QuinStreet (QNST) 10-Q 9 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	QNST
Entity Registrant Name	QUINSTREET, INC
Entity Central Index Key	1,117,297
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		45,015,511

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Current assets
Cash and cash equivalents	$ 60,660	$ 60,468
Accounts receivable, net	45,861	46,240
Deferred tax assets	173	166
Prepaid expenses and other assets	6,054	11,503
Total current assets	112,748	118,377
Property and equipment, net	8,733	8,565
Goodwill	56,118	56,118
Other intangible assets, net	16,604	19,030
Other assets, noncurrent	3,012	3,063
Total assets	197,215	205,153
Current liabilities
Accounts payable	19,407	20,425
Accrued liabilities	25,261	27,146
Deferred revenue	1,146	1,208
Debt	49	49
Total current liabilities	45,863	48,828
Debt, noncurrent	15,000	15,000
Other liabilities, noncurrent	5,641	5,740
Total liabilities	$ 66,504	$ 69,568
Commitments and contingencies (See Note 8)
Stockholders' equity
Common stock: $0.001 par value; 100,000,000 shares authorized; 45,008,144 and 44,617,850 shares issued and outstanding at September 30, 2015 and June 30, 2015, respectively	$ 45	$ 45
Additional paid-in capital	250,570	249,358
Accumulated other comprehensive loss	(420)	(413)
Accumulated deficit	(119,484)	(113,405)
Total stockholders' equity	130,711	135,585
Total liabilities and stockholders' equity	$ 197,215	$ 205,153

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Jun. 30, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	45,008,144	44,617,850
Common stock, shares outstanding	45,008,144	44,617,850

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands		3 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net revenue		$ 72,389,000	$ 69,189,000
Cost of revenue	[1]	65,795,000	63,409,000
Gross profit		6,594,000	5,780,000
Operating expenses:
Product development	[1]	4,386,000	4,956,000
Sales and marketing	[1]	3,575,000	3,667,000
General and administrative	[1]	4,163,000	4,615,000
Operating loss		(5,530,000)	(7,458,000)
Interest income		6,000	26,000
Interest expense		(133,000)	(1,180,000)
Other (expense) income, net		(57,000)	2,325,000
Loss before income taxes		(5,714,000)	(6,287,000)
Provision for taxes		(365,000)	0
Net loss		$ (6,079,000)	$ (6,287,000)
Net loss per share:
Basic		$ (0.14)	$ (0.14)
Diluted		$ (0.14)	$ (0.14)
Weighted average shares used in computing net loss per share
Basic		44,836	44,266
Diluted		44,836	44,266
[1]	Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $ 804 $ 644 Product development 600 595 Sales and marketing 425 464 General and administrative 675 572

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Stock-based compensation	$ 2,504	$ 2,275
Cost of revenue [Member]
Stock-based compensation	804	644
Product development [Member]
Stock-based compensation	600	595
Sales and marketing [Member]
Stock-based compensation	425	464
General and administrative [Member]
Stock-based compensation	$ 675	$ 572

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,079)	$ (6,287)
Other comprehensive (loss) income
Change in unrealized gain on investments		8
Foreign currency translation adjustment	(7)	(7)
Change in unrealized gain on interest rate swap		226
Other comprehensive (loss) income	(7)	227
Comprehensive loss	$ (6,086)	$ (6,060)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities
Net loss	$ (6,079)	$ (6,287)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	3,944	5,422
Provision for sales returns and doubtful accounts receivable	(73)	182
Write-off of bank loan upfront fees		328
Stock-based compensation	2,504	2,275
Excess tax benefits from stock-based compensation		(51)
Gain on sales of domain names	(65)	(2,450)
Other adjustments, net		43
Changes in assets and liabilities:
Accounts receivable	453	690
Prepaid expenses and other assets	5,500	(1,312)
Deferred taxes	(8)	2
Accounts payable	(1,100)	633
Accrued liabilities	(1,673)	(2,886)
Deferred revenue	(62)	71
Other liabilities, noncurrent	(98)	(161)
Net cash provided by (used in) operating activities	3,243	(3,501)
Cash Flows from Investing Activities
Capital expenditures	(489)	(2,141)
Internal software development costs	(1,276)	(427)
Purchases of marketable securities		(10,605)
Proceeds from sales and maturities of marketable securities		9,762
Proceeds from sales of domain names	40	2,700
Net cash used in investing activities	(1,725)	(711)
Cash Flows from Financing Activities
Proceeds from exercise of common stock options		1,300
Principal payments on term loan facility		(3,750)
Payment of bank loan upfront fees		(272)
Principal payments on acquisition-related notes payable		(444)
Excess tax benefits from stock-based compensation		51
Withholding taxes related to restricted stock net share settlement	(1,323)	(445)
Net cash used in financing activities	(1,323)	(3,560)
Effect of exchange rate changes on cash and cash equivalents	(3)	16
Net increase (decrease) in cash and cash equivalents	192	(7,756)
Cash and cash equivalents at beginning of period	60,468	84,177
Cash and cash equivalents at end of period	60,660	76,421
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	156	1,045
Cash paid for income taxes	$ 74	$ 280

The Company

The Company	3 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. The Company QuinStreet, Inc. (the “Company”) is a leader in performance marketing online. The Company was incorporated in California in April 1999 and reincorporated in Delaware in December 2009. The Company provides customer acquisition programs for clients in various industry verticals such as financial services and education. The corporate headquarters are located in Foster City, California, with additional offices throughout the United States, Brazil and India.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company also evaluates its ownership in entities to determine if they are variable interest entities (“VIEs”), if the Company has a variable interest in those entities, and if the nature and extent of those interests result in consolidation. Refer to Note 4 for more information on VIEs. The Company applies the cost method of accounting for investments in entities if the Company does not have the ability to exercise significant influence over the entities. The interests held at cost are periodically evaluated for other-than-temporary declines in value. Intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying condensed consolidated financial statements and the notes to the condensed consolidated financial statements as of September 30, 2015 and for the three months ended September 30, 2015 and 2014 are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015, as filed with the SEC on August 19, 2015. The condensed consolidated balance sheet at June 30, 2015 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the Company’s condensed consolidated balance sheet at September 30, 2015, its condensed consolidated statements of operations for the three months ended September 30, 2015 and 2014, its condensed consolidated statements of comprehensive loss for the three months ended September 30, 2015 and 2014, and its condensed consolidated statements of cash flows for the three months ended September 30, 2015 and 2014. The results of operations for the three months ended September 30, 2015 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2016, or any other future period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. On an ongoing basis, management evaluates these estimates, judgments and assumptions, including those related to revenue recognition, stock-based compensation, goodwill, intangible assets, long-lived assets, contingencies, and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods. Accounting Policies The significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2015. There have been no significant changes in the accounting policies subsequent to June 30, 2015. Concentrations of Credit Risk No client accounted for 10% or more of net revenue for the three months ended September 30, 2015 or for the same period in fiscal year 2015. No client accounted for 10% or more of net accounts receivable as of September 30, 2015 or June 30, 2015. Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash equivalents, accounts receivable, accounts payable, an acquisition-related promissory note and a revolving loan facility. The fair value of the Company’s cash equivalents is determined based on quoted prices in active markets for identical assets for its money market funds. The recorded values of the Company’s accounts receivable and accounts payable approximate their current fair values due to the relatively short-term nature of these accounts. The fair value of the acquisition-related promissory note approximates its recorded amount as the interest rates on similar financing arrangements available to the Company at September 30, 2015 approximate the interest rates implied when this acquisition-related promissory note was originally issued and recorded. The Company believes that the fair value of the revolving loan facility approximates its recorded amount at September 30, 2015 as the interest rate on the revolving loan facility is variable and is based on market interest rates and after consideration of default and credit risk. Recent Accounting Pronouncements In May 2014, the FASB issued a new accounting standard update on revenue from contracts with clients. The new guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. The Company is currently assessing the impact of this new guidance. In June 2014, the FASB issued a new accounting standard update on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period, which amends ASC 718, “Compensation—Stock Compensation.” The amendment provides guidance on the treatment of shared-based payment awards with a specific performance target, requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The new guidance becomes effective for fiscal years beginning after December 15, 2015, and interim periods within those years, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued new guidance related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new guidance becomes effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

Net Loss Attributable to Common

Net Loss Attributable to Common Stockholders and Net Loss per Share	3 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Loss Attributable to Common Stockholders and Net Loss per Share	3. Net Loss Attributable to Common Stockholders and Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury stock method. The following table presents the calculation of basic and diluted net loss per share: Three Months Ended 2015 2014 (In thousands, except Numerator: Basic and Diluted: Net loss $ (6,079 ) $ (6,287 ) Denominator: Basic and Diluted: Weighted average shares of common stock used in computing basic and diluted net loss per share 44,836 44,266 Net loss per share: Basic and Diluted (1) $ (0.14 ) $ (0.14 ) Securities excluded from weighted average shares used in computing diluted net loss per share because the effect would have been anti-dilutive: (2) 5,448 9,774 (1) Diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred for the three months ended September 30, 2015 and 2014. The assumed issuance of any additional shares would be anti-dilutive. (2) These weighted shares relate to anti-dilutive stock options and restricted stock units as calculated using the treasury stock method and could be dilutive in the future.

Fair Value Measurements, Market

Fair Value Measurements, Marketable Securities and Variable Interest Entities	3 Months Ended
	Sep. 30, 2015
Text Block [Abstract]
Fair Value Measurements, Marketable Securities and Variable Interest Entities	4. Fair Value Measurements, Marketable Securities and Variable Interest Entities Fair value is defined as the price that would be received on sale of an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The FASB has established a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under the guidance for fair value measurement are described below: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Pricing inputs are based upon quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. The valuations are based on quoted prices of the underlying security that are readily and regularly available in an active market, and accordingly, a significant degree of judgment is not required. As of September 30, 2015, the Company used Level 1 assumptions for its money market funds. Level 2 — Pricing inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of September 30, 2015, the Company used Level 2 assumptions for its acquisition-related promissory note and revolving loan facility. Level 3 — Pricing inputs are generally unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. As of September 30, 2015, the Company did not have any Level 3 financial assets or liabilities. The Company’s financial instruments as of September 30, 2015 and June 30, 2015 were categorized as follows in the fair value hierarchy (in thousands): Fair Value Measurements as of September 30, 2015 Using Quoted Prices in Significant Other (Level 2) Total Assets: Money market funds $ 20,161 $ — $ 20,161 Liabilities: Acquisition-related promissory note (1) $ — $ 49 $ 49 Revolving loan facility (1) — 15,000 15,000 $ — $ 15,049 $ 15,049 Fair Value Measurements as of June 30, 2015 Using Quoted Prices in Significant Other (Level 2) Total Assets: Money market funds $ 20,156 $ — $ 20,156 Liabilities: Acquisition-related promissory note (1) $ — $ 49 $ 49 Revolving loan facility (1) — 15,000 15,000 $ — $ 15,049 $ 15,049 (1) These liabilities are carried at historical cost on the Company’s condensed consolidated balance sheets. Marketable Securities All liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Investments with maturities greater than three months at the date of purchase are classified as marketable securities. Historically, the Company’s marketable securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the available-for-sale designation as of each balance sheet date. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive loss within stockholders’ equity. The Company holds money market funds of $20.2 million as of September 30, 2015 and June 30, 2015. Gross unrealized gains and losses were not material as the carrying value approximated estimated fair value due to its short maturities. The Company did not hold any marketable securities as of September 30, 2015 and June 30, 2015. The Company did not realize any gains or losses from sales of its securities in the three months ended September 30, 2015 and 2014. As of September 30, 2015 and June 30, 2015, the Company did not hold securities that had maturity dates greater than one year. Variable Interest Entities A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of the VIE requires significant assumptions and judgments, including the identification of significant activities and an assessment of our ability to direct those activities. The Company has an equity interest in a privately held entity that is a VIE, of which the Company is not the primary beneficiary. Accordingly, the interest of $2.5 million as of September 30, 2015 and June 30, 2015 is recognized at cost in other assets, noncurrent on the Company’s condensed consolidated balance sheets. The Company’s interest was evaluated for impairment as of September 30, 2015 and June 30, 2015 which did not result in any indications of impairment. The Company’s maximum exposure to loss as a result of the unconsolidated VIE is $2.5 million at September 30, 2015, which represents the value of the Company’s investment in the VIE.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	5. Intangible Assets and Goodwill Intangible assets, net balances, excluding goodwill, consisted of the following (in thousands): September 30, 2015 June 30, 2015 Gross Carrying Amount Accumulated Net Gross Accumulated Net Customer/publisher/advertiser relationships $ 36,655 $ (34,126 ) $ 2,529 $ 37,056 $ (33,916 ) $ 3,140 Content 61,732 (55,166 ) 6,566 62,162 (54,629 ) 7,533 Website/trade/domain names 31,475 (25,340 ) 6,135 31,533 (24,697 ) 6,836 Acquired technology and others 36,733 (35,359 ) 1,374 36,742 (35,221 ) 1,521 $ 166,595 $ (149,991 ) $ 16,604 $ 167,493 $ (148,463 ) $ 19,030 Amortization of intangible assets was $2.4 million and $3.8 million in the three months ended September 30, 2015 and 2014. Future amortization expense for the Company’s intangible assets as of September 30, 2015 was as follows (in thousands): Year Ending June 30, Amortization 2016 (remaining nine months) $ 6,854 2017 6,124 2018 1,945 2019 798 2020 773 Thereafter 110 $ 16,604 As of June 30, 2015 and September 30, 2015, goodwill was $56.1 million.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The Company recorded a valuation allowance against the majority of the Company’s deferred tax assets at the end of fiscal year 2014 and continues to maintain that full valuation allowance as of September 30, 2015 and June 30, 2015 as the Company believes it is not more likely than not that the net deferred tax assets will be fully realizable. The Company recorded a provision for income taxes of $0.4 million for the three months ended September 30, 2015, primarily due to an ongoing state tax examination. Due to the full valuation allowance against its deferred tax assets for the three months ended September 30, 2014, the Company did not record an income tax expense. Additionally, the Company had immaterial foreign expenses that were offset by other immaterial benefits that resulted in a zero quarterly provision.

Debt

Debt	3 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	7. Debt Loan Facility In November 2011, the Company entered into a credit agreement (“Credit Agreement”) with Comerica Bank (the “Bank”), the administrative agent and lead arranger. The Credit Agreement consisted of a $100.0 million five-year term loan facility, with annual principal amortization of 5%, 10%, 15%, 20% and 50%, and a $200.0 million five-year revolving loan facility maturing on November 4, 2016. On February 15, 2013, the Company entered into the First Amendment to Credit Agreement and Amendment to Guaranty (“First Amendment”) with the Bank to, among other things: (1) amend the definition of EBITDA; and (2) reduce the $200.0 million five-year revolving loan facility to $100.0 million. On July 17, 2014, the Company entered into the Second Amendment to Credit Agreement (“Second Amendment”) with the Bank to, among other things, amend the financial covenants and reduce the revolving loan facility from $100.0 million to $50.0 million, each effective as of June 30, 2014. Upfront arrangement fees incurred in connection with the Second Amendment totaled $0.3 million and were deferred and amortized over the remaining term of the arrangement. In connection with the reduction of the revolving loan facility, the Company accelerated amortization of approximately $0.3 million of unamortized deferred upfront costs. On June 11, 2015, the Company entered into the Third Amendment to Credit Agreement (“Third Amendment”) with the Bank to, among other things, pay off in full and terminate the term loan facility, reduce the revolving loan facility from $50.0 million to $25.0 million, amend the financial covenants, and extend the expiration date of the Credit Agreement from November 4, 2016 to June 11, 2017. Pursuant to the Third Amendment, each of the revolving loan facility lenders (other than the Bank) assigned its revolving loan facility commitments to the Bank, resulting in the Bank remaining as sole lender under the Credit Agreement. Upfront arrangement fees incurred in connection with the Third Amendment were not material. In connection with the termination of the term loan facility, the Company accelerated amortization of approximately $0.5 million of unamortized deferred upfront costs. The Credit Agreement, as amended from time to time, is secured by substantially all of the Company’s assets. Borrowings under the revolving loan facility are subject to a borrowing base consisting of eligible receivables and certain other customary conditions. Pursuant to the Second Amendment, (1) the applicable margin for base rate borrowings was set at (a) 1.375% for the revolving loan facility or (b) 1.75% for the term loan facility, and (2) the applicable margin for Eurodollar rate borrowings was set at (a) 2.375% for the revolving loan facility or (b) 2.75% for the term loan facility. Pursuant to the Third Amendment, borrowings under the revolving loan facility bear interest at a Eurodollar rate plus 3.00%. EBITDA under the Credit Agreement is defined as net loss less provision for taxes, depreciation expense, amortization expense, stock-based compensation expense, interest and other expense, net, acquisition costs for business combinations, extraordinary or non-recurring non-cash expenses or losses including, without limitation, goodwill impairments, and any extraordinary or non-recurring cash expenses in an aggregate amount not to exceed $5.0 million for the life of the Credit Agreement, as amended from time to time. The Company must pay an annual facility fee of $62,500 and an annual unused fee of 0.25% of the undrawn revolving loan facility commitments. The Company has the right to prepay the revolving loan facility or permanently reduce the revolving loan facility commitments without premium or penalty, in whole or in part at any time. The Credit Agreement, as amended, contains limitations on the Company’s ability to sell assets, make acquisitions, pay dividends, incur capital expenditures, and also requires the Company to comply with certain additional covenants. In addition, pursuant to the Third Amendment, the Company is required to maintain financial covenants as follows when there are amounts outstanding under the revolving loan facility and at the time the Company draws down amounts under the revolving loan facility: 1. Minimum EBITDA as of the end of each fiscal quarter for the trailing twelve month period of not less than: (a) $1 for the quarter ended June 30, 2015; (b) $2,000,000 for the quarter ended September 30, 2015; (c) $3,000,000 for the quarter ending December 31, 2015; (d) $4,000,000 for the quarter ending March 31, 2016; (e) $5,000,000 for the quarter ending June 30, 2016. Thereafter, minimum EBITDA increases each quarter in $1,000,000 increments; provided that there shall be no loss in EBITDA greater than $2,000,000 in any fiscal quarter during such trailing four quarter period. 2. Minimum adjusted quick ratio as of the end of each month of not less than 1.25 to 1.00. The Company was in compliance with the covenants of the Credit Agreement, as amended, as of September 30, 2015 and June 30, 2015. As of September 30, 2015 and June 30, 2015, $15.0 million was outstanding under the revolving loan facility. Interest Rate Swap During fiscal year 2015, the Company held an interest rate swap to reduce its exposure to the financial impact of changing interest rates under its term loan facility. The swap encompassed the principal balances outstanding as of January 1, 2014 and scheduled to be outstanding thereafter, such principal and notional amount totaling $85.0 million in January 2014 and amortizing to $35.0 million in November 2016. The swap agreement exchanged a variable interest rate base (Eurodollar rate) for a fixed interest rate of 0.97% over the term of the agreement. This interest rate swap was designated as a cash flow hedge of the interest rate risk attributable to forecasted variable interest payments. The effective portion of the fair value gains or losses on this swap was included as a component of accumulated other comprehensive loss with any hedge ineffectiveness immediately recognized in earnings in the current period. In June 2015, in connection with the repayment in full and termination of the term loan facility, the Company also terminated the interest rate swap agreement. Upon settlement, the Company recognized an expense of $0.3 million to other (expense) income, net in the condensed consolidated statement of operations. Debt Maturities The maturities of the Company’s debt as of September 30, 2015 were as follows (in thousands): Year Ending June 30, Promissory Revolving Loan 2016 (remaining nine months) $ 50 $ — 2017 — 15,000 50 15,000 Less: imputed interest and unamortized discounts (1 ) — Less: current portion (49 ) — Noncurrent portion of debt $ — $ 15,000 Letters of Credit The Company has a $0.4 million letter of credit agreement with a financial institution that is used as collateral for fidelity bonds placed with an insurance company and a $0.5 million letter of credit agreement with a financial institution that is used as collateral for the Company’s corporate headquarters’ operating lease. The letters of credit automatically renew annually without amendment unless cancelled by the financial institutions within 30 days of the annual expiration date.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Leases The Company leases office space under non-cancelable operating leases with various expiration dates through 2021. Rent expense for the three months ended September 30, 2015 and 2014 was $0.8 million and $0.9 million. The Company recognizes rent expense on a straight-line basis over the lease period and accrues for rent expense incurred but not paid. Future annual minimum lease payments under noncancelable operating leases as of September 30, 2015 were as follows (in thousands): Year Ending June 30, Operating 2016 (remaining nine months) $ 2,769 2017 3,472 2018 3,367 2019 1,393 2020 147 Thereafter 23 $ 11,171 Guarantor Arrangements The Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The term of the indemnification period is for the officer or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts under certain circumstances and subject to deductibles and exclusions. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is not material. Accordingly, the Company had no liabilities recorded for these agreements as of September 30, 2015 and June 30, 2015. In the ordinary course of its business, the Company from time to time enters into standard indemnification provisions in its agreements with its clients. Pursuant to these provisions, the Company may be obligated to indemnify its clients for certain losses suffered or incurred, including losses arising from violations of applicable law by the Company or by its third-party publishers, losses arising from actions or omissions of the Company or its third-party publishers, and for third-party claims that a Company product infringed upon any United States patent, copyright or other intellectual property rights. Where practicable, the Company limits its liabilities under such indemnities. Subject to these limitations, the term of such indemnity provisions is generally coterminous with the corresponding agreements and survives for the duration of the applicable statute of limitations after termination of the agreement. The potential amount of future payments to defend lawsuits or settle indemnified claims under these indemnification provisions is generally limited and the Company believes the estimated fair value of these indemnity provisions is not material. Accordingly, the Company had no liabilities recorded for these agreements as of September 30, 2015 and June 30, 2015.

