| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|   | Delaware                 | 13-3895178                              |   |
|--------|--------------------------|-----------------------------------------|--------|
|   | (State of incorporation) | (I.R.S. Employer Identification Number) |   |

| Large accelerated filer  ̈                                     | Accelerated filer x              |
|--------------------------------------------------------------------|----------------------------------|
|                                                               |                             |
| Non-accelerated filer  ̈ (Do not check if a smaller reporting) | Smaller reporting company  ̈ |

----

|                                                                                                                                                             |   |                                                                                               |   | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                             |   |                                                                                               |   | Number |
|                                                                                                                                                             |   |                                                                                               |   |   |
|       PART I                 FINANCIAL INFORMATION |
|                                                                                                                                                             |   |                                                                                               |   |   |
| ITEM 1:                                                                                                                                                          |   | Financial Statements (Unaudited):                                                                  |   |   |
|                                                                                                                                                             |   | Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                   |   | 4      |
|                                                                                                                                                             |   | Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010 |   | 5      |
|                                                                                                                                                             |   | Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010 |   | 6      |
|                                                                                                                                                             |   | Notes to Condensed Consolidated Financial Statements                                               |   | 7      |
| ITEM 2:                                                                                                                                                          |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations        |   | 15     |
| ITEM 3:                                                                                                                                                          |   | Quantitative and Qualitative Disclosures About Market Risk                                         |   | 22     |
| ITEM 4:                                                                                                                                                          |   | Controls and Procedures                                                                            |   | 22     |
|                                                                                                                                                             |   |                                                                                               |   |   |
| PART II                OTHER INFORMATION                                         |
|                                                                                                                                                             |   |                                                                                               |   |   |
| ITEM 1:                                                                                                                                                          |   | Legal Proceedings                                                                                  |   | 23     |
| ITEM1A:                                                                                                                                                          |   | Risk Factors                                                                                       |   | 23     |
| ITEM 2:                                                                                                                                                          |   | Unregistered Sales of Equity Securities and Use of Proceeds                                        |   | 23     |
| ITEM 6:                                                                                                                                                          |   | Exhibits                                                                                           |   | 24     |
|                                                                                                                                                             |   |                                                                                               |   |   |
| SIGNATURES                                                                                                                                                       |   |                                                                                               |   | 25     |

