Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 09, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33843 | |
Entity Registrant Name | Synacor, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 16-1542712 | |
Entity Address, Address Line One | 40 La Riviere Drive, Suite 300 | |
Entity Address, City or Town | Buffalo, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14202 | |
City Area Code | 716 | |
Local Phone Number | 853-1362 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | SYNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 39,644,363 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001408278 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,280 | $ 10,966 |
Accounts receivable—net of allowance of $565 and $585 | 12,809 | 20,532 |
Prepaid expenses and other current assets | 3,287 | 2,989 |
Total current assets | 20,376 | 34,487 |
PROPERTY AND EQUIPMENT, net | 12,192 | 14,948 |
OPERATING LEASE RIGHT-OF-USE ASSETS, net | 3,458 | 4,765 |
GOODWILL | 15,943 | 15,948 |
INTANGIBLE ASSETS, net | 6,820 | 8,411 |
OTHER ASSETS | 876 | 1,319 |
Total assets | 59,665 | 79,878 |
CURRENT LIABILITIES: | ||
Accounts payable | 8,597 | 12,583 |
Accrued expenses and other current liabilities | 3,725 | 5,878 |
Current portion of deferred revenue | 5,750 | 6,509 |
Current portion of long-term debt and finance leases | 1,018 | 2,529 |
Current portion of operating lease liabilities | 2,434 | 2,165 |
Total current liabilities | 21,524 | 29,664 |
LONG-TERM PORTION OF DEBT AND FINANCE LEASES | 1,309 | 729 |
LONG-TERM PORTION OF OPERATING LEASE LIABILITIES | 1,629 | 2,846 |
DEFERRED REVENUE | 1,696 | 2,366 |
DEFERRED INCOME TAXES | 334 | 275 |
OTHER LONG-TERM LIABILITIES | 248 | 334 |
Total liabilities | 26,740 | 36,214 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock – par value $0.01 per share; authorized 10,000,000 shares; none issued | 0 | 0 |
Common stock – par value $0.01 per share; authorized 100,000,000 shares; 40,508,235 shares issued and 39,574,075 shares outstanding at September 30, 2020 and 40,075,475 shares issued and 39,201,477 shares outstanding at December 31, 2019 | 405 | 401 |
Treasury stock – at cost, 934,160 shares at September 30, 2020 and 873,998 shares at December 31, 2019 | (2,004) | (1,931) |
Additional paid-in capital | 147,572 | 146,460 |
Accumulated deficit | (112,416) | (100,747) |
Accumulated other comprehensive loss | (632) | (519) |
Total stockholders’ equity | 32,925 | 43,664 |
Total liabilities and stockholders’ equity | $ 59,665 | $ 79,878 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 565 | $ 585 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 40,508,235 | 40,075,475 |
Common stock, shares outstanding (in shares) | 39,574,075 | 39,201,477 |
Treasury stock, shares (in shares) | 934,160 | 873,998 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
REVENUE | $ 18,529 | $ 31,366 | $ 57,288 | $ 95,039 |
COSTS AND OPERATING EXPENSES: | ||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 10,403 | 15,634 | 30,168 | 49,292 |
Technology and development (exclusive of depreciation and amortization shown separately below) | 3,085 | 5,545 | 9,136 | 14,668 |
Sales and marketing | 3,410 | 5,473 | 11,581 | 17,014 |
General and administrative (exclusive of depreciation and amortization shown separately below) | 3,238 | 5,648 | 10,978 | 14,068 |
Depreciation and amortization | 1,991 | 2,605 | 6,430 | 7,607 |
Total costs and operating expenses | 22,127 | 34,905 | 68,293 | 102,649 |
LOSS FROM OPERATIONS | (3,598) | (3,539) | (11,005) | (7,610) |
OTHER (EXPENSE) INCOME, net | (124) | 101 | 218 | 110 |
INTEREST EXPENSE | (37) | (80) | (146) | (199) |
LOSS BEFORE INCOME TAXES | (3,759) | (3,518) | (10,933) | (7,699) |
PROVISION FOR INCOME TAXES | 203 | 207 | 736 | 757 |
Net loss | $ (3,962) | $ (3,725) | $ (11,669) | $ (8,456) |
NET LOSS PER SHARE: | ||||
Basic (in dollars per share) | $ (0.10) | $ (0.10) | $ (0.30) | $ (0.22) |
Diluted (in dollars per share) | $ (0.10) | $ (0.10) | $ (0.30) | $ (0.22) |
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET LOSS PER SHARE: | ||||
Basic (in shares) | 39,503,951 | 39,073,998 | 39,405,791 | 39,047,561 |
Diluted (in shares) | 39,503,951 | 39,073,998 | 39,405,791 | 39,047,561 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,962) | $ (3,725) | $ (11,669) | $ (8,456) |
Other comprehensive loss: | ||||
Changes in foreign currency translation adjustment | 57 | (136) | (113) | (151) |
Comprehensive loss | $ (3,905) | $ (3,861) | $ (11,782) | $ (8,607) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2018 | 39,880,054 | 852,482 | ||||
Beginning balance at Dec. 31, 2018 | $ 51,171 | $ 399 | $ (1,899) | $ 144,739 | $ (91,726) | $ (342) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 26,527 | |||||
Exercise of common stock options | 40 | 40 | ||||
Stock-based compensation cost | 1,220 | 1,220 | ||||
Vesting of restricted stock units, net of treasury stock (in shares) | 73,815 | 21,516 | ||||
Vesting of restricted stock units, net of treasury stock | (31) | $ (32) | ||||
Net loss | (8,456) | (8,456) | ||||
Other comprehensive loss | (151) | (151) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 39,980,396 | 873,998 | ||||
Ending balance at Sep. 30, 2019 | 43,793 | $ 400 | $ (1,931) | 145,999 | (100,182) | (493) |
Beginning balance (in shares) at Jun. 30, 2019 | 39,917,519 | 856,373 | ||||
Beginning balance at Jun. 30, 2019 | 47,144 | $ 399 | $ (1,905) | 145,464 | (96,457) | (357) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 0 | |||||
Exercise of common stock options | 0 | 0 | ||||
Stock-based compensation cost | 535 | 535 | ||||
Vesting of restricted stock units, net of treasury stock (in shares) | 62,877 | 17,625 | ||||
Vesting of restricted stock units, net of treasury stock | (25) | $ (26) | ||||
Net loss | (3,725) | (3,725) | ||||
Other comprehensive loss | (136) | (136) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 39,980,396 | 873,998 | ||||
Ending balance at Sep. 30, 2019 | $ 43,793 | $ 400 | $ (1,931) | 145,999 | (100,182) | (493) |
Beginning balance (in shares) at Dec. 31, 2019 | 39,201,477 | 40,075,475 | 873,998 | |||
Beginning balance at Dec. 31, 2019 | $ 43,664 | $ 401 | $ (1,931) | 146,460 | (100,747) | (519) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 0 | |||||
Stock-based compensation cost | $ 1,116 | 1,116 | ||||
Vesting of restricted stock units, net of treasury stock (in shares) | 432,760 | 60,162 | ||||
Vesting of restricted stock units, net of treasury stock | (73) | $ 4 | $ (73) | (4) | ||
Net loss | (11,669) | (11,669) | ||||
Other comprehensive loss | $ (113) | (113) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 39,574,075 | 40,508,235 | 934,160 | |||
Ending balance at Sep. 30, 2020 | $ 32,925 | $ 405 | $ (2,004) | 147,572 | (112,416) | (632) |
Beginning balance (in shares) at Jun. 30, 2020 | 40,353,854 | 904,535 | ||||
Beginning balance at Jun. 30, 2020 | 36,523 | $ 404 | $ (1,971) | 147,233 | (108,454) | (689) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Stock-based compensation cost | 340 | 340 | ||||
Vesting of restricted stock units, net of treasury stock (in shares) | 154,381 | 29,625 | ||||
Vesting of restricted stock units, net of treasury stock | (33) | $ 1 | $ (33) | (1) | ||
Net loss | (3,962) | (3,962) | ||||
Other comprehensive loss | $ 57 | 57 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 39,574,075 | 40,508,235 | 934,160 | |||
Ending balance at Sep. 30, 2020 | $ 32,925 | $ 405 | $ (2,004) | $ 147,572 | $ (112,416) | $ (632) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (11,669) | $ (8,456) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||
Depreciation and amortization | 8,081 | 8,513 |
Asset impairment | 687 | 1,751 |
Stock-based compensation expense | 1,093 | 1,184 |
Provision for deferred income taxes | 59 | 59 |
Change in allowance for doubtful accounts | (20) | 77 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 7,743 | 5,369 |
Prepaid expenses and other assets | 122 | 59 |
Operating lease right-of-use assets and liabilities, net | (109) | 36 |
Accounts payable, accrued expenses and other liabilities | (5,561) | (3,132) |
Deferred revenue | (1,429) | (251) |
Net cash (used in) provided by operating activities | (1,003) | 5,209 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (2,640) | (3,159) |
Net cash used in investing activities | (2,640) | (3,159) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments on long-term debt and finance leases | (2,863) | (2,531) |
