LOGM 2017 Annual Report

The Company evaluates its uncertain tax positions based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings is more likely than not to be realized. Potential interest and penal- ties associated with any uncertain tax positions are recorded as a component of income tax expense. Advertising Costs — The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2015, 2016 and 2017 was approximately $35.8 million, $29.2 million and $100.2 million, respectively, which consisted primarily of online paid searches, banner advertising and other online marketing and is included in sales and marketing expense in the accompanying consolidated statements of operations. Segment Data — Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision-maker or decision making group when making decisions regarding resource allocation and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company, whose management uses consolidated financial information in determining how to allocate resources and assess performance, has determined that it operates in one segment. The Company’s revenue by geography (based on customer address) is as follows (in thousands): Years Ended December 31, 2015 2016 2017 Revenues: United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $191,300 $240,469 $755,220 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,662 25,738 51,328 International — all other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,638 69,861 183,238 Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $271,600 $336,068 $989,786 Amounts for the years ended December 31, 2015 and 2016 presented in the Company’s revenue by product grouping table below include reclassifications between product groups to conform to the current year classi- fication of the Company’s products (in thousands): Years Ended December 31, 2015 2016 2017 Revenues: Communications and C ollaboration . . . . . . . . . . . . . . . . . . . . . . . $ 28,751 $ 40,616 $527,412 Identity and access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,194 196,952 289,181 Customer engagement and support . . . . . . . . . . . . . . . . . . . . . . . 90,655 98,500 173,193 Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $271,600 $336,068 $989,786 The Company’s long-lived assets by geography are as follows (in thousands): Years Ended December 31, 2016 2017 Long-lived assets: United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,872 $78,342 Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,015 3,484 International — all other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,980 10,328 Total long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,867 $92,154 Net Income Per Share — Basic net income per share is computed by dividing net income by the weighted aver- age number of common shares outstanding for the period. Diluted net income per share is computed by dividing 64