Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Aug. 31, 2017 | Dec. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | QNST | ||
Entity Registrant Name | QUINSTREET, INC | ||
Entity Central Index Key | 1,117,297 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 45,712,559 | ||
Entity Public Float | $ 136,296,954 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 49,571 | $ 53,710 |
Accounts receivable, net | 44,059 | 47,218 |
Prepaid expenses and other assets | 6,225 | 7,055 |
Total current assets | 99,855 | 107,983 |
Property and equipment, net | 5,613 | 7,678 |
Goodwill | 56,118 | 56,118 |
Other intangible assets, net | 4,105 | 10,081 |
Other assets, noncurrent | 8,617 | 11,242 |
Total assets | 174,308 | 193,102 |
Current liabilities: | ||
Accounts payable | 25,205 | 19,814 |
Accrued liabilities | 26,223 | 27,705 |
Deferred revenue | 1,126 | 1,200 |
Debt | 15,000 | |
Total current liabilities | 52,554 | 63,719 |
Other liabilities, noncurrent | 3,672 | 4,631 |
Total liabilities | 56,226 | 68,350 |
Commitments and contingencies (See Note 9) | ||
Stockholders' equity: | ||
Common stock: $0.001 par value; 100,000,000 shares authorized; 45,435,836 and 45,557,295 shares issued and outstanding at June 30, 2017 and June 30, 2016 | 45 | 45 |
Additional paid-in capital | 263,533 | 257,950 |
Accumulated other comprehensive loss | (463) | (418) |
Accumulated deficit | (145,033) | (132,825) |
Total stockholders' equity | 118,082 | 124,752 |
Total liabilities and stockholders' equity | $ 174,308 | $ 193,102 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 | 45,435,836 | 45,557,295 |
Common stock, shares outstanding | 45,435,836 | 45,557,295 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Income Statement [Abstract] | ||||
Net revenue | $ 299,785 | $ 297,706 | $ 282,140 | |
Cost of revenue | [1] | 269,409 | 270,963 | 252,002 |
Gross profit | 30,376 | 26,743 | 30,138 | |
Operating expenses: | ||||
Product development | [1] | 13,476 | 16,431 | 17,948 |
Sales and marketing | [1] | 9,189 | 12,020 | 14,544 |
General and administrative | [1] | 15,934 | 17,166 | 16,823 |
Restructuring charges | [1] | 2,441 | ||
Operating loss | (10,664) | (18,874) | (19,177) | |
Interest income | 138 | 61 | 72 | |
Interest expense | (346) | (585) | (3,818) | |
Other (expense) income, net | (2,416) | 112 | 2,671 | |
Loss before taxes | (13,288) | (19,286) | (20,252) | |
Benefit from (provision for) taxes | 1,080 | (134) | 244 | |
Net loss | $ (12,208) | $ (19,420) | $ (20,008) | |
Net loss per share: | ||||
Basic | $ (0.27) | $ (0.43) | $ (0.45) | |
Diluted | $ (0.27) | $ (0.43) | $ (0.45) | |
Weighted-average shares used in computing net loss per share: | ||||
Basic | 45,594 | 45,197 | 44,454 | |
Diluted | 45,594 | 45,197 | 44,454 | |
[1] | (1)Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $3,109 $3,780 $3,120 Product development 1,834 2,340 2,395 Sales and marketing 1,154 1,825 2,144 General and administrative 2,759 3,023 2,196 Restructuring charges 42 — — |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cost of revenue [Member] | |||
Stock-based compensation | $ 3,109 | $ 3,780 | $ 3,120 |
Product development [Member] | |||
Stock-based compensation | 1,834 | 2,340 | 2,395 |
Sales and marketing [Member] | |||
Stock-based compensation | 1,154 | 1,825 | 2,144 |
General and administrative [Member] | |||
Stock-based compensation | 2,759 | $ 3,023 | $ 2,196 |
Restructuring charges [Member] | |||
Stock-based compensation | $ 42 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (12,208) | $ (19,420) | $ (20,008) |
Unrealized gain on investments: | |||
Change in unrealized gain | 13 | ||
Less: reclassification adjustment related to realized loss, net of tax of $0 | 16 | ||
Net change | 29 | ||
Foreign currency translation adjustment | (45) | (5) | (18) |
Unrealized gain on interest rate swap: | |||
Change in unrealized gain | 225 | ||
Less: reclassification adjustment related to realized loss, net of tax of $0 | 405 | ||
Net change | 630 | ||
Other comprehensive (loss) income | (45) | (5) | 641 |
Comprehensive loss | $ (12,253) | $ (19,425) | $ (19,367) |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Loss (Parenthetical) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Statement Of Income And Comprehensive Income [Abstract] | |
Reclassification adjustment related to realized loss on investments, tax | $ 0 |
Reclassification adjustment related to realized gain (loss) on interest rate swap, tax | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning Balance at Jun. 30, 2014 | $ 145,151 | $ 44 | $ 239,558 | $ (1,054) | $ (93,397) | |
Beginning Balance, Shares at Jun. 30, 2014 | 44,025,908 | |||||
Issuance of common stock upon exercise of stock options | 975 | $ 1 | 974 | |||
Issuance of common stock upon exercise of stock options, Shares | 211,878 | |||||
Release of restricted stock, net of share settlement | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Release of restricted stock, net of share settlement, Shares | 380,064 | 0 | ||||
Stock-based compensation expense | 9,989 | 9,989 | ||||
Withholding taxes related to release of restricted stock, net of share settlement | (1,163) | (1,163) | ||||
Net loss | (20,008) | (20,008) | ||||
Other comprehensive income (loss) | 641 | 641 | ||||
Ending Balance at Jun. 30, 2015 | 135,585 | $ 45 | 249,358 | (413) | (113,405) | |
Ending Balance, Shares at Jun. 30, 2015 | 44,617,850 | |||||
Issuance of common stock upon exercise of stock options | $ 26 | 26 | ||||
Issuance of common stock upon exercise of stock options, Shares | 4,531 | 4,531 | ||||
Release of restricted stock, net of share settlement | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Release of restricted stock, net of share settlement, Shares | 934,914 | 0 | ||||
Stock-based compensation expense | 11,048 | 11,048 | ||||
Withholding taxes related to release of restricted stock, net of share settlement | (2,482) | (2,482) | ||||
Net loss | (19,420) | (19,420) | ||||
Other comprehensive income (loss) | (5) | (5) | ||||
Ending Balance at Jun. 30, 2016 | $ 124,752 | $ 45 | 257,950 | (418) | (132,825) | |
Ending Balance, Shares at Jun. 30, 2016 | 45,557,295 | 45,557,295 | ||||
Release of restricted stock, net of share settlement | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Release of restricted stock, net of share settlement, Shares | 597,564 | 0 | ||||
Stock-based compensation expense | 9,088 | 9,088 | ||||
Withholding taxes related to release of restricted stock, net of share settlement | (1,018) | (1,018) | ||||
Repurchase of common stock | (2,487) | $ (2,487) | ||||
Repurchase of common stock, Shares | (719,023) | |||||
Retirement of treasury stock | $ (2,487) | $ 2,487 | (2,487) | |||
Retirement of treasury stock, Shares | 719,023 | (719,023) | 719,023 | |||
Net loss | $ (12,208) | (12,208) | ||||
Other comprehensive income (loss) | (45) | (45) | ||||
Ending Balance at Jun. 30, 2017 | $ 118,082 | $ 45 | $ 263,533 | $ (463) | $ (145,033) | |
Ending Balance, Shares at Jun. 30, 2017 | 45,435,836 | 45,435,836 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | |||
Net loss | $ (12,208) | $ (19,420) | $ (20,008) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 11,377 | 15,087 | 18,867 |
Impairment of investment | 2,500 | ||
Write-off of bank loan upfront fees | 809 | ||
Provision for sales returns and doubtful accounts receivable | 291 | 789 | 142 |
Stock-based compensation | 8,898 | 10,968 | 9,855 |
Gains on sale of domain names | (169) | (181) | (3,331) |
Other adjustments, net | 53 | 116 | 247 |
Changes in assets and liabilities: | |||
Accounts receivable | 2,868 | (1,767) | (4,403) |
Prepaid expenses and other assets | 830 | 4,448 | (181) |
Deferred taxes | (430) | (496) | 1,786 |
Other assets, noncurrent | 891 | (8,179) | (5) |
Accounts payable | 5,394 | (505) | 2,030 |
Accrued liabilities | (1,155) | 608 | 494 |
Deferred revenue | (74) | (8) | 33 |
Other liabilities, noncurrent | (530) | (445) | (202) |
Net cash provided by operating activities | 18,536 | 1,015 | 6,133 |
Cash Flows from Investing Activities | |||
Capital expenditures | (1,160) | (1,859) | (3,346) |
Business acquisitions | (500) | ||
Internal software development costs | (2,185) | (3,482) | (2,342) |
Purchases of marketable securities | (16,600) | ||
Proceeds from maturities of marketable securities | 26,849 | ||
Proceeds from sales of marketable securities | 28,427 | ||
Purchase of investment | (2,500) | ||
Proceeds from sale of domain names | 169 | 156 | 3,371 |
Restricted cash | (766) | (99) | |
Other investing activities | (195) | (17) | 10 |
Net cash (used in) provided by investing activities | (4,137) | (5,202) | 33,270 |
Cash Flows from Financing Activities | |||
Proceeds from exercise of common stock options | 26 | 1,300 | |
Proceeds from revolving loan facility | 15,000 | ||
Principal payments on term loan facility | (77,500) | ||
Repayment of revolving loan facility | (15,000) | ||
Payment of bank loan upfront fees | (272) | ||
Principal payments on acquisition-related notes payable | (41) | (484) | |
Withholding taxes related to release of restricted stock, net of share settlement | (1,018) | (2,482) | (1,163) |
Repurchases of common stock | (2,487) | ||
Net cash used in financing activities | (18,505) | (2,497) | (63,119) |
Effect of exchange rate changes on cash and cash equivalents | (33) | (74) | 7 |
Net decrease in cash and cash equivalents | (4,139) | (6,758) | (23,709) |
Cash and cash equivalents at beginning of period | 53,710 | 60,468 | 84,177 |
Cash and cash equivalents at end of period | 49,571 | 53,710 | 60,468 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest | 295 | 643 | 3,052 |
Cash paid for income taxes | 390 | $ 863 | 237 |
Supplemental Disclosure of Noncash Investing Activities | |||
Purchases of property and equipment included in accrued liabilities | 134 | $ 1,832 | |
Retirement of treasury stock | $ (2,487) |
The Company
The Company | 12 Months Ended |
Jun. 30, 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 also has emerging businesses in Brazil and India. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The 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 impairment. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. Revenue Recognition Revenue earned through the delivery of qualified leads, clicks, calls, customers and, to a lesser extent, display advertisements, or impressions constituted all revenue in fiscal years 2017 and 2016, and more than 99% of revenue in fiscal year 2015. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured. Delivery is deemed to have occurred at the time a qualified lead, inquiry, click, call, application, or customer is delivered to the client provided that no significant obligations remain. The Company allocates revenue in an arrangement using the estimated selling price (“ESP”) of deliverables if it does not have vendor-specific objective evidence (“VSOE”) of selling price based on historical stand-alone sales or third-party evidence (“TPE”) of selling price. Due to the unique nature of some of its multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales or third-party evidence, therefore the Company may use its best estimate to establish selling prices for these arrangements under the standard. The Company establishes best estimates within a range of selling prices considering multiple factors including, but not limited to, class of client, size of transaction, available media inventory, pricing strategies and market conditions. The Company believes the use of the best estimate of selling price allows revenue recognition in a manner consistent with the underlying economics of the transaction. From time to time, the Company may agree to credit a client for certain leads, inquiries, clicks, calls, applications, customers or impressions if they fail to meet the contractual or other guidelines of a particular client. The Company has established a sales reserve based on historical experience. To date, such credits have been within the Company’s estimates. Separately from the agreements the Company has with clients, the Company also has agreements with Internet search companies, third-party publishers and strategic partners to generate potential qualified leads, inquiries, clicks, calls, applications, or customers for our clients. The Company receives a fee from our clients and separately pays a fee to the Internet search companies, third-party publishers and strategic partners. The Company is the primary obligor in the transaction. As a result, the fees paid by its clients are recognized as revenue and the fees paid to its Internet search companies, third-party publishers and strategic partners are included in cost of revenue. Deferred revenue is comprised of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company’s investment portfolio consists of money market funds. Cash is deposited with financial institutions that management believes are creditworthy. To date, the Company has not experienced any material losses on its investment portfolio. The Company maintains contracts with its clients, most of which are cancelable with little or no prior notice. In addition, these contracts do not contain penalty provisions for cancellation before the end of the contract term. In fiscal years 2017 and 2016, the Company had one client, The Progressive Corporation, that accounted for 17% and 12% of net revenue. No other client accounted for 10% or more of net revenue in fiscal years 2017 and 2016 and no client accounted for 10% or more of net revenue in fiscal year 2015. The Company’s accounts receivable are derived from clients located principally in the United States. The Company performs ongoing credit evaluation of its clients, does not require collateral, and maintains allowances for potential credit losses on client accounts when deemed necessary. The Company had one client, The Progressive Corporation, that accounted for 14% of net accounts receivable as of June 30, 2017. No other client accounted for 10% or more of net accounts receivable as of June 30, 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. Cash, Cash Equivalents and Restricted Cash All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. As of June 30, 2017 and 2016, cash equivalents consist of money market funds. As of June 30, 2017, the Company maintains $0.9 million cash restricted as collateral for letters of credit that is reflected within other assets, noncurrent, in the Company’s consolidated balance sheet. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: Computer equipment 3 years Software 3 years Furniture and fixtures 3 to 5 years Leasehold improvements the shorter of the lease term or the estimated useful lives of the improvements Internal Software Development Costs The Company incurs costs to develop software for internal use. The Company expenses all costs that relate to the planning and post-implementation phases of development as product development expense. Costs incurred in the development phase are capitalized and amortized over the product’s estimated useful life if the product is expected to have a useful life beyond six months. Costs associated with repair or maintenance of existing sites or the developments of website content are included within cost of revenue in the Company’s consolidated statements of operations. The Company’s policy is to amortize capitalized internal software development costs on a product-by-product basis using the straight-line method over the estimated economic life of the application, which is generally two years. The Company capitalized $2.1 million, $3.5 million and $2.5 million in fiscal years 2017, 2016 and 2015. Amortization of internal software development costs is reflected within cost of revenue in the Company’s consolidated statements of operations. Goodwill The Company conducts a test for the impairment of goodwill at the reporting unit level on at least an annual basis and whenever there are events or changes in circumstances that would more likely than not reduce the estimated fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows and determining appropriate discount rates, growth rates, an appropriate control premium and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could trigger impairment. The Company performed its annual goodwill impairment test on April 30, 2017 for fiscal year 2017. The Company had one reporting unit for purposes of allocating and testing goodwill. The Company conducted a qualitative assessment to determine whether it was necessary to perform a two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considered the impact of key factors such as changes in industry and competitive environment, stock price, actual revenue performance compared to previous years, forecasts and cash flow generation. Based on the results of the qualitative assessment, there were no indicators of impairment. In the third quarter of fiscal year 2016, the Company’s public market capitalization experienced a decline to a value below the net book carrying value of the Company’s equity which triggered the necessity to conduct an interim goodwill impairment test as of March 31, 2016. As all revenue in fiscal year 2016 had been earned through the delivery of qualified leads, inquiries, clicks, calls, applications, customers, and to a lesser extent, display advertisements, or impressions, the Company had one reporting unit as of March 31, 2016. Given that the Company’s shares are publicly traded in an active market, the Company believes that the quoted market price provides evidence of fair value. As of March 31, 2016, the Company’s market capitalization exceeded the Company’s net book carrying value. Additionally, the Company estimated fair value utilizing a weighting of the fair values derived from the market and income approach which exceeded the Company’s net book carrying value. Based on the results of the step one interim impairment test, the Company determined there were no indicators of impairment as of March 31, 2016. The Company performed its annual goodwill impairment test on April 30, 2016 for fiscal year 2016. The Company conducted a qualitative assessment to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considered any significant change in key factors such as industry and competitive environment, stock price, actual revenue performance compared to previous years and budget, EBITDA and cash flow generation, since the most recent valuation date, March 31, 2016. Based on the results of the qualitative assessment, there were no indicators of impairment. As of June 30, 2016, the Company did not identify any indicators of impairment. The Company performed its annual goodwill impairment test on April 30, 2015 for fiscal year 2015. The Company had two reporting units for purposes of allocating and testing goodwill, DMS and DSS. The Company conducted a qualitative assessment to determine whether it was necessary to perform a two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considered the impact of key factors such as changes in industry and competitive environment, stock price, actual revenue performance compared to previous years, forecasts and cash flow generation. Based on the results of the qualitative assessment, there were no indicators of impairment. Long-Lived Assets The Company evaluates long-lived assets, such as property and equipment and purchased intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If necessary, a quantitative test is performed that requires the application of judgment when assessing the fair value of an asset. When the Company identifies an impairment, it reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. As of April 30, 2017, 2016 and 2015, the Company evaluated its long-lived assets and concluded there were no indicators of impairment. Income Taxes The Company accounts for income taxes using an asset and liability approach to record deferred taxes. The Company’s deferred income tax assets represent temporary differences between the financial statement carrying amount and the tax basis of existing assets and liabilities that will result in deductible amounts in future years. Based on estimates, the carrying value of the Company’s net deferred tax assets assumes that it is not more likely than not that the Company will be able to generate sufficient future taxable income in the respective tax jurisdictions. The Company’s judgments regarding future profitability may change due to future market conditions, changes in U.S. or international tax laws and other factors. Foreign Currency Translation The Company’s foreign operations are subject to exchange rate fluctuations. The majority of the Company’s sales and expenses are denominated in U.S. dollars. The functional currency for the majority of the Company’s foreign subsidiaries is the U.S. dollar. For these subsidiaries, assets and liabilities denominated in foreign currency are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for nonmonetary assets and liabilities. Net revenue, cost of revenue and expenses are generally remeasured at average exchange rates in effect during each period. Gains and losses from foreign currency remeasurement are included in other (expense) income, net in the Company’s consolidated statements of operations. Certain foreign subsidiaries designate the local currency as their functional currency. For those subsidiaries, the assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at average exchange rates for the period. The foreign currency translation adjustments are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are recorded within other (expense) income, net in the Company’s consolidated statements of operations and were not material for any period presented. Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive (loss) income. Other comprehensive (loss) income refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net loss. The Company’s comprehensive (loss) income and accumulated other comprehensive loss consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, unrealized gains and losses on marketable securities categorized as available-for-sale and unrealized gains and losses on the interest rate swap. Total accumulated other comprehensive loss is displayed as a separate component of stockholders’ equity. Loss Contingencies The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. Management considers the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as its ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to its management to determine whether such accruals should be adjusted and whether new accruals are required. From time to time, the Company is involved in disputes, litigation and other legal actions. The Company records a charge equal to at least the minimum estimated liability for a loss contingency only when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. The actual liability in any such matters may be materially different from the Company’s estimates, which could result in the need to adjust the liability and record additional expenses. Stock-Based Compensation The Company measures and records the expense related to stock-based transactions based on the fair values of stock-based payment awards, as determined on the date of grant. The fair value of restricted stock units with a service condition is determined based on the closing price of the Company’s common stock on the date of grant. To estimate the fair value of stock options, the Company selected the Black-Scholes option pricing model. To estimate the fair value of restricted stock units with a service and market condition, the Company selected the Monte Carlo simulation model. In applying these models, the Company’s determination of the fair value of the award is affected by assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the award and the employees’ actual and projected stock option exercise and pre-vesting employment termination behaviors. The Company recognizes stock-based compensation expense over the requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant. On an annual basis, the Company assesses changes to its estimate of expected forfeitures based on recent forfeiture activity. The effect of adjustments made to the forfeiture rates, if any, is recognized in the period that change is made. Refer to Note 11, Stock Benefit Plans, for additional information regarding stock-based compensation. 401(k) Savings Plan The Company sponsors a 401(k) defined contribution plan covering all U.S. employees. There were no employer contributions under this plan in fiscal years 2017, 2016 or 2015. 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. The Company does not plan to early adopt, and accordingly, will adopt the new standards effective July 1, 2018. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the new standards. The Company is continuing to evaluate the overall impact of the new standard on its financial statements, related disclosures and internal controls over financial reporting and has not selected the method of transition. At this time, the Company has not identified any provisions that are expected to have a significant impact on how the Company recognizes revenue and related expenses. 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. The new guidance became effective in the current fiscal year and did not have an impact on the Company’s consolidated financial statements. 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. The Company is currently assessing the impact of this new guidance. 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. The adoption of this standard is not expected to have an impact on the Company’s consolidated financial statements. In November 2016, the FASB issued a new accounting standard update on the disclosure of restricted cash on the statement of cash flows. The new guidance requires the statement of cash flows explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash, and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. The guidance becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early application permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. 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 consolidated financial statements. In May 2017, the FASB issued a new accounting standard update to amend the scope of modification accounting for share-based payment arrangements. The amendments in the update provide guidance on types of changes to the terms or conditions of share-based payment awards would be required to apply modification accounting under ASC 718, Compensation-Stock Compensation. The new guidance becomes effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this new guidance. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 3. 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: Fiscal Year Ended June 30, 2017 2016 2015 (In thousands, except per share data) Numerator: Basic and Diluted: Net loss $ (12,208 ) $ (19,420 ) $ (20,008 ) Denominator: Basic and Diluted: Weighted-average shares of common stock used in computing basic and diluted net loss per share 45,594 45,197 44,454 Net loss per share: Basic and Diluted (1) $ (0.27 ) $ (0.43 ) $ (0.45 ) Securities excluded from weighted-average shares used in computing diluted net loss per share because the effect would have been anti-dilutive: (2) 7,060 5,331 8,198 (1) Diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred in fiscal years 2017, 2016 and 2015. 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 | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Marketable Securities and Variable Interest Entities | 4. Fair Value Measurements, Marketable Securities and Variable Interest Entities 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 June 30, 2017 and 2016, 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 June 30, 2016, the Company used Level 2 assumptions for its 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 June 30, 2017 and 2016, the Company did not have any Level 3 financial assets or liabilities. The Company’s recurring financial assets and liabilities as of June 30, 2017 and 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 $ 10,330 $ — $ 10,330 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) This liability was carried at historical cost on the Company’s consolidated balance sheet. The Company measures certain assets, including its cost method investment, at fair value on a nonrecurring basis only if an impairment is recognized. The resulting fair value is considered to be a Level 3 measurement. 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 held money market funds classified as cash equivalents of $10.3 million as of June 30, 2017 and $20.2 million as of June 30, 2016. Gross unrealized gains and losses were not material as the carrying value approximated estimated fair value due to their short maturities. The Company did not hold any marketable securities as of June 30, 2017 and 2016. The Company did not realize any material gains or losses from sales of its securities in fiscal years 2017, 2016 and 2015. As of June 30, 2017 and 2016, 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 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 equity interest is recognized at cost within other assets, noncurrent in the Company’s consolidated balance sheets. The Company’s policy is to recognize an impairment in the carrying value of its equity interest in the privately held entity when clear identified events or changes in conditions have a material adverse effect on the fair value of the equity interest. Determining the fair value requires management’s judgement based on the specific facts and circumstances. Events and conditions that could lead to an impairment include a prolonged period of decline in the operating performance and financial condition of the privately held entity or adverse changes in the regulatory environment or market conditions in which the privately held entity operates in the privately held entity’s expected future operating performance which indicated that its equity interest in the privately held entity of $2.5 million would not be recoverable. Accordingly, the Company recorded an impairment of $2.5 million in other (expense) income, net in the Company’s consolidated statements of operations. As of June 30, 2017, the Company has no remaining exposure to loss related to the Company’s investment in the privately held entity. As of June 30, 2016, the Company had $2.5 million recognized related to its investment in the privately held entity. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
Balance Sheet Components | 5. Balance Sheet Components Accounts Receivable, Net Accounts receivable, net was comprised of the following (in thousands): June 30, 2017 2016 Accounts receivable $ 46,009 $ 49,503 Less: Allowance for doubtful accounts (547 ) (441 ) Less: Allowance for sales returns (1,403 ) (1,844 ) Total $ 44,059 $ 47,218 Property and Equipment, Net Property and equipment, net was comprised of the following (in thousands): June 30, 2017 2016 Computer equipment $ 12,581 $ 14,673 Software 11,386 11,191 Furniture and fixtures 3,020 3,240 Leasehold improvements 1,917 1,957 Internal software development costs 31,605 29,521 Total property plant and equipment, gross 60,509 60,582 Less: Accumulated depreciation and amortization (54,896 ) (52,904 ) Total property plant and equipment, net $ 5,613 $ 7,678 Depreciation expense was $2.3 million, $3.8 million and $4.0 million for fiscal years 2017, 2016 and 2015. Amortization expense related to internal software development costs was $2.9 million, $2.4 million and $2.4 million for fiscal years 2017, 2016 and 2015. Prepaid Expenses and Other Assets Prepaid expenses and other assets were comprised of the following (in thousands): June 30, 2017 2016 Income tax receivable $ 2,761 $ 3,332 Prepaid expenses 3,051 3,399 Other assets 413 324 Total $ 6,225 $ 7,055 In fiscal year 2016, 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 its exclusive click monetization partner for the majority of its 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 and is assessed for impairment annually. As of June 30, 2017, the Company had recorded $1.0 million within prepaid expenses and other assets and $7.3 million within other assets, noncurrent on the Company’s 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 in the Company’s consolidated balance sheet. Amortization expense was $1.0 million and $0.7 million for fiscal years 2017 and 2016. Accrued liabilities Accrued liabilities were comprised of the following (in thousands): June 30, 2017 2016 Accrued media costs $ 19,917 $ 17,858 Accrued compensation and related expenses 1,936 5,468 Accrued professional service and other business expenses 4,370 4,379 Total $ 26,223 $ 27,705 |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | 6. Intangible Assets, Net and Goodwill Intangible assets, net consisted of the following (in thousands): June 30, 2017 June 30, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer/publisher/advertiser relationships $ 36,908 $ (36,689 ) $ 219 $ 36,669 $ (35,648 ) $ 1,021 Content 61,521 (60,629 ) 892 61,717 (57,778 ) 3,939 Website/trade/domain names 31,287 (28,723 ) 2,564 31,470 (27,288 ) 4,182 Acquired technology and others 36,733 (36,303 ) 430 36,733 (35,794 ) 939 Total $ 166,449 $ (162,344 ) $ 4,105 $ 166,589 $ (156,508 ) $ 10,081 Amortization of intangible assets was $6.2 million, $8.9 million and $12.5 million for fiscal years 2017, 2016 and 2015. Future amortization expense for the Company’s intangible assets as of June 30, 2017 was as follows (in thousands): Fiscal Year Ending June 30, Amortization 2018 $ 2,310 2019 863 2020 762 2021 170 2022 — Thereafter — Total $ 4,105 As of June 30, 2017 and 2016, goodwill was $56.1 million. There were no additions to goodwill or impairment charges recorded in fiscal years 2017 and 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The components of loss before income taxes were as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 2015 US $ (12,286 ) $ (18,291 ) $ (18,917 ) Foreign (1,002 ) (995 ) (1,335 ) Total $ (13,288 ) $ (19,286 ) $ (20,252 ) The components of the (benefit from) provision for taxes were as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 2015 Current Federal $ (16 ) $ (131 ) $ (2,140 ) State (1,270 ) (23 ) (149 ) Foreign 191 271 129 Total current (benefit from) provision for income taxes $ (1,095 ) $ 117 $ (2,160 ) Deferred Federal $ 15 $ 15 $ 1,954 State — — — Foreign — 2 (38 ) Total deferred provision for income taxes 15 17 1,916 Total (benefit from) provision for income taxes $ (1,080 ) $ 134 $ (244 ) The reconciliation between the statutory federal income tax and the Company’s effective tax rates as a percentage of loss before income taxes was as follows: Fiscal Year Ended June 30, 2017 2016 2015 Federal tax rate 34.0 % 34.0 % 34.0 % States taxes, net of federal benefit 14.5 % 7.7 % 5.8 % Foreign rate differential (0.3 )% (1.1 )% (1.1 )% Stock-based compensation expense (23.9 )% (15.7 )% (13.3 )% Change in valuation allowance (18.7 )% (25.2 )% (25.0 )% Research and development credits 2.5 % 2.7 % 1.6 % Other — (3.1 )% (0.8 )% Effective income tax rate 8.1 % (0.7 )% 1.2 % The components of the long-term deferred tax liabilities, net were as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 Noncurrent: Reserves and accruals $ 2,198 $ 3,309 Stock options 4,805 5,885 Intangible assets 41,639 47,850 Net operating loss 27,719 18,812 Fixed assets 194 9 Tax credits 4,488 3,874 Other 868 91 Total noncurrent deferred tax assets 81,911 79,830 Valuation allowance - Long-term (81,964 ) (79,868 ) Noncurrent deferred tax liabilities, net $ (53 ) $ (38 ) The Company recorded a valuation allowance against the majority of the Company’s deferred tax assets at the end of fiscal year 2014 due to the significant negative evidence that the near term realization of certain assets were deemed unlikely. The Company regularly assesses the continuing need for a valuation allowance against its deferred tax assets. Significant judgment is required to determine whether a valuation allowance continues to be necessary and the amount of such valuation allowance, if appropriate. The Company considers all available evidence, both positive and negative to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the continued need for a valuation allowance the Company considers, among other things, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, and the duration of statutory carryforward periods. As of June 30, 2017, the Company believes it is not more likely than not that the net deferred tax assets will be fully realizable and continues to maintain a full valuation allowance against its deferred tax assets. As of June 30, 2017 and 2016, the Company had a federal operating loss carryforward of approximately $69.5 million and $45.3 million. As of June 30, 2017 and 2016, the Company’s state operating loss carryforward was approximately $37.1 million and $28.7 million. Included in the federal, California and other state net operating loss carryovers above were approximately $0.1 million, $0.3 million and $0.2 million related to stock option windfall deductions, which when realized will be credited to equity. The federal and state net operating losses, if not used, will begin to expire on June 30, 2035 and June 30, 2034. The operating loss carryforward in the Brazil jurisdiction was approximately $2.3 million and does not have an expiration date. The operating loss carryforward in the India jurisdiction was approximately $4.8 million which will begin to expire on June 30, 2021. The Company has federal and California research and development tax credit carry-forwards of approximately $2.1 million and $5.4 million to offset future taxable income. The federal research and development tax credits, if not used, will begin to expire on June 30, 2033, while the state tax credit carry-forwards do not have an expiration date and may be carried forward indefinitely. Utilization of the operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of operating loss carryforwards and credits before utilization. United States federal income taxes have not been provided for the $2.8 million of cumulative undistributed earnings of the Company’s foreign subsidiaries as of June 30, 2017. The Company’s present intention is that such undistributed earnings be permanently reinvested offshore, with the exception of the undistributed earnings of its Canadian subsidiary. The Company would be subject to additional United States taxes if these earnings were repatriated. The amount of the unrecognized deferred income tax liability related to these earnings is not material to the Company’s consolidated financial statements. A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 2015 Balance at the beginning of the year $ 3,175 $ 3,263 $ 3,077 Gross increases - current period tax positions 295 362 337 Gross increases - prior period tax positions 51 38 115 Gross decreases - prior period tax positions (429 ) — (44 ) Reductions as a result of lapsed statute of limitations (254 ) (488 ) (222 ) Balance at the end of the year $ 2,838 $ 3,175 $ 3,263 The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the Company’s benefit from (provision for) income taxes. As of June 30, 2017, the Company has accrued $1.0 million for interest and penalties related to the unrecognized tax benefits. The balance of interest and penalties is recorded as a noncurrent liability in the Company’s consolidated balance sheet. As of June 30, 2017, unrecognized tax benefits of $ The Company is no longer subject to U.S. federal, state and local, or non-U.S., income tax examinations by tax authorities for years before 2013. The Company files income tax returns in the United States, various U.S. states and certain foreign jurisdictions. As of June 30, 2017, the tax years 2013 through 2016 remain open in the U.S., the tax years 2012 through 2016 remain open in the various state jurisdictions, and the tax years 2014 through 2016 remain open in various foreign jurisdictions. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 8. 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. Upfront arrangement fees incurred in connection with the First Amendment totaled $0.2 million. In connection with the reduction of the revolving credit line capacity, during the third quarter of fiscal 2013 the Company accelerated amortization of approximately $0.7 million of unamortized deferred upfront costs. 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, amend the financial covenants, reduce the revolving loan facility from $50.0 million to $25.0 million 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. 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 yielded interest at a Eurodollar rate plus 3.00%. The Company’s revolving loan facility expired on June 11, 2017 with no outstanding balance at the time of expiration. As of June 30, 2016, $15.0 million was outstanding under the revolving loan facility. Interest Rate Swap In 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. 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 into earnings. 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 within other (expense) income, net, in the Company’s consolidated statement of operations. 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 | 12 Months Ended |
Jun. 30, 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 for fiscal years 2017, 2016 and 2015 was $3.4 million, $3.4 million and $3.5 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 June 30, 2017 were as follows (in thousands): Operating Fiscal Year Ending June 30, Leases 2018 $ 3,660 2019 1,669 2020 380 2021 46 2022 — Thereafter — Total $ 5,755 In February 2010, the Company entered into a lease agreement for its corporate headquarters located at 950 Tower Lane, Foster City, California. The term of the lease began on November 1, 2010 and expires on October 31, 2018. The Company has the option to extend the term of the lease twice by one additional year. The monthly base rent was abated for the first 12 calendar months under the lease, and was $0.1 million through the 24th calendar month of the term of the lease. Monthly base rent increased to $0.2 million for the subsequent 12 months and now increases approximately 3% after each 12-month anniversary during the remaining term, including any extensions under options to extend. 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 June 30, 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 June 30, 2017 and 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Stock Repurchases In November 2016, the Board of Directors authorized a stock repurchase program to repurchase up to 750,000 outstanding shares of its common stock with an expiration date of November 2017. In fiscal year 2017, the Company repurchased 719,023 shares of its common stock at a weighted-average price of $3.43 per share, excluding a broker commission of $0.03 per share, at a total cost of $2.5 million. Repurchases under this program took place in the open market and were made under a Rule 10b5-1 plan. The repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. Retirement of Treasury Stock In fiscal year 2017, the Company retired 719,023 shares of its common stock with a carrying value of $2.5 million. The Company’s |
Stock Benefit Plans
Stock Benefit Plans | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Benefit Plans | 11. Stock Benefit Plans Stock-Based Compensation In fiscal years 2017, 2016 and 2015, the Company recorded stock-based compensation expense of $8.9 million, $11.0 million and $9.9 million. There were no excess tax benefits recognized in fiscal years 2017, 2016 and 2015 due to the Company’s full valuation allowance. There was no gross benefit of tax deductions recognized in fiscal years 2017, 2016 and 2015 due to the Company’s full valuation allowance. Stock Incentive Plans In November 2009, the Company’s board of directors adopted the 2010 Equity Incentive Plan (the “2010 Incentive Plan”) and the Company’s stockholders approved the 2010 Incentive Plan in January 2010. The 2010 Incentive Plan became effective upon the completion of the IPO of the Company’s common stock in February 2010. Awards granted after January 2008 but before the adoption of the 2010 Incentive Plan continue to be governed by the terms of the 2008 Equity Incentive Plan. All outstanding stock awards granted before January 2008 continue to be governed by the terms of the Company’s amended and restated 1999 Equity Incentive Plan. The 2010 Incentive Plan provides for the grant of incentive stock options (“ISOs”), nonstatutory stock options (“NQSOs”), restricted stock, restricted stock units (“RSUs”), stock appreciation rights, performance-based stock awards and other forms of equity compensation, as well as for the grant of performance cash awards. The Company may issue ISOs only to its employees. NQSOs and all other awards may be granted to employees, including officers, nonemployee directors and consultants. Prior to fiscal year 2016, the Company granted restricted stock units with a service condition (“service-based RSUs”). Beginning in fiscal year 2016, the Company also began granting to employees RSUs with a service and market condition (“market-based RSUs”) 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 ISOs, NQSOs, RSUs and performance-based stock awards under the 2010 Incentive Plan. ISOs and NQSOs are generally granted to employees with an exercise price equal to the market price of the Company’s common stock at the date of grant. Stock options granted to employees generally have a contractual term of seven years and vest over four years of continuous service, with 25 percent of the stock options vesting on the one-year anniversary of the date of grant and the remaining 75 percent vesting in equal monthly installments over the three year period thereafter. RSUs granted to employees prior to fiscal year 2013 generally vest over five years of continuous service, with 15 percent of the RSUs vesting on the one-year anniversary of the date of grant, 60 percent vesting in equal quarterly installments over the following three years and the remaining 25 percent vesting in equal quarterly installments over the last year of the vesting period. RSUs granted to employees starting in fiscal year 2013 generally vest over four years of continuous service, with 25 percent of the RSUs vesting on the one-year anniversary of the date of grant and 6.25% vesting quarterly thereafter for the next 12 quarters. An aggregate of 15,920,578 shares of the Company’s common stock were reserved for issuance under the 2010 Incentive Plan as of June 30, 2017, and this amount will be increased by any outstanding stock awards that expire or terminate for any reason prior to their exercise or settlement. The number of shares of the Company’s common stock reserved for issuance is increased annually through July 1, 2019 by up to five percent of the total number of shares of the Company’s common stock outstanding on the last day of the preceding fiscal year. The maximum number of shares that may be issued under the 2010 Incentive Plan is 30,000,000. There were 13,825,928 shares available for issuance under the 2010 Incentive Plan as of June 30, 2017. In November 2009, the Company’s board of directors adopted the 2010 Non-Employee Directors’ Stock Award Plan (the “Directors’ Plan”) and the stockholders approved the Directors’ Plan in January 2010. The Directors’ Plan became effective upon the completion of the Company’s IPO. The Directors’ Plan provides for the automatic grant of NQSOs and RSUs to non-employee directors and also provides for the discretionary grant of NQSOs and RSUs. Stock options granted to new non-employee directors vest in equal monthly installments over four years and annual stock option grants to existing directors vest in equal monthly installments over one year. Prior to fiscal year 2015, the annual service-based RSU grants vested quarterly over a period of four years and the initial service-based RSU grants vested quarterly over a period of one year. Beginning in fiscal year 2015, initial service-based RSU grants vest daily over a period of four years and annual service-based RSU grants vest daily over a period of one year. An aggregate of 3,359,964 shares of the Company’s common stock were reserved for issuance under the Directors’ Plan as of June 30, 2017. This amount is increased annually, by the sum of 200,000 shares and the aggregate number of shares of the Company’s common stock subject to awards granted under the Directors’ Plan during the immediately preceding fiscal year. There were 1,498,539 shares available for issuance under the Directors’ Plan as of June 30, 2017. Valuation Assumptions 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 Company calculates the weighted-average expected life of options using the simplified method pursuant to the accounting guidance for share-based payments as its historical exercise experience does not provide a reasonable basis upon which to estimate expected term. The Company estimates the expected volatility of its common stock based on its historical volatility over the expected term of the stock option and market-based RSU. The Company has no history or expectation of paying dividends on its common stock. The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the stock option and market-based RSU. The weighted-average Black-Scholes model assumptions and the weighted-average grant date fair value of stock options in fiscal years 2017, 2016 and 2015 were as follows: Fiscal Year Ended June 30, 2017 2016 2015 Expected term (in years) 4.5 3.9 4.6 Expected volatility 45 % 43 % 46 % Expected dividend yield — — — Risk-free interest rate 1.3 % 1.0 % 1.6 % Grant date fair value $ 1.41 $ 1.83 $ 1.87 The Company estimates the fair value of market-based RSUs at the date of the grant using the Monte Carlo simulation model. The weighted-average Monte Carlo simulation model assumptions in fiscal years 2017, 2016 and 2015 were as follows: Fiscal Year Ended June 30, 2017 2016 2015 Expected term (in years) 4.0 4.0 — Expected volatility 45 % 47 % — Expected dividend yield — — — Risk-free interest rate 1.1 % 1.3 % — Grant date fair value $ 3.01 $ 5.04 — The fair value of service-based RSUs 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. Stock Option Award Activity The following table summarizes the stock option award activity under the plans in fiscal years 2017 and 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price (In years) (In thousands) Outstanding at June 30, 2015 5,878,441 $ 10.07 2.88 $ 951 Granted 297,586 5.41 Exercised (4,531 ) 5.79 Forfeited (143,863 ) 7.84 Expired (1,720,385 ) 10.18 Outstanding at June 30, 2016 4,307,248 $ 9.78 2.67 $ 15 Granted 1,767,018 3.62 Exercised — — Forfeited (137,925 ) 4.31 Expired (1,714,762 ) 12.15 Outstanding at June 30, 2017 4,221,579 $ 6.50 4.17 $ 996 Vested and expected-to-vest at June 30, 2017 (1) 4,019,351 $ 6.65 4.07 $ 891 Vested and exercisable at June 30, 2017 2,482,868 $ 8.40 2.85 $ 118 (1) The expected-to-vest options are the result of applying the pre-vesting forfeiture assumption to total outstanding options. The following table summarizes outstanding and exercisable stock options by range of exercise price as of June 30, 2017: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range or Exercise Prices Number of Shares Contractual Term Exercise Price Number of Shares Exercise Price $2.70 - $3.59 508,618 6.37 $ 3.48 87,784 $ 3.05 $3.63 - $3.63 1,149,000 6.08 $ 3.63 — — $3.67 - $5.47 422,499 4.20 $ 4.46 339,320 $ 4.45 $5.50 - $5.94 458,435 4.32 $ 5.82 397,299 $ 5.83 $5.96 - $9.24 425,627 2.58 $ 7.76 411,507 $ 7.77 $9.44 - $9.44 25,000 3.22 $ 9.44 23,437 $ 9.44 $9.55 - $9.55 425,500 3.07 $ 9.55 416,621 $ 9.55 $9.64 - $11.26 276,500 1.71 $ 10.25 276,500 $ 10.25 $11.67 - $11.67 423,700 1.09 $ 11.67 423,700 $ 11.67 $12.43 - $15.60 106,700 1.98 $ 14.82 106,700 $ 14.82 $2.70 - $15.60 4,221,579 4.17 $ 6.50 2,482,868 $ 8.40 The following table summarizes the total intrinsic value, the cash received and the actual tax benefit of all options exercised in fiscal years 2017, 2016 and 2015: Fiscal Year Ended June 30, 2017 2016 2015 Intrinsic value $ — $ 1 $ 131 Cash received — 26 975 Tax benefit — — — As of June 30, 2017, there was $1.8 million of total unrecognized compensation expense related to unvested stock options which are expected to be recognized over a weighted-average period of 3.05 years. Service-Based Restricted Stock Unit Activity The following table summarizes the service-based RSU activity under the plans in fiscal years 2017 and 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) Outstanding at June 30, 2015 3,732,630 $ 7.06 1.32 $ 24,064 Granted 98,999 5.99 Vested (1,481,325 ) 6.09 Forfeited (438,395 ) 6.12 Outstanding at June 30, 2016 1,911,909 $ 5.79 1.33 $ 6,691 Granted 1,904,506 3.55 Vested (907,288 ) 6.10 Forfeited (359,464 ) 4.90 Outstanding at June 30, 2017 2,549,663 $ 4.12 1.11 $ 10,632 At the time of vesting, a portion of service-based RSUs are relinquished and cancelled by the Company to provide for federal and state tax withholding obligations resulting from the service-based RSU release. As of June 30, 2017, there was $7.2 million of total unrecognized compensation expense related to service-based RSUs which are expected to be recognized over a weighted-average period of 2.45 years. Market-Based Restricted Stock Unit Activity The following table summarizes the market-based RSU activity under the 2010 Incentive Plan in fiscal years 2017 and 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) Outstanding at June 30, 2015 — $ — — $ — Granted 1,069,162 5.03 Vested — — Forfeited (63,560 ) 5.11 Outstanding at June 30, 2016 1,005,602 $ 5.03 1.36 $ 3,570 Granted 312,660 $ 3.01 Vested — — Forfeited (224,973 ) 4.20 Outstanding at June 30, 2017 1,093,289 $ 4.57 1.22 $ 4,559 As of June 30, 2017, there was $1.0 million of total unrecognized compensation expense related to market-based RSUs which are expected to be recognized over a weighted average period of 1.22 years. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 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): Fiscal Year Ended June 30, 2017 2016 2015 Net revenue: United States $ 292,370 $ 291,526 $ 276,182 International 7,415 6,180 5,958 Total net revenue $ 299,785 $ 297,706 $ 282,140 June 30, June 30, 2017 2016 Property and equipment, net: United States $ 5,116 $ 6,973 International 497 705 Total property and equipment, net $ 5,613 $ 7,678 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Jun. 30, 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 period (in thousands): Fiscal Year Ended June 30, 2017 Employee severance and benefits $ 2,399 Non-cash employee severance and benefits - stock-based compensation 42 Total restructuring charges $ 2,441 The costs were paid in cash in fiscal year 2017. T he corporate restructuring was complete as of June 30, 2017. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events In July 2017, the Company repurchased 30,977 shares of its common stock at a weighted average price of $3.99, excluding a broker commission of $0.03 per share, at a total cost of $0.1 million. This completed the share repurchase program authorized by the Board of Directors in November 2016. In July 2017, the Board of Directors authorized a stock repurchase program allowing the Company to repurchase up to 905,000 outstanding shares of its common stock to offset annual dilution due to equity compensation. The Board of Directors will continue to assess the repurchase program on an ongoing basis as circumstances change. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The 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 impairment. Intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenue earned through the delivery of qualified leads, clicks, calls, customers and, to a lesser extent, display advertisements, or impressions constituted all revenue in fiscal years 2017 and 2016, and more than 99% of revenue in fiscal year 2015. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured. Delivery is deemed to have occurred at the time a qualified lead, inquiry, click, call, application, or customer is delivered to the client provided that no significant obligations remain. The Company allocates revenue in an arrangement using the estimated selling price (“ESP”) of deliverables if it does not have vendor-specific objective evidence (“VSOE”) of selling price based on historical stand-alone sales or third-party evidence (“TPE”) of selling price. Due to the unique nature of some of its multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales or third-party evidence, therefore the Company may use its best estimate to establish selling prices for these arrangements under the standard. The Company establishes best estimates within a range of selling prices considering multiple factors including, but not limited to, class of client, size of transaction, available media inventory, pricing strategies and market conditions. The Company believes the use of the best estimate of selling price allows revenue recognition in a manner consistent with the underlying economics of the transaction. From time to time, the Company may agree to credit a client for certain leads, inquiries, clicks, calls, applications, customers or impressions if they fail to meet the contractual or other guidelines of a particular client. The Company has established a sales reserve based on historical experience. To date, such credits have been within the Company’s estimates. Separately from the agreements the Company has with clients, the Company also has agreements with Internet search companies, third-party publishers and strategic partners to generate potential qualified leads, inquiries, clicks, calls, applications, or customers for our clients. The Company receives a fee from our clients and separately pays a fee to the Internet search companies, third-party publishers and strategic partners. The Company is the primary obligor in the transaction. As a result, the fees paid by its clients are recognized as revenue and the fees paid to its Internet search companies, third-party publishers and strategic partners are included in cost of revenue. Deferred revenue is comprised of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company’s investment portfolio consists of money market funds. Cash is deposited with financial institutions that management believes are creditworthy. To date, the Company has not experienced any material losses on its investment portfolio. The Company maintains contracts with its clients, most of which are cancelable with little or no prior notice. In addition, these contracts do not contain penalty provisions for cancellation before the end of the contract term. In fiscal years 2017 and 2016, the Company had one client, The Progressive Corporation, that accounted for 17% and 12% of net revenue. No other client accounted for 10% or more of net revenue in fiscal years 2017 and 2016 and no client accounted for 10% or more of net revenue in fiscal year 2015. The Company’s accounts receivable are derived from clients located principally in the United States. The Company performs ongoing credit evaluation of its clients, does not require collateral, and maintains allowances for potential credit losses on client accounts when deemed necessary. The Company had one client, The Progressive Corporation, that accounted for 14% of net accounts receivable as of June 30, 2017. No other client accounted for 10% or more of net accounts receivable as of June 30, 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. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. As of June 30, 2017 and 2016, cash equivalents consist of money market funds. As of June 30, 2017, the Company maintains $0.9 million cash restricted as collateral for letters of credit that is reflected within other assets, noncurrent, in the Company’s consolidated balance sheet. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: Computer equipment 3 years Software 3 years Furniture and fixtures 3 to 5 years Leasehold improvements the shorter of the lease term or the estimated useful lives of the improvements |
Internal Software Development Costs | Internal Software Development Costs The Company incurs costs to develop software for internal use. The Company expenses all costs that relate to the planning and post-implementation phases of development as product development expense. Costs incurred in the development phase are capitalized and amortized over the product’s estimated useful life if the product is expected to have a useful life beyond six months. Costs associated with repair or maintenance of existing sites or the developments of website content are included within cost of revenue in the Company’s consolidated statements of operations. The Company’s policy is to amortize capitalized internal software development costs on a product-by-product basis using the straight-line method over the estimated economic life of the application, which is generally two years. The Company capitalized $2.1 million, $3.5 million and $2.5 million in fiscal years 2017, 2016 and 2015. Amortization of internal software development costs is reflected within cost of revenue in the Company’s consolidated statements of operations. |
Goodwill | Goodwill The Company conducts a test for the impairment of goodwill at the reporting unit level on at least an annual basis and whenever there are events or changes in circumstances that would more likely than not reduce the estimated fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows and determining appropriate discount rates, growth rates, an appropriate control premium and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could trigger impairment. The Company performed its annual goodwill impairment test on April 30, 2017 for fiscal year 2017. The Company had one reporting unit for purposes of allocating and testing goodwill. The Company conducted a qualitative assessment to determine whether it was necessary to perform a two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considered the impact of key factors such as changes in industry and competitive environment, stock price, actual revenue performance compared to previous years, forecasts and cash flow generation. Based on the results of the qualitative assessment, there were no indicators of impairment. In the third quarter of fiscal year 2016, the Company’s public market capitalization experienced a decline to a value below the net book carrying value of the Company’s equity which triggered the necessity to conduct an interim goodwill impairment test as of March 31, 2016. As all revenue in fiscal year 2016 had been earned through the delivery of qualified leads, inquiries, clicks, calls, applications, customers, and to a lesser extent, display advertisements, or impressions, the Company had one reporting unit as of March 31, 2016. Given that the Company’s shares are publicly traded in an active market, the Company believes that the quoted market price provides evidence of fair value. As of March 31, 2016, the Company’s market capitalization exceeded the Company’s net book carrying value. Additionally, the Company estimated fair value utilizing a weighting of the fair values derived from the market and income approach which exceeded the Company’s net book carrying value. Based on the results of the step one interim impairment test, the Company determined there were no indicators of impairment as of March 31, 2016. The Company performed its annual goodwill impairment test on April 30, 2016 for fiscal year 2016. The Company conducted a qualitative assessment to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considered any significant change in key factors such as industry and competitive environment, stock price, actual revenue performance compared to previous years and budget, EBITDA and cash flow generation, since the most recent valuation date, March 31, 2016. Based on the results of the qualitative assessment, there were no indicators of impairment. As of June 30, 2016, the Company did not identify any indicators of impairment. The Company performed its annual goodwill impairment test on April 30, 2015 for fiscal year 2015. The Company had two reporting units for purposes of allocating and testing goodwill, DMS and DSS. The Company conducted a qualitative assessment to determine whether it was necessary to perform a two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considered the impact of key factors such as changes in industry and competitive environment, stock price, actual revenue performance compared to previous years, forecasts and cash flow generation. Based on the results of the qualitative assessment, there were no indicators of impairment. |
Long-Lived Assets | Long-Lived Assets The Company evaluates long-lived assets, such as property and equipment and purchased intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If necessary, a quantitative test is performed that requires the application of judgment when assessing the fair value of an asset. When the Company identifies an impairment, it reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. As of April 30, 2017, 2016 and 2015, the Company evaluated its long-lived assets and concluded there were no indicators of impairment. |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach to record deferred taxes. The Company’s deferred income tax assets represent temporary differences between the financial statement carrying amount and the tax basis of existing assets and liabilities that will result in deductible amounts in future years. Based on estimates, the carrying value of the Company’s net deferred tax assets assumes that it is not more likely than not that the Company will be able to generate sufficient future taxable income in the respective tax jurisdictions. The Company’s judgments regarding future profitability may change due to future market conditions, changes in U.S. or international tax laws and other factors. |
Foreign Currency Translation | Foreign Currency Translation The Company’s foreign operations are subject to exchange rate fluctuations. The majority of the Company’s sales and expenses are denominated in U.S. dollars. The functional currency for the majority of the Company’s foreign subsidiaries is the U.S. dollar. For these subsidiaries, assets and liabilities denominated in foreign currency are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for nonmonetary assets and liabilities. Net revenue, cost of revenue and expenses are generally remeasured at average exchange rates in effect during each period. Gains and losses from foreign currency remeasurement are included in other (expense) income, net in the Company’s consolidated statements of operations. Certain foreign subsidiaries designate the local currency as their functional currency. For those subsidiaries, the assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at average exchange rates for the period. The foreign currency translation adjustments are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are recorded within other (expense) income, net in the Company’s consolidated statements of operations and were not material for any period presented. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of two components, net loss and other comprehensive (loss) income. Other comprehensive (loss) income refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net loss. The Company’s comprehensive (loss) income and accumulated other comprehensive loss consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, unrealized gains and losses on marketable securities categorized as available-for-sale and unrealized gains and losses on the interest rate swap. Total accumulated other comprehensive loss is displayed as a separate component of stockholders’ equity. |
Loss Contingencies | Loss Contingencies The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. Management considers the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as its ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to its management to determine whether such accruals should be adjusted and whether new accruals are required. From time to time, the Company is involved in disputes, litigation and other legal actions. The Company records a charge equal to at least the minimum estimated liability for a loss contingency only when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. The actual liability in any such matters may be materially different from the Company’s estimates, which could result in the need to adjust the liability and record additional expenses. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and records the expense related to stock-based transactions based on the fair values of stock-based payment awards, as determined on the date of grant. The fair value of restricted stock units with a service condition is determined based on the closing price of the Company’s common stock on the date of grant. To estimate the fair value of stock options, the Company selected the Black-Scholes option pricing model. To estimate the fair value of restricted stock units with a service and market condition, the Company selected the Monte Carlo simulation model. In applying these models, the Company’s determination of the fair value of the award is affected by assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the award and the employees’ actual and projected stock option exercise and pre-vesting employment termination behaviors. The Company recognizes stock-based compensation expense over the requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant. On an annual basis, the Company assesses changes to its estimate of expected forfeitures based on recent forfeiture activity. The effect of adjustments made to the forfeiture rates, if any, is recognized in the period that change is made. Refer to Note 11, Stock Benefit Plans, for additional information regarding stock-based compensation. |
401(k) Savings Plan | 401(k) Savings Plan The Company sponsors a 401(k) defined contribution plan covering all U.S. employees. There were no employer contributions under this plan in fiscal years 2017, 2016 or 2015. |
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. The Company does not plan to early adopt, and accordingly, will adopt the new standards effective July 1, 2018. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the new standards. The Company is continuing to evaluate the overall impact of the new standard on its financial statements, related disclosures and internal controls over financial reporting and has not selected the method of transition. At this time, the Company has not identified any provisions that are expected to have a significant impact on how the Company recognizes revenue and related expenses. 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. The new guidance became effective in the current fiscal year and did not have an impact on the Company’s consolidated financial statements. 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. The Company is currently assessing the impact of this new guidance. 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. The adoption of this standard is not expected to have an impact on the Company’s consolidated financial statements. In November 2016, the FASB issued a new accounting standard update on the disclosure of restricted cash on the statement of cash flows. The new guidance requires the statement of cash flows explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash, and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. The guidance becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early application permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. 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 consolidated financial statements. In May 2017, the FASB issued a new accounting standard update to amend the scope of modification accounting for share-based payment arrangements. The amendments in the update provide guidance on types of changes to the terms or conditions of share-based payment awards would be required to apply modification accounting under ASC 718, Compensation-Stock Compensation. The new guidance becomes effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this new guidance. |