Proceeds from exercise of common stock options | 0 | 40 |
Payment of debt issuance costs | 0 | (60) |
Purchase of treasury stock and shares received to satisfy minimum tax withholdings | (73) | (32) |
Net cash used in financing activities | (2,936) | (2,583) |
Effect of exchange rate changes on cash and cash equivalents | (107) | (156) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (6,686) | (689) |
Cash and cash equivalents, beginning of period | 10,966 | 15,921 |
Cash and cash equivalents, end of period | 4,280 | 15,232 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 145 | 198 |
Cash paid for income taxes | 407 | 574 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Minimum long-term debt and finance lease payments in accounts payable | 0 | 277 |
Accrued property and equipment expenditures | $ 0 | $ 146 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Principles | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Principles | The Company and Summary of Significant Accounting Principles Synacor, Inc., together with its consolidated subsidiaries (collectively, the “Company” or “Synacor”), is a digital technology company that provides email and collaboration software, cloud-based identity management platforms, managed web and mobile portals, and advertising solutions. The Company’s customers include communications providers, media companies, government entities and enterprises. Synacor is a trusted partner for enterprise software platforms and monetization solutions that Synacor delivers through public and private cloud software-as-a-service, software licensing, and professional services. Synacor enables clients to deepen their engagement with their consumers and users. 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. 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. The accompanying condensed consolidated balance sheet as of December 31, 2019 was derived from the audited financial statements as of that date, but does not include all the information and footnotes required by U.S. GAAP. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. 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. Actual results could differ materially from these estimates and judgments. Many of our estimates require increased judgment due to the significant volatility, uncertainty and economic disruption of the recent global COVID-19 pandemic. We will continue to monitor the effects of the COVID-19 pandemic, and our estimates and judgments may change materially as new events occur or additional information becomes available to us. Concentrations of Risk — As of September 30, 2020 and December 31, 2019, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable as follows: Accounts Receivable September 30, 2020 December 31, 2019 Portal & Advertising Customer A * 13 % * - Less than 10% For the three and nine months ended September 30, 2020 and 2019, the Company had concentrations equal to or exceeding 10% of the Company’s revenue as follows: Revenue Three Months Ended Nine Months Ended 2020 2019 2020 2019 Google search 11 % * * 11 % Portal & Advertising Customer A * 13 % * 13 % * - Less than 10% For the three and nine months ended September 30, 2020 and 2019, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue: Cost of Revenue Three Months Ended Nine Months Ended 2020 2019 2020 2019 Portal & Advertising Customer B * 18 % * 26 % * - Less than 10% Recent Accounting Pronouncements — Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-13 ("ASU 2016-13") Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes result in earlier recognition of credit losses. In November 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)", which defers the effective date for public filers that are considered small reporting companies, as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements and related disclosures. Recently Adopted In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirements for capitalizing implementation costs incurred for an internal-use software license. Adoption of this guidance is required for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and early adoption is permitted. The amendments will be applied prospectively to all implementation costs incurred after adoption. There was no impact to the Company's condensed consolidation financial statements for the three and nine months ended September 30, 2020 as a result of adopting this standard update on January 1, 2020. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on the Company’s financial statements and related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company generates all of its revenue from contracts with customers. Many of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. The Company usually expects payment within 30 to 90 days from the invoice date (fulfillment of performance obligations or per contract terms). None of the Company’s contracts as of September 30, 2020 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced are recognized as deferred revenue. Disaggregation of revenue The following table provides information about disaggregated revenue for the three and nine months ended September 30, 2020 and 2019 by the timing of revenue recognition, and includes a reconciliation of the disaggregated revenue by reportable segment (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Software & Services Products and services transferred over time $ 8,139 $ 8,240 $ 24,532 $ 25,503 Products transferred at a point in time 1,977 2,851 7,561 7,334 Total Software & Services 10,116 11,091 32,093 32,837 Portal & Advertising Products and services transferred over time 554 1,274 2,659 3,982 Products transferred at a point in time 7,859 19,001 22,536 58,220 Total Portal & Advertising 8,413 20,275 25,195 62,202 Total Revenue $ 18,529 $ 31,366 $ 57,288 $ 95,039 Revenue disaggregated by geography, based on the billing address of our customer, consists of the following (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Revenue United States $ 13,077 $ 25,717 $ 41,044 $ 78,965 International 5,452 5,649 16,244 16,074 Total revenue $ 18,529 $ 31,366 $ 57,288 $ 95,039 Remaining Performance Obligations Deferred revenue is recorded when cash payments are received or due in advance of revenue recognition from software licenses, professional services, and maintenance agreements. The timing of revenue recognition may differ from the timing of billings to customers. The changes in deferred revenue, inclusive of both current and long-term, are as follows (in thousands): Beginning balance - January 1, 2020 $ 8,875 Recognition of deferred revenue (7,646) Deferral of revenue 6,133 Effect of foreign currency translation 84 Ending balance - September 30, 2020 $ 7,446 The majority of the deferred revenue balance above relates to the maintenance and support contracts for the Company's email software licenses. These are recognized straight-line over the life of the contract, with the majority of the balance being recognized within the next twelve months. Practical Expedients The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company enters into various non-cancellable operating lease agreements for certain of our offices, data centers, colocations and network equipment. The Company’s leases have original lease periods expiring between 2020 and 2025. Many leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company’s variable lease payments are immaterial and its lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease costs are included in cost of revenue and general and administrative costs in the Company’s condensed consolidated statements of operations. Finance lease amortization costs are included in depreciation and amortization, and finance lease interest costs are included in interest expense in the Company’s condensed consolidated statements of operations. The components of lease costs are as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets $ 628 $ 958 $ 2,609 $ 1,586 Interest 32 211 100 400 Operating lease cost 705 1,129 2,030 2,219 Total lease cost $ 1,365 $ 2,298 $ 4,739 $ 4,205 The lease term and discount rate are as follows: September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Operating leases 1.7 Years 2.0 Years Finance leases 2.1 Years 1.2 Years Weighted Average Discount Rate Operating leases 6.0 % 6.0 % Finance leases 3.7 % 5.0 % The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 644 $ 276 2021 2,180 1,070 2022 1,042 765 2023 441 328 2024 36 29 2025 — 3 Total undiscounted cash flows 4,343 2,471 Less imputed interest (280) (144) Present value of lease liabilities $ 4,063 $ 2,327 Supplemental cash flow information related to leases are as follows (in thousands): Nine Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,429 $ 2,324 Operating cash flows from finance leases $ 100 $ 400 Financing cash flows from finance leases $ 2,863 $ 1,586 Lease liabilities arising from obtaining right-of-use-assets: Operating leases $ 1,010 $ 64 Finance leases $ 1,675 $ 1,925 |
