Synacor 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	8-May-15
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	SYNC
Entity Registrant Name	Synacor, Inc.
Entity Central Index Key	1408278
Current Fiscal Year End Date	-19
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		27,728,568

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets - Unaudited (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
CURRENT ASSETS:
Cash and cash equivalents	$26,750	$25,600
Accounts receivable, net	19,276	20,479
Preferred expenses and other current assets	2,315	2,292
Total current assets	48,341	48,371
PROPERTY AND EQUIPMENT, NET	14,528	15,128
OTHER LONG-TERM ASSETS	74	101
GOODWILL	1,565	1,565
INVESTMENTS	1,041	1,073
TOTAL ASSETS	65,549	66,238
CURRENT LIABILITIES:
Accounts payable	13,490	12,545
Accrued expenses and other current liabilities	7,150	8,403
Current portion of capital lease obligations	1,101	1,150
Total current liabilities	21,741	22,098
LONG-TERM PORTION OF CAPITAL LEASE OBLIGATION	1,436	1,383
OTHER LONG-TERM LIABILITIES	227	275
TOTAL LIABILITIES	23,404	23,756
Commitments and Contingencies (Note 6)
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value - 100,000,000 authorized, 27,684,598 issued and 27,365,098 shares outstanding at December 31, 2014 and 28,011,390 issued and 27,432,463 outstanding at March 31, 2015	279	279
Preferred stock, $0.01 par value-10,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 and March 31, 2015
Treasury stock, at cost, 553,144 shares at December 31, 2014 and 578,927 shares at March 31, 2015	-1,197	-1,142
Additional paid-in capital	106,761	105,961
Accumulated deficit	-63,709	-62,636
Accumulated other comprehensive income	11	20
Total stockholders' equity	42,145	42,482
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$65,549	$66,238

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	28,011,390	27,944,853
Common stock, shares outstanding	27,432,463	27,391,709
Preferred stock, par value	$0.01	$0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	578,927	553,144

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations - Unaudited (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
REVENUE	$26,730	$25,248
COSTS AND OPERATING EXPENSES:
Cost of revenue (exclusive of depreciation shown separately below)	14,403	13,876
Technology & Development (exclusive of depreciation shown separately below)	4,866	7,492
Sales and marketing	3,562	2,137
General and administrative (exclusive of depreciation shown separately below)	3,374	3,099
Depreciation	1,496	1,058
Total costs and operating expenses	27,701	27,662
LOSS FROM OPERATIONS	-971	-2,414
OTHER INCOME (EXPENSE)	-16	8
INTEREST EXPENSE	-50	-88
LOSS BEFORE INCOME TAXES AND EQUITY INTEREST	-1,037	-2,494
(BENEFIT) PROVISION FOR INCOME TAXES	4	-684
LOSS ON EQUITY INTEREST	-32	-246
NET LOSS	($1,073)	($2,056)
NET LOSS PER SHARE:
Basic	($0.04)	($0.07)
Diluted	($0.04)	($0.07)
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET LOSS PER SHARE:
Basic	27,407,147	27,434,374
Diluted	27,407,147	27,434,374

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss - Unaudited (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	($1,073)	($2,056)
Other comprehensive income:
Change in foreign currency translation adjustment	9	13
Comprehensive income (loss)	($1,064)	($2,043)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows - Unaudited (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($1,073)	($2,056)
Adjustments to reconcile net loss to net cash provided (used) in operating activities:
Depreciation	1,496	1,058
Stock-based compensation expense	742	681
Provision for deferred income taxes		-709
Loss in equity investment	32	246
Change in assets and liabilities net of effect of acquisition:
Accounts receivable, net	1,203	-25
Prepaid expenses and other current assets	-23	-577
Other long-term assets	27	101
Accounts payable	995	1,292
Accrued expenses and other current liabilities	-1,186	-979
Other long-term liabilities	-48	-198
Net cash provided (used) in operating activities	2,165	-1,166
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	-600	-1,519
Investment in equity interest		-245
Net cash used in investing activities	-600	-1,764
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on capital lease obligations	-392	-485
Proceeds from exercise of common stock options	5	26
Purchase of treasury stock		-56
Net cash used in financing activities	-387	-515
Effect of exchange rate changes on cash and cash equivalents	-28	8
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,150	-3,437
CASH AND CASH EQUIVALENTS - Beginning of Period	25,600	36,397
CASH AND CASH EQUIVALENTS - End of Period	26,750	32,960
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	50	98
Cash paid for income taxes	30
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Property, equipment and service contracts financed under capital lease obligations	396	413
Accrued property and equipment expenditures		149
Treasury stock received to satisfy minimum tax withholding liabilities	$71

The_Company_and_Summary_of_Sig

The Company and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	1. The Company and Summary of Significant Accounting Policies
	Synacor, Inc., together with its consolidated subsidiaries, Synacor Canada, Inc. and NTV Internet Holdings, LLC, (collectively, the “Company” or “Synacor”), is the trusted technology development, multiplatform services and revenue partner for video, Internet and communications providers, and device manufacturers. Synacor delivers modern, multiscreen experiences and advertising to consumers that require scale, actionable data and sophisticated implementation.
	Basis of Presentation — The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise have the power to control, are accounted for using the equity method and are included as investments in equity interest on the condensed consolidated balance sheets. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the interim unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position for the periods presented. These interim unaudited condensed consolidated financial statements are not necessarily indicative of the results expected for the full fiscal year or for any subsequent period and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (as amended).
	Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts.
	Concentrations of Risk — As of December 31, 2014 and March 31, 2015, and for the three months ended March 31, 2014 and 2015, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:
			Accounts Receivable
			December 31,		March 31,
			2014		2015
	Google			23%		21%
	Digital Advertising Partner			11%		12%
	Portal Customer (1)			12%		N/A
	Note:
	-1	As of March 31, 2015, accounts receivable for Portal Customer was less than 10%.
			Revenue
			Three Months Ended
			March 31,
			2014		2015
	Google			51%		36%
	For the three months ended March 31, 2014 and 2015, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue. The costs represent revenue share paid to customers for their supply of Internet traffic on the Company’s start experiences:
			Cost of Revenue
			Three Months Ended
			March 31,
			2014		2015
	Customer A			23%		24	%
	Customer B			15%		10	%
	Customer C			11%		10	%
	Customer D (1)			10%		N/A
	Note:
		-1	For the three months ended March 31, 2015, the cost of revenue-share payments received by Customer D was less than 10%.
	Rights Plan — On July 14, 2014 the board of directors declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of the Company’s common stock and adopted a stockholder rights plan (the “Rights Plan”). The Rights were issued July 14, 2014 to the stockholders of record at the close of business on that date. Each Right allows its holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock (a “ Series A Junior Preferred Share”) for $10.00 per share (the “Exercise Price”), if the Rights become exercisable. This portion of a Series A Junior Preferred Share will give the stockholder approximately the same dividend, voting, and liquidation rights as would one share of common stock. Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights. On July 14, 2014, in conjunction with the adoption of the Rights Plan, the Company designated 2,000,000 shares of its Preferred Stock as Series A Junior Participating Preferred Stock.
	The Rights will not be exercisable until 10 days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 10% or more of the Company’s outstanding common stock (the “Distribution Date”). If a person or group becomes an Acquiring Person, each Right will entitle its holder (other than such Acquiring Person) to purchase for $10.00 per share, a number of shares of the Company’s common stock having a market value of twice such price based on the market price of the common stock prior to such acquisition. Additionally, if the Company is acquired in a merger or similar transaction after the Distribution Date, each Right will entitle its holder (other than such Acquiring Person) to purchase for $10.00 per share, a number of shares of the acquiring corporation with a market value of $20.00 per share based on the market price of the acquiring corporation’s stock, prior to such merger. In addition, at any time after a person or group becomes an Acquiring Person, but before such Acquiring Person or group owns 50% or more of the Company’s common stock, the board of directors may exchange one share of the Company’s common stock for each outstanding Right (other than Rights owned by such Acquiring Person, which would have become void). An Acquiring Person will not be entitled to exercise the Rights.
	On April 20, 2015, The Company’s stockholders ratified the Rights Plan. It will expire on July 14, 2017.

Investments_and_Fair_Value_Mea

Investments and Fair Value Measurements	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Investments and Fair Value Measurements	2. Investments and Fair Value Measurements
	In July 2013, the Company made a $1.0 million investment (in the form of a convertible promissory) in a privately held Delaware corporation called Blazer and Flip Flops, Inc., or B&FF (doing business as The Experience Engine). In March 2015, the note was converted into preferred stock of B&FF and is accounted for as a cost method investment. B&FF is a professional services company whose principals have experience integrating its customers’ systems with their consumers’ devices, including smartphones and tablets.
	The investment in B&FF is considered an available-for-sale security and is reported on the Company’s condensed consolidated balance sheets in investments.
	The provisions of the FASB ASC 820, Fair Value Measurements and Disclosures, establish a framework for measuring the fair value in accordance with U.S. GAAP and establish a hierarchy that categorizes and prioritizes the sources to be used to estimate fair value as follows:
	Level 1—Level 1 inputs are defined as observable inputs such as quoted prices in active markets.
	Level 2—Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
	Level 3—Level 3 inputs are unobservable inputs that reflect the Company’s determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including the Company’s own data.
	The Company classifies its investment in B&FF within Level 3 because it is valued using unobservable inputs. As of March 31, 2015, there have been no other than temporary impairments.

Property_and_EquipmentNet

Property and Equipment-Net	3 Months Ended
	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment-Net	3. Property and Equipment—Net
	Property and equipment, net consisted of the following:
			December 31,			March 31,
			2014			2015
			(in thousands)
	Computer equipment (1)		$	21,194		$	21,615
	Computer software			10,741			11,419
	Furniture and fixtures			1,847			1,835
	Leasehold improvements			1,389			1,362
	Work in process (primarily software development costs)			1,203			999
	Other			173			173
				36,547			37,403
	Less accumulated depreciation (2)			(21,419	)		(22,875	)
	Total property and equipment—net		$	15,128		$	14,528
	Notes:
		-1	Includes equipment under capital lease obligations of $4.8 million and $3.1 million as of December 31, 2014 and March 31, 2015, respectively.
		-2	Includes $2.7 million and $1.1 million of accumulated depreciation of equipment under capital leases as of December 31, 2014 and March 31, 2015, respectively.

Accrued_Expenses_and_Other_Cur

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	4. Accrued Expenses and Other Current Liabilities
	Accrued expenses and other current liabilities consisted of the following:
		December 31,		March 31,
		2014		2015
		(in thousands)
	Accrued compensation	$	4,066	$	3,671
	Accrued content fees		1,745		1,300
	Accrued business acquisition consideration		495		495
	Unearned revenue on contracts		642		410
	Other		1,455		1,274
	Total	$	8,403	$	7,150

Information_About_Segment_and_

Information About Segment and Geographic Areas	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Information About Segment and Geographic Areas	5. Information About Segment and Geographic Areas
	Operating segments are components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a total Company basis, accompanied by information about revenue by major service line for purposes of allocating resources and evaluating financial performance. Profitability measures by service line are not routinely prepared or used. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the Company level. Accordingly, the Company has determined that it has a single reporting segment and operating unit structure.
	The following table sets forth revenue and long-lived tangible assets by geographic area:
		Three Months Ended
		March 31,
		2014		2015
		(in thousands)
	Revenue
	United States	$	25,078	$	26,530
	International		170		200
	Total revenue	$	25,248	$	26,730
		December 31,		March 31,
		2014		2015
		(in thousands)
	Long-lived tangible assets
	United States	$	14,573	$	13,578
	Canada		502		796
	International		53		154
	Total long-lived tangible assets	$	15,128	$	14,528

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies
	Contract Commitments — The Company is obligated to make payments under various contracts with vendors and other business partners, principally for revenue-share and content arrangements. Contract commitments as of March 31, 2015 are summarized as follows:
	Year ending December 31:	(in thousands)
	2015 (remaining nine months)	$	2,056
	2016		1,300
	2017		580
	2018		110
	2019		—
	Due after 5 years		—
	Total contract commitments	$	4,046
	Teknision Acquisition — A remaining payment of $0.5 million for the purchase price to acquire the assets of Teknision, Inc. is due in May 2015 and recorded in accrued expenses and other current liabilities on the condensed consolidated balance sheet.
	Litigation — From time to time, the Company is a party to legal actions. In the opinion of management, the outcome of these matters is not expected to have a material impact on the consolidated financial statements of the Company.

Equity

Equity	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Equity	7. Equity
	Common Stock — Effective on February 15, 2012, the Company’s board of directors and stockholders approved the Fifth Amended and Restated Certificate of Incorporation. The total number of common shares that the Company is authorized to issue is 100,000,000 with a par value of $0.01 per share.
	Preferred Stock — Effective on February 15, 2012, the Company’s board of directors and stockholders approved the Fifth Amended and Restated Certificate of Incorporation. The total number of preferred shares that the Company is authorized to issue is 10,000,000 with a par value of $0.01 per share, 2,000,000 of which have been designated as Series A Junior Participating Preferred Stock pursuant to the Rights Plan. None have been issued to date.
	Stock Repurchases — In February 2014 the board of directors approved a Stock Repurchase Program, which authorizes a repurchase of up to $5.0 million worth of the Company’s outstanding common stock. The Stock Repurchase Program has no expiration date, and may be suspended or discontinued at any time without notice. The Company repurchased all shares with cash resources.
	The following table sets forth the shares of common stock repurchased through the program in the following periods:
		Three Months Ended
		March 31,
		2014		2015
	Shares of common stock repurchased		22,000		—
	Value of common stock repurchased (in thousands)	$	56	$	—
	Withhold to Cover — During the three months ended March 31, 2015, certain employees, in lieu of paying withholding taxes on the vesting of certain shares of restricted stock awards, authorized the withholding of 25,783 shares of the Company’s common stock to satisfy their minimum statutory tax withholding requirements related to such vesting. These shares were recorded as treasury stock using the cost method at the per share closing price on the date of vesting. No shares of the Company’s common stock were withheld to cover minimum statutory tax withholding requirements during the three months ended March 31, 2014.

Stockbased_Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	8. Stock-based Compensation
	The fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model, and stock-based compensation is recorded over the requisite service period. The Company recorded $0.7 million of stock-based compensation expense for the three months ended March 31, 2014 and 2015, respectively. No income tax deduction is allowed for incentive stock options (“ISOs”). Accordingly, no deferred income tax asset is recorded for the potential tax deduction related to these options. Expense related to stock option grants of non-qualified stock options (“NSOs”) result in a temporary difference, which gives rise to a deferred tax asset.
	Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows :
			Three Months Ended
			March 31,
			2014			2015
			(in thousands)
	Technology and development		$	327		$	217
	Sales and marketing			108			241
	General and administrative			246			284
	Total stock-based compensation expense		$	681		$	742
	Stock Option Activity — A summary of the stock option activity for the three months ended March 31, 2015 is presented below:
			Number of			Weighted		Aggregate		Weighted
			Stock			Average		Intrinsic Value		Average
			Options			Exercise		(in thousands)		Remaining
						Price				Contractual
										Term (in
										years)
	Outstanding—January 1, 2015			6,755,790		$	2.86
	Granted (1)			1,091,200		$	2.15
	Exercised			(2,260	)	$	2.38
	Forfeited (1)			(257,989	)	$	2.54
	Outstanding—March 31, 2015			7,586,741		$	2.77	$	569		7.55
	Vested and expected to vest—March 31, 2015			7,093,519		$	2.77	$	541		7.42
	Vested and exercisable—March 31, 2015			2,996,890		$	3.21	$	369		5.06
	Note:
		-1	The number of options granted and forfeited includes options cancelled and replaced in conjunction with the modifications described below.
	Aggregate intrinsic value represents the difference between the Company’s closing stock price of its common stock and the exercise price of outstanding, in-the-money options. The Company’s closing stock price as reported on the NASDAQ as of March 31, 2015 was $2.27 per share. The total intrinsic value of options exercised for the three months ended March 31, 2015 was minor. The weighted average fair value of options issued, excluding the options issued as replacements in the modifications below, during the three months ended March 31, 2015 amounted to $1.20.
	As of March 31, 2015, the unrecognized compensation cost related to non-vested options granted, for which vesting is probable, under the plan was approximately $6.3 million. This cost is expected to be recognized over a weighted-average period of 2.9 years. The total fair value of shares vested was $0.2 million for the three months ended March 31, 2015.

