10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2012

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM          TO         

Commission file number: 001-35187

The Active Network, Inc.

(Exact name of registrant as specified in its charter)

Delaware	33-0884962
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

10182 Telesis Court, Suite 100

San Diego, California 92121

(Address of Principal Executive Offices) (Zip Code)

(858) 964-3800

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

As of October 29, 2012, the registrant had 60,565,972 shares of Common Stock ($0.001 par value) outstanding.

Table of Contents

The Active Network, Inc.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011	3
Condensed Consolidated Statements of Operations for the three and nine months ended September  30, 2012 and 2011	4
Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September  30, 2012 and 2011	5
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk	28
Item 4. Controls and Procedures	28
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	29
Item 1A. Risk Factors	29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3. Defaults Upon Senior Securities	41
Item 4. Mine Safety Disclosures	41
Item 5. Other Information	41
Item 6. Exhibits	41
SIGNATURES	42

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

	September 30, 2012			December 31, 2011
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	78,499		$	108,699
Restricted cash		875			1,502
Accounts receivable, net		73,806			66,469
Inventories		3,493			1,662
Prepaid expenses and other current assets		8,653			6,179
Total current assets		165,326			184,511
Property and equipment, net		35,042			33,830
Software development costs, net		50,464			45,093
Goodwill		244,108			243,320
Intangible assets, net		69,648			90,340
Other long-term assets		2,310			2,133
Total assets	$	566,898		$	599,227
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	8,063		$	8,516
Registration fees payable		72,657			72,405
Accrued expenses		43,766			41,106
Deferred revenue		68,965			54,919
Current portion of long-term debt		—			5,000
Capital lease obligations, current portion		1,723			3,317
Other current liabilities		4,017			42,613
Total current liabilities		199,191			227,876
Capital lease obligations, net of current portion		1,028			1,652
Other long-term liabilities		6,149			6,147
Deferred tax liability		20,047			16,913
Total liabilities		226,415			252,588
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.001 par value—authorized, 100,000 shares; no shares issued and outstanding		—			—
Common stock, $0.001 par value—authorized, 1,000,000; issued, 61,950 and 58,219; outstanding, 60,174 and 56,443		62			58
Treasury stock (at cost, 1,776 shares)		(11,959	)		(11,959	)
Additional paid-in capital		646,954			625,875
Accumulated other comprehensive income		9,369			7,923
Accumulated deficit		(303,943	)		(275,258	)
Total stockholders’ equity		340,483			346,639
Total liabilities and stockholders’ equity	$	566,898		$	599,227

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net Revenue:
Technology revenue	$	96,170		$	76,341		$	288,445		$	225,002
Marketing services revenue		13,049			13,287			36,776			36,343
Total net revenue		109,219			89,628			325,221			261,345
Cost of net revenue:
Cost of technology revenue		45,571			38,291			142,038			109,986
Cost of marketing services revenue		1,826			1,599			5,257			4,241
Total cost of net revenue		47,397			39,890			147,295			114,227
Gross profit		61,822			49,738			177,926			147,118
Operating expenses:
Sales and marketing		24,154			17,116			73,462			52,970
Research and development		20,624			17,628			62,954			50,181
General and administrative		15,862			11,737			49,309			34,633
Amortization of intangibles		5,492			3,669			16,780			11,090
Total operating expenses		66,132			50,150			202,505			148,874
Loss from operations		(4,310	)		(412	)		(24,579	)		(1,756	)
Interest income		23			32			73			91
Interest expense		(239	)		(109	)		(480	)		(2,799	)
Other income (expense), net		486			(33	)		1,363			109
Loss before provision for income taxes		(4,040	)		(522	)		(23,623	)		(4,355	)
Provision for income taxes		1,982			910			5,062			2,490
Net loss		(6,022	)		(1,432	)		(28,685	)		(6,845	)
Accretion of redeemable convertible preferred stock		—			—			—			(11,810	)
Net loss attributable to common stockholders	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(18,655	)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.10	)	$	(0.03	)	$	(0.49	)	$	(0.62	)
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic and diluted		59,444			53,701			58,259			29,993

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net loss	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(6,845	)
Other comprehensive income (loss):
Foreign currency translation		1,483			(2,720	)		1,446			(1,548	)
Total other comprehensive income (loss)		1,483			(2,720	)		1,446			(1,548	)
Comprehensive loss	$	(4,539	)	$	(4,152	)	$	(27,239	)	$	(8,393	)

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2012			2011
Operating activities
Net loss	$	(28,685	)	$	(6,845	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of property and equipment		23,995			17,344
Amortization of intangible assets		21,132			15,310
Stock-based compensation expense		11,992			4,782
Allowance for doubtful accounts, net of write-offs		(410	)		258
Deferred tax liability		3,046			1,824
Amortization of acquisition-related costs		(898	)		(607	)
Gain on contingent consideration		(1,123	)		—
Accretion of debt discount		—			191
Loss on extinguishment of debt		—			538
Change in operating assets and liabilities, net of effect of acquisitions:
Restricted cash		627			—
Accounts receivable		(6,757	)		(27,223	)
Inventories		(1,831	)		(1,102	)
Prepaid expenses and other assets		(2,692	)		(396	)
Accounts payable		(1,290	)		(636	)
Registration fees payable		252			35,505
Accrued expenses		4,706			3,561
Deferred revenue		13,914			18,089
Other liabilities		1,170			3,146
Net cash provided by operating activities		37,148			63,739
Investing activities
Purchases of property and equipment		(12,665	)		(8,991	)
Capitalized software development		(17,194	)		(13,898	)
Cash paid for acquisitions, net of cash acquired		(38,037	)		(4,082	)
Payment of contingent consideration		—			(625	)
Net cash used in investing activities		(67,896	)		(27,596	)
Financing activities
Proceeds from issuance of common stock		9,247			3,072
Payments on capital lease obligations		(3,552	)		(2,207	)
Proceeds from long-term debt		5,000			—
Repayment of long-term debt		(10,000	)		(41,628	)
Repurchase of unvested common stock		—			(13	)
Net proceeds from initial public offering		—			112,566
Net cash provided by financing activities		695			71,790
Effect of exchange rates on cash		(147	)		(351	)
Net (decrease) increase in cash and cash equivalents		(30,200	)		107,582
Cash and cash equivalents at beginning of period		108,699			31,441
Cash and cash equivalents at end of period	$	78,499		$	139,023
Supplemental disclosures of cash flow information
Cash paid during the period for interest	$	378		$	2,799
Cash paid during the period for taxes	$	922		$	510
Supplemental disclosures of noncash financing and investing activities
Conversion of preferred stock	$	—		$	404,122
Conversion of debt	$	—		$	3,504
Issuance of common stock in connection with acquisitions	$	—		$	8,865
Acquisition of property and equipment under capital leases	$	1,334		$	2,116
Fixed asset purchases included in accounts payable	$	2,025		$	2,149

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

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The Active Network, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Business

The Active Network, Inc., a Delaware corporation, and its subsidiaries (“Active” or the “Company”), provide cloud computing applications for activity and participant management™ that form an online network connecting a fragmented and diverse group of activity and event organizers with a large base of potential participants. The Company’s technology platform transforms the way organizers manage their activities and events by automating online registrations and streamlining other critical management functions, while driving consumer participation to their activities and events.

2. Basis of Presentation and Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Active and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The accompanying condensed consolidated balance sheet as of September 30, 2012, the condensed consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011, the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2012 and 2011 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2012 and 2011 are unaudited. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to the three and nine months ended September 30, 2012 and 2011 are unaudited. The unaudited condensed consolidated interim financial statements and notes hereto have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial condition, results of operations and comprehensive loss for the three and nine months ended September 30, 2012 and 2011 and cash flows for the nine months ended September 30, 2012 and 2011; however, they do not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). The results of operations for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for fiscal 2012 or for any other interim period or for any other future year. These unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes technology revenue primarily from registration fees and related hosting and implementation services. The Company also records revenue for marketing services. The Company recognizes revenue when a signed contract or other persuasive evidence of an arrangement exists, the services have been rendered, the fee is fixed or determinable, and collection of the resulting receivable is probable. The Company’s arrangements do not contain general rights of return.

The Company assesses whether the fee is fixed or determinable, and collection is probable, at the time of the transaction. In determining whether the fee is fixed or determinable, the Company compares the payment terms of the transaction to its standard payment terms and whether payment is free of contingencies or significant uncertainties. If a significant portion of the fee is considered to have extended payment terms or the fee is subject to adjustment, the Company accounts for the fee as not being fixed or determinable and recognizes revenue as the payments become due. The Company assesses whether collection is probable based on a number of factors, including the customer’s past transaction history and credit-worthiness. The Company does not request collateral from its customers. If the Company determines that collection of a fee is not probable, the Company defers the fee and recognizes revenue at the time collection becomes probable, which is generally upon receipt of cash.

The Company generally recognizes registration revenue when received, net of registration fees paid to event organizers, where the Company is acting as an agent of event organizers. Net registration revenue comprised 65% and 67% of total net revenue for the three months ended September 30, 2012 and 2011, respectively and 66% and 69% for the nine months ended September 30, 2012 and 2011, respectively.

In certain circumstances, the Company pre-purchases registrations from event organizers. The decision to record revenue gross versus net is a matter of significant judgment that is dependent upon the relevant facts and circumstances. The Company evaluates the presentation of revenue on a gross or net basis based on the qualitative weight of various indicators in the authoritative accounting guidance in order to determine whether the Company recognizes (a) the gross amount billed to a customer because it has earned revenue from the sale of the goods or service or (b) the net amount retained (that is, the amount billed to a customer less the amount paid to a supplier because it has earned a commission or fee). Registration revenue associated with these transactions is recorded on a gross basis, as the Company bears inventory risk, has latitude in establishing price, bears credit risk and assumes many of the responsibilities of the primary obligor, except for the actual fulfillment of the event.

For the sale of registrations recorded on a gross basis, cash collected prior to an event is recorded as deferred revenue until the event occurs. Revenue recognized on a gross basis associated with these transactions comprised 2.0% and 1.1% of total net revenue during the three months ended September 30, 2012 and 2011, respectively and 1.3% and 0.4% during the nine months ended September 30, 2012 and 2011, respectively.

On January 1, 2011, the Company adopted the new accounting standard for multiple deliverable revenue arrangements which provides guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated. This guidance requires an entity to allocate revenue in an arrangement using the “best estimate of selling price” (“BESP”) of deliverables if it does not have vendor-specific objective evidence (“VSOE”) of selling price based on historical stand-alone sales or third-party evidence (“TPE”) of selling price. Due to the unique nature of some of the Company’s multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales using VSOE or TPE, therefore, the Company may use its best estimate to establish selling prices for these arrangements under the new accounting standard. The Company establishes its best estimates within a range of selling prices considering multiple factors including, but not limited to, factors such as customer base, size of transaction, available media inventory,

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pricing strategies and market conditions. The Company believes the use of the BESP allows revenue recognition in a manner consistent with the underlying economics of the transaction. The adoption of this amended standard did not have a significant impact on the Company’s revenue recognition for multiple deliverable revenue arrangements.

Many customers who use the Company’s hosting services or license its software also enter into separate professional services and training arrangements with the Company. In addition, certain of the Company’s hosting agreements include up-front payments for implementation of hosting services. In determining whether professional services and implementation revenue should be accounted for separately, the Company evaluates (among other factors): the nature of the deliverables; whether they are ready for their intended use by the customer upon receipt; the nature of the implementation services; the availability of services from other vendors; whether the timing of payments for license revenue is coincident with performance of services and whether milestones or acceptance criteria exist that affect the realizability of the hosting or software license fee. For up-front fees and other revenues received for implementation services associated with hosting arrangements, the Company defers the related revenue and records revenue over the term of the hosting contract since the implementation and hosting do not have stand-alone value. For license and professional services that qualify for separate accounting, such as arrangements that involve off-the-shelf software, the services do not include significant alterations to the features and functionality of the software, the services are primarily comprised of implementation services and fair value exists for the undelivered elements, software revenue is generally recognized when the software is delivered and service revenue is recognized when the services are performed.

For license and professional service arrangements that do not qualify for separate accounting, such as arrangements that involve significant modification or customization of the software, arrangements that include milestones or customer specific acceptance criteria, or where payment for the software license is tied to the performance of professional services, software license revenue is generally recognized together with the professional services revenue when services have been rendered. A majority of such arrangements are recognized together with the professional services. Penalties from customers related to power outages or other technical disruptions are recognized in the period in which such amounts are incurred based on the Company’s estimated liability and are recorded as a reduction of revenue or an increase to cost of revenue. If the total estimated costs to complete a project exceed the total contract amount, indicating a loss, the entire anticipated loss is recognized currently.

Maintenance revenue consists of fees for providing software updates on a when-and-if available basis and technical support to software products (“post contract customer support” or “PCS”). Maintenance revenue is recognized ratably over the terms of the agreement.

Marketing services revenue consists of online and integrated field marketing campaigns and membership programs. The Company’s online marketing services include online advertising, e-mail marketing and targeted newsletter promotions. Banner, button and e-mail advertisements are impression-based, with the revenue based on the number of times the advertisement is displayed or delivered over the contract period. Impression-based contract revenue is primarily recognized as the impression is displayed on the Company’s web site or delivered by e-mail to the intended addressee. The Company’s field marketing services include event promotions, sponsorships and sample placements and are defined contractually with individual customers. Field marketing revenue is recognized over the term of the contract or when revenue is earned based on the performance of services associated with a series of events. Revenue from membership programs is recognized over the term of the membership period.

Significant management judgments and estimates are made in connection with determination of the revenue to be recognized in any accounting period. If the Company makes different judgments or utilized different estimates for any period, material differences in the amount and timing of revenue recognized could result.

3. Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued an update to increase the prominence of items reported in other comprehensive income. This update eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity and requires an entity to present comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance is effective for interim and annual periods beginning after December 15, 2011, and is to be applied retrospectively. The adoption of this guidance affected the presentation of other comprehensive income but did not affect the Company’s financial position or results of operations.

In September 2011, the FASB issued revised guidance to simplify how entities test goodwill for impairment. Under the revised guidance, entities have the option to first assess qualitative factors 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. If, after assessing qualitative factors, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The updates are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 with early adoption permitted. The Company will adopt this revised guidance during the annual goodwill impairment test in the year ended December 31, 2012.

In December 2011, the FASB issued an amendment to the accounting guidance for disclosure of offsetting assets and liabilities and related arrangements. The amendment expands the disclosure requirements in that entities will be required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The amendment is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013, and will be applied retrospectively. The Company is currently evaluating the impact of this accounting pronouncement on its financial statements.

In July 2012, the FASB issued an amendment that simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill. The amendment allows an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is “more likely than not” that the asset is impaired. The amendment is effective for fiscal years and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company is currently evaluating the impact of this accounting pronouncement on its financial statements.

4. Business Combinations

Acquisition of StarCite, Inc.

On December 30, 2011, the Company completed the acquisition of all of the outstanding shares of StarCite, Inc. (“StarCite”), a provider of a technology platform that delivers content and services for meetings and event planning to corporations, hotels, venues and meetings suppliers for total consideration of $57.6 million in cash, shares of the Company’s common stock, and contingently issuable shares of the Company’s common stock. The acquisition enables the Company to provide an integrated solution for the events space and broaden its customer base.

Total consideration comprised $38.1 million in cash, 1,350,000 shares of common stock with a fair value of approximately $18.4 million and 150,000 shares of contingently issuable common stock with an acquisition date fair value of approximately $1.1 million to be issued in the event that the Company’s shares of common

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stock did not close trading at or above $15.00 per share on the New York Stock Exchange for at least three consecutive days at any time during the sixty day period following the effective date of a registration statement filed to register the shares issued, pursuant to the agreement and plan of merger. The estimated fair value of the contingent consideration was determined using the Monte Carlo Simulation approach, which involves key assumptions including the estimated contingency period and volatility of the Company’s common stock to assess the probability of achieving the targeted price and was included in other current liabilities in the consolidated balance sheets at December 31, 2011.

The Company’s common stock traded at or above $15.00 per share for three consecutive days subsequent to April 11, 2012, the effective registration date of the shares; accordingly the contingently issuable shares were not issuable to the former StarCite security holders. Immediately prior to the effective date of the registration statement, the estimated fair value of the contingent consideration was approximately $38,000. The change in the estimated fair value of the contingent consideration was recorded in other income in the Company’s condensed consolidated statements of operations and the remaining fair value was transferred from other current liabilities to equity.

The acquisition agreement included an initial escrow of approximately $0.3 million in cash to cover potential expenses of the security holders’ agent and 300,000 common shares valued at approximately $4.1 million, based on the closing price of the Company’s common stock on the last trading day of fiscal 2011, to satisfy any claims under the indemnification provisions of the agreement for a period of 12 months following the acquisition date. During the nine months ended September 30, 2012, 16,261 escrow shares valued at approximately $0.2 million were cancelled in order to satisfy indemnification claims related to the acquisition. The cancellation of these shares was recorded as a purchase price adjustment with a corresponding reduction to goodwill.

As of the date of this Quarterly Report on Form 10-Q, the Company is still finalizing the estimated fair value of assets acquired and liabilities assumed. The primary areas of those preliminary estimates that are not yet finalized related to certain tangible liabilities acquired and identifiable intangible assets, which is expected to be completed during fiscal 2012. The estimated fair values of assets acquired and liabilities assumed for the StarCite acquisition are as follows (in thousands):

Cash	$	572
Restricted cash		692
Accounts receivable		14,566
Prepaid and other assets		1,301
Fixed assets		1,912
Goodwill		21,745
Intangible assets		36,500
Accounts payable		(1,398	)
Accrued expenses		(5,459	)
Deferred revenue		(11,286	)
Capital lease obligations		(480	)
Other liabilities		(528	)
Unfavorable leases		(695	)
Total purchase price	$	57,442

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	5,100		9 years
Customer relationships		17,300		9 years
Customer contracts		6,800		3 years
Complete technology		6,500		9 years
Non-compete agreements		800		1 year
Total intangible assets	$	36,500

Goodwill of $21.7 million, none of which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from StarCite. The carrying amount of goodwill is allocated to the technology operating segment of the Company.

The Company also entered into termination agreements with certain StarCite executives in connection with the acquisition resulting in an expense of approximately $1.9 million. These expenses were treated as acquisition-related expenses and were included in the consolidated statements of operations during fiscal 2011.

Pro Forma Financial Information (unaudited)

The following table presents the unaudited pro forma results for the three and nine months ended September 30, 2012 and 2011. The unaudited pro forma financial information combines the results of operations of the Company and StarCite as though the companies had been combined as of the beginning of fiscal 2011. The pro forma financial information for all periods presented also includes the business combination accounting effects resulting from this acquisition including amortization charges from acquired intangible assets as though StarCite was combined as of the beginning of fiscal 2011. The pro forma financial information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition of StarCite had taken place at the beginning of fiscal 2011.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)
	(In thousands, except per share data)
Net revenue	$	109,219		$	101,084		$	325,221		$	294,763
Net loss attributable to common stockholders	$	(6,022	)	$	(3,323	)	$	(28,685	)	$	(26,308	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.10	)	$	(0.06	)	$	(0.49	)	$	(0.84	)

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Acquisition of RTP, LLC

In November 2011, the Company completed the purchase of all of the outstanding units of RTP, LLC (“RTP”), a provider of integrated resort software and solutions. The acquisition enables the Company to strengthen its position as a technology leader and broaden its customer base into the resort space. The purchase consideration was approximately $21.5 million in cash.

The estimated fair values of assets acquired and liabilities assumed for the RTP acquisition are as follows (in thousands):

Cash	$	903
Accounts receivable		5,648
Prepaid and other assets		1,050
Fixed assets		309
Goodwill		3,394
Intangible assets		15,960
Accounts payable		(2,821	)
Accrued expenses		(435	)
Deferred revenue		(2,375	)
Other liabilities		(133	)
Total purchase price	$	21,500

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	1,350		5 years
Customer relationships		9,700		13 years
Customer contracts		510		2 years
Complete technology		2,900		9 years
Non-compete agreements		1,500		3 years
Total intangible assets	$	15,960

Goodwill of $3.4 million, which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from RTP. Approximately $3.0 million and $0.4 million of the carrying amount of goodwill are allocated to the technology and marketing services operating segments of the Company, respectively.

Acquisition of ServiceU

In October 2011, the Company acquired all of the outstanding common shares of ServiceU, a provider of web-based solutions for giving, event registration, ticketing, calendaring and resource management. The acquisition enables the Company to strengthen its position as a technology leader and broaden its customer base in the faith space. The purchase consideration was approximately $11.1 million in cash.

The estimated fair values of assets acquired and liabilities assumed for the ServiceU acquisition are as follows (in thousands):

Cash	$	13
Accounts receivable		201
Prepaid and other assets		51
Fixed assets		249
Goodwill		4,388
Intangible assets		10,377
Accounts payable		(21	)
Accrued expenses		(132	)
Deferred revenue		(42	)
Capital lease obligations		(120	)
Deferred tax liability		(3,914	)
Total purchase price	$	11,050

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The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	250		2 years
Customer relationships		8,300		14 years
Complete technology		1,229		6 years
Non-compete agreements		598		3 years
Total intangible assets	$	10,377

Goodwill of $4.4 million, none of which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from ServiceU. The carrying amount of goodwill is allocated to the technology operating segment of the Company.

Acquisition of Fellowship Technologies, Inc.

In February 2011, the Company acquired Fellowship Technologies, Inc. (“Fellowship”), a provider of web-based software to religious institutions. The acquisition enables the Company to strengthen its position as a technology leader and broaden its customer base in the faith space. The purchase consideration was approximately 1,125,000 shares of the Company’s common stock valued at approximately $8.9 million.

The estimated fair values of assets acquired and liabilities assumed for the Fellowship acquisition are as follows (in thousands):

Cash	$	520
Accounts receivable		195
Prepaid and other assets		15
Fixed assets		530
Security deposits		58
Goodwill		5,680
Intangible assets		3,568
Accounts payable		(101	)
Deferred revenue		(528	)
Capital lease obligations		(481	)
Other liabilities		(187	)
Unfavorable leases		(404	)
Total purchase price	$	8,865

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	197		3 years
Customer contracts/relationships		2,730		4 years
Complete technology		641		4 years
Total intangible assets	$	3,568

Goodwill of $5.7 million, which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from Fellowship. The carrying amount of goodwill is allocated to the technology operating segment of the Company.

Other Business Combinations

During the year ended December 31, 2011, the Company acquired operations from two other businesses including a provider of web-based church management solutions and a provider of online registration for endurance events. The Company acquired the assets of these two businesses in exchange for $4.6 million in cash. These acquisitions enable the Company to strengthen its position as a technology leader and broaden its customer base in the faith and endurance spaces. The estimated fair values of assets acquired and liabilities assumed were as follows (in thousands):

Cash	$	14
Accounts receivable		145
Prepaid and other assets		12
Goodwill		1,362
Intangible assets		3,427
Accounts payable		(20	)
Accrued expenses		(27	)
Deferred revenue		(296	)
Total purchase price	$	4,617

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The acquisitions were accounted for as purchase business combinations. The excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill, which is deductible for tax purposes and is allocated to the technology operating segment of the Company. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Customer contracts/relationships	$	3,392		3 years
Complete technology		35		3 years
Total intangible assets	$	3,427

5. Fair Value Measurements

FASB guidance for fair value measurements clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The Company has no financial assets and liabilities that are measured at fair value on a recurring basis at September 30, 2012.

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2011 are as follows (in thousands):

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Accrued liabilities:
Contingent consideration associated with business combination (Note 4)	$	—	$	—	$	1,124	$	1,124

Level 3 liabilities include contingent consideration payables to selling shareholders arising from the acquisition of StarCite, the values of which were determined based on the probability of achieving specific targets. Any change in the fair value of the contingent milestone consideration subsequent to the acquisition date is recognized in earnings. This fair value measurement is based on inputs not observed in the market that are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value.

The following table provides a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended September 30, 2012 (in thousands):

	Contingent Consideration
Balance at December 31, 2011	$	1,124
Changes in fair value of contingent consideration		(1,123	)
Contingent consideration transferred to equity classification (Note 4)		(1	)
Balance at September 30, 2012	$	—

6. Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable, net, by category is as follows (in thousands):

	September 30, 2012			December 31, 2011
Accounts receivable	$	56,754		$	54,101
Registration receivable		18,280			14,006
Less: Allowance for doubtful accounts		(1,228	)		(1,638	)
Accounts receivable, net	$	73,806		$	66,469

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7. Property and Equipment

Property and equipment by category is as follows (in thousands):

	September 30, 2012			December 31, 2011
Computer and software	$	74,554		$	63,947
Furniture and fixtures		9,654			10,586
Leasehold improvements		5,779			3,438
Property and equipment		89,987			77,971
Less: Accumulated depreciation		(54,945	)		(44,141	)
Property and equipment, net	$	35,042		$	33,830

Depreciation expense was $3.9 million and $3.5 million for the three months ended September 30, 2012 and 2011, respectively, and $11.6 million and $10.3 million for the nine months ended September 30, 2012 and 2011, respectively.

Included in fixed assets are $10.9 million and $9.5 million of equipment under capital leases at September 30, 2012 and December 31, 2011. Accumulated amortization of assets under capital leases totaled $7.2 million and $5.5 million at September 30, 2012 and December 31, 2011, respectively.

8. Software Development Costs

Capitalized software development costs are as follows (in thousands):

	September 30, 2012			December 31, 2011
Software development costs	$	83,580		$	65,696
Less: Accumulated amortization		(33,116	)		(20,603	)
Software development costs, net	$	50,464		$	45,093

Amortization expense was $4.2 million and $2.6 million for the three months ended September 30, 2012 and 2011, respectively, and $12.4 million and $7.0 million for the nine months ended September 30, 2012 and 2011, respectively.

9. Goodwill

The change in the carrying amount of goodwill for the nine months ended September 30, 2012 is as follows (in thousands):

	Technology			Marketing Services		Total
Balance at December 31, 2011	$	230,602		$	12,718	$	243,320
Adjustments related to prior year acquisitions		(122	)		—		(122	)
Effect of exchange rate changes		910			—		910
Balance at September 30, 2012	$	231,390		$	12,718	$	244,108

Adjustments to goodwill during the nine months ended September 30, 2012 represent adjustments for indemnification claims recorded during the year that related to acquisitions made in the preceding year. These adjustments to goodwill were not material to the Company’s prior and current period financial statements or results of operations.

10. Intangible Assets

Intangible assets are amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets.

Certain of the Company’s intangible assets were recorded in foreign currencies and both the gross carrying amounts and accumulated amortization are subject to foreign exchange adjustments. The carrying values of amortized intangible assets are as follows (in thousands):

	September 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intellectual property	$	28,277	$	(16,348	)	$	11,929	$	36,609	$	(20,351	)	$	16,258
Non-compete agreements		2,898		(1,258	)		1,640		3,850		(1,085	)		2,765
Customer relationships		46,295		(11,418	)		34,877		67,891		(26,799	)		41,092
Trade names		13,471		(3,692	)		9,779		16,568		(5,566	)		11,002
Customer contracts		47,178		(35,755	)		11,423		52,219		(32,996	)		19,223
Intangible assets	$	138,119	$	(68,471	)	$	69,648	$	177,137	$	(86,797	)	$	90,340

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Amortization of intellectual property is recorded in cost of revenue, while the amortization of other acquired intangible assets is included in operating expenses. The following table summarizes the classification of amortization expense of acquired intangible assets for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of technology revenue	$	1,323	$	1,267	$	4,034	$	3,820
Cost of marketing services revenue		85		127		318		400
Operating expenses		5,492		3,669		16,780		11,090
Total amortization of acquired intangible assets	$	6,900	$	5,063	$	21,132	$	15,310

11. Accrued Expenses

The following table presents the detail of accrued expenses for the periods presented (in thousands):

	September 30, 2012		December 31, 2011
Accrued compensation	$	21,769	$	17,875
Sales and other foreign taxes		7,724		5,006
Accrued penalties (Note 13)		1,496		3,154
Accrued rebates		2,731		1,846
Other accrued expenses		10,046		13,225
Accrued expenses	$	43,766	$	41,106

As of September 30, 2012, accrued compensation was comprised of accrued salaries and accrued personal time off of $15.4 million, accrued bonuses of $3.3 million, accrued self-insurance of $1.3 million, amounts payable for 401K contributions of $0.3 million, and accumulated employee deductions for stock purchase under the Company’s Employee Stock Purchase Plan of $1.5 million. As of December 31, 2011, accrued compensation was comprised of accrued salaries and accrued personal time off of $11.7 million, accrued bonuses of $4.9 million, accrued self-insurance of $0.8 million, amounts payable for 401K contributions of $0.1 million, and accumulated employee deductions for stock purchase under the Company’s Employee Stock Purchase Plan of $0.4 million.

12. Long-Term Debt

2011 Credit Agreement

In December 2011, the Company entered into a five-year, senior secured, revolving credit facility, with certain institutional lenders, for an initial aggregate principal amount of $50 million (the “Credit Facility”). The Company has the ability to issue up to $15 million for letters of credit and $5 million for swing line loans under the Credit Facility. The Credit Facility also includes an “accordion” feature which allows the Company, subject to certain terms and conditions, to increase the lending commitments by up to $25 million. The Credit Facility has a maturity date of December 16, 2016, but the outstanding amounts may be prepaid at any time without penalty or premium (except for certain customary break funding payments in connection with LIBOR loans) and is available to fund acquisitions and ongoing operations.

In July 2012, the Company amended the Credit Facility by increasing the aggregate principal amount to $100 million, increasing the ability to issue letters of credit by up to $25 million and increasing the “accordion” feature by up to $50 million.

Any advance under the Credit Facility will accrue interest at rates per annum that are equal to, based on certain conditions, either (a) 1.5% above the applicable LIBOR rate, or (b) 0.5% above (i) the greatest of (x) the prime rate, (y) the federal funds effective rate plus 0.5% or (z) a daily rate equal to one-month LIBOR plus 1.00%. The unused portion of the Credit Facility will also be subject to an unused fee that will be calculated at a per annum rate of 0.25%. The interest rate under the Credit Facility was 1.86% and 3.75% as of September 30, 2012 and December 31, 2011, respectively.

Under the Credit Facility, the Company is required to comply with certain financial covenants and ratios, including a quarterly consolidated leverage ratio of consolidated funded indebtedness to EBITDA of not more than 2.5 to 1.0 and a quarterly consolidated fixed charge coverage ratio of not less than 1.5 to 1.0. Substantially all of the Company’s tangible and intangible assets are considered collateral security under the Secured Credit Facility. As of September 30, 2012 and December 31, 2011, respectively, the Company was in compliance with all specified financial covenants.

The Company had no amounts outstanding and $5.0 million outstanding under the Credit Facility as of September 30, 2012 and December 31, 2011, respectively. Amounts available under the Credit Facility were $93.0 million and $39.8 million as of September 30, 2012 and December 31, 2011, respectively, net of $7.0 and $5.2 million in outstanding letters of credit, respectively.

13. Commitments and Contingencies

Operating Leases

The Company leases its office and datacenter facilities under non-cancelable leases that expire at various times through 2021. The Company is also responsible for certain real estate taxes, utilities and maintenance costs on its office facilities. Rent expense was approximately $3.7 million and $2.9 million for the three months ended September 30, 2012 and 2011, respectively, and $10.7 million and $8.3 million for the nine months ended September 30, 2012 and 2011, respectively.

Guarantees

The Company enters into arrangements with third-party customers to guarantee performance by the Company. The Company may provide a corporate guarantee, irrevocable letter of credit, surety bond or any other form of guarantee acceptable to the third-party customer. As of September 30, 2012 and December 31, 2011, the Company had guarantees of $10.1 million and $14.2 million, respectively.

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Self-Insured Health Plan

The Company is generally self-insured for losses and liabilities related to health benefits. The Company’s self-insurance accruals are based on estimates, and while the Company believes that the amounts accrued are adequate, the ultimate claims may be in excess of the amounts provided. The Company’s accrued health benefits liability was $1.3 million and $0.8 million at September 30, 2012 and December 31, 2011, respectively.

Sales and Use Tax

The Company accrues for sales and use taxes in certain states. The Company estimates a potential liability in states where it had not previously remitted these taxes. The Company has established a reserve for estimated claims from states where sales and use tax had not been remitted of $5.0 million and $4.3 million at September 30, 2012 and December 31, 2011, respectively.

Indemnification

The Company enters into indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to its technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements.

The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.

Penalty Accruals

In the normal course of business, the Company may incur penalties from its customers for various technical disruptions. The Company records a liability, on a contract-by-contract basis, for specific matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. The Company subsequently reduces the liability as these matters are settled. Penalties are reflected as a reduction in revenue or as an increase in cost of revenue in the Company’s consolidated statement of operations.

