Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of assets and liabilities measured at fair value on a recurring basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis



	December 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds⁽¹⁾	$	53,853	—		—		53,853		$	33,710	$	—	$	—	$	33,710
Total assets	$	53,853	—		—		53,853		$	33,710	$	—	$	—	$	33,710
Liabilities:
Contingent consideration on acquisition liability⁽²⁾	—		—		—		—		$	—	$	—	$	2,483	$	2,483
Total liabilities	$	—	$	—	$	—	$	—	$	—	$	—	$	2,483	$	2,483

(1) Money market funds are included within cash and cash equivalents in the Company’s consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, the Company’s money market funds have carrying values that approximates its fair value. Amounts above do not include $22,467 and $9,450 of operating cash balances as of December 31, 2017 and 2016, respectively.

(2) In connection with the acquisition of TVN in August 2015, the former stockholders of TVN (“TVN Sellers”) were eligible to receive cash payments over a term of two years contingent on the operating performance of TVN in reaching certain financial milestones in each of the periods from July 1, 2015 to June 30, 2016 (the “Year 1 Earn-Out Period”) and the period from July 1, 2016 to June 30, 2017 (the “Year 2 Earn-Out Period”), a portion of which was also contingent on continued employment of certain TVN Sellers (the “TVN Employee Sellers”). In estimating the fair value of the contingent consideration, the Company used a Monte-Carlo valuation model based on future expectations on reaching financial milestones, other management assumptions (including operating results, business plans, anticipated future cash flows, and marketplace data), and the weighted-probabilities of possible payments. These assumptions were based on significant inputs not observed in the market and, therefore, represent a Level 3 measurement. Subsequent to the date of acquisition, the Company re-measured the estimated fair value of the contingent consideration at each reporting date with any changes in fair value recorded in the Company’s statements of operations. Any changes in the unobservable inputs could significantly impact the estimated fair value of the contingent consideration.

Schedule of changes in Level 3 instruments measured at fair value on a recurring basis

The following table represents the changes in the Company’s Level 3 instruments measured at fair value on a recurring basis for the years ended December 31, 2017 and December 31, 2016:



	2017			2016
Beginning balance at January 1,	$	2,483		$	1,430
Compensation expense⁽¹⁾	1,810			3,568
Mark-to-market expense⁽²⁾	148			1,263
Contingent consideration payments⁽³⁾	(4,753		)	(3,837		)
Foreign currency translation adjustment	312			59
Ending balance at December 31,	$	—		$	2,483

(1) Represents contingent consideration attributable to the TVN Employee Sellers that has been recorded during the years ended December 31, 2017 and 2016, respectively. Refer to the table above regarding assumptions used for Level 3 instruments, and note 7 for further discussion of contingent consideration payments paid in connection with the Company’s acquisition of TVN.

(2) Reflects expense incurred based on the Company’s re-measurement, at June 30, 2017, and December 31, 2016, respectively, of the estimated fair value of the contingent consideration relating to the TVN Sellers that are not required to remain employed with the Company. Amounts recorded as mark-to-market expense relating to Level 3 instruments are recorded in operating expense. Refer to the table above regarding assumptions used for Level 3 instruments, and note 7 for further discussion of contingent consideration payments paid in connection with the Company’s acquisition of TVN.

(3) The Company paid the TVN Sellers, earn-out payments of $3,837 and $4,753 for each the Year - 1 and Year - 2 Earn out Periods, respectively.