Leases | Leases The Company enters into various non-cancellable operating lease agreements for certain of our offices, data centers, colocations and network equipment. The Company’s leases have original lease periods expiring between 2020 and 2025. Many leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company’s variable lease payments are immaterial and its lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease costs are included in cost of revenue and general and administrative costs in the Company’s condensed consolidated statements of operations. Finance lease amortization costs are included in depreciation and amortization, and finance lease interest costs are included in interest expense in the Company’s condensed consolidated statements of operations. The components of lease costs are as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets $ 628 $ 958 $ 2,609 $ 1,586 Interest 32 211 100 400 Operating lease cost 705 1,129 2,030 2,219 Total lease cost $ 1,365 $ 2,298 $ 4,739 $ 4,205 The lease term and discount rate are as follows: September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Operating leases 1.7 Years 2.0 Years Finance leases 2.1 Years 1.2 Years Weighted Average Discount Rate Operating leases 6.0 % 6.0 % Finance leases 3.7 % 5.0 % The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 644 $ 276 2021 2,180 1,070 2022 1,042 765 2023 441 328 2024 36 29 2025 — 3 Total undiscounted cash flows 4,343 2,471 Less imputed interest (280) (144) Present value of lease liabilities $ 4,063 $ 2,327 Supplemental cash flow information related to leases are as follows (in thousands): Nine Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,429 $ 2,324 Operating cash flows from finance leases $ 100 $ 400 Financing cash flows from finance leases $ 2,863 $ 1,586 Lease liabilities arising from obtaining right-of-use-assets: Operating leases $ 1,010 $ 64 Finance leases $ 1,675 $ 1,925 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2020 are as follows (in thousands): Software & Services Portal & Advertising Total December 31, 2019 $ 11,804 $ 4,144 $ 15,948 Effect of foreign currency translation (5) — (5) September 30, 2020 $ 11,799 $ 4,144 $ 15,943 The Company tests goodwill for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company, as a result of the potential future financial impacts of the COVID-19 pandemic, particularly on its Portal & Advertising segment, assessed its goodwill for impairment as of March 31, 2020, for which all reporting units were found to have a fair value greater than their carrying value. As of September 30, 2020, the Company considered the current and future macroeconomic and market conditions, along with its current market capitalization, projected cash flows and forecasts, and projections relating to the impact of the COVID-19 pandemic on each of its reporting units. The Company determined that a triggering event had not occurred as of September 30, 2020 that would require an additional interim impairment test to be performed. As such, no impairment charges were recorded for the three and nine months ended September 30, 2020. The Company has no accumulated impairment losses. Intangible assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Customer and publisher relationships $ 14,780 $ 14,780 Technology 2,330 2,330 Trademark 300 300 Intangible assets, gross 17,410 17,410 Less accumulated amortization (10,590) (8,999) Intangible assets, net $ 6,820 $ 8,411 Amortization of intangible assets totaled $0.5 million for the three months ended September 30, 2020 and 2019, and $1.6 million for the nine months ended September 30, 2020 and 2019. Based on acquired intangible assets recorded at September 30, 2020, amortization is expected to be $0.6 million for the remainder of 2020, $1.4 million in 2021, $1.3 million in 2022, $1.3 million in 2023, $1.3 million in 2024 and $0.9 million thereafter. |
Property and Equipment - Net
Property and Equipment - Net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment - Net | Property and Equipment - Net Property and equipment, net consisted of the following (in thousands): September 30, 2020 December 31, 2019 Computer equipment $ 26,959 $ 25,392 Computer software 33,236 31,037 Furniture and fixtures 913 1,315 Leasehold improvements 882 1,116 Work in process (primarily software development costs) 19 187 Other 172 136 Property and equipment, gross 62,181 59,183 Less accumulated depreciation (49,989) (44,235) Property and equipment, net $ 12,192 $ 14,948 Depreciation expense totaled $2.0 million and $2.1 million for the three months ended September 30, 2020 and 2019, respectively. Depreciation expense totaled $6.5 million and $6.5 million for the nine months ended September 30, 2020 and 2019, respectively. Property and equipment includes computer equipment and software held under finance leases of $12.5 million and $10.8 million as of September 30, 2020 and December 31, 2019, respectively. Accumulated depreciation of computer equipment and software held under finance leases amounted to $8.5 million as of September 30, 2020 and $6.2 million as of December 31, 2019. For the three months ended September 30, 2020 and 2019, respectively, the Company capitalized a total of $0.3 million and $0.4 million of costs that occurred during the application development phase, related to the development of internal-use software. The Company capitalized a total of $0.3 million and $0.4 million of costs related to the development of software for sale or license for the three months ended September 30, 2020 and 2019, that occurred after technological feasibility had been achieved. For the nine months ended September 30, 2020 and 2019, respectively, the Company capitalized a total of $1.0 million and $1.9 million of costs that occurred during the application development phase, related to the development of internal-use software. The Company capitalized a total of $1.1 million of costs related to the development of software for sale or license for both the nine month periods ended September 30, 2020 and 2019, respectively, that occurred after technological feasibility had been achieved. Amortization of software capitalized for internal use was $0.6 million and $1.0 million for the three months ended September 30, 2020 and September 30, 2019 and $1.9 million and $3.5 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. Amortization of software capitalized for internal use is included in depreciation and amortization in the condensed consolidated statements of operations. Amortization of software for sale or license was $0.6 million and $0.4 million for the three months ended September 30, 2020 and September 30, 2019 and $1.6 million and $0.9 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. Amortization of software for sale or license is included in cost of revenue in the condensed consolidated statements of operations. Impairment charges related to property and equipment for the three and nine months ended September 30, 2020 and September 30, 2019 are included in general and administrative expense in the condensed consolidated statements of operations. The impairment charges during the three months ended September 30, 2020 were comprised of assets associated with certain leased office spaces being used in a manner different than originally planned, as well as software impairment. The Company utilizes the discounted cash flow method to determine the fair value of the assets. As a result of this analysis, the Company determined that the carrying values of the assets were not fully recoverable. Impairment charges (in thousands) related to property and equipment for the three and nine months ended September 30, 2020 and September 30, 2019 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Computer equipment $ 27 $ 2 $ 27 $ 2 Computer software — 1,331 — 1,557 Furniture and fixtures 57 102 57 102 Leasehold improvements 32 90 32 90 Work in process (primarily software development costs) 102 — 102 — Total $ 218 $ 1,525 $ 218 $ 1,751 The following table sets forth long-lived tangible assets by geographic area (in thousands): September 30, 2020 December 31, 2019 Long-lived tangible assets: United States $ 12,009 $ 14,629 International 183 319 Total long-lived tangible assets $ 12,192 $ 14,948 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Accrued compensation $ 1,686 $ 4,209 Accrued content fees and other costs of revenue 249 151 Accrued taxes 544 192 Accrued royalties and rebates 717 930 Other 529 396 Total $ 3,725 $ 5,878 Included in accrued compensation are accrued severance costs. In 2019, the Company initiated a cost reduction program ("2019 plan") in order to further streamline the organization after the loss of a major portal customer. These actions resulted in workforce reductions of approximately 50 employees, office consolidations and consolidating operations. For the three and nine month period ended September 30, 2019, severance costs charged to sales and marketing was $0.2 million and $0.4 million was charged to technology and development expenses On August 4, 2020, the Company initiated an additional cost reduction program ("2020 plan") as a result of an ongoing review of our business and operations. The restructuring actions resulted in a reduction in workforce of 25 employees. All severance costs related to these actions were recognized in the three month period ending September 30, 2020. Severance amounts for all plans are expected to be paid out by March 2021. For the three and nine month period ended September 30, 2020, severance charged to sales and marketing expenses was $0.4 million and $0.6 million was charged to technology and development expenses. The below table summarizes the activity in the accrued severance account (in thousands). 2020 Balance at beginning of the year $ 56 Charged to expense 990 Cash payments related to 2019 plan (56) Cash payments related to 2020 plan (667) Balance at end of period $ 323 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates its business in two reportable segments: 1) Software & Services and 2) Portal & Advertising. Software & Services generates revenue by providing cloud-based identity management solutions and email/collaboration products. Portal & Advertising generates managed portal fees and advertising revenue from its traffic on its Managed Portals and other advertising solutions it provides for publishers. The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments. The accounting policies of each segment are the same as those described in the summary of significant accounting policies, refer to Note 1— Summary of Significant Accounting Policies, for further details. The Company evaluates the performance of its segments and allocates resources to them based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as EBITDA (earnings before interest, income taxes, depreciation and amortization) adjusted for certain non-cash items and other non-recurring income and expenses. Revenue for all operating segments include only transactions with unaffiliated customers and there is no intersegment revenue. The Company does not account for, and does not report to management, its assets or capital expenditures by segment other than goodwill and intangible assets used for impairment analysis purposes. The tables below summarize the financial information for the Company’s reportable segments for the three and nine months ended September 30, 2020 and 2019 (in thousands). The “Corporate Unallocated Expenses” category, as it relates to Segment Adjusted EBITDA, primarily includes corporate overhead costs, such as rent, payroll and related benefit costs and professional services which are not directly attributable to any individual segment. Three Months Ended Nine Months Ended Revenue Cost of revenue (1) Segment Adjusted Revenue Cost of revenue (1) Segment Adjusted Software & Services $ 10,116 $ 4,092 $ 2,890 $ 32,093 $ 10,613 $ 10,136 Portal & Advertising 8,413 6,311 588 25,195 19,555 (56) Corporate Unallocated Expenses — — (2,489) — — (8,323) Total Company $ 18,529 $ 10,403 $ 989 $ 57,288 $ 30,168 $ 1,757 Three Months Ended Nine Months Ended Revenue Cost of revenue (1) Segment Adjusted Revenue Cost of revenue (1) Segment Adjusted Software & Services $ 11,091 $ 2,864 $ 3,378 $ 32,837 $ 9,602 $ 8,966 Portal & Advertising 20,275 12,770 2,881 62,202 39,690 8,036 Corporate Unallocated Expenses — — (3,519) — — (10,943) Total Company $ 31,366 $ 15,634 $ 2,740 $ 95,039 $ 49,292 $ 6,059 Notes: (1) Exclusive of depreciation and amortization shown separately on the condensed consolidated statements of operations The following table reconciles total Segment Adjusted EBITDA to Net loss (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Total Segment Adjusted EBITDA $ 989 $ 2,740 $ 1,757 $ 6,059 Less: Provision for income taxes (203) (207) (736) (757) Interest expense (37) (80) (146) (199) Other (expense) income, net (124) 101 218 110 Depreciation and amortization (2,562) (3,036) (8,059) (8,509) Asset impairment** (687) (1,525) (687) (1,751) Stock-based compensation expense (333) (529) (1,093) (1,184) Restructuring costs (1,099) (819) (1,219) (819) Certain legal and professional services fees* 94 (370) (1,704) (1,406) Net loss $ (3,962) $ (3,725) $ (11,669) $ (8,456) Notes: * "Certain legal and professional services fees" includes legal fees and other related expenses outside the ordinary course of business, as well as fees and expenses related to merger and acquisition activities. ** "Asset Impairment" includes impairment charges related to property, plant and equipment, capitalized software and leased assets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation —The Company and its Chief Executive Officer and former Chief Financial Officer were named as defendants in a federal securities class action lawsuit filed on April 4, 2018 in the United States District Court for the Southern District of New York. The class includes persons who purchased the Company’s shares between May 4, 2016 and March 15, 2018. The plaintiff alleged that the Company made materially false and misleading statements regarding its contract with AT&T and the timing of revenue to be derived therefrom, and that as a result, class members suffered losses because Synacor shares traded at artificially inflated prices. The plaintiff sought an unspecified amount of damages, as well as interest, attorneys’ fees and legal expenses. On August 28, 2019, the court granted the Company’s motion to dismiss but permitted the plaintiff to seek leave to replead. The Clerk of the Court entered judgment in favor of the Company and the individual defendants and closed the case on November 19, 2019. Plaintiff filed its Notice of Appeal on December 16, 2019. The United States Court of Appeals for the Second Circuit affirmed the lower court’s decision to grant defendants’ motion to dismiss on October 22, 2020. The United States Court of Appeals for the Second Circuit will issue a mandate to officially close the class action by November 12, 2020. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can the Company reasonably estimate the potential loss, if any. Legal fees and liabilities related to this lawsuit are covered by our D&O insurance policy now that the Company has reached its deductible. In addition, the Company is, from time to time, party to litigation arising in the ordinary course of business. It does not believe that the outcome of these claims will have a material adverse effect on its consolidated financial position, results of operations or cash flows based on the status of proceedings at this time. However, these matters are subject to inherent uncertainties and the Company’s view of these matters may change in the future. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based CompensationThe Company has stock-based employee compensation plans for which compensation cost is recognized in its financial statements. The Company is authorized to grant key employees stock-based incentive awards, including options to purchase common stock, stock appreciation rights, restricted stock units ("RSUs"), performance stock units ("PSUs") or other stock units. The cost is measured at the grant date, based on the fair value of the award, determined using the Black-Scholes option pricing model, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award). The following table presents the weighted-average assumptions used to estimate the fair value of options granted during the periods indicated: Nine Months Ended Nine Months Ended Weighted average grant date fair value $ 0.87 $ 0.98 Expected dividend yield — % — % Expected stock price volatility 64 % 66 % Risk-free interest rate 1.9 % 2.3 % Expected life of options (in years) 5.75 5.95 Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Technology and development $ 50 $ 103 $ 163 $ 298 Sales and marketing 97 149 301 375 General and administrative 186 277 629 511 Total stock-based compensation expense $ 333 $ 529 $ 1,093 $ 1,184 Stock Option Activity – A summary of the stock option activity for the nine months ended September 30, 2020 is presented below: Number of Weighted Weighted Aggregate Outstanding at January 1, 2020 7,296,746 $ 2.48 Granted 83,600 1.50 Exercised — — Forfeited (158,014) 2.28 Expired (917,129) 2.81 Outstanding at September 30, 2020 6,305,203 $ 2.42 4.73 $ 43 Vested and expected to vest at September 30, 2020 6,291,366 $ 2.42 4.71 $ 41 Vested and exercisable at September 30, 2020 5,610,487 $ 2.47 4.33 $ 27 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 Global Market as of September 30, 2020 was $1.51 per share. The total intrinsic value of options exercised for the three and nine months ended September 30, 2020 was zero. The weighted average fair value of options granted during the nine months ended September 30, 2020 amounted to $0.87 per option share. As of September 30, 2020, the unrecognized compensation cost related to options granted, for which vesting is probable, and adjusted for estimated forfeitures, was approximately $0.7 million. This cost is expected to be recognized over a weighted-average remaining period of 1.78 years. RSU Activity —A summary of RSU activity for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Unvested—January 1, 2020 677,354 $ 1.54 Granted 1,196,205 1.17 Vested (432,760) 1.44 Forfeited (33,168) 1.58 Unvested—September 30, 2020 1,407,631 $ 1.26 As of September 30, 2020, total unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs was $1.5 million. This cost is expected to be recognized over a weighted-average remaining period of 2.44 years. PSU Activity — A summary of PSU activity for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Unvested—January 1, 2020 297,789 $ 1.36 Granted 336,100 1.21 Vested — — Forfeited (74,442) 1.36 Unvested—September 30, 2020 559,447 $ 1.27 During the three months ended September 30, 2020 certain employees were granted PSUs. These PSUs vest annually over four years from the grant date based on continuous service, with the number of shares earned dependent upon the Company's achievement of certain financial performance targets measured over the period from January 1, 2020 through December 31, 2023. The number of shares earned can range from 0% to 150% of the target award. As of September 30, 2020, total unrecognized compensation cost, adjusted for estimated forfeitures, related to PSUs was $0.4 million. This cost is expected to be recognized over a weighted-average remaining period of 3.83 years. |
Net Loss Per Common Share Data
Net Loss Per Common Share Data | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share Data | Net Loss Per Common Share Data Basic net loss per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net 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, warrants, 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 securities 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 Nine Months Ended 2020 2019 2020 2019 Anti-dilutive equity awards: Stock options 6,552,062 7,622,972 6,849,551 7,617,538 Restricted stock units 979,828 578,150 802,436 390,519 Performance based stock units 391,397 148,895 325,983 74,447 |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Principles (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [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. 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. The accompanying condensed consolidated balance sheet as of December 31, 2019 was derived from the audited financial statements as of that date, but does not include all the information and footnotes required by U.S. GAAP. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
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. Actual results could differ materially from these estimates and judgments. Many of our estimates require increased judgment due to the significant volatility, uncertainty and economic disruption of the recent global COVID-19 pandemic. We will continue to monitor the effects of the COVID-19 pandemic, and our estimates and judgments may change materially as new events occur or additional information becomes available to us. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-13 ("ASU 2016-13") Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes result in earlier recognition of credit losses. In November 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)", which defers the effective date for public filers that are considered small reporting companies, as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Company does not believe the impact of adopting this standard will be material to its consolidated financial statements and related disclosures. Recently Adopted In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting For Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirements for capitalizing implementation costs incurred for an internal-use software license. Adoption of this guidance is required for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and early adoption is permitted. The amendments will be applied prospectively to all implementation costs incurred after adoption. There was no impact to the Company's condensed consolidation financial statements for the three and nine months ended September 30, 2020 as a result of adopting this standard update on January 1, 2020. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on the Company’s financial statements and related disclosures. |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Principles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue | As of September 30, 2020 and December 31, 2019, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable as follows: Accounts Receivable September 30, 2020 December 31, 2019 Portal & Advertising Customer A * 13 % * - Less than 10% For the three and nine months ended September 30, 2020 and 2019, the Company had concentrations equal to or exceeding 10% of the Company’s revenue as follows: Revenue Three Months Ended Nine Months Ended 2020 2019 2020 2019 Google search 11 % * * 11 % Portal & Advertising Customer A * 13 % * 13 % * - Less than 10% For the three and nine months ended September 30, 2020 and 2019, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue: Cost of Revenue Three Months Ended Nine Months Ended 2020 2019 2020 2019 Portal & Advertising Customer B * 18 % * 26 % * - Less than 10% |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Timing of Revenue Recognition, Includes Reconciliation of Disaggregated Revenue by Reportable Segment | The following table provides information about disaggregated revenue for the three and nine months ended September 30, 2020 and 2019 by the timing of revenue recognition, and includes a reconciliation of the disaggregated revenue by reportable segment (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Software & Services Products and services transferred over time $ 8,139 $ 8,240 $ 24,532 $ 25,503 Products transferred at a point in time 1,977 2,851 7,561 7,334 Total Software & Services 10,116 11,091 32,093 32,837 Portal & Advertising Products and services transferred over time 554 1,274 2,659 3,982 Products transferred at a point in time 7,859 19,001 22,536 58,220 Total Portal & Advertising 8,413 20,275 25,195 62,202 Total Revenue $ 18,529 $ 31,366 $ 57,288 $ 95,039 |
Summary of Revenue Disaggregated by Geography Areas | Revenue disaggregated by geography, based on the billing address of our customer, consists of the following (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Revenue United States $ 13,077 $ 25,717 $ 41,044 $ 78,965 International 5,452 5,649 16,244 16,074 Total revenue $ 18,529 $ 31,366 $ 57,288 $ 95,039 |