----

----

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                      |   | March 31, |    |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                      |   | 2011           |    |   | 2010              |   |
|                                                                                                                                                                                      |   | (unaudited)    |    |   |              |   |
| ASSETS                                                                                                                                                                                    |   |           |    |   |              |   |
| Current assets:                                                                                                                                                                           |   |           |    |   |              |   |
| Cash and cash equivalents                                                                                                                                                                 |   | $              | 100,950 |   |              | $      | 139,586 |   |
| Accounts receivable, net of allowances of $1,942 and $1,894 at March 31, 2011 and December 31, 2010, respectively                                                                         |   |           | 12,220  |   |              |   | 11,219 |   |
| Inventories                                                                                                                                                                               |   |           | 4,438   |   |              |   | 3,735 |   |
| Deferred production and marketing costs                                                                                                                                                   |   |           | 1,269   |   |              |   | 1,059 |   |
| Deferred tax assets, current portion                                                                                                                                                      |   |           | 2,661   |   |              |   | 2,660 |   |
| Other current assets                                                                                                                                                                      |   |           | 6,133   |   |              |   | 5,268 |   |
| Total current assets                                                                                                                                                                      |   |           | 127,671 |   |              |   | 163,527 |   |
|                                                                                                                                                                                      |   |           |    |   |              |   |   |   |
| Property and equipment, net                                                                                                                                                               |   |           | 5,236   |   |              |   | 5,642 |   |
| Intangible assets, net                                                                                                                                                                    |   |           | 8,259   |   |              |   | 8,609 |   |
| Goodwill                                                                                                                                                                                  |   |           | 37,750  |   |              |   | 37,750 |   |
| Deferred tax assets                                                                                                                                                                       |   |           | 18,779  |   |              |   | 18,775 |   |
| Other assets                                                                                                                                                                              |   |           | 799     |   |              |   | 936 |   |
| Total assets                                                                                                                                                                              |   | $              | 198,494 |   |              | $      | 235,239 |   |
|                                                                                                                                                                                      |   |           |    |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                      |   |           |    |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                      |   |           |    |   |              |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                     |   | $              | 8,844   |   |              | $      | 10,389 |   |
| Deferred revenue                                                                                                                                                                          |   |           | 13,876  |   |              |   | 11,291 |   |
| Total current liabilities                                                                                                                                                                 |   |           | 22,720  |   |              |   | 21,680 |   |
| Deferred tax liabilities                                                                                                                                                                  |   |           | 3,090   |   |              |   | 3,088 |   |
| Other liabilities                                                                                                                                                                         |   |           | 143     |   |              |   | 95 |   |
| Total liabilities                                                                                                                                                                         |   |           | 25,953  |   |              |   | 24,863 |   |
|                                                                                                                                                                                      |   |           |    |   |              |   |   |   |
| Stockholders’ equity:                                                                                                                                                               |   |           |    |   |              |   |   |   |
| Preferred stock, $.001 par value; 5,000,000 shares authorized and 0 shares issued and outstanding as of March 31, 2011 and December 31, 2010.                                             |   |           | -       |   |              |   | - |   |
| Common stock, $.01 par value; 100,000,000 shares authorized and 31,605,684 and 34,268,275 shares issued and outstanding at March  31, 2011 and December 31, 2010, respectively. |   |           | 316     |   |              |   | 343 |   |
| Additional paid-in-capital                                                                                                                                                                |   |           | 191,677 |   |              |   | 214,050 |   |
| Accumulated deficit                                                                                                                                                                       |   |           | (19,452 | )      |              |   | (4,017 | ) |
| Total stockholders’ equity                                                                                                                                                          |   |           | 172,541 |   |              |   | 210,376 |   |
| Total liabilities and stockholders’ equity                                                                                                                                          |   | $              | 198,494 |   |              | $      | 235,239 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                         |   | Three Months Ended March 31, |   |
|------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                         |   | 2011                         |   |   | 2010 |   |
|                                                                         |   |                         |   |   |   |   |
| Net revenue:                                                                 |   |                         |   |   |   |   |
| Online sponsorship and advertising                                           |   | $                            | 16,769 |   |   | $ | 14,464 |   |
| Registry services                                                            |   |                         | 1,129  |   |   |   | 1,698 |   |
| Merchandise                                                                  |   |                         | 5,706  |   |   |   | 6,921 |   |
| Publishing and other                                                         |   |                         | 3,940  |   |   |   | 4,420 |   |
| Total net revenue                                                            |   |                         | 27,544 |   |   |   | 27,503 |   |
|                                                                         |   |                         |   |   |   |   |   |   |
| Cost of revenue:                                                             |   |                         |   |   |   |   |   |   |
| Online sponsorship and advertising                                           |   |                         | 565    |   |   |   | 467 |   |
| Merchandise                                                                  |   |                         | 3,369  |   |   |   | 3,883 |   |
| Publishing and other                                                         |   |                         | 1,321  |   |   |   | 1,487 |   |
| Total cost of revenue                                                        |   |                         | 5,255  |   |   |   | 5,837 |   |
|                                                                         |   |                         |   |   |   |   |   |   |
| Gross profit                                                                 |   |                         | 22,289 |   |   |   | 21,666 |   |
|                                                                         |   |                         |   |   |   |   |   |   |
| Operating expenses:                                                          |   |                         |   |   |   |   |   |   |
| Product and content development                                              |   |                         | 6,531  |   |   |   | 5,601 |   |
| Sales and marketing                                                          |   |                         | 10,504 |   |   |   | 9,163 |   |
| General and administrative                                                   |   |                         | 5,103  |   |   |   | 5,549 |   |
| Depreciation and amortization                                                |   |                         | 1,283  |   |   |   | 1,529 |   |
| Total operating expenses                                                     |   |                         | 23,421 |   |   |   | 21,842 |   |
|                                                                         |   |                         |   |   |   |   |   |   |
| Loss from operations                                                         |   |                         | (1,132 | ) |   |   | (176 | ) |
| Loss in equity interest                                                      |   |                         | (104   | ) |   |   | (115 | ) |
| Interest and other income, net                                               |   |                         | (1     | ) |   |   | 82 |   |
| Loss before income taxes                                                     |   |                         | (1,237 | ) |   |   | (209 | ) |
| Benefit for income taxes                                                     |   |                         | (532   | ) |   |   | (98 | ) |
| Net loss                                                                     |   | $                            | (705   | ) |   | $ | (111 | ) |
|                                                                         |   |                         |   |   |   |   |   |   |
| Net loss per share:                                                          |   |                         |   |   |   |   |   |   |
| Basic                                                                        |   | $                            | (0.02  | ) |   | $ | (0.00 | ) |
| Diluted                                                                      |   | $                            | (0.02  | ) |   | $ | (0.00 | ) |
|                                                                         |   |                         |   |   |   |   |   |   |
| Weighted average number of shares used in calculating net earnings per share |   |                         |   |   |   |   |   |   |
| Basic                                                                        |   |                         | 31,852 |   |   |   | 32,362 |   |
| Diluted                                                                      |   |                         | 31,852 |   |   |   | 32,362 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                            |   | Three Months Ended March 31, |    |
|---------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                            |   | 2011                                             |    |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                            |   |                                             |    |   |   |   |
| Net loss                                                                        |   | $                                                | (705    | ) |   | $ | (111 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |                                             |    |   |   |   |   |   |
| Depreciation and amortization                                                   |   |                                             | 933     |   |   |   | 856 |   |
| Amortization of intangibles                                                     |   |                                             | 350     |   |   |   | 673 |   |
| Stock-based compensation                                                        |   |                                             | 1,516   |   |   |   | 1,079 |   |
| Deferred income taxes                                                           |   |                                             | (1      | ) |   |   | (2 | ) |
| Reserve for returns                                                             |   |                                             | 1,361   |   |   |   | 1,164 |   |
| Realized gain on value of auction rate securities                               |   |                                             | -       |   |   |   | (1 | ) |
| Allowance for doubtful accounts                                                 |   |                                             | 111     |   |   |   | 56 |   |
| Reserve for inventory obsolescence                                              |   |                                             | 115     |   |   |   | 22 |   |
| Other non-cash charges                                                          |   |                                             | (4      | ) |   |   | (1 | ) |
| Changes in operating assets and liabilities:                                    |   |                                             |    |   |   |   |   |   |
| Increase in accounts receivable                                                 |   |                                             | (2,473  | ) |   |   | (1,622 | ) |
| Increase in inventories                                                         |   |                                             | (818    | ) |   |   | (755 | ) |
| (Increase) decrease in deferred production and marketing costs                  |   |                                             | (211    | ) |   |   | 112 |   |
| Increase in other current assets                                                |   |                                             | (864    | ) |   |   | (847 | ) |
| Decrease in other assets                                                        |   |                                             | 262     |   |   |   | 92 |   |
| (Decrease) increase in accounts payable and accrued expenses                    |   |                                             | (1,546  | ) |   |   | 162 |   |
| Increase in deferred revenue                                                    |   |                                             | 2,585   |   |   |   | 1,251 |   |
| Increase (decrease) in other liabilities                                        |   |                                             | 48      |   |   |   | (32 | ) |
| Net cash provided by operating activities                                       |   |                                             | 659     |   |   |   | 2,096 |   |
|                                                                            |   |                                             |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                            |   |                                             |    |   |   |   |   |   |
| Purchases of property and equipment                                             |   |                                             | (524    | ) |   |   | (299 | ) |
| Redemption of long-term investments                                             |   |                                             | -       |   |   |   | 5,750 |   |
| Net cash (used in) provided by investing activities                             |   |                                             | (524    | ) |   |   | 5,451 |   |
|                                                                            |   |                                             |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                            |   |                                             |    |   |   |   |   |   |
| Repurchase of common stock from affiliate                                       |   |                                             | (37,670 | ) |   |   | - |   |
| Proceeds from issuance of common stock                                          |   |                                             | 166     |   |   |   | 199 |   |
| Proceeds from exercise of stock options                                         |   |                                             | 11      |   |   |   | 24 |   |
| Surrender of restricted common stock for income tax purposes                    |   |                                             | (1,153  | ) |   |   | (1,064 | ) |
| Loan to equity method investee                                                  |   |                                             | (125    | ) |   |   | - |   |
| Settlement of WedSnap escrow                                                    |   |                                             | -       |   |   |   | 6 |   |
| Net cash used in financing activities                                           |   |                                             | (38,771 | ) |   |   | (835 | ) |
|                                                                            |   |                                             |    |   |   |   |   |   |
| (Decrease) increase in cash and cash equivalents                                |   |                                             | (38,636 | ) |   |   | 6,712 |   |
| Cash and cash equivalents at beginning of period                                |   |                                             | 139,586 |   |   |   | 94,993 |   |
| Cash and cash equivalents at end of period                                      |   | $                                                | 100,950 |   |   | $ | 101,705 |   |
|                                                                            |   |                                             |    |   |   |   |   |   |
| Supplemental information:                                                       |   |                                             |    |   |   |   |   |   |
| Cash paid for interest                                                          |   | $                                                | -       |   |   | $ | - |   |
| Cash paid for income taxes                                                      |   | $                                                | 112     |   |   | $ | 911 |   |
|                                                                            |   |                                             |    |   |   |   |   |   |
| Cash paid for acquisitions                                                      |   | $                                                | -       |   |   | $ | - |   |
| Cash acquired in acquisitions                                                   |   |                                             | -       |   |   |   | - |   |
|                                                                            |   | $                                                | -       |   |   | $ | - |   |

----

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| 1. | Organization and Basis of Presentation |
|----|----------------------------------------|

----

| 2. | Fair Value Measurements |
|----|-------------------------|

|                            |   | March 31,      |    |   | December 31, |   |
|---------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                            |   | 2011                |    |   | 2010              |   |
|                            |   | (in thousands) |    |
| Cash and cash equivalents       |   |                |    |   |              |   |
| Cash                            |   | $                   | 8,649   |   |              | $      | 8,379 |   |
| Money market funds              |   |                | 92,301  |   |              |   | 131,207 |   |
| Total cash and cash equivalents |   | $                   | 100,950 |   |              | $      | 139,586 |   |

| 3. | Stock-Based Compensation |
|----|--------------------------|

|                            |   | Three Months Ended |   |
|---------------------------------|--------|------------------------------|--------|
|                            |   | March 31,               |   |
|                            |   | 2011                         |   |   | 2010 |   |
|                            |   | (in thousands)          |   |
| Product and content development |   | $                            | 474    |   |   | $ | 359 |   |
| Sales and marketing             |   |                         | 603    |   |   |   | 317 |   |
| General and administrative      |   |                         | 439    |   |   |   | 403 |   |
|                            |   |                         |   |   |   |   |   |   |
| Total stock-based compensation  |   | $                            | 1,516  |   |   | $ | 1,079 |   |

