CommerceHub
CommerceHub, Inc. (Form: 8-K, Received: 08/02/2017 16:05:04)
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): August 2, 2017
COMMERCEHUB, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-37840
81-1001640
(State or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
201 Fuller Road, 6th Floor
Albany, New York 12203
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (518) 810-0700
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b‑2 of this chapter).
Emerging growth company [X]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [X]
 

1



Item 2.02. Results of Operations and Financial Condition
On August 2, 2017, CommerceHub, Inc. (the “Company”) issued a press release (the “Earnings Release”) disclosing information regarding the Company’s results of operations for the three months ended June 30, 2017, the Company’s financial condition as of June 30, 2017 and certain other financial and operating information.
This Item 2.02 and the Earnings Release attached hereto as Exhibit 99.1 are being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for any purpose.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
 
   Name
99.1
 
Press Release, dated August 2, 2017





2



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 2, 2017
COMMERCEHUB, INC.

By:     /S/ MARK GREENQUIST    
Name: Mark Greenquist
Title: Chief Financial Officer and Treasurer



3



EXHIBIT INDEX
Exhibit No.
 
Name
99.1
 
Press Release, dated August 2, 2017


4


Exhibit 99.1
CHUB2Q17EARNINGSPRESS_IMAGE1.JPG

CommerceHub Announces Second Quarter 2017 Financial Results
Revenue of $25.2 million increases 9%, $0.05 GAAP EPS, and $0.08 adjusted EPS
Signs Top 10 U.S. Retailer and First U.K. Drop-Ship Retailer

ALBANY, NY, August 2, 2017 – CommerceHub, Inc. (NASDAQ: CHUBA, CHUBK) (“CommerceHub,” “we,” “us,” “our” or the “Company”), a leading distributed commerce network for retailers and brands, today announced financial results for the quarter ended June 30, 2017.

“We are pleased with the solid second quarter results we announced today, including continued revenue growth and expanding profitability,” said Frank Poore, CommerceHub’s Founder, President and CEO. “We are excited to announce the addition of two strategic retailer customer wins during the quarter, making four year-to-date and delivering on the high-end of our goal of 2-4 new retailer customers per year. One is a top 10 U.S. retailer, and the other marks our first retail drop-ship customer in the U.K. The U.S. win demonstrates our market leadership and our ability to deliver high-volume drop-ship fulfillment at scale. The U.K. win establishes a beachhead for our drop-ship offerings and should help to further unlock the U.K. market for CommerceHub.”

“In addition to $2.2 million of net income for the quarter, we generated $8.6 million in adjusted EBITDA, representing 34 percent of revenue for the quarter and a 7 percentage point improvement over the same period last year. We also delivered strong free cash flow and continued to pay down debt, strengthening our net cash balance.” said Mark Greenquist, CommerceHub’s CFO. “We are pleased with our recent customer wins and believe this new U.S. retailer could eventually become a top 10 customer for CommerceHub.”

Second Quarter 2017 Financial Highlights
Revenue was $25.2 million, a 9% year-over-year increase from $23.1 million in 2016. Core drop-ship revenue, which excludes revenue from our demand channel solutions, increased 14%.
Gross margin was 78%, compared to 77% in 2016.
Adjusted gross margin was 78%, compared to 75% in 2016.
Net income was $2.2 million, or $0.05 per diluted share, compared to $4.4 million, or $0.10 per diluted share, in 2016.
Adjusted net income was $3.7 million, or $0.08 per diluted share, compared to $2.6 million, or $0.06 per diluted share, in 2016.
Adjusted EBITDA was $8.6 million, compared to $6.3 million in 2016.
Operating cash flow was a positive $7.1 million, compared to a negative $73.3 million in 2016, which was impacted by a non-recurring cash payment of $78.5 million in share-based compensation related to our spin-off from Liberty Interactive.
Free cash flow was a positive $6.5 million, compared to a negative $76.5 million in 2016.
Cash at quarter end was $6.8 million and the total amount outstanding under our credit facility was $6.0 million.





An explanation of the non-GAAP financial measures discussed above is included below under the heading "Statement Regarding Non-GAAP Financial Measures." A reconciliation of these non-GAAP financial measures to the closest comparable GAAP financial measures has also been provided in the financial tables included at the end of this press release.

Other Recent Highlights
Total customer count at June 30, 2017 was 11,274, up from 9,730 at June 30, 2016, or 16% year-over-year.
Drop-ship order volume growth was 17% in the second quarter.
We expanded our CommerceHub for Retailers network with the signing of a top 10 U.S. retailer that we believe has the potential to become a top 10 customer for CommerceHub. This win is a conversion of an existing in-house drop-ship program, which we believe demonstrates the complexity of such programs and the value CommerceHub can deliver through increased operational efficiencies, improved customer service and capital-efficient expansion of product assortments .  
We signed our first U.K. retailer drop-ship customer. This is a mid-sized U.K. retailer seeking to expand its ecommerce business by leveraging CommerceHub’s drop-ship model, while reducing inventory risk and operating costs.
 
Conference Call Details
The Company will offer a live conference call, and a live, listen-only webcast of the call via the CommerceHub Investor Relations website at 4:30 p.m., E.T., today, Wednesday, August 2, 2017. See http://ir.commercehub.com/events.cfm, where supporting materials, including a presentation and supplemental financial data, have been posted.

Live Call:
U.S./Canada Toll-Free Participants Dial-in Number: (800) 219-6912
International Toll Participants Dial-in Number: (574) 990-1026
Conference ID/Passcode: 55684519
Webcast (live and replay):
http://ir.commercehub.com/events.cfm

About CommerceHub:
CommerceHub is a distributed commerce network connecting supply, demand and delivery that helps retailers and brands increase sales by expanding product assortments, promoting products on the channels that perform, and enabling rapid, on-time customer delivery. With its robust platform and proven scalability, CommerceHub helped over 10,000 retailers, brands, and distributors achieve an estimated $13+ billion in Gross Merchandise Value in 2016.






Important Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about future business strategies, future financial performance, market conditions and potential, future growth of ecommerce, customer growth, sales channel expansion, international expansion and other matters that are not historical facts. These statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, market acceptance and performance of our products and services, competitive issues, general market conditions, regulatory matters affecting our business and changes in law. These forward-looking statements speak only as of the date of this presentation, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any such statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. There can be no assurance that any expectation or belief expressed in a forward-looking statement will occur, and you should not place undue reliance on any forward-looking statements. Please refer to our public filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional information about us and the risks and uncertainties we face that may affect the forward-looking statements made in this press release.


Statement Regarding Non-GAAP Financial Measures
In addition to reporting financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), we provide non-GAAP financial measures that management considers in reviewing our financial performance because we feel they are relevant measures of the overall efficiency of our business model. These non-GAAP financial measures are not a substitute for, or superior to, and should be considered only in addition to, financial measures calculated in accordance with GAAP. They are subject to inherent limitations and exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Certain of these adjustments are based on estimates and assumptions of management and do not purport to reflect actual historical results. In addition, you should be aware that our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies do not calculate these measures in the same fashion. We define “adjusted gross profit” as gross profit plus share-based compensation and acquisition-related intangible amortization. We define “adjusted gross margin” as adjusted gross profit divided by revenue. We define “adjusted operating expenses” as total operating expenses less share-based compensation and acquisition-related intangible amortization. We define “adjusted EBITDA” as net income or loss plus interest expense, income tax expense, depreciation of property and equipment, amortization of capitalized software costs and intangible assets and share-based compensation expense, less interest income and income tax benefit. We define “adjusted net income” as net income or loss plus share-based compensation, acquisition-related intangible amortization and the tax effect of these adjustments. We define “adjusted earnings per diluted share” or “adjusted EPS” as earnings per diluted share plus the diluted per share effects of share-based compensation, acquisition-related intangible amortization and the tax effect of these adjustments. We define “free cash flow” as net cash provided by, or used in, operating activities less purchases of property and equipment and additions to capitalized software. A reconciliation of these non-GAAP financial measures to the closest comparable GAAP financial measures has been provided in the financial tables included at the end of this press release.