Schedule of Contract with Customer, Asset and Liability | The changes in deferred revenue, inclusive of both current and long-term, are as follows (in thousands): Beginning balance - January 1, 2020 $ 8,875 Recognition of deferred revenue (7,646) Deferral of revenue 6,133 Effect of foreign currency translation 84 Ending balance - September 30, 2020 $ 7,446 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs, Lease Term and Discount Rate | The components of lease costs are as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets $ 628 $ 958 $ 2,609 $ 1,586 Interest 32 211 100 400 Operating lease cost 705 1,129 2,030 2,219 Total lease cost $ 1,365 $ 2,298 $ 4,739 $ 4,205 The lease term and discount rate are as follows: September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Operating leases 1.7 Years 2.0 Years Finance leases 2.1 Years 1.2 Years Weighted Average Discount Rate Operating leases 6.0 % 6.0 % Finance leases 3.7 % 5.0 % |
Schedule of Maturities of Operating Leases Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 644 $ 276 2021 2,180 1,070 2022 1,042 765 2023 441 328 2024 36 29 2025 — 3 Total undiscounted cash flows 4,343 2,471 Less imputed interest (280) (144) Present value of lease liabilities $ 4,063 $ 2,327 |
Schedule of Maturities of Finance Leases Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 644 $ 276 2021 2,180 1,070 2022 1,042 765 2023 441 328 2024 36 29 2025 — 3 Total undiscounted cash flows 4,343 2,471 Less imputed interest (280) (144) Present value of lease liabilities $ 4,063 $ 2,327 |
Schedule of Supplemental Cash Flow Leases | Supplemental cash flow information related to leases are as follows (in thousands): Nine Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,429 $ 2,324 Operating cash flows from finance leases $ 100 $ 400 Financing cash flows from finance leases $ 2,863 $ 1,586 Lease liabilities arising from obtaining right-of-use-assets: Operating leases $ 1,010 $ 64 Finance leases $ 1,675 $ 1,925 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2020 are as follows (in thousands): Software & Services Portal & Advertising Total December 31, 2019 $ 11,804 $ 4,144 $ 15,948 Effect of foreign currency translation (5) — (5) September 30, 2020 $ 11,799 $ 4,144 $ 15,943 |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Customer and publisher relationships $ 14,780 $ 14,780 Technology 2,330 2,330 Trademark 300 300 Intangible assets, gross 17,410 17,410 Less accumulated amortization (10,590) (8,999) Intangible assets, net $ 6,820 $ 8,411 |
Property and Equipment - Net (T
Property and Equipment - Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following (in thousands): September 30, 2020 December 31, 2019 Computer equipment $ 26,959 $ 25,392 Computer software 33,236 31,037 Furniture and fixtures 913 1,315 Leasehold improvements 882 1,116 Work in process (primarily software development costs) 19 187 Other 172 136 Property and equipment, gross 62,181 59,183 Less accumulated depreciation (49,989) (44,235) Property and equipment, net $ 12,192 $ 14,948 |
Schedule of Long Lived Tangible Assets by Geographic Area | The following table sets forth long-lived tangible assets by geographic area (in thousands): September 30, 2020 December 31, 2019 Long-lived tangible assets: United States $ 12,009 $ 14,629 International 183 319 Total long-lived tangible assets $ 12,192 $ 14,948 |
Schedule of Impaired Intangible Assets | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Computer equipment $ 27 $ 2 $ 27 $ 2 Computer software — 1,331 — 1,557 Furniture and fixtures 57 102 57 102 Leasehold improvements 32 90 32 90 Work in process (primarily software development costs) 102 — 102 — Total $ 218 $ 1,525 $ 218 $ 1,751 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Accrued compensation $ 1,686 $ 4,209 Accrued content fees and other costs of revenue 249 151 Accrued taxes 544 192 Accrued royalties and rebates 717 930 Other 529 396 Total $ 3,725 $ 5,878 |
Schedule of Accrued Liabilities | The below table summarizes the activity in the accrued severance account (in thousands). 2020 Balance at beginning of the year $ 56 Charged to expense 990 Cash payments related to 2019 plan (56) Cash payments related to 2020 plan (667) Balance at end of period $ 323 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Companies Reportable Segments | The tables below summarize the financial information for the Company’s reportable segments for the three and nine months ended September 30, 2020 and 2019 (in thousands). The “Corporate Unallocated Expenses” category, as it relates to Segment Adjusted EBITDA, primarily includes corporate overhead costs, such as rent, payroll and related benefit costs and professional services which are not directly attributable to any individual segment. Three Months Ended Nine Months Ended Revenue Cost of revenue (1) Segment Adjusted Revenue Cost of revenue (1) Segment Adjusted Software & Services $ 10,116 $ 4,092 $ 2,890 $ 32,093 $ 10,613 $ 10,136 Portal & Advertising 8,413 6,311 588 25,195 19,555 (56) Corporate Unallocated Expenses — — (2,489) — — (8,323) Total Company $ 18,529 $ 10,403 $ 989 $ 57,288 $ 30,168 $ 1,757 Three Months Ended Nine Months Ended Revenue Cost of revenue (1) Segment Adjusted Revenue Cost of revenue (1) Segment Adjusted Software & Services $ 11,091 $ 2,864 $ 3,378 $ 32,837 $ 9,602 $ 8,966 Portal & Advertising 20,275 12,770 2,881 62,202 39,690 8,036 Corporate Unallocated Expenses — — (3,519) — — (10,943) Total Company $ 31,366 $ 15,634 $ 2,740 $ 95,039 $ 49,292 $ 6,059 Notes: (1) Exclusive of depreciation and amortization shown separately on the condensed consolidated statements of operations |
Reconciliation of Total Segment Adjusted EBITDA to Net Loss | The following table reconciles total Segment Adjusted EBITDA to Net loss (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Total Segment Adjusted EBITDA $ 989 $ 2,740 $ 1,757 $ 6,059 Less: Provision for income taxes (203) (207) (736) (757) Interest expense (37) (80) (146) (199) Other (expense) income, net (124) 101 218 110 Depreciation and amortization (2,562) (3,036) (8,059) (8,509) Asset impairment** (687) (1,525) (687) (1,751) Stock-based compensation expense (333) (529) (1,093) (1,184) Restructuring costs (1,099) (819) (1,219) (819) Certain legal and professional services fees* 94 (370) (1,704) (1,406) Net loss $ (3,962) $ (3,725) $ (11,669) $ (8,456) Notes: * "Certain legal and professional services fees" includes legal fees and other related expenses outside the ordinary course of business, as well as fees and expenses related to merger and acquisition activities. ** "Asset Impairment" includes impairment charges related to property, plant and equipment, capitalized software and leased assets. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Assumptions Used to Estimate the Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the fair value of options granted during the periods indicated: Nine Months Ended Nine Months Ended Weighted average grant date fair value $ 0.87 $ 0.98 Expected dividend yield — % — % Expected stock price volatility 64 % 66 % Risk-free interest rate 1.9 % 2.3 % Expected life of options (in years) 5.75 5.95 |
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 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Technology and development $ 50 $ 103 $ 163 $ 298 Sales and marketing 97 149 301 375 General and administrative 186 277 629 511 Total stock-based compensation expense $ 333 $ 529 $ 1,093 $ 1,184 |
Summary of Stock Option Activity | Stock Option Activity – A summary of the stock option activity for the nine months ended September 30, 2020 is presented below: Number of Weighted Weighted Aggregate Outstanding at January 1, 2020 7,296,746 $ 2.48 Granted 83,600 1.50 Exercised — — Forfeited (158,014) 2.28 Expired (917,129) 2.81 Outstanding at September 30, 2020 6,305,203 $ 2.42 4.73 $ 43 Vested and expected to vest at September 30, 2020 6,291,366 $ 2.42 4.71 $ 41 Vested and exercisable at September 30, 2020 5,610,487 $ 2.47 4.33 $ 27 |
Summary of RSU Activity | RSU Activity —A summary of RSU activity for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Unvested—January 1, 2020 677,354 $ 1.54 Granted 1,196,205 1.17 Vested (432,760) 1.44 Forfeited (33,168) 1.58 Unvested—September 30, 2020 1,407,631 $ 1.26 |
Summary of PSU Activity | PSU Activity — A summary of PSU activity for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Unvested—January 1, 2020 297,789 $ 1.36 Granted 336,100 1.21 Vested — — Forfeited (74,442) 1.36 Unvested—September 30, 2020 559,447 $ 1.27 |
Net Loss Per Common Share Data
