Form 10-Q |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended September 30, 2018 | ||
OR | ||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Transition period from to | ||
Commission file number: 001-35444 |
YELP INC. |
(Exact Name of Registrant as Specified in Its Charter) |
Delaware | 20-1854266 |
(State or Other Jurisdiction of | (I.R.S. Employer |
Incorporation or Organization) | Identification No.) |
140 New Montgomery Street, 9th Floor | |
San Francisco, CA 94105 | |
(Address of Principal Executive Offices) (Zip Code) |
Large accelerated filer ☒ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
Page | ||
Part I. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
September 30, 2018 | December 31, 2017 (1) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 423,495 | $ | 547,850 | |||
Short-term marketable securities | 414,002 | 273,366 | |||||
Accounts receivable (net of allowance for doubtful accounts of $8,885 and $8,602 at September 30, 2018 and December 31, 2017, respectively) | 81,835 | 76,173 | |||||
Prepaid expenses and other current assets | 17,567 | 15,700 | |||||
Total current assets | 936,899 | 913,089 | |||||
Long-term marketable securities | — | 25,032 | |||||
Property, equipment and software, net | 110,899 | 103,651 | |||||
Goodwill | 106,323 | 107,954 | |||||
Intangibles, net | 14,242 | 16,893 | |||||
Restricted cash | 22,121 | 18,554 | |||||
Other non-current assets | 42,773 | 40,428 | |||||
Total assets | $ | 1,233,257 | $ | 1,225,601 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 6,829 | $ | 9,033 | |||
Accrued liabilities | 58,564 | 73,665 | |||||
Deferred revenue | 3,392 | 3,469 | |||||
Total current liabilities | 68,785 | 86,167 | |||||
Long-term liabilities | 34,978 | 30,737 | |||||
Total liabilities | 103,763 | 116,904 | |||||
Commitments and contingencies (Note 12) | |||||||
Stockholders' equity: | |||||||
Common stock, $0.000001 par value, 200,000,000 shares authorized – 84,375,021 shares issued and outstanding at September 30, 2018 and 83,724,916 shares issued and outstanding at December 31, 2017 | — | — | |||||
Additional paid-in capital | 1,109,199 | 1,038,017 | |||||
Treasury stock | — | (46 | ) | ||||
Accumulated other comprehensive loss | (10,225 | ) | (8,444 | ) | |||
Retained earnings | 30,520 | 79,170 | |||||
Total stockholders' equity | 1,129,494 | 1,108,697 | |||||
Total liabilities and stockholders' equity | $ | 1,233,257 | $ | 1,225,601 |
(1) | As of January 1, 2018, the Company adopted Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASC 606"), using the full retrospective method. Accordingly, the Company has recast certain amounts in the prior period presented. See Note 1 below for additional discussion. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017(1) | 2018 | 2017(1) | ||||||||||||
Net revenue | $ | 241,096 | $ | 223,287 | $ | 699,033 | $ | 631,406 | |||||||
Costs and expenses: | |||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 14,177 | 19,312 | 43,618 | 54,282 | |||||||||||
Sales and marketing | 121,759 | 112,958 | 362,054 | 326,409 | |||||||||||
Product development | 53,764 | 45,834 | 158,046 | 127,793 | |||||||||||
General and administrative | 30,302 | 27,601 | 90,892 | 81,808 | |||||||||||
Depreciation and amortization | 10,713 | 10,656 | 31,250 | 31,470 | |||||||||||
Restructuring and integration | — | 35 | — | 286 | |||||||||||
Total costs and expenses | 230,715 | 216,396 | 685,860 | 622,048 | |||||||||||
Income from operations | 10,381 | 6,891 | 13,173 | 9,358 | |||||||||||
Other income, net | 3,921 | 1,371 | 9,950 | 2,933 | |||||||||||
Income before income taxes | 14,302 | 8,262 | 23,123 | 12,291 | |||||||||||
Benefit from (provision for) income taxes | 684 | (232 | ) | 281 | (417 | ) | |||||||||
Net income attributable to common stockholders | $ | 14,986 | $ | 8,030 | $ | 23,404 | $ | 11,874 | |||||||
Net income per share attributable to common stockholders | |||||||||||||||
Basic | $ | 0.18 | $ | 0.10 | $ | 0.28 | $ | 0.15 | |||||||
Diluted | $ | 0.17 | $ | 0.09 | $ | 0.26 | $ | 0.14 | |||||||
Weighted-average shares used to compute net income per share attributable to common stockholders | |||||||||||||||
Basic | 84,008 | 82,259 | 83,865 | 81,041 | |||||||||||
Diluted | 88,724 | 87,433 | 89,271 | 86,097 |
(1) | As of January 1, 2018, the Company adopted ASC 606 using the full retrospective method. Accordingly, the Company has recast certain amounts in the prior periods presented. See Note 1 below for additional discussion. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017(1) | 2018 | 2017(1) | ||||||||||||
Net income attributable to common stockholders | $ | 14,986 | $ | 8,030 | $ | 23,404 | $ | 11,874 | |||||||
Other comprehensive (loss) income: | |||||||||||||||
Foreign currency translation adjustments | (193 | ) | 2,041 | (1,811 | ) | 6,673 | |||||||||
Foreign currency adjustments to net income upon liquidation of investment in foreign entities | — | (175 | ) | 30 | (204 | ) | |||||||||
Other comprehensive (loss) income | (193 | ) | 1,866 | (1,781 | ) | 6,469 | |||||||||
Comprehensive income | $ | 14,793 | $ | 9,896 | $ | 21,623 | $ | 18,343 |
(1) | As of January 1, 2018, the Company adopted ASC 606 using the full retrospective method. Accordingly, the Company has recast certain amounts in the prior periods presented. See Note 1 below for additional discussion. |
Nine Months Ended September 30, | |||||||
2018 | 2017(1) | ||||||
OPERATING ACTIVITIES: | |||||||
Net income attributable to common stockholders | $ | 23,404 | $ | 11,874 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 31,250 | 31,470 | |||||
Bad debt expense | 19,285 | 15,239 | |||||
Stock-based compensation | 85,732 | 75,007 | |||||
Other adjustments | (2,793 | ) | 280 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (24,956 | ) | (19,810 | ) | |||
Prepaid expenses and other assets | (2,085 | ) | (2,077 | ) | |||
Accounts payable, accrued expenses and other liabilities | (13,647 | ) | 15,628 | ||||
Deferred revenue | (75 | ) | 350 | ||||
Net cash provided by operating activities | 116,115 | 127,961 | |||||
INVESTING ACTIVITIES: | |||||||
Purchases of marketable securities | (572,788 | ) | (179,557 | ) | |||
Maturities of marketable securities | 460,800 | 191,000 | |||||
Acquisition of a business, net of cash received | — | (50,544 | ) | ||||
Purchases of property, equipment and software | (18,699 | ) | (7,892 | ) | |||
Capitalized website and software development costs | (15,238 | ) | (12,236 | ) | |||
Other investing activities | 64 | 69 | |||||
Net cash used in investing activities | (145,861 | ) | (59,160 | ) | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from issuance of common stock for employee stock-based plans | 21,835 | 29,556 | |||||
Repurchases of common stock | (71,993 | ) | (7,743 | ) | |||
Taxes paid related to the net share settlement of equity awards | (41,081 | ) | — | ||||
Net cash (used in) provided by financing activities | (91,239 | ) | 21,813 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 197 | 864 | |||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (120,788 | ) | 91,478 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 566,404 | 289,518 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | $ | 445,616 | $ | 380,996 | |||
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||||||
Cash paid for income taxes, net | $ | 28,820 | $ | 82 | |||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Purchases of property, equipment and software recorded in accounts payable, accrued expenses and other liabilities | $ | 2,393 | $ | 3,555 | |||
Tax liability related to net share settlement of equity awards included in accrued liabilities | 1,679 | — |
(1) | As of January 1, 2018, the Company adopted ASC 606 using the full retrospective method. Accordingly, the Company has recast certain amounts in the prior period presented. Also as of January 1, 2018, the Company adopted Accounting Standards Update No. 2016-18, "Statement of Cash Flows (Subtopic 230): Restricted Cash," and recast the prior period presented. See Note 1 below for additional discussion. |
As Previously Reported | Impact of ASC 606 Adoption | As Currently Reported | ||||||||||
Condensed Consolidated Statement of Operations—Three Months Ended September 30, 2017 | ||||||||||||
Net revenue | $ | 222,380 | $ | 907 | $ | 223,287 | ||||||
Costs and Expenses: | ||||||||||||
Sales and marketing | 113,041 | (83 | ) | 112,958 | ||||||||
General and administrative | 26,694 | 907 | 27,601 | |||||||||
Net income attributable to common stockholders | 7,947 | 83 | 8,030 | |||||||||
Condensed Consolidated Statement of Operations—Nine Months Ended September 30, 2017 | ||||||||||||
Net revenue | $ | 628,567 | $ | 2,839 | $ | 631,406 | ||||||
Costs and Expenses: | ||||||||||||
Sales and marketing | 327,559 | (1,150 | ) | 326,409 | ||||||||
General and administrative | 78,969 | 2,839 | 81,808 | |||||||||
Net income attributable to common stockholders | 10,724 | 1,150 | 11,874 | |||||||||
Basic net income per share | 0.13 | 0.02 | 0.15 | |||||||||
Diluted net income per share | 0.12 | 0.02 | 0.14 | |||||||||
Condensed Consolidated Balance Sheet—As of December 31, 2017 | ||||||||||||
Allowance for doubtful accounts | 7,352 | 1,250 | 8,602 | |||||||||
Other non-current assets | 31,339 | 9,089 | 40,428 | |||||||||
Retained earnings | 70,081 | 9,089 | 79,170 | |||||||||
Condensed Consolidated Statement of Cash Flows—Nine Months Ended September 30, 2017 | ||||||||||||
Bad debt expense | 12,400 | 2,839 | 15,239 | |||||||||
Change in accounts receivable | (16,971 | ) | (2,839 | ) | (19,810 | ) | ||||||
Other adjustments to reconcile net income to net cash provided by operating activities | (927 | ) | (1,150 | ) | (2,077 | ) |
• | finalization of the impact analysis of the new standard; |
• | new lease contracts entered into during the three months ending December 31, 2018 that result in additional lease assets and lease liabilities; |
• | changes in discount rates used to calculate the initial lease liability; |
• | significant changes in foreign exchange rates applied to lease liabilities and right-of-use assets denominated in currencies other than U.S. dollars; and |
• | changes in the Company's expectations for renewal options of existing leases. |
September 30, 2018 | December 31, 2017 | ||||||
Cash | $ | 166,336 | $ | 283,085 | |||
Cash equivalents | 257,159 | 264,765 | |||||
Total cash and cash equivalents | $ | 423,495 | $ | 547,850 | |||
Restricted cash | 22,121 | 18,554 | |||||
Total cash, cash equivalents and restricted cash | $ | 445,616 | $ | 566,404 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cash Equivalents: | |||||||||||||||||||||||||||||||
Money market funds | $ | 219,742 | $ | — | $ | — | $ | 219,742 | $ | 217,838 | $ | — | $ | — | $ | 217,838 | |||||||||||||||
Commercial paper | — | 37,417 | — | 37,417 | — | 46,927 | — | 46,927 | |||||||||||||||||||||||
Marketable Securities: | |||||||||||||||||||||||||||||||
Commercial paper | — | 158,506 | — | 158,506 | — | 138,412 | — | 138,412 | |||||||||||||||||||||||
Corporate bonds | — | 137,967 | — | 137,967 | — | 69,926 | — | 69,926 | |||||||||||||||||||||||
U.S. government bonds | — | 69,208 | — | 69,208 | — | — | — | — | |||||||||||||||||||||||
Agency bonds | — | 48,047 | — | 48,047 | — | 78,913 | — | 78,913 | |||||||||||||||||||||||
Agency discount notes | — | — | — | — | — | 10,989 | — | 10,989 | |||||||||||||||||||||||
Total cash equivalents and marketable securities | $ | 219,742 | $ | 451,145 | $ | — | $ | 670,887 | $ | 217,838 | $ | 345,167 | $ | — | $ | 563,005 |
September 30, 2018 | ||||||||||||||||
Short-term marketable securities: | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Commercial paper | $ | 158,506 | $ | — | $ | — | $ | 158,506 | ||||||||
Corporate bonds | 138,141 | — | (174 | ) | 137,967 | |||||||||||
U.S. government bonds | 69,241 | — | (33 | ) | 69,208 | |||||||||||
Agency bonds | 48,114 | — | (67 | ) | 48,047 | |||||||||||
Total short-term marketable securities | 414,002 | — | (274 | ) | 413,728 | |||||||||||
Total marketable securities | $ | 414,002 | $ | — | $ | (274 | ) | $ | 413,728 |
December 31, 2017 | ||||||||||||||||
Short-term marketable securities: | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Commercial paper | $ | 138,412 | $ | 1 | $ | (1 | ) | $ | 138,412 | |||||||
Corporate bonds | 45,006 | — | (41 | ) | 44,965 | |||||||||||
Agency bonds | 78,958 | — | (45 | ) | 78,913 | |||||||||||
Agency discount bonds | $ | 10,990 | $ | — | $ | (1 | ) | $ | 10,989 | |||||||
Total short-term marketable securities | $ | 273,366 | $ | 1 | $ | (88 | ) | $ | 273,279 | |||||||
Long-term marketable securities: | ||||||||||||||||
Corporate bonds | $ | 25,032 | $ | — | $ | (71 | ) | $ | 24,961 | |||||||
Total long-term marketable securities | $ | 25,032 | $ | — | $ | (71 | ) | $ | 24,961 | |||||||
Total marketable securities | $ | 298,398 | $ | 1 | $ | (159 | ) | $ | 298,240 |
September 30, 2018 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Corporate bonds | $ | 132,992 | $ | (174 | ) | $ | — | $ | — | $ | 132,992 | $ | (174 | ) | |||||||||
Agency bonds | 48,047 | (67 | ) | — | — | 48,047 | (67 | ) | |||||||||||||||
U.S. government bonds | 69,208 | (33 | ) | — | — | 69,208 | (33 | ) | |||||||||||||||
Commercial paper | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 250,247 | $ | (274 | ) | $ | — | $ | — | $ | 250,247 | $ | (274 | ) |
December 31, 2017 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Agency bonds | $ | 78,913 | $ | (45 | ) | $ | — | $ | — | $ | 78,913 | $ | (45 | ) | |||||||||
Corporate bonds | 62,927 | (112 | ) | — | — | 62,927 | (112 | ) | |||||||||||||||
Agency discount notes | 10,989 | (1 | ) | — | — | 10,989 | (1 | ) | |||||||||||||||
Commercial paper | 3,975 | (1 | ) | — | — | 3,975 | (1 | ) | |||||||||||||||
Total | $ | 156,804 | $ | (159 | ) | $ | — | $ | — | $ | 156,804 | $ | (159 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Capitalized website and internal-use software development costs | $ | 102,004 | $ | 81,710 | |||
Leasehold improvements | 79,589 | 74,236 | |||||
Computer equipment | 40,129 | 32,450 | |||||
Furniture and fixtures | 17,351 | 16,435 | |||||
Telecommunication | 4,554 | 3,996 | |||||
Software | 1,515 | 1,212 | |||||
Total | 245,142 | 210,039 | |||||
Less accumulated depreciation | (134,243 | ) | (106,388 | ) | |||
Property, equipment and software, net | $ | 110,899 | $ | 103,651 |
Balance as of December 31, 2017 | $ | 107,954 | |
Effect of foreign currency translation | (1,631 | ) | |
Balance as of September 30, 2018 | $ | 106,323 |
September 30, 2018 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||
Business relationships | $ | 9,918 | $ | (1,625 | ) | $ | 8,293 | 9.7 | years | |||||
Developed technology | 7,832 | (3,189 | ) | 4,643 | 3.4 | years | ||||||||
Content | 3,912 | (3,681 | ) | 231 | 1.0 | years | ||||||||
Domains and data licenses | 2,869 | (2,231 | ) | 638 | 1.6 | years | ||||||||
Trademarks | 877 | (506 | ) | 371 | 1.4 | years | ||||||||
User relationships | 146 | (80 | ) | 66 | 1.5 | years | ||||||||
Total | $ | 25,554 | $ | (11,312 | ) | $ | 14,242 |
December 31, 2017 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||
Business relationships | $ | 9,918 | $ | (896 | ) | $ | 9,022 | 10.3 | years | |||||
Developed technology | 7,832 | (2,071 | ) | 5,761 | 4.1 | years | ||||||||
Content | 4,005 | (3,610 | ) | 395 | 1.8 | years | ||||||||
Domain and data licenses | 2,869 | (1,847 | ) | 1,022 | 2.2 | years | ||||||||
Trademarks | 877 | (287 | ) | 590 | 2.2 | years | ||||||||
User relationships | 146 | (43 | ) | 103 | 2.2 | years | ||||||||
Total | $ | 25,647 | $ | (8,754 | ) | $ | 16,893 |
Year Ending December 31, | Amount | |||
2018 (from October 1, 2018) | $ | 882 | ||
2019 | 3,277 | |||
2020 | 2,402 | |||
2021 | 2,262 | |||
2022 | 1,045 | |||
Thereafter | 4,374 | |||
Total amortization | $ | 14,242 |
February 28, 2017 | |||
Fair value of purchase consideration | |||
Cash: | |||
Distributed to Nowait stockholders | $ | 31,892 | |
Held in escrow account | 7,945 | ||
Total purchase consideration | $ | 39,837 | |
Fair value of net assets acquired: | |||
Cash and cash equivalents | $ | 1,004 | |
Intangible assets | 12,670 | ||
Goodwill | 25,959 | ||
Other assets | 1,065 | ||
Total assets acquired | 40,698 | ||
Liabilities assumed | (861 | ) | |
Total liabilities assumed | (861 | ) | |
Net assets acquired | $ | 39,837 |
Intangible Asset Type | Amount Assigned | Useful Life | ||||
Enterprise restaurant relationships | $ | 8,500 | 12.0 years | |||
Acquired technology | 2,900 | 5.0 years | ||||
Trademarks | 610 | 3.0 years | ||||
Local restaurant relationships | 600 | 5.0 years | ||||
User relationships | 60 | 3.0 years | ||||
Weighted average | 9.6 years |
April 3, 2017 | |||
Fair value of purchase consideration | |||
Cash: | |||
Distributed to Turnstyle stockholders | $ | 16,648 | |
Held in escrow account | 3,093 | ||
Total purchase consideration | $ | 19,741 | |
Fair value of net assets acquired: | |||
Cash and cash equivalents | $ | 30 | |
Intangible assets | 4,252 | ||
Goodwill | 16,048 | ||
Other assets | 250 | ||
Total assets acquired | 20,580 | ||
Deferred tax liability | (450 | ) | |
Liabilities assumed | (389 | ) | |
Total liabilities assumed | (839 | ) | |
Net assets acquired | $ | 19,741 |
Intangible Asset Type | Amount Assigned | Useful Life | ||||
Acquired technology | $ | 3,250 | 5.0 years | |||
Business relationships | 672 | 5.0 years | ||||
Trademarks | 250 | 3.0 years | ||||
User relationships | 80 | 3.0 years | ||||
Weighted average | 4.9 years |
September 30, 2018 | December 31, 2017 | ||||||
Escrow deposit | $ | 28,750 | $ | 28,750 | |||
Deferred contract costs | 11,367 | 9,089 | |||||
Other | 2,656 | 2,589 | |||||
Total other non-current assets | $ | 42,773 | $ | 40,428 |
Nine Months Ended September 30, 2018 | |||
Balance, beginning of period | $ | 9,089 | |
Add: costs deferred on new contracts | 10,629 | ||
Less: amortization recorded in sales and marketing expenses | (8,351 | ) | |
Balance, end of period | $ | 11,367 |
Nine Months Ended September 30, 2018 | |||
Balance, beginning of period | $ | 8,602 | |
Add: bad debt expense | 19,285 | ||
Less: write-offs, net of recoveries | (19,002 | ) | |
Balance, end of period | $ | 8,885 |
Nine Months Ended September 30, 2018 | |||
Balance, beginning of period | $ | 3,469 | |
Less: Recognition of deferred revenue from beginning balance | (3,132 | ) | |
Add: Net increase in current period contract liabilities | 3,055 | ||
Balance, end of period | $ | 3,392 |
September 30, 2018 | December 31, 2017 | ||||||
Accrued compensation | $ | 27,652 | $ | 17,725 | |||
Accrued sales and marketing | 6,057 | 3,458 | |||||
Accrued tax liabilities | 4,785 | 32,617 | |||||
Accrued cost of revenue | 5,397 | 3,022 | |||||
Other accrued expenses | 14,673 | 16,843 | |||||
Total accrued liabilities | $ | 58,564 | $ | 73,665 |
September 30, 2018 | December 31, 2017 | ||||||
Deferred rent | $ | 30,446 | $ | 26,904 | |||
Other long-term liabilities | 4,532 | 3,833 | |||||
Total long-term liabilities | $ | 34,978 | $ | 30,737 |
September 30, 2018 | December 31, 2017 | ||||||||||
Shares Authorized | Shares Issued | Shares Authorized | Shares Issued | ||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.000001 par value | 200,000,000 | 84,375,021 | 200,000,000 | 83,724,916 | |||||||
Undesignated Preferred Stock | 10,000,000 | — | 10,000,000 | — |
Options Outstanding | ||||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding - December 31, 2017 | 7,078,932 | $ | 22.70 | 5.56 | $ | 145,613 | ||||||
Granted | 685,850 | 43.52 | ||||||||||
Exercised | (737,986 | ) | 19.91 | |||||||||
Canceled | (109,361 | ) | 48.85 | |||||||||
Outstanding - September 30, 2018 | 6,917,435 | $ | 24.65 | 5.38 | $ | 174,842 | ||||||
Options vested and exercisable as of September 30, 2018 | 5,543,179 | $ | 21.71 | 4.60 | $ | 157,306 |
Restricted Stock Units | ||||||
Number of Shares | Weighted-Average Grant Date Fair Value | |||||
Unvested - December 31, 2017 | 7,249,205 | $ | 34.57 | |||
Granted | 3,029,151 | 42.59 | ||||
Released | (2,393,407 | ) | 36.06 | |||
Canceled | (1,087,920 | ) | 36.02 | |||
Unvested - September 30, 2018 | 6,797,029 | $ | 37.39 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue | $ | 1,162 | $ | 993 | $ | 3,345 | $ | 2,931 | |||||||
Sales and marketing | 7,941 | 7,305 | 23,514 | 21,434 | |||||||||||
Product development | 14,536 | 11,976 | 41,878 | 34,428 | |||||||||||
General and administrative | 5,555 | 5,035 | 16,995 | 16,214 | |||||||||||
Total stock-based compensation | $ | 29,194 | $ | 25,309 | $ | 85,732 | $ | 75,007 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest income, net | $ | 3,705 | $ | 991 | $ | 9,606 | $ | 2,431 | |||||||
Transaction gain on foreign exchange | 75 | 323 | 89 | 377 | |||||||||||
Other non-operating income, net | 141 | 57 | 255 | 125 | |||||||||||
Other income, net | $ | 3,921 | $ | 1,371 | $ | 9,950 | $ | 2,933 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Benefit from (provision for) income taxes | $ | 684 | $ | (232 | ) | $ | 281 | $ | (417 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Basic net income per share: | |||||||||||||||
Net income | $ | 14,986 | $ | 8,030 | $ | 23,404 | $ | 11,874 | |||||||
Shares used in computation: | |||||||||||||||
Weighted-average common shares outstanding | 84,008 | 82,259 | 83,865 | 81,041 | |||||||||||
Basic net income per share attributable to common stockholders | $ | 0.18 | $ | 0.10 | $ | 0.28 | $ | 0.15 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Diluted net income per share | |||||||||||||||
Net income | 14,986 | 8,030 | 23,404 | 11,874 | |||||||||||
Shares used in computation: | |||||||||||||||
Weighted-average common shares outstanding | 84,008 | 82,259 | 83,865 | 81,041 | |||||||||||
Stock options | 3,011 | 3,253 | 3,096 | 3,179 | |||||||||||
Restricted stock units | 1,656 | 1,921 | 2,240 | 1,877 | |||||||||||
Employee stock purchase program | 49 | — | 70 | — | |||||||||||
Number of shares used in diluted calculation | 88,724 | 87,433 | 89,271 | 86,097 | |||||||||||
Diluted net income per share attributable to common stockholders | $ | 0.17 | $ | 0.09 | $ | 0.26 | $ | 0.14 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Stock options | 1,694 | 1,793 | 1,681 | 1,911 | |||||||
Restricted stock units | 591 | 871 | 106 | 978 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net revenue by product: | |||||||||||||||
Advertising | $ | 232,502 | $ | 200,502 | $ | 672,712 | $ | 566,085 | |||||||
Transactions | 3,042 | 18,524 | 10,402 | 55,024 | |||||||||||
Other services | 5,552 | 4,261 | 15,919 | 10,297 | |||||||||||
Total net revenue | $ | 241,096 | $ | 223,287 | $ | 699,033 | $ | 631,406 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
United States | $ | 237,597 | $ | 219,642 | $ | 689,096 | $ | 620,925 | |||||||
All other countries | 3,499 | 3,645 | 9,937 | 10,481 | |||||||||||
Total net revenue | $ | 241,096 | $ | 223,287 | $ | 699,033 | $ | 631,406 |
September 30, 2018 | December 31, 2017 | ||||||
United States | $ | 108,900 | $ | 100,990 | |||
All other countries | 1,999 | 2,661 | |||||
Total long-lived assets | $ | 110,899 | $ | 103,651 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Restructuring and integration | $ | — | $ | 35 | $ | — | $ | 286 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Driving Monetization. With our local sales force now fully transitioned to selling advertising plans without fixed durations (referred to as "non-term contracts"), we are shifting our focus to making our sales process more efficient, improving customer retention and diversifying our go-to-market strategy. For example, in the three months ended September 30, 2018, we began making improvements to our sales lead generation system and customer success efforts to better align them with selling and supporting non-term contracts. We are also continuing to explore ways to drive sales traffic through our high-margin self-serve and third-party reseller channels and to grow our high-value national and multi-location channels. |
• | Strengthening Our Competitive Position in the Restaurant Category. Our restaurants category receives the most traffic and reviews of any category on our platform, allowing us to attract and retain a large consumer audience with relatively low acquisition costs and supporting our subscription and transaction revenue streams. In the three months ended September 30, 2018, food orders placed through our platform grew more than 30% compared to the three months ended September 30, 2017 as Grubhub expanded its restaurant network to more restaurants on our platform across the United States. In addition, growth in diners seated through our Yelp Reservations and Yelp Nowait products accelerated to 133% in the three months ended September 30, 2018 compared to the same period in 2017. |
• | Generating Strong Usage and Engagement. We are focused on creating a compelling user experience to attract more new users and drive engagement on Yelp. In the three months ended September 30, 2018, we expanded the valuable information that we provide to consumers through the launch of our Open to All program, which allows businesses to indicate on their business listings pages whether they are safe and welcoming to everyone, regardless of race, ethnicity, national origin, sex, sexual orientation, gender identity and expression, religion or disability. We also continued our consumer protection efforts by making health scores available for restaurants in new geographic areas; we plan to incorporate health scores for additional areas in the coming months to cover markets across 42 states and three-quarters of the U.S. population. |
• | Building Out Our Home & Local Services Offering. In the three months ended September 30, 2018, advertising revenue and ad clicks from our home & local services category — already our largest revenue category — continued to grow faster than from any other category compared to the three months ended September 30, 2017. In addition to continuing to refine our Request-A-Quote feature in the third quarter, we began offering a Yelp Verified badge as a paid upgrade for certain licensed advertisers, primarily in our home & local services category. The badge indicates that we have verified the business's trade license and confirmed it was in good standing as of a certain date, allowing businesses to distinguish themselves as licensed and helping consumers make safe and confident decisions when selecting businesses for their projects. |
As of September 30, | |||
2018 | 2017 | ||
Reviews | 170,865 | 142,036 |
Three Months Ended September 30, | |||
2018 | 2017 | ||
Desktop Unique Visitors | 68,807 | 83,592 | |
Mobile Website Unique Visitors | 74,789 | 73,508 | |
App Unique Devices | 34,025 | 30,162 |
As of September 30, | |||
2018 | 2017 | ||
Claimed Local Business Locations | 4,790 | 3,963 |
Three Months Ended September 30, | |||
2018 | 2017 | ||
Paying Advertising Accounts | 194 | 155 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Amount | % of revenue | Amount | % of revenue | Amount | % of revenue | Amount | % of revenue | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||
Net revenue by product: | |||||||||||||||||||||||||||
Advertising | $ | 232,502 | 96 | % | $ | 200,502 | 90 | % | $ | 672,712 | 96 | % | $ | 566,085 | 90 | % | |||||||||||
Transactions | 3,042 | 2 | 18,524 | 8 | 10,402 | 2 | 55,024 | 9 | |||||||||||||||||||
Other services | 5,552 | 2 | 4,261 | 2 | 15,919 | 2 | 10,297 | 1 | |||||||||||||||||||
Total net revenue | $ | 241,096 | 100 | % | $ | 223,287 | 100 | % | $ | 699,033 | 100 | % | $ | 631,406 | 100 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 14,177 | 6 | % | 19,312 | 9 | % | 43,618 | 6 | % | 54,282 | 9 | % | |||||||||||||||
Sales and marketing | 121,759 | 51 | 112,958 | 51 | 362,054 | 52 | 326,409 | 52 | |||||||||||||||||||
Product development | 53,764 | 22 | 45,834 | 21 | 158,046 | 23 | 127,793 | 20 | |||||||||||||||||||
General and administrative | 30,302 | 13 | 27,601 | 12 | 90,892 | 13 | 81,808 | 13 | |||||||||||||||||||
Depreciation and amortization | 10,713 | 4 | 10,656 | 4 | 31,250 | 4 | 31,470 | 5 | |||||||||||||||||||
Restructuring and integration | — | — | 35 | — | — | — | 286 | — | |||||||||||||||||||
Total costs and expenses | 230,715 | 96 | 216,396 | 97 | 685,860 | 98 | 622,048 | 99 | |||||||||||||||||||
Income from operations | 10,381 | 4 | 6,891 | 3 | 13,173 | 2 | 9,358 | 1 | |||||||||||||||||||
Other income, net | 3,921 | 2 | 1,371 | 1 | 9,950 | 1 | 2,933 | 1 | |||||||||||||||||||
Income before income taxes | 14,302 | 6 | 8,262 | 4 | 23,123 | 3 | 12,291 | 2 | |||||||||||||||||||
Provision for income taxes | 684 | — | (232 | ) | — | 281 | — | (417 | ) | — | |||||||||||||||||
Net income attributable to common stockholders | $ | 14,986 | 6 | % | $ | 8,030 | 4 | % | $ | 23,404 | 3 | % | $ | 11,874 | 2 | % |
• | decreases of $2.5 million and $5.9 million, respectively, in merchant fees related to credit card transactions as a result of declines in transactions revenue following the sale of Eat24, partially offset by increases in merchant fees related to credit card transactions as a result of increases in advertising revenue; |
• | decreases of $2.0 million and $4.7 million, respectively, in confirmation services and third-party food delivery costs primarily due to the decline in food ordering fulfillment costs following the sale of Eat24, partially offset by an increase in confirmation services costs associated with Yelp WiFi Marketing; and |
• | decreases of $1.3 million and $3.0 million, respectively, in set up and creative design costs, consisting primarily of video production costs, as a result of our transition to selling non-term advertising contracts, which currently do not provide businesses with the option to add videos to their accounts. |
• | increases of $9.0 million and $33.4 million, respectively, in additional employee costs resulting from increases in headcount, including increases in stock-based compensation expense of $0.6 million and $2.1 million, respectively, as we expanded our sales organization; |
• | increases of $1.5 million and $7.7 million, respectively, in facilities and other overhead allocations as we leased additional office space and incurred additional overhead costs for our expanding headcount; and |
• | increases of $1.7 million and $5.3 million, respectively, in our commission expenses (including amortized commission expense) as a result of increases in advertising revenue driven by increased sales team headcount. |
• | $7.2 million and $26.7 million, respectively, in additional salaries and benefits associated with an increase in headcount, including increases in stock-based compensation expense (net of capitalized stock-based compensation expense) of $2.6 million and $7.4 million, respectively; and |
• | increases in facilities and other overhead allocations of $0.6 million and $3.2 million, respectively, as we leased additional office space and incurred additional overhead costs for our expanding headcount. |
• | increases in bad debt expense of $1.2 million and $4.0 million, respectively, due to continued growth in advertising revenue and the shift in our advertiser base toward newer advertisers, who are typically associated with higher bad debt expense; and |
• | $0.9 million and $3.7 million, respectively, in additional employee costs associated with an increase in headcount, which include increases in stock-based compensation expense of $0.5 million and $0.8 million, respectively. |
Nine Months Ended September 30, | |||
2018 | 2017 | ||
Condensed Consolidated Statements of Cash Flows Data: | |||
Cash provided by operating activities | $116,115 | $127,961 | |
Cash used in investing activities | (145,861) | (59,160) | |
Cash (used in) provided by financing activities | (91,239) | 21,813 |
• | an increase in accounts receivable of $25.0 million due to an increase in billings for advertising plans, particularly for customers paying in-arrears, as well as the timing of payments from these customers; |
• | an increase in prepaid expenses and other assets of $2.1 million, primarily driven by increases in the purchase of prepaid software licenses and tax-related receivables, partially offset by a decrease in non-trade receivables; and |
• | a decrease in accounts payable, accrued expenses and other liabilities of $13.6 million, primarily driven by a decrease in accrued income taxes as a result of income tax payments made in the nine months ended September 30, 2018 on taxable income from 2017, which was primarily as a result of the gain on disposal of Eat24. This decrease was partially offset by higher accrued compensation costs as a result of increased headcount. |
• | an increase in accounts receivable of $19.8 million due to an increase in billings for advertising plans, particularly for customers paying in-arrears, as well as the timing of payments from these customers; and |
• | an increase in accounts payable, accrued expenses and other liabilities of $15.6 million, primarily driven by an increase in the restaurant merchant share payable, accrued compensation costs and higher operating expense accruals due to the timing of invoices and payments primarily to cost of revenue-, sales- and marketing-related vendors. |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and adjusted EBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; |
• | EBITDA and adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; |
• | adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; |
• | EBITDA and adjusted EBITDA do not reflect the impact of the recording or release of valuation allowances; |
• | adjusted EBITDA does not take into account any restructuring and integration costs; and |
• | other companies, including companies in our industry, may calculate EBITDA and adjusted EBITDA differently, which reduces their usefulness as comparative measures. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reconciliation of GAAP net income to EBITDA and adjusted EBITDA: | |||||||||||||||
GAAP net income | $ | 14,986 | $ | 8,030 | $ | 23,404 | $ | 11,874 | |||||||
(Benefit from) provision for income taxes | (684 | ) | 232 | (281 | ) | 417 | |||||||||
Other income, net | (3,921 | ) | (1,371 | ) | (9,950 | ) | (2,933 | ) | |||||||
Depreciation and amortization | 10,713 | 10,656 | 31,250 | 31,470 | |||||||||||
EBITDA | 21,094 | 17,547 | 44,423 | 40,828 | |||||||||||
Stock-based compensation | 29,194 | 25,309 | 85,732 | 75,007 | |||||||||||
Restructuring and integration costs | — | 35 | — | 286 | |||||||||||
Adjusted EBITDA | $ | 50,288 | $ | 42,891 | $ | 130,155 | $ | 116,121 |
Payments Due by Period | |||||||||||||||||||
Total | Less Than 1 Year | 1 – 3 Years | 3 – 5 Years | More Than 5 Years | |||||||||||||||
Operating lease obligations | $ | 335,232 | $ | 56,312 | $ | 113,828 | $ | 85,660 | $ | 79,432 | |||||||||
Purchase obligations | $ | 137,691 | $ | 36,601 | $ | 61,090 | $ | 40,000 | $ | — |
• | Reliance on Internet Search Engines. As discussed in greater detail below, we rely on Internet search engines to drive traffic to our platform. However, the display, including rankings, of unpaid search results can be affected by a number of factors, many of which are not in our direct control, and may change frequently. Although Internet search engine results have allowed us to attract a large audience with low organic traffic acquisition costs to date, if they fail to drive sufficient traffic to our platform in the future, we may need to increase our marketing spend to acquire additional traffic. We cannot assure you that the value we ultimately derive from any such additional traffic would exceed the cost of acquisition, and any increase in marketing expense may harm our operating results as a result. |
• | Quality of Our Content. Our ability to attract consumer traffic depends on the quantity and quality of the content contributed by our users. Our ability to provide consumers with valuable content may be harmed: |
◦ | if our users do not contribute content that is helpful or reliable; |
◦ | if our users remove content they previously submitted; and |
◦ | as a result of user concerns that they may be harassed or sued by the businesses they review, instances of which have occurred in the past and may occur again in the future. |
• | Increasing Competition. The market for information regarding local businesses is intensely competitive and rapidly changing. If the popularity, usefulness, ease of use, performance and reliability of our products and services do not compare favorably to those of our competitors, traffic may decline. |
• | Our Recommendation Software. If our automated software does not recommend helpful content or recommends unhelpful content, consumers may reduce or stop their use of our platform. While we have designed our technology to avoid recommending content that we believe to be unreliable or otherwise unhelpful, we cannot guarantee that our efforts will be successful. For example, if robots, shills or other spam accounts are able to contribute a significant amount of recommended content, or consumers perceive a significant amount of our recommended content to be from such accounts, our traffic and revenue could be negatively affected. Although we do not believe content from these sources has had a material impact to date, if our automated software recommends a substantial amount of such content in the future, our ability to provide high quality content would be harmed and the consumer trust essential to our success could be undermined. |
• | Content Scraping. From time to time, other companies copy information from our platform without our permission, through website scraping, robots or other means, and publish or aggregate it with other information for their own benefit. This may make them more competitive and may decrease the likelihood that consumers will visit our platform to find the local businesses and information they seek. This may also result in increases to our reported traffic metrics that do not represent increases in consumer usage of our platform. For example, we have discovered in the past, and expect to discover in the future, that portions of our desktop traffic have been attributable to robots, which do not represent valid consumer traffic. Though we strive to detect and prevent this third-party conduct, we may not be able to detect it in a timely manner and, even if we could, may not be able to prevent it. In some cases, particularly in the case of third parties operating outside of the United States, our available remedies may be inadequate to protect us against such conduct. |
• | Macroeconomic Conditions. Consumer purchases of discretionary items generally decline during recessions and other periods in which disposable income is adversely affected. As a result, adverse economic conditions may impact consumer spending, particularly with respect to local businesses, which in turn could adversely impact the number of consumers visiting our platform. |
• | Review Concentration. Our restaurant and shopping categories together accounted for approximately 36% of the businesses that had received reviews and approximately 60% of the reviews available on our platform as of September 30, 2018. Although these categories generate a substantial portion of our traffic, if the high concentration of reviews generates a perception that our platform is primarily limited to these categories, our traffic may not increase to the extent otherwise possible. |
• | Internet Access. The adoption of any laws or regulations that adversely affect the growth, popularity or use of the Internet, including the repeal of Internet neutrality regulations in the United States, could decrease the demand for our services. Similarly, any actions by companies that provide Internet access that degrade, disrupt or increase the cost of user access to our platform could undermine our operations and result in the loss of traffic. |
• | High Penetration Rates. We have already entered most major geographic markets within the United States and Canada, and we do not expect to pursue expansion in other international markets in the foreseeable future. Further expansion in smaller markets may not yield similar results or sustain our growth. |
• | users engage with other products, services or activities as an alternative to our platform; |
• | there is a decrease in the perceived quality of the content contributed by our users; |
• | we fail to introduce new and improved products or features, or we introduce new products or features that do not effectively address consumer needs or otherwise alienate consumers; |
• | technical or other problems negatively impact the availability and reliability of our platform or otherwise affect the user experience; |
• | users have difficulty installing, updating or otherwise accessing our platform as a result of actions by us or third parties that we rely on to distribute our products; |
• | users believe that their experience is diminished as a result of the decisions we make with respect to the frequency, relevance and prominence of the advertising we display; and |
• | we do not maintain our brand image or our reputation is damaged. |
• | Acceptance of Online Advertising. We believe that the continued growth and acceptance of our online advertising products will depend on the perceived effectiveness and acceptance of online advertising models generally, which is outside of our control. Many advertisers still have limited experience with online advertising and, as a result, may continue to devote significant portions of their advertising budgets to traditional, offline advertising media, such as newspapers or print yellow pages directories. |
