8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 05, 2009

(Exact name of registrant as specified in its charter)

Florida	0-25681	65-0423422
(State or other jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

11760 U.S. Highway One Suite 200 North Palm Beach, Florida	33408
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (561) 630-2400

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On February 5, 2009, Bankrate, Inc. (the “Company”) announced via press release the Company’s financial results for the three-month and full year periods ended December 31, 2008. A copy of the Company’s press release is included herein as Exhibit 99.1 and incorporated herein by reference.

The information furnished under Item 2.02 of this Current Report, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Text of press release of Bankrate, Inc., dated February 5, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BANKRATE, INC.
Date: February 5, 2009	By:	/s/ Edward J. DiMaria
		Edward J. DiMaria
		Senior Vice President
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Text of press release of Bankrate, Inc., dated February 5, 2009.

EX-99.1

Exhibit 99.1

www.bankrate.com

For more information contact:

Edward J. DiMaria

SVP, Chief Financial Officer

edimaria@bankrate.com

(917) 368-8608

Bruce J. Zanca

SVP, Chief Communications/Marketing Officer

bzanca@bankrate.com

(917) 368-8648

FOR IMMEDIATE RELEASE

Reminder — Conference Call and Webcast Today at 4:30 P.M. Eastern Time

Interactive Dial-In: (888) 297-0356. International Callers (719) 325-2436 (10 minutes before the call)

Webcast: http://investor.bankrate.com/

BANKRATE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2008 FINANCIAL RESULTS

Q4 Revenue of $40.2 Million Increased 59% Over Q4 2007

Full Year 2008 Revenue of $166.9 Million Up 75% Over Full Year 2007

Q4 Adjusted EBITDA of $13.2 Million Increased 35% Over Q4 2007

Full Year Adjusted EBITDA of $58.1 Million Increased 40% Over Full Year 2007

Quarter and Year Include Impairment Charge of $2.4 Million

NEW YORK, NY – February 5, 2009 – Bankrate, Inc. (Nasdaq: RATE), today reported financial results for the fourth quarter and fiscal year ended December 31, 2008. Total revenue for the fourth quarter increased by 59% to $40.2 million over the $25.2 million reported in the fourth quarter of 2007. Net income was $2.7 million, or $0.14 per fully diluted share in the fourth quarter of 2008, compared to $4.1 million, or $0.21 per fully diluted share in the fourth quarter of 2007. Earnings per fully diluted share, excluding share-based compensation expense and non-cash intangible asset impairment charges (“Adjusted EPS”), was $0.33 for the fourth quarter of 2008, compared to the Adjusted EPS of $0.33 for the fourth quarter of 2007. Adjusted EPS, excluding intangible asset amortization and interest income (“Operating EPS”), for the fourth quarter of 2008 was $0.40 per share compared to $0.29 per share for the same period in 2007.

In the fourth quarter of 2008, the company recorded non-cash impairment charges of $2.4 million ($1.5 million after tax or $.07 per fully diluted share) reflecting the amount by which the carrying value of certain intangible assets related to the print publishing and licensing business and other items exceeded their estimated fair values.

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Earnings before interest, taxes, depreciation and amortization, excluding share-based compensation expense and non-cash intangible asset impairment charges (“Adjusted EBITDA”), were $13.2 million, an increase of 35% over the $9.8 million of Adjusted EBITDA reported in the fourth quarter of 2007. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fourth quarter 2008, including share-based compensation expense and non-cash intangible asset impairment charges were $8.0 million, an increase of 24% over the $6.4 million reported in the fourth quarter 2007.

“In spite of the difficult economic conditions for financial companies, we reported another record year for revenue, growth, traffic and profitability,” said Thomas R. Evans, President and CEO of Bankrate, Inc. “Consumers continue to come to Bankrate in record numbers, looking for the best information and financial products available. We are pleased with our performance and believe we are well-positioned going forward,” Mr. Evans added.

Total revenue for the year ended December 31, 2008 increased by 75% to $166.9 million versus the $95.6 million reported for the full year ended December 31, 2007. Net income was $19.6 million, or $1.01, per fully diluted share for the year ended December 31, 2008, compared to $20.1 million, or $1.04, per fully diluted share in the same period in 2007. Adjusted EPS, excluding share-based compensation expense and non-cash intangible asset impairment charges was $1.54 for the year ended December 31, 2008, compared to $1.39 for the same period in 2007, an increase of 11%. Operating EPS for the full year 2008 increased by 39% to $1.74 per fully diluted share compared to $1.25 per share for the same period in 2007.

