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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	May 03, 2016
Document - Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	lpsn
Entity Registrant Name	LIVEPERSON INC
Entity Central Index Key	0001102993
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		57,430,525

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 44,556	$ 48,803
Cash held as collateral	3,969	5,409
Accounts receivable, net of allowance for doubtful accounts of $1,072 and $1,184 as of March 31, 2016 and December 31, 2015, respectively	30,209	30,388
Prepaid expenses and other current assets	11,999	9,327
Deferred tax assets, net	427	455
Total current assets	91,160	94,382
Property and equipment, net	24,841	24,129
Intangibles, net	23,034	24,619
Goodwill	80,409	80,322
Deferred tax assets, net	994	785
Other assets	2,118	1,957
Total assets	222,556	226,194
CURRENT LIABILITIES:
Accounts payable	7,188	7,102
Accrued expenses and other current liabilities	25,977	34,296
Deferred revenue	21,893	13,862
Total current liabilities	55,058	55,260
Other liabilities	3,151	3,270
Deferred tax liability	3,585	2,359
Total liabilities	61,794	60,889
Commitments and contingencies
STOCKHOLDERS’ EQUITY:
Common stock	57	57
Additional paid-in capital	286,208	286,856
Treasury stock	(1)	(1)
Accumulated deficit	(121,734)	(119,071)
Accumulated other comprehensive loss	(3,768)	(2,536)
Total stockholders’ equity	160,762	165,305
Total liabilities and stockholders’ equity	$ 222,556	$ 226,194

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,072	$ 1,184

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue	$ 55,464	$ 59,770
Costs and expenses (1) (2)
Cost of revenue (3)	15,864	16,254
Sales and marketing	22,676	24,294
General and administrative	9,529	10,164
Product development	9,214	9,800
Amortization of purchased intangibles	924	1,313
Total costs and expenses	58,207	61,825
Loss from operations	(2,743)	(2,055)
Other income (expense), net	634	(231)
Loss before provision for (benefit from) income taxes	(2,109)	(2,286)
Provision for (benefit from) income taxes	554	(228)
Net loss	$ (2,663)	$ (2,058)
Basic net (loss) income per common share (in dollars per share)	$ (0.05)	$ (0.04)
Diluted net (loss) income per common share (in dollars per share)	$ (0.05)	$ (0.04)
Weighted average shares outstanding used in basic net (loss) income per common share calculation (in shares)	56,386,003	56,291,383
Weighted average shares outstanding used in diluted net (loss) income per common share calculation (in shares)	56,386,003	56,291,383
Stock compensation expense	$ 2,319	$ 2,794
Cost of revenue [Member]
Costs and expenses (1) (2)
Amortization of purchased intangibles	697	839
Stock compensation expense	10	328
Depreciation expense	2,338	1,903
Sales and marketing expense [Member]
Costs and expenses (1) (2)
Stock compensation expense	630	595
Depreciation expense	279	250
General and administrative expense [Member]
Costs and expenses (1) (2)
Stock compensation expense	852	932
Depreciation expense	399	237
Product development expense [Member]
Costs and expenses (1) (2)
Stock compensation expense	827	939
Depreciation expense	$ 151	$ 188

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,663)	$ (2,058)
Foreign currency translation adjustment	(1,232)	(989)
Comprehensive loss	$ (3,895)	$ (3,047)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES:
Net loss	$ (2,663)	$ (2,058)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense	2,319	2,794
Depreciation	3,167	2,578
Amortization of purchased intangibles	1,621	2,152
Deferred income taxes and other non-cash tax items	(181)	820
Provision for doubtful accounts, net	385	403
Changes in operating assets and liabilities:
Accounts receivable	(205)	(4,609)
Prepaid expenses and other current assets	(2,829)	(2,544)
Other assets	(84)	(15)
Accounts payable	86	1,359
Accrued expenses and other current liabilities	(8,606)	(7,045)
Deferred revenue	8,031	(1,776)
Other liabilities	1,109	361
Net cash provided by (used in) operating activities	2,150	(7,580)
INVESTING ACTIVITIES:
Purchases of property and equipment, including capitalized software	(4,529)	(1,783)
Cash held as collateral for foreign exchange forward contracts	1,440	0
Net cash used in investing activities	(3,089)	(1,783)
FINANCING ACTIVITIES:
Excess tax benefit from the exercise of employee stock options	0	751
Proceeds from issuance of common stock in connection with the exercise of options	235	2,284
Repurchase of common stock	(3,204)	(2,058)
Net cash (used in) provided by financing activities	(2,969)	977
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(339)	(150)
CHANGE IN CASH AND CASH EQUIVALENTS	(4,247)	(8,536)
CASH AND CASH EQUIVALENTS - Beginning of the period	48,803	49,372
CASH AND CASH EQUIVALENTS - End of the period	44,556	40,836
SUPPLEMENTAL DISCLOSURE OF OTHER CASH FLOW INFORMATION:
Cash paid for income taxes	464	583
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property and equipment recorded in accounts payable	287	2,224
Contingent earn-out in connection with acquisitions recorded in accrued expenses	0	1,810
Leasehold improvements funded by landlord	$ 152	$ 0