----

|  3. | Stock-Based Compensation – (continued) |
|----------|----------------------------------------------|

|                                     |   | Shares              |   |   | WeightedAverage ExercisePrice |   |
|------------------------------------------|--------|---------------------|--------|--------|------------------------------------|--------|
|                                     |   | (in thousands) |   |   |                               |   |
| Options outstanding at December 31, 2010 |   |                | 387    |   |                               | $      | 9.54 |   |
| Options granted                          |   |                | -      |   |                               |   |   |   |
| Options exercised                        |   |                | (9     | )      |                               |   | 1.35 |   |
| Options forfeited                        |   |                | (4     | )      |                               |   | 0.81 |   |
| Options outstanding at March 31, 2011    |   |                | 374    |   |                               | $      | 9.82 |   |

|                                               |   |                                                      |   |   | Options Outstanding                      |   |   | Options Exercisable           |   |
|----------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------|--------|
|                                          |   |                                                      |   |   |                                          |   |
|  Range of Exercise Price  |   | NumberOutstanding as ofMarch 31, 2011 |   |   | WeightedAverageRemainingContractual Life |   |   | WeightedAverageExercise Price |   |   | NumberExercisable as ofMarch 31, 2011 |   |   | WeightedAverageExercise Price |   |
|                                          |   | (in thousands)                                       |   |   | (in years)                               |   |   |                               |   |   | (in thousands) |   |   |   |   |
| $0.42 to $1.03                                     |   |                                                      | 3      |   |                                          |   | 0.81   |                               |   | $ | 0.44 |   |   |   | 3 |   |   | $ | 0.44 |   |
| $1.37 to $4.10                                     |   |                                                      | 211    |   |                                          |   | 2.88   |                               |   |   | 3.56 |   |   |   | 211 |   |   |   | 3.56 |   |
| $18.26                                             |   |                                                      | 160    |   |                                          |   | 1.16   |                               |   |   | 18.26 |   |   |   | 160 |   |   |   | 18.26 |   |
|                                               |   |                                                      |   |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                                                      | 374    |   |                                          |   | 2.13   |                               |   | $ | 9.82 |   |   |   | 374 |   |   | $ | 9.82 |   |

----

| 3. | Stock-Based Compensation – (continued) |
|----|----------------------------------------------|

|                                              |   |                  |   |   | Weighted Average       |   |
|---------------------------------------------------|--------|-----------------------|--------|--------|-----------------------------|--------|
|                                         |   | Restricted Stock |   |   | Grant Date Fair   |   |
|                                         |   | (in thousands)   |   |   | Value (per share) |   |
|                                         |   |                  |   |   |                        |   |
| Unvested at December 31, 2010 |   |                  | 1,104  |   |                        | $      | 7.74 |   |
| Granted                                           |   |                  | 1,118  |   |                        |   | 10.64 |   |
| Vested                                            |   |                  | (279   | )      |                        |   | 7.59 |   |
| Forfeited                                         |   |                  | (32    | )      |                        |   | 7.99 |   |
| Unvested at March 31, 2011                        |   |                  | 1,911  |   |                        | $      | 9.43 |   |

----

|                                                       |   | Three Months Ended March 31, |   |
|------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                  |   | 2011                                             |   |   | 2010 |   |
|                                                  |   | Options                                          |   |   | ESPP Rights |   |   | Options |   |   | ESPP Rights |   |
| Weighted average expected option lives |   | N/A                                              |   |   | Six months |   |   | N/A |   |   | Six months |   |
| Risk-free rate                                             |   | N/A                                              |   |   |   | 0.18 | % |   | N/A |   |   |   | 0.17 | % |
| Expected volatility                                        |   | N/A                                              |   |   |   | 21.00 | % |   | N/A |   |   |   | 25.70 | % |
| Dividend yield                                             |   | N/A                                              |   |   |   | 0.00 | % |   | N/A |   |   |   | 0.00 | % |

| 4. | Inventory |
|----|-----------|

|                 |   | March 31,2011  |   |   | December 31,2010 |   |
|----------------------|--------|---------------------|--------|--------|-----------------------|--------|
|            |   | (in thousands) |   |
| Inventory            |   |                |   |   |                  |   |
|                 |   |                |   |   |                  |   |
| Raw materials        |   | $                   | 1,049  |   |                  | $      | 951 |   |
| Finished goods       |   |                | 3,389  |   |                  |   | 2,784 |   |
|                 |   |                |   |   |                  |   |   |   |
| Total inventory, net |   | $                   | 4,438  |   |                  | $      | 3,735 |   |