Adjusted EBITDA, excluding share-based compensation expense and non-cash intangible asset impairment charges, for the year ended December 31, 2008, were $58.1 million, an increase of 40% over the $41.6 million of Adjusted EBITDA reported in the same period in 2007. EBITDA for the full year 2008, including share-based compensation expense and goodwill and intangible impairment charges, were $42.2 million, an increase of 39% over the $30.4 million reported in the same period in 2007.

2009 Guidance

“Given the continued uncertainty and the lack of visibility in the financial environment, we feel it is wise to refrain from issuing guidance for 2009. However, we remain confident that our business is well-positioned, fundamentally strong and will continue to grow. We have a strong balance sheet, no debt and continue to generate cash on a monthly basis. It’s just impossible to predict how the macro-economic environment will play out over the course of the year and how it will impact our business,” Mr. Evans stated.

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Fourth Quarter 2008 Highlights

• Total revenue for the quarter was $40.2 million, an increase of 59%, or $15.0 million over the $25.2 million reported in the same period last year.

• Adjusted EBITDA for the fourth quarter was $13.2 million, and increase of $3.4 million, or 35% over the $9.8 million reported in the fourth quarter of 2007.

• Impairment charges of $2.4 million ($1.5 million after tax or $.07 per fully diluted share) were recorded in the fourth quarter to write off certain intangible assets related to the print publishing and licensing business and other items.

• Online revenue for the fourth quarter was $38.3 million, an increase of 68%, or $15.5 million over the $22.8 million reported in the same period last year.

• Graphic advertising and lead generation revenue was $25.3 million, an increase of 103%, or $12.8 million over the $12.5 million reported in the fourth quarter of 2007.

• Hyperlink revenue for the quarter was $13.0 million, an increase of 26%, or $2.7 million over the $10.3 million reported in the same period last year.

• Print publishing and licensing revenue for the fourth quarter was $1.9 million, a decrease of $0.6 million or 23%, compared to the $2.5 million reported in the fourth quarter of 2007.

• Page views for the fourth quarter were 164.7 million, an increase of 33.7 million, or 26%, compared to the 131.0 million reported in the fourth quarter of 2007.

Full Year 2008 Highlights

• Total revenue for the year was $166.9 million, an increase of $71.3 million, or 75%, over the $95.6 million reported in 2007.

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• Adjusted EBITDA for the year was $58.1 million, an increase of $16.5 million, or 40%, over the $41.6 million reported in 2007.

• Online publishing revenue for the full year 2008 was $158.1 million, an increase of $74.4 million, or 89%, over the $83.7 million reported in 2007.

• Graphic advertising and lead generation revenue was $106.7 million, an increase of $59.9 million, or 128%, over the $46.8 million reported in 2007.

• Hyperlink revenue was $51.3 million, an increase of $14.4 million, or 39%, over the $36.9 million reported in 2007.

• Print publishing and licensing revenue in 2008 was $8.8 million, a decrease of 26% from the $11.9 million reported in 2007.

• Page views for 2008 were 687.1 million, an increase of 132.6 million, or 24%, compared to the 554.5 million reported in 2007.

• In January 2009, the company launched the beta version of its new Web site. A preview of the site can be found at http://beta.bankrate.com. A beta site tour can be accessed from the top of the new beta site’s home page.

During 2008, the company acquired or launched:

• InsureMe – Denver-based InsureMe is a leader in the insurance lead generation space.

• Lower Fees – Its Web site, Fee Disclosure, aggregates vendor and fee information across a variety of services associated with mortgage loans.

• CreditCardGuide.com – A Bankrate-owned NCS affiliate, its Web site generates leads from consumers searching for the best credit card offers.

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• Bankaholic.com – A financial information and social networking site which attracts consumers looking for deposit, credit card and other banking products.

• Bankrate China – launched in April 2008 and published in Mandarin, attracts an audience seeking rate and financial content on a variety of topics including, loans, deposits, foreign exchange, credit cards and other financial products.

The company indicated at the time of the acquisitions and launch that it expected InsureMe, CreditCardGuide.com and Bankaholic.com to be accretive within the year, while Bankrate China and Fee Disclosure will require additional investment to support their development.

February 5, 2009 Conference Call Interactive Dial-In and Webcast Information:

To participate in the teleconference please call: (888) 297-0356. International participants should dial: (719) 325-2436. Please access at least 10 minutes prior to the time the conference is set to begin. A Webcast of this call can be accessed at Bankrate’s Web site: http://investor.bankrate.com/.

Replay Information:

A replay of the conference call will be available beginning February 5, 2009 at 7:30 p.m. ET/ 4:30 p.m. PT through February 26, 2009. To listen to the replay, call (888) 203-1112 and use the passcode: 5048250. International callers should dial (719) 457-0820 and use the passcode: 5048250.

