potential impairment existed requiring us to perform an interim goodwill impairment test. As a result, we performed an extensive analysis to estimate the fair value of the Company using a discounted cash flow methodology. The analysis concluded that the implied fair value of the Company's goodwill was $98.2 million less than its carrying value, which we recorded as a goodwill impairment loss during the third quarter of 2014. ASC 350-20-35 allows an entity to assess qualitatively whether it is necessary to perform step one of the prescribed two-step annual goodwill impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, the two-step goodwill impairment test is not required. Since we had performed an extensive analysis of the fair value of the Company as of September 30, 2014, at December 31, 2014, we performed a qualitative assessment of our goodwill and determined that the two-step process was not necessary. During the third quarter of 2015, we considered our recent performance and the impact the acquisition of StrikeAd is likely to have on our long term performance. We also considered our future revenue growth, synergies and increases in operating leverage we expect to realize, our recent market capitalization and other qualitative factors. Taking into account these considerations, at September 30, 2015, we continue to believe the Company's fair value exceeds its carrying value and goodwill is not impaired. Risk of Future Impairment At December 31, 2014, based on our discounted cash flow model that uses our internal forecast, we determined the fair value of the Company was only slightly in excess of its carrying value. In preparing our discounted cash flow model, we made assumptions about future revenues and expenses for several periods to determine the cash flows that would result. As with any forecast, there is substantial risk our forecasted cash flows may fall short of our current expectations. If actual or expected future cash flows should fall sufficiently below our current forecast, we may be required to record another goodwill impairment charge. Future net cash flows are impacted by a variety of factors including revenues, operating margins, capital expenditures, income tax rates, and a discount rate.

Share-based Compensation

Share-based Compensation	9 Months Ended
	Sep. 30, 2015
Share-based Compensation [Abstract]
Share-based Compensation	6. Share-based Compensation Prior to our Spin-Off from DG on February 7, 2014, certain of our employees participated in DG's equity based incentive programs. Share-based compensation expense reflected in the accompanying financial statements up until February 7, 2014 relates to DG's stock plan awards and not to our stock awards. Immediately prior to completing the Spin-Off transaction, all outstanding equity awards became fully vested and were converted into shares of DG Common Stock to the extent the award had an intrinsic value. Equity awards with no intrinsic value were cancelled. DG's equity incentive plans were terminated in connection with the Merger Agreement (see Note 1). Below is a summary of our share-based compensation expense related to the stock awards (in thousands): Nine Months Ended September 30 , Description 2015 2014 DG stock options and RSUs awarded to our employees $ — $ 2,650 DG share-based awards allocated to us as part of corporate services — 3,817 Sizmek share-based awards granted 3,141 1,963 Total $ 3,141 $ 8,430 In the first quarter of 2015, Sizmek's Compensation Committee granted (i) 159,245 performance-based restricted stock units (“RSUs”), (ii) 192,867 time-based RSUs and (iii) 133,600 time-based stock options, to certain of our employees and directors. The RSUs and stock options expected to vest were valued at $2.8 million and $0.6 million, respectively. The awards (i) vest over periods ranging from one to three years, (ii) are subject to the employees' continued employment with us or the director's continued service on our Board of Directors, and (iii) with respect to the performance-based RSUs, are subject to reaching certain (a) revenue, (b) adjusted EBITDA and (c) free cash flow growth targets (i.e., performance conditions). In the second quarter of 2015, Sizmek's Compensation Committee granted (i) 87,251 performance-based RSUs, (ii) 361,112 time-based RSUs and (iii) 86,175 time-based stock options to certain of our employees. The RSUs and stock options expected to vest were valued at $3.4 million and $0.4 million, respectively. The awards (i) vest over periods ranging from one to three years, (ii) are subject to the employees' continued employment with us, and (iii) with respect to the performance-based RSUs, are subject to reaching certain (a) revenue, (b) adjusted EBITDA and (c) free cash flow growth targets (i.e., performance conditions). In the third quarter of 2015, Sizmek's Compensation Committee granted 5,230 time-based RSUs valued at less than $0.1 million to one of our employees. The award vests over three years and is subject to the employee's continued employment with us. Generally, the awards granted in 2015 vest on an accelerated basis upon the occurrence of the holder's (a) death, (b) termination by reason of disability, (c) termination without Cause (as defined) following a Change of Control (as defined) or (d) resignation for Good Reason (as defined) following a Change in Control. Unrecognized compensation costs related to unvested RSUs and stock options were $6.5 million at September 30, 2015.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Income Taxes	7. Income Taxes For the nine months ended September 30, 2015, our effective tax rate was 7.7% compared to 0.9% for the nine months ended September 30, 2014. The effective tax rates for each period differ from the expected federal statutory rate of 35.0% as a result of state and foreign income taxes; certain non-deductible expenses; and changes in our valuation allowances in the U.S. and state jurisdictions within the U.S. In the U.S. and state jurisdictions within the U.S., we have historically experienced tax losses. As a result, we do not recognize a tax benefit in the U.S. or state jurisdictions within the U.S. when we incur taxable losses as realization of those tax benefits is not more likely than not. Conversely, in certain foreign jurisdictions we report earnings and recognize a tax expense or benefit on that income in accordance with the tax statutes of those jurisdictions. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than not sustain the position following an audit. For tax positions meeting the more-likely-than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. During the nine months ended September 30, 2015, there were no additional uncertain tax positions. Interest and penalties related to uncertain tax positions are recognized in income tax expense. For each of the nine month periods ended September 30, 2015 and 2014, we recognized less than $0.1 million of interest or penalties related to uncertain tax positions in our financial statements. The changes in uncertain tax positions for the nine months ended September 30, 2015 and 2014 were as follows (in thousands): Nine Months Ended September 30, 2015 2014 Balance at beginning of year $ 1,507 $ 1,701 Changes for tax positions related to prior years (13 ) 362 Balance at end of period $ 1,494 $ 2,063 If we reduced our reserve for uncertain tax positions, it would result in our recognition of a tax benefit. As of September 30, 2015, we provided a valuation allowance against substantially all of our U.S. and state NOL carryforwards as ultimate realization of these NOLs was determined to be not more-likely-than not. Accordingly, we have NOL carryforwards available to us (should we have sufficient future taxable income to utilize them) that are not reflected in our consolidated balance sheets at September 30, 2015 and December 31, 2014. We are subject to U.S. federal income tax, income tax from multiple foreign jurisdictions including Israel and the United Kingdom, and income taxes of multiple state jurisdictions. U.S. federal, state and local income tax returns for 2011 through 2014 remain open to examination. Israeli and United Kingdom income tax returns remain open to examination for 2010 through 2014 and 2009 through 2014, respectively. Prior to our Spin-Off, our operating results had been included in DG's U.S. federal and state tax returns or tax returns of non-U.S. jurisdictions. Subsequent to our Spin-Off, we file stand-alone income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. Prior to our Spin-Off, we entered into a tax matters agreement with DG that governs the parties' respective rights, responsibilities and obligations with respect to taxes. The tax matters agreement generally provides that the filing of tax returns, the control of audit proceedings, and the payment of any additional tax liability relative to DG and its consolidated subsidiaries for periods prior to February 8, 2014 is our responsibility. We do not provide deferred taxes on the undistributed earnings of our non-U.S. subsidiaries in situations where our intention is to reinvest such earnings indefinitely. Furthermore, we believe our U.S. subsidiaries have significant net assets, liquidity, and other financial resources available to meet their operational and capital investment requirements such that we do not need to repatriate the undistributed earnings of our non-U.S. subsidiaries to the U.S.