• | Competitiveness of Our Products. We must deliver ads in an effective manner at prices that compare favorably to those of our competitors. The widespread adoption of any technologies that make it more difficult for us to deliver ads, such as ad-blocking programs, could decrease our value proposition to businesses and reduce demand for our products. We may also be unable to attract new advertisers if our products are not compelling or we fail to innovate and introduce enhanced products meeting advertiser expectations. For example, in their current form, our ad products may be most attractive to businesses with higher than average ratings and numbers of reviews. As a result, businesses with lower ratings and fewer reviews may not purchase our ad products, or may abandon them if they do not believe our ad products are effective. |
• | Availability and Accuracy of Analytics. We must convince existing and prospective advertisers alike that our advertising products offer them a material benefit and can generate a competitive return relative to other alternatives. To do so, we must provide accurate analytics and measurement solutions that demonstrate the effectiveness and value of our advertising products compared to those of our competitors. |
• | Traffic Quality. The success of our advertising program depends on delivering positive results to our advertising customers. Low-quality or invalid traffic, such as robots, spiders and the mechanical automation of clicking, may be detrimental to our relationships with advertisers and could adversely affect our advertising pricing and revenue. For example, we discovered in the past, and expect to discover in the future, that portions of our desktop traffic have been attributable to robots. While we do not believe such traffic has impacted our ad delivery, any delays in detecting and removing such invalid traffic may harm our reputation among advertisers. Similarly, if we fail to detect and prevent click fraud or other invalid clicks on ads, the affected advertisers may experience or perceive a reduced return on their investments, which could lead to dissatisfaction with our products, refusals to pay, refund demands or withdrawal of future business. |
• | Perception of Our Platform. Our ability to compete effectively for advertiser budgets depends on our reputation and perceptions regarding our platform. For example, because we make the consumer experience our highest priority, unless we believe that a review violates our terms of service, we will allow the review to remain on our platform even if the business disputes its accuracy. Certain advertisers may therefore perceive our policies as an impediment to their success, which may harm our ability to attract and retain advertisers. The ratings and reviews that businesses receive from our users may also affect their advertising decisions. Favorable ratings and reviews, on the one hand, could be perceived as obviating the need to advertise. Unfavorable ratings and reviews, on the other, could discourage businesses from advertising to an audience that they perceive as hostile or cause them to form a negative opinion of our products and user base. |
• | Ability to Contact Prospective Customers. We generate the vast majority of our revenue through direct engagement between our sales force and business owners or other key decision makers over the phone. If our sales force encounters difficulty in reaching potential customers' key decision makers, our revenue and business will be harmed. Our sales force's ability to engage with such decision makers may be affected by a range of factors, not all of which are within our control. For example, if such decision makers, their telecommunications carriers or their mobile operating systems increase their use of call blocking technologies, or decision makers seek to avoid autodialer or telemarketing calls ("robocalls") by answering their phones less frequently, calls from our sales force may be negatively impacted. This risk may increase at times when the volume of robocalls tends to increase, such as during elections. |
• | Macroeconomic Conditions. Adverse macroeconomic conditions can have a negative impact on the demand for advertising, particularly with respect to online advertising products. We rely heavily on small and medium-sized businesses, which often have limited advertising budgets and may view online advertising as lower priority than offline advertising. Such businesses have also historically experienced high failure rates and may be disproportionately affected by economic downturns. As a result, we must continually add new advertisers to replace advertisers who do not renew their advertising due to factors outside of our control, such as declining advertising budgets, closures and bankruptcies. |
• | integrating review platforms or features into products they control, such as search engines, web browsers or mobile device operating systems; |
• | making acquisitions; |
• | changing their unpaid search result rankings to promote their own products; |
• | refusing to enter into or renew licenses on which we depend; |
• | limiting or denying our access to advertising measurement or delivery systems; |
• | limiting our ability to target or measure the effectiveness of ads; or |
• | making access to our platform more difficult. |
• | integrating operations, strategies, services, sites and technologies of an acquired company; |
• | managing the post-transaction business effectively; |
• | retaining and assimilating the employees of an acquired company; |
• | retaining our remaining employees following the disposition of a business; |
• | retaining existing customers and strategic partners, and minimizing disruption to existing relationships, as a result of any integration of new personnel or departure of existing personnel; |
• | difficulties in the assimilation of corporate cultures; |
• | implementing and retaining uniform standards, controls, procedures, policies and information systems; and |
• | addressing risks related to the business of an acquired company that may continue to impact the business following the acquisition. |
• | Infrastructure Changes and Capacity Constraints. We may experience capacity constraints due to an overwhelming number of users accessing our platform simultaneously. It may become increasingly difficult to maintain and improve the availability of our platform, especially during peak usage times, as our products become more complex and our traffic increases. |
• | Human or Software Errors. Our products and services are highly technical and complex, and may contain errors or vulnerabilities that could result in unanticipated downtime for our platform. Users may also use our products in unanticipated ways that may cause a disruption in service for other users attempting to access our platform. We may encounter such difficulties more frequently as we acquire companies and incorporate their technologies into our service. |
• | Catastrophic Occurrences. Our systems are vulnerable to damage or interruption from earthquakes, fires, floods, power losses, telecommunications failures, terrorist attacks and similar events. Our U.S. corporate offices and one of the facilities we lease to house our computer and telecommunications equipment are located in the San Francisco Bay Area, a region known for seismic activity. Acts of terrorism, which may be targeted at metropolitan areas that have higher population densities than rural areas, could cause disruptions in our or our advertisers’ businesses or the economy as a whole. |
• | sales and marketing; |
• | our technology infrastructure; |
• | product and feature development; |
• | market development efforts; |
• | strategic opportunities, including commercial relationships and acquisitions; |
• | our stock repurchase program; and |
• | general administration, including legal and accounting expenses related to being a public company. |
• | increase the number of users of our website and mobile app and the number of reviews and other content on our platform; |
• | attract and retain new advertising clients, many of which may have limited or no online advertising experience, which may become more difficult as an increasing portion of our advertisers have the ability to cancel their advertising plans at any time; |
• | forecast revenue and adjusted EBITDA accurately, which is made more difficult by the large percentage of our revenue derived from performance-based advertising and the increasing portion of our advertiser base with non-term contracts, as well as appropriately estimate and plan our expenses; |
• | continue to earn and preserve a reputation for providing meaningful and reliable reviews of local businesses; |
• | effectively adapt our products and services to mobile and other alternative devices as usage of such devices continues to increase; |
• | successfully compete with existing and future providers of other forms of offline and online advertising; |
• | successfully compete with other companies that are currently in, or may in the future enter, the business of providing information regarding local businesses; |
• | successfully manage our growth; |
• | successfully develop and deploy new features and products; |
• | manage and integrate successfully any acquisitions of businesses, solutions or technologies; |
• | avoid interruptions or disruptions in our service or slower than expected load times; |
• | develop a scalable, high-performance technology infrastructure that can efficiently and reliably handle increased usage, as well as the deployment of new features and products; |
• | hire, integrate and retain talented sales and other personnel; |
• | effectively manage rapid growth in our sales force, other personnel and operations; and |
• | effectively identify, engage and manage third-party partners and service providers. |
• | changes in the products we offer, such as our transition to selling our local advertising products pursuant to non-term contracts; |
• | changes in our pricing policies and terms of contracts, whether initiated by us or as a result of competition; |
• | changes in the markets in which we operate, such as the wind down of our international sales and marketing operations to focus on our core markets of the United States and Canada; |
• | cyclicality and seasonality, which may become more pronounced as our growth rate slows; |
• | the effects of changes in search engine placement and prominence; |
• | the adoption of any laws or regulations that adversely affect the growth, popularity or use of the Internet, such as the repeal of Internet neutrality regulations in the United States; |
• | the success of our sales and marketing efforts; |
• | costs associated with defending intellectual property infringement and other claims and related judgments or settlements; |
• | interruptions in service and any related impact on our reputation; |
• | changes in advertiser budgets or the market acceptance of online advertising solutions; |
• | changes in consumer behavior with respect to local businesses; |
• | changes in our tax rates or exposure to additional tax liabilities, including as a result of the U.S. Tax Cuts and Jobs Act; |
• | the impact of macroeconomic conditions, including the resulting effect on consumer spending at local businesses and the level of advertising spending by local businesses; |
• | new accounting pronouncements or changes in existing accounting standards and practices, such as our adoption on January 1, 2018 of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" (refer to Note 1 of our condensed consolidated financial statements for additional information on the new guidance and its impact on us); and |
• | the effects of natural or man-made catastrophic events. |
• | actual or anticipated fluctuations in our financial condition and operating results; |
• | changes in projected operating and financial results; |
• | actual or anticipated changes in our growth rate relative to our competitors; |
• | repurchases of our common stock pursuant to our stock repurchase program, which could also cause our stock price to be higher that it would be in the absence of such a program and could potentially reduce the market liquidity for our stock; |
• | announcements of changes in strategy, such as the announcement of our plan to wind down our international sales and marketing operations to focus on our core U.S. and Canadian markets; |
• | announcements of technological innovations or new offerings by us or our competitors; |
• | announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures or capital-raising activities or commitments; |
• | additions or departures of key personnel; |
• | actions of securities analysts who cover our company, such as publishing research or forecasts about our business (and our performance against such forecasts), changing the rating of our common stock or ceasing coverage of our company; |
• | investor sentiment with respect to our competitors, business partners and industry in general; |
• | any disruption to the proper operation of our network infrastructure or compromise of our security measures; |
• | reporting on our business by the financial media, including television, radio and press reports and blogs; |
• | fluctuations in the value of companies perceived by investors to be comparable to us; |
• | changes in the way we measure our key metrics; |
• | sales of our common stock; |
• | changes in laws or regulations applicable to our solutions; |
• | share price and volume fluctuations attributable to inconsistent trading volume levels of our shares; and |
• | general economic and market conditions such as recessions or interest rate changes. |
• | authorize our board of directors to issue, without further action by the stockholders, up to 10,000,000 shares of undesignated preferred stock; |
• | require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent; |
• | specify that special meetings of our stockholders can be called only by our board of directors, the Chair of our board of directors or our Chief Executive Officer; |
• | establish an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to our board of directors; |
• | establish that our board of directors is divided into three classes, with directors in each class serving three-year staggered terms; |
• | prohibit cumulative voting in the election of directors; |
• | provide that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum; and |
• | require the approval of our board of directors or the holders of a supermajority of our outstanding shares of capital stock to amend our bylaws and certain provisions of our amended and restated certificate of incorporation. |
• | any derivative action or proceeding brought on our behalf; |
• | any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of Yelp to us or our stockholders; |
• | any action asserting a claim against us arising pursuant to any provision of the General Corporation Law of the State of Delaware, our amended and restated certificate of incorporation or our amended and restated bylaws; and |
• | any action asserting a claim against us that is governed by the internal affairs doctrine. |
Period | Total Number of Shares Purchased(1) | Weighted-Average Price Paid per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program | ||||||||||
July 1 - July 31, 2018 | 160 | $ | 38.67 | 160 | $ | 115,389 | ||||||||
August 1 - August 31, 2018 | — | $ | — | — | $ | 115,389 | ||||||||
September 1 - September 30, 2018 | — | $ | — | — | $ | 115,389 |
(1) | On July 31, 2017, our board of directors authorized a stock repurchase program under which we may repurchase up to $200 million of our outstanding common stock, which we commenced in August 2017 and does not have an expiration date. The timing of and number of shares repurchased depend on a variety of factors, including liquidity, cash flow and market conditions. See "Liquidity and Capital Resources—Stock Repurchase Program" included under Part I, Item 2 in this Quarterly Report for further details. |
(2) | Average price paid per share includes costs associated with the repurchases. |
Incorporated by Reference | Filed Herewith | ||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | ||
8-K | 001-35444 | 2.1 | 3/6/2017 | ||||
8-K | 001-35444 | 2.1 | 4/7/2017 | ||||
10-Q | 001-35444 | 2.3 | 8/9/2017 | ||||
8-A/A | 001-35444 | 3.2 | 9/23/2016 | ||||
S-1/A | 333-178030 | 3.4 | 2/3/2012 | ||||
4.1 | Reference is made to Exhibits 3.1 and 3.2. | ||||||
8-A/A | 001-35444 | 4.1 | 9/23/2016 | ||||
X | |||||||
X | |||||||
X | |||||||
101.INS | XBRL Instance Document. | X | |||||
101.SCH | XBRL Taxonomy Extension Schema Document. | X | |||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | X | |||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | X | |||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. | X | |||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | X | |||||
† | The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q, are not deemed filed with the SEC and are not to be incorporated by reference into any filing of Yelp Inc. under the Securities Act or the Exchange Act, whether made before or after the date of this Quarterly Report, irrespective of any general incorporation language contained in such filing. |
YELP INC. | ||
Date: November 9, 2018 | /s/ Charles Baker | |
Charles Baker | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer and Duly Authorized Signatory) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Yelp Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 9, 2018 |
/s/ Jeremy Stoppelman |
Jeremy Stoppelman |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Yelp Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 9, 2018 |
/s/ Charles Baker |
Charles Baker |
Chief Financial Officer |
1. | The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and |
2. | The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Jeremy Stoppelman | /s/ Charles Baker | |
Jeremy Stoppelman | Charles Baker | |
Chief Executive Officer | Chief Financial Officer |
DOCUMENT AND ENTITY INFORMATION - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 31, 2018 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Entity Registrant Name | YELP INC | |
Entity Central Index Key | 0001345016 | |
Trading Symbol | YELP | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 83,083,501 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
[1] | ||
---|---|---|---|---|---|
Statement of Financial Position [Abstract] | |||||
Allowance for doubtful accounts | $ 8,885 | $ 8,602 | |||
Common stock, par value (in USD per share) | $ 0.000001 | $ 0.000001 | |||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |||
Common stock, shares issued (in shares) | 84,375,021 | 83,724,916 | |||
Common stock, shares outstanding (in shares) | 84,375,021 | 83,724,916 | |||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||||
Income Statement [Abstract] | ||||||||||
Net revenue | $ 241,096 | $ 223,287 | $ 699,033 | $ 631,406 | ||||||
Costs and expenses: | ||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 14,177 | 19,312 | 43,618 | 54,282 | ||||||
Sales and marketing | 121,759 | 112,958 | 362,054 | 326,409 | ||||||
Product development | 53,764 | 45,834 | 158,046 | 127,793 | ||||||
General and administrative | 30,302 | 27,601 | 90,892 | 81,808 | ||||||
Depreciation and amortization | 10,713 | 10,656 | 31,250 | 31,470 | [2] | |||||
Restructuring and integration | 0 | 35 | 0 | 286 | ||||||
Total costs and expenses | 230,715 | 216,396 | 685,860 | 622,048 | ||||||
Income from operations | 10,381 | 6,891 | 13,173 | 9,358 | ||||||
Other income, net | 3,921 | 1,371 | 9,950 | 2,933 | ||||||
Income before income taxes | 14,302 | 8,262 | 23,123 | 12,291 | ||||||
Benefit from (provision for) income taxes | 684 | (232) | 281 | (417) | ||||||
Net income attributable to common stockholders | $ 14,986 | $ 8,030 | $ 23,404 | $ 11,874 | [2] | |||||
Net income per share attributable to common stockholders | ||||||||||
Basic (in USD per share) | $ 0.18 | $ 0.10 | $ 0.28 | $ 0.15 | ||||||
Diluted (in USD per share) | $ 0.17 | $ 0.09 | $ 0.26 | $ 0.14 | ||||||
Weighted-average shares used to compute net income per share attributable to common stockholders | ||||||||||
Basic (in shares) | 84,008 | 82,259 | 83,865 | 81,041 | ||||||
Diluted (in shares) | 88,724 | 87,433 | 89,271 | 86,097 | ||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Net income attributable to common stockholders | $ 14,986 | $ 8,030 | $ 23,404 | $ 11,874 | [2] | |||||
Other comprehensive (loss) income: | ||||||||||
Foreign currency translation adjustments | (193) | 2,041 | (1,811) | 6,673 | ||||||
Foreign currency adjustments to net income upon liquidation of investment in foreign entities | 0 | (175) | 30 | (204) | ||||||
