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Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Net revenues (note 10) $ 78,953 $ 95,795 [1],[2]
Cost of revenues (note 10)    
Cost of revenues 51,932 68,972 [2]
Network expenses 2,395 2,574 [2]
Depreciation of property and equipment 1,801 1,131 [2]
Amortization of intangible assets 174 499 [2]
Total cost of revenues 56,302 73,176 [2],[3]
Gross profit 22,651 22,619 [2]
Expenses:    
Sales and marketing 8,741 8,365 [2]
Technical operations and development 2,523 2,095 [2]
General and administrative 4,448 4,530 [2]
Depreciation of property and equipment 124 101 [2]
Amortization of intangible assets (note 6) 1,866 1,832 [2]
Loss (gain) on currency forward contracts (note 5) (79) (3) [2]
Total expenses 17,623 16,920 [2]
Income from operations 5,028 5,699 [2]
Other income (expenses):    
Interest expense, net (972) (896) [2]
Other income, net 124 [2]
Total other income (expenses) (972) (772) [2]
Income before provision for income taxes 4,056 4,927 [2]
Provision for income taxes (note 8) 1,257 1,183
Net income before redeemable non-controlling interest 2,799 3,744 [2]
Redeemable non-controlling interest (26) [2]
Net income attributable to redeemable non-controlling interest 26 [2]
Net income for the period 2,799 3,744 [2],[4]
Other comprehensive income, net of tax    
Unrealized income (loss) on hedging activities (note 5) 549 17 [2]
Net amount reclassified to earnings (note 5) 61 [2]
Other comprehensive income (loss) net of tax (expense) recovery of ($194) and ($6) for the periods ended March 31, 2019 and March 31, 2018, respectively (note 5) 610 17
Comprehensive income, net of tax for the period $ 3,409 $ 3,761 [2]
Basic earnings per common share (note 9) (in dollars per share) $ 0.26 $ 0.35 [2]
Shares used in computing basic earnings per common share (note 9) (in shares) 10,634,842 10,588,718 [2]
Diluted earnings per common share (note 9) (in dollars per share) $ 0.26 $ 0.35 [2]
Shares used in computing diluted earnings per common share (note 9) (in shares) 10,835,897 10,792,613 [2]
[1] As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5th, 2018, recognized revenue for the three months ended March 31, 2018 includes $14.6 million related to previously deferred revenue for these names.
[2] The Company has initially applied ASC 2016-02 (Topic 842) using the modified retrospective method. Under this method, the comparative information is not restated.
[3] As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5th, 2018, recognized cost of sales for the three months ended March 31, 2018 includes $14.5 million related to prepaid costs for these names.
[4] The Company has initially applied ASC 2016-02 (Topic 842) using the modified retrospective method. Under this method, the comparative information is not restated.