Loss per Share

Loss per Share	9 Months Ended
	Sep. 30, 2015
Loss per Share [Abstract]
Loss per Share	8. Loss per Share Basic earnings (loss) per common share excludes dilution and is calculated by dividing net earnings (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per common share is calculated by dividing net earnings (loss) by the weighted-average number of common shares outstanding during the period, as adjusted for the potential dilutive effect of non-participating share-based awards such as stock options and RSUs. On February 7, 2014, 30.4 million shares of our common stock were distributed to DG stockholders in conjunction with the Spin-Off. For comparative purposes, and to provide a more meaningful calculation of the weighted-average shares outstanding, we have assumed this amount to be outstanding for any period presented prior to the Spin-Off in the calculation of weighted-average shares outstanding. The following table presents our loss per common share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30 , Nine Months Ended September 30 , 2015 2014 2015 2014 Net loss $ (7,548 ) $ (101,382 ) $ (23,390 ) $ (117,442 ) Weighted average common shares outstanding — basic 29,567 30,399 29,633 30,399 Dilutive securities — — — — Weighted average common shares outstanding - diluted 29,567 30,399 29,633 30,399 Basic and diluted loss per common share $ (0.26 ) $ (3.34 ) $ (0.79 ) $ (3.86 ) Antidilutive securities not included: Stock options and RSUs 862 847 979 847

Geographical Information and Pr

Geographical Information and Product Categories	9 Months Ended
	Sep. 30, 2015
Geographical Information and Product Categories [Abstract]
Geographical Information and Product Categories	9. Geographical Information and Product Categories We have one operating segment. Our chief operating decision maker is considered to be our Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the operating segment level. The following table summarizes our revenues by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: United States $ 21.918 $ 19,594 $ 62,493 $ 58,135 Europe, Middle East and Africa 10,783 10,522 31,954 36,149 Asia Pacific 5,609 6,506 16,680 18,918 Latin America 1,233 2,068 3,982 5,784 North America (excluding U.S.) 723 823 2,132 2,907 Total $ 40,266 $ 39,513 $ 117,241 $ 121,893 For the nine months ended September 30, 2015, about 47% of our revenues were attributable to foreign jurisdictions. However, no one country other than the United States represented more than 10% of our consolidated revenues. The following table summarizes our revenues by product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: Core products $ 28,727 $ 25,337 $ 82,151 $ 76,426 Rich media 4,142 10,043 19,255 33,220 Programmatic managed services 7,397 4,133 15,835 12,247 Total $ 40,266 $ 39,513 $ 117,241 $ 121,893 The following table summarizes our long-lived assets by country (in thousands): September 30, 2015 December 31, 2014 Long-Lived Assets: Israel $ 30,710 $ 24,818 United States 7,180 7,181 Other countries 1,747 2,037 Total $ 39,637 $ 34,036

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	10. Related Party Transactions Prior to the Spin-Off, DG provided certain management and administrative services to us. These services included, among others, accounting, treasury, audit, tax, legal, executive oversight, human resources, real estate, information technology and risk management. These expenses have been allocated to us on a basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount, or other measures. DG also allocated to us (i) merger, integration and other expenses and (ii) share-based compensation, largely based on revenues. DG's allocation of these expenses to us was as follows (in thousands): DG's Expense Allocation to Sizmek Nine Months Ended September 30, 2014 Management and administrative services $ 637 Merger, integration and other 4,038 Share-based compensation 3,817 Total $ 8,492 Included in the above allocations are costs of DG's employee benefit plans and other employee incentives. Employee benefits and incentives include 401(k) matching contributions, participation in DG's long-term incentive compensation award plans and healthcare plans. The employee benefit and incentive costs are reflected in the statements of operations and are classified consistently with how the underlying employee's salary and other compensation costs have been recorded. We consider the allocated cost for corporate services, employee benefits and incentives to be reasonable based on our utilization of such services. However, we believe the allocated cost for these services are different from the cost we would have incurred if we had been an independent publicly-traded company during those periods.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2015
Subsequent Event - Purchase of Point Roll [Abstract]
Subsequent Event - Purchase of Point Roll	11. Subsequent Event – Purchase of Point Roll On November 12, 2015, we acquired all of the shares of Point Roll, Inc. (“Point Roll”), from TEGNA, Inc. (“Seller”) for a total purchase price of $20 million, subject to adjustment. Point Roll is in the business of providing rich media and dynamic creative ad serving technologies that allow interactivity in online advertising, such as streaming video, polling, and e-mail and data collection. Of the total purchase price (i) $11 million was paid in cash at closing, (ii) $7 million will be paid one year after the closing date and (iii) $2 million will be paid one year after the closing date, subject to any indemnification claims. The purchase price was paid from cash on hand. Point Roll does not have any debt and its net working capital, as defined, is expected to be at least $8.5 million. We expect to realize certain operating synergies as we combine our existing operation with the business of Point Roll. In connection with the transaction, the Seller has agreed not to compete (as defined) with the business of Point Roll for a period of three years after the closing date. We have not as yet allocated the purchase price to the assets acquired and the liabilities assumed.

