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Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Net revenues (note 10) $ 337,145 $ 346,013 [1],[2] $ 329,421
Cost of revenues (note 10)      
Cost of revenues 217,579 232,103 [2] 230,600
Network expenses 9,190 9,846 [2] 9,324
Depreciation of property and equipment 8,475 5,298 [2] 3,142
Amortization of intangible assets 1,124 1,996 [2] 1,834
Total cost of revenues 236,368 249,243 [2],[3] 244,900
Gross profit 100,777 96,770 [2] 84,521
Expenses:      
Sales and marketing 34,270 33,063 [2] 29,423
Technical operations and development 9,717 8,748 [2] 7,258
General and administrative 17,880 17,710 [2] 13,594
Depreciation of property and equipment (note 4) 486 424 [2] 585
Loss on disposition of property and equipment 73 [2]
Amortization of intangible assets (note 5) 9,209 7,247 [2] 6,566
Impairment of indefinite life intangible assets (note 5) 111
Loss (gain) on currency forward contracts (note 7) (198) 254 [2] (98)
Total expenses 71,437 67,446 [2] 57,439
Income from operations 29,340 29,324 [2] 27,082
Other income (expenses):      
Interest expense, net (4,769) (3,687) [2] (3,567)
Other income, net (note 16) 518 [2] 560
Total other income (expenses) (4,769) (3,169) [2] (3,007)
Income before provision for income taxes 24,571 26,155 [2] 24,075
Provision for income taxes (note 9) 9,173 9,020 [2] 1,748
Net income before redeemable non-controlling interest 15,398 17,135 [2] 22,327
Redeemable non-controlling interest (26) [2] (387)
Net income attributable to redeemable non-controlling interest 26 [2] 387
Net income for the period 15,398 17,135 [2],[4] 22,327
Other comprehensive income, net of tax      
Unrealized income (loss) on hedging activities (note 7) 1,101 (1,022) [2] 550
Net amount reclassified to earnings (note 7) 182 212 [2] (650)
Other comprehensive income (loss) net of tax (expense) recovery of ($411), $259 and $56 for the years ended December 31, 2019, 2018 and 2017 (note 7) 1,283 (810) (100)
Comprehensive income, net of tax for the period $ 16,681 $ 16,325 [2] $ 22,227
Basic earnings per common share (note 17) (in dollars per share) $ 1.45 $ 1.62 [2] $ 2.12
Shares used in computing basic earnings per common share (note 17) (in shares) 10,623,799 10,604,722 [2] 10,537,356
Diluted earnings per common share (note 17) (in dollars per share) $ 1.43 $ 1.59 [2] $ 2.07
Shares used in computing diluted earnings per common share (note 17) (in shares) 10,772,812 10,794,170 [2] 10,793,622
[1] As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized revenue for the year ended December 31, 2018 includes $16.9 million, related to previously deferred revenue, a portion of which would have otherwise been recognized after December 31, 2018.
[2] The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 using the modified retrospective method (note 2(v)). Under this method, the comparative information is not restated.
[3] As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized Cost of revenue for the year ended December 31, 2018 includes $16.8 million, related to previously deferred prepaid registry fees, a portion of which would have otherwise been recognized after December 31, 2018.
[4] The Company has initially applied ASC 2014-09 (Topic 606) on January 1, 2018 and ASC 2016-02 (Topic 842) on January 1, 2019. Both accounting standards were adopted using the modified retrospective method, under this method the comparative periods were not restated.