Description of Business and Basis of Presentation	3 Months Ended
Description of Business and Basis of Presentation	Mar. 31, 2016
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation LivePerson, Inc. (the “Company” or “LivePerson”) was incorporated in the State of Delaware in November 1995 and the LivePerson service was introduced in November 1998. In April 2000, the Company completed an initial public offering and is currently traded on the Nasdaq Global Select Market and the Tel Aviv Stock Exchange. LivePerson is headquartered in New York City, with U.S. offices in Alpharetta (Georgia) and San Francisco, and international offices in Amsterdam, Berlin, London, Mannheim, Melbourne, Milan, Paris, Ra'anana (Israel), Reading (UK), and Tokyo. LivePerson provides mobile and online messaging technologies that power digital communication between brands and consumers. LiveEngage, the Company’s enterprise-class, cloud-based platform, enables businesses to create a meaningful connection with consumers by offering messaging as a preferred channel of communication. Messaging diminishes the need to rely on email systems or call a 1-800 number. Brands leverage LivePerson’s sophisticated intelligence engine and suite of text and mobile messaging, real-time chat messaging, content delivery, and cobrowsing offerings to proactively engage with consumers through m-dot sites, mobile apps, the desktop, social media and third-party consumer messaging platforms. The Company’s campaign-based messaging enables the brand to target the right consumer at the right time on a brand’s site by leveraging proprietary analysis and data-driven intelligence. The data the Company gathers and analyzes, on behalf of its customers, spans the breadth of an online or mobile visitor session, starting from an initial keyword search or application login, through actions on the website or mobile application of the Company’s customer, and even into a shopping cart and an executed sale. The Company combines this session data with other historical, behavioral and operational information to develop insights into each step of a consumer’s journey for sales and service transactions. These unique, industry- and use-case specific insights are mapped to each brand’s business goals in order to deliver successful campaign outcomes. LivePerson’s products, coupled with its domain knowledge, industry expertise and consulting services, have been proven to maximize the effectiveness of consumer engagement. The Company’s primary revenue source is from the sale of LivePerson services to businesses of all sizes. The Company also offers an online marketplace that connects independent service providers (“Experts”) who provide information and knowledge for a fee via mobile and online messaging with individual consumers (“Users”). Basis of Presentation The accompanying condensed consolidated financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the consolidated financial position of LivePerson as of March 31, 2016, and the consolidated results of operations, comprehensive loss and cash flows for the interim periods ended March 31, 2016 and 2015. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. The condensed consolidated balance sheet at December 31, 2015 has been derived from audited consolidated financial statements at that date. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2016. Principles of Consolidation The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of the Company’s 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. Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-09, "Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). This update is intended to improve the accounting for employee share-based payments and affects all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including:(a)income tax consequences;(b)classification of awards as either equity or liabilities; and(c)classification on the statement of cash flows. ASU 2016-09 is effective for financial statements issued for annual periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-09 on its financial statements. In March 2016, FASB issued Accounting Standards Update No. 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships" ("ASU 2016-05"). This update applies to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. The term novation, as it relates to derivative instruments, refers to replacing one of the parties to a derivative instrument with a new party. In practice, derivative instrument novations may occur for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The derivative instrument that is the subject of a novation may be the hedging instrument in a hedging relationship that has been designated under Topic 815, Derivatives and Hedging. This update clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria. ASU 2016-05 is effective for financial statements issued for annual periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-05 on its financial statements. In February 2016, FASB issued Accounting Standards Update No. 2016-02, "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on its financial statements. In January 2016, FASB issued Accounting Standards Update No. 2016-01, “Financial Instruments- Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). Additionally, it requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Lastly, the standard eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company does not expect the standard to have a material impact on its consolidated financial statements. In November 2015, FASB issued Accounting Standards Update No. 2015-17, “Income taxes: Balance Sheet Classification of Deferred Taxes Business” (“ASU 2015-17”). Topic 740, Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently in the process of evaluating the impact of adoption of ASU 2015-17 on its financial statements. In September 2015, FASB issued Accounting Standards Update No. 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in ASU 2015-16 require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for annual reporting periods beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of adoption of ASU 2015-16 on its financial statements. In February 2015, FASB issued Accounting Standards Update (“ASU”) 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”), which affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The standard amends the consolidation requirements in ASC 810. ASU 2015-02 is effective for fiscal periods beginning after December 15, 2015 for public companies, and early adoption is permitted. The Company does not expect to early adopt ASU 2015-02, which will be effective for our fiscal year ending December 31, 2016. The Company does not believe the standard will have a material impact on its financial statements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes most existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In March 2016, the FASB issued implementation guidance that clarified the considerations in principal versus agent determination. In April 2016, the FASB issued guidance that clarified identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The Company will adopt this guidance at the beginning of its first quarter of fiscal year 2018. Adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Revenue Recognition	3 Months Ended
Revenue Recognition	Mar. 31, 2016
Revenue Recognition [Abstract]
Revenue Recognition	Revenue Recognition The majority of the Company’s revenue is generated from monthly service revenues and related professional services from the sale of the LivePerson services. Because the Company provides its application as a service, the Company follows the provisions of FASB Accounting Standards Codification (“ASC”) 605-10-S99, “Revenue Recognition” and ASC 605-25, “Revenue Recognition with Multiple-Element Arrangements.” The Company charges a monthly fee, which varies by type of service, the level of customer usage and website traffic, and in some cases, the number of orders placed via the Company’s online engagement solutions. For certain of the Company’s larger customers, the Company may provide call center labor through an arrangement with one or more of several qualified vendors. For most of these customers, the Company passes the fee it incurs with the labor provider and its fee for the hosted services through to its customers in the form of a fixed fee for each order placed via the Company’s online engagement solutions. For these Pay for Performance (“PFP”) arrangements, in accordance with ASC 605-45, “Principal Agent Considerations,” the Company records revenue for transactions in which it acts as an agent on a net basis, and revenue for transactions in which it acts as a principal on a gross basis. The Company also sells certain of the LivePerson services directly via Internet download. These services are marketed as LiveEngage for small to medium-sized businesses, and are paid for almost exclusively by credit card. Credit card payments accelerate cash flow and reduce the Company’s collection risk, subject to the merchant bank’s right to hold back cash pending settlement of the transactions. Sales of LiveEngage may occur with or without the assistance of an online sales representative, rather than through face-to-face or telephone contact that is typically required for traditional direct sales. The Company recognizes monthly service revenue based upon the fee charged for the LivePerson services, provided that there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed or determinable. The Company’s service agreements typically have twelve month terms and, in some cases, are terminable or may terminate upon 30 to 90 days’ notice without penalty. When professional service fees add value to the customer on a standalone basis, the Company recognizes professional service fees upon completion and customer acceptance. The Company establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence; (b) third-party evidence; or (c) best estimated selling price. If a professional services arrangement does not qualify for separate accounting, the Company recognizes the fees, and the related labor costs, ratably over the contracted period. For revenue from the Company’s Consumer segment generated from online transactions between Experts and Users, the Company recognizes revenue net of the Expert fees in accordance with ASC 605-45, “Principal Agent Considerations,” due primarily to the fact that the Expert is the primary obligor. Additionally, the Company performs as an agent without any risk of loss for collection, and is not involved in selecting the Expert or establishing the Expert’s fee. The Company collects a fee from the User and retains a portion of the fee, and then remits the balance to the Expert. Revenue from these transactions is recognized when there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed and determinable.

Net Loss Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Net Loss Per Share

Net Income (Loss) Per Share

The Company calculates earnings per share (“EPS”) in accordance with the provisions of ASC 260-10 and the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 98. Under ASC 260-10, basic EPS excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. All options, warrants or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.

Diluted net loss per common share for the three months ended March 31, 2016 does not include the effect of options to purchase 8,587,993 shares of common stock, as the effect of their inclusion is anti-dilutive. Diluted net loss per common share for the three months ended March 31, 2015 does not include the effect of options to purchase 10,152,741 shares of common stock, as the effect of their inclusion is anti-dilutive.

A reconciliation of shares used in calculating basic and diluted net loss per share follows:



	Three Months Ended
	March 31,
	2016	2015
Basic	56,386,003	56,291,383
Effect of assumed exercised options	—	—
Diluted	56,386,003	56,291,383

Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment facilitates real-time online interactions – chat, voice and content delivery across multiple channels and screens for global corporations of all sizes. The Consumer segment facilitates online transactions between Experts and Users and sells its services to consumers. Both segments currently generate their revenue primarily in the United States. The chief operating decision maker, who is the chief executive officer, evaluates performance, makes operating decisions, and allocates resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s condensed consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses, restructuring costs and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no inter-segment sales.

Summarized financial information by segment for the three months ended March 31, 2016, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	45,959	$	—	$	—		$	45,959
Hosted services – Consumer	—		3,766		—			3,766
Professional services	5,739		—		—			5,739
Total revenue	51,698		3,766		—			55,464
Cost of revenue	15,238		626		—			15,864
Sales and marketing	21,013		1,663		—			22,676
Amortization of purchased intangibles	924		—		—			924
Unallocated corporate expenses	—		—		18,743			18,743
Operating income (loss)	$	14,523	$	1,477	$	(18,743	)	$	(2,743	)

Summarized financial information by segment for the three months ended March 31, 2015, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	50,613	$	—	$	—		$	50,613
Hosted services – Consumer	—		3,696		—			3,696
Professional services	5,461		—		—			5,461
Total revenue	56,074		3,696		—			59,770
Cost of revenue	15,617		637		—			16,254
Sales and marketing	22,852		1,442		—			24,294
Amortization of purchased intangibles	1,313		—		—			1,313
Unallocated corporate expenses	—		—		19,964			19,964
Operating income (loss)	$	16,292	$	1,617	$	(19,964	)	$	(2,055	)

Geographic Information

The Company is domiciled in the United States and has international operations in the United Kingdom, Asia-Pacific, Latin America and Western Europe, particularly France and Germany. The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):



	Three Months Ended
	March 31,
	2016		2015
United States	$	37,790	$	41,442
Other Americas ⁽¹⁾	1,546		2,703
Total Americas	39,336		44,145
EMEA ⁽²⁾	11,606		11,784
APAC ⁽³⁾	4,522		3,841
Total revenue	$	55,464	$	59,770

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands):



	March 31,		December 31,
	2016		2015
United States	$	97,038	$	96,362
Israel	15,923		16,393
Australia	8,523		8,290
Netherlands	7,366		8,285
Other ⁽¹⁾	2,546		2,482
Total long-lived assets	$	131,396	$	131,812

⁽¹⁾ United Kingdom, Germany, Japan, France and Italy

No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. No individual customer accounted for 10% or more of accounts receivable as of March 31, 2016 and December 31, 2015.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2016 are as follows (amounts in thousands):



	Business		Consumer		Consolidated
Balance as of December 31, 2015	$	72,298	$	8,024	$	80,322
Adjustments to goodwill:
Foreign exchange adjustment	87		—		87
Balance as of March 31, 2016	$	72,385	$	8,024	$	80,409

Intangible Assets

Intangible assets are summarized as follows (see Note 8) (amounts in thousands):



	As of March 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,063	$	(16,855	)	$	11,208	4.7 years
Customer relationships	16,021		(7,196		)	8,825		5.8 years
Trade names	1,299		(1,269		)	30		2.6 years
Non-compete agreements	1,449		(1,008		)	441		1.7 years
Patents	3,440		(937		)	2,503		9.3 years
Other	262		(235		)	27		3.0 years
Total	$	50,534	$	(27,500	)	$	23,034



	As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,005	$	(15,723	)	$	12,282	4.7 years
Customer relationships	16,008		(6,873		)	9,135		5.8 years
Trade names	1,287		(1,250		)	37		2.6 years
Non-compete agreements	1,446		(936		)	510		1.7 years
Patents	3,440		(848		)	2,592		9.3 years
Other	312		(249		)	63		3.0 years
Total	$	50,498	$	(25,879	)	$	24,619