General (Policies)

General (Policies)	9 Months Ended
	Sep. 30, 2015
General [Abstract]
Principles of Consolidation and Combination	Principles of Consolidation and Combination The consolidated and combined financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of our wholly-owned, and majority-owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation or combination. For the period prior to the Spin-Off, the carve-out financial statements have been prepared on a basis that management believes to be reasonable to reflect the results of operations and cash flows of the Company's operations, including portions of DG's corporate costs and administrative shared services. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. These financial statements have been prepared by us without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe the disclosures are adequate to make the information presented not misleading. The unaudited consolidated and combined financial statements reflect all adjustments, which are, in the opinion of management, of a normal and recurring nature and necessary for a fair presentation of our financial position as of the balance sheet dates, and the results of operations and cash flows for the periods presented.
Seasonality	Seasonality Our business is seasonal. Revenues tend to be the highest in the fourth quarter as a large portion of our revenues follow the advertising spend or budgets of our customers which tend to be at their highest during the holiday season.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to the recoverability and useful lives of our long-lived assets, the adequacy of our allowance for doubtful accounts and credit memo reserves, contingent consideration and income taxes. We base our estimates on historical experience, future expectations and on other relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Effective November 1, 2014, we shortened the estimated remaining useful life of our Sizmek MDX platform assets from an average of 46 months to 20 months in anticipation of our new platform, which is currently in development. We anticipate the new platform will be operational by the end of 2015 and we expect to retire our existing platform by mid-2016. For the first nine months of 2015, this change increased our net loss and loss per share by $2.3 million and $0.08, respectively.
Risk of Goodwill Impairment	Risk of Goodwill Impairment See Note 5 for a discussion of the risk of a future impairment of our goodwill.
Assets and Liabilities of DG's TV Business	Assets and Liabilities of DG's TV Business Pursuant to the Separation and Redemption Agreement, DG contributed to us substantially all of its television business current assets and certain other assets existing on February 7, 2014, and we agreed to assume substantially all of DG's television business liabilities that existed on February 7, 2014 or were attributable to periods up to and including February 7, 2014. These net assets contributed were recorded at $78.5 million. The details of these assets and liabilities outstanding as of September 30, 2015 and December 31, 2014 were as follows (in thousands): Description September 30, 2015 December 31, 2014 Current assets of television business: Income tax receivables $ 748 $ 1,943 Trade accounts receivable 9 367 Springbox revenue sharing 200 160 Total $ 957 $ 2,470 Current liabilities of television business: Trade accounts payable $ — $ 165 Accrued liabilities 420 230 Total $ 420 $ 395 Non-current liabilities of television business: Uncertain tax positions $ 273 $ 260
Derivative Instruments	Derivative Instruments We enter into foreign currency forward contracts and options to hedge a portion of the exposure to the variability in expected future cash flows resulting from changes in related foreign currency exchange rates between the New Israeli Shekel (“NIS”) and the U.S. Dollar. These transactions were designated as cash flow hedges, as defined by Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging.” ASC Topic 815 requires that we recognize derivative instruments as either assets or liabilities in our balance sheet at fair value. These contracts are Level 2 fair value measurements in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures.” For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss), net of taxes, and reclassified into earnings (various operating expenses) in the same period or periods during which the hedged transaction affects earnings. Our cash flow hedging strategy is to hedge against the risk of overall changes in cash flows resulting from certain forecasted foreign currency rent and salary payments during the next twelve months. We hedge portions of our forecasted expenses denominated in the NIS with a single counterparty using foreign currency forward contracts and options. At September 30, 2015, we had $16.2 million notional amount of foreign currency forward contracts and options outstanding that had a net fair value liability balance of $0.1 million ($0.3 million liability, net of a $0.2 million asset). At December 31, 2014, we had $14.3 million notional amount of foreign currency forward contracts and options outstanding that had a net fair value liability balance of $0.1 million ($0.2 million liability, net of a $0.1 million asset). The net liability at September 30, 2015 is included in accrued liabilities and is expected to be recognized in our results of operations in the next twelve months. The net liability at December 31, 2014 was also included in accrued liabilities. The vast majority of any gain or loss from hedging activities is included in our various operating expenses. As a result of our hedging activities, we incurred the following gains and losses in our results of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Hedging gain (loss) recognized in operations $ (24 ) $ 6 $ (71 ) $ 121 It is our policy to offset fair value amounts recognized for derivative instruments executed with the same counterparty. In connection with our foreign currency forward contracts and options and other banking arrangements, we have agreed to maintain $1.5 million of cash in bank accounts with our counterparty, which we classify as restricted cash on our balance sheet.
