QuinStreet (QNST) 10-Q 10 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		45,462,094

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 41,744	$ 53,710
Accounts receivable, net	43,107	47,218
Prepaid expenses and other assets	7,130	7,055
Total current assets	91,981	107,983
Property and equipment, net	6,277	7,678
Goodwill	56,118	56,118
Other intangible assets, net	5,300	10,081
Other assets, noncurrent	10,474	11,242
Total assets	170,150	193,102
Current liabilities:
Accounts payable	20,874	19,814
Accrued liabilities	26,185	27,705
Deferred revenue	1,040	1,200
Debt		15,000
Total current liabilities	48,099	63,719
Other liabilities, noncurrent	3,733	4,631
Total liabilities	51,832	68,350
Commitments and contingencies (See Note 9)
Stockholders' equity:
Common stock: $0.001 par value; 100,000,000 shares authorized; 45,525,436 and 45,557,295 shares issued and outstanding at March 31, 2017 and June 30, 2016	45	45
Additional paid-in capital	262,391	257,950
Accumulated other comprehensive loss	(453)	(418)
Accumulated deficit	(143,665)	(132,825)
Total stockholders' equity	118,318	124,752
Total liabilities and stockholders' equity	$ 170,150	$ 193,102

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Jun. 30, 2016
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	45,525,436	45,557,295
Common stock, shares outstanding	45,525,436	45,557,295

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net revenue		$ 79,205	$ 81,243	$ 218,253	$ 218,593
Cost of revenue	[1]	69,338	72,956	198,803	199,220
Gross profit		9,867	8,287	19,450	19,373
Operating expenses:
Product development	[1]	3,147	4,214	10,415	12,501
Sales and marketing	[1]	2,243	2,898	7,001	9,502
General and administrative	[1]	4,023	4,348	11,848	12,706
Restructuring charges	[1]	38		2,441
Operating income (loss)		416	(3,173)	(12,255)	(15,336)
Interest income		42	23	99	39
Interest expense		(31)	(155)	(322)	(433)
Other income, net		142	112	252	120
Income (loss) before income taxes		569	(3,193)	(12,226)	(15,610)
Benefit from (provision for) taxes		10	(72)	1,386	(477)
Net income (loss)		$ 579	$ (3,265)	$ (10,840)	$ (16,087)
Net income (loss) per share:
Basic		$ 0.01	$ (0.07)	$ (0.24)	$ (0.36)
Diluted	[2]	$ 0.01	$ (0.07)	$ (0.24)	$ (0.36)
Weighted-average shares used in computing net income (loss) per share:
Basic		45,507	45,333	45,636	45,098
Diluted		45,722	45,333	45,636	45,098
[1]	Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $691 $969 $2,390 $2,826 Product development 424 576 1,431 1,761 Sales and marketing 291 501 868 1,482 General and administrative 671 770 2,095 2,270 Restructuring charges — — 42 —
[2]	Diluted net loss per share does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred for the nine months ended March 31, 2017 and three and nine months ended March 31, 2016. The assumed issuance of any additional shares would be anti-dilutive.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Cost of revenue [Member]
Stock-based compensation	$ 691	$ 969	$ 2,390	$ 2,826
Product development [Member]
Stock-based compensation	424	576	1,431	1,761
Sales and marketing [Member]
Stock-based compensation	291	501	868	1,482
General and administrative [Member]
Stock-based compensation	$ 671	$ 770	2,095	$ 2,270
Restructuring charges [Member]
Stock-based compensation			$ 42

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 579	$ (3,265)	$ (10,840)	$ (16,087)
Other comprehensive loss:
Foreign currency translation adjustment	(41)	(6)	(35)	(13)
Total other comprehensive loss	(41)	(6)	(35)	(13)
Comprehensive income (loss)	$ 538	$ (3,271)	$ (10,875)	$ (16,100)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities
Net loss	$ (10,840)	$ (16,087)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	8,983	11,437
Provision for sales returns and doubtful accounts receivable	109	843
Stock-based compensation	6,826	8,339
Gain on sales of domain names	(154)	(160)
Other adjustments, net	(7)
Changes in assets and liabilities:
Accounts receivable	4,002	(4,103)
Prepaid expenses and other assets	583	(3,968)
Deferred taxes	(510)	(8)
Accounts payable	1,109	2,121
Accrued liabilities	(1,277)	3,007
Deferred revenue	(160)	(305)
Other liabilities, noncurrent	(388)	(327)
Net cash provided by operating activities	8,276	789
Cash Flows from Investing Activities
Capital expenditures	(978)	(1,689)
Internal software development costs	(1,734)	(2,689)
Proceeds from sales of domain names	154	135
Other investing activities	(133)	(2)
Net cash used in investing activities	(2,691)	(4,245)
Cash Flows from Financing Activities
Proceeds from exercise of common stock options		26
Withholding taxes related to restricted stock, net of share settlement	(765)	(2,139)
Repurchases of common stock	(1,766)
Repayment of revolving loan facility	(15,000)
Net cash used in financing activities	(17,531)	(2,113)
Effect of exchange rate changes on cash and cash equivalents	(20)	(97)
Net decrease in cash and cash equivalents	(11,966)	(5,666)
Cash and cash equivalents at beginning of period	53,710	60,468
Cash and cash equivalents at end of period	41,744	54,802
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	295	492
Cash paid for income taxes	$ 368	$ 729

The Company

The Company	9 Months Ended
	Mar. 31, 2017
Organization [Abstract]
The Company	1. The Company QuinStreet, Inc. (the “Company”) is a leader in performance marketing products and technologies. The Company was incorporated in California in April 1999 and reincorporated in Delaware in December 2009. The Company specializes in customer acquisition for clients in high value, information-intensive markets or “verticals,” including financial services, education, home services and business-to-business technology. The corporate headquarters are located in Foster City, California, with additional offices throughout the United States, Brazil and India. While the majority of the Company’s operations and revenue are in North America, the Company has emerging businesses in Brazil and India.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2017
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. Revision of Previously Issued Financial Statements During the quarter ended June 30, 2016, the Company identified errors related to its stock-based compensation expense included in the unaudited condensed consolidated financial statements for the quarterly periods ended September 30, 2015, December 31, 2015 and March 31, 2016. The stock-based compensation expense related to market-based restricted stock units was understated by $1.1 million through the nine months ended March 31, 2016. The Company assessed the materiality of the above errors individually and in the aggregate on prior periods’ financial statements in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, concluded that such amounts were not material to the September 30, 2015, December 31, 2015 and March 31, 2016 quarterly condensed consolidated financial statements. Therefore, these previously issued financial statements can continue to be relied upon and amendments of the previously filed Quarterly Reports on Form 10-Q were not required. In the Quarterly Report on Form 10-Q for the quarterly periods ended September 30, 2016 and December 31, 2016, the Company has revised the previously issued quarterly condensed consolidated financial statements to correct the error for the quarterly periods ended September 30, 2015 and December 31, 2015 of $0.3 million and $0.4 million. The Company has reflected the correction of the error of $0.4 million and $1.1 million in the condensed consolidated statement of operations and condensed consolidated statement of comprehensive loss for the three and nine months ended March 31, 2016 and $1.1 million in the condensed consolidated statement of cash flows for the nine months ended March 31, 2016 included herein. Unaudited Interim Financial Information The accompanying condensed consolidated financial statements and the notes to the condensed consolidated financial statements as of March 31, 2017 and for the three and nine months ended March 31, 2017 and 2016 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, 2016, as filed with the SEC on August 19, 2016. The condensed consolidated balance sheet at June 30, 2016 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 March 31, 2017, its condensed consolidated statements of operations for the three and nine months ended March 31, 2017 and 2016, its condensed consolidated statements of comprehensive income (loss) for the three and nine months ended March 31, 2017 and 2016, and its condensed consolidated statements of cash flows for the nine months ended March 31, 2017 and 2016. The results of operations for the three and nine months ended March 31, 2017 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2017, 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, 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, 2016. There have been no significant changes in the accounting policies subsequent to June 30, 2016. Concentrations of Credit Risk The Company had one client that accounted for 20% and 14% of net revenue for the three and nine months ended March 31, 2017 and 16% and 11% of net revenue for the three and nine months ended March 31, 2016. No other client accounted for 10% or more of net revenue for the three and nine months ended March 31, 2017 and 2016. The Company had one client that accounted for 13% of net accounts receivable as of March 31, 2017. No other client accounted for 10% or more of net accounts receivable as of March 31, 2017 and no client accounted for 10% or more of net accounts receivable as of June 30, 2016. Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash equivalents, accounts receivable and accounts payable. 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. 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. In March and April 2016, the FASB amended this standard to clarify implementation guidance on principal versus agent considerations and the identification of performance obligations and licensing. In May 2016, the FASB amended this standard to address improvements to the guidance on collectability, noncash consideration, and completed contracts at transition as well as provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The new standards become effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the new standards. The Company is currently assessing the impact of this new guidance and has not selected the method of transition. 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 share-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 became effective in the current fiscal year and did not have an impact on the Company’s condensed consolidated financial statements. In February 2015, the FASB issued a new accounting standard update on consolidating legal entities in which a reporting entity holds a variable interest The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs and affects the consolidation analysis of reporting entities that are involved with VIEs that have fee arrangements and related party relationships In February 2016, the FASB issued a new accounting standard update which replaces ASC 840, “Leases.” The new guidance requires a lessee to recognize on its balance sheet a right-of-use asset representing its right to use the underlying asset for the lease term and a lease liability representing its lease payment obligations. The guidance also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The guidance becomes effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In March 2016, the FASB issued a new accounting standard update on the accounting for share-based payments. The new guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance becomes effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. In January 2017, the FASB issued a new accounting standard update to simplify the measurement of goodwill by eliminating the Step 2 impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standard is not expected to have an impact on the Company’s condensed consolidated financial statements.

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Income (Loss) per Share	3. Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (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 income (loss) per share: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 (In (In thousands, except per share data) Numerator: Basic and Diluted: Net income (loss) $ 579 $ (3,265 ) $ (10,840 ) $ (16,087 ) Denominator: Basic: Weighted-average shares of common stock used in computing basic net income (loss) per share 45,507 45,333 45,636 45,098 Diluted: Weighted-average shares of common stock used in computing basic net income (loss) per share 45,507 45,333 45,636 45,098 Weighted-average effect of dilutive securities: Stock options 11 — — — Restricted stock units 204 — — — Weighted-average shares of common stock used in computing diluted net income (loss) per share 45,722 45,333 45,636 45,098 Net income (loss) per share: Basic $ 0.01 $ (0.07 ) $ (0.24 ) $ (0.36 ) Diluted (1) $ 0.01 $ (0.07 ) $ (0.24 ) $ (0.36 ) Securities excluded from weighted-average shares used in computing diluted net income (loss) per share because the effect would have been anti-dilutive: (2) 5,237 6,929 6,472 5,287 (1) Diluted net loss per share does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred for the nine months ended March 31, 2017 and three and nine months ended March 31, 2016. The assumed issuance of any additional shares would be anti-dilutive. (2)

Fair Value Measurements, Cash E

Fair Value Measurements, Cash Equivalents and Variable Interest Entities	9 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements, Cash Equivalents and Variable Interest Entities	4. Fair Value Measurements, Cash Equivalents 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 March 31, 2017, 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 March 31, 2017, the Company did not have any Level 2 financial assets or liabilities. 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 March 31, 2017, the Company did not have any Level 3 financial assets or liabilities. The Company’s financial instruments as of March 31, 2017 and June 30, 2016 were categorized as follows in the fair value hierarchy (in thousands): Fair Quoted Prices in Significant Other Active Markets Observable for Inputs (Level 1) (Level 2) Total Assets: Money market funds $ 10,425 $ — $ 10,425 Fair Value Measurements as of June 30, 2016 Using Quoted Prices in Significant Other Active Markets Observable for Identical Assets Inputs (Level 1) (Level 2) Total Assets: Money market funds $ 20,203 $ — $ 20,203 Liabilities: Revolving loan facility (1) $ — $ 15,000 $ 15,000 (1) Carried at historical cost on the Company's condensed consolidated balance sheet. Cash Equivalents All liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents on the Company’s condensed consolidated balance sheets. The Company holds money market funds of $10.4 million as of March 31, 2017 and $20.2 million as of June 30, 2016 which are classified as cash equivalents. 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 the Company’s 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 March 31, 2017 and June 30, 2016 is recognized at cost within other assets, noncurrent on the Company’s condensed consolidated balance sheets. The Company’s interest was evaluated for impairment as of March 31, 2017 and June 30, 2016 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 March 31, 2017, which represents the carrying value of the Company’s investment in the VIE.

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	9 Months Ended
	Mar. 31, 2017
Prepaid Expense And Other Assets [Abstract]
Prepaid Expenses and Other Assets	5. Prepaid Expenses and Other Assets During the three months ended December 31, 2015, the Company entered into a 10-year partnership agreement with a large online customer acquisition marketing company focused on the U.S. insurance industry to be their exclusive click monetization partner for the majority of their insurance categories. The agreement included a one-time upfront cash payment of $10.0 million. The payment is being amortized on a straight-line basis over the life of the contract. As of March 31, 2017, the Company has recorded $1.0 million within prepaid expenses and other assets and $7.5 million within other assets, noncurrent on the condensed consolidated balance sheet. As of June 30, 2016, the Company had recorded $1.0 million within prepaid expenses and other assets and $8.3 million within other assets, noncurrent on the condensed consolidated balance sheet. Amortization expense was $0.2 million and $0.8 million for the three and nine months ended March 31, 2017 and $0.3 million and $0.5 million for the three and nine months ended March 31, 2016.

Intangible Assets

Intangible Assets	9 Months Ended
	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	6. Intangible Assets Intangible assets, net, consisted of the following (in thousands): March 31, 2017 June 30, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer/publisher/advertiser relationships $ 36,909 $ (36,577 ) $ 332 $ 36,669 $ (35,648 ) $ 1,021 Content 61,521 (59,908 ) 1,613 61,717 (57,778 ) 3,939 Website/trade/domain names 31,287 (28,479 ) 2,808 31,470 (27,288 ) 4,182 Acquired technology and others 36,733 (36,186 ) 547 36,733 (35,794 ) 939 Total $ 166,450 $ (161,150 ) $ 5,300 $ 166,589 $ (156,508 ) $ 10,081 Amortization of intangible assets was $1.4 million and $5.0 million for the three and nine months ended March 31, 2017 and $2.1 million and $6.8 million for the three and nine months ended March 31, 2016. Future amortization expense for the Company’s intangible assets as of March 31, 2017 was as follows (in thousands): Fiscal Year Ending June 30, Amortization 2017 (remaining three months) $ 1,174 2018 2,332 2019 863 2020 761 2021 170 Thereafter — Total $ 5,300

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	7. 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 March 31, 2017 as the Company believes it is not more likely than not that the net deferred tax assets will be fully realizable. The Company recorded an immaterial benefit from income taxes for the three months ended March 31, 2017. The Company recorded a benefit from income taxes of $1.4 million for the nine months ended March 31, 2017 as a result of a tax refund from an amended state tax return filing. The Company recorded a provision for income taxes of $0.1 million and $0.5 million for the three and nine months ended March 31, 2016, primarily due to the outcome of a state tax examination.

Debt

Debt	9 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	8. Debt Loan Facility The Company’s credit agreement with Comerica Bank (the “Bank”) on November 4, 2011 (as amended on February 15, 2013, July 17, 2014 and June 11, 2015, the “Credit Agreement”) consists of a $25.0 million revolving loan facility with a maturity date of June 11, 2017. Borrowings under the revolving loan facility bear interest at a Eurodollar rate plus 3.00% and is secured by substantially all of the Company’s assets. 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 commitment. The Company has the right to prepay the revolving loan facility or permanently reduce the revolving loan facility commitment without premium or penalty, in whole or in part at any time. Borrowings under the revolving loan facility are subject to a borrowing base consisting of eligible receivables and certain other customary conditions. 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, 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 ended December 31, 2015; (d) $4,000,000 for the quarter ended March 31, 2016; and (e) $5,000,000 for the quarter ended 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. EBITDA under the Credit Agreement is defined as net income (loss) less benefit from (provision for) taxes, depreciation expense, amortization expense, stock-based compensation expense, interest and other income, 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 was in compliance with the covenants of the Credit Agreement, as amended, as of March 31, 2017 and June 30, 2016. As of March 31, 2017, there were no amounts outstanding under the revolving loan facility. As of June 30, 2016, $15.0 million was outstanding under the revolving loan facility. 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	9 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Leases The Company leases office space under non-cancelable operating leases with various expiration dates through fiscal year 2021. Rent expense was $0.8 million and $2.5 million for the three and nine months ended March 31, 2017 and $0.8 million and $2.5 million for the three and nine months ended March 31, 2016. 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 March 31, 2017 were as follows (in thousands): Operating Fiscal Year Ending June 30, Leases 2017 (remaining three months) $ 926 2018 3,641 2019 1,668 2020 379 2021 46 Thereafter — Total $ 6,660 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 March 31, 2017 and June 30, 2016. 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 indemnification 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 March 31, 2017 and June 30, 2016.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity	10. Stockholders’ Equity Stock Repurchases In November 2016, the Board of Directors authorized a stock repurchase program allowing the Company to repurchase up to 750,000 outstanding shares of its common stock with an expiration date of November 2017. During the three months ended March 31, 2017, the Company repurchased and retired 187,500 shares of its common stock at a weighted average price of $3.82 per share, excluding a broker c total cost of $0.7 million

Stock Benefit Plans

Stock Benefit Plans	9 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Benefit Plans	11. 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 to employees 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 March 31, 2017, 15,920,578 shares were reserved and 13,610,855 shares were available for issuance under the 2010 Incentive Plan; 3,359,964 shares were reserved and 1,575,411 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 closing price of the Company’s common stock on the date of grant. The weighted-average Black-Scholes model assumptions for the three and nine months ended March 31, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Expected term (in years) 4.5 3.5 4.6 3.9 Expected volatility 46 % 43 % 45 % 43 % Expected dividend yield — — — — Risk-free interest rate 1.9 % 1.1 % 1.3 % 1.0 % Grant date fair value $ 1.44 $ 0.98 $ 1.40 $ 1.89 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 and nine months ended March 31, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Expected term (in years) 4.0 4.0 4.0 4.0 Expected volatility 46 % 45 % 45 % 47 % Expected dividend yield — — — — Risk-free interest rate 2.0 % 1.5 % 1.1 % 1.3 % Grant date fair value $ 3.02 $ 3.22 $ 2.99 $ 5.08 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	9 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	12. 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, its chief executive officer, reviews financial information presented on a consolidated basis and no expense or operating income is evaluated at a segment level. Given the consolidated level of review by the Company’s chief executive officer, the Company operates as one reportable segment. The following tables set forth net revenue and long-lived assets by geographic area (in thousands): Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Net revenue: United States $ 76,863 $ 79,351 $ 213,220 $ 214,017 International 2,342 1,892 5,033 4,576 Total net revenue $ 79,205 $ 81,243 $ 218,253 $ 218,593 March 31, June 30, 2017 2016 Property and equipment, net: United States $ 5,730 $ 6,973 International 547 705 Total property and equipment, net $ 6,277 $ 7,678

Restructuring Costs

Restructuring Costs	9 Months Ended
	Mar. 31, 2017
Restructuring And Related Activities [Abstract]
Restructuring Costs	13. Restructuring Costs In November 2016, the Company announced a corporate restructuring in order to accelerate margin expansion and grow cash flow. The following table summarizes the restructuring charges for the periods (in thousands): Three Months Ended Nine Months Ended March 31, 2017 March 31, 2017 Employee severance and benefits $ 38 $ 2,399 Non-cash employee severance and benefits - stock-based compensation — 42 Total $ 38 $ 2,441 The costs were paid in cash during the nine months ended March 31, 2017. The corporate restructuring was substantially completed during the three months ended March 31, 2017 and predominantly all costs have been recognized.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	14. Subsequent Events In April 2017, the Company repurchased 64,077 shares of its common stock at a weighted average price of $3.86, excluding a broker commission of $0.03 per share, at a total cost of $0.2 million.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2017
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.
Revision of Previously Issued Financial Statements	Revision of Previously Issued Financial Statements During the quarter ended June 30, 2016, the Company identified errors related to its stock-based compensation expense included in the unaudited condensed consolidated financial statements for the quarterly periods ended September 30, 2015, December 31, 2015 and March 31, 2016. The stock-based compensation expense related to market-based restricted stock units was understated by $1.1 million through the nine months ended March 31, 2016. The Company assessed the materiality of the above errors individually and in the aggregate on prior periods’ financial statements in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, concluded that such amounts were not material to the September 30, 2015, December 31, 2015 and March 31, 2016 quarterly condensed consolidated financial statements. Therefore, these previously issued financial statements can continue to be relied upon and amendments of the previously filed Quarterly Reports on Form 10-Q were not required. In the Quarterly Report on Form 10-Q for the quarterly periods ended September 30, 2016 and December 31, 2016, the Company has revised the previously issued quarterly condensed consolidated financial statements to correct the error for the quarterly periods ended September 30, 2015 and December 31, 2015 of $0.3 million and $0.4 million. The Company has reflected the correction of the error of $0.4 million and $1.1 million in the condensed consolidated statement of operations and condensed consolidated statement of comprehensive loss for the three and nine months ended March 31, 2016 and $1.1 million in the condensed consolidated statement of cash flows for the nine months ended March 31, 2016 included herein.
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 March 31, 2017 and for the three and nine months ended March 31, 2017 and 2016 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, 2016, as filed with the SEC on August 19, 2016. The condensed consolidated balance sheet at June 30, 2016 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 March 31, 2017, its condensed consolidated statements of operations for the three and nine months ended March 31, 2017 and 2016, its condensed consolidated statements of comprehensive income (loss) for the three and nine months ended March 31, 2017 and 2016, and its condensed consolidated statements of cash flows for the nine months ended March 31, 2017 and 2016. The results of operations for the three and nine months ended March 31, 2017 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2017, 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, 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, 2016. There have been no significant changes in the accounting policies subsequent to June 30, 2016.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company had one client that accounted for 20% and 14% of net revenue for the three and nine months ended March 31, 2017 and 16% and 11% of net revenue for the three and nine months ended March 31, 2016. No other client accounted for 10% or more of net revenue for the three and nine months ended March 31, 2017 and 2016. The Company had one client that accounted for 13% of net accounts receivable as of March 31, 2017. No other client accounted for 10% or more of net accounts receivable as of March 31, 2017 and no client accounted for 10% or more of net accounts receivable as of June 30, 2016.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash equivalents, accounts receivable and accounts payable. 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.
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. In March and April 2016, the FASB amended this standard to clarify implementation guidance on principal versus agent considerations and the identification of performance obligations and licensing. In May 2016, the FASB amended this standard to address improvements to the guidance on collectability, noncash consideration, and completed contracts at transition as well as provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The new standards become effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the new standards. The Company is currently assessing the impact of this new guidance and has not selected the method of transition. 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 share-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 became effective in the current fiscal year and did not have an impact on the Company’s condensed consolidated financial statements. In February 2015, the FASB issued a new accounting standard update on consolidating legal entities in which a reporting entity holds a variable interest The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs and affects the consolidation analysis of reporting entities that are involved with VIEs that have fee arrangements and related party relationships In February 2016, the FASB issued a new accounting standard update which replaces ASC 840, “Leases.” The new guidance requires a lessee to recognize on its balance sheet a right-of-use asset representing its right to use the underlying asset for the lease term and a lease liability representing its lease payment obligations. The guidance also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The guidance becomes effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In March 2016, the FASB issued a new accounting standard update on the accounting for share-based payments. The new guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance becomes effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. In January 2017, the FASB issued a new accounting standard update to simplify the measurement of goodwill by eliminating the Step 2 impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standard is not expected to have an impact on the Company’s condensed consolidated financial statements.
Net Income (Loss) per Share	Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (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 March 31, 2017, 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 March 31, 2017, the Company did not have any Level 2 financial assets or liabilities. 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 March 31, 2017, the Company did not have any Level 3 financial assets or liabilities.
Cash Equivalents	Cash Equivalents All liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents on the Company’s condensed consolidated balance sheets. The Company holds money market funds of $10.4 million as of March 31, 2017 and $20.2 million as of June 30, 2016 which are classified as cash equivalents.
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 the Company’s 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 March 31, 2017 and June 30, 2016 is recognized at cost within other assets, noncurrent on the Company’s condensed consolidated balance sheets. The Company’s interest was evaluated for impairment as of March 31, 2017 and June 30, 2016 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 March 31, 2017, which represents the carrying value of the Company’s investment in the VIE.
Stock Repurchases	The Company’s
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, its chief executive officer, reviews financial information presented on a consolidated basis and no expense or operating income is evaluated at a segment level. Given the consolidated level of review by the Company’s chief executive officer, the Company operates as one reportable segment.

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net Income (Loss) per Share	The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 (In (In thousands, except per share data) Numerator: Basic and Diluted: Net income (loss) $ 579 $ (3,265 ) $ (10,840 ) $ (16,087 ) Denominator: Basic: Weighted-average shares of common stock used in computing basic net income (loss) per share 45,507 45,333 45,636 45,098 Diluted: Weighted-average shares of common stock used in computing basic net income (loss) per share 45,507 45,333 45,636 45,098 Weighted-average effect of dilutive securities: Stock options 11 — — — Restricted stock units 204 — — — Weighted-average shares of common stock used in computing diluted net income (loss) per share 45,722 45,333 45,636 45,098 Net income (loss) per share: Basic $ 0.01 $ (0.07 ) $ (0.24 ) $ (0.36 ) Diluted (1) $ 0.01 $ (0.07 ) $ (0.24 ) $ (0.36 ) Securities excluded from weighted-average shares used in computing diluted net income (loss) per share because the effect would have been anti-dilutive: (2) 5,237 6,929 6,472 5,287 (1) Diluted net loss per share does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred for the nine months ended March 31, 2017 and three and nine months ended March 31, 2016. The assumed issuance of any additional shares would be anti-dilutive. (2)

Fair Value Measurements, Cash24

Fair Value Measurements, Cash Equivalents and Variable Interest Entities (Tables)	9 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Company's Financial Instruments	The Company’s financial instruments as of March 31, 2017 and June 30, 2016 were categorized as follows in the fair value hierarchy (in thousands): Fair Quoted Prices in Significant Other Active Markets Observable for Inputs (Level 1) (Level 2) Total Assets: Money market funds $ 10,425 $ — $ 10,425 Fair Value Measurements as of June 30, 2016 Using Quoted Prices in Significant Other Active Markets Observable for Identical Assets Inputs (Level 1) (Level 2) Total Assets: Money market funds $ 20,203 $ — $ 20,203 Liabilities: Revolving loan facility (1) $ — $ 15,000 $ 15,000 (1) Carried at historical cost on the Company's condensed consolidated balance sheet.

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets, net, consisted of the following (in thousands): March 31, 2017 June 30, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer/publisher/advertiser relationships $ 36,909 $ (36,577 ) $ 332 $ 36,669 $ (35,648 ) $ 1,021 Content 61,521 (59,908 ) 1,613 61,717 (57,778 ) 3,939 Website/trade/domain names 31,287 (28,479 ) 2,808 31,470 (27,288 ) 4,182 Acquired technology and others 36,733 (36,186 ) 547 36,733 (35,794 ) 939 Total $ 166,450 $ (161,150 ) $ 5,300 $ 166,589 $ (156,508 ) $ 10,081
Amortization Expense	Future amortization expense for the Company’s intangible assets as of March 31, 2017 was as follows (in thousands): Fiscal Year Ending June 30, Amortization 2017 (remaining three months) $ 1,174 2018 2,332 2019 863 2020 761 2021 170 Thereafter — Total $ 5,300

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Mar. 31, 2017
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 March 31, 2017 were as follows (in thousands): Operating Fiscal Year Ending June 30, Leases 2017 (remaining three months) $ 926 2018 3,641 2019 1,668 2020 379 2021 46 Thereafter — Total $ 6,660

Stock Benefit Plans (Tables)

Stock Benefit Plans (Tables)	9 Months Ended
	Mar. 31, 2017
Stock options [Member]
Schedule of Weighted Average Assumptions	The weighted-average Black-Scholes model assumptions for the three and nine months ended March 31, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Expected term (in years) 4.5 3.5 4.6 3.9 Expected volatility 46 % 43 % 45 % 43 % Expected dividend yield — — — — Risk-free interest rate 1.9 % 1.1 % 1.3 % 1.0 % Grant date fair value $ 1.44 $ 0.98 $ 1.40 $ 1.89
Market-based restricted stock units [Member]
Schedule of Weighted Average Assumptions	The weighted-average Monte Carlo simulation model assumptions for the three and nine months ended March 31, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Expected term (in years) 4.0 4.0 4.0 4.0 Expected volatility 46 % 45 % 45 % 47 % Expected dividend yield — — — — Risk-free interest rate 2.0 % 1.5 % 1.1 % 1.3 % Grant date fair value $ 3.02 $ 3.22 $ 2.99 $ 5.08

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
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 Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Net revenue: United States $ 76,863 $ 79,351 $ 213,220 $ 214,017 International 2,342 1,892 5,033 4,576 Total net revenue $ 79,205 $ 81,243 $ 218,253 $ 218,593 March 31, June 30, 2017 2016 Property and equipment, net: United States $ 5,730 $ 6,973 International 547 705 Total property and equipment, net $ 6,277 $ 7,678

Restructuring Costs (Tables)

Restructuring Costs (Tables)	9 Months Ended
	Mar. 31, 2017
Restructuring And Related Activities [Abstract]
Summary of Restructuring Charges	The following table summarizes the restructuring charges for the periods (in thousands): Three Months Ended Nine Months Ended March 31, 2017 March 31, 2017 Employee severance and benefits $ 38 $ 2,399 Non-cash employee severance and benefits - stock-based compensation — 42 Total $ 38 $ 2,441

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended				9 Months Ended		12 Months Ended
	Mar. 31, 2017Client	Mar. 31, 2016USD ($)Client	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2017Client	Mar. 31, 2016USD ($)Client	Jun. 30, 2016Client
Summary Of Significant Accounting Policies [Line Items]
Number of clients accounted for more than 10% of net revenue	1	1			1	1
Number of clients accounted for more than 10% of net accounts receivable					1		0
Customer Concentration Risk [Member] | Net revenue [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage accounted by major clients	20.00%	16.00%			14.00%	11.00%
Customer Concentration Risk [Member] | Net accounts receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage accounted by major clients					13.00%
Market-based Restricted Stock Units [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based compensation understated | $		$ 0.4	$ 0.4	$ 0.3		$ 1.1

Net Income (Loss) per Share - C

Net Income (Loss) per Share - Calculation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Basic and Diluted:
Net income (loss)		$ 579	$ (3,265)	$ (10,840)	$ (16,087)
Basic:
Weighted-average shares of common stock used in computing basic net income (loss) per share		45,507	45,333	45,636	45,098
Diluted:
Weighted-average shares of common stock used in computing basic net income (loss) per share		45,507	45,333	45,636	45,098
Weighted-average effect of dilutive securities:
Weighted-average shares of common stock used in computing diluted net income (loss) per share		45,722	45,333	45,636	45,098
Net income (loss) per share:
Basic		$ 0.01	$ (0.07)	$ (0.24)	$ (0.36)
Diluted	[1]	$ 0.01	$ (0.07)	$ (0.24)	$ (0.36)
Securities excluded from weighted-average shares used in computing diluted net income (loss) per share because the effect would have been anti-dilutive:	[2]	5,237	6,929	6,472	5,287
Stock options [Member]
Weighted-average effect of dilutive securities:
Weighted-average effect of dilutive securities		11
Restricted stock units [Member]
Weighted-average effect of dilutive securities:
Weighted-average effect of dilutive securities		204
[1]	Diluted net loss per share does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred for the nine months ended March 31, 2017 and three and nine months ended March 31, 2016. 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, Cash32

Fair Value Measurements, Cash Equivalents and Variable Interest Entities - Schedule of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Revolving loan facility [Member]
Liabilities:
Liabilities, Fair Value Measurements		$ 15,000
Significant Other Observable Inputs (Level 2) [Member] | Revolving loan facility [Member]
Liabilities:
Liabilities, Fair Value Measurements		15,000
Money market funds [Member]
Assets:
Assets, Fair Value Measurements	$ 10,425	20,203
Money market funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, Fair Value Measurements	$ 10,425	$ 20,203

Fair Value Measurements, Cash33

Fair Value Measurements, Cash Equivalents and Variable Interest Entities - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
VIE not primary beneficiary [Member]
Schedule of Money Market Funds and Variable Interest Entities [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 and Variable Interest Entities [Line Items]
Interest recognized at cost	2,500,000	$ 2,500,000
Money market funds [Member]
Schedule of Money Market Funds and Variable Interest Entities [Line Items]
Cash and cash equivalents	$ 10,425,000	$ 20,203,000

Prepaid Expenses and Other As34

Prepaid Expenses and Other Assets - Additional Information (Detail) - Partnership Agreement [Member] - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Prepaid expenses and other assets [Line Items]
Partnership agreement			10 years
Upfront cash payment			$ 10
Prepaid expenses and other assets	$ 1			$ 1		$ 1
Other assets, noncurrent	7.5			7.5		$ 8.3
Amortization expense	$ 0.2	$ 0.3		$ 0.8	$ 0.5

Intangible Assets - Intangible

Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 166,450	$ 166,589
Accumulated Amortization	(161,150)	(156,508)
Net Carrying Amount	5,300	10,081
Customer/publisher/advertiser relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,909	36,669
Accumulated Amortization	(36,577)	(35,648)
Net Carrying Amount	332	1,021
Content [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	61,521	61,717
Accumulated Amortization	(59,908)	(57,778)
Net Carrying Amount	1,613	3,939
Website/trade/domain names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,287	31,470
Accumulated Amortization	(28,479)	(27,288)
Net Carrying Amount	2,808	4,182
Acquired technology and others [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,733	36,733
Accumulated Amortization	(36,186)	(35,794)
Net Carrying Amount	$ 547	$ 939

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1.4	$ 2.1	$ 5	$ 6.8

Intangible Assets - Amortizatio

Intangible Assets - Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
2017 (remaining three months)	$ 1,174
2,018	2,332
2,019	863
2,020	761
2,021	170
Net Carrying Amount	$ 5,300	$ 10,081

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Benefit from (provision for) taxes	$ 10	$ (72)	$ 1,386	$ (477)

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Nov. 04, 2011	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015
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
Revolving loan facility [Member]
Debt Instrument [Line Items]
Loan facility, total	$ 25,000,000
Credit Agreement expiration date		Jun. 11, 2017
Annual facility fee	$ 62,500
Annual unused fee, percentage	0.25%
Minimum EBITDA			$ 5,000,000	$ 4,000,000	$ 3,000,000	$ 2,000,000	$ 1
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 ended December 31, 2015; (d) $4,000,000 for the quarter ended March 31, 2016; and (e) $5,000,000 for the quarter ended 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		125.00%
Outstanding amount		$ 0	$ 15,000,000
Revolving loan facility [Member] | Eurodollar rate plus [Member]
Debt Instrument [Line Items]
Applicable margin on borrowings rate	3.00%
Revolving loan facility [Member] | First Amendment [Member]
Debt Instrument [Line Items]
Loan Amendment date		Feb. 15, 2013
Revolving loan facility [Member] | Second Amendment [Member]
Debt Instrument [Line Items]
Loan Amendment date		Jul. 17, 2014
Revolving loan facility [Member] | Third Amendment [Member]
Debt Instrument [Line Items]
Loan Amendment date		Jun. 11, 2015

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Rent expense for office space	$ 800,000	$ 800,000	$ 2,500,000	$ 2,500,000
Leases expiration year			2,021
Estimated fair value of indemnification agreements	0		$ 0		$ 0
Fair value of indemnity provisions	$ 0		$ 0		$ 0

Commitments and Contingencies41

Commitments and Contingencies - Future Annual Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
2017 (remaining three months)	$ 926
2,018	3,641
2,019	1,668
2,020	379
2,021	46
Total	$ 6,660

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - Treasury Stock, Common [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Nov. 30, 2016
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program, expiration date		2017-11
Stock repurchase program, number of shares repurchased and retired	187,500	531,523
Stock repurchase program, value of shares repurchased	$ 0.7	$ 1.8
Stock repurchase program, weighted average price	$ 3.82	$ 3.29
Broker commission, per share	$ 0.03	$ 0.03
Maximum [Member]
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program, number of outstanding shares authorized to repurchase			750,000

Stock Benefit Plans - Additiona

Stock Benefit Plans - Additional Information (Detail)	Mar. 31, 2017shares
2010 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance	15,920,578
Shares available for issuance	13,610,855
Directors' Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance	3,359,964
Shares available for issuance	1,575,411

Stock Benefit Plans - Schedule

Stock Benefit Plans - Schedule of Weighted Average Assumptions (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 6 months	3 years 6 months	4 years 7 months 6 days	3 years 10 months 24 days
Expected volatility	46.00%	43.00%	45.00%	43.00%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.90%	1.10%	1.30%	1.00%
Grant date fair value	$ 1.44	$ 0.98	$ 1.40	$ 1.89
Market-based restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years	4 years	4 years	4 years
Expected volatility	46.00%	45.00%	45.00%	47.00%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	2.00%	1.50%	1.10%	1.30%
Grant date fair value	$ 3.02	$ 3.22	$ 2.99	$ 5.08

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Mar. 31, 2017Segment
Segment Reporting [Abstract]
Number of reportable segments	1

Segment Information - Net Reven

Segment Information - Net Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Net revenue:
Total net revenue	$ 79,205	$ 81,243	$ 218,253	$ 218,593
Property and equipment, net:
Total property and equipment, net	6,277		6,277		$ 7,678
United States [Member]
Net revenue:
Total net revenue	76,863	79,351	213,220	214,017
Property and equipment, net:
Total property and equipment, net	5,730		5,730		6,973
International [Member]
Net revenue:
Total net revenue	2,342	$ 1,892	5,033	$ 4,576
Property and equipment, net:
Total property and equipment, net	$ 547		$ 547		$ 705

Restructuring Costs - Additiona

Restructuring Costs - Additional Information (Detail)	9 Months Ended
	Mar. 31, 2017
Restructuring And Related Activities [Abstract]
Restructuring inception year and month	2016-11
Restructuring reserve balance paid date	Mar. 31, 2017

Restructuring Costs - Summary o

Restructuring Costs - Summary of Restructuring Charges (Detail) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Mar. 31, 2017	Mar. 31, 2017
Restructuring And Related Activities [Abstract]
Employee severance and benefits		$ 38	$ 2,399
Non-cash employee severance and benefits - stock-based compensation			42
Total	[1]	$ 38	$ 2,441
[1]	Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $691 $969 $2,390 $2,826 Product development 424 576 1,431 1,761 Sales and marketing 291 501 868 1,482 General and administrative 671 770 2,095 2,270 Restructuring charges — — 42 —

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Treasury Stock, Common [Member] - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 30, 2017	Mar. 31, 2017	Mar. 31, 2017
Subsequent Event [Line Items]
Stock repurchase program, weighted average price		$ 3.82	$ 3.29
Broker commission, per share		$ 0.03	$ 0.03
Stock repurchase program, value of shares repurchased		$ 0.7	$ 1.8
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock repurchase program, number of shares repurchased	64,077
Stock repurchase program, weighted average price	$ 3.86
Broker commission, per share	$ 0.03
Stock repurchase program, value of shares repurchased	$ 0.2