Commercehub (CHUBB) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Entity Information [Line Items]
Entity Registrant Name	COMMERCEHUB, INC.
Entity Central Index Key	1,665,658
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Amendment Flag	false
Common Series A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		13,522,640
Common Series B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		711,992
Common Series C
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		28,615,203

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 17,608	$ 19,337
Accounts receivable, net of allowances of $500 and $239, respectively	10,259	16,472
Prepaid income taxes	950	0
Prepaid expenses and other current assets	1,990	1,048
Total current assets	30,807	36,857
Note receivable—Parent	0	36,107
Capitalized software, net	7,460	7,189
Deferred services costs	5,157	4,956
Property and equipment, net	7,935	6,706
Intangibles, net	438	1,750
Goodwill	21,410	21,410
Deferred income taxes	11,045	38,825
Other long-term assets	1,209	0
Total assets	85,461	153,800
Current liabilities:
Accounts payable and accrued expenses	3,631	3,982
Accrued payroll and related expenses	5,952	5,538
Due to Parent	0	9,112
Income taxes payable	1,760	0
Deferred revenue	5,085	4,490
Share-based compensation liability	0	94,427
Total current liabilities	16,428	117,549
Deferred revenue, long-term	7,521	7,532
Share-based compensation liability, long-term	0	1,786
Long-term debt	41,000	0
Total liabilities	64,949	126,867
Equity:
Preferred stock, $0.01 par value. Authorized shares of 50,000,000; 0 shares issued and outstanding at September 30, 2016	0	0
Parent's investment	0	22,784
Additional paid-in capital	12,791	0
Retained earnings	7,293	4,149
Total equity	20,512	26,933
Total liabilities and equity	85,461	153,800
Common Series A
Equity:
Common stock	135	0
Common Series B
Equity:
Common stock	7	0
Common Series C
Equity:
Common stock	$ 286	$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Allowance for accounts receivable	$ 500	$ 239
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Series A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	13,521,949	13,521,949
Common stock, shares outstanding (in shares)	13,521,949	13,521,949
Common Series B
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,500,000	1,500,000
Common stock, shares issued (in shares)	711,992	711,992
Common stock, shares outstanding (in shares)	711,992	711,992
Common Series C
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	83,000,000	83,000,000
Common stock, shares issued (in shares)	28,613,837	28,613,837
Common stock, shares outstanding (in shares)	28,613,837	28,613,837

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Revenue, including related party revenue of $1,165, $1,172, $4,526, and $4,315, respectively	$ 22,478	$ 19,695	$ 67,671	$ 58,343
Cost of revenue	5,737	6,332	17,162	16,177
Gross profit	16,741	13,363	50,509	42,166
Operating expenses:
Research and development	5,077	3,378	13,391	11,016
Sales and marketing	3,023	2,808	9,024	7,834
General and administrative	8,008	8,475	23,207	28,501
Total operating expenses	16,108	14,661	45,622	47,351
Total operating expenses	633	(1,298)	4,887	(5,185)
Other (expense) income:
Interest expense	(361)	0	(405)	0
Interest income	0	156	273	432
Total other (expense) income	(361)	156	(132)	432
Income (loss) before income taxes	272	(1,142)	4,755	(4,753)
Income tax expense (benefit)	(438)	(521)	1,611	(1,647)
Net income (loss)	710	(621)	3,144	(3,106)
Total comprehensive income (loss)	$ 710	$ (621)	$ 3,144	$ (3,106)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.02	$ (0.01)	$ 0.07	$ (0.07)
Diluted (in dollars per share)	$ 0.02	$ (0.01)	$ 0.07	$ (0.07)
Shares used in computing earnings (loss) per share:
Basic (in shares)	42,773	42,703	42,773	42,703
Diluted (in shares)	43,559	42,703	43,559	42,703

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Related party revenue	$ 1,165	$ 1,172	$ 4,526	$ 4,315

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 3,144	$ (3,106)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	7,315	5,715
Amortization of debt issuance costs	55	0
Share-based compensation expense	8,753	24,332
Deferred income taxes	17,015	(9,503)
Bad debt expense	695	240
Accrued interest income	(273)	(432)
Loss on disposal of long-term assets	160	0
Change in operating assets and liabilities, net of acquisition:
Accounts receivable	5,667	5,577
Prepaid expenses and other assets	(956)	(267)
Prepaid income taxes	(950)	0
Deferred costs	(201)	(841)
Deferred revenue	266	2,058
Accounts payable and accrued expenses	479	(2,679)
Accrued payroll and related expenses	416	2,082
Income taxes payable	1,760	0
Share-based compensation liability payments	(86,684)	(3,619)
Parent receivables and payables, net	(9,112)	(260)
Net cash (used in) provided by operating activities	(52,451)	19,297
Cash flows from investing activities:
Purchases of property and equipment	(4,513)	(3,555)
Additions to capitalized software	(3,963)	(4,435)
Acquisition of business, net of cash acquired	0	(20,225)
Collection of note receivable - Parent	36,380	0
Net cash provided by (used in) investing activities	27,904	(28,215)
Cash flows from financing activities:
Borrowings on revolver	50,000	0
Payments on revolver	(9,000)	0
Cash paid for debt issuance costs	(1,100)	0
Purchase of treasury stock	(3,600)	(164)
Cash received from exercise of stock options	248	26
Borrowings on note payable - Parent	28,664	0
Payments on note payable - Parent	(28,664)	0
Contribution from Parent	6,000	0
Dividends paid to Parent	(19,730)	0
Net cash provided by (used in) financing activities	22,818	(138)
Currency effect on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	(1,729)	(9,056)
Cash and cash equivalents, beginning of period	19,337	26,385
Cash and cash equivalents, end of period	17,608	17,329
Supplemental disclosure of non-cash investing and financing activities:
Contractual obligations for acquisition of capitalized software	$ 58	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Common StockCommon Series A	Common StockCommon Series B	Common StockCommon Series C	APIC	Parent's Investment	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2015			0	0	0
Beginning balance at Dec. 31, 2015	$ 26,933	$ 0				$ 0	$ 22,784	$ 4,149
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,144							3,144
Exercise of stock options	73						73
Contribution from Parent	6,000						6,000
Dividends paid to Parent	(19,730)						(19,730)
Change in capitalization in connection with the Spin-Off (in shares)			13,522,288	711,992	28,468,562
Change in capitalization in connection with the Spin-Off	0	427				8,700	(9,127)
Issuance of minority shares (in shares)					109,354
Issuance of minority shares	0	1				(1)
Share-based compensation expense	2,193					2,193
Reclassification of share-based compensation liability	12,489					12,489
Forfeiture of net operating losses to Parent	(10,765)					(10,765)
Exercise of stock options (in shares)					36,503
Exercise of stock options	175					175
Issuance of restricted stock units (in shares)			2		7
Cancellation of restricted shares (in shares)			(341)		(589)
Ending balance (in shares) at Sep. 30, 2016			13,521,949	711,992	28,613,837
Ending balance at Sep. 30, 2016	$ 20,512	$ 428				$ 12,791	$ 0	$ 7,293

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business CommerceHub, Inc. ("CommerceHub", the "Company", "us", "we", and "our") was founded in 1997 and is headquartered in Albany, New York. The Company operates as a single segment and specializes in the electronic integration of supply chains for e-commerce fulfillment. CommerceHub's platform includes supply, demand, and delivery solutions which provide our customers with a single platform to source and market the products consumers desire and to have those products delivered more rapidly to the consumer's doorstep. Recent Events Spin-Off from Liberty Interactive Corporation During November 2015, the board of directors of Liberty Interactive Corporation, our former parent company ("Liberty" or "Parent"), authorized a plan to distribute to the holders of Liberty's Series A and Series B Liberty Ventures common stock, shares of CommerceHub, Inc. (the "Spin-Off"), a newly formed Delaware corporation that, pursuant to an internal restructuring, effective July 21, 2016 became the parent of Commerce Technologies, LLC, a Delaware limited liability company that, as a result of the restructuring, is the successor to Commerce Technologies, Inc. ("CTI"), the entity through which CommerceHub transacted prior to the Spin-Off. The Spin-Off was completed on July 22, 2016 and was effected as a pro rata dividend of shares of CommerceHub to the stockholders of Series A and Series B Liberty Ventures common stock of Liberty. The Spin-Off was structured to be tax-free. Following the Spin-Off, CommerceHub now operates as a stand-alone publicly traded company, and neither Liberty nor CommerceHub has any stock ownership, beneficial or otherwise, in the other. In connection with the Spin-Off, CommerceHub entered into certain agreements (effective the date of the Spin-Off) with Liberty and/or Liberty Media Corporation ("Liberty Media"), which are further discussed in Note 8 to these condensed consolidated financial statements. In July 2016, the Company had cash inflows and outflows in conjunction with the Spin-Off, which include: • Borrowed $50.0 million under our credit facility (see Note 13) to fund cash outflows described below; • Fully repaid our note payable due to Liberty, including accrued interest, of $28.7 million and amounts due for state taxes paid of $1.3 million ; • Paid a dividend of $18.9 million to the holders of CTI common stock, including Parent, and $0.9 million to a Parent, as holders of CTI preferred shares on the record date for the Spin-Off; • Collected amounts due from Liberty for federal tax benefits of $8.5 million (see Note 12 for further discussion of tax related transactions that occurred in connection with the Spin-Off); and • Received a contribution from Liberty of $6.0 million to compensate the Company for the dilution associated with Parent equity awards.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of CommerceHub, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements, which have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair presentation of our financial position, results of comprehensive income (loss) and cash flows, and changes in equity for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2015 consolidated balance sheet data was derived from our audited financial statements at that date. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained within Amendment No. 3 to the Company's Registration Statement on Form S-1 (File No. 333-210508) filed with the Securities and Exchange Commission (the "SEC") on July 14, 2016 and declared effective on July 15, 2016 (the "Registration Statement"). Use of Estimates Preparing these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. Reclassifications We made certain reclassifications to our condensed consolidated financial statements which include reclassifying certain sales taxes, in the amounts of $26 thousand and $492 thousand for the three- and nine -month periods ended September 30, 2015 , respectively, from cost of revenue to sales and marketing to comply with our current policy for presenting such costs.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies During the nine months ended September 30, 2016 , there were no material changes in our significant accounting policies. Please see Note 3 to our consolidated financial statements included in the Registration Statement, for additional information regarding our significant accounting policies.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) ("ASU 2014-09"). This topic provides for five principles which should be followed to determine the appropriate amount and timing of revenue recognition for the transfer of goods and services to customers. The principles in ASU 2014-09 should be applied to all contracts with customers regardless of industry. The amendments in ASU 2014-09 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with two transition methods of adoption allowed. Early adoption for reporting periods prior to December 15, 2016 is not permitted. In March 2015, the FASB voted to defer the effective date by one year, but to allow adoption as of the original adoption date. In May 2016, FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers" (Topic 606) Principal versus Agent Considerations, (Reporting Revenue Gross versus Net) . This update was to further clarify the implementation guidance on principal versus agent considerations in the previously issued ASU No. 2014-09. ASU No. 2016-08 has no impact on the adoption date of the previously issued update. We are evaluating the financial statement impacts of the guidance in ASU 2014-09 and determining which transition method we will utilize. In February 2016, the FASB issued ASU No. 2016-02 "Leases" (Topic 842) ("ASU No. 2016-02"). This topic provides that a lessee should recognize the assets and liabilities that arise from leases. Topic 842 requires an entity to separate the lease components from the nonlease components in a contract. This ASU intended to improve financial reporting about leasing transactions. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018. We are evaluating the financial statement impact this update will have on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU No. 2016-09"), which is intended to improve the accounting for share-based payment transactions as part of the FASB's simplification initiative. ASU No. 2016-09 changed the aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. We are evaluating the financial statement impact this update will have on the consolidated financial statements.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share For all periods prior to the Spin-Off, basic and diluted earnings (loss) per common share is computed by dividing net income (loss) for the respective period by 42,702,842 common shares, which is the aggregate number of 13,522,288 shares of Series A common stock, 711,992 shares Series B common stock, and 28,468,562 shares of Series C common stock issued upon completion of the Spin-Off on July 22, 2016 . The shares used in the calculation of diluted earnings per share for periods prior to the Spin-Off exclude the following issuances, which occurred following the Spin-Off and subsequent to such periods (a) 109,354 shares of common stock issued to pre-Spin-Off minority shareholders of CTI; and (b) 7,362,933 outstanding awards to purchase shares of our common stock. For all periods occurring after the Spin-Off, basic earnings (loss) per common share is computed by dividing net income (loss) for the respective period by the weighted average number of common shares outstanding for the period beginning at the Spin-Off through the last day of the reporting period. Diluted earnings (loss) per share gives effect to all dilutive potential shares outstanding resulting from employee stock options, restricted stock units, and performance share units during that period. The following table sets forth net income (loss) and the basic and diluted shares used to calculate earnings per share for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income (loss) $ 710 $ (621 ) $ 3,144 $ (3,106 ) Basic - weighted average shares outstanding 42,773 42,703 42,773 42,703 Effect of dilutive potential securities 786 — 786 — Diluted - weighted average shares outstanding 43,559 42,703 43,559 42,703 Anti-dilutive securities 5,034 — 5,034 — The shares used in the calculation of diluted earnings per share for periods following the Spin-Off exclude (a) options to purchase shares where the exercise price was greater than the average market price of common shares for the period, using the treasury-stock method, and therefore the effect of the inclusion would be anti-dilutive and (b) performance share units where the performance criteria has not been met as of the reporting date.

Acquisition of Mercent Corporat

Acquisition of Mercent Corporation	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Acquisition of Mercent Corporation	Acquisition of Mercent Corporation On January 8, 2015, the Company acquired 100% of the shares of Mercent Corporation ("Mercent"), an online marketing technology and service company that helps merchants optimize performance across online channels, for total cash consideration of approximately $20.2 million , net of cash acquired. During the nine -month period ended September 30, 2015 , the Company incurred transaction-related costs of approximately $166 thousand , which are included in general and administrative expenses. No additional transaction-related costs were incurred in the nine -month period ended September 30, 2016 . Under the acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair value, as follows (in thousands): Cash $ 41 Accounts receivable 2,559 Prepaid expenses 87 Property and equipment 336 Customer relationships 2,000 Developed software technology 1,500 Deferred tax assets 3,580 Goodwill 12,390 Accounts payable and accrued expenses (2,015 ) Deferred revenue (212 ) 20,266 Methodologies used in valuing the intangible assets included, but were not limited to, the multiple period excess earnings method for developed software technology and customer relationships. The excess of the purchase price over the total net identifiable assets has been recorded as goodwill, which includes synergies expected from the expanded service capabilities and the value of the assembled work force. For federal income tax purposes, the transaction is treated as a stock acquisition and the goodwill is no t deductible.

Concentrations of Significant C

Concentrations of Significant Customers and Credit Risk	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
Concentrations of Significant Customers and Credit Risk	Concentrations of Significant Customers and Credit Risk Our revenue model, in large part, is based on retailer and supplier program relationships whereby many supplier transactions may be attributable to a single retailer. Significant customer concentrations contemplate the total program revenues (retailers and related suppliers) and receivables generated by these customers. In each of the nine -month periods ended September 30, 2016 and September 30, 2015 , one customer's total program revenues accounted for more than 10% of total revenue. No customer represented more than 10% of accounts receivable at September 30, 2016 .

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions (a) Transactions with QVC We provide our solutions to QVC, Inc. (“QVC”), which is a wholly owned subsidiary of Liberty. For future reporting on periods that do not include pre-Spin-Off periods, we do not expect QVC to be a related person of CommerceHub because neither Liberty nor CommerceHub has any stock ownership, beneficial or otherwise, in the other following the Spin-Off. For each of the nine -month periods ended September 30, 2016 and 2015 , total program revenues with QVC (including QVC and suppliers transacting with QVC on our platform) accounted for approximately 7% of total revenue. We had receivables relating to ordinary business with QVC of approximately $248 thousand and $511 thousand at September 30, 2016 and December 31, 2015 , respectively. (b) Transactions with Liberty In previous periods, we had outstanding a promissory note as a lender to Liberty, presented as note receivable - Parent on the condensed consolidated balance sheets. This note carried an interest rate based on one-year LIBOR plus 100 basis points . In the three months ended June 30, 2016, Liberty fully repaid amounts outstanding of $36.4 million pursuant to this promissory note, including accumulated interest of $2.4 million. During June 2016, to assist the Company in meeting its financial obligations under the SAR Plan and Liquidity Program (see Note 11), the Company entered into a funding arrangement with Liberty pursuant to a previously established intercompany funding agreement, under which Liberty agreed to loan the Company cash at current market interest rates, or make additional equity investments in common stock. During the three-months ended September 30, 2016 , amounts outstanding pursuant to this arrangement, including accumulated interest, were repaid to Liberty by the Company using borrowings under our credit facility (see Note 13). The funding agreement between the Company and Liberty was terminated as of the Spin-Off. CommerceHub entered into certain agreements (effective July 22, 2016) with Liberty and/or Liberty Media, including a reorganization agreement, a services agreement and a tax sharing agreement. The reorganization agreement provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the Spin-Off, certain conditions to the Spin-Off and provisions governing the relationship between CommerceHub and Liberty with respect to and resulting from the Spin-Off. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Liberty and CommerceHub and other agreements related to tax matters. Pursuant to the services agreement, Liberty Media provides CommerceHub with general and administrative services including legal, tax, accounting, treasury and investor relations support related to necessary public-company functions. CommerceHub must reimburse Liberty Media for direct, out-of-pocket expenses incurred by Liberty Media in providing these services, and CommerceHub will pay a services fee to Liberty Media under the services agreement. Liberty Media and CommerceHub will evaluate all charges under the services agreement for reasonableness on a quarterly basis and make such adjustments to these charges as the parties mutually agree. Amounts owed to Liberty at September 30, 2016 of $446 thousand in connection with these agreements is included in accounts payable and accrued expenses on the condensed consolidated balance sheet.

Capitalized Software Costs

Capitalized Software Costs	9 Months Ended
	Sep. 30, 2016
Research and Development [Abstract]
Capitalized Software Costs	Capitalized Software Costs Capitalized software costs, net is comprised of the following (in thousands): September 30, December 31, Capitalized software costs $ 42,051 $ 41,120 Less accumulated amortization (34,591 ) (33,931 ) Capitalized software costs, net $ 7,460 $ 7,189 Amortization expense related to capitalized software costs is included in cost of revenue and was approximately $3.8 million and $2.4 million for the nine -month periods ended September 30, 2016 and 2015 , respectively. Future amortization expense of existing capitalized software costs as of September 30, 2016 is expected to be as follows for the years ending December 31, (in thousands): Remainder of 2016 $ 1,262 2017 4,290 2018 1,737 2019 171 2020 and thereafter — $ 7,460 Intangible Assets Intangibles assets acquired as of September 30, 2016 and December 31, 2015 , respectively, are as follows (in thousands): September 30, 2016 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (1,312 ) $ 188 Customer relationships 2.0 2,000 (1,750 ) 250 Total $ 3,500 $ (3,062 ) $ 438 December 31, 2015 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (750 ) $ 750 Customer relationships 2.0 2,000 (1,000 ) 1,000 Total $ 3,500 $ (1,750 ) $ 1,750 Amortization expense related to intangible assets was $1.3 million for the nine -month periods ended September 30, 2016 and 2015 . Future amortization expense for intangible assets as of September 30, 2016 is $438 thousand , and is expected to be recognized during the remainder of 2016 .

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Capitalized Software Costs Capitalized software costs, net is comprised of the following (in thousands): September 30, December 31, Capitalized software costs $ 42,051 $ 41,120 Less accumulated amortization (34,591 ) (33,931 ) Capitalized software costs, net $ 7,460 $ 7,189 Amortization expense related to capitalized software costs is included in cost of revenue and was approximately $3.8 million and $2.4 million for the nine -month periods ended September 30, 2016 and 2015 , respectively. Future amortization expense of existing capitalized software costs as of September 30, 2016 is expected to be as follows for the years ending December 31, (in thousands): Remainder of 2016 $ 1,262 2017 4,290 2018 1,737 2019 171 2020 and thereafter — $ 7,460 Intangible Assets Intangibles assets acquired as of September 30, 2016 and December 31, 2015 , respectively, are as follows (in thousands): September 30, 2016 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (1,312 ) $ 188 Customer relationships 2.0 2,000 (1,750 ) 250 Total $ 3,500 $ (3,062 ) $ 438 December 31, 2015 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (750 ) $ 750 Customer relationships 2.0 2,000 (1,000 ) 1,000 Total $ 3,500 $ (1,750 ) $ 1,750 Amortization expense related to intangible assets was $1.3 million for the nine -month periods ended September 30, 2016 and 2015 . Future amortization expense for intangible assets as of September 30, 2016 is $438 thousand , and is expected to be recognized during the remainder of 2016 .

Share-Based Awards

Share-Based Awards	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Awards	Share-Based Awards The Company grants, to certain of its employees, board members and consultants, awards to purchase shares of its common stock. Prior to the Spin-Off, the Company's share-based awards consisted of stock options and stock appreciation rights ("SARs") (collectively, "CommerceHub Options and SARs"). Some of these awards contain service conditions (typically 4 years ) and some of these awards contain both service- and milestone-based conditions. Included in the condensed consolidated statements of comprehensive income (loss) are the following amounts of share-based compensation (amounts in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of revenue $ (49 ) $ 806 $ (207 ) $ 1,383 Research and development 584 1,215 1,697 4,347 Sales and marketing 103 870 704 2,411 General and administrative 1,555 4,623 6,559 16,191 $ 2,193 $ 7,514 $ 8,753 $ 24,332 The Company estimates the fair value of the stock options and SARs granted using a Black-Scholes pricing model. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results differ from the Company's estimates, such amounts are recorded as an adjustment in the period estimates are revised. In valuing share-based awards, significant judgment is required in determining the fair value of the Company's share price, the expected volatility of common stock, and the expected term individuals will hold their share-based awards prior to exercise. With the assistance of an independent third-party advisory firm, for the three and nine months ended September 30, 2015 and the three months ended March 31, 2016, we estimated share-price based on an internal valuation using income and market based approaches. For the three months ended June 30, 2016, the estimated share-price input was based on the fair market value of CommerceHub's Series C common stock traded immediately following the Spin-Off. For awards granted subsequent to the Spin-Off, the share-price input is based on the closing price of our Series C common stock on the date of grant. Expected volatility of the stock is based on the Company's peer group in the industry in which the Company does business because the Company does not have sufficient historical volatility data for its own stock. The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. Additionally, the Black-Scholes pricing model requires the input of other assumptions, including the risk-free interest rate and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of the Company's share-based awards. The Company assumed a zero dividend yield as, following the Spin-Off, we do not expect to pay any cash dividends in the foreseeable future. Prior to the Spin-Off all of the Company's share-based awards were classified as liability awards as the SARs could have been settled in cash and the stock options could have been settled in cash at the option of the holder under the Liquidity Program as discussed below. The Company measured the cost of services received in exchange for a liability classified award based on the current fair value of the award, and remeasured the fair value of the award at each reporting date. In connection with the Spin-Off, the outstanding CTI equity incentive awards were adjusted, such that each holder of an option award or a SAR with respect to shares of CTI common stock received an option award to purchase shares of our Series C common stock, with the exercise price and number of shares subject to such new option awards based on the exercise price of and number of shares subject to the original CTI option or original SAR and the exchange ratio used in the internal restructuring with respect to the CTI minority holders. On July 22, 2016, 45,450 options and 2,042,220 SARs then-outstanding were converted to 99,151 options and 4,455,460 options to purchase shares of our Series C common stock, respectively. Unlike the original CommerceHub Options and SARs, which were able to be settled in cash prior to completion of the Spin-Off, the new option awards resulting from the conversion of the original CommerceHub Options and SARs may only be settled in shares of CommerceHub's Series C common stock. Except as described above, the terms of these new option awards (including, for example, the vesting terms thereof) are, in all material respects, the same as those of the corresponding original option or SAR award. Additionally, our internal restructuring in connection with the Spin-Off resulted in a modification of the terms and conditions of the outstanding equity awards upon the Spin-Off, and the classification of the awards from liability to equity awards. As of the July 21, 2016 modification date, the Company performed a fair value analysis of the awards immediately before and immediately after the restructuring. As the Company’s pre-Spin-Off share-based award plans (further described below) contained antidilution provisions, there was no incremental fair value or compensation expense as a result of the restructuring. The fair value of these awards immediately before and immediately after the Spin-Off was approximately $12.5 million . The value of these awards at the time of the restructuring was reclassified from share-based compensation liability to additional paid in capital. The remaining unvested compensation expense is recognized over the remaining service period or, for those awards with milestone-based conditions, the period in which such milestones are expected to be achieved. There were 344,456 new Parent option awards (as defined below) to purchase shares of our Series A common stock, with a weighted average exercise price of $7.42 , outstanding at September 30, 2016. There was no other activity subsequent to the Spin-Off related to these awards and there is no unrecognized compensation cost related to awards to purchase shares of our Series A common stock as these awards are held by employees of Liberty and any related compensation expense is incurred by Liberty. There were 172,882 new Parent option awards to purchase shares of our Series B common stock, with a weighted average exercise price of $11.89 , outstanding at September 30, 2016. There was no other activity subsequent to the Spin-Off related to these awards and there is no unrecognized compensation cost related to awards to purchase shares of our Series B common stock as these awards are held by an employee of Liberty and any related compensation expense is incurred by Liberty. The following table summarizes the share-based award activity of options to purchase shares of our Series C under the Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plans (as further described below) from the time of Spin-Off through the last day of the reporting period: Number of Weighted Weighted Aggregate (in years) (in thousands) CommerceHub Options and SARs outstanding at Spin-Off 5,811,150 $ 12.81 Grants 48,281 $ 14.85 Exercised (33,738 ) $ 4.81 Forfeited (139,628 ) $ 10.17 Outstanding at September 30, 2016 5,686,065 $ 12.94 8.47 $ 18,543 Exercisable at September 30, 2016 280,000 $ 4.93 5.05 $ 3,074 As of September 30, 2016 , unrecognized compensation cost related to options to purchase shares of Series C common stock was approximately $18.5 million , including $0.6 million related to milestone-based awards, and is expected to be recognized over a weighted average remaining vesting period of approximately 2.81 years . The following table summarizes the share-based award activity of options to purchase shares of our Series C under the Transitional Stock Adjustment Plan (as further described below) from the time of Spin-Off through the last day of the reporting period: Number of Weighted Weighted Aggregate (in years) (in thousands) New Parent option awards outstanding at Spin-Off 1,032,817 $ 8.87 Grants — $ — Exercised (2,765 ) $ 4.62 Forfeited — $ — Outstanding at September 30, 2016 1,030,052 $ 8.88 4.26 $ 7,242 Exercisable at September 30, 2016 549,978 $ 6.30 2.96 $ 5,284 The new Parent option awards outstanding do not carry unrecognized compensation cost, as any related compensation expense is incurred by Liberty. The activity of the new Parent RSUs and new Parent restricted stock awards under the Transitional Stock Adjustment Plan from the time of Spin-Off through the last day of the reporting period was not material during the period. Share-based award plans pre-Spin-Off 1999 Plan During 1999, the Company adopted an incentive and nonqualified stock option plan (the "1999 Plan"). The 1999 Plan authorized grants of options to purchase up to 4,000,000 shares of authorized but unissued common stock. Options granted under the 1999 Plan were to vest over a period of four years and expire ten years from the date of grant. No shares of common stock are available for grants, or have been available for grants under the 1999 Plan, since September 2009 when the 1999 Plan expired. Liquidity Program During 2006, the Compensation Committee of CTI adopted a stock option liquidity program (the "Liquidity Program") for eligible holders of stock options and certain eligible common shares (shares issued as a result of an option exercise). The Liquidity Program provided eligible option holders and stockholders the ability to tender their vested options or sell their eligible common shares in exchange for cash payment. Eligible option holders and stockholders had the opportunity to tender eligible options or shares at any time except for when valuations were being performed. Cash consideration for the purchase and exercises of tendered stock options was based on the fair value of the Company's underlying common stock less the option exercise price. Cash consideration for tendered eligible common shares was based upon the fair value of the common shares. The Company made total cash payments of approximately $13.5 million and $1.5 million in exchange for the exercise of vested stock options, and $3.6 million and $0.2 million to repurchase shares outstanding from minority shareholders, under this program during the nine -month periods ended September 30, 2016 and 2015 , respectively. The Liquidity Program terminated effective as of the completion of the Spin-Off. SAR Plan During 2010, the Company instituted the 2010 Stock Appreciation Rights Plan (the "SAR Plan"). Pursuant to the SAR Plan, a committee appointed by the Company's Board of Directors (or in the absence of such a committee, the Board of Directors acting in the capacity of such committee) was authorized to grant stock appreciation rights ("SARs") to employees, board members and consultants of the Company. The SAR Plan authorized grants of up to 6 million SARs, which included and was not in addition to shares previously issued, or shares issuable in respect of awards previously issued, under the 1999 Plan. The SARs issued under the SAR Plan typically vested over a period of four years and expired 10 years from the date of grant for service-based awards. SARs that included both service and milestone-based conditions vested based on the satisfaction of service requirements and achievement of performance milestones over the period specified in the applicable award agreement, which ranged from 1 to 4 years at the time of the Spin-Off. We make certain assumptions regarding the probability of achieving these milestones each period and adjust the value of the awards in the period our estimates are revised. Actual results can vary from expected results. The Company made total cash payments of approximately $73.2 million and $2.1 million during the nine -month periods ended September 30, 2016 and 2015 , respectively, to settle exercised SARs. The SAR Plan was terminated and replaced with the CommerceHub, Inc. Legacy Stock Appreciation Rights Plan (the "Legacy SAR Plan") in connection with the completion of the Spin-Off. Future grants under the Legacy SAR Plan are not permitted following the Spin-Off. Share-based award plans post-Spin-Off CommerceHub, Inc. 2016 Omnibus Incentive Plan In connection with the Spin-Off, we adopted the CommerceHub, Inc. 2016 Omnibus Incentive Plan (as amended, amended and restated or otherwise modified from time to time, the “Omnibus Plan”). We amended and restated the Omnibus Plan on October 13, 2016 in order to permit the compensation committee of the Company’s board of directors to delegate award granting authority under the Omnibus Plan. The Omnibus Plan is designed to provide additional remuneration to officers, employees, nonemployee directors and independent contractors for service to CommerceHub and to encourage each plan participant’s investment in CommerceHub. Stock options, SARs, restricted shares, restricted stock units, cash awards, performance awards or any combination of the foregoing may be granted under the Omnibus Plan (collectively, "awards"). The maximum number of shares of our common stock with respect to which awards may be granted under the Omnibus Plan is 13,200,000 shares of Series C common stock, subject to anti-dilution and other adjustment provisions of the Omnibus Plan. The Omnibus Plan is administered by the compensation committee of the Company’s board of directors with regard to awards granted under the Omnibus Plan other than awards granted to the nonemployee directors which are administered by the full board of directors, and the compensation committee and its designees (and the board with respect to awards granted to non-employee directors) have full power and authority to determine the terms and conditions of such awards. Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plan In connection with the Spin-Off, all of the new option awards with respect to our Series C common stock that were issued as a result of the Spin-Off to holders of SARs and options outstanding immediately prior to the Spin-Off were issued pursuant to the Legacy SAR Plan and the Legacy Stock Option Plan, respectively. The Legacy SAR Plan and the Legacy Stock Option Plan govern the terms and conditions of these new option awards but will not be used to make any new grants following the Spin-Off. Employee Stock Purchase Plan We have adopted an Employee Stock Purchase Plan (“ESPP”) that was approved by our shareholders prior to the Spin-Off, under which we have reserved 900,000 shares of our Series C common stock for issuance to our employees. Subject to certain restrictions, the ESPP provides employees with the opportunity to invest a portion of their annual eligible compensation to purchase shares of our Series C common stock at a purchase price equal to 85% of the lower of (a) the fair market value of the common stock at the beginning of the six -month offering period, and (b) the fair market value of the common stock at the end of the six -month offering period. Transitional Stock Adjustment Plan All of the new Parent option awards, new Parent restricted stock units and new Parent restricted stock awards (each as defined below) were issued pursuant to the CommerceHub, Inc. Transitional Stock Adjustment Plan (the “Transitional Plan”). The Transitional Plan governs the terms and conditions of the Parent incentive awards described below but will not be used to make any grants following the Spin-Off. New Parent options Liberty has granted to certain directors, officers, employees and consultants of Liberty stock options to purchase shares of Liberty Ventures common stock pursuant to applicable incentive plans in place at Liberty. Each holder of an outstanding option to purchase shares of Liberty Ventures common stock (an "original Ventures option award") on the record date for the Spin-Off (the "record date") who was a member of the Liberty board of directors or an officer of Liberty holding the position of Vice President or above received (i) an option to purchase shares of the corresponding series of our common stock and an option to purchase shares of our Series C common stock (such new option awards, "new Parent option awards") and (ii) an adjustment to the exercise price of and the number of shares subject to the original Ventures option award (as so adjusted, an "adjusted Ventures option award"). The exercise prices of and the number of shares subject to the new Parent option awards and the related adjusted Ventures option award were determined based on the exercise price of and the number of shares subject to the original Ventures option award, the distribution ratios used in the Spin-Off, the pre-Spin-Off trading price of Liberty Ventures common stock (determined using the volume weighted average price of the applicable series of Liberty Ventures common stock over the three -consecutive trading days immediately preceding the Spin-Off) and the relative post-Spin-Off trading prices of Liberty Ventures common stock and our common stock (determined using the volume weighted average price of the applicable series of common stock over the three -consecutive trading days beginning on the first trading day following the Spin-Off on which both the Liberty Ventures common stock and our common stock traded in the "regular way" (meaning once the common stock trades using a standard settlement cycle)), such that the pre-Spin-Off intrinsic value of the original Ventures option award was allocated between the new Parent option awards and the adjusted Ventures option award. All other holders of original Ventures option awards did not receive any new Parent option awards as a result of the distribution. Rather, the holders' original Ventures option awards were adjusted so as to preserve the pre-Spin-Off intrinsic value of the original Ventures option award based on the exercise price of and number of shares subject to such original Ventures option award, the distribution ratios used in the Spin-Off, the pre-Spin-Off trading price of Liberty Ventures common stock and the post-Spin-Off trading price of Liberty Ventures common stock (determined as described above). Except as described above, all other terms of an adjusted Ventures option award and the new Parent option awards (including, for example, the vesting terms thereof) are, in all material respects, the same as those of the corresponding original Ventures option award. New Parent restricted stock units Each holder of a restricted stock unit with respect to shares of Series A or Series B Liberty Ventures common stock (an “original Ventures RSU”) on the record date received in the distribution 0.1 of a restricted stock unit with respect to shares of the corresponding series of CommerceHub common stock and 0.2 of a restricted stock unit with respect to shares of CommerceHub Series C common stock (such new restricted stock unit awards, new “Parent RSUs”) for each original Ventures RSU held by them as of the record date, with cash paid in lieu of fractional new Parent RSUs. Except as described herein, the terms of all of the new Parent RSUs (including, for example, the vesting terms thereof) are, in all material respects, the same as those of the corresponding original Ventures RSU. New Parent restricted stock awards Each holder of a restricted stock award with respect to shares of Series A or Series B Liberty Ventures common stock (an “original Ventures RSA” and, together with the original Ventures option awards and the original Ventures RSUs, the "original Ventures equity awards") received in the distribution (i) 0.1 of a restricted share of the corresponding series of CommerceHub common stock and (ii) 0.2 of a restricted share of CommerceHub Series C common stock (such new restricted stock awards, new “Parent restricted stock awards”) for each restricted share of Liberty Ventures common stock held by them as of the record date, with cash paid in lieu of fractional new Parent restricted stock awards. Except as described herein, all new Parent restricted stock awards (including, for example, the vesting terms thereof) are, in all material respects, the same as those of the corresponding original Ventures RSA. As of July 22, 2016, following the Spin-Off, there were 13,447 new Parent restricted stock awards, 534 new Parent RSUs and 344,456 new Parent option awards, with a weighted average exercise price of $7.42 , to purchase shares of our Series A common stock, 172,882 new Parent option awards, with a weighted average exercise price of $11.89 , to purchase shares of our Series B common stock, and 30,409 new Parent restricted stock awards, 1,094 new Parent RSUs and 1,032,817 new Parent option awards, with a weighted average exercise price of $8.87 , to purchase shares of our Series C common stock, issued to holders of original Ventures equity awards. Substantially all of Liberty's outstanding and exercisable options relate to employees of Liberty who received CommerceHub options on the Spin-Off. The compensation expense relating to these employees of Liberty will continue to be recorded at Liberty.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes During the three months ended September 30, 2016 the Company recorded an income tax benefit of $(0.4) million on income before taxes of $0.3 million . The benefit recorded, despite the pre-tax income, was primarily from federal tax research credits. The credits created both a discrete benefit from finalizing 2015 tax returns during the quarter and a benefit from a favorable adjustment to the estimated 2016 annual effective rate. The estimated annual effective tax rate for the three- and nine-month periods ended September 30, 2016 was lower than the federal tax rate of 35% due to the federal tax research credits, partially offset by the effect of state and local income taxes. The annual effective tax rate for the three and nine months ended September 30, 2015, was higher than the federal tax rate of 35% due to the effect of state and local income taxes. As of December 31, 2015, the Company's net deferred tax asset was primarily attributed to temporary differences related to share-based compensation awards. The exercise of a significant portion of share-based compensation awards during the nine months ended September 30, 2016 created a tax deductible expense, and reduced the deferred tax asset by $32.4 million . The deductions generated an estimated gross federal net operating loss (“NOL”) of approximately $79.8 million , primarily attributed to the exercise of share-based compensation awards. As allowed under the tax sharing agreement between the Company and Liberty entered into prior to the Spin-Off, $49.1 million of this NOL was utilized to refund federal income taxes paid to Liberty in the prior two tax years. In accordance with the same tax sharing agreement, the remaining federal NOLs of $30.7 million , subject to finalizing our 2016 pre-spin federal tax return, were forfeited and recorded as an equity distribution to Liberty upon the Spin-Off. State NOLs were also created and the Company intends to file amended state income tax returns for prior years in 2017 to request a refund of approximately $3.0 million of state taxes previously paid in states which allow a carryback claim. The remaining state NOLs generated of $0.3 million (tax-effected) are available to offset state income for 2016 and in future periods.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt On June 28, 2016, we entered into a credit agreement governing a $125.0 million revolving credit facility which expires on June 28, 2021. At September 30, 2016 we had $41.0 million in borrowings and no letters of credit outstanding under the facility, and our available borrowings under the facility were $84.0 million . Subsequent to September 30, 2016 we repaid an additional $10.0 million in borrowings under the facility. At September 30, 2016 the fair value of our debt, which is based on Level 2 valuation inputs, approximated cost. The interest rate applicable to our initial borrowings is LIBOR plus a yield of 1.75% . Interest on the revolving credit facility is based on a base rate or Eurodollar rate plus an applicable margin that increases as our total leverage ratio increases, with the base rate margin ranging from 0.75% to 1.25% and the Eurodollar rate margin ranging from 1.75% to 2.25% respectively. The revolving credit facility also carries a commitment fee of 0.25% to 0.50% per annum on the unused portion. In conjunction with entering into this agreement, we incurred charges totaling $1.1 million . These charges are included in other long-term assets on the condensed consolidated balance sheet and will be recognized over the term of the credit facility. Borrowings under the credit facility are collateralized by substantially all of our assets. The credit agreement contains covenants and restrictions which, among other things, require the maintenance of certain financial ratios, including a total leverage ratio and an interest coverage ratio, and restrict dividend payments and the incurrence of certain indebtedness and other activities, including acquisitions and dispositions. We were in compliance with these covenants and restrictions as of September 30, 2016 .