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Components of accumulated other comprehensive income (loss) (“AOCI” or “AOCL”), net of tax, for the three and nine months ended September 30, 2015 and 2014 were as follows (in thousands): Three Months Ended September 30, 2015 Foreign Currency Translation Unrealized Gains (Losses) Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2015 $ (2,896 ) $ 276 $ 1,021 $ (1,599 ) Other comprehensive loss before reclassifications (805 ) (403 ) (176 ) (1,384 ) Amounts reclassified out of AOCL — 22 — 22 Net current period activity (805 ) (381 ) (176 ) (1,362 ) Balance at September 30, 2015 $ (3,701 ) $ (105 ) $ 845 $ (2.961 ) Nine Months Ended September 30, 2015 Foreign Currency Translation Unrealized Gains (Losses) Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (2,672 ) $ (98 ) $ 1,255 $ (1,515 ) Other comprehensive loss before reclassifications (1,029 ) (71 ) (410 ) (1,510 ) Amounts reclassified out of AOCL — 64 — 64 Net current period activity (1,029 ) (7 ) (410 ) (1,446 ) Balance at September 30, 2015 $ (3,701 ) $ (105 ) $ 845 $ (2,961 ) Three Months Ended September 30, 2014 Foreign Currency Translation Unrealized Gains (Losses) on Foreign Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2014 $ (726 ) $ 24 $ 1,800 $ 1,098 Other comprehensive loss before reclassifications (989 ) (18 ) (157 ) (1,164 ) Amounts reclassified out of AOCI — (6 ) — (6 ) Net current period activity (989 ) (24 ) (157 ) (1,170 ) Balance at September 30, 2014 $ (1,715 ) $ — $ 1,643 $ (72 ) Nine Months Ended September 30, 2014 Foreign Currency Translation Unrealized Gains (Losses) on Foreign Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Other Comprehensive Income (Loss) Balance at December 31, 2013 $ (1,198 ) $ 116 $ 1,764 $ 682 Other comprehensive loss before reclassifications (517 ) (10 ) (121 ) (648 ) Amounts reclassified out of AOCI — (106 ) — (106 ) Net current period activity (517 ) (116 ) (121 ) (754 ) Balance at September 30, 2014 $ (1,715 ) $ — $ 1,643 $ (72 ) The following table summarizes the reclassifications from AOCI or AOCL to the consolidated and combined statements of operations for the three and nine months ended September 30, 2015 and 2014 (in thousands): Amounts Reclassified out of AOCI or AOCL Three Months Ended 2015 Three Months Ended 2014 Affected Line Items in the Consolidated and Gains (losses) on cash flow hedges: Foreign currency derivatives $ (2 ) $ 1 Cost of revenues Foreign currency derivatives (1 ) — Selling and marketing Foreign currency derivatives (13 ) 4 Research and development Foreign currency derivatives (4 ) 1 General and administrative Foreign currency derivatives (4 ) — Other, net Total before taxes (24 ) 6 Tax amounts 2 — Income (loss) after tax $ (22 ) $ 6 Amounts Reclassified out of AOCI or AOCL Nine Months Ended 2015 Nine Months Ended 2014 Affected Line Items in the Consolidated and Gains (losses) on cash flow hedges: Foreign currency derivatives $ (7 ) $ 12 Cost of revenues Foreign currency derivatives (3 ) 5 Selling and marketing Foreign currency derivatives (47 ) 58 Research and development Foreign currency derivatives (12 ) 16 General and administrative Foreign currency derivatives (2 ) 30 Other, net Total before taxes (71 ) 121 Tax amounts 7 (15 ) Income (loss) after tax $ (64 ) $ 106
Merger, Integration and Other Expenses	Merger, Integration and Other Expenses Merger, integration and other expenses reflect the expenses incurred in (i) DG's Merger with Extreme Reach and our Spin-Off from DG, (ii) acquiring or disposing of a business, (iii) integrating an acquired operation (e.g., office closure costs) into the Company and (iv) certain other items of income or expense not deemed to be part of our core operations. A summary of our merger, integration and other expenses is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Description 2015 2014 2015 2014 Merger and Spin-Off (1) $ — $ 471 $ — $ 5,209 Severance 1 504 467 1,062 Integration and restructuring costs 1,057 912 2,127 1,867 Acquisition, legal and due diligence fees 33 153 763 191 Write-off (recovery) of TV business net assets (2) 356 (1,819 ) 94 (1,819 ) Total $ 1,447 $ 221 $ 3,451 $ 6,510 (1) - See discussion of Merger and Spin-Off under “Separation from Digital Generation, Inc.” in Note 1. (2) - Represents an increase (reduction) in expense due to realizing less (more) TV business net assets than originally estimated at the time of the Spin-Off.
Israel Operations	Israel Operations The majority of our research and development activities and a large portion of our accounting functions are performed in Herzliya, Israel. In total, about 26% of our workforce is located in Israel. As a result, we are subject to risks associated with operating in the Middle East.
Recently Issued Accounting Guidance	Recently Issued Accounting Guidance In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 modifies revenue recognition guidance for GAAP. Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, International Accounting Standards Board ("IASB") provided limited guidance on revenue recognition. Accordingly, the FASB and IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards ("IFRS"). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 by one year. is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. An entity shall adopt the amendments in ASU 2014-09 by either (i) retrospectively adjusting each prior reporting period presented or (ii) retrospectively adjusting for the cumulative effect of initially applying ASU 2014-09 at the date of initial adoption. We have not as yet determined (i) the extent to which we expect ASU 2014-09 will impact our reported revenues or (ii) the manner in which it will be adopted In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805)." an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period