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 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 June 30, 2017 and 2016, 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 June 30, 2016, the Company used Level 2 assumptions for its 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 June 30, 2017 and 2016, the Company did not have any Level 3 financial assets or liabilities. |
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 | 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 equity interest is recognized at cost within other assets, noncurrent in the Company’s consolidated balance sheets. The Company’s policy is to recognize an impairment in the carrying value of its equity interest in the privately held entity when clear identified events or changes in conditions have a material adverse effect on the fair value of the equity interest. Determining the fair value requires management’s judgement based on the specific facts and circumstances. Events and conditions that could lead to an impairment include a prolonged period of decline in the operating performance and financial condition of the privately held entity or adverse changes in the regulatory environment or market conditions in which the privately held entity operates in the privately held entity’s expected future operating performance which indicated that its equity interest in the privately held entity of $2.5 million would not be recoverable. Accordingly, the Company recorded an impairment of $2.5 million in other (expense) income, net in the Company’s consolidated statements of operations. As of June 30, 2017, the Company has no remaining exposure to loss related to the Company’s investment in the privately held entity. As of June 30, 2016, the Company had $2.5 million recognized related to its investment in the privately held entity. |
Interest Rate Swap | In 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. 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 into earnings. |
Retirement of Treasury Stock | 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. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of the Assets | Property and equipment are stated at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: Computer equipment 3 years Software 3 years Furniture and fixtures 3 to 5 years Leasehold improvements the shorter of the lease term or the estimated useful lives of the improvements |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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: Fiscal Year Ended June 30, 2017 2016 2015 (In thousands, except per share data) Numerator: Basic and Diluted: Net loss $ (12,208 ) $ (19,420 ) $ (20,008 ) Denominator: Basic and Diluted: Weighted-average shares of common stock used in computing basic and diluted net loss per share 45,594 45,197 44,454 Net loss per share: Basic and Diluted (1) $ (0.27 ) $ (0.43 ) $ (0.45 ) Securities excluded from weighted-average shares used in computing diluted net loss per share because the effect would have been anti-dilutive: (2) 7,060 5,331 8,198 (1) Diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred in fiscal years 2017, 2016 and 2015. 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, Mark27
Fair Value Measurements, Marketable Securities and Variable Interest Entities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Recurring Financial Assets and Liabilities | The Company’s recurring financial assets and liabilities as of June 30, 2017 and 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 $ 10,330 $ — $ 10,330 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) This liability was carried at historical cost on the Company’s consolidated balance sheet. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
Accounts Receivable, Net | Accounts receivable, net was comprised of the following (in thousands): June 30, 2017 2016 Accounts receivable $ 46,009 $ 49,503 Less: Allowance for doubtful accounts (547 ) (441 ) Less: Allowance for sales returns (1,403 ) (1,844 ) Total $ 44,059 $ 47,218 |
Property and Equipment, Net | Property and equipment, net was comprised of the following (in thousands): June 30, 2017 2016 Computer equipment $ 12,581 $ 14,673 Software 11,386 11,191 Furniture and fixtures 3,020 3,240 Leasehold improvements 1,917 1,957 Internal software development costs 31,605 29,521 Total property plant and equipment, gross 60,509 60,582 Less: Accumulated depreciation and amortization (54,896 ) (52,904 ) Total property plant and equipment, net $ 5,613 $ 7,678 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets were comprised of the following (in thousands): June 30, 2017 2016 Income tax receivable $ 2,761 $ 3,332 Prepaid expenses 3,051 3,399 Other assets 413 324 Total $ 6,225 $ 7,055 |
Accrued Liabilities | Accrued liabilities were comprised of the following (in thousands): June 30, 2017 2016 Accrued media costs $ 19,917 $ 17,858 Accrued compensation and related expenses 1,936 5,468 Accrued professional service and other business expenses 4,370 4,379 Total $ 26,223 $ 27,705 |
Intangible Assets, Net and Go29
Intangible Assets, Net and Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets, net consisted of the following (in thousands): June 30, 2017 June 30, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer/publisher/advertiser relationships $ 36,908 $ (36,689 ) $ 219 $ 36,669 $ (35,648 ) $ 1,021 Content 61,521 (60,629 ) 892 61,717 (57,778 ) 3,939 Website/trade/domain names 31,287 (28,723 ) 2,564 31,470 (27,288 ) 4,182 Acquired technology and others 36,733 (36,303 ) 430 36,733 (35,794 ) 939 Total $ 166,449 $ (162,344 ) $ 4,105 $ 166,589 $ (156,508 ) $ 10,081 |
Amortization Expense | Future amortization expense for the Company’s intangible assets as of June 30, 2017 was as follows (in thousands): Fiscal Year Ending June 30, Amortization 2018 $ 2,310 2019 863 2020 762 2021 170 2022 — Thereafter — Total $ 4,105 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Loss Before Income Taxes | The components of loss before income taxes were as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 2015 US $ (12,286 ) $ (18,291 ) $ (18,917 ) Foreign (1,002 ) (995 ) (1,335 ) Total $ (13,288 ) $ (19,286 ) $ (20,252 ) |
Components of the (Benefit from) Provision for Taxes | The components of the (benefit from) provision for taxes were as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 2015 Current Federal $ (16 ) $ (131 ) $ (2,140 ) State (1,270 ) (23 ) (149 ) Foreign 191 271 129 Total current (benefit from) provision for income taxes $ (1,095 ) $ 117 $ (2,160 ) Deferred Federal $ 15 $ 15 $ 1,954 State — — — Foreign — 2 (38 ) Total deferred provision for income taxes 15 17 1,916 Total (benefit from) provision for income taxes $ (1,080 ) $ 134 $ (244 ) |
Reconciliation Between Statutory Federal Income Tax and Company's Effective Tax Rates as Percentage of Loss Before Income Taxes | The reconciliation between the statutory federal income tax and the Company’s effective tax rates as a percentage of loss before income taxes was as follows: Fiscal Year Ended June 30, 2017 2016 2015 Federal tax rate 34.0 % 34.0 % 34.0 % States taxes, net of federal benefit 14.5 % 7.7 % 5.8 % Foreign rate differential (0.3 )% (1.1 )% (1.1 )% Stock-based compensation expense (23.9 )% (15.7 )% (13.3 )% Change in valuation allowance (18.7 )% (25.2 )% (25.0 )% Research and development credits 2.5 % 2.7 % 1.6 % Other — (3.1 )% (0.8 )% Effective income tax rate 8.1 % (0.7 )% 1.2 % |
Components of Long-Term Deferred Tax Liabilities, Net | The components of the long-term deferred tax liabilities, net were as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 Noncurrent: Reserves and accruals $ 2,198 $ 3,309 Stock options 4,805 5,885 Intangible assets 41,639 47,850 Net operating loss 27,719 18,812 Fixed assets 194 9 Tax credits 4,488 3,874 Other 868 91 Total noncurrent deferred tax assets 81,911 79,830 Valuation allowance - Long-term (81,964 ) (79,868 ) Noncurrent deferred tax liabilities, net $ (53 ) $ (38 ) |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 2015 Balance at the beginning of the year $ 3,175 $ 3,263 $ 3,077 Gross increases - current period tax positions 295 362 337 Gross increases - prior period tax positions 51 38 115 Gross decreases - prior period tax positions (429 ) — (44 ) Reductions as a result of lapsed statute of limitations (254 ) (488 ) (222 ) Balance at the end of the year $ 2,838 $ 3,175 $ 3,263 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 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 June 30, 2017 were as follows (in thousands): Operating Fiscal Year Ending June 30, Leases 2018 $ 3,660 2019 1,669 2020 380 2021 46 2022 — Thereafter — Total $ 5,755 |
Stock Benefit Plans (Tables)
Stock Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Stock Option Award Activity | The following table summarizes the stock option award activity under the plans in fiscal years 2017 and 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price (In years) (In thousands) Outstanding at June 30, 2015 5,878,441 $ 10.07 2.88 $ 951 Granted 297,586 5.41 Exercised (4,531 ) 5.79 Forfeited (143,863 ) 7.84 Expired (1,720,385 ) 10.18 Outstanding at June 30, 2016 4,307,248 $ 9.78 2.67 $ 15 Granted 1,767,018 3.62 Exercised — — Forfeited (137,925 ) 4.31 Expired (1,714,762 ) 12.15 Outstanding at June 30, 2017 4,221,579 $ 6.50 4.17 $ 996 Vested and expected-to-vest at June 30, 2017 (1) 4,019,351 $ 6.65 4.07 $ 891 Vested and exercisable at June 30, 2017 2,482,868 $ 8.40 2.85 $ 118 (1) The expected-to-vest options are the result of applying the pre-vesting forfeiture assumption to total outstanding options. |
Schedule of Share Based Compensation Options Outstanding and Exercisable By Range of Exercise Price | The following table summarizes outstanding and exercisable stock options by range of exercise price as of June 30, 2017: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range or Exercise Prices Number of Shares Contractual Term Exercise Price Number of Shares Exercise Price $2.70 - $3.59 508,618 6.37 $ 3.48 87,784 $ 3.05 $3.63 - $3.63 1,149,000 6.08 $ 3.63 — — $3.67 - $5.47 422,499 4.20 $ 4.46 339,320 $ 4.45 $5.50 - $5.94 458,435 4.32 $ 5.82 397,299 $ 5.83 $5.96 - $9.24 425,627 2.58 $ 7.76 411,507 $ 7.77 $9.44 - $9.44 25,000 3.22 $ 9.44 23,437 $ 9.44 $9.55 - $9.55 425,500 3.07 $ 9.55 416,621 $ 9.55 $9.64 - $11.26 276,500 1.71 $ 10.25 276,500 $ 10.25 $11.67 - $11.67 423,700 1.09 $ 11.67 423,700 $ 11.67 $12.43 - $15.60 106,700 1.98 $ 14.82 106,700 $ 14.82 $2.70 - $15.60 4,221,579 4.17 $ 6.50 2,482,868 $ 8.40 |
Schedule of Total Intrinsic Value, Cash Received and Actual Tax Benefit of All Options Exercised | The following table summarizes the total intrinsic value, the cash received and the actual tax benefit of all options exercised in fiscal years 2017, 2016 and 2015: Fiscal Year Ended June 30, 2017 2016 2015 Intrinsic value $ — $ 1 $ 131 Cash received — 26 975 Tax benefit — — — |
Stock options [Member] | |
Schedule of Weighted Average Assumptions | The weighted-average Black-Scholes model assumptions and the weighted-average grant date fair value of stock options in fiscal years 2017, 2016 and 2015 were as follows: Fiscal Year Ended June 30, 2017 2016 2015 Expected term (in years) 4.5 3.9 4.6 Expected volatility 45 % 43 % 46 % Expected dividend yield — — — Risk-free interest rate 1.3 % 1.0 % 1.6 % Grant date fair value $ 1.41 $ 1.83 $ 1.87 |
Market-based RSUs [Member] | |
Schedule of Weighted Average Assumptions | The Company estimates the fair value of market-based RSUs at the date of the grant using the Monte Carlo simulation model. The weighted-average Monte Carlo simulation model assumptions in fiscal years 2017, 2016 and 2015 were as follows: Fiscal Year Ended June 30, 2017 2016 2015 Expected term (in years) 4.0 4.0 — Expected volatility 45 % 47 % — Expected dividend yield — — — Risk-free interest rate 1.1 % 1.3 % — Grant date fair value $ 3.01 $ 5.04 — |
Schedule of RSU Activity | The following table summarizes the market-based RSU activity under the 2010 Incentive Plan in fiscal years 2017 and 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) Outstanding at June 30, 2015 — $ — — $ — Granted 1,069,162 5.03 Vested — — Forfeited (63,560 ) 5.11 Outstanding at June 30, 2016 1,005,602 $ 5.03 1.36 $ 3,570 Granted 312,660 $ 3.01 Vested — — Forfeited (224,973 ) 4.20 Outstanding at June 30, 2017 1,093,289 $ 4.57 1.22 $ 4,559 |
Service-based RSU [Member] | |
Schedule of RSU Activity | The following table summarizes the service-based RSU activity under the plans in fiscal years 2017 and 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) Outstanding at June 30, 2015 3,732,630 $ 7.06 1.32 $ 24,064 Granted 98,999 5.99 Vested (1,481,325 ) 6.09 Forfeited (438,395 ) 6.12 Outstanding at June 30, 2016 1,911,909 $ 5.79 1.33 $ 6,691 Granted 1,904,506 3.55 Vested (907,288 ) 6.10 Forfeited (359,464 ) 4.90 Outstanding at June 30, 2017 2,549,663 $ 4.12 1.11 $ 10,632 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 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): Fiscal Year Ended June 30, 2017 2016 2015 Net revenue: United States $ 292,370 $ 291,526 $ 276,182 International 7,415 6,180 5,958 Total net revenue $ 299,785 $ 297,706 $ 282,140 June 30, June 30, 2017 2016 Property and equipment, net: United States $ 5,116 $ 6,973 International 497 705 Total property and equipment, net $ 5,613 $ 7,678 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Charges | The following table summarizes the restructuring charges for the period (in thousands): Fiscal Year Ended June 30, 2017 Employee severance and benefits $ 2,399 Non-cash employee severance and benefits - stock-based compensation 42 Total restructuring charges $ 2,441 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)Segment | Jun. 30, 2017USD ($)ClientSegment | Jun. 30, 2016USD ($)Client | Jun. 30, 2015USD ($)ClientSegment | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of clients accounted for more than 10% of net revenue | Client | 0 | 0 | 0 | |
Number of clients accounted for more than 10% of net accounts receivable | Client | 0 | 0 | ||
Maximum period for classifying as cash and cash equivalents | 3 months | |||
Restricted cash as collateral for letters of credit | $ 900,000 | |||
Costs incurred in development phase are capitalized and amortized period | 6 months | |||
Software capitalized amount | $ 2,100,000 | $ 3,500,000 | $ 2,500,000 | |
Number of reporting units | Segment | 1 | 1 | 2 | |
Impairment charges recorded | $ 0 | $ 0 | 0 | |
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | |
Weighted-average useful life of intangible assets | 9 years 3 months 19 days | |||
Software Development [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of the assets | 2 years | |||
The Progressive Corporation [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of clients accounted for more than 10% of net revenue | Client | 1 | 1 | ||
Number of clients accounted for more than 10% of net accounts receivable | Client | 1 | |||
Customer Concentration Risk [Member] | Net revenue [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage accounted by major clients | 17.00% | 12.00% | ||
Customer Concentration Risk [Member] | Net accounts receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage accounted by major clients | 14.00% | |||
Direct Marketing Services [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of revenue | 100.00% | 100.00% | 99.00% | |
Impairment charges recorded | $ 0 | |||
DSS [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment charges recorded | $ 0 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Estimated Useful Lives of the Assets (Detail) | 12 Months Ended |
Jun. 30, 2017 | |
Computer equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of Leasehold improvement | the shorter of the lease term or the estimated useful lives of the improvements |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Net Loss per Share - Calculatio
Net Loss per Share - Calculation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Basic and Diluted: | ||||
Net loss | $ (12,208) | $ (19,420) | $ (20,008) | |
Basic and Diluted: | ||||
Weighted average shares of common stock used in computing basic and diluted net loss per share | 45,594 | 45,197 | 44,454 | |
Net loss per share: | ||||
Basic and Diluted | [1] | $ (0.27) | $ (0.43) | $ (0.45) |
Securities excluded from weighted average shares used in computing diluted net loss per share because the effect would have been anti-dilutive: | [2] | 7,060 | 5,331 | 8,198 |
[1] | Diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred in fiscal years 2017, 2016 and 2015. 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, Mark38
Fair Value Measurements, Marketable Securities and Variable Interest Entities - Schedule of Company's Recurring Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Money market funds [Member] | ||
Assets: | ||
Assets, Fair Value Measurements | $ 10,300 | $ 20,200 |
Fair Value Measurements, Recurring [Member] | Revolving loan facility [Member] | ||
Liabilities: | ||
Liabilities, Fair Value Measurements | 15,000 | |
Fair Value Measurements, Recurring [Member] | Money market funds [Member] | ||
Assets: | ||
Assets, Fair Value Measurements | 10,330 | 20,203 |
Fair Value Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ||
Assets: | ||
Assets, Fair Value Measurements | $ 10,330 | 20,203 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Revolving loan facility [Member] | ||
Liabilities: | ||
Liabilities, Fair Value Measurements | $ 15,000 |
Fair Value Measurements, Mark39
Fair Value Measurements, Marketable Securities and Variable Interest Entities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)Security | Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($) | |
Schedule of Money Market Funds and Variable Interest Entities [Line Items] | ||||
Marketable securities | $ 0 | $ 0 | $ 0 | |
Realized gains (losses) from sales of securities | $ 0 | $ 0 | $ 0 | |
Number of securities hold maturity greater than one year | Security | 0 | 0 | 0 | |
Impairment of investment | $ 2,500,000 | |||
VIE not primary beneficiary [Member] | ||||
Schedule of Money Market Funds and Variable Interest Entities [Line Items] | ||||
Interest at cost before impairment | $ 2,500,000 | 2,500,000 | ||
Maximum exposure to loss as a result of investment in privately held entity | 0 | 0 | ||
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 | |||
VIE not primary beneficiary [Member] | Other (expense) income, net [Member] | ||||
Schedule of Money Market Funds and Variable Interest Entities [Line Items] | ||||
Impairment of investment | 2,500,000 | |||
Money market funds [Member] | ||||
Schedule of Money Market Funds and Variable Interest Entities [Line Items] | ||||
Cash and cash equivalents | $ 10,300,000 | $ 10,300,000 | $ 20,200,000 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accounts Receivable Net Current [Abstract] | ||
Accounts receivable | $ 46,009 | $ 49,503 |
Less: Allowance for doubtful accounts | (547) | (441) |
Less: Allowance for sales returns | (1,403) | (1,844) |
Total | $ 44,059 | $ 47,218 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | $ 60,509 | $ 60,582 |
Less: Accumulated depreciation and amortization | (54,896) | (52,904) |
Total property plant and equipment, net | 5,613 | 7,678 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 12,581 | 14,673 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 11,386 | 11,191 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 3,020 | 3,240 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 1,917 | 1,957 |
Internal software development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | $ 31,605 | $ 29,521 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Balance Sheet Components [Line Items] | |||
Depreciation expense | $ 2.3 | $ 3.8 | $ 4 |
Amortization expense related to internal software development costs | 2.9 | $ 2.4 | $ 2.4 |
Partnership Agreement [Member] | |||
Balance Sheet Components [Line Items] | |||
Partnership agreement | 10 years | ||
Upfront cash payment | $ 10 | ||
Prepaid expenses and other assets | 1 | 1 | |
Other assets, noncurrent | 7.3 | 8.3 | |
Amortization expense | $ 1 | $ 0.7 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Assets Current (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Income tax receivable | $ 2,761 | $ 3,332 |
Prepaid expenses | 3,051 | 3,399 |
Other assets | 413 | 324 |
Total | $ 6,225 | $ 7,055 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Payables And Accruals [Abstract] | ||
Accrued media costs | $ 19,917 | $ 17,858 |
Accrued compensation and related expenses | 1,936 | 5,468 |
Accrued professional service and other business expenses | 4,370 | 4,379 |
Total | $ 26,223 | $ 27,705 |
Intangible Assets, Net and Go45
Intangible Assets, Net and Goodwill - Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 166,449 | $ 166,589 |
Accumulated Amortization | (162,344) | (156,508) |
Net Carrying Amount | 4,105 | 10,081 |
Customer/publisher/advertiser relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,908 | 36,669 |
Accumulated Amortization | (36,689) | (35,648) |
Net Carrying Amount | 219 | 1,021 |
Content [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 61,521 | 61,717 |
Accumulated Amortization | (60,629) | (57,778) |
Net Carrying Amount | 892 | 3,939 |
Website/trade/domain names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,287 | 31,470 |
Accumulated Amortization | (28,723) | (27,288) |
Net Carrying Amount | 2,564 | 4,182 |
Acquired technology and others [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,733 | 36,733 |
Accumulated Amortization | (36,303) | (35,794) |
Net Carrying Amount | $ 430 | $ 939 |
Intangible Assets, Net and Go46
Intangible Assets, Net and Goodwill - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 6,200,000 | $ 8,900,000 | $ 12,500,000 | |
Goodwill | 56,118,000 | 56,118,000 | ||
Additions to goodwill | 0 | 0 | ||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Intangible Assets, Net and Go47
Intangible Assets, Net and Goodwill - Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 2,310 | |
2,019 | 863 | |
2,020 | 762 | |
2,021 | 170 | |
Net Carrying Amount | $ 4,105 | $ 10,081 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
US | $ (12,286) | $ (18,291) | $ (18,917) |
Foreign | (1,002) | (995) | (1,335) |
Loss before income taxes | $ (13,288) | $ (19,286) | $ (20,252) |
Income Taxes - Components of th
Income Taxes - Components of the (Benefit from) Provision for Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current | |||
Federal | $ (16) | $ (131) | $ (2,140) |
State | (1,270) | (23) | (149) |
Foreign | 191 | 271 | 129 |
Total current (benefit from) provision for income taxes | (1,095) | 117 | (2,160) |
Deferred | |||
Federal | 15 | 15 | 1,954 |
Foreign | 0 | 2 | (38) |
Total deferred provision for income taxes | 15 | 17 | 1,916 |
Total (benefit from) provision for income taxes | $ (1,080) | $ 134 | $ (244) |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Statutory Federal Income Tax and Company's Effective Tax Rates as Percentage of Loss Before Income Taxes (Detail) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal tax rate | 34.00% | 34.00% | 34.00% |
States taxes, net of federal benefit | 14.50% | 7.70% | 5.80% |
Foreign rate differential | (0.30%) | (1.10%) | (1.10%) |
Stock-based compensation expense | (23.90%) | (15.70%) | (13.30%) |
Change in valuation allowance | (18.70%) | (25.20%) | (25.00%) |
Research and development credits | 2.50% | 2.70% | 1.60% |
Other | 0.00% | (3.10%) | (0.80%) |
Effective income tax rate | 8.10% | (0.70%) | 1.20% |
Income Taxes - Components of 51
Income Taxes - Components of Long-Term Deferred Tax Liabilities, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Noncurrent: | ||
Reserves and accruals | $ 2,198 | $ 3,309 |
Stock options | 4,805 | 5,885 |
Intangible assets | 41,639 | 47,850 |
Net operating loss | 27,719 | 18,812 |
Fixed assets | 194 | 9 |
Tax credits | 4,488 | 3,874 |
Other | 868 | 91 |
Total noncurrent deferred tax assets | 81,911 | 79,830 |
Valuation allowance - Long-term | (81,964) | (79,868) |
Noncurrent deferred tax liabilities, net | $ (53) | $ (38) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | $ 27,719 | $ 18,812 |
Income taxes have not been provided for cumulative undistributed earnings | 2,800 | |
Interest and penalties related to the unrecognized tax benefits | 1,000 | |
Unrecognized tax benefits that if recognized would affect the effective tax rate | 1,100 | |
Federal [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | $ 69,500 | 45,300 |
Operating loss carry-forwards, expire date | Jun. 30, 2035 | |
Research and development carry-forwards | $ 2,100 | |
Tax credit carry-forwards, expire date | Jun. 30, 2033 | |
Federal [Member] | Earliest Tax Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,013 | |
Federal [Member] | Latest Tax Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,016 | |
Federal [Member] | Stock option windfall deductions [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | $ 100 | |
State [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | $ 37,100 | $ 28,700 |
Operating loss carry-forwards, expire date | Jun. 30, 2034 | |
State [Member] | Earliest Tax Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,012 | |
State [Member] | Latest Tax Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,016 | |
Other State [Member] | Stock option windfall deductions [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | $ 200 | |
International [Member] | Earliest Tax Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,014 | |
International [Member] | Latest Tax Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax year | 2,016 | |
California [Member] | State [Member] | ||
Income Tax Contingency [Line Items] | ||
Research and development carry-forwards | $ 5,400 | |
California [Member] | State [Member] | Stock option windfall deductions [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | 300 | |
Brazil [Member] | International [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | 2,300 | |
India [Member] | International [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carry-forwards | $ 4,800 | |
Operating loss carry-forwards, expire date | Jun. 30, 2021 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 3,175 | $ 3,263 | $ 3,077 |
Gross increases - current period tax positions | 295 | 362 | 337 |
Gross increases - prior period tax positions | 51 | 38 | 115 |
Gross decreases - prior period tax positions | (429) | 0 | (44) |
Reductions as a result of lapsed statute of limitations | (254) | (488) | (222) |
Unrecognized Tax Benefits, Ending Balance | $ 2,838 | $ 3,175 | $ 3,263 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jun. 11, 2015 | Jul. 17, 2014 | Feb. 15, 2013 | Jun. 30, 2015 | Nov. 30, 2011 | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||||||
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 | ||||||
Interest rate swap [Member] | Other (expense) income, net [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Expense recognized upon termination of agreement | $ 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% | ||||||
Revolving loan facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan facility, total | $ 200,000,000 | ||||||
Loan facility, term | 5 years | ||||||
Credit Agreement expiration date | Jun. 11, 2017 | ||||||
Outstanding amount | $ 0 | $ 15,000,000 | |||||
Revolving loan facility [Member] | First Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan facility, total | $ 200,000,000 | ||||||
Loan Amendment date | Feb. 15, 2013 | ||||||
Loan facility, current | 100,000,000 | ||||||
Upfront arrangement fees incurred in connection with the term loan facility | 200,000 | ||||||
Acceleration of unamortized deferred upfront costs | $ 700,000 | ||||||
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 | ||||||
Acceleration of unamortized deferred upfront costs | 300,000 | ||||||
Upfront arrangement fees incurred | $ 300,000 | ||||||
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 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% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2017USD ($)Lease | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense for office space | $ 3,400,000 | $ 3,400,000 | $ 3,500,000 |
Leases expiration year | 2,021 | ||
Period of extended lease term | 1 year | ||
Monthly base rent for second year | $ 100,000 | ||
Monthly base rent for third year | $ 200,000 | ||
Percent of rent base increase | 3.00% | ||
Lease term began | Nov. 1, 2010 | ||
Lease term expires | Oct. 31, 2018 | ||
Number of times lease term can be extended | Lease | 2 | ||
Estimated fair value of indemnification agreements | $ 0 | 0 | |
Estimated fair value of indemnity provisions | $ 0 | $ 0 |
Commitments and Contingencies56
Commitments and Contingencies - Future Annual Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 3,660 |
2,019 | 1,669 |
2,020 | 380 |
2,021 | 46 |
Total | $ 5,755 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Nov. 30, 2016 | |
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase program, value of shares repurchased | $ 2,487 | |
