Synacor 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 09, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	SYNC
Entity Registrant Name	Synacor, Inc.
Entity Central Index Key	1,408,278
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		38,019,005

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 11,261	$ 14,315
Accounts receivable, net of allowance of $270 and $263, respectively	17,235	27,386
Prepaid expenses and other current assets	5,117	4,862
Total current assets	33,613	46,563
PROPERTY AND EQUIPMENT, net	14,895	14,406
GOODWILL	15,944	15,943
INTANGIBLE ASSETS, net	14,301	14,837
OTHER LONG-TERM ASSETS	1,753	1,650
Total assets	80,506	93,399
CURRENT LIABILITIES:
Accounts payable	15,040	18,769
Accrued expenses and other current liabilities	7,714	11,684
Current portion of deferred revenue	12,157	12,149
Current portion of capital lease obligations	1,158	982
Total current liabilities	36,069	43,584
LONG-TERM PORTION OF CAPITAL LEASE OBLIGATIONS	1,040	1,014
LONG-TERM DEBT	5,000	5,000
DEFERRED REVENUE	3,957	3,917
OTHER LONG-TERM LIABILITIES	410	235
Total liabilities	46,476	53,750
COMMITMENTS AND CONTINGENCIES (Note 7)
STOCKHOLDERS’ EQUITY:
Preferred stock – par value $0.01 per share; authorized 10,000,000 shares; none issued
Common stock – par value $0.01 per share; authorized 100,000,000 shares; 32,567,787 shares issued and 31,822,300 shares outstanding at March 31, 2017 and 31,626,635 shares issued and 30,881,148 shares outstanding at December 31, 2016	325	316
Treasury stock – at cost, 745,487 shares at March 31, 2017 and December 31, 2016	(1,547)	(1,547)
Additional paid-in capital	118,730	117,747
Accumulated deficit	(83,506)	(76,850)
Accumulated other comprehensive income (loss)	28	(17)
Total stockholders’ equity	34,030	39,649
Total liabilities and stockholders’ equity	$ 80,506	$ 93,399

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 270	$ 263
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	32,567,787	31,626,635
Common stock, shares outstanding	31,822,300	30,881,148
Treasury stock, shares	745,487	745,487

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
REVENUE	$ 26,540	$ 30,260
COSTS AND OPERATING EXPENSES:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	12,562	12,972
Technology and development (exclusive of depreciation and amortization shown separately below)	7,298	5,873
Sales and marketing	6,661	5,650
General and administrative (exclusive of depreciation and amortization shown separately below)	3,964	5,022
Depreciation and amortization	2,184	2,098
Total costs and operating expenses	32,669	31,615
LOSS FROM OPERATIONS	(6,129)	(1,355)
OTHER INCOME	6	2
INTEREST EXPENSE	(87)	(68)
LOSS BEFORE INCOME TAXES	(6,210)	(1,421)
INCOME TAX PROVISION	446	144
NET LOSS	$ (6,656)	$ (1,565)
NET LOSS PER SHARE:
Basic	$ (0.21)	$ (0.05)
Diluted	$ (0.21)	$ (0.05)
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET LOSS PER SHARE:
Basic	31,045,488	29,992,248
Diluted	31,045,488	29,992,248

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (6,656)	$ (1,565)
Other comprehensive income:
Changes in foreign currency translation adjustment	45	56
Comprehensive loss	$ (6,611)	$ (1,509)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (6,656)	$ (1,565)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization	2,184	2,098
Stock-based compensation expense	647	737
Provision for deferred income taxes	200
Increase in estimated value of contingent consideration	107
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable, net	10,151	2,883
Prepaid expenses and other assets	(342)	(1,039)
Accounts payable	(3,771)	2,252
Accrued expenses and other liabilities	(3,535)	(1,766)
Deferred revenue	48	248
Net cash (used in) provided by operating activities	(967)	3,848
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition		(2,500)
Purchases of property and equipment	(1,515)	(937)
Net cash used in investing activities	(1,515)	(3,437)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on capital lease obligations	(319)	(386)
Proceeds from exercise of common stock options	308	10
Deferred acquisition payment	(567)
Net cash used in financing activities	(578)	(376)
Effect of exchange rate changