Stock incentive plans

12 Months Ended

Dec. 31, 2012

Stock incentive plans

Stock incentive plans

13. Stock incentive plans

        In March 2011, our board of directors approved the 2011 Plan under which 5,511,288 shares of common stock are reserved for issuance. The 2011 Plan provides for the grant of incentive and nonstatutory stock options, stock appreciation rights, restricted shares of our common stock, stock units, and performance cash awards. As of January 1 of each year, the number of shares of common stock reserved for issuance under the 2011 Plan shall automatically be increased by a number equal to the lesser of (a) 4.5% of the total number of shares of common stock then outstanding, (b) 3,000,000 shares of common stock or (c) as determined by our board of directors. As of December 31, 2012, options to purchase 3,670,481 shares of common stock have been granted under the 2011 Plan.

        No further awards will be made under our 2001 Plan, which terminated pursuant to its terms. Options outstanding under the 2001 Plan will continue to be governed by their existing terms. As of December 31, 2012, options to purchase 2,344,742 shares of common stock were outstanding under the 2001 Plan.

        We recognized stock-based compensation expense as follows:

	Years ended December 31,
	2012		2011		2010
Network operations	$	352	$	463	$	131
Development and technology		352		577		115
Selling and marketing		571		650		171
General and administrative		1,460		1,733		450
Total stock-based compensation expense	$	2,735	$	3,423	$	867

        A summary of the stock option activity under the 2001 and 2011 Plans are as follows:

	Number of Options (000's)			Weighted Average Exercise Price		Weighted- Average Remaining Contract Life (years)		Aggregate Intrinsic Value
Outstanding at December 31, 2009		5,281		$	1.25		7.3	$	8,471
Granted		53		$	2.85
Exercised		(2	)	$	0.90
Cancelled/forfeited		(44	)	$	1.45
Outstanding at December 31, 2010		5,288		$	1.25		6.3	$	38,279
Granted		2,381		$	13.02
Exercised		(1,015	)	$	1.01
Cancelled/forfeited		(53	)	$	6.58
Outstanding at December 31, 2011		6,601		$	5.50		7.0	$	30,996
Granted		1,391		$	8.29
Exercised		(1,899	)	$	1.36
Cancelled/forfeited		(1,048	)	$	11.85
Outstanding at December 31, 2012		5,045		$	6.50		6.44	$	14,742
Vested, exercisable and expected to vest at December 31, 2012		4,855		$	6.37		6.34	$	14,690
Exercisable at December 31, 2012		2,776		$	3.46		4.52	$	13,964

        The aggregate intrinsic value in the table above represents the difference between the estimated fair value of our common stock at December 31, 2012 and the option exercise price, multiplied by the number of in-the-money options at December 31, 2012. The intrinsic value changes are based on the estimated fair value of our common stock. The total intrinsic value of stock options exercised for the years ended December 31, 2012, 2011 and 2010 was $14,901, $9,754 and $3, respectively. At December 31, 2012, the total remaining stock-based compensation expense for unvested awards is $9,130, which is expected to be recognized over a weighted average period of 3.2 years.

        Stock options to purchase 1,899,000, 1,015,000 and 2,000 shares of our common stock were exercised during the years ended December 31, 2012, 2011 and 2010 for cash proceeds of $2,573, $1,028 and $2, respectively.

        The weighted average grant date fair value of options granted for the years ended December 31, 2012, 2011 and 2010 was $8.10, $6.68 and $1.80, respectively.

        We realized $372 and $246 of tax benefits for the deductions from stock option exercises during 2012 and 2011, respectively. There was no tax benefit realized for the tax deductions from stock options exercised during 2010.