Net_Income_Loss_Per_Common_Sha

Net Income (Loss) Per Common Share Data	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share Data	9. Net Income (Loss) Per Common Share Data
	Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, and to a lesser extent, shares issuable upon the release of RSUs. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method.
	The following table presents the calculation of basic and diluted net loss per share for the three months ended March 31, 2014 and 2015:
		Three Months Ended,
		March 31,
		2014			2015
		(in thousands, except share
		and per share data)
	Basic net loss per share:
	Numerator:
	Net loss	$	(2,056	)	$	(1,073	)
	Denominator:
	Weighted-average common shares outstanding		27,434,374			27,407,147
	Basic net loss per share	$	(0.07	)	$	(0.04	)
	Diluted net loss per share:
	Numerator:
	Net loss	$	(2,056	)	$	(1,073	)
	Denominator:
	Number of shares used in basic calculation		27,434,374			27,407,147
	Add weighted-average effect of dilutive securities:
	None		—			—
	Number of shares used in diluted calculation		27,434,374			27,407,147
	Diluted net loss per share	$	(0.07	)	$	(0.04	)
	The following equivalent shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:
		Three Months Ended,
		March 31,
		2014			2015
	Antidilutive equity awards:
	Stock options and RSUs		5,670,083			8,316,190

The_Company_and_Summary_of_Sig1

The Company and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation — The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise have the power to control, are accounted for using the equity method and are included as investments in equity interest on the condensed consolidated balance sheets. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the interim unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position for the periods presented. These interim unaudited condensed consolidated financial statements are not necessarily indicative of the results expected for the full fiscal year or for any subsequent period and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (as amended).
Accounting Estimates	Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts.
Concentrations of Risk	Concentrations of Risk — As of December 31, 2014 and March 31, 2015, and for the three months ended March 31, 2014 and 2015, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:
			Accounts Receivable
			December 31,		March 31,
			2014		2015
	Google			23%		21%
	Digital Advertising Partner			11%		12%
	Portal Customer (1)			12%		N/A
	Note:
	-1	As of March 31, 2015, accounts receivable for Portal Customer was less than 10%.
			Revenue
			Three Months Ended
			March 31,
			2014		2015
	Google			51%		36%
	For the three months ended March 31, 2014 and 2015, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue. The costs represent revenue share paid to customers for their supply of Internet traffic on the Company’s start experiences:
			Cost of Revenue
			Three Months Ended
			March 31,
			2014		2015
	Customer A			23%		24	%
	Customer B			15%		10	%
	Customer C			11%		10	%
	Customer D (1)			10%		N/A
	Note:
		-1	For the three months ended March 31, 2015, the cost of revenue-share payments received by Customer D was less than 10%.

The_Company_and_Summary_of_Sig2

The Company and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue	As of December 31, 2014 and March 31, 2015, and for the three months ended March 31, 2014 and 2015, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:
			Accounts Receivable
			December 31,		March 31,
			2014		2015
	Google			23%		21%
	Digital Advertising Partner			11%		12%
	Portal Customer (1)			12%		N/A
	Note:
	-1	As of March 31, 2015, accounts receivable for Portal Customer was less than 10%.
			Revenue
			Three Months Ended
			March 31,
			2014		2015
	Google			51%		36%
	For the three months ended March 31, 2014 and 2015, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue. The costs represent revenue share paid to customers for their supply of Internet traffic on the Company’s start experiences:
			Cost of Revenue
			Three Months Ended
			March 31,
			2014		2015
	Customer A			23%		24	%
	Customer B			15%		10	%
	Customer C			11%		10	%
	Customer D (1)			10%		N/A
	Note:
		-1	For the three months ended March 31, 2015, the cost of revenue-share payments received by Customer D was less than 10%.

Property_and_EquipmentNet_Tabl

Property and Equipment-Net (Tables)	3 Months Ended
	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consisted of the following:
			December 31,			March 31,
			2014			2015
			(in thousands)
	Computer equipment (1)		$	21,194		$	21,615
	Computer software			10,741			11,419
	Furniture and fixtures			1,847			1,835
	Leasehold improvements			1,389			1,362
	Work in process (primarily software development costs)			1,203			999
	Other			173			173
				36,547			37,403
	Less accumulated depreciation (2)			(21,419	)		(22,875	)
	Total property and equipment—net		$	15,128		$	14,528
	Notes:
		-1	Includes equipment under capital lease obligations of $4.8 million and $3.1 million as of December 31, 2014 and March 31, 2015, respectively.
		-2	Includes $2.7 million and $1.1 million of accumulated depreciation of equipment under capital leases as of December 31, 2014 and March 31, 2015, respectively.

Accrued_Expenses_and_Other_Cur1

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following:
		December 31,		March 31,
		2014		2015
		(in thousands)
	Accrued compensation	$	4,066	$	3,671
	Accrued content fees		1,745		1,300
	Accrued business acquisition consideration		495		495
	Unearned revenue on contracts		642		410
	Other		1,455		1,274
	Total	$	8,403	$	7,150

Information_About_Segment_and_1

Information About Segment and Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Tangible Assets by Geographic Area	The following table sets forth revenue and long-lived tangible assets by geographic area:
		Three Months Ended
		March 31,
		2014		2015
		(in thousands)
	Revenue
	United States	$	25,078	$	26,530
	International		170		200
	Total revenue	$	25,248	$	26,730
		December 31,		March 31,
		2014		2015
		(in thousands)
	Long-lived tangible assets
	United States	$	14,573	$	13,578
	Canada		502		796
	International		53		154
	Total long-lived tangible assets	$	15,128	$	14,528

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Contract Commitments	Contract commitments as of March 31, 2015 are summarized as follows:
	Year ending December 31:	(in thousands)
	2015 (remaining nine months)	$	2,056
	2016		1,300
	2017		580
	2018		110
	2019		—
	Due after 5 years		—
	Total contract commitments	$	4,046

Equity_Tables

Equity (Tables)	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Schedule of Stock Repurchased	The following table sets forth the shares of common stock repurchased through the program in the following periods:
		Three Months Ended
		March 31,
		2014		2015
	Shares of common stock repurchased		22,000		—
	Value of common stock repurchased (in thousands)	$	56	$	—

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Total Stock Based Compensation Expense	Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows :
			Three Months Ended
			March 31,
			2014			2015
			(in thousands)
	Technology and development		$	327		$	217
	Sales and marketing			108			241
	General and administrative			246			284
	Total stock-based compensation expense		$	681		$	742
Summary of Stock Option Activity	Stock Option Activity — A summary of the stock option activity for the three months ended March 31, 2015 is presented below:
			Number of			Weighted		Aggregate		Weighted
			Stock			Average		Intrinsic Value		Average
			Options			Exercise		(in thousands)		Remaining
						Price				Contractual
										Term (in
										years)
	Outstanding—January 1, 2015			6,755,790		$	2.86
	Granted (1)			1,091,200		$	2.15
	Exercised			(2,260	)	$	2.38
	Forfeited (1)			(257,989	)	$	2.54
	Outstanding—March 31, 2015			7,586,741		$	2.77	$	569		7.55
	Vested and expected to vest—March 31, 2015			7,093,519		$	2.77	$	541		7.42
	Vested and exercisable—March 31, 2015			2,996,890		$	3.21	$	369		5.06
	Note:
		-1	The number of options granted and forfeited includes options cancelled and replaced in conjunction with the modifications described below.

Net_Income_Loss_Per_Common_Sha1

Net Income (Loss) Per Common Share Data (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share	The following table presents the calculation of basic and diluted net loss per share for the three months ended March 31, 2014 and 2015:
		Three Months Ended,
		March 31,
		2014			2015
		(in thousands, except share
		and per share data)
	Basic net loss per share:
	Numerator:
	Net loss	$	(2,056	)	$	(1,073	)
	Denominator:
	Weighted-average common shares outstanding		27,434,374			27,407,147
	Basic net loss per share	$	(0.07	)	$	(0.04	)
	Diluted net loss per share:
	Numerator:
	Net loss	$	(2,056	)	$	(1,073	)
	Denominator:
	Number of shares used in basic calculation		27,434,374			27,407,147
	Add weighted-average effect of dilutive securities:
	None		—			—
	Number of shares used in diluted calculation		27,434,374			27,407,147
	Diluted net loss per share	$	(0.07	)	$	(0.04	)
Schedule of Equivalent Shares Excluded from Calculation of Diluted Net Loss Per Share	The following equivalent shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:
		Three Months Ended,
		March 31,
		2014			2015
	Antidilutive equity awards:
	Stock options and RSUs		5,670,083			8,316,190

