View Filing Data

^[1],[2],[3]

58,205

63,161

70,310

General and administrative

^[2],[3]

90,905

89,529

94,728

^[2],[3]

43,124

43,046

37,171

Product development

^[2],[3]

40,034

40,198

38,974

Restructuring costs

2,594

2,369

3,384

1,840

3,885

4,873

Total costs and expenses

236,702

242,188

249,440

Other income (expense), net

(17,826)

(19,409)

(10,428)

136

(530)

(202)

Loss before provision for income taxes

(17,690)

(19,939)

(10,630)

Provision for income taxes

501

5,934

15,814

Net loss

$ (18,191)

$ (25,873)

$ (26,444)

Net loss per share of common stock:

Basic (in dollars per share)

$ (0.32)

$ (0.46)

$ (0.47)

Diluted (in dollars per share)

$ (0.32)

$ (0.46)

$ (0.47)

Weighted-average shares used to compute net loss income per share:

Basic (in shares)

56,358,017

56,063,777

56,452,408

Diluted (in shares)

56,358,017

56,063,777

56,452,408

$ 8,944

$ 9,736

$ 11,814

Cost Of Revenue [Member]

448

429

1,396

7,150

8,234

9,091

Sales and Marketing [Member]

2,842

2,788

3,167

2,500

2,515

3,088

General and Administrative [Member]

1,625

1,315

1,232

3,691

3,304

3,692

Product Development [Member]

1,226

1,418

893

2,305

3,488

3,638

Description of Business and Summary of Significant Accounting Policies

$ 2,357

$ 1,044

$ 898

[1]	Amounts include amortization of purchased intangibles, as follows: Cost of revenue $2,842, $2,788, and $3,167 years ended December 31, 2017, 2016, and 2015, respectively.
[2]	Amounts include depreciation expense, as follows: Cost of revenue $7,150, $8,234, and $9,091 years ended December 31, 2017, 2016 and 2015, respectively. Sales and marketing $1,625, $1,315 and $1,232 for the years ended December 31, 2017, 2016 and 2015, respectively. General and administrative $1,226, $1,418 and $893 for the years ended December 31, 2017, 2016 and 2015, respectively. and Product development $2,357, $1,044 and $898 for the years ended December 31, 2017, 2016 and 2015, respectively.
[3]	Amounts include stock compensation expense, as follows: Cost of revenue $448, $429, and $1,396 years ended December 31, 2017, 2016 and 2015, respectively. Sales and marketing $2,500, $2,515 and $3,088 for the years ended December 31, 2017, 2016 and 2015, respectively. General and administrative $3,691, $3,304 and $3,692 for the years ended December 31, 2017, 2016 and 2015, respectively. and Product development $2,305, $3,488 and $3,638 for the years ended December 31, 2017, 2016 and 2015, respectively.

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (18,191)	$ (25,873)	$ (26,444)
Foreign currency translation adjustment	3,625	(3,624)	(1,398)
Comprehensive loss	$ (14,566)	$ (29,497)	$ (27,842)

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning Balance (in shares) at Dec. 31, 2014		56,701,331	(544,396)
Beginning Balance at Dec. 31, 2014	$ 180,337	$ 57	$ (1)	$ 274,046	$ (92,627)	$ (1,138)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of stock options (in shares)	646,000	645,531
Common stock issued upon exercise of stock options	$ 2,904			2,904
Stock-based compensation	11,814			11,814
Common stock issued under Employee Stock Purchase Plan (in shares)		170,857
Common stock issued under Employee Stock Purchase Plan	1,497			1,497
Common stock repurchase (in shares)		(142,812)	(277,360)
Common stock repurchase	(4,202)		$ 0	(4,202)
Tax benefit from exercise of employee stock options	797			797
Net loss	(26,444)				(26,444)
Other comprehensive income (loss)	(1,398)					(1,398)
Ending Balance (in shares) at Dec. 31, 2015		57,374,907	(821,756)
Ending Balance at Dec. 31, 2015	$ 165,305	$ 57	$ (1)	286,856	(119,071)	(2,536)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of stock options (in shares)	325,000	324,502
Common stock issued upon exercise of stock options	$ 1,806			1,806
Common stock issued upon vesting of restricted stock units (in shares)		393,504
Common stock issued upon vesting of restricted stock units	1	$ 1
Stock-based compensation	9,736			9,736
Common stock issued under Employee Stock Purchase Plan (in shares)		183,534
Common stock issued under Employee Stock Purchase Plan	1,092			1,092
Common stock repurchase (in shares)			(1,518,349)
Common stock repurchase	(9,967)		$ (1)	(9,966)
Net loss	(25,873)				(25,873)
Other comprehensive income (loss)	(3,624)					(3,624)
Ending Balance (in shares) at Dec. 31, 2016		58,276,447	(2,340,105)
Ending Balance at Dec. 31, 2016	$ 138,476	$ 58	$ (2)	289,524	(144,944)	(6,160)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of stock options (in shares)	854,000	853,885
Common stock issued upon exercise of stock options	$ 7,491	$ 1		7,490
Common stock issued upon vesting of restricted stock units (in shares)		363,429
Common stock issued upon vesting of restricted stock units	1	$ 1
Stock-based compensation	8,944			8,944
Common stock issued under Employee Stock Purchase Plan (in shares)		170,208
Common stock issued under Employee Stock Purchase Plan	1,459			1,459
Common stock repurchase (in shares)			(247,430)
Common stock repurchase	(1,742)		$ (1)	(1,741)
Net loss	(18,191)				(18,191)
Other comprehensive income (loss)	3,625					3,625
Ending Balance (in shares) at Dec. 31, 2017		59,663,969	(2,587,535)
Ending Balance at Dec. 31, 2017	$ 140,063	$ 60	$ (3)	$ 305,676	$ (163,135)	$ (2,535)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES:
Net loss	$ (18,191)	$ (25,873)	$ (26,444)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense	8,944	9,736	11,814
Depreciation	12,358	12,011	12,114
Impairment on investments	0	2,600	0
Amortization of tenant allowance	(166)	(180)	0
Amortization of purchased intangibles	4,682	6,673	8,040
Change in fair value of contingent consideration	0	0	(3,680)
Provision for doubtful accounts, net	1,895	1,831	2,361
Deferred income taxes	(2,397)	1,852	14,456
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(7,998)	(3,265)	(1,368)
Prepaid expenses and other current assets	(1,867)	3,845	724
Other assets	(38)	196	130
Accounts payable	(2,743)	185	(1,916)
Accrued expenses and other current liabilities	7,838	2,982	1,193
Deferred revenue	8,418	13,283	1,869
Other liabilities	(445)	(1,316)	2,538
Net cash provided by operating activities	10,290	24,560	21,831
INVESTING ACTIVITIES:
Purchases of property and equipment, including capitalized software	(17,390)	(12,344)	(12,980)
Payments for acquisitions and intangible assets, net of cash acquired	(441)	(555)	(150)
Cash held as collateral	2,511	1,447	(5,409)
Net cash used in investing activities	(15,320)	(11,452)	(18,539)
FINANCING ACTIVITIES:
Repurchase of common stock	(1,742)	(9,967)	(4,202)
Excess tax benefit from the exercise of employee stock options	0	0	797
Payments related to contingent consideration	0	0	(2,883)
Proceeds from issuance of common stock in connection with the exercise of options	8,951	2,899	4,401
Net cash provided by (used in) financing activities	7,209	(7,068)	(1,887)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	3,047	(3,954)	(1,974)
CHANGE IN CASH AND CASH EQUIVALENTS	5,226	2,086	(569)
CASH AND CASH EQUIVALENTS - Beginning of the year	50,889	48,803	49,372
CASH AND CASH EQUIVALENTS - End of the year	56,115	50,889	48,803
SUPPLEMENTAL DISCLOSURE OF OTHER CASH FLOW INFORMATION:
Cash paid for income taxes	1,551	424	1,882
SUPPLEMENTAL DISCLOSURE OF NON CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property and equipment recorded in accounts payable	936	2,497	1,926
Leasehold improvements funded by landlord	$ 0	$ 1,440	$ 326

Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

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 an U.S. office in Alpharetta (Georgia) and Mountain View (CA), and international offices in Amsterdam, Berlin, London, Mannheim, Melbourne, Milan, Paris, Ra'anana (Israel), Reading (UK), Tel Aviv (Israel), and Tokyo.

LivePerson provides mobile and online business messaging solutions that power digital communication between brands and consumers. LiveEngage, the Company’s enterprise-class, cloud-based platform, enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging, while leveraging bots and artificial intelligence (AI) to increase efficiency. As consumers have reoriented their digital lives around the smartphone, messaging apps have become their preferred communication channel to connect with each other. LivePerson allows brands to align with this new consumer preference, and deploy messaging at scale for customer care, marketing, and sales, instead of requiring that consumers use email or call a 1-800 number.

LiveEngage was designed to securely deploy messaging, coupled with bots and AI, at scale for brands with tens of millions of customers and many thousands of customer care agents. LiveEngage powers conversations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop web browsers, short message services (SMS), social media and third-party consumer messaging platforms. Brands can also use LiveEngage to message consumers when they dial a 1-800 number instead of having them navigate interactive voice response systems (IVR) and wait on hold. The platform seamlessly integrates with third-party bots, enabling brands to manage both AI- based agents and human agents from a single console.

LivePerson optimizes campaign outcomes for sales and service transaction by combining website visitor data with other historical, behavioral, and operational information to develop insights into each step of a consumer’s journey. 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 real-time chat with individual consumers (“Users”).

Principles of Consolidation

The consolidated financial statements reflect the operations of LivePerson and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassification

For comparability, certain 2015 and 2016 amounts have been reclassified where appropriate, to conform to the financial presentation in 2017.