General (Tables)

General (Tables)	9 Months Ended
	Sep. 30, 2015
General [Abstract]
Schedule of DG's assets and liabilities outstanding	Description September 30, 2015 December 31, 2014 Current assets of television business: Income tax receivables $ 748 $ 1,943 Trade accounts receivable 9 367 Springbox revenue sharing 200 160 Total $ 957 $ 2,470 Current liabilities of television business: Trade accounts payable $ — $ 165 Accrued liabilities 420 230 Total $ 420 $ 395 Non-current liabilities of television business: Uncertain tax positions $ 273 $ 260
Schedule of gains and losses recognized in consolidated results of operations due to hedging activities	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Hedging gain (loss) recognized in operations $ (24 ) $ 6 $ (71 ) $ 121
Schedule of components of accumulated other comprehensive income (loss) ("AOCI" or "AOCL"), net of tax	Three Months Ended September 30, 2015 Foreign Currency Translation Unrealized Gains (Losses) Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2015 $ (2,896 ) $ 276 $ 1,021 $ (1,599 ) Other comprehensive loss before reclassifications (805 ) (403 ) (176 ) (1,384 ) Amounts reclassified out of AOCL — 22 — 22 Net current period activity (805 ) (381 ) (176 ) (1,362 ) Balance at September 30, 2015 $ (3,701 ) $ (105 ) $ 845 $ (2.961 ) Nine Months Ended September 30, 2015 Foreign Currency Translation Unrealized Gains (Losses) Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (2,672 ) $ (98 ) $ 1,255 $ (1,515 ) Other comprehensive loss before reclassifications (1,029 ) (71 ) (410 ) (1,510 ) Amounts reclassified out of AOCL — 64 — 64 Net current period activity (1,029 ) (7 ) (410 ) (1,446 ) Balance at September 30, 2015 $ (3,701 ) $ (105 ) $ 845 $ (2,961 ) Three Months Ended September 30, 2014 Foreign Currency Translation Unrealized Gains (Losses) on Foreign Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2014 $ (726 ) $ 24 $ 1,800 $ 1,098 Other comprehensive loss before reclassifications (989 ) (18 ) (157 ) (1,164 ) Amounts reclassified out of AOCI — (6 ) — (6 ) Net current period activity (989 ) (24 ) (157 ) (1,170 ) Balance at September 30, 2014 $ (1,715 ) $ — $ 1,643 $ (72 ) Nine Months Ended September 30, 2014 Foreign Currency Translation Unrealized Gains (Losses) on Foreign Currency Derivatives Unrealized Gains (Losses) on Available for Sale Securities Total Other Comprehensive Income (Loss) Balance at December 31, 2013 $ (1,198 ) $ 116 $ 1,764 $ 682 Other comprehensive loss before reclassifications (517 ) (10 ) (121 ) (648 ) Amounts reclassified out of AOCI — (106 ) — (106 ) Net current period activity (517 ) (116 ) (121 ) (754 ) Balance at September 30, 2014 $ (1,715 ) $ — $ 1,643 $ (72 )
Summary of reclassifications from accumulated other comprehensive income (loss) to the consolidated and combined statements of operations	Amounts Reclassified out of AOCI or AOCL Three Months Ended 2015 Three Months Ended 2014 Affected Line Items in the Consolidated and Gains (losses) on cash flow hedges: Foreign currency derivatives $ (2 ) $ 1 Cost of revenues Foreign currency derivatives (1 ) — Selling and marketing Foreign currency derivatives (13 ) 4 Research and development Foreign currency derivatives (4 ) 1 General and administrative Foreign currency derivatives (4 ) — Other, net Total before taxes (24 ) 6 Tax amounts 2 — Income (loss) after tax $ (22 ) $ 6 Amounts Reclassified out of AOCI or AOCL Nine Months Ended 2015 Nine Months Ended 2014 Affected Line Items in the Consolidated and Gains (losses) on cash flow hedges: Foreign currency derivatives $ (7 ) $ 12 Cost of revenues Foreign currency derivatives (3 ) 5 Selling and marketing Foreign currency derivatives (47 ) 58 Research and development Foreign currency derivatives (12 ) 16 General and administrative Foreign currency derivatives (2 ) 30 Other, net Total before taxes (71 ) 121 Tax amounts 7 (15 ) Income (loss) after tax $ (64 ) $ 106
Summary of merger, integration and other expenses	Three Months Ended September 30, Nine Months Ended September 30, Description 2015 2014 2015 2014 Merger and Spin-Off (1) $ — $ 471 $ — $ 5,209 Severance 1 504 467 1,062 Integration and restructuring costs 1,057 912 2,127 1,867 Acquisition, legal and due diligence fees 33 153 763 191 Write-off (recovery) of TV business net assets (2) 356 (1,819 ) 94 (1,819 ) Total $ 1,447 $ 221 $ 3,451 $ 6,510 (1) - See discussion of Merger and Spin-Off under “Separation from Digital Generation, Inc.” in Note 1. (2) - Represents an increase (reduction) in expense due to realizing less (more) TV business net assets than originally estimated at the time of the Spin-Off.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements [Abstract]
Schedule of assets and liabilities accounted for at fair value	Fair Value Measurements at September 30, 2015 Balance Sheet Location Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements Assets: Money market funds (a) $ 28,920 $ — $ — $ 28,920 Revenue sharing arrangement (b) — — 200 200 Marketable equity securities (c) 1,186 — — 1,186 Total $ 30,106 $ — $ 200 $ 30,306 Liabilities: Currency forward derivatives / options (d) $ — $ 130 $ — $ 130 Fair Value Measurements at December 31, 2014 Balance Sheet Location Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements Assets: Money market funds (a) $ 35,953 $ — $ — $ 35,953 Revenue sharing arrangement (b) — — 160 160 Marketable equity securities (c) 1,596 — — 1,596 Total $ 37,549 $ — $ 160 $ 37,709 Liabilities: Currency forward derivatives / options (d) $ — $ 113 $ — $ 113 (a) Included in cash and cash equivalents. (b) Included in current assets of TV business. (c) Included in other non-current assets. (d) Included in accrued liabilities.
Schedule of reconciliation of changes in the fair values of Level 3 assets	Revenue Sharing Arrangement Nine Months Ended 2015 Balance at beginning of year $ 160 Additions recognized in operating results 40 Balance at end of period $ 200

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2015
Acquisitions [Abstract]
Summary of the estimated fair values of the assets acquired and liabilities assumed	Category StrikeAd (preliminary) Pixel Aerify Cash $ 0.1 $ — $ — Receivables 3.5 — — Other current assets 0.1 — — Customer relationships 1.1 — 0.4 Developed technology 4.3 — 2.1 Goodwill 11.1 0.5 3.8 Total assets acquired 20.2 0.5 6.3 Less liabilities assumed (11.4 ) — — Net assets acquired $ 8.8 $ 0.5 $ 6.3
Schedule of as reported and pro forma results of operations relating to acquisitions	As Reported Nine Months Ended September 30, Unaudited Pro Forma Nine Months Ended September 30, 2015 2014 2015 2014 Revenue $ 117,241 $ 121,893 $ 120,794 $ 131,214 Net loss (23,390 ) (117,442 ) (25,709 ) (121,742 )

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill [Abstract]
Schedule of changes in carrying value of goodwill	Goodwill Accumulated Impairment Losses Net Carrying Value Balance at December 31, 2014 $ 380,681 $ (340,527 ) $ 40,154 Acquisition of StrikeAd 11,134 — 11,134 Balance at September 30, 2015 $ 391,815 $ (340,527 ) $ 51,288

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Share-based Compensation [Abstract]
Summary of share-based compensation expense	Nine Months Ended September 30 , Description 2015 2014 DG stock options and RSUs awarded to our employees $ — $ 2,650 DG share-based awards allocated to us as part of corporate services — 3,817 Sizmek share-based awards granted 3,141 1,963 Total $ 3,141 $ 8,430

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Schedule of changes in uncertain tax positions	Nine Months Ended September 30, 2015 2014 Balance at beginning of year $ 1,507 $ 1,701 Changes for tax positions related to prior years (13 ) 362 Balance at end of period $ 1,494 $ 2,063

Loss per Share (Tables)

Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Loss per Share [Abstract]
Schedule of loss per common share	Three Months Ended September 30 , Nine Months Ended September 30 , 2015 2014 2015 2014 Net loss $ (7,548 ) $ (101,382 ) $ (23,390 ) $ (117,442 ) Weighted average common shares outstanding — basic 29,567 30,399 29,633 30,399 Dilutive securities — — — — Weighted average common shares outstanding - diluted 29,567 30,399 29,633 30,399 Basic and diluted loss per common share $ (0.26 ) $ (3.34 ) $ (0.79 ) $ (3.86 ) Antidilutive securities not included: Stock options and RSUs 862 847 979 847