The Company maintains a liability of $1.5 million and $3.2 million at September 30, 2012 and December 31, 2011, respectively, as a result of this potential exposure. The decrease in the liability for the nine months ended September 30, 2012 primarily relates to a settlement with a customer for approximately $1.5 million, which reduced the accounts receivable due from the customer, as well as the liability associated with the penalty accrual.

Security Breach

In December 2010, the Company became aware of a security breach in one of the legacy computer systems it acquired in an acquisition. This breach could potentially result in an unauthorized acquisition and use of credit card data and could result in assessments or damages from claims asserted by organizers or participants. The Company has performed an internal investigation to assess the potential exposure of the breach and determined it to be insignificant; accordingly, no amounts have been accrued as of September 30, 2012 or December 31, 2011. To date the Company has paid approximately $0.2 million in assessments associated with this breach, of which $0.1 million is reimbursable under the Company’s insurance policy.

14. Legal Proceedings

Monster Litigation

On December 16, 2011, Monster Worldwide, Inc. (“Monster”) filed a complaint in the United States District Court for the Southern District of New York against a former Monster employee and current Active executive (the “Active Executive”). The complaint asserts various claims contending that the Active Executive violated the non-solicitation terms in certain of the Active Executive’s agreements with Monster by soliciting and hiring two former technology employees of Monster who are current employees of the Company. On the basis of these claims, Monster seeks monetary damages for the value of restricted stock originally granted by Monster to the Active Executive, attorney’s fees and a permanent injunction against further solicitation and hiring of Monster personnel.

On February 7, 2012, Monster filed an amended complaint to add additional allegations and an alternative request for damages against the Active Executive should it not be able to recover the value of restricted stock granted to the Active Executive.

                On June 7, 2012, Monster filed a second amended complaint to add allegations and claims against (1) the Company; and (2) a second former Monster employee and current Active employee. The claims against this second employee are similar to the claims alleged in the original complaint against the Active Executive and arise from alleged violations of this second employee’s non-solicitation agreement with Monster claiming the second employee solicited for hire a third former employee of Monster that is a current employee of the Company. The Company was added as a defendant to the complaint for allegedly interfering with the non-solicitation agreements by hiring the three former employees of Monster. Additionally, a new claim for breach of fiduciary duty against the Active Executive was also added.

On August 23, 2012, Monster filed a third amended complaint adding punitive damages against (1) the Active Executive; and (2) the Company.

On September 12, 2012, the Company, the Active Executive and the second employee filed a motion requesting summary dismissal of all claims. Monster filed its opposition to this motion on October 4, 2012. The Company, the Active Executive and the second employee filed their reply to Monster’s opposition on October 19, 2012.

The Company believes that Monster’s claims are without merit and will defend the actions vigorously. While the Company believes it has valid defenses to Monster’s claims, due to the inherently unpredictable nature of litigation, the Company cannot make any predictions as to the outcome of this litigation. Because the case is at a pre-trial stage, the Company is unable to estimate a range of loss, if any, at this time.

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15. Stock-Based Compensation

The Company’s stock-based compensation is comprised of stock options, stock options with market conditions, restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”).

Stock Options

The Company granted 1,350,754 stock options during the nine months ended September 30, 2012, of which 749,839 stock options contained a market condition. Stock option activity for the nine months ended September 30, 2012 is as follows:

Stock Options	Number of Shares Underlying Options			Weighted- Average Exercise Price
Outstanding at December 31, 2011		11,604,808		$	3.71
Granted		1,350,754			14.26
Exercised		(3,593,927	)		2.32
Cancelled or expired		(366,193	)		8.67
Outstanding at September 30, 2012		8,995,442		$	5.65

The fair value of stock options granted that contain only a service condition as a requirement for vesting, was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
Volatility		—		48.7-49.1	%		51.8-52.8	%		48.5-49.2	%
Expected dividend yield		—		—			—			—
Risk-free rate		—		0.9-1.1	%		0.7-1.1	%		0.9-2.2	%
Expected term (in years)		—		4.9			5.0			4.9

The fair value of stock options granted that contain a market condition was estimated on the date of grant using the Monte Carlo Simulation valuation model, which estimates the potential outcome of reaching the market condition based on simulated future stock prices, with the following assumptions: contractual life of six years; expected volatility of 47% and risk free interest rate of 0.74%. These options vest over four years and are exercisable if specified stock prices are achieved.

Total unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options is approximately $18.0 million as of September 30, 2012 and is expected to be recognized over a weighted-average period of 2.7 years.

Restricted Stock Units

RSU and PRSU activity for the nine months ended September 30, 2012 is as follows:

RSUs and PRSUs	Number of RSUs			Weighted- Average Grant Date Fair Value of RSUs		Number of PRSUs		Weighted- Average Grant Date Fair Value of PRSUs
Unvested at December 31, 2011		663,127		$	15.23		—	$	—
Granted		1,120,027			16.01		791,632		12.04
Released		(100,532	)		16.65		—		—
Cancelled or expired		(41,057	)		17.04		—		—
Unvested at September 30, 2012		1,641,565		$	15.63		791,632	$	12.04

The fair value of RSUs and PRSUs is based on the stock price on the date of grant. The RSUs vest over a four year period following the date of grant. The PRSUs vest over a two to four year period following the date of grant, subject to achievement of performance objectives and the participant’s continued service through the applicable vesting dates.

The number of PRSUs granted in the table above represents the maximum number of awards that could ultimately be issued if certain Company financial targets, as defined under the agreements, are achieved. The shares, if any, will be issued on a one-for-one basis following the end of the applicable performance and service periods. Compensation cost associated with the PRSUs is recognized when the performance metrics are determined to be probable of achievement over the requisite service periods.

During the three months ended September 30, 2012, 60,378 PRSUs that previously required cash settlement on the vest date were modified to allow for settlement in cash or shares at the election of the Company. Compensation cost associated with these awards is measured using the fair value of the Company’s common stock on the modification date.

At September 30, 2012, the remaining unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs is $21.2 million and is expected to be recognized over a weighted-average period of 3.1 years. The remaining unrecognized compensation cost associated with the maximum number of PRSUs that could ultimately be issued of $9.5 million is expected to be recognized if and when the performance conditions are estimated to be probable of achievement over the remaining service period.

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Employee Stock Purchase Plan

The Company issued 77,345 shares for approximately $0.9 million in employee contributions during the nine months ended September 30, 2012 under the Company’s 2011 Employee Stock Purchase Plan (“2011 ESPP”).

The fair value of each purchase option under the 2011 ESPP is estimated at the beginning of each six-month offering period using the Black-Scholes model with the following weighted-average assumptions:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Volatility		44.5	%		47.6	%		44.5-57.9	%		47.6	%
Expected dividend yield		—			—			—			—
Risk-free rate		0.2	%		0.1	%		0.2	%		0.1	%
Expected term (in years)		0.5			0.3			0.5			0.3

As of September 30, 2012, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the 2011 ESPP was $0.1 million, which is expected to be recognized over a weighted-average period of less than six months.

Stock-Based Compensation Expense

The following table presents the effects of stock-based compensation expense related to stock-based awards to employees in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of revenue	$	222	$	52	$	474	$	107
Sales and marketing		1,007		277		2,709		1,040
Research and development		662		315		1,782		636
General and administrative		2,770		1,326		7,027		2,999
Total stock-based compensation	$	4,661	$	1,970	$	11,992	$	4,782

The components of stock-based compensation expense were as follows (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012		2011
Stock options	$	2,051		$	1,726	$	6,057	$	4,479
Restricted stock		2,418			135		5,251		194
PRSUs		(18	)		—		105		—
ESPP		210			109		579		109
Total stock-based compensation	$	4,661		$	1,970	$	11,992	$	4,782

16. Net Loss Attributable to Common Stockholders

Basic net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Prior to the IPO, holders of Redeemable Convertible Preferred shares were each entitled to receive 8% per annum cumulative dividends, payable prior and in preference to any dividends on any other shares of the Company’s capital stock.

Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period.

The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net loss per share:
Net loss	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(6,845	)
Less: accretion of redeemable convertible preferred stock		—			—			—			(11,810	)
Net loss attributable to common stockholders	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(18,655	)
Weighted-average common shares outstanding:
Basic and diluted		59,444			53,701			58,259			29,993
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.10	)	$	(0.03	)	$	(0.49	)	$	(0.62	)

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Potentially dilutive securities not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Options to purchase common stock and common stock subject to repurchase		8,959,554		12,809,899		10,089,241		12,780,410
Restricted stock		1,699,882		144,241		1,323,864		65,862
Employee stock purchase plan shares		119,529		—		96,543		—
Convertible Preferred		—		—		—		4,645,498
Redeemable Convertible Preferred		—		—		—		13,621,873
Common stock warrants		634		5,359		634		134,519
Common stock issuable upon conversion of debt		—		—		—		155,409
		10,779,599		12,959,499		11,510,282		31,403,571

17. Segment Information

The Company’s Chief Executive Officer who is considered to be the chief operating decision maker (“CODM”) reviews financial information presented on a consolidated basis, accompanied by information about operating segments for purposes of making operating decisions and assessing financial performance. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance.

The Company determined its operating segments to be technology and marketing services. Technology derives substantially all of its revenue from technology fees, software licensing, installation, training, maintenance, and hosting subscriptions. Marketing services derives substantially all of its revenue from online services, field marketing services, and membership programs.

The Company evaluates the performance of its operating segments based on net revenues and operating income before interest, taxes, depreciation, amortization and stock-based compensation expense.

The Company does not allocate most of its assets, depreciation and amortization expense, stock-based compensation expense, interest income, interest expense or income tax expense by segment. Accordingly, the Company does not report such information.

Summarized information by segment is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net revenue by segment:
Technology	$	96,170	$	76,341	$	288,445	$	225,002
Marketing services		13,049		13,287		36,776		36,343
Total net revenue	$	109,219	$	89,628	$	325,221	$	261,345

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs:
Technology	$	20,728		$	17,034		$	52,736		$	51,050
Marketing services		5,341			5,710			12,143			15,333
Total segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs		26,069			22,744			64,879			66,383
Depreciation and amortization		(15,033	)		(11,146	)		(45,127	)		(32,654	)
Stock-based compensation expense		(4,661	)		(1,970	)		(11,992	)		(4,782	)
Unallocated corporate costs		(10,685	)		(10,040	)		(32,339	)		(30,703	)
Loss from operations	$	(4,310	)	$	(412	)	$	(24,579	)	$	(1,756	)

The Company allocates its net revenue to geographic regions based on the customer’s location. The following tables set forth net revenue and long-lived assets by geographic region (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net revenue:
North America	$	105,963	$	86,819	$	315,947	$	253,587
Europe and other		3,256		2,809		9,274		7,758
Total net revenue	$	109,219	$	89,628	$	325,221	$	261,345

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	September 30, 2012		December 31, 2011
Assets:
North America	$	562,140	$	596,039
Europe and other		4,758		3,188
Total assets	$	566,898	$	599,227
Long-lived assets:
North America	$	399,858	$	413,461
Europe and other		1,714		1,255
Total long-lived assets	$	401,572	$	414,716

18. Income Taxes

The effective tax rate of (21.4)% for the nine months ended September 30, 2012 differs from the statutory rate primarily due to state taxes, foreign taxes, the increase in the deferred tax liability from the amortization of tax deductible goodwill, the increase in the valuation allowance and discrete items recorded in the period.

During the nine months ended September 30, 2012, the Company received its transfer pricing methodology tax assessment with the Canadian Revenue Agency in the amount of $2.2 million, including accrued interest penalties. The assessment related to the 2005, 2006 and 2007 tax years and was due to the transfer pricing methodology related to royalties paid by the Company’s Canadian subsidiary to the Company. The Company previously recorded expense of $0.5 million in prior years for uncertain tax positions related to the audit by the Canadian Revenue Agency. As a result of the settlement, the Company recorded an additional expense of $1.3 million in the Company’s provision for income taxes on the condensed consolidated statements of operations for the nine months ended September 30, 2012. The Company also recorded a discrete expense of $0.4 million during the nine months ended September 30, 2012 related to the utilization of net operating losses carried back to offset adjustments related to 2006 and 2007.

As a result of the settlement with the Canadian Revenue Agency, the Company’s liability for uncertain tax positions decreased to $0 million as of September 30, 2012 from $0.3 million as of December 31, 2011. The Company’s policy for recording interest and penalties on uncertain tax positions is to record such items as a component of income tax expense. Accrued interest and penalties of $0 million and $0.2 million were recorded at September 30, 2012 and December 31, 2011, respectively.

The Company reduces the deferred tax asset resulting from future tax benefits by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of these deferred taxes will not be realized. The timing of the reversal of deferred tax liabilities associated with tax deductible goodwill is not certain and thus not available to assure the realization of deferred tax assets. Similarly, state deferred tax liabilities in excess of state deferred tax assets are not available to ensure the realization of federal deferred tax assets. After consideration of these limitations associated with deferred tax liabilities, the Company has deferred tax assets in excess of deferred tax liabilities for the periods presented. As the Company has no history of generating book income, the ultimate future realization of these excess deferred tax assets is not more likely than not and thus subject to a valuation allowance. Accordingly, the Company has established a valuation allowance against its domestic deferred tax assets. A valuation allowance has not been recorded against the Company’s foreign deferred tax assets as there are sufficient future taxable temporary differences in foreign jurisdictions to assure the realization of foreign deferred tax assets.

The Company conducts business globally, and as a result, is subject to taxation in the United States and various state jurisdictions and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in many of the jurisdictions in which the Company operates. Effectively, all of the Company’s historical tax filings are subject to examination by the Internal Revenue Service and various state and foreign jurisdictions due to the generation of net operating loss carry forwards.

It is possible that new tax exams may commence and that other issues may be effectively settled. However, the Company is unable to make a reasonably reliable estimate as to when or if cash settlements with taxing authorities may occur. Although audit outcomes and the timing of potential audit payments are subject to uncertainty, the Company does not anticipate that the resolution of these tax matters or any events related thereto will result in a material adverse change to its consolidated financial position, results of operations or cash flows.

19. Related Party Transactions

ESPN Online Investments, Inc. (“ESPN”) is a significant common stockholder in the Company. The Company also sells its services to ESPN and its affiliates. The Company recorded net revenues from ESPN and its affiliates of less than $0.1 million and $2.0 million for the three months ended September 30, 2012 and 2011, respectively, and less than $0.1 million and $6.3 million for the nine months ended September 30, 2012 and 2011, respectively.

ESPN is a wholly-owned subsidiary of The Walt Disney Company (“Disney”). The Company entered into an online services agreement with Disney to provide registration and advertising. The Company recorded net revenues from Disney of $0.3 million and $0.4 million for the three months ended September 30, 2012 and 2011, respectively, and $1.2 million for both the nine months ended September 30, 2012 and 2011.

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In August 2006, the Company entered into a Master Services Agreement and certain other related agreements with the United States Tennis Association (“USTA”) as amended in December 2010. A member of the Company’s Board of Directors is the managing director for recreational tennis at the USTA. Pursuant to the terms of these agreements, the USTA purchases certain software services from the Company. Net revenue from the USTA and its affiliates was approximately $1.3 million and $1.2 million for the three months ended September 30, 2012 and 2011, respectively, and $4.0 million for both the nine months ended September 30, 2012 and 2011.

20. Employee Benefit Plans

Defined Contribution Plan

The Company has a defined contribution plan under Section 401(k) of the Internal Revenue Code (“401(k) Plan”) covering all full-time employees who meet certain eligibility requirements. Eligible employees may defer up to 4% of their pre-tax compensation, up to the annual maximum allowed by the Internal Revenue Service. Under the 401(k) Plan, the Company may, but is not obligated to, match a portion of the employee contributions up to a defined maximum. The Company made matching contributions of $0.3 million and $0.2 million for the three months ended September 30, 2012 and 2011, respectively, and $0.8 million and $0.6 million for the nine months ended September 30, 2012 and 2011, respectively.

Deferred Compensation Plan

In July 2012, the Company approved an unfunded, non-qualified Deferred Compensation Plan for certain employees. Under the Deferred Compensation Plan, participants may elect to defer up to 80% of their base salaries and up to 100% of performance-based compensation and commissions. The Company may also, at its discretion, match a portion of the employee contributions up to a defined maximum for each deferral election as prescribed in the Deferred Compensation Plan. The Company contributions vest annually over a four year period, subject to the employee’s continued service with the Company. The initial participation period of the Deferred Compensation Plan will begin in October 2012.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and in our other public filings with the Securities and Exchange Commission (“SEC”).

This Quarterly Report on Form 10-Q contains “forward-looking statements” that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are often identified by the use of words such as, but not limited to, “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions or variations intended to identify forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified in “Part II — Item 1A. Risk Factors” below, and those discussed in our other public filings with the SEC. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Overview

We are leaders in activity and participant management™ providing cloud computing applications serving a wide range of customer groups including business solutions, community activities, outdoors and sports. We provide applications that form an online network connecting a fragmented and diverse group of activity and event organizers with a large base of potential participants. Our proprietary technology platform transforms the way organizers manage their activities and events by automating online registrations and streamlining other critical management functions, while also driving consumer participation to their events.

We power a broad range of activities, such as reserving a campsite or tee time, signing up for a marathon or sports league, purchasing a fishing or hunting license, or participating in a community event or corporate conference. From the introduction of our platform in 1999, we have experienced significant growth and in 2011, we had over 51,000 customer organizations that drove over 80 million annual consumer registrations. Based on the results of a 2010 online survey we commissioned through Survey.com, we believe the organizations we target produce or organize activities and events for the majority of U.S. households. Our proprietary technology platform, ActiveWorks, provides cloud computing applications that reduce the cost and complexity of managing, organizing and promoting these activities and events.

Our business benefits from a powerful network effect. As more organizations use our platform, we increase the breadth and depth of activities and events offered through our platform. This more comprehensive offering of activities attracts more participants. As we attract more participants, we are able to drive increased demand for our customers’ activities, thus increasing registrations and revenue for both organizers and us. This revenue growth enables us to develop enhanced functionality and services through ActiveWorks and our websites, further increasing participant engagement and attracting new organizers. In this way, we build increasing value for both organizations and participants.

We serve a wide range of customers including community and sports organizations, large corporations, small and medium-sized businesses, educational institutions, federal and state government agencies, non-profit organizations and other similar entities. We primarily generate revenue from technology fees paid by participants who register for our customers’ activities through our cloud computing applications. During the nine months ended September 30, 2012, we generated revenue of $325.2 million, as compared to $261.3 million in the nine months ended September 30, 2011, an increase of 24%.

A large number of our customers are currently being served by our ActiveWorks architecture at varying levels of integration. We are in the process of transitioning to ActiveWorks certain customers who continue to use both our internally developed systems and acquired legacy systems. In addition, as part of our growth strategy, we expect to continue to make acquisitions and, thereby, acquire additional legacy systems. We will evaluate these systems to determine, based on their sophistication and compatibility, whether to integrate them into ActiveWorks or to migrate the customers using these systems to ActiveWorks. This process is time consuming and requires the investment of significant technical and human resources. During this process, we expect to continue to incur costs associated with maintaining multiple legacy systems.

                In addition, our long-term strategic plan involves expanding our applications into new business areas within the activity and event registration and management market. A lack of market acceptance of such efforts or our inability to generate satisfactory revenue to offset the development costs could have a material adverse effect on our results of operations and future growth prospects. As we establish and expand our operational capabilities internationally, we will incur additional operating expenses and capital-related costs.

Our technology revenue was 89% of our total revenue for the nine months ended September 30, 2012. Net registration revenue was 76% of our technology revenue for the nine months ended September 30, 2012. During the nine months ended September 30, 2012, we processed approximately 71.5 million consumer registrations. Licensed software, maintenance, hosting and implementation revenue was 24% of our technology revenue for the nine months ended September 30, 2012. Our marketing services revenue was 11% of our total revenue for the nine months ended September 30, 2012.

Key Business Metrics

Net Registration Revenue. We calculate our net registration revenue by summing the technology fees generated by our registrations and revenue from the sale of pre-purchased registrations.

Registrations. We define a registration as when a participant registers one or more people for an event being held by an organization who is using our technology to register that participant. We determine that a registration has taken place when a participant registers one or more people for an activity or an event being held by one of our customers.

	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
	(Unaudited) (In thousands)							(Unaudited) (In thousands)
Net registration revenue	$	72,703	$	60,893		19	%	$	220,076	$	182,067		21	%
Registrations		25,207		23,513		7	%		71,466		62,969		13	%
Net registration revenue per registration	$	2.88	$	2.59		11	%	$	3.08	$	2.89		7	%

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Registrations increased 1.7 million or 7% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and 8.5 million, or 13%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increase was primarily due to higher registrations in our outdoors customer group driven by growth from both existing and new state customers, additional registrations from StarCite, a provider of a technology platform that delivers content and services for meetings and event planning, which we acquired in December 2011, and increased registrations in our community activities customer group from sales to existing and new organizations. The average revenue per registration increased 11% for the three months and 7% for the nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011.

Mobile Devices. During the three and nine months ended September 30, 2012 and 2011, less than 10% of our registrations were made on a mobile or tablet device. We anticipate that revenue attributable to mobile usage will increase in future years due to users increasingly accessing the Internet through mobile devices.

Basis of Presentation

General

The condensed consolidated financial statements include the accounts of The Active Network, Inc. and its wholly-owned subsidiaries. All intercompany balances have been eliminated.

Acquisitions that have been accounted for as purchase transactions are included in the condensed consolidated results from their date of purchase.

Revenue

We report our revenue in two segments:

• Technology

• Marketing services

The technology revenue segment is primarily composed of net registration revenue, which is primarily comprised of the technology fee we charge a participant when they register for one of our organization’s events. Our technology revenue is generally derived from transactions where we are the merchant of record. Our merchant model provides consumers the ability to book a wide range of events online through our platform. The type of events we offer on our platform can be categorized into the following four primary groups: sports, community activities, outdoors and business solutions. We generate technology revenue for our services based on the technology fee we charge a consumer when they register for one of the events. Consumers generally pay us the registration fee at the time of booking, and we pay the event organizer at a later date. The technology fee is recognized as revenue net of the organization registration fee which is collected directly from our consumer and then we make payment to the event organizer typically on a two week basis. Net registration revenue is recognized when services are provided, net of estimated refunds and other chargebacks. The timing difference between when the cash is collected from our consumers and when payments are made to the event organizers improves our operating cash flow and represents a source of liquidity for us. Technology revenue also includes software licensing, installation, training, maintenance, hosting subscriptions and the sale of pre-purchased registrations. The marketing services revenue segment includes online services, field marketing services and membership programs. Registrations lead participants to our network of websites and create opportunities for us to sell our online commerce and other marketing services to participants. Our network of websites enables like-minded consumers to engage in our online communities.

Costs and Expenses

Cost of Revenue. Our cost of revenue consists of credit card processing fees for registrations, payroll and related costs including allocated facilities costs, stock-based compensation for employees associated with registration, subscription or software implementation, customer support and onsite event support including travel costs. Costs also include expenses related to our call center operations, amortization of capitalized software development costs and certain acquired intangibles including acquired technology, customer supply costs, inventory costs and internet hosting costs.

Sales and Marketing. Our sales and marketing costs are primarily salaries, benefits, incentive compensation, stock-based compensation and allocated facilities costs for our sales and marketing employees. Costs also include expenses for travel, trade shows and other promotional and marketing activities including direct and online marketing.

Research and Development. Our research and development costs are primarily salaries, benefits, incentive compensation, stock-based compensation and allocated facilities costs for employees and contractors engaged in the development and ongoing maintenance of our products and services.

                General and Administrative. Our general and administrative costs are primarily salaries, benefits, incentive compensation, stock-based compensation and allocated facilities costs for employees engaged in support activities including executive, finance, accounting, human resources, legal and internal information technology support. Also included are professional fees and contractor costs for legal and accounting services. Software expenses and travel costs for support employees, taxes, fees and licenses are also included.

Amortization of Intangibles. Intangible assets with finite lives are amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the asset over their estimated useful lives. This includes assets recorded in conjunction with certain acquisitions.

Other Income (Expense), Net. Other income (expense), net consists primarily of the interest income earned on our cash and cash equivalents, interest paid on our debt, foreign exchange gains and losses and other one-time gains and losses.

Provision for Income Taxes. Provision for income taxes consists of federal and state income taxes in the United States and income taxes in certain foreign jurisdictions.

Adjusted EBITDA

To provide investors with additional information regarding our financial results, we have disclosed within this Quarterly Report on Form 10-Q Adjusted EBITDA, a non-GAAP financial measure. We have provided a reconciliation below of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure.

We have included Adjusted EBITDA in this Quarterly Report on Form 10-Q because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In

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particular, the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key financial measure used by the compensation committee of our board of directors in connection with the payment of bonuses to our executive officers. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are:

• Adjusted EBITDA does not reflect our cash expenditures for capital equipment, internally developed software costs or certain other contractual commitments;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may need to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements;

• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

• Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation to our management team or employees;

• Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and

• other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss and our other GAAP financial results.

The following table presents a reconciliation of Adjusted EBITDA for each of the three and nine month periods ended September 30, 2012 and September 30, 2011:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
				(Unaudited) (in thousands)
Reconciliation of Adjusted EBITDA to Net loss:
Net loss		(6,022	)		(1,432	)		(28,685	)		(6,845	)
Interest expense, net		216			77			407			2,708
Provision for income taxes		1,982			910			5,062			2,490
Depreciation and amortization		15,033			11,146			45,127			32,654
Stock-based compensation		4,661			1,970			11,992			4,782
Other (income) expense, net		(486	)		33			(1,363	)		(109	)
Adjusted EBITDA		15,384			12,704			32,540			35,680

Critical Accounting Policies

In presenting our condensed consolidated financial statements in conformity with U.S. generally accepting accounting principles, or GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures.

Some of the estimates and assumptions we are required to make relate to matters that are inherently uncertain as they pertain to future events. We base these estimates and assumptions on historical experience or on various other factors that we believe to be reasonable and appropriate under the circumstances. On an ongoing basis, we reconsider and evaluate our estimates and assumptions. Our future estimates may change if the underlying assumptions change. Actual results may differ significantly from these estimates.

We believe that the critical accounting policies listed below involve our more significant judgments, assumptions and estimates and, therefore, could have the greatest potential impact on our condensed consolidated financial statements.

• Revenue recognition

• Allowance for doubtful accounts

• Software development costs

• Business combinations

• Impairment of goodwill, indefinite-lived intangible assets and long-lived assets

• Income taxes

• Stock-based compensation

As of September 30, 2012, there have been no material changes to the items disclosed as critical accounting policies and estimates in “Management Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2011.

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Results of Operations

The following tables set forth our results of operations for the periods presented and those results as a percentage of our revenue. The period-to-period comparison of financial results is not necessarily indicative of future results.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)
	(in thousands)
Net revenue:
Technology revenue	$	96,170		$	76,341		$	288,445		$	225,002
Marketing services revenue		13,049			13,287			36,776			36,343
Total net revenue		109,219			89,628			325,221			261,345
Cost of net revenue:
Cost of technology revenue		45,571			38,291			142,038			109,986
Cost of marketing services revenue		1,826			1,599			5,257			4,241
Cost of net revenue		47,397			39,890			147,295			114,227
Gross profit		61,822			49,738			177,926			147,118
Operating expenses:
Sales and marketing		24,154			17,116			73,462			52,970
Research and development		20,624			17,628			62,954			50,181
General and administrative		15,862			11,737			49,309			34,633
Amortization of intangibles		5,492			3,669			16,780			11,090
Total operating expenses		66,132			50,150			202,505			148,874
Loss from operations		(4,310	)		(412	)		(24,579	)		(1,756	)
Interest income		23			32			73			91
Interest expense		(239	)		(109	)		(480	)		(2,799	)
Other income (expense), net		486			(33	)		1,363			109
Loss before provision for income taxes		(4,040	)		(522	)		(23,623	)		(4,355	)
Provision for income taxes		1,982			910			5,062			2,490
Net loss		(6,022	)		(1,432	)		(28,685	)		(6,845	)
Accretion of redeemable convertible preferred stock		—			—			—			(11,810	)
Net loss attributable to common stockholders	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(18,655	)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)
	(As of percentage of net revenue)
Net Revenue		100	%		100	%		100	%		100	%
Cost of net revenue		43			45			45			44
Gross profit		57			55			55			56
Operating expenses:
Sales and marketing		22			19			23			20
Research and development		19			20			19			19
General and administrative		15			13			15			13
Amortization of intangibles		5			4			5			4
Total operating expenses		61			56			62			57
Loss from operations		(4	)		0			(8	)		(1	)
Interest income		0			0			0			0
Interest expense		(0	)		(0	)		(0	)		(1	)
Other (expense) income, net		0			0			0			0
Loss before provision for income taxes		(4	)		(1	)		(7	)		(2	)
Provision for income taxes		2			1			2			1
Net loss		(6	%)		(2	%)		(9	%)		(3	%)

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Three and Nine months ended September 30, 2012 and 2011

Net Revenue

	Three Months  Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
	(Unaudited) (In thousands)							(Unaudited) (In thousands)
Net revenue:
Technology revenue	$	96,170	$	76,341		26	%	$	288,445	$	225,002		28	%
Marketing services revenue		13,049		13,287		(2	%)		36,776		36,343		1	%
Net revenue	$	109,219	$	89,628		22	%	$	325,221	$	261,345		24	%

Total revenue increased $19.6 million, or 22%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $63.9 million, or 24%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 as discussed below.

Technology revenue. Net registration revenue increased $11.8 million or 19% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $38.0 million, or 21%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increase was driven by higher revenue in our business solutions customer group largely as a result of the StarCite acquisition, higher revenue from both existing and new state customers in our outdoors customer group, and growth in our community activities and sports customer groups. Software revenue increased $8.0 million or 52% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $25.4 million, or 59%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011, mainly as a result of additional revenue from our acquisitions of StarCite and RTP in 2011, as well as increased revenue from our faith offerings. In total, technology revenue increased $19.8 million or 26% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $63.4 million, or 28%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

Marketing services revenue. Revenue decreased $0.2 million, or 2% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and increased $0.4 million, or 1% for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. These changes were primarily attributable to revenue increases related to our membership programs and website development offset by a decline in online advertising revenue mainly resulting from the expiration of a large one-time online advertising contract in 2011.

Costs and Expenses

Employee related expenses. Headcount and its related expenses make up a significant portion of our total expenses. We define employee related expenses as salaries, fringe benefits, facilities costs, employee travel, commissions, bonuses, stock-based compensation and other employee expenses.

Cost of Net Revenue

	Three Months  Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
					(Unaudited) (Dollars in thousands)
Cost of net revenue	$	47,397	$	39,890		19	%	$	147,295	$	114,227		29	%
Headcount (at period end)									1,412		1,283		10	%

Cost of net revenue increased $7.5 million or 19% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $33.1 million, or 29%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. Employee related costs increased $3.4 million for the three months and $14.2 million for the nine months as a result of a 10% increase in headcount related to information technology and implementation support employees to support our revenue growth, offset by a decline in seasonal call center employees. Costs related to sales of hardware inventory increased $0.8 million for the three months and $2.9 million for the nine months mainly as a result of hardware sales in our resorts business from our acquisition of RTP in November 2011. Other cost of goods sold, including contractors and credit card processing fees, increased $1.1 million or 6% for the three months and $9.1 million or 17% for the nine months to support our revenue growth. Amortization of software that was capitalized in earlier periods, depreciation for fixed assets and amortization expense increased $2.2 million for the three months and $6.9 million for the nine months.

Sales and Marketing

	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
	(Unaudited) (Dollars in thousands)
Sales and marketing	$	24,154	$	17,116		41	%	$	73,462	$	52,970		39	%
Headcount (at period end)									625		500		25	%

Sales and marketing expense increased $7.0 million or 41% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $20.5 million, or 39%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increase was primarily due to an increase in employee related expenses of $6.4 million for the three months and $18.3 million for the nine months, related to a 25% increase in headcount as we invested in our sales and marketing staff for future business growth. All other expenses including contractors, marketing and software increased $0.6 million for the three months and $2.2 million for the nine months to support the sales and marketing teams.

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Research and Development

	Three Months  Ended September 30,							Nine Months  Ended September 30,
	2012		2011		% Change			2012		2011		% Change
					(Unaudited) (Dollars in thousands)
Research and development	$	20,624	$	17,628		17	%	$	62,954	$	50,181		25	%
Headcount (at period end)									1,065		934		14	%

Research and development expense increased $3.0 million or 17% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $12.8 million, or 25%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. Employee related expenses increased $5.3 million for the three months and $16.9 million for the nine months, resulting from a 14% increase in headcount driven by our continued development of ActiveWorks and implementations for new customers. The increase in employee related costs was partially offset by an increase in capitalized software of $1.8 million for the three months compared to the prior year and $3.3 million for the nine months compared to the prior year resulting from an increase in capitalizable hours, as well as lower contractor’s expense of $0.4 million for the three months and $0.7 million for the nine months as we completed certain implementations.

General and Administrative

	Three Months  Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
					(Unaudited) (Dollars in thousands)
General and administrative	$	15,862	$	11,737		35	%	$	49,309	$	34,633		42	%
Headcount (at period end)									345		269		28	%

General and administrative expense increased $4.1 million or 35% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $14.7 million, or 42%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. Employee related expenses increased $2.7 million for the three months and $11.6 million for the nine months costs resulting from a 28% increase in headcount to allow us to support the business, as well as higher stock-based compensation expense due to increases in the fair value of our common stock and the number of stock options and restricted stock units granted. Contractor expenses also increased $1.1 million for the three months and $2.5 million for the nine months to support our public company and acquisition requirements.

Amortization of Intangibles

	Three Months  Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
			(Unaudited)							(Unaudited)
			(In thousands)							(In thousands)
Amortization of intangibles	$	5,492	$	3,669		50	%	$	16,780	$	11,090		51	%

Amortization of intangibles increased $1.8 million for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $5.7 million for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increases were due to $2.5 million for the three months and $8.3 million for the nine months of additional amortization expense related to recent acquisitions, offset by declines in amortization expense of $0.7 million for the three months and $2.6 million for the nine months for acquisitions completed prior to 2009 as the estimated useful lives on certain intangibles were met.

Interest and Other Income (Expense), Net

	Three Months Ended September 30,									Nine Months  Ended September 30,
	2012			2011			% Change			2012			2011			% Change
				(Unaudited)									(Unaudited)
				(In thousands)									(In thousands)
Interest income	$	23		$	32			(28	%)	$	73		$	91			(20	%)
Interest expense		(239	)		(109	)		119	%		(480	)		(2,799	)		(83	%)
Other income (expense), net		486			(33	)		(1,573	%)		1,363			109			1,150	%
Interest and other income (expense), net	$	270		$	(110	)		345	%	$	956		$	(2,599	)		137	%

Interest income decreased less than $0.1 million or (28%) for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and decreased less than $0.1 million or (20%), for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011, as a result of our transition to bank Earnings Credit Rate, which offsets bank fees with interest income resulting in lower interest income.

Interest expense increased $0.1 million or 119% for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 as a result of interest expense in 2012 for our line of credit, offset by lower expense for our capital lease obligations. Interest expense decreased $2.3 million or (83%), for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 primarily due to a lower average debt balance. Our average debt balance was lower in 2012 because, subsequent to our public offering in May 2011, we paid all of our outstanding debt at that time in full. Interest expense related to capital lease obligations also decreased $0.1 million for the nine months.

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Other income increased $0.5 million for the three months ended September 30, 2012 compared to the three months ended September 30, 2011, primarily due to gains on foreign exchange, and increased $1.3 million for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011, primarily attributable to a gain resulting from the change in the fair value of contingent consideration related to the StarCite acquisition, and gains on foreign exchange.

Income Taxes

	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		% Change			2012		2011		% Change
	(Unaudited) (In thousands)
Provision for income taxes	$	1,982	$	910		118	%	$	5,062	$	2,490		103	%

Provision for income taxes increased $1.1 million for the three months ended September 30, 2012 compared to the three months ended September 30, 2011 and $2.6 million for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The provision for each period is primarily the result of increases in our deferred tax liabilities from the amortization of tax deductible goodwill. In addition, during the nine months ended September 30, 2012, we recorded an additional expense of $1.3 million related to a transfer pricing methodology tax assessment from the Canadian Revenue Agency, and an additional expense of $0.4 million related to the utilization of net operating losses carried back to offset adjustments related to 2006 and 2007.

The effective tax rate of (21.4%) for the nine months ended September 30, 2012 differs from the statutory rate primarily due to state taxes, foreign taxes, the increase in the deferred tax liability from the amortization of tax deductible goodwill, the change in the valuation allowance, and the additional expenses related to transfer pricing methodology and utilization of net operating losses.

Liquidity and Capital Resources

Condensed Consolidated Statements of Cash Flows Data:

	Nine Months Ended September 30,
	2012			2011
	(In thousands)
Purchases of property and equipment	$	(12,665	)	$	(8,991	)
Capitalized software development		(17,194	)		(13,898	)
Depreciation and amortization of property and equipment		23,995			17,344
Amortization of intangibles		21,132			15,310
Change in operating assets and liabilities, net		8,099			30,944
Proceeds of long-term debt		5,000			—
Repayment of long-term debt		(10,000	)		(41,628	)
Net proceeds from initial public offering		—			112,566
Net cash provided by operating activities		37,148			63,739
Net cash used in investing activities		(67,896	)		(27,596	)
Net cash provided by financing activities		695			71,790

As of September 30, 2012, we had cash and cash equivalents of $78.5 million and restricted cash of $0.9 million. We did not have any short-term or long-term investments. Cash and cash equivalents consist of cash and non-interest and interest bearing accounts. Restricted cash consists of cash restricted from withdrawal and held by banks as collateral for letters of credit.

We believe that our existing cash and cash equivalents together with cash flows from our operating activities and cash available under our credit facility will be sufficient to fund our operations for at least the next 12 months. The credit facility is available for capital expenditures and acquisitions, and to provide for ongoing working capital requirements.

                On December 16, 2011, we entered into a credit agreement with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”), as Sole Lead Arranger and Sole Book Manager, and the lenders from time to time a party thereto. On July 2, 2012, we amended the credit agreement to, among other things, add J.P. Morgan Securities LLC, as a Joint Lead Arranger. The credit agreement, as amended, provides for a five-year, senior secured revolving credit facility in an initial aggregate principal amount of $100.0 million (the “Credit Facility”). The Credit Facility includes a $25.0 million sublimit for the issuance of standby letters of credit and a $5.0 million sublimit for swing line loans, which will be available on a same-day basis. The credit agreement, as amended, also contains an “accordion” feature which allows us, subject to certain terms and conditions, to increase the lending commitments by up to $50 million. As of September 30, 2012, we had no amounts outstanding under the Credit Facility. Amounts available under the Credit Facility were $93.0 million as of September 30, 2012, net of $7.0 million in outstanding letters of credit.

Under the Credit Facility we are also required to comply with certain financial covenants and ratios. As of September 30, 2012, we were in compliance with all specified financial covenants.

Operating Activities

For the nine months ended September 30, 2012, cash provided by operating activities was $37.1 million, taking into account a net loss of $28.7 million, plus $24.0 million in depreciation and amortization of property and equipment, $21.1 million in amortization of intangibles, $12.0 million in stock-based compensation, $3.0 million change in deferred tax liability, and $8.1 million net increase from the change in operating assets and liabilities, offset by $1.1 million resulting from a gain on contingent consideration and $1.3 million in other items. Net change in operating assets and liabilities included a $0.3 million increase in registration fees payable resulting from an increase in registrations, and a $13.9 million increase in deferred revenue resulting from growth in the business, offset by a $6.8 million decrease in accounts receivable, resulting from increased registrations and growth in the business, and $0.7 million from a net decrease in accounts payable, inventories, and other items.

Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2012 was $67.9 million, resulting primarily from $12.7 million cash used for capital expenditures and $17.2 million for capitalized software development costs, and $38.0 million related to the payable for the cash consideration for the acquisition of StarCite.

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Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2012 was $0.7 million, resulting primarily from $9.2 million cash received from the exercise of stock options, offset by net $5.0 million in repayment of borrowings under our credit facility and, $3.6 million for payments on capital lease obligations.

Off Balance Sheet Arrangements

As of September 30, 2012, we did not have any off balance sheet arrangements.

Contractual Obligations

Our contractual obligations relate primarily to borrowings under our credit facility, operating leases and purchase obligations. As of September 30, 2012, there have been no significant changes to our contractual obligations from the information provided in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2011.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate fluctuations, foreign exchange risk and inflation.

Interest Rate Fluctuations

Our investments include cash and cash equivalents, which consists of cash and money market accounts. The primary objective of our investment activities is to preserve principal while maximizing income without significantly increasing risk. We do not enter into investments for trading or speculative purposes. Our investments are exposed to market risk due to a fluctuation in interest rates, which may affect our interest income and the fair market value of our investments. Due to the short-term nature of our investment portfolio, we do not believe an immediate 10% increase in interest rates would have a material effect on the fair market value of our portfolio, and therefore we do not expect our operating results or cash flows to be materially affected to any degree by a sudden change in market interest rates.

On December 16, 2011, we entered into a Credit Agreement, as amended on July 2, 2012, that provides for a credit facility bearing interest at floating rates based upon either (a) 1.5% above the applicable LIBOR rate, or (b) 0.5% above (i) the greatest of (x) the prime rate, (y) the federal funds effective rate plus 0.5% or (z) a daily rate equal to one-month LIBOR plus 1.00%. Our exposure to market risk for changes in interest rates relates primarily to the floating interest rate. Accordingly, interest rate increases would increase our interest expense on outstanding credit facility balances. As of September 30, 2012, no amount was drawn under the credit facility. Based on a sensitivity analysis, an increase of 1% in the floating interest rate would increase our borrowing costs by less than $0.1 million for each $1.0 million of borrowings under the credit facility, assuming such borrowings were outstanding for the entire quarter, or a maximum of $2.0 million if we utilized our entire line of credit.

Foreign Currency Exchange Risk

We have foreign currency risks related to our revenue and operating expenses denominated in currencies other than the U.S. dollar, principally the Canadian dollar and the British pound sterling. We do not believe movements in the foreign currencies in which we transact will significantly affect future net earnings. Foreign currency risk can be quantified by estimating the change in cash flows resulting from a hypothetical 1% adverse change in foreign exchange rates. We do not believe such a change would have a material impact on our results of operations.

Inflation

We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and results of operations.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

                Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective at the reasonable assurance level to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as specified above. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, the design of a control system must reflect that there are resource constraints, thus, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the probability of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are from time to time subject to various claims and legal actions during the ordinary course of business, including potential liabilities under government regulations and various claims and legal actions that are pending or may be asserted by third parties. These matters arise in the ordinary course and conduct of our business, and, at times, as a result of our acquisitions. They include, for example, commercial, intellectual property and employment matters. Some are expected to be covered, at least partly, by insurance. We intend to continue to defend ourselves vigorously in such matters. We believe that there are currently no claims or legal actions that would reasonably be expected to have a material adverse effect on our results of operations or financial condition.

ITEM 1A. RISK FACTORS

Investing in our common stock involves a high degree of risk. You should carefully consider the following risks and all other information contained in this Quarterly Report on Form 10-Q, including our consolidated financial statements and the related notes, before investing in our common stock. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, also may become important factors that affect us. If any of the following risks materialize, our business, financial condition and results of operations could be materially harmed. In that case, the trading price of our common stock could decline, and you may lose some or all of your investment.

Risks Related To Our Business

We have a history of significant net losses, and we may not be able to achieve or maintain consistent profitability on an annual basis.

We have incurred fiscal year net losses since our inception in 1998. Our net losses were approximately $28.7 for the nine months ended September 30, 2012, $15.3 million for the year ended December 31, 2011, $27.3 million for the year ended December 31, 2010 and $37.9 million for the year ended December 31, 2009. At September 30, 2012, we had an accumulated deficit of approximately $303.9 million. We plan to increase our operating expenses in the future as we continue to develop additional functionality and features for our applications, continue to transition our customers to ActiveWorks, make additional acquisitions, increase our sales and marketing activities, expand outside of North America and enhance our customer service and call center capabilities. If our revenue grows at a slower rate than we anticipate, or if our operating expenses increase unexpectedly, we may not be able to achieve or maintain consistent profitability.

Our limited operating history, new and unproven business model and rapidly evolving market make it difficult to evaluate our future prospects and increase the risk that we will not be successful.

We launched our application services in 1999, and we have made a number of changes to our operations, technology platform and online communities since that time. As a result, we have a limited operating history with our current business upon which to predict our future operating results. In addition, the business of providing cloud computing applications to activity and event organizers and building and supporting online communities for activity and event participants is relatively new and subject to rapid change. You must consider our business and prospects in light of the risks and difficulties we will continue to encounter as a company with a new and unproven business model and operating in a new and rapidly evolving market. These risks and difficulties include our ability to, among other things:

• attract new customers;

• deepen our relationships with our existing customers;

• continue to transition our existing customers to ActiveWorks;

• continue to earn the trust of organizers and participants with respect to the processing, storage and use of their confidential information and personal data in compliance with our own high standards of care and applicable governmental and other legal obligations related to privacy and data protection;

• develop a scalable, high performance technology infrastructure that can securely, efficiently and reliably handle increased usage globally;

• continue to manage and successfully integrate acquired businesses, applications and technologies;

• successfully compete with other companies that engage in the activity and event registration and management market;

• continue to build and support online communities and applications for activity and event participants;

• successfully introduce and deploy new features and functionality for our technology platform;

• increase revenue from our applications, websites and online communities;

• avoid interruptions or disruptions in our service;

• avoid problems with the functionality of our applications;

• continue to hire, integrate and retain highly skilled team members who embrace our values and culture; and

• successfully expand our business outside of North America.

We may not be able to address these risks and difficulties or others that we may encounter, including those described elsewhere in this risk factors section. Our failure to adequately address risks and difficulties as we encounter them could cause our reputation to suffer and harm our business. We base our current and future expense levels on our management’s estimates of the size of our market and the number of potential customers and registrations, operating forecasts and estimates of future revenue. However, our revenue and operating results are difficult to forecast due to the uncertainty of our market and our ability to increase our customer base and the number of participants who elect to register for activities using our applications. In addition, certain of our expenses are fixed, and we may be unable to adjust our spending in a timely manner to compensate for any unexpected shortfall in revenue. As a result, we may make errors in predicting our revenue and expenses, which would harm our business and financial condition.

Our growth rate over the past few years may not be sustainable. If we fail to maintain an adequate growth rate, our business will be adversely affected and we may not achieve or maintain profitability.

Our revenue has grown rapidly over the past few years, increasing to $337.4 million in 2011 from $279.6 million in 2010 and $242.9 million in 2009, representing a compound annual growth rate over this period of 17.9%. We may not be able to sustain this level of growth in future periods, and you should not rely on the revenue growth of any prior quarterly or annual period as an indication of our future performance. Further, a portion of our revenue growth in 2011 resulted from acquisitions. We may not complete acquisitions in the future that increase our revenue at the same rate as in prior periods. The identification of suitable acquisition candidates can be difficult, time-consuming and costly, and we may not be able to successfully complete the acquisitions we do identify. If we are unable to maintain an adequate rate of growth, our business will be adversely affected and we may not achieve or maintain profitability.

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If we fail to effectively manage our growth, our business and operating results could be harmed.

The substantial growth in our business over the past few years has placed, and may continue to place, significant demands on our management, our operating infrastructure and our internal controls and procedures. As our operations grow in size and complexity, we will need to improve and upgrade our operating systems and infrastructure to offer an increasing number of organizers and participants enhanced applications, features, functionality and support. In addition, we will be required to strengthen our internal controls and our risk management policies and procedures. The expansion of our operating systems and infrastructure and the strengthening of our controls, policies and procedures will require us to commit substantial financial, operational and technical resources in advance of an increase in the volume of our business, with no assurance that our business will actually increase. Continued growth could also strain our ability to maintain reliable service levels for organizers and participants, as well as to recruit, train and retain highly skilled personnel. If we fail to effectively manage our growth, our business and operating results could be harmed.

Acquisitions could prove difficult to integrate, disrupt our business, dilute stockholder value, strain our resources and impair our operating results, financial conditions and prospects.

Acquisitions have been an important part of our growth to date. We have completed a significant number of acquisitions over the past few years. We intend to continue to seek to acquire and invest in businesses, applications and technologies that we believe could complement or expand our business, augment our market coverage, enhance our technology platform, provide us with valuable customer contacts or otherwise offer growth opportunities.

Acquisitions and investments involve numerous risks and difficulties, including:

• difficulties in integrating operations, technologies, accounting functions and personnel;

• difficulties in supporting and transitioning customers of our acquired companies to our technology platform;

• difficulties in maintaining the security and reliability of acquired applications;

• delays in strengthening internal controls and risk management policies and procedures;

• diversion of financial and management resources from existing operations;

• potential loss of key employees;

• inability to generate sufficient revenue to offset acquisition or investment costs;

• assumption of unknown liabilities and claims;

• potential disputes and litigation;

• potential diminishment in the value of any acquired brands; and

• potential write-offs of acquired assets.

Acquisitions also frequently result in recording of goodwill and other intangible assets, which are subject to potential impairments in the future that could harm our operating results. In addition, if we finance acquisitions by issuing convertible debt or equity securities, our existing stockholders may be diluted. Such dilution could adversely affect the market price of our stock. Moreover, if we are unable to identify suitable future acquisition candidates, reach agreement with these parties or obtain the financing needed to complete such acquisitions, we could lose market share to competitors who are able to complete such acquisitions. This loss of market share could negatively impact our business, revenue and future growth. If we fail to achieve the anticipated benefits of any acquisitions we have completed or may complete in the future, our business, operating results, financial condition and prospects may be impaired.

Any failure to compete successfully against current or future competitors would materially adversely affect our business and prospects.

The market for technology applications for activity and event organizers is fragmented, competitive and rapidly evolving. Our primary competition comes from traditional registration processing methods used by activity and event organizers, such as paper-based registrations submitted by mail or in person or reservations submitted by telephone. We also face competition from:

• custom-developed applications created by an organizer’s technical staff or an outside custom service provider;

• companies that offer generalized functional software that have features and functionality that organizers can use to register participants and manage their activities, such as content or contact management software programs, e-commerce solutions, enterprise resource planning software and other products having separate software modules; and

• companies that offer organizers integrated hosted software solutions in one or more verticals within the activities and events market.

Our competitors may announce new products, services or enhancements that better address changing industry standards or the needs of organizers and participants. In addition, competitors and potential competitors may enter into business combinations or alliances that strengthen their competitive positions. For example, companies who we do not consider to be significant competitors could acquire one or more of the various companies in our fragmented industry and, over a short period of time, become a significant competitor in the markets we service. If any of these competitors were to aggressively price their competing services in our market, we may be required to reduce our prices, which could adversely affect our operating results and financial condition. In addition, it may be difficult to displace a competitor once they have established a relationship with an organizer.

We expect to encounter new and evolving competition as the market becomes aware of the advantages of cloud computing applications for activity and event organizers. For example, social networking companies with a large number of online users could develop competing applications or partner with third parties to do so. Future or existing competitors may introduce different pricing models, and offer users applications at minimal or no cost. In addition, larger, better capitalized companies with greater operational, strategic, financial, personnel, customer or user bases and other resources than we have could also enter our market and attempt to compete with us. If we do not successfully compete with existing and future competitors, our business and prospects will be adversely affected.

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Our business may be harmed if we fail to successfully transition certain of our existing customers to ActiveWorks.

We have made a significant investment in developing ActiveWorks, and a large number of our customers are currently being served by our ActiveWorks architecture at varying levels of integration. We are in the process of transitioning to ActiveWorks certain customers who continue to use both our internally developed systems and acquired legacy systems. We are developing the additional features required to complete this transition. In addition, as part of our growth strategy, we expect to continue to inherit legacy systems. We will evaluate these systems to determine, based on their sophistication and compatibility, whether to integrate them into ActiveWorks or to migrate the customers using them to ActiveWorks. This process is time consuming and requires the investment of significant technical and human resources. During this process, we will continue to incur the costs and face the risks and difficulties associated with maintaining multiple legacy systems. During that transition period, we may also experience service interruptions, system failures and security breaches due to the shortcomings of certain of the legacy systems. Further, as we transition legacy systems to ActiveWorks, we may discontinue certain brands associated with those legacy systems and we may encounter resistance from customers who have affinity for these brands. If we fail to complete the transition to ActiveWorks in a cost-effective and timely manner and without service interruptions, system failures, security breaches or resistance from customers, our business may be harmed.

If our computer systems are compromised, we could be subject to fines, damages, litigation and enforcement actions and organizers and participants could curtail or cease using our applications, the occurrence of which would harm our business.

Our computer systems involve the storage and transmission of non-public personal and credit card information provided by our customers and participants. Despite our security measures, our computer systems are vulnerable to computer viruses, break-ins and other attacks that could lead to the unauthorized access, disclosure and use of non-public personal information, including credit card data. The techniques used by criminal elements to attack our computer systems are sophisticated, change frequently and may originate from less regulated and remote areas of the world. As a result, we may not be able to address these techniques proactively or implement adequate preventative measures. In one instance, we became aware of a security breach in one of the legacy computer systems we inherited through one of our acquisitions. This type of breach could potentially result in the unauthorized acquisition and use of credit card data of a number of participants. We promptly isolated the affected computer system, conducted a forensic analysis of this breach, took steps to clean the affected computer system and implemented a remediation plan to prevent any further breach. We cooperated with the federal authorities investigating the criminals who perpetrated the attack. We cannot guarantee that we will be able to prevent a breach of our computer systems in the future. The breach of our computer systems may subject us to fines, damages from claims asserted by payment processors, merchant banks, organizers and participants, litigation and enforcement actions. In addition, if we experience further compromises of our computer systems, payment processors, merchant banks, organizers and participants may lose confidence and cease using our applications, which would harm our business.

We are subject to data privacy laws and regulations as well as contractual privacy obligations, and our failure to comply could subject us to fines and damages and would harm our reputation and business.

We are subject to the data privacy laws and regulations adopted by federal, state and foreign governmental agencies. Data privacy is highly regulated, and may become the subject of additional regulation in the future. Privacy laws restrict our storage, use, processing, disclosure, transfer and protection of non-public personal information, including credit card data, provided to us by our customers and participants. In addition, we are subject to the privacy-related obligations in our contracts with our customers and other third parties (including voluntary third-party certification bodies such as TRUSTe). Any failure by us to comply with applicable privacy laws or regulations, our contractual privacy obligations or our own privacy policies, may result in fines, statutory or contractual damages or litigation or governmental enforcement actions. Additionally, violations of our legal or contractual privacy obligations could cause organizers and participants to lose trust in us, which would harm our reputation and business.

Our technology systems are vulnerable to damage, interruptions or failures, any of which could harm our reputation and business.

Our technology systems rely on computer hardware and communications systems located either in our facilities or at third-party facilities, including our main web-hosting facilities in Las Vegas, Nevada, Ashburn, Virginia and Toronto, Ontario. We do not control the operation of the third-party facilities and must rely on third parties to provide the physical security, facilities management and communications infrastructure services to ensure the reliable and consistent delivery of our solutions to our customers. Our web-hosting technology systems located at our facilities and at third-party facilities are vulnerable to damage or interruption from catastrophic occurrences such as earthquakes, floods, fires, power loss, telecommunications failures, terrorist attacks and similar unforeseen events. Despite any precautions we may take, the occurrence of a natural disaster or other unexpected problems at one of our facilities or the facilities operated by third parties who house our equipment could result in lengthy interruptions in our services.

We are in the process of implementing procedures designed to allow us to move our production operations over to a backup datacenter in the event of a catastrophe. Although this program is functional, it does not provide a real-time failover in all instances, so if one of our websites shuts down it would remain shut down for a period of time while the transition takes place, and during that time, the website would not be accessible. In addition, the prolonged interruption of service of one or more of our websites that process transactions could result in potentially significant losses.

We carry business interruption insurance but our coverage may not be sufficient to compensate us for the potentially significant losses that may result from prolonged interruptions in our services as a result of system failures.

If credit card payment processors and service providers fail or no longer agree to provide their services, change their services or terms of service or increase processing fees, our customer relationships could be adversely affected and we could lose business and revenue.

We rely on agreements with large payment processing organizations to enable us to provide credit card authorization, data capture, settlement and merchant accounting services, and access to various reporting tools for the customers we serve. Our credit card processors and service providers could terminate their arrangements with us or fail to perform their services efficiently, become unwilling or unable to provide payment processing services to us or change the services or terms of service provided to us, each of which would adversely affect our relationships with customers and could cause customers to discontinue using our applications and adversely affect our operating results. In addition, we cannot guarantee that credit card companies will not increase the transaction fees we incur for each registration we process. Any increase in transaction fees would require us to increase the prices we charge for our products and services or negatively impact our profitability, either of which could adversely affect our business, financial condition and results of operations. In addition, if credit card payment processors and service providers fail or no longer agree to provide their services, our customer relationships could be adversely affected and we could lose business and revenue.

We are subject to the rules and regulations adopted by the card networks, such as Visa, MasterCard and American Express, and if we fail to adhere to their rules and regulations, we would be in breach of our contractual obligations to payment processors and merchant banks, which could subject us to damages and liability and could eventually prevent us from processing or accepting credit cards.

The card networks, such as Visa, MasterCard and American Express, have adopted rules and regulations that apply to all merchants who process and accept credit cards for payment of goods and services. We are obligated to comply with these rules and regulations as part of the contracts we enter into with payment processors

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and merchant banks. The rules and regulations adopted by the card networks include the Payment Card Industry Data Security Standards, or the PCI DSS. Under the PCI DSS, we are required to adopt and implement internal controls over the use, storage and security of card data to help prevent credit card fraud. We assess our compliance with the PCI DSS on a periodic basis, and make necessary improvements to our internal controls. If we fail to comply with the rules and regulations adopted by the card networks, including the PCI DSS, we would be in breach our contractual obligations to payment processors and merchant banks. Such failure to comply may subject us to fines, penalties, damages and civil liability, and could eventually prevent us from processing or accepting credit cards. Further, there is no guarantee that even if we comply with the rules and regulations adopted by the card networks, we will be able to maintain our compliance. We also cannot guarantee that such compliance will prevent illegal or improper use of our payments systems or the theft, loss or misuse of the credit card data of customers or participants. Any such event would harm our reputation and business.

We face potential liability for the fraudulent activities of organizers and their employees, participants and our employees.

We have potential liability for losses caused by the fraudulent activities of our organizers or their employees. An organizer, or one of an organizer’s employees, could use a stolen or counterfeit credit card or credit card number to record a false sales transaction, or intentionally fail to deliver merchandise, events, activities or services sold in an otherwise valid transaction. We may also face potential liability for credit card fraud by participants who register for an activity or complete a transaction through our applications. A participant could use a stolen credit card or a stolen credit card number in a credit card-not-present transaction, to register for an activity or event or purchase merchandise or services. In a traditional credit card-present transaction, if the merchant uses the credit card, receives authorization for the transaction from the credit card issuing bank and verifies the signature on the back of the credit card against the paper receipt signed by the individual using the credit card, the credit card issuing bank remains liable for any loss. In a fraudulent credit card-not-present transaction, we could be liable to the credit card issuing bank for any loss arising from the transaction, even if we receive authorization for the transaction from the same credit card issuing bank. In addition, we face potential fraud if our employees misappropriate or disclose to others who misappropriate the credit card or other sensitive information of organizers or participants. We have implemented systems and procedures designed to detect and reduce the impact of organizer, participant and employee fraud, but we cannot guarantee that these measures are or will be effective. It is possible that incidents of fraud could increase in the future, and they may remain undetected for extended periods of time if our systems and procedures are not effective. Significant or recurring credit card fraud could adversely affect our business, financial condition and operating results.

We may face significant chargeback liability if our customers refuse or cannot reimburse chargebacks resolved in favor of participants who register through our applications.

We may have potential liability for chargebacks associated with the transactions we process for certain of our organizer customers. If a billing dispute relating to a transaction is not ultimately resolved in favor of the organizer, the disputed transaction is charged back to our bank and credited to the credit card account of the participant. If we or our processing banks are unable to collect the chargeback from the organizer’s account, or if the organizer refuses or is financially unable to reimburse us for the chargeback amount, we bear the risk of loss for the amount of the refund paid to the participant’s credit card account. We have in the past experienced chargebacks related to cancelled and fraudulent events and transactions. Significant or recurring chargeback amounts could adversely affect our business, operating results and financial condition.

Our business is subject to a variety of U.S. and foreign laws, many of which are unsettled and still developing, and which could subject us to claims or otherwise harm our business.

We are subject to a variety of laws in the United States and abroad that are continuously evolving and developing, and that are costly to comply with, can require significant management time and effort and can subject us to claims or other remedies. Existing and future laws and regulations may be adopted, interpreted or implemented in a manner that is inconsistent with our current business practices or that require changes to such practices, our privacy policy, the features and functionality of our applications or the design of our websites. These regulations and laws may cover employment, taxation, tariffs, user privacy, data protection, pricing, content, copyrights, distribution, electronic contracts and other communications, consumer protection, broadband residential Internet access and the characteristics and quality of services. It is not clear how existing laws governing issues such as property ownership, sales and other taxes, libel and personal privacy apply to the Internet. If we are not able to comply with these laws and regulations or if we become liable under them, we could be directly harmed, and we may be forced to implement new measures to reduce our exposure to this liability. This may require us to expend substantial resources or to discontinue certain practices, which could negatively affect our business, financial condition and results of operations. In addition, the increased attention focused on liability as a result of lawsuits and legislative proposals could harm our reputation or otherwise harm our business.

Our quarterly operating results are volatile, subject to seasonal fluctuations and difficult to predict, all of which may adversely affect our stock price.

Our quarterly operating results have fluctuated in the past and may fluctuate significantly in the future due to a variety of factors, many of which are outside of our control. For example, we generally experience seasonality due to the greater number of activities and events during the spring and summer months in North America. Other factors that may contribute to the variability of our quarterly and annual results include:

• our ability to accurately forecast revenue and appropriately plan our operating expenses;

• our ability to attract new, and increase the engagement and penetration of our existing, activity and event organizers;

• our ability to increase the number of participants who register for the activities and events offered by our customers using our applications;

• our ability to control the cost and time required to transition certain customers to ActiveWorks;

• our ability to maintain and effectively manage an adequate rate of growth;

• our ability to successfully enter new markets and manage our planned global expansion;

• our ability to successfully manage and integrate our past and any future acquisitions of businesses, applications or technologies;

• our ability to limit interruptions in service and prevent the compromise of customer or participant data;

• the effects of natural or man-made catastrophic events;

• changes in the laws, regulations and legal standards affecting our business;

• our ability to keep pace with changes in technology and the offerings by our competitors;

• our ability to provide a high-quality participant experience through our applications and online communities;

• our ability to design and implement effective internal controls and processes;

• our ability to attract and retain qualified employees and key personnel;

• our ability to protect our intellectual property, including our technology platform and our key brands;

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• our ability to control the costs associated with defending intellectual property infringement and other claims by third parties; and

• the impact of worldwide economic conditions, including the resulting effect on consumer spending.

As a result, we believe that quarterly comparisons of our operating results are not necessarily meaningful and that you should not rely on the results of one quarter as an indication of our future performance. In addition, our operating results may continue to vary significantly from one quarter to the next as part of our normal business cycle, which may adversely affect our stock price.

If we do not continue to enhance and improve our existing applications and successfully introduce new applications, our ability to maintain the pricing of our applications and to attract and retain organizer customers will be harmed.

In the past we have grown our business in part through improving the functionality and features of our existing applications and introducing new applications to our customers, such as fundraising, real-time event tracking and merchandising for activities and events. If we fail to continue to offer new applications that increase the number of participants who register online for our customers’ activities and events, and improve the ability of our customers to manage their activities and events, we may be unable to maintain the pricing of our applications. We cannot assure you that we will be able to timely and adequately develop additional functions and features or introduce new applications to satisfy the demands of our customers. Further, developing new technologies and applications entails significant technical and business risks. We cannot assure you that any new functions, features or applications will achieve the level of acceptance required for us to generate sufficient revenue to offset our development costs. If we do not continue to enhance and improve the functions and features of our existing applications and successfully introduce new applications, our ability to maintain the pricing of our applications and to attract and retain organizer customers will be harmed.

Activity and event organizers may not widely adopt our applications to manage the important aspects of their activities and events, which would limit our ability to grow our business.

Our ability to grow our business and increase revenue depends on our success in educating activity and event organizers about the potential benefits of our cloud computing applications. Cloud computing applications for organizing and managing important aspects of activities and events are relatively new, and have not been widely adopted by activity and event organizers. Concerns about cost, fraud, privacy, security, reliability and other issues may cause activity and event organizers not to adopt our applications. Moreover, activity and event organizers who have already invested substantial resources in other registration and management systems or methods may be reluctant to adopt a new approach like ours to supplement or replace existing systems or methods. If activity and event organizers do not widely adopt applications such as ours, our ability to grow our business will be limited.

If we fail to expand our customers’ use of our applications, our ability to execute our growth strategy and increase our revenue will be limited.

Many of our organizer customers initially make a purchase of only one or a limited number of our available applications or use our applications for only one or a limited number of their activities or events. Our ability to grow our business and increase revenue is dependent on our ability to further penetrate our existing customers by selling additional applications to them, and by increasing the number of activities and events for which they deploy our applications. If we fail to expand the usage of our applications by our existing customers, our ability to execute our growth strategy and increase our revenue will be limited.

Many individuals are using devices other than personal computers to access the Internet. If users of these devices do not widely adopt solutions we develop for these devices, our business could be adversely affected.

The number of people who access the Internet through devices other than personal computers, including mobile telephones, personal digital assistants, smart phones and handheld tablets or computers, has increased dramatically in the past few years and is projected to continue to increase. If we are unable to develop mobile solutions to meet the needs of our users, our business could suffer. Additionally, as new devices and new platforms are continually being released, it is difficult to predict the problems we may encounter in developing versions of our solutions for use on these alternative devices, and we may need to devote significant resources to the creation, support, and maintenance of such devices.

