Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35669 | |
Entity Registrant Name | SHUTTERSTOCK, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0812659 | |
Entity Address, Address Line One | 350 Fifth Avenue, 21st Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10118 | |
City Area Code | 646 | |
Local Phone Number | 710-3417 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | SSTK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,695,665 | |
Entity Central Index Key | 0001549346 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 311,157 | $ 303,261 |
Accounts receivable, net of allowance of $3,608 and $3,579 | 48,744 | 47,016 |
Prepaid expenses and other current assets | 26,590 | 26,703 |
Total current assets | 386,491 | 376,980 |
Property and equipment, net | 54,240 | 58,834 |
Right-of-use assets | 42,097 | 45,453 |
Intangible assets, net | 25,182 | 26,669 |
Goodwill | 88,167 | 88,974 |
Deferred tax assets, net | 13,727 | 14,387 |
Other assets | 16,427 | 19,215 |
Total assets | 626,331 | 630,512 |
Current liabilities: | ||
Accounts payable | 4,504 | 6,104 |
Accrued expenses | 51,554 | 53,864 |
Contributor royalties payable | 24,248 | 25,193 |
Deferred revenue | 138,229 | 141,922 |
Other current liabilities | 10,347 | 18,811 |
Total current liabilities | 228,882 | 245,894 |
Lease liabilities | 44,280 | 47,313 |
Other non-current liabilities | 9,669 | 9,160 |
Total liabilities | 282,831 | 302,367 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 200,000 shares authorized; 38,245 and 38,055 shares issued and 35,687 and 35,497 shares outstanding as of June 30, 2020 and December 31, 2019, respectively | 382 | 381 |
Treasury stock, at cost; 2,558 shares as of June 30, 2020 and December 31, 2019 | (100,027) | (100,027) |
Additional paid-in capital | 319,412 | 312,824 |
Accumulated comprehensive loss | (8,414) | (6,220) |
Retained earnings | 132,147 | 121,187 |
Total stockholders’ equity | 343,500 | 328,145 |
Total liabilities and stockholders’ equity | $ 626,331 | $ 630,512 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,608 | $ 3,579 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 38,245,000 | 38,055,000 |
Common stock, shares outstanding (in shares) | 35,687,000 | 35,497,000 |
Treasury stock, shares held in treasury (in shares) | 2,558,000 | 2,558,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 159,230 | $ 161,741 | $ 320,515 | $ 325,073 |
Operating expenses: | ||||
Cost of revenue | 63,811 | 68,526 | 132,934 | 137,744 |
Sales and marketing | 35,557 | 44,488 | 78,217 | 88,934 |
Product development | 12,485 | 13,594 | 25,554 | 28,580 |
General and administrative | 24,832 | 32,063 | 55,484 | 58,646 |
Total operating expenses | 136,685 | 158,671 | 292,189 | 313,904 |
Income from operations | 22,545 | 3,070 | 28,326 | 11,169 |
Other income, net | 149 | 584 | 662 | 1,480 |
Income before income taxes | 22,694 | 3,654 | 28,988 | 12,649 |
Provision for income taxes | 3,707 | 355 | 5,683 | 1,828 |
Net income | $ 18,987 | $ 3,299 | $ 23,305 | $ 10,821 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.53 | $ 0.09 | $ 0.65 | $ 0.31 |
Diluted (in dollars per share) | $ 0.53 | $ 0.09 | $ 0.65 | $ 0.30 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 35,652 | 35,232 | 35,587 | 35,174 |
Diluted (in shares) | 35,906 | 35,504 | 35,894 | 35,499 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,987 | $ 3,299 | $ 23,305 | $ 10,821 |
Foreign currency translation gain / (loss) | 254 | (1,027) | (2,194) | (982) |
Other comprehensive gain / (loss) | 254 | (1,027) | (2,194) | (982) |
Comprehensive income | $ 19,241 | $ 2,272 | $ 21,111 | $ 9,839 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2018 | 37,618 | 2,558 | ||||
Beginning balance at Dec. 31, 2018 | $ 286,667 | $ 376 | $ (100,027) | $ 291,710 | $ (6,471) | $ 101,079 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation | 12,375 | 12,375 | ||||
Issuance of common stock in connection with employee stock option exercises and RSU vesting | 222 | $ 4 | 218 | |||
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares) | 312 | |||||
Common shares withheld for settlement of taxes in connection with equity-based compensation | (5,182) | $ (1) | (5,181) | |||
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares) | (114) | |||||
Other comprehensive income (loss) | (982) | (982) | ||||
Net income | 10,821 | 10,821 | ||||
Ending balance at Jun. 30, 2019 | 303,921 | $ 379 | $ (100,027) | 299,122 | (7,453) | 111,900 |
Ending balance (in shares) at Jun. 30, 2019 | 37,816 | 2,558 | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 37,759 | 2,558 | ||||
Beginning balance at Mar. 31, 2019 | 294,984 | $ 378 | $ (100,027) | 292,458 | (6,426) | 108,601 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation | 7,751 | 7,751 | ||||
Issuance of common stock in connection with employee stock option exercises and RSU vesting | 5 | $ 1 | 4 | |||
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares) | 83 | |||||
Common shares withheld for settlement of taxes in connection with equity-based compensation | (1,091) | $ 0 | (1,091) | |||
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares) | (26) | |||||
Other comprehensive income (loss) | (1,027) | (1,027) | ||||
Net income | 3,299 | 3,299 | ||||
Ending balance at Jun. 30, 2019 | $ 303,921 | $ 379 | $ (100,027) | 299,122 | (7,453) | 111,900 |
Ending balance (in shares) at Jun. 30, 2019 | 37,816 | 2,558 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 35,497 | 38,055 | 2,558 | |||
Beginning balance at Dec. 31, 2019 | $ 328,145 | $ 381 | $ (100,027) | 312,824 | (6,220) | 121,187 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation | 9,396 | 9,396 | ||||
Issuance of common stock in connection with employee stock option exercises and RSU vesting | 629 | $ 3 | 626 | |||
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares) | 289 | |||||
Common shares withheld for settlement of taxes in connection with equity-based compensation | (3,436) | $ (2) | (3,434) | |||
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares) | (99) | |||||
Payment of cash dividend | (12,098) | (12,098) | ||||
Other comprehensive income (loss) | (2,194) | (2,194) | ||||
Net income | 23,305 | 23,305 | ||||
Ending balance at Jun. 30, 2020 | $ 343,500 | $ 382 | $ (100,027) | 319,412 | (8,414) | 132,147 |
Ending balance (in shares) at Jun. 30, 2020 | 35,687 | 38,245 | 2,558 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 38,119 | 2,558 | ||||
Beginning balance at Mar. 31, 2020 | $ 327,727 | $ 381 | $ (100,027) | 316,823 | (8,668) | 119,218 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation | 3,636 | 3,636 | ||||
Issuance of common stock in connection with employee stock option exercises and RSU vesting | 629 | $ 2 | 627 | |||
Issuance of common stock in connection with employee stock option exercises and RSU vesting (in shares) | 180 | |||||
Common shares withheld for settlement of taxes in connection with equity-based compensation | (1,675) | $ (1) | (1,674) | |||
Common shares withheld for settlement of taxes in connection with equity-based compensation (in shares) | (54) | |||||
Payment of cash dividend | (6,058) | (6,058) | ||||
Other comprehensive income (loss) | 254 | 254 | ||||
Net income | 18,987 | 18,987 | ||||
Ending balance at Jun. 30, 2020 | $ 343,500 | $ 382 | $ (100,027) | $ 319,412 | $ (8,414) | $ 132,147 |
Ending balance (in shares) at Jun. 30, 2020 | 35,687 | 38,245 | 2,558 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Payment of cash dividend (in dollars per share) | $ 0.17 | $ 0.34 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 23,305 | $ 10,821 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,370 | 25,319 |