Non-GAAP Measures:

To supplement Bankrate’s financial statements presented in accordance with generally accepted accounting principles (“GAAP”), Bankrate uses non-GAAP measures of certain components of financial performance, including EBITDA, Adjusted EBITDA, Adjusted EPS and Operating EPS, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP measures are provided to enhance investors’ overall understanding of Bankrate’s current financial performance and its prospects for the future. Specifically, Bankrate believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results. In addition, because Bankrate has

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historically reported certain non-GAAP results to investors, Bankrate believes the inclusion of non-GAAP measures provides consistency in its financial reporting. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.

About Bankrate, Inc.

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers make informed decisions about their personal finance matters. The company’s flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees.

Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

Certain matters included in the discussion above may be considered to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team. Such forward-looking statements include, without limitation, statements made with respect to future revenue, revenue growth, market acceptance of our products, and profitability. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: the willingness of our advertisers to advertise on our web site, interest rate volatility, our ability to establish and maintain distribution arrangements, our ability to integrate the operations and realize the expected benefits of businesses that we have acquired and may acquire in the future, our ability to maintain the confidence of our advertisers by detecting click-through fraud or unscrupulous advertisers, the effect of unexpected liabilities we assume from our acquisitions, the effects of expanding our operations internationally, the ability of consumers to access our Online Network through non-PC devices, our ability to manage traffic on our Online Network and service interruptions, increased competition and its effect on traffic, advertising rates, margins and market share, our ability to protect our intellectual property, the effects of facing liability for content on our Online Network, the concentration of ownership of our common stock, the fluctuations of our results of operations from period to period, the accuracy of our financial statement estimates and assumptions, our ability to adapt to technological changes, the impact of legislative or regulatory changes affecting our business, changes in consumer spending and saving habits, changes in accounting principles, policies, practices or guidelines, effects of changes in the

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stock market and other capital markets, the strength of the United States economy in general. These and additional important factors to be considered are set forth under “Introductory Note,” “Item 1A. Risk Factors,” “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” and in the other sections of our Annual Report on Form 10-K for the year ended December 31, 2007, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.

-Financial Statements Follow-

###

7

Bankrate, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

	December 31, 2008		December 31, 2007
Assets
Cash and cash equivalents	$	46,055	$	125,058
Accounts receivable, net of allowance for doubtful accounts of approximately $1,566 and $2,290 at December 31, 2008 and 2007, respectively		22,567		19,052
Deferred income taxes, current portion		816		878
Prepaid expenses and other current assets		1,608		5,350
Total current assets		71,046		150,338
Furniture, fixtures and equipment, net		2,521		1,802
Deferred income taxes		7,413		3,671
Intangible assets, net		83,347		27,485
Goodwill		101,856		43,720
Other assets		4,567		1,338
Total assets	$	270,750	$	228,354
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable	$	3,723	$	2,246
Accrued expenses		5,665		8,092
Acquisition earn-out liability		11,750		—
Deferred revenue		1,018		550
Other current liabilities		16		13
Total current liabilities		22,172		10,901
Other liabilities		148		187
Total liabilities		22,320		11,088
Stockholders’ equity:
Preferred stock, 10,000,000 shares authorized and undesignated		—		—
Common stock, par value $.01 per share— 100,000,000 shares authorized; 18,816,986 and 18,876,393 shares issued and outstanding at December 31, 2008 and 2007, respectively		188		189
Additional-paid in capital		219,294		205,306
Retained earnings		28,948		11,771
Total stockholders’ equity		248,430		217,266
Total liabilities and stockholders’ equity	$	270,750	$	228,354

8

Bankrate, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2008		2007		2008		2007
Revenue:
Online publishing	$	38,288	$	22,779	$	158,053	$	83,695
Print publishing and licensing		1,878		2,452		8,802		11,897
Total revenue		40,166		25,231		166,855		95,592
Cost of revenue (1):
Online publishing		13,349		5,816		57,905		15,149
Print publishing and licensing		1,695		2,283		8,190		10,698
Total cost of revenue		15,044		8,099		66,095		25,847
Gross margin		25,122		17,132		100,760		69,745
Operating expenses (1):
Sales		2,304		1,684		9,097		6,384
Marketing		3,806		2,612		13,197		8,475
Product development		1,885		1,328		7,135		4,656
General and administrative		6,722		5,080		26,662		19,853
Impairment charges		2,433		—		2,433		—
Depreciation and amortization		2,668		805		9,134		2,731
		19,818		11,509		67,658		42,099
Income from operations		5,304		5,623		33,102		27,646
Interest income		46		1,727		1,562		6,688
Income before income taxes		5,350		7,350		34,664		34,334
Income tax expense		2,682		3,255		15,043		14,280
Net income	$	2,668	$	4,095	$	19,621	$	20,054
Basic and diluted net income per share:
Basic	$	0.14	$	0.22	$	1.04	$	1.09
Diluted	$	0.14	$	0.21	$	1.01	$	1.04
Shares used in computing basic net income per share		18,797,814		18,688,571		18,848,125		18,423,414
Shares used in computing diluted net income per share		19,133,106		19,505,158		19,498,209		19,356,039
(1)    Includes share-based compensation expense as follows:
Cost of revenue:
Online publishing	$	348	$	562	$	1,798	$	1,984
Print publishing and licensing		41		39		165		159
Other expenses:
Sales		582		473		2,206		1,334
Marketing		171		191		760		630
Product development		247		240		1,068		803
General and administrative		1,432		1,879		7,420		6,299
	$	2,821	$	3,384	$	13,417	$	11,209

9

Bankrate, Inc.

Non-GAAP Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2008		2007		2008		2007
Revenue:
Online publishing	$	38,288	$	22,779	$	158,053	$	83,695
Print publishing and licensing		1,878		2,452		8,802		11,897
Total revenue		40,166		25,231		166,855		95,592
Cost of revenue:
Online publishing		13,001		5,254		56,107		13,165
Print publishing and licensing		1,654		2,244		8,025		10,539
Total cost of revenue		14,655		7,498		64,132		23,704
Gross margin		25,511		17,733		102,723		71,888
Operating expenses:
Sales		1,722		1,211		6,891		5,050
Marketing		3,635		2,421		12,437		7,845
Product development		1,638		1,088		6,067		3,853
General and administrative		5,290		3,201		19,242		13,554
Share-based compensation expense (1)		2,821		3,384		13,417		11,209
Impairment charges		2,433		—		2,433		—
Depreciation and amortization		2,668		805		9,134		2,731
		20,207		12,110		69,621		44,242
Income from operations		5,304		5,623		33,102		27,646
Interest income		46		1,727		1,562		6,688
Income before income taxes		5,350		7,350		34,664		34,334
Income tax expense		2,682		3,255		15,043		14,280
Net income	$	2,668	$	4,095	$	19,621	$	20,054
Basic and diluted net income per share:
Basic	$	0.14	$	0.22	$	1.04	$	1.09
Diluted	$	0.14	$	0.21	$	1.01	$	1.04
Adjusted EPS	$	0.33	$	0.33	$	1.54	$	1.39
Shares used in computing basic net income per share, GAAP basis		18,797,814		18,688,571		18,848,125		18,423,414
Shares used in computing diluted net income per share, GAAP basis		19,133,106		19,505,158		19,498,209		19,356,039
Shares used in computing diluted net income per share, Non-GAAP basis		19,486,435		19,757,598		19,682,211		19,603,203

(1) See reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Income.

10

Bankrate, Inc.

Non-GAAP Measures Reconciliation

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2008			2007			2008			2007
EBITDA-
Income from operations, GAAP basis	$	5,304		$	5,623		$	33,102		$	27,646
Depreciation and amortization		2,668			805			9,134			2,731
EBITDA	$	7,972		$	6,428		$	42,236		$	30,377
Adjusted EBITDA-
Income from operations, GAAP basis	$	5,304		$	5,623		$	33,102		$	27,646
Share-based compensation expense		2,821			3,384			13,417			11,209
Impairment charges		2,433			—			2,433			—
Depreciation and amortization		2,668			805			9,134			2,731
Adjusted EBITDA	$	13,226		$	9,812		$	58,086		$	41,586
Adjusted EPS-
Net income, GAAP basis	$	2,668		$	4,095		$	19,621		$	20,054
Share-based compensation expense, net of tax		2,234			2,345			9,227			7,272
Impairment charges, net of tax		1,460			—			1,460			—
Net income excluding share-based compensation expense and impairment charges-	$	6,362		$	6,440		$	30,308		$	27,326
Adjusted EPS	$	0.33		$	0.33		$	1.54		$	1.39
Operating EPS-
Net income, GAAP basis	$	2,668		$	4,095		$	19,621		$	20,054
Share-based compensation expense, net of tax		2,234			2,345			9,227			7,272
Impairment charges, net of tax		1,460			—			1,460			—
Intangibles amortization, net of tax		1,401			357			4,780			1,126
Interest income, net of tax		(28	)		(1,036	)		(937	)		(4,013	)
Net income excluding share-based compensation expense, impairment charges, intangibles amortization and interest income	$	7,735		$	5,761		$	34,151		$	24,439
Operating EPS	$	0.40		$	0.29		$	1.74		$	1.25
Shares used in computing basic net income per share, GAAP basis		18,797,814			18,688,571			18,848,125			18,423,414
Shares used in computing diluted net income per share, GAAP basis		19,133,106			19,505,158			19,498,209			19,356,039
Impact of applying SFAS No. 123R		353,329			252,440			184,002			247,164
Shares used in computing diluted net income per share, excluding the impact of applying SFAS No. 123R		19,486,435			19,757,598			19,682,211			19,603,203

11

Bankrate, Inc.