Use of Estimates

The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include revenue recognition, stock-based compensation, accounts receivable, the valuation of goodwill and intangible assets, income taxes and legal contingencies. Actual results could differ from those estimates.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable which approximate fair value at December 31, 2017 because of the short-term nature of these instruments. The Company invests its cash and cash equivalents with financial institutions that it believes are of high quality, and the Company performs periodic evaluations of these instruments and the relative credit standings of the institutions with which it invests. At certain times, the Company’s cash balances with any one financial institution may exceed Federal Deposit Insurance Corporation insurance limits. The Company believes it mitigates its risk by depositing its cash balances with high credit, quality financial institutions.

The Company performs ongoing credit evaluations of its customers’ financial condition (except for customers who purchase the LivePerson services by credit card via Internet download) and has established an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Concentration of credit risk is limited due to the Company’s large number of customers. No single customer accounted for or exceeded 10% of revenue in 2017, 2016 or 2015. No single customer accounted for or exceeded 10% of the Company's total accounts receivable in 2017 and 2016.

Foreign Currency Translation

The Company's operations are conducted in various countries around the world and the financial statements of its foreign subsidiaries are reported in the applicable foreign currencies (functional currencies). Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the Company's consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. Foreign exchange transaction gain or losses are included in Other Income, net in the accompanying consolidated statements of operations.

Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of 3 months or less when acquired to be cash equivalents. Cash equivalents, which primarily consist of money market funds, are recorded at cost, which approximates fair value.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. The activity in the allowance for doubtful accounts is as follows (amounts in thousands):



Year Ended December 31,	Beginning Balance		Additions Charged to Costs and Expenses		Deductions / Write-Offs			Ending Balance
2015	$	1,275	$	2,361	$	(2,452	)	$	1,184
2016	$	1,184	$	1,831	$	(1,283	)	$	1,732
2017	$	1,732	$	1,895	$	(2,309	)	$	1,318

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, generally three to five years for equipment and software. Leasehold improvements are depreciated using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Depreciation expense, which includes depreciation of internal use software totaled $12.4 million, $12.0 million, and $12.1 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Internal-Use Software Development Costs

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software, the Company capitalizes its costs to develop its internal use software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. These costs are included in property and equipment in the Company's consolidated balance sheets and are amortized on a straight-line basis over the estimated useful life of the related asset, which approximates three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred.

The Company capitalized internal-use software costs of $8.3 million, $3.7 million, and $2.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Goodwill and Intangible Assets

The Company records goodwill when the consideration paid in a business combination exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but instead is required to be tested for impairment annually and whenever events or changes in circumstances indicate that the carrying value of goodwill may exceed its fair value.

The Company performs testing for impairment of goodwill in its third quarter, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s reporting units below their carrying amounts. A qualitative assessment is first made to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. This initial qualitative assessment includes, among other things, consideration of: (i) market capitalization of the Company, (ii) past, current and projected future earnings and equity; (iii) recent trends and market conditions; and (iv) valuation metrics involving similar companies that are publicly-traded and acquisitions of similar companies, if available. If this initial qualitative assessment indicates that it is more likely than not that impairment exists, a second analysis will be performed, involving a comparison between the estimated fair values of the Company’s reporting unit with its respective carrying amount including goodwill. If the carrying value exceeds estimated fair value, there is an indication of potential impairment, and a third analysis is performed to measure the amount of impairment. The third analysis involves calculating an implied fair value of goodwill by measuring the excess of the estimated fair value of the reporting unit over the aggregate estimated fair values of the individual assets less liabilities. If the carrying value of goodwill exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess.

Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 360-10-35, “Accounting for Impairment or Disposal of Long-Lived Assets.”

The Company evaluates for goodwill impairment annually at September 30^th and at the end of the third quarter of 2017, 2016, and 2015, the Company determined that it was not more-likely that the fair value of the reporting units is less than their carrying amount. Accordingly, the Company did not perform the two-step goodwill impairment test on both the Company's Business and Consumer segments. The Company assessed qualitative facts while summarizing the totality of events and circumstances and considered the extent to which adverse events or circumstances could affect the reporting unit's fair value as well as the consideration of positive and mitigating events and circumstances that would affect the determination of whether it was more likely than not that the fair value of a reporting unit is less than its carrying amount.

Impairment of Long-Lived Assets

In accordance with ASC 360-10, “Accounting for the Impairment or Disposal of Long-lived Assets,” long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the year ended December 31, 2016, the Company determined certain long-lived assets related to the legacy platform and purchased intangibles of technology licenses to be impaired. The net book value of these assets, of approximately $0.2 million and $2.6 million, was included in restructuring costs and general and administrative expenses, respectively.

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, quarterly or annual 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 (“SMBs”), 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 12 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 of services and customer acceptance. This guidance 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 our 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.

Advertising Costs

The Company expenses the cost of advertising and promoting its services as incurred in the sales and marketing expense on the consolidated statement of operations. Such costs totaled approximately $15.8 million, $10.9 million, and $10.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Stock-based Compensation

In accordance with ASC Topic 718 -10, "Stock Compensation", the Company measures stock based awards at fair value and recognizes compensation expense for all share-based payment awards made to its employees and directors, including employee stock options.

The Company estimates the fair value of stock options granted using the Black-Scholes valuation model. This model requires the Company to make estimates and assumptions including, among other things, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of its common stock price and the number of options that will be forfeited prior to vesting. The fair value is then recognized on a straight line basis over the requisite service period of the award, which is generally four years. Changes in these estimates and assumptions can materially affect the determination of the fair value of the stock-based compensation and consequently, the related amount recognized in the consolidated statement of operations.

Deferred Rent

The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized for financial reporting purposes and the actual payments made in accordance with the lease agreement is recognized as deferred rent liability included in other liabilities on the Company’s consolidated balance sheets.

Income Taxes

Comprehensive Loss

In accordance with ASC 220, "Comprehensive Income", the Company reports by major components and as a single total, the change in its net assets during the period from non-owner sources. Comprehensive income (loss) consists of net income (loss), and accumulated other comprehensive income (loss), which includes certain changes in equity that are excluded from net income (loss). The Company’s comprehensive loss for all periods presented is related to the effect of foreign currency translation.

Recently Issued Accounting Standards

In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-02 "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). This new standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The amendments in ASU 2018-02 affects any entity that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The Company is currently evaluating the impact of this updated standard, but does not believe this update will have a significant impact on its consolidated financial statements.

In August 2017, the FASB issued Accounting Standards Update No. 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). This new standard refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes, for investors and analysts. ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, for public companies. Early adoption is permitted in any interim period or fiscal years before the effective date of the standard. The Company does not expect the adoption of ASU 2017-12 to have a material effect on its financial position, results of operations or cash flows.

In May 2017, FASB issued Accounting Standards Update No. 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" (“ASU 2017-09”). This update clarifies and reduces both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, to a change to the terms and conditions of a share-based payment award. ASU 2017-09 is effective for financial statements issued for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of this updated standard, but does not believe this update will have a significant impact on its consolidated financial statements.

In January 2017, FASB issued Accounting Standards Update No. 2017-04, "Intangibles —Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" (“ASU 2017-04”). This update addresses concerns over the cost and complexity of the two-step goodwill impairment test. The amendments in this update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. ASU 2017-04 is effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of ASU 2017-04 to have a material effect on its financial position, results of operations or cash flows.

In January 2017, the FASB issued Accounting Standards Update No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" (“ASU 2017-01”). This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. The amendments in this update provide a screen to determine when a set is not a business. If the screen is not met, it (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. ASU 2017-01 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 adoption of ASU 2017-01 to have a material effect on its financial position, results of operations or cash flows.

In March 2016, the 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. The Company adopted this ASU as of the beginning of the first quarter of 2017 and has elected to continue to estimate expected forfeitures over the course of a vesting period. Further, the ASU eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. The adoption of ASU 2016-09 did not have any material impact on the Company’s financial statements.

In February 2016, the 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 assessing the provisions of this guidance and evaluating the timing and impact the guidance will have on its consolidated financial statements and related disclosures. The Company is also in the process of aggregating lease documentation for review. The adoption of this ASU primarily impacts the balance sheet through the recognition of a right-of-use asset and a lease liability for all leases with terms in excess of 12 months. This guidance is effective January 1, 2019 using a modified retrospective transition approach with early adoption permitted.

In May 2014, the FASB issued ASC 2014-09, Revenue from Contracts with Customers (“Topic 606”). The purpose of Update No. 2014-09 is to provide enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies using U.S. GAAP and International Financial Reporting Standards. The core principle requires entities to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration an entity expects to be entitled to in exchange for those goods or services. Topic 606, becomes effective for annual periods beginning after December 15, 2017. The Company currently plans to adopt the standard using the “modified retrospective method.” Under that method, the Company will apply the rules to contracts that are not completed as of January 1, 2018, and recognize the cumulative effect of the initial adoption as an adjustment to the opening balance of retained earnings.

The Company will adopt the guidance relating to Topic 606 using the modified retrospective approach effective January 1, 2018 and will expect no adjustment to retained earnings. The Company will record revenue over time as control is transferred to the customer, due to the stand-ready nature of our services provided. The Company will adopt the standard through the application of the portfolio approach. To assess the amended guidance and formulate an implementation plan, the Company has read the amended guidance, attended trainings and consulted with external accounting professionals. Collaboratively the Company has identified all major contract types and assessed the potential impact of the amended guidance. The Company has selected a sample of customer contracts to assess under the guidance of the new standard that were characteristically representative of each revenue stream. The Company then made an additional sample of customer contracts based on size to validate its analysis and conclusions. The Company does not expect to have any significant changes to the timing of revenue recognition as a result of adopting the new standard. In assessing the impact of adopting the guidance on disclosures, the Company anticipates to have additional disclosures regarding the disaggregation of revenues by business segment, the presentation and roll forward of various contract account balances, changes to its accounting policy, as well as other significant judgments and disclosures regarding performance obligations and the implementation of the amended guidance.