Other comprehensive (loss) income | (193) | 1,866 | (1,781) | 6,469 | ||||||
Comprehensive income | $ 14,793 | $ 9,896 | $ 21,623 | $ 18,343 | ||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||||
OPERATING ACTIVITIES: | |||||||
Net income attributable to common stockholders | $ 23,404 | $ 11,874 | [2] | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 31,250 | 31,470 | [2] | ||||
Bad debt expense | 19,285 | 15,239 | |||||
Stock-based compensation | 85,732 | 75,007 | |||||
Other adjustments | (2,793) | 280 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (24,956) | (19,810) | |||||
Prepaid expenses and other assets | (2,085) | (2,077) | |||||
Accounts payable, accrued expenses and other liabilities | (13,647) | 15,628 | |||||
Deferred revenue | (75) | 350 | |||||
Net cash provided by operating activities | 116,115 | 127,961 | |||||
INVESTING ACTIVITIES: | |||||||
Purchases of marketable securities | (572,788) | (179,557) | |||||
Maturities of marketable securities | 460,800 | 191,000 | |||||
Acquisition of a business, net of cash received | 0 | (50,544) | |||||
Purchases of property, equipment and software | (18,699) | (7,892) | |||||
Capitalized website and software development costs | (15,238) | (12,236) | |||||
Other investing activities | 64 | 69 | |||||
Net cash used in investing activities | (145,861) | (59,160) | |||||
FINANCING ACTIVITIES: | |||||||
Proceeds from issuance of common stock for employee stock-based plans | 21,835 | 29,556 | |||||
Repurchases of common stock | (71,993) | (7,743) | |||||
Taxes paid related to the net share settlement of equity awards | (41,081) | 0 | |||||
Net cash (used in) provided by financing activities | (91,239) | 21,813 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 197 | 864 | |||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (120,788) | 91,478 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 566,404 | 289,518 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 445,616 | 380,996 | |||||
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||||||
Cash paid for income taxes, net | 28,820 | 82 | |||||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Purchases of property, equipment and software recorded in accounts payable, accrued expenses and other liabilities | 2,393 | 3,555 | |||||
Tax liability related to net share settlement of equity awards included in accrued liabilities | $ 1,679 | $ 0 | |||||
|
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business and Basis for Presentation | DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION Yelp Inc. was incorporated in Delaware on September 3, 2004. Except where specifically noted or the context otherwise requires, the use of terms such as the "Company" and "Yelp" in these Notes to Condensed Consolidated Financial Statements refers to Yelp Inc. and its subsidiaries. Yelp connects people with great local businesses by bringing "word of mouth" online and providing a platform for businesses and consumers to engage and transact. Yelp’s platform is transforming the way people discover local businesses; every day, millions of consumers visit its website or use its mobile app to find great local businesses to meet their everyday needs. Businesses of all sizes use the Yelp platform to engage with consumers at the critical moment when they are deciding where to spend their money. Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018 (the "Annual Report"). The unaudited condensed consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by GAAP, including certain notes to the financial statements and certain balances that have been recast as a result of the adoption of new accounting pronouncements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, except as follows: Revenue from Contracts with Customers—In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASC 606"), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for such goods or services. ASC 606 also modified Subtopic Accounting Standards Codification 340-40, "Other Assets and Deferred Costs—Contracts with Customers," which required the Company to recognize a deferred cost asset for the incremental costs of obtaining a contract with a customer. The Company adopted ASC 606 effective January 1, 2018 using the full retrospective method and, accordingly, has recast each prior reporting period presented. The Company's adoption of ASC 606 resulted in the following adjustments to its previously reported results (in thousands):
Statement of Cash Flows—In November 2016, FASB issued Accounting Standards Update No. 2016-18, "Statement of Cash Flows (Subtopic 230): Restricted Cash" ("ASU 2016-18"), which requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The Company adopted the standard effective January 1, 2018 and recast the prior reported periods presented. The impact to the change in cash and cash equivalents balance previously reported on the consolidated statement of cash flows is presentation only; changes in restricted cash were previously included within investing activities and are now included in changes to the total cash balance within the condensed consolidated statements of cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normally recurring nature necessary for the fair presentation of the interim periods presented. Significant Accounting Policies Except as set forth below, there have been no material changes to the Company's significant accounting policies from those described in the Annual Report. Revenue Recognition—The Company generates revenue from the sale of of advertising products, transactions and other services, which correspond to the Company's major product lines. The Company recognizes revenue when all of the following criteria are met: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations. The Company applies the portfolio practical expedient to account for contracts with customers in each category of revenue. Revenue is recognized net of any taxes collected from customers, which are remitted to governmental authorities. The Company does not typically refund customers for services once it determines the performance obligations of the contract have been satisfied, but will assess any refund requests from customers and partners on a case by case basis. The Company records an allowance for potential future refunds, which is estimated based on historical trends and recorded as a reduction of net revenue. Advertising. The Company generates advertising revenue primarily through the display of advertising products on its website and mobile app. These arrangements are evidenced by either written or electronic acceptance of a contract that stipulates the types of advertising to be delivered, the timing and pricing. Performance-based advertising placements are priced on a cost-per-click basis, while impression-based advertising placements are priced on a cost per thousand impressions basis. The Company recognizes revenue from the delivery of performance-based ads and impression-based ads in the period of delivery, in each case net of customer discounts, assuming all other revenue recognition criteria are met. The Company also offers businesses premium features in connection with their business listing pages pursuant to fixed monthly fees, and recognizes revenue from such offerings over the service period, assuming all other revenue recognition criteria are met. The Company also generates advertising revenue through indirect sales of advertising products, such as through reseller contracts that allow partners to sell Yelp Branded Profiles to their clients and the monetization of remnant advertising inventory through third-party ad networks, and recognizes revenue in the period of delivery, assuming all other revenue recognition criteria are met. Transactions. The Company generates transactions revenue from revenue-sharing partner contracts, the sale of vouchers through the Company's "Yelp Deals" and "Yelp Gift Certificates" products, and, through October 10, 2017, Yelp Eat24 as a standalone product. The Company's transactions platform provides consumers with the ability to complete food delivery and other transactions through third parties directly on Yelp. The Company earns a per-transaction commission fee pursuant to partnership contracts for acting as an agent for these transactions, which it recognizes on a net basis and includes in revenue upon completion of a transaction, assuming all other revenue recognition criteria are met. Other Services. The Company generates other services revenue through subscription services contracts, such as sales of monthly subscriptions to its Yelp Reservations, Yelp Nowait and Yelp WiFi Marketing products, licensing contracts for access to Yelp data and other non-advertising, non-transaction partnerships. Subscription revenues are recognized ratably over the contract terms beginning on the commencement date of each contract, which is the date the service is made available to customers, assuming all other revenue recognition criteria are met. Contracts with Multiple Performance Obligations. Contracts with customers can include multiple performance obligations, where revenue is allocated to each performance obligation based on its relative standalone selling price ("SSP"). The Company determines SSP based on the prices of the promised goods or services charged when sold separately to customers, which are determined using contractually stated prices. The various products and services comprising contracts with multiple performance obligations are typically capable of being distinguished and accounted for as separate performance obligations. Estimates and assumptions include determining variable consideration, identifying the nature and timing of satisfaction of performance obligations, and calculating the SSP of performance obligations. The Company allocates revenue to each of the performance obligations included in a contract with multiple performance obligations at the inception of the contract. The Company applies the invoice practical expedient to depict the value transferred to the customer and measure of progress towards completion of its obligations. The Company considers the right to receive consideration from a customer to correspond directly with the value to the customer of its performance completed to date. Because the Company considers contracts month-to-month, variable consideration is resolved at the time of invoicing, which eliminates the use of estimates in determining the transaction price. The Company does not consider the effects of the time value of money as the majority of the Company’s contracts are invoiced on a monthly basis, one month in arrears. Accounts Receivable, Net, and Payment Terms—The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accounts receivable balance when revenue is recognized prior to or at the time of invoicing the customer. Payment terms and conditions vary by contract type and the service being provided. For advertising services, the Company typically invoices customers on a monthly basis, one month in arrears, and payment is collected either at the end of each billing period or up to 30 days after the end of the billing period. For transaction services, the Company's commission fee on each transaction is collected either at the time of the transaction, or up to 30 days after the end of the billing period. For subscription services, the Company typically invoices one month in advance, and payment is collected at the beginning of each billing period. Allowance for Doubtful Accounts—The Company maintains an allowance for doubtful accounts receivable. The allowance reflects the Company's best estimate of probable losses inherent in the accounts receivable balance. It is based upon historical experience and loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and known delinquent accounts. When new information becomes available that allows the Company to more accurately estimate the allowance, it makes an adjustment, which is considered a change in accounting estimate. The carrying value of accounts receivable approximates their fair value. Deferred Contract Costs—The Company classifies certain sales incentive compensation costs as incremental to obtaining the related contract. These costs are capitalized in the period in which they are incurred and amortized on a straight-line basis over the expected customer life of the associated contract. The Company uses a straight line basis as it expects the benefit of these costs to be realized uniformly over the amortization period. The amortization periods for contract costs, which extend up to 41 months, were determined based on both qualitative and quantitative factors, including product lifecycle attributes and customer retention historical data. For contract costs with amortization periods of less than 12 months, the Company applies a practical expedient to expense such costs as incurred. The Company assesses deferred contract costs for impairment on a quarterly basis. Amortized contract costs are recorded within sales and marketing expense on the consolidated statements of operations. Deferred contract costs are included within other non-current assets on the Company's consolidated balance sheets (see Note 8). Deferred Revenue—The Company records deferred revenue when it has received consideration, or has the right to receive consideration, in advance of the transfer of the performance obligations of the contract to the customer. Recent Accounting Pronouncements Not Yet Effective Lease Accounting In February 2016, FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASC 842"). ASC 842 supersedes the previous accounting guidance for leases included within Accounting Standards Codification 840, "Leases" ("ASC 840"). The new guidance generally requires an entity to recognize on its balance sheet operating and financing lease liabilities and corresponding right-of-use assets, as well as to recognize the associated lease expenses on its statements of operations in a manner similar to that required under current accounting rules. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The new standard initially required a modified retrospective transition for existing leases to each prior reporting period presented. However, in July 2018, FASB issued Accounting Standards Update No. 2018-11, "Targeted Improvements to ASC 842" ("ASU 2018-11"), which provides entities with the option to begin applying ASC 842 at the adoption date rather than at the beginning of the earliest period presented (the "Effective Date Method"). Entities using the Effective Date Method recognize a cumulative-effect adjustment to the opening balance of retained earnings (or accumulated deficit) in the period of adoption. The Company plans to adopt ASC 842 on January 1, 2019 using the Effective Date Method by recording a cumulative-effect adjustment to retained earnings (or accumulated deficit) as of January 1, 2019. As a result, the Company will continue to disclose comparative reporting periods under the previous accounting guidance, ASC 840. The Company continues to evaluate the impact of ASC 842 on its consolidated financial statements and accounting processes. Based on these ongoing evaluations, the Company currently expects the most significant changes will be related to the recognition of operating lease right-of-use assets and operating lease liabilities on its consolidated balance sheet in the amounts of approximately $240 million to $260 million and approximately $270 million to $290 million, respectively. The Company does not expect the impact on its consolidated statement of operations to be material. These estimates are based on the Company's office lease portfolio and, to a much lesser extent, its lease portfolio of computer equipment, each as of September 30, 2018. The ultimate impact of the Company's adoption of ASC 842 on its financial statements may change for reasons including, but not limited to:
Other Pronouncements In January 2017, FASB issued Accounting Standards Update No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). This new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new standard, entities will perform goodwill impairment tests by comparing fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In March 2017, FASB issued Accounting Standards Update No. 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"). This new guidance requires entities to amortize purchased callable debt securities held at a premium to the earliest call date. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company does not expect the adoption of ASU 2017-08 to have a material impact on its consolidated financial statements. In June 2018, FASB issued Accounting Standards Update No. 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). This new guidance changes the accounting for non-employee share-based payments to align with the accounting for employee stock compensation. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company does not expect the adoption of ASU 2018-07 to have a material impact on its consolidated financial statements. In August 2018, FASB issued Accounting Standards Update No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" (“ASU 2018-13”), which amends Accounting Standards Codification 820, "Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying and adding certain disclosures. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 on its consolidated financial statements. In August 2018, FASB issued Accounting Standards Update No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract" ("ASU 2018-15"). This new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. ASU 2018-15 generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 is effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently assessing the impact of ASU 2018-15 on its consolidated financial statements and related disclosures. Principles of Consolidation These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of the Company’s unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Cash, cash equivalents and restricted cash as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
As of September 30, 2018 and December 31, 2017, the Company had letters of credit collateralized fully by bank deposits which totaled $22.1 million and $18.6 million, respectively. These letters of credit primarily relate to lease agreements for certain of the Company’s offices, which are required to be maintained and issued to the landlords of each facility. Each letter of credit is subject to renewal annually until the applicable lease expires. As the bank deposits have restrictions on their use, they are classified as restricted cash on the Company's condensed consolidated balance sheets. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s investments in money market accounts are recorded as cash equivalents at fair value in the condensed consolidated balance sheets. All other financial instruments are classified as held-to-maturity investments and, accordingly, are recorded at amortized cost; however, the Company is required to determine the fair value of these investments on a recurring basis to identify any potential impairment. The accounting guidance for fair value measurements prioritizes the inputs used in measuring fair value in the following hierarchy: Level 1—Observable inputs, such as quoted prices in active markets, Level 2—Inputs other than quoted prices in active markets that are observable either directly or indirectly, or Level 3—Unobservable inputs in which there are little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, to minimize the use of unobservable inputs when determining fair value. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s commercial paper, corporate bonds, U.S. government bonds, agency bonds and agency discount notes are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are observable directly or indirectly. The following table represents the Company’s financial instruments measured at fair value as of September 30, 2018 and December 31, 2017 (in thousands):
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MARKETABLE SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | MARKETABLE SECURITIES The amortized cost, gross unrealized gains and losses, and fair value of securities held-to-maturity as of September 30, 2018 and December 31, 2017 were as follows (in thousands):
The following tables present gross unrealized losses and fair values for those securities that were in an unrealized loss position as of September 30, 2018 and December 31, 2017, aggregated by investment category and the length of time that the individual securities have been in a continuous loss position (in thousands):