If we are unable to increase the percentage of participants who register through our websites, our ability to grow our business will be impaired.

                In addition to expanding and increasing penetration within our organizer customer base, the growth of our business depends on our ability to increase the percentage of participants who elect to register for activities and events through our websites. Our ability to increase the percentage of participants who register through our websites depends on our ability to make our online registration and reservation processes simple, efficient, secure and cost-effective, as well as on our ability to develop applications, such as our online communities, activity and event information and searchable database of events, that encourage participants to use our websites. Our ability to increase participant use of our websites also depends on the ability and willingness of our organizer customers to increase the awareness of our websites to their participants. We cannot control the level of effort that organizers expend or the extent to which any of them will be successful in increasing awareness of our websites among their participants. We may not be able to prevent organizers from devoting greater resources to support other registration methods developed by them or other third parties. If we are unable to increase the percentage of participants who register for activities and events through our websites, our ability to grow our business will be impaired.

We may not be successful in expanding into new business areas within the activity and event registration and management market, which could harm our business and future prospects.

Our long-term strategic plan involves expanding our applications into new business areas within the activity and event registration and management market. We cannot assure you that our efforts to expand our business in this manner will succeed. We also cannot assure you that we will develop any new applications required to successfully compete in these new business areas in a cost-effective or timely manner. The lack of market acceptance of such efforts or our inability to generate satisfactory revenue to offset the development costs could harm our business and limit our future prospects.

The sales cycle for certain of our applications can be long, and we may not recognize revenue until completion of the entire sale, which makes it difficult for us to forecast our operating results.

It can take us between three and nine months to complete a sale to an activity or event organizer, and at times it may take up to one year or longer. The period between our initial contact with a potential customer and the completion of a sale may be relatively long due to several factors, including:

• many activities and events occur only annually;

• our need to educate potential customers about the uses, benefits, safety and reliability of our applications;

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• activity and event organizers have budget cycles which can affect the timing of purchases; and

• some organizers, such as park and recreation department administrators, have lengthy internal approval processes before having the required authority to purchase our applications.

In addition, our customers may demand customization of the applications we provide them. As a result, these sales opportunities may require us to devote greater sales and technical resources, increasing the cost and time required to complete sales. As a result, it is difficult to predict when particular sales will occur or be completed, which adversely impacts our ability to accurately forecast our operating results.

Negative factors affecting the activities and events market have an adverse effect on our business and revenue.

We primarily generate revenue from the registration and reservation fees paid by the participants in the activities and events offered by our organizer customers. As a result, our business is directly affected by factors affecting the activities and events market, including global, national or local consumer trends, adverse weather, security concerns or environmental disasters. Our performance is also subject to economic conditions and their impact on levels of consumer spending, which may remain depressed, or be subject to further deterioration, for the foreseeable future. Some of the factors that have had and may continue to have an adverse impact on discretionary consumer spending include general economic conditions, unemployment, consumer debt, reductions in net worth, disruptions in the residential real estate or mortgage markets, higher taxation, energy prices or interest rates and decreases in consumer confidence and other macroeconomic factors. Because spending for activities is generally considered to be discretionary, declines in consumer spending may have a more negative effect on our business than on those businesses that sell products or services considered to be necessities. Unfavorable changes in the above factors or in other business and economic conditions affecting our activity and event customers and their participants could cause organizers to cancel activities, result in fewer participants using our applications to register for activities, lower our profit margins, cause our activity and event customers to terminate their relationship with us or default on their payment obligations to us, any of which would have a material adverse effect on our financial condition and operating results.

If our customers do not renew their agreements for our applications, our business and operating results will suffer.

We currently generate a majority of our revenue from customers who have entered into contracts with us with terms ranging from three to seven years. However, we have a number of customers with contract terms under three years. Our customers are not obligated to renew their contracts with us. Even if our customers perceive our applications to be of value, budgetary, economic or other competitive pressures may prevent some customers from renewing their contracts. If we are not successful in continuing to renew or extend the terms of our contracts with our existing customers, our business and operating results will suffer.

Our ability to grow our business will be impaired if we do not provide high quality customer support in a timely and cost-effective manner.

Our ability to maintain and increase our customer base and the number of participants who use our applications depends significantly on our ability to provide high quality levels of service and support. Complaints or negative publicity about our service or support could severely diminish confidence in or use of our applications. We spend significant time and resources to hire, train and retain our service and support personnel. In addition, we are required to hire temporary employees each year to provide customer service and support during peak registration seasons. These temporary employees require training and education and take time to reach full productivity. If we are not successful in timely hiring, training and retaining our service and support personnel or otherwise fail to provide high quality service and support to organizers and participants, our ability to grow our business will be impaired.

Our ability to improve our operating margins may be limited by the requirements imposed by our government agency customers.

We acquired the state hunting and fishing business of Automated License Systems and Central Trust Bank in October 2008 and the campground registration business of ReserveAmerica in January 2009. As of September 30, 2012, we had more than 55 state or provincial customers in North America that are utilizing our technology for registration and management services related to hunting, fishing, and campgrounds. Our government agency customers often require us to customize our applications and provide additional services to their participants to qualify for these contracts. For example, we are typically required to maintain call centers for these customers to allow participants to register telephonically and receive telephonic customer service and support. We continue to focus on ways to encourage participants to use the self-service features available through our websites, however, each year we are required to hire temporary employees and independent contractors to staff our call centers during peak registration periods. A number of our state customers require us to maintain a physical call center located in their particular state. Additionally, our state customers typically require us to provide third-party audits of our operations. These additional requirements are costly to comply with and add to the complexity of our business. If we are unable to properly manage and control the cost of the additional services required by our government agency customers, our operating margins will suffer and our business and results would be harmed.

We may be unsuccessful in expanding our operations outside of North America, which could negatively impact our growth strategy, revenue and future growth.

Our headquarters are located in the United States. To date, we have operated primarily in North America. Expansion outside of North America is an important aspect of our future growth strategy. Our ability to expand outside of North America involves various risks and difficulties, including:

• incurring significant expenses in advance of generating material revenue as we attempt to establish our presence in international markets;

• operating in unfamiliar competitive environments;

• distraction of management and company resources;

• different participant preferences and participation patterns than those in North America;

• varied, unfamiliar and unclear legal and regulatory requirements and restrictions;

• potentially greater susceptibility to fraud and security breaches;

• pricing controls, legal, political or systemic restrictions on the ability of U.S. companies to compete with foreign competitors or otherwise do business in foreign countries;

• less extensive adoption of the Internet as a commerce medium or information source and increased restrictions on privacy or the use of customer and participant data;

• lack of infrastructure to adequately conduct electronic commerce transactions and data storage and management;

• difficulties in staffing and managing foreign operations;

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• greater difficulty in accounts receivable collection;

• currency fluctuations or other restrictions on foreign currency; and

• potential adverse tax consequences.

As a result of these obstacles, we may find it difficult to expand outside of North America or we may be unsuccessful in our attempt to do so, which would negatively impact our growth strategy, revenue and future growth.

We may not timely and effectively scale and adapt our existing technology and network infrastructure to ensure that our websites are accessible with little or no perceptible load times.

A key element in our continued growth is the ability of organizers and participants to access our websites at all times with little or no perceptible load times. This has become increasingly difficult to achieve as our applications have become more complex and our user traffic has increased. Strains on the capacity of our technology infrastructure caused by growth in the numbers of organizers and participants accessing our websites, new applications and features and overall engagement on our websites, especially at the opening of the registration period for a popular activity, have in the past resulted, and may in the future result in, slower load times or system failures. We have experienced website disruptions, outages and other performance problems due to a variety of factors, including maintaining multiple legacy systems, infrastructure changes, power failure, telecommunication outages, human or software errors and capacity constraints caused by overwhelming numbers of users accessing our websites simultaneously. If our websites are not available when users attempt to access them or do not function as expected, our customers may select another option to organize and manage their activities and events and participants may select alternative means of researching and registering for activities and events, each of which would negatively impact our business.

We expect to continue to make significant investments to upgrade our technology and network infrastructure to handle increased usage and to enable the timely and effective release of new applications. These upgrades and expansions are complex and in the past have resulted, and in the future could result, in website outages or inefficiencies or operational failures. To the extent that we do not effectively address infrastructure challenges, upgrade our systems as needed and continually develop our technology and network architecture, our business and operating results may be harmed.

If Internet search engines’ methodologies are modified or our search result page rankings decline for other reasons, participant engagement in our websites and online communities could decline.

We depend in part on various Internet search engines to direct a significant amount of traffic to our websites. Our ability to maintain the number of potential participants directed to our websites is not entirely within our control. Our competitors’ search engine optimization, or SEO, efforts may result in their websites receiving a higher search result page ranking than ours, or Internet search engines could revise their methodologies in an attempt to improve search results, which could adversely affect placement of our search result page rankings. If search engine companies revise their search algorithms in ways that are detrimental to new participant growth on our websites or in ways that make it more difficult for organizers or participants to use our websites, or if competitors’ SEO efforts are more successful than ours, the overall growth in the numbers of organizers and participants using our websites could slow, participant engagement could decrease, and we could lose existing participants and become less attractive to existing and prospective organizer customers. Our websites have experienced fluctuations in search result rankings in the past, and we anticipate similar fluctuations in the future. Any reduction in the number of participants directed to our website would harm our business and operating results.

Our ability to establish, maintain and strengthen our brands in the activities and events market is critical to our growth strategy.

Promoting and maintaining our brands is critical to our efforts to attract and retain our organizer customers and to increase the number of participants who use our applications. We also believe brand recognition is critical to allow us to effectively compete against the growing number of Internet sites and relatively low initial barriers to entry in certain of our markets. Maintaining, protecting and enhancing our brands is also critical to expanding our base of organizers, end users, advertisers, and other strategic partners, and increasing their engagement with our websites, and will depend largely on our ability to be a technology leader and continue to provide high-quality applications, which we may not do successfully. If we are unable to establish and maintain our brands, including THE ACTIVE NETWORK, ACTIVE, ACTIVE.COM, ACTIVENET, ACTIVEWORKS, REGONLINE, RESERVEAMERICA and STARCITE, as leaders for online registration and management applications in the activities and events market, our business and prospects would be materially and adversely affected.

We may experience difficulty in developing marketing services that are attractive to advertisers and promoters.

The market for marketing services such as ours is relatively new and rapidly evolving. We cannot be certain this market will continue to grow. Our marketing services customers may determine that it is in their best interest to spend their marketing budgets through other forms of promotional or advertising activities. As a result, if we fail to develop compelling marketing services for advertisers and promoters, our ability to sustain and grow our marketing services business would be adversely affected.

If we fail to maintain and grow our user base of participants and the data we gain access to from such participants, potential advertisers may not utilize our marketing services, which may result in reduced revenue.

We use a wide range of data to expand, refine and target our marketing services on behalf of our customers. We gain access to most of this data from participants as they “opt-in” to receive special offers and other direct marketing opportunities from our marketing services customers and us and the registration process for activities and events using our application services. If we are unable to maintain and grow our user base of participants and the data we gain access to from such participants, potential advertisers may not utilize our marketing services and we may lose significant marketing services revenue.

We might not be able to attract and retain employees, which could impede our ability to grow and successfully generate our business.

Any failure to attract and retain qualified, experienced employees could adversely affect our ability to grow our business. To execute our continuing growth plans, we need to increase the size and maintain the quality of our staff of direct sales and business development representatives and technology development staff. To be successful, we must attract and retain highly qualified sales and other personnel with specialized skill sets focused on the activities and events industry. Competition for qualified and experienced sales and other personnel can be intense, and we might not be successful in attracting and retaining such individuals. We have from time to time experienced, and we expect to continue to experience in the future, difficulty in hiring and retaining a sufficient number of highly skilled employees with appropriate qualifications for our business.

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Our business and prospects could be harmed if we lose members of our senior management team.

Our performance is substantially dependent on the continued services and on the performance of our senior management and other key personnel, particularly David Alberga, our Chairman of the Board and Executive Chairman, Matthew Landa, our Chief Executive Officer and Director, Darko Dejanovic, our President, and Scott Mendel, our Chief Financial Officer. Our performance also depends on our ability to retain and motivate other officers and key employees. We do not have long-term employment agreements with the members of our senior management or other key personnel. In addition, we do not maintain key-man insurance on these individuals. The loss of the services of any member of our senior management or other key employee for any reason would harm our business.

If we cannot maintain our corporate culture as we grow and evolve, we could lose the innovation, creativity and teamwork that this culture has fostered.

We believe that a critical contributor to our success has been our corporate culture, which we believe fosters innovation, creativity and teamwork. Maintaining this corporate culture will become increasingly difficult as we grow and implement the more complex organizational management structures necessary to support our growth and to comply with the requirements imposed on public companies. Failure to maintain and further develop our culture could negatively impact our future success. In addition, our initial public offering may have created disparities in wealth among our employees, which could adversely impact relations among employees and our corporate culture in general.

If the protection of our technology platform, domain name, trademarks and other proprietary rights is inadequate, our business would be harmed.

Our commercial success is dependent in part on obtaining, maintaining and enforcing our intellectual property rights. We rely on a combination of trade secret, trademark, copyright, trade dress, domain name and patent laws in the United States and in the other jurisdictions in which we operate, together with confidentiality agreements and technical measures, to protect our intellectual property. We pursue the registration of our trademarks, service marks and domain names in the United States. Our registered trademarks in the United States include THE ACTIVE NETWORK, ACTIVE, ACTIVE.COM, ACTIVENET, ACTIVEWORKS, REGONLINE, RESERVEAMERICA and STARCITE. As of September 30, 2012, we have been granted five patents by the United States Patent and Trademark Office and have seven patent applications pending in the United States. Our issued patents begin to expire in February 2019. We rely more heavily on trade secret protection than patents to protect our proprietary technology. To protect our trade secrets, we control access to our proprietary systems and technology and enter into confidentiality and invention assignment agreements with our employees and consultants and confidentiality agreements with other third parties. In addition, due to the relatively high cost associated with registering all of our copyrights, we generally rely on common-law copyright laws to protect these rights.

The steps we have taken and take in the future to protect our proprietary rights may be inadequate. For example, confidentiality agreements with our employees, licenses, independent contractors and other advisors may not effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. In addition, third parties may independently discover trade secrets and proprietary information, and in such cases, we may not be able to successfully assert trade secret rights against such parties. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights. If we are unable to obtain, maintain and enforce intellectual property protection covering our technology platform, brands and domain names, others may be able to make, use or sell products that are substantially similar to ours without incurring the sizeable development costs that we have incurred, which would adversely affect our ability to compete.

In addition, the domain names for the websites that we maintain are important to our business. The regulation of domain names in the United States and in foreign countries is unclear and subject to change. Governing bodies may establish additional top-level domains, appoint additional domain name registrars or modify the requirements for holding domain names. As a result, we cannot assure you that we will be able to acquire or maintain relevant domain names. The relationship between regulations governing domain names and laws protecting trademarks and similar proprietary rights is also unclear. As a result, we may be unable to prevent third parties from acquiring domain names that are similar to, infringe upon or otherwise decrease the value of our domain names, and trademarks and other proprietary rights. Any such inability could have a material adverse effect on our business, results of operations, financial condition and prospects.

Intellectual property claims against us could be costly and could hurt our business, operating results, financial condition and prospects.

                We cannot predict whether third parties will assert claims of infringement or other intellectual property claims against us. If we are forced to defend against third party claims, whether they are with or without merit or are determined in our favor, we could face expensive and time consuming litigation, which could distract our technical and management personnel. In the past, we received a notice from a third party alleging that our Internet fundraising program and related website operations infringe patents published by such third party. In the future, we may receive other notices from, or have lawsuits filed against us by, third parties alleging infringement. If an infringement claim is determined against us, we may be required, or deem it advisable, to develop non-infringing intellectual property or enter into costly royalty or licensing agreements. Such royalty or licensing agreements, if required, may be unavailable on terms that are acceptable to us, or at all. If a third party successfully asserts an infringement claim against us and we are required to pay monetary damages or royalties or we are unable to develop suitable non-infringing alternatives or license the infringed or similar intellectual property on reasonable terms and on a timely basis, it could significantly harm our business. In addition, third parties may seek to invalidate our intellectual property.

As a result of becoming a public company, we will be obligated to develop and maintain proper and effective internal controls over financial reporting. We may not complete our analysis of our internal controls over financial reporting in a timely manner, or these internal controls may not be determined to be effective, which may adversely affect investor confidence in our company and, as a result, the value of our common stock.

We will be required, pursuant to Section 404 of the Sarbanes-Oxley Act (“Section 404”) to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting. Our first report on compliance with Section 404 is required to be furnished in connection with our financial statements for the fiscal year ending December 31, 2012. Section 404 required controls and other procedures to be designed to ensure that information required to be disclosed by us in the reports that we file with the Securities and Exchange Commission or SEC, is disclosed accurately and is recorded, processed, summarized and reported with the time periods specified in SEC rules and forms. We are currently performing the costly and challenging process of compiling the system and processing documentation necessary to perform the evaluation needed to comply with Section 404. We cannot assure you that there will not be material weaknesses or significant deficiencies in our internal controls in the future. If we are unable to assert that our internal control over financial reporting is effective, or if our auditors are unable to express an opinion on the effectiveness of our internal controls, we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common stock to decline.

Our reserves for state sales taxes may not be sufficient.

Certain states in which we operate impose sales, purchase and use taxes on transactions completed through our applications. At this time, many of our systems do not automatically capture the sales, purchase and use taxes we are required to remit to these states.

As a result, we are required to analyze our transactions, and reserve an appropriate amount for the payment of state sales, purchase and use taxes. We regularly review the procedures we use to calculate our sales tax obligations as well as our sales tax reserves, and make adjustments when appropriate. Although we believe that our sales tax reserves are adequate, we may not be fully reserved and it is possible that we may be obligated to pay amounts in excess of our reserves.

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We may not be able to realize the tax benefits associated with the net operating losses we have recorded to date.

As of December 31, 2011, we had federal tax net operating loss carry forwards of approximately $146.6 million which will begin to expire between 2019 and 2031 and state tax net operating loss carry forwards of approximately $105.6 million which begin to expire between 2012 and 2031. If we do not maintain sufficient profitability prior to the expiration of these net operating loss carry forwards, then we will not be able to fully use such tax attributes to our benefit. Additional limitations on the annual use of these net operating loss carry forwards may also apply due to subsequent issuances of our stock.

Covenants in our Credit Agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition and liquidity could be adversely affected.

In December 2011, we entered into a Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Sole Lead Arranger and Sole Book Manager, and the lenders from time to time a party thereto, as thereafter amended. We must comply with various covenants under our Credit Agreement that limit our ability to, among other things:

• incur or assume liens or additional debt or provide guarantees in respect of obligations of other persons;

• pay cash dividends or distributions or redeem or repurchase capital stock;

• prepay, redeem or repurchase debt;

• make loans and investments;

• enter into agreements that restrict distributions from our subsidiaries;

• sell assets and capital stock of our subsidiaries;

• enter into certain transactions with affiliates; and

• consolidate or merge with or into, or sell substantially all of our assets to, another person.

In addition, under our Credit Agreement, we are required to maintain specified financial ratios. Our ability to meet these financial covenants can be affected by events beyond our control, and we may be unable to meet these tests. In addition, our failure to maintain effective internal controls to measure compliance with these financial covenants could affect our ability to take corrective actions on a timely basis, and could result in us being in breach of this covenant. Our Credit Agreement provides that our breach or failure to satisfy certain covenants constitute an event of default. Upon the occurrence of an event of default, the lenders could elect to terminate any commitment under our Credit Agreement and declare all amounts outstanding to be immediately due and payable. If we are unable to repay those amounts, our financial condition could be adversely affected. In addition, termination of our Credit Agreement could also adversely impact our liquidity.

Our cash, cash equivalents and short-term investments are subject to a risk of loss based upon the solvency of the financial institutions in which they are maintained.

We maintain the majority of our cash and cash equivalents in accounts with major financial institutions within the United States, in the form of demand deposits and money market accounts. Our deposits in these institutions may generally exceed the amounts of insurance provided, or deposits may not at all be covered by insurance. If any of these institutions become insolvent, it could substantially harm our financial condition and we may lose some, or all, of such deposits.

Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly change our reported or expected financial results.

Generally accepted accounting principles and related accounting pronouncements, implementation guidelines and interpretations with regard to a wide range of matters that are relevant to our business, including but not limited to, revenue recognition, allowances for doubtful accounts, software development costs, stock-based compensation, business combinations, impairment of goodwill, intangible assets and long-lived assets, and accounting for income taxes are highly complex and involve many subjective assumptions, estimates and judgments by our management. Changes in these rules or their interpretation or changes in underlying assumptions, estimates or judgments by our management could significantly change our reported or expected financial performance.

We are currently in the process of transitioning certain of our customers who are using the legacy systems we inherited in our acquisitions to ActiveWorks. Until we complete this transition, we may not be able to compare our key business metrics on a period-to-period basis in a manner consistent with the rest of our business, and as a result, our ability to manage our business could be adversely affected.

                We manage our business based in part on key business metrics regarding the total number of customer organizations we serve and the total number of registrations we process during a specific financial period. We are currently in the process of transitioning our customers who are currently using the legacy systems we inherited in our acquisitions to ActiveWorks. Until we complete this transition, participants for certain activities and events will continue registering through these legacy systems. Certain of these legacy systems do not track customers and registrations in a manner consistent with the rest of our business. As a result, we need to use manual processes to accumulate these metrics, which could lead to errors. If we are unable to accurately compare our key business metrics on a period-to-period basis, our ability to manage our business could be adversely affected.

If the estimates and assumptions we use to determine the size of our target market, customer groups or the verticals within customer groups are inaccurate, our future growth rate may be limited and our business would be harmed.

We calculate the size of our target market, customers groups and verticals within customer groups, based on data published by third parties and on assumptions that we have made based on that data. We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. While we believe our market size information is generally reliable, such information is inherently imprecise. In addition, our projections, assumptions and estimates of future opportunities within our target market are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in this risk factors section. If third-party data proves to be inaccurate or we make errors in our assumptions based on that data, our future growth rate may be limited. In addition, these inaccuracies or errors may cause us to misallocate capital and other business resources, which could harm our business. For example, in the third quarter of 2011, we identified previously unreported registration data during the first and second quarters of 2011. As a result, we underreported the number of registrations for these prior periods. We identified that the underreporting resulted primarily from the prior lack of the reporting systems of two new state customers. The underreporting had no impact on our prior financial statements, nor do we believe the underreporting had a material adverse effect on our business; however, underreporting of registration data in the future could change the estimates and assumptions we use to determine the size of our target market and adversely impact our future growth rate.

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Risks Relating To Ownership Of Our Common Stock

Our stock price may be volatile.

The market price of our common stock may be subject to significant fluctuations. Factors that could affect our stock price include the following:

• fluctuations in our operating results or the operating results of our competitors;

• changes in estimates of our financial results or recommendations by securities analysts;

• changes in the estimates of the future size and growth rate of our markets;

• changes in accounting principles or changes in interpretations of existing principles, which could affect our financial results;

• conditions and trends in the markets we serve;

• changes in general economic, industry and market conditions;

• success of competitive applications and services;

• changes in market valuations or earnings of our competitors;

• changes in our pricing policies or the pricing policies of our competitors;

• announcements of significant new applications, contracts, acquisitions or strategic alliances by us or our competitors;

• changes in legislation or regulatory policies, practices or actions;

• the commencement or outcome of litigation involving our company, our general industry or both;

• recruitment or departure of key personnel;

• changes in our capital structure, such as future issuances of securities or the incurrence of debt;

• actual or expected sales of our common stock by the holders of our common stock; and

• the trading volume of our common stock.

In addition, the U.S. and worldwide stock markets in general have experienced significant price and trading volume fluctuations, and the market prices of technology and Internet companies have generally been extremely volatile and have experienced sharp share price and trading volume changes. These broad market fluctuations may adversely affect the trading price of our common stock.

The requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain qualified board members.

As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the New York Stock Exchange and other applicable securities rules and regulations. Compliance with these rules and regulations increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and operating results. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal controls over financial reporting. In order to maintain and, if required, improve our disclosure controls and procedures and internal controls over financial reporting to meet this standard, significant resources and management oversight may be required. As a result, management’s attention may be diverted from other business concerns, which could harm our business and operating results. Although we have already hired additional employees to comply with these requirements, we may need to hire more employees in the future, which will increase our costs and expenses.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory authorities may initiate legal proceedings against us and our business may be harmed.

Any new rules and regulations may increase the cost for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified executive officers and members of our board of directors, particularly to serve on our Board committees.

As a result of our public disclosure requirements, our business and financial condition has become more visible, which we believe may result in threatened or actual litigation, including by competitors and other third parties. If such claims are successful, our business and operating results could be harmed, and even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and operating results.

We do not expect to declare any dividends on our common stock in the foreseeable future.

We currently intend to invest our future earnings, if any, to fund the development and growth of our business. The payment of dividends will be at the discretion of our Board of Directors and will depend on our results of operations, capital requirements, financial condition, future prospects, restrictions imposed by applicable law, any limitations on payments of dividends present in any debt agreements we may enter into and other factors our Board of Directors may deem relevant. Consequently, stockholders may need to rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking cash dividends should not purchase our common stock.

Our directors, executive officers and significant stockholders hold a substantial portion of our stock, which may lead to conflicts of interest with other stockholders over corporate transactions and other corporate matters.

As of September 30, 2012, our directors, executive officers and beneficial holders of 10% or more of our outstanding common stock beneficially owned approximately 36% of our outstanding common stock, including restricted stock units awards vested and stock options exercisable within 60 days after September 30,

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2012. We are not aware of any stockholder or voting agreements or understandings between or among our directors, officers or current beneficial holders of 10% or more of our outstanding common stock except with respect to an agreement between Scott Schultz, one of our directors, and the United States Tennis Association, pursuant to which the United States Tennis Association receives the pecuniary benefit upon exercise of any options granted to Mr. Schultz. However, these stockholders, acting together, would be able to influence significantly all matters requiring stockholder approval, including the election of directors and significant corporate transactions such as mergers or other business combinations. This control could delay, deter or prevent a third party from acquiring or merging with us, which could adversely affect the market price of our common stock.

A large number of shares eligible for public sale or subject to rights requiring us to register them for public sale could depress the market price of our common stock.

The market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market in the future, and the perception that these sales could occur may also depress the market price of our common stock. From time to time, we may raise additional capital through issuances of equity or convertible debt securities, or issue additional equity for future acquisitions and may be required to register these securities with the SEC. Sales of our common stock pursuant to registration rights could cause our stock price to fall and make it more difficult for you to sell shares of our common stock.

If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they change their recommendations regarding our stock adversely, our stock price and trading volume could decline.

The trading market for our common stock will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. If any of the analysts who may cover us change their recommendation regarding our stock adversely, or provide more favorable relative recommendations about our competitors, our stock price would likely decline. If any analyst who may cover us were to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline.

Our future capital needs are uncertain, and we may need to raise additional funds in the future, which may not be available on acceptable terms or at all.

Our capital requirements will depend on many factors, including:

• acceptance of, and demand for, our applications;

• the costs of developing new applications or technology;

• the timing of transitioning our customers to ActiveWorks;

• the number and timing of acquisitions and other strategic transactions; and

• the costs associated with the growth of our business.

Our existing sources of cash and cash flows may not be sufficient to fund all of our activities. On December 30, 2011, we used approximately $40 million of cash (including certain deductions and holdbacks) to fund our acquisition of StarCite. While we believe we have sufficient capital available through our credit facility and ongoing revenue to conduct our plan of business for at least the next 12 months, we may need to raise additional funds following such time, and such funds may not be available on reasonable terms, or at all. Further, if we incur additional debt, it may increase our leverage relative to our earnings or to our equity capitalization. If we cannot raise funds on acceptable terms, we may not be able to develop or enhance our applications, execute our business plan, take advantage of future opportunities or respond to competitive pressures or unanticipated customer requirements.

If we issue additional shares of common stock to raise capital or for future acquisition purposes, it may have a dilutive effect on your investment.

If we raise additional capital through further issuances of equity or convertible debt securities, or issue additional equity for future acquisitions, our existing stockholders could suffer significant dilution in their percentage ownership of us. Moreover, any new equity securities we issue could have rights, preferences and privileges senior to those of holders of our common stock.

A further tightening of the credit markets may have an adverse effect on our ability to obtain short-term debt financing.

The recent deterioration of the global economy threatens to cause further tightening of the credit markets, more stringent lending standards and terms and higher volatility in interest rates. Persistence of these conditions could have a material adverse effect on our access to short-term debt and the terms and cost of that debt. As a result, we may not be able to secure additional financing in a timely manner, or at all, to meet our future capital needs which may have an adverse effect on our business, operating results and financial condition.

Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current directors and management team and limit the market price of our common stock.

Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may delay or prevent a change in control, discourage bids at a premium over the market price of our common stock and adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. These provisions include:

• dividing our board into three classes, with each class serving a staggered three-year term;

• prohibiting our stockholders from calling a special meeting of stockholders or acting by written consent;

• permitting our board to issue additional shares of our preferred stock, with such rights, preferences and privileges as they may designate, including the right to approve an acquisition or other changes in control;

• establishing an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to our board of directors;

• providing that our directors may be removed only for cause;

• providing that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum; and

• requiring the approval of our board of directors or the holders of a supermajority of our outstanding shares of capital stock to amend our bylaws and certain provisions of our certificate of incorporation.

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Although we believe these provisions collectively provide for an opportunity to receive higher bids by requiring potential acquirers to negotiate with our board, they would apply even if the offer may be considered beneficial by some stockholders. In addition, these provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management team by making it more difficult for stockholders to replace members of our board, which is responsible for appointing the members of our management.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities

None.

Use of Proceeds from Registered Securities

Our initial public offering of common stock was effected through a Registration Statement on Form S-1 (File No. 333-172254) that was declared effective by the Securities and Exchange Commission on May 24, 2011, which registered an aggregate of 12,650,000 shares of our common stock, including 1,650,000 shares that the underwriters had the option to purchase. On May 31, 2011, 8,222,222 shares of common stock were sold on our behalf and 4,427,778 shares of common stock were sold on behalf of the selling stockholders, including 1,650,000 shares sold by the selling stockholders upon exercise in full of the underwriters’ option to purchase additional shares, at an initial public offering price of $15.00 per share, for an aggregate gross offering price of $123,333,330 to us, and $66,416,670 to the selling stockholders. Merrill Lynch, Pierce, Fenner & Smith and Citigroup Global Markets Inc. served as the managing underwriters of the initial public offering. Following the sale of the shares in connection with the closing of the initial public offering, the offering terminated.

As a result of the offering, we received net proceeds of approximately $112.6 million, after deducting underwriting discounts and commissions of approximately $8.6 million and additional offering-related expenses, net of reimbursements, of approximately $2.1 million. We did not receive any proceeds from the sale of shares by the selling shareholders. No offering expenses were paid directly or indirectly to (i) any of our officers or directors or their associates, (ii) any persons owning 10% or more of any class of our equity securities, or (iii) any of our affiliates.

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There was no material change in the use of proceeds from our initial public offering as described in our final prospectus filed with the SEC pursuant to Rule 424(b). From the effective date of the registration statement through September 30, 2012, we have used the net proceeds of the offering for repayment of debt, funding for our recent acquisitions and for general corporate purposes, including expenditures for financing our growth, developing additional application services functionality and features, acquiring new customers and funding capital expenditures. We invested the funds received in short-term, interest bearing, investment-grade securities.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

On September 27, 2012, we announced the transition of David Alberga from his position as Chief Executive Officer to Executive Chairman as well as the promotions of Matthew Landa to Chief Executive Officer and Darko Dejanovic to President. In connection with these changes, on October 29, 2012, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) approved the following changes to the compensatory arrangements of these named executive officers to be effective immediately: (i) Mr. Alberga’s annual base salary decreased to $450,000, (ii) Mr. Landa’s annual base salary increased to $525,000, and (iii) Mr. Dejanovic’s annual base salary increased to $500,000. On October 30, 2012, the Board ratified the Committee’s approval of Mr. Landa’s increase in base salary. In addition, on October 29, 2012, the Committee approved a grant of 100,000 restricted stock units (“RSUs”) to Mr. Dejanovic under the Company’s 2011 Equity Incentive Plan. The RSUs awarded to Mr. Dejanovic will vest in four equal annual installments beginning on September 24, 2013, subject to continued employment through such date.

ITEM 6. EXHIBITS

The exhibits listed in the accompanying Exhibit Index are filed or incorporated by reference as part of this Quarterly Report on Form 10-Q.

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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 thereunto duly authorized.

	The Active Network, Inc.
Date: November 2, 2012	By:	/s/    MATTHEW LANDA
		Matthew Landa
		Chief Executive Officer (Principal Executive Officer)
Date: November 2, 2012	By:	/S/    SCOTT MENDEL
		Scott Mendel
		Chief Financial Officer (Principal Financial and Accounting Officer)

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INDEX TO EXHIBITS

Exhibit Number	Description
10.44#	Form of Amended and Restated Change in Control Agreement by and between Sheryl Roland and Registrant.
10.45#	Form of Performance Based Restricted Stock Unit Notice under the 2011 Equity Incentive Plan.
10.46#	Form of Performance Based Exercisability Option Notice under the 2011 Equity Incentive Plan.
31.1	Certification of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated pursuant to the Securities Exchange Act of 1934, as amended.
31.2	Certification of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 promulgated pursuant to the Securities Exchange Act of 1934, as amended.
32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Calculation Linkbase Document.
101.LAB**	XBRL Taxonomy Label Linkbase Document.
101.PRE**	XBRL Taxonomy Presentation Linkbase Document.

* These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934 and are not to be incorporated by reference into any filing of The Active Network, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.

** Pursuant to applicable securities laws and regulations, we are deemed to have complied with the reporting obligation relating to the submission of interactive data files in such exhibits and are not subject to liability under any anti-fraud provisions of the federal securities laws as long as we have made a good faith attempt to comply with the submission requirements and promptly amend the interactive data files after becoming aware that the interactive data files fail to comply with the submission requirements. Users of this data are advised that, pursuant to Rule 406T, these interactive data files are deemed not filed and otherwise are not subject to liability.

# Indicates management contract or compensatory plan

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EX-10.44

Exhibit 10.44

To: Sheryl Roland

From: Kory Vossoughi

Effective Date: July 30, 2012

Re: Amended and Restated Change in Control Agreement

The Active Network, Inc. (the “Company”) considers it essential to the best interests of its stockholders to foster the continuous employment of the Company’s key management personnel. In this regard, the Company’s Board of Directors (the “Board”) recognizes that the possibility of a change in control of the Company may exist in the future and the uncertainty and questions that it may raise among management could result in the departure or distraction of management personnel to the detriment of the Company and its shareholders.

The Board has decided to reinforce and encourage the continued attention and dedication of members of the Company’s management, including yourself, to their assigned duties without the distraction arising from the possibility of a change in control of the Company.

In order to induce you to remain in its employ, the Company hereby agrees that after this letter agreement (this “Agreement”) has been fully executed, you shall receive the benefits set forth in this Agreement in the event that your employment with the Company is terminated under the circumstances described below subsequent to a Change in Control (as defined below).

1. Change in Control. You shall receive no benefits under this Agreement unless there has been a Change in Control. For purposes of this Agreement, a “Change in Control” shall mean and include each of the following:

(a) A transaction or series of transactions (other than an offering of the Company’s common stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or

(b) The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (i) a merger, consolidation, reorganization, or business combination or (ii) a sale or other disposition of all or substantially all of the Company’s assets or (iii) the acquisition of assets or stock of another entity, in each case other than a transaction:

(A) Which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining

outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and

(B) After which no person or group beneficially owns voting securities representing fifty percent (50%) or more of the combined voting power of the Successor Entity; provided, however, that no person or group will be treated for purposes of this definition as beneficially owning fifty percent (50%) or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or

(c) The Company’s stockholders approve a liquidation or dissolution of the Company.

The Board will have full and final authority, which will be exercised in its discretion, to determine conclusively whether a Change in Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters relating thereto. Notwithstanding the foregoing, the following events shall not constitute a “Change in Control”: (i) a mere reincorporation of the Company; (ii) a transaction undertaken for the sole purpose of creating a holding company that will be owned in substantially the same proportion by the persons who held the Company’s securities immediately before such transaction; (iii) the Company’s (or any successor entity’s) initial public offering of its equity securities; or (iv) a transaction effected primarily for the purpose of financing the Company with cash (as determined by the Board in its discretion and without regard to whether such transaction is effectuated by a merger, equity financing or otherwise).

2. Severance Benefits

(a) Benefits Upon Termination. If a Change in Control occurs and your employment is terminated voluntarily by you for Good Reason (as defined below) within the twelve (12) month period immediately following the date of such Change in Control, or if your employment is terminated by the Company other than for Cause (as defined below) at any time, then, in lieu of any severance benefits to which you may otherwise be entitled under any severance plan or program of the Company, you shall be entitled to the benefits provided below:

(i) the Company shall, on the date of termination, pay to you your full earned but unpaid base salary, when due, through the date of termination at the rate in effect at the time notice of termination is given, plus all other amounts to which you are entitled under any compensation plan or practice of the Company at the time such payments are due;

(ii) subject to your compliance with Section 2(b) and Section 3, you shall be entitled to receive severance pay equal to your monthly Base Salary (as defined below) for a period of twelve (12) months, payable in a lump sum within fifteen (15) days of the Release Effective Date (as defined below). Your “Base Salary” will be the rate of your base salary from the Company as in effect on the date of your discharge from employment with the Company (or, if greater, the rate of your base salary from the Company immediately prior to the Change in Control);

(iii) subject to your compliance with Section 2(b) and Section 3, if you elect continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will pay the portion of the premiums of your group health insurance coverage, including coverage for your eligible dependents, that exceeds the contributions required by you immediately prior to your date of termination for a period of twelve (12) months following your date of termination; provided, further, that the Company will pay premiums for your eligible dependents only for coverage for which those eligible dependents were enrolled immediately prior to the date of termination of your employment. No premium payments will be made following the effective date of your eligibility for coverage by a health insurance plan of a subsequent employer. For the balance of the period that you are entitled to coverage under federal COBRA law, if any, you will be entitled to maintain such coverage at your own expense;

(iv) subject to your compliance with Section 2(b) and Section 3, with respect to the termination of your employment by the Company other than for Cause and other than within the twelve (12) month period immediately following the date of a Change in Control, the vesting and/or exercisability of such number of Stock Awards that would vest over the twelve (12) month period following your date of termination had you remained continuously employed by the Company through such period shall be automatically accelerated as of your date of termination. For purposes of this Section 2(a), “Stock Awards” means all stock options, restricted stock and such other awards granted pursuant to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof;

(v) subject to your compliance with Section 2(b) and Section 3, with respect to the termination of your employment by the Company other than for Cause or the termination of your employment by you for “Good Reason” within the twelve (12) month period immediately following the date of a Change in Control, one hundred percent (100%) of the unvested Stock Awards shall be automatically accelerated as of your date of termination;

(vi) you shall be entitled to receive an amount equal to your target annual bonus for the fiscal year during which the termination occurs, with such bonus determined assuming that all of the performance objectives for such fiscal year have been attained, prorated based on the number of days during such fiscal year you were employed by the Company; and(vii) subject to certain limited exceptions, your Stock Awards shall remain exercisable for a period of one year following the termination date.

(b) Release. Prior to the payment of any benefits under this Agreement, you will be required to execute a release (the “Release”) in the form attached hereto and incorporated herein as Appendix A or Appendix B, as applicable. Such Release will specifically relate to all of your rights and claims in existence at the time of the execution thereof and will confirm your obligations under the Company’s standard form of employee confidentiality and inventions agreement. As specified in the applicable Release, you will have a certain number of calendar days to consider whether to execute such Release, and you may revoke such Release within seven (7) calendar days after execution, if applicable. You must execute the Release and not revoke the Release in order to be entitled to benefits under this Agreement. Your “Release Effective Date” will be the later of (i) the day upon which you execute the Release or (ii) the day upon which the seven (7) day revocation period applicable to such Release, if any, expires without a revocation of such Release by you. Your Release Effective Date must be within fifty-five (55) days following the date of your termination of employment. If your Release Effective Date does not occur within fifty-five (55) days of your termination of employment, you will not be entitled to benefits under this Agreement.

(c) No Mitigation. Subject to Section 2(a)(iii) above, you shall not be required to mitigate the amount of any payment provided for in this Section 2 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 2 be reduced by any compensation earned by you as the result of employment by another employer or self-employment, by retirement benefits, by offset against any amounts (other than loans or advances to you by the Company) claimed to be owed by you to the Company, or otherwise.

(d) Definition of Cause. For purposes of this Agreement, “Cause” shall mean (i) your gross negligence, breach of fiduciary duty involving personal profit, personal dishonesty, recklessness or willful misconduct with respect to your obligations or otherwise relating to the business of the Company; (ii) the material breach of any agreement between you and the Company, including Company policies and practices; (iii) your conviction or entry of a plea of nolo contendere for fraud or embezzlement, or any felony or crime of moral turpitude; or (iv) your willful neglect of duties or failure to satisfactorily perform stated duties, in each case as determined in good faith by the Board.

(e) Definition of Good Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events or conditions without your written consent:

(i) a material diminution in your base compensation (and you and the Company hereby agree that a diminution of your base compensation of at least ten percent (10%) shall be required for such change to be considered a material diminution);

(ii) a material change in the geographic location at which you must perform your duties (and you and the Company hereby agree that a requirement that you be based at any place outside of at least a 30-mile radius of your place of employment as of the date of this agreement, except for reasonably required travel on the Company’s business, shall be required for such change to be considered a material change);

(iii) a material diminution in your authority, duties or responsibilities; or

(iv) any other action or inaction that constitutes a material breach by the Company or any successor or affiliate of its obligations to you under this Agreement.

You must provide written notice to the Company of the occurrence of any of the foregoing events or conditions without your written consent within thirty (30) days of the occurrence of such event. The Company or any successor or affiliate shall have a period of thirty (30) days to cure such event or condition after receipt of written notice of such event from you. Any voluntary termination of your employment for “Good Reason” following such thirty (30) day cure period must occur no later than the date that is three (3) months following the initial occurrence of one of the foregoing events or conditions without your written consent.

(f) Notice of Termination. Any purported termination of your employment by the Company or by you (other than termination due to your death, which shall terminate your employment automatically) shall be communicated by a written notice of termination to the other party hereto in accordance with Section 5.

(g) Other Terminations. If your employment is terminated by the Company for Cause or by you without Good Reason, as a result of your death or disability, or if your employment is terminated for any reason prior to the occurrence of a Change in Control or more than twelve (12) months following the occurrence of a Change in Control, the Company shall not have any other or further obligations to you under this Agreement (including any financial obligations).

3. Restrictive Covenants.

(a) Employee Proprietary Information and Inventions Agreement. You acknowledge that you have executed and are subject to the provisions of the Company’s standard Employee Proprietary Information and Inventions Agreement (the “Employee Proprietary Information and Inventions Agreement”), which agreement is incorporated herein by reference.

(b) Noncompetition. While you are employed by the Company, you agree that you will not conduct business with any competitor of the Company, whether such business is conducted by you individually or as a principal, partner, member, stockholder, director, trustee, officer, employee or independent contractor.

(c) Nonsolicitation. While you are employed by the Company, and for a period of twelve (12) months after the date of your termination of employment with the Company, you agree that you will not in any manner, directly or indirectly (without the prior written consent of the Company) employ or solicit for employment for himself or any other business entity (other than the Company) any individual who was, during the period of your employment with the Company or the twelve (12) month period following the date of your termination of employment, an employee, officer, agent or representative of the Company.

(d) Remedies. If you breach or threaten to commit a breach of any of the provisions of this Section 3, the Company shall have the right to cease all payments and benefits to you under Section 2, in addition to any other rights and remedies available to the Company under law or in equity.

(e) Severability. If any court determines that any of the covenants set forth in this Section 3, or any part thereof, is invalid or unenforceable, the remainder of the covenants set forth in this Section 3 shall not thereby be affected and shall be given full effect, without regard to the invalid portions. If any court determines that any of the covenants set forth in this Section 3, or any part thereof, are unenforceable because of the duration of such provision or the area covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced. You hereby waive any and all right to attack the validity of the covenants set forth in this Section 3 on the grounds of the breadth of their geographic scope or the length of their term.

4. Successors; Binding Agreement. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Unless expressly provided otherwise, “Company” as used herein shall mean the Company as defined in this Agreement and any

successor to its business and/or assets as aforesaid. This Agreement shall inure to the benefit of and be enforceable by you and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

5. Notices. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement, provided that all notices to the Company shall be directed to the attention of its General Counsel, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

6. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by you and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without regard to its conflicts of law principles. The section headings contained in this Agreement are for convenience only, and shall not affect the interpretation of this Agreement. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law.

7. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

8. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

9. Entire Agreement. Except with respect to the Notice of Grant of Restricted Stock Units (Performance Vesting) in connection with the Stock Awards granted on May 23, 2012 and August 28, 2012 (the “Grant Notice”), this Agreement and the Employee Proprietary Information and Inventions Agreement set forth the entire agreement of the parties hereto in respect of the payment of severance and the other matters described herein and supersede all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto, and any prior agreement of the parties hereto in respect of the payment of severance, is hereby terminated and cancelled. Any of your rights hereunder shall be in addition to any rights you may otherwise have under benefit plans or agreements of the Company (other than severance plans or agreements) to which you are a party or in which you are a participant, including, but not limited to, any Company sponsored employee benefit plans and stock options plans and any retention bonus agreements. The provisions of this Agreement shall not in any way abrogate your rights under such other plans and agreements. Notwithstanding anything to the contrary set forth herein, in the event of any conflict between the terms of this Agreement and the terms of the Grant Notice, the terms of the Grant Notice shall supersede the terms of this Agreement.

10. At-Will Employment. Nothing contained in this Agreement shall (a) confer upon you any right to continue in the employ of the Company, (b) constitute any contract or agreement of employment, or (c) interfere in any way with the at-will nature of your employment with the Company.

11. Arbitration; Dispute Resolution, Etc. Unless otherwise provided herein, in the event that there shall be a dispute (a “Dispute”) among the parties arising out of or relating to this Agreement, or the breach thereof, the parties agree that such dispute shall be resolved by final and binding arbitration before a single arbitrator in San Diego County, California, administered by the American Arbitration Association (the “AAA”), in accordance with the National Rules for the Resolution of Employment Disputes of the AAA (the “Rules”). If the parties are unable to agree upon an arbitrator, one shall be appointed by the AAA in accordance with the Rules. The arbitrator’s decision shall be final and binding upon the parties, and may be entered and enforced in any court of competent jurisdiction by either of the parties. The arbitrator shall have the power to grant temporary, preliminary and permanent relief, including without limitation, injunctive relief and specific performance. The Company will pay the direct costs and expenses of the arbitration. You and the Company are responsible for your respective attorneys’ fees incurred in connection with enforcing this Agreement; however, you and the Company agree that, to the extent permitted by law, the arbitrator may, in his or her discretion, award reasonable attorneys’ fees to the prevailing party; provided, further, that the prevailing party shall be reimbursed for such fees within forty-five (45) days following any such award, but in no event later than the last day of your taxable year following the taxable year in which the fees were incurred; provided, further, that the parties’ obligations pursuant to this sentence shall terminate on the tenth (10^th) anniversary of your termination of employment. This Section 11 is intended to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to your employment; provided, however, that neither this Agreement nor the submission to arbitration shall limit the parties’ right to seek provisional relief, including without limitation, injunctive relief, in any court of competent jurisdiction. Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration. Both you and the Company expressly waive your rights to a jury trial.

12. Code Section 409A.

(a) The compensation and benefits payable under this Agreement, including without limitation the severance benefits described in Section 2 of this Agreement, are not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and, to the maximum extent permitted by applicable law, amounts payable to you pursuant to Section 2(a) shall be made in reliance upon Treasury Regulation Section 1.409A-1(b)(9) (with respect to separation pay plans) or Treasury Regulation Section 1.409A-1(b)(4) (with respect to short-term deferrals). To the extent applicable, this Agreement shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder. If the Company and you determine that any compensation or benefits payable under this Agreement may be or become subject to Code Section 409A and related Department of Treasury guidance, the Company and you agree to amend this Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take such other actions as the Company and you deem necessary or appropriate to (i) exempt the compensation and benefits payable under this Agreement from Code Section 409A and/or preserve the intended tax treatment of the compensation and benefits provided with respect to this Agreement, or (ii) comply with the requirements of Code Section 409A and related Department of Treasury guidance.

(b) Notwithstanding anything herein to the contrary, to the extent any payments to you pursuant to Section 2(a) are treated as non-qualified deferred compensation subject to Section 409A of the Code, then (i) no amount shall be payable pursuant to such section unless your termination of employment constitutes a “separation from service” with the Company (as such term is defined in Treasury Regulation Section 1.409A-1(h) and any successor provision thereto) (a “Separation from Service”), and (ii) if at the time of your Separation from Service you are a “specified employee” as defined in Section 409A of the Code, as determined by the Company in accordance with Section 409A of the Code, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to you) until the date that is at least six (6) months following your Separation from Service (or the earliest date as is permitted under Section 409A of the Code); provided, however, that the Company shall use its reasonable efforts to minimize such deferral and the dollar amount of payments or benefits so impacted.

13. Survival. The respective obligations and benefits afforded to the Company and you as provided in Sections 2 (to the extent that payments or benefits are owed as a result of a termination of employment that occurs during the term of this Agreement), 3, 4, 6, 11 and 13 shall survive the termination of this Agreement.

[Signature page follows]

If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter, which shall then constitute our agreement on this subject.

Sincerely,
THE ACTIVE NETWORK, INC.
By:	/s/ Kory Vossoughi
Name:	Kory Vossoughi
Its:	Chief Legal Officer

Agreed and Accepted:

/s/ Sheryl Roland

APPENDIX A

RELEASE

(INDIVIDUAL TERMINATION)

THIS RELEASE is made as of this     day of         ,         , by and between The Active Network, Inc. (the “Company”) and [Name] (“Employee”).

Certain capitalized terms used in this Release are defined in that certain Change in Control Agreement between the Company and me (as amended to date, the “Agreement”), the terms of which I have previously agreed to and of which this Release is a part. I have been offered the opportunity to receive the severance benefits described in Section 2 of the Agreement from the Company to which I otherwise would not be entitled by executing the general release of claims set forth in this Release.

I hereby confirm my obligations under Section 3 of the Agreement.

I hereby for myself, and my heirs, agents, executors, successors, assigns and administrators (collectively, the “Related Parties”), intending to be legally bound, do hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders, employees, predecessors, and partners, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, “Releasees”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which I ever had, now have, or hereafter may have, or which the Related Parties may have, by reason of any matter, cause or thing whatsoever, from the beginning of my initial dealings with the Company or any predecessor to the date of this Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to my employment relationship with the Company or any predecessor, the terms and conditions of that employment relationship, and the termination of that employment relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act (“ADEA”), as amended, 29 U.S.C. ss. 621 et seq., the Older Worker’s Benefit Protection Act, 29 U.S.C. ss. 626(f)(1), Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. ss. 2000e et seq., the Civil Rights Act of 1871, the Civil Rights Act of 1991, the Americans with Disabilities Act, 42 U.S.C. ss. 12101–12213, the Rehabilitation Act, the Family and Medical Leave Act of 1993 (“FMLA”), 29 U.S.C. ss. 2601 et seq., the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, as amended, the National Labor Relations Act, as amended, the Immigration Reform and Control Act, as amended, the Worker Adjustment and Retraining Notification Act, as amended, the Occupational Safety and Health Act of 1970, as amended, and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, and any claims for attorneys’ fees and costs, but not including such claims to vested or accrued payments, benefits and other rights provided to me under the Agreement and any employee benefit plan of the Company in which I am a participant. This Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. Except as specifically provided herein, it is expressly understood and agreed that this Release will operate as a clear and unequivocal waiver by me of any claim for accrued or unpaid wages, benefits or any other type of payment other than as provided under the Agreement and any employee benefit plan of the Company in which I am a participant. It is the intention of the parties to make this Release as broad and as general as the law permits as to the claims released hereunder.

I ACKNOWLEDGE THAT I HAVE BEEN ADVISED OF AND AM FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

BEING AWARE OF SAID CODE SECTION, I HEREBY EXPRESSLY WAIVE ANY RIGHTS I MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

I further agree and recognize that I have permanently and irrevocably severed my employment relationship with the Company and that the Company has no obligation to employ me in the future.

The parties agree and acknowledge that the Agreement, and the settlement and termination of any asserted or unasserted claims against the Releasees pursuant to the Agreement, are not and will not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by any of the Releasees to me.

I certify and acknowledge as follows:

(a) That I have read the terms of this Release, and that I understand its terms and effects, including the fact that I have agreed to RELEASE AND FOREVER DISCHARGE all Releasees from any legal action or other liability of any type related in any way to the matters released pursuant to this Release other than as provided in the Agreement and in this Release;

(b) That I have signed this Release voluntarily and knowingly in exchange for the consideration described herein, which I acknowledge is adequate and satisfactory to me and which I acknowledge is in addition to any other benefits to which I am otherwise entitled;

(c) That I have been and am hereby advised in writing to consult with an attorney prior to signing this Release;

(d) That I do not waive rights or claims that may arise after the date this Release is executed;

(e) That neither the Company, nor any of its trustees, managers, employees, or attorneys, has made any representations to me concerning the terms or effects of this Release other than those contained herein;

(f) That I have not filed, and will not hereafter file, any claim against the Company relating to my employment and/or cessation of employment with the Company, or otherwise involving facts that occurred on or prior to the date that I have signed this Release, other than a claim that the Company has failed to pay me the severance payments or benefits due under the Agreement or any employee benefit plan of the Company in which I am a participant;

(g) That if I commence, continue, join in, or in any other manner attempt to assert any claim released herein against the Company, or otherwise violate the terms of this Release, (i) I will cease to have any further rights to severance payments or benefits from the Company, and (ii) I will be required to return any severance payments or benefits made to me by the Company (together with interest thereon); and

(h) I acknowledge that I may later discover facts different from or in addition to those which I know or believe to be true now, and I agree that, in such event, this Release will nevertheless remain effective in all respects, notwithstanding such different or additional facts or the discovery of those facts.

I agree that neither I nor anyone acting by, through, under or in concert with me shall disparage or otherwise communicate negative statements or opinions about the Company, its directors, officers, employees or business. Except as may be required by law, neither I, nor any member of my family, nor anyone else acting by, through, under or in concert with me, will disclose to any individual or entity (other than my legal or tax advisors) the terms of the Agreement or this Release.

This Release may not be introduced in any legal or administrative proceeding, or other similar forum, except one concerning a breach of this Release.

This Release and the Agreement constitute the complete understanding between me and the Company concerning the subject matter hereof. No other promises or agreements will be binding unless signed by me and an authorized officer of the Company.

In the event that any provision or portion of this Release will be determined to be invalid or unenforceable for any reason, the remaining provisions or portions of this Release will be unaffected thereby and will remain in full force and effect to the fullest extent permitted by law.

The respective rights and obligations of the parties hereunder will survive termination of this Release to the extent necessary for the intended preservation of such rights and obligations.

This Release will be governed by and construed and interpreted in accordance with the laws of the State of California without reference to the principles of conflict of law.

FOR EMPLOYEES AGE 40 OR OLDER ONLY:

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise on or after the date I execute this Release; (B) I have the right to consult with an attorney prior to executing this Release; (C) I have 21 days to consider this Release (although I may choose to voluntarily execute this Release earlier); (D) I have 7 days following the execution of this Release by the parties to revoke the Release; and (E) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Release is executed by me.

[NAME]

Date:

APPENDIX B

RELEASE

(GROUP TERMINATION)

THIS RELEASE is made as of this     day of         ,         , by and between The Active Network, Inc. (the “Company”) and [Name] (“Employee”).

Certain capitalized terms used in this Release are defined in that certain Change in Control Agreement between the Company and me (as amended to date, the “Agreement”), the terms of which I have previously agreed to and of which this Release is a part. I have been offered the opportunity to receive the severance benefits described in Section 2 of the Agreement from the Company to which I otherwise would not be entitled by executing the general release of claims set forth in this Release.

I hereby confirm my obligations under Section 3 of the Agreement.

I hereby for myself, and my heirs, agents, executors, successors, assigns and administrators (collectively, the “Related Parties”), intending to be legally bound, do hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders, employees, predecessors, and partners, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, “Releasees”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which I ever had, now have, or hereafter may have, or which the Related Parties may have, by reason of any matter, cause or thing whatsoever, from the beginning of my initial dealings with the Company or any predecessor to the date of this Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to my employment relationship with the Company or any predecessor, the terms and conditions of that employment relationship, and the termination of that employment relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act (“ADEA”), as amended, 29 U.S.C. ss. 621 et seq., the Older Worker’s Benefit Protection Act, 29 U.S.C. ss. 626(f)(1), Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. ss. 2000e et seq., the Civil Rights Act of 1871, the Civil Rights Act of 1991, the Americans with Disabilities Act, 42 U.S.C. ss. 12101–12213, the Rehabilitation Act, the Family and Medical Leave Act of 1993 (“FMLA”), 29 U.S.C. ss. 2601 et seq., the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, as amended, the National Labor Relations Act, as amended, the Immigration Reform and Control Act, as amended, the Worker Adjustment and Retraining Notification Act, as amended, the Occupational Safety and Health Act of 1970, as amended, and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, and any claims for attorneys’ fees and costs, but not including such claims to vested or accrued payments, benefits and other rights provided to me under the Agreement and any employee benefit plan of the Company in which I am a participant. This Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. Except as specifically provided herein, it is expressly understood and agreed that this Release will operate as a clear and unequivocal waiver by me of any claim for accrued or unpaid wages, benefits or any other type of payment other than as provided under the Agreement and any employee benefit plan of the Company in which I am a participant. It is the intention of the parties to make this Release as broad and as general as the law permits as to the claims released hereunder.

I ACKNOWLEDGE THAT I HAVE BEEN ADVISED OF AND AM FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

BEING AWARE OF SAID CODE SECTION, I HEREBY EXPRESSLY WAIVE ANY RIGHTS I MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

I further agree and recognize that I have permanently and irrevocably severed my employment relationship with the Company and that the Company has no obligation to employ me in the future.

The parties agree and acknowledge that the Agreement, and the settlement and termination of any asserted or unasserted claims against the Releasees pursuant to the Agreement, are not and will not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by any of the Releasees to me.

The attachment to this Release includes a listing of the ages and job titles of all employees of the Company who are eligible to receive the severance benefits described in the Agreement by signing a Release constituting a general release of all claims.

I certify and acknowledge as follows:

(a) That I have read the terms of this Release, and that I understand its terms and effects, including the fact that I have agreed to RELEASE AND FOREVER DISCHARGE all Releasees from any legal action or other liability of any type related in any way to the matters released pursuant to this Release other than as provided in the Agreement and in this Release;

(b) That I have signed this Release voluntarily and knowingly in exchange for the consideration described herein, which I acknowledge is adequate and satisfactory to me and which I acknowledge is in addition to any other benefits to which I am otherwise entitled;

(c) That I have been and am hereby advised in writing to consult with an attorney prior to signing this Release;

(d) That I do not waive rights or claims that may arise after the date this Release is executed;

(e) That neither the Company, nor any of its trustees, managers, employees, or attorneys, has made any representations to me concerning the terms or effects of this Release other than those contained herein;

(f) That I have not filed, and will not hereafter file, any claim against the Company relating to my employment and/or cessation of employment with the Company, or otherwise involving facts that occurred on or prior to the date that I have signed this Release, other than a claim that the Company has failed to pay me the severance payments or benefits due under the Agreement or any employee benefit plan of the Company in which I am a participant;

(g) That if I commence, continue, join in, or in any other manner attempt to assert any claim released herein against the Company, or otherwise violate the terms of this Release, (i) I will cease to have any further rights to severance payments or benefits from the Company, and (ii) I will be required to return any severance payments or benefits made to me by the Company (together with interest thereon); and

(h) I acknowledge that I may later discover facts different from or in addition to those which I know or believe to be true now, and I agree that, in such event, this Release will nevertheless remain effective in all respects, notwithstanding such different or additional facts or the discovery of those facts.

I agree that neither I nor anyone acting by, through, under or in concert with me shall disparage or otherwise communicate negative statements or opinions about the Company, its directors, officers, employees or business. Except as may be required by law, neither I, nor any member of my family, nor anyone else acting by, through, under or in concert with me, will disclose to any individual or entity (other than my legal or tax advisors) the terms of the Agreement or this Release.

This Release may not be introduced in any legal or administrative proceeding, or other similar forum, except one concerning a breach of this Release.

This Release and the Agreement constitute the complete understanding between me and the Company concerning the subject matter hereof. No other promises or agreements will be binding unless signed by me and an authorized officer of the Company.

In the event that any provision or portion of this Release will be determined to be invalid or unenforceable for any reason, the remaining provisions or portions of this Release will be unaffected thereby and will remain in full force and effect to the fullest extent permitted by law.

The respective rights and obligations of the parties hereunder will survive termination of this Release to the extent necessary for the intended preservation of such rights and obligations.

This Release will be governed by and construed and interpreted in accordance with the laws of the State of California without reference to the principles of conflict of law.

FOR EMPLOYEES AGE 40 OR OLDER ONLY:

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise on or after the date I execute this Release; (B) I have the right to consult with an attorney prior to executing this Release; (C) I have 45 days to consider this Release (although I may choose to voluntarily execute this Release earlier); (D) I have 7 days following the execution of this Release by the parties to revoke the Release; (E) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Release is executed by me; and (F) I have received with this Release a detailed list of the job titles and ages of all employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification or organizational unit who were not terminated.

[NAME]

Date:

ATTACHMENT TO RELEASE

The following information is provided to comply with the Older Workers Benefit Protection Act. Capitalized terms used herein but not defined will have the meanings given them in the General Release to which this Attachment is attached. Attached are the ages of all employees of Active Network, Inc. and its subsidiaries (collectively, the “Company”) who are eligible to receive the severance benefits by signing a Release constituting a general release of all claims:

(1) The decisional unit is the Company.

(2) The attachment includes a listing of the ages and job titles of all employees of the Company who are eligible to receive the severance benefits by signing a Release constituting a general release of all claims.

JOB CLASSIFICATION AND AGE OF EMPLOYEES

ELIGIBLE FOR SEVERANCE BENEFITS

Job Title Selected Persons by Age Age of Those Not Selected for Termination

EX-10.45

Exhibit 10.45

THE ACTIVE NETWORK, INC.

FORM OF NOTICE OF GRANT OF RESTRICTED STOCK UNITS

(Performance Vesting)

The Active Network, Inc. (the “Company”) has granted to the Participant awards (the “Awards”) of certain units (“Units”) pursuant to The Active Network, Inc. 2011 Equity Incentive Plan (the “Plan”), as follows:

Participant:		Employee ID:
Date of Grant of Initial Performance Restricted Stock Units (“Initial Units”):
Maximum Number of Initial Units to be settled in shares of Common Stock:	, subject to adjustment as provided by the Restricted Stock Units Agreement. Each Unit represents the right to receive on the applicable Settlement Date one (1) share of Stock, subject to the vesting requirements below.
Date of Grant of Supplemental Performance Restricted Stock Units (“Supplemental Units” and together with the Initial Units, the “Units”):
Maximum Number of Supplemental Units to be settled in shares of Common Stock or cash at the election of the Company’s Compensation Committee:	, subject to adjustment as provided by the Restricted Stock Units Agreement. Each Unit represents the right to receive on the applicable Settlement Date, at the election of the Company’s compensation committee, either (i) one (1) share of Stock, subject to the vesting requirements below, or (ii) a cash award based on the Company’s stock price on the date of vesting.
Settlement Date:	Except as provided by the Restricted Stock Units Agreement, the date on which it is determined that a Unit becomes a Vested Unit, but in no event later than March 15th of the calendar year following the year in which the vesting occurs.
Vested Units:	Vesting of the Units shall be subject to the Company’s achievement of the pre-established performance goals set forth on Exhibit A for the three year performance period ended December 31, 2014. Except as provided in the Restricted Stock Units Agreement and provided that the Participant’s Service has not terminated prior to May 23, 2015 (the “Vesting Date”), the number of Units (disregarding any resulting fractional Unit) which shall vest on the Vesting Date shall be determined by the Administrator based upon the extent to which the Company achieves the performance goals set forth on Exhibit A. If the minimum performance goals set forth on Exhibit A are not met, no Units shall vest and no shares of common stock will be issuable to the Participant.
Change of Control:	Prior to the Company’s achievement of the pre-established performance goals set forth on Exhibit A for the three year performance period ended December 31, 2014, Units shall not be deemed “Stock Awards” for purposes of Participant’s [retention agreement] [change in control agreement] entered into with the Company. Notwithstanding the foregoing, if Participant’s employment with the Company is terminated by the Company without “cause” at any time, or the Participant terminates employment with the Company for “good reason”

within twelve (12) months following a “change in control” transaction (as such terms are defined in the Participant’s change in control agreement with the Company), such number of Units will become fully vested upon Participant’s termination of employment with the Company in accordance with the following formula:

Maximum Number of Initial Units, multiplied by the quotient of (A) Number of full months elapsed from the grant date of the Initial Units to the date that is one year following the date of Participant’s termination of employment, divided by (B) 36.