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. Leases Amounts accrued for deferred rent of $850 thousand and $0 at September 30, 2016 and December 31, 2015 , respectively, are included in accounts payable and accrued expenses on the condensed consolidated balance sheet. At September 30, 2016 , future minimum payments under operating leases were as follows (in thousands): Remainder of 2016 $ 560 2017 2,120 2018 2,132 2019 2,157 2020 2,183 Thereafter 2,139 $ 11,291

Significant Accounting Polici22

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of CommerceHub, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements, which have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair presentation of our financial position, results of comprehensive income (loss) and cash flows, and changes in equity for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2015 consolidated balance sheet data was derived from our audited financial statements at that date. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained within Amendment No. 3 to the Company's Registration Statement on Form S-1 (File No. 333-210508) filed with the Securities and Exchange Commission (the "SEC") on July 14, 2016 and declared effective on July 15, 2016 (the "Registration Statement").
Use of Estimates	Use of Estimates Preparing these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) ("ASU 2014-09"). This topic provides for five principles which should be followed to determine the appropriate amount and timing of revenue recognition for the transfer of goods and services to customers. The principles in ASU 2014-09 should be applied to all contracts with customers regardless of industry. The amendments in ASU 2014-09 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with two transition methods of adoption allowed. Early adoption for reporting periods prior to December 15, 2016 is not permitted. In March 2015, the FASB voted to defer the effective date by one year, but to allow adoption as of the original adoption date. In May 2016, FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers" (Topic 606) Principal versus Agent Considerations, (Reporting Revenue Gross versus Net) . This update was to further clarify the implementation guidance on principal versus agent considerations in the previously issued ASU No. 2014-09. ASU No. 2016-08 has no impact on the adoption date of the previously issued update. We are evaluating the financial statement impacts of the guidance in ASU 2014-09 and determining which transition method we will utilize. In February 2016, the FASB issued ASU No. 2016-02 "Leases" (Topic 842) ("ASU No. 2016-02"). This topic provides that a lessee should recognize the assets and liabilities that arise from leases. Topic 842 requires an entity to separate the lease components from the nonlease components in a contract. This ASU intended to improve financial reporting about leasing transactions. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018. We are evaluating the financial statement impact this update will have on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU No. 2016-09"), which is intended to improve the accounting for share-based payment transactions as part of the FASB's simplification initiative. ASU No. 2016-09 changed the aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. We are evaluating the financial statement impact this update will have on the consolidated financial statements.

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth net income (loss) and the basic and diluted shares used to calculate earnings per share for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income (loss) $ 710 $ (621 ) $ 3,144 $ (3,106 ) Basic - weighted average shares outstanding 42,773 42,703 42,773 42,703 Effect of dilutive potential securities 786 — 786 — Diluted - weighted average shares outstanding 43,559 42,703 43,559 42,703 Anti-dilutive securities 5,034 — 5,034 —

Acquisition of Mercent Corpor24

Acquisition of Mercent Corporation (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of allocation of purchase consideration to the assets acquired and liabilities assumed	Under the acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair value, as follows (in thousands): Cash $ 41 Accounts receivable 2,559 Prepaid expenses 87 Property and equipment 336 Customer relationships 2,000 Developed software technology 1,500 Deferred tax assets 3,580 Goodwill 12,390 Accounts payable and accrued expenses (2,015 ) Deferred revenue (212 ) 20,266

Capitalized Software Costs (Tab

Capitalized Software Costs (Tables)	9 Months Ended
	Sep. 30, 2016
Research and Development [Abstract]
Schedule of capitalized software costs	Capitalized software costs, net is comprised of the following (in thousands): September 30, December 31, Capitalized software costs $ 42,051 $ 41,120 Less accumulated amortization (34,591 ) (33,931 ) Capitalized software costs, net $ 7,460 $ 7,189 Intangibles assets acquired as of September 30, 2016 and December 31, 2015 , respectively, are as follows (in thousands): September 30, 2016 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (1,312 ) $ 188 Customer relationships 2.0 2,000 (1,750 ) 250 Total $ 3,500 $ (3,062 ) $ 438 December 31, 2015 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (750 ) $ 750 Customer relationships 2.0 2,000 (1,000 ) 1,000 Total $ 3,500 $ (1,750 ) $ 1,750
Schedule of future amortization expense	Future amortization expense of existing capitalized software costs as of September 30, 2016 is expected to be as follows for the years ending December 31, (in thousands): Remainder of 2016 $ 1,262 2017 4,290 2018 1,737 2019 171 2020 and thereafter — $ 7,460

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Capitalized software costs, net is comprised of the following (in thousands): September 30, December 31, Capitalized software costs $ 42,051 $ 41,120 Less accumulated amortization (34,591 ) (33,931 ) Capitalized software costs, net $ 7,460 $ 7,189 Intangibles assets acquired as of September 30, 2016 and December 31, 2015 , respectively, are as follows (in thousands): September 30, 2016 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (1,312 ) $ 188 Customer relationships 2.0 2,000 (1,750 ) 250 Total $ 3,500 $ (3,062 ) $ 438 December 31, 2015 Weighted Average Gross Carrying Accumulated Net Book Developed technology 2.0 $ 1,500 $ (750 ) $ 750 Customer relationships 2.0 2,000 (1,000 ) 1,000 Total $ 3,500 $ (1,750 ) $ 1,750