Deferred taxes | 693 | (1,312) |
Non-cash equity-based compensation | 9,396 | 12,375 |
Bad debt expense | 1,086 | (635) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,279) | (2,746) |
Prepaid expenses and other current and non-current assets | 49 | 1,944 |
Accounts payable and other current and non-current liabilities | (4,045) | 1,899 |
Long-term incentives related to acquisitions | (7,759) | 0 |
Contributor royalties payable | (840) | 1,059 |
Deferred revenue | (3,633) | (1,981) |
Net cash provided by operating activities | 36,343 | 46,743 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (13,966) | (13,726) |
Proceeds from sale of Webdam, net | 0 | 2,500 |
Acquisition of content | (1,577) | (1,277) |
Security deposit release | 105 | 25 |
Net cash used in investing activities | (15,438) | (12,478) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 629 | 218 |
Cash paid related to settlement of employee taxes related to RSU vesting | (3,436) | (5,181) |
Payment of cash dividend | (12,098) | 0 |
Net cash used in financing activities | (14,905) | (4,963) |
Effect of foreign exchange rate changes on cash | (717) | (1,085) |
Net increase in cash, cash equivalents and restricted cash | 5,283 | 28,217 |
Cash, cash equivalents and restricted cash, beginning of period | 305,874 | 233,465 |
Cash, cash equivalents and restricted cash, end of period | 311,157 | 261,682 |
Supplemental Disclosure of Cash Information: | ||
Cash paid for income taxes | $ 927 | $ 1,480 |
Summary of Operations and Signi
Summary of Operations and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Operations and Significant Accounting Policies | Summary of Operations and Significant Accounting Policies Summary of Operations Shutterstock (the “Company” or “Shutterstock”) is a global technology company offering a creative platform, which provides high-quality content, tools and services to creative professionals. The content licensed by the Company’s customers includes: • Images - consisting of photographs, vectors and illustrations. Images are typically used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and other similar uses. • Footage - consisting of video clips, premium footage filmed by industry experts and cinema grade video effects, available in HD and 4K formats. Footage is often integrated into websites, social media, marketing campaigns and cinematic productions. • Music - consisting of high-quality music tracks and sound effects, which are often used to complement images and footage. The Company licenses content to its customers. Contributors upload their content to the Company’s web properties in exchange for royalty payments based on customer download activity. Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. The interim Consolidated Balance Sheet as of June 30, 2020, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2020 and 2019, and the Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019, are unaudited. The Consolidated Balance Sheet as of December 31, 2019, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include all normal recurring adjustments necessary to fairly state the Company’s financial position as of June 30, 2020, and its consolidated results of operations, comprehensive income, stockholders’ equity for the three and six months ended June 30, 2020 and 2019, and its cash flows for the six months ended June 30, 2020 and 2019. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 13, 2020. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the volume of expected unused licenses for our subscription-based products, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the grant-date fair value of non-cash equity-based compensation, the assessment of recoverability of deferred tax assets, the measurement of income tax and contingent non-income tax liabilities and the determination of the incremental borrowing rate used to calculate the lease liability. Cash, Cash Equivalents and Restricted Cash The following represents the Company’s cash and cash equivalents and restricted cash balances as of June 30, 2020 and December 31, 2019 (in thousands): As of June 30, 2020 As of December 31, 2019 Cash and cash equivalents $ 311,157 $ 303,261 Restricted cash — 2,613 Total cash, cash equivalents and restricted cash $ 311,157 $ 305,874 The Company’s cash and cash equivalents consist of cash on hand and bank deposits. These assets are stated at cost, which approximates fair value. As of March 31, 2020, the Company was no longer required to provide cash collateral for its letter of credit for its New York City headquarters, and, accordingly, these funds are no longer restricted. Allowance for Doubtful Accounts The Company’s accounts receivable consists of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates. Historically, the Company used an incurred loss model to calculate its allowance for doubtful accounts. Upon the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”) on January 1, 2020, the Company shifted to a current expected credit loss model. During the six months ended June 30, 2020, the Company recorded bad debt expense of $1.1 million. As of June 30, 2020 and December 31, 2019, the Company’s allowance for doubtful accounts was approximately $3.6 million. The allowance for doubtful accounts is included as a reduction of accounts receivable on the Consolidated Balance Sheets. Chargeback and Sales Refund Allowance The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of June 30, 2020 and December 31, 2019, the Company’s combined allowance for chargebacks and sales refunds was $0.4 million, which was included as a component of other current liabilities on the Consolidated Balance Sheets. Revenue Recognition The majority of the Company’s revenue is earned from the license of content. Content licenses are generally purchased on a monthly or annual basis, whereby a customer pays for a predetermined quantity of content that may be downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. The Company recognizes revenue upon the satisfaction of performance obligations, which generally occurs when content is downloaded by a customer. The Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded, at which time the license is provided. In addition, management estimates expected unused licenses for subscription-based products and recognizes the estimated revenue associated with the unused licenses as digital content is downloaded and licenses are obtained for such content by the customer during the subscription period. The estimate of unused licenses is based on historical download activity and future changes in the estimate could impact the timing of revenue recognition of the Company’s subscription products. The Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less. Collectability is reasonably assured at the time the electronic order or contract is entered. The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payments under standard credit terms. Collectability for customers who pay on credit terms allowing for payment beyond the date at which service commences is based on a credit evaluation for certain new customers and transaction history with existing customers. The Company recognizes revenue gross of contributor royalties because the Company is the principal in the transaction as it is the party responsible for the performance obligation and it controls the product or service before transferring it to the customer. The Company also licenses content to customers through third-party resellers. Third-party resellers sell the Company’s products directly to customers as the principal in those transactions. Accordingly, the Company recognizes revenue net of costs paid to resellers. Recently Adopted Accounting Standard Updates In June 2016, the FASB issued ASU 2016-13, which as amended, replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance was required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company adopted ASU 2016-13, as amended, effective January 1, 2020 using the modified retrospective method and recorded a cumulative-effect adjustment of $0.2 million, net of tax, in retained earnings as of January 1, 2020. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. Adoption of this guidance was required for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-13, effective January 1, 2020. The impact of adoption of this standard on the consolidated financial statements, including accounting policies, processes and systems, was not material. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirements for capitalizing implementation costs incurred for an internal-use software license. Adoption of this guidance was required for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and early adoption is permitted. Entities are permitted to choose to adopt the new guidance (1) prospectively for eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company adopted ASU 2018-15 on a prospective basis, effective January 1, 2020. The adoption of this standard is not expected to have a significant impact on our consolidated financial statements. Recently Issued Accounting Standard Updates In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU-2019-12”). ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. We are currently in the process of evaluating the effect that ASU 2019-12 will have on the Company's Consolidated Financial Statements. |
Fair Value Measurements and Oth
Fair Value Measurements and Other Long-term Investments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Other Long-term Investments | Fair Value Measurements and Other Long-term Investments Fair Value Measurements The Company had no assets or liabilities requiring fair value hierarchy disclosures as of June 30, 2020 or December 31, 2019. Other Fair Value Measurements The carrying amounts of cash, accounts receivable, restricted cash, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The Company’s non-financial assets, which include property and equipment, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate a non-financial asset for impairment, whether due to certain triggering events or because annual impairment testing is required, a resulting asset impairment would require that the non-financial asset be recorded at fair value. Other Long-term Investments Investment in ZCool Technologies Limited (“ZCool”) On January 4, 2018, the Company invested $15.0 million in convertible preferred shares issued by ZCool (the “Preferred Shares”), which is equivalent to a 25% fully diluted equity ownership interest. ZCool’s primary business is the operation of an e-commerce platform in China whereby customers can pay to license content contributed by creative professionals. ZCool and its affiliates have been the exclusive distributor of Shutterstock creative content in China since 2014. ZCool is a variable interest entity that is not consolidated because the Company is not the primary beneficiary. The Preferred Shares are not deemed to be in-substance common stock and are accounted for using the measurement alternative for equity investments with no readily determinable fair value. The Preferred Shares are reported at cost, adjusted for impairments or any observable price changes in orderly transactions for identical or similar investments issued by ZCool. On a quarterly basis, the Company evaluates the carrying value of the Preferred Shares for impairment, which includes an assessment of ZCool’s revenue growth, earnings performance, working capital and the general regional market conditions. As of June 30, 2020, no adjustments to the carrying value were identified as a result of this assessment. Changes in performance negatively impacting ZCool’s operating results and cash flows could result in the Company recording an impairment charge on the Preferred Shares in future periods. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is summarized as follows (in thousands): As of June 30, 2020 As of December 31, 2019 Computer equipment and software $ 179,580 $ 165,950 Furniture and fixtures 10,211 10,199 Leasehold improvements 19,260 19,203 Property and equipment 209,051 195,352 Less accumulated depreciation (154,811) (136,518) Property and equipment, net $ 54,240 $ 58,834 Depreciation expense related to property and equipment was $9.6 million and $10.5 million for the three months ended June 30, 2020 and 2019, respectively, and $18.9 million and $21.1 million for the six months ended June 30, 2020 and 2019, respectively. Cost of revenues includes depreciation expense of $8.6 million and $9.3 million for the three months ended June 30, 2020 and 2019, respectively, and $16.8 million and $18.6 million for the six months ended June 30, 2020 and 2019, respectively. General and administrative expense includes depreciation expense of $1.0 million and $1.2 million for the three months ended June 30, 2020 and 2019, respectively, and $2.1 million and $2.5 million for the six months ended June 30, 2020 and 2019, respectively. Capitalized Internal-Use Software The Company capitalized costs related to the development of internal-use software of $6.5 million and $5.8 million for the three months ended June 30, 2020 and 2019, respectively, and $13.1 million and $12.3 million for the six months ended June 30, 2020 and 2019, respectively. Capitalized amounts are included as a component of property and equipment under computer equipment and software on the Consolidated Balance Sheets. The portion of total depreciation expense related to capitalized internal-use software was $7.8 million and $7.5 million for the three months ended June 30, 2020 and 2019, respectively, and $14.9 million and $14.8 million for the six months ended June 30, 2020 and 2019, respectively. Depreciation expense related to capitalized internal-use software is included in cost of revenue in the Consolidated Statements of Operations. As of June 30, 2020 and December 31, 2019, the Company had capitalized internal-use software of $39.9 million and $41.8 million, respectively, net of accumulated depreciation, which was included in property and equipment, net. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company’s goodwill balance is attributable to its Content reporting unit and is tested for impairment annually on October 1 or upon a triggering event. No triggering events were identified during the six months ended June 30, 2020. The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2020 (in thousands): Goodwill Balance as of December 31, 2019 $ 88,974 Foreign currency translation adjustment (807) Balance as of June 30, 2020 $ 88,167 Intangible Assets Intangible assets consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands): As of June 30, 2020 As of December 31, 2019 Gross Accumulated Weighted Gross Accumulated Amortizing intangible assets: Customer relationships $ 16,982 $ (9,648) 9 $ 17,729 $ (9,294) Trade name 6,237 (5,778) 7 6,517 (5,941) Developed technology 4,677 (4,368) 4 4,841 (4,226) Contributor content 24,812 (7,883) 9 23,510 (6,626) Patents 259 (108) 18 259 (100) Total $ 52,967 $ (27,785) $ 52,856 $ (26,187) Amortization expense was $1.2 million and $2.9 million for the three months ended June 30, 2020 and 2019, respectively, and $2.5 million and $4.2 million for the six months ended June 30, 2020 and 2019, respectively. Cost of revenue includes amortization expense of $0.7 million and $0.5 million for the three months ended June 30, 2020 and 2019, respectively, and $1.3 million and $0.9 million for the six months ended June 30, 2020 and 2019, respectively. General and administrative expense includes amortization expense of $0.5 million and $2.4 million for the three months ended June 30, 2020 and 2019, respectively, and $1.2 million and $3.3 million for the six months ended June 30, 2020 and 2019, respectively. The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $2.9 million for the remaining six months of 2020, $5.1 million in 2021, $4.8 million in 2022, $4.1 million in 2023, $3.2 million in 2024, $1.9 million in 2025 and $3.2 million thereafter. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following (in thousands): As of June 30, 2020 As of December 31, 2019 Compensation $ 18,902 $ 20,776 Non-income taxes 16,316 15,332 Website hosting and marketing fees 8,343 8,657 Other expenses 7,993 9,099 Total accrued expenses $ 51,554 $ 53,864 |
Stockholders_ Equity and Equity
Stockholders’ Equity and Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders’ Equity and Equity-Based Compensation | Stockholders’ Equity and Equity-Based Compensation Stockholders’ Equity Common Stock The Company issued approximately 126,000 and 57,000 shares of common stock during the three months ended June 30, 2020 and 2019, respectively, and 190,000 and 198,000 for the six months ended June 30, 2020 and 2019, respectively, primarily related to the exercise of stock options and the vesting of Restricted Stock Units (“RSUs”). Treasury Stock In October 2015, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $100 million of its common stock. In February 2017, the Company’s Board of Directors approved an increase to the share repurchase program, authorizing the Company to repurchase up to an additional $100 million of its outstanding common stock. During the six months ended June 30, 2020 and 2019, the Company did not repurchase any shares of its common stock under the share repurchase program. As of June 30, 2020, the Company had $100 million of remaining authorization for purchases under the share repurchase program. The Company expects to fund future repurchases, if any, through a combination of cash on hand, cash generated by operations and future financing transactions, if appropriate. Accordingly, the share repurchase program is subject to the Company having available cash to fund repurchases. Under the share repurchase program, management is authorized to purchase shares of the Company’s common stock from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. Dividends The Company declared and paid cash dividends of $0.17 and $0.34 per share of common stock, or $6.1 million and $12.1 million, during the three and six months ended June 30, 2020. On July 20, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.17 per share of outstanding common stock payable on September 17, 2020 to stockholders of record at the close of business on September 3, 2020. Future declaration of dividends are subject to the final determination of the Board of Directors, and will depend on, among other things, the Company’s future financial condition, results of operations, capital requirements, capital expenditure requirements, contractual restrictions, anticipated cash needs, business prospects, provisions of applicable law and other factors the Board of Directors may deem relevant. Equity-Based Compensation The Company recognizes stock-based compensation expense for all equity-based payment awards, including employee stock options and RSUs granted under the Company’s Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”), based on the fair value of each award on the grant date. The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of revenue $ 99 $ 105 $ 150 $ 190 Sales and marketing 374 675 834 1,257 Product development 1,068 1,252 2,193 2,427 General and administrative 2,095 5,719 6,219 8,501 Total $ 3,636 $ 7,751 $ 9,396 $ 12,375 The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options $ 414 $ 2,176 $ 1,730 $ 3,067 RSUs 3,222 5,575 7,666 9,308 Total $ 3,636 $ 7,751 $ 9,396 $ 12,375 Stock Option Awards During the six months ended June 30, 2020, the Company granted 53,000 options to purchase shares of its common stock with a weighted average exercise price of $42.96. As of June 30, 2020, there were approximately 338,000 options vested and exercisable with a weighted average exercise price of $34.59. As of June 30, 2020, the total unrecognized compensation charge related to non-vested options was approximately $2.0 million, which is expected to be recognized through 2023. Restricted Stock Unit Awards During the six months ended June 30, 2020, the Company had RSU grants, net of forfeitures, of approximately 292,000. As of June 30, 2020, there are approximately 1,139,000 non-vested RSUs (including performance-based restricted stock units, or PRSUs) outstanding with a weighted average grant-date fair value of $39.83. As of June 30, 2020, the total unrecognized non-cash equity-based compensation charge related to the non-vested RSUs was approximately $26.6 million, which is expected to be recognized through 2023. During the six months ended June 30, 2020, shares of common stock with an aggregate value of $3.4 million were withheld upon vesting of RSUs and paid in connection with related remittance of employee withholding taxes to taxing authorities. On July 20, 2020, the Company granted approximately 332,000 PRSUs with a grant date fair value of $12.7 million. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company distributes its content offerings through two primary channels: E-commerce: The majority of the Company’s customers license content directly through the Company’s self-service web properties. E-commerce customers have the flexibility to purchase a subscription plan that is paid on a monthly or annual basis or to license content on a transactional basis. These customers generally license content under the Company’s standard or enhanced licenses, with additional licensing options available to meet customers’ individual needs. E-commerce customers typically pay the full amount of the purchase price in advance or at the time of license, generally with a credit card. Enterprise: The Company also has a base of customers with unique content, licensing and workflow needs. These customers benefit from communication with dedicated sales professionals, service and research teams which provide a number of tailored enhancements to their creative workflows including non-standard licensing rights, multi-seat access, ability to pay on credit terms, multi-brand licensing packages, increased indemnification protection and content licensed for use-cases outside of those available on the E-commerce platform. The Company’s revenues by distribution channel for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 E-commerce $ 98,164 $ 96,993 $ 197,900 $ 195,106 Enterprise 61,066 64,748 122,615 129,967 Total Revenues $ 159,230 $ 161,741 $ 320,515 $ 325,073 The June 30, 2020 deferred revenue balance will be earned as content is downloaded or upon the expiration of subscription-based products, and nearly all is expected to be earned within the next twelve months. $91.0 million of total revenue recognized for the six months ended June 30, 2020 was reflected in deferred revenue as of December 31, 2019. |
Other Income _ (Expense), net
Other Income / (Expense), net | 6 Months Ended |
Jun. 30, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income / (Expense), net | Other Income, net The following table presents a summary of the Company’s other income and expense activity included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Foreign currency gain / (loss) $ 132 $ (569) $ (466) $ (730) Interest income 17 1,153 1,128 2,210 Total other income $ 149 $ 584 $ 662 $ 1,480 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates yielded a net expense of 16.3% and 9.7% for the three months ended June 30, 2020 and 2019, respectively, and a net expense of 19.6% and 14.5% for the six months ended June 30, 2020 and 2019, respectively. During the three months ended June 30, 2020, the net effect of discrete items decreased the effective tax rate by 0.3%. For the six months ended June 30, 2020, the effective tax rate increased by 1.6% as a result of a loss jurisdiction with no tax benefit. Discrete items further increased the effective tax rate by 1.4%. Excluding the discrete items, our effective tax rate would have been 16.6% for the three and six months ended June 30, 2020. In the three and six months ended June 30, 2019, the impact of discrete tax items decreased the effective tax rate by 3.4% and 1.8%, respectively. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding a loss jurisdiction with no tax benefit and the application of discrete items, if any, in the applicable period. The estimated annual effective tax rate differs from the statutory tax rate due primarily to the effect of the foreign-derived intangible income deduction and the U.S. Research and Development tax credit. During the three and six months ended June 30, 2020 and during the three months ended June 30, 2019, uncertain tax positions recorded by the Company were not significant. During the six months ended June 30, 2019, uncertain tax positions recorded by the Company resulted in an expense of $1.0 million. To the extent the remaining uncertain tax positions are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not significant for the three and six months ended June 30, 2020 and 2019. During the six months ended June 30, 2020 and 2019, the Company paid net cash taxes of $0.9 million and $1.5 million, respectively. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed using the weighted average number of shares of common stock outstanding for the period, excluding unvested RSUs and stock options. Diluted net income per share is based upon the weighted average shares of common stock outstanding for the period plus dilutive potential shares of common stock, including unvested RSUs and stock options using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income $ 18,987 $ 3,299 $ 23,305 $ 10,821 Shares used to compute basic net income per share 35,652 35,232 35,587 35,174 Dilutive potential common shares Stock options 39 102 53 104 Unvested restricted stock awards 215 170 254 221 Shares used to compute diluted net income per share 35,906 35,504 35,894 35,499 Basic net income per share $ 0.53 $ 0.09 $ 0.65 $ 0.31 Diluted net income per share $ 0.53 $ 0.09 $ 0.65 $ 0.30 Dilutive shares included in the calculation 1,304 1,005 1,080 992 Anti-dilutive shares excluded from the calculation 1,152 1,206 1,148 1,171 |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 North America $ 56,211 $ 57,657 $ 113,229 $ 115,171 Europe 52,207 53,647 106,003 109,132 Rest of the world 50,812 50,437 101,283 100,770 Total revenue $ 159,230 $ 161,741 $ 320,515 $ 325,073 The United States, included in North America in the above table, accounted for 32% of consolidated revenue for the six months ended June 30, 2020 and 2019. No other country accounts for more than 10% of the Company’s revenue in any period presented. The Company’s long-lived tangible assets were located as follows (in thousands): As of June 30, As of December 31, 2020 2019 North America $ 47,361 $ 51,954 Europe 6,557 6,541 Rest of the world 322 339 Total long-lived tangible assets $ 54,240 $ 58,834 The United States, included in North America in the above table, accounted for 77% and 79% of total long-lived tangible assets as of June 30, 2020 and December 31, 2019, respectively. No other country accounts for more than 10% of the Company’s long-lived tangible assets in any period presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of June 30, 2020, the Company had total non-lease obligations in the amount of approximately $39.2 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of June 30, 2020, the Company’s non-lease obligations for the remainder of 2020 and for the years ending December 31, 2021 and 2022 were approximately $18.2 million, $16.5 million and $4.4 million, respectively. Legal Matters From time to time, the Company may become party to litigation in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company reviews reserves, if any, at least quarterly and may change the amount of any such reserve in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and threats of litigation, investigations and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company currently has no material active litigation matters and, accordingly, no material reserves related to litigation. Indemnification and Employment Agreements In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to customers with respect to certain matters, including, but not limited to, losses arising out of the breach of the Company’s intellectual property warranties for damages to the customer directly attributable to the Company’s breach. The Company is not responsible for any damages, costs, or losses to the extent such damages, costs or losses arise as a result of any modifications made by the customer, or the context in which content is used. The standard maximum aggregate obligation and liability to any one customer for any single claim is generally limited to ten thousand dollars but can range to $250,000, with certain exceptions for which our indemnification obligation are uncapped. As of June 30, 2020, the Company had recorded no material liabilities related to indemnification obligations for loss contingencies. Additionally, the Company believes that it has the appropriate insurance coverage in place to adequately cover such indemnification obligations, if necessary. Pursuant to the Company’s charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its executive officers, certain employees and directors, as well as certain former officers and directors. The Company has also entered into employment agreements with its executive officers and certain employees. These agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination in the event of a change in control or otherwise, with or without cause. |
Summary of Operations and Sig_2
Summary of Operations and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. |
Unaudited Interim Financial Statements | The interim Consolidated Balance Sheet as of June 30, 2020, and the Consolidated Statements of Operations, Comprehensive Income and Stockholders’ Equity for the three and six months ended June 30, 2020 and 2019, and the Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019, are unaudited. The Consolidated Balance Sheet as of December 31, 2019, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. These unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include all normal recurring adjustments necessary to fairly state the Company’s financial position as of June 30, 2020, and its consolidated results of operations, comprehensive income, stockholders’ equity for the three and six months ended June 30, 2020 and 2019, and its cash flows for the six months ended June 30, 2020 and 2019. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or for any other future annual or interim period.These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 13, 2020. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the volume of expected unused licenses for our subscription-based products, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the grant-date fair value of non-cash equity-based compensation, the assessment of recoverability of deferred tax assets, the measurement of income tax and contingent non-income tax liabilities and the determination of the incremental borrowing rate used to calculate the lease liability. |
Cash, Cash Equivalents and Restricted Cash | The Company’s cash and cash equivalents consist of cash on hand and bank deposits. These assets are stated at cost, which approximates fair value. As of March 31, 2020, the Company was no longer required to provide cash collateral for its letter of credit for its New York City headquarters, and, accordingly, these funds are no longer restricted. |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company’s accounts receivable consists of customer obligations due under normal trade terms, carried at their face value less an allowance for doubtful accounts, if required. The Company determines its allowance for doubtful accounts based on an evaluation of the aging of its accounts receivable and on a customer-by-customer basis where appropriate. The Company’s reserve analysis contemplates the Company’s historical loss rate on receivables, specific customer situations and the economic environments in which the Company operates. |
Chargeback and Sales Refund Allowance and Revenue Recognition | Chargeback and Sales Refund Allowance The Company establishes a chargeback allowance and sales refund reserve allowance based on factors surrounding historical credit card chargeback trends, historical sales refund trends and other information. As of June 30, 2020 and December 31, 2019, the Company’s combined allowance for chargebacks and sales refunds was $0.4 million, which was included as a component of other current liabilities on the Consolidated Balance Sheets. Revenue Recognition The majority of the Company’s revenue is earned from the license of content. Content licenses are generally purchased on a monthly or annual basis, whereby a customer pays for a predetermined quantity of content that may be downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. The Company recognizes revenue upon the satisfaction of performance obligations, which generally occurs when content is downloaded by a customer. The Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded, at which time the license is provided. In addition, management estimates expected unused licenses for subscription-based products and recognizes the estimated revenue associated with the unused licenses as digital content is downloaded and licenses are obtained for such content by the customer during the subscription period. The estimate of unused licenses is based on historical download activity and future changes in the estimate could impact the timing of revenue recognition of the Company’s subscription products. The Company expenses contract acquisition costs as incurred, to the extent that the amortization period would otherwise be one year or less. Collectability is reasonably assured at the time the electronic order or contract is entered. The majority of the Company’s customers purchase products by making an electronic payment with a credit card at the time of a transaction. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. Customers that do not pay in advance are invoiced and are required to make payments under standard credit terms. Collectability for |
Recently Adopted and Issued Accounting Standard Updates | Recently Adopted Accounting Standard Updates In June 2016, the FASB issued ASU 2016-13, which as amended, replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Adoption of this guidance was required, prospectively, for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company adopted ASU 2016-13, as amended, effective January 1, 2020 using the modified retrospective method and recorded a cumulative-effect adjustment of $0.2 million, net of tax, in retained earnings as of January 1, 2020. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. Adoption of this guidance was required for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-13, effective January 1, 2020. The impact of adoption of this standard on the consolidated financial statements, including accounting policies, processes and systems, was not material. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirements for capitalizing implementation costs incurred for an internal-use software license. Adoption of this guidance was required for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and early adoption is permitted. Entities are permitted to choose to adopt the new guidance (1) prospectively for eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company adopted ASU 2018-15 on a prospective basis, effective January 1, 2020. The adoption of this standard is not expected to have a significant impact on our consolidated financial statements. Recently Issued Accounting Standard Updates In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU-2019-12”). ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. We are currently in the process of evaluating the effect that ASU 2019-12 will have on the Company's Consolidated Financial Statements. |
Summary of Operations and Sig_3
Summary of Operations and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash | The following represents the Company’s cash and cash equivalents and restricted cash balances as of June 30, 2020 and December 31, 2019 (in thousands): As of June 30, 2020 As of December 31, 2019 Cash and cash equivalents $ 311,157 $ 303,261 Restricted cash — 2,613 Total cash, cash equivalents and restricted cash $ 311,157 $ 305,874 |
Schedule of Cash and Cash Equivalents | The following represents the Company’s cash and cash equivalents and restricted cash balances as of June 30, 2020 and December 31, 2019 (in thousands): As of June 30, 2020 As of December 31, 2019 Cash and cash equivalents $ 311,157 $ 303,261 Restricted cash — 2,613 Total cash, cash equivalents and restricted cash $ 311,157 $ 305,874 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment is summarized as follows (in thousands): As of June 30, 2020 As of December 31, 2019 Computer equipment and software $ 179,580 $ 165,950 Furniture and fixtures 10,211 10,199 Leasehold improvements 19,260 19,203 Property and equipment 209,051 195,352 Less accumulated depreciation (154,811) (136,518) Property and equipment, net $ 54,240 $ 58,834 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table summarizes the changes in the Company’s goodwill balance during the six months ended June 30, 2020 (in thousands): Goodwill Balance as of December 31, 2019 $ 88,974 Foreign currency translation adjustment (807) Balance as of June 30, 2020 $ 88,167 |
Schedule of intangible assets | Intangible assets consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands): As of June 30, 2020 As of December 31, 2019 Gross Accumulated Weighted Gross Accumulated Amortizing intangible assets: Customer relationships $ 16,982 $ (9,648) 9 $ 17,729 $ (9,294) Trade name 6,237 (5,778) 7 6,517 (5,941) Developed technology 4,677 (4,368) 4 4,841 (4,226) Contributor content 24,812 (7,883) 9 23,510 (6,626) Patents 259 (108) 18 259 (100) Total $ 52,967 $ (27,785) $ 52,856 $ (26,187) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands): As of June 30, 2020 As of December 31, 2019 Compensation $ 18,902 $ 20,776 Non-income taxes 16,316 15,332 Website hosting and marketing fees 8,343 8,657 Other expenses 7,993 9,099 Total accrued expenses $ 51,554 $ 53,864 |
Stockholders_ Equity and Equi_2
Stockholders’ Equity and Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of non-cash equity-based compensation expense included in the Company's statement of operations | The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by financial statement line item included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of revenue $ 99 $ 105 $ 150 $ 190 Sales and marketing 374 675 834 1,257 Product development 1,068 1,252 2,193 2,427 General and administrative 2,095 5,719 6,219 8,501 Total $ 3,636 $ 7,751 $ 9,396 $ 12,375 The following table summarizes non-cash equity-based compensation expense, net of forfeitures, by award type included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options $ 414 $ 2,176 $ 1,730 $ 3,067 RSUs 3,222 5,575 7,666 9,308 Total $ 3,636 $ 7,751 $ 9,396 $ 12,375 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s revenues by distribution channel for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 E-commerce $ 98,164 $ 96,993 $ 197,900 $ 195,106 Enterprise 61,066 64,748 122,615 129,967 Total Revenues $ 159,230 $ 161,741 $ 320,515 $ 325,073 |
Other Income _ (Expense), net (
Other Income / (Expense), net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of the Company's other (expense) income, net activity | The following table presents a summary of the Company’s other income and expense activity included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Foreign currency gain / (loss) $ 132 $ (569) $ (466) $ (730) Interest income 17 1,153 1,128 2,210 Total other income $ 149 $ 584 $ 662 $ 1,480 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income $ 18,987 $ 3,299 $ 23,305 $ 10,821 Shares used to compute basic net income per share 35,652 35,232 35,587 35,174 Dilutive potential common shares Stock options 39 102 53 104 Unvested restricted stock awards 215 170 254 221 Shares used to compute diluted net income per share 35,906 35,504 35,894 35,499 Basic net income per share $ 0.53 $ 0.09 $ 0.65 $ 0.31 Diluted net income per share $ 0.53 $ 0.09 $ 0.65 $ 0.30 Dilutive shares included in the calculation 1,304 1,005 1,080 992 Anti-dilutive shares excluded from the calculation 1,152 1,206 1,148 1,171 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table presents the Company’s revenue based on customer location (in thousands): Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 North America $ 56,211 $ 57,657 $ 113,229 $ 115,171 Europe 52,207 53,647 106,003 109,132 Rest of the world 50,812 50,437 101,283 100,770 Total revenue $ 159,230 $ 161,741 $ 320,515 $ 325,073 |
Long-lived Assets by Geographic Areas | The Company’s long-lived tangible assets were located as follows (in thousands): As of June 30, As of December 31, 2020 2019 North America $ 47,361 $ 51,954 Europe 6,557 6,541 Rest of the world 322 339 Total long-lived tangible assets $ 54,240 $ 58,834 |
Summary of Operations and Sig_4
Summary of Operations and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Bad debt expense | $ 1,086 | $ (635) | ||
Allowance for doubtful accounts | 3,608 | $ 3,579 | ||
Chargeback and sales refund allowances | $ 400 | $ 400 | ||
Cumulative-effect adjustment | $ (247) | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment | (247) | |||
Accounting Standards Update 2016-13 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment | $ (200) |
Summary of Operations and Sig_5
Summary of Operations and Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 311,157 | $ 303,261 | ||
Restricted cash | 0 | 2,613 | ||
Total cash, cash equivalents and restricted cash | $ 311,157 | $ 305,874 | $ 261,682 | $ 233,465 |
Fair Value Measurements and O_2
Fair Value Measurements and Other Long-term Investments (Details) - Variable Interest Entity, Not Primary Beneficiary - Zcool Network Technology Limited - USD ($) $ in Millions | Jan. 04, 2018 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Variable interest investment | $ 15 | $ 15 | |
Convertible Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment value | $ 15 | ||
Equity ownership percent | 25.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property and Equipment | |||||
Property and equipment | $ 209,051 | $ 209,051 | $ 195,352 | ||
Less accumulated depreciation | (154,811) | (154,811) | (136,518) | ||
Property and equipment, net | 54,240 | 54,240 | 58,834 | ||
Depreciation expense | 9,600 | $ 10,500 | 18,900 | $ 21,100 | |
Capitalized amount | 6,500 | 5,800 | 13,100 | 12,300 | |
Amortization expense | 7,800 | 7,500 | 14,900 | 14,800 | |
Internal use software | 39,900 | 39,900 | 41,800 | ||
Computer equipment and software | |||||
Property and Equipment | |||||
Property and equipment | 179,580 | 179,580 | 165,950 | ||
Furniture and fixtures | |||||
Property and Equipment | |||||
Property and equipment | 10,211 | 10,211 | 10,199 | ||
Leasehold improvements | |||||
Property and Equipment | |||||
Property and equipment | 19,260 | 19,260 | $ 19,203 | ||
Cost of revenue | |||||
Property and Equipment | |||||
Depreciation expense | 8,600 | 9,300 | 16,800 | 18,600 | |
Selling, General and Administrative Expenses | |||||
Property and Equipment | |||||
Depreciation expense | $ 1,000 | $ 1,200 | $ 2,100 | $ 2,500 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Changes in goodwill | |
Balance at the beginning of the period | $ 88,974 |
Foreign currency translation adjustment | (807) |
Balance at the end of the period | $ 88,167 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Amortizing intangible assets | ||
Gross Carrying Amount | $ 52,967 | $ 52,856 |
Accumulated Amortization | (27,785) | (26,187) |
Customer relationships | ||
Amortizing intangible assets | ||
Gross Carrying Amount | 16,982 | 17,729 |
Accumulated Amortization | $ (9,648) | (9,294) |
Weighted Average Life (Years) | 9 years | |
Trade name | ||
Amortizing intangible assets | ||
Gross Carrying Amount | $ 6,237 | 6,517 |
Accumulated Amortization | $ (5,778) | (5,941) |
Weighted Average Life (Years) | 7 years | |
Developed technology | ||
Amortizing intangible assets | ||
Gross Carrying Amount | $ 4,677 | 4,841 |
Accumulated Amortization | $ (4,368) | (4,226) |
Weighted Average Life (Years) | 4 years | |
Contributor content | ||
Amortizing intangible assets | ||
Gross Carrying Amount | $ 24,812 | 23,510 |
Accumulated Amortization | $ (7,883) | (6,626) |
Weighted Average Life (Years) | 9 years | |
Patents | ||
Amortizing intangible assets | ||
Gross Carrying Amount | $ 259 | 259 |
Accumulated Amortization | $ (108) | $ (100) |
Weighted Average Life (Years) | 18 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Amortizing intangible assets | ||||
Amortization expense | $ 1.2 | $ 2.9 | $ 2.5 | $ 4.2 |
Remainder of 2020 | 2.9 | 2.9 | ||
2021 | 5.1 | 5.1 | ||
2022 | 4.8 | 4.8 | ||
2023 | 4.1 | 4.1 | ||
2024 | 3.2 | 3.2 | ||
2025 | 1.9 | 1.9 | ||
Thereafter | 3.2 | 3.2 | ||
Cost of revenue | ||||