Net Loss per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Net 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 year ended December 31, 2017 does not include the effect of options to purchase 8,831,798 shares of common stock awards as the effect of their inclusion is anti-dilutive. Diluted net income per common share for the year ended December 31, 2016 does not include the effect of options to purchase 8,956,932 shares of common stock awards as the effect of their inclusion is anti-dilutive. Diluted net income per common share for the year ended December 31, 2015 does not include the effect of options to purchase 10,345,356 shares of common stock awards as the effect of their inclusion is anti-dilutive.

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



	Year Ended December 31,
	2017	2016	2015
Basic	56,358,017	56,063,777	56,452,408
Effect of assumed exercised options	—	—	—
Diluted	56,358,017	56,063,777	56,452,408

Segment Information

12 Months Ended

Dec. 31, 2017

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. The chief operating decision-maker 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 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 and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no intersegment sales. Additionally, assets are not available for review by segment and therefore no segment asset disclosure is presented.

Summarized financial information by segment for the year ended December 31, 2017, 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	$	178,686	$	—	$	—		$	178,686
Hosted services – Consumer	—		17,450		—			17,450
Professional services	22,740		—		—			22,740
Total revenue	201,426		17,450		—			218,876
Cost of revenue	54,600		3,605		—			58,205
Sales and marketing	82,420		8,485		—			90,905
Amortization of purchased intangibles	1,840		—		—			1,840
Unallocated corporate expenses	—		—		85,752			85,752
Operating income (loss)	$	62,566	$	5,360	$	(85,752	)	$	(17,826	)

Summarized financial information by segment for the year ended December 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	$	183,551	$	—	$	—		$	183,551
Hosted services – Consumer	—		16,258		—			16,258
Professional services	22,970		—		—			22,970
Total revenue	206,521		16,258		—			222,779
Cost of revenue	60,352		2,809		—			63,161
Sales and marketing	82,063		7,466		—			89,529
Amortization of purchased intangibles	3,885		—		—			3,885
Unallocated corporate expenses	—		—		85,613			85,613
Operating income (loss)	$	60,221	$	5,983	$	(85,613	)	$	(19,409	)

Summarized financial information by segment for the year ended December 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	$	200,576	$	—	$	—		$	200,576
Hosted services – Consumer	—		15,209		—			15,209
Professional services	23,227		—		—			23,227
Total revenue	223,803		15,209		—			239,012
Cost of revenue	67,901		2,409		—			70,310
Sales and marketing	87,975		6,753		—			94,728
Amortization of purchased intangibles	4,873		—		—			4,873
Unallocated corporate expenses	—		—		79,529			79,529
Operating income (loss)	$	63,054	$	6,047	$	(79,529	)	$	(10,428	)

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 years ended (amounts in thousands):



	December 31,
	2017		2016		2015
United States	$	137,433	$	146,733	$	159,539
Other Americas ⁽¹⁾	6,987		6,818		12,296
Total Americas	144,420		153,551		171,835
EMEA ^{(2) (4)}	56,310		50,511		51,548
APAC ⁽³⁾	18,146		18,717		15,629
Total revenue	$	218,876	$	222,779	$	239,012

⁽¹⁾ Canada, Latin America and South America

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

⁽³⁾ Asia-Pacific (“APAC”)

⁽⁴⁾Includes revenue from the United Kingdom of $38.9 million, $35.3 million, and $38.2 million for the twelve months ended December 31, 2017, 2016, and 2015, respectively.

The following table presents the Company's long-lived assets by geographic region for the years ended (amounts in thousands):



	December 31,
	2017		2016
United States	$	95,716	$	93,845
Israel	13,079		13,940
Australia	9,504		9,496
Netherlands	8,363		7,495
Other ⁽¹⁾	3,293		2,711
Total long-lived assets	$	129,955	$	127,487

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

Property and Equipment

12 Months Ended

Dec. 31, 2017

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):



	December 31,
	2017			2016
Computer equipment and software	$	100,815		$	82,477
Furniture, equipment and building improvements	15,355			15,027
	116,170			97,504
Less: accumulated depreciation	(81,465		)	(69,107		)
Total	$	34,705		$	28,397

In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. This review indicated that the actual lives of certain co-location assets were longer than the estimated useful lives used for depreciation purposes in the Company's financial statements. As a result, effective August 1, 2016, the Company changed its estimates of the useful lives of its co-location assets to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of the co-location assets that previously averaged three years were increased to an average of four years. The effect of this change in estimate was to reduce depreciation expense and net loss by $1.4 million and $1.0 million and decrease basic and diluted loss per share by $0.02 for the twelve months ended December 31, 2017 and December 31, 2016, respectively. Aggregate depreciation expense for property and equipment was $12.4 million, $12.0 million and $12.1 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the year ended December 31, 2017 are as follows (amounts in thousands):



	Business		Consumer		Total
Balance as of December 31, 2016	$	72,221	$	8,024	$	80,245
Adjustments to goodwill:
Foreign exchange adjustments	286		—		286
Balance as of December 31, 2017	$	72,507	$	8,024	$	80,531

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



	Business			Consumer		Total
Balance as of December 31, 2015	$	72,298		$	8,024	$	80,322
Adjustments to goodwill:
Foreign exchange adjustments	(77		)	—		(77		)
Balance as of December 31, 2016	$	72,221		$	8,024	$	80,245

The total accumulated goodwill impairment charges are $23.5 million through December 31, 2017. No impairment was recognized for the years ended December 31, 2017, 2016, and 2015.

Intangible Assets

Intangible assets are summarized as follows (see Note 7) (amounts in thousands):



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,259	$	(22,575	)	$	5,684	5.3 years
Customer relationships	15,857		(10,336		)	5,521		8.0 years
Trade names	1,300		(1,294		)	6		2.1 years
Non-compete agreements	1,450		(1,450		)	—		2.3 years
Patents	1,621		(493		)	1,128		13.1 years
Other	262		(235		)	27		2.7 years
Total	$	48,749	$	(36,383	)	$	12,366



	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,018	$	(19,736	)	$	8,282	5.3 years
Customer relationships	16,009		(8,857		)	7,152		8.0 years
Trade names	1,295		(1,277		)	18		2.1 years
Non-compete agreements	1,446		(1,220		)	226		2.3 years
Patents	1,180		(376		)	804		12.4 years
Other	263		(235		)	28		2.7 years
Total	$	48,211	$	(31,701	)	$	16,510

Amortization expense is calculated over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $4.7 million, $6.7 million and $8.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. For the years ended December 31, 2017, 2016 and 2015, a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years are as follows (amounts in thousands):



	Estimated Amortization Expense
2018	$	2,602
2019	2,394
2020	2,205
2021	1,988
2022	1,645
Thereafter	1,532
Total	$	12,366

Accrued Liabilities and Other Current Liabilities

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

Accrued Liabilities and Other Current Liabilities

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

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



	December 31,
	2017		2016
Payroll and other employee related costs	$	16,431	$	13,887
Professional services, consulting and other vendor fees	15,674		14,559
Unrecognized tax benefits	4,924		4,240
Sales commissions	5,259		3,312
Contingent earn-out (Note 7)	—		210
Restructuring	2,338		2,551
Other	3,385		1,491
Total	$	48,011	$	40,250

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

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 carrying amount of cash, accounts receivable, and accounts payable approximate their fair value due to their short-term nature. 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 December 31, 2017 and December 31, 2016, are summarized as follows (amounts in thousands). The Company’s restricted cash balance of $1.5 million at December 31, 2017 and $4.0 million at December 31, 2016 is not held in a money market account and is not included in the following table.



	December 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	2,806	$	—	$	—	$	2,806	$	3,076	$	—	$	—	$	3,076
Foreign currency derivative contracts	—		65		—		65		—		108		—		108
Total assets	$	2,806	$	65	$	—	$	2,871	$	3,076	$	108	$	—	$	3,184

Liabilities:
Contingent earn-out	$	—	$	—			$	—	$	—	$	—	$	210	$	210
Foreign currency derivative contracts	—		2		—		2		—		66		—		66
Total liabilities	$	—	$	2	$	—	$	2	$	—	$	66	$	210	$	276

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.

During the twelve months ended December 31, 2016, the final payment of $0.2 million was made in connection with contingent earnout recorded as a result of the acquisition of CAO!, based on the achievement of certain targeted financial, strategic, and integration objectives. As of December 31, 2016, there was $0.2 million of contingent earnout relating to the acquisition of Synchronite, based on the fulfillment of a complete product integration and a minimum number of “Co-Browse” interactions per month. During the twelve months ended December 31, 2017, the contingent earnout relating to Synchronite was fully paid, and therefore, there was no remaining contingent earn-out as of December 31, 2017.

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



	Contingent Earn-Out
	December 31,
	2017			2016
Balance, Beginning of year	$	210		$	377
Cash payment	(210		)	(167		)
Balance, End of year	$	—		$	210

Derivative Financial Instruments

The Company is exposed to foreign exchange risks that are managed in part by using derivative financial instruments. The Company enters into foreign currency forward contracts related to risks associated with foreign operations. The Company does not use derivatives for trading purposes and at December 31, 2017 has no derivatives that are designated as fair value hedges. 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 $1.5 million at December 31, 2017 and is 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):



	December 31, 2017		December 31, 2016
Notional amount of foreign currency derivative contracts	$	2,866	$	44,438
Fair value of foreign currency derivatives contracts	63		42

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



	Fair Value of Derivative Instruments
	Balance Sheet Location	December 31, 2017		December 31, 2016
Derivative Assets
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Prepaid expenses and other current assets	$	65	108

Derivative Liabilities
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Accrued expenses and other liabilities	$	2	66

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 Income Statement
	Income Statement Location	December 31, 2017		December 31, 2016
Foreign currency derivatives contracts	Other (Expense) Income, net	$	236	73

Commitments and Contingencies Disclosure [Abstract]

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

Investments	12 Months Ended
Investments	Dec. 31, 2017
Investments, All Other Investments [Abstract]
Investments	Investments In February 2014, the Company purchased technology licenses and consulting services at fair value from a company in the amount of $3.5 million. The Company received access to this company's patents as well as certain consulting services. During the year ended December 31, 2014, the Company allocated approximately $2.8 million to intangible assets, which is being amortized over the life of the patents. The remaining amount was allocated to other assets. During the year ended December 31, 2016, the Company determined the investment was impaired and wrote off approximately $0.6 million that was allocated to other assets and $2.0 million that represented the remaining net book value in intangible assets.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

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 years ended December 31, 2017, 2016, and 2015 was approximately $8.9 million, $10.0 million and $9.9 million, respectively.

