0001358483 2015-03-31 0001358483 2014-12-31 0001358483 2015-01-01 2015-03-31 0001358483 2014-01-01 2014-03-31 0001358483 us-gaap:CommonStockMember 2014-12-31 0001358483 us-gaap:PreferredStockMember 2014-12-31 0001358483 us-gaap:TreasuryStockMember 2014-12-31 0001358483 us-gaap:AdditionalPaidInCapitalMember 2014-12-31 0001358483 us-gaap:RetainedEarningsMember 2014-12-31 0001358483 us-gaap:CommonStockMember 2015-01-01 2015-03-31 0001358483 us-gaap:AdditionalPaidInCapitalMember 2015-01-01 2015-03-31 0001358483 us-gaap:RetainedEarningsMember 2015-01-01 2015-03-31 0001358483 us-gaap:CommonStockMember 2015-03-31 0001358483 us-gaap:PreferredStockMember 2015-03-31 0001358483 us-gaap:TreasuryStockMember 2015-03-31 0001358483 us-gaap:AdditionalPaidInCapitalMember 2015-03-31 0001358483 us-gaap:RetainedEarningsMember 2015-03-31 0001358483 evdy:FormerRevolvingCreditFacilityMember 2014-01-01 2014-03-31 0001358483 evdy:FormerTermLoanMember 2014-01-01 2014-03-31 0001358483 us-gaap:RevolvingCreditFacilityMember 2015-01-01 2015-03-31 0001358483 us-gaap:RevolvingCreditFacilityMember 2014-01-01 2014-03-31 0001358483 evdy:TermLoanFacilityMember 2015-01-01 2015-03-31 0001358483 evdy:TermLoanFacilityMember 2014-01-01 2014-03-31 0001358483 2013-12-31 0001358483 2014-03-31 0001358483 2015-05-08 0001358483 us-gaap:IPOMember 2014-04-01 2014-04-30 0001358483 us-gaap:IPOMember us-gaap:CommonStockMember 2014-04-01 2014-04-30 0001358483 us-gaap:IPOMember 2014-04-30 0001358483 us-gaap:IPOMember us-gaap:CommonStockMember 2014-04-30 0001358483 us-gaap:IPOMember us-gaap:SeriesGPreferredStockMember 2014-04-30 0001358483 us-gaap:MinimumMember 2015-01-01 2015-03-31 0001358483 us-gaap:MaximumMember 2015-01-01 2015-03-31 0001358483 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2015-01-01 2015-03-31 0001358483 evdy:WebsiteAndMobileApplicationsMember 2015-01-01 2015-03-31 0001358483 evdy:CambridgeMember 2015-03-31 0001358483 evdy:CambridgeMember 2015-01-01 2015-03-31 0001358483 evdy:CambridgeMember evdy:ClosingMember 2015-01-01 2015-03-31 0001358483 evdy:CambridgeMember evdy:RemainderMember 2015-01-01 2015-03-31 0001358483 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2015-01-01 2015-03-31 0001358483 evdy:DDMember 2015-03-31 0001358483 evdy:CambridgeMember us-gaap:CustomerRelationshipsMember 2015-03-31 0001358483 evdy:CambridgeMember us-gaap:TradeNamesMember 2015-03-31 0001358483 evdy:CambridgeMember us-gaap:CustomerRelationshipsMember 2015-01-01 2015-03-31 0001358483 evdy:CambridgeMember us-gaap:TradeNamesMember 2015-01-01 2015-03-31 0001358483 us-gaap:CustomerRelationshipsMember 2015-03-31 0001358483 us-gaap:CustomerRelationshipsMember 2015-01-01 2015-03-31 0001358483 us-gaap:CustomerRelationshipsMember 2014-12-31 0001358483 us-gaap:CustomerRelationshipsMember 2014-10-01 2014-12-31 0001358483 us-gaap:TradeNamesMember 2015-03-31 0001358483 us-gaap:TradeNamesMember 2015-01-01 2015-03-31 0001358483 us-gaap:TradeNamesMember 2014-12-31 0001358483 us-gaap:TradeNamesMember 2014-10-01 2014-12-31 0001358483 us-gaap:OtherIntangibleAssetsMember 2015-03-31 0001358483 us-gaap:OtherIntangibleAssetsMember 2015-01-01 2015-03-31 0001358483 us-gaap:OtherIntangibleAssetsMember 2014-12-31 0001358483 us-gaap:OtherIntangibleAssetsMember 2014-10-01 2014-12-31 0001358483 us-gaap:RevolvingCreditFacilityMember 2014-03-31 0001358483 evdy:TermLoanFacilityMember 2014-03-31 0001358483 evdy:DDMember us-gaap:RevolvingCreditFacilityMember 2014-11-30 0001358483 evdy:DDMember evdy:TermLoanFacilityMember 2014-11-01 0001358483 evdy:DDMember evdy:TermLoanFacilityMember 2014-11-30 0001358483 evdy:TermLoanFacilityMember 2015-03-01 0001358483 evdy:TermLoanFacilityMember 2015-03-31 0001358483 us-gaap:RevolvingCreditFacilityMember 2015-03-31 0001358483 evdy:CreditFacilityMember us-gaap:MinimumMember 2015-01-01 2015-03-31 0001358483 evdy:CreditFacilityMember us-gaap:MaximumMember 2015-01-01 2015-03-31 0001358483 evdy:CreditFacilityMember 2015-01-01 2015-03-31 0001358483 2014-01-01 2014-12-31 0001358483 2014-04-30 0001358483 evdy:Plan2014Member 2015-03-31 0001358483 evdy:Plan2014Member 2015-01-01 2015-03-31 0001358483 evdy:PerformanceRSUMember 2015-01-01 2015-03-31 0001358483 us-gaap:RestrictedStockUnitsRSUMember 2015-01-01 2015-03-31 0001358483 us-gaap:RestrictedStockUnitsRSUMember 2015-03-31 0001358483 us-gaap:EmployeeStockMember 2014-03-27 0001358483 us-gaap:EmployeeStockMember 2015-01-01 2015-03-31 0001358483 us-gaap:EmployeeStockMember 2015-03-31 0001358483 evdy:StockOptionActivityMember 2014-12-31 0001358483 evdy:StockOptionActivityMember 2014-12-31 2014-12-31 0001358483 evdy:StockOptionActivityMember 2015-01-01 2015-03-31 0001358483 evdy:StockOptionActivityMember 2015-03-31 0001358483 evdy:CommonStockWarrantMember 2015-01-01 2015-03-31 0001358483 evdy:CommonStockWarrantMember 2014-01-01 2014-03-31 0001358483 evdy:PreferredStockWarrantMember 2015-01-01 2015-03-31 0001358483 evdy:PreferredStockWarrantMember 2014-01-01 2014-03-31 0001358483 us-gaap:RedeemableConvertiblePreferredStockMember 2015-01-01 2015-03-31 0001358483 us-gaap:RedeemableConvertiblePreferredStockMember 2014-01-01 2014-03-31 0001358483 evdy:OptionsMember 2015-01-01 2015-03-31 0001358483 evdy:OptionsMember 2014-01-01 2014-03-31 0001358483 us-gaap:RestrictedStockUnitsRSUMember 2015-01-01 2015-03-31 0001358483 us-gaap:EmployeeStockMember 2015-01-01 2015-03-31 0001358483 us-gaap:DeferredCompensationShareBasedPaymentsMember 2014-12-31 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure The calculation of the weighted-average remaining useful life is based on weighting the net book value of each asset in its group, and applying the weight to its respective remaining amortization period. RSUs granted during the three months ended March 31, 2015 includes the grant of 40,000 units of performance-based RSUs that are dependent upon the Company meeting certain performance criteria. Upon closing of the IPO on April 2, 2014, all of the Company's outstanding redeemable convertible preferred stock automatically converted into shares of common stock. In addition, the outstanding warrants to purchase redeemable convertible preferred stock automatically converted into warrants to purchase common stock, or were automatically exercised upon closing of the IPO.