Share-Based Awards (Tables)

Share-Based Awards (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation Allocation	Included in the condensed consolidated statements of comprehensive income (loss) are the following amounts of share-based compensation (amounts in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of revenue $ (49 ) $ 806 $ (207 ) $ 1,383 Research and development 584 1,215 1,697 4,347 Sales and marketing 103 870 704 2,411 General and administrative 1,555 4,623 6,559 16,191 $ 2,193 $ 7,514 $ 8,753 $ 24,332
Options and SARs Activity	The following table summarizes the share-based award activity of options to purchase shares of our Series C under the Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plans (as further described below) from the time of Spin-Off through the last day of the reporting period: Number of Weighted Weighted Aggregate (in years) (in thousands) CommerceHub Options and SARs outstanding at Spin-Off 5,811,150 $ 12.81 Grants 48,281 $ 14.85 Exercised (33,738 ) $ 4.81 Forfeited (139,628 ) $ 10.17 Outstanding at September 30, 2016 5,686,065 $ 12.94 8.47 $ 18,543 Exercisable at September 30, 2016 280,000 $ 4.93 5.05 $ 3,074
Stock Option Activity	The following table summarizes the share-based award activity of options to purchase shares of our Series C under the Transitional Stock Adjustment Plan (as further described below) from the time of Spin-Off through the last day of the reporting period: Number of Weighted Weighted Aggregate (in years) (in thousands) New Parent option awards outstanding at Spin-Off 1,032,817 $ 8.87 Grants — $ — Exercised (2,765 ) $ 4.62 Forfeited — $ — Outstanding at September 30, 2016 1,030,052 $ 8.88 4.26 $ 7,242 Exercisable at September 30, 2016 549,978 $ 6.30 2.96 $ 5,284

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum payments under operating leases	At September 30, 2016 , future minimum payments under operating leases were as follows (in thousands): Remainder of 2016 $ 560 2017 2,120 2018 2,132 2019 2,157 2020 2,183 Thereafter 2,139 $ 11,291

Description of Business (Detail

Description of Business (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jul. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Borrowings on revolver		$ 50,000	$ 0
Repayments of note payable		$ 28,664	$ 0
Payments of common stock dividends	$ 18,900
Payments of preferred dividends	900
Liberty | Parent
Related Party Transaction [Line Items]
Repayments of note payable	28,700
Income taxes paid	1,300
Taxes amounts due for tax benefits	8,500
Proceeds from contributed capital	6,000
Revolving Credit Facility | Credit Agreement, June 2016
Related Party Transaction [Line Items]
Borrowings on revolver	$ 50,000

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of revenue	$ (5,737)	$ (6,332)	$ (17,162)	$ (16,177)
Sales and marketing	$ 3,023	2,808	$ 9,024	7,834
Reclassification of certain sales taxes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of revenue		520		466
Sales and marketing		$ 26		$ 492

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - shares	Jul. 22, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted average number of shares outstanding (in shares)	42,702,842
Shares excluded from the earnings (loss) per share calculation (in shares)		5,034,000	0	5,034,000	0
Common stock issuable to pre-Spin-Off minority shareholders of CTI
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the earnings (loss) per share calculation (in shares)	109,354
Stock options
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares excluded from the earnings (loss) per share calculation (in shares)	7,362,933
Common Series A
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted average number of shares outstanding (in shares)	13,522,288
Common Series B
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted average number of shares outstanding (in shares)	711,992
Common Series C
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted average number of shares outstanding (in shares)	28,468,562

Earnings (Loss) Per Share - Sch

Earnings (Loss) Per Share - Schedule Of Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 710	$ (621)	$ 3,144	$ (3,106)
Basic - weighted average shares outstanding (in shares)	42,773,000	42,703,000	42,773,000	42,703,000
Effect of dilutive potential securities (in shares)	786,000	0	786,000	0
Diluted - weighted average shares outstanding (in shares)	43,559,000	42,703,000	43,559,000	42,703,000
Anti-dilutive securities (in shares)	5,034,000	0	5,034,000	0

Acquisition of Mercent Corpor33

Acquisition of Mercent Corporation (Details) - USD ($)	Jan. 08, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Cash consideration		$ 0	$ 20,225,000
Mercent
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Cash consideration	$ 20,200,000
Transaction related costs		$ 0	$ 166,000
Goodwill not deductible for tax purposes	$ 0

Acquisition of Mercent Corpor34

Acquisition of Mercent Corporation - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Jan. 08, 2015
Business Acquisition [Line Items]
Goodwill	$ 21,410	$ 21,410
Mercent
Business Acquisition [Line Items]
Cash			$ 41
Accounts receivable			2,559
Prepaid expenses			87
Property and equipment			336
Deferred tax assets			3,580
Goodwill			12,390
Accounts payable and accrued expenses			(2,015)
Deferred revenue			(212)
Recognized assets and liabilities acquired			20,266
Mercent | Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles			2,000
Mercent | Developed software technology
Business Acquisition [Line Items]
Finite-lived intangibles			$ 1,500

Concentrations of Significant35

Concentrations of Significant Customers and Credit Risk (Details) - Customer concentration risk - customer	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Total revenue
Concentration Risk [Line Items]
Number of major customers (in customers)	1	1
Receivables
Concentration Risk [Line Items]
Number of major customers (in customers)	0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts receivable, net of allowances	$ 10,259	$ 10,259		$ 16,472
Collection of note receivable - Parent		36,380	$ 0
Subsidiary of common parent | QVC
Related Party Transaction [Line Items]
Accounts receivable, net of allowances	248	$ 248		$ 511
Subsidiary of common parent | QVC | Total revenue | Customer concentration risk
Related Party Transaction [Line Items]
Concentration risk, percentage		7.00%	7.00%
Parent | Liberty
Related Party Transaction [Line Items]
Collection of note receivable - Parent	36,400
Interest paid	2,400
Due to related parties	$ 446	$ 446
Parent | Liberty | LIBOR
Related Party Transaction [Line Items]
Loans receivable, basis spread on variable rate	1.00%	1.00%

Capitalized Software Costs - S

Capitalized Software Costs - Summary of Capitalized Software Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Research and Development [Abstract]
Capitalized software costs	$ 42,051	$ 41,120
Less accumulated amortization	(34,591)	(33,931)
Capitalized software costs, net	$ 7,460	$ 7,189

Capitalized Software Costs - Na

Capitalized Software Costs - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software amortization expense	$ 3.8	$ 2.4

Capitalized Software Costs - Fu

Capitalized Software Costs - Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Remainder of 2016	$ 438
Capitalized software costs, net	7,460	$ 7,189
Capitalized software
Finite-Lived Intangible Assets [Line Items]
Remainder of 2016	1,262
2,017	4,290
2,018	1,737
2,019	171
2020 and thereafter	0
Capitalized software costs, net	$ 7,460

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,500	$ 3,500
Accumulated Amortization	(3,062)	(1,750)
Net Book Value	$ 438	$ 1,750
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	2 years	2 years
Gross Carrying Amount	$ 1,500	$ 1,500
Accumulated Amortization	(1,312)	(750)
Net Book Value	$ 188	$ 750
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	2 years	2 years
Gross Carrying Amount	$ 2,000	$ 2,000
Accumulated Amortization	(1,750)	(1,000)
Net Book Value	$ 250	$ 1,000

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets	$ 1,300	$ 1,300
Future amortization expense for intangible assets	$ 438

