Summary of Operations and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Operations and Significant Accounting Policies [Abstract]

Summary of Stock-Based Compensation Expense Related to Employee Stock Options

The following table summarizes stock-based compensation expense related to employee stock options under ASC 718-10 included in Company’s Statements of Operations for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Cost of revenue	$	501	$	388	$	922	$	701
Product development expense		812		789		1,681		1,399
Sales and marketing expense		569		739		1,315		1,291
General and administrative expense		1,019		722		2,034		1,403
Total stock based compensation included in operating expenses	$	2,901	$	2,638	$	5,952	$	4,794

Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Dividend yield			0.0%			0.0%			0.0%			0.0%
Risk-free interest rate	0.65%	-	1.01%	0.72%	-	0.84%	0.65%	-	1.01%	0.72%	-	0.87%
Expected life (in years)			5.0			5.0			5.0			5.0
Historical volatility	56.68%	-	60.06%	60.6%		60.7%	56.68%	-	60.06%	60.3%	-	60.8%

Summary of Stock Option Activity and Weighted Average Exercise Prices

A summary of the Company’s stock option activity and weighted average exercise prices follows:

		Weighted
		Average
	Options	Exercise Price
Options outstanding at December 31, 2012	9,841,479	$	11.06
Options granted	676,300		12.49
Options exercised	(255,721)		6.34
Options cancelled	(917,841)		13.37
Options outstanding at June 30, 2013	9,344,217		11.07
Options exercisable at June 30, 2013	4,015,798	$	7.41

Summary of Status of Nonvested Shares

A summary of the status of the Company’s nonvested shares as of December 31, 2012, and changes during the six months ended June 30, 2013 is as follows:

		Weighted
		Average Grant-
	Options	Date Fair Value
Nonvested Shares at December 31, 2012	6,621,251	$	6.84
Granted	676,300		6.16
Vested	(1,051,291)		5.15
Cancelled	(917,841)		6.88
Nonvested Shares at June 30, 2013	5,328,419	$	7.07

Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share

A reconciliation of shares used in calculating basic and diluted earnings per share follows:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2013	2012	2013	2012
Basic	54,806,694	55,146,901	55,332,449	54,786,499
Effect of assumed exercised options	—	2,003,355	—	1,862,661
Diluted	54,806,694	57,150,256	55,332,449	56,649,160

Summary of Financial Information by Segment

Summarized financial information by segment for the three months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate		Business		Consumer
Revenue:
Hosted services – Business	$	36,634	$	—	$	36,634	$	—
Hosted services – Consumer		3,776		—				3,776
Professional services		2,819		—		2,819		—
Total revenue		43,229		—		39,453		3,776
Cost of revenue		10,612		—		9,974		638
Sales and marketing		15,499		—		14,243		1,256
Amortization of intangibles		224		—		224		—
Unallocated corporate expenses		18,882		18,882		—		—
Operating (loss) income	$	(1,988)	$	(18,882)	$	15,012	$	1,882

Summarized financial information by segment for the three months ended June 30, 2012, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate		Business		Consumer
Revenue:
Hosted services – Business	$	32,151	$	—	$	32,151	$	—
Hosted services – Consumer		3,961		—		—		3,961
Professional services		2,393		—		2,393		—
Total revenue		38,505		—		34,544		3,961
Cost of revenue		8,492		—		7,939		553
Sales and marketing		13,017		—		11,624		1,393
Amortization of intangibles		11		—		11		—
Unallocated corporate expenses		16,561		16,561		—		—
Operating income (loss)	$	424	$	(16,561)	$	14,970	$	2,015

Summarized financial information by segment for the six months ended June 30, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate		Business		Consumer
Revenue:
Hosted services – Business	$	72,778	$	—	$	72,778	$	—
Hosted services – Consumer		7,395		—				7,395
Professional services		5,552		—		5,552		—
Total revenue		85,725		—		78,330		7,395
Cost of revenue		20,746		—		19,510		1,236
Sales and marketing		29,977		—		27,449		2,528
Amortization of intangibles		448		—		448		—
Unallocated corporate expenses		37,140		37,140		—		—
Operating (loss) income	$	(2,586)	$	(37,140)	$	30,923	$	3,631

Summarized financial information by segment for the six months ended June 30, 2012, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate		Business		Consumer
Revenue:
Hosted services – Business	$	63,390	$	—	$	63,390	$	—
Hosted services – Consumer		7,809		—		—		7,809
Professional services		4,065		—		4,065		—
Total revenue		75,264		—		67,455		7,809
Cost of revenue		16,414		—		15,306		1,108
Sales and marketing		24,107		—		21,114		2,993
Amortization of intangibles		87		—		87		—
Unallocated corporate expenses		29,344		29,344		—		—
Operating income (loss)	$	5,312	$	(29,344)	$	30,948	$	3,708

Revenues Attributable to Domestic and Foreign Operations

Revenues attributable to domestic and foreign operations for the three months ended June 30, 2013 and 2012, follows:

	June 30,
	2013		2012
United States	$	30,433	$	29,225
United Kingdom		6,963		5,245
Other countries		5,833		4,035
Total revenue	$	43,229	$	38,505

Revenues attributable to domestic and foreign operations for the six months ended June 30, 2013 and 2012, follows:

	June 30,
	2013		2012
United States	$	60,518	$	57,380
United Kingdom		13,947		10,121
Other countries		11,260		7,763
Total revenue	$	85,725	$	75,264

Long-Lived Assets by Geographic Region

Long-lived assets by geographic region follows:

	June 30, 2013		December 31, 2012
United States	$	35,695	$	35,711
Israel		23,910		23,750
Australia		10,056		10,361
United Kingdom		1,511		2,600
Netherlands		636		—
Total long-lived assets	$	71,808	$	72,422

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2013 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2012	$	32,645	$	24,621	$	8,024
Adjustments to goodwill:
Engage acquisition (see Note 3)		79		79		—
Balance as of June 30, 2013	$	32,724	$	24,700	$	8,024

The changes in the carrying amount of goodwill for the year ended December 31, 2012 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2011	$	24,090	$	16,066	$	8,024
Adjustments to goodwill:
Engage acquisition		6,073		6,073		—
LookIO acquisition		2,405		2,405		—
Contingent earnout payments (see Note 3)		77		77		—
Balance as of December 31, 2012	$	32,645	$	24,621	$	8,024

Summary of Intangible Assets

Intangible assets are summarized as follows (see Note 3):

Acquired Intangible Assets

	As of June 30, 2013
			Weighted
	Gross		Average
	Carrying		Amortization		Accumulated
	Amount		Period		Amortization
Amortizing intangible assets:
Technology	$	18,533	3.8	years	$	6,341
Customer relationships		5,061	3.5	years		2,816
Trade names		725	2.7	years		692
Non-compete agreements		486	1.2	years		459
Patents		475	11.0	years		167
Other		285	3.0	years		243
Total	$	25,565			$	10,718

	As of December 31, 2012
			Weighted
	Gross		Average
	Carrying		Amortization		Accumulated
	Amount		Period		Amortization
Amortizing intangible assets:
Technology	$	18,533	3.8	years	$	5,904
Customer relationships		5,061	3.5	years		2,485
Trade names		725	2.7	years		644
Non-compete agreements		486	1.2	years		421
Patents		475	11.0	years		145
Other		235	3.0	years		235
Total	$	25,515			$	9,834