48530000

50729000

57611000

68007000

656000

9377000

5529000

116174000

124921000

25847000

25502000

143165000

127115000

43777000

30716000

5811000

5237000

334774000

313491000

25060000

31722000

8821000

6740000

2625000

3000000

8977000

965000

45483000

42427000

110125000

87000000

6912000

6673000

4016000

4105000

315000

314000

55000

295136000

292117000

-127158000

-119090000

168238000

173286000

334774000

313491000

523000

637000

0.01

10000000

0.01

31562028

31489196

31562028

31489196

90000000

36338000

32692000

4836000

4813000

41174000

37505000

14076000

11421000

12725000

10220000

12602000 10762000

9804000

6595000

49207000

38998000

-8033000

-1493000

-953000

-1863000

-4114000

-8986000

-7470000

-918000

289000

-8068000

-7759000

-0.26

-1.44

31525559

5403846

31489196

314000

-55000

292117000

-119090000

72832

1000

528000

529000

2491000

-8068000

31562028

315000

-55000

295136000

-127158000

4662000

3558000

215000

2491000

1069000

107000 4169000

241000

14802000

10935000

-3641000

-2645000

-9322000

-8610000

1884000

568000

32000

17000

307000

3205000

2080000

-3005000

-3476000

152000

-24747000

-40000

-5000

-27712000

-3319000

460000

1172000

-30000000

-41333000

25000000

32300000

-10000000

8500000

40000000

-750000

-180000

-145000

722000

2227000

22308000

-233000

-2199000

-1472000

16242000

14770000

1253000

2262000

10000

16000

919000

8000000 111000 1131000

193000

Everyday Health, Inc. 10-Q --12-31 31674117 false 0001358483 Yes No Non-accelerated Filer No 2015 Q1 2015-03-31

1. Business Everyday Health, Inc. (the “Company”) operates a portfolio of health and wellness websites and mobile applications that provides consumers, healthcare professionals, advertisers and partners with content and advertising-based services. The Company was incorporated in the State of Delaware in January 2002 as Agora Media Inc., and changed its name to Waterfront Media Inc. in January 2004. In January 2010, the Company changed its name to Everyday Health, Inc. to better align its corporate identity with the Everyday Health brand.

2. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. The results of operations for companies acquired are included in the consolidated financial statements from the effective date of the acquisition. All significant intercompany accounts and transactions have been eliminated in consolidation. Interim Financial Statements The accompanying interim unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 and, in the opinion of management, include all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position, results of operations and cash flows for the interim periods ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other future periods, due to seasonality and other business factors. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2014, which are included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2015. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience, current business factors and other available information. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition and deferred revenue, allowance for doubtful accounts, internal software development costs and website development costs, valuation of long-lived assets, goodwill and other intangible assets, income taxes and stock-based compensation. Reclassifications Certain reclassifications have been made to the prior period financial statements to conform to the March 31, 2015 presentation. Initial Public Offering On April 2, 2014, the Company closed its initial public offering of common stock (“IPO”). The IPO, including the additional shares issued and sold on April 30, 2014 pursuant to the underwriters’ exercise of their over-allotment option, resulted in net proceeds of $70,622, after deducting underwriting discounts and commissions and offering costs borne by the Company totaling $8,848. As a result of the IPO, the Company issued and sold 5,676,414 shares of common stock at a public offering price of $14.00 per share, all of the Company’s redeemable convertible preferred stock outstanding automatically converted into an aggregate of 18,457,235 shares of common stock, including 577,055 additional shares of common stock related to the Series G redeemable convertible preferred stock ratchet provision. Revenue Recognition and Deferred Revenue The Company generates its revenue primarily through advertising and sponsorships, and premium services, including subscriptions and licensing fees. Advertising revenue is recognized in the period in which the advertisement is delivered. Revenue from sponsorships is recognized over the period the Company substantially satisfies its contractual obligations as required under the respective sponsorship agreements. When contractual arrangements contain multiple elements, revenue is allocated to each element based on its relative fair value determined using prices charged when elements are sold separately. In instances where individual deliverables are not sold separately, or when third-party evidence is not available, fair value is determined based on management’s best estimate of selling price. Subscriptions are generally paid in advance on a monthly, quarterly or annual basis. Subscription revenue, after deducting refunds and charge-backs, is recognized on a straight-line basis ratably over the subscription periods. Licensing revenue is generally recognized over the life of the contract. Deferred revenue relates to: (i) subscription fees for which amounts have been collected but for which revenue has not been recognized, and (ii) advertising and sponsorship fees and licensing fees billed in advance of when the revenue is to be earned. Cost of Revenues Cost of revenues consists principally of the expenses associated with aggregating the total audience across the Company’s portfolio of websites, including (i) royalty expenses for licensing content for certain websites within the portfolio and for the portion of advertising revenue the Company pays to the owners of certain other websites within the portfolio, and (ii) media costs associated with audience aggregation activities. Cost of revenues also includes credit card fees and service charges associated with subscription fees for the Company’s premium services. Media costs consist primarily of fees paid to online publishers, internet search companies and other media channels for search engine and database marketing, and display and television advertising. These media activities are attributable to revenue-generating and audience aggregation events, designed to increase the audience to the websites the Company operates, increase the number of subscribers to premium services and grow the Company’s registered user base. Other Expense There were no charges reflected as other expense in the three months ended March 31, 2015. In connection with the refinancing of its credit facilities in March 2014, the Company wrote-off unamortized deferred financing costs totaling $2,845 and incurred prepayment fees of $1,016, which, together with the mark-to-market adjustment on certain preferred stock warrants of $253, is reflected as other expense in the accompanying consolidated statements of operations for the three months ended March 31, 2014. Comprehensive Income The Company has no items of other comprehensive income, and accordingly net loss is equal to comprehensive loss for all periods presented. Fair Value of Financial Instruments Due to their short-term maturities, the carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value. Cash equivalents principally consist of the Company’s investment in highly liquid money market funds. The fair value of these investment funds is based on quoted market prices, which are Level 1 inputs, pursuant to the fair value accounting standard, which establishes a framework for measuring fair value and requires disclosures about fair value measurements by establishing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of the Company’s debt approximates the recorded amounts as the interest rates on the credit facilities are based on market interest rates. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to five years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the improvement. The Company incurs costs to develop software for internal use. The Company expenses all costs that relate to the planning and post-implementation phases of development as product development expense. Costs incurred in the application development phase, consisting principally of payroll and related benefits, are capitalized. Upon completion, the capitalized costs are amortized using the straight-line method over their estimated useful lives, which is generally three years. The Company also incurs costs to develop its websites and mobile applications. The Company expenses all costs that relate to the planning and post-implementation phases of development as product development expense. Costs incurred in the application development phase, consisting principally of third-party consultants and related charges, and the costs of content determined to provide a future economic benefit, are capitalized. Upon completion, the capitalized costs are amortized using the straight-line method over their estimated useful lives, which is generally three years. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. There were no indicators of impairment of the Company’s property and equipment during the three months ended March 31, 2015 and 2014. Segment Information The Company and its subsidiaries are organized in a single operating segment, providing online health solutions, and the Company also has one reportable segment. Substantially all of the Company’s revenues are derived from U.S. sources. Recent Accounting Standards In April 2014, the FASB issued amended guidance for reporting discontinued operations. Under the new guidance, only disposals that represent a strategic shift having a material impact on an entity’s operations and financial results shall be reported as discontinued operations, with expanded disclosures. This amendment will be effective for the first annual reporting period beginning after December 15, 2015. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements. In May 2014, the FASB issued amended guidance for revenue recognition. This amendment provides a comprehensive new revenue recognition model. The core principle of the guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. As currently issued, this amendment is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the effect that the new standard will have on the consolidated financial statements and related disclosures. In June 2014, the FASB issued updated guidance on stock compensation accounting requiring that a performance target that affects vesting and could be achieved after the requisite service period should be treated as a performance condition. Current GAAP does not contain explicit guidance on how to account for such share-based payments. This updated guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements. In April 2015, the FASB issued updated guidance on the presentation of debt issuance costs in financial statements. The new guidance requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This guidance will be effective for the Company beginning in the first quarter of 2016 on a retrospective basis for all periods presented, with early adoption optional. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements.

Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. The results of operations for companies acquired are included in the consolidated financial statements from the effective date of the acquisition. All significant intercompany accounts and transactions have been eliminated in consolidation.

Interim Financial Statements The accompanying interim unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 and, in the opinion of management, include all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position, results of operations and cash flows for the interim periods ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other future periods, due to seasonality and other business factors. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2014, which are included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2015.

Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience, current business factors and other available information. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition and deferred revenue, allowance for doubtful accounts, internal software development costs and website development costs, valuation of long-lived assets, goodwill and other intangible assets, income taxes and stock-based compensation.

Reclassifications Certain reclassifications have been made to the prior period financial statements to conform to the March 31, 2015 presentation.

Initial Public OfferingOn April 2, 2014, the Company closed its initial public offering of common stock (“IPO”). The IPO, including the additional shares issued and sold on April 30, 2014 pursuant to the underwriters’ exercise of their over-allotment option, resulted in net proceeds of $70,622, after deducting underwriting discounts and commissions and offering costs borne by the Company totaling $8,848. As a result of the IPO, the Company issued and sold 5,676,414 shares of common stock at a public offering price of $14.00 per share, all of the Company’s redeemable convertible preferred stock outstanding automatically converted into an aggregate of 18,457,235 shares of common stock, including 577,055 additional shares of common stock related to the Series G redeemable convertible preferred stock ratchet provision.

70622000

8848000

5676414

14.00

18457235

577055

Revenue Recognition and Deferred Revenue The Company generates its revenue primarily through advertising and sponsorships, and premium services, including subscriptions and licensing fees. Advertising revenue is recognized in the period in which the advertisement is delivered. Revenue from sponsorships is recognized over the period the Company substantially satisfies its contractual obligations as required under the respective sponsorship agreements. When contractual arrangements contain multiple elements, revenue is allocated to each element based on its relative fair value determined using prices charged when elements are sold separately. In instances where individual deliverables are not sold separately, or when third-party evidence is not available, fair value is determined based on management’s best estimate of selling price. Subscriptions are generally paid in advance on a monthly, quarterly or annual basis. Subscription revenue, after deducting refunds and charge-backs, is recognized on a straight-line basis ratably over the subscription periods. Licensing revenue is generally recognized over the life of the contract. Deferred revenue relates to: (i) subscription fees for which amounts have been collected but for which revenue has not been recognized, and (ii) advertising and sponsorship fees and licensing fees billed in advance of when the revenue is to be earned.

Cost of Revenues Cost of revenues consists principally of the expenses associated with aggregating the total audience across the Company’s portfolio of websites, including (i) royalty expenses for licensing content for certain websites within the portfolio and for the portion of advertising revenue the Company pays to the owners of certain other websites within the portfolio, and (ii) media costs associated with audience aggregation activities. Cost of revenues also includes credit card fees and service charges associated with subscription fees for the Company’s premium services. Media costs consist primarily of fees paid to online publishers, internet search companies and other media channels for search engine and database marketing, and display and television advertising. These media activities are attributable to revenue-generating and audience aggregation events, designed to increase the audience to the websites the Company operates, increase the number of subscribers to premium services and grow the Company’s registered user base.

Other Expense There were no charges reflected as other expense in the three months ended March 31, 2015. In connection with the refinancing of its credit facilities in March 2014, the Company wrote-off unamortized deferred financing costs totaling $2,845 and incurred prepayment fees of $1,016, which, together with the mark-to-market adjustment on certain preferred stock warrants of $253, is reflected as other expense in the accompanying consolidated statements of operations for the three months ended March 31, 2014.

2845000

1016000

253000

Comprehensive Income The Company has no items of other comprehensive income, and accordingly net loss is equal to comprehensive loss for all periods presented.

Fair Value of Financial Instruments Due to their short-term maturities, the carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value. Cash equivalents principally consist of the Company’s investment in highly liquid money market funds. The fair value of these investment funds is based on quoted market prices, which are Level 1 inputs, pursuant to the fair value accounting standard, which establishes a framework for measuring fair value and requires disclosures about fair value measurements by establishing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of the Company’s debt approximates the recorded amounts as the interest rates on the credit facilities are based on market interest rates.

Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to five years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the improvement. The Company incurs costs to develop software for internal use. The Company expenses all costs that relate to the planning and post-implementation phases of development as product development expense. Costs incurred in the application development phase, consisting principally of payroll and related benefits, are capitalized. Upon completion, the capitalized costs are amortized using the straight-line method over their estimated useful lives, which is generally three years. The Company also incurs costs to develop its websites and mobile applications. The Company expenses all costs that relate to the planning and post-implementation phases of development as product development expense. Costs incurred in the application development phase, consisting principally of third-party consultants and related charges, and the costs of content determined to provide a future economic benefit, are capitalized. Upon completion, the capitalized costs are amortized using the straight-line method over their estimated useful lives, which is generally three years. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. There were no indicators of impairment of the Company’s property and equipment during the three months ended March 31, 2015 and 2014.

three

five

three

Segment Information The Company and its subsidiaries are organized in a single operating segment, providing online health solutions, and the Company also has one reportable segment. Substantially all of the Company’s revenues are derived from U.S. sources

Recent Accounting Standards In April 2014, the FASB issued amended guidance for reporting discontinued operations. Under the new guidance, only disposals that represent a strategic shift having a material impact on an entity’s operations and financial results shall be reported as discontinued operations, with expanded disclosures. This amendment will be effective for the first annual reporting period beginning after December 15, 2015. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements. In May 2014, the FASB issued amended guidance for revenue recognition. This amendment provides a comprehensive new revenue recognition model. The core principle of the guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. As currently issued, this amendment is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the effect that the new standard will have on the consolidated financial statements and related disclosures. In June 2014, the FASB issued updated guidance on stock compensation accounting requiring that a performance target that affects vesting and could be achieved after the requisite service period should be treated as a performance condition. Current GAAP does not contain explicit guidance on how to account for such share-based payments. This updated guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements. In April 2015, the FASB issued updated guidance on the presentation of debt issuance costs in financial statements. The new guidance requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This guidance will be effective for the Company beginning in the first quarter of 2016 on a retrospective basis for all periods presented, with early adoption optional. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements.

3. Acquisitions In March 2015, the Company acquired 100% of the limited liability company membership interests of Cambridge BioMarketing Group, LLC (“Cambridge”), a provider of strategic launch and marketing solutions for orphan and rare disease products, for a total purchase price of $32,273, of which $24,273 was paid in cash at closing. The remaining $8,000 obligation is comprised of convertible notes, which will either convert into shares of the Company’s common stock or be repaid in cash by May 15, 2015, at the discretion of the Company. The total purchase price is subject to any working capital adjustments that may arise. As of March 31, 2015, the $8,000 unpaid purchase price obligation is included in other current liabilities in the accompanying consolidated balance sheet. In addition to the purchase price described above, the former members of Cambridge are eligible to receive up to an additional $5,000 in cash based on Cambridge’s achievement of certain revenue and Adjusted EBITDA targets for 2015. This earn-out payment is contingent upon the continued employment with the Company of certain former members of Cambridge at the time the earn-out payment is due to be paid in the first quarter of 2016. The Company records any such earn-out as compensation expense for the applicable period. The Company expects that the acquisition will broaden its strategic marketing and communications solutions to pharmaceutical brands targeting orphan and rare disease segments in the market. The acquisition was accounted for as a business combination and, accordingly, the purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed on a preliminary basis based on the respective fair values. The results of operations of Cambridge have been included in the consolidated financial statements of the Company from March 20, 2015, the closing date of the acquisition. For the three months ended March 31, 2015, acquisition-related costs of $169 are included in general and administrative expenses in the accompanying consolidated statement of operations. The following table summarizes the preliminary allocation of the assets acquired and liabilities assumed based on their fair values on the acquisition date. The fair values presented are based on a preliminary valuation and are subject to adjustment during a measurement period of up to one year from the acquisition date. The measurement period provides the Company with the ability to adjust the fair values of acquired assets for new information that is obtained about circumstances that existed as of the acquisition date. <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 85%; text-align: left; text-indent: -10pt; padding-left: 10pt; border-top: Black 1px solid"> Accounts receivable </td> <td style="width: 3%; border-top: Black 1px solid">   </td> <td style="width: 1%; text-align: left; border-top: Black 1px solid"> $ </td> <td style="width: 10%; text-align: right; border-top: Black 1px solid"> 4,406 </td> <td style="width: 1%; text-align: left; border-top: Black 1px solid">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Other current assets </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 137 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Property and equipment </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 783 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Goodwill </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 15,576 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Intangible assets </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 14,280 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Accounts payable and accrued expenses </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> (2,659 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Deferred revenue </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> (197 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Other current liabilities </td> <td>   </td> <td style="text-align: left; border-bottom: Black 1px solid">   </td> <td style="text-align: right; border-bottom: Black 1px solid"> (53 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid"> Total consideration paid </td> <td style="border-bottom: Black 1px solid">   </td> <td style="text-align: left; border-bottom: Black 1px solid"> $ </td> <td style="text-align: right; border-bottom: Black 1px solid"> 32,273 </td> <td style="text-align: left; border-bottom: Black 1px solid">   </td> </tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> </table>