This Notice of Grant shall be deemed to be an amendment to Participant’s [retention agreement] [change in control agreement] with the Company. Except as specifically modified or amended by the terms of this Notice of Grant, the [retention agreement] [change in control agreement] and all provisions contained therein are, and shall continue, in full force and effect.

By their signatures below or by electronic acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Awards are governed by this Grant Notice and by the provisions of the Plan and the Restricted Stock Units Agreement, both of which are made a part of this document. The Participant represents that the Participant has read and is familiar with the provisions of the Plan and Restricted Stock Units Agreement, and hereby accepts the Awards subject to all of their terms and conditions.

THE ACTIVE NETWORK, INC.		PARTICIPANT
By:
	[officer name]	Signature
	[officer title]
		Date
Address:
		Address

The Restricted Stock Unit Agreement is attached to this Notice. Copies of the 2011 Equity Incentive Plan and Plan Prospectus are available on the E*Trade website.

Exhibit A

The Units vest on May 23, 2015 dependent upon the Company’s achievement of 2014 revenue and the applicable Adjusted EBITDA target (as a percentage of revenue) in the chart below. The Company’s performance objectives relating to both revenue and Adjusted EBITDA (as defined below) must be achieved in order for the number of Units referenced at each of the thresholds in the chart below to vest. For purposes of these Awards, the performance objectives will exclude the impact of any acquisitions during the performance period. For purposes hereof, “Adjusted EBITDA” shall be defined as net income (loss), plus: provision (benefit) for income taxes, other income (expense), net, depreciation and amortization, and stock-based compensation.

The Initial Units each will be settled in one share of the Company’s common stock. Each Supplemental Unit will be settled at the Compensation Committee’s election in either (i) one share of the Company’s common stock, or (ii) a cash award based on the Company’s stock price on the date of vesting.

The actual number of Units to be earned by each named executive officer will be assessed on a linear basis and the degree to which the Company achieves the performance objectives (rounded down to the closest 0.1%) will determine the actual number of Units to be earned.

The actual number of Vested Units will be determined based on the Company’s achievement of the below performance objectives as determined by the Compensation Committee:

[chart]

EX-10.46

Exhibit 10.46

THE ACTIVE NETWORK, INC.

NOTICE OF GRANT OF STOCK OPTION

The Active Network, Inc. (the “Company”) has granted to the Participant an option (the “Option”) to purchase certain shares of Stock of the Company pursuant to The Active Network, Inc. Equity Incentive Plan (the “Plan”), as follows:

Participant:		Employee ID:
Date of Grant:
Number of Option Shares:	, subject to adjustment as provided by the Option Agreement.
Exercise Price:	$
Initial Vesting Date:
Option Expiration Date:
Tax Status of Option:	Incentive Stock Option          Nonstatutory Stock Option
Vested Shares:	Except as provided in the Option Agreement, the number of Vested Shares (disregarding any resulting fractional share) as of any date is determined by multiplying the Number of Option Shares by the “Vested Ratio” determined as of such date as follows:
			Vested Ratio
	Prior to Initial Vesting Date		0
	On Initial Vesting Date, provided the Participant’s Service as an Employee has not terminated prior to such date
	Plus
	For each additional full month of the Participant’s continuous Service as an Employee from Initial Vesting Date until the Vested Ratio equals 1/1, an additional
	Notwithstanding the foregoing, the options do not become exercisable until the Company’s 15-day moving average stock price on the New York Stock Exchange (based on closing price) meets or exceeds (a) $20.00 within two years from the grant date, (b) $22.50 within three years from the grant date, or (c) $25.00 within four years from the grant date; provided however, each Participant’s Options become exercisable upon vesting following a change in control of the Company (as such term is defined in the Participant’s retention agreement with the Company).

By their signatures below or by electronic acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Option is governed by this Grant Notice and by the provisions of the Plan and the Option Agreement, both of which are made a part of this document. The Participant represents that the Participant has read and is familiar with the provisions of the Plan and the Option Agreement, and hereby accepts the Option subject to all of their terms and conditions.

THE ACTIVE NETWORK, INC.		PARTICIPANT
By:
	[officer name]	Signature
	[officer title]
		Date

Address:
	Address

The 2011 Equity Incentive Plan; Option Agreement and Plan Prospectus are available on the E*Trade website.

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Matthew Landa, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Active Network, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2012

By:	/s/ Matthew Landa
	Matthew Landa Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Scott Mendel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Active Network, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2012

By:	/s/ Scott Mendel
	Scott Mendel
	Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of The Active Network, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew Landa, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 2, 2012

By:	/s/ Matthew Landa
	Matthew Landa Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of The Active Network, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Scott Mendel, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 2, 2012

By:	/s/ Scott Mendel
	Scott Mendel Chief Financial Officer (Principal Financial and Accounting Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Basis of Presentation and Summary of Significant Accounting Policies (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenue Recognition [Abstract]
Net registration revenue	65.00%	67.00%	66.00%	69.00%
Revenue recognized on gross basis	2.00%	1.10%	1.30%	0.40%

XML

Accrued Expenses (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Accrued expenses
Accrued compensation	$ 21,769	$ 17,875
Sales and other foreign taxes	7,724	5,006
Accrued penalties (Note 13)	1,496	3,154
Accrued rebates	2,731	1,846
Other accrued expenses	10,046	13,225
Accrued expenses	$ 43,766	$ 41,106

XML

Property and Equipment (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Property and Equipment (Textual) [Abstract]
Depreciation of property and equipment	$ 3,900,000	$ 3,500,000	$ 23,995,000	$ 17,344,000
Fixed assets under capital leases	10,900,000		10,900,000		9,500,000
Accumulated amortization of assets under capital leases	$ 7,200,000		$ 7,200,000		$ 5,500,000

XML

Segment Information (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Net Revenue:
Total net revenue	$ 109,219	$ 89,628	$ 325,221	$ 261,345
Assets
Total assets	566,898		566,898		599,227
Long-lived assets:
Total long-lived assets	401,572		401,572		414,716
North America [Member]
Net Revenue:
Total net revenue	105,963	86,819	315,947	253,587
Assets
Total assets	562,140		562,140		596,039
Long-lived assets:
Total long-lived assets	399,858		399,858		413,461
Europe and other [Member]
Net Revenue:
Total net revenue	3,256	2,809	9,274	7,758
Assets
Total assets	4,758		4,758		3,188
Long-lived assets:
Total long-lived assets	$ 1,714		$ 1,714		$ 1,255

XML

Accrued Expenses (Details Textual) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Accrued Expenses (Textual) [Abstract]
Accrued salaries and accrued personal time off	$ 15.4	$ 11.7
Accrued self-insurance	1.3	0.8
Accrued contributions	0.3	0.1
Accrued bonuses	3.3	4.9
Accumulated deductions under employee stock purchase plan	$ 1.5	$ 0.4

XML

Accounts Receivable and Allowance for Doubtful Accounts (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of accounts receivable
Accounts receivable	$ 56,754	$ 54,101
Registration receivable	18,280	14,006
Less: Allowance for doubtful accounts	(1,228)	(1,638)
Accounts receivable, net	$ 73,806	$ 66,469

XML

Goodwill (Tables)

9 Months Ended

Sep. 30, 2012

Goodwill/Intangible Assets [Abstract]

Carrying amount of goodwill

	Technology			Marketing Services		Total
Balance at December 31, 2011	$	230,602		$	12,718	$	243,320
Adjustments related to prior year acquisitions		(122	)		—		(122	)
Effect of exchange rate changes		910			—		910
Balance at September 30, 2012	$	231,390		$	12,718	$	244,108

XML

Employee Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Employee Benefit Plans (Textual) [Abstract]
Pre-tax compensation			4.00%
Matching contributions of company	$ 0.3	$ 0.2	$ 0.8	$ 0.6
Deferred Compensation Plan on base salaries			80.00%
Deferred Compensation Plan, performance-based compensation and commissions			100.00%
Contribution vesting period			4 years

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Commitments and Contingencies (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Commitments and Contingencies (Textual) [Abstract]
Rent expense	$ 3,700,000	$ 2,900,000	$ 10,700,000	$ 8,300,000
Company guarantees	10,100,000		10,100,000		14,200,000
Company's accrued health benefits liability	1,300,000		1,300,000		800,000
Reserve for state sales and use tax			5,000,000		4,300,000
Accrued liability	1,496,000		1,496,000		3,154,000
Accrued Penalty Settlement	1,500,000		1,500,000
Accrued loss contingencies	0		0		0
Assessments associated with Breach			200,000
Amounts reimbursable for assessments associated with breach			$ 100,000

XML

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Effective tax rate	21.40%
Uncertain tax positions	$ 0	$ 0.3
Accrued interest and penalties	0	0.2
Income tax transfer pricing methodology tax assessment	2.2
Discrete expenses related to utilization of net operating losses	0.4
Income tax expenses previously recorded related to prior years	0.5
Additional income tax expenses due to settlement	$ 1.3

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

19. Related Party Transactions

ESPN Online Investments, Inc. (“ESPN”) is a significant common stockholder in the Company. The Company also sells its services to ESPN and its affiliates. The Company recorded net revenues from ESPN and its affiliates of less than $0.1 million and $2.0 million for the three months ended September 30, 2012 and 2011, respectively, and less than $0.1 million and $6.3 million for the nine months ended September 30, 2012 and 2011, respectively.

ESPN is a wholly-owned subsidiary of The Walt Disney Company (“Disney”). The Company entered into an online services agreement with Disney to provide registration and advertising. The Company recorded net revenues from Disney of $0.3 million and $0.4 million for the three months ended September 30, 2012 and 2011, respectively, and $1.2 million for both the nine months ended September 30, 2012 and 2011.

In August 2006, the Company entered into a Master Services Agreement and certain other related agreements with the United States Tennis Association (“USTA”) as amended in December 2010. A member of the Company’s Board of Directors is the managing director for recreational tennis at the USTA. Pursuant to the terms of these agreements, the USTA purchases certain software services from the Company. Net revenue from the USTA and its affiliates was approximately $1.3 million and $1.2 million for the three months ended September 30, 2012 and 2011, respectively, and $4.0 million for both the nine months ended September 30, 2012 and 2011.

XML

Software Development Costs (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Software Development Costs (Textual) [Abstract]
Amortization of Software Development Costs	$ 4.2	$ 2.6	$ 12.4	$ 7.0

XML

Business Combinations (Details 2) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Pro forma financial information
Basic and diluted net loss per share attributable to common stockholders	$ (0.10)	$ (0.03)	$ (0.49)	$ (0.62)
Acquisition of StarCite, Inc. [Member]
Pro forma financial information
Net revenue	$ 109,219	$ 101,084	$ 325,221	$ 294,763
Net loss attributable to common stockholders	$ (6,022)	$ (3,323)	$ (28,685)	$ (26,308)
Basic and diluted net loss per share attributable to common stockholders	$ (0.10)	$ (0.06)	$ (0.49)	$ (0.84)

XML

Net Loss Attributable to Common Stockholders (Tables)

9 Months Ended

Sep. 30, 2012

Net Loss Attributable to Common Stockholders [Abstract]

Calculation of basic and diluted net loss per share attributable to common stockholders

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net loss per share:
Net loss	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(6,845	)
Less: accretion of redeemable convertible preferred stock		—			—			—			(11,810	)
Net loss attributable to common stockholders	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(18,655	)
Weighted-average common shares outstanding:
Basic and diluted		59,444			53,701			58,259			29,993
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.10	)	$	(0.03	)	$	(0.49	)	$	(0.62	)

Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Options to purchase common stock and common stock subject to repurchase		8,959,554		12,809,899		10,089,241		12,780,410
Restricted stock		1,699,882		144,241		1,323,864		65,862
Employee stock purchase plan shares		119,529		—		96,543		—
Convertible Preferred		—		—		—		4,645,498
Redeemable Convertible Preferred		—		—		—		13,621,873
Common stock warrants		634		5,359		634		134,519
Common stock issuable upon conversion of debt		—		—		—		155,409
		10,779,599		12,959,499		11,510,282		31,403,571

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Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Carrying values of amortized intangible assets
Gross Carrying Amount	$ 138,119	$ 177,137
Accumulated Amortization	(68,471)	(86,797)
Net Carrying Amount	69,648	90,340
Intellectual property [Member]
Carrying values of amortized intangible assets
Gross Carrying Amount	28,277	36,609
Accumulated Amortization	(16,348)	(20,351)
Net Carrying Amount	11,929	16,258
Non-compete agreements [Member]
Carrying values of amortized intangible assets
Gross Carrying Amount	2,898	3,850
Accumulated Amortization	(1,258)	(1,085)
Net Carrying Amount	1,640	2,765
Customer relationships [Member]
Carrying values of amortized intangible assets
Gross Carrying Amount	46,295	67,891
Accumulated Amortization	(11,418)	(26,799)
Net Carrying Amount	34,877	41,092
Trade names [Member]
Carrying values of amortized intangible assets
Gross Carrying Amount	13,471	16,568
Accumulated Amortization	(3,692)	(5,566)
Net Carrying Amount	9,779	11,002
Customer contracts [Member]
Carrying values of amortized intangible assets
Gross Carrying Amount	47,178	52,219
Accumulated Amortization	(35,755)	(32,996)
Net Carrying Amount	$ 11,423	$ 19,223

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Net Loss Attributable to Common Stockholders (Details 1)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount	10,779,599	12,959,499	11,510,282	31,403,571
Stock options [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount	8,959,554	12,809,899	10,089,241	12,780,410
Restricted stock [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount	1,699,882	144,241	1,323,864	65,862
Employee stock purchase plan shares [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount	119,529		96,543
Convertible Preferred [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount				4,645,498
Redeemable Convertible Preferred [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount				13,621,873
Common stock warrants [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount	634	5,359	634	134,519
Common stock issuable upon conversion of debt [Member]
Presentation of potentially dilutive securities not included in the calculation of diluted net loss per share
Antidilutive securities excluded from computation of earnings per share, amount				155,409

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Stock-Based Compensation (Details 2) (USD $)	9 Months Ended
	Sep. 30, 2012
Restricted Stock Units (RSUs) [Member]
Summary of restricted stock activity
Number of shares, Unvested, Beginning Balance	663,127
Weighted-Average Grant Date Fair Value, Beginning Balance	$ 15.23
Number of Shares, Granted	1,120,027
Weighted-Average Grant Date Fair Value, Granted	$ 16.01
Number of Shares, Vested	(100,532)
Weighted-Average Grant Date Fair Value, Vested	$ 16.65
Number of Shares, Cancelled	(41,057)
Weighted-Average Grant Date Fair Value, Cancelled	$ 17.04
Weighted-Average Grant Date Fair Value, Ending Balance	$ 15.63
Number of shares, Unvested, Ending Balance	1,641,565
Performance Restricted Stock Units (PRSUs) [Member]
Summary of restricted stock activity
Number of shares, Unvested, Beginning Balance
Weighted-Average Grant Date Fair Value, Beginning Balance
Number of Shares, Granted	791,632
Weighted-Average Grant Date Fair Value, Granted	$ 12.04
Number of Shares, Vested
Weighted-Average Grant Date Fair Value, Vested
Number of Shares, Cancelled
Weighted-Average Grant Date Fair Value, Cancelled
Weighted-Average Grant Date Fair Value, Ending Balance	$ 12.04
Number of shares, Unvested, Ending Balance	791,632

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Property and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of property and equipment
Property and equipment	$ 89,987	$ 77,971
Less: Accumulated depreciation	(54,945)	(44,141)
Property and equipment, net	35,042	33,830
Computer and software [Member]
Summary of property and equipment
Property and equipment	74,554	63,947
Furniture and fixtures [Member]
Summary of property and equipment
Property and equipment	9,654	10,586
Leasehold improvements [Member]
Summary of property and equipment
Property and equipment	$ 5,779	$ 3,438

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued an update to increase the prominence of items reported in other comprehensive income. This update eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity and requires an entity to present comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance is effective for interim and annual periods beginning after December 15, 2011, and is to be applied retrospectively. The adoption of this guidance affected the presentation of other comprehensive income but did not affect the Company’s financial position or results of operations.

In September 2011, the FASB issued revised guidance to simplify how entities test goodwill for impairment. Under the revised guidance, entities have the option to first assess qualitative factors 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. If, after assessing qualitative factors, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The updates are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 with early adoption permitted. The Company will adopt this revised guidance during the annual goodwill impairment test in the year ended December 31, 2012.

In December 2011, the FASB issued an amendment to the accounting guidance for disclosure of offsetting assets and liabilities and related arrangements. The amendment expands the disclosure requirements in that entities will be required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The amendment is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013, and will be applied retrospectively. The Company is currently evaluating the impact of this accounting pronouncement on its financial statements.

In July 2012, the FASB issued an amendment that simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill. The amendment allows an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is “more likely than not” that the asset is impaired. The amendment is effective for fiscal years and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company is currently evaluating the impact of this accounting pronouncement on its financial statements.

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Stock-Based Compensation (Details 3)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan
Expected dividend yield
Expected term (in years)		4 years 10 months 24 days	5 years	4 years 10 months 24 days
Range High [Member]
Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan
Volatility		49.10%	52.80%	49.20%
Risk-free rate		1.10%	1.10%	2.20%
Range Low [Member]
Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan
Volatility		48.70%	51.80%	48.50%
Risk-free rate		0.90%	0.70%	0.90%
Employee Stock Purchase Plan [Member]
Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan
Expected dividend yield
Expected term (in years)	6 months	3 months 18 days	6 months	3 months 18 days
Employee Stock Purchase Plan [Member] | Range High [Member]
Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan
Volatility	44.50%	47.60%	57.90%	47.60%
Risk-free rate	0.20%	0.10%	0.20%	0.10%
Employee Stock Purchase Plan [Member] | Range Low [Member]
Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan
Volatility			44.50%
Risk-free rate

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Business Combinations (Details Textual) (USD $)			1 Months Ended										1 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Acquisition of StarCite, Inc. [Member]	Dec. 31, 2011 Acquisition of StarCite, Inc. [Member] D	Apr. 10, 2012 Acquisition of StarCite, Inc. [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member]	Sep. 30, 2012 Acquisition of RTP, LLC [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Technology [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Marketing Services [Member]	Sep. 30, 2012 Acquisition of Service U [Member]	Oct. 31, 2011 Acquisition of Service U [Member]	Feb. 28, 2011 Fellowship Technologies, Inc. [Member]	Sep. 30, 2012 Fellowship Technologies, Inc. [Member]	Sep. 30, 2012 Other Business Combinations [Member]	Dec. 31, 2011 Other Business Combinations [Member]
Business Combinations (Textual) [Abstract]
Business combination, cost of acquired entity			$ 57,442,000			$ 57,600,000	$ 21,500,000	$ 21,500,000			$ 11,050,000	$ 11,100,000	$ 8,900,000	$ 8,865,000	$ 4,617,000	$ 4,600,000
Cash component of total acquisition consideration						38,100,000
Shares of common stock component of total acquisition consideration				1,350,000									1,125,000
Fair value of shares of common stock component of total acquisition consideration						18,400,000
Contingently issuable shares				150,000
Acquisition date fair value of contingently issuable shares	0	1,124,000				1,100,000
Common stock per share						$ 15.00
Number of days of trading				3
Contingent consideration time period						60 days
Period end fair value of contingently issuable shares					38,000
Cash held in escrow related to business acquisition						300,000
Shares held in escrow related to business acquisition						300,000
Fair value of shares held in escrow related to business acquisition						4,100,000
Escrow period				12 months
Escrow shares cancelled, shares			16,261
Escrow shares cancelled, value			200,000
Goodwill			21,745,000				3,394,000	3,400,000	3,000,000	400,000	4,388,000		5,700,000	5,680,000	1,362,000
Acquisition-related expenses				$ 1,900,000

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Company's assets and liabilities measured at fair value

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Accrued liabilities:
Contingent consideration associated with business combination (Note 4)	$	—	$	—	$	1,124	$	1,124

Reconciliation of liabilities measured at fair value using significant unobservable inputs

	Contingent Consideration
Balance at December 31, 2011	$	1,124
Changes in fair value of contingent consideration		(1,123	)
Contingent consideration transferred to equity classification (Note 4)		(1	)
Balance at September 30, 2012	$	—

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2012

Business Acquisition [Line Items]

Fair value of assets acquired and liabilities assumed

Cash	$	572
Restricted cash		692
Accounts receivable		14,566
Prepaid and other assets		1,301
Fixed assets		1,912
Goodwill		21,745
Intangible assets		36,500
Accounts payable		(1,398	)
Accrued expenses		(5,459	)
Deferred revenue		(11,286	)
Capital lease obligations		(480	)
Other liabilities		(528	)
Unfavorable leases		(695	)
Total purchase price	$	57,442

Cash	$	903
Accounts receivable		5,648
Prepaid and other assets		1,050
Fixed assets		309
Goodwill		3,394
Intangible assets		15,960
Accounts payable		(2,821	)
Accrued expenses		(435	)
Deferred revenue		(2,375	)
Other liabilities		(133	)
Total purchase price	$	21,500

Cash	$	13
Accounts receivable		201
Prepaid and other assets		51
Fixed assets		249
Goodwill		4,388
Intangible assets		10,377
Accounts payable		(21	)
Accrued expenses		(132	)
Deferred revenue		(42	)
Capital lease obligations		(120	)
Deferred tax liability		(3,914	)
Total purchase price	$	11,050

Cash	$	520
Accounts receivable		195
Prepaid and other assets		15
Fixed assets		530
Security deposits		58
Goodwill		5,680
Intangible assets		3,568
Accounts payable		(101	)
Deferred revenue		(528	)
Capital lease obligations		(481	)
Other liabilities		(187	)
Unfavorable leases		(404	)
Total purchase price	$	8,865

Cash	$	14
Accounts receivable		145
Prepaid and other assets		12
Goodwill		1,362
Intangible assets		3,427
Accounts payable		(20	)
Accrued expenses		(27	)
Deferred revenue		(296	)
Total purchase price	$	4,617

Identifiable intangible assets acquired

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	5,100		9 years
Customer relationships		17,300		9 years
Customer contracts		6,800		3 years
Complete technology		6,500		9 years
Non-compete agreements		800		1 year
Total intangible assets	$	36,500

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	1,350		5 years
Customer relationships		9,700		13 years
Customer contracts		510		2 years
Complete technology		2,900		9 years
Non-compete agreements		1,500		3 years
Total intangible assets	$	15,960

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	250		2 years
Customer relationships		8,300		14 years
Complete technology		1,229		6 years
Non-compete agreements		598		3 years
Total intangible assets	$	10,377

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	197		3 years
Customer contracts/relationships		2,730		4 years
Complete technology		641		4 years
Total intangible assets	$	3,568

	Gross Amount at Acquisition Date		Amortization Period
Customer contracts/relationships	$	3,392		3 years
Complete technology		35		3 years
Total intangible assets	$	3,427

Pro forma financial information

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)
	(In thousands, except per share data)
Net revenue	$	109,219		$	101,084		$	325,221		$	294,763
Net loss attributable to common stockholders	$	(6,022	)	$	(3,323	)	$	(28,685	)	$	(26,308	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.10	)	$	(0.06	)	$	(0.49	)	$	(0.84	)

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Long-Term Debt (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	9 Months Ended
	Dec. 31, 2011	Sep. 30, 2012	Jul. 31, 2012
Long-Term Debt (Textual) [Abstract]
Period of secured revolving credit facility	5 years
Initial aggregate principal amount	$ 50		$ 100
Maximum letters of credit	15		25
Maximum swing line loans	5
Credit Facility, maturity date		Dec. 16, 2016
Credit Facility accordion feature		25	50
Credit Facility, description		Any advance under the Credit Facility will accrue interest at rates per annum that are equal to, based on certain conditions, either (a) 1.5% above the applicable LIBOR rate, or (b) 0.5% above (i) the greatest of (x) the prime rate, (y) the federal funds effective rate plus 0.5% or (z) a daily rate equal to one-month LIBOR plus 1.00%. The unused portion of the Credit Facility will also be subject to an unused fee that will be calculated at a per annum rate of 0.25%.
Credit facility, LIBOR rate		Any advance under the Credit Facility will accrue interest at rates per annum that are equal to, based on certain conditions, either (a) 1.5% above the applicable LIBOR rate, or (b) 0.5% above (i) the greatest of (x) the prime rate, (y) the federal funds effective rate plus 0.5% or (z) a daily rate equal to one-month LIBOR plus 1.00%.
Rate at which any unused Credit Facility fee will be calculated		0.25%
Credit Facility , interest rate	3.75%	1.86%
Indebtedness to EBITDA		2.50%
Fixed charge coverage ratio		1.50%
Credit Facility, outstanding	5.0	0
Credit Facility, available	39.8	93.0
Outstanding letters of credit	$ 5.2	$ 7.0

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Company's assets and liabilities measured at fair value
Contingent consideration associated with business combination (Note 4)	$ 0	$ 1,124
Level 1 [Member]
Company's assets and liabilities measured at fair value
Contingent consideration associated with business combination (Note 4)
Level 2 [Member]
Company's assets and liabilities measured at fair value
Contingent consideration associated with business combination (Note 4)
Level 3 [Member]
Company's assets and liabilities measured at fair value
Contingent consideration associated with business combination (Note 4)		$ 1,124

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Accounts Receivable and Allowance for Doubtful Accounts (Tables)

9 Months Ended

Sep. 30, 2012

Accounts Receivable and Allowance for Doubtful Accounts [Abstract]

Summary of accounts receivable

	September 30, 2012			December 31, 2011
Accounts receivable	$	56,754		$	54,101
Registration receivable		18,280			14,006
Less: Allowance for doubtful accounts		(1,228	)		(1,638	)
Accounts receivable, net	$	73,806		$	66,469

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2012

Property and Equipment [Abstract]

Summary of property and equipment

	September 30, 2012			December 31, 2011
Computer and software	$	74,554		$	63,947
Furniture and fixtures		9,654			10,586
Leasehold improvements		5,779			3,438
Property and equipment		89,987			77,971
Less: Accumulated depreciation		(54,945	)		(44,141	)
Property and equipment, net	$	35,042		$	33,830

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Business/Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Active and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The accompanying condensed consolidated balance sheet as of September 30, 2012, the condensed consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011, the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2012 and 2011 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2012 and 2011 are unaudited. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to the three and nine months ended September 30, 2012 and 2011 are unaudited. The unaudited condensed consolidated interim financial statements and notes hereto have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial condition, results of operations and comprehensive loss for the three and nine months ended September 30, 2012 and 2011 and cash flows for the nine months ended September 30, 2012 and 2011; however, they do not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). The results of operations for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for fiscal 2012 or for any other interim period or for any other future year. These unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes technology revenue primarily from registration fees and related hosting and implementation services. The Company also records revenue for marketing services. The Company recognizes revenue when a signed contract or other persuasive evidence of an arrangement exists, the services have been rendered, the fee is fixed or determinable, and collection of the resulting receivable is probable. The Company’s arrangements do not contain general rights of return.

The Company assesses whether the fee is fixed or determinable, and collection is probable, at the time of the transaction. In determining whether the fee is fixed or determinable, the Company compares the payment terms of the transaction to its standard payment terms and whether payment is free of contingencies or significant uncertainties. If a significant portion of the fee is considered to have extended payment terms or the fee is subject to adjustment, the Company accounts for the fee as not being fixed or determinable and recognizes revenue as the payments become due. The Company assesses whether collection is probable based on a number of factors, including the customer’s past transaction history and credit-worthiness. The Company does not request collateral from its customers. If the Company determines that collection of a fee is not probable, the Company defers the fee and recognizes revenue at the time collection becomes probable, which is generally upon receipt of cash.

The Company generally recognizes registration revenue when received, net of registration fees paid to event organizers, where the Company is acting as an agent of event organizers. Net registration revenue comprised 65% and 67% of total net revenue for the three months ended September 30, 2012 and 2011, respectively and 66% and 69% for the nine months ended September 30, 2012 and 2011, respectively.

In certain circumstances, the Company pre-purchases registrations from event organizers. The decision to record revenue gross versus net is a matter of significant judgment that is dependent upon the relevant facts and circumstances. The Company evaluates the presentation of revenue on a gross or net basis based on the qualitative weight of various indicators in the authoritative accounting guidance in order to determine whether the Company recognizes (a) the gross amount billed to a customer because it has earned revenue from the sale of the goods or service or (b) the net amount retained (that is, the amount billed to a customer less the amount paid to a supplier because it has earned a commission or fee). Registration revenue associated with these transactions is recorded on a gross basis, as the Company bears inventory risk, has latitude in establishing price, bears credit risk and assumes many of the responsibilities of the primary obligor, except for the actual fulfillment of the event.

For the sale of registrations recorded on a gross basis, cash collected prior to an event is recorded as deferred revenue until the event occurs. Revenue recognized on a gross basis associated with these transactions comprised 2.0% and 1.1% of total net revenue during the three months ended September 30, 2012 and 2011, respectively and 1.3% and 0.4% during the nine months ended September 30, 2012 and 2011, respectively.

On January 1, 2011, the Company adopted the new accounting standard for multiple deliverable revenue arrangements which provides guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated. This guidance requires an entity to allocate revenue in an arrangement using the “best estimate of selling price” (“BESP”) of deliverables if it does not have vendor-specific objective evidence (“VSOE”) of selling price based on historical stand-alone sales or third-party evidence (“TPE”) of selling price. Due to the unique nature of some of the Company’s multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales using VSOE or TPE, therefore, the Company may use its best estimate to establish selling prices for these arrangements under the new accounting standard. The Company establishes its best estimates within a range of selling prices considering multiple factors including, but not limited to, factors such as customer base, size of transaction, available media inventory, pricing strategies and market conditions. The Company believes the use of the BESP allows revenue recognition in a manner consistent with the underlying economics of the transaction. The adoption of this amended standard did not have a significant impact on the Company’s revenue recognition for multiple deliverable revenue arrangements.

Many customers who use the Company’s hosting services or license its software also enter into separate professional services and training arrangements with the Company. In addition, certain of the Company’s hosting agreements include up-front payments for implementation of hosting services. In determining whether professional services and implementation revenue should be accounted for separately, the Company evaluates (among other factors): the nature of the deliverables; whether they are ready for their intended use by the customer upon receipt; the nature of the implementation services; the availability of services from other vendors; whether the timing of payments for license revenue is coincident with performance of services and whether milestones or acceptance criteria exist that affect the realizability of the hosting or software license fee. For up-front fees and other revenues received for implementation services associated with hosting arrangements, the Company defers the related revenue and records revenue over the term of the hosting contract since the implementation and hosting do not have stand-alone value. For license and professional services that qualify for separate accounting, such as arrangements that involve off-the-shelf software, the services do not include significant alterations to the features and functionality of the software, the services are primarily comprised of implementation services and fair value exists for the undelivered elements, software revenue is generally recognized when the software is delivered and service revenue is recognized when the services are performed.

For license and professional service arrangements that do not qualify for separate accounting, such as arrangements that involve significant modification or customization of the software, arrangements that include milestones or customer specific acceptance criteria, or where payment for the software license is tied to the performance of professional services, software license revenue is generally recognized together with the professional services revenue when services have been rendered. A majority of such arrangements are recognized together with the professional services. Penalties from customers related to power outages or other technical disruptions are recognized in the period in which such amounts are incurred based on the Company’s estimated liability and are recorded as a reduction of revenue or an increase to cost of revenue. If the total estimated costs to complete a project exceed the total contract amount, indicating a loss, the entire anticipated loss is recognized currently.

Maintenance revenue consists of fees for providing software updates on a when-and-if available basis and technical support to software products (“post contract customer support” or “PCS”). Maintenance revenue is recognized ratably over the terms of the agreement.

Marketing services revenue consists of online and integrated field marketing campaigns and membership programs. The Company’s online marketing services include online advertising, e-mail marketing and targeted newsletter promotions. Banner, button and e-mail advertisements are impression-based, with the revenue based on the number of times the advertisement is displayed or delivered over the contract period. Impression-based contract revenue is primarily recognized as the impression is displayed on the Company’s web site or delivered by e-mail to the intended addressee. The Company’s field marketing services include event promotions, sponsorships and sample placements and are defined contractually with individual customers. Field marketing revenue is recognized over the term of the contract or when revenue is earned based on the performance of services associated with a series of events. Revenue from membership programs is recognized over the term of the membership period.

Significant management judgments and estimates are made in connection with determination of the revenue to be recognized in any accounting period. If the Company makes different judgments or utilized different estimates for any period, material differences in the amount and timing of revenue recognized could result.