Stock Benefit Plans

Stock Benefit Plans	3 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Benefit Plans	9. Stock Benefit Plans Stock Incentive Plans The Company may grant incentive stock options (“ISOs”), nonstatutory stock options (“NQSOs”), restricted stock, restricted stock units, stock appreciation rights, performance-based stock awards, and other forms of equity compensation, as well as performance cash awards, under its 2010 Equity Incentive Plan (the “2010 Incentive Plan”). The Company may grant NQSOs and restricted stock units to non-employee directors under the 2010 Non-Employee Directors’ Stock Award Plan (the “Directors’ Plan”). In fiscal year 2016, the Company began granting restricted stock units with a market condition that requires that the Company’s stock price achieve a specified price above the grant date stock price before it can be eligible for service vesting conditions. To date, the Company has issued only ISOs, NQSOs, restricted stock units and performance-based stock awards under its stock incentive plans. As of September 30, 2015, 13,642,714 shares were reserved and 11,607,433 shares were available for issuance under the 2010 Incentive Plan; 2,789,628 shares were reserved and 1,529,862 shares were available for issuance under the Directors’ Plan. Stock-Based Compensation The Company estimates the fair value of stock options at the date of grant using the Black-Scholes option-pricing model. Options are granted with an exercise price equal to the fair value of the common stock at the date of grant. The weighted average Black-Scholes model assumptions for the three months ended September 30, 2015 and 2014 were as follows: Three Months Ended 2015 2014 Expected term (in years) 4.6 4.6 Expected volatility 47 % 46 % Expected dividend yield — — Risk-free interest rate 1.6 % 1.7 % Grant date fair value $ 2.24 $ 2.04 The Company estimates the fair value of restricted stock units with a market condition at the date of the grant using the Monte Carlo simulation model. The weighted average Monte Carlo simulation model assumptions for the three months ended September 30, 2015 and 2014 were as follows: Three Months Ended 2015 2014 Vesting period (in years) 4.0 — Expected volatility 47 % — Expected dividend yield — — Risk-free interest rate 1.3 % — Grant date fair value $ 6.18 — The fair value of restricted stock units is determined based on the closing price of the Company’s common stock on the grant date. Compensation expense is amortized net of estimated forfeitures on a straight-line basis over the requisite service period of the stock-based compensation awards.

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	10. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about operating segments, including net sales and operating income before depreciation, amortization and stock-based compensation expense. The Company determined its reportable operating segment is DMS, which derives revenue from fees earned through the delivery of qualified leads, inquiries, clicks, calls, customers and, to a lesser extent, impressions. The remaining segment does not meet the quantitative threshold for an individually reportable segment and is therefore included in the “All Other” line in the following table. The Company evaluates the performance of its operating segments based on operating income before depreciation, amortization and stock-based compensation expense. The Company does not allocate most of its assets, nor its depreciation and amortization expense, stock-based compensation expense, interest income, interest expense, other (expense) income, net or income tax expense by segment. Accordingly, the Company does not report such information. Summarized information by segment was as follows (in thousands): Three Months Ended 2015 2014 Net revenue by segment: DMS $ 72,389 $ 68,932 All Other — 257 Total net revenue 72,389 69,189 Segment operating income before depreciation, amortization, and stock-based compensation expense: DMS 918 75 All Other — 164 Total segment operating income before depreciation, amortization, and stock-based compensation expense 918 239 Depreciation and amortization (3,944 ) (5,422 ) Stock-based compensation expense (2,504 ) (2,275 ) Total operating loss $ (5,530 ) $ (7,458 ) The following tables set forth net revenue and long-lived assets by geographic area (in thousands): Three Months Ended 2015 2014 Net revenue: United States $ 71,226 $ 68,070 International 1,163 1,119 Total net revenue $ 72,389 $ 69,189 September 30, June 30, 2015 2015 Property and equipment, net: United States $ 8,460 $ 8,313 International 273 252 Total property and equipment, net $ 8,733 $ 8,565

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company also evaluates its ownership in entities to determine if they are variable interest entities (“VIEs”), if the Company has a variable interest in those entities, and if the nature and extent of those interests result in consolidation. Refer to Note 4 for more information on VIEs. The Company applies the cost method of accounting for investments in entities if the Company does not have the ability to exercise significant influence over the entities. The interests held at cost are periodically evaluated for other-than-temporary declines in value. Intercompany balances and transactions have been eliminated in consolidation.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying condensed consolidated financial statements and the notes to the condensed consolidated financial statements as of September 30, 2015 and for the three months ended September 30, 2015 and 2014 are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015, as filed with the SEC on August 19, 2015. The condensed consolidated balance sheet at June 30, 2015 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the Company’s condensed consolidated balance sheet at September 30, 2015, its condensed consolidated statements of operations for the three months ended September 30, 2015 and 2014, its condensed consolidated statements of comprehensive loss for the three months ended September 30, 2015 and 2014, and its condensed consolidated statements of cash flows for the three months ended September 30, 2015 and 2014. The results of operations for the three months ended September 30, 2015 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2016, or any other future period.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. On an ongoing basis, management evaluates these estimates, judgments and assumptions, including those related to revenue recognition, stock-based compensation, goodwill, intangible assets, long-lived assets, contingencies, and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods.
Accounting Policies	Accounting Policies The significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2015. There have been no significant changes in the accounting policies subsequent to June 30, 2015.
Concentrations of Credit Risk	Concentrations of Credit Risk No client accounted for 10% or more of net revenue for the three months ended September 30, 2015 or for the same period in fiscal year 2015. No client accounted for 10% or more of net accounts receivable as of September 30, 2015 or June 30, 2015.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash equivalents, accounts receivable, accounts payable, an acquisition-related promissory note and a revolving loan facility. The fair value of the Company’s cash equivalents is determined based on quoted prices in active markets for identical assets for its money market funds. The recorded values of the Company’s accounts receivable and accounts payable approximate their current fair values due to the relatively short-term nature of these accounts. The fair value of the acquisition-related promissory note approximates its recorded amount as the interest rates on similar financing arrangements available to the Company at September 30, 2015 approximate the interest rates implied when this acquisition-related promissory note was originally issued and recorded. The Company believes that the fair value of the revolving loan facility approximates its recorded amount at September 30, 2015 as the interest rate on the revolving loan facility is variable and is based on market interest rates and after consideration of default and credit risk.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued a new accounting standard update on revenue from contracts with clients. The new guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. The Company is currently assessing the impact of this new guidance. In June 2014, the FASB issued a new accounting standard update on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period, which amends ASC 718, “Compensation—Stock Compensation.” The amendment provides guidance on the treatment of shared-based payment awards with a specific performance target, requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The new guidance becomes effective for fiscal years beginning after December 15, 2015, and interim periods within those years, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued new guidance related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new guidance becomes effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.
Net Loss Attributable to Common Stockholders and Net Loss per Share	Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury stock method.
Fair Value Measurements	Fair value is defined as the price that would be received on sale of an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The FASB has established a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under the guidance for fair value measurement are described below: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Pricing inputs are based upon quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. The valuations are based on quoted prices of the underlying security that are readily and regularly available in an active market, and accordingly, a significant degree of judgment is not required. As of September 30, 2015, the Company used Level 1 assumptions for its money market funds. Level 2 — Pricing inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of September 30, 2015, the Company used Level 2 assumptions for its acquisition-related promissory note and revolving loan facility. Level 3 — Pricing inputs are generally unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. As of September 30, 2015, the Company did not have any Level 3 financial assets or liabilities.
Marketable Securities	Marketable Securities All liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Investments with maturities greater than three months at the date of purchase are classified as marketable securities. Historically, the Company’s marketable securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the available-for-sale designation as of each balance sheet date. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive loss within stockholders’ equity.
Variable Interest Entities	Variable Interest Entities A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of the VIE requires significant assumptions and judgments, including the identification of significant activities and an assessment of our ability to direct those activities. The Company has an equity interest in a privately held entity that is a VIE, of which the Company is not the primary beneficiary. Accordingly, the interest of $2.5 million as of September 30, 2015 and June 30, 2015 is recognized at cost in other assets, noncurrent on the Company’s condensed consolidated balance sheets. The Company’s interest was evaluated for impairment as of September 30, 2015 and June 30, 2015 which did not result in any indications of impairment. The Company’s maximum exposure to loss as a result of the unconsolidated VIE is $2.5 million at September 30, 2015, which represents the value of the Company’s investment in the VIE.
Interest Rate Swap	During fiscal year 2015, the Company held an interest rate swap to reduce its exposure to the financial impact of changing interest rates under its term loan facility. The swap encompassed the principal balances outstanding as of January 1, 2014 and scheduled to be outstanding thereafter, such principal and notional amount totaling $85.0 million in January 2014 and amortizing to $35.0 million in November 2016. The swap agreement exchanged a variable interest rate base (Eurodollar rate) for a fixed interest rate of 0.97% over the term of the agreement. This interest rate swap was designated as a cash flow hedge of the interest rate risk attributable to forecasted variable interest payments. The effective portion of the fair value gains or losses on this swap was included as a component of accumulated other comprehensive loss with any hedge ineffectiveness immediately recognized in earnings in the current period.
Segment Information	Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about operating segments, including net sales and operating income before depreciation, amortization and stock-based compensation expense.