1.00

Cambridge BioMarketing Group, LLC

32273000

24273000 8000000 5000000

169000

The following table summarizes the preliminary allocation of the assets acquired and liabilities assumed based on their fair values on the acquisition date. The fair values presented are based on a preliminary valuation and are subject to adjustment during a measurement period of up to one year from the acquisition date. The measurement period provides the Company with the ability to adjust the fair values of acquired assets for new information that is obtained about circumstances that existed as of the acquisition date. <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 85%; text-align: left; text-indent: -10pt; padding-left: 10pt; border-top: Black 1px solid"> Accounts receivable </td> <td style="width: 3%; border-top: Black 1px solid">   </td> <td style="width: 1%; text-align: left; border-top: Black 1px solid"> $ </td> <td style="width: 10%; text-align: right; border-top: Black 1px solid"> 4,406 </td> <td style="width: 1%; text-align: left; border-top: Black 1px solid">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Other current assets </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 137 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Property and equipment </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 783 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Goodwill </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 15,576 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Intangible assets </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 14,280 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Accounts payable and accrued expenses </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> (2,659 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Deferred revenue </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> (197 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Other current liabilities </td> <td>   </td> <td style="text-align: left; border-bottom: Black 1px solid">   </td> <td style="text-align: right; border-bottom: Black 1px solid"> (53 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid"> Total consideration paid </td> <td style="border-bottom: Black 1px solid">   </td> <td style="text-align: left; border-bottom: Black 1px solid"> $ </td> <td style="text-align: right; border-bottom: Black 1px solid"> 32,273 </td> <td style="text-align: left; border-bottom: Black 1px solid">   </td> </tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding-left: 10pt">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> </table>

4406000

137000

783000

15576000

14280000

-2659000

-197000

-53000

4. Goodwill and Other Intangible Assets During the three months ended March 31, 2015, goodwill of $15,576 and definite-lived intangible assets of $14,280 were recorded in connection with the Cambridge acquisition (see Note 3). Additionally, there was $474 of goodwill recorded during the three months ended March 31, 2015 for a working capital purchase price adjustment related to a November 2014 acquisition. The preliminary value of the intangible assets acquired in connection with the Cambridge acquisition consist of customer relationships of $8,810 and trade names of $5,470, each of which has an estimated useful life of 10 years. The carrying value of the Company’s goodwill was $143,165 as of March 31, 2015. Goodwill is tested for impairment on an annual basis as of October 1, and whenever events or circumstances indicate that the carrying value of the asset may not be recoverable. Application of the impairment test requires judgment and results in impairment being recognized if the carrying value of the asset exceeds its fair value. No indicators of impairment were noted during or since the Company’s last evaluation of goodwill at October 1, 2014. Similarly, the Company’s definite-lived intangible assets with a net carrying value of $43,777 at March 31, 2015, consisting principally of trade names and customer relationships, is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. There were no indicators of impairment of the Company’s definite-lived intangible assets during the three months ended March 31, 2015 and 2014. Definite-lived intangible assets consist of the following: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="14" style="border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> March 31, 2015 </td> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="14" style="border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> December 31, 2014 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Gross carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Accumulated amortization </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Net carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Weighted- average remaining useful life (1) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Gross carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Accumulated amortization </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Net carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Weighted- average remaining useful life (1) </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 23%"> Customer relationships </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 36,110 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt"> $ </td> <td style="width: 8%; padding-right: 0.8pt; text-align: right"> (11,775) </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 6%; padding-right: 0.8pt; text-align: right"> 24,335 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 9.5 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 27,300 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt"> $ </td> <td style="width: 8%; padding-right: 0.8pt; text-align: right"> (11,247) </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 16,053 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 9.5 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Trade names </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 24,085 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> (4,922) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 19,163 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 7.3 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 18,615 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> (4,370) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 14,245 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 6.5 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Other intangibles </td> <td style="padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 3,900 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (3,621) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 279 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 0.5 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 3,900 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (3,482) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 418 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 0.7 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: black 1px solid"> Total </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 64,095 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">  $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (20,318) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 43,777 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 49,815 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (19,099) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 30,716 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> </tr> </table> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 7%; text-align: right; vertical-align: top"> (1) </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 91%; padding-right: 0.8pt"> The calculation of the weighted-average remaining useful life is based on weighting the net book value of each asset in its group, and applying the weight to its respective remaining amortization period. </td> </tr> </table> Amortization expense relating to the definite-lived intangible assets totaled $1,219 and $545 for the three months ended March 31, 2015 and 2014, respectively, and is included in general and administrative expense in the accompanying consolidated statements of operations. Future amortization expense of the intangible assets is estimated to be as follows: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1px solid; padding-right: 0.8pt; border-top: Black 0.5pt solid"> Year ending December 31: </td> <td style="border-bottom: Black 1px solid; padding-right: 0.8pt; border-top: Black 0.5pt solid">   </td> <td colspan="2" style="border-bottom: Black 1px solid; padding-right: 1.8pt; text-align: right; border-top: Black 0.5pt solid">   </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 85%"> 2015 (April 1st to December 31st) </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 10%; padding-right: 0.8pt; text-align: right"> 4,527 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> 2016 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,373 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> 2017 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,365 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> 2018 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,176 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> 2019 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,176 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Thereafter </td> <td style="padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 18,160 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="border-bottom: black 1px solid"> Total </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 43,777 </td> <td style="padding-right: 0.8pt">   </td> </tr> </table>

14280000

474000

8810000

5470000

P10Y

43777000

1219000

545000

Definite-lived intangible assets consist of the following: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="14" style="border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> March 31, 2015 </td> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-top: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="14" style="border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> December 31, 2014 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Gross carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Accumulated amortization </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Net carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Weighted- average remaining useful life (1) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Gross carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Accumulated amortization </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Net carrying amount </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td colspan="2" style="border-bottom: black 1px solid; text-align: center"> Weighted- average remaining useful life (1) </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 23%"> Customer relationships </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 36,110 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt"> $ </td> <td style="width: 8%; padding-right: 0.8pt; text-align: right"> (11,775) </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 6%; padding-right: 0.8pt; text-align: right"> 24,335 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 9.5 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 27,300 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt"> $ </td> <td style="width: 8%; padding-right: 0.8pt; text-align: right"> (11,247) </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 16,053 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 5%; padding-right: 0.8pt; text-align: right"> 9.5 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Trade names </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 24,085 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> (4,922) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 19,163 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 7.3 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 18,615 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> (4,370) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 14,245 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 6.5 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Other intangibles </td> <td style="padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 3,900 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (3,621) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 279 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 0.5 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 3,900 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (3,482) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 418 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 0.7 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: black 1px solid"> Total </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 64,095 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">  $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (20,318) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 43,777 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 49,815 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> (19,099) </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 30,716 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> </tr> </table><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 7%; text-align: right; vertical-align: top"> (1) </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 91%; padding-right: 0.8pt"> The calculation of the weighted-average remaining useful life is based on weighting the net book value of each asset in its group, and applying the weight to its respective remaining amortization period. </td> </tr> </table>

36110000

-11775000

24335000

P9Y6M

27300000

-11247000

16053000

P9Y6M

24085000

-4922000

19163000

P7Y109D

18615000

-4370000

14245000

P6Y6M

3900000

-3621000

279000

P6M

3900000

-3482000

418000

P255D

64095000

-20318000

49815000

-19099000

30716000

Future amortization expense of the intangible assets is estimated to be as follows: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1px solid; padding-right: 0.8pt; border-top: Black 0.5pt solid"> Year ending December 31: </td> <td style="border-bottom: Black 1px solid; padding-right: 0.8pt; border-top: Black 0.5pt solid">   </td> <td colspan="2" style="border-bottom: Black 1px solid; padding-right: 1.8pt; text-align: right; border-top: Black 0.5pt solid">   </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 85%"> 2015 (April 1st to December 31st) </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt"> $ </td> <td style="width: 10%; padding-right: 0.8pt; text-align: right"> 4,527 </td> <td style="width: 1%; padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> 2016 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,373 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> 2017 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,365 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> 2018 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,176 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> 2019 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 5,176 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Thereafter </td> <td style="padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 18,160 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="border-bottom: black 1px solid"> Total </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 43,777 </td> <td style="padding-right: 0.8pt">   </td> </tr> </table>

4527000

5373000

5365000

5176000

18160000

5. Long-Term Debt The Company entered into a credit facility agreement with a syndicated bank group in March 2014, which replaced its then-existing credit facility. The new credit facility consisted of a revolver (“Revolver”) with a maximum borrowing limit of $35,000 and a term loan (“Term Loan”) of $40,000. In November 2014, in connection with the acquisition of DoctorDirectory.com, Inc., the credit facility was amended and restated to, among other things, (i) increase the maximum borrowing limit of the Revolver from $35,000 to $55,000; (ii) increase the Term Loan from $39,000 outstanding as of such date to $60,000; (iii) extend the maturity date of the Term Loan and the due date of principal on the Revolver from March 2019 to November 2019; and (iv) effect certain modifications to the covenants and terms set forth in the credit facility agreement. In March 2015, the amended and restated credit facility was amended twice (as amended, the “Credit Facility”) to, among other things, (i) consent to the acquisition of Cambridge, (ii) increase the Term Loan from $59,250 outstanding as of such date to $67,750; (iii) increase the maximum borrowing limit of the Revolver from $55,000 to $82,250; and (iv) effect certain modifications to the covenants and terms set forth in the Credit Facility agreement. All other materials terms of the Credit Facility, including the applicable interest rates and maturity dates, remained unchanged by the March 2015 amendments. The repayment terms of the Revolver provide for quarterly interest payments, with the principal being due in full in November 2019. The repayment terms of the Term Loan provide for quarterly interest and principal payments, with a maturity date of November 2019. The interest rate on the Credit Facility is equal to the London Inter-Bank Offered Rate, or LIBOR, plus a variable rate ranging from 2.75% to 4.0% depending on the Company’s consolidated leverage ratio, as defined in the Credit Facility agreement, and there is a 0.50% commitment fee on the unused portion of the Revolver. As of March 31, 2015, the interest rate on the Credit Facility was 3.52%. As of March 31, 2015, there was $67,750 outstanding on the Term Loan and $45,000 outstanding on the Revolver, with $37,250 available to be drawn on the Revolver. The Credit Facility contains certain financial and operational covenants, including requirements to maintain a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio, each as defined in the Credit Facility agreement, as well as restrictions on certain types of dispositions, mergers and acquisitions, indebtedness, investments, liens and capital expenditures, issuance of capital stock and the Company’s ability to pay dividends. The Credit Facility is secured by a first priority security interest in substantially all of the Company’s existing and future assets. The Company was in compliance with the financial and operational covenants of the Credit Facility as of March 31, 2015. In connection with the March 2014 refinancing and the November 2014 amendment and restatement, the Company incurred financing costs totaling $2,899 and, in connection with the March 2015 amendments, the Company incurred financing costs of $722, each of which have been deferred and amortized using the effective interest rate method through the final maturities of the Credit Facility. Deferred financing costs are recorded in other assets in the accompanying consolidated balance sheets. Amortization expense relating to deferred financing costs is included in interest expense in the accompanying consolidated statements of operations.

35000000

40000000

55000000

39000000 60000000 59250000 67750000

82250000

The interest rate on the Credit Facility is equal to the London Inter-Bank Offered Rate, or LIBOR, plus a variable rate ranging from 2.75% to 4.0% depending on the Company’s consolidated leverage ratio, as defined in the Credit Facility agreement, and there is a 0.50% commitment fee on the unused portion of the Revolver. 0.0275 0.040

0.0050

0.0352 45000000

37250000

2899000

6. Common Stock and Preferred Stock As of March 31, 2015 and December 31, 2014, there were no shares of preferred stock issued and outstanding. The redeemable convertible preferred stock, Series A-G (collectively, the “Preferred Stock”), which was outstanding at the time of the Company’s IPO, fully converted to common stock in connection with the IPO. In March 2014, the Company’s Board of Directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation effecting a 1-for-1.5 reverse stock split of the Company’s issued and outstanding shares of common stock. The par value of the common stock was not adjusted as a result of the reverse stock split. All issued and outstanding common stock and per share amounts contained in the Company’s consolidated financial statements and related notes thereto have been retroactively adjusted to reflect this reverse stock split for all periods presented. The reverse stock split was effected on March 14, 2014. In April 2014, in connection with the closing of the Company’s IPO, the Company filed an amended and restated certificate of incorporation with the Secretary of State of the State of Delaware that amended and restated in its entirety the Company’s certificate of incorporation to, among other things, increase the total number of shares of the Company’s common stock that the Company is authorized to issue to 90,000,000, eliminate all references to the various series of preferred stock that were previously authorized (including certain protective measures held by the various series of preferred stock), and to authorize up to 10,000,000 shares of undesignated preferred stock that may be issued from time to time with terms to be set by the Company’s Board of Directors, which rights could be senior to those of the Company’s common stock.

In March 2014, the Company’s Board of Directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation effecting a 1-for-1.5 reverse stock split of the Company’s issued and outstanding shares of common stock. The par value of the common stock was not adjusted as a result of the reverse stock split. All issued and outstanding common stock and per share amounts contained in the Company’s consolidated financial statements and related notes thereto have been retroactively adjusted to reflect this reverse stock split for all periods presented. The reverse stock split was effected on March 14, 2014.