The_Company_and_Summary_of_Sig3

The Company and Summary of Significant Accounting Policies - Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue (Detail) (Customer Concentration Risk [Member])	3 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Accounts Receivable [Member] | Google [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	21.00%	23.00%
Accounts Receivable [Member] | Display Advertising Partner [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%	11.00%
Accounts Receivable [Member] | Portal Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		12.00%
Cost of Sales [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	24.00%		23.00%
Cost of Sales [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%		15.00%
Cost of Sales [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%		11.00%
Cost of Sales [Member] | Customer D [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%
Revenue [Member] | Google [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	36.00%		51.00%

The_Company_and_Summary_of_Sig4

The Company and Summary of Significant Accounting Policies - Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue (Parenthetical) (Detail) (Customer Concentration Risk [Member])	12 Months Ended	3 Months Ended	0 Months Ended
	Dec. 31, 2014	Mar. 31, 2015	Mar. 31, 2015
Portal Customer [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%
Customer D [Member] | Cost of Revenue [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%
Maximum [Member] | Portal Customer [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%

The_Company_and_Summary_of_Sig5

The Company and Summary of Significant Accounting Policies - Rights Plan - Additional Information (Detail) (USD $)	0 Months Ended
	Jul. 14, 2014	Mar. 31, 2015	Dec. 31, 2014	Jul. 14, 2014	Feb. 15, 2012
Class of Warrant or Right [Line Items]
Common stock dividend declared, number of preferred share purchase rights for each outstanding share of common stock	100.00%			100.00%
Number of shares called by each Right	0.01			0.01
Exercise price	$10			$10
Preferred stock, shares authorized		10,000,000	10,000,000		10,000,000
Exercisable period after public announcement	10 days
Beneficial ownership threshold of common stock for rights be become exercisable	10.00%
Market value of acquiring corporation shares	$20			$20
Minimum ownership percentage of common stock Board of Directors may no longer exchange common stock	50.00%
Exchange of common stock for Right, exchange ratio	1			1
Series A Junior Participating Preferred Stock [Member]
Class of Warrant or Right [Line Items]
Preferred stock, shares authorized	2,000,000			2,000,000	2,000,000

Investments_and_Fair_Value_Mea1

Investments and Fair Value Measurements - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended
	Jul. 31, 2013	Mar. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Payments to acquire investment	$1,000,000
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
No other than temporary impairments in investments		$0

Property_and_EquipmentNet_Sche

Property and Equipment-Net - Schedule of Property and Equipment (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Property, Plant and Equipment [Line Items]
Property and equipment gross	$37,403	$36,547
Less accumulated depreciation	-22,875	-21,419
Total property and equipment-net	14,528	15,128
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	21,615	21,194
Computer Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	11,419	10,741
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	1,835	1,847
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	1,362	1,389
Work in Process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	999	1,203
Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	$173	$173

Property_and_EquipmentNet_Sche1

Property and Equipment-Net - Schedule of Property and Equipment (Parenthetical) (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Property, Plant and Equipment [Line Items]
Property and equipment gross	$37,403	$36,547
Accumulated depreciation of equipment under capital leases	22,875	21,419
Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation of equipment under capital leases	1,100	2,700
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	21,615	21,194
Computer Equipment [Member] | Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	$3,100	$4,800

Accrued_Expenses_and_Other_Cur2

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued compensation	$3,671	$4,066
Accrued content fees	1,300	1,745
Accrued business acquisition consideration	495	495
Unearned revenue on contracts	410	642
Other	1,274	1,455
Total	$7,150	$8,403

Information_About_Segment_and_2

Information About Segment and Geographic Areas - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015
	Segment
	Managers
Revenues From External Customers And Long Lived Assets [Abstract]
Number of segment managers accountable for operations below the Company level	0
Number of reportable segments	1
Number of operating units	1

Information_About_Segment_and_3

Information About Segment and Geographic Areas - Schedule of Revenue and Long Lived Tangible Assets by Geographic Area (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
REVENUE	$26,730	$25,248
Long-lived tangible assets	14,528	15,128
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
REVENUE	26,530	25,078
Long-lived tangible assets	13,578	14,573
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	796	502
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
REVENUE	200	170
Long-lived tangible assets	$154	$53

Commitments_and_Contingencies_1

Commitments and Contingencies - Schedule of Contract Commitments (Detail) (USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Contractual Obligation, Fiscal Year Maturity [Abstract]
2015 (remaining nine months)	$2,056
2016	1,300
2017	580
2018	110
2019	0
Due after 5 years	0
Total contract commitments	$4,046