CommerceHub Investor Relations Contact
Sara Leggat
investor@commercehub.com





Consolidated Statements of Operations
(in thousands except per share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Revenue
$
25,208

 
$
23,103

 
$
49,776

 
$
45,193

 
Cost of revenue
5,639

 
5,320

 
11,155

 
11,425

 
Gross profit
19,569

 
17,783

 
38,621

 
33,768

 
Gross margin
78
%
 
77
%
 
78
%
 
75
%
 
 
 
 
 
 
 
 
 
 
Research and development
6,396

 
3,444

 
12,311

 
8,314

 
Sales and marketing
2,387

 
2,384

 
4,318

 
6,001

 
General and administrative
6,945

 
4,675

 
13,884

 
15,199

 
Operating expenses
15,728

 
10,503

 
30,513

 
29,514

 
 
 
 
 
 
 
 
 
 
Operating income
3,841

 
7,280

 
8,108

 
4,254

 
 
 
 
 
 
 
 
 
 
Interest (expense) income, net
(229
)
 
63

 
(456
)
 
229

 
 
 
 
 
 
 
 
 
 
Pre-tax income
3,612

 
7,343

 
7,652

 
4,483

 
Income tax expense
1,367

 
2,919

 
2,948

 
2,049

 
 
 
 
 
 
 
 
 
 
Net income
$
2,245

 
$
4,424

 
$
4,704

 
$
2,434

 
 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
Basic
$
0.05

 
$
0.10

 
$
0.11

 
$
0.06

 
Diluted
$
0.05

 
$
0.10

 
$
0.10

 
$
0.06

 
 
 
 
 
 
 
 
 
 
Share count (1) :
 
 
 
 
 
 
 
 
Basic
43,155

 
42,703

 
43,068

 
42,703

 
Diluted
44,957

 
42,703

 
44,842

 
42,703

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Share counts for pre-spin periods represent the shares issued at spin-off on July 22, 2016.
 
 
 
 
 
 
 
 
 
 
 









CommerceHub, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
6/30/2017
 
12/31/2016
 
Assets
 
 
 
 
Cash and cash equivalents
$
6,777

 
$
6,471

 
Accounts receivable, net of allowances
11,721

 
18,109

 
Prepaid income taxes
3,012

 
4,311

 
Prepaid expenses
1,533

 
1,549

 
Total current assets
23,043

 
30,440

 
 
 
 
 
 
Capitalized software, net
5,053

 
6,716

 
Deferred services costs
4,837

 
4,989

 
Property and equipment, net
7,283

 
7,629

 
Goodwill
21,410

 
21,410

 
Deferred income taxes
8,639

 
7,714

 
Other long-term assets
1,524

 
1,122

 
Total assets
$
71,789

 
$
80,020

 
 
 
 
 
Liabilities and Equity
 
 
 
 
Accounts payable and accrued expenses
$
2,223

 
$
2,135

 
Accrued payroll and related expenses
6,165

 
7,435

 
Income taxes payable
8

 
7

 
Deferred revenue
5,589

 
5,149

 
Total current liabilities
13,985

 
14,726

 
Deferred revenue, long-term
7,965

 
7,581

 
Other long-term liabilities
1,995

 
1,135

 
Long-term debt
6,000

 
26,000

 
Total liabilities
29,945

 
49,442

 
 
 
 
 
Equity:
 
 
 
 
Total equity
41,844

 
30,578

 
Total liabilities and equity
$
71,789

 
$
80,020

 
 
 
 
 




CommerceHub, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income
$
2,245

 
$
4,424

 
$
4,704

 
$
2,434

 
Adjustments to net income:
 
 
 
 
 
 
 
 
Depreciation and amortization
2,182

 
2,539

 
4,276

 
4,862

 
Amortization of debt issuance costs
55

 

 
111

 