Future minimum lease payments under non-cancellable operating leases (with an initial or remaining lease terms in excess of one year) are as follows (amounts in thousands):



Year Ending December 31,	Operating Leases
2018	$	9,797
2019	6,319
2020	4,113
2021	1,373
2022	1,198
Thereafter	1,712
Total minimum lease payments	$	24,512

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 in to the employees 401(k) account and are subject to 5 year graded vesting. Total Company matching contributions were $1.4 million for the year ended December 31, 2017. Total Company matching contributions were $1.3 million for the years ended December 31, 2016 and 2015, respectively.

Indemnifications

The Company enters into service and license agreements in its ordinary course of business. Pursuant to some of these agreements, the Company agrees to indemnify certain customers from and against certain types of claims and losses suffered or incurred by them as a result of using the Company’s products.

The Company also has agreements whereby its executive officers and directors are indemnified for certain events or occurrences while the officer or director is, or was serving, at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a directors and officers insurance policy that reduces its exposure and enables the Company to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. Currently, the Company has no liabilities recorded for these agreements as of December 31, 2017.

Letters of Credit

As of December 31, 2017, 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 year ended December 31, 2017.

Stockholders' Equity

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Stockholders' Equity

Common Stock

At December 31, 2017, there were 100,000,000 shares of common stock authorized, and 59,663,969 shares issued and outstanding. As of December 31, 2016, there were 100,000,000 shares of common stock authorized, and 58,276,447 shares issued and outstanding. The par value for common shares is $0.001.

Preferred Stock

As of December 31, 2017 and 2016, 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 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. On November 21, 2016, the Company's Board of Directors increased the aggregate purchase price of the stock repurchase program from $64.0 million to $74.0 million and extended the expiration date of the program out to December 31, 2017. There were 247,430 shares repurchased under this program during 2017 which were recorded in treasury stock at par on the consolidated balance sheets as of December 31, 2017. As of December 31, 2017, approximately $18.4 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 years ended December 31, 2017, 2016 and 2015 was $4.25, $3.10, and $4.45, respectively. 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 for the years ended December 31, 2017, 2016 and 2015:



	December 31,
	2017	2016	2015
Dividend yield	—%	—%	—%
Risk-free interest rate	1.7% – 2.1%	1.0% – 1.8%	1.3% – 1.7%
Expected life (in years)	5.0	5.0	5.0
Historical volatility	46.6% – 48.1%	46.8% – 48.2%	47.4% – 49.7%

A description of the methods used in the significant assumptions used to estimate the fair value of stock-based-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.

On June 2, 2017, the Company's Board of Directors amended and restated the Amended 2009 Plan effective April 30, 2017. The amended and restated plan increased the number of shares authorized for issuance under the plan by an additional 4,000,000, 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 December 31, 2017, approximately 4.9 million shares of common stock were reserved for issuance under the 2009 Plan (taking into account all option exercises through December 31, 2017).

Employee Stock Purchase Plan

In June 2010, our stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. Subject to stockholder approval, which was obtained on June 2, 2017, the Company's Board of Directors amended and restated the 2010 Employee Stock Purchase Plan effective April 30, 2017. The amended and restated plan increased the number of shares authorized for issuance under the plan by an additional 1,000,000, thereby reserving for issuance 2,000,000 shares of common stock in the aggregate. As of December 31, 2017, approximately 1,027,016 shares of common stock were reserved for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through December 31, 2017).

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, 2014	10,769		$	10.95
Granted	857		10.06
Exercised	(646	)	4.41
Cancelled or expired	(1,837	)	12.22
Balance outstanding at December 31, 2015	9,144		$	11.05	6.66	$	2,117
Options vested and expected to vest	8,356		$	11.08	6.49	$	2,117
Options exercisable at December 31, 2015	5,401		$	10.95	5.60	$	2,117

Balance outstanding at December 31, 2015	9,144		$	11.05
Granted	635		7.32
Exercised	(325	)	5.66
Cancelled or expired	(1,685	)	11.49
Balance outstanding at December 31, 2016	7,769		$	10.88	6.05	$	2,641
Options vested and expected to vest	7,348		$	11.00	5.90	$	2,529
Options exercisable at December 31, 2016	5,580		$	11.31	5.27	$	2,347

Balance outstanding at December 31, 2016	7,769		$	10.88
Granted	2,042		9.87
Exercised	(854	)	8.80
Cancelled or expired	(998	)	11.98
Balance outstanding at December 31, 2017	7,959		$	10.71	5.85	$	14,881
Options vested and expected to vest	7,163		$	10.75	5.49	$	13,197
Options exercisable at December 31, 2017	5,163		$	11.17	4.50	$	8,648

The total fair value of stock options exercised during the years ended December 31, 2017 and 2016 was approximately $3.7 million and $1.1 million, respectively. As of December 31, 2017, there was approximately $9.1 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 2.7 years.

The following table summarizes information about outstanding and vested stock options as of December 31, 2017:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding (in thousands)	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number of Shares (in thousands)	Weighted-Average Exercise Price
$1.79 - $7.02	825	2.81	$	5.21	656	$	4.85
$7.04 - $7.45	354	7.54	7.26		227	7.22
$7.60 - $7.60	873	8.27	7.60		—	—
$7.95 - $9.34	865	6.02	9.03		739	9.15
$9.44 - $10.13	1,468	6.46	9.97		977	10.04
$10.31 - $12.32	874	6.12	11.17		490	11.39
$12.46 - $13.28	924	3.99	13.13		880	13.13
$13.34 - $14.30	946	7.45	13.90		364	13.48
$15.66 - $18.09	825	4.27	17.11		825	17.11
$18.24 - $18.24	5	4.58	18.24		5	18.24

	7,959	5.85	$	10.71	5,163	$	11.17

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 (in thousands)		Weighted Average Grant Date Fair Value (Per Share)		Aggregate Fair Value (in thousands)
Balance outstanding at December 31, 2015	1,202		$	10.31	$	6,220
Awarded	571		6.32		—
Released	(394	)	10.31		—
Forfeited	(191	)	10.01		—
Non-vested and outstanding at December 31, 2016	1,188		$	8.44	$	8,968

Balance outstanding at December 31, 2016	1,188		$	8.44	$	8,968
Awarded	332		8.16		—
Released	(363	)	8.48		—
Forfeited	(284	)	8.46		—
Non-vested and outstanding at December 31, 2017	873		$	8.29	$	10,053
Expected to vest	680		$	8.41	$	7,820

RSUs granted to employees generally vest over a four-year period. As of December 31, 2017, total unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested RSUs was approximately $6.3 million and the weighted-average remaining vesting period was 2.4 years.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Company includes interest accrued on the underpayment of income taxes in interest expense and penalties, if any, related to unrecognized tax benefits in general and administrative expenses. The Company recorded a valuation allowance against its U.S. and Australia deferred tax asset as it considered its cumulative loss in recent years as a significant piece of negative evidence. Since valuation allowances are evaluated on a jurisdiction by jurisdiction basis, we believe that the deferred tax assets related to LivePerson UK, Engage, Kasamba Israel and LivePerson LTD Israel are “more likely than not” to be realized as these jurisdictions have positive cumulative pre-tax book income after adjusting for permanent and onetime items. During the year ended December 31, 2017, there was a reduction in the valuation recorded of $4.6 million.

Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company’s use of its federal net operating loss (“NOL”) carryforwards may be limited if the Company experiences an ownership change, as defined in Section 382. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. As of December 31, 2017, the Company had approximately $32.8 million of federal NOL carryforwards available to offset future taxable income. Included in this amount is $5.1 million of federal NOL carryovers from the Company’s acquisition of Proficient. These carryforwards expire in various years through 2027.

The domestic and foreign components of (loss) income before provision for income taxes consist of the following (amounts in thousands):



	Year Ended December 31,
	2017			2016			2015
United States	$	(25,585	)	$	(40,774	)	$	(16,362	)
Israel	3,458			15,622			2,257
United Kingdom	2,087			2,345			1,564
Netherlands	1,568			3,104			1,919
Australia	(1,979		)	(2,774		)	(565		)
Germany	2,424			2,085			327
Other ⁽¹⁾	337			453			230
	$	(17,690	)	$	(19,939	)	$	(10,630	)
⁽¹⁾ Includes Japan, Italy, Singapore, Canada, and France

No additional provision has been made for U.S. income taxes on the undistributed earnings of its Israeli subsidiary, LivePerson Ltd. (formerly HumanClick Ltd.), as such earnings have been taxed in the U.S. and accumulated earnings of the Company’s other foreign subsidiaries are immaterial through December 31, 2017.

The provision for income taxes consists of the following (amounts in thousands):



	Year Ended December 31,
	2017			2016		2015
Current income taxes:
U.S. Federal	$	—		$	1,829	$	(524	)
State and local	47			27		309
Foreign	2,852			2,226		1,573
Total current income taxes	2,899			4,082		1,358

Deferred income taxes:
U.S. Federal	(1,289		)	841		13,791
State and local	(1,144		)	99		876
Foreign	35			912		(211		)
Total deferred income taxes	(2,398		)	1,852		14,456
Total provision for income taxes	$	501		$	5,934	$	15,814

The difference between the total income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:



	Year Ended December 31,
	2017		2016		2015
Federal Statutory Rate	34.00	%	34.00	%	34.00	%
State taxes, net of federal benefit	4.09	%	3.24	%	0.35	%
Non-deductible expenses – ISO	(0.78	)%	(1.85	)%	(8.57	)%
Non-deductible expenses – Other	(1.19	)%	(0.88	)%	(2.20	)%
Foreign tax rate differential	(1.97	)%	0.89	%	(12.41	)%
Change in valuation allowance	26.12	%	(53.55	)%	(148.24	)%
Return to provision true-up adjustment	—	%	(9.22	)%	—	%
Effect of new tax legislation	(56.84	)%	—	%	—	%
Other	(6.26	)%	(2.42	)%	(11.15	)%
Total provision for income taxes	(2.83	)%	(29.79	)%	(148.22	)%

The effects of temporary differences and tax loss carryforwards that give rise to significant portions of federal deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented below (amounts in thousands):



	Year Ended December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	8,093		$	6,186
Accounts payable and accrued expenses	4,429			4,906
Non-cash compensation	9,510			12,541
Intangibles amortization	5,513			6,151
Allowance for doubtful accounts	232			447
Intangibles related to acquisitions	—			118
Total deferred tax assets	27,777			30,349
Less valuation allowance	(23,260		)	(27,881		)
Deferred tax assets, net of valuation allowance	4,517			2,468
Deferred tax liabilities:
Property and equipment	(2,010		)	(1,695		)
Goodwill amortization and contingent earn-out adjustments	(2,669		)	(3,332		)
Total deferred tax liabilities	(4,679		)	(5,027		)
Net deferred tax liabilities	$	(162	)	$	(2,559	)

ASC Topic 740-10 clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with other provisions contained within this guidance. This topic prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate audit settlement. The Company had unrecognized tax benefits of $4.9 million and $4.2 million as of December 31, 2017 and 2016, respectively. Accrued interest and penalties included in our liability related to unrecognized tax benefits were immaterial at December 31, 2017 and 2016.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Year Ended December 31,
	2017		2016
Unrecognized tax benefits balance at January 1	$	4,240	$	3,519
Gross increase for tax positions of prior years	—		200
Gross increase for tax positions of current years	684		700
Decrease due to expiration of statue	—		(179		)
Gross unrecognized tax benefits at December 31	$	4,924	$	4,240

The tax years subject to examination by major tax jurisdictions include the years 2011 and forward for U.S states and New York City, the years 2012 and forward for U.S. Federal, and the years 2012 and forward for certain foreign jurisdictions.

Tax Reform

In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affect fiscal 2017, including, but not limited to requiring a one-time repatriation tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years (the "Repatriation Tax"). The Tax Act also establishes new tax laws that will affect 2018 and later years, including, but not limited to, a reduction of the U.S. federal corporate tax rate from 34% to 21%, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and a new provision designed to tax global intangible low-taxed income ("GILTI").

In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. To the extent that a company’s accounting for certain income tax effects of those aspects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

The legislation reduced the U.S. corporate tax rate from the current rate of 35% to 21% for tax years beginning after December 31, 2017. Under the Tax Act, our $32.8 million in federal net operating loss carryforwards generated as of December 31, 2017 will continue to be carried forward for 20 years and are expected to be available to fully offset taxable income earned in future tax years. Federal net operating losses generated after 2017 will be carried forward indefinitely, but generally may only offset up to 80% of taxable income earned in a tax year. In the quarter ending December 31, 2017, we revalued our deferred tax assets and liabilities due to these changes, including (a) revaluing our federal net deferred tax assets before valuation allowance using the 21% tax rate, resulting in a decreased federal deferred tax provision of $10.1 million; (b) revaluing our federal valuation allowance using the 21% tax rate, including the impact of tax planning strategies, resulting in a federal deferred tax benefit to continuing operations of $12.6 million; (c) recognizing a federal deferred tax benefit of $2.0 million for 80% of indefinite lived deferred tax liabilities, which are anticipated to be available as a source of taxable income upon reversal of deferred tax assets that would also have indefinite lives; and (d) recognizing $1.2 million state deferred tax provision unaffected by the changes in the Tax Act. The new legislation will require the Company to pay tax on the unremitted earnings of its foreign subsidiaries though December 31, 2017. Because of the complexities involved in determining the previously unremitted earnings and profits of all our foreign subsidiaries, the Company is still in the process of obtaining, preparing, and analyzing the required information. The Company estimates that the tax on unremitted earnings will be zero due to an overall accumulated deficit in earnings and profits.

The Tax Act creates a new requirement that certain income earned by a foreign subsidiary must be included in the income of the U.S. shareholder. This income (called Global Intangible Low-Taxed Income, or GILTI) is defined as the excess of a foreign subsidiaries income over a nominal return on fixed assets. The Company expects to be subject to this inclusion in future years. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either accounting for the effects of the GILTI inclusion as a current period expense, when incurred, or factoring such amounts into the Company’s measurement of its deferred taxes. The Company has elected to treat the effects of this provision as a period cost, and therefore, has not considered the impacts of GILTI on its deferred tax liabilities at December 31, 2017.

The Company's consolidated financial statements do not provide for any related tax liability on amounts that may be repatriated from foreign operations as the Company intends for these earnings to be indefinitely reinvested in operations outside the U.S. Accordingly, no provision has been made for United States income taxes that may become payable if those undistributed earnings of foreign subsidiaries are paid as dividends. At December 31, 2017, the estimated amount of foreign earnings for which the Company has taken a permanently reinvested position is $14.5 million.

Legal Matters	12 Months Ended
Legal Matters	Dec. 31, 2017
Loss Contingency, Information about Litigation Matters [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. 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 March 16, 2017, the New York case was voluntarily transferred and consolidated with the two California cases in the Northern District of California for all pre-trial purposes. Recent Court rulings in the Company's favor have invalidated multiple [24]7 patents that were asserted in the patent cases. Trial for the Company's intellectual property and other claims asserted against [24]7 in the original litigation is currently set for November 26, 2018. The Company believes the claims filed by [24]7 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.

Restructuring Costs

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring Costs

The Company’s restructuring costs relate to wind-down and severance costs associated with re-prioritizing and reallocating resources to focus on areas showing high growth potential, as well as the termination of a large customer contract. The expense associated with this restructuring was approximately $2.6 million, $2.8 million, and $3.4 million during the years ended December 31, 2017, 2016, and 2015, respectively, and is classified in the consolidated statements of operations as restructuring costs. During the year ended 2016, restructuring expense was partially offset by a benefit of $0.4 million due to cash collection of previously written off bad debt. The restructuring liability was approximately $2.3 million and $2.6 million as of December 31, 2017 and 2016, respectively, and is classified as accrued expenses and other current liabilities on the consolidated balance sheets.

The following table presents the detail of the liability for the Company’s restructuring charges for the periods presented (amounts in thousands):



	December 31, 2017			December 31, 2016
Balance, Beginning of the year	$	2,551		$	1,328
Severance and other associated costs	648			1,585
Cash payments	(2,807		)	(1,328		)
Wind down costs of legacy platform	1,946			966
Balance, End of year	$	2,338		$	2,551

The following table presents the detail of expenses for the Company’s restructuring charges for the periods presented (amounts in thousands):



	December 31, 2017		December 31, 2016			December 31, 2015
Contract termination benefit	$	—	$	(384	)	$	1,745
Severance and other associated costs	648		1,585			1,639
Wind down costs of legacy platform	1,946		1,168			—
Total restructuring costs	$	2,594	$	2,369		$	3,384

Description of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
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 an U.S. office in Alpharetta (Georgia) and Mountain View (CA), and international offices in Amsterdam, Berlin, London, Mannheim, Melbourne, Milan, Paris, Ra'anana (Israel), Reading (UK), Tel Aviv (Israel), and Tokyo. LivePerson provides mobile and online business messaging solutions that power digital communication between brands and consumers. LiveEngage, the Company’s enterprise-class, cloud-based platform, enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging, while leveraging bots and artificial intelligence (AI) to increase efficiency. As consumers have reoriented their digital lives around the smartphone, messaging apps have become their preferred communication channel to connect with each other. LivePerson allows brands to align with this new consumer preference, and deploy messaging at scale for customer care, marketing, and sales, instead of requiring that consumers use email or call a 1-800 number. LiveEngage was designed to securely deploy messaging, coupled with bots and AI, at scale for brands with tens of millions of customers and many thousands of customer care agents. LiveEngage powers conversations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop web browsers, short message services (SMS), social media and third-party consumer messaging platforms. Brands can also use LiveEngage to message consumers when they dial a 1-800 number instead of having them navigate interactive voice response systems (IVR) and wait on hold. The platform seamlessly integrates with third-party bots, enabling brands to manage both AI- based agents and human agents from a single console. LivePerson optimizes campaign outcomes for sales and service transaction by combining website visitor data with other historical, behavioral, and operational information to develop insights into each step of a consumer’s journey. 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 real-time chat with individual consumers (“Users”).
Principles of Consolidation	Principles of Consolidation The consolidated financial statements reflect the operations of LivePerson and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Reclassification	Reclassification For comparability, certain 2015 and 2016 amounts have been reclassified where appropriate, to conform to the financial presentation in 2017.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include revenue recognition, stock-based compensation, accounts receivable, the valuation of goodwill and intangible assets, income taxes and legal contingencies. Actual results could differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable which approximate fair value at December 31, 2017 because of the short-term nature of these instruments. The Company invests its cash and cash equivalents with financial institutions that it believes are of high quality, and the Company performs periodic evaluations of these instruments and the relative credit standings of the institutions with which it invests. At certain times, the Company’s cash balances with any one financial institution may exceed Federal Deposit Insurance Corporation insurance limits. The Company believes it mitigates its risk by depositing its cash balances with high credit, quality financial institutions. The Company performs ongoing credit evaluations of its customers’ financial condition (except for customers who purchase the LivePerson services by credit card via Internet download) and has established an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Concentration of credit risk is limited due to the Company’s large number of customers.
Foreign Currency Translation	Foreign Currency Translation The Company's operations are conducted in various countries around the world and the financial statements of its foreign subsidiaries are reported in the applicable foreign currencies (functional currencies). Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the Company's consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. Foreign exchange transaction gain or losses are included in Other Income, net in the accompanying consolidated statements of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid securities with original maturities of 3 months or less when acquired to be cash equivalents. Cash equivalents, which primarily consist of money market funds, are recorded at cost, which approximates fair value.
Accounts Receivable	Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, generally three to five years for equipment and software. Leasehold improvements are depreciated using the straight-line method over the shorter of the lease term or the estimated useful life of the asset.
Internal-Use Software Development Costs	Internal-Use Software Development Costs In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software, the Company capitalizes its costs to develop its internal use software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. These costs are included in property and equipment in the Company's consolidated balance sheets and are amortized on a straight-line basis over the estimated useful life of the related asset, which approximates three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred.
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company records goodwill when the consideration paid in a business combination exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but instead is required to be tested for impairment annually and whenever events or changes in circumstances indicate that the carrying value of goodwill may exceed its fair value. The Company performs testing for impairment of goodwill in its third quarter, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s reporting units below their carrying amounts. A qualitative assessment is first made to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. This initial qualitative assessment includes, among other things, consideration of: (i) market capitalization of the Company, (ii) past, current and projected future earnings and equity; (iii) recent trends and market conditions; and (iv) valuation metrics involving similar companies that are publicly-traded and acquisitions of similar companies, if available. If this initial qualitative assessment indicates that it is more likely than not that impairment exists, a second analysis will be performed, involving a comparison between the estimated fair values of the Company’s reporting unit with its respective carrying amount including goodwill. If the carrying value exceeds estimated fair value, there is an indication of potential impairment, and a third analysis is performed to measure the amount of impairment. The third analysis involves calculating an implied fair value of goodwill by measuring the excess of the estimated fair value of the reporting unit over the aggregate estimated fair values of the individual assets less liabilities. If the carrying value of goodwill exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 360-10-35, “Accounting for Impairment or Disposal of Long-Lived Assets.” The Company evaluates for goodwill impairment annually at September 30^th and at the end of the third quarter of 2017, 2016, and 2015, the Company determined that it was not more-likely that the fair value of the reporting units is less than their carrying amount. Accordingly, the Company did not perform the two-step goodwill impairment test on both the Company's Business and Consumer segments. The Company assessed qualitative facts while summarizing the totality of events and circumstances and considered the extent to which adverse events or circumstances could affect the reporting unit's fair value as well as the consideration of positive and mitigating events and circumstances that would affect the determination of whether it was more likely than not that the fair value of a reporting unit is less than its carrying amount.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets In accordance with ASC 360-10, “Accounting for the Impairment or Disposal of Long-lived Assets,” long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the year ended December 31, 2016, the Company determined certain long-lived assets related to the legacy platform and purchased intangibles of technology licenses to be impaired.
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, quarterly or annual 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 (“SMBs”), 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 12 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 of services and customer acceptance. This guidance 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 our 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.
Advertising Costs	Advertising Costs The Company expenses the cost of advertising and promoting its services as incurred in the sales and marketing expense on the consolidated statement of operations.
Stock-based Compensation	Stock-based Compensation In accordance with ASC Topic 718 -10, "Stock Compensation", the Company measures stock based awards at fair value and recognizes compensation expense for all share-based payment awards made to its employees and directors, including employee stock options. The Company estimates the fair value of stock options granted using the Black-Scholes valuation model. This model requires the Company to make estimates and assumptions including, among other things, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of its common stock price and the number of options that will be forfeited prior to vesting. The fair value is then recognized on a straight line basis over the requisite service period of the award, which is generally four years. Changes in these estimates and assumptions can materially affect the determination of the fair value of the stock-based compensation and consequently, the related amount recognized in the consolidated statement of operations.
Deferred Rent	Deferred Rent The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized for financial reporting purposes and the actual payments made in accordance with the lease agreement is recognized as deferred rent liability included in other liabilities on the Company’s consolidated balance sheets.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in results of operations in the period that the tax change occurs. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
Comprehensive Loss	Comprehensive Loss In accordance with ASC 220, "Comprehensive Income", the Company reports by major components and as a single total, the change in its net assets during the period from non-owner sources. Comprehensive income (loss) consists of net income (loss), and accumulated other comprehensive income (loss), which includes certain changes in equity that are excluded from net income (loss). The Company’s comprehensive loss for all periods presented is related to the effect of foreign currency translation.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-02 "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). This new standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The amendments in ASU 2018-02 affects any entity that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The Company is currently evaluating the impact of this updated standard, but does not believe this update will have a significant impact on its consolidated financial statements. In August 2017, the FASB issued Accounting Standards Update No. 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). This new standard refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes, for investors and analysts. ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, for public companies. Early adoption is permitted in any interim period or fiscal years before the effective date of the standard. The Company does not expect the adoption of ASU 2017-12 to have a material effect on its financial position, results of operations or cash flows. In May 2017, FASB issued Accounting Standards Update No. 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" (“ASU 2017-09”). This update clarifies and reduces both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, to a change to the terms and conditions of a share-based payment award. ASU 2017-09 is effective for financial statements issued for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of this updated standard, but does not believe this update will have a significant impact on its consolidated financial statements. In January 2017, FASB issued Accounting Standards Update No. 2017-04, "Intangibles —Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" (“ASU 2017-04”). This update addresses concerns over the cost and complexity of the two-step goodwill impairment test. The amendments in this update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. ASU 2017-04 is effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of ASU 2017-04 to have a material effect on its financial position, results of operations or cash flows. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" (“ASU 2017-01”). This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. The amendments in this update provide a screen to determine when a set is not a business. If the screen is not met, it (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. ASU 2017-01 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 adoption of ASU 2017-01 to have a material effect on its financial position, results of operations or cash flows. In March 2016, the 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. The Company adopted this ASU as of the beginning of the first quarter of 2017 and has elected to continue to estimate expected forfeitures over the course of a vesting period. Further, the ASU eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. The adoption of ASU 2016-09 did not have any material impact on the Company’s financial statements. In February 2016, the 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 assessing the provisions of this guidance and evaluating the timing and impact the guidance will have on its consolidated financial statements and related disclosures. The Company is also in the process of aggregating lease documentation for review. The adoption of this ASU primarily impacts the balance sheet through the recognition of a right-of-use asset and a lease liability for all leases with terms in excess of 12 months. This guidance is effective January 1, 2019 using a modified retrospective transition approach with early adoption permitted. In May 2014, the FASB issued ASC 2014-09, Revenue from Contracts with Customers (“Topic 606”). The purpose of Update No. 2014-09 is to provide enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies using U.S. GAAP and International Financial Reporting Standards. The core principle requires entities to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration an entity expects to be entitled to in exchange for those goods or services. Topic 606, becomes effective for annual periods beginning after December 15, 2017. The Company currently plans to adopt the standard using the “modified retrospective method.” Under that method, the Company will apply the rules to contracts that are not completed as of January 1, 2018, and recognize the cumulative effect of the initial adoption as an adjustment to the opening balance of retained earnings. The Company will adopt the guidance relating to Topic 606 using the modified retrospective approach effective January 1, 2018 and will expect no adjustment to retained earnings. The Company will record revenue over time as control is transferred to the customer, due to the stand-ready nature of our services provided. The Company will adopt the standard through the application of the portfolio approach. To assess the amended guidance and formulate an implementation plan, the Company has read the amended guidance, attended trainings and consulted with external accounting professionals. Collaboratively the Company has identified all major contract types and assessed the potential impact of the amended guidance. The Company has selected a sample of customer contracts to assess under the guidance of the new standard that were characteristically representative of each revenue stream. The Company then made an additional sample of customer contracts based on size to validate its analysis and conclusions. The Company does not expect to have any significant changes to the timing of revenue recognition as a result of adopting the new standard. In assessing the impact of adopting the guidance on disclosures, the Company anticipates to have additional disclosures regarding the disaggregation of revenues by business segment, the presentation and roll forward of various contract account balances, changes to its accounting policy, as well as other significant judgments and disclosures regarding performance obligations and the implementation of the amended guidance.

Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Schedule of Activity in the Allowance for Doubtful Accounts

The activity in the allowance for doubtful accounts is as follows (amounts in thousands):



Year Ended December 31,	Beginning Balance		Additions Charged to Costs and Expenses		Deductions / Write-Offs			Ending Balance
2015	$	1,275	$	2,361	$	(2,452	)	$	1,184
2016	$	1,184	$	1,831	$	(1,283	)	$	1,732
2017	$	1,732	$	1,895	$	(2,309	)	$	1,318

Net Loss per Share (Tables)

12 Months Ended

Dec. 31, 2017

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 earnings per share follows:



	Year Ended December 31,
	2017	2016	2015
Basic	56,358,017	56,063,777	56,452,408
Effect of assumed exercised options	—	—	—
Diluted	56,358,017	56,063,777	56,452,408

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Summary Of Financial Information By Segment



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	178,686	$	—	$	—		$	178,686
Hosted services – Consumer	—		17,450		—			17,450
Professional services	22,740		—		—			22,740
Total revenue	201,426		17,450		—			218,876
Cost of revenue	54,600		3,605		—			58,205
Sales and marketing	82,420		8,485		—			90,905
Amortization of purchased intangibles	1,840		—		—			1,840
Unallocated corporate expenses	—		—		85,752			85,752
Operating income (loss)	$	62,566	$	5,360	$	(85,752	)	$	(17,826	)



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	183,551	$	—	$	—		$	183,551
Hosted services – Consumer	—		16,258		—			16,258
Professional services	22,970		—		—			22,970
Total revenue	206,521		16,258		—			222,779
Cost of revenue	60,352		2,809		—			63,161
Sales and marketing	82,063		7,466		—			89,529
Amortization of purchased intangibles	3,885		—		—			3,885
Unallocated corporate expenses	—		—		85,613			85,613
Operating income (loss)	$	60,221	$	5,983	$	(85,613	)	$	(19,409	)



	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	200,576	$	—	$	—		$	200,576
Hosted services – Consumer	—		15,209		—			15,209
Professional services	23,227		—		—			23,227
Total revenue	223,803		15,209		—			239,012
Cost of revenue	67,901		2,409		—			70,310
Sales and marketing	87,975		6,753		—			94,728
Amortization of purchased intangibles	4,873		—		—			4,873
Unallocated corporate expenses	—		—		79,529			79,529
Operating income (loss)	$	63,054	$	6,047	$	(79,529	)	$	(10,428	)

Revenues Attributable To Domestic And Foreign Operations

The following table presents the Company's revenues attributable to domestic and foreign operations for the years ended (amounts in thousands):



	December 31,
	2017		2016		2015
United States	$	137,433	$	146,733	$	159,539
Other Americas ⁽¹⁾	6,987		6,818		12,296
Total Americas	144,420		153,551		171,835
EMEA ^{(2) (4)}	56,310		50,511		51,548
APAC ⁽³⁾	18,146		18,717		15,629
Total revenue	$	218,876	$	222,779	$	239,012

⁽¹⁾ Canada, Latin America and South America

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

⁽³⁾ Asia-Pacific (“APAC”)

⁽⁴⁾Includes revenue from the United Kingdom of $38.9 million, $35.3 million, and $38.2 million for the twelve months ended December 31, 2017, 2016, and 2015, respectively.

Long-Lived Assets By Geographic Region

The following table presents the Company's long-lived assets by geographic region for the years ended (amounts in thousands):



	December 31,
	2017		2016
United States	$	95,716	$	93,845
Israel	13,079		13,940
Australia	9,504		9,496
Netherlands	8,363		7,495
Other ⁽¹⁾	3,293		2,711
Total long-lived assets	$	129,955	$	127,487

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

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Schedule of Property And Equipment

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



	December 31,
	2017			2016
Computer equipment and software	$	100,815		$	82,477
Furniture, equipment and building improvements	15,355			15,027
	116,170			97,504
Less: accumulated depreciation	(81,465		)	(69,107		)
Total	$	34,705		$	28,397

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The changes in the carrying amount of goodwill for the year ended December 31, 2017 are as follows (amounts in thousands):



	Business		Consumer		Total
Balance as of December 31, 2016	$	72,221	$	8,024	$	80,245
Adjustments to goodwill:
Foreign exchange adjustments	286		—		286
Balance as of December 31, 2017	$	72,507	$	8,024	$	80,531

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



	Business			Consumer		Total
Balance as of December 31, 2015	$	72,298		$	8,024	$	80,322
Adjustments to goodwill:
Foreign exchange adjustments	(77		)	—		(77		)
Balance as of December 31, 2016	$	72,221		$	8,024	$	80,245

Summary of Intangible Assets

Intangible assets are summarized as follows (see Note 7) (amounts in thousands):



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,259	$	(22,575	)	$	5,684	5.3 years
Customer relationships	15,857		(10,336		)	5,521		8.0 years
Trade names	1,300		(1,294		)	6		2.1 years
Non-compete agreements	1,450		(1,450		)	—		2.3 years
Patents	1,621		(493		)	1,128		13.1 years
Other	262		(235		)	27		2.7 years
Total	$	48,749	$	(36,383	)	$	12,366



	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,018	$	(19,736	)	$	8,282	5.3 years
Customer relationships	16,009		(8,857		)	7,152		8.0 years
Trade names	1,295		(1,277		)	18		2.1 years
Non-compete agreements	1,446		(1,220		)	226		2.3 years
Patents	1,180		(376		)	804		12.4 years
Other	263		(235		)	28		2.7 years
Total	$	48,211	$	(31,701	)	$	16,510

Schedule of Future Amortization Expense

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



	Estimated Amortization Expense
2018	$	2,602
2019	2,394
2020	2,205
2021	1,988
2022	1,645
Thereafter	1,532
Total	$	12,366

Accrued Liabilities and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

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



	December 31,
	2017		2016
Payroll and other employee related costs	$	16,431	$	13,887
Professional services, consulting and other vendor fees	15,674		14,559
Unrecognized tax benefits	4,924		4,240
Sales commissions	5,259		3,312
Contingent earn-out (Note 7)	—		210
Restructuring	2,338		2,551
Other	3,385		1,491
Total	$	48,011	$	40,250

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

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 December 31, 2017 and December 31, 2016, are summarized as follows (amounts in thousands). The Company’s restricted cash balance of $1.5 million at December 31, 2017 and $4.0 million at December 31, 2016 is not held in a money market account and is not included in the following table.



	December 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	2,806	$	—	$	—	$	2,806	$	3,076	$	—	$	—	$	3,076
Foreign currency derivative contracts	—		65		—		65		—		108		—		108
Total assets	$	2,806	$	65	$	—	$	2,871	$	3,076	$	108	$	—	$	3,184

Liabilities:
Contingent earn-out	$	—	$	—			$	—	$	—	$	—	$	210	$	210
Foreign currency derivative contracts	—		2		—		2		—		66		—		66
Total liabilities	$	—	$	2	$	—	$	2	$	—	$	66	$	210	$	276

Schedule of Changes 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
	December 31,
	2017			2016
Balance, Beginning of year	$	210		$	377
Cash payment	(210		)	(167		)
Balance, End of year	$	—		$	210

Schedule of Derivative Instruments



	December 31, 2017		December 31, 2016
Notional amount of foreign currency derivative contracts	$	2,866	$	44,438
Fair value of foreign currency derivatives contracts	63		42

Schedule of Derivative Assets 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	December 31, 2017		December 31, 2016
Derivative Assets
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Prepaid expenses and other current assets	$	65	108

Derivative Liabilities
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Accrued expenses and other liabilities	$	2	66

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	December 31, 2017		December 31, 2016
Derivative Assets
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Prepaid expenses and other current assets	$	65	108

Derivative Liabilities
Derivatives not designated as hedging instruments:
Foreign currency derivatives contracts	Accrued expenses and other liabilities	$	2	66

Schedule of Gains (Losses) on Derivative Instruments Recognized in the 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 Income Statement
	Income Statement Location	December 31, 2017		December 31, 2016
Foreign currency derivatives contracts	Other (Expense) Income, net	$	236	73

Commitments and Contingencies Disclosure [Abstract]

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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Future Minimum Lease Payments Under Non-Cancelable Operating Leases

Future minimum lease payments under non-cancellable operating leases (with an initial or remaining lease terms in excess of one year) are as follows (amounts in thousands):



Year Ending December 31,	Operating Leases
2018	$	9,797
2019	6,319
2020	4,113
2021	1,373
2022	1,198
Thereafter	1,712
Total minimum lease payments	$	24,512

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

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

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 for the years ended December 31, 2017, 2016 and 2015:



	December 31,
	2017	2016	2015
Dividend yield	—%	—%	—%
Risk-free interest rate	1.7% – 2.1%	1.0% – 1.8%	1.3% – 1.7%
Expected life (in years)	5.0	5.0	5.0
Historical volatility	46.6% – 48.1%	46.8% – 48.2%	47.4% – 49.7%

Schedule of Stock Option Activity and Weighted Average Exercise Prices

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, 2014	10,769		$	10.95
Granted	857		10.06
Exercised	(646	)	4.41
Cancelled or expired	(1,837	)	12.22
Balance outstanding at December 31, 2015	9,144		$	11.05	6.66	$	2,117
Options vested and expected to vest	8,356		$	11.08	6.49	$	2,117
Options exercisable at December 31, 2015	5,401		$	10.95	5.60	$	2,117

Balance outstanding at December 31, 2015	9,144		$	11.05
Granted	635		7.32
Exercised	(325	)	5.66
Cancelled or expired	(1,685	)	11.49
Balance outstanding at December 31, 2016	7,769		$	10.88	6.05	$	2,641
Options vested and expected to vest	7,348		$	11.00	5.90	$	2,529
Options exercisable at December 31, 2016	5,580		$	11.31	5.27	$	2,347

Balance outstanding at December 31, 2016	7,769		$	10.88
Granted	2,042		9.87
Exercised	(854	)	8.80
Cancelled or expired	(998	)	11.98
Balance outstanding at December 31, 2017	7,959		$	10.71	5.85	$	14,881
Options vested and expected to vest	7,163		$	10.75	5.49	$	13,197
Options exercisable at December 31, 2017	5,163		$	11.17	4.50	$	8,648

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 December 31, 2017:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding (in thousands)	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number of Shares (in thousands)	Weighted-Average Exercise Price
$1.79 - $7.02	825	2.81	$	5.21	656	$	4.85
$7.04 - $7.45	354	7.54	7.26		227	7.22
$7.60 - $7.60	873	8.27	7.60		—	—
$7.95 - $9.34	865	6.02	9.03		739	9.15
$9.44 - $10.13	1,468	6.46	9.97		977	10.04
$10.31 - $12.32	874	6.12	11.17		490	11.39
$12.46 - $13.28	924	3.99	13.13		880	13.13
$13.34 - $14.30	946	7.45	13.90		364	13.48
$15.66 - $18.09	825	4.27	17.11		825	17.11
$18.24 - $18.24	5	4.58	18.24		5	18.24

