Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Sep. 07, 2018 | Dec. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | 49,078,172 | ||
Entity Public Float | $ 295,202,687 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 64,700 | $ 49,571 |
Accounts receivable, net | 68,492 | 44,059 |
Prepaid expenses and other assets | 4,432 | 6,225 |
Total current assets | 137,624 | 99,855 |
Property and equipment, net | 4,211 | 5,613 |
Goodwill | 62,283 | 56,118 |
Other intangible assets, net | 8,573 | 4,105 |
Other assets, noncurrent | 7,605 | 8,617 |
Total assets | 220,296 | 174,308 |
Current liabilities: | ||
Accounts payable | 32,506 | 25,205 |
Accrued liabilities | 34,811 | 26,223 |
Deferred revenue | 715 | 1,126 |
Total current liabilities | 68,032 | 52,554 |
Other liabilities, noncurrent | 3,938 | 3,672 |
Total liabilities | 71,970 | 56,226 |
Commitments and contingencies (See Note 9) | ||
Stockholders' equity: | ||
Common stock: $0.001 par value; 100,000,000 shares authorized; 48,146,384 and 45,435,836 shares issued and outstanding at June 30, 2018 and June 30, 2017 | 48 | 45 |
Additional paid-in capital | 277,761 | 263,533 |
Accumulated other comprehensive loss | (380) | (463) |
Accumulated deficit | (129,103) | (145,033) |
Total stockholders' equity | 148,326 | 118,082 |
Total liabilities and stockholders' equity | $ 220,296 | $ 174,308 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
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 | 48,146,384 | 45,435,836 |
Common stock, shares outstanding | 48,146,384 | 45,435,836 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Income Statement [Abstract] | ||||
Net revenue | $ 404,358,000 | $ 299,785,000 | $ 297,706,000 | |
Cost of revenue | [1] | 345,947,000 | 269,409,000 | 270,963,000 |
Gross profit | 58,411,000 | 30,376,000 | 26,743,000 | |
Operating expenses: | ||||
Product development | [1] | 13,805,000 | 13,476,000 | 16,431,000 |
Sales and marketing | [1] | 10,414,000 | 9,189,000 | 12,020,000 |
General and administrative | [1] | 18,556,000 | 15,934,000 | 17,166,000 |
Restructuring charges | [1] | 0 | 2,441,000 | 0 |
Operating income (loss) | 15,636,000 | (10,664,000) | (18,874,000) | |
Interest income | 181,000 | 138,000 | 61,000 | |
Interest expense | 0 | (346,000) | (585,000) | |
Other income (expense), net | 687,000 | (2,416,000) | 112,000 | |
Income (loss) before income taxes | 16,504,000 | (13,288,000) | (19,286,000) | |
(Provision for) benefit from income taxes | (574,000) | 1,080,000 | (134,000) | |
Net income (loss) | $ 15,930,000 | $ (12,208,000) | $ (19,420,000) | |
Net income (loss) per share: | ||||
Basic | $ 0.34 | $ (0.27) | $ (0.43) | |
Diluted | [2] | $ 0.32 | $ (0.27) | $ (0.43) |
Weighted-average shares used in computing net income (loss) per share: | ||||
Basic | 46,417 | 45,594 | 45,197 | |
Diluted | 49,872 | 45,594 | 45,197 | |
[1] | Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $3,982 $3,109 $3,780 Product development 1,949 1,834 2,340 Sales and marketing 1,222 1,154 1,825 General and administrative 3,029 2,759 3,023 Restructuring charges — 42 — | |||
[2] | In fiscal 2017 and 2016, diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred as the assumed issuance of any additional shares would be anti-dilutive |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cost of revenue [Member] | |||
Stock-based compensation | $ 3,982 | $ 3,109 | $ 3,780 |
Product development [Member] | |||
Stock-based compensation | 1,949 | 1,834 | 2,340 |
Sales and marketing [Member] | |||
Stock-based compensation | 1,222 | 1,154 | 1,825 |
General and administrative [Member] | |||
Stock-based compensation | 3,029 | 2,759 | 3,023 |
Restructuring charges [Member] | |||
Stock-based compensation | $ 0 | $ 42 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 15,930 | $ (12,208) | $ (19,420) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 83 | (45) | (5) |
Total other comprehensive income (loss) | 83 | (45) | (5) |
Comprehensive income (loss) | $ 16,013 | $ (12,253) | $ (19,425) |
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, 2015 | $ 135,585 | $ 45 | $ 249,358 | $ (413) | $ (113,405) | |
Beginning 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 | |||||
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) | ||||
Retirement of treasury stock | 0 | |||||
Net income (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 | |||||
Issuance of common stock upon exercise of stock options, Shares | 0 | |||||
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 income (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 | ||||
Issuance of common stock upon exercise of stock options | $ 11,115 | $ 1 | 11,114 | |||
Issuance of common stock upon exercise of stock options, Shares | 1,465,265 | 1,465,265 | ||||
Release of restricted stock, net of share settlement | $ 0 | $ 2 | $ 0 | (2) | 0 | 0 |
Release of restricted stock, net of share settlement, Shares | 1,338,624 | 0 | ||||
Stock-based compensation expense | 10,250 | 10,250 | ||||
Withholding taxes related to release of restricted stock, net of share settlement | (6,487) | (6,487) | ||||
Repurchase of common stock | (647) | $ (647) | ||||
Repurchase of common stock, Shares | (93,341) | |||||
Retirement of treasury stock | $ 647 | $ 647 | (647) | |||
Retirement of treasury stock, Shares | 93,341 | (93,341) | 93,341 | |||
Net income (loss) | $ 15,930 | 15,930 | ||||
Other comprehensive income (loss) | 83 | 83 | ||||
Ending Balance at Jun. 30, 2018 | $ 148,326 | $ 48 | $ 277,761 | $ (380) | $ (129,103) | |
Ending Balance, Shares at Jun. 30, 2018 | 48,146,384 | 48,146,384 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 15,930 | $ (12,208) | $ (19,420) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 7,767 | 11,377 | 15,087 |
Impairment of investment | 0 | 2,500 | 0 |
Provision for sales returns and doubtful accounts receivable | 525 | 291 | 789 |
Stock-based compensation | 10,182 | 8,898 | 10,968 |
Other adjustments, net | (1,108) | (116) | (65) |
Changes in assets and liabilities: | |||
Accounts receivable | (24,958) | 2,868 | (1,767) |
Prepaid expenses and other assets | 1,910 | 830 | 4,448 |
Deferred taxes | (51) | (430) | (496) |
Other assets, noncurrent | 1,096 | 891 | (8,179) |
Accounts payable | 7,350 | 5,394 | (505) |
Accrued liabilities | 8,489 | (1,155) | 608 |
Deferred revenue | (411) | (74) | (8) |
Other liabilities, noncurrent | 258 | (530) | (445) |
Net cash provided by operating activities | 26,979 | 18,536 | 1,015 |
Cash Flows from Investing Activities | |||
Capital expenditures | (610) | (1,160) | (1,859) |
Business acquisitions | (14,154) | 0 | 0 |
Internal software development costs | (2,146) | (2,185) | (3,482) |
Restricted cash | 0 | (766) | 0 |
Other investing activities | 1,061 | (26) | 139 |
Net cash used in investing activities | (15,849) | (4,137) | (5,202) |
Cash Flows from Financing Activities | |||
Proceeds from exercise of common stock options | 11,028 | 0 | 26 |
Repayment of revolving loan facility | 0 | (15,000) | 0 |
Principal payments on acquisition-related notes payable | 0 | 0 | (41) |
Payment of withholding taxes related to release of restricted stock, net of share settlement | (6,487) | (1,018) | (2,482) |
Repurchases of common stock | (647) | (2,487) | 0 |
Net cash provided by (used in) financing activities | 3,894 | (18,505) | (2,497) |
Effect of exchange rate changes on cash and cash equivalents | 105 | (33) | (74) |
Net increase (decrease) in cash and cash equivalents | 15,129 | (4,139) | (6,758) |
Cash and cash equivalents at beginning of period | 49,571 | 53,710 | 60,468 |
Cash and cash equivalents at end of period | 64,700 | 49,571 | 53,710 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest | 0 | 295 | 643 |
Cash paid for income taxes | 245 | 390 | 863 |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Purchases of property and equipment included in accrued liabilities | 215 | 98 | 0 |
Retirement of treasury stock | $ (647) | $ (2,487) | $ 0 |
The Company
The Company | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 | |
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 2018, 2017 and 2016. 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 its 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 2018, 2017 and 2016, the Company had one client, The Progressive Corporation that accounted for 23%, 17% and 12% of net revenue. No other client accounted for 10% or more of net revenue in fiscal years 2018, 2017 and 2016. 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 two clients, The Progressive Corporation, that accounted for 13% and 14% of net accounts receivable as of June 30, 2018 and 2017, and Dream Center Education Holdings, that accounted for 13% and 0% of net accounts receivable as of June 30, 2018 and 2017. No other client accounted for 10% or more of net accounts receivable as of June 30, 2018. 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, 2018, 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 $2.0 million, $2.1 million and $3.5 million in fiscal years 2018, 2017 and 2016. 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 performs its annual goodwill impairment test on April 30 and conducts 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 considers 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. The Company had one reporting unit for purposes of allocating and testing goodwill for fiscal years 2018 and 2017. Based on the results of the qualitative assessment completed as of April 30, 2018 and 2017, 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. 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, 2018, 2017 and 2016, 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 Income (Loss) Comprehensive income (loss) consists of two components, net income (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 income (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. 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 2018, 2017 or 2016. 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 standard becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. The Company will adopt the new standard effective July 1, 2018 using the modified retrospective approach. The Company has evaluated the overall impact of the new standard on its consolidated financial statements, related disclosures and internal control over financial reporting and has not identified any provisions that are expected to have a material impact on how the Company recognizes revenue and related expenses. The Company is expecting to include additional financial statement disclosures upon the adoption. 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 and has not made any decisions with respect to the timing of adoption. 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 guidance became effective in the current fiscal year and did not 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 January 2017, the FASB issued a new accounting standard update, which revises the definition of a business and provides new guidance in evaluating when a set of transferred assets and activities is a business. The Company will adopt the new standard effective July 1, 2018, on a prospective basis and the adoption of this standard is not expected to have a material 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 adoption of this standard is not expected to have an impact on the Company’s consolidated financial statements. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 3. Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury stock method. The following table presents the calculation of basic and diluted net income (loss) per share: Fiscal Year Ended June 30, 2018 2017 2016 (In thousands, except per share data) Numerator: Basic and Diluted: Net income (loss) $ 15,930 $ (12,208 ) $ (19,420 ) Denominator: Basic: Weighted-average shares of common stock used in computing basic net income (loss) per share 46,417 45,594 45,197 Diluted: Weighted average shares of common stock used in computing basic net income (loss) per share 46,417 45,594 45,197 Weighted average effect of dilutive securities: Stock options 1,334 — — Restricted stock units 2,121 — — Weighted average shares of common stock used in computing diluted net income (loss) per share 49,872 45,594 45,197 Net income (loss) per share: Basic $ 0.34 $ (0.27 ) $ (0.43 ) Diluted (1) $ 0.32 $ (0.27 ) $ (0.43 ) Securities excluded from weighted-average shares used in computing diluted net income (loss) per share because the effect would have been anti-dilutive: (2) 1,129 7,060 5,331 (1) In fiscal 2017 and 2016, diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred as 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, Cash E
Fair Value Measurements, Cash Equivalents and Variable Interest Entities | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Cash Equivalents and Variable Interest Entities | 4. Fair Value Measurements, Cash Equivalents and Variable Interest Entities Fair Value 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, 2018 and 2017, the Company used Level 1 assumptions for its money market funds. Level 2 — Pricing inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of June 30, 2018 and 2017, the Company did not have any Level 2 financial assets or liabilities. Level 3 — Pricing inputs are generally unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. As of June 30, 2018 and 2017, the Company did not have any Level 3 financial assets or liabilities. 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. Cash Equivalents The Company held money market funds of $10.9 million as of June 30, 2018 and $10.3 million as of June 30, 2017 which are classified as cash equivalents. Variable Interest Entities A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of the VIE requires significant assumptions and judgments, including the identification of significant activities and an assessment of the Company’s ability to direct those activities. The Company has an equity interest in a privately held entity that is a VIE, of which the Company is not the primary beneficiary. Accordingly, the equity interest is recognized at cost. 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, in the fourth quarter of 2017, the Company recorded an impairment of $2.5 million in other income (expense), 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions In November 2017, the Company acquired certain assets relating to the auto insurance, home insurance and mortgage verticals of Katch, LLC, an online performance marketing company, for $14.0 million in cash to broaden its customer and publisher relationships. The acquisition was accounted for as a business combination. The results of the acquired assets of Katch, LLC have been included in the Company’s consolidated financial statements since the acquisition date. The Company allocated the purchase price to identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over the aggregate fair value of the identifiable intangible assets acquired was recorded as goodwill and is primarily attributable to synergies the Company expects to achieve related to the acquisition. Accounting guidance provides that the allocation of the purchase price may be modified for up to one year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. The goodwill is deductible for tax purposes. The following table summarizes the preliminary allocation of the purchase price and the estimated useful lives of the identifiable intangible assets acquired as of the date of the acquisition (in thousands): Estimated Fair Value Estimated Useful Life Customer/publisher/advertiser relationships $ 4,200 4-7 years Acquired technology and others 3,700 3 years Goodwill 6,100 Indefinite Total $ 14,000 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
Balance Sheet Components | 6. Balance Sheet Components Accounts Receivable, Net Accounts receivable, net was comprised of the following (in thousands): June 30, 2018 2017 Accounts receivable $ 70,317 $ 46,009 Less: Allowance for doubtful accounts (727 ) (547 ) Less: Allowance for sales returns (1,098 ) (1,403 ) Total $ 68,492 $ 44,059 Property and Equipment, Net Property and equipment, net was comprised of the following (in thousands): June 30, 2018 2017 Computer equipment $ 12,266 $ 12,581 Software 11,513 11,386 Furniture and fixtures 3,060 3,020 Leasehold improvements 1,937 1,917 Internal software development costs 33,654 31,605 Total property plant and equipment, gross 62,430 60,509 Less: Accumulated depreciation and amortization (58,219 ) (54,896 ) Total property plant and equipment, net $ 4,211 $ 5,613 Depreciation expense was $1.5 million, $2.3 million and $3.8 million for fiscal years 2018, 2017 and 2016. Amortization expense related to internal software development costs was $2.8 million, $2.9 million and $2.4 million for fiscal years 2018, 2017 and 2016. Prepaid Expenses and Other Assets Prepaid expenses and other assets were comprised of the following (in thousands): June 30, 2018 2017 Income tax receivable $ 909 $ 2,761 Prepaid expenses 3,030 3,051 Other assets 493 413 Total $ 4,432 $ 6,225 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, 2018, the Company had recorded $1.0 million within prepaid expenses and other assets and $6.3 million within other assets, noncurrent on the Company’s consolidated balance sheet. 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 in the Company’s consolidated balance sheet. Amortization expense was $1.0 million, $1.0 million and $0.7 million for fiscal years 2018, 2017 and 2016. Accrued liabilities Accrued liabilities were comprised of the following (in thousands): June 30, 2018 2017 Accrued media costs $ 25,612 $ 19,917 Accrued compensation and related expenses 5,332 1,936 Accrued professional service and other business expenses 3,867 4,370 Total $ 34,811 $ 26,223 |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | 7. Intangible Assets, Net and Goodwill Intangible assets, net consisted of the following (in thousands): June 30, 2018 June 30, 2017 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer/publisher/advertiser relationships $ 41,101 $ (37,286 ) $ 3,815 $ 36,908 $ (36,689 ) $ 219 Content 60,969 (60,930 ) 39 61,521 (60,629 ) 892 Website/trade/domain names 31,098 (29,369 ) 1,729 31,287 (28,723 ) 2,564 Acquired technology and others 38,900 (35,910 ) 2,990 36,733 (36,303 ) 430 Total $ 172,068 $ (163,495 ) $ 8,573 $ 166,449 $ (162,344 ) $ 4,105 Amortization of intangible assets was $3.5 million, $6.2 million and $8.9 million for fiscal years 2018, 2017 and 2016. Future amortization expense for the Company’s intangible assets as of June 30, 2018 was as follows (in thousands): Fiscal Year Ending June 30, Amortization 2019 $ 2,908 2020 2,812 2021 1,491 2022 533 2023 343 Thereafter 486 Total $ 8,573 The changes in the carrying amount of goodwill for fiscal years 2018 and 2017 were as follows (in thousands): Goodwill Balance at June 30, 2016 $ 56,118 Additions — Impairment — Balance at June 30, 2017 56,118 Additions 6,165 Impairment — Balance at June 30, 2018 $ 62,283 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The components of income (loss) before income taxes were as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 US $ 17,218 $ (12,286 ) $ (18,291 ) Foreign (714 ) (1,002 ) (995 ) Total $ 16,504 $ (13,288 ) $ (19,286 ) The components of the provision for (benefit from) income taxes were as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 Current Federal $ (2 ) $ (16 ) $ (131 ) State 479 (1,270 ) (23 ) Foreign 210 191 271 Total current provision for (benefit from) income taxes 687 (1,095 ) 117 Deferred Federal (113 ) 15 15 State — — — Foreign — — 2 Total deferred (benefit from) provision for income taxes (113 ) 15 17 Total provision for (benefit from) income taxes $ 574 $ (1,080 ) $ 134 The reconciliation between the statutory federal income tax and the Company’s effective tax rates as a percentage of income (loss) before income taxes was as follows: Fiscal Year Ended June 30, 2018 2017 2016 Federal tax rate 27.6 % 34.0 % 34.0 % States taxes, net of federal benefit (1.4 )% 14.5 % 7.7 % Foreign rate differential 0.3 % (0.3 )% (1.1 )% Stock-based compensation expense (20.8 )% (23.9 )% (15.7 )% Change in valuation allowance (151.3 )% (18.7 )% (25.2 )% Research and development credits (4.8 )% 2.5 % 2.7 % Federal tax rate change impact 146.3 % — — Other 7.6 % — (3.1 )% Effective income tax rate 3.5 % 8.1 % (0.7 )% The components of the long-term deferred tax assets and liabilities, net were as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 Noncurrent: Reserves and accruals $ 2,072 $ 2,198 Stock options 2,590 4,805 Intangible assets 22,716 41,639 Net operating loss 22,791 27,719 Fixed assets 188 194 Tax credits 6,320 4,488 Other 580 868 Total noncurrent deferred tax assets 57,257 81,911 Valuation allowance - Long-term (57,197 ) (81,964 ) Noncurrent deferred tax assets (liabilities), net $ 60 $ (53 ) 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, 2018, 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, 2018 and 2017, the Company had a federal operating loss carryforward of approximately $82.4 million and $69.5 million. As of June 30, 2018 and 2017, the Company’s state operating loss carryforward was approximately $47.1 million and $37.1 million. 