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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2011	Aug. 03, 2011
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Entity Registrant Name	MARCHEX INC
Entity Central Index Key	0001224133
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Common Class A [Member]
Entity Common Stock, Shares Outstanding		9,811,882
Common Class B [Member]
Entity Common Stock, Shares Outstanding		27,093,401

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 28,332,606	$ 37,328,052
Accounts receivable, net	29,712,121	20,213,886
Prepaid expenses and other current assets	3,236,986	3,567,504
Refundable taxes	2,029,371	3,248,908
Deferred tax assets	1,159,456	868,629
Total current assets	64,470,540	65,226,979
Property and equipment, net	5,523,137	4,709,907
Deferred tax assets	46,312,192	50,768,525
Intangible and other assets, net	1,676,810	2,070,217
Goodwill	85,337,482	35,337,428
Intangible assets from acquisitions, net	11,458,361	1,576,687
Total assets	214,778,522	159,689,743
Liabilities and Stockholders' Equity
Accounts payable	15,971,307	11,165,616
Accrued expenses and other current liabilities	8,630,684	5,106,021
Deferred acquisition payment	17,307,828
Deferred revenue	1,801,270	1,649,851
Total current liabilities	43,711,089	17,921,488
Deferred acquisition payment	17,549,384
Other non-current liabilities	2,081,735	2,076,332
Total liabilities	63,342,208	19,997,820
Stockholders' equity:
Treasury stock	(2,847,026)	(1,360,238)
Additional paid-in capital	293,918,830	281,421,696
Accumulated deficit	(140,011,507)	(140,729,343)
Total stockholders' equity	151,436,314	139,691,923
Total liabilities and stockholders' equity	214,778,522	159,689,743
Common Class A [Member]
Stockholders' equity:
Common stock	102,544	105,006
Common Class B [Member]
Stockholders' equity:
Common stock	$ 273,473	$ 254,802

Condensed Consolidated Statements of Operations - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Jun. 30, 2011

Jun. 30, 2010

Revenue

$ 38,760,783

$ 21,393,353

$ 67,840,638

$ 45,395,334

Expenses:

Service costs (1)

^[1]

21,700,459

13,655,544

38,372,841

26,305,045

Sales and marketing (1)

^[1]

3,933,920

3,511,375

6,627,648

7,422,083

Product development (1)

^[1]

5,937,336

4,326,330

10,826,446

8,288,614

General and administrative (1)

^[1]

6,138,665

4,289,559

11,294,100

8,125,820

Amortization of intangible assets from acquisitions (2)

^[2]

1,619,593

710,907

2,083,795

1,415,373

Acquisition related costs

1,049,117

1,451,240

Total operating expenses

40,379,090

26,493,715

70,656,070

51,556,935

Gain on sales and disposals of intangible assets, net

2,712,762

690,244

4,625,436

2,017,548

Income (loss) from operations

1,094,455

(4,410,118)

1,810,004

(4,144,053)

Other income (expense):

Interest income

6,749

19,060

137,514

37,665

Interest and line of credit expense

(182,815)

(26,815)

(209,065)

(52,638)

Other

1,574

44,700

(56)

46,258

Total other income (expense)

(174,492)

36,945

(71,607)

31,285

Income (loss) before provision for income taxes

919,963

(4,373,173)

1,738,397

(4,112,768)

Income tax expense (benefit)

778,567

(1,245,557)

1,020,563

(917,378)

Net income (loss)

141,396

(3,127,616)

717,834

(3,195,390)

Dividends paid to participating securities

(61,233)

(48,115)

(124,738)

(91,689)

Net income (loss) applicable to common stockholders

$ 80,163

$ (3,175,731)

$ 593,096

$ (3,287,079)

Basic and diluted net income (loss) per share applicable to Class A and Class B common stockholders

$ 0.00

$ (0.10)

$ 0.02

$ (0.10)

Dividends paid per share

$ 0.02

$ 0.04

Common Class A [Member]

Shares used to calculate basic net income (loss) per share applicable to common stockholders

Shares used to calculate basic net income (loss) per share applicable to common stockholders

9,999,605

10,786,403

10,117,082

10,810,901

Shares used to calculate diluted net income (loss) per share applicable to common stockholders

Shares used to calculate diluted net income (loss) per share applicable to common stockholders

9,999,605

10,786,403

10,117,082

10,810,901

Common Class B [Member]

Shares used to calculate basic net income (loss) per share applicable to common stockholders

Shares used to calculate basic net income (loss) per share applicable to common stockholders

23,523,112

21,995,133

22,850,262

22,077,331

Shares used to calculate diluted net income (loss) per share applicable to common stockholders

Shares used to calculate diluted net income (loss) per share applicable to common stockholders

35,045,334

32,781,536

34,674,941

32,888,232

[1]	(1) Excludes amortization of intangible assets from acquisitions
[2]	(2) Components of amortization of intangible assets from acquisitions: Service costs $ 1,415,373 $ 1,777,964 $ 710,907 $ 1,313,762 Sales and marketing — 292,308 — 292,308 General and administrative — 13,523 — 13,523 Total $ 1,415,373 $ 2,083,795 $ 710,907 $ 1,619,593