Net Loss Attributable to Comm19

Net Loss Attributable to Common Stockholders and Net Loss per Share (Tables)	3 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net Loss per Share	The following table presents the calculation of basic and diluted net loss per share: Three Months Ended 2015 2014 (In thousands, except Numerator: Basic and Diluted: Net loss $ (6,079 ) $ (6,287 ) Denominator: Basic and Diluted: Weighted average shares of common stock used in computing basic and diluted net loss per share 44,836 44,266 Net loss per share: Basic and Diluted (1) $ (0.14 ) $ (0.14 ) Securities excluded from weighted average shares used in computing diluted net loss per share because the effect would have been anti-dilutive: (2) 5,448 9,774 (1) Diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred for the three months ended September 30, 2015 and 2014. The assumed issuance of any additional shares would be anti-dilutive. (2) These weighted shares relate to anti-dilutive stock options and restricted stock units as calculated using the treasury stock method and could be dilutive in the future.

Fair Value Measurements, Mark20

Fair Value Measurements, Marketable Securities and Variable Interest Entities (Tables)	3 Months Ended
	Sep. 30, 2015
Text Block [Abstract]
Schedule of Company's Financial Instruments	The Company’s financial instruments as of September 30, 2015 and June 30, 2015 were categorized as follows in the fair value hierarchy (in thousands): Fair Value Measurements as of September 30, 2015 Using Quoted Prices in Significant Other (Level 2) Total Assets: Money market funds $ 20,161 $ — $ 20,161 Liabilities: Acquisition-related promissory note (1) $ — $ 49 $ 49 Revolving loan facility (1) — 15,000 15,000 $ — $ 15,049 $ 15,049 Fair Value Measurements as of June 30, 2015 Using Quoted Prices in Significant Other (Level 2) Total Assets: Money market funds $ 20,156 $ — $ 20,156 Liabilities: Acquisition-related promissory note (1) $ — $ 49 $ 49 Revolving loan facility (1) — 15,000 15,000 $ — $ 15,049 $ 15,049 (1) These liabilities are carried at historical cost on the Company’s condensed consolidated balance sheets.

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets, net balances, excluding goodwill, consisted of the following (in thousands): September 30, 2015 June 30, 2015 Gross Carrying Amount Accumulated Net Gross Accumulated Net Customer/publisher/advertiser relationships $ 36,655 $ (34,126 ) $ 2,529 $ 37,056 $ (33,916 ) $ 3,140 Content 61,732 (55,166 ) 6,566 62,162 (54,629 ) 7,533 Website/trade/domain names 31,475 (25,340 ) 6,135 31,533 (24,697 ) 6,836 Acquired technology and others 36,733 (35,359 ) 1,374 36,742 (35,221 ) 1,521 $ 166,595 $ (149,991 ) $ 16,604 $ 167,493 $ (148,463 ) $ 19,030
Amortization Expense	Future amortization expense for the Company’s intangible assets as of September 30, 2015 was as follows (in thousands): Year Ending June 30, Amortization 2016 (remaining nine months) $ 6,854 2017 6,124 2018 1,945 2019 798 2020 773 Thereafter 110 $ 16,604

Debt (Tables)

Debt (Tables)	3 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Maturities of Debt	The maturities of the Company’s debt as of September 30, 2015 were as follows (in thousands): Year Ending June 30, Promissory Revolving Loan 2016 (remaining nine months) $ 50 $ — 2017 — 15,000 50 15,000 Less: imputed interest and unamortized discounts (1 ) — Less: current portion (49 ) — Noncurrent portion of debt $ — $ 15,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Future Annual Minimum Lease Payments under Noncancelable Operating Leases	Future annual minimum lease payments under noncancelable operating leases as of September 30, 2015 were as follows (in thousands): Year Ending June 30, Operating 2016 (remaining nine months) $ 2,769 2017 3,472 2018 3,367 2019 1,393 2020 147 Thereafter 23 $ 11,171

Stock Benefit Plans (Tables)

Stock Benefit Plans (Tables)	3 Months Ended
	Sep. 30, 2015
Stock options [Member]
Schedule of Weighted Average Assumptions	The weighted average Black-Scholes model assumptions for the three months ended September 30, 2015 and 2014 were as follows: Three Months Ended 2015 2014 Expected term (in years) 4.6 4.6 Expected volatility 47 % 46 % Expected dividend yield — — Risk-free interest rate 1.6 % 1.7 % Grant date fair value $ 2.24 $ 2.04
Market-based restricted stock units [Member]
Schedule of Weighted Average Assumptions	The weighted average Monte Carlo simulation model assumptions for the three months ended September 30, 2015 and 2014 were as follows: Three Months Ended 2015 2014 Vesting period (in years) 4.0 — Expected volatility 47 % — Expected dividend yield — — Risk-free interest rate 1.3 % — Grant date fair value $ 6.18 —

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Summarized Information by Segment	Summarized information by segment was as follows (in thousands): Three Months Ended 2015 2014 Net revenue by segment: DMS $ 72,389 $ 68,932 All Other — 257 Total net revenue 72,389 69,189 Segment operating income before depreciation, amortization, and stock-based compensation expense: DMS 918 75 All Other — 164 Total segment operating income before depreciation, amortization, and stock-based compensation expense 918 239 Depreciation and amortization (3,944 ) (5,422 ) Stock-based compensation expense (2,504 ) (2,275 ) Total operating loss $ (5,530 ) $ (7,458 )
Net Revenue and Long-Lived Assets by Geographic Area	The following tables set forth net revenue and long-lived assets by geographic area (in thousands): Three Months Ended 2015 2014 Net revenue: United States $ 71,226 $ 68,070 International 1,163 1,119 Total net revenue $ 72,389 $ 69,189 September 30, June 30, 2015 2015 Property and equipment, net: United States $ 8,460 $ 8,313 International 273 252 Total property and equipment, net $ 8,733 $ 8,565