----

| 5. | Goodwill and Other Intangible Assets |
|----|------------------------------------------------|

|                                               |   | March 31, 2011 |   |   | December 31, 2010 |   |
|----------------------------------------------------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                                          |   | GrossCarryingAmount      |   |   | AccumulatedAmortization     |   |   | Net Cost |   |   | GrossCarryingAmount |   |   | AccumulatedAmortization |   |   | Net Cost |   |
|                                          |   | (in thousands)      |   |
| Indefinite lived intangible assets: |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tradenames                                         |   | $                        | 6,995  |   |                        | $      | - |   |   | $ | 6,995 |   |   | $ | 6,995 |   |   | $ | - |   |   | $ | 6,995 |   |
| URLs                                               |   |                     | 77     |   |                        |   | - |   |   |   | 77 |   |   |   | 77 |   |   |   | - |   |   |   | 77 |   |
| Subtotal indefinite lived intangible assets        |   |                     | 7,072  |   |                        |   | - |   |   |   | 7,072 |   |   |   | 7,072 |   |   |   | - |   |   |   | 7,072 |   |
|                                               |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Definite lived intangible assets:                  |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer and advertiser relationships              |   |                     | 4,780  |   |                        |   | (4,546 | ) |   |   | 234 |   |   |   | 4,780 |   |   |   | (4,502 | ) |   |   | 278 |   |
| Developed technology and patents                   |   |                     | 10,265 |   |                        |   | (9,385 | ) |   |   | 880 |   |   |   | 10,265 |   |   |   | (9,088 | ) |   |   | 1,177 |   |
| Trademarks and tradenames                          |   |                     | 129    |   |                        |   | (129 | ) |   |   | - |   |   |   | 129 |   |   |   | (128 | ) |   |   | 1 |   |
| Service contracts and other                        |   |                     | 1,402  |   |                        |   | (1,329 | ) |   |   | 73 |   |   |   | 1,402 |   |   |   | (1,321 | ) |   |   | 81 |   |
| Subtotal definite lived intangible assets          |   |                     | 16,576 |   |                        |   | (15,389 | ) |   |   | 1,187 |   |   |   | 16,576 |   |   |   | (15,039 | ) |   |   | 1,537 |   |
|                                               |   |                     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total intangible assets                            |   | $                        | 23,648 |   |                        | $      | (15,389 | ) |   | $ | 8,259 |   |   | $ | 23,648 |   |   | $ | (15,039 | ) |   | $ | 8,609 |   |

| Customer and advertiser relationships |   | 2 to 10 years |
|---------------------------------------|--------|---------------|
| Developed technology and patents      |   | 5 years       |
| Trademarks and tradenames             |   | 3 to 5 years  |
| Service contracts and other           |   | 1 to 7 years  |

----

| 6. | Commitments and Contingencies |
|----|-------------------------------|

| 7. | Income Taxes |
|----|--------------|

| 8. | Earnings Per Share |
|----|--------------------|

|                                                 |   | Three Months Ended March 31,                        |   |
|------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                            |   | 2011                                                                    |   |   | 2010 |   |
|                                            |   | (in thousands, except for per share data) |   |
|                                                 |   |                                                                    |   |
| Net loss                                             |   | $                                                                       | (705   | ) |   | $ | (111 | ) |
|                                                 |   |                                                                    |   |   |   |   |   |   |
| Total weighted-average basic shares   |   |                                                                    | 31,852 |   |   |   | 32,362 |   |
|                                                 |   |                                                                    |   |   |   |   |   |   |
| Dilutive securities:                            |   |                                                                    |   |   |   |   |   |   |
| Restricted stock                                     |   |                                                                    | -      |   |   |   | - |   |
| Employee Stock Purchase Plan                         |   |                                                                    | -      |   |   |   | - |   |
| Options/warrants                                     |   |                                                                    | -      |   |   |   | - |   |
|                                                 |   |                                                                    |   |   |   |   |   |   |
| Total weighted-average diluted shares |   |                                                                    | 31,852 |   |   |   | 32,362 |   |
|                                                 |   |                                                                    |   |   |   |   |   |   |
| Net loss per share:                             |   |                                                                    |   |   |   |   |   |   |
| Basic                                                |   | $                                                                       | (0.02  | ) |   | $ | (0.00 | ) |
| Diluted                                              |   | $                                                                       | (0.02  | ) |   | $ | (0.00 | ) |

