STOCK-BASED COMPENSATION (Note)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Cost of revenue	$	24	$	11	$	68	$	24
Selling and marketing expense	425		205		1,080		664
General and administrative expense	1,178		1,292		3,909		3,281
Product development	351		278		1,176		854
Restructuring and severance	—		—		138		36
Total non-cash compensation	$	1,978	$	1,786	$	6,371	$	4,859

Stock Options

A summary of changes in outstanding stock options is as follows:



	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value^(a)
			(per option)		(in years)	(in thousands)
Options outstanding at January 1, 2015	2,136,679		$	18.16
Granted ^(b)	44,635		66.68
Exercised	(134,515	)	17.51
Forfeited	(127,439	)	26.84
Expired	(1,339	)	7.88
Options outstanding at September 30, 2015	1,918,021		18.76		6.15	$	142,596
Options exercisable at September 30, 2015	934,288		$	8.53	3.70	$	78,944

(a)

The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $93.03 on the last trading day of the quarter ended September 30, 2015 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2015. The intrinsic value changes based on the market value of the Company's common stock.

(b)

During the nine months ended September 30, 2015, the Company granted stock options to certain employees and the board of directors with a weighted average grant date fair value per share of $26.71, which vesting periods include (a) three years from the grant date, (b) 25% and 75% over a period of 1.67 years and 2.67 years, respectively, (c) one year from the grant date and (d) two years from the grant date.

For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the stock options was estimated using the Black-Scholes option pricing model, which requires the use of various key assumptions. The weighted average assumptions used are as follows:



Expected term ⁽¹⁾	5.50 - 6.23 years
Expected dividend ⁽²⁾	—
Expected volatility ⁽³⁾	37.51% - 42.46%
Risk-free interest rate ⁽⁴⁾	1.65% - 2.01%


(1)	The expected term of stock options granted was calculated using the 'Simplified Method', which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees.


(2)	For all stock options granted in 2015, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate.


(3)	The expected volatility rate is based on the historical volatility of the Company's common stock.


(4)	The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date.

Restricted Stock Units and Restricted Stock

A summary of the changes in outstanding nonvested restricted stock units ("RSUs") and restricted stock is as follows:



	RSUs
	Number of Units		Weighted Average Grant Date Fair Value
			(per unit)
Nonvested at January 1, 2015	351,801		$	22.83
Granted	94,310		65.57
Vested	(176,914	)	20.31
Forfeited	(27,788	)	32.37
Nonvested at September 30, 2015	241,409		$	40.29



	Restricted Stock
	Number of Shares		Weighted Average Grant Date Fair Value
			(per share)
Nonvested at January 1, 2015	123,057		$	23.41
Granted	—		—
Vested	(35,295	)	20.62
Forfeited	—		—
Nonvested at September 30, 2015	87,762		$	24.54