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Additional Information (Detail) - Clients	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2015	Jun. 30, 2015
Accounting Policies [Abstract]
Number of clients accounted for 10% or more of net revenue			0	0
Number of clients accounted for 10% or more of net accounts receivable	0	0

Net Loss Attributable to Comm27

Net Loss Attributable to Common Stockholders and Net Loss per Share - Calculation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Basic and Diluted:
Net loss	$ (6,079)	$ (6,287)
Basic and Diluted:
Weighted average shares of common stock used in computing basic and diluted net loss per share	44,836	44,266
Net loss per share:
Basic and Diluted	$ (0.14)	$ (0.14)
Securities excluded from weighted average shares used in computing diluted net loss per share because the effect would have been anti-dilutive:	5,448	9,774

Fair Value Measurements, Mark28

Fair Value Measurements, Marketable Securities and Variable Interest Entities - Schedule of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Liabilities:
Liabilities, Fair Value Measurements	$ 15,049	$ 15,049
Revolving loan facility [Member]
Liabilities:
Liabilities, Fair Value Measurements	15,000	15,000
Promissory Note [Member]
Liabilities:
Liabilities, Fair Value Measurements	49	49
Money market funds [Member]
Assets:
Assets, Fair Value Measurements	20,161	20,156
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member]
Assets:
Assets, Fair Value Measurements	20,161	20,156
Significant Other Observable Inputs (Level 2) [Member]
Liabilities:
Liabilities, Fair Value Measurements	15,049	15,049
Significant Other Observable Inputs (Level 2) [Member] | Revolving loan facility [Member]
Liabilities:
Liabilities, Fair Value Measurements	15,000	15,000
Significant Other Observable Inputs (Level 2) [Member] | Promissory Note [Member]
Liabilities:
Liabilities, Fair Value Measurements	$ 49	$ 49

Fair Value Measurements, Mark29

Fair Value Measurements, Marketable Securities and Variable Interest Entities - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2015USD ($)Securities	Sep. 30, 2014USD ($)	Jun. 30, 2015USD ($)Securities
Schedule of Money Market Funds Available for Sale Securities and Held to Maturity Securities [Line Items]
Marketable securities	$ 0		$ 0
Realized gains (losses) from sales of securities	$ 0	$ 0
Number of securities hold maturity greater than one year | Securities	0		0
Money market funds [Member]
Schedule of Money Market Funds Available for Sale Securities and Held to Maturity Securities [Line Items]
Money market funds	$ 20,200,000		$ 20,200,000
VIE not primary beneficiary [Member]
Schedule of Money Market Funds Available for Sale Securities and Held to Maturity Securities [Line Items]
Maximum exposure to loss as a result of unconsolidated VIE	2,500,000
VIE not primary beneficiary [Member] | Other assets, noncurrent [Member]
Schedule of Money Market Funds Available for Sale Securities and Held to Maturity Securities [Line Items]
Interest recognized at cost	$ 2,500,000		$ 2,500,000

Intangible Assets and Goodwil30

Intangible Assets and Goodwill - Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 166,595	$ 167,493
Accumulated Amortization	(149,991)	(148,463)
Net Carrying Amount	16,604	19,030
Customer/publisher/advertiser relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,655	37,056
Accumulated Amortization	(34,126)	(33,916)
Net Carrying Amount	2,529	3,140
Content [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	61,732	62,162
Accumulated Amortization	(55,166)	(54,629)
Net Carrying Amount	6,566	7,533
Website/trade/domain names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,475	31,533
Accumulated Amortization	(25,340)	(24,697)
Net Carrying Amount	6,135	6,836
Acquired technology and others [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,733	36,742
Accumulated Amortization	(35,359)	(35,221)
Net Carrying Amount	$ 1,374	$ 1,521

Intangible Assets and Goodwil31

Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 2,400	$ 3,800
Goodwill	$ 56,118		$ 56,118

Intangible Assets and Goodwil32

Intangible Assets and Goodwill - Amortization Expense (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (remaining nine months)	$ 6,854
2,017	6,124
2,018	1,945
2,019	798
2,020	773
Thereafter	110
Net Carrying Amount	$ 16,604