----

| 9. | New Registry Agreement-Macy’s |
|----|-------------------------------------|

| 10. | Stock Repurchase Program |
|-----|--------------------------|

| 11. | Subsequent Events |
|-----|-------------------|

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

| · | Upgrade our technology to increase our operational efficiency so that we can access a greater market share of advertising dollars and commerce revenue in the weddings portion of our business. We developed a new content management system that allows us to more efficiently maintain and organize information on our websites. Our new contract entry system and surrounding support applications have enabled us to implement greater pricing flexibility in all of our local markets, which we believe will allow us to expand our local vendor base, as well as achieve operational efficiencies, providing additional time for our local sales force to pursue new accounts. In addition to the new contract entry system, we have completed the process of converting our existing local art management application off of our legacy AS/400 system. In January 2010, we launched a self-service platform that allows local vendors to automatically select their advertising programs. In May 2010, we launched a vendor review site, WeddingChannel Reviews with over 170,000 reviews of more than 120,000 wedding vendors across the U.S. that enables brides to read reviews written by other brides about the services provided by their wedding vendors.  We are working to enhance the functionality of our patented gift registry application to encompass a wide selection of items and retailers. To this end, we believe our recently launched Gift Registry 360, a universal gift registry platform, improves the ability of our users to seamlessly add items from multiple retailers to their registry lists and complete transactions. We expect that these new programs will allow us to more effectively scale our local and registry business and drive further growth for local online and registry revenue. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increase awareness of our brands and products.  We believe that we have generally excelled at marketing to our consumers with compelling brands, engaging content and products and a highly successful consumer public relations program, but we have not aggressively marketed our media offerings to advertisers. Accordingly, in 2008, we established a new marketing team to develop trade marketing programs and supporting research aimed at the local vendor community and national advertising marketplace as a foundation to drive further national and local advertising revenue growth. This team will also be involved in launching programs to increase registry searches and transactions from which we would derive commission revenue, as well as to increase revenue of our wedding supplies business through opportunistic acquisitions and improved conversion of our members to customers of our online stores.  In 2010, we increased the publication frequency of The Knot Weddings national magazine from semi-annually to quarterly.  We also increased the publication frequency of The Bump local market guides from annually to semi-annually. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Expand our brands internationally.  We are focused on identifying opportunities in large international markets where we can use our brand recognition and editorial authority on the key lifestages of engagement, newlywed and first-time pregnancy to drive further growth. In 2009, we established a software development center in Guangzhou, China for the purposes of increasing technology development productivity without materially growing technology costs. The software development center also is serving as a development resource for expanding our business in China. With a large number of weddings and an affinity for western styles, we believe there is a substantial opportunity to serve Chinese couples with information and services about western-style weddings, through the office we opened in Beijing. In November 2010, we launched Ai Jie (ijie.com).  The website provides Western inspiration and local resources for weddings in China.  There was no revenue generated by our operations in China during 2010 or during the three months ended March 31, 2011.  From inception we incurred $2.6 million of expenses in connection with our media operations in China.  In addition, we have established an exclusive licensing arrangement for a major Australian media company to represent our brands in Australia.   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Total net revenue increased 0.2% to $27.5 million over the corresponding 2010 period.  This increase was driven by higher national and local online advertising and increased publishing revenue. These increases were offset by lower e-commerce, registry and other revenue. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | National online advertising revenue increased 18.1% to $6.6 million over the corresponding 2010 period, driven by higher advertiser spending. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| · | Local online advertising revenue increased 14.6% to $10.2 million over the corresponding 2010 period, driven by increased vendor count and increased average vendor spending. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Merchandise revenue decreased 17.6% to $5.7 million over the corresponding 2010 period primarily due to lower traffic. |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | Registry services revenue decreased by 33.5% to $1.1 million primarily due to the change in our registry relationship with Macy’s. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Publishing and other revenue decreased 10.9% to $3.9 million over the corresponding 2010 period. The decrease was primarily due to the non recurrence of the Macy’s registry contract termination payment of $1.0 million in 2010 offset by increased advertising revenue from both our national and regional publications. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We had an operating loss of $1.1 million compared to a loss of $176,000 in the prior year’s quarter. The year-over-year increase in our operating loss was primarily driven by increased operating expenses offset by higher gross profit. The increase in operating expenses was driven by increased personnel related and information technology related costs to support our growth initiatives.Increased revenue from national and local online offset by lower revenue from merchandise and publishing and other revenue drove the increase in gross profit. We had a net loss for the three months ended March 31, 2011 of $705,000, or $(0.02) per basic and per diluted share compared to a net loss of $111,000, or $(0.00) per basic and per diluted share for the three months ended March 31, 2010. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | At March 31, 2011, our total cash and cash equivalents decreased to $101.0 million from $139.6 at December 31, 2010. The decrease was driven by the repurchase of 3,671,526 shares of our common stock held by Macy’s, which is described in more detail in Note 10 of our Condensed Consolidated Financial Statements included herein. The aggregate purchase price of the transaction was $37.7 million, based on the closing share price of $10.26 per share for our common stock on February 25, 2011, the date of the repurchase agreement. The shares repurchased represent 10.7% of our outstanding common stock. We retired these shares upon repurchase. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | At March 31, 2011, we had no debt. |
|--------|------------------------------------|