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 Brazil was approximately $2.5 million and does not have an expiration date. The operating loss carryforward in the India jurisdiction was approximately $5.5 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 $3.1 million and $6.3 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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code effective January 1, 2018 and onwards, including, but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21%, implementation of a territorial tax system, imposing a one-time transition tax on deemed repatriated earnings of non-US subsidiaries, net operating loss deduction limitations, expensing for fixed assets, revenue recognition changes and 100% disallowance of entertainment expense. The Company continues to analyze the Tax Act and implement relevant changes in the accounting for income taxes. In addition on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 which provides guidance on accounting for the tax effects of the Tax Act. The guidance provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting. In accordance with the guidance, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting is complete. The Company has determined that the inclusion of the transition tax calculation requires more time to analyze and apply recent IRS guidance. The Company has recognized provisional tax impacts related to deemed repatriated earnings. The Company does not expect the one-time transition tax to have a material impact on the consolidated financial statements due to overall accumulated earnings deficit in the Company’s international subsidiaries for which the transition tax applies. The Company believes accounting for the change to the US statutory tax rate to its deferred tax balances is complete and appropriately reflected in the financial statements for the year ended June 30, 2018. In the current year the change to the corporate tax rate resulted in a reduction of the Company’s deferred tax assets by $24.2 million which is offset with a valuation allowance and is presented in the disclosures above. The Company is still within the measurement period as of June 30, 2018 and no further conclusions have been made. The ultimate impact of the Tax Act on the Company’s consolidated financial statements may differ from the provisional amounts, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued and actions the Company may take as a result of the Tax Act. A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 Balance at the beginning of the year $ 2,838 $ 3,175 $ 3,263 Gross increases - current period tax positions 429 295 362 Gross increases - prior period tax positions 70 51 38 Gross decreases - prior period tax positions — (429 ) — Reductions as a result of lapsed statute of limitations (81 ) (254 ) (488 ) Balance at the end of the year $ 3,256 $ 2,838 $ 3,175 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, 2018, the Company has accrued $1.1 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, 2018, unrecognized tax benefits of $1.1 million, if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease within the next 12 months. 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, 2018, the tax years 2013 through 2017 remain open in the U.S., the tax years 2012 through 2017 remain open in the various state jurisdictions, and the tax years 2014 through 2017 remain open in various foreign jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
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 2024. Rent expense for fiscal years 2018, 2017 and 2016 was $3.4 million, $3.4 million and $3.4 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, 2018 were as follows (in thousands): Operating Fiscal Year Ending June 30, Leases 2019 $ 2,149 2020 2,854 2021 3,593 2022 3,580 2023 3,368 Thereafter 1,348 Total $ 16,892 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. In April 2018, the Company amended the lease agreement. The extended lease term period begins on November 1, 2018 and expires on October 31, 2023. During the first year of the extended lease term, the monthly base rent will be abated for the first eight months and increases to $0.2 million for the remaining four months. During the second year of the extended lease term, the monthly base rent will be abated for the first four months, increase to $0.2 million for the fifth month, and increase to $0.3 million for the remaining seven months. Subsequently, after each 12-month anniversary, the monthly base rent will increase by approximately 3%. The Company has one remaining option to extend the term of the lease for an additional five years following October 31, 2023. 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, 2018 and June 30, 2017. 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, 2018 and 2017. Lending Commitments In the third quarter of fiscal 2018, the Company entered into an unsecured revolving promissory note as a lender, as part of a strategic partnership intended to increase the Company’s presence in the emerging technology career education market. The principal balance at any time cannot exceed $2.5 million and any outstanding principal balance bears interest at 6.00% payable monthly. Repayment of the principal balance can occur without premium or penalty in whole or in part at any time. In the event of an equity offering by the borrower, any outstanding principal balance may be converted to equity securities at the mutual agreement of the Company and borrower. The principal balance and any accrued interest is due on January 1, 2019. No amounts were outstanding as of June 30, 2018. 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2018 | |
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. Under this program, 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. In fiscal year 2018, the Company repurchased and retired 30,977 shares of its common stock at a weighted-average price of $3.99 per share, excluding a broker commission of $0.03 per share, at a total cost of $0.1 million. Repurchases under this program took place in the open market and were made under a Rule 10b5-1 plan. This program was completed in July 2017. In July 2017, the Board of Directors authorized a stock repurchase program to repurchase up to 905,000 outstanding shares of its common stock. In October 2017, the Board of Directors increased the number of outstanding shares that may be repurchased to 966,000 shares. Under this program, during fiscal year 2018, the Company repurchased and retired 62,364 shares of its common stock at a weighted-average price of $8.36 per share, excluding a broker commission of $0.03 per share, at a total cost of $0.5 million. Repurchases under this program took place in the open market and were made under a Rule 10b5-1 plan. 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 and in fiscal year 2018, the Company retired 93,341 shares of its common stock with a carrying value of $0.6 million. The Company’s |
Stock Benefit Plans
Stock Benefit Plans | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Benefit Plans | 11. Stock Benefit Plans Stock-Based Compensation In fiscal years 2018, 2017 and 2016, the Company recorded stock-based compensation expense of $10.2 million, $8.9 million and $11.0 million. There were no tax benefits realized in fiscal years 2018, 2017 and 2016 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. In fiscal year 2018, a portion of the RSUs granted to employees fully vest after one year of continuous service. An aggregate of 18,192,370, shares of the Company’s common stock were reserved for issuance under the 2010 Incentive Plan as of June 30, 2018, 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 13,924,924 shares available for issuance under the 2010 Incentive Plan as of June 30, 2018. 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 3,989,463 shares of the Company’s common stock were reserved for issuance under the Directors’ Plan as of June 30, 2018. 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 1,994,521 shares available for issuance under the Directors’ Plan as of June 30, 2018. 