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 365,000	$ 0

Debt - Additional Information (

Debt - Additional Information (Detail)	Jun. 11, 2015USD ($)	Jul. 17, 2014USD ($)	Jun. 30, 2015USD ($)	Nov. 30, 2011USD ($)	Sep. 30, 2015USD ($)	Feb. 15, 2013USD ($)
Debt Instrument [Line Items]
Adjusted EBITDA					$ 5,000,000
Letter of credit agreement with a financial institution that is used as collateral for fidelity bonds placed with an insurance company					400,000
Letter of credit agreement with a financial institution that is used as collateral for the Company's corporate headquarters' operating lease					$ 500,000
Letters of credit automatically renew annually without amendment on the annual expiration date					30 days
Quarter ended June 30, 2015 [Member]
Debt Instrument [Line Items]
Minimum EBITDA					$ 1
Quarter ended September 30, 2015 [Member]
Debt Instrument [Line Items]
Minimum EBITDA					2,000,000
Quarter ending December 31, 2015 [Member]
Debt Instrument [Line Items]
Minimum EBITDA					3,000,000
Quarter ending March 31, 2016 [Member]
Debt Instrument [Line Items]
Minimum EBITDA					4,000,000
Quarter ending June 30, 2016 [Member]
Debt Instrument [Line Items]
Minimum EBITDA					5,000,000
Interest rate swap [Member]
Debt Instrument [Line Items]
Derivative notional amount outstanding in the swap agreement	$ 85,000,000
Principal balance at maturity	$ 35,000,000
Interest rate swap effectively fixes the Eurodollar rate	0.97%
Interest rate swap [Member] | Other (expense) income, net [Member]
Debt Instrument [Line Items]
Expense recognized upon termination of agreement			$ 300,000
Revolving loan facility [Member]
Debt Instrument [Line Items]
Loan facility, total				$ 200,000,000
Loan facility, term				5 years
Annual facility fee					$ 62,500
Annual unused fee, percentage					0.25%
Revolving loan facility, covenant terms					1. Minimum EBITDA as of the end of each fiscal quarter for the trailing twelve month period of not less than (a) $1 for the quarter ended June 30, 2015; (b) $2,000,000 for the quarter ended September 30, 2015; (c) $3,000,000 for the quarter ending December 31, 2015; (d) $4,000,000 for the quarter ending March 31, 2016;(e) $5,000,000 for the quarter ending June 30, 2016. Thereafter, minimum EBITDA increases each quarter in $1,000,000 increments; provided that there shall be no loss in EBITDA greater than $2,000,000 in any fiscal quarter during such trailing four quarter period. 2. Minimum adjusted quick ratio as of the end of each month of not less than 1.25 to 1.00.
Minimum adjusted quick ratio					1.25
Outstanding amount			$ 15,000,000		$ 15,000,000
Revolving loan facility [Member] | First Amendment [Member]
Debt Instrument [Line Items]
Loan Amendment date					Feb. 15, 2013
Loan facility, current						$ 100,000,000
Revolving loan facility [Member] | Second Amended Agreement [Member] | Base rate plus [Member]
Debt Instrument [Line Items]
Applicable margin on borrowings rate		1.375%
Revolving loan facility [Member] | Second Amended Agreement [Member] | Eurodollar rate plus [Member]
Debt Instrument [Line Items]
Applicable margin on borrowings rate		2.375%
Revolving loan facility [Member] | Third Amendment [Member]
Debt Instrument [Line Items]
Loan facility, total	$ 50,000,000
Loan Amendment date					Jun. 11, 2015
Loan facility, current	25,000,000
Acceleration of unamortized deferred upfront costs	$ 500,000
Credit Agreement expiration date					Nov. 4, 2016
Credit Agreement extended expiration date					Jun. 11, 2017
Revolving loan facility [Member] | Third Amendment [Member] | Eurodollar rate plus [Member]
Debt Instrument [Line Items]
Applicable margin on borrowings rate	3.00%
Revolving loan facility [Member] | Second Amendment [Member]
Debt Instrument [Line Items]
Loan facility, total		$ 100,000,000
Loan Amendment date					Jul. 17, 2014
Loan facility, current		50,000,000
Upfront arrangement fees incurred in connection with the term loan facility		300,000
Acceleration of unamortized deferred upfront costs		$ 300,000
Term loan facility [Member]
Debt Instrument [Line Items]
Loan facility, total				$ 100,000,000
Percentage of amortization with principal of term loan facility year one				5.00%
Percentage of amortization with principal of term loan facility year two				10.00%
Percentage of amortization with principal of term loan facility year three				15.00%
Percentage of amortization with principal of term loan facility year four				20.00%
Percentage of amortization with principal of term loan facility year five				50.00%
Loan facility, term				5 years
Term loan facility [Member] | Second Amended Agreement [Member] | Base rate plus [Member]
Debt Instrument [Line Items]
Applicable margin on borrowings rate		1.75%
Term loan facility [Member] | Second Amended Agreement [Member] | Eurodollar rate plus [Member]
Debt Instrument [Line Items]
Applicable margin on borrowings rate		2.75%

Debt - Maturities of Debt (Deta

Debt - Maturities of Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Less: current portion	$ (49)	$ (49)
Noncurrent portion of debt	15,000	$ 15,000
Promissory Note [Member]
Debt Instrument [Line Items]
2016 (remaining nine months)	50
Long term debt, total	50
Less: imputed interest and unamortized discounts	(1)
Less: current portion	(49)
Long term debt, total	50
Revolving loan facility [Member]
Debt Instrument [Line Items]
2,017	15,000
Long term debt, total	15,000
Noncurrent portion of debt	15,000
Long term debt, total	$ 15,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense for office space	$ 800,000	$ 900,000
Leases expiration year	2,021
Estimated fair value of indemnification agreements	$ 0		$ 0
Fair value of indemnity provisions	$ 0		$ 0

Commitments and Contingencies37

Commitments and Contingencies - Future Annual Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016 (remaining nine months)	$ 2,769
2,017	3,472
2,018	3,367
2,019	1,393
2,020	147
Thereafter	23
Operating Leases, Future Minimum Payments Due, Total	$ 11,171

Stock Benefit Plans - Additiona

Stock Benefit Plans - Additional Information (Detail)	Sep. 30, 2015shares
2010 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance	13,642,714
Shares available for issuance	11,607,433
Directors' Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance	2,789,628
Shares available for issuance	1,529,862

Stock Benefit Plans - Schedule

Stock Benefit Plans - Schedule of Weighted Average Assumptions (Detail) - $ / shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 7 months 6 days	4 years 7 months 6 days
Expected volatility	47.00%	46.00%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.60%	1.70%
Grant date fair value	$ 2.24	$ 2.04
Market-based restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Expected volatility	47.00%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.30%
Grant date fair value	$ 6.18

Segment Information - Summarize

Segment Information - Summarized Information by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Total net revenue	$ 72,389	$ 69,189
Total segment operating income before depreciation, amortization, and stock-based compensation expense	918	239
Depreciation and amortization	(3,944)	(5,422)
Stock-based compensation expense	(2,504)	(2,275)
Operating loss	(5,530)	(7,458)
DMS [Member]
Segment Reporting Information [Line Items]
Total net revenue	72,389	68,932
Total segment operating income before depreciation, amortization, and stock-based compensation expense	$ 918	75
All Other Segments [Member]
Segment Reporting Information [Line Items]
Total net revenue		257
Total segment operating income before depreciation, amortization, and stock-based compensation expense		$ 164

Segment Information - Net Reven

Segment Information - Net Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Net revenue:
Total net revenue	$ 72,389	$ 69,189
Property and equipment, net:
Total property and equipment, net	8,733		$ 8,565
United States [Member]
Net revenue:
Total net revenue	71,226	68,070
Property and equipment, net:
Total property and equipment, net	8,460		8,313
International [Member]
Net revenue:
Total net revenue	1,163	$ 1,119
Property and equipment, net:
Total property and equipment, net	$ 273		$ 252