|                           |   | Three Months Ended March 31,                        |         |
|--------------------------------|--------|-------------------------------------------------------------------------|--------------|
|                           |   | 2011                                                                    |         |   | 2010 |   |
|                           |   | Amount                                                                  |         |   | % of NetRevenue |   |   | Amount |   |   | % of NetRevenue |   |
|                           |   | (in thousands, except for per share data) |         |
|                           |   |                                                                    |         |
| Net revenue                    |   | $                                                                       | 27,544       |   |   |   | 100.0 | % |   | $ | 27,503 |   |   |   |  100.0 | % |
| Cost of revenue                |   |                                                                    |  5,255  |   |   |   |  19.1 |   |   |   |  5,837 |   |   |   |  21.2 |   |
|                           |   |                                                                    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                   |   |                                                                    |  22,289 |   |   |   |  80.9 |   |   |   |  21,666 |   |   |   |  78.8 |   |
| Operating expenses             |   |                                                                    |  23,421 |   |   |   |  85.0 |   |   |   |  21,842 |   |   |   |  79.4 |   |
|                           |   |                                                                    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations      |   |                                                                    |  (1,132 | ) |   |   |  (4.1 | ) |   |   | (176 | ) |   |   |  (0.6 | ) |
| Loss in equity interest        |   |                                                                    | (104         | ) |   |   |  (0.4 | ) |   |   | (115 | ) |   |   |  (0.4 | ) |
| Interest and other income, net |   |                                                                    | (1           | ) |   |   |  (0.1 | ) |   |   | 82 |   |   |   |  0.2 |   |
|                           |   |                                                                    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes  |   |                                                                    |  (1,237 | ) |   |   |  (4.5 | ) |   |   | (209 | ) |   |   |  (0.8 | ) |
| Benefit for income taxes       |   |                                                                    | (532         | ) |   |   |  (1.9 | ) |   |   | (98 | ) |   |   |  (0.4 | ) |
|                           |   |                                                                    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                       |   | $                                                                       | (705         | ) |   |   | (2.6 | )% |   | $ | (111 | ) |   |   |  (0.4 | )% |
|                           |   |                                                                    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share:            |   |                                                                    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                          |   | $                                                                       | (0.02        | ) |   |   |   |   |   | $ | (0.00 | ) |   |   |   |   |
| Diluted                        |   | $                                                                       | (0.02        | ) |   |   |   |   |   | $ | (0.00 | ) |   |   |   |   |

----

|                                        |   | Three Months Ended March 31, |   |
|---------------------------------------------|--------|--------------------------------------------------|--------|
|                                        |   | Net Revenue                                 |   |   | PercentageIncrease/ |   |   | Percentage ofTotal Net Revenue |   |
|                                        |   | 2011                                             |   |   | 2010 |   |   | (Decrease) |   |   | 2011 |   |   | 2010 |   |
|                                        |   | (in thousands)                                   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |
| National online sponsorship and advertising |   | $                                                | 6,572  |   |   | $ | 5,564 |   |   |   | 18.1 | % |   |   | 23.9 | % |   |   | 20.2 | % |
| Local online sponsorship and advertising    |   |                                             | 10,197 |   |   |   | 8,900 |   |   |   | 14.6 |   |   |   | 37.0 |   |   |   | 32.4 |   |
| Total online sponsorship and advertising    |   |                                             | 16,769 |   |   |   | 14,464 |   |   |   | 15.9 |   |   |   | 60.9 |   |   |   | 52.6 |   |
| Registry services                           |   |                                             | 1,129  |   |   |   | 1,698 |   |   |   | (33.5 | ) |   |   | 4.1 |   |   |   | 6.2 |   |
| Merchandise                                 |   |                                             | 5,706  |   |   |   | 6,921 |   |   |   | (17.6 | ) |   |   | 20.7 |   |   |   | 25.2 |   |
| Publishing and other                        |   |                                             | 3,940  |   |   |   | 4,420 |   |   |   | (10.9 | ) |   |   | 14.3 |   |   |   | 16.0 |   |
| Total net revenue                           |   | $                                                | 27,544 |   |   | $ | 27,503 |   |   |   | 0.2 | % |   |   | 100.0 | % |   |   | 100.0 | % |

----

|                                                      |   | Three Months Ended March 31, |   |
|-----------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                      |   | 2011                                             |   |   | 2010 |   |   | Increase/(Decrease) |   |
|                                                      |   | GrossProfit                                      |   |   | GrossMargin % |   |   | GrossProfit |   |   | GrossMargin % |   |   | GrossProfit |   |   | GrossMargin % |   |
|                                                      |   | (in thousands)                                   |   |
|                                                      |   |                                             |   |
| Online sponsorship and advertising (national & local) |   | $                                                | 16,204 |   |   |   | 96.6 | % |   | $ | 13,997 |   |   |   | 96.8 | % |   | $ | 2,207 |   |   |   | (0.2 | )% |
| Registry services                                         |   |                                             | 1,129  |   |   |   | 100.0 |   |   |   | 1,698 |   |   |   | 100.0 |   |   |   | (569 | ) |   |   | - |   |
| Merchandise                                               |   |                                             | 2,337  |   |   |   | 41.0 |   |   |   | 3,038 |   |   |   | 43.9 |   |   |   | (701 | ) |   |   | (2.9 | ) |
| Publishing and other                                      |   |                                             | 2,619  |   |   |   | 66.5 |   |   |   | 2,933 |   |   |   | 66.4 |   |   |   | (314 | ) |   |   | 0.1 |   |
|                                                      |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total gross profit                                        |   | $                                                | 22,289 |   |   |   | 80.9 | % |   | $ | 21,666 |   |   |   | 78.8 | % |   | $ | 623 |   |   |   | 2.1 | % |