The Company periodically reviews its investment portfolio for other-than-temporary impairment. The Company considers such factors as the duration, severity and reason for the decline in value, and the potential recovery period. The Company also considers whether it is more likely than not that it will be required to sell the securities before the recovery of their amortized cost basis, and whether the amortized cost basis cannot be recovered as a result of credit losses. During the three and nine months ended September 30, 2018 and 2017, the Company did not recognize any other-than-temporary impairment loss. |
PROPERTY, EQUIPMENT AND SOFTWARE, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Equipment and Software, Net | PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software, net as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
Depreciation expense was approximately $9.8 million and $9.2 million for the three months ended September 30, 2018 and 2017, respectively, and approximately $28.6 million and $25.8 million for the nine months ended September 30, 2018 and 2017, respectively. |
GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The Company’s goodwill is the result of its acquisitions of other businesses, and represents the excess of purchase consideration over the fair value of assets and liabilities acquired. The Company performed its annual goodwill impairment analysis during the three months ended September 30, 2018 and concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded its carrying value. The changes in carrying amount of goodwill during the nine months ended September 30, 2018 were as follows (in thousands):
Intangible assets at September 30, 2018 and December 31, 2017 consisted of the following (dollars in thousands):
Amortization expense was $0.9 million and $1.4 million for the three months ended September 30, 2018 and 2017, respectively, and $2.7 million and $5.7 million for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, the estimated future amortization of purchased intangible assets for (i) the remaining three months of 2018, (ii) each of the succeeding four years, and (iii) thereafter is as follows (in thousands):
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ACQUISITIONS AND DISPOSALS |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Disposals | ACQUISITIONS AND DISPOSALS Nowait, Inc. On February 28, 2017, the Company acquired Nowait, Inc. ("Nowait"). In connection with the acquisition, all outstanding capital stock and options and warrants to purchase capital stock of Nowait — including the 20% equity investment in Nowait the Company acquired in July 2016 — were converted into the right to receive an aggregate of $39.8 million in cash. Of the total amount of consideration paid in connection with the acquisition, $7.9 million is being held in escrow for a two-year period after the closing to secure the Company’s indemnification rights. The key purpose underlying the acquisition was to secure waitlist system and seating tool technology. The Company utilized an income approach to determine the valuation of the Company’s existing equity investment in Nowait as of the acquisition date. The carrying value of the Company’s investment approximated its fair value. The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification Topic 805, "Business Combinations" ("ASC 805"), with the results of Nowait’s operations included in the Company’s condensed consolidated financial statements from February 28, 2017. The final purchase price allocation is as follows (in thousands):
Estimated useful lives and the amount assigned to each class of intangible assets acquired are as follows (dollars in thousands):
The intangible assets are being amortized on a straight-line basis, which reflects the pattern in which the economic benefits of the intangible assets are being utilized. The goodwill results from the Company’s opportunity to drive daily engagement in its key restaurant vertical by allowing consumers to move more quickly from search and discovery to transacting at a local business. None of the goodwill is deductible for tax purposes. The Company recorded no acquisition-related transaction costs for the three months ended September 30, 2018 and 2017, and zero and $0.1 million for the nine months ended September 30, 2018 and 2017, respectively, which were included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The condensed consolidated statements of operations for the three and nine months ended September 30, 2018 include $1.3 million and $3.9 million of revenue attributable to the Nowait product, respectively. The Company completed its integration of Nowait's operations into those of the Company during the three months ended December 31, 2017 and, as such, determining Nowait's contribution to the net income of the Company for the three and nine months ended September 30, 2018 is impracticable. The condensed consolidated statements of operations for the three and nine months ended September 30, 2017 include $1.3 million and $2.6 million of revenue, respectively, and $1.9 million and $5.1 million of net loss, respectively, attributable to Nowait. Turnstyle Analytics Inc. On April 3, 2017, the Company acquired all of the equity interests in Turnstyle Analytics Inc. ("Turnstyle") for $20.6 million, approximately $1.0 million of which represents compensation cost due to a continuous service requirement, and the remainder of which represents purchase consideration. Of the total consideration paid in connection with the acquisition, $3.1 million was initially held in escrow for an 18-month period after the closing to secure the Company’s indemnification rights. The balance remaining in the escrow fund was $3.0 million as of September 30, 2018, and the remaining escrow funds were released in October 2018. The key factor underlying the acquisition was to obtain a customer retention and loyalty product in the form of a location-based marketing and analytics platform that provides Wi-Fi as a digital marketing tool to expand its product offerings for local businesses. The acquisition was accounted for as a business combination in accordance with ASC 805, with the results of Turnstyle’s operations included in the Company’s condensed consolidated financial statements from April 3, 2017. The final purchase price allocation is as follows (in thousands):
Estimated useful lives and the amount assigned to each class of intangible assets acquired are as follows (dollars in thousands):
The intangible assets are being amortized on a straight-line basis, which reflects the pattern in which the economic benefits of the intangible assets are being utilized. The goodwill results from the Company’s opportunity to expand its product offerings to local businesses through the Turnstyle marketing and analytics platform, which the Company renamed Yelp WiFi Marketing. None of the goodwill is deductible for tax purposes. The Company recorded no acquisition-related transaction costs for the three and nine months ended September 30, 2018, and zero and $0.3 million for the three and nine months ended September 30, 2017, respectively, which were included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The condensed consolidated statements of operations for the three and nine months ended September 30, 2018 include $0.9 million and $2.4 million of revenue attributable to Yelp WiFi Marketing, respectively. The Company completed its integration of Turnstyle's operations into those of the Company during the three months ended December 31, 2017 and, as such, determining Turnstyle's contribution to the net income of the Company for the three and nine months ended September 30, 2018 is impracticable. The condensed consolidated statements of operations for the three and nine months ended September 30, 2017 include $0.4 million and $0.8 million of revenue, respectively, and $4.0 million and $4.6 million of net loss, respectively, attributable to Turnstyle. Eat24, LLC On October 10, 2017, pursuant to the terms of a Unit Purchase Agreement, dated as of August 3, 2017 (the "Purchase Agreement"), by and among the Company, Eat24, LLC, a wholly-owned subsidiary of the Company ("Eat24"), Grubhub Inc. ("Grubhub") and Grubhub Holdings Inc. ("Purchaser"), a wholly-owned subsidiary of Grubhub, the Company completed the sale of all of the outstanding equity interests in Eat24 to the Purchaser (the "Disposal"). Immediately prior to the closing of the Disposal, the Company transferred certain assets to Eat24, which consisted of assets that were material to or necessary for the operation of the Eat24 business that were not then owned by Eat24. The Company entered into a Marketing Partnership Agreement ("Partnership Agreement") with the Purchaser concurrently with the Purchase Agreement. The purpose of the Disposal was to further capitalize on the Company's strong market position of connecting people with local businesses by selling Eat24 to the Purchaser, which has a strong presence in online and mobile food ordering, and entering into the Partnership Agreement, pursuant to which the Company earns a fee on all food orders placed through the Grubhub restaurant network, including Eat24 restaurants, that originate on the Company's Platform. The Company received $251.7 million in cash at closing; the Purchaser paid the remaining $28.8 million of the purchase price into an escrow account, which will be held for an 18-month period after closing to secure the Purchaser's rights of indemnification under the Purchase Agreement and is presented on the Company's consolidated balance sheets as an other non-current asset (see Note 8). The Company received $1.0 million in additional purchase consideration on December 14, 2017 as a net working capital adjustment. As a result of the sale, the Company recognized a pre-tax gain of $164.8 million during the three months ended December 31, 2017, which is included in gain on disposal of a business unit in the Company's consolidated statement of operations, and which is net of $0.3 million in Disposal-related costs. Prior to the Disposal, Eat24 was its own reporting unit and $110.8 million of goodwill associated with the Eat24 reporting unit was derecognized and included with the net assets disposed. The gain recognized on the sale of Eat24 decreased by $1.1 million to $163.7 million as a result of an increase in the net assets of Eat24 as of the closing date due to the Company's adoption of ASC 606 on January 1, 2018 (see Note 1), which related to the recognition of capitalized contract costs. The Disposal was accounted for as an asset group disposal in accordance with Accounting Standards Codification 360, "Property, Plant, and Equipment." The results of Eat24's operations are included in the Company's consolidated financial statements through October 10, 2017. The loss before provision for income taxes attributable to Eat24 for the three and nine months ended September 30, 2017 was $2.7 million and $11.0 million, respectively. The Company acquired Eat24 on February 9, 2015. The final disbursement from the escrow account created to secure indemnification obligations related to the Company's acquisition of Eat24 was completed in the three months ended March 31, 2018. |
OTHER NON-CURRENT ASSETS |
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Other Assets, Noncurrent Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Current Assets | OTHER NON-CURRENT ASSETS Other non-current assets as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
The escrow deposit consists of the funds held in escrow in connection with the Disposal of Eat24 (see Note 7), which are being held for an 18-month period after closing (provided, however, that any amounts subject to unresolved claims as of the end of the escrow period will remain in escrow until such claims are resolved) to secure the Purchaser's rights of indemnification under the Purchase Agreement. Deferred contract costs as of September 30, 2018 and December 31, 2017, and changes in deferred contract costs during the nine months ended September 30, 2018, were as follows (in thousands):
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CONTRACT BALANCES |
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Contract Balances | CONTRACT BALANCES The allowance for doubtful accounts as of September 30, 2018, and changes in the allowance for doubtful accounts during the nine months ended September 30, 2018, were as follows (in thousands):
Contract liabilities consist of deferred revenue, which is recorded on the consolidated balance sheets when the Company has received consideration, or has the right to receive consideration, in advance of the transfer of the performance obligations of the contract to the customer. As of September 30, 2018, deferred revenue was $3.4 million, the majority of which is expected to be recognized as revenue in the subsequent three-month period ending December 31, 2018. Changes in deferred revenue during the nine months ended September 30, 2018 were as follows (in thousands):
No other contract assets or liabilities are recorded on the Company's condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017. |
ACCRUED LIABILITIES |
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Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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Long-Term Liabilities | LONG-TERM LIABILITIES Long-term liabilities as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Office Facility Leases—The Company leases its office facilities under operating lease agreements that expire from 2018 to 2029. Certain lease agreements provide for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period. Rental expense was $13.7 million and $11.4 million for the three months ended September 30, 2018 and 2017, respectively, and $37.7 million and $31.0 million for the nine months ended September 30, 2018 and 2017, respectively. The Company has subleased certain office facilities under operating lease agreements that expire in 2021. The Company recognizes sublease rentals as a reduction in rental expense on a straight-line basis over the lease period. Sublease rental income was $0.5 million and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and $1.7 million and $1.5 million for the nine months ended September 30, 2018 and 2017, respectively. Legal Proceedings—In January 2018, a putative class action lawsuit alleging violations of the federal securities laws was filed in the U.S. District Court for the Northern District of California, naming as defendants the Company and certain of its officers. The complaint, which the plaintiff amended on June 25, 2018, alleges violations of the Exchange Act by the Company and its officers for allegedly making materially false and misleading statements regarding its business and operations on February 9, 2017. The plaintiff seeks unspecified monetary damages and other relief. On August 2, 2018, the Company and the other defendants filed a motion to dismiss the amended complaint. The court held a hearing on the motion on September 20, 2018 and has not yet issued a ruling. Due to the preliminary nature of this lawsuit, the Company is unable to reasonably estimate either the probability of incurring a loss or an estimated range of such loss, if any, from the lawsuit. The Company is subject to other legal proceedings arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently does not believe that the final outcome of any of these other matters will have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. Indemnification Agreements—In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. Under the Purchase Agreement (see Note 7), the Company agreed to indemnify the Purchaser and certain related parties against certain losses arising out of Purchaser's acquisition of Eat24, including, but not limited to, any breach or inaccuracy of any representation or warranty made by the Company or Eat24 in the Purchase Agreement. The Company's indemnification obligations are subject to the terms and conditions set forth in the Purchase Agreement, and are capped at the purchase price received by the Company in the Disposal. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company to, among other things, indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of claims cannot be predicted with certainty, the Company does not believe that the outcome of any claims under the indemnification arrangements will have a material effect on the Company’s financial position, results of operations or cash flows. |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY The following table presents the number of shares authorized and issued as of the dates indicated:
Stock Repurchase Program On July 31, 2017, the Company’s board of directors authorized a stock repurchase program under which the Company may repurchase up to $200.0 million of its outstanding common stock. The Company may purchase shares at management’s discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. The Company repurchased on the open market and retired 1,752,895 shares for an aggregate purchase price of $72.0 million during the nine months ended September 30, 2018. Equity Incentive Plans The Company has outstanding awards under three equity incentive plans: the Amended and Restated 2005 Equity Incentive Plan (the "2005 Plan"), the 2011 Equity Incentive Plan (the "2011 Plan") and the 2012 Equity Incentive Plan, as amended (the "2012 Plan"). In July 2011, the Company adopted the 2011 Plan, terminated the 2005 Plan and provided that no further stock awards were to be granted under the 2005 Plan. All outstanding stock awards under the 2005 Plan continue to be governed by their existing terms. Upon the effectiveness of the underwriting agreement in connection with the Company’s initial public offering ("IPO"), the Company terminated the 2011 Plan and all shares that were reserved under the 2011 Plan but not issued were assumed by the 2012 Plan. No further awards will be granted pursuant to the 2011 Plan. All outstanding stock awards under the 2011 Plan continue to be governed by their existing terms. Under the 2012 Plan, the Company has the ability to issue incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance units and performance shares. Additionally, the 2012 Plan provides for the grant of performance cash awards to employees, directors and consultants. Stock Options Stock options granted under the 2012 Plan are granted at a price per share not less than the fair value of a share of the Company’s common stock at date of grant. Options granted to date generally vest over a three- or four-year period, on one of four schedules: (a) 25% vesting at the end of one year and the remaining shares vesting monthly thereafter; (b) 10% vesting over the first year, 20% vesting over the second year, 30% vesting over the third year and 40% vesting over the fourth year; (c) ratably on a monthly basis; or (d) 35% vesting over the first year, 40% vesting over the second year and 25% vesting over the third year. Options granted are generally exercisable for up to 10 years. The Company issues new shares when stock options are exercised. A summary of stock option activity for the nine months ended September 30, 2018 is as follows:
Aggregate intrinsic value represents the difference between the closing price of the Company’s common stock as quoted on the New York Stock Exchange on a given date and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was approximately $5.3 million and $9.8 million for the three months ended September 30, 2018 and 2017, respectively, and $18.1 million and $20.2 million for the nine months ended September 30, 2018 and 2017, respectively. The weighted-average grant date fair value of options granted was $23.41 and $13.31 per share for the three months ended September 30, 2018 and 2017, respectively, and $18.89 and $15.35 per share for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, total unrecognized compensation costs related to unvested stock options was approximately $21.0 million, which is expected to be recognized over a weighted-average time period of 2.5 years. RSUs The cost of RSUs is determined using the fair value of the Company’s common stock on the date of grant. RSUs generally vest over a four-year period, on one of three schedules: (a) 25% vesting at the end of one year and the remaining vesting quarterly or annually thereafter; (b) 10% vesting over the first year, 20% vesting over the second year, 30% vesting over the third year and 40% vesting over the fourth year; or (c) ratably on a quarterly basis. A summary of RSU activity for the nine months ended September 30, 2018 is as follows:
As of September 30, 2018, the Company had approximately $242.0 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over the remaining weighted-average vesting period of approximately 2.6 years. Employee Stock Purchase Plan The 2012 Employee Stock Purchase Plan, as amended ("ESPP"), allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations, during designated offering periods. At the end of each offering period, employees are able to purchase shares at 85% of the fair market value of the Company’s common stock on the last day of the offering period, based on the closing sales price of the Company's common stock as quoted on the New York Stock Exchange on such date. There were no shares purchased by employees under the ESPP in the three months ended September 30, 2018 or 2017. Employees purchased 195,987 shares and 228,299 shares under the ESPP in the nine months ended September 30, 2018 and 2017, respectively, at weighted-average purchase prices of $36.42 per share and $23.73 per share, respectively. The Company recognized $0.7 million and $0.5 million of stock-based compensation expense related to the discounted share price provided to employees under the ESPP in the three months ended September 30, 2018 and 2017, respectively, and $2.0 million and $1.5 million in the nine months ended September 30, 2018 and 2017, respectively. Stock-Based Compensation The following table summarizes the effects of stock-based compensation expense related to stock-based awards in the condensed consolidated statements of operations during the periods presented (in thousands):
The Company capitalized $1.9 million and $1.5 million of stock-based compensation expense as website development costs in the three months ended September 30, 2018 and 2017, respectively, and $5.9 million and $4.6 million in the nine months ended September 30, 2018 and 2017, respectively. |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income, Net | OTHER INCOME, NET Other income, net for the three and nine months ended September 30, 2018 and 2017 consisted of the following (in thousands):
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES Benefit from (provision for) income taxes for the three and nine months ended September 30, 2018 and 2017 consisted of the following (in thousands):
The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The tax benefit for the nine months ended September 30, 2018 is $0.3 million, which is due to $1.2 million in U.S. federal, state and foreign income tax expense, offset by $1.5 million of net discrete tax benefit related to a change in the valuation allowance from return to provision true-ups and excess stock option benefits. The tax provision for the nine months ended September 30, 2017 is due to $0.4 million in U.S. state and foreign income tax expense. Accounting for income taxes for interim periods generally requires the provision for income taxes to be determined by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss before income taxes, excluding unusual or infrequently occurring discrete items ("Ordinary" income), for the reporting period. For the three and nine months ended September 30, 2018, a discrete effective tax rate method was used in jurisdictions where a small change in estimated Ordinary income has a significant impact on the annual effective tax rate. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on certain of the Company’s net operating losses, foreign tax rate differences and stock-based compensation expense. Jurisdictions where no benefit is recorded on forecasted losses were excluded from the consolidated effective tax rate. As of September 30, 2018, the total amount of gross unrecognized tax benefits was $24.4 million, $23.5 million of which is subject to a full valuation allowance and would not affect the Company’s effective tax rate if recognized. As of September 30, 2018, amounts related to the accrual of interest and penalties were immaterial. During the three months ended September 30, 2018, the Company’s gross unrecognized tax benefits increased by $2.0 million, an immaterial amount of which would affect the Company’s effective tax rate if recognized. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the "Tax Act") was signed into law. The Tax Act makes broad and complex changes to the U.S. tax code that impact the Company's provision for income taxes, including, but not limited to, reducing the U.S. federal corporate tax rate from 35.0% to 21.0% (the "Tax Rate Reduction"), and requiring a one-time Deemed Repatriation Tax (the "Transition Tax") on certain un-repatriated earnings of foreign subsidiaries. However, because the Company has a net cumulative deficit on the earnings and profits of its foreign subsidiaries, it is not subject to the Transition Tax. Prior to the effectiveness of the Tax Act, the Company did not recognize a deferred tax liability related to un-remitted foreign earnings because such earnings were expected to be reinvested indefinitely. Although the Company is not subject to the Transition Tax, an actual repatriation from its non-U.S. subsidiaries could still be subject to additional foreign withholding taxes and U.S. state taxes. However, it remains the Company’s intention to reinvest the earnings from its non-U.S. subsidiaries. As of September 30, 2018, the Company estimates that it had $3.3 million of cumulative earnings upon which U.S. income taxes had not been provided. Determination of the amount of unrecognized deferred tax liability with respect to un-remitted foreign earnings, if any, is not practicable. In March 2018, FASB issued Accounting Standards Update No. 2018-05, "Income Taxes Topic (740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118" ("ASU 2018-05") to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As of September 30, 2018, the Company's analysis for the Transition Tax was final; the Company considered its accounting for this area of the Tax Act to be complete as of such date and did not make any measurement-period adjustments related to it. However, the Company's accounting for other areas of the Tax Act was incomplete as of September 30, 2018. For the nine months ended September 30, 2018, the Company made measurement-period adjustments related to the re-measurement of deferred taxes and valuation allowance due to the Tax Rate Reduction previously estimated, but the adjustment had no material impact on the Company's income tax benefit. Since ongoing guidance and accounting interpretation for the Tax Act are expected over the next three months, the Company considers the accounting for areas of the Tax Act other than the Transition Tax to be incomplete as the Company continues to gather additional information and evaluate the provisions of the Tax Act and the application of ASU 2018-05. The Company expects to finalize the analysis and record any adjustments to provisional estimates no later than one year beyond the enactment date in accordance with ASU 2018-05. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. In addition, the Company is subject to the continuous examination of its income tax returns by the Internal Revenue Service and other tax authorities. The Company’s federal and state income tax returns for fiscal years subsequent to 2003 remain open to examination. In the Company’s most significant foreign jurisdictions — Canada, Ireland, the United Kingdom and Germany — the tax years subsequent to 2010 remain open to examination. The Company regularly assesses the likelihood of adverse outcomes resulting from examinations to determine the adequacy of its provision for income taxes, and monitors the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Although the timing of the resolution or closure of audits is not certain, the Company believes it is reasonably possible that its unrecognized tax benefits could be reduced by an immaterial amount over the 12 months following December 31, 2017. |
NET INCOME PER SHARE |
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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 outstanding shares of common stock during the period. Diluted net income per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential common shares consist of the incremental shares of common stock issuable upon the exercise of stock options, shares issuable upon the vesting of RSUs and, to a lesser extent, purchase rights related to the ESPP. The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
The following weighted-average stock-based instruments were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in thousands):
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INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Revenue and Geographic Areas | INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the chief executive officer. The chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by product line and geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single operating and reporting segment. When the Company communicates results externally, it disaggregates net revenue into major product lines and primary geographical markets (which is based on the billing address of the customer). The disaggregation of revenue by major product lines is based on the type of service provided and also aligns with the timing of revenue recognition. Net Revenue The following table presents the Company’s net revenue disaggregated by major product line for the periods presented (in thousands):
During the three and nine months ended September 30, 2018 and 2017, no individual customer accounted for 10% or more of consolidated net revenue. The following table presents the Company’s net revenue disaggregated by major geographic region for the periods indicated (in thousands):
Long-Lived Assets The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands):
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RESTRUCTURING AND INTEGRATION |
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Restructuring and Integration | RESTRUCTURING AND INTEGRATION The following table presents the Company’s restructuring and integration costs for the periods indicated (in thousands):
On November 2, 2016, the Company announced plans to significantly reduce sales and marketing activities in markets outside of the United States and Canada. The restructuring plan was completed by December 31, 2017. No additional expense related to this restructuring plan is expected. No goodwill, intangible assets or other long-lived assets were impaired as a result of the restructuring plan. There were no remaining unpaid amounts related to this plan as of December 31, 2017. |
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018 (the "Annual Report"). The unaudited condensed consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by GAAP, including certain notes to the financial statements and certain balances that have been recast as a result of the adoption of new accounting pronouncements. |
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Revenue Recognition | Revenue Recognition—The Company generates revenue from the sale of of advertising products, transactions and other services, which correspond to the Company's major product lines. The Company recognizes revenue when all of the following criteria are met: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations. The Company applies the portfolio practical expedient to account for contracts with customers in each category of revenue. Revenue is recognized net of any taxes collected from customers, which are remitted to governmental authorities. The Company does not typically refund customers for services once it determines the performance obligations of the contract have been satisfied, but will assess any refund requests from customers and partners on a case by case basis. The Company records an allowance for potential future refunds, which is estimated based on historical trends and recorded as a reduction of net revenue. Advertising. The Company generates advertising revenue primarily through the display of advertising products on its website and mobile app. These arrangements are evidenced by either written or electronic acceptance of a contract that stipulates the types of advertising to be delivered, the timing and pricing. Performance-based advertising placements are priced on a cost-per-click basis, while impression-based advertising placements are priced on a cost per thousand impressions basis. The Company recognizes revenue from the delivery of performance-based ads and impression-based ads in the period of delivery, in each case net of customer discounts, assuming all other revenue recognition criteria are met. The Company also offers businesses premium features in connection with their business listing pages pursuant to fixed monthly fees, and recognizes revenue from such offerings over the service period, assuming all other revenue recognition criteria are met. The Company also generates advertising revenue through indirect sales of advertising products, such as through reseller contracts that allow partners to sell Yelp Branded Profiles to their clients and the monetization of remnant advertising inventory through third-party ad networks, and recognizes revenue in the period of delivery, assuming all other revenue recognition criteria are met. Transactions. The Company generates transactions revenue from revenue-sharing partner contracts, the sale of vouchers through the Company's "Yelp Deals" and "Yelp Gift Certificates" products, and, through October 10, 2017, Yelp Eat24 as a standalone product. The Company's transactions platform provides consumers with the ability to complete food delivery and other transactions through third parties directly on Yelp. The Company earns a per-transaction commission fee pursuant to partnership contracts for acting as an agent for these transactions, which it recognizes on a net basis and includes in revenue upon completion of a transaction, assuming all other revenue recognition criteria are met. Other Services. The Company generates other services revenue through subscription services contracts, such as sales of monthly subscriptions to its Yelp Reservations, Yelp Nowait and Yelp WiFi Marketing products, licensing contracts for access to Yelp data and other non-advertising, non-transaction partnerships. Subscription revenues are recognized ratably over the contract terms beginning on the commencement date of each contract, which is the date the service is made available to customers, assuming all other revenue recognition criteria are met. Contracts with Multiple Performance Obligations. Contracts with customers can include multiple performance obligations, where revenue is allocated to each performance obligation based on its relative standalone selling price ("SSP"). The Company determines SSP based on the prices of the promised goods or services charged when sold separately to customers, which are determined using contractually stated prices. The various products and services comprising contracts with multiple performance obligations are typically capable of being distinguished and accounted for as separate performance obligations. Estimates and assumptions include determining variable consideration, identifying the nature and timing of satisfaction of performance obligations, and calculating the SSP of performance obligations. The Company allocates revenue to each of the performance obligations included in a contract with multiple performance obligations at the inception of the contract. The Company applies the invoice practical expedient to depict the value transferred to the customer and measure of progress towards completion of its obligations. The Company considers the right to receive consideration from a customer to correspond directly with the value to the customer of its performance completed to date. Because the Company considers contracts month-to-month, variable consideration is resolved at the time of invoicing, which eliminates the use of estimates in determining the transaction price. The Company does not consider the effects of the time value of money as the majority of the Company’s contracts are invoiced on a monthly basis, one month in arrears. Accounts Receivable, Net, and Payment Terms—The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accounts receivable balance when revenue is recognized prior to or at the time of invoicing the customer. Payment terms and conditions vary by contract type and the service being provided. For advertising services, the Company typically invoices customers on a monthly basis, one month in arrears, and payment is collected either at the end of each billing period or up to 30 days after the end of the billing period. For transaction services, the Company's commission fee on each transaction is collected either at the time of the transaction, or up to 30 days after the end of the billing period. For subscription services, the Company typically invoices one month in advance, and payment is collected at the beginning of each billing period. Allowance for Doubtful Accounts—The Company maintains an allowance for doubtful accounts receivable. The allowance reflects the Company's best estimate of probable losses inherent in the accounts receivable balance. It is based upon historical experience and loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and known delinquent accounts. When new information becomes available that allows the Company to more accurately estimate the allowance, it makes an adjustment, which is considered a change in accounting estimate. The carrying value of accounts receivable approximates their fair value. Deferred Contract Costs—The Company classifies certain sales incentive compensation costs as incremental to obtaining the related contract. These costs are capitalized in the period in which they are incurred and amortized on a straight-line basis over the expected customer life of the associated contract. The Company uses a straight line basis as it expects the benefit of these costs to be realized uniformly over the amortization period. The amortization periods for contract costs, which extend up to 41 months, were determined based on both qualitative and quantitative factors, including product lifecycle attributes and customer retention historical data. For contract costs with amortization periods of less than 12 months, the Company applies a practical expedient to expense such costs as incurred. The Company assesses deferred contract costs for impairment on a quarterly basis. Amortized contract costs are recorded within sales and marketing expense on the consolidated statements of operations. Deferred contract costs are included within other non-current assets on the Company's consolidated balance sheets (see Note 8). Deferred Revenue—The Company records deferred revenue when it has received consideration, or has the right to receive consideration, in advance of the transfer of the performance obligations of the contract to the customer. |
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Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective Lease Accounting In February 2016, FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASC 842"). ASC 842 supersedes the previous accounting guidance for leases included within Accounting Standards Codification 840, "Leases" ("ASC 840"). The new guidance generally requires an entity to recognize on its balance sheet operating and financing lease liabilities and corresponding right-of-use assets, as well as to recognize the associated lease expenses on its statements of operations in a manner similar to that required under current accounting rules. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The new standard initially required a modified retrospective transition for existing leases to each prior reporting period presented. However, in July 2018, FASB issued Accounting Standards Update No. 2018-11, "Targeted Improvements to ASC 842" ("ASU 2018-11"), which provides entities with the option to begin applying ASC 842 at the adoption date rather than at the beginning of the earliest period presented (the "Effective Date Method"). Entities using the Effective Date Method recognize a cumulative-effect adjustment to the opening balance of retained earnings (or accumulated deficit) in the period of adoption. The Company plans to adopt ASC 842 on January 1, 2019 using the Effective Date Method by recording a cumulative-effect adjustment to retained earnings (or accumulated deficit) as of January 1, 2019. As a result, the Company will continue to disclose comparative reporting periods under the previous accounting guidance, ASC 840. The Company continues to evaluate the impact of ASC 842 on its consolidated financial statements and accounting processes. Based on these ongoing evaluations, the Company currently expects the most significant changes will be related to the recognition of operating lease right-of-use assets and operating lease liabilities on its consolidated balance sheet in the amounts of approximately $240 million to $260 million and approximately $270 million to $290 million, respectively. The Company does not expect the impact on its consolidated statement of operations to be material. These estimates are based on the Company's office lease portfolio and, to a much lesser extent, its lease portfolio of computer equipment, each as of September 30, 2018. The ultimate impact of the Company's adoption of ASC 842 on its financial statements may change for reasons including, but not limited to:
Other Pronouncements In January 2017, FASB issued Accounting Standards Update No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). This new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new standard, entities will perform goodwill impairment tests by comparing fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In March 2017, FASB issued Accounting Standards Update No. 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"). This new guidance requires entities to amortize purchased callable debt securities held at a premium to the earliest call date. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company does not expect the adoption of ASU 2017-08 to have a material impact on its consolidated financial statements. In June 2018, FASB issued Accounting Standards Update No. 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). This new guidance changes the accounting for non-employee share-based payments to align with the accounting for employee stock compensation. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company does not expect the adoption of ASU 2018-07 to have a material impact on its consolidated financial statements. In August 2018, FASB issued Accounting Standards Update No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" (“ASU 2018-13”), which amends Accounting Standards Codification 820, "Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying and adding certain disclosures. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 on its consolidated financial statements. In August 2018, FASB issued Accounting Standards Update No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract" ("ASU 2018-15"). This new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. ASU 2018-15 generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 is effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently assessing the impact of ASU 2018-15 on its consolidated financial statements and related disclosures. |
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Principles of Consolidation | Principles of Consolidation These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. |
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Use of Estimates | Use of Estimates The preparation of the Company’s unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. |
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The Company's adoption of ASC 606 resulted in the following adjustments to its previously reported results (in thousands):
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | Cash, cash equivalents and restricted cash as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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Restrictions on Cash and Cash Equivalents | Cash, cash equivalents and restricted cash as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Measured at Fair Value | The following table represents the Company’s financial instruments measured at fair value as of September 30, 2018 and December 31, 2017 (in thousands):
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MARKETABLE SECURITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Fair Value to Amortized Cost Basis of Securities Held-to-Maturity | The amortized cost, gross unrealized gains and losses, and fair value of securities held-to-maturity as of September 30, 2018 and December 31, 2017 were as follows (in thousands):
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Schedule of Securities in an Unrealized Loss Position | The following tables present gross unrealized losses and fair values for those securities that were in an unrealized loss position as of September 30, 2018 and December 31, 2017, aggregated by investment category and the length of time that the individual securities have been in a continuous loss position (in thousands):
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PROPERTY, EQUIPMENT, AND SOFTWARE, NET (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in carrying amount of goodwill during the nine months ended September 30, 2018 were as follows (in thousands):
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Schedule of Intangible Assets | Intangible assets at September 30, 2018 and December 31, 2017 consisted of the following (dollars in thousands):
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Schedule of Future Amortization Expense | As of September 30, 2018, the estimated future amortization of purchased intangible assets for (i) the remaining three months of 2018, (ii) each of the succeeding four years, and (iii) thereafter is as follows (in thousands):
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ACQUISITIONS AND DISPOSALS (Tables) |
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price, Assets Acquired and Liabilities Assumed | The final purchase price allocation is as follows (in thousands):
Estimated useful lives and the amount assigned to each class of intangible assets acquired are as follows (dollars in thousands):
The final purchase price allocation is as follows (in thousands):
Estimated useful lives and the amount assigned to each class of intangible assets acquired are as follows (dollars in thousands):
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OTHER NON-CURRENT ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Non-Current Assets | Other non-current assets as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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Capitalized Contract Cost | Deferred contract costs as of September 30, 2018 and December 31, 2017, and changes in deferred contract costs during the nine months ended September 30, 2018, were as follows (in thousands):
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CONTRACT BALANCES (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Allowance for Doubtful Accounts Receivable | The allowance for doubtful accounts as of September 30, 2018, and changes in the allowance for doubtful accounts during the nine months ended September 30, 2018, were as follows (in thousands):
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Contract with Customer, Liability | Changes in deferred revenue during the nine months ended September 30, 2018 were as follows (in thousands):
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ACCRUED LIABILITIES (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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LONG-TERM LIABILITIES (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Liabilities | Long-term liabilities as of September 30, 2018 and December 31, 2017 consisted of the following (in thousands):
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STOCKHOLDERS' EQUITY (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The following table presents the number of shares authorized and issued as of the dates indicated:
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Schedule of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2018 is as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of RSU Activity | A summary of RSU activity for the nine months ended September 30, 2018 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | The following table summarizes the effects of stock-based compensation expense related to stock-based awards in the condensed consolidated statements of operations during the periods presented (in thousands):
|
OTHER INCOME, NET (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income, Net | Other income, net for the three and nine months ended September 30, 2018 and 2017 consisted of the following (in thousands):
|
INCOME TAXES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Provision for Income Taxes | Benefit from (provision for) income taxes for the three and nine months ended September 30, 2018 and 2017 consisted of the following (in thousands):
|
NET INCOME PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
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Schedule of Anti-dilutive Securities | The following weighted-average stock-based instruments were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in thousands):
|
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Product Line | The following table presents the Company’s net revenue disaggregated by major product line for the periods presented (in thousands):
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Schedule of Net Revenue by Geographic Region | The following table presents the Company’s net revenue disaggregated by major geographic region for the periods indicated (in thousands):
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Schedule of Long-Lived Assets by Geographic Location | The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands):
|
RESTRUCTURING AND INTEGRATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Integration Costs | The following table presents the Company’s restructuring and integration costs for the periods indicated (in thousands):
|
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION (Revenue Recognition) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||||
Net revenue | $ 241,096 | $ 223,287 | [1] | $ 699,033 | $ 631,406 | [1] | ||||||||
Costs and Expenses: | ||||||||||||||
Sales and marketing | 121,759 | 112,958 | [1] | 362,054 | 326,409 | [1] | ||||||||
General and administrative | 30,302 | 27,601 | [1] | 90,892 | 81,808 | [1] | ||||||||
Net income attributable to common stockholders | $ 14,986 | $ 8,030 | [1] | $ 23,404 | $ 11,874 | [1],[2] | ||||||||
Basic net income per share (in USD per share) | $ 0.18 | $ 0.10 | [1] | $ 0.28 | $ 0.15 | [1] | ||||||||
Diluted net income per share (in USD per share) | $ 0.17 | $ 0.09 | [1] | $ 0.26 | $ 0.14 | [1] | ||||||||
Condensed Consolidated Balance Sheet | ||||||||||||||
Allowance for doubtful accounts | $ 8,885 | $ 8,885 | $ 8,602 | [3] | ||||||||||
Other non-current assets | 42,773 | 42,773 | 40,428 | [3] | ||||||||||
Retained earnings | $ 30,520 | 30,520 | 79,170 | [3] | ||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||
Bad debt expense | 19,285 | $ 15,239 | [2] | |||||||||||
Change in accounts receivable | (24,956) | (19,810) | [2] | |||||||||||
Other adjustments to reconcile net income to net cash provided by operating activities | $ (2,085) | (2,077) | [2] | |||||||||||
As Previously Reported | ||||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||||
Net revenue | $ 222,380 | 628,567 | ||||||||||||
Costs and Expenses: | ||||||||||||||
Sales and marketing | 113,041 | 327,559 | ||||||||||||
General and administrative | 26,694 | 78,969 | ||||||||||||
Net income attributable to common stockholders | 7,947 | $ 10,724 | ||||||||||||
Basic net income per share (in USD per share) | $ 0.13 | |||||||||||||
Diluted net income per share (in USD per share) | $ 0.12 | |||||||||||||
Condensed Consolidated Balance Sheet | ||||||||||||||
Allowance for doubtful accounts | 7,352 | |||||||||||||
Other non-current assets | 31,339 | |||||||||||||
Retained earnings | 70,081 | |||||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||
Bad debt expense | $ 12,400 | |||||||||||||
Change in accounts receivable | (16,971) | |||||||||||||
Other adjustments to reconcile net income to net cash provided by operating activities | (927) | |||||||||||||
Accounting Standards Update 2014-09 | Impact of ASC 606 Adoption | ||||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||||
Net revenue | 907 | 2,839 | ||||||||||||
Costs and Expenses: | ||||||||||||||
Sales and marketing | (83) | (1,150) | ||||||||||||
General and administrative | 907 | 2,839 | ||||||||||||
Net income attributable to common stockholders | $ 83 | $ 1,150 | ||||||||||||
Basic net income per share (in USD per share) | $ 0.02 | |||||||||||||
Diluted net income per share (in USD per share) | $ 0.02 | |||||||||||||
Condensed Consolidated Balance Sheet | ||||||||||||||
Allowance for doubtful accounts | 1,250 | |||||||||||||
Other non-current assets | 9,089 | |||||||||||||
Retained earnings | $ 9,089 | |||||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||
Bad debt expense | $ 2,839 | |||||||||||||
Change in accounts receivable | (2,839) | |||||||||||||
Other adjustments to reconcile net income to net cash provided by operating activities | $ (1,150) | |||||||||||||
|
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION (Narrative) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Jan. 01, 2019 |
|
Capitalized Contract Cost [Line Items] | ||
Contracts invoiced in arrears, duration | 1 month | |
Capitalized contract cost, amortization period threshold for practical expedient | 12 months | |
Minimum | Scenario, Forecast | Accounting Standards Update 2018-11 | ||
Capitalized Contract Cost [Line Items] | ||
Operating lease right-of-use asset | $ 240 | |
Operating lease liability | 270 | |
Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, amortization period | 41 months | |
Maximum | Scenario, Forecast | Accounting Standards Update 2018-11 | ||
Capitalized Contract Cost [Line Items] | ||
Operating lease right-of-use asset | 260 | |
Operating lease liability | $ 290 | |
Advertising services | ||
Capitalized Contract Cost [Line Items] | ||
Contracts invoiced in arrears, duration | 1 month | |
Payment collection after billing period, duration | 30 days | |
Transaction services | ||
Capitalized Contract Cost [Line Items] | ||
Payment collection after billing period, duration | 30 days | |
Subscription services | ||
Capitalized Contract Cost [Line Items] | ||
Contracts invoiced in advance, duration | 1 month |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
[2] | Dec. 31, 2016 |
[2] | |||||
---|---|---|---|---|---|---|---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | |||||||||||
Cash | $ 166,336 | $ 283,085 | |||||||||
Cash equivalents | 257,159 | 264,765 | |||||||||
Total cash and cash equivalents | 423,495 | 547,850 | [1] | ||||||||
Restricted cash | 22,121 | 18,554 | [1] | ||||||||
Total cash, cash equivalents and restricted cash | $ 445,616 | $ 566,404 | $ 380,996 | $ 289,518 | |||||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 413,728 | $ 298,240 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 670,887 | 563,005 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 219,742 | 217,838 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 451,145 | 345,167 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 158,506 | 138,412 |
Recurring | Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 158,506 | 138,412 |
Recurring | Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 137,967 | 69,926 |
Recurring | Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 137,967 | 69,926 |
Recurring | Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 69,208 | 0 |
Recurring | U.S. government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | U.S. government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 69,208 | 0 |
Recurring | U.S. government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 48,047 | 78,913 |
Recurring | Agency bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Agency bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 48,047 | 78,913 |
Recurring | Agency bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Agency discount notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 10,989 |
Recurring | Agency discount notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Agency discount notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 10,989 |
Recurring | Agency discount notes | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 219,742 | 217,838 |
Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 219,742 | 217,838 |
Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 37,417 | 46,927 |
Recurring | Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Recurring | Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 37,417 | 46,927 |
Recurring | Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | $ 0 | $ 0 |
MARKETABLE SECURITIES (Schedule of the Fair Value to Amortized Cost Basis of Securities Held-to-Maturity) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Short-term marketable securities: | ||
Amortized Cost | $ 414,002 | $ 273,366 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (274) | (88) |
Fair Value | 413,728 | 273,279 |
Long-term marketable securities: | ||
Amortized Cost | 25,032 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (71) | |
Fair Value | 24,961 | |
Amortized Cost | 414,002 | 298,398 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (274) | (159) |
Fair Value | 413,728 | 298,240 |
Commercial paper | ||
Short-term marketable securities: | ||
Amortized Cost | 158,506 | 138,412 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 158,506 | 138,412 |
Corporate bonds | ||
Short-term marketable securities: | ||
Amortized Cost | 138,141 | 45,006 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (174) | (41) |
Fair Value | 137,967 | 44,965 |
Long-term marketable securities: | ||
Amortized Cost | 25,032 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (71) | |
Fair Value | 24,961 | |
U.S. government bonds | ||
Short-term marketable securities: | ||
Amortized Cost | 69,241 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (33) | |
Fair Value | 69,208 | |
Agency bonds | ||
Short-term marketable securities: | ||
Amortized Cost | 48,114 | 78,958 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (67) | (45) |
Fair Value | $ 48,047 | 78,913 |
Agency discount bonds | ||
Short-term marketable securities: | ||
Amortized Cost | 10,990 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 10,989 |
MARKETABLE SECURITIES (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value | ||
Less Than 12 Months | $ 250,247 | $ 156,804 |
12 Months or Greater | 0 | 0 |
Total | 250,247 | 156,804 |
Unrealized Loss | ||
Less Than 12 Months | (274) | (159) |
12 Months or Greater | 0 | 0 |
Total | (274) | (159) |
Corporate bonds | ||
Fair Value | ||
Less Than 12 Months | 132,992 | 62,927 |
12 Months or Greater | 0 | 0 |
Total | 132,992 | 62,927 |
Unrealized Loss | ||
Less Than 12 Months | (174) | (112) |
12 Months or Greater | 0 | 0 |
Total | (174) | (112) |
Agency bonds | ||
Fair Value | ||
Less Than 12 Months | 48,047 | 78,913 |
12 Months or Greater | 0 | 0 |
Total | 48,047 | 78,913 |
Unrealized Loss | ||
Less Than 12 Months | (67) | (45) |
12 Months or Greater | 0 | 0 |
Total | (67) | (45) |
U.S. government bonds | ||
Fair Value | ||
Less Than 12 Months | 69,208 | |
12 Months or Greater | 0 | |
Total | 69,208 | |
Unrealized Loss | ||
Less Than 12 Months | (33) | |
12 Months or Greater | 0 | |
Total | (33) | |
Agency discount notes | ||
Fair Value | ||
Less Than 12 Months | 10,989 | |
12 Months or Greater | 0 | |
Total | 10,989 | |
Unrealized Loss | ||
Less Than 12 Months | (1) | |
12 Months or Greater | 0 | |
Total | (1) | |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 0 | 3,975 |
12 Months or Greater | 0 | 0 |
Total | 0 | 3,975 |
Unrealized Loss | ||
Less Than 12 Months | 0 | (1) |
12 Months or Greater | 0 | 0 |
Total | $ 0 | $ (1) |
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Schedule of Property, Equipment and Software) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | $ 245,142 | $ 210,039 | |||
Less accumulated depreciation | (134,243) | (106,388) | |||
Property, equipment and software, net | 110,899 | 103,651 | [1] | ||
Capitalized website and internal-use software development costs | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | 102,004 | 81,710 | |||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | 79,589 | 74,236 | |||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | 40,129 | 32,450 | |||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | 17,351 | 16,435 | |||
Telecommunication | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | 4,554 | 3,996 | |||
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and software, gross | $ 1,515 | $ 1,212 | |||
|
PROPERTY, EQUIPMENT, AND SOFTWARE, NET (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 9.8 | $ 9.2 | $ 28.6 | $ 25.8 |
GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
| ||||
Goodwill [Roll Forward] | ||||
Balance as of December 31, 2017 | $ 107,954 | [1] | ||
Effect of foreign currency translation | (1,631) | |||
Balance as of September 30, 2018 | $ 106,323 | |||
|
GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 25,554 | $ 25,647 |
Accumulated Amortization | (11,312) | (8,754) |