Share-Based Awards - Narrative

Share-Based Awards - Narrative (Details)	Jul. 22, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	Dec. 31, 2010shares	Dec. 31, 1999shares	Jul. 21, 2016shares	Dec. 31, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period		4 years
Fair value assumptions, expected dividend rate		0.00%
Adjustments to additional paid in capital, share-based compensation, restructuring event | $	$ 12,500,000
Payments for repurchase shares | $		$ 3,600,000	$ 164,000
New Parent option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)		344,456				45,450	0
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares		$ 7.42					$ 0
New Parent option awards | Common Series C
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	99,151
New Parent option awards | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)					4,000,000
Award vesting period					4 years
Expiration period					10 years
Number of shares available for grant (in shares)		0
Cash used to settle awards | $		$ 13,500,000	1,500,000
CommerceHub Options and SARs | SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)						2,042,220
Number of shares authorized (in shares)				6,000,000
Award vesting period				4 years
Expiration period				10 years
Cash used to settle awards | $		$ 73,200,000	$ 2,100,000
CommerceHub Options and SARs | SARs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period		1 year
CommerceHub Options and SARs | SARs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period		4 years
CommerceHub Options and SARs | SARs | Common Series C
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)	4,455,460
Liberty Interactive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, measurement period		3 days
Liberty Interactive Plans | Common Series A | Liberty | Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 7.42	$ 7.42
Compensation not yet recognized, options | $		$ 0
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 8.87
Liberty Interactive Plans | Common Series B | Liberty | Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	172,882	172,882
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 11.89	$ 11.89
Compensation not yet recognized, options | $		$ 0
Liberty Interactive Plans | Stock options | Common Series A | Liberty | Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	344,456	344,456
Options exercisable (in shares)	1,032,817
Liberty Interactive Plans | RSUs | Common Series A | Liberty | Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	534
Options exercisable (in shares)	1,094
Liberty Interactive Plans | Restricted Stock [Member] | Common Series A | Liberty | Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	13,447
Liberty Interactive Plans | Restricted Stock [Member] | Common Series C | Liberty | Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	30,409
Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)		5,686,065					5,811,150
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares		$ 12.94					$ 12.81
Options exercisable (in shares)		280,000
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares		$ 4.93
Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plans | Options And SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation not yet recognized, non-options | $		$ 18,500,000
Compensation cost not yet recognized, period for recognition		2 years 9 months 22 days
Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plans | Milestone SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation not yet recognized, non-options | $		$ 600,000
2016 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	13,200,000
Employee Stock Purchase Plan | Employee Stock | Common Series C
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	900,000
Award vesting period	6 months
Employee stock purchase plan, purchase price, percentage of stock value	85.00%
Original Ventures RSUs | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award conversion ratio	0.1
Original Ventures RSUs | RSUs | Common Series C
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award conversion ratio	0.2
Original Ventures RSAs | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award conversion ratio	0.1
Original Ventures RSAs | RSUs | Common Series C
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award conversion ratio	0.2

Share-Based Awards - Schedule o

Share-Based Awards - Schedule of Share-based Compensation Allocation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	$ 2,193	$ 7,514	$ 8,753	$ 24,332
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	(49)	806	(207)	1,383
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	584	1,215	1,697	4,347
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	103	870	704	2,411
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	$ 1,555	$ 4,623	$ 6,559	$ 16,191

Share-Based Awards - Stock Opti

Share-Based Awards - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Legacy Stock Appreciation Rights Plan and Legacy Stock Option Plans
Number of Options
Outstanding, beginning balance (in shares) | shares	5,811,150
Grants (in shares) | shares	48,281
Exercised (in shares) | shares	(33,738)
Forfeited (in shares) | shares	(139,628)
Outstanding, ending balance (in shares) | shares	5,686,065
Exercisable (in shares) | shares	280,000
Weighted average exercise price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 12.81
Grants (in dollars per share) | $ / shares	14.85
Exercised (in dollars per share) | $ / shares	4.81
Forfeited (in dollars per share) | $ / shares	10.17
Outstanding, ending balance (in dollars per share) | $ / shares	12.94
Exercisable (in dollars per share) | $ / shares	$ 4.93
Outstanding, Weighted average remaining contractual life	8 years 5 months 19 days
Exercisable, Weighted average remaining contractual life	5 years 18 days
Outstanding, Aggregate intrinsic value | $	$ 18,543
Exercisable, Aggregate intrinsic value | $	$ 3,074
Transitional Stock Adjustment Plan
Number of Options
Outstanding, beginning balance (in shares) | shares	1,032,817
Grants (in shares) | shares	0
Exercised (in shares) | shares	(2,765)
Forfeited (in shares) | shares	0
Outstanding, ending balance (in shares) | shares	1,030,052
Exercisable (in shares) | shares	549,978
Weighted average exercise price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 8.87
Grants (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	4.62
Forfeited (in dollars per share) | $ / shares	0
Outstanding, ending balance (in dollars per share) | $ / shares	8.88
Exercisable (in dollars per share) | $ / shares	$ 6.30
Outstanding, Weighted average remaining contractual life	4 years 3 months 4 days
Exercisable, Weighted average remaining contractual life	2 years 11 months 16 days
Outstanding, Aggregate intrinsic value | $	$ 7,242
Exercisable, Aggregate intrinsic value | $	$ 5,284

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (438)	$ (521)	$ 1,611	$ (1,647)
Income (loss) before income taxes	$ 272	$ (1,142)	$ 4,755	$ (4,753)
Statutory rate	35.00%	35.00%	35.00%	35.00%
Reduction to deferred tax asset for share-based awards			$ 32,400
State jurisdiction | Prior Two Tax Years
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 3,000		3,000
State jurisdiction | Future Tax Years
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 300		300
Internal Revenue Service (IRS) | Domestic tax authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards generated during the period			79,800
Internal Revenue Service (IRS) | Domestic tax authority | Prior Two Tax Years
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards generated during the period			49,100
Internal Revenue Service (IRS) | Domestic tax authority | Future Tax Years
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards generated during the period			$ 30,700

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Jun. 28, 2016	Nov. 07, 2016	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Repayments of lines of credit			$ 9,000,000	$ 0
Revolving Credit Facility | Credit Agreement, June 2016
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 125,000,000
Borrowings outstanding			41,000,000
Letters of credit outstanding			0
Available borrowings under facility			$ 84,000,000
Revolving Credit Facility | Credit Agreement, June 2016 | Other long-term assets
Debt Instrument [Line Items]
Debt issuance charges	$ 1,100,000
Revolving Credit Facility | Credit Agreement, June 2016 | Minimum
Debt Instrument [Line Items]
Commitment fee percentage on unused portion	0.25%
Revolving Credit Facility | Credit Agreement, June 2016 | Maximum
Debt Instrument [Line Items]
Commitment fee percentage on unused portion	0.50%
Revolving Credit Facility | Credit Agreement, June 2016 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Revolving Credit Facility | Credit Agreement, June 2016 | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.75%
Revolving Credit Facility | Credit Agreement, June 2016 | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Revolving Credit Facility | Credit Agreement, June 2016 | Eurodollar | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Revolving Credit Facility | Credit Agreement, June 2016 | Eurodollar | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Revolving Credit Facility | Credit Agreement, June 2016 | Subsequent Event
Debt Instrument [Line Items]
Repayments of lines of credit		$ 10,000,000

Commitments and Contingencies47

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Deferred rent	$ 850	$ 0
Remainder of 2016	560
2,017	2,120
2,018	2,132
2,019	2,157
2,020	2,183
Thereafter	2,139
Future minimum payments due under operating leases	$ 11,291