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 2018, 2017 and 2016 were as follows: Fiscal Year Ended June 30, 2018 2017 2016 Expected term (in years) 4.6 4.5 3.9 Expected volatility 48 % 45 % 43 % Expected dividend yield — — — Risk-free interest rate 1.9 % 1.3 % 1.0 % Grant date fair value $ 2.09 $ 1.41 $ 1.83 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 2018, 2017 and 2016 were as follows: Fiscal Year Ended June 30, 2018 2017 2016 Expected term (in years) 4.0 4.0 4.0 Expected volatility 50 % 45 % 47 % Expected dividend yield — — — Risk-free interest rate 2.4 % 1.1 % 1.3 % Grant date fair value $ 7.66 $ 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 2018 and 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price (In years) (In thousands) 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 Granted 802,080 4.98 Exercised (1,465,265 ) 7.59 Forfeited (6,700 ) 4.01 Expired (37,731 ) 11.73 Outstanding at June 30, 2018 3,513,963 $ 5.65 4.18 $ 24,989 Vested and expected-to-vest at June 30, 2018 (1) 3,368,259 $ 5.71 4.11 $ 23,779 Vested and exercisable at June 30, 2018 1,812,483 $ 6.98 2.82 $ 10,593 (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, 2018: Options Outstanding Options Exercisable Range or Exercise Prices Number of Shares Weighted Average Remaining Contractual Term Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price $3.40 - $3.40 50,000 5.59 $ 3.40 16,666 $ 3.40 $3.59 - $3.59 366,667 5.43 $ 3.59 131,771 $ 3.59 $3.63 - $3.63 818,365 5.08 $ 3.63 219,905 $ 3.63 $3.91 - $3.91 75,000 3.34 $ 3.91 69,791 $ 3.91 $4.01 - $4.01 635,896 6.07 $ 4.01 — $ — $4.31 - $5.65 356,993 3.10 $ 4.84 305,949 $ 4.84 $5.72 - $6.90 402,548 2.64 $ 6.20 399,907 $ 6.20 $7.01 - $9.55 506,039 3.30 $ 9.17 373,539 $ 9.31 $9.64 - $12.40 222,455 0.84 $ 11.05 214,955 $ 11.02 $15.60 - $15.60 80,000 1.55 $ 15.60 80,000 $ 15.60 $3.40 - $15.60 3,513,963 4.18 $ 5.65 1,812,483 $ 6.98 The following table summarizes the total intrinsic value, the cash received and the actual tax benefit of all options exercised in fiscal years 2018, 2017 and 2016 (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 Intrinsic value $ 6,440 $ — $ 1 Cash received 11,115 — 26 Tax benefit — — — As of June 30, 2018, there was $2.3 million of total unrecognized compensation expense related to unvested stock options which are expected to be recognized over a weighted-average period of 2.62 years. Service-Based Restricted Stock Unit Activity The following table summarizes the service-based RSU activity under the plans in fiscal years 2018 and 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) 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 Granted 1,622,672 4.63 Vested (1,408,386 ) 4.33 Forfeited (96,422 ) 4.57 Outstanding at June 30, 2018 2,667,527 $ 4.33 0.86 $ 33,878 As of June 30, 2018, there was $6.4 million of total unrecognized compensation expense related to service-based RSUs which are expected to be recognized over a weighted-average period of 1.75 years. Market-Based Restricted Stock Unit Activity The following table summarizes the market-based RSU activity under the 2010 Incentive Plan in fiscal years 2018 and 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) 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 Granted 68,840 $ 7.66 Vested (617,435 ) 4.75 Forfeited (46,426 ) 3.84 Outstanding at June 30, 2018 498,268 $ 4.89 0.96 $ 6,328 As of June 30, 2018, there was $0.6 million of total unrecognized compensation expense related to market-based RSUs which are expected to be recognized over a weighted average period of 0.96 years. At the time of vesting, a portion of service-based RSUs and market-based RSUs are withheld by the Company to provide for federal and state tax withholding obligations resulting from the release of the service-based RSUs and market-based RSUs. The total aggregate intrinsic value of service-based RSUs and market-based RSUs that vested and were issued was $19.0 million, $2.9 million and $6.9 million for the fiscal years 2018, 2017 and 2016. There were no tax benefits realized in fiscal 2018, 2017 and 2016 due to the Company’s full valuation allowance. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 Net revenue: United States $ 395,880 $ 292,370 $ 291,526 International 8,478 7,415 6,180 Total net revenue $ 404,358 $ 299,785 $ 297,706 June 30, June 30, 2018 2017 Property and equipment, net: United States $ 3,875 $ 5,116 International 336 497 Total property and equipment, net $ 4,211 $ 5,613 June 30, June 30, 2018 2017 Other intangible assets, net: United States $ 8,441 $ 4,007 International 132 98 Total other intangible assets, net $ 8,573 $ 4,105 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Jun. 30, 2018 | |
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 fiscal year 2017 (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. There were no restructuring charges for fiscal year 2018. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts The activity in the allowance for doubtful accounts, sales returns and the deferred tax asset valuation allowance are as follows (in thousands): Balance beginning of the year Charged to expenses/against revenue Write-offs net of recoveries Balance at the end of the year Allowance for doubtful accounts and sales returns Fiscal year 2016 $ 2,064 $ 789 $ (568 ) $ 2,285 Fiscal year 2017 $ 2,285 $ 291 $ (626 ) $ 1,950 Fiscal year 2018 $ 1,950 $ 525 $ (650 ) $ 1,825 Deferred tax asset valuation allowance Fiscal year 2016 $ 73,241 $ 6,627 $ — $ 79,868 Fiscal year 2017 $ 79,868 $ 2,096 $ — $ 81,964 Fiscal year 2018 $ 81,964 $ (24,767 ) $ — $ 57,197 Note: Additions to the allowance for doubtful accounts and the valuation allowance are charged to expense. Additions to the allowance for sales credits are charged against revenue. All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
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 2018, 2017 and 2016. 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 its 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 2018, 2017 and 2016, the Company had one client, The Progressive Corporation that accounted for 23%, 17% and 12% of net revenue. No other client accounted for 10% or more of net revenue in fiscal years 2018, 2017 and 2016. 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 two clients, The Progressive Corporation, that accounted for 13% and 14% of net accounts receivable as of June 30, 2018 and 2017, and Dream Center Education Holdings, that accounted for 13% and 0% of net accounts receivable as of June 30, 2018 and 2017. No other client accounted for 10% or more of net accounts receivable as of June 30, 2018. |
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, 2018, 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 $2.0 million, $2.1 million and $3.5 million in fiscal years 2018, 2017 and 2016. 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 performs its annual goodwill impairment test on April 30 and conducts 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 considers 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. The Company had one reporting unit for purposes of allocating and testing goodwill for fiscal years 2018 and 2017. Based on the results of the qualitative assessment completed as of April 30, 2018 and 2017, 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. |
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, 2018, 2017 and 2016, 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 Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (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 income (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. 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 2018, 2017 or 2016. |
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 standard becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. The Company will adopt the new standard effective July 1, 2018 using the modified retrospective approach. The Company has evaluated the overall impact of the new standard on its consolidated financial statements, related disclosures and internal control over financial reporting and has not identified any provisions that are expected to have a material impact on how the Company recognizes revenue and related expenses. The Company is expecting to include additional financial statement disclosures upon the adoption. 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 and has not made any decisions with respect to the timing of adoption. 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 guidance became effective in the current fiscal year and did not 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 January 2017, the FASB issued a new accounting standard update, which revises the definition of a business and provides new guidance in evaluating when a set of transferred assets and activities is a business. The Company will adopt the new standard effective July 1, 2018, on a prospective basis and the adoption of this standard is not expected to have a material 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 adoption of this standard is not expected to have an impact on the Company’s consolidated financial statements. |
Net Income (Loss) per Share | Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury stock method. |
Fair Value Measurements | Fair Value 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, 2018 and 2017, the Company used Level 1 assumptions for its money market funds. Level 2 — Pricing inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of June 30, 2018 and 2017, the Company did not have any Level 2 financial assets or liabilities. Level 3 — Pricing inputs are generally unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. As of June 30, 2018 and 2017, the Company did not have any Level 3 financial assets or liabilities. |
Cash Equivalents | Cash Equivalents The Company held money market funds of $10.9 million as of June 30, 2018 and $10.3 million as of June 30, 2017 which are classified as cash equivalents. |
Variable Interest Entities | Variable Interest Entities A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of the VIE requires significant assumptions and judgments, including the identification of significant activities and an assessment of the Company’s ability to direct those activities. The Company has an equity interest in a privately held entity that is a VIE, of which the Company is not the primary beneficiary. Accordingly, the equity interest is recognized at cost. 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, in the fourth quarter of 2017, the Company recorded an impairment of $2.5 million in other income (expense), 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. |
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 Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income (Loss) per Share | The following table presents the calculation of basic and diluted net income (loss) per share: Fiscal Year Ended June 30, 2018 2017 2016 (In thousands, except per share data) Numerator: Basic and Diluted: Net income (loss) $ 15,930 $ (12,208 ) $ (19,420 ) Denominator: Basic: Weighted-average shares of common stock used in computing basic net income (loss) per share 46,417 45,594 45,197 Diluted: Weighted average shares of common stock used in computing basic net income (loss) per share 46,417 45,594 45,197 Weighted average effect of dilutive securities: Stock options 1,334 — — Restricted stock units 2,121 — — Weighted average shares of common stock used in computing diluted net income (loss) per share 49,872 45,594 45,197 Net income (loss) per share: Basic $ 0.34 $ (0.27 ) $ (0.43 ) Diluted (1) $ 0.32 $ (0.27 ) $ (0.43 ) Securities excluded from weighted-average shares used in computing diluted net income (loss) per share because the effect would have been anti-dilutive: (2) 1,129 7,060 5,331 (1) In fiscal 2017 and 2016, diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred as 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price and Estimated Useful Lives of the Identifiable Intangible Assets Acquired | The following table summarizes the preliminary allocation of the purchase price and the estimated useful lives of the identifiable intangible assets acquired as of the date of the acquisition (in thousands): Estimated Fair Value Estimated Useful Life Customer/publisher/advertiser relationships $ 4,200 4-7 years Acquired technology and others 3,700 3 years Goodwill 6,100 Indefinite Total $ 14,000 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
Accounts Receivable, Net | Accounts receivable, net was comprised of the following (in thousands): June 30, 2018 2017 Accounts receivable $ 70,317 $ 46,009 Less: Allowance for doubtful accounts (727 ) (547 ) Less: Allowance for sales returns (1,098 ) (1,403 ) Total $ 68,492 $ 44,059 |
Property and Equipment, Net | Property and equipment, net was comprised of the following (in thousands): June 30, 2018 2017 Computer equipment $ 12,266 $ 12,581 Software 11,513 11,386 Furniture and fixtures 3,060 3,020 Leasehold improvements 1,937 1,917 Internal software development costs 33,654 31,605 Total property plant and equipment, gross 62,430 60,509 Less: Accumulated depreciation and amortization (58,219 ) (54,896 ) Total property plant and equipment, net $ 4,211 $ 5,613 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets were comprised of the following (in thousands): June 30, 2018 2017 Income tax receivable $ 909 $ 2,761 Prepaid expenses 3,030 3,051 Other assets 493 413 Total $ 4,432 $ 6,225 |
Accrued Liabilities | Accrued liabilities were comprised of the following (in thousands): June 30, 2018 2017 Accrued media costs $ 25,612 $ 19,917 Accrued compensation and related expenses 5,332 1,936 Accrued professional service and other business expenses 3,867 4,370 Total $ 34,811 $ 26,223 |
Intangible Assets, Net and Go28
Intangible Assets, Net and Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets, net consisted of the following (in thousands): June 30, 2018 June 30, 2017 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer/publisher/advertiser relationships $ 41,101 $ (37,286 ) $ 3,815 $ 36,908 $ (36,689 ) $ 219 Content 60,969 (60,930 ) 39 61,521 (60,629 ) 892 Website/trade/domain names 31,098 (29,369 ) 1,729 31,287 (28,723 ) 2,564 Acquired technology and others 38,900 (35,910 ) 2,990 36,733 (36,303 ) 430 Total $ 172,068 $ (163,495 ) $ 8,573 $ 166,449 $ (162,344 ) $ 4,105 |
Amortization Expense | Future amortization expense for the Company’s intangible assets as of June 30, 2018 was as follows (in thousands): Fiscal Year Ending June 30, Amortization 2019 $ 2,908 2020 2,812 2021 1,491 2022 533 2023 343 Thereafter 486 Total $ 8,573 |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for fiscal years 2018 and 2017 were as follows (in thousands): Goodwill Balance at June 30, 2016 $ 56,118 Additions — Impairment — Balance at June 30, 2017 56,118 Additions 6,165 Impairment — Balance at June 30, 2018 $ 62,283 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes were as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 US $ 17,218 $ (12,286 ) $ (18,291 ) Foreign (714 ) (1,002 ) (995 ) Total $ 16,504 $ (13,288 ) $ (19,286 ) |
Components of the Provision for (Benefit from) Income Taxes | The components of the provision for (benefit from) income taxes were as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 Current Federal $ (2 ) $ (16 ) $ (131 ) State 479 (1,270 ) (23 ) Foreign 210 191 271 Total current provision for (benefit from) income taxes 687 (1,095 ) 117 Deferred Federal (113 ) 15 15 State — — — Foreign — — 2 Total deferred (benefit from) provision for income taxes (113 ) 15 17 Total provision for (benefit from) income taxes $ 574 $ (1,080 ) $ 134 |
Reconciliation Between Statutory Federal Income Tax and Company's Effective Tax Rates as Percentage of Income (Loss) Before Income Taxes | The reconciliation between the statutory federal income tax and the Company’s effective tax rates as a percentage of income (loss) before income taxes was as follows: Fiscal Year Ended June 30, 2018 2017 2016 Federal tax rate 27.6 % 34.0 % 34.0 % States taxes, net of federal benefit (1.4 )% 14.5 % 7.7 % Foreign rate differential 0.3 % (0.3 )% (1.1 )% Stock-based compensation expense (20.8 )% (23.9 )% (15.7 )% Change in valuation allowance (151.3 )% (18.7 )% (25.2 )% Research and development credits (4.8 )% 2.5 % 2.7 % Federal tax rate change impact 146.3 % — — Other 7.6 % — (3.1 )% Effective income tax rate 3.5 % 8.1 % (0.7 )% |
Components of Long-Term Deferred Tax Assets and Liabilities, Net | The components of the long-term deferred tax assets and liabilities, net were as follows (in thousands): Fiscal Year Ended June 30, 2018 2017 Noncurrent: Reserves and accruals $ 2,072 $ 2,198 Stock options 2,590 4,805 Intangible assets 22,716 41,639 Net operating loss 22,791 27,719 Fixed assets 188 194 Tax credits 6,320 4,488 Other 580 868 Total noncurrent deferred tax assets 57,257 81,911 Valuation allowance - Long-term (57,197 ) (81,964 ) Noncurrent deferred tax assets (liabilities), net $ 60 $ (53 ) |
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, 2018 2017 2016 Balance at the beginning of the year $ 2,838 $ 3,175 $ 3,263 Gross increases - current period tax positions 429 295 362 Gross increases - prior period tax positions 70 51 38 Gross decreases - prior period tax positions — (429 ) — Reductions as a result of lapsed statute of limitations (81 ) (254 ) (488 ) Balance at the end of the year $ 3,256 $ 2,838 $ 3,175 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 were as follows (in thousands): Operating Fiscal Year Ending June 30, Leases 2019 $ 2,149 2020 2,854 2021 3,593 2022 3,580 2023 3,368 Thereafter 1,348 Total $ 16,892 |
Stock Benefit Plans (Tables)
Stock Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Stock Option Award Activity | The following table summarizes the stock option award activity under the plans in fiscal years 2018 and 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price (In years) (In thousands) 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 Granted 802,080 4.98 Exercised (1,465,265 ) 7.59 Forfeited (6,700 ) 4.01 Expired (37,731 ) 11.73 Outstanding at June 30, 2018 3,513,963 $ 5.65 4.18 $ 24,989 Vested and expected-to-vest at June 30, 2018 (1) 3,368,259 $ 5.71 4.11 $ 23,779 Vested and exercisable at June 30, 2018 1,812,483 $ 6.98 2.82 $ 10,593 (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, 2018: Options Outstanding Options Exercisable Range or Exercise Prices Number of Shares Weighted Average Remaining Contractual Term Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price $3.40 - $3.40 50,000 5.59 $ 3.40 16,666 $ 3.40 $3.59 - $3.59 366,667 5.43 $ 3.59 131,771 $ 3.59 $3.63 - $3.63 818,365 5.08 $ 3.63 219,905 $ 3.63 $3.91 - $3.91 75,000 3.34 $ 3.91 69,791 $ 3.91 $4.01 - $4.01 635,896 6.07 $ 4.01 — $ — $4.31 - $5.65 356,993 3.10 $ 4.84 305,949 $ 4.84 $5.72 - $6.90 402,548 2.64 $ 6.20 399,907 $ 6.20 $7.01 - $9.55 506,039 3.30 $ 9.17 373,539 $ 9.31 $9.64 - $12.40 222,455 0.84 $ 11.05 214,955 $ 11.02 $15.60 - $15.60 80,000 1.55 $ 15.60 80,000 $ 15.60 $3.40 - $15.60 3,513,963 4.18 $ 5.65 1,812,483 $ 6.98 |
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 2018, 2017 and 2016 (in thousands): Fiscal Year Ended June 30, 2018 2017 2016 Intrinsic value $ 6,440 $ — $ 1 Cash received 11,115 — 26 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 2018, 2017 and 2016 were as follows: Fiscal Year Ended June 30, 2018 2017 2016 Expected term (in years) 4.6 4.5 3.9 Expected volatility 48 % 45 % 43 % Expected dividend yield — — — Risk-free interest rate 1.9 % 1.3 % 1.0 % Grant date fair value $ 2.09 $ 1.41 $ 1.83 |
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 2018, 2017 and 2016 were as follows: Fiscal Year Ended June 30, 2018 2017 2016 Expected term (in years) 4.0 4.0 4.0 Expected volatility 50 % 45 % 47 % Expected dividend yield — — — Risk-free interest rate 2.4 % 1.1 % 1.3 % Grant date fair value $ 7.66 $ 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 2018 and 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) 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 Granted 68,840 $ 7.66 Vested (617,435 ) 4.75 Forfeited (46,426 ) 3.84 Outstanding at June 30, 2018 498,268 $ 4.89 0.96 $ 6,328 |
Service-based RSU [Member] | |