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Components of amortization of intangible assets from acquisitions:
Service costs	$ 1,313,762	$ 710,907	$ 1,777,964	$ 1,415,373
Sales and marketing	292,308		292,308
General and administrative	13,523		13,523
Total	$ 1,619,593	$ 710,907	$ 2,083,795	$ 1,415,373

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income (loss)	$ 717,834	$ (3,195,390)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and depreciation	4,141,056	4,069,133
Accretion of interest expense	161,829
Gain on sales of fixed assets, net	(38)	(18)
Gain on sales and disposals of intangible assets, net	(4,625,436)	(2,017,548)
Allowance for doubtful accounts and advertiser credits	471,525	631,578
Stock-based compensation	7,456,449	4,981,020
Deferred income taxes, net of acquisition	734,101	1,763,184
Change in certain assets and liabilities, net of acquisition:
Accounts receivable, net	(5,342,968)	713,507
Refundable taxes	1,238,108	(1,703,600)
Prepaid expenses, other current assets and other assets	26,564	(1,059,293)
Accounts payable	1,490,807	(231,099)
Accrued expenses and other current liabilities	1,666,729	(179,043)
Deferred revenue	81,716	(66,978)
Other non-current liabilities	5,405	564,880
Net cash provided by operating activities	8,223,681	4,270,333
Cash flows from investing activities:
Purchases of property and equipment	(1,989,711)	(1,957,990)
Cash paid for acquisition, net of cash acquired	(15,801,314)
Proceeds from sales of property and equipment	2,004	18
Proceeds from sales of intangible assets	4,655,775	2,017,914
Purchases of intangible assets	(55,888)	(28,229)
Net cash provided by (used in) investing activities	(13,189,134)	31,713
Cash flows from financing activities:
Capital lease obligation principal payments		(4,337)
Common stock dividend payments	(1,454,980)	(1,409,528)
Repurchase of Class B common stock	(3,098,582)	(3,652,768)
Proceeds from exercises of stock options and issuance of restricted stock	511,959	21,830
Proceeds from employee stock purchase plan	11,610	8,227
Net cash used in financing activities	(4,029,993)	(5,036,576)
Net increase in cash and cash equivalents	(8,995,446)	(734,530)
Cash and cash equivalents at beginning of period	37,328,052	33,638,002
Cash and cash equivalents at end of period	28,332,606	32,903,472
Supplemental disclosure of cash flow information:
Cash (received) paid during the period for income taxes, net of refunds	(744,473)	$ (976,963)
Non-cash investing and financing activities:
Fair value of Class B common stock issued in connection with acquisition	7,602,508
Deferred payments related to acquisition	$ 34,695,382

Description of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2011

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

(1) Description of Business and Basis of Presentation

Marchex, Inc. (the "Company") was incorporated in the state of Delaware on January 17, 2003. The Company is a call advertising and small business marketing company. The Company delivers call and click-based advertising products to tens of thousands of advertisers. The accompanying unaudited condensed consolidated financial statements of Marchex, Inc. and its wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011, or for any other period. The balance sheet at December 31, 2010 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. These condensed consolidated financial statements and notes should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC.

The condensed consolidated financial statements include the accounts of Marchex and its wholly-owned subsidiaries. Acquisitions are included in the Company's consolidated financial statements as of and from the date of acquisition. All inter-company transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the condensed consolidated financial statements in the prior period to conform to the current period presentation.

The Company's condensed consolidated financial statements presented include the condensed consolidated balance sheets as of December 31, 2010 and June 30, 2011, the condensed consolidated statements of operations for the three and six months ended June 30, 2010 and 2011 and the condensed consolidated statements of cash flows for the six months ended June 30, 2010 and 2011.

Acquisition

In April 2011, the Company acquired 100% of the stock of Jingle Networks, Inc. ("Jingle"), a provider of mobile voice search performance advertising and technology solutions in North America in a merger. See Note 11 for further discussion.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Name FASB Interpretation (FIN)
-Publisher FASB
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Significant Accounting Policies

6 Months Ended

Jun. 30, 2011

Significant Accounting Policies

Significant Accounting Policies

(2) Significant Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These judgments are difficult as matters that are inherently uncertain directly impact their valuation and accounting. Actual results may vary from management's estimates and assumptions.

Deferred Acquisition Payment

The Company's deferred acquisition payments represent consideration payable related to a business combination, which may be paid in either cash or shares of the Company's Series B common stock at the Company's discretion. Any amounts paid in common stock will increase by 5%. The deferred acquisition payments were originally recognized at fair value at the date of the business combination and are recorded as liabilities on the balance sheet. Interest expense on the principal amounts due is accreted each period using the effective interest rate method.

There have been no changes to the Company's significant accounting policies as disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC.

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs ("ASU 2011-04"). ASU 2011-04 amended Accounting Standards Codification Topic 820 ("ASC 820") to converge the fair value measurement guidance in U.S. GAAP and International Financial Reporting Standards ("IFRSs"). Some of the amendments clarify the application of existing fair value measurement requirements, while other amendments change a particular principle in ASC 820. In addition, ASU 2011-04 requires additional fair value disclosures. The amendments are to be applied prospectively and are effective for annual periods beginning after December 15, 2011. We are currently evaluating the effect that the provisions of ASU 2011-04 will have on our consolidated financial statements.

Revenues

The following table presents the Company's revenues, by revenue source, for the periods presented:


	Six months ended June 30,				Three months ended June 30,
	2010		2011		2010		2011
Partner and Other Revenue Sources	$	31,894,985	$	57,061,097	$	14,933,243	$	33,319,728
Proprietary Web site Traffic Sources		13,500,349		10,779,541		6,460,110		5,441,055

Total Revenue	$	45,395,334	$	67,840,638	$	21,393,353	$	38,760,783

The Company's partner network revenues are primarily generated using third-party distribution networks to deliver the advertisers' listings. The distribution network includes mobile and online search engines and applications, directories, destination sites, shopping engines, third-party Internet domains or web sites, other targeted Web-based content, mobile carriers and other offline sources. The Company generates revenue upon delivery of qualified and reported phone calls or click-throughs to our advertisers or to advertising services providers' listings. The Company pays a revenue share to the distribution partners to access their mobile, online, offline and other user traffic. Other revenues include the Company's call provisioning and call tracking services, presence management services, campaign management services and natural search optimization services.

The Company's proprietary web site traffic revenues are generated from the Company's portfolio of owned web sites which are monetized with pay-for-call or pay-per-click listings that are relevant to the web sites, as well as other forms of advertising, including banner advertising and sponsorships. When an online user navigates to one of the Company's owned and operated web sites and calls or clicks on a particular listing or completes the specified action, the Company receives a fee.

Stock-based Compensation Plans

6 Months Ended

Jun. 30, 2011

Stock-based Compensation Plans

Stock-based Compensation Plans

(3) Stock-based Compensation Plans

The Company accounts for stock-based compensation for employees and non-employees under the fair value method.

Stock-based compensation expense was included in the following operating expense categories as follows:


	Six months ended June 30,				Three months ended June 30,
	2010		2011		2010		2011
Service costs	$	384,632	$	598,946	$	205,149	$	313,968
Sales and marketing		381,094		639,152		214,437		420,311
Product development		460,176		704,572		251,971		390,556
General and administrative		3,755,118		5,513,779		1,922,140		2,820,570

Total stock-based compensation	$	4,981,020	$	7,456,449	$	2,593,697	$	3,945,405

The per share fair value of time-vested stock options granted during the three and six months ended June 30, 2010 and 2011 was determined on the date of grant using the Black-Scholes option-pricing model. The following weighted average assumptions were used in determining the fair value of time-vested stock option grants for the periods presented:


	Six months ended June 30,						Three months ended June 30,
	2010			2011			2010			2011
Expected life (in years)		4.6			4.0			5.4			4.0
Risk-free interest rate		1.79	%		1.62	%		1.40	%		1.29	%
Expected volatility		66	%		68	%		66	%		69	%
Expected dividend yield		1.1	%		0.91	%		1.1	%		0.91	%

During 2010, the Company issued stock options that have vesting based on a combination of certain service and market conditions. The compensation costs and derived service periods for stock option grants with vesting based on a combination of service and market conditions are estimated using the binomial lattice model to determine the fair value and a Monte Carlo simulation to determine the derived service period. The risk-free interest rate is based on the 10 year bond rate as of the valuation date based on the contractual life of the option. No stock options were granted during the six months ended June 30, 2011 that have vesting based on a combination of certain service and market conditions. During the six months ended June 30, 2011, 102,000 stock options vested that met a combination of certain service and market conditions.

Stock option activity during the six months ended June 30, 2011 is summarized as follows:


	Shares			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
Balance at December 31, 2010		6,410,548		$	8.48		7.20	$	14,340,943
Options granted		313,300			8.96
Options forfeited		(133,199	)		6.51
Options expired		(224,375	)		11.49
Options exercised		(128,759	)		3.92

Balance at June 30, 2011 (1)		6,237,515		$	8.46		7.01	$	12,523,401

(1)	Includes 765,000 options that have vesting based on a combination of service and market conditions in which 102,000 options have met vesting conditions.

The Company issues restricted stock to employees for future services and in connection with acquisitions. Restricted stock awards grants are generally measured at fair value on the date of grant based on the number of awards granted and the quoted price of the Company's common stock. Restricted shares issued are accounted for under FASB ASC 718 using the straight-line method net of estimated forfeitures.

During 2010, the Company issued restricted stock units which entitle the holder to receive one share of the Company's Class B common stock upon satisfaction of a combination of certain service and market conditions. The compensation costs and derived service periods for restricted stock units with vesting based on a combination of service and market conditions are estimated using the binomial lattice model to determine the fair value and a Monte Carlo simulation to determine the derived service period. No restricted stock units were granted during the six months ended June 30, 2011 that have vesting based on a combination of certain service and market conditions. During the six months ended June 30, 2011, 34,000 shares of restricted stock units vested that met a combination of certain service and market conditions.

Restricted stock awards and restricted stock units activity during the six months ended June 30, 2011 is summarized as follows:


	Shares			Weighted average grant date fair value
Unvested balance at December 31, 2010		3,468,750		$	8.13
Granted		690,247			7.61
Vested (1)		(479,375	)		4.69
Forfeited		(2,500	)		3.57

Unvested balance at June 30, 2011 (2)		3,677,122		$	8.48

(1)	Includes 34,000 of restricted stock units that have met the vesting conditions.

(2)	Includes 221,000 restricted stock units that have vesting based on a combination of service and market conditions.

The following table summarizes stock-based compensation expense related to all stock-based awards under the fair value method during the three and six months ended June 30, 2010 and 2011:


	Six months ended June 30,				Three months ended June 30,
	2010		2011		2010		2011
Total stock-based compensation included in net income (loss)	$	4,981,000	$	7,456,000	$	2,594,000	$	3,945,000

Income tax benefit related to stock-based compensation included in net income (loss)	$	1,364,000	$	2,222,000	$	706,000	$	1,186,000

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2011

Net Income (Loss) Per Share

Net Income (Loss) Per Share

(4) Net Income (Loss) Per Share

We compute net income (loss) per share of Class A and Class B common stock using the two class method. Under the provisions of the two class method, basic net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the diluted net income (loss) per share of Class B common stock assumes the conversion of Class A common stock to Class B common stock, while the diluted net income (loss) per share of Class A common stock does not assume the conversion of those shares.

In accordance with the two class method, the undistributed earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common shares and the restricted shares as if the earnings for the year had been distributed. Considering the terms of the Company's charter which provides that, if and when dividends are declared on our common stock in accordance with Delaware General Corporation Law, equivalent dividends shall be paid with respect to the shares of Class A common stock and Class B common stock and that both classes of common stock have identical dividend rights and would share equally in our net assets in the event of liquidation, we have allocated undistributed losses on a proportionate basis. Additionally, the Company has paid dividends equally to both classes of common stock and the unvested restricted shares since it initiated a quarterly cash dividend in November 2006.

Instruments granted in unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities prior to vesting. As such, the Company's restricted stock awards are considered participating securities for purposes of calculating earnings per share. Under the two class method, dividends paid on unvested restricted stock are allocated to these participating securities and therefore impacts the calculation of amounts allocated to common stock.

The following table includes net income (loss) applicable to common stockholders used to compute basic net income (loss) per share for the periods ended:


	Six months ended June 30,
	2010						2011
	Class A			Class B			Class A		Class B
Numerator:
Net income (loss)	$	(1,080,517	)	$	(2,114,873	)	$	182,011	$	535,823
Dividends paid to participating securities					(91,689	)				(124,738	)

Net income (loss) applicable to common stockholders	$	(1,080,517	)	$	(2,206,562	)	$	182,011	$	411,085

Denominator:
Weighted average number of shares outstanding used to calculate basic net income (loss) per share		10,810,901			22,077,331			10,117,082		22,850,262


Basic net income (loss) per share applicable to common stockholders	$	(0.10	)	$	(0.10	)	$	0.02	$	0.02

	Three months ended June 30,
	2010						2011
	Class A			Class B			Class A		Class B
Numerator:
Net income (loss)	$	(1,044,939	)	$	(2,082,677	)	$	23,912	$	117,484
Dividends paid to participating securities					(48,115	)				(61,233	)

Net income (loss) applicable to common stockholders	$	(1,044,939	)	$	(2,130,792	)	$	23,912	$	56,251

Denominator:
Weighted average number of shares outstanding used to calculate basic net income (loss) per share		10,786,403			21,995,133			9,999,605		23,523,112


Basic net income (loss) per share applicable to common stockholders	$	(0.10	)	$	(0.10	)	$	0.00	$	0.00

The following table calculates net loss to diluted net income (loss) applicable to common stockholders used to compute diluted net income (loss) per share for the periods ended:


	Six months ended June 30,
	2010						2011
	Class A			Class B			Class A		Class B
Numerator:
Net income (loss)	$	(1,080,517	)	$	(2,114,873	)	$	182,011	$	535,823
Dividends paid to participating securities					(91,689	)				(124,738	)
Reallocation of net income (loss) for Class A shares as a result of conversion of Class A to Class B shares					(1,080,517	)				182,011

Net income (loss) applicable to common stockholders	$	(1,080,517	)	$	(3,287,079	)	$	182,011	$	593,096

Denominator:
Weighted average number of shares outstanding used to calculate basic net income (loss) per share		10,810,901			22,077,331			10,117,082		22,850,262

Weighted average stock options and warrants and common shares subject to repurchase or cancellation										1,707,597

Conversion of Class A to Class B common shares outstanding					10,810,901					10,117,082

Weighted average number of shares outstanding used to calculate diluted net income (loss) per share		10,810,901			32,888,232			10,117,082		34,674,941


Diluted net income (loss) per share applicable to common stockholders	$	(0.10	)	$	(0.10	)	$	0.02	$	0.02

	Three months ended June 30,
	2010						2011
	Class A			Class B			Class A		Class B
Numerator:
Net income (loss)	$	(1,044,939	)	$	(2,082,677	)	$	23,912	$	117,484
Dividends paid to participating securities					(48,115	)				(61,233	)
Reallocation of net income (loss) for Class A shares as a result of conversion of Class A to Class B shares					(1,044,939	)				23,912

Net income (loss) applicable to common stockholders	$	(1,044,939	)	$	(3,175,731	)	$	23,912	$	80,163

Denominator:
Weighted average number of shares outstanding used to calculate basic net income (loss) per share		10,786,403			21,995,133			9,999,605		23,523,112

Weighted average stock options and warrants and common shares subject to repurchase or cancellation										1,522,617

Conversion of Class A to Class B common shares outstanding					10,786,403					9,999,605

Weighted average number of shares outstanding used to calculate diluted net income (loss) per share		10,786,403			32,781,536			9,999,605		35,045,334


Diluted net income (loss) per share applicable to common stockholders	$	(0.10	)	$	(0.10	)	$	0.00	$	0.00

The weighted average number of shares used to calculate the diluted net income (loss) per share includes the weighted average number of shares from the assumed conversion of Class A common stock to Class B common stock.

The computation of diluted net income (loss) per share excludes the following because their effect would be anti-dilutive:

•

For the three and six months ended June 30, 2010, outstanding options to acquire 4,574,039 and 4,388,894 shares of Class B common stock with a weighted average exercise price of $9.81 and $10.08 per share, respectively. For the three and six months ended June 30, 2011, outstanding options to acquire 2,964,906 and 2,932,018 shares of Class B common stock with a weighted average exercise price of $12.23 and $12.41 per share, respectively.

•

For the three and six months ended June 30, 2010, 2,741,000 shares of unvested Class B restricted common shares issued to employees and in connection with acquisitions. For the three and six months ended June 30, 2011, 3,456,000 shares of unvested Class B restricted common shares issued to employees and in connection with acquisitions. Unvested shares were excluded from the denominator of the computation of basic net loss per share.

•

For the three and six months ended June 30, 2010, 405,000 stock options and 135,000 restricted stock units with vesting based on satisfaction of certain service and market conditions. For the three and six months ended June 30, 2011, 663,000 stock options and 221,000 restricted stock units with vesting based on satisfaction of certain service and market conditions. 663,000 stock options and 221,000 restricted stock units with vesting based on satisfaction of certain service and market conditions were excluded from the denominator of the computation of basic net income per share for the three months ended June 30, 2011.

•

For the three and six months ended June 30, 2011, 4,214,071 shares of Class B common stock based on the June 30, 2011 closing stock price that may be issued in lieu of cash for the deferred payments related to the acquisition of Jingle using the "if converted" method. See Note 11 for further discussion.

Concentrations

6 Months Ended

Jun. 30, 2011

Concentrations

Concentrations

(5) Concentrations

The Company maintains substantially all of their cash and cash equivalents with one financial institution and are all considered at Level 1 fair value with observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

A significant portion of the Company's revenue earned from advertisers is generated through arrangements with distribution partners. The Company may not be successful in renewing any of these agreements, or if they are renewed, they may not be on terms as favorable as current agreements. The Company may not be successful in entering into agreements with new distribution partners or advertisers on commercially acceptable terms. In addition, several of these distribution partners or advertisers may be considered potential competitors.

There were no distribution partners representing more than 10% of consolidated revenue for the three and six months ended June 30, 2010 and 2011.

The advertisers representing more than 10% of consolidated revenue are as follows:


	Six months ended June 30,						Three months ended June 30,
	2010			2011			2010			2011
Advertiser A		24	%		30	%		18	%		29	%

Advertiser A is also a distribution partner.

The outstanding receivable balance for each advertiser representing more than 10% of accounts receivable is as follows:


	At December 31, 2010			At June 30, 2011
Advertiser A		40	%		40	%
Advertiser B		11	%		*

*	Less than 10% of accounts receivable.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13531-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

+ Details

Segment Reporting and Geographic Information

6 Months Ended

Jun. 30, 2011

Segment Reporting and Geographic Information

Segment Reporting and Geographic Information

(6) Segment Reporting and Geographic Information

Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally for the Company's management. For all periods presented the Company operated as a single segment, principally in domestic markets providing digital advertiser transaction services to enterprises.

Revenues from advertisers by geographical areas are tracked on the basis of the location of the advertiser. The vast majority of the Company's revenue and accounts receivable are derived from domestic sales to advertisers engaged in various mobile, online and other digital activities.

Revenues by geographic region are as follows (in percentages):


	Six months ended June 30,						Three months ended June 30,
	2010			2011			2010			2011
United States		96	%		94	%		96	%		94	%
Canada		3	%		5	%		4	%		5	%
Other countries		*			*			*			*

		100	%		100	%		100	%		100	%

*	Less than 1% of revenue.

Property and Equipment

6 Months Ended

Jun. 30, 2011

Property and Equipment

Property and Equipment

(7) Property and Equipment

Property and equipment consisted of the following:


	At December 31, 2010			At June 30, 2011
Computer and other related equipment	$	10,709,539		$	12,106,298
Purchased and internally developed software		6,202,642			6,530,755
Furniture and fixtures		1,129,410			1,211,476
Leasehold improvements		1,665,030			1,770,213

	$	19,706,621		$	21,618,742
Less: accumulated depreciation and amortization		(14,996,714	)		(16,095,605	)

Property and equipment, net	$	4,709,907		$	5,523,137

The Company has capitalized certain costs of internally developed software for internal use. The estimated useful life of costs capitalized is evaluated for each specific project. Amortization begins in the period in which the software is ready for its intended use.