Geographical Information and 27

Geographical Information and Product Categories (Tables)	9 Months Ended
	Sep. 30, 2015
Geographical Information and Product Categories [Abstract]
Schedule of revenues by geographic area	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: United States $ 21.918 $ 19,594 $ 62,493 $ 58,135 Europe, Middle East and Africa 10,783 10,522 31,954 36,149 Asia Pacific 5,609 6,506 16,680 18,918 Latin America 1,233 2,068 3,982 5,784 North America (excluding U.S.) 723 823 2,132 2,907 Total $ 40,266 $ 39,513 $ 117,241 $ 121,893
Schedule of revenues by product category	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: Core products $ 28,727 $ 25,337 $ 82,151 $ 76,426 Rich media 4,142 10,043 19,255 33,220 Programmatic managed services 7,397 4,133 15,835 12,247 Total $ 40,266 $ 39,513 $ 117,241 $ 121,893
Schedule of long-lived assets by country	September 30, 2015 December 31, 2014 Long-Lived Assets: Israel $ 30,710 $ 24,818 United States 7,180 7,181 Other countries 1,747 2,037 Total $ 39,637 $ 34,036

Related Party Transactions(Tabl

Related Party Transactions(Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Schedule of allocation of related party expenses	DG's Expense Allocation to Sizmek Nine Months Ended September 30, 2014 Management and administrative services $ 637 Merger, integration and other 4,038 Share-based compensation 3,817 Total $ 8,492

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2015item$ / shares	Dec. 31, 2014$ / shares	Feb. 07, 2014$ / shares
Basis of Presentation [Abstract]
Number of advertisers connected to audiences	17,000
Number of agencies connected to audiences	3,500
Number of countries in which entity operates	60
Minimum number of impressions served	1,400,000,000,000
Common stock, par value | $ / shares	$ 0.001	$ 0.001	$ 0.001
Per share distribution to DG shareholders | $ / shares			$ 3

General (Narrative) (Details)

General (Narrative) (Details) - Certain internally developed software [Member] - USD ($) $ / shares in Units, $ in Millions	Nov. 01, 2014	Oct. 31, 2014	Sep. 30, 2015
Useful Life [Line Items]
Estimated useful life	20 months	46 months
Reduction in net income due to change in estimated useful life			$ 2.3
Reduction in diluted earnings per share due to change in estimated useful life			$ 0.08

General (Assets And Liabilities

General (Assets And Liabilities Of DG's TV Business) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Feb. 07, 2014
Assets and Liabilities of DG's TV Business [Abstract]
Net assets of TV business contributed by DG			$ 78,500
Current assets of television business:
Income tax receivable	$ 748	$ 1,943
Trade accounts receivable	9	367
Springbox revenue sharing	200	160
Current assets of TV business	$ 957	2,470
Current liabilities of television business:
Trade accounts payable		165
Accrued liabilities	$ 420	230
Current liabilities of TV business	420	395
Non-current liabilities of television business:
Uncertain tax positions	$ 273	$ 260

General (Derivative Instruments

General (Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivative Instruments
Period for which certain forecasted foreign currency rent and salary payments are hedged			12 months
Notional amount of foreign currency forward contracts and options outstanding	$ 16,200		$ 16,200		$ 14,300
Net fair value asset (liability) balance of foreign currency forward contracts and options outstanding	(100)		(100)		(100)
Fair value liability balance of foreign currency forward contracts and options outstanding	300		300		200
Fair value asset balance of foreign currency forward contracts and options outstanding	200		200		100
Hedging gain (loss) recognized in operations	(24)	$ 6	(71)	$ 121
Restricted cash	$ 1,524		$ 1,524		$ 1,538

General (Components Of Accumula

General (Components Of Accumulated Other Comprehensive Income (Loss) (AOCI or AOCL), Net Of Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of the period	$ (1,599)	$ 1,098	$ (1,515)	$ 682
Other comprehensive loss before reclassifications	(1,384)	(1,164)	(1,510)	(648)
Amounts reclassified out of AOCL	22	(6)	64	(106)
Net current period activity	(1,362)	(1,170)	(1,446)	(754)
Balance at end of the period	(2,961)	(72)	(2,961)	(72)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of the period	(2,896)	(726)	(2,672)	(1,198)
Other comprehensive loss before reclassifications	$ (805)	$ (989)	$ (1,029)	$ (517)
Amounts reclassified out of AOCL
Net current period activity	$ (805)	$ (989)	$ (1,029)	$ (517)
Balance at end of the period	(3,701)	(1,715)	(3,701)	(1,715)
Unrealized Gains (Losses) on Foreign Currency Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of the period	276	24	(98)	116
Other comprehensive loss before reclassifications	(403)	(18)	(71)	(10)
Amounts reclassified out of AOCL	22	(6)	64	(106)
Net current period activity	(381)	$ (24)	(7)	$ (116)
Balance at end of the period	(105)		(105)
Unrealized Gains (Losses) on Available for Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of the period	1,021	$ 1,800	1,255	$ 1,764
Other comprehensive loss before reclassifications	$ (176)	$ (157)	$ (410)	$ (121)
Amounts reclassified out of AOCL
Net current period activity	$ (176)	$ (157)	$ (410)	$ (121)
Balance at end of the period	$ 845	$ 1,643	$ 845	$ 1,643

General (Reclassifications From

General (Reclassifications From AOCI Or AOCL To Consolidated And Combined Statements Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Affected Line Items in the Consolidated and Combined Statements of Operations [Line Items]
Cost of revenues	$ 17,031	$ 14,274	$ 45,183	$ 44,028
Selling and marketing	15,597	14,082	45,233	44,184
Research and development	3,816	3,300	10,393	10,041
General and administrative	5,005	4,276	14,298	17,464
Other, net	(58)	479	1,287	687
Loss before income taxes	(10,096)	(101,595)	(25,338)	(118,474)
Tax amounts	2,548	213	1,948	1,032
Net loss	(7,548)	(101,382)	(23,390)	(117,442)
Unrealized Gain (Loss) on Foreign Currency Derivatives [Member] | Foreign currency derivatives [Member] | Amounts Reclassified out of AOCI [Member]
Affected Line Items in the Consolidated and Combined Statements of Operations [Line Items]
Cost of revenues	(2)	$ 1	(7)	12
Selling and marketing	(1)		(3)	5
Research and development	(13)	$ 4	(47)	58
General and administrative	(4)	$ 1	(12)	16
Other, net	(4)		(2)	30
Loss before income taxes	(24)	$ 6	(71)	121
Tax amounts	2		7	(15)
Net loss	$ (22)	$ 6	$ (64)	$ 106

General (Merger, Integration An

General (Merger, Integration And Other Expenses) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
General [Abstract]
Merger and Spin-Off	[1]		$ 471		$ 5,209
Severance		$ 1	504	$ 467	1,062
Integration and restructuring costs		1,057	912	2,127	1,867
Acquisition, legal and due diligence fees		33	153	763	191
Write-off (recovery) of TV business net assets (2)	[2]	356	(1,819)	94	(1,819)
Total		$ 1,447	$ 221	$ 3,451	$ 6,510
[1]	See discussion of Merger and Spin-Off under “Separation from Digital Generation, Inc.” in Note 1.
[2]	Represents an increase (reduction) in expense due to realizing less (more) TV business net assets than originally estimated at the time of the Spin-Off.