 
Share-based compensation
2,617

 
(3,477
)
 
4,977

 
6,560

 
Deferred income taxes
(283
)
 
21,585

 
(925
)
 
19,214

 
Bad debt expense
187

 
222

 
591

 
255

 
Accrued interest income

 
(107
)
 

 
(273
)
 
Loss on disposal of long-term assets
17

 
160

 
17

 
160

 
Working capital changes:
 
 
 
 
 
 
 
 
Accounts receivable
621

 
1,315

 
5,796

 
5,919

 
Prepaid expenses and other assets
(245
)
 
(11
)
 
(488
)
 
(420
)
 
Income taxes, net
(2,376
)
 
(738
)
 
1,300

 
(738
)
 
Deferred costs
(29
)
 
(103
)
 
152

 
(295
)
 
Deferred revenue
490

 
(249
)
 
824

 
(31
)
 
Accounts payable and accrued expenses
256

 
(1,827
)
 
593

 
231

 
Accrued payroll and related expenses
1,373

 
(1,973
)
 
(1,247
)
 
(867
)
 
Share-based compensation liability payments

 
(78,494
)
 

 
(85,930
)
 
Parent receivables and payables, net

 
(16,603
)
 

 
(16,346
)
 
Net cash provided by (used in) operating activities
7,110

 
(73,337
)
 
20,681

 
(65,265
)
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Purchases of property and equipment
(257
)
 
(1,845
)
 
(949
)
 
(4,136
)
 
Additions to capitalized software
(353
)
 
(1,321
)
 
(984
)
 
(3,504
)
 
Collections on note receivable - Parent

 
36,380

 

 
36,380

 
Net cash (used in) provided by investing activities
(610
)
 
33,214

 
(1,933
)
 
28,740

 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Borrowings on note payable - Parent

 
28,664

 

 
28,664

 
Payments on revolver
(4,000
)
 
-

 
(20,000
)
 

 
Cash paid for debt issuance costs

 
(1,000
)
 

 
(1,000
)
 
Cash received from exercise of stock options
233

 
21

 
1,557

 
73

 
Purchase of treasury stock

 
(3,600
)
 

 
(3,600
)
 
Net cash (used in) provided by financing activities
(3,767
)
 
24,085

 
(18,443
)
 
24,137

 
Currency effect on cash

 

 
1

 

 
Net increase (decrease) in cash and cash equivalents
2,733

 
(16,038
)
 
306

 
(12,388
)
 
 
 
 
 
 
 
 
 
 
Beginning cash and cash equivalents
4,044

 
22,987

 
6,471

 
19,337

 
Ending cash and cash equivalents
$
6,777

 
$
6,949

 
$
6,777

 
$
6,949





CommerceHub, Inc.
Supplemental Information
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
% Inc (Dec)
 
6/30/2017
 
6/30/2016
 
% Inc (Dec)
 
Revenue by type:
 
 
 
 
 
 
 
 
 
 
 
 
Usage revenue
$
16,553

 
$
15,333

 
8
%
 
$
32,412

 
$
29,875

 
8
%
 
Subscription revenues
6,943

 
6,228

 
11
%
 
13,840

 
12,346

 
12
%
 
Set-up and professional services
1,712

 
1,542

 
11
%
 
3,524

 
2,972

 
19
%
 
Total revenue
$
25,208

 
$
23,103

 
9
%
 
$
49,776

 
$
45,193

 
10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
 
 
6 months ended:
 
 
 
 
6/30/2017
 
6/30/2016
 
 
 
6/30/2017
 
6/30/2016
 
 
 
Share-based compensation:
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
$
89

 
$
(662
)
 
 
 
$
199

 
$
(158
)
 
 
 
Research and development
530

 
(747
)
 
 
 
1,101

 
1,113

 
 
 
Sales and marketing
300

 
(383
)
 
 
 
435

 
601

 
 
 
General and administrative
1,698

 
(1,685
)
 
 
 
3,242

 
5,004

 
 
 
Total
$
2,617

 
$
(3,477
)
 
 
 