Schedule of RSU Activity | The following table summarizes the service-based RSU activity under the plans in fiscal years 2018 and 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Contractual Value Shares Fair Value (In years) (In thousands) 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 Granted 1,622,672 4.63 Vested (1,408,386 ) 4.33 Forfeited (96,422 ) 4.57 Outstanding at June 30, 2018 2,667,527 $ 4.33 0.86 $ 33,878 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 Net revenue: United States $ 395,880 $ 292,370 $ 291,526 International 8,478 7,415 6,180 Total net revenue $ 404,358 $ 299,785 $ 297,706 June 30, June 30, 2018 2017 Property and equipment, net: United States $ 3,875 $ 5,116 International 336 497 Total property and equipment, net $ 4,211 $ 5,613 June 30, June 30, 2018 2017 Other intangible assets, net: United States $ 8,441 $ 4,007 International 132 98 Total other intangible assets, net $ 8,573 $ 4,105 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Charges | The following table summarizes the restructuring charges for the fiscal year 2017 (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 Accoun34
Summary of Significant Accounting Policies - Additional Information (Detail) | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2016USD ($)Segment | Jun. 30, 2018USD ($)ClientSegment | Jun. 30, 2017USD ($)ClientSegment | Jun. 30, 2016USD ($)Client |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of other clients that accounted for 10% or more of net revenue | Client | 0 | 0 | 0 | ||||
Number of other clients that accounted for 10% or more of net accounts receivable | Client | 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 | $ | $ 2,000,000 | $ 2,100,000 | $ 3,500,000 | ||||
Number of reporting units | Segment | 1 | 1 | 1 | ||||
Impairment charges recorded | $ | $ 0 | $ 0 | $ 0 | $ 0 | |||
Impairment of long-lived assets | $ | $ 0 | $ 0 | $ 0 | ||||
Weighted-average useful life of intangible assets | 5 years 7 months 6 days | ||||||
Software Development [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of the assets | 2 years | ||||||
Customer Concentration Risk [Member] | Net revenue [Member] | The Progressive Corporation [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration risk percentage accounted by major clients | 23.00% | 17.00% | 12.00% | ||||
Number of clients that accounted for 10% or more of net revenue | Client | 1 | 1 | 1 | ||||
Customer Concentration Risk [Member] | Net accounts receivable [Member] | The Progressive Corporation [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration risk percentage accounted by major clients | 13.00% | 14.00% | |||||
Customer Concentration Risk [Member] | Net accounts receivable [Member] | Dream Center Education Holdings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration risk percentage accounted by major clients | 13.00% | 0.00% | |||||
Customer Concentration Risk [Member] | Net accounts receivable [Member] | Progressive Corporation and Dream Center Education Holdings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of clients that accounted for 10% or more of net accounts receivable | Client | 2 | 2 | |||||
Direct Marketing Services [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of revenue | 100.00% | 100.00% | 100.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Estimated Useful Lives of the Assets (Detail) | 12 Months Ended |
Jun. 30, 2018 | |
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 Income (Loss) per Share - C
Net Income (Loss) per Share - Calculation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Basic and Diluted: | ||||
Net income (loss) | $ 15,930 | $ (12,208) | $ (19,420) | |
Basic: | ||||
Weighted-average shares of common stock used in computing basic net income (loss) per share | 46,417 | 45,594 | 45,197 | |
Diluted: | ||||
Weighted-average shares of common stock used in computing basic net income (loss) per share | 46,417 | 45,594 | 45,197 | |
Weighted average effect of dilutive securities: | ||||
Weighted-average shares of common stock used in computing diluted net income (loss) per share | 49,872 | 45,594 | 45,197 | |
Net income (loss) per share: | ||||
Basic | $ 0.34 | $ (0.27) | $ (0.43) | |
Diluted | [1] | $ 0.32 | $ (0.27) | $ (0.43) |
Securities excluded from weighted-average shares used in computing diluted net income (loss) per share because the effect would have been anti-dilutive: | [2] | 1,129 | 7,060 | 5,331 |
Stock options [Member] | ||||
Weighted average effect of dilutive securities: | ||||
Weighted-average effect of dilutive securities | 1,334 | 0 | 0 | |
Restricted stock units [Member] | ||||
Weighted average effect of dilutive securities: | ||||
Weighted-average effect of dilutive securities | 2,121 | 0 | 0 | |
[1] | In fiscal 2017 and 2016, diluted EPS does not reflect any potential common stock relating to stock options or restricted stock units due to net losses incurred as 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, Cash37
Fair Value Measurements, Cash Equivalents and Variable Interest Entities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Money Market Funds and Variable Interest Entities [Line Items] | ||||
Impairment of investment | $ 0 | $ 2,500,000 | $ 0 | |
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 income (expense), 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 | $ 10,900,000 | $ 10,300,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | 1 Months Ended |
Nov. 30, 2017USD ($) | |
Katch, LLC [Member] | |
Business Acquisition [Line Items] | |
Payments for assets acquired | $ 14 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price and Estimated Useful Lives of the Identifiable Intangible Assets Acquired (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 5 years 7 months 6 days | |||
Goodwill | $ 62,283 | $ 56,118 | $ 56,118 | |
Katch, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 6,100 | |||
Total purchase price | 14,000 | |||
Katch, LLC [Member] | Customer/publisher/advertiser relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 4,200 | |||
Katch, LLC [Member] | Customer/publisher/advertiser relationships [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 4 years | |||
Katch, LLC [Member] | Customer/publisher/advertiser relationships [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 7 years | |||
Katch, LLC [Member] | Acquired technology and others [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 3,700 | |||
Estimated Useful Life | 3 years |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts Receivable Net Current [Abstract] | ||
Accounts receivable | $ 70,317 | $ 46,009 |
Less: Allowance for doubtful accounts | (727) | (547) |
Less: Allowance for sales returns | (1,098) | (1,403) |
Total | $ 68,492 | $ 44,059 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | $ 62,430 | $ 60,509 |
Less: Accumulated depreciation and amortization | (58,219) | (54,896) |
Total property plant and equipment, net | 4,211 | 5,613 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 12,266 | 12,581 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 11,513 | 11,386 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 3,060 | 3,020 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | 1,937 | 1,917 |
Internal software development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, gross | $ 33,654 | $ 31,605 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Balance Sheet Components [Line Items] | |||
Depreciation expense | $ 1.5 | $ 2.3 | $ 3.8 |
Amortization expense related to internal software development costs | 2.8 | 2.9 | $ 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 | 6.3 | 7.3 | |
Amortization expense | $ 1 | $ 1 | $ 0.7 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Assets Current (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Income tax receivable | $ 909 | $ 2,761 |
Prepaid expenses | 3,030 | 3,051 |
Other assets | 493 | 413 |
Total | $ 4,432 | $ 6,225 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Payables And Accruals [Abstract] | ||
Accrued media costs | $ 25,612 | $ 19,917 |
Accrued compensation and related expenses | 5,332 | 1,936 |
Accrued professional service and other business expenses | 3,867 | 4,370 |
Total | $ 34,811 | $ 26,223 |
Intangible Assets, Net and Go45
Intangible Assets, Net and Goodwill - Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 172,068 | $ 166,449 |
Accumulated Amortization | (163,495) | (162,344) |
Net Carrying Amount | 8,573 | 4,105 |
Customer/publisher/advertiser relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 41,101 | 36,908 |
Accumulated Amortization | (37,286) | (36,689) |
Net Carrying Amount | 3,815 | 219 |
Content [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 60,969 | 61,521 |
Accumulated Amortization | (60,930) | (60,629) |
Net Carrying Amount | 39 | 892 |
Website/trade/domain names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,098 | 31,287 |
Accumulated Amortization | (29,369) | (28,723) |
Net Carrying Amount | 1,729 | 2,564 |
Acquired technology and others [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 38,900 | 36,733 |
Accumulated Amortization | (35,910) | (36,303) |
Net Carrying Amount | $ 2,990 | $ 430 |
Intangible Assets, Net and Go46
Intangible Assets, Net and Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Finite Lived Intangible Assets Net [Abstract] | |||
Amortization of intangible assets | $ 3.5 | $ 6.2 | $ 8.9 |
Intangible Assets, Net and Go47
Intangible Assets, Net and Goodwill - Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2,019 | $ 2,908 | |
2,020 | 2,812 | |
2,021 | 1,491 | |
2,022 | 533 | |
2,023 | 343 | |
Thereafter | 486 | |
Net Carrying Amount | $ 8,573 | $ 4,105 |
Intangible Assets, Net and Go48
Intangible Assets, Net and Goodwill - Changes in Carrying Amount of Goodwill (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Beginning | $ 56,118,000 | $ 56,118,000 | ||
Additions | 6,165,000 | 0 | ||
Impairment | $ 0 | 0 | 0 | $ 0 |
Goodwill, Ending | $ 62,283,000 | $ 56,118,000 | $ 56,118,000 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
US | $ 17,218 | $ (12,286) | $ (18,291) |
Foreign | (714) | (1,002) | (995) |
Income (loss) before income taxes | $ 16,504 | $ (13,288) | $ (19,286) |
Income Taxes - Components of th
Income Taxes - Components of the Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current | |||
Federal | $ (2) | $ (16) | $ (131) |
State | 479 | (1,270) | (23) |
Foreign | 210 | 191 | 271 |
Total current provision for (benefit from) income taxes | 687 | (1,095) | 117 |
Deferred | |||
Federal | (113) | 15 | 15 |
State | 0 | 0 | 0 |