Net Loss Per Common Share Data (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Securities Excluded from Calculation of Diluted Net Loss Per Share | The following securities 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 Nine Months Ended 2020 2019 2020 2019 Anti-dilutive equity awards: Stock options 6,552,062 7,622,972 6,849,551 7,617,538 Restricted stock units 979,828 578,150 802,436 390,519 Performance based stock units 391,397 148,895 325,983 74,447 |
The Company and Summary of Si_4
The Company and Summary of Significant Accounting Principles - Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | |
Credit Concentration Risk | Accounts Receivable | Portal & Advertising Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.00% | |||
Customer Concentration Risk | Revenue | Google search | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 11.00% | ||
Customer Concentration Risk | Revenue | Portal & Advertising Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.00% | 13.00% | ||
Customer Concentration Risk | Cost of Revenue | Portal & Advertising Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 18.00% | 26.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Timing of Revenue Recognition, Includes Reconciliation of Disaggregated by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 18,529 | $ 31,366 | $ 57,288 | $ 95,039 |
Software & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,116 | 11,091 | 32,093 | 32,837 |
Software & Services | Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,139 | 8,240 | 24,532 | 25,503 |
Software & Services | Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,977 | 2,851 | 7,561 | 7,334 |
Portal & Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,413 | 20,275 | 25,195 | 62,202 |
Portal & Advertising | Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 554 | 1,274 | 2,659 | 3,982 |
Portal & Advertising | Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 7,859 | $ 19,001 | $ 22,536 | $ 58,220 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 18,529 | $ 31,366 | $ 57,288 | $ 95,039 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 13,077 | 25,717 | 41,044 | 78,965 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 5,452 | $ 5,649 | $ 16,244 | $ 16,074 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Changes in Deferred Revenue, Inclusive of Both Current and Long-term (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Beginning balance | $ 8,875 |
Recognition of deferred revenue | (7,646) |
Deferral of revenue | 6,133 |
Effect of foreign currency translation | 84 |
Ending balance | $ 7,446 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations - Additional Information (Details) | Sep. 30, 2020 |
Maintenance and Support Contracts for Email Software Licenses | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 628 | $ 958 | $ 2,609 | $ 1,586 |
Interest | 32 | 211 | 100 | 400 |
Operating lease cost | 705 | 1,129 | 2,030 | 2,219 |
Total lease cost | $ 1,365 | $ 2,298 | $ 4,739 | $ 4,205 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating leases | 1 year 8 months 12 days | 2 years |
Weighted average remaining lease term, finance leases | 2 years 1 month 6 days | 1 year 2 months 12 days |
Weighted average discount rate, operating leases | 6.00% | 6.00% |
Weighted average discount rate, finance leases | 3.70% | 5.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating and Finance Leases Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Leases | |
The remainder of 2020 | $ 644 |
2021 | 2,180 |
2022 | 1,042 |
2023 | 441 |
2024 | 36 |
2025 | 0 |
Total undiscounted cash flows | 4,343 |
Less imputed interest | (280) |
Present value of lease liabilities | 4,063 |
Finance Leases | |
The remainder of 2020 | 276 |
2021 | 1,070 |
2022 | 765 |
2023 | 328 |
2024 | 29 |
2025 | 3 |
Total undiscounted cash flows | 2,471 |
Less imputed interest | (144) |
Present value of lease liabilities | $ 2,327 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,429 | $ 2,324 |
Operating cash flows from finance leases | 100 | 400 |
Financing cash flows from finance leases | 2,863 | 1,586 |
Lease liabilities arising from obtaining right-of-use-assets: | ||
Operating leases | 1,010 | 64 |
Finance leases | $ 1,675 | $ 1,925 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease, impairment loss | $ 500,000 | $ 0 | $ 500,000 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 15,948 |
Effect of foreign currency translation | (5) |
Ending balance | 15,943 |
Software & Services | |
Goodwill [Roll Forward] | |
Beginning balance | 11,804 |
Effect of foreign currency translation | (5) |
Ending balance | 11,799 |
Portal & Advertising | |
Goodwill [Roll Forward] | |
Beginning balance | 4,144 |
Effect of foreign currency translation | 0 |
Ending balance | $ 4,144 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment loss | $ 0 | $ 0 | ||
Accumulated impairment losses | 0 | 0 | ||
Amortization of intangible assets | $ 500,000 | $ 500,000 | $ 1,600,000 | $ 1,600,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 17,410 | $ 17,410 |
Less accumulated amortization | (10,590) | (8,999) |
Intangible assets, net | 6,820 | 8,411 |
Customer and publisher relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 14,780 | 14,780 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 2,330 | 2,330 |
Trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 300 | $ 300 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization of Acquired Intangibles (Details) $ in Millions | Sep. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Future amortization expenses, 2020 | $ 0.6 |
Future amortization expenses, 2021 | 1.4 |
Future amortization expenses, 2022 | 1.3 |
Future amortization expenses, 2023 | 1.3 |
Future amortization expenses, 2024 | 1.3 |
Future amortization expenses, thereafter | $ 0.9 |
Property and Equipment - Net -
Property and Equipment - Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 62,181 | $ 59,183 |
Less accumulated depreciation | (49,989) | (44,235) |
Property and equipment, net | 12,192 | 14,948 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 26,959 | 25,392 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 33,236 | 31,037 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 913 | 1,315 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 882 | 1,116 |
Work in process (primarily software development costs) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19 | 187 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 172 | $ 136 |
Property and Equipment - Net _2
Property and Equipment - Net - Schedule of Impaired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Impairment charge on reclassified assets | $ 218 | $ 1,525 | $ 218 | $ 1,751 |
Computer equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge on reclassified assets | 27 | 2 | 27 | 2 |
Computer software | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge on reclassified assets | 0 | 1,331 | 0 | 1,557 |
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge on reclassified assets | 57 | 102 | 57 | 102 |
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge on reclassified assets | 32 | 90 | 32 | 90 |
Work in process (primarily software development costs) | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge on reclassified assets | $ 102 | $ 0 | $ 102 | $ 0 |
Property and Equipment - Net _3
Property and Equipment - Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 2,000 | $ 2,100 | $ 6,500 | $ 6,500 | |
Accumulated depreciation | 49,989 | 49,989 | $ 44,235 | ||
Software Development for Internal Use | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized costs | 300 | 400 | 1,000 | 1,900 | |
Software Development for Sale or License | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized costs | 300 | 400 | 1,100 | ||
Software Development for Sale or License | Depreciation and Amortization | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization costs sale or license | 600 | 400 | 1,600 | 900 | |
Software Capitalized for Internal Use | Depreciation and Amortization | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization costs sale or license | 600 | $ 1,000 | 1,900 | $ 3,500 | |
Computer Equipment and Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 12,500 | 12,500 | 10,800 | ||
Accumulated depreciation | $ 8,500 | $ 8,500 | $ 6,200 |
Property and Equipment - Net _4
Property and Equipment - Net - Schedule of Long Lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | $ 12,192 | $ 14,948 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 12,009 | 14,629 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | $ 183 | $ 319 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued compensation | $ 1,686 | $ 4,209 |