Amortization expense is calculated over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $1.6 million and $2.2 million for the three months ended March 31, 2016 and 2015, respectively. For the three months ended March 31, 2016 and 2015, respectively, a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years is as follows (amounts in thousands):



	Estimated Amortization Expense
2016	$	5,018
2017	4,917
2018	2,813
2019	2,591
2020	2,401
Thereafter	5,294
Total	$	23,034

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

The following table presents the detail of property and equipment for the periods presented (amounts in thousands):



	March 31, 2016			December 31, 2015
Computer equipment and software	$	71,538		$	67,631
Furniture, equipment and building improvements	13,733			13,761
	85,271			81,392
Less: accumulated depreciation	(60,430		)	(57,263		)
Total	$	24,841		$	24,129

Accrued Liabilities

3 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Expenses and Other Current Liabilities

The following table presents the detail of accrued expenses and other current liabilities for the periods presented (amounts in thousands):



	March 31, 2016		December 31, 2015
Payroll and other employee related costs	$	10,267	$	14,107
Professional services and consulting and other vendor fees	11,113		12,372
Sales commissions	1,862		4,522
Contingent earnout (see Notes 8 and 9)	211		377
Other	2,524		2,918
Total	$	25,977	$	34,296

Acquisitions	3 Months Ended
Acquisitions	Mar. 31, 2016
Business Combinations [Abstract]
Acquisitions	Acquisitions Engage Pty Ltd. On November 9, 2012, the Company acquired all of the outstanding shares of Engage Pty Ltd. (“Engage”), an Australian provider of cloud-based customer contact solutions. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of Engage were included in the Company’s consolidated results of operations from the date of acquisition. The purchase price was approximately $10.6 million. The total acquisition costs incurred in the year ended December 31, 2012 were approximately $0.5 million and are included in general and administrative expenses in the Company’s condensed consolidated statements of operations for the same period. The acquisition enhances the Company’s ability to offer intelligent engagement solutions to businesses in the Asia Pacific region. Of the total purchase price, $0.8 million was allocated to the net book values of the acquired assets and assumed liabilities. The historical carrying amounts of such assets and liabilities approximated their fair values. All receivables acquired are expected to be collectible. The purchase price in excess of the fair value of the net book values of the assets acquired and liabilities assumed was allocated to intangible assets based on management’s best estimate of fair values, taking into account all relevant information available at the time of acquisition, and the excess was allocated to goodwill. The goodwill is not deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The purchase price includes approximately $1.7 million of potential earn-out consideration for the shareholders if certain revenue targets are achieved. The earn-out is payable in shares of LivePerson common stock and cash. The Company recorded the contingent earn-out as part of the purchase price. In accordance with ASC 480, the Company had classified this amount as a liability with the amount included in accrued expenses. At June 30, 2015, the Company assessed this earn-out and recorded a $0.7 million fair value re-measurement adjustment, which was recorded in operating income as a decrease to general and administrative expenses and costs of revenue. As of March 31, 2016, there was no remaining liability included in accrued expenses relating to this earn-out. Synchronite, LLC On June 2, 2014, the Company acquired Synchronite, LLC (“Synchronite”), a German-based start-up that provides co-browsing technology. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of Synchronite were included in the Company’s consolidated results of operations from the date of acquisition. The allocation of the total purchase price of approximately $4.1 million was based upon the estimated fair value of Synchronite’s net tangible and identifiable intangible assets as of the date of acquisition. The total acquisition costs incurred were approximately $0.4 million and are included in general and administrative expenses in the Company’s condensed consolidated statements of operations. Of the total purchase price, $45,000 was allocated to the net book values of the acquired assets and assumed liabilities. The historical carrying amounts of such assets and liabilities approximated their fair values. All receivables acquired are expected to be collectible. The purchase price includes approximately $2.7 million of goodwill and approximately $1.5 million of intangible assets. The goodwill is deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The purchase price includes $1.8 million of potential earn-out consideration for the shareholders if complete product integration is achieved. The earn-out is payable in shares of LivePerson common stock and cash. The Company recorded the contingent earn-out as part of the purchase price. In accordance with ASC 480, the Company has classified this amount as a liability and the amount is included in accrued expenses in the March 31, 2016 condensed consolidated balance sheet, due to the variable number of shares that will be issued if and when the targets are achieved. For the year ended December 31, 2015, the Company made $1.6 million of payments. The ending balance at March 31, 2016 is $0.2 million. The Company will continue to assess the earn-out calculation in future periods and any future adjustments will affect operating income. Contact At Once!, LLC On November 7, 2014, the Company acquired Contact At Once!, LLC (“CAO!”), a software company with a cloud-based platform that instantly connects consumers with businesses through instant messaging, text messaging, chat, social media and video over the internet for consumer-to-business sales conversions. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of CAO! were included in the Company’s consolidated results of operations from the date of acquisition. The allocation of the total purchase price of approximately $67.0 million, which includes approximately $42.8 million in cash, approximately $20.0 million in shares of common stock and approximately $4.2 million of potential earn-out consideration in cash, was based upon the estimated fair value of CAO!’s net tangible and identifiable intangible assets as of the date of acquisition. The historical carrying amounts of such assets and liabilities approximated their fair values. All receivables acquired are expected to be collectible. The purchase price includes approximately $45.1 million of goodwill and approximately $20.4 million of intangible assets. The goodwill will be deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The purchase price includes $4.2 million of potential earn-out consideration for the shareholders if certain targeted financial, strategic and integration objectives is achieved. The earn-out is payable in cash. The Company recorded the contingent earn-out as part of the purchase price. In accordance with ASC 480, the Company had classified this amount as a liability included in accrued expenses in the consolidated balance sheet. During the year ended December 31, 2015, the Company assessed this earn-out and recorded a $3.2 million fair value re-measurement adjustment, which was recorded in loss from operations as a decrease to general and administrative expenses. During the quarter ended, March 31, 2016, the Company made cash payments of $0.2 million. There is no remaining liability included in accrued expenses relating to this contingent earn-out as of March 31, 2016.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company measures its cash equivalents at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:


•	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.


•	Level 2: Inputs reflect: quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.


•	Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Financial Assets and Liabilities

The Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2016 and December 31, 2015, are summarized as follows (amounts in thousands). The Company’s restricted cash balance of $4.0 million at March 31, 2016 and $5.4 million at December 31, 2015 is not held in a money market account and is not included in the following table.



	March 31, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	3,323	$	—	$	—	$	3,323	$	4,059	$	—	$	—	$	4,059
Foreign currency derivative contracts	—		1,159		—		1,159		—		102		—		102
Total assets	$	3,323	$	1,159	$	—	$	4,482	$	4,059	$	102	$	—	$	4,161

Liabilities:
Contingent earn-outs	$	—	$	—	$	210	$	210	$	—	$	—	$	377	$	377
Foreign currency derivative contracts	—		—		—		—		—		310		—		310
Total liabilities	$	—	$	—	$	210	$	210	$	—	$	310	$	377	$	687

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available.

The Company's money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy. The Company's contingent earn-out liability and foreign currency derivative contracts are measured at fair value on a recurring basis and are classified as level 3 and level 2, respectively, within the fair value hierarchy. On a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. Long-lived tangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. The Company uses an income approach and inputs that constitute level 3. During the third quarter of each year, the Company evaluates goodwill for impairment at the reporting unit level. The Company uses qualitative factors in accordance with ASU No. 2011-08 to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This measurement is classified based on level 3 input.

The remaining contingent earn-out amounts as of March 31, 2016 are recorded in accrued expense on the condensed consolidated balance sheet and are payable in 2016. The contingent earn-out balance as of March 31, 2016 relates to Synchronite and is based on the fulfillment of a complete product integration and a minimum number of “Co-Browse” interactions per month.

The changes in fair value of the Level 3 liabilities are as follows (amounts in thousands):



	Contingent Earn-Out
	March 31, 2016			December 31, 2015
Balance, Beginning of Period	$	377		$	6,940
CAO! addition (see Note 8)	—			(2,883		)
Cash payments	(167		)	—
Changes in fair value	—			(3,680		)
Balance, End of Period	$	210		$	377

Derivative Financial Instruments

The Company is exposed to foreign exchange risks that in part are managed by using derivative financial instruments. The Company entered into foreign currency forward contracts related to risks associated with foreign operations. The Company does not use derivatives for trading purposes. Derivatives are recorded at their estimated fair values based upon Level 2 inputs. Derivatives designated and effective as cash flow hedges are reported as a component of other comprehensive income and reclassified to earnings in the same periods in which the hedged transactions impact earnings. Gains and losses related to derivatives not meeting the requirements of hedge accounting and the portion of derivatives related to hedge ineffectiveness are recognized in current earnings.