90000000

10000000

7. Stock-Based Compensation The Company has granted non-statutory stock options and restricted stock unit awards to employees, directors and consultants of the Company pursuant to its 2003 Stock Option Plan, as amended (the “2003 Plan”), or 2014 Equity Incentive Plan (the “2014 Plan”), which became effective immediately upon the signing of the underwriting agreement related to the IPO on March 27, 2014. Upon the effectiveness of the 2014 Plan, no additional awards have been or will be granted under the 2003 Plan. The 2014 Plan provides for the grant of stock options, restricted stock units, and other awards based on the Company’s common stock. As of March 31, 2015, 339,829 shares have been reserved for issuance under the 2014 Plan. The number of shares of common stock reserved for issuance under the 2014 Plan is subject to an automatic increase on January 1 of each year through January 1, 2024, by the lesser of (a) 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year and (b) a number of shares determined by the Board of Directors. Stock Options The following table summarizes stock option activity for the three months ended March 31, 2015: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Number of options </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Weighted- average exercise price </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Weighted- average remaining contractual life (years) </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Aggregate intrinsic value </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font-family: Times New Roman, Times, Serif"> <td style="width: 43%; font-family: Times New Roman, Times, Serif"> Outstanding at December 31, 2014 </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 5,893,698 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif"> $ </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 9.94 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 6.48 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">  $ </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 29,249 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: White; font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Granted </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 726,100 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 12.22 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Exercised </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> (72,832 </td> <td style="font-family: Times New Roman, Times, Serif"> ) </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 7.27 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: White; font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Cancelled </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> (7,415 </td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1px"> ) </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 12.84 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Outstanding at March 31, 2015 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 6,539,551 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif"> $ </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 10.23 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 6.65 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif"> $ </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 20,931 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: White; font-family: Times New Roman, Times, Serif"> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif"> Exercisable at March 31, 2015 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 3,896,925 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif"> $ </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 8.45 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 5.01 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif"> $ </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 17,987 </td> <td style="font-family: Times New Roman, Times, Serif; border-bottom: black 1px solid;">   </td> </tr> </table> Proceeds from the exercise of options and the total intrinsic value of the options exercised were $460 and $484, respectively, for the three months ended March 31, 2015, and $1,172 and $910, respectively, for the three months ended March 31, 2014. The weighted-average fair value per share at date of grant for options granted was $5.49 and $7.56 during the three months ended March 31, 2015 and 2014, respectively. The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model and recognized in expense over the vesting period of the options using the graded attribution method. The following table presents the weighted-average assumptions used to estimate the fair value of options granted in the three months ended March 31, 2015 and 2014: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; width: 73%; border-top: black 1px solid">   </td> <td style="vertical-align: bottom; width: 3%; border-top: black 1px solid; padding-right: 0.8pt">   </td> <td style="vertical-align: bottom; width: 1%; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="vertical-align: bottom; width: 9%; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> 2015 </td> <td style="vertical-align: bottom; width: 1%; border-top: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; width: 2%; border-top: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; width: 1%; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; width: 9%; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> 2014 </td> <td style="vertical-align: bottom; width: 1%; padding-right: 0.8pt; border-top: black 1px solid; border-bottom: black 1px solid;">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Volatility </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 44.29 </td> <td style="padding-right: 0.8pt"> % </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 49.77 </td> <td style="padding-right: 0.8pt"> % </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Expected life (years) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 6.25 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 6.25 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Risk-free interest rate </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 1.72 </td> <td style="padding-right: 0.8pt"> % </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 1.92 </td> <td style="padding-right: 0.8pt"> % </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: black 1px solid"> Dividend yield </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> — </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> — </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> </tr> </table> The expected stock price volatilities are estimated based on historical realized volatilities of comparable publicly traded company stock prices over a period of time commensurate with the expected term of the option award. The expected life represents the period of time for which the options granted are expected to be outstanding. The Company used the simplified method for determining expected life for options qualifying for treatment due to the limited history the Company currently has with option exercise activity. The risk-free interest rate is based on the U.S. Treasury yield curve for periods equal to the expected term of the options on the grant date. Total stock-based compensation expense related to stock options was $1,958 and $1,069 for the three months ended March 31, 2015 and 2014, respectively. At March 31, 2015, there was approximately $8,713 of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of stock options vested during the three months ended March 31, 2015 and 2014 was $2,613 and $953, respectively. Restricted Stock Unit Awards The Company’s restricted stock unit awards (“RSUs”) are agreements to issue shares of the Company’s common stock to employees in the future, upon the satisfaction of certain vesting conditions, which cause them to be subject to risk of forfeiture and restrict the awardholder’s ability to sell or otherwise transfer such RSUs until they vest. Generally, the Company’s RSU grants vest over three years from the grant date subject to continued employment on the applicable vesting dates. The following table summarizes the RSU activity for the three months ended March 31, 2015: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 1.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 1.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid"> Number of RSUs </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> Weighted Average Grant Date Fair Value </td> <td style="vertical-align: bottom; padding-right: 0.8pt; text-align: right">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%"> Outstanding at December 31, 2014 </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 4%; padding-right: 0.8pt">   </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right"> — </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt"> $ </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right"> — </td> <td style="width: 1%; padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Granted (1) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 548,424 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 11.99 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Vested </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> — </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Cancelled </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> — </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="border-bottom: black 1px solid"> Outstanding at March 31, 2015 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 548,424 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 11.99 </td> <td style="padding-right: 0.8pt">   </td> </tr> </table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 36pt"> </td> <td style="width: 18pt"> (1) </td> <td> RSUs granted during the three months ended March 31, 2015 includes the grant of 40,000 units of performance-based RSUs that are dependent upon the Company meeting certain performance criteria. </td> </tr> </table> Total stock-based compensation expense related to RSUs was $262 for the three months ended March 31, 2015. As RSUs were issued for the first time in March 2015, there was no stock-based compensation expense related to RSUs in 2014. At March 31, 2015, there was approximately $5,904 of unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 1.63 years. 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan (“ESPP”), which became effective immediately upon the signing of the underwriting agreement related to the IPO on March 27, 2014, authorizes the issuance of 500,000 shares of the Company’s common stock pursuant to purchase rights granted to employees. The number of shares of common stock reserved for issuance under the ESPP will automatically increase on January 1 of each calendar year from January 1, 2015 through January 1, 2024 by the least of (a) 1% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, (b) 400,000 shares and (c) a number determined by the Board of Directors that is less than (a) and (b). Unless otherwise determined by the Board of Directors, common stock will be purchased for participating employees at a price per share equal to the lower of (a) 85% of the fair market value of a share of the common stock on the first date of an offering, or (b) 85% of the fair market value of a share of the common stock on the date of purchase. Generally, all regular employees may participate in the ESPP and may contribute, through payroll deductions, up to 15% of their earnings toward the purchase of common stock under the ESPP. Under the terms of the ESPP, there are defined limitations as to the amount and value of common stock that can be purchased by each employee. For the three months ended March 31, 2015, charges incurred under the ESPP totaled $271, and such charges were not material during the three months ended March 31, 2014. As of March 31, 2015, 676,707 shares of common stock were reserved for future issuance under the ESPP.

339829

The number of shares of common stock reserved for issuance under the 2014 Plan is subject to an automatic increase on January 1 of each year through January 1, 2024, by the lesser of (a) 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year and (b) a number of shares determined by the Board of Directors.

484000

910000

5.49

7.56

1958000

1069000

8713000

P1Y6M

2613000

953000

40000

262000

5904000

P1Y229D

500000

The number of shares of common stock reserved for issuance under the ESPP will automatically increase on January 1 of each calendar year from January 1, 2015 through January 1, 2024 by the least of (a) 1% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, (b) 400,000 shares and (c) a number determined by the Board of Directors that is less than (a) and (b). Unless otherwise determined by the Board of Directors, common stock will be purchased for participating employees at a price per share equal to the lower of (a) 85% of the fair market value of a share of the common stock on the first date of an offering, or (b) 85% of the fair market value of a share of the common stock on the date of purchase. 0.15

271000

676707

The following table summarizes stock option activity for the three months ended March 31, 2015: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Number of options </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Weighted- average exercise price </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Weighted- average remaining contractual life (years) </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif">   </td> <td colspan="2" style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: center; font-family: Times New Roman, Times, Serif"> Aggregate intrinsic value </td> <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font-family: Times New Roman, Times, Serif"> <td style="width: 43%; font-family: Times New Roman, Times, Serif"> Outstanding at December 31, 2014 </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 5,893,698 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif"> $ </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 9.94 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 4%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 6.48 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">   </td> <td style="width: 2%; font-family: Times New Roman, Times, Serif">  $ </td> <td style="width: 9%; text-align: right; font-family: Times New Roman, Times, Serif"> 29,249 </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: White; font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Granted </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 726,100 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 12.22 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Exercised </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> (72,832 </td> <td style="font-family: Times New Roman, Times, Serif"> ) </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 7.27 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: White; font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Cancelled </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> (7,415 </td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1px"> ) </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 12.84 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255); font-family: Times New Roman, Times, Serif"> <td style="font-family: Times New Roman, Times, Serif"> Outstanding at March 31, 2015 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 6,539,551 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif"> $ </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 10.23 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 6.65 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif">   </td> <td style="font-family: Times New Roman, Times, Serif"> $ </td> <td style="text-align: right; font-family: Times New Roman, Times, Serif"> 20,931 </td> <td style="font-family: Times New Roman, Times, Serif">   </td> </tr> <tr style="vertical-align: bottom; background-color: White; font-family: Times New Roman, Times, Serif"> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif"> Exercisable at March 31, 2015 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 3,896,925 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif"> $ </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 8.45 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 5.01 </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif">   </td> <td style="border-bottom: black 1px solid; font-family: Times New Roman, Times, Serif"> $ </td> <td style="border-bottom: black 1px solid; text-align: right; font-family: Times New Roman, Times, Serif"> 17,987 </td> <td style="font-family: Times New Roman, Times, Serif; border-bottom: black 1px solid;">   </td> </tr> </table>