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Software Development Costs (Tables)

9 Months Ended

Sep. 30, 2012

Software Development Costs [Abstract]

Summary of Capitalized software development costs

	September 30, 2012			December 31, 2011
Software development costs	$	83,580		$	65,696
Less: Accumulated amortization		(33,116	)		(20,603	)
Software development costs, net	$	50,464		$	45,093

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Business Combinations (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012 Acquisition of StarCite, Inc. [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member]	Sep. 30, 2012 Acquisition of RTP, LLC [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member]	Sep. 30, 2012 Acquisition of Service U [Member]	Oct. 31, 2011 Acquisition of Service U [Member]	Sep. 30, 2012 Fellowship Technologies, Inc. [Member]	Feb. 28, 2011 Fellowship Technologies, Inc. [Member]	Sep. 30, 2012 Other Business Combinations [Member]	Dec. 31, 2011 Other Business Combinations [Member]
Fair value of assets acquired and liabilities assumed
Cash	$ 572		$ 903		$ 13		$ 520		$ 14
Restricted cash	692
Accounts receivable	14,566		5,648		201		195		145
Prepaid and other assets	1,301		1,050		51		15		12
Fixed assets	1,912		309		249		530
Security deposits							58
Goodwill	21,745		3,394	3,400	4,388		5,680	5,700	1,362
Intangible assets	36,500	36,500	15,960	15,960	10,377	10,377	3,568	3,568	3,427	3,427
Accounts payable	(1,398)		(2,821)		(21)		(101)		(20)
Accrued expenses	(5,459)		(435)		(132)				(27)
Deferred revenue	(11,286)		(2,375)		(42)		(528)		(296)
Capital lease obligations	(480)				(120)		(481)
Deferred tax liability					(3,914)
Other liabilities	(528)		(133)				(187)
Unfavorable leases	(695)						(404)
Total purchase price	$ 57,442	$ 57,600	$ 21,500	$ 21,500	$ 11,050	$ 11,100	$ 8,865	$ 8,900	$ 4,617	$ 4,600

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Intangible Assets (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Amortization expense of acquired intangible assets
Cost of technology revenue	$ 1,323	$ 1,267	$ 4,034	$ 3,820
Cost of marketing services revenue	85	127	318	400
Operating expenses	5,492	3,669	16,780	11,090
Total amortization of acquired intangible assets	$ 6,900	$ 5,063	$ 21,132	$ 15,310

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Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Related Party Transactions (Textual) [Abstract]
Net revenue from related parties	$ 109,219	$ 89,628	$ 325,221	$ 261,345
ESPN [Member]
Related Party Transactions (Textual) [Abstract]
Net revenue from related parties	100	2,000	100	6,300
DISNEY [Member]
Related Party Transactions (Textual) [Abstract]
Net revenue from related parties	300	400	1,200	1,200
USTA [Member]
Related Party Transactions (Textual) [Abstract]
Net revenue from related parties	$ 1,300	$ 1,200	$ 4,000	$ 4,000

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 78,499	$ 108,699
Restricted cash	875	1,502
Accounts receivable, net	73,806	66,469
Inventories	3,493	1,662
Prepaid expenses and other current assets	8,653	6,179
Total current assets	165,326	184,511
Property and equipment, net	35,042	33,830
Software development costs, net	50,464	45,093
Goodwill	244,108	243,320
Intangible assets, net	69,648	90,340
Other long-term assets	2,310	2,133
Total assets	566,898	599,227
Current liabilities:
Accounts payable	8,063	8,516
Registration fees payable	72,657	72,405
Accrued expenses	43,766	41,106
Deferred revenue	68,965	54,919
Current portion of long-term debt		5,000
Capital lease obligations, current portion	1,723	3,317
Other current liabilities	4,017	42,613
Total current liabilities	199,191	227,876
Capital lease obligations, net of current portion	1,028	1,652
Other long-term liabilities	6,149	6,147
Deferred tax liability	20,047	16,913
Total liabilities	226,415	252,588
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $0.001 par value-authorized, 100,000 shares; no shares issued and outstanding
Common stock, $0.001 par value-authorized, 1,000,000; issued, 61,950 and 58,219; outstanding, 60,174 and 56,443	62	58
Treasury stock (at cost, 1,776 shares)	(11,959)	(11,959)
Additional paid-in capital	646,954	625,875
Accumulated other comprehensive income	9,369	7,923
Accumulated deficit	(303,943)	(275,258)
Total stockholders' equity	340,483	346,639
Total liabilities and stockholders' equity	$ 566,898	$ 599,227

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Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012
Reconciliation of liabilities measured at fair value using significant unobservable inputs
Balance at December 31,2011	$ 1,124
Gain on contingent consideration	(1,123)
Contingent consideration transferred to equity classification (Note 4)	(1)
Balance at September 30, 2012

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Operating activities
Net loss	$ (28,685)	$ (6,845)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of property and equipment	23,995	17,344
Amortization of intangible assets	21,132	15,310
Stock-based compensation expense	11,992	4,782
Allowance for doubtful accounts, net of write-offs	(410)	258
Deferred tax liability	3,046	1,824
Amortization of acquisition-related costs	(898)	(607)
Gain on contingent consideration	(1,123)
Accretion of debt discount		191
Loss on extinguishment of debt		538
Change in operating assets and liabilities, net of effect of acquisitions:
Restricted cash	627
Accounts receivable	(6,757)	(27,223)
Inventories	(1,831)	(1,102)
Prepaid expenses and other assets	(2,692)	(396)
Accounts payable	(1,290)	(636)
Registration fees payable	252	35,505
Accrued expenses	4,706	3,561
Deferred revenue	13,914	18,089
Other Liabilities	1,170	3,146
Net cash provided by operating activities	37,148	63,739
Investing activities
Purchases of property and equipment	(12,665)	(8,991)
Capitalized software development	(17,194)	(13,898)
Cash paid for acquisitions, net of cash acquired	(38,037)	(4,082)
Payment of contingent consideration		(625)
Net cash used in investing activities	(67,896)	(27,596)
Financing activities
Proceeds from issuance of common stock	9,247	3,072
Payments on capital lease obligations	(3,552)	(2,207)
Proceeds from long-term debt	5,000
Repayment of long-term debt	(10,000)	(41,628)
Repurchase of unvested common stock		(13)
Net proceeds from initial public offering		112,566
Net cash provided by financing activities	695	71,790
Effect of exchange rates on cash	(147)	(351)
Net (decrease) increase in cash and cash equivalents	(30,200)	107,582
Cash and cash equivalents at beginning of period	108,699	31,441
Cash and cash equivalents at end of period	78,499	139,023
Supplemental disclosures of cash flow information
Cash paid during the period for interest	378	2,799
Cash paid during the period for taxes	922	510
Supplemental disclosures of noncash financing and investing activities
Conversion of preferred stock		404,122
Conversion of debt		3,504
Issuance of common stock in connection with acquisitions		8,865
Acquisition of property and equipment under capital leases	1,334	2,116
Fixed asset purchases included in accounts payable	$ 2,025	$ 2,149

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Stock-Based Compensation (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Summary of Stock option activity
Number of Shares Underlying Options, Beginning Balance	11,604,808
Number of Shares Underlying Options, Granted	1,350,754
Number of Shares Underlying Options, Exercised	(3,593,927)
Number of Shares Underlying Options, Cancelled or expired	(366,193)
Number of Shares Underlying Options, Ending Balance	8,995,442
Weighted - Average Exercise Price, Beginning balance	$ 3.71
Weighted - Average Exercise Price, Granted	$ 14.26
Weighted - Average Exercise Price, Exercised	$ 2.32
Weighted - Average Exercise Price , Cancelled or Expired	$ 8.67
Weighted - Average Exercise Price, Ending Balance	$ 5.65

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Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2012

Accrued Expenses [Abstract]

Accrued Expenses

	September 30, 2012		December 31, 2011
Accrued compensation	$	21,769	$	17,875
Sales and other foreign taxes		7,724		5,006
Accrued penalties (Note 13)		1,496		3,154
Accrued rebates		2,731		1,846
Other accrued expenses		10,046		13,225
Accrued expenses	$	43,766	$	41,106

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Stock-Based Compensation (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Stock option granted			1,350,754
Company issued shares in employee contributions			77,345
Contractual life		4 years 10 months 24 days	5 years	4 years 10 months 24 days
Stock Plans and Stock Based Compensation (Additional Textual) [Abstract]
Employee Contributions for ESPP			$ 0.9
Minimum [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Expected Volatility		48.70%	51.80%	48.50%
Risk-free rate		0.90%	0.70%	0.90%
Maximum [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Expected Volatility		49.10%	52.80%	49.20%
Risk-free rate		1.10%	1.10%	2.20%
Stock Option Activity [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Stock option granted			1,350,754
Options granted that contained a market condition			749,839
Unrecognized compensation cost, nonvested stock options	18.0		18.0
Weighted average period for which unrecognized compensation is expected to be recognized			2 years 8 months 12 days
Market options vest period			4 years
Restricted Stock Units (RSUs) [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Unrecognized compensation cost related to restricted stock	21.2		21.2
Weighted average period for which unrecognized compensation is expected to be recognized			3 years 1 month 6 days
RSU vest period			4 years
Performance Based Restricted Stock Units RSU [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Unrecognized compensation cost related to restricted stock	9.5		9.5
PRSUs that can be settled in cash or stock	60,378
Performance Based Restricted Stock Units RSU [Member] | Minimum [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
PRSU vest period			2 years
Performance Based Restricted Stock Units RSU [Member] | Maximum [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
PRSU vest period			4 years
Employee Stock Purchase Plan [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Unrecognized compensation cost, nonvested stock options	0.1		$ 0.1
Weighted average period for which unrecognized compensation is expected to be recognized			6 months
Contractual life	6 months	3 months 18 days	6 months	3 months 18 days
Employee Stock Purchase Plan [Member] | Minimum [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Expected Volatility			44.50%
Risk-free rate
Employee Stock Purchase Plan [Member] | Maximum [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Expected Volatility	44.50%	47.60%	57.90%	47.60%
Risk-free rate	0.20%	0.10%	0.20%	0.10%
Stock Options Containing a Market Condition [Member]
Stock Plans and Stock Based Compensation (Textual) [Abstract]
Expected Volatility			47.00%
Risk-free rate			0.74%
Contractual life			6 years

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Net Loss Attributable to Common Stockholders

9 Months Ended

Sep. 30, 2012

Net Loss Attributable to Common Stockholders [Abstract]

Net Loss Attributable to Common Stockholders

16. Net Loss Attributable to Common Stockholders

Basic net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Prior to the IPO, holders of Redeemable Convertible Preferred shares were each entitled to receive 8% per annum cumulative dividends, payable prior and in preference to any dividends on any other shares of the Company’s capital stock.

Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period.

The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net loss per share:
Net loss	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(6,845	)
Less: accretion of redeemable convertible preferred stock		—			—			—			(11,810	)
Net loss attributable to common stockholders	$	(6,022	)	$	(1,432	)	$	(28,685	)	$	(18,655	)
Weighted-average common shares outstanding:
Basic and diluted		59,444			53,701			58,259			29,993
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.10	)	$	(0.03	)	$	(0.49	)	$	(0.62	)

Potentially dilutive securities not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Options to purchase common stock and common stock subject to repurchase		8,959,554		12,809,899		10,089,241		12,780,410
Restricted stock		1,699,882		144,241		1,323,864		65,862
Employee stock purchase plan shares		119,529		—		96,543		—
Convertible Preferred		—		—		—		4,645,498
Redeemable Convertible Preferred		—		—		—		13,621,873
Common stock warrants		634		5,359		634		134,519
Common stock issuable upon conversion of debt		—		—		—		155,409
		10,779,599		12,959,499		11,510,282		31,403,571

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

Summary of Stock option activity

Stock Options	Number of Shares Underlying Options			Weighted- Average Exercise Price
Outstanding at December 31, 2011		11,604,808		$	3.71
Granted		1,350,754			14.26
Exercised		(3,593,927	)		2.32
Cancelled or expired		(366,193	)		8.67
Outstanding at September 30, 2012		8,995,442		$	5.65

Weighted-average assumptions used to estimate the fair value of stock options granted

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
Volatility		—		48.7-49.1	%		51.8-52.8	%		48.5-49.2	%
Expected dividend yield		—		—			—			—
Risk-free rate		—		0.9-1.1	%		0.7-1.1	%		0.9-2.2	%
Expected term (in years)		—		4.9			5.0			4.9

Summary of restricted stock activity

RSUs and PRSUs	Number of RSUs			Weighted- Average Grant Date Fair Value of RSUs		Number of PRSUs		Weighted- Average Grant Date Fair Value of PRSUs
Unvested at December 31, 2011		663,127		$	15.23		—	$	—
Granted		1,120,027			16.01		791,632		12.04
Released		(100,532	)		16.65		—		—
Cancelled or expired		(41,057	)		17.04		—		—
Unvested at September 30, 2012		1,641,565		$	15.63		791,632	$	12.04

Weighted-average assumptions used to estimate fair value of purchase option under ESPP Plan

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Volatility		44.5	%		47.6	%		44.5-57.9	%		47.6	%
Expected dividend yield		—			—			—			—
Risk-free rate		0.2	%		0.1	%		0.2	%		0.1	%
Expected term (in years)		0.5			0.3			0.5			0.3

Classification of stock-based compensation in the statements of operations

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of revenue	$	222	$	52	$	474	$	107
Sales and marketing		1,007		277		2,709		1,040
Research and development		662		315		1,782		636
General and administrative		2,770		1,326		7,027		2,999
Total stock-based compensation	$	4,661	$	1,970	$	11,992	$	4,782

Components of stock-based compensation expense

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012		2011
Stock options	$	2,051		$	1,726	$	6,057	$	4,479
Restricted stock		2,418			135		5,251		194
PRSUs		(18	)		—		105		—
ESPP		210			109		579		109
Total stock-based compensation	$	4,661		$	1,970	$	11,992	$	4,782

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Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

18. Income Taxes

The effective tax rate of (21.4)% for the nine months ended September 30, 2012 differs from the statutory rate primarily due to state taxes, foreign taxes, the increase in the deferred tax liability from the amortization of tax deductible goodwill, the increase in the valuation allowance and discrete items recorded in the period.

During the nine months ended September 30, 2012, the Company received its transfer pricing methodology tax assessment with the Canadian Revenue Agency in the amount of $2.2 million, including accrued interest penalties. The assessment related to the 2005, 2006 and 2007 tax years and was due to the transfer pricing methodology related to royalties paid by the Company’s Canadian subsidiary to the Company. The Company previously recorded expense of $0.5 million in prior years for uncertain tax positions related to the audit by the Canadian Revenue Agency. As a result of the settlement, the Company recorded an additional expense of $1.3 million in the Company’s provision for income taxes on the condensed consolidated statements of operations for the nine months ended September 30, 2012. The Company also recorded a discrete expense of $0.4 million during the nine months ended September 30, 2012 related to the utilization of net operating losses carried back to offset adjustments related to 2006 and 2007.

As a result of the settlement with the Canadian Revenue Agency, the Company’s liability for uncertain tax positions decreased to $0 million as of September 30, 2012 from $0.3 million as of December 31, 2011. The Company’s policy for recording interest and penalties on uncertain tax positions is to record such items as a component of income tax expense. Accrued interest and penalties of $0 million and $0.2 million were recorded at September 30, 2012 and December 31, 2011, respectively.

The Company reduces the deferred tax asset resulting from future tax benefits by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of these deferred taxes will not be realized. The timing of the reversal of deferred tax liabilities associated with tax deductible goodwill is not certain and thus not available to assure the realization of deferred tax assets. Similarly, state deferred tax liabilities in excess of state deferred tax assets are not available to ensure the realization of federal deferred tax assets. After consideration of these limitations associated with deferred tax liabilities, the Company has deferred tax assets in excess of deferred tax liabilities for the periods presented. As the Company has no history of generating book income, the ultimate future realization of these excess deferred tax assets is not more likely than not and thus subject to a valuation allowance. Accordingly, the Company has established a valuation allowance against its domestic deferred tax assets. A valuation allowance has not been recorded against the Company’s foreign deferred tax assets as there are sufficient future taxable temporary differences in foreign jurisdictions to assure the realization of foreign deferred tax assets.

The Company conducts business globally, and as a result, is subject to taxation in the United States and various state jurisdictions and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in many of the jurisdictions in which the Company operates. Effectively, all of the Company’s historical tax filings are subject to examination by the Internal Revenue Service and various state and foreign jurisdictions due to the generation of net operating loss carry forwards.

It is possible that new tax exams may commence and that other issues may be effectively settled. However, the Company is unable to make a reasonably reliable estimate as to when or if cash settlements with taxing authorities may occur. Although audit outcomes and the timing of potential audit payments are subject to uncertainty, the Company does not anticipate that the resolution of these tax matters or any events related thereto will result in a material adverse change to its consolidated financial position, results of operations or cash flows.

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Net Loss Attributable to Common Stockholders (Details Textual)	9 Months Ended
	Sep. 30, 2012
Net Loss Attributable to Common Stockholders (Textual) [Abstract]
Percentage of cumulative dividend	8.00%

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Business

9 Months Ended

Sep. 30, 2012

Business/Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Business

1. Business

The Active Network, Inc., a Delaware corporation, and its subsidiaries (“Active” or the “Company”), provide cloud computing applications for activity and participant management™ that form an online network connecting a fragmented and diverse group of activity and event organizers with a large base of potential participants. The Company’s technology platform transforms the way organizers manage their activities and events by automating online registrations and streamlining other critical management functions, while driving consumer participation to their activities and events.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par share	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	61,950	58,219
Common stock, shares outstanding	60,174	56,443
Treasury stock, at cost	1,776	1,776

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Accrued Expenses

9 Months Ended

Sep. 30, 2012

Accrued Expenses [Abstract]

Accrued Expenses

11. Accrued Expenses

The following table presents the detail of accrued expenses for the periods presented (in thousands):

	September 30, 2012		December 31, 2011
Accrued compensation	$	21,769	$	17,875
Sales and other foreign taxes		7,724		5,006
Accrued penalties (Note 13)		1,496		3,154
Accrued rebates		2,731		1,846
Other accrued expenses		10,046		13,225
Accrued expenses	$	43,766	$	41,106

As of September 30, 2012, accrued compensation was comprised of accrued salaries and accrued personal time off of $15.4 million, accrued bonuses of $3.3 million, accrued self-insurance of $1.3 million, amounts payable for 401K contributions of $0.3 million, and accumulated employee deductions for stock purchase under the Company’s Employee Stock Purchase Plan of $1.5 million. As of December 31, 2011, accrued compensation was comprised of accrued salaries and accrued personal time off of $11.7 million, accrued bonuses of $4.9 million, accrued self-insurance of $0.8 million, amounts payable for 401K contributions of $0.1 million, and accumulated employee deductions for stock purchase under the Company’s Employee Stock Purchase Plan of $0.4 million.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Oct. 29, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	ACTIVE NETWORK INC
Entity Central Index Key	0001163932
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		60,565,972

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Long-Term Debt

9 Months Ended

Sep. 30, 2012

Long-Term Debt [Abstract]

Long-Term Debt

12. Long-Term Debt

2011 Credit Agreement

In December 2011, the Company entered into a five-year, senior secured, revolving credit facility, with certain institutional lenders, for an initial aggregate principal amount of $50 million (the “Credit Facility”). The Company has the ability to issue up to $15 million for letters of credit and $5 million for swing line loans under the Credit Facility. The Credit Facility also includes an “accordion” feature which allows the Company, subject to certain terms and conditions, to increase the lending commitments by up to $25 million. The Credit Facility has a maturity date of December 16, 2016, but the outstanding amounts may be prepaid at any time without penalty or premium (except for certain customary break funding payments in connection with LIBOR loans) and is available to fund acquisitions and ongoing operations.

In July 2012, the Company amended the Credit Facility by increasing the aggregate principal amount to $100 million, increasing the ability to issue letters of credit by up to $25 million and increasing the “accordion” feature by up to $50 million.

Any advance under the Credit Facility will accrue interest at rates per annum that are equal to, based on certain conditions, either (a) 1.5% above the applicable LIBOR rate, or (b) 0.5% above (i) the greatest of (x) the prime rate, (y) the federal funds effective rate plus 0.5% or (z) a daily rate equal to one-month LIBOR plus 1.00%. The unused portion of the Credit Facility will also be subject to an unused fee that will be calculated at a per annum rate of 0.25%. The interest rate under the Credit Facility was 1.86% and 3.75% as of September 30, 2012 and December 31, 2011, respectively.

Under the Credit Facility, the Company is required to comply with certain financial covenants and ratios, including a quarterly consolidated leverage ratio of consolidated funded indebtedness to EBITDA of not more than 2.5 to 1.0 and a quarterly consolidated fixed charge coverage ratio of not less than 1.5 to 1.0. Substantially all of the Company’s tangible and intangible assets are considered collateral security under the Secured Credit Facility. As of September 30, 2012 and December 31, 2011, respectively, the Company was in compliance with all specified financial covenants.

The Company had no amounts outstanding and $5.0 million outstanding under the Credit Facility as of September 30, 2012 and December 31, 2011, respectively. Amounts available under the Credit Facility were $93.0 million and $39.8 million as of September 30, 2012 and December 31, 2011, respectively, net of $7.0 and $5.2 million in outstanding letters of credit, respectively.

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net Revenue:
Technology revenue	$ 96,170	$ 76,341	$ 288,445	$ 225,002
Marketing services revenue	13,049	13,287	36,776	36,343
Total net revenue	109,219	89,628	325,221	261,345
Cost of net revenue:
Cost of technology revenue	45,571	38,291	142,038	109,986
Cost of marketing services revenue	1,826	1,599	5,257	4,241
Total cost of net revenue	47,397	39,890	147,295	114,227
Gross profit	61,822	49,738	177,926	147,118
Operating expenses:
Sales and marketing	24,154	17,116	73,462	52,970
Research and development	20,624	17,628	62,954	50,181
General and administrative	15,862	11,737	49,309	34,633
Amortization of intangibles	5,492	3,669	16,780	11,090
Total operating expenses	66,132	50,150	202,505	148,874
Loss from operations	(4,310)	(412)	(24,579)	(1,756)
Interest income	23	32	73	91
Interest expense	(239)	(109)	(480)	(2,799)
Other income (expense), net	486	(33)	1,363	109
Loss before provision for income taxes	(4,040)	(522)	(23,623)	(4,355)
Provision for income taxes	1,982	910	5,062	2,490
Net loss	(6,022)	(1,432)	(28,685)	(6,845)
Accretion of redeemable convertible preferred stock				(11,810)
Net loss attributable to common stockholders	$ (6,022)	$ (1,432)	$ (28,685)	$ (18,655)
Net loss per share attributable to common stockholders:
Basic and diluted	$ (0.10)	$ (0.03)	$ (0.49)	$ (0.62)
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic and diluted	59,444	53,701	58,259	29,993

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Accounts Receivable and Allowance for Doubtful Accounts

9 Months Ended

Sep. 30, 2012

Accounts Receivable and Allowance for Doubtful Accounts [Abstract]

Accounts Receivable and Allowance for Doubtful Accounts

6. Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable, net, by category is as follows (in thousands):

	September 30, 2012			December 31, 2011
Accounts receivable	$	56,754		$	54,101
Registration receivable		18,280			14,006
Less: Allowance for doubtful accounts		(1,228	)		(1,638	)
Accounts receivable, net	$	73,806		$	66,469

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Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

5. Fair Value Measurements

FASB guidance for fair value measurements clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The Company has no financial assets and liabilities that are measured at fair value on a recurring basis at September 30, 2012.

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2011 are as follows (in thousands):

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Accrued liabilities:
Contingent consideration associated with business combination (Note 4)	$	—	$	—	$	1,124	$	1,124

Level 3 liabilities include contingent consideration payables to selling shareholders arising from the acquisition of StarCite, the values of which were determined based on the probability of achieving specific targets. Any change in the fair value of the contingent milestone consideration subsequent to the acquisition date is recognized in earnings. This fair value measurement is based on inputs not observed in the market that are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value.

The following table provides a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended September 30, 2012 (in thousands):

	Contingent Consideration
Balance at December 31, 2011	$	1,124
Changes in fair value of contingent consideration		(1,123	)
Contingent consideration transferred to equity classification (Note 4)		(1	)
Balance at September 30, 2012	$	—

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Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Segment Information

17. Segment Information

The Company’s Chief Executive Officer who is considered to be the chief operating decision maker (“CODM”) reviews financial information presented on a consolidated basis, accompanied by information about operating segments for purposes of making operating decisions and assessing financial performance. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance.

The Company determined its operating segments to be technology and marketing services. Technology derives substantially all of its revenue from technology fees, software licensing, installation, training, maintenance, and hosting subscriptions. Marketing services derives substantially all of its revenue from online services, field marketing services, and membership programs.

The Company evaluates the performance of its operating segments based on net revenues and operating income before interest, taxes, depreciation, amortization and stock-based compensation expense.

The Company does not allocate most of its assets, depreciation and amortization expense, stock-based compensation expense, interest income, interest expense or income tax expense by segment. Accordingly, the Company does not report such information.

Summarized information by segment is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net revenue by segment:
Technology	$	96,170	$	76,341	$	288,445	$	225,002
Marketing services		13,049		13,287		36,776		36,343
Total net revenue	$	109,219	$	89,628	$	325,221	$	261,345

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs:
Technology	$	20,728		$	17,034		$	52,736		$	51,050
Marketing services		5,341			5,710			12,143			15,333
Total segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs		26,069			22,744			64,879			66,383
Depreciation and amortization		(15,033	)		(11,146	)		(45,127	)		(32,654	)
Stock-based compensation expense		(4,661	)		(1,970	)		(11,992	)		(4,782	)
Unallocated corporate costs		(10,685	)		(10,040	)		(32,339	)		(30,703	)
Loss from operations	$	(4,310	)	$	(412	)	$	(24,579	)	$	(1,756	)

The Company allocates its net revenue to geographic regions based on the customer’s location. The following tables set forth net revenue and long-lived assets by geographic region (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net revenue:
North America	$	105,963	$	86,819	$	315,947	$	253,587
Europe and other		3,256		2,809		9,274		7,758
Total net revenue	$	109,219	$	89,628	$	325,221	$	261,345

	September 30, 2012		December 31, 2011
Assets:
North America	$	562,140	$	596,039
Europe and other		4,758		3,188
Total assets	$	566,898	$	599,227
Long-lived assets:
North America	$	399,858	$	413,461
Europe and other		1,714		1,255
Total long-lived assets	$	401,572	$	414,716

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies/Legal Proceedings [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

Operating Leases

The Company leases its office and datacenter facilities under non-cancelable leases that expire at various times through 2021. The Company is also responsible for certain real estate taxes, utilities and maintenance costs on its office facilities. Rent expense was approximately $3.7 million and $2.9 million for the three months ended September 30, 2012 and 2011, respectively, and $10.7 million and $8.3 million for the nine months ended September 30, 2012 and 2011, respectively.

Guarantees

The Company enters into arrangements with third-party customers to guarantee performance by the Company. The Company may provide a corporate guarantee, irrevocable letter of credit, surety bond or any other form of guarantee acceptable to the third-party customer. As of September 30, 2012 and December 31, 2011, the Company had guarantees of $10.1 million and $14.2 million, respectively.

Self-Insured Health Plan

The Company is generally self-insured for losses and liabilities related to health benefits. The Company’s self-insurance accruals are based on estimates, and while the Company believes that the amounts accrued are adequate, the ultimate claims may be in excess of the amounts provided. The Company’s accrued health benefits liability was $1.3 million and $0.8 million at September 30, 2012 and December 31, 2011, respectively.

Sales and Use Tax

The Company accrues for sales and use taxes in certain states. The Company estimates a potential liability in states where it had not previously remitted these taxes. The Company has established a reserve for estimated claims from states where sales and use tax had not been remitted of $5.0 million and $4.3 million at September 30, 2012 and December 31, 2011, respectively.

Indemnification

The Company enters into indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to its technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements.

The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.

Penalty Accruals

In the normal course of business, the Company may incur penalties from its customers for various technical disruptions. The Company records a liability, on a contract-by-contract basis, for specific matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. The Company subsequently reduces the liability as these matters are settled. Penalties are reflected as a reduction in revenue or as an increase in cost of revenue in the Company’s consolidated statement of operations.

The Company maintains a liability of $1.5 million and $3.2 million at September 30, 2012 and December 31, 2011, respectively, as a result of this potential exposure. The decrease in the liability for the nine months ended September 30, 2012 primarily relates to a settlement with a customer for approximately $1.5 million, which reduced the accounts receivable due from the customer, as well as the liability associated with the penalty accrual.

Security Breach

In December 2010, the Company became aware of a security breach in one of the legacy computer systems it acquired in an acquisition. This breach could potentially result in an unauthorized acquisition and use of credit card data and could result in assessments or damages from claims asserted by organizers or participants. The Company has performed an internal investigation to assess the potential exposure of the breach and determined it to be insignificant; accordingly, no amounts have been accrued as of September 30, 2012 or December 31, 2011. To date the Company has paid approximately $0.2 million in assessments associated with this breach, of which $0.1 million is reimbursable under the Company’s insurance policy.

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Goodwill

9 Months Ended

Sep. 30, 2012

Goodwill/Intangible Assets [Abstract]

Goodwill

9. Goodwill

The change in the carrying amount of goodwill for the nine months ended September 30, 2012 is as follows (in thousands):

	Technology			Marketing Services		Total
Balance at December 31, 2011	$	230,602		$	12,718	$	243,320
Adjustments related to prior year acquisitions		(122	)		—		(122	)
Effect of exchange rate changes		910			—		910
Balance at September 30, 2012	$	231,390		$	12,718	$	244,108

Adjustments to goodwill during the nine months ended September 30, 2012 represent adjustments for indemnification claims recorded during the year that related to acquisitions made in the preceding year. These adjustments to goodwill were not material to the Company’s prior and current period financial statements or results of operations.

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Stock-Based Compensation (Details 1)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Weighted-average assumptions used to estimate the fair value of stock options granted
Expected dividend yield
Expected term (in years)		4 years 10 months 24 days	5 years	4 years 10 months 24 days
Range High [Member]
Weighted-average assumptions used to estimate the fair value of stock options granted
Volatility		49.10%	52.80%	49.20%
Risk-free rate		1.10%	1.10%	2.20%
Range Low [Member]
Weighted-average assumptions used to estimate the fair value of stock options granted
Volatility		48.70%	51.80%	48.50%
Risk-free rate		0.90%	0.70%	0.90%

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Property and Equipment

9 Months Ended

Sep. 30, 2012

Property and Equipment [Abstract]

Property and Equipment

7. Property and Equipment

Property and equipment by category is as follows (in thousands):

	September 30, 2012			December 31, 2011
Computer and software	$	74,554		$	63,947
Furniture and fixtures		9,654			10,586
Leasehold improvements		5,779			3,438
Property and equipment		89,987			77,971
Less: Accumulated depreciation		(54,945	)		(44,141	)
Property and equipment, net	$	35,042		$	33,830

Depreciation expense was $3.9 million and $3.5 million for the three months ended September 30, 2012 and 2011, respectively, and $11.6 million and $10.3 million for the nine months ended September 30, 2012 and 2011, respectively.

Included in fixed assets are $10.9 million and $9.5 million of equipment under capital leases at September 30, 2012 and December 31, 2011. Accumulated amortization of assets under capital leases totaled $7.2 million and $5.5 million at September 30, 2012 and December 31, 2011, respectively.

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Software Development Costs

9 Months Ended

Sep. 30, 2012

Software Development Costs [Abstract]

Software Development Costs

8. Software Development Costs

Capitalized software development costs are as follows (in thousands):

	September 30, 2012			December 31, 2011
Software development costs	$	83,580		$	65,696
Less: Accumulated amortization		(33,116	)		(20,603	)
Software development costs, net	$	50,464		$	45,093

Amortization expense was $4.2 million and $2.6 million for the three months ended September 30, 2012 and 2011, respectively, and $12.4 million and $7.0 million for the nine months ended September 30, 2012 and 2011, respectively.

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Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill/Intangible Assets [Abstract]

Intangible Assets

10. Intangible Assets

Intangible assets are amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets.