In accordance with the foreign currency forward contracts, the Company was required to pledge cash as collateral security to be maintained at the bank. The collateral shall remain in control of the lender, and these funds can be used to satisfy the outstanding obligation. Accordingly, the Company had cash at the bank of approximately $4.0 million at March 31, 2016, and $5.4 million at December 31, 2015 recorded as cash held as collateral in current assets.

The following summarizes certain information regarding the Company’s outstanding foreign currency derivative contracts related primarily to intercompany receivables and payables for the periods presented (in thousands):



	As of March 31, 2016		As of December 31, 2015
Notional amount of foreign currency derivative contracts	$	38,802	$	43,431
Fair value of foreign currency derivatives contracts	$	1,159	$	(208	)

The fair value of the Company’s derivative instruments is summarized below (in thousands):



		Fair Value of Derivative Instruments
	Balance Sheet Location	As of March 31, 2016		As of December 31, 2015
Derivative Assets
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Prepaid expenses and other current assets	$	1,159	$	102
Derivative Liabilities
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Accrued expenses and other liabilities	$	—	$	310

The following summarizes certain information regarding the Company’s derivatives that are not designated or are not effective as hedges (in thousands):



	Gain (losses) on Derivative Instruments Recognized in Statements of Operations
		Three Months Ended March 31,
	Location	2016		2015
Foreign currency derivatives contracts	Other income (expense)	$	481	$	(7	)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations The Company leases facilities and certain equipment under agreements accounted for as operating leases. These leases generally require the Company to pay all executory costs such as maintenance and insurance. Rental expense for operating leases for the three months ended March 31, 2016 was approximately $2.7 million. Rental expense for operating leases for the three months ended March 31, 2015 was approximately $2.5 million. Employee Benefit Plans The Company has a 401(k) defined contribution plan covering all eligible employees. The Company provides for employer matching contributions equal to 50% of employee contributions, up to the lesser of 5% of eligible compensation or $6,000. Matching contributions are deposited into the employee’s 401(k) account and are subject to 5 year graded vesting. Salaries and related expenses include $0.4 million of employer matching contributions for the three months ended March 31, 2016 and 2015. Letters of Credit As of March 31, 2016, the Company has a $1.9 million letter of credit outstanding substantially in favor of a certain landlord for office space. In addition, the Company has a letter of credit totaling $0.1 million as a security deposit for the due performance by the Company of the terms and conditions of a supply contract. There were no draws against these letters of credit during the three months ended March 31, 2016.

Stockholders' Equity

3 Months Ended

Mar. 31, 2016

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

Stockholders' Equity

Stockholders’ Equity

Common Stock

As of March 31, 2016, there were 100,000,000 shares of common stock authorized, and 57,430,525 shares issued and outstanding. As of December 31, 2015, there were 100,000,000 shares of common stock authorized, and 57,374,907 shares issued and outstanding. The par value for common shares is $0.001.

Preferred Stock

As of March 31, 2016 and December 31, 2015, there were 5,000,000 shares of preferred stock authorized, and zero shares issued and outstanding. The par value for preferred shares is $0.001.

Stock Repurchase Program

On December 10, 2012, the Company’s Board of Directors approved a stock repurchase program through June 30, 2014. Under the stock repurchase program, the Company is authorized to repurchase shares of its common stock, in the open market or privately negotiated transactions, at times and prices considered appropriate by the Board of Directors depending upon prevailing market conditions and other corporate considerations. On March 13, 2014, the Company’s Board of Directors increased the aggregate purchase price of the stock repurchase program from $30.0 million to $40.0 million. On July 23, 2014, the Company’s Board of Directors increased the aggregate purchase price of the stock repurchase program from $40.0 million to $50.0 million. On March 5, 2015, the Company’s Board of Directors extended the expiration date of the program out to December 31, 2016. On February 16, 2016, the Company's Board of Directors increased the aggregate purchase price of the total stock repurchase program by an additional $14.0 million. There were 637,827 shares repurchased under this program during 2016 which were recorded in treasury stock at par on the condensed consolidated balance sheets as of March 31, 2016. As of March 31, 2016, approximately $16.9 million remained available for purchase under the program.

Stock-Based Compensation

The Company follows FASB ASC 718-10, “Stock Compensation,” which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized.

The per share weighted average fair value of stock options granted during the three months ended March 31, 2016 was $2.34. The per share weighted average fair value of stock options granted during the three months ended March 31, 2015 was $4.64. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



	Three Months Ended
	March 31,
	2016	2015
Dividend yield	0.0%	0.0%
Risk-free interest rate	1.25%	1.30%
Expected life (in years)	5	5
Historical volatility	47.3%	49.7%

A description of the methods used in the significant assumptions used to estimate the fair value of stock-based compensation awards follows:

Dividend yield – The Company uses 0% as it has never issued dividends and does not anticipate issuing dividends in the near term.

Risk-free interest rate – The Company uses the market yield on U.S. Treasury securities at five years with constant maturity, representing the current expected life of stock options in years.

Expected life – The Company uses historical data to estimate the expected life of a stock option.

Historical volatility – The Company uses a trailing five year from grant date to determine volatility.

Stock Option Plans

During 1998, the Company established the Stock Option and Restricted Stock Purchase Plan (the “1998 Plan”). Under the 1998 Plan, the Board of Directors could issue incentive stock options or nonqualified stock options to purchase up to 5,850,000 shares of common stock. The 2000 Stock Incentive Plan (the “2000 Plan”) succeeded the 1998 Plan. Under the 2000 Plan, the options which had been outstanding under the 1998 Plan were incorporated in the 2000 Plan increasing the number of shares available for issuance under the plan by approximately 4,150,000, thereby reserving for issuance 10,000,000 shares of common stock in the aggregate.

The Company established the 2009 Stock Incentive Plan (as amended and restated, the “2009 Plan”) as a successor to the 2000 Plan. Under the 2009 Plan, the options which had been outstanding under the 2000 Plan were incorporated into the 2009 Plan and the Company increased the number of shares available for issuance under the plan by 6,000,000. The Company amended the 2009 stock incentive plan (the “Amended 2009 Plan”) effective June 7, 2012. The Amended 2009 Plan increased the number of shares authorized for issuance under the plan by an additional 4,250,000, thereby reserving for issuance 23,817,744 shares of common stock in the aggregate. Options to acquire common stock granted thereunder have 10-year terms. As of March 31, 2016, approximately 4,323,000 shares of common stock were reserved for issuance under the 2009 Plan (taking into account all option exercises through March 31, 2016).

Employee Stock Purchase Plan

In June 2010, the Company’s stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. As of March 31, 2016, approximately 332,000 shares of common stock were reserved for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through March 31, 2016).

Stock Option Activity

A summary of the Company’s stock option activity and weighted average exercise prices follows:



	Stock Option Activity				Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
	Options (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Balance outstanding at December 31, 2015	9,139		$	11.05
Granted	8		5.55
Exercised	(3	)	3.94
Cancelled or expired	(556	)	11.02
Balance outstanding at March 31, 2016	8,588		$	11.05	6.23	$	1,408
Options vested and expected to vest	8,035		$	11.07	6.08	$	1,407
Options exercisable at March 31, 2016	5,494		$	10.99	5.23	$	1,406

The total fair value of stock options exercised during the three months ended March 31, 2016 was approximately $6,822. As of March 31, 2016, there was approximately $11.6 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 1.9 years.