Condensed Consolidated Statements of Income

Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended December 31, 2008							Three Months Ended December 31, 2007							Year Ended December 31, 2008							Year Ended December 31, 2007
	GAAP		Adjustments (1)			Non-GAAP		GAAP		Adjustments (1)			Non-GAAP		GAAP		Adjustments (1)			Non-GAAP		GAAP		Adjustments (1)			Non-GAAP
Revenue:
Online publishing	$	38,288	$	—		$	38,288	$	22,779	$	—		$	22,779	$	158,053	$	—		$	158,053	$	83,695	$	—		$	83,695
Print publishing and licensing		1,878		—			1,878		2,452		—			2,452		8,802		—			8,802		11,897		—			11,897
Total revenue		40,166		—			40,166		25,231		—			25,231		166,855		—			166,855		95,592		—			95,592
Cost of revenue:
Online publishing		13,349		(348	)		13,001		5,816		(562	)		5,254		57,905		(1,798	)		56,107		15,149		(1,984	)		13,165
Print publishing and licensing		1,695		(41	)		1,654		2,283		(39	)		2,244		8,190		(165	)		8,025		10,698		(159	)		10,539
Total cost of revenue		15,044		(389	)		14,655		8,099		(601	)		7,498		66,095		(1,963	)		64,132		25,847		(2,143	)		23,704
Gross margin		25,122		389			25,511		17,132		601			17,733		100,760		1,963			102,723		69,745		2,143			71,888
Operating expenses:
Sales		2,304		(582	)		1,722		1,684		(473	)		1,211		9,097		(2,206	)		6,891		6,384		(1,334	)		5,050
Marketing		3,806		(171	)		3,635		2,612		(191	)		2,421		13,197		(760	)		12,437		8,475		(630	)		7,845
Product development		1,885		(247	)		1,638		1,328		(240	)		1,088		7,135		(1,068	)		6,067		4,656		(803	)		3,853
General and administrative		6,722		(1,432	)		5,290		5,080		(1,879	)		3,201		26,662		(7,420	)		19,242		19,853		(6,299	)		13,554
Share-based compensation expense		—		2,821			2,821		—		3,384			3,384		—		13,417			13,417		—		11,209			11,209
Impairment charges		2,433					2,433		—					—		2,433					2,433		—					—
Depreciation and amortization		2,668		—			2,668		805		—			805		9,134		—			9,134		2,731		—			2,731
		19,818		389			20,207		11,509		601			12,110		67,658		1,963			69,621		42,099		2,143			44,242
Income from operations		5,304		—			5,304		5,623		—			5,623		33,102		—			33,102		27,646		—			27,646
Interest income, net		46		—			46		1,727		—			1,727		1,562		—			1,562		6,688		—			6,688
Income before income taxes		5,350		—			5,350		7,350		—			7,350		34,664		—			34,664		34,334		—			34,334
Provision for income taxes		2,682		—			2,682		3,255		—			3,255		15,043		—			15,043		14,280		—			14,280
Net income	$	2,668	$	—		$	2,668	$	4,095	$	—		$	4,095	$	19,621	$	—		$	19,621	$	20,054	$	—		$	20,054
Basic and diluted net income per share:
Basic	$	0.14	$	—		$	0.14	$	0.22	$	—		$	0.22	$	1.04	$	—		$	1.04	$	1.09	$	—		$	1.09
Diluted	$	0.14	$	—		$	0.14	$	0.21	$	—		$	0.21	$	1.01	$	—		$	1.01	$	1.04	$	—		$	1.04
Shares used in computing basic net income per share		18,797,814		—			18,797,814		18,688,571		—			18,688,571		18,848,125		—			18,848,125		18,423,414		—			18,423,414
Shares used in computing diluted net income per share		19,133,106		353,329			19,486,435		19,505,158		252,440			19,757,598		19,498,209		184,002			19,682,211		19,356,039		247,164			19,603,203

(1) Adjustments for the impact of applying SFAS No. 123R

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