Amortizing intangible assets | ||||
Amortization expense | 0.7 | 0.5 | 1.3 | 0.9 |
Selling, General and Administrative Expenses | ||||
Amortizing intangible assets | ||||
Amortization expense | $ 0.5 | $ 2.4 | $ 1.2 | $ 3.3 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Compensation | $ 18,902 | $ 20,776 |
Non-income taxes | 16,316 | 15,332 |
Website hosting and marketing fees | 8,343 | 8,657 |
Other expenses | 7,993 | 9,099 |
Total accrued expenses | $ 51,554 | $ 53,864 |
Stockholders_ Equity and Equi_3
Stockholders’ Equity and Equity-Based Compensation - Narrative (Details) - USD ($) | Jul. 20, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 28, 2017 | Oct. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued (in shares) | 126,000 | 57,000 | |||||
Payment of cash dividend (in dollars per share) | $ 0.17 | $ 0.34 | |||||
Cash dividend paid | $ 6,100,000 | $ 12,100,000 | |||||
Value of shares withheld | $ 3,436,000 | $ 5,181,000 | |||||
Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly cash dividend, declared (in usd per share) | $ 0.17 | ||||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued (in shares) | 190,000 | 198,000 | |||||
Authorized purchase amount (up to) | $ 100,000,000 | $ 100,000,000 | |||||
Value remaining for repurchase | $ 100,000,000 | $ 100,000,000 | |||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted (in shares) | 53,000 | ||||||
Options granted, weighted average exercise price (in dollars per share) | $ 42.96 | ||||||
Options vested and exercisable (in shares) | 338,000 | 338,000 | |||||
Options vested and exercisable, weighted average exercise price (in dollars per share) | $ 34.59 | $ 34.59 | |||||
Unrecognized compensation charge | $ 2,000,000 | $ 2,000,000 | |||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted (in shares) | 292,000 | ||||||
Weighted average grant-date fair value (in usd per share) | $ 39.83 | $ 39.83 | |||||
Nonvested shares outstanding (in shares) | 1,139,000 | 1,139,000 | |||||
Unrecognized non-cash equity-based compensation charge | $ 26,600,000 | $ 26,600,000 | |||||
Value of shares withheld | $ 3,400,000 | ||||||
Performance Restricted Stock Units (PRSUs) [Member] | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted (in shares) | 332,000 | ||||||
Grant date fair value | $ 12,700,000 |
Stockholders_ Equity and Equi_4
Stockholders’ Equity and Equity-Based Compensation - Summary of non-cash equity-based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | $ 3,636 | $ 7,751 | $ 9,396 | $ 12,375 |
Stock options | ||||
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | 414 | 2,176 | 1,730 | 3,067 |
RSUs | ||||
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | 3,222 | 5,575 | 7,666 | 9,308 |
Cost of revenue | ||||
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | 99 | 105 | 150 | 190 |
Sales and marketing | ||||
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | 374 | 675 | 834 | 1,257 |
Product development | ||||
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | 1,068 | 1,252 | 2,193 | 2,427 |
General and administrative | ||||
Non-cash equity-based compensation expense | ||||
Non-cash equity-based compensation | $ 2,095 | $ 5,719 | $ 6,219 | $ 8,501 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 159,230 | $ 161,741 | $ 320,515 | $ 325,073 |
Disposal group deferred revenue | 91,000 | |||
E-commerce | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 98,164 | 96,993 | 197,900 | 195,106 |
Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 61,066 | $ 64,748 | $ 122,615 | $ 129,967 |
Other Income _ (Expense), net_2
Other Income / (Expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Foreign currency gain / (loss) | $ 132 | $ (569) | $ (466) | $ (730) |
Interest income | 17 | 1,153 | 1,128 | 2,210 |
Total other income | $ 149 | $ 584 | $ 662 | $ 1,480 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate, expense (benefit) | (16.30%) | (9.70%) | 19.60% | 14.50% |
Increase (decrease) in effective tax rate, loss jurisdiction | (0.30%) | 1.60% | ||
Effective tax rate increase (decrease) | (3.40%) | 1.40% | (1.80%) | |
Unrecognized tax benefits, period increase (decrease) | $ (1,000) | |||
Cash paid for income taxes | $ 927 | 1,480 | ||
Proceeds from net tax refunds | $ 1,500 | |||
Effective Income Tax Rate Reconciliation, Excluding Discrete Items, Percent | 16.60% | 16.60% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 18,987 | $ 3,299 | $ 23,305 | $ 10,821 |
Shares used to compute basic net income per share (in shares) | 35,652 | 35,232 | 35,587 | 35,174 |
Dilutive potential common shares | ||||
Stock options (in shares) | 39 | 102 | 53 | 104 |
Unvested restricted stock awards (in shares) | 215 | 170 | 254 | 221 |
Shares used to compute diluted net income per share (in shares) | 35,906 | 35,504 | 35,894 | 35,499 |
Basic net income per share (in dollars per share) | $ 0.53 | $ 0.09 | $ 0.65 | $ 0.31 |
Diluted net income per share (in dollars per share) | $ 0.53 | $ 0.09 | $ 0.65 | $ 0.30 |
Dilutive securities included in the calculation (in shares) | 1,304 | 1,005 | 1,080 | 992 |
Anti-dilutive securities excluded from the calculation (in shares) | 1,152 | 1,206 | 1,148 | 1,171 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Geographic revenue based on customer location and long-lived tangible assets | |||||
Revenue | $ 159,230 | $ 161,741 | $ 320,515 | $ 325,073 | |
Total long-lived tangible assets | 54,240 | 54,240 | $ 58,834 | ||
North America | |||||
Geographic revenue based on customer location and long-lived tangible assets | |||||
Revenue | 56,211 | 57,657 | 113,229 | 115,171 | |
Total long-lived tangible assets | 47,361 | $ 47,361 | $ 51,954 | ||
United States | Revenue benchmark | Geographic concentration | |||||
Geographic revenue based on customer location and long-lived tangible assets | |||||
Concentration risk percentage | 32.00% | ||||
United States | Total long-lived tangible assets | Geographic concentration | |||||
Geographic revenue based on customer location and long-lived tangible assets | |||||
Concentration risk percentage | 77.00% | 79.00% | |||
Europe | |||||
Geographic revenue based on customer location and long-lived tangible assets | |||||
Revenue | 52,207 | 53,647 | $ 106,003 | 109,132 | |
Total long-lived tangible assets | 6,557 | 6,557 | $ 6,541 | ||
Rest of the world | |||||
Geographic revenue based on customer location and long-lived tangible assets | |||||
Revenue | 50,812 | $ 50,437 | 101,283 | $ 100,770 | |
Total long-lived tangible assets | $ 322 | $ 322 | $ 339 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Jun. 30, 2020USD ($) |
Other Commitments [Line Items] | |
Other obligations | $ 39,200,000 |
Maturity of unconditional purchase obligations | |
Remainder of 2020 | 18,200,000 |
2021 | 16,500,000 |
2022 | 4,400,000 |
Indemnifications | |
Maximum aggregate obligation and liability for customer | 250,000 |
Material indemnification obligation | 0 |
Indemnification Agreement | |
Indemnifications | |
Maximum possible loss per customer | $ 10,000 |
Uncategorized Items - sstk-2020
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 327,898,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 312,824,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (100,027,000) |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 2,558,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 120,940,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 381,000 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 38,055,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (6,220,000) |