The following table summarizes information about outstanding and vested stock options as of March 31, 2016:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number of Shares	Weighted-Average Exercise Price
$1.79 - $7.02	1,185,764	2.67	$	5.05	1,178,264	$	5.05
$7.04 - $9.24	934,654	6.79	8.93		558,654	8.88
$9.34 - $10.05	1,007,150	8.26	9.77		327,700	9.62
$10.09 - $10.09	3,500	4.89	10.09		3,500	10.09
$10.13 - $10.13	1,339,525	7.51	10.13		402,850	10.13
$10.31 - $12.32	972,575	6.48	11.21		703,850	11.48
$12.46 - $13.28	1,344,400	5.34	13.07		1,172,150	13.08
$13.34 - $16.00	869,225	7.34	14.22		426,488	14.58
$16.98 - $18.09	926,200	6.15	17.44		716,625	17.45
$18.24 - $18.24	5,000	6.33	18.24		3,750	18.24

	8,587,993	6.23	$	11.05	5,493,831	$	10.99

Restricted Stock Unit Activity

A summary of the Company’s restricted stock units (“RSUs”) activity and weighted average exercise prices follows:



	Restricted Stock Unit Activity
	Number of Shares		Weighted Average Grant Date Fair Value (Per Share)		Aggregate Fair Value (in thousands)
Balance outstanding at December 31, 2015	1,201,500		$	10.31	$	—
Granted	—		—		—
Exercised	—		—		—
Forfeited	(41,000	)	10.31		—
Non-vested and outstanding at March 31, 2016	1,160,500		$	10.31	$	6,789
Expected to vest	852,514		$	10.31	$	4,987

RSUs granted to employees generally vest over a four-year period. As of March 31, 2016, total unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested RSUs was approximately $9.4 million and the weighted-average remaining vesting period was 3.2 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Legal Matters	3 Months Ended
Legal Matters	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal Matters The Company previously filed an intellectual property suit against [24]7 Customer, Inc. in the Southern District of New York on March 6, 2014 seeking damages on the grounds that [24]7 reverse engineered and misappropriated the Company's technology to develop competing products and misused the Company's business information. Discovery in the New York case is in process. On June 22, 2015, [24]7 Customer, Inc. filed suit against the Company in the Northern District of California alleging patent infringement. On December 7, 2015, [24]7 Customer Inc. filed a second patent infringement suit against the Company, also in the Northern District of California. On January 5, 2016, the two California cases were consolidated for all pre-trial purposes. The Company believes the claims filed by [24]7 Customer Inc. are entirely without merit and intends to defend them vigorously. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where the Company assesses the likelihood of loss as probable. From time to time, the Company is involved in or subject to legal, administrative and regulatory proceedings, claims, demands and investigations arising in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matter as appropriate and in compliance with ASC 450. The accruals or estimates, if any, resulting from the foregoing analysis, are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company will, as applicable, adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. From time to time, third parties assert claims against the Company regarding intellectual property rights, privacy issues and other matters arising in the ordinary course of business. Although the Company cannot be certain of the outcome of any litigation or the disposition of any claims, nor the amount of damages and exposure, if any, that the Company could incur, the Company currently believes that the final disposition of all existing matters will not have a material adverse effect on our business, results of operations, financial condition or cash flows. In addition, in the ordinary course of business, the Company is also subject to periodic threats of lawsuits, investigations and claims. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Description of Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

SUMMARY OF OPERATIONS

LivePerson, Inc. (the “Company” or “LivePerson”) was incorporated in the State of Delaware in November 1995 and the LivePerson service was introduced in November 1998. In April 2000, the Company completed an initial public offering and is currently traded on the Nasdaq Global Select Market and the Tel Aviv Stock Exchange. LivePerson is headquartered in New York City, with U.S. offices in Alpharetta (Georgia) and San Francisco, and international offices in Amsterdam, Berlin, London, Mannheim, Melbourne, Milan, Paris, Ra'anana (Israel), Reading (UK), and Tokyo.

LivePerson provides mobile and online messaging technologies that power digital communication between brands and consumers. LiveEngage, the Company’s enterprise-class, cloud-based platform, enables businesses to create a meaningful connection with consumers by offering messaging as a preferred channel of communication. Messaging diminishes the need to rely on email systems or call a 1-800 number. Brands leverage LivePerson’s sophisticated intelligence engine and suite of text and mobile messaging, real-time chat messaging, content delivery, and cobrowsing offerings to proactively engage with consumers through m-dot sites, mobile apps, the desktop, social media and third-party consumer messaging platforms. The Company’s campaign-based messaging enables the brand to target the right consumer at the right time on a brand’s site by leveraging proprietary analysis and data-driven intelligence.

The data the Company gathers and analyzes, on behalf of its customers, spans the breadth of an online or mobile visitor session, starting from an initial keyword search or application login, through actions on the website or mobile application of the Company’s customer, and even into a shopping cart and an executed sale. The Company combines this session data with other historical, behavioral and operational information to develop insights into each step of a consumer’s journey for sales and service transactions. These unique, industry- and use-case specific insights are mapped to each brand’s business goals in order to deliver successful campaign outcomes. LivePerson’s products, coupled with its domain knowledge, industry expertise and consulting services, have been proven to maximize the effectiveness of consumer engagement.

The Company’s primary revenue source is from the sale of LivePerson services to businesses of all sizes. The Company also offers an online marketplace that connects independent service providers (“Experts”) who provide information and knowledge for a fee via mobile and online messaging with individual consumers (“Users”).

BASIS OF PRESENTATION

Basis of Presentation

The accompanying condensed consolidated financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the consolidated financial position of LivePerson as of March 31, 2016, and the consolidated results of operations, comprehensive loss and cash flows for the interim periods ended March 31, 2016 and 2015. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. The condensed consolidated balance sheet at December 31, 2015 has been derived from audited consolidated financial statements at that date.

Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2016.

REVENUE RECOGNITION

Revenue Recognition

The majority of the Company’s revenue is generated from monthly service revenues and related professional services from the sale of the LivePerson services. Because the Company provides its application as a service, the Company follows the provisions of FASB Accounting Standards Codification (“ASC”) 605-10-S99, “Revenue Recognition” and ASC 605-25, “Revenue Recognition with Multiple-Element Arrangements.” The Company charges a monthly fee, which varies by type of service, the level of customer usage and website traffic, and in some cases, the number of orders placed via the Company’s online engagement solutions.

For certain of the Company’s larger customers, the Company may provide call center labor through an arrangement with one or more of several qualified vendors. For most of these customers, the Company passes the fee it incurs with the labor provider and its fee for the hosted services through to its customers in the form of a fixed fee for each order placed via the Company’s online engagement solutions. For these Pay for Performance (“PFP”) arrangements, in accordance with ASC 605-45, “Principal Agent Considerations,” the Company records revenue for transactions in which it acts as an agent on a net basis, and revenue for transactions in which it acts as a principal on a gross basis.

The Company also sells certain of the LivePerson services directly via Internet download. These services are marketed as LiveEngage for small to medium-sized businesses, and are paid for almost exclusively by credit card. Credit card payments accelerate cash flow and reduce the Company’s collection risk, subject to the merchant bank’s right to hold back cash pending settlement of the transactions. Sales of LiveEngage may occur with or without the assistance of an online sales representative, rather than through face-to-face or telephone contact that is typically required for traditional direct sales.

The Company recognizes monthly service revenue based upon the fee charged for the LivePerson services, provided that there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed or determinable. The Company’s service agreements typically have twelve month terms and, in some cases, are terminable or may terminate upon 30 to 90 days’ notice without penalty. When professional service fees add value to the customer on a standalone basis, the Company recognizes professional service fees upon completion and customer acceptance. The Company establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence; (b) third-party evidence; or (c) best estimated selling price. If a professional services arrangement does not qualify for separate accounting, the Company recognizes the fees, and the related labor costs, ratably over the contracted period.

For revenue from the Company’s Consumer segment generated from online transactions between Experts and Users, the Company recognizes revenue net of the Expert fees in accordance with ASC 605-45, “Principal Agent Considerations,” due primarily to the fact that the Expert is the primary obligor. Additionally, the Company performs as an agent without any risk of loss for collection, and is not involved in selecting the Expert or establishing the Expert’s fee. The Company collects a fee from the User and retains a portion of the fee, and then remits the balance to the Expert. Revenue from these transactions is recognized when there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed and determinable.

NET LOSS PER SHARE

Net Income (Loss) Per Share

A reconciliation of shares used in calculating basic and diluted net loss per share follows:



	Three Months Ended
	March 31,
	2016	2015
Basic	56,386,003	56,291,383
Effect of assumed exercised options	—	—
Diluted	56,386,003	56,291,383

SEGMENT REPORTING

Segment Information

GOODWILL AND INTANGIBLE ASSETS

Amortization expense is calculated over the estimated useful life of the asset.

STOCK-BASED COMPENSATION

gram.