Total amortization | 14,242 | 16,893 |
Business relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,918 | 9,918 |
Accumulated Amortization | (1,625) | (896) |
Total amortization | $ 8,293 | $ 9,022 |
Weighted Average Remaining Life (in years) | 9 years 8 months 12 days | 10 years 3 months 19 days |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,832 | $ 7,832 |
Accumulated Amortization | (3,189) | (2,071) |
Total amortization | $ 4,643 | $ 5,761 |
Weighted Average Remaining Life (in years) | 3 years 4 months 24 days | 4 years 1 month 6 days |
Content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,912 | $ 4,005 |
Accumulated Amortization | (3,681) | (3,610) |
Total amortization | $ 231 | $ 395 |
Weighted Average Remaining Life (in years) | 1 year | 1 year 9 months 18 days |
Domains and data licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,869 | $ 2,869 |
Accumulated Amortization | (2,231) | (1,847) |
Total amortization | $ 638 | $ 1,022 |
Weighted Average Remaining Life (in years) | 1 year 7 months 6 days | 2 years 2 months 12 days |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 877 | $ 877 |
Accumulated Amortization | (506) | (287) |
Total amortization | $ 371 | $ 590 |
Weighted Average Remaining Life (in years) | 1 year 4 months 24 days | 2 years 2 months 12 days |
User relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 146 | $ 146 |
Accumulated Amortization | (80) | (43) |
Total amortization | $ 66 | $ 103 |
Weighted Average Remaining Life (in years) | 1 year 6 months | 2 years 2 months 12 days |
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 0.9 | $ 1.4 | $ 2.7 | $ 5.7 |
GOODWILL AND INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Year Ending December 31, | ||
2018 (from October 1, 2018) | $ 882 | |
2019 | 3,277 | |
2020 | 2,402 | |
2021 | 2,262 | |
2022 | 1,045 | |
Thereafter | 4,374 | |
Total amortization | $ 14,242 | $ 16,893 |
ACQUISITIONS AND DISPOSALS (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Oct. 10, 2017 |
Apr. 03, 2017 |
Feb. 28, 2017 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 14, 2017 |
|
Business Acquisition [Line Items] | |||||||||
Held in escrow account | $ 28,750,000 | $ 28,750,000 | $ 28,750,000 | ||||||
Eat 24 Inc | |||||||||
Business Acquisition [Line Items] | |||||||||
Escrow deposit duration | 18 months | ||||||||
Eat 24 Inc | Disposed of by Sale | |||||||||
Business Acquisition [Line Items] | |||||||||
Held in escrow account | $ 28,800,000 | ||||||||
Escrow deposit duration | 18 months | ||||||||
Purchase price consideration for sale of subsidiary | $ 251,700,000 | ||||||||
Additional purchase consideration received | $ 1,000,000 | ||||||||
Gain on disposal of business unit | 163,700,000 | ||||||||
Disposal related costs | 300,000 | ||||||||
Goodwill related to disposed asset group | 110,800,000 | ||||||||
Loss before provision for income taxes | $ 2,700,000 | $ 11,000,000 | |||||||
Eat 24 Inc | Disposed of by Sale | Previously Reported | |||||||||
Business Acquisition [Line Items] | |||||||||
Gain on disposal of business unit | 164,800,000 | ||||||||
Eat 24 Inc | Disposed of by Sale | New Revenue Standard Adjustment | Accounting Standards Update 2014-09 | |||||||||
Business Acquisition [Line Items] | |||||||||
Gain on disposal of business unit | $ (1,100,000) | ||||||||
Nowait, Inc | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity interest in acquiree, percentage | 20.00% | ||||||||
Total purchase consideration | $ 39,837,000 | ||||||||
Held in escrow account | $ 7,945,000 | ||||||||
Escrow deposit duration | 2 years | ||||||||
Acquisition-related transaction costs | 0 | 0 | $ 0 | 100,000 | |||||
Revenue of acquiree since acquisition date | 1,300,000 | 1,300,000 | 3,900,000 | 2,600,000 | |||||
Net loss of acquiree since acquisition date | 1,900,000 | 5,100,000 | |||||||
Turnstyle Analytics Inc | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase consideration | $ 19,741,000 | ||||||||
Held in escrow account | $ 3,093,000 | 3,000,000 | 3,000,000 | ||||||
Escrow deposit duration | 18 months | ||||||||
Acquisition-related transaction costs | 0 | 0 | 0 | 300,000 | |||||
Revenue of acquiree since acquisition date | $ 900,000 | 400,000 | $ 2,400,000 | 800,000 | |||||
Net loss of acquiree since acquisition date | $ 4,000,000 | $ 4,600,000 | |||||||
Purchase consideration including acquisition compensation cost | $ 20,600,000 | ||||||||
Acquisition compensation cost | $ 1,000,000 |
ACQUISITIONS AND DISPOSALS (Summary of Purchase Price and Net Assets Acquired) (Details) - USD ($) $ in Thousands |
Apr. 03, 2017 |
Feb. 28, 2017 |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|---|---|
Cash: | |||||||
Held in escrow account | $ 28,750 | $ 28,750 | |||||
Fair value of net assets acquired: | |||||||
Goodwill | 106,323 | $ 107,954 | [1] | ||||
Nowait, Inc | |||||||
Cash: | |||||||
Distributed to stockholders | $ 31,892 | ||||||
Held in escrow account | 7,945 | ||||||
Total purchase consideration | 39,837 | ||||||
Fair value of net assets acquired: | |||||||
Cash and cash equivalents | 1,004 | ||||||
Intangible assets | 12,670 | ||||||
Goodwill | 25,959 | ||||||
Other assets | 1,065 | ||||||
Total assets acquired | 40,698 | ||||||
Liabilities assumed | (861) | ||||||
Total liabilities assumed | (861) | ||||||
Net assets acquired | $ 39,837 | ||||||
Turnstyle Analytics Inc | |||||||
Cash: | |||||||
Distributed to stockholders | $ 16,648 | ||||||
Held in escrow account | 3,093 | $ 3,000 | |||||
Total purchase consideration | 19,741 | ||||||
Fair value of net assets acquired: | |||||||
Cash and cash equivalents | 30 | ||||||
Intangible assets | 4,252 | ||||||
Goodwill | 16,048 | ||||||
Other assets | 250 | ||||||
Total assets acquired | 20,580 | ||||||
Deferred tax liability | (450) | ||||||
Liabilities assumed | (389) | ||||||
Total liabilities assumed | (839) | ||||||
Net assets acquired | $ 19,741 | ||||||
|
ACQUISITIONS AND DISPOSALS (Summary of Estimated Useful lives of Intangible Assets Acquired ) (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Apr. 03, 2017 |
Feb. 28, 2017 |
|
Nowait, Inc | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | $ 12,670 | ||
Useful Life | 9 years 7 months 6 days | ||
Nowait, Inc | Enterprise restaurant relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 8,500 | ||
Useful Life | 12 years | ||
Nowait, Inc | Acquired technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 2,900 | ||
Useful Life | 5 years | ||
Nowait, Inc | Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 610 | ||
Useful Life | 3 years | ||
Nowait, Inc | Local restaurant relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 600 | ||
Useful Life | 5 years | ||
Nowait, Inc | User relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | $ 60 | ||
Useful Life | 3 years | ||
Turnstyle Analytics Inc | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | $ 4,252 | ||
Useful Life | 4 years 10 months 24 days | ||
Turnstyle Analytics Inc | Acquired technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 3,250 | ||
Useful Life | 5 years | ||
Turnstyle Analytics Inc | Business relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 672 | ||
Useful Life | 5 years | ||
Turnstyle Analytics Inc | Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | 250 | ||
Useful Life | 3 years | ||
Turnstyle Analytics Inc | User relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount Assigned | $ 80 | ||
Useful Life | 3 years |
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Other Assets, Noncurrent Disclosure [Abstract] | |||||
Escrow deposit | $ 28,750 | $ 28,750 | |||
Deferred contract costs | 11,367 | 9,089 | |||
Other | 2,656 | 2,589 | |||
Total other non-current assets | $ 42,773 | $ 40,428 | [1] | ||
|
OTHER NON-CURRENT ASSETS (Narrative) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Eat 24 Inc | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Escrow deposit duration | 18 months |
OTHER NON-CURRENT ASSETS (Changes in Deferred Contract Costs) (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Changes In Capitalized Contract Costs [Roll Forward] | |
Balance, beginning of period | $ 9,089 |
Add: costs deferred on new contracts | 10,629 |
Less: amortization recorded in sales and marketing expenses | (8,351) |
Balance, end of period | $ 11,367 |
CONTRACT BALANCES (Schedule of Changes in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[2] | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||
Balance, beginning of period | [1] | $ 8,602 | |||||
Add: bad debt expense | 19,285 | $ 15,239 | |||||
Less: write-offs, net of recoveries | (19,002) | ||||||
Balance, end of period | $ 8,885 | ||||||
|
CONTRACT BALANCES (Narrative) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Revenue from Contract with Customer [Abstract] | |||||
Deferred revenue | $ 3,392 | $ 3,469 | [1] | ||
|
CONTRACT BALANCES (Changes in Deferred Revenue) (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
| ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Balance, beginning of period | $ 3,469 | [1] | ||
Less: Recognition of deferred revenue from beginning balance | (3,132) | |||
Add: Net increase in current period contract liabilities | 3,055 | |||
Balance, end of period | $ 3,392 | |||
|
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Payables and Accruals [Abstract] | |||||
Accrued compensation | $ 27,652 | $ 17,725 | |||
Accrued sales and marketing | 6,057 | 3,458 | |||
Accrued tax liabilities | 4,785 | 32,617 | |||
Accrued cost of revenue | 5,397 | 3,022 | |||
Other accrued expenses | 14,673 | 16,843 | |||
Total accrued liabilities | $ 58,564 | $ 73,665 | [1] | ||
|
LONG-TERM LIABILITIES (Schedule of Long-Term Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Payables and Accruals [Abstract] | |||||
Deferred rent | $ 30,446 | $ 26,904 | |||
Other long-term liabilities | 4,532 | 3,833 | |||
Total long-term liabilities | $ 34,978 | $ 30,737 | [1] | ||
|
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expense | $ 13.7 | $ 11.4 | $ 37.7 | $ 31.0 |
Sublease rentals | $ 0.5 | $ 0.5 | $ 1.7 | $ 1.5 |
STOCKHOLDERS' EQUITY (Schedule of Stock by Class) (Details) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Stockholders’ equity: | |||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | [1] | ||
Common stock, shares issued (in shares) | 84,375,021 | 83,724,916 | [1] | ||
Undesignated preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |||
Undesignated preferred stock, shares issued (in shares) | 0 | 0 | |||
Common stock, par value (in USD per share) | $ 0.000001 | $ 0.000001 | [1] | ||
|
STOCKHOLDERS' EQUITY (Award Compensation Narrative) (Details) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2018
USD ($)
schedule
plan
$ / shares
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Jul. 31, 2017
USD ($)
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||||||
Stock repurchased and retired during period (in shares) | shares | 1,752,895 | |||||||
Repurchase of common stock | $ 71,993,000 | $ 7,743,000 | [1] | |||||
Number of equity incentive plans | plan | 3 | |||||||
Stock-based compensation | $ 29,194,000 | $ 25,309,000 | $ 85,732,000 | 75,007,000 | ||||
Capitalized stock-based compensation expense | 1,900,000 | 1,500,000 | $ 5,900,000 | 4,600,000 | ||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of vesting schedules | schedule | 4 | |||||||
Exercisable period | 10 years | |||||||
Intrinsic value of options exercised | $ 5,300,000 | $ 9,800,000 | $ 18,100,000 | $ 20,200,000 | ||||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 23.41 | $ 13.31 | $ 18.89 | $ 15.35 | ||||
Unrecognized compensation costs | $ 21,000,000 | $ 21,000,000 | ||||||
Unrecognized compensation costs, period for recognition | 2 years 6 months 1 day | |||||||
Employee Stock Option | End of year one | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 25.00% | |||||||
Employee Stock Option | First year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 10.00% | |||||||
Employee Stock Option | Second year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 20.00% | |||||||
Employee Stock Option | Third year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 30.00% | |||||||
Employee Stock Option | Fourth year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 40.00% | |||||||
Employee Stock Option | Monthly Basis First Year Member | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 35.00% | |||||||
Employee Stock Option | Monthly Basis Second Year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 40.00% | |||||||
Employee Stock Option | Monthly Basis Third Year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 25.00% | |||||||
Employee Stock Option | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Employee Stock Option | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Number of vesting schedules | schedule | 3 | |||||||
Unrecognized compensation costs | $ 242,000,000 | $ 242,000,000 | ||||||
Unrecognized compensation costs, period for recognition | 2 years 7 months | |||||||
RSUs | End of year one | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 25.00% | |||||||
RSUs | First year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 10.00% | |||||||
RSUs | Second year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 20.00% | |||||||
RSUs | Third year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 30.00% | |||||||
RSUs | Fourth year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate | 40.00% | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Subscription rate of eligible compensation | 15.00% | 15.00% | ||||||
Purchase price, percentage of fair market value | 85.00% | |||||||
Number of shares purchased (in shares) | shares | 0 | 0 | 195,987 | 228,299 | ||||
Weighted-average purchase price (in dollars per share) | $ / shares | $ 36.42 | $ 23.73 | $ 36.42 | $ 23.73 | ||||
Stock-based compensation | $ 700,000 | $ 500,000 | $ 2,000,000 | $ 1,500,000 | ||||
|
STOCKHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Number of Shares | ||
Outstanding, beginning balance (in shares) | 7,078,932 | |
Granted (in shares) | 685,850 | |
Exercised (in shares) | (737,986) | |
Canceled (in shares) | (109,361) | |
Outstanding, ending balance (in shares) | 6,917,435 | 7,078,932 |
Options vested and exercisable (in shares) | 5,543,179 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in USD per share) | $ 22.70 | |
Granted (in USD per share) | 43.52 | |
Exercised (in USD per share) | 19.91 | |
Canceled (in USD per share) | 48.85 | |
Outstanding, ending balance (in USD per share) | 24.65 | $ 22.70 |
Options vested and exercisable (in USD per share) | $ 21.71 | |
Weighted- Average Remaining Contractual Term | ||
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 5 years 4 months 17 days | 5 years 6 months 21 days |
Options vested and exercisable, Weighted-Average Remaining Contractual Term (in years) | 4 years 7 months 6 days | |
Aggregate Intrinsic Value | ||
Outstanding, Aggregate Intrinsic Value | $ 174,842 | $ 145,613 |
Options vested and exercisable, Aggregate Intrinsic Value | $ 157,306 |
STOCKHOLDERS' EQUITY (Schedule of Restricted Stock Units Activity) (Details) - Restricted Stock Units |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Number of Shares | |
Unvested, beginning balance (in shares) | shares | 7,249,205 |
Granted (in shares) | shares | 3,029,151 |
Released (in shares) | shares | (2,393,407) |
Canceled (in shares) | shares | (1,087,920) |
Unvested, ending balance (in shares) | shares | 6,797,029 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 34.57 |
Granted (in USD per share) | $ / shares | 42.59 |
Released (in USD per share) | $ / shares | 36.06 |
Canceled (in USD per share) | $ / shares | 36.02 |
Unvested, ending balance (in USD per share) | $ / shares | $ 37.39 |
STOCKHOLDERS' EQUITY (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 29,194 | $ 25,309 | $ 85,732 | $ 75,007 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 1,162 | 993 | 3,345 | 2,931 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 7,941 | 7,305 | 23,514 | 21,434 |
Product development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 14,536 | 11,976 | 41,878 | 34,428 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 5,555 | $ 5,035 | $ 16,995 | $ 16,214 |
OTHER INCOME, NET (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||
Other Income and Expenses [Abstract] | ||||||||
Interest income, net | $ 3,705 | $ 991 | $ 9,606 | $ 2,431 | ||||
Transaction gain on foreign exchange | 75 | 323 | 89 | 377 | ||||
Other non-operating income, net | 141 | 57 | 255 | 125 | ||||
Other income, net | $ 3,921 | $ 1,371 | [1] | $ 9,950 | $ 2,933 | [1] | ||
|
INCOME TAXES - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||
Income Tax Disclosure [Abstract] | ||||||||
Benefit from (provision for) income taxes | $ 684 | $ (232) | [1] | $ 281 | $ (417) | [1] | ||
|
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Income Tax Contingency [Line Items] | ||||||||
Income Tax Expense (Benefit) | $ (684) | $ 232 | $ (281) | $ 417 | [1] | |||
Income tax provision due to U.S. federal and state income taxes and foreign income taxes | 1,200 | $ 400 | ||||||
Net discrete tax expense (benefit) | (1,500) | |||||||
Unrecognized tax benefits | 24,400 | 24,400 | ||||||
Unrecognized tax benefits that would not impact the effective tax rate | 23,500 | 23,500 | ||||||
Unrecognized tax benefits increase | 2,000 | |||||||
Earnings of foreign subsidiaries to be reinvested indefinitely | $ 3,300 | $ 3,300 | ||||||
Federal and State Tax Jurisdictions | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Open tax year | 2003 | |||||||
Canada, Ireland, United Kingdom and Germany Tax Jurisdictions | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Open tax year | 2010 | |||||||
|
NET INCOME PER SHARE (Schedule of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||||
Earnings Per Share Reconciliation [Line Items] | ||||||||||
Net income | $ 14,986 | $ 8,030 | [1] | $ 23,404 | $ 11,874 | [1],[2] | ||||
Basic net income per share: | ||||||||||
Weighted-average common shares outstanding (in shares) | 84,008 | 82,259 | [1] | 83,865 | 81,041 | [1] | ||||
Basic net income per share attributable to common stockholders | $ 0.18 | $ 0.10 | [1] | $ 0.28 | $ 0.15 | [1] | ||||
Diluted net income per share | ||||||||||
Weighted-average common shares outstanding (in shares) | 84,008 | 82,259 | [1] | 83,865 | 81,041 | [1] | ||||
Number of shares used in diluted calculation (in shares) | 88,724 | 87,433 | [1] | 89,271 | 86,097 | [1] | ||||
Diluted net income per share attributable to common stockholders (in USD per share) | $ 0.17 | $ 0.09 | [1] | $ 0.26 | $ 0.14 | [1] | ||||
Stock options | ||||||||||
Diluted net income per share | ||||||||||
Incremental common shares (in shares) | 3,011 | 3,253 | 3,096 | 3,179 | ||||||
Restricted stock units | ||||||||||
Diluted net income per share | ||||||||||
Incremental common shares (in shares) | 1,656 | 1,921 | 2,240 | 1,877 | ||||||
Employee stock purchase program | ||||||||||
Diluted net income per share | ||||||||||
Incremental common shares (in shares) | 49 | 0 | 70 | 0 | ||||||
|
NET INCOME PER SHARE (Schedule of Anti-Dilutive Employee Stock Awards) (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive awards (in shares) | 1,694 | 1,793 | 1,681 | 1,911 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive awards (in shares) | 591 | 871 | 106 | 978 |
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS (Revenue) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||
Net revenue | $ 241,096 | $ 223,287 | [1] | $ 699,033 | $ 631,406 | [1] | ||
United States | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||
Net revenue | 237,597 | 219,642 | 689,096 | 620,925 | ||||
All other countries | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||
Net revenue | 3,499 | 3,645 | 9,937 | 10,481 | ||||
Advertising | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||
Net revenue | 232,502 | 200,502 | 672,712 | 566,085 | ||||
Transactions | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||
Net revenue | 3,042 | 18,524 | 10,402 | 55,024 | ||||
Other services | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||
Net revenue | $ 5,552 | $ 4,261 | $ 15,919 | $ 10,297 | ||||
|
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS (Long-Lived Assets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 110,899 | $ 103,651 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 108,900 | 100,990 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,999 | $ 2,661 |
RESTRUCTURING AND INTEGRATION (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Dec. 31, 2017 |
|||
Restructuring and Related Activities [Abstract] | |||||||||
Restructuring and integration | $ 0 | $ 35,000 | $ 0 | $ 286,000 | |||||
Expected restructuring costs remaining | $ 0 | ||||||||
|
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