Depreciation and amortization expense, related to property and equipment was approximately $737,000 and $706,000 for the three months ended June 30, 2010 and 2011, respectively and was $1.5 million and $1.4 million for the six months ended June 30, 2010 and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Commitments

6 Months Ended

Jun. 30, 2011

Commitments

Commitments

(8) Commitments

The Company has commitments for future payments related to office facilities leases and other contractual obligations. The Company leases its office facilities under operating lease agreements expiring through 2018. Certain of these lease agreements have free or escalating rent payment provisions or fund certain leasehold improvements which the Company accounts for as a lease incentive. The Company recognizes rent expense under such agreements on a straight-line basis over the lease term with any lease incentive amortized as a reduction of rent expense over the lease term. The Company also has other contractual obligations expiring over varying time periods through 2015. Other contractual obligations primarily relate to minimum contractual payments due to distribution partners and other outside service providers.


	Facilities operating leases		Other contractual obligations		Total
2011	$	1,004,581	$	1,472,791	$	2,477,372
2012		2,123,980		1,751,786		3,875,766
2013		2,235,148		404,231		2,639,379
2014		2,287,470		39,655		2,327,125
2015		2,225,694		1,827		2,227,521
2016 and after		5,176,332				5,176,332

Total minimum payments	$	15,053,205	$	3,670,290	$	18,723,495

Rent expense incurred by the Company was approximately $432,000 and $547,000 for the three months ended June 30, 2010 and 2011, respectively, and was $865,000 and $1.0 million for the six months ended June 30, 2010 and 2011, respectively.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Credit Agreement

6 Months Ended

Jun. 30, 2011

Credit Agreement

Credit Agreement

(9) Credit Agreement

In April 2008, the Company entered into a credit agreement providing for a senior secured $30 million revolving credit facility ("Credit Agreement"). Interest on outstanding balances under the Credit Agreement will accrue at LIBOR plus an applicable margin rate, as determined under the agreement and there is an unused commitment fee. The Credit Agreement contains certain customary representations and warranties, financial covenants, events of default and is secured by substantially all of the assets of the Company. During the first quarter of 2011, the Company signed an amendment to the Credit Agreement which extended the maturity period through to April 1, 2014 and increased the applicable margin rate by 25 basis points. As of June 30, 2011, the Company had no borrowings under the Credit Agreement.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Contingencies and Taxes

6 Months Ended

Jun. 30, 2011

Contingencies and Taxes

Contingencies and Taxes

(10) Contingencies and Taxes

(a) Contingencies

The Company is involved in legal and administrative proceedings and claims of various types from time to time. While any litigation contains an element of uncertainty, the Company is not aware of any legal proceedings or claims which are pending that the Company believes, based on current knowledge, will have, individually or taken together, a material adverse effect on the Company's financial condition or results of operations or liquidity.

In some agreements to which we are a party, we have agreed to indemnification provisions of varying scope and terms with advertisers, vendors and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of agreements or representations and warranties made by the Company, services to be provided by the Company and intellectual property infringement claims made by third parties. As a result of these provisions, we may from time to time provide certain levels of financial support to our contract parties to seek to minimize the impact of any associated litigation in which they may be involved. To date, there have been no known events or circumstances that have resulted in any material costs related to these indemnification provisions and no liabilities therefore have been recorded in the accompanying unaudited condensed consolidated financial statements. However, the maximum potential amount of the future payments we could be required to make under these indemnification provisions could be material.

(b) Taxes

From time to time, various state, federal and other jurisdictional tax authorities undertake audits of the Company and its filings. In evaluating the exposure associated with various tax filing positions, the Company on occasion accrues charges for uncertain positions. The Company adjusts these contingencies in light of changing facts and circumstances, such as the outcome of tax audits. Audits of the Company's federal tax returns for 2005 through 2007 were concluded in the first quarter of 2011 which resulted in certain tax adjustments. In connection with these tax adjustments, the Company reduced its gross tax contingencies by $285,000 and recognized $181,000 of tax benefit in the first quarter of 2011. The Company does not have any significant interest or penalty accruals. The provision for income taxes includes the impact of contingency provisions and changes to contingencies that are considered appropriate. The Company files U.S. federal, certain U.S. states, and certain foreign tax returns. Generally, U.S. federal, U.S. state, and foreign tax returns filed for years after 2005 are within the statue of limitations and are under examination or may be subject to examination.

Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisitions

Acquisitions

(11) Acquisition

On April 7, 2011, the Company acquired 100% of the stock of Jingle, a provider of mobile voice search performance advertising and technology solutions in North America for the following consideration:

•

Approximately $15.8 million in cash, net of cash acquired, and 1,019,103 shares of the Company's Class B common stock paid at closing; and

•

Future consideration of (i) $17.6 million, net of certain working capital adjustments, on the first annual anniversary of the closing, and (ii) $18.0 million on the 18th month anniversary of closing, with the future consideration payable in either cash or shares of the Company's Class B common stock or some combination to be determined by the Company. Any shares issued in payment of the future consideration will be increased by 5%. The future consideration is recorded as current and long term deferred acquisition payments in the balance sheet.

Following the closing, the Company issued 462,247 shares of restricted stock at an aggregate value of approximately $3.3 million to employees of Jingle, subject to vesting for up to four years.

The Company accounted for the Jingle acquisition as a business combination. As a result of the acquisition, the Company added additional sources of mobile distribution to its call advertising network. The Company has already commenced integration of Jingle's operations, including sales activities, and accordingly, revenues of the acquired operations are not readily separable. However, revenues of customers existing prior to the acquisition, net of intercompany activities, were approximately $5.6 million and pretax losses were estimated to be $1.4 million for the three and six months ended June 30, 2011 from the date of acquisition.

The fair value of the shares of Class B common stock issued as part of the consideration paid was valued at $7.6 million using the Company's closing stock price of $7.46 per share at the acquisition date. The fair value of the future consideration payments of $34.7 million was discounted using a rate of approximately 2% based on the Company's incremental borrowing rate and is recorded on the balance sheet as deferred payments. Acquisition related costs of approximately $1.0 million and $1.5 million for the three and six months ended June 30, 2011, respectively, were primarily for professional fees to perform due diligence, historical audits and other procedures associated with the acquisition.

In connection with the acquisition, the Company acquired federal net operating loss carryforwards. The Tax Reform Act of 1986 limits the use of net operating loss (NOL) and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. The Company believes that such a change had occurred at Jingle, and that the utilization of the carryforwards is limited such that the majority of the NOL carryforwards will never be utilized. No deferred tax assets relating to these NOL carryforwards have been recorded, and the allocation of the purchase price is preliminary because we have not completed our analysis of limitations associated with these NOL carryfowards or our ability to utilize them.

A summary of the consideration for the acquisition is as follows:


Cash	$	16,562,734
Stock issued		7,602,508
Future consideration		34,695,382

Total	$	58,860,624

The following summarizes the preliminary allocation of the fair value of the assets acquired and the liabilities assumed at June 30, 2011:


Cash acquired	$	761,420
Accounts receivable		4,626,091
Current assets		61,037
Property and equipment		215,447
Other non-current assets		147,951
Intangible assets		11,965,600
Goodwill		50,018,624

Total assets acquired		67,796,170
Current liabilities		(5,504,141	)
Non-current deferred tax liabilities		(3,431,405	)

Total liabilities assumed		(8,935,546	)

Net assets acquired	$	58,860,624

The acquired intangible assets of approximately $12.0 million consist primarily of customer and partner relationships, technology, trademarks and patents which will be amortized over 12 to 36 months (weighted average of 2.4 years) using the straight line method. The goodwill and acquired intangible assets will not be deductible for federal tax purposes.

The following unaudited pro forma financial information summarizes the combined results of operations of the Company and Jingle and is based on the historical results of operations of the Company and Jingle. The pro forma information reflects the results of operations of the Company as if the acquisition of Jingle had taken place on January 1, 2010. The pro forma information includes adjustments for amortization of intangible assets, intercompany activity and accretion of interest expense related to the future consideration. The unaudited pro forma financial information is provided for information purposes only and is not necessarily indicative of the combined results that would have occurred had the acquisition taken place on the dates indicated, nor is it necessarily indicative of results that may occur in the future.


	Six months ended June 30,						Three months ended June 30,
	2010			2011			2010			2011
Revenue	$	52,416,982		$	73,620,961		$	25,312,488		$	39,130,760
Net loss		(10,311,179	)		(1,743,886	)		(5,829,108	)		(943,988	)
Net loss applicable to common stockholders		(10,422,868	)		(1,868,624	)		(5,877,223	)		(1,005,221	)

Intangible Assets from Acquisitions

6 Months Ended

Jun. 30, 2011

Intangible Assets from Acquisitions

Intangible Assets from Acquisitions

(12) Intangible Assets from Acquisitions

Intangible assets from acquisitions consisted of the following:


	As of December 31, 2010
	Gross Carrying Amount		Accumulated Amortization(1)			Net
Trademarks/domains	$	41,992,305	$	(40,415,618	)	$	1,576,687

	$	41,992,305	$	(40,415,618	)	$	1,576,687


	As of June 30, 2011
	Gross Carrying Amount		Accumulated Amortization(1)			Net
Advertiser relationship	$	3,070,000	$	(292,308	)	$	2,777,692
Patents		318,000		(73,516	)		244,484
Distribution partner relationship		4,830,000		(332,308	)		4,497,692
Non-compete agreements		58,600		(13,523	)		45,077
Trademarks/domains		42,722,751		(41,213,182	)		1,509,569
Acquired technology		2,760,000		(376,153	)		2,383,847

	$	53,759,351	$	(42,300,990	)	$	11,458,361

(1)	Excludes the original cost and accumulated amortization of fully-amortized intangible assets which were $41.7 million at December 31, 2010 and June 30, 2011, respectively.