Foreign | 0 | 0 | 2 |
Total deferred (benefit from) provision for income taxes | (113) | 15 | 17 |
Total provision for (benefit from) income taxes | $ 574 | $ (1,080) | $ 134 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Statutory Federal Income Tax and Company's Effective Tax Rates as Percentage of Income (Loss) Before Income Taxes (Detail) | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Income Tax Disclosure [Abstract] | |||||
Federal tax rate | 35.00% | 21.00% | 27.60% | 34.00% | 34.00% |
States taxes, net of federal benefit | (1.40%) | 14.50% | 7.70% | ||
Foreign rate differential | 0.30% | (0.30%) | (1.10%) | ||
Stock-based compensation expense | (20.80%) | (23.90%) | (15.70%) | ||
Change in valuation allowance | (151.30%) | (18.70%) | (25.20%) | ||
Research and development credits | (4.80%) | 2.50% | 2.70% | ||
Federal tax rate change impact | 146.30% | 0.00% | 0.00% | ||
Other | 7.60% | 0.00% | (3.10%) | ||
Effective income tax rate | 3.50% | 8.10% | (0.70%) |
Income Taxes - Components of Lo
Income Taxes - Components of Long-Term Deferred Tax Assets and Liabilities, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Noncurrent: | ||
Reserves and accruals | $ 2,072 | $ 2,198 |
Stock options | 2,590 | 4,805 |
Intangible assets | 22,716 | 41,639 |
Net operating loss | 22,791 | 27,719 |
Fixed assets | 188 | 194 |
Tax credits | 6,320 | 4,488 |
Other | 580 | 868 |
Total noncurrent deferred tax assets | 57,257 | 81,911 |
Valuation allowance - Long-term | (57,197) | (81,964) |
Noncurrent deferred tax assets, net | $ 60 | |
Noncurrent deferred tax (liabilities), net | $ (53) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Income Tax Contingency [Line Items] | |||||
Operating loss carry-forwards | $ 22,791 | $ 22,791 | $ 27,719 | ||
U.S. federal corporate tax rate | 35.00% | 21.00% | 27.60% | 34.00% | 34.00% |
Percentage of disallowance of entertainment expense | 100.00% | ||||
Change to corporate tax rate resulted in reduction of deferred tax assets | $ 24,200 | ||||
Interest and penalties related to the unrecognized tax benefits | $ 1,100 | ||||
Unrecognized tax benefits that if recognized would affect the effective tax rate | 1,100 | 1,100 | |||
Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carry-forwards | 82,400 | $ 82,400 | $ 69,500 | ||
Operating loss carry-forwards, expire date | Jun. 30, 2035 | ||||
Research and development carry-forwards | 3,100 | $ 3,100 | |||
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 | 2,017 | ||||
State [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carry-forwards | 47,100 | $ 47,100 | $ 37,100 | ||
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 | 2,017 | ||||
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 | 2,017 | ||||
Brazil [Member] | International [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carry-forwards | 2,500 | $ 2,500 | |||
India [Member] | International [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carry-forwards | 5,500 | $ 5,500 | |||
Operating loss carry-forwards, expire date | Jun. 30, 2021 | ||||
California [Member] | State [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Research and development carry-forwards | $ 6,300 | $ 6,300 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 2,838 | $ 3,175 | $ 3,263 |
Gross increases - current period tax positions | 429 | 295 | 362 |
Gross increases - prior period tax positions | 70 | 51 | 38 |
Gross decreases - prior period tax positions | 0 | (429) | 0 |
Reductions as a result of lapsed statute of limitations | (81) | (254) | (488) |
Unrecognized Tax Benefits, Ending Balance | $ 3,256 | $ 2,838 | $ 3,175 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2018USD ($)Lease | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($)Lease | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Commitments And Contingencies [Line Items] | |||||
Rent expense for office space | $ 3,400,000 | $ 3,400,000 | $ 3,400,000 | ||
Leases expiration year | 2,024 | ||||
Period of extended lease term | 5 years | 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% | 3.00% | |||
Lease term began | Nov. 1, 2018 | Nov. 1, 2010 | |||
Lease term expires | Oct. 31, 2023 | Oct. 31, 2018 | |||
Number of times lease term can be extended | Lease | 1 | 2 | |||
First year of extended lease term, monthly base rent for remaining four months | $ 200,000 | ||||
Second year of extended lease term, monthly base rent for fifth month | 200,000 | ||||
Second year of extended lease term, monthly base rent for remaining seven months | $ 300,000 | ||||
Estimated fair value of indemnification agreements | $ 0 | 0 | |||
Estimated fair value of indemnity provisions | 0 | $ 0 | |||
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 | ||||
Unsecured Revolving Promissory Note [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Promissory note, principal amount | $ 2,500,000 | ||||
Promissory note, interest rate percentage | 6.00% | ||||
Investment, frequency of periodic interest receipts | Monthly | ||||
Promissory note, outstanding amount | $ 0 |
Commitments and Contingencies56
Commitments and Contingencies - Future Annual Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 2,149 |
2,020 | 2,854 |
2,021 | 3,593 |
2,022 | 3,580 |
2,023 | 3,368 |
Thereafter | 1,348 |
Total | $ 16,892 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 31, 2017 | Jul. 31, 2017 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of outstanding shares authorized to repurchase | 750,000 | 966,000 | 905,000 | |||
Stock repurchase program, value of shares repurchased | $ 647 | $ 2,487 | ||||
Retirement of treasury stock, Shares | 93,341 | 719,023 | ||||
Treasury stock retired, carrying value | $ 647 | $ 2,487 | $ 0 | |||
November 2016 Stock Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of shares repurchased | 719,023 | |||||
Stock repurchase program, number of shares repurchased and retired | 30,977 | |||||
Stock repurchase program, weighted average price | $ 3.99 | $ 3.43 | ||||
Broker commission, per share | $ 0.03 | $ 0.03 | ||||
Stock repurchase program, value of shares repurchased | $ 100 | $ 2,500 | ||||
Stock repurchase program, completion date | 2017-07 | |||||
July 2017 Stock Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of shares repurchased and retired | 62,364 | |||||
Stock repurchase program, weighted average price | $ 8.36 | |||||
Broker commission, per share | $ 0.03 | |||||
Stock repurchase program, value of shares repurchased | $ 500 |
Stock Benefit Plans - Additiona
Stock Benefit Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2009 | Jun. 30, 2018 | 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 | $ 10,182,000 | $ 8,898,000 | $ 10,968,000 | |||
Tax benefits realized | 0 | 0 | 0 | |||
Total unrecognized compensation expense related to stock options | $ 2,300,000 | |||||
Unvested stock options weighted average period (in years) | 2 years 7 months 13 days | |||||
Service-based RSUs weighted average period (in years) | 1 year 9 months | |||||
Market-based RSUs weighted average period (in years) | 11 months 15 days | |||||
Tax benefits realized due to full valuation allowance | $ 0 | 0 | 0 | |||
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 | 18,192,370 | |||||
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 | 13,924,924 | |||||
Directors' Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for issuance | 3,989,463 | |||||
Shares available for issuance | 1,994,521 | |||||
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 | 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 | |||||
Restricted stock units [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% | |||||
Restricted stock units [Member] | Directors' Plan [Member] | Annual Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | 1 year | ||||
Restricted stock units [Member] | Directors' Plan [Member] | Initial Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | 4 years | ||||
Service-based RSU [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation expense | $ 6,400,000 | |||||
Market-based RSUs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation expense | 600,000 | |||||
Service-based RSUs and Market-based RSUs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total aggregate intrinsic value vested and issued | $ 19,000,000 | $ 2,900,000 | $ 6,900,000 |
Stock Benefit Plans - Schedule
Stock Benefit Plans - Schedule of Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 7 months 6 days | 4 years 6 months | 3 years 10 months 24 days |
Expected volatility | 48.00% | 45.00% | 43.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.90% | 1.30% | 1.00% |
Grant date fair value | $ 2.09 | $ 1.41 | $ 1.83 |
Market-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years | 4 years | 4 years |
Expected volatility | 50.00% | 45.00% | 47.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.40% | 1.10% | 1.30% |
Grant date fair value | $ 7.66 | $ 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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning balance, Shares | 4,221,579 | 4,307,248 | |
Granted, Shares | 802,080 | 1,767,018 | |
Exercised, Shares | (1,465,265) | 0 | |
Forfeited, Shares | (6,700) | (137,925) | |
Expired, Shares | (37,731) | (1,714,762) | |
Ending balance, Shares | 3,513,963 | 4,221,579 | 4,307,248 |
Vested and expected-to-vest at June 30, 2018, Shares | 3,368,259 | ||
Vested and exercisable at June 30, 2018, Shares | 1,812,483 | ||
Beginning balance, Weighted Average Exercise Price | $ 6.50 | $ 9.78 | |
Granted, Weighted Average Exercise Price | 4.98 | 3.62 | |
Exercised, Weighted Average Exercise Price | 7.59 | 0 | |
Forfeited, Weighted Average Exercise Price | 4.01 | 4.31 | |
Expired, Weighted Average Exercise Price | 11.73 | 12.15 | |
Ending balance, Weighted Average Exercise Price | 5.65 | $ 6.50 | $ 9.78 |
Vested and expected-to-vest at June 30, 2018, Weighted Average Exercise Price | 5.71 | ||
Vested and exercisable at June 30, 2018, Weighted Average Exercise Price | $ 6.98 | ||
Weighted Average Remaining Contractual Life (In years) | 4 years 2 months 4 days | 4 years 2 months 1 day | 2 years 8 months 1 day |