Accrued content fees and other costs of revenue | 249 | 151 |
Accrued taxes | 544 | 192 |
Accrued royalties and rebates | 717 | 930 |
Other | 529 | 396 |
Accrued expenses and other current liabilities | $ 3,725 | $ 5,878 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities- Additional Information (Details) $ in Thousands | Aug. 04, 2020employee | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019employee |
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees in workforce reduction | employee | 25 | 50 | ||||
Severance costs | $ 990 | |||||
Sales and marketing | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 400 | $ 200 | ||||
Technology and development | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 600 | $ 400 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Severance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Severance reserve, beginning balance | $ 56 | |||
Severance costs | 990 | |||
Severance reserve, ending balance | $ 323 | 323 | ||
Sales and marketing | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance costs | $ 400 | $ 200 | ||
Technology and development | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance costs | 600 | $ 400 | ||
2019 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Payments for severance | (56) | |||
2020 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Payments for severance | $ (667) |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment Information - Summary o
Segment Information - Summary of Financial Information for Companies Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 18,529 | $ 31,366 | $ 57,288 | $ 95,039 |
Cost of revenue | 10,403 | 15,634 | 30,168 | 49,292 |
Segment Adjusted EBITDA | 989 | 2,740 | 1,757 | 6,059 |
Software & Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10,116 | 11,091 | 32,093 | 32,837 |
Portal & Advertising | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,413 | 20,275 | 25,195 | 62,202 |
Operating Segments | Software & Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10,116 | 11,091 | 32,093 | 32,837 |
Cost of revenue | 4,092 | 2,864 | 10,613 | 9,602 |
Segment Adjusted EBITDA | 2,890 | 3,378 | 10,136 | 8,966 |
Operating Segments | Portal & Advertising | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,413 | 20,275 | 25,195 | 62,202 |
Cost of revenue | 6,311 | 12,770 | 19,555 | 39,690 |
Segment Adjusted EBITDA | 588 | 2,881 | (56) | 8,036 |
Corporate Unallocated Expenses | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ (2,489) | $ (3,519) | $ (8,323) | $ (10,943) |
Segment Information - Reconcili
Segment Information - Reconciliation of Total Segment Adjusted EBITDA to Net Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Total Segment Adjusted EBITDA | $ 989 | $ 2,740 | $ 1,757 | $ 6,059 |
Provision for income taxes | (203) | (207) | (736) | (757) |
Interest expense | (37) | (80) | (146) | (199) |
Other (expense) income, net | (124) | 101 | 218 | 110 |
Depreciation and amortization | (2,562) | (3,036) | (8,059) | (8,509) |
Asset impairment** | (687) | (1,525) | (687) | (1,751) |
Stock-based compensation expense | (333) | (529) | (1,093) | (1,184) |
Restructuring costs | (1,099) | (819) | (1,219) | (819) |
Certain legal and professional services fees | 94 | (370) | (1,704) | (1,406) |
Net loss | $ (3,962) | $ (3,725) | $ (11,669) | $ (8,456) |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted average grant date fair value (in dollars per share) | $ 0.87 | $ 0.98 |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Expected stock price volatility (as a percent) | 64.00% | 66.00% |
Risk-free interest rate | 1.90% | 2.30% |
Expected life of options (in years) | 5 years 9 months | 5 years 11 months 12 days |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Total Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 333 | $ 529 | $ 1,093 | $ 1,184 |
Technology and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 50 | 103 | 163 | 298 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 97 | 149 | 301 | 375 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 186 | $ 277 | $ 629 | $ 511 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 7,296,746 |
Granted (in shares) | shares | 83,600 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | (158,014) |
Expired (in shares) | shares | (917,129) |
Outstanding at end of period (in shares) | shares | 6,305,203 |
Vested and expected to vest at end of period (in shares) | shares | 6,291,366 |
Vested and exercisable at end of period (in shares) | shares | 5,610,487 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 2.48 |
Granted (in dollars per share) | $ / shares | 1.50 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 2.28 |
Expired (in dollars per share) | $ / shares | 2.81 |
Outstanding at end of period (in dollars per share) | $ / shares | 2.42 |
Vested and expected to vest at end of period (in dollars per share) | $ / shares | 2.42 |
Vested and exercisable at end of period (in dollars per share) | $ / shares | $ 2.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |
Weighted average remaining contractual term (in years), outstanding | 4 years 8 months 23 days |
Weighted average remaining contractual term (in years), vested and expected to vest | 4 years 8 months 15 days |
Weighted average remaining contractual term (in years), vested and exercisable | 4 years 3 months 29 days |
Aggregate intrinsic value, outstanding | $ | $ 43 |
Aggregate intrinsic value, vested and expected to vest | $ | 41 |
Aggregate intrinsic value, vested and exercisable | $ | $ 27 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing stock price as reported on the Nasdaq (in dollars per share) | $ 1.51 | $ 1.51 | |
Weighted average fair value of options granted (in dollars per share) | $ 0.87 | $ 0.98 | |
Unrecognized compensation cost related to options granted after adjustment for estimated forfeitures | $ 0.7 | $ 0.7 | |
Expected weighted average remaining period to recognize total unrecognized compensation cost | 1 year 9 months 10 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target award percentage | 0.00% | 0.00% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target award percentage | 150.00% | 150.00% | |
RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted average remaining period to recognize total unrecognized compensation cost | 2 years 5 months 8 days | ||
Total unrecognized compensation cost, adjusted for estimated forfeitures for awards excluding option | $ 1.5 | $ 1.5 | |
PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted average remaining period to recognize total unrecognized compensation cost | 3 years 9 months 29 days | ||
Total unrecognized compensation cost, adjusted for estimated forfeitures for awards excluding option | $ 0.4 | $ 0.4 | |
Award vesting period | 4 years |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of RSU Activity (Details) - RSU | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 677,354 |
Granted (in shares) | shares | 1,196,205 |
Vested (in shares) | shares | (432,760) |
Forfeited (in shares) | shares | (33,168) |
Unvested at end of period (in shares) | shares | 1,407,631 |
Weighted Average Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 1.54 |
Granted (in dollars per share) | $ / shares | 1.17 |
Vested (in dollars per share) | $ / shares | 1.44 |
Forfeited (in dollars per share) | $ / shares | 1.58 |
Unvested at end of period (in dollars per share) | $ / shares | $ 1.26 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of PSU Activity (Details) - PSU | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 297,789 |
Granted (in shares) | shares | 336,100 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (74,442) |
Unvested at end of period (in shares) | shares | 559,447 |
Weighted Average Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 1.36 |
Granted (in dollars per share) | $ / shares | 1.21 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 1.36 |
Unvested at end of period (in dollars per share) | $ / shares | $ 1.27 |
Net Loss Per Common Share Dat_2
Net Loss Per Common Share Data - Schedule of Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive equity awards (in shares) | 6,552,062 | 7,622,972 | 6,849,551 | 7,617,538 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive equity awards (in shares) | 979,828 | 578,150 | 802,436 | 390,519 |
Performance based stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive equity awards (in shares) | 391,397 | 148,895 | 325,983 | 74,447 |