5893698

9.94

P6Y175D

29249000

726100

12.22

-72832

7.27

-7415

12.84

6539551

10.23

P6Y237D

20931000

3896925

8.45

P5Y3D

17987000

The following table presents the weighted-average assumptions used to estimate the fair value of options granted in the three months ended March 31, 2015 and 2014: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; width: 73%; border-top: black 1px solid">   </td> <td style="vertical-align: bottom; width: 3%; border-top: black 1px solid; padding-right: 0.8pt">   </td> <td style="vertical-align: bottom; width: 1%; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="vertical-align: bottom; width: 9%; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> 2015 </td> <td style="vertical-align: bottom; width: 1%; border-top: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; width: 2%; border-top: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; width: 1%; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; width: 9%; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> 2014 </td> <td style="vertical-align: bottom; width: 1%; padding-right: 0.8pt; border-top: black 1px solid; border-bottom: black 1px solid;">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Volatility </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 44.29 </td> <td style="padding-right: 0.8pt"> % </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 49.77 </td> <td style="padding-right: 0.8pt"> % </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Expected life (years) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 6.25 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 6.25 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Risk-free interest rate </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 1.72 </td> <td style="padding-right: 0.8pt"> % </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 1.92 </td> <td style="padding-right: 0.8pt"> % </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: black 1px solid"> Dividend yield </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> — </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> — </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> </tr> </table>

0.4429

0.4977

P6Y3M

0.0172

0.0192

The following table summarizes the RSU activity for the three months ended March 31, 2015: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: top; border-top: black 1px solid; border-bottom: black 1px solid">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 1.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 1.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; padding-right: 0.8pt; text-align: center">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid"> Number of RSUs </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center">   </td> <td style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center">   </td> <td colspan="2" style="vertical-align: bottom; border-top: black 1px solid; border-bottom: black 1px solid; text-align: center"> Weighted Average Grant Date Fair Value </td> <td style="vertical-align: bottom; padding-right: 0.8pt; text-align: right">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%"> Outstanding at December 31, 2014 </td> <td style="width: 3%; padding-right: 0.8pt">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right">   </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 4%; padding-right: 0.8pt">   </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right"> — </td> <td style="width: 1%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt">   </td> <td style="width: 2%; padding-right: 0.8pt"> $ </td> <td style="width: 9%; padding-right: 0.8pt; text-align: right"> — </td> <td style="width: 1%; padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Granted (1) </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 548,424 </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> 11.99 </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td> Vested </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right"> — </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> Cancelled </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> — </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt">   </td> <td style="padding-right: 0.8pt; text-align: right">   </td> <td style="padding-right: 0.8pt">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="border-bottom: black 1px solid"> Outstanding at March 31, 2015 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 548,424 </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt">   </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt"> $ </td> <td style="border-bottom: black 1px solid; padding-right: 0.8pt; text-align: right"> 11.99 </td> <td style="padding-right: 0.8pt">   </td> </tr> </table><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 36pt"> </td> <td style="width: 18pt"> (1) </td> <td> RSUs granted during the three months ended March 31, 2015 includes the grant of 40,000 units of performance-based RSUs that are dependent upon the Company meeting certain performance criteria. </td> </tr> </table>

548424

11.99

548424

11.99

8. Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period, adjusted to reflect potentially dilutive securities. Potentially dilutive securities consist of incremental shares issuable upon the assumed exercise of stock options, restricted stock units, and warrants using the treasury stock method, and employee withholdings to purchase common stock under the ESPP. Due to the net losses for the three months ended March 31, 2015 and 2014, the Company had outstanding options, warrants, restricted stock units, and ESPP withholdings which were not included in the computation of diluted net loss per common share, as the effects would have been anti-dilutive. Accordingly, the basic and diluted weighted-average number of common shares outstanding are the same for the following periods presented: <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-top: Black 0.5pt solid">   </td> <td style="font-weight: bold; border-top: Black 0.5pt solid">   </td> <td colspan="6" style="font-weight: bold; text-align: center; border-top: Black 0.5pt solid"> Three months ended </td> <td style="font-weight: bold; text-align: center">   </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center">   </td> <td style="font-weight: bold; padding-bottom: 1px; text-align: center;">   </td> <td colspan="6" style="font-weight: bold; border-bottom: Black 1px solid; text-align: center;"> March 31, </td> <td style="font-weight: bold; text-align: center">   </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">   </td> <td style="font-weight: bold; padding-bottom: 1px">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2015 </td> <td style="border-bottom: Black 1px solid; font-weight: bold">   </td> <td style="font-weight: bold; border-bottom: Black 1px solid">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2014 </td> <td style="padding-bottom: 1px; font-weight: bold">   </td> </tr> <tr style="vertical-align: bottom"> <td style="text-decoration: underline; text-indent: -10pt; padding-left: 10pt"> Numerator: </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 74%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Net loss </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (8,068 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (7,759 </td> <td style="width: 1%; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding-left: 10pt"> Denominator: </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Weighted-average number of common shares outstanding - basic and diluted </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 31,525,559 </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 5,403,846 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid"> Net loss per common share - basic and diluted </td> <td style="border-bottom: Black 1px solid">   </td> <td style="text-align: left; border-bottom: Black 1px solid"> $ </td> <td style="text-align: right; border-bottom: Black 1px solid"> (0.26 </td> <td style="text-align: left; border-bottom: Black 1px solid"> ) </td> <td style="border-bottom: Black 1px solid">   </td> <td style="text-align: left; border-bottom: Black 1px solid"> $ </td> <td style="text-align: right; border-bottom: Black 1px solid"> (1.44 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom"> <td>   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> </table> The following securities were outstanding at the end of the periods presented below and have been excluded from the calculation of diluted net loss per common share because the effect is anti-dilutive: <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-top: Black 0.5pt solid">   </td> <td style="font-weight: bold; border-top: Black 0.5pt solid">   </td> <td colspan="6" style="font-weight: bold; text-align: center; border-top: Black 0.5pt solid"> Three months ended </td> <td style="font-weight: bold; text-align: center">   </td> </tr> <tr style="vertical-align: bottom"> <td>   </td> <td style="font-weight: bold; padding-bottom: 1px">   </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> March 31, </td> <td style="font-weight: bold; text-align: center;">   </td> </tr> <tr style="vertical-align: bottom"> <td>   </td> <td style="font-weight: bold; padding-bottom: 1px">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2015 </td> <td style="border-bottom: Black 1px solid; font-weight: bold">   </td> <td style="font-weight: bold; border-bottom: Black 1px solid">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2014 </td> <td style="padding-bottom: 1px; font-weight: bold">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 74%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Warrants to purchase common stock(1) </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left">   </td> <td style="width: 9%; text-align: right"> 143,782 </td> <td style="width: 1%; text-align: left">   </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left">   </td> <td style="width: 9%; text-align: right"> 692,501 </td> <td style="width: 1%; text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Warrants to purchase redeemable convertible preferred stock(1) </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> — </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 148,650 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Redeemable convertible preferred stock(1) </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> — </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 26,820,270 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Stock option awards </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 6,539,511 </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 6,673,806 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> RSU awards </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 548,424 </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> — </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt"> Employee stock purchase plan </td> <td style="padding-bottom: 1px">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> 80,037 </td> <td style="padding-bottom: 1px; text-align: left">   </td> <td style="padding-bottom: 1px">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> — </td> <td style="padding-bottom: 1px; text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid"> Total anti-dilutive securities </td> <td style="padding-bottom: 1px; border-bottom: Black 1px solid">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> 7,311,754 </td> <td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">   </td> <td style="padding-bottom: 1px; border-bottom: Black 1px solid">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> 34,335,227 </td> <td style="padding-bottom: 1px; text-align: left">   </td> </tr> </table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 36pt"> </td> <td style="width: 18pt"> (1) </td> <td> Upon closing of the IPO on April 2, 2014, all of the Company’s outstanding redeemable convertible preferred stock automatically converted into shares of common stock. In addition, the outstanding warrants to purchase redeemable convertible preferred stock automatically converted into warrants to purchase common stock, or were automatically exercised upon closing of the IPO. </td> </tr> </table>

Diluted net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period, adjusted to reflect potentially dilutive securities. Potentially dilutive securities consist of incremental shares issuable upon the assumed exercise of stock options, restricted stock units, and warrants using the treasury stock method, and employee withholdings to purchase common stock under the ESPP. Due to the net losses for the three months ended March 31, 2015 and 2014, the Company had outstanding options, warrants, restricted stock units, and ESPP withholdings which were not included in the computation of diluted net loss per common share, as the effects would have been anti-dilutive. Accordingly, the basic and diluted weighted-average number of common shares outstanding are the same for the following periods presented: <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-top: Black 0.5pt solid">   </td> <td style="font-weight: bold; border-top: Black 0.5pt solid">   </td> <td colspan="6" style="font-weight: bold; text-align: center; border-top: Black 0.5pt solid"> Three months ended </td> <td style="font-weight: bold; text-align: center">   </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center">   </td> <td style="font-weight: bold; padding-bottom: 1px; text-align: center;">   </td> <td colspan="6" style="font-weight: bold; border-bottom: Black 1px solid; text-align: center;"> March 31, </td> <td style="font-weight: bold; text-align: center">   </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">   </td> <td style="font-weight: bold; padding-bottom: 1px">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2015 </td> <td style="border-bottom: Black 1px solid; font-weight: bold">   </td> <td style="font-weight: bold; border-bottom: Black 1px solid">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2014 </td> <td style="padding-bottom: 1px; font-weight: bold">   </td> </tr> <tr style="vertical-align: bottom"> <td style="text-decoration: underline; text-indent: -10pt; padding-left: 10pt"> Numerator: </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 74%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Net loss </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (8,068 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (7,759 </td> <td style="width: 1%; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding-left: 10pt"> Denominator: </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Weighted-average number of common shares outstanding - basic and diluted </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 31,525,559 </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 5,403,846 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid"> Net loss per common share - basic and diluted </td> <td style="border-bottom: Black 1px solid">   </td> <td style="text-align: left; border-bottom: Black 1px solid"> $ </td> <td style="text-align: right; border-bottom: Black 1px solid"> (0.26 </td> <td style="text-align: left; border-bottom: Black 1px solid"> ) </td> <td style="border-bottom: Black 1px solid">   </td> <td style="text-align: left; border-bottom: Black 1px solid"> $ </td> <td style="text-align: right; border-bottom: Black 1px solid"> (1.44 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom"> <td>   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right">   </td> <td style="text-align: left">   </td> </tr> </table>

The following securities were outstanding at the end of the periods presented below and have been excluded from the calculation of diluted net loss per common share because the effect is anti-dilutive: <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-top: Black 0.5pt solid">   </td> <td style="font-weight: bold; border-top: Black 0.5pt solid">   </td> <td colspan="6" style="font-weight: bold; text-align: center; border-top: Black 0.5pt solid"> Three months ended </td> <td style="font-weight: bold; text-align: center">   </td> </tr> <tr style="vertical-align: bottom"> <td>   </td> <td style="font-weight: bold; padding-bottom: 1px">   </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> March 31, </td> <td style="font-weight: bold; text-align: center;">   </td> </tr> <tr style="vertical-align: bottom"> <td>   </td> <td style="font-weight: bold; padding-bottom: 1px">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2015 </td> <td style="border-bottom: Black 1px solid; font-weight: bold">   </td> <td style="font-weight: bold; border-bottom: Black 1px solid">   </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid"> 2014 </td> <td style="padding-bottom: 1px; font-weight: bold">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 74%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Warrants to purchase common stock(1) </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left">   </td> <td style="width: 9%; text-align: right"> 143,782 </td> <td style="width: 1%; text-align: left">   </td> <td style="width: 2%">   </td> <td style="width: 1%; text-align: left">   </td> <td style="width: 9%; text-align: right"> 692,501 </td> <td style="width: 1%; text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Warrants to purchase redeemable convertible preferred stock(1) </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> — </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 148,650 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Redeemable convertible preferred stock(1) </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> — </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 26,820,270 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Stock option awards </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 6,539,511 </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 6,673,806 </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> RSU awards </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> 548,424 </td> <td style="text-align: left">   </td> <td>   </td> <td style="text-align: left">   </td> <td style="text-align: right"> — </td> <td style="text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt"> Employee stock purchase plan </td> <td style="padding-bottom: 1px">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> 80,037 </td> <td style="padding-bottom: 1px; text-align: left">   </td> <td style="padding-bottom: 1px">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> — </td> <td style="padding-bottom: 1px; text-align: left">   </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt; border-bottom: Black 1px solid"> Total anti-dilutive securities </td> <td style="padding-bottom: 1px; border-bottom: Black 1px solid">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> 7,311,754 </td> <td style="padding-bottom: 1px; text-align: left; border-bottom: Black 1px solid">   </td> <td style="padding-bottom: 1px; border-bottom: Black 1px solid">   </td> <td style="border-bottom: Black 1px solid; text-align: left">   </td> <td style="border-bottom: Black 1px solid; text-align: right"> 34,335,227 </td> <td style="padding-bottom: 1px; text-align: left">   </td> </tr> </table><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 36pt"> </td> <td style="width: 18pt"> (1) </td> <td> Upon closing of the IPO on April 2, 2014, all of the Company’s outstanding redeemable convertible preferred stock automatically converted into shares of common stock. In addition, the outstanding warrants to purchase redeemable convertible preferred stock automatically converted into warrants to purchase common stock, or were automatically exercised upon closing of the IPO. </td> </tr> </table>

143782

692501

148650

26820270

6539511

6673806

548424

80037

7311754

34335227

9. Income Taxes The Company’s expected and historic annual net tax provision is generally comprised of a deferred tax provision pertaining to basis differences in indefinite lived intangible assets that cannot be offset by current year deferred tax assets, as well as, to a much lesser extent, a current tax provision for federal, state, local and foreign taxes. Effective March 31, 2015, the tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising in the quarter, as applicable. As a result of using an estimated annual effective tax rate the Company recorded a benefit for the quarter, which is expected to reverse over the remaining quarters. In each quarter, the Company’s estimate of the annual effective tax rate will be updated and any changes will be recognized in the interim period in which the change occurs. In interim periods prior to March 31, 2015, the tax provision was based upon the estimated deferred and current tax provision for the year rather than the estimated annual effective tax rate, as the Company had historically experienced pretax losses in certain quarters and pretax income in others, and the annual results were expected to be at or near breakeven, and believed that using an annual effective tax rate would result in significant variances in the customary relationship between income tax expense (benefit) and pretax income or loss in interim periods. The Company’s deferred tax assets relate primarily to net operating loss carryforwards and to a smaller extent stock based compensation and other items. The Company has provided a valuation allowance against deferred tax assets to the extent the Company has determined that it is more likely than not that such net deferred tax assets will not be realizable. In determining realizability, the Company considered various factors including historical profitability and reversing temporary differences, exclusive of indefinite-lived intangibles. The Company’s deferred tax liabilities arose primarily from basis differences in indefinite-lived intangible assets that cannot be offset by current year deferred tax assets. At December 31, 2014, the Company had approximately $107,000 of net operating loss, or NOL, carryforwards available to offset future taxable income, which expire from 2020 through 2033. The full utilization of these losses in the future is dependent upon the Company’s ability to generate taxable income and may also be limited due to ownership changes, as defined under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended. The Company’s NOL carryforwards at December 31, 2014 included $7,433 of income tax deductions related to equity compensation that are greater than the compensation recognized for financial reporting, which will be reflected as a credit to additional paid-in-capital as realized. The Company is subject to taxation in the U.S. and various federal, state, local and foreign jurisdictions. In March 2014, an audit of the Company’s U.S. Federal tax return for the year ended December 31, 2011 commenced. As of March 31, 2015, none of the Company’s other tax returns have been examined by any income taxing authority. The Company is not subject to U.S. federal, state or non-U.S. income tax examinations by tax authorities for years prior to 2010. However, to the extent U.S. federal and state NOL carryforwards are utilized, the use of NOLs could be subject to examination by the tax authorities. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on assessment of many factors, including past experience and interpretations of tax law. The Company regularly assesses the adequacy of its income tax contingencies in accordance with ASC 740. As a result, the Company may adjust its income tax contingency liabilities for the impact of new facts and developments, such as changes in interpretations of relevant tax law and assessments from taxing authorities.

107000000

7433000

10. Commitments and Contingencies The Company is subject to certain claims that have arisen in the ordinary conduct of business. Based on the advice of counsel and an assessment of the nature and status of any potential claim, and taking into account any accruals the Company may have established for them, the Company currently believes that any liabilities ultimately resulting from such claims will not, individually or in the aggregate, have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

11. Subsequent Events The Company has completed an evaluation of all subsequent events through the issuance date of these financial statements and concluded that no subsequent events occurred that required recognition to the financial statements or disclosures in the notes to the consolidated financial statements.