General (Israel Operations) (De

General (Israel Operations) (Details)	9 Months Ended
	Sep. 30, 2015
General [Abstract]
Percentage of workforce in Israel	26.00%

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value Of Assets And Liabilities) (Details) - Recurring basis [Member] - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Assets:
Money market funds	[1]	$ 28,920	$ 35,953
Revenue sharing arrangement	[2]	200	160
Marketable equity securities	[3]	1,186	1,596
Total		30,306	37,709
Liabilities:
Currency forward derivatives/options		130	113	[4]
Quoted Prices in Active Markets (Level 1) [Member]
Assets:
Money market funds	[1]	$ 28,920	$ 35,953
Revenue sharing arrangement	[2]
Marketable equity securities	[3]	$ 1,186	$ 1,596
Total		$ 30,106	$ 37,549
Liabilities:
Currency forward derivatives/options				[4]
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Money market funds	[1]
Revenue sharing arrangement	[2]
Marketable equity securities	[3]
Total
Liabilities:
Currency forward derivatives/options		$ 130	$ 113	[4]
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Money market funds	[1]
Revenue sharing arrangement	[2]	$ 200	$ 160
Marketable equity securities	[3]
Total		$ 200	$ 160
Liabilities:
Currency forward derivatives/options				[4]
[1]	Included in cash and cash equivalents.
[2]	Included in current assets of TV business.
[3]	Included in other non-current assets.
[4]	Included in accrued liabilities.

Fair Value Measurements (Reconc

Fair Value Measurements (Reconciliation Of Changes In Fair Values Of Level 3 Assets) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Fair Value Measurements [Line Items]
Cost basis of currency forward derivative/options	$ 0
Marketable equity securities, cost basis	300
Revenue Sharing Arrangement [Member]
Reconciliation of changes in fair value of Level 3 assets
Balance at beginning of period	160
Additions recognized in operating results	40
Balance at end of period	$ 200

Fair Value Measurements (Abakus

Fair Value Measurements (Abakus Convertible Notes) (Details) - Convertible Notes [Member] - Abakus [Member] - USD ($) $ in Millions	1 Months Ended	17 Months Ended
	May. 31, 2014	Sep. 30, 2015
Fair Value Measurements [Line Items]
Amount of convertible notes purchased	$ 1
Payment for convertible notes	$ 1
Period of time convertible notes are due after written notice		90 days
Interest rate		5.00%
Amount of Abakus Series A preferred shares to be sold by Abakus for triggering automatic conversion		$ 2
Conversion price as a percentage of the share price in Qualified Financing		75.00%
Amount divided by the number of shares outstanding upon exercise of all dilutive securities to derive quotient for determining conversion price upon automatic conversion		$ 7
Conversion price as a percentage of the share price in the Equity Financing		75.00%

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended				4 Months Ended	12 Months Ended
	May. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Aug. 31, 2014	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Strike Ad [Member]
Business Acquisition [Line Items]
Acquisition date	May 28, 2015
Purchase price	$ 8,800
Cash consideration	7,700
Liabilities assumed	$ 1,100
Weighted average amortization period of intangible assets	3 years 8 months 12 days
Gross receivables amount	$ 3,700
Gross receivables fair value	$ 3,500
Revenues					$ 3,000
Reported revenues in fiscal year prior to purchase						$ 11,000
Reported loss before income taxes in fiscal year prior to purchase						$ 6,200
Strike Ad [Member] | Customer relationships [Member]
Business Acquisition [Line Items]
Weighted average amortization period of intangible assets	5 years 8 months 12 days
Strike Ad [Member] | Developed technology [Member]
Business Acquisition [Line Items]
Weighted average amortization period of intangible assets	3 years 2 months 12 days
Pixel [Member]
Business Acquisition [Line Items]
Acquisition date			Sep. 4, 2014
Cash consideration		$ 50	$ 450
Liabilities assumed			$ 50
Aerify [Member]
Business Acquisition [Line Items]
Acquisition date				Aug. 11, 2014
Cash consideration				$ 5,625
Liabilities assumed				$ 625
Weighted average amortization period of intangible assets				4 years 2 months 12 days
Reported revenues in fiscal year prior to purchase							$ 3,100
Reported loss before income taxes in fiscal year prior to purchase							$ 600
Aerify [Member] | Customer relationships [Member]
Business Acquisition [Line Items]
Weighted average amortization period of intangible assets				5 years
Aerify [Member] | Developed technology [Member]
Business Acquisition [Line Items]
Weighted average amortization period of intangible assets				4 years

Acquisitions (Summary of Estima

Acquisitions (Summary of Estimated Fair values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	May. 28, 2015	Dec. 31, 2014	Sep. 04, 2014	Aug. 11, 2014
Purchase Price Allocations
Goodwill	$ 51,288		$ 40,154
Strike Ad [Member]
Purchase Price Allocations
Cash		$ 100
Receivables		3,500
Other current assets		100
Customer relationships		1,100
Developed technology		4,300
Goodwill		11,100
Total assets acquired		20,200
Less liabilities assumed		(11,400)
Net assets acquired		$ 8,800
Pixel [Member]
Purchase Price Allocations
Cash
Receivables
Other current assets
Customer relationships
Developed technology
Goodwill				$ 500
Total assets acquired				$ 500
Less liabilities assumed
Net assets acquired				$ 500
Aerify [Member]
Purchase Price Allocations
Cash
Receivables
Other current assets
Customer relationships					$ 400
Developed technology					2,100
Goodwill					3,800
Total assets acquired					$ 6,300
Less liabilities assumed
Net assets acquired					$ 6,300