Stock-Based Compensation

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share

A reconciliation of shares used in calculating basic and diluted net loss per share follows:



	Three Months Ended
	March 31,
	2016	2015
Basic	56,386,003	56,291,383
Effect of assumed exercised options	—	—
Diluted	56,386,003	56,291,383

Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Summary of Financial Information by Segment



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	45,959	$	—	$	—		$	45,959
Hosted services – Consumer	—		3,766		—			3,766
Professional services	5,739		—		—			5,739
Total revenue	51,698		3,766		—			55,464
Cost of revenue	15,238		626		—			15,864
Sales and marketing	21,013		1,663		—			22,676
Amortization of purchased intangibles	924		—		—			924
Unallocated corporate expenses	—		—		18,743			18,743
Operating income (loss)	$	14,523	$	1,477	$	(18,743	)	$	(2,743	)



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	50,613	$	—	$	—		$	50,613
Hosted services – Consumer	—		3,696		—			3,696
Professional services	5,461		—		—			5,461
Total revenue	56,074		3,696		—			59,770
Cost of revenue	15,617		637		—			16,254
Sales and marketing	22,852		1,442		—			24,294
Amortization of purchased intangibles	1,313		—		—			1,313
Unallocated corporate expenses	—		—		19,964			19,964
Operating income (loss)	$	16,292	$	1,617	$	(19,964	)	$	(2,055	)

Revenues Attributable to Domestic and Foreign Operations

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):



	Three Months Ended
	March 31,
	2016		2015
United States	$	37,790	$	41,442
Other Americas ⁽¹⁾	1,546		2,703
Total Americas	39,336		44,145
EMEA ⁽²⁾	11,606		11,784
APAC ⁽³⁾	4,522		3,841
Total revenue	$	55,464	$	59,770

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

Long-Lived Assets by Geographic Region

The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands):



	March 31,		December 31,
	2016		2015
United States	$	97,038	$	96,362
Israel	15,923		16,393
Australia	8,523		8,290
Netherlands	7,366		8,285
Other ⁽¹⁾	2,546		2,482
Total long-lived assets	$	131,396	$	131,812

Long Lived Assets By Geographic Region

The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands):



	March 31,		December 31,
	2016		2015
United States	$	97,038	$	96,362
Israel	15,923		16,393
Australia	8,523		8,290
Netherlands	7,366		8,285
Other ⁽¹⁾	2,546		2,482
Total long-lived assets	$	131,396	$	131,812

⁽¹⁾ United Kingdom, Germany, Japan, France and Italy

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

Intangible assets are summarized as follows (see Note 8) (amounts in thousands):



	As of March 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,063	$	(16,855	)	$	11,208	4.7 years
Customer relationships	16,021		(7,196		)	8,825		5.8 years
Trade names	1,299		(1,269		)	30		2.6 years
Non-compete agreements	1,449		(1,008		)	441		1.7 years
Patents	3,440		(937		)	2,503		9.3 years
Other	262		(235		)	27		3.0 years
Total	$	50,534	$	(27,500	)	$	23,034



	As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,005	$	(15,723	)	$	12,282	4.7 years
Customer relationships	16,008		(6,873		)	9,135		5.8 years
Trade names	1,287		(1,250		)	37		2.6 years
Non-compete agreements	1,446		(936		)	510		1.7 years
Patents	3,440		(848		)	2,592		9.3 years
Other	312		(249		)	63		3.0 years
Total	$	50,498	$	(25,879	)	$	24,619

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense for the next five years is as follows (amounts in thousands):



	Estimated Amortization Expense
2016	$	5,018
2017	4,917
2018	2,813
2019	2,591
2020	2,401
Thereafter	5,294
Total	$	23,034

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

The following table presents the detail of property and equipment for the periods presented (amounts in thousands):



	March 31, 2016			December 31, 2015
Computer equipment and software	$	71,538		$	67,631
Furniture, equipment and building improvements	13,733			13,761
	85,271			81,392
Less: accumulated depreciation	(60,430		)	(57,263		)
Total	$	24,841		$	24,129

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Accrued Liabilities

The following table presents the detail of accrued expenses and other current liabilities for the periods presented (amounts in thousands):



	March 31, 2016		December 31, 2015
Payroll and other employee related costs	$	10,267	$	14,107
Professional services and consulting and other vendor fees	11,113		12,372
Sales commissions	1,862		4,522
Contingent earnout (see Notes 8 and 9)	211		377
Other	2,524		2,918
Total	$	25,977	$	34,296

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis



	March 31, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	3,323	$	—	$	—	$	3,323	$	4,059	$	—	$	—	$	4,059
Foreign currency derivative contracts	—		1,159		—		1,159		—		102		—		102
Total assets	$	3,323	$	1,159	$	—	$	4,482	$	4,059	$	102	$	—	$	4,161

Liabilities:
Contingent earn-outs	$	—	$	—	$	210	$	210	$	—	$	—	$	377	$	377
Foreign currency derivative contracts	—		—		—		—		—		310		—		310
Total liabilities	$	—	$	—	$	210	$	210	$	—	$	310	$	377	$	687

Change in Fair Value of Level 3 Liabilities

The changes in fair value of the Level 3 liabilities are as follows (amounts in thousands):



	Contingent Earn-Out
	March 31, 2016			December 31, 2015
Balance, Beginning of Period	$	377		$	6,940
CAO! addition (see Note 8)	—			(2,883		)
Cash payments	(167		)	—
Changes in fair value	—			(3,680		)
Balance, End of Period	$	210		$	377

Schedule of Derivative Instruments



	As of March 31, 2016		As of December 31, 2015
Notional amount of foreign currency derivative contracts	$	38,802	$	43,431
Fair value of foreign currency derivatives contracts	$	1,159	$	(208	)

Schedule of Derivative Liabilities at Fair Value

The fair value of the Company’s derivative instruments is summarized below (in thousands):



		Fair Value of Derivative Instruments
	Balance Sheet Location	As of March 31, 2016		As of December 31, 2015
Derivative Assets
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Prepaid expenses and other current assets	$	1,159	$	102
Derivative Liabilities
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Accrued expenses and other liabilities	$	—	$	310

Gain (Losses) on Derivative Instruments Recognized in Income Statement

The following summarizes certain information regarding the Company’s derivatives that are not designated or are not effective as hedges (in thousands):



	Gain (losses) on Derivative Instruments Recognized in Statements of Operations
		Three Months Ended March 31,
	Location	2016		2015
Foreign currency derivatives contracts	Other income (expense)	$	481	$	(7	)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2016

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

Summary of Stock-Based Compensation Expense Related to Employee Stock Options

nized.

Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model

he fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumpt

Summary of Stock Option Activity and Weighted Average Exercise Prices

tivity

A summary of the Company’s stock option activity and weighted average exercise prices fol

Summary of Status of Nonvested Shares

A summary of the Company’s stock option activity and weighted average exercise prices follows:



	Stock Option Activity				Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
	Options (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Balance outstanding at December 31, 2015	9,139		$	11.05
Granted	8		5.55
Exercised	(3	)	3.94
Cancelled or expired	(556	)	11.02
Balance outstanding at March 31, 2016	8,588		$	11.05	6.23	$	1,408
Options vested and expected to vest	8,035		$	11.07	6.08	$	1,407
Options exercisable at March 31, 2016	5,494		$	10.99	5.23	$	1,406

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

The following table summarizes information about outstanding and vested stock options as of March 31, 2016:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number of Shares	Weighted-Average Exercise Price
$1.79 - $7.02	1,185,764	2.67	$	5.05	1,178,264	$	5.05
$7.04 - $9.24	934,654	6.79	8.93		558,654	8.88
$9.34 - $10.05	1,007,150	8.26	9.77		327,700	9.62
$10.09 - $10.09	3,500	4.89	10.09		3,500	10.09
$10.13 - $10.13	1,339,525	7.51	10.13		402,850	10.13
$10.31 - $12.32	972,575	6.48	11.21		703,850	11.48
$12.46 - $13.28	1,344,400	5.34	13.07		1,172,150	13.08
$13.34 - $16.00	869,225	7.34	14.22		426,488	14.58
$16.98 - $18.09	926,200	6.15	17.44		716,625	17.45
$18.24 - $18.24	5,000	6.33	18.24		3,750	18.24

	8,587,993	6.23	$	11.05	5,493,831	$	10.99

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the Company’s restricted stock units (“RSUs”) activity and weighted average exercise prices follows:



	Restricted Stock Unit Activity
	Number of Shares		Weighted Average Grant Date Fair Value (Per Share)		Aggregate Fair Value (in thousands)
Balance outstanding at December 31, 2015	1,201,500		$	10.31	$	—
Granted	—		—		—
Exercised	—		—		—
Forfeited	(41,000	)	10.31		—
Non-vested and outstanding at March 31, 2016	1,160,500		$	10.31	$	6,789
Expected to vest	852,514		$	10.31	$	4,987

Revenue Recognition (Details)	3 Months Ended
Revenue Recognition (Details)	Mar. 31, 2016
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Typical service agreements	12 months
Minimum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Typical service agreements termination notice period	30 days
Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Typical service agreements termination notice period	90 days

Net Loss Per Share (Narrative) (Details) - shares	3 Months Ended
Net Loss Per Share (Narrative) (Details) - shares	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Effect of option to purchase share of common stock on diluted net income per share	8,587,993	10,152,741

Net Loss Per Share (Reconciliation of Shares Used in Calculating Basic and Diluted Earnings Per Share) (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Basic	56,386,003	56,291,383
Effect of assumed exercised options	0	0
Diluted	56,386,003	56,291,383

Segment Information (Narrative) (Details)	3 Months Ended
Segment Information (Narrative) (Details)	Mar. 31, 2016 segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information (Summary of Financial Information by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue
Hosted services – Business	$ 45,959	$ 50,613
Hosted services – Consumer	3,766	3,696
Professional services	5,739	5,461
Revenue	55,464	59,770
Cost of revenue	15,864	16,254
Sales and marketing	22,676	24,294
Amortization of purchased intangibles	924	1,313
Unallocated corporate expenses	18,743	19,964
Operating income (loss)	(2,743)	(2,055)
Business [Member]
Revenue
Hosted services – Business	45,959	50,613
Professional services	5,739	5,461
Revenue	51,698	56,074
Cost of revenue	15,238	15,617
Sales and marketing	21,013	22,852
Amortization of purchased intangibles	924	1,313
Operating income (loss)	14,523	16,292
Consumer [Member]
Revenue
Hosted services – Consumer	3,766	3,696
Revenue	3,766	3,696
Cost of revenue	626	637
Sales and marketing	1,663	1,442
Operating income (loss)	1,477	1,617
Corporate [Member]
Revenue
Unallocated corporate expenses	18,743	19,964
Operating income (loss)	$ (18,743)	$ (19,964)

Segment Information (Revenues Attributable to Domestic and Foreign Operations) (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Segment Reporting Information [Line Items]

Revenue

$ 55,464

$ 59,770

United States [Member]

Segment Reporting Information [Line Items]

Revenue

37,790

41,442

Other Americas [Member]

Segment Reporting Information [Line Items]

Revenue

^[1]

1,546

2,703

Americas [Member]

Segment Reporting Information [Line Items]

Revenue

39,336

44,145

EMEA [Member]

Segment Reporting Information [Line Items]

Revenue

^[2]

11,606

11,784

APAC [Member]

Segment Reporting Information [Line Items]

Revenue

^[3]

$ 4,522

$ 3,841

[1]	Canada, Latin America and South America
[2]	Europe, the Middle East and Africa (“EMEA”)
[3]	Asia-Pacific (“APAC”)

Segment Information (Long-Lived Assets by Geographic Region) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total long-lived assets	$ 131,396	$ 131,812
United States [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	97,038	96,362
Israel [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	15,923	16,393
Australia [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	8,523	8,290
Netherlands [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	7,366	8,285
United Kingdom [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	$ 2,546	$ 2,482

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(14))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(10))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(12))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(15))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(11))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(13))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(17))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(16))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

+ Details

Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate amortization expense for intangible assets	$ 1,621	$ 2,152

Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 80,322
Ending Balance	80,409
Business [Member]
Goodwill [Line Items]
Beginning Balance	72,298
Ending Balance	72,385
Consumer [Member]
Goodwill [Line Items]
Beginning Balance	8,024
Ending Balance	8,024
Synchronite, LLC [Member]
Goodwill [Line Items]
Goodwill, Translation Adjustments	87
Ending Balance	2,700
Synchronite, LLC [Member] \| Business [Member]
Goodwill [Line Items]
Goodwill, Translation Adjustments	$ 87

Goodwill and Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 50,534	$ 50,498
Accumulated Amortization	(27,500)		$ (25,879)
Intangibles, net	23,034		24,619
Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	28,063	28,005
Accumulated Amortization	(16,855)		(15,723)
Intangibles, net	$ 11,208		$ 12,282
Weighted Average Amortization Period	4 years 8 months 18 days		4 years 8 months 18 days
Customer relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 16,021	16,008
Accumulated Amortization	(7,196)		$ (6,873)
Intangibles, net	$ 8,825		$ 9,135
Weighted Average Amortization Period	5 years 9 months 18 days		5 years 9 months 18 days
Trade names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,299	1,287
Accumulated Amortization	(1,269)		$ (1,250)
Intangibles, net	$ 30		$ 37
Weighted Average Amortization Period	2 years 7 months 12 days		2 years 7 months 12 days
Non-compete agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,449	1,446
Accumulated Amortization	(1,008)		$ (936)
Intangibles, net	$ 441		$ 510
Weighted Average Amortization Period	1 year 8 months 12 days		1 year 8 months 12 days
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,440	3,440
Accumulated Amortization	(937)		$ (848)
Intangibles, net	$ 2,503		$ 2,592
Weighted Average Amortization Period	9 years 3 months 18 days		9 years 3 months 18 days
Other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 262	$ 312
Accumulated Amortization	(235)		$ (249)
Intangibles, net	$ 27		$ 63
Weighted Average Amortization Period	3 years		3 years

Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 5,018
2016	4,917
2017	2,813
2018	2,591
2019	2,401
Thereafter	5,294
Total	$ 23,034

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 85,271	$ 81,392
Less: accumulated depreciation	(60,430)	(57,263)
Total	24,841	24,129
Computer Equipment And Software [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	71,538	67,631
Furniture, Equipment and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 13,733	$ 13,761

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Payroll and other employee related costs	$ 10,267	$ 14,107
Professional services and consulting and other vendor fees	11,113	12,372
Sales commissions	1,862	4,522
Contingent earnout (see Notes 8 and 9)	211	377
Other	2,524	2,918
Total	$ 25,977	$ 34,296

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands					3 Months Ended	12 Months Ended
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	Nov. 08, 2014	Nov. 07, 2014	Jun. 02, 2014	Nov. 09, 2012	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill					$ 80,409	$ 80,322
Engage Pty Ltd. [Member]
Business Acquisition [Line Items]
Business acquisition, acquisition date				Nov. 09, 2012
Total consideration transferred				$ 10,600
Acquisition costs incurred to acquire entity							$ 500
Assets acquired liabilities assumed, net				800
Potential earn-out consideration				$ 1,700
Change in fair value of contingent consideration					700
Synchronite, LLC [Member]
Business Acquisition [Line Items]
Business acquisition, acquisition date			Jun. 02, 2014
Total consideration transferred			$ 4,100
Acquisition costs incurred to acquire entity					400
Assets acquired liabilities assumed, net			45
Potential earn-out consideration			$ 1,800		200
Goodwill					2,700
Intangible assets					1,500
Payments for previous acquisition						1,600
Contact At Once! [Member]
Business Acquisition [Line Items]
Business acquisition, acquisition date		Nov. 07, 2014
Total consideration transferred	$ 67,000
Potential earn-out consideration		$ 4,200
Change in fair value of contingent consideration					$ 3,200
Goodwill		45,100
Intangible assets		20,400
Payments for previous acquisition						$ 200
Cash payment		42,800
Consideration transferred, shares		$ 20,000

Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 4,482	$ 4,161
Liabilities, Fair Value Disclosure	210	687
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	3,323	4,059
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	1,159
Liabilities, Fair Value Disclosure	0	310
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure	210	377
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	3,323	4,059
Money Market Funds [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	3,323	4,059
Foreign Exchange Forward [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	1,159
Foreign Exchange Forward [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	1,159	102
Liabilities, Fair Value Disclosure		310
Contingent Earn-Out [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure	210	377
Contingent Earn-Out [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure	$ 210	$ 377

Fair Value Measurements Level 3 Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Recurring [Member] \| Level 3 [Member]
Business Combination, Contingent Consideration Arrangements, Change In Contingent Consideration Liability [Roll Forward]
Balance, Beginning of Period	$ 377	$ 6,940
Change in fair value of contingent consideration	0	(3,680)
Cash payment	(167)	0
Balance, End of Period	210	377
Synchronite, LLC [Member]
Business Combination, Contingent Consideration Arrangements, Change In Contingent Consideration Liability [Roll Forward]
Balance, End of Period	200
Contact At Once! [Member]
Business Combination, Contingent Consideration Arrangements, Change In Contingent Consideration Liability [Roll Forward]
Change in fair value of contingent consideration	(3,200)
Contact At Once! [Member] \| Recurring [Member] \| Level 3 [Member]
Business Combination, Contingent Consideration Arrangements, Change In Contingent Consideration Liability [Roll Forward]
Change in fair value of contingent consideration	$ 0	$ 2,883

Fair Value Measurements Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative [Line Items]
Cash held as collateral	$ 3,969		$ 5,409
Foreign Currency Derivatives Contracts [Member]
Derivative [Line Items]
Notional amount	38,802		43,431
Fair value	1,159		(208)
Prepaid Expenses and Other Current Assets [Member] \| Foreign Currency Derivatives Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative assets	1,159		102
Accrued Expenses And Other Liabilities [Member] \| Foreign Currency Derivatives Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative liabilities	0		$ 310
Other Expense [Member] \| Foreign Currency Derivatives Contracts [Member]
Derivative [Line Items]
Gain (losses) on derivative instruments	$ 481	$ (7)