Certain of the Company’s intangible assets were recorded in foreign currencies and both the gross carrying amounts and accumulated amortization are subject to foreign exchange adjustments. The carrying values of amortized intangible assets are as follows (in thousands):

	September 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intellectual property	$	28,277	$	(16,348	)	$	11,929	$	36,609	$	(20,351	)	$	16,258
Non-compete agreements		2,898		(1,258	)		1,640		3,850		(1,085	)		2,765
Customer relationships		46,295		(11,418	)		34,877		67,891		(26,799	)		41,092
Trade names		13,471		(3,692	)		9,779		16,568		(5,566	)		11,002
Customer contracts		47,178		(35,755	)		11,423		52,219		(32,996	)		19,223
Intangible assets	$	138,119	$	(68,471	)	$	69,648	$	177,137	$	(86,797	)	$	90,340

Amortization of intellectual property is recorded in cost of revenue, while the amortization of other acquired intangible assets is included in operating expenses. The following table summarizes the classification of amortization expense of acquired intangible assets for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of technology revenue	$	1,323	$	1,267	$	4,034	$	3,820
Cost of marketing services revenue		85		127		318		400
Operating expenses		5,492		3,669		16,780		11,090
Total amortization of acquired intangible assets	$	6,900	$	5,063	$	21,132	$	15,310

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Stock-Based Compensation (Details 5) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Components of stock-based compensation expense
Stock-based compensation expense	$ 4,661	$ 1,970	$ 11,992	$ 4,782
ESPP [Member]
Components of stock-based compensation expense
Stock-based compensation expense	210	109	579	109
Stock options [Member]
Components of stock-based compensation expense
Stock-based compensation expense	2,051	1,726	6,057	4,479
Restricted stock [Member]
Components of stock-based compensation expense
Stock-based compensation expense	2,418	135	5,251	194
PRSUs [Member]
Components of stock-based compensation expense
Stock-based compensation expense	$ (18)		$ 105

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Net Loss Attributable to Common Stockholders (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net loss per share:
Net loss	$ (6,022)	$ (1,432)	$ (28,685)	$ (6,845)
Less: accretion of redeemable convertible preferred stock				11,810
Net loss attributable to common stockholders	$ (6,022)	$ (1,432)	$ (28,685)	$ (18,655)
Weighted-average common shares outstanding:
Basic and diluted	59,444	53,701	58,259	29,993
Net loss per share attributable to common stockholders:
Basic and diluted	$ (0.10)	$ (0.03)	$ (0.49)	$ (0.62)

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Stock-Based Compensation (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Classification of stock-based compensation in the statements of operations
Stock-based compensation expense	$ 4,661	$ 1,970	$ 11,992	$ 4,782
Cost of revenue [Member]
Classification of stock-based compensation in the statements of operations
Stock-based compensation expense	222	52	474	107
Sales and marketing [Member]
Classification of stock-based compensation in the statements of operations
Stock-based compensation expense	1,007	277	2,709	1,040
Research and development [Member]
Classification of stock-based compensation in the statements of operations
Stock-based compensation expense	662	315	1,782	636
General and administrative [Member]
Classification of stock-based compensation in the statements of operations
Stock-based compensation expense	$ 2,770	$ 1,326	$ 7,027	$ 2,999

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2012

Goodwill/Intangible Assets [Abstract]

Carrying values of amortized intangible assets

	September 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intellectual property	$	28,277	$	(16,348	)	$	11,929	$	36,609	$	(20,351	)	$	16,258
Non-compete agreements		2,898		(1,258	)		1,640		3,850		(1,085	)		2,765
Customer relationships		46,295		(11,418	)		34,877		67,891		(26,799	)		41,092
Trade names		13,471		(3,692	)		9,779		16,568		(5,566	)		11,002
Customer contracts		47,178		(35,755	)		11,423		52,219		(32,996	)		19,223
Intangible assets	$	138,119	$	(68,471	)	$	69,648	$	177,137	$	(86,797	)	$	90,340

Amortization expense of acquired intangible assets

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of technology revenue	$	1,323	$	1,267	$	4,034	$	3,820
Cost of marketing services revenue		85		127		318		400
Operating expenses		5,492		3,669		16,780		11,090
Total amortization of acquired intangible assets	$	6,900	$	5,063	$	21,132	$	15,310

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Goodwill (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012
Carrying amount of goodwill
Balance at December 31, 2011	$ 243,320
Adjustments related to prior year acquisitions	(122)
Effect of exchange rate changes	910
Balance at September 30, 2012	244,108
Technology [Member]
Carrying amount of goodwill
Balance at December 31, 2011	230,602
Adjustments related to prior year acquisitions	(122)
Effect of exchange rate changes	910
Balance at September 30, 2012	231,390
Marketing Services [Member]
Carrying amount of goodwill
Balance at December 31, 2011	12,718
Adjustments related to prior year acquisitions
Effect of exchange rate changes
Balance at September 30, 2012	$ 12,718

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

15. Stock-Based Compensation

The Company’s stock-based compensation is comprised of stock options, stock options with market conditions, restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”).

Stock Options

The Company granted 1,350,754 stock options during the nine months ended September 30, 2012, of which 749,839 stock options contained a market condition. Stock option activity for the nine months ended September 30, 2012 is as follows:

Stock Options	Number of Shares Underlying Options			Weighted- Average Exercise Price
Outstanding at December 31, 2011		11,604,808		$	3.71
Granted		1,350,754			14.26
Exercised		(3,593,927	)		2.32
Cancelled or expired		(366,193	)		8.67
Outstanding at September 30, 2012		8,995,442		$	5.65

The fair value of stock options granted that contain only a service condition as a requirement for vesting, was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
Volatility		—		48.7-49.1	%		51.8-52.8	%		48.5-49.2	%
Expected dividend yield		—		—			—			—
Risk-free rate		—		0.9-1.1	%		0.7-1.1	%		0.9-2.2	%
Expected term (in years)		—		4.9			5.0			4.9

The fair value of stock options granted that contain a market condition was estimated on the date of grant using the Monte Carlo Simulation valuation model, which estimates the potential outcome of reaching the market condition based on simulated future stock prices, with the following assumptions: contractual life of six years; expected volatility of 47% and risk free interest rate of 0.74%. These options vest over four years and are exercisable if specified stock prices are achieved.

Total unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options is approximately $18.0 million as of September 30, 2012 and is expected to be recognized over a weighted-average period of 2.7 years.

Restricted Stock Units

RSU and PRSU activity for the nine months ended September 30, 2012 is as follows:

RSUs and PRSUs	Number of RSUs			Weighted- Average Grant Date Fair Value of RSUs		Number of PRSUs		Weighted- Average Grant Date Fair Value of PRSUs
Unvested at December 31, 2011		663,127		$	15.23		—	$	—
Granted		1,120,027			16.01		791,632		12.04
Released		(100,532	)		16.65		—		—
Cancelled or expired		(41,057	)		17.04		—		—
Unvested at September 30, 2012		1,641,565		$	15.63		791,632	$	12.04

The fair value of RSUs and PRSUs is based on the stock price on the date of grant. The RSUs vest over a four year period following the date of grant. The PRSUs vest over a two to four year period following the date of grant, subject to achievement of performance objectives and the participant’s continued service through the applicable vesting dates.

The number of PRSUs granted in the table above represents the maximum number of awards that could ultimately be issued if certain Company financial targets, as defined under the agreements, are achieved. The shares, if any, will be issued on a one-for-one basis following the end of the applicable performance and service periods. Compensation cost associated with the PRSUs is recognized when the performance metrics are determined to be probable of achievement over the requisite service periods.

During the three months ended September 30, 2012, 60,378 PRSUs that previously required cash settlement on the vest date were modified to allow for settlement in cash or shares at the election of the Company. Compensation cost associated with these awards is measured using the fair value of the Company’s common stock on the modification date.

At September 30, 2012, the remaining unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs is $21.2 million and is expected to be recognized over a weighted-average period of 3.1 years. The remaining unrecognized compensation cost associated with the maximum number of PRSUs that could ultimately be issued of $9.5 million is expected to be recognized if and when the performance conditions are estimated to be probable of achievement over the remaining service period.

Employee Stock Purchase Plan

The Company issued 77,345 shares for approximately $0.9 million in employee contributions during the nine months ended September 30, 2012 under the Company’s 2011 Employee Stock Purchase Plan (“2011 ESPP”).

The fair value of each purchase option under the 2011 ESPP is estimated at the beginning of each six-month offering period using the Black-Scholes model with the following weighted-average assumptions:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Volatility		44.5	%		47.6	%		44.5-57.9	%		47.6	%
Expected dividend yield		—			—			—			—
Risk-free rate		0.2	%		0.1	%		0.2	%		0.1	%
Expected term (in years)		0.5			0.3			0.5			0.3

As of September 30, 2012, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the 2011 ESPP was $0.1 million, which is expected to be recognized over a weighted-average period of less than six months.

Stock-Based Compensation Expense

The following table presents the effects of stock-based compensation expense related to stock-based awards to employees in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of revenue	$	222	$	52	$	474	$	107
Sales and marketing		1,007		277		2,709		1,040
Research and development		662		315		1,782		636
General and administrative		2,770		1,326		7,027		2,999
Total stock-based compensation	$	4,661	$	1,970	$	11,992	$	4,782

The components of stock-based compensation expense were as follows (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012		2011
Stock options	$	2,051		$	1,726	$	6,057	$	4,479
Restricted stock		2,418			135		5,251		194
PRSUs		(18	)		—		105		—
ESPP		210			109		579		109
Total stock-based compensation	$	4,661		$	1,970	$	11,992	$	4,782

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

20. Employee Benefit Plans

Defined Contribution Plan

The Company has a defined contribution plan under Section 401(k) of the Internal Revenue Code (“401(k) Plan”) covering all full-time employees who meet certain eligibility requirements. Eligible employees may defer up to 4% of their pre-tax compensation, up to the annual maximum allowed by the Internal Revenue Service. Under the 401(k) Plan, the Company may, but is not obligated to, match a portion of the employee contributions up to a defined maximum. The Company made matching contributions of $0.3 million and $0.2 million for the three months ended September 30, 2012 and 2011, respectively, and $0.8 million and $0.6 million for the nine months ended September 30, 2012 and 2011, respectively.

Deferred Compensation Plan

In July 2012, the Company approved an unfunded, non-qualified Deferred Compensation Plan for certain employees. Under the Deferred Compensation Plan, participants may elect to defer up to 80% of their base salaries and up to 100% of performance-based compensation and commissions. The Company may also, at its discretion, match a portion of the employee contributions up to a defined maximum for each deferral election as prescribed in the Deferred Compensation Plan. The Company contributions vest annually over a four year period, subject to the employee’s continued service with the Company. The initial participation period of the Deferred Compensation Plan will begin in October 2012.

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Software Development Costs (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of Capitalized software development costs
Software development costs	$ 83,580	$ 65,696
Less: Accumulated amortization	(33,116)	(20,603)
Software development costs, net	$ 50,464	$ 45,093

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Business Combinations (Details 1) (USD $) In Thousands, unless otherwise specified			1 Months Ended		1 Months Ended		1 Months Ended		1 Months Ended		1 Months Ended				1 Months Ended							1 Months Ended						1 Months Ended					1 Months Ended
	Sep. 30, 2012 Acquisition of StarCite, Inc. [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member]	Dec. 31, 2011 Acquisition of StarCite, Inc. [Member] Trademarks [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member] Trademarks [Member]	Dec. 31, 2011 Acquisition of StarCite, Inc. [Member] Customer relationships [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member] Customer relationships [Member]	Dec. 31, 2011 Acquisition of StarCite, Inc. [Member] Customer contracts [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member] Customer contracts [Member]	Dec. 31, 2011 Acquisition of StarCite, Inc. [Member] Complete technology [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member] Complete technology [Member]	Dec. 31, 2011 Acquisition of StarCite, Inc. [Member] Non-compete agreements [Member]	Dec. 30, 2011 Acquisition of StarCite, Inc. [Member] Non-compete agreements [Member]	Sep. 30, 2012 Acquisition of RTP, LLC [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Trademarks [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Customer relationships [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Customer contracts [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Complete technology [Member]	Nov. 30, 2011 Acquisition of RTP, LLC [Member] Non-compete agreements [Member]	Sep. 30, 2012 Acquisition of Service U [Member]	Oct. 31, 2011 Acquisition of Service U [Member]	Oct. 31, 2011 Acquisition of Service U [Member] Trademarks [Member]	Oct. 31, 2011 Acquisition of Service U [Member] Customer relationships [Member]	Oct. 31, 2011 Acquisition of Service U [Member] Complete technology [Member]	Oct. 31, 2011 Acquisition of Service U [Member] Non-compete agreements [Member]	Sep. 30, 2012 Fellowship Technologies, Inc. [Member]	Feb. 28, 2011 Fellowship Technologies, Inc. [Member]	Feb. 28, 2011 Fellowship Technologies, Inc. [Member] Trademarks [Member]	Feb. 28, 2011 Fellowship Technologies, Inc. [Member] Customer contracts/relationships [Member]	Feb. 28, 2011 Fellowship Technologies, Inc. [Member] Complete technology [Member]	Sep. 30, 2012 Other Business Combinations [Member]	Dec. 31, 2011 Other Business Combinations [Member]	Dec. 31, 2011 Other Business Combinations [Member] Customer contracts/relationships [Member]	Dec. 31, 2011 Other Business Combinations [Member] Complete technology [Member]
Identifiable intangible assets acquired
Gross amount at acquisition date	$ 36,500	$ 36,500		$ 5,100		$ 17,300		$ 6,800		$ 6,500		$ 800	$ 15,960	$ 15,960	$ 1,350	$ 9,700	$ 510	$ 2,900	$ 1,500	$ 10,377	$ 10,377	$ 250	$ 8,300	$ 1,229	$ 598	$ 3,568	$ 3,568	$ 197	$ 2,730	$ 641	$ 3,427	$ 3,427	$ 3,392	$ 35
Amortization Period			9 years		9 years		3 years		9 years		1 year				5 years	13 years	2 years	9 years	3 years			2 years	14 years	6 years	3 years			3 years	4 years	4 years			3 years	3 years

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Condensed Consolidated Statements of Comprehensive Loss [Abstract]
Net loss	$ (6,022)	$ (1,432)	$ (28,685)	$ (6,845)
Other comprehensive income (loss):
Foreign currency translation	1,483	(2,720)	1,446	(1,548)
Total other comprehensive income (loss)	1,483	(2,720)	1,446	(1,548)
Comprehensive loss	$ (4,539)	$ (4,152)	$ (27,239)	$ (8,393)

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Business Combinations

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Business Combinations

4. Business Combinations

Acquisition of StarCite, Inc.

On December 30, 2011, the Company completed the acquisition of all of the outstanding shares of StarCite, Inc. (“StarCite”), a provider of a technology platform that delivers content and services for meetings and event planning to corporations, hotels, venues and meetings suppliers for total consideration of $57.6 million in cash, shares of the Company’s common stock, and contingently issuable shares of the Company’s common stock. The acquisition enables the Company to provide an integrated solution for the events space and broaden its customer base.

Total consideration comprised $38.1 million in cash, 1,350,000 shares of common stock with a fair value of approximately $18.4 million and 150,000 shares of contingently issuable common stock with an acquisition date fair value of approximately $1.1 million to be issued in the event that the Company’s shares of common stock did not close trading at or above $15.00 per share on the New York Stock Exchange for at least three consecutive days at any time during the sixty day period following the effective date of a registration statement filed to register the shares issued, pursuant to the agreement and plan of merger. The estimated fair value of the contingent consideration was determined using the Monte Carlo Simulation approach, which involves key assumptions including the estimated contingency period and volatility of the Company’s common stock to assess the probability of achieving the targeted price and was included in other current liabilities in the consolidated balance sheets at December 31, 2011.

The Company’s common stock traded at or above $15.00 per share for three consecutive days subsequent to April 11, 2012, the effective registration date of the shares; accordingly the contingently issuable shares were not issuable to the former StarCite security holders. Immediately prior to the effective date of the registration statement, the estimated fair value of the contingent consideration was approximately $38,000. The change in the estimated fair value of the contingent consideration was recorded in other income in the Company’s condensed consolidated statements of operations and the remaining fair value was transferred from other current liabilities to equity.

The acquisition agreement included an initial escrow of approximately $0.3 million in cash to cover potential expenses of the security holders’ agent and 300,000 common shares valued at approximately $4.1 million, based on the closing price of the Company’s common stock on the last trading day of fiscal 2011, to satisfy any claims under the indemnification provisions of the agreement for a period of 12 months following the acquisition date. During the nine months ended September 30, 2012, 16,261 escrow shares valued at approximately $0.2 million were cancelled in order to satisfy indemnification claims related to the acquisition. The cancellation of these shares was recorded as a purchase price adjustment with a corresponding reduction to goodwill.

As of the date of this Quarterly Report on Form 10-Q, the Company is still finalizing the estimated fair value of assets acquired and liabilities assumed. The primary areas of those preliminary estimates that are not yet finalized related to certain tangible liabilities acquired and identifiable intangible assets, which is expected to be completed during fiscal 2012. The estimated fair values of assets acquired and liabilities assumed for the StarCite acquisition are as follows (in thousands):

Cash	$	572
Restricted cash		692
Accounts receivable		14,566
Prepaid and other assets		1,301
Fixed assets		1,912
Goodwill		21,745
Intangible assets		36,500
Accounts payable		(1,398	)
Accrued expenses		(5,459	)
Deferred revenue		(11,286	)
Capital lease obligations		(480	)
Other liabilities		(528	)
Unfavorable leases		(695	)
Total purchase price	$	57,442

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	5,100		9 years
Customer relationships		17,300		9 years
Customer contracts		6,800		3 years
Complete technology		6,500		9 years
Non-compete agreements		800		1 year
Total intangible assets	$	36,500

Goodwill of $21.7 million, none of which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from StarCite. The carrying amount of goodwill is allocated to the technology operating segment of the Company.

The Company also entered into termination agreements with certain StarCite executives in connection with the acquisition resulting in an expense of approximately $1.9 million. These expenses were treated as acquisition-related expenses and were included in the consolidated statements of operations during fiscal 2011.

Pro Forma Financial Information (unaudited)

The following table presents the unaudited pro forma results for the three and nine months ended September 30, 2012 and 2011. The unaudited pro forma financial information combines the results of operations of the Company and StarCite as though the companies had been combined as of the beginning of fiscal 2011. The pro forma financial information for all periods presented also includes the business combination accounting effects resulting from this acquisition including amortization charges from acquired intangible assets as though StarCite was combined as of the beginning of fiscal 2011. The pro forma financial information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition of StarCite had taken place at the beginning of fiscal 2011.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)
	(In thousands, except per share data)
Net revenue	$	109,219		$	101,084		$	325,221		$	294,763
Net loss attributable to common stockholders	$	(6,022	)	$	(3,323	)	$	(28,685	)	$	(26,308	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.10	)	$	(0.06	)	$	(0.49	)	$	(0.84	)

Acquisition of RTP, LLC

In November 2011, the Company completed the purchase of all of the outstanding units of RTP, LLC (“RTP”), a provider of integrated resort software and solutions. The acquisition enables the Company to strengthen its position as a technology leader and broaden its customer base into the resort space. The purchase consideration was approximately $21.5 million in cash.

The estimated fair values of assets acquired and liabilities assumed for the RTP acquisition are as follows (in thousands):

Cash	$	903
Accounts receivable		5,648
Prepaid and other assets		1,050
Fixed assets		309
Goodwill		3,394
Intangible assets		15,960
Accounts payable		(2,821	)
Accrued expenses		(435	)
Deferred revenue		(2,375	)
Other liabilities		(133	)
Total purchase price	$	21,500

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	1,350		5 years
Customer relationships		9,700		13 years
Customer contracts		510		2 years
Complete technology		2,900		9 years
Non-compete agreements		1,500		3 years
Total intangible assets	$	15,960

Goodwill of $3.4 million, which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from RTP. Approximately $3.0 million and $0.4 million of the carrying amount of goodwill are allocated to the technology and marketing services operating segments of the Company, respectively.

Acquisition of ServiceU

In October 2011, the Company acquired all of the outstanding common shares of ServiceU, a provider of web-based solutions for giving, event registration, ticketing, calendaring and resource management. The acquisition enables the Company to strengthen its position as a technology leader and broaden its customer base in the faith space. The purchase consideration was approximately $11.1 million in cash.

The estimated fair values of assets acquired and liabilities assumed for the ServiceU acquisition are as follows (in thousands):

Cash	$	13
Accounts receivable		201
Prepaid and other assets		51
Fixed assets		249
Goodwill		4,388
Intangible assets		10,377
Accounts payable		(21	)
Accrued expenses		(132	)
Deferred revenue		(42	)
Capital lease obligations		(120	)
Deferred tax liability		(3,914	)
Total purchase price	$	11,050

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	250		2 years
Customer relationships		8,300		14 years
Complete technology		1,229		6 years
Non-compete agreements		598		3 years
Total intangible assets	$	10,377

Goodwill of $4.4 million, none of which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from ServiceU. The carrying amount of goodwill is allocated to the technology operating segment of the Company.

Acquisition of Fellowship Technologies, Inc.

In February 2011, the Company acquired Fellowship Technologies, Inc. (“Fellowship”), a provider of web-based software to religious institutions. The acquisition enables the Company to strengthen its position as a technology leader and broaden its customer base in the faith space. The purchase consideration was approximately 1,125,000 shares of the Company’s common stock valued at approximately $8.9 million.

The estimated fair values of assets acquired and liabilities assumed for the Fellowship acquisition are as follows (in thousands):

Cash	$	520
Accounts receivable		195
Prepaid and other assets		15
Fixed assets		530
Security deposits		58
Goodwill		5,680
Intangible assets		3,568
Accounts payable		(101	)
Deferred revenue		(528	)
Capital lease obligations		(481	)
Other liabilities		(187	)
Unfavorable leases		(404	)
Total purchase price	$	8,865

The acquisition was accounted for as a purchase business combination. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Trademarks	$	197		3 years
Customer contracts/relationships		2,730		4 years
Complete technology		641		4 years
Total intangible assets	$	3,568

Goodwill of $5.7 million, which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed from Fellowship. The carrying amount of goodwill is allocated to the technology operating segment of the Company.

Other Business Combinations

During the year ended December 31, 2011, the Company acquired operations from two other businesses including a provider of web-based church management solutions and a provider of online registration for endurance events. The Company acquired the assets of these two businesses in exchange for $4.6 million in cash. These acquisitions enable the Company to strengthen its position as a technology leader and broaden its customer base in the faith and endurance spaces. The estimated fair values of assets acquired and liabilities assumed were as follows (in thousands):

Cash	$	14
Accounts receivable		145
Prepaid and other assets		12
Goodwill		1,362
Intangible assets		3,427
Accounts payable		(20	)
Accrued expenses		(27	)
Deferred revenue		(296	)
Total purchase price	$	4,617

The acquisitions were accounted for as purchase business combinations. The excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill, which is deductible for tax purposes and is allocated to the technology operating segment of the Company. The following table summarizes the identifiable intangible assets acquired as of the date of the acquisition (dollars in thousands):

	Gross Amount at Acquisition Date		Amortization Period
Customer contracts/relationships	$	3,392		3 years
Complete technology		35		3 years
Total intangible assets	$	3,427

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Legal Proceedings (Details Textual)	9 Months Ended
	Sep. 30, 2012 Employee
Legal Proceedings (Textual) [Abstract]
Number of employees with non solicitation agreements	2

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net revenue by segment:
Technology	$ 96,170	$ 76,341	$ 288,445	$ 225,002
Marketing services	13,049	13,287	36,776	36,343
Total net revenue	109,219	89,628	325,221	261,345
Segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs:
Total segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs	26,069	22,744	64,879	66,383
Depreciation and amortization	(15,033)	(11,146)	(45,127)	(32,654)
Stock-based compensation expense	(4,661)	(1,970)	(11,992)	(4,782)
Unallocated corporate costs	(10,685)	(10,040)	(32,339)	(30,703)
Loss from operations	(4,310)	(412)	(24,579)	(1,756)
Technology [Member]
Segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs:
Total segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs	20,728	17,034	52,736	51,050
Marketing services [Member]
Segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs:
Total segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs	$ 5,341	$ 5,710	$ 12,143	$ 15,333

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Business/Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Active and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

Unaudited Interim Financial Information

The accompanying condensed consolidated balance sheet as of September 30, 2012, the condensed consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011, the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2012 and 2011 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2012 and 2011 are unaudited. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to the three and nine months ended September 30, 2012 and 2011 are unaudited. The unaudited condensed consolidated interim financial statements and notes hereto have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial condition, results of operations and comprehensive loss for the three and nine months ended September 30, 2012 and 2011 and cash flows for the nine months ended September 30, 2012 and 2011; however, they do not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). The results of operations for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for fiscal 2012 or for any other interim period or for any other future year. These unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition

The Company recognizes technology revenue primarily from registration fees and related hosting and implementation services. The Company also records revenue for marketing services. The Company recognizes revenue when a signed contract or other persuasive evidence of an arrangement exists, the services have been rendered, the fee is fixed or determinable, and collection of the resulting receivable is probable. The Company’s arrangements do not contain general rights of return.

The Company assesses whether the fee is fixed or determinable, and collection is probable, at the time of the transaction. In determining whether the fee is fixed or determinable, the Company compares the payment terms of the transaction to its standard payment terms and whether payment is free of contingencies or significant uncertainties. If a significant portion of the fee is considered to have extended payment terms or the fee is subject to adjustment, the Company accounts for the fee as not being fixed or determinable and recognizes revenue as the payments become due. The Company assesses whether collection is probable based on a number of factors, including the customer’s past transaction history and credit-worthiness. The Company does not request collateral from its customers. If the Company determines that collection of a fee is not probable, the Company defers the fee and recognizes revenue at the time collection becomes probable, which is generally upon receipt of cash.

The Company generally recognizes registration revenue when received, net of registration fees paid to event organizers, where the Company is acting as an agent of event organizers. Net registration revenue comprised 65% and 67% of total net revenue for the three months ended September 30, 2012 and 2011, respectively and 66% and 69% for the nine months ended September 30, 2012 and 2011, respectively.

In certain circumstances, the Company pre-purchases registrations from event organizers. The decision to record revenue gross versus net is a matter of significant judgment that is dependent upon the relevant facts and circumstances. The Company evaluates the presentation of revenue on a gross or net basis based on the qualitative weight of various indicators in the authoritative accounting guidance in order to determine whether the Company recognizes (a) the gross amount billed to a customer because it has earned revenue from the sale of the goods or service or (b) the net amount retained (that is, the amount billed to a customer less the amount paid to a supplier because it has earned a commission or fee). Registration revenue associated with these transactions is recorded on a gross basis, as the Company bears inventory risk, has latitude in establishing price, bears credit risk and assumes many of the responsibilities of the primary obligor, except for the actual fulfillment of the event.

For the sale of registrations recorded on a gross basis, cash collected prior to an event is recorded as deferred revenue until the event occurs. Revenue recognized on a gross basis associated with these transactions comprised 2.0% and 1.1% of total net revenue during the three months ended September 30, 2012 and 2011, respectively and 1.3% and 0.4% during the nine months ended September 30, 2012 and 2011, respectively.

On January 1, 2011, the Company adopted the new accounting standard for multiple deliverable revenue arrangements which provides guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated. This guidance requires an entity to allocate revenue in an arrangement using the “best estimate of selling price” (“BESP”) of deliverables if it does not have vendor-specific objective evidence (“VSOE”) of selling price based on historical stand-alone sales or third-party evidence (“TPE”) of selling price. Due to the unique nature of some of the Company’s multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales using VSOE or TPE, therefore, the Company may use its best estimate to establish selling prices for these arrangements under the new accounting standard. The Company establishes its best estimates within a range of selling prices considering multiple factors including, but not limited to, factors such as customer base, size of transaction, available media inventory, pricing strategies and market conditions. The Company believes the use of the BESP allows revenue recognition in a manner consistent with the underlying economics of the transaction. The adoption of this amended standard did not have a significant impact on the Company’s revenue recognition for multiple deliverable revenue arrangements.

Many customers who use the Company’s hosting services or license its software also enter into separate professional services and training arrangements with the Company. In addition, certain of the Company’s hosting agreements include up-front payments for implementation of hosting services. In determining whether professional services and implementation revenue should be accounted for separately, the Company evaluates (among other factors): the nature of the deliverables; whether they are ready for their intended use by the customer upon receipt; the nature of the implementation services; the availability of services from other vendors; whether the timing of payments for license revenue is coincident with performance of services and whether milestones or acceptance criteria exist that affect the realizability of the hosting or software license fee. For up-front fees and other revenues received for implementation services associated with hosting arrangements, the Company defers the related revenue and records revenue over the term of the hosting contract since the implementation and hosting do not have stand-alone value. For license and professional services that qualify for separate accounting, such as arrangements that involve off-the-shelf software, the services do not include significant alterations to the features and functionality of the software, the services are primarily comprised of implementation services and fair value exists for the undelivered elements, software revenue is generally recognized when the software is delivered and service revenue is recognized when the services are performed.

For license and professional service arrangements that do not qualify for separate accounting, such as arrangements that involve significant modification or customization of the software, arrangements that include milestones or customer specific acceptance criteria, or where payment for the software license is tied to the performance of professional services, software license revenue is generally recognized together with the professional services revenue when services have been rendered. A majority of such arrangements are recognized together with the professional services. Penalties from customers related to power outages or other technical disruptions are recognized in the period in which such amounts are incurred based on the Company’s estimated liability and are recorded as a reduction of revenue or an increase to cost of revenue. If the total estimated costs to complete a project exceed the total contract amount, indicating a loss, the entire anticipated loss is recognized currently.

Maintenance revenue consists of fees for providing software updates on a when-and-if available basis and technical support to software products (“post contract customer support” or “PCS”). Maintenance revenue is recognized ratably over the terms of the agreement.

Marketing services revenue consists of online and integrated field marketing campaigns and membership programs. The Company’s online marketing services include online advertising, e-mail marketing and targeted newsletter promotions. Banner, button and e-mail advertisements are impression-based, with the revenue based on the number of times the advertisement is displayed or delivered over the contract period. Impression-based contract revenue is primarily recognized as the impression is displayed on the Company’s web site or delivered by e-mail to the intended addressee. The Company’s field marketing services include event promotions, sponsorships and sample placements and are defined contractually with individual customers. Field marketing revenue is recognized over the term of the contract or when revenue is earned based on the performance of services associated with a series of events. Revenue from membership programs is recognized over the term of the membership period.

Significant management judgments and estimates are made in connection with determination of the revenue to be recognized in any accounting period. If the Company makes different judgments or utilized different estimates for any period, material differences in the amount and timing of revenue recognized could result.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Summarized information by segment

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net revenue by segment:
Technology	$	96,170	$	76,341	$	288,445	$	225,002
Marketing services		13,049		13,287		36,776		36,343
Total net revenue	$	109,219	$	89,628	$	325,221	$	261,345

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs:
Technology	$	20,728		$	17,034		$	52,736		$	51,050
Marketing services		5,341			5,710			12,143			15,333
Total segment operating income before depreciation, amortization, stock-based compensation expense and unallocated corporate costs		26,069			22,744			64,879			66,383
Depreciation and amortization		(15,033	)		(11,146	)		(45,127	)		(32,654	)
Stock-based compensation expense		(4,661	)		(1,970	)		(11,992	)		(4,782	)
Unallocated corporate costs		(10,685	)		(10,040	)		(32,339	)		(30,703	)
Loss from operations	$	(4,310	)	$	(412	)	$	(24,579	)	$	(1,756	)

Net revenue and long-lived assets by geographic region

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net revenue:
North America	$	105,963	$	86,819	$	315,947	$	253,587
Europe and other		3,256		2,809		9,274		7,758
Total net revenue	$	109,219	$	89,628	$	325,221	$	261,345

	September 30, 2012		December 31, 2011
Assets:
North America	$	562,140	$	596,039
Europe and other		4,758		3,188
Total assets	$	566,898	$	599,227
Long-lived assets:
North America	$	399,858	$	413,461
Europe and other		1,714		1,255
Total long-lived assets	$	401,572	$	414,716

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Legal Proceedings

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies/Legal Proceedings [Abstract]

Legal Proceedings

14. Legal Proceedings

Monster Litigation

On December 16, 2011, Monster Worldwide, Inc. (“Monster”) filed a complaint in the United States District Court for the Southern District of New York against a former Monster employee and current Active executive (the “Active Executive”). The complaint asserts various claims contending that the Active Executive violated the non-solicitation terms in certain of the Active Executive’s agreements with Monster by soliciting and hiring two former technology employees of Monster who are current employees of the Company. On the basis of these claims, Monster seeks monetary damages for the value of restricted stock originally granted by Monster to the Active Executive, attorney’s fees and a permanent injunction against further solicitation and hiring of Monster personnel.

On February 7, 2012, Monster filed an amended complaint to add additional allegations and an alternative request for damages against the Active Executive should it not be able to recover the value of restricted stock granted to the Active Executive.

                On June 7, 2012, Monster filed a second amended complaint to add allegations and claims against (1) the Company; and (2) a second former Monster employee and current Active employee. The claims against this second employee are similar to the claims alleged in the original complaint against the Active Executive and arise from alleged violations of this second employee’s non-solicitation agreement with Monster claiming the second employee solicited for hire a third former employee of Monster that is a current employee of the Company. The Company was added as a defendant to the complaint for allegedly interfering with the non-solicitation agreements by hiring the three former employees of Monster. Additionally, a new claim for breach of fiduciary duty against the Active Executive was also added.

On August 23, 2012, Monster filed a third amended complaint adding punitive damages against (1) the Active Executive; and (2) the Company.

On September 12, 2012, the Company, the Active Executive and the second employee filed a motion requesting summary dismissal of all claims. Monster filed its opposition to this motion on October 4, 2012. The Company, the Active Executive and the second employee filed their reply to Monster’s opposition on October 19, 2012.

The Company believes that Monster’s claims are without merit and will defend the actions vigorously. While the Company believes it has valid defenses to Monster’s claims, due to the inherently unpredictable nature of litigation, the Company cannot make any predictions as to the outcome of this litigation. Because the case is at a pre-trial stage, the Company is unable to estimate a range of loss, if any, at this time.