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40
Item 6. Selected Financial Data
The consolidated statements of operations data for the years ended December 31, 2010, 2011 and 2012, as well as the
consolidated balance sheet data as of December 31, 2011 and 2012, are derived from our audited consolidated financial
statements that are included elsewhere in this Annual Report on Form 10-K. The consolidated statements of operations data for
the years ended December 31, 2008 and 2009 as well as the consolidated balance sheet data as of December 31, 2008 and 2009
are derived from audited consolidated financial statements not included in this Annual Report on Form 10-K. The historical
results presented below are not necessarily indicative of financial results to be achieved in future periods.
The following selected consolidated financial data should be read in conjunction with "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes
included elsewhere in this Annual Report on Form 10-K.
Year ended December 31,
2008 (2) 2009 2010 2011(2) 2012(2)
Consolidated Statements of Operations: (In thousands except per share amounts)
Revenue $ 170,250 $ 198,452 $ 252,936 $ 324,866 $ 380,578
Operating expenses
Service costs (exclusive of amortization of intangible assets) 98,184 114,536 131,332 155,830 181,018
Sales and marketing 15,310 20,044 24,424 37,394 46,501
Product development 14,252 21,657 26,538 38,146 40,708
General and administrative 28,070 28,479 37,371 59,451 63,025
Amortization of intangible assets 33,204 32,152 33,750 47,174 40,676
Total operating expenses 189,020 216,868 253,415 337,995 371,928
Income (loss) from operations (18,770) (18,416) (479) (13,129) 8,650
Other income (expense)
Interest income 1,636 494 25 56 42
Interest expense (2,131) (1,759) (688) (861) (622)
Other income (expense), net (250) (19) (286) (413) (111)
Total other income (expense) (745) (1,284) (949) (1,218) (691)
Income (loss) before income taxes (19,515) (19,700) (1,428) (14,347) 7,959
Income tax (expense) benefit 4,612 (2,771) (3,897) (4,177) (1,783)
Net income (loss) (14,903) (22,471) (5,325) (18,524) 6,176
Cumulative preferred stock dividends (28,209) (30,848) (33,251) (2,477) —
Net income (loss) attributable to common stockholders $ (43,112) $ (53,319) $ (38,576) $ (21,001) $ 6,176
Net income (loss) per share:(1)
Basic $ (5.27) $ (4.78) $ (2.86) $ (0.27) $ 0.07
Diluted $ (5.27) $ (4.78) $ (2.86) $ (0.27) $ 0.07
Weighted average number of shares(1)(3)
Basic 8,184 11,159 13,508 78,646 84,553
Diluted 8,184 11,159 13,508 78,646 87,237
(1) Basic income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of
common shares outstanding during the period. For the years ended December 31, 2008, 2009, 2010 and 2011, net loss attributable to common
stockholders is increased for cumulative preferred stock dividends earned during these periods. For the periods where we presented losses, all potentially
dilutive common shares comprising of stock options, restricted stock purchase rights, or RSPRs, restricted stock units, warrants and convertible preferred
stock are antidilutive. RSPRs and restricted stock units are considered outstanding common shares and included in the computation of basic earnings per
share as of the date that all necessary conditions of vesting are satisfied. RSPRs and restricted stock units are excluded from the diluted earnings per share
calculation when their impact is antidilutive. Prior to satisfaction of all conditions of vesting, unvested RSPRs and restricted stock units are considered
contingently issuable shares and are excluded from weighted average common shares outstanding.
(2) The Company completed one business acquisition during the year ended December 31, 2012, four business acquisitions during the year ended December
31, 2011 and two business acquisitions during the year ended December 31, 2008.
(3) In October 2010, our stockholders approved a 1-for-2 reverse stock split of our outstanding common stock, and a proportional adjustment to the existing
conversion ratios for each series of preferred stock which was effected in January 2011. Accordingly, all share and per share amounts for all periods
presented have been adjusted retrospectively, where applicable, to reflect this reverse stock split and adjustment of the preferred stock conversion ratio.