|                            |   | Three Months Ended March 31, |   |
|---------------------------------|--------|--------------------------------------------------|--------|
|                            |   | Operating Expenses                          |   |   | PercentageIncrease/ |   |   | Percentage ofTotal Net Revenue |   |
|                            |   | 2011                                             |   |   | 2010 |   |   | (Decrease) |   |   | 2011 |   |   | 2010 |   |
|                            |   | (in thousands)                              |   |   |   |   |   |   |   |   |   |   |
|                            |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Product and content development |   | $                                                | 6,531  |   |   | $ | 5,601 |   |   |   | 16.6 | % |   |   | 23.7 | % |   |   | 20.4 | % |
| Sales and marketing             |   |                                             | 10,504 |   |   |   | 9,163 |   |   |   | 14.6 |   |   |   | 38.1 |   |   |   | 33.3 |   |
| General and administrative      |   |                                             | 5,103  |   |   |   | 5,549 |   |   |   | (8.0 | ) |   |   | 18.5 |   |   |   | 20.1 |   |
| Depreciation and amortization   |   |                                             | 1,283  |   |   |   | 1,529 |   |   |   | (16.1 | ) |   |   | 4.7 |   |   |   | 5.6 |   |
| Total operating expenses        |   | $                                                | 23,421 |   |   | $ | 21,842 |   |   |   | 7.2 | % |   |   | 85.0 | % |   |   | 79.4 | % |

----

----

|                                                |   | For the Three Months Ended March 31, |    |
|-----------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                |   | 2011                                                               |    |   | 2010 |   |
|                                                |   | (in thousands)                                                     |    |
|                                                |   |                                                               |    |
| Net cash provided by operating activities           |   | $                                                                  | 659     |   |   | $ | 2,096 |   |
| Net cash (used in) provided by investing activities |   |                                                               | (524    | ) |   |   | 5,451 |   |
| Net cash used in financing activities               |   |                                                               | (38,771 | ) |   |   | (835 | ) |
| (Decrease) increase in cash and cash equivalents    |   | $                                                                  | (38,636 | ) |   | $ | 6,712 |   |

----

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

ITEM 4. Controls and Procedures

----

ITEM 1. Legal Proceedings

ITEM 1A.  Risk Factors

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

| Period                     |   | (a) TotalNumber ofSharesPurchased |            |   | (b) AveragePrice Paid perShare |   |   | ( c) Total Number ofShares Purchased asPart of PubliclyAnnounced Plans orPrograms |   |   | (d) Approximate DollarValue of Shares That MayYet Be Purchased Underthe Plans or Programs |   |
|---------------------------------|--------|---------------------------------------------|-----------------|--------|-----------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                            |   |                                        |            |   |                                          |   |   |                                                                                                                                |   |   |                                                                                                                                                  |   |
| January 1 to January 31, 2011   |   |                                        | 2,429           |   |                                          | $      | 13.06  |                                                                                                                                |   |   |  -                                                                                                                                               |   |   | $ | 50,000,000 |   |
| February 1 to February 28, 2011 |   |                                        |  3,770,591 |   |                                          |   | 10.18  |                                                                                                                                |   |   | 3,671,526                                                                                                                                             |   |   | $ | 12,330,143 |   |
| March 1 to March 31, 2011       |   |                                        | 6,619           |   |                                          |   | 10.81  |                                                                                                                                |   |   |  -                                                                                                                                               |   |   | $ | 12,330,143 |   |
| Total                           |   |                                        |  3,779,639 |   |                                          |   |   |                                                                                                                                |   |   | 3,671,526                                                                                                                                             |   |   |   |   |   |

----

ITEM 6. Exhibits

----

SIGNATURES

| Date: May 10, 2011 | THE KNOT, INC. |
|--------------------|----------------|
|               |           |
|               | By:            | /s/ John P. Mueller |   |
|               |           | John P. Mueller |
|               |           | Chief Financial Officer |
|               |           | (Principal Financial Officer and Duly Authorized |
|               |           | Officer) |

----

| Number |   | Description                                                                                                                                                                                                                                                                                                       |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                              |
| 10.30  |   | Stock Purchase Agreement dated February 25, 2011, by and among The Knot, Inc., Macy’s Inc. and Macy’s Corporate Services, Inc. (Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 28, 2011). |
|   |   |                                                                                                                                                                                                                                                                                                              |
| 10.31  |   | Form of Restricted Stock Award Agreement under the 2009 Stock Incentive Plan.                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                              |
| 31.1   |   | Certification of Chairman and Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                              |
| 31.2   |   | Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                              |
| 32.1   |   | Certification of Chairman and Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                              |
| 32.2   |   | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                |

----