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Rental expense for operating leases	$ 2,700,000	$ 2,500,000
Defined benefit plan employer matching contribution on first five percent of employee compensation	50.00%
Percentage of employees' eligible compensation for employer matching contribution	5.00%
Defined benefit plan employer contribution limit	$ 6,000
Defined benefit plan employer contribution vesting period	5 years
Defined benefit plan employer contribution	$ 400,000
Letter Of Credit For Office Space [Member] \| Line of Credit [Member]
Line of Credit Facility [Line Items]
Letter of credit outstanding	1,900,000
Letter Of Credit For Security Deposit [Member] \| Line of Credit [Member]
Line of Credit Facility [Line Items]
Letter of credit outstanding	$ 100,000

Stockholders' Equity (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
Stockholders' Equity (Narrative) (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Feb. 02, 2016	Jul. 23, 2014	Mar. 13, 2014	Dec. 10, 2012	Jun. 30, 2010
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common stock, shares authorized	100,000,000		100,000,000
Common stock, shares issued (in shares)	57,430,525		57,374,907
Common stock, shares outstanding (in shares)	54,584,170		54,484,760
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, shares authorized	5,000,000		5,000,000
Preferred stock, shares issued (in shares)	0		0
Preferred stock, shares outstanding (in shares)	0		0
Preferred stock, par value (in dollars per share)	$ 0.001		$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased	637,827
Granted	$ 2.34	$ 4.64
Dividend yield	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years	5 years
Share-based Compensation Arrangement By Share-based Payment Award, Fair Value Assumptions, Period Used To Determine Volatility	5 years
Stock option term	10 years
Total value of stock options exercised	$ 0
Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested share-based compensation arrangements	$ 11,600,000
Weighted average recognition period of unrecognized compensation cost	1 year 10 months 28 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested share-based compensation arrangements	$ 9,400,000
Weighted average recognition period of unrecognized compensation cost	3 years 2 months 12 days
Vesting period			4 years
1998 Plan [Member] \| Incentive Stock Option [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	5,850,000
2000 Plan [Member] \| Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares of common stock available for issuance	4,150,000
1998 and 2000 Plan [Member] \| Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	10,000,000
2009 Plan [Member] \| Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	4,323,000
Increase in number of shares of common stock available for issuance	6,000,000
2010 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	332,000							1,000,000
2009 Plan [Member] \| 2009 Plan [Member] \| Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	23,817,744
Increase in number of shares of common stock available for issuance	4,250,000
2012 Stock Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount				$ 14,000,000.0	$ 50,000,000.0	$ 40,000,000.0	$ 30,000,000.0
Stock repurchase program, remaining authorized repurchase amount	$ 16,900,000

Stockholders' Equity (Summary of Stock-Based Compensation Expense Related to Employee Stock Options) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,319	$ 2,794
Cost of revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	10	328
Sales and marketing expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	630	595
Product development expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	827	939
General and administrative expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 852	$ 932

Stockholders' Equity (Weighted Average Assumptions of Fair Value Options Using Black-Scholes Option-Pricing Model) (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.25%	1.30%
Expected life (in years)	5 years	5 years
Historical volatility	47.30%	49.70%

Stockholders' Equity (Summary of Stock Option Activity and Weighted Average Exercise Prices) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Granted	$ 2.34	$ 4.64
Options
Options outstanding at December 31, 2014	9,139.356
Granted	7.5
Options exercised	(3)
Options cancelled	(555.863)
Options outstanding at June 30, 2015	8,588
Options vested and expected to vest at June 30, 2015	8,035.253
Options exercisable at June 30, 2015	5,493.831
Weighted Average Exercise Price
Options outstanding at December 31, 2013	$ 11.05
Options granted	5.55
Options exercised	3.94
Options cancelled	11.02
Options outstanding at June 30, 2015	11.05
Options vested and expected to vest at June 30, 2015	11.07
Options exercisable at June 30, 2015	$ 10.99
Weighted Average Remaining Contractual Term (in years)
Options outstanding at June 30, 2015	6 years 2 months 22 days
Options vested and expected to vest at June 30, 2015	6 years 29 days
Options exercisable at June 30, 2015	5 years 2 months 23 days
Aggregate Intrinsic Value
Options outstanding at June 30, 2015	$ 1,408
Options vested and expected to vest at June 30, 2015	1,407
Options exercisable at June 30, 2015	$ 1,406

Stockholders' Equity (Summary of Options by Range of Exercise Prices) (Details)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number of shares outstanding \| shares	8,587,993
Options outstanding, Weighted-average remaining contractual life	6 years 2 months 23 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 11.05
Options exercisable, Number of shares \| shares	5,493,831
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 10.99
$1.79 - $7.02 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	1.79
Exercise price range, maximum	$ 7.02
Options outstanding, Number of shares outstanding \| shares	1,185,764
Options outstanding, Weighted-average remaining contractual life	2 years 8 months 1 day
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 5.05
Options exercisable, Number of shares \| shares	1,178,264
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 5.05
$7.04 - $9.24 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	7.04
Exercise price range, maximum	$ 9.24
Options outstanding, Number of shares outstanding \| shares	934,654
Options outstanding, Weighted-average remaining contractual life	6 years 9 months 15 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 8.93
Options exercisable, Number of shares \| shares	558,654
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 8.88
$9.34 - $10.05 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	9.34
Exercise price range, maximum	$ 10.05
Options outstanding, Number of shares outstanding \| shares	1,007,150
Options outstanding, Weighted-average remaining contractual life	8 years 3 months 4 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 9.77
Options exercisable, Number of shares \| shares	327,700
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 9.62
$10.09 - $10.09 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	10.09
Exercise price range, maximum	$ 10.09
Options outstanding, Number of shares outstanding \| shares	3,500
Options outstanding, Weighted-average remaining contractual life	4 years 10 months 21 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 10.09
Options exercisable, Number of shares \| shares	3,500
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 10.09
$10.13 - $10.13 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	10.13
Exercise price range, maximum	$ 10.13
Options outstanding, Number of shares outstanding \| shares	1,339,525
Options outstanding, Weighted-average remaining contractual life	7 years 6 months 4 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 10.13
Options exercisable, Number of shares \| shares	402,850
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 10.13
$10.31 - $12.32 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	10.31
Exercise price range, maximum	$ 12.32
Options outstanding, Number of shares outstanding \| shares	972,575
Options outstanding, Weighted-average remaining contractual life	6 years 5 months 23 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 11.21
Options exercisable, Number of shares \| shares	703,850
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 11.48
$12.46 - $13.28 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	12.46
Exercise price range, maximum	$ 13.28
Options outstanding, Number of shares outstanding \| shares	1,344,400
Options outstanding, Weighted-average remaining contractual life	5 years 4 months 2 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 13.07
Options exercisable, Number of shares \| shares	1,172,150
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 13.08
$13.34 - $16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	13.34
Exercise price range, maximum	$ 16.00
Options outstanding, Number of shares outstanding \| shares	869,225
Options outstanding, Weighted-average remaining contractual life	7 years 4 months 2 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 14.22
Options exercisable, Number of shares \| shares	426,488
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 14.58
$16.98 - $18.09 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	16.98
Exercise price range, maximum	$ 18.09
Options outstanding, Number of shares outstanding \| shares	926,200
Options outstanding, Weighted-average remaining contractual life	6 years 1 month 24 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 17.44
Options exercisable, Number of shares \| shares	716,625
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 17.45
$18.24 - $18.24 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, minimum	18.24
Exercise price range, maximum	$ 18.24
Options outstanding, Number of shares outstanding \| shares	5,000
Options outstanding, Weighted-average remaining contractual life	6 years 3 months 29 days
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 18.24
Options exercisable, Number of shares \| shares	3,750
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 18.24

Stockholders' Equity Summary of Restricted Stock Unit Activity and Weighted Average Exercise Price (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Number of Shares
Balance outstanding at December 31, 2015	1,201,500
Granted	0
Exercised	0
Forfeited	(41,000)
Non-vested and outstanding at March 31, 2016	1,160,500
Expected to vest	852,514
Weighted Average Grant Date Fair Value (usd per share)
Non-vested and outstanding at March 31, 2016	$ 10.31	$ 10.31
Expected to vest	$ 10.31
Aggregate Fair Value (in thousands)
Non-vested and outstanding at March 31, 2016	$ 6,789
Expected to vest	$ 4,987