Commitments_and_Contingencies_2

Commitments and Contingencies - Additional Information (Detail) (Teknision Inc [Member], USD $)	Mar. 31, 2015
In Millions, unless otherwise specified
Teknision Inc [Member]
Business Acquisition [Line Items]
Remaining payment for acquisition for the purchase price to acquire the assets	$0.50

Equity_Additional_Information_

Equity - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Feb. 28, 2014	Feb. 15, 2012	Jul. 14, 2014
Class of Stock [Line Items]
Common stock, shares authorized	100,000,000	100,000,000		100,000,000
Common stock, par value	$0.01	$0.01		$0.01
Preferred stock, shares authorized	10,000,000	10,000,000		10,000,000
Preferred stock, par value	$0.01	$0.01		$0.01
Shares authorized to be repurchased, amount			$5,000,000
Series A Junior Participating Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized				2,000,000	2,000,000

Equity_Schedule_of_Stock_Repur

Equity - Schedule of Stock Repurchased (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014
Equity [Abstract]
Shares of common stock repurchased	22,000
Value of common stock repurchased (in thousands)	$56

Equity_Withhold_to_Cover_Addit

Equity - Withhold to Cover - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Equity [Abstract]
Shares withheld to satisfy minimum statutory tax withholding requirements	25,783	0

Stockbased_Compensation_Additi

Stock-based Compensation - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$742,000	$681,000
Closing stock price as reported on the NASDAQ	$2.27
Weighted average fair value of options issued	$1.20
Unrecognized compensation cost related to non-vested options granted	6,300,000
Total fair value of shares vested	$200,000
Expected weighted average period to recognize unrecognized compensation cost	2 years 10 months 24 days

Stockbased_Compensation_Schedu

Stock-based Compensation - Schedule of Total Stock Based Compensation Expense (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$742	$681
Technology and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	217	327
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	241	108
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$284	$246

Stockbased_Compensation_Summar

Stock-based Compensation - Summary of Stock Option Activity (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding number of stock options beginning balance	6,755,790
Number of stock options granted	1,091,200
Number of stock options exercised	-2,260
Number of stock options forfeited	-257,989
Outstanding number of stock options ending balance	7,586,741
Outstanding number of stock options vested and expected to vest	7,093,519
Outstanding number of stock options vested and exercisable	2,996,890
Outstanding, weighted average exercise price, beginning balance	$2.86
Weighted average exercise price, granted	$2.15
Weighted average exercise price, exercised	$2.38
Weighted average exercise price, forfeited	$2.54
Outstanding, weighted average exercise price, ending balance	$2.77
Vested and expected to vest, weighted average exercise price, ending balance	$2.77
Vested and exercisable, weighted average exercise price, ending balance	$3.21
Aggregate intrinsic value, outstanding	$569
Aggregate intrinsic value, vested and expected to vest	541
Aggregate intrinsic value, vested and exercisable	$369
Weighted average remaining contractual term (in years), outstanding	7 years 6 months 18 days
Weighted average remaining contractual term (in years), vested and expected to vest	7 years 5 months 1 day
Weighted average remaining contractual term (in years), vested and exercisable	5 years 22 days

Net_Income_Loss_Per_Common_Sha2

Net Income (Loss) Per Common Share Data - Schedule of Basic and Diluted Net Loss Per Share (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net loss	($1,073)	($2,056)
Denominator:
Weighted-average common shares outstanding	27,407,147	27,434,374
Basic net loss per share	($0.04)	($0.07)
Numerator:
Net loss	($1,073)	($2,056)
Denominator:
Weighted-average common shares outstanding	27,407,147	27,434,374
Add weighted-average effect of dilutive securities:
Weighted-average effect of diluted securities	0	0
Number of shares used in diluted calculation	27,407,147	27,434,374
Diluted net loss per share	($0.04)	($0.07)

Net_Income_Loss_Per_Common_Sha3

Net Income (Loss) Per Common Share Data - Schedule of Equivalent Shares Excluded from Calculation of Diluted Net Loss Per Share (Detail) (Stock Options and RSUs [Member])	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock Options and RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive equity awards	8,316,190	5,670,083