Acquisitions (Schedule of as Re

Acquisitions (Schedule of as Reported and Pro forma Results of Operations Relating to Acquisitions) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
As Reported
Revenues	$ 40,266	$ 39,513	$ 117,241	$ 121,893
Net loss	$ (7,548)	$ (101,382)	(23,390)	(117,442)
Unaudited Pro Forma, as if the acquisitions had occurred on January 1, 2014
Revenue			120,794	131,214
Net loss			$ (25,709)	$ (121,742)

Goodwill (Changes In Carrying V

Goodwill (Changes In Carrying Value Of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Goodwill
Balance at beginning of the period			$ 380,681
Acquisition of StrikeAd			11,134
Balance at end of the period	$ 391,815		391,815
Accumulated Impairment Losses
Balance at beginning of the period			$ (340,527)
Goodwill impairment loss		$ 98,196		$ 98,196
Balance at end of the period	$ (340,527)		$ (340,527)
Net Carrying Value
Balance at beginning of the period			40,154
Acquisition of StrikeAd			11,134
Balance at end of the period	$ 51,288		$ 40,154

Share-based Compensation (Share

Share-based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation [Abstract]
DG stock options and RSUs awarded to our employees		$ 2,650
DG share-based awards allocated to us as part of corporate services		3,817
Sizmek share-based awards granted	$ 3,141	1,963
Share-based compensation expense related to the stock awards	$ 3,141	$ 8,430

Share-based Compensation (Narra

Share-based Compensation (Narrative) (Details) - Sizmek Plan [Member] - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Share-based Compensation [Line Items]
Unrecognized compensation costs related to unvested RSUs and stock options	$ 6.5
Minimum [Member]
Share-based Compensation [Line Items]
Vesting period		1 year	1 year
Maximum [Member]
Share-based Compensation [Line Items]
Vesting period		3 years	3 years
Restricted Stock Units [Member]
Share-based Compensation [Line Items]
Value of RSUs granted in period		$ 3.4	$ 2.8
Restricted Stock Units [Member] | Performance Based [Member]
Share-based Compensation [Line Items]
Awards granted in period (in shares)		87,251	159,245
Restricted Stock Units [Member] | Time Based [Member]
Share-based Compensation [Line Items]
Awards granted in period (in shares)	5,230	361,112	192,867
Vesting period	3 years
Restricted Stock Units [Member] | Time Based [Member] | Minimum [Member]
Share-based Compensation [Line Items]
Value of RSUs granted in period	$ 0.1
Stock options [Member]
Share-based Compensation [Line Items]
Value of stock options granted in period		$ 0.4	$ 0.6
Stock options [Member] | Time Based [Member]
Share-based Compensation [Line Items]
Number of options granted (in shares)		86,175	133,600

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Taxes [Abstract]
Effective tax rate (as a percent)	7.70%	0.90%
Federal statutory tax rate (as a percent)	35.00%
Maximum interest or penalities related to uncertain tax positions	$ 0.1	$ 0.1

Income Taxes (Changes In Uncert

Income Taxes (Changes In Uncertain Tax Positions) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Changes in uncertain tax positions
Balance at beginning of year	$ 1,507	$ 1,701
Changes for tax positions related to prior years	(13)	362
Balance at end of period	$ 1,494	$ 2,063

Loss per Share (Earnings (Loss)

Loss per Share (Earnings (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Jul. 07, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Loss per Share [Abstract]
Net loss		$ (7,548)	$ (101,382)	$ (23,390)	$ (117,442)
Weighted average common shares outstanding - basic		29,567	30,399	29,633	30,399
Dilutive securities
Weighted average common shares outstanding - diluted		29,567	30,399	29,633	30,399
Basic loss per common share (in dollars per share)		$ (0.26)	$ (3.34)	$ (0.79)	$ (3.86)
Diluted loss per common share (in dollars per share)		$ (0.26)	$ (3.34)	$ (0.79)	$ (3.86)
Antidilutive securities not included:
Stock options and RSUs (in shares)		862	847	979	847
Common stock distributed in conjunction with the Spin-Off	30,400

Geographical Information and 49

Geographical Information and Product Categories (Revenues By Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Geographical information [Line Items]
Revenues	$ 40,266	$ 39,513	$ 117,241	$ 121,893
Percentage of revenue attributable to foreign jurisdictions			47.00%
United States [Member]
Geographical information [Line Items]
Revenues	21,918	19,594	$ 62,493	58,135
Europe, Middle East and Africa [Member]
Geographical information [Line Items]
Revenues	10,783	10,522	31,954	36,149
Asia Pacific [Member]
Geographical information [Line Items]
Revenues	5,609	6,506	16,680	18,918
Latin America [Member]
Geographical information [Line Items]
Revenues	1,233	2,068	3,982	5,784
North America (excluding U.S.) [Member]
Geographical information [Line Items]
Revenues	$ 723	$ 823	$ 2,132	$ 2,907

Geographical Information and 50

Geographical Information and Product Categories (Revenues By Product Category) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Geographical information [Line Items]
Revenues	$ 40,266	$ 39,513	$ 117,241	$ 121,893
Core products [Member]
Geographical information [Line Items]
Revenues	28,727	25,337	82,151	76,426
Rich media [Member]
Geographical information [Line Items]
Revenues	4,142	10,043	19,255	33,220
Programmatic managed services [Member]
Geographical information [Line Items]
Revenues	$ 7,397	$ 4,133	$ 15,835	$ 12,247

Geographical Information and 51

Geographical Information and Product Categories (Long-Lived Assets By Country) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Geographical information [Line Items]
Long-Lived Assets	$ 39,637	$ 34,036
Israel [Member]
Geographical information [Line Items]
Long-Lived Assets	30,710	24,818
United States [Member]
Geographical information [Line Items]
Long-Lived Assets	7,180	7,181
Other countries [Member]
Geographical information [Line Items]
Long-Lived Assets	$ 1,747	$ 2,037

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
DG's Expense Allocation to Sizmek
Management and administrative services		$ 637
Merger, integration and other		4,038
Share-based compensation		3,817
Total		$ 8,492

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent event [Member] - Point Roll [Member] $ in Millions	Nov. 12, 2015USD ($)
Subsequent event [Line items]
Acquisition date	Nov. 12, 2015
Purchase price	$ 20
Cash consideration	11
Consideration to be paid one year after the closing date	7
Consideration to be paid one year after the closing date, subject to any indemnification claims	2
Net working capital	$ 8.5
Term of period of agreement for not to compete the business	3 years