(11) Equity-Based Compensation

Stock Option Activity

The following is a summary of the Company’s stock option awards activity for the three months ended March 31, 2014:

	Plan Options		Weighted Average Exercise Price
Options outstanding at December 31, 2013	1,861,761		$	26.09
Options granted	42,750		79.52
Options exercised	(125,079	)	17.49
Options cancelled or forfeited	(66,369	)	37.70
Options outstanding at March 31, 2014	1,713,063		$	27.83
Vested and exercisable at March 31, 2014	558,408		$	16.83

The intrinsic value of the total stock options outstanding at March 31, 2014 and at December 31, 2013 was approximately $76,700 and $107,100, respectively. The intrinsic value of the total stock options vested and exercisable at March 31, 2014 and at December 31, 2013 was approximately $31,100 and $38,900, respectively.

The following weighted average assumptions were used in the fair value calculation for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31, 2014		Three Months Ended March 31, 2013
Expected term (in years)	6.3		6.3
Volatility	49	%	49	%
Risk-free interest rate	2.1% - 2.4	%	1.4	%
Dividend yield	0	%	0	%

The Company recognized non-cash stock-based compensation expense of $1,686 and $613, net of estimated forfeitures, in connection with the vesting of stock options during the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, the total unrecognized compensation charge related to the 2012 Plan non-vested options was approximately $15,600, which is expected to be recognized through fiscal year 2018.

Restricted Stock Units and Restricted Stock Awards

The following is a summary of the Company’s restricted stock units (“RSUs”) activity for the three months ended March 31, 2014:

	Plan Options	Weighted Average Fair Value
Non-vested balance at December 31, 2013	10,000	$	47.17
Units granted	338,025	95.30
Units vested	—	—
Units cancelled or forfeited	—	—
Non-vested balance at March 31, 2014	348,025	$	93.92

The Company recognized non-cash stock-based compensation expense of $901 and $0, net of estimated forfeitures, in connection with the vesting of RSUs during the three months ended March 31, 2014 and 2013, respectively.

In connection with the Reorganization, membership interest in the LLC was exchanged for restricted and unrestricted shares of the Company’s stock. The Amended and Restated Restricted Stock Agreement entered into by the Company with an executive governs the terms of the restricted stock inclusive of service vesting terms. As the restricted shares vest, the award’s restrictions will be removed. The Company recognized non-cash equity-based compensation expense of $259 and $259, which is included in general and administrative expense, during the three months ended March 31, 2014 and 2013, respectively, in connection with the normal vesting of restricted stock.

In connections with the WebDAM acquisition, in order to retain the services of certain former WebDAM employees, the Company granted non-vested RSUs that will vest over two years from the date of acquisition. As these equity awards are subject to post-acquisition employment, the Company is accounting for them as compensation expense. A portion of these equity awards are accounted for as liability-classified awards, because the obligations are based on fixed monetary amounts that are known at inception of the obligation, to be settled with a variable number of shares of the Company’s common stock when the equity awards vests. The Company recognized non-cash stock-based compensation expense of $77, in connection with the vesting of these obligations during the three months ended March 31, 2014. There was no non-cash stock-based compensation expense related to these obligations during the three months ended March 31, 2013.

As of March 31, 2014, the total unrecognized non-cash stock-based compensation charge related to the 2012 Plan non-vested restricted stock and RSUs is approximately $35,600, which is expected to be recognized through fiscal year 2017.

Employee Stock Purchase Plan

On October 10, 2012, the Company’s 2012 ESPP became effective. The Company has recognized a non-cash stock-based compensation expense of $214 and $144, net of estimated forfeitures, in connection with the 2012 ESPP for the three months ended March 31, 2014 and 2013. As of March 31, 2014, 94,917 shares have been issued under the 2012 ESPP.

The following table summarizes non-cash equity-based compensation expense included in the Company’s statement of operations for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014		2013
Cost of revenue	$	249	$	55
Sales and marketing	902		203
Product development	949		255
General and administrative	1,037		503
Total	$	3,137	$	1,016