Vested and expected-to-vest at June 30, 2018, Weighted Average Remaining Contractual Life (In years) | 4 years 1 month 9 days | ||
Vested and exercisable at June 30, 2018, Weighted Average Remaining Contractual Life (In years) | 2 years 9 months 25 days | ||
Aggregate Intrinsic Value | $ 24,989 | $ 996 | $ 15 |
Vested and expected-to-vest at June 30, 2018, Aggregate Intrinsic Value | 23,779 | ||
Vested and exercisable at June 30, 2018, Aggregate Intrinsic Value | $ 10,593 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number of Shares | 3,513,963 | 4,221,579 | 4,307,248 |
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 4 days | 4 years 2 months 1 day | 2 years 8 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $ 5.65 | $ 6.50 | $ 9.78 |
$3.40 - $3.40 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 3.40 | ||
Weighted Average Exercise Price, Upper | $ 3.40 | ||
Options Outstanding, Number of Shares | 50,000 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 5 years 7 months 2 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 3.40 | ||
Options Exercisable, Number of Shares | 16,666 | ||
Options Exercisable, Weighted Average Exercise Price | $ 3.40 | ||
$3.59 - $3.59 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 3.59 | ||
Weighted Average Exercise Price, Upper | $ 3.59 | ||
Options Outstanding, Number of Shares | 366,667 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 5 years 5 months 4 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 3.59 | ||
Options Exercisable, Number of Shares | 131,771 | ||
Options Exercisable, Weighted Average Exercise Price | $ 3.59 | ||
$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 | 818,365 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 5 years 29 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 3.63 | ||
Options Exercisable, Number of Shares | 219,905 | ||
Options Exercisable, Weighted Average Exercise Price | $ 3.63 | ||
$3.91 - $3.91 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 3.91 | ||
Weighted Average Exercise Price, Upper | $ 3.91 | ||
Options Outstanding, Number of Shares | 75,000 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 4 months 2 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 3.91 | ||
Options Exercisable, Number of Shares | 69,791 | ||
Options Exercisable, Weighted Average Exercise Price | $ 3.91 | ||
$4.01 - $4.01 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 4.01 | ||
Weighted Average Exercise Price, Upper | $ 4.01 | ||
Options Outstanding, Number of Shares | 635,896 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 25 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 4.01 | ||
Options Exercisable, Number of Shares | 0 | ||
Options Exercisable, Weighted Average Exercise Price | $ 0 | ||
$4.31- $5.65 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 4.31 | ||
Weighted Average Exercise Price, Upper | $ 5.65 | ||
Options Outstanding, Number of Shares | 356,993 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 1 month 6 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 4.84 | ||
Options Exercisable, Number of Shares | 305,949 | ||
Options Exercisable, Weighted Average Exercise Price | $ 4.84 | ||
$5.72 - $6.90 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 5.72 | ||
Weighted Average Exercise Price, Upper | $ 6.90 | ||
Options Outstanding, Number of Shares | 402,548 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 20 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 6.20 | ||
Options Exercisable, Number of Shares | 399,907 | ||
Options Exercisable, Weighted Average Exercise Price | $ 6.20 | ||
$7.01 - $9.55 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 7.01 | ||
Weighted Average Exercise Price, Upper | $ 9.55 | ||
Options Outstanding, Number of Shares | 506,039 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 3 months 18 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 9.17 | ||
Options Exercisable, Number of Shares | 373,539 | ||
Options Exercisable, Weighted Average Exercise Price | $ 9.31 | ||
$9.64 - $12.40 [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 | $ 12.40 | ||
Options Outstanding, Number of Shares | 222,455 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 10 months 2 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 11.05 | ||
Options Exercisable, Number of Shares | 214,955 | ||
Options Exercisable, Weighted Average Exercise Price | $ 11.02 | ||
$15.60 - $15.60 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 15.60 | ||
Weighted Average Exercise Price, Upper | $ 15.60 | ||
Options Outstanding, Number of Shares | 80,000 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 6 months 18 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 15.60 | ||
Options Exercisable, Number of Shares | 80,000 | ||
Options Exercisable, Weighted Average Exercise Price | $ 15.60 | ||
$3.40 - $15.60 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Weighted Average Exercise Price, Lower | 3.40 | ||
Weighted Average Exercise Price, Upper | $ 15.60 | ||
Options Outstanding, Number of Shares | 3,513,963 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 4 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 5.65 | ||
Options Exercisable, Number of Shares | 1,812,483 | ||
Options Exercisable, Weighted Average Exercise Price | $ 6.98 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value | $ 6,440 | $ 0 | $ 1 |
Cash received | 11,115 | 0 | 26 |
Tax benefit | $ 0 | $ 0 | $ 0 |
Stock Benefit Plans - Schedul63
Stock Benefit Plans - Schedule of RSU Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Service-based RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Shares | 2,549,663 | 1,911,909 | |
Granted, Shares | 1,622,672 | 1,904,506 | |
Vested, Shares | (1,408,386) | (907,288) | |
Forfeited, Shares | (96,422) | (359,464) | |
Ending balance, Shares | 2,667,527 | 2,549,663 | 1,911,909 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 4.12 | $ 5.79 | |
Granted, Weighted Average Grant Date Fair Value | 4.63 | 3.55 | |
Vested, Weighted Average Grant Date Fair Value | 4.33 | 6.10 | |
Forfeited, Weighted Average Grant Date Fair Value | 4.57 | 4.90 | |
Ending balance, Weighted Average Grant Date Fair Value | $ 4.33 | $ 4.12 | $ 5.79 |
Weighted Average Remaining Contractual Life (In years) | 10 months 9 days | 1 year 1 month 9 days | 1 year 3 months 29 days |
Aggregate Intrinsic Value, Outstanding | $ 33,878 | $ 10,632 | $ 6,691 |
Market-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Shares | 1,093,289 | 1,005,602 | |
Granted, Shares | 68,840 | 312,660 | |
Vested, Shares | (617,435) | 0 | |
Forfeited, Shares | (46,426) | (224,973) | |
Ending balance, Shares | 498,268 | 1,093,289 | 1,005,602 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 4.57 | $ 5.03 | |
Granted, Weighted Average Grant Date Fair Value | 7.66 | 3.01 | $ 5.04 |
Vested, Weighted Average Grant Date Fair Value | 4.75 | 0 | |
Forfeited, Weighted Average Grant Date Fair Value | 3.84 | 4.20 | |
Ending balance, Weighted Average Grant Date Fair Value | $ 4.89 | $ 4.57 | $ 5.03 |
Weighted Average Remaining Contractual Life (In years) | 11 months 15 days | 1 year 2 months 19 days | 1 year 4 months 9 days |
Aggregate Intrinsic Value, Outstanding | $ 6,328 | $ 4,559 | $ 3,570 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2018Segment | |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net revenue: | |||
Total net revenue | $ 404,358 | $ 299,785 | $ 297,706 |
Property and equipment, net: | |||
Total property and equipment, net | 4,211 | 5,613 | |
Other intangible assets, net: | |||
Total other intangible assets, net | 8,573 | 4,105 | |
United States [Member] | |||
Net revenue: | |||
Total net revenue | 395,880 | 292,370 | 291,526 |
Property and equipment, net: | |||
Total property and equipment, net | 3,875 | 5,116 | |
Other intangible assets, net: | |||
Total other intangible assets, net | 8,441 | 4,007 | |
International [Member] | |||
Net revenue: | |||
Total net revenue | 8,478 | 7,415 | $ 6,180 |
Property and equipment, net: | |||
Total property and equipment, net | 336 | 497 | |
Other intangible assets, net: | |||
Total other intangible assets, net | $ 132 | $ 98 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Restructuring And Related Activities [Abstract] | ||||
Restructuring inception year and month | 2016-11 | |||
Restructuring charges | [1] | $ 0 | $ 2,441,000 | $ 0 |
[1] | Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $3,982 $3,109 $3,780 Product development 1,949 1,834 2,340 Sales and marketing 1,222 1,154 1,825 General and administrative 3,029 2,759 3,023 Restructuring charges — 42 — |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Restructuring Charges (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Restructuring And Related Activities [Abstract] | ||||
Employee severance and benefits | $ 2,399,000 | |||
Non-cash employee severance and benefits - stock-based compensation | 42,000 | |||
Total restructuring charges | [1] | $ 0 | $ 2,441,000 | $ 0 |
[1] | Cost of revenue and operating expenses include stock-based compensation expense as follows: Cost of revenue $3,982 $3,109 $3,780 Product development 1,949 1,834 2,340 Sales and marketing 1,222 1,154 1,825 General and administrative 3,029 2,759 3,023 Restructuring charges — 42 — |
Schedule II - Valuation and Q68
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for doubtful accounts and sales returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at the beginning of the year | $ 1,950 | $ 2,285 | $ 2,064 |
Charged to expenses/against revenue | 525 | 291 | 789 |
Write-offs net of recoveries | (650) | (626) | (568) |
Balance at the end of the year | 1,825 | 1,950 | 2,285 |
Deferred tax asset valuation allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at the beginning of the year | 81,964 | 79,868 | 73,241 |
Charged to expenses/against revenue | (24,767) | 2,096 | 6,627 |
Write-offs net of recoveries | 0 | 0 | 0 |
Balance at the end of the year | $ 57,197 | $ 81,964 | $ 79,868 |