$
4,977

 
$
6,560

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





CommerceHub, Inc.
GAAP to Non-GAAP Reconciliations
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP gross profit to adjusted gross profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Gross profit
$
19,569

 
$
17,783

 
$
38,621

 
$
33,768

 
Share-based compensation
89

 
(662
)
 
199

 
(158
)
 
Acquisition-related intangible amortization

 
187

 

 
375

 
Adjusted gross profit
$
19,658

 
$
17,308

 
$
38,820

 
$
33,985

 
 
 
 
 
 
 
 
 
 
Adjusted gross margin
78
%
 
75
%
 
78
%
 
75
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP operating expenses to adjusted operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Operating expenses
$
15,728

 
$
10,503

 
$
30,513

 
$
29,514

 
Share-based compensation
(2,528
)
 
2,815

 
(4,778
)
 
(6,718
)
 
Acquisition-related intangible amortization

 
(250
)
 

 
(500
)
 
Adjusted operating expenses
$
13,200

 
$
13,068

 
$
25,735

 
$
22,296

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP net income to adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Net income
$
2,245

 
$
4,424

 
$
4,704

 
$
2,434

 
Interest expense (income), net
229

 
(63
)
 
456

 
(229
)
 
Income tax expense
1,367

 
2,919

 
2,948

 
2,049

 
Depreciation and amortization
2,182

 
2,539

 
4,276

 
4,862

 
Share-based compensation
2,617

 
(3,477
)
 
4,977

 
6,560

 
Adjusted EBITDA
$
8,640

 
$
6,342

 
$
17,361

 
$
15,676

 
 
 
 
 
 
 
 
 








CommerceHub, Inc.
GAAP to Non-GAAP Reconciliations, continued
(in thousands except per share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP net income to adjusted net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Net income
$
2,245

 
$
4,424

 
$
4,704

 
$
2,434

 
Share-based compensation
2,617

 
(3,477
)
 
4,977

 
6,560

 
Acquisition-related intangible amortization

 
437

 

 
875

 
Tax effect of adjustments (1)
(1,125
)
 
1,198

 
(2,104
)
 
(2,718
)
 
Adjusted net income
$
3,737

 
$
2,582

 
$
7,577

 
$
7,151

 
 
 
 
 
 
 
 
 
 
(1) Adjusted net income assumes a long-term projected tax rate of 40%
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share:
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
GAAP earnings per diluted share
$
0.05

 
$
0.10

 
$
0.10

 
$
0.06

 
Share-based compensation
0.06

 
(0.08
)
 
0.11

 
0.15

 
Acquisition-related intangible amortization

 
0.01

 

 
0.02

 
Tax effect of adjustments (1)
(0.03
)
 
0.03

 
(0.05
)
 
(0.06
)
 
Adjusted earnings per diluted share
$
0.08

 
$
0.06

 
$
0.17

 
$
0.17

 
 
 
 
 
 
 
 
 
 
Diluted share count
44,957

 
42,703

 
44,842

 
42,703

 
 
 
 
 
 
 
 
 
 
(1) Adjusted earnings per diluted share assumes a long-term projected tax rate of 40%
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP net cash provided by (used in) operating activities to free cash flow:
 
 
 
 
 
 
 
 
 
 
 
3 months ended:
 
6 months ended:
 
 
6/30/2017
 
6/30/2016
 
6/30/2017
 
6/30/2016
 
Net cash provided by (used in) operating activities
$
7,110

 
$
(73,337
)
 
$
20,681

 
$
(65,265
)
 
Purchases of property and equipment
(257
)
 
(1,845
)
 
(949
)
 
(4,136
)
 
Additions to capitalized software
(353
)
 
(1,321
)
 
(984
)
 
(3,504
)
 
Free cash flow (1)
$
6,500

 
$
(76,503
)
 
$
18,748

 
$
(72,905
)
 
 
 
 
 
 
 
 
 
 
(1) Includes share-based compensation liability payments of:
$

 
$
(78,494
)
 
$

 
$
(85,930
)