	7,959	5.85	$	10.71	5,163	$	11.17

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

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 (in thousands)		Weighted Average Grant Date Fair Value (Per Share)		Aggregate Fair Value (in thousands)
Balance outstanding at December 31, 2015	1,202		$	10.31	$	6,220
Awarded	571		6.32		—
Released	(394	)	10.31		—
Forfeited	(191	)	10.01		—
Non-vested and outstanding at December 31, 2016	1,188		$	8.44	$	8,968

Balance outstanding at December 31, 2016	1,188		$	8.44	$	8,968
Awarded	332		8.16		—
Released	(363	)	8.48		—
Forfeited	(284	)	8.46		—
Non-vested and outstanding at December 31, 2017	873		$	8.29	$	10,053
Expected to vest	680		$	8.41	$	7,820

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Income Before Provision for Income Taxes

The domestic and foreign components of (loss) income before provision for income taxes consist of the following (amounts in thousands):



	Year Ended December 31,
	2017			2016			2015
United States	$	(25,585	)	$	(40,774	)	$	(16,362	)
Israel	3,458			15,622			2,257
United Kingdom	2,087			2,345			1,564
Netherlands	1,568			3,104			1,919
Australia	(1,979		)	(2,774		)	(565		)
Germany	2,424			2,085			327
Other ⁽¹⁾	337			453			230
	$	(17,690	)	$	(19,939	)	$	(10,630	)
⁽¹⁾ Includes Japan, Italy, Singapore, Canada, and France

Schedule of Provision For Income Taxes

The provision for income taxes consists of the following (amounts in thousands):



	Year Ended December 31,
	2017			2016		2015
Current income taxes:
U.S. Federal	$	—		$	1,829	$	(524	)
State and local	47			27		309
Foreign	2,852			2,226		1,573
Total current income taxes	2,899			4,082		1,358

Deferred income taxes:
U.S. Federal	(1,289		)	841		13,791
State and local	(1,144		)	99		876
Foreign	35			912		(211		)
Total deferred income taxes	(2,398		)	1,852		14,456
Total provision for income taxes	$	501		$	5,934	$	15,814

Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate

The difference between the total income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:



	Year Ended December 31,
	2017		2016		2015
Federal Statutory Rate	34.00	%	34.00	%	34.00	%
State taxes, net of federal benefit	4.09	%	3.24	%	0.35	%
Non-deductible expenses – ISO	(0.78	)%	(1.85	)%	(8.57	)%
Non-deductible expenses – Other	(1.19	)%	(0.88	)%	(2.20	)%
Foreign tax rate differential	(1.97	)%	0.89	%	(12.41	)%
Change in valuation allowance	26.12	%	(53.55	)%	(148.24	)%
Return to provision true-up adjustment	—	%	(9.22	)%	—	%
Effect of new tax legislation	(56.84	)%	—	%	—	%
Other	(6.26	)%	(2.42	)%	(11.15	)%
Total provision for income taxes	(2.83	)%	(29.79	)%	(148.22	)%

Schedule of Federal Deferred Tax Assets and Deferred Tax Liabilities



	Year Ended December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	8,093		$	6,186
Accounts payable and accrued expenses	4,429			4,906
Non-cash compensation	9,510			12,541
Intangibles amortization	5,513			6,151
Allowance for doubtful accounts	232			447
Intangibles related to acquisitions	—			118
Total deferred tax assets	27,777			30,349
Less valuation allowance	(23,260		)	(27,881		)
Deferred tax assets, net of valuation allowance	4,517			2,468
Deferred tax liabilities:
Property and equipment	(2,010		)	(1,695		)
Goodwill amortization and contingent earn-out adjustments	(2,669		)	(3,332		)
Total deferred tax liabilities	(4,679		)	(5,027		)
Net deferred tax liabilities	$	(162	)	$	(2,559	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Year Ended December 31,
	2017		2016
Unrecognized tax benefits balance at January 1	$	4,240	$	3,519
Gross increase for tax positions of prior years	—		200
Gross increase for tax positions of current years	684		700
Decrease due to expiration of statue	—		(179		)
Gross unrecognized tax benefits at December 31	$	4,924	$	4,240

Restructuring Costs (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

The following table presents the detail of the liability for the Company’s restructuring charges for the periods presented (amounts in thousands):



	December 31, 2017			December 31, 2016
Balance, Beginning of the year	$	2,551		$	1,328
Severance and other associated costs	648			1,585
Cash payments	(2,807		)	(1,328		)
Wind down costs of legacy platform	1,946			966
Balance, End of year	$	2,338		$	2,551

The following table presents the detail of expenses for the Company’s restructuring charges for the periods presented (amounts in thousands):



	December 31, 2017		December 31, 2016			December 31, 2015
Contract termination benefit	$	—	$	(384	)	$	1,745
Severance and other associated costs	648		1,585			1,639
Wind down costs of legacy platform	1,946		1,168			—
Total restructuring costs	$	2,594	$	2,369		$	3,384

Description of Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	5 Months Ended	7 Months Ended	12 Months Ended
	Dec. 31, 2016	Jul. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance		$ 1,184	$ 1,732	$ 1,184	$ 1,275
Additions Charged to Costs and Expenses			1,895	1,831	2,361
Deductions / Write-Offs			(2,309)	(1,283)	(2,452)
Ending Balance	$ 1,732		$ 1,318	1,732	1,184
Property and equipment, useful life	4 years	3 years	4 years
Depreciation			$ 12,358	12,011	12,114
Capitalized computer software	$ 3,700		$ 8,300	3,700	2,400
Typical service agreements			12 months
Advertising costs			$ 15,800	$ 10,900	$ 10,700
Requisite service period			4 years
Restructuring Charges [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Impairment of long-lived assets			$ 200
Selling, General and Administrative Expenses [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Impairment of long-lived assets			$ 2,600
Software and Software Development Costs [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Property and equipment, useful life			3 years
Minimum [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Termination notice period			30 days
Minimum [Member] \| Computer Equipment And Software [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Property and equipment, useful life			3 years
Maximum [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Termination notice period			90 days
Maximum [Member] \| Computer Equipment And Software [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Property and equipment, useful life			5 years

Net Loss per Share (Details) - shares	12 Months Ended
Net Loss per Share (Details) - shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Shares excluded from computation of earnings per share (in shares)	8,831,798	8,956,932	10,345,356
Weighted Average Number of Shares Outstanding
Basic (in shares)	56,358,017	56,063,777	56,452,408
Effect of assumed exercised options (in shares)	0	0	0
Diluted (in shares)	56,358,017	56,063,777	56,452,408

Segment Information - Narrative (Details)	12 Months Ended
Segment Information - Narrative (Details)	Dec. 31, 2017 segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information - Summary of Financial Information By Segment (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Hosted services – Business

$ 178,686

$ 183,551

$ 200,576

Hosted services – Consumer

17,450

16,258

15,209

Professional services

22,740

22,970

23,227

Total revenue

218,876

222,779

239,012

^[1],[2],[3]

58,205

63,161

70,310

^[2],[3]

90,905

89,529

94,728

Unallocated corporate expenses

1,840

3,885

4,873

85,752

85,613

79,529

(17,826)

(19,409)

(10,428)

Corporate [Member]

Unallocated corporate expenses

85,752

85,613

79,529

(85,752)

(85,613)

(79,529)

Business [Member]

Hosted services – Business

178,686

183,551

200,576

Professional services

22,740

22,970

23,227

Total revenue

201,426

206,521

223,803

54,600

60,352

67,901

82,420

82,063

87,975

1,840

3,885

4,873

62,566

60,221

63,054

Consumer [Member]

Hosted services – Consumer

17,450

16,258

15,209

Total revenue

17,450

16,258

15,209

3,605

2,809

2,409

8,485

7,466

6,753

$ 5,360

$ 5,983

$ 6,047

[1]	Amounts include amortization of purchased intangibles, as follows: Cost of revenue $2,842, $2,788, and $3,167 years ended December 31, 2017, 2016, and 2015, respectively.
[2]	Amounts include depreciation expense, as follows: Cost of revenue $7,150, $8,234, and $9,091 years ended December 31, 2017, 2016 and 2015, respectively. Sales and marketing $1,625, $1,315 and $1,232 for the years ended December 31, 2017, 2016 and 2015, respectively. General and administrative $1,226, $1,418 and $893 for the years ended December 31, 2017, 2016 and 2015, respectively. and Product development $2,357, $1,044 and $898 for the years ended December 31, 2017, 2016 and 2015, respectively.
[3]	Amounts include stock compensation expense, as follows: Cost of revenue $448, $429, and $1,396 years ended December 31, 2017, 2016 and 2015, respectively. Sales and marketing $2,500, $2,515 and $3,088 for the years ended December 31, 2017, 2016 and 2015, respectively. General and administrative $3,691, $3,304 and $3,692 for the years ended December 31, 2017, 2016 and 2015, respectively. and Product development $2,305, $3,488 and $3,638 for the years ended December 31, 2017, 2016 and 2015, respectively.

Segment Information - Revenues Attributable to Domestic and Foreign Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 218,876	$ 222,779	$ 239,012
Total Americas [Member]
Segment Reporting Information [Line Items]
Revenue	144,420	153,551	171,835
United States [Member]
Segment Reporting Information [Line Items]
Revenue	137,433	146,733	159,539
Other Americas [Member]
Segment Reporting Information [Line Items]
Revenue	6,987	6,818	12,296
EMEA [Member]
Segment Reporting Information [Line Items]
Revenue	56,310	50,511	51,548
United Kingdom [Member]
Segment Reporting Information [Line Items]
Revenue	38,900	35,300	38,200
APAC [Member]
Segment Reporting Information [Line Items]
Revenue	$ 18,146	$ 18,717	$ 15,629

Segment Information - Long-Lived Assets By Geographic Region (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total long-lived assets	$ 129,955	$ 127,487
United States [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	95,716	93,845
Israel [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	13,079	13,940
Australia [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	9,504	9,496
Netherlands [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	8,363	7,495
Other [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	$ 3,293	$ 2,711