Retirement of treasury stock, Shares | 719,023 | |
Treasury stock retired, carrying value | $ 2,487 | |
Treasury Stock, Common [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase program, expiration date | 2017-11 | |
Stock repurchase program, number of shares repurchased | 719,023 | |
Stock repurchase program, weighted average price | $ 3.43 | |
Broker commission, per share | $ 0.03 | |
Stock repurchase program, value of shares repurchased | $ 2,500 | |
Treasury Stock, Common [Member] | 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) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2009 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 8,898,000 | $ 10,968,000 | $ 9,855,000 | ||
Recognition of related excess tax benefits | 0 | $ 0 | $ 0 | ||
Total unrecognized compensation expense related to stock options | $ 1,800,000 | ||||
Unvested stock options weighted average period (in years) | 3 years 18 days | ||||
Service-based RSUs weighted average period (in years) | 2 years 5 months 12 days | ||||
Market-based RSUs weighted average period (in years) | 1 year 2 months 20 days | ||||
2010 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General contractual term for stock options granted to employees | 7 years | ||||
Common stock reserved for issuance | 15,920,578 | ||||
Percentage of common stock reserved for issuance to be increased | 5.00% | ||||
Maximum number of shares that may be issued | 30,000,000 | ||||
Shares available for issuance | 13,825,928 | ||||
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 | 1,498,539 | ||||
Number of common stock shares increased in reserve for annual basis | 200,000 | ||||
Stock options [Member] | 2010 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Stock options vesting percentage one year from the date of grant | 25.00% | ||||
Remaining stock option vesting percentage over the three years period thereafter | 75.00% | ||||
Stock options [Member] | Directors' Plan [Member] | Annual Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Stock options [Member] | Directors' Plan [Member] | Initial Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
RSUs [Member] | 2010 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | 5 years | |||
RSUs vesting percentage one year from the date of grant | 25.00% | 15.00% | |||
RSUs vesting percentage over the following three years | 60.00% | ||||
Remaining RSUs vesting percentage | 25.00% | ||||
Remaining RSUs vesting quarterly thereafter percentage | 6.25% | ||||
RSUs [Member] | Directors' Plan [Member] | Initial Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | 4 years | 4 years | ||
Service-based RSU [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation expense | $ 7,200,000 | ||||
Market-based RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation expense | $ 1,000,000 |
Stock Benefit Plans - Schedule
Stock Benefit Plans - Schedule of Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 6 months | 3 years 10 months 25 days | 4 years 7 months 6 days |
Expected volatility | 45.00% | 43.00% | 46.00% |
Risk-free interest rate | 1.30% | 1.00% | 1.60% |
Grant date fair value | $ 1.41 | $ 1.83 | $ 1.87 |
Market-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years | 4 years | 0 years |
Expected volatility | 45.00% | 47.00% | |
Risk-free interest rate | 1.10% | 1.30% | |
Grant date fair value | $ 3.01 | $ 5.04 |
Stock Benefit Plans -Schedule o
Stock Benefit Plans -Schedule of Stock Option Award Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning balance, Shares | 4,307,248 | 5,878,441 | |
Granted, Shares | 1,767,018 | 297,586 | |
Exercised, Shares | (4,531) | ||
Forfeited, Shares | (137,925) | (143,863) | |
Expired, Shares | (1,714,762) | (1,720,385) | |
Ending balance, Shares | 4,221,579 | 4,307,248 | 5,878,441 |
Vested and expected-to-vest at June 30, 2017, Shares | 4,019,351 | ||
Vested and exercisable at June 30, 2017, Shares | 2,482,868 | ||
Beginning balance, Weighted Average Exercise Price | $ 9.78 | $ 10.07 | |
Granted, Weighted Average Exercise Price | 3.62 | 5.41 | |
Exercised, Weighted Average Exercise Price | 5.79 | ||
Forfeited, Weighted Average Exercise Price | 4.31 | 7.84 | |
Expired, Weighted Average Exercise Price | 12.15 | 10.18 | |
Ending balance, Weighted Average Exercise Price | 6.50 | $ 9.78 | $ 10.07 |
Vested and expected-to-vest at June 30, 2017, Weighted Average Exercise Price | 6.65 | ||
Vested and exercisable at June 30, 2017, Weighted Average Exercise Price | $ 8.40 | ||
Weighted Average Remaining Contractual Life (In years) | 4 years 2 months 1 day | 2 years 8 months 2 days | 2 years 10 months 17 days |
Vested and expected-to-vest at June 30, 2017, Weighted Average Remaining Contractual Life (In years) | 4 years 26 days | ||
Vested and exercisable at June 30, 2017, Weighted Average Remaining Contractual Life (In years) | 2 years 10 months 6 days | ||
Aggregate Intrinsic Value | $ 996 | $ 15 | $ 951 |
Vested and expected-to-vest at June 30, 2017, Aggregate Intrinsic Value | 891 | ||
Vested and exercisable at June 30, 2017, Aggregate Intrinsic Value | $ 118 |
Stock Benefit Plans - Schedul61
Stock Benefit Plans - Schedule of Share Based Compensation Options Outstanding and Exercisable By Price Range (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number of Shares | 4,221,579 | 4,307,248 | 5,878,441 |
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 1 day | 2 years 8 months 2 days | 2 years 10 months 17 days |
Options Outstanding, Weighted Average Exercise Price | $ 6.50 | $ 9.78 | $ 10.07 |
$2.70 - $3.59 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 2.70 | ||
Weighted Average Exercise Price, Upper | $ 3.59 | ||
Options Outstanding, Number of Shares | 508,618 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 13 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 3.48 | ||
Options Exercisable, Number of Shares | 87,784 | ||
Options Exercisable, Weighted Average Exercise Price | $ 3.05 | ||
$3.63 - $3.63 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 3.63 | ||
Weighted Average Exercise Price, Upper | $ 3.63 | ||
Options Outstanding, Number of Shares | 1,149,000 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 29 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 3.63 | ||
$3.67 - $5.47 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 3.67 | ||
Weighted Average Exercise Price, Upper | $ 5.47 | ||
Options Outstanding, Number of Shares | 422,499 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 12 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 4.46 | ||
Options Exercisable, Number of Shares | 339,320 | ||
Options Exercisable, Weighted Average Exercise Price | $ 4.45 | ||
$5.50 - $5.94 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 5.50 | ||
Weighted Average Exercise Price, Upper | $ 5.94 | ||
Options Outstanding, Number of Shares | 458,435 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 3 months 26 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 5.82 | ||
Options Exercisable, Number of Shares | 397,299 | ||
Options Exercisable, Weighted Average Exercise Price | $ 5.83 | ||
$5.96 - $9.24 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 5.96 | ||
Weighted Average Exercise Price, Upper | $ 9.24 | ||
Options Outstanding, Number of Shares | 425,627 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 2 years 6 months 29 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 7.76 | ||
Options Exercisable, Number of Shares | 411,507 | ||
Options Exercisable, Weighted Average Exercise Price | $ 7.77 | ||
$9.44 - $9.44 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 9.44 | ||
Weighted Average Exercise Price, Upper | $ 9.44 | ||
Options Outstanding, Number of Shares | 25,000 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 2 months 19 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 9.44 | ||
Options Exercisable, Number of Shares | 23,437 | ||
Options Exercisable, Weighted Average Exercise Price | $ 9.44 | ||
$9.55 - $9.55 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 9.55 | ||
Weighted Average Exercise Price, Upper | $ 9.55 | ||
Options Outstanding, Number of Shares | 425,500 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 26 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 9.55 | ||
Options Exercisable, Number of Shares | 416,621 | ||
Options Exercisable, Weighted Average Exercise Price | $ 9.55 | ||
$9.64 - $11.26 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 9.64 | ||
Weighted Average Exercise Price, Upper | $ 11.26 | ||
Options Outstanding, Number of Shares | 276,500 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 8 months 16 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 10.25 | ||
Options Exercisable, Number of Shares | 276,500 | ||
Options Exercisable, Weighted Average Exercise Price | $ 10.25 | ||
$11.67 - $11.67 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 11.67 | ||
Weighted Average Exercise Price, Upper | $ 11.67 | ||
Options Outstanding, Number of Shares | 423,700 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 1 month 2 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 11.67 | ||
Options Exercisable, Number of Shares | 423,700 | ||
Options Exercisable, Weighted Average Exercise Price | $ 11.67 | ||
$12.43 - $15.60 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 12.43 | ||
Weighted Average Exercise Price, Upper | $ 15.60 | ||
Options Outstanding, Number of Shares | 106,700 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 11 months 23 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 14.82 | ||
Options Exercisable, Number of Shares | 106,700 | ||
Options Exercisable, Weighted Average Exercise Price | $ 14.82 | ||
$2.70 - $15.60 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 2.70 | ||
Weighted Average Exercise Price, Upper | $ 15.60 | ||
Options Outstanding, Number of Shares | 4,221,579 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 1 day | ||
Options Outstanding, Weighted Average Exercise Price | $ 6.50 | ||
Options Exercisable, Number of Shares | 2,482,868 | ||
Options Exercisable, Weighted Average Exercise Price | $ 8.40 |
Stock Benefit Plans - Schedul62
Stock Benefit Plans - Schedule of Total Intrinsic Value, Cash Received and Actual Tax Benefit of All Options Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Intrinsic value | $ 1 | $ 131 |
Cash received | $ 26 | $ 975 |
Stock Benefit Plans - Schedul63
Stock Benefit Plans - Schedule of RSU Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Service-based RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Shares | 1,911,909 | 3,732,630 | |
Granted, Shares | 1,904,506 | 98,999 | |
Vested, Shares | (907,288) | (1,481,325) | |
Forfeited, Shares | (359,464) | (438,395) | |
Ending balance, Shares | 2,549,663 | 1,911,909 | 3,732,630 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 5.79 | $ 7.06 | |
Granted, Weighted Average Grant Date Fair Value | 3.55 | 5.99 | |
Vested, Weighted Average Grant Date Fair Value | 6.10 | 6.09 | |
Forfeited, Weighted Average Grant Date Fair Value | 4.90 | 6.12 | |
Ending balance, Weighted Average Grant Date Fair Value | $ 4.12 | $ 5.79 | $ 7.06 |
Weighted Average Remaining Contractual Life (In years) | 1 year 1 month 9 days | 1 year 3 months 29 days | 1 year 3 months 26 days |
Aggregate Intrinsic Value, Outstanding | $ 10,632 | $ 6,691 | $ 24,064 |
Market-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Shares | 1,005,602 | ||
Granted, Shares | 312,660 | 1,069,162 | |
Vested, Shares | 0 | 0 | |
Forfeited, Shares | (224,973) | (63,560) | |
Ending balance, Shares | 1,093,289 | 1,005,602 | |
Beginning balance, Weighted Average Grant Date Fair Value | $ 5.03 | ||
Granted, Weighted Average Grant Date Fair Value | 3.01 | $ 5.03 | |
Forfeited, Weighted Average Grant Date Fair Value | 4.20 | 5.11 | |
Ending balance, Weighted Average Grant Date Fair Value | $ 4.57 | $ 5.03 | |
Weighted Average Remaining Contractual Life (In years) | 1 year 2 months 19 days | 1 year 4 months 9 days | |
Aggregate Intrinsic Value, Outstanding | $ 4,559 | $ 3,570 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 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 | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net revenue: | |||
Total net revenue | $ 299,785 | $ 297,706 | $ 282,140 |
Property and equipment, net: | |||
Total property and equipment, net | 5,613 | 7,678 | |
United States [Member] | |||
Net revenue: | |||
Total net revenue | 292,370 | 291,526 | 276,182 |
Property and equipment, net: | |||
Total property and equipment, net | 5,116 | 6,973 | |
International [Member] | |||
Net revenue: | |||
Total net revenue | 7,415 | 6,180 | $ 5,958 |
Property and equipment, net: | |||
Total property and equipment, net | $ 497 | $ 705 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring inception year and month | 2016-11 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Restructuring Charges (Detail) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017USD ($) | ||
Restructuring And Related Activities [Abstract] | ||
Employee severance and benefits | $ 2,399 | |
Non-cash employee severance and benefits - stock-based compensation | 42 | |
Total restructuring charges | $ 2,441 | [1] |
[1] | (1)Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $3,109 $3,780 $3,120 Product development 1,834 2,340 2,395 Sales and marketing 1,154 1,825 2,144 General and administrative 2,759 3,023 2,196 Restructuring charges 42 — — |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2017 | Jun. 30, 2017 | Nov. 30, 2016 | |
Subsequent Event [Line Items] | |||
Stock repurchase program, value of shares repurchased | $ 2,487 | ||
Treasury Stock, Common [Member] | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, number of shares repurchased | 719,023 | ||
Stock repurchase program, weighted average price | $ 3.43 | ||
Broker commission, per share | $ 0.03 | ||
Stock repurchase program, value of shares repurchased | $ 2,500 | ||
Treasury Stock, Common [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, number of shares repurchased | 30,977 | ||
Stock repurchase program, weighted average price | $ 3.99 | ||
Broker commission, per share | $ 0.03 | ||
Stock repurchase program, value of shares repurchased | $ 100 | ||
Treasury Stock, Common [Member] | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, number of outstanding shares authorized to repurchase | 750,000 | ||
Treasury Stock, Common [Member] | Maximum [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, number of outstanding shares authorized to repurchase | 905,000 |