Amortizable intangible assets are amortized on a straight-line basis over their useful lives. Amortization expense incurred by the Company was approximately $711,000 and $1.6 million for the three months ended June 30, 2010 and 2011, respectively, and was $1.4 million and $2.1 million for the six months ended June 30, 2010 and 2011, respectively. Based upon the current amount of intangible assets subject to amortization, the estimated amortization expense for the next five years is as follows: $3.4 million for the remainder of 2011, $4.7 million in 2012, $2.9 million in 2013 and $473,000 in 2014.

Goodwill

6 Months Ended

Jun. 30, 2011

Goodwill

Goodwill

(13) Goodwill

Changes in the carrying amount of goodwill for the six months ended June, 2011 are as follows:


Balance as of December 31, 2010	$	35,337,428
Jingle acquisition		50,018,624
Other		(18,570	)

Balance as of June 30, 2011	$	85,337,482

Goodwill is tested annually for impairment and is tested for impairment more frequently if events and circumstances indicate that the goodwill is more likely than not impaired. Events and circumstances considered in determining whether the carrying value of goodwill may be impaired include, but are not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; or a significant decline in the Company's stock price and/or market capitalization for a sustained period of time.

No impairment of the Company's goodwill and intangible assets have been identified to date in 2011. The current business environment is subject to evolving market conditions and requires significant management judgment to interpret the potential impact to our assumptions. To the extent that changes in the current business environment impact the Company's ability to achieve levels of forecasted operating results and cash flows, or should other events occur indicating the remaining carrying value of its assets might be impaired, the Company would test its goodwill and intangible assets for impairment and may recognize an impairment loss.

- Definition

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

+ References + Details

Intangible and Other Assets, Net

6 Months Ended

Jun. 30, 2011

Intangible and Other Assets, Net

Intangible and Other Assets, Net

(14) Intangible and other assets, net

Intangible and other assets, net consisted of the following:


	At December 31, 2010			At June 30, 2011
Internet domain names	$	15,683,320		$	15,536,614
Less accumulated amortization		(13,877,115	)		(14,315,410	)

Internet domain names, net		1,806,205			1,221,204
Other assets:
Registration fees, net		35,143			23,372
Other		228,869			432,234

Total intangibles and other assets, net	$	2,070,217		$	1,676,810

The Company capitalizes costs incurred to acquire domain names or URLs, which include the initial registration fees, to other intangible assets which excludes intangible assets acquired through business combinations. The capitalized costs are amortized over the expected useful life of the domain names on a straight-line basis.

The Company also capitalizes costs incurred to renew or extend the term of the domain names or URLs to prepaid expenses and other current assets or registration fees, net. The capitalized costs are amortized over the renewal or extended period on a straight-line basis. The total amount of costs incurred for the three and six months ended June 30, 2011 to renew or extend the term for domain names was $533,000 and $936,000, respectively. The weighted average renewal period for registration fees as of June 30, 2011 was approximately one year.

Amortization expense for internet domain names was approximately $391,000 and $283,000 for the three months ended June 30, 2010 and 2011, respectively, and was $853,000 and $612,000 for the six months ended June 30, 2010 and 2011, respectively. Based upon the current amount of domains subject to amortization, the estimated expense for the next five years is as follows: $573,000 for the remainder of 2011, $433,000 in 2012, $175,000 in 2013, $40,000 in 2014 and $0 thereafter.

Common Stock	6 Months Ended
Common Stock	Jun. 30, 2011
Common Stock
Common Stock	(15) Common Stock In April 2011, the Company's board of directors declared a regular quarterly dividend in the amount of $0.02 per share on the Company's Class A and Class B common stock. The Company paid these dividends on May 16, 2011 to the holders of record as of the close of business on May 6, 2011. The Company paid approximately $743,000. In November 2006, the Company's board of directors authorized a share repurchase program for the Company to repurchase up to 3 million shares of the Company's Class B common stock as well as the initiation of a quarterly cash dividend for the holders of the Class A and Class B common stock. The Company's board of directors have authorized increases to the share repurchase program for the Company to repurchase up to 11 million shares in the aggregate (less shares previously repurchased under the share repurchase program) of the Company's Class B common stock. Under the share repurchase program, repurchases may take place in the open market and in privately negotiated transactions and at times and in such amounts as the Company deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability, and other market conditions. This stock repurchase program does not have an expiration date and may be expanded, limited or terminated at any time without prior notice. During the six months ended June 30, 2011, the Company repurchased 409,000 shares of Class B common stock for approximately $3.1 million at an average stock price of $7.58 per share. The 409,000 shares have been recorded as treasury stock in the condensed consolidated balance sheet as of June 30, 2011. During the six months ended June 30, 2011, the Company's board of directors approved the retirement of approximately 253,000 shares of treasury stock. The excess of purchase price over par value of $1.6 million was recorded as a deduction to additional paid in capital on the condensed consolidated balance sheet.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

+ Details

Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events

(16) Subsequent Events

In July 2011, the Company's board of directors declared a regular quarterly dividend in the amount of $0.02 per share on the Company's Class A and Class B common stock. The Company will pay these dividends on August 15, 2011 to the holders of record as of the close of business on August 5, 2011. The Company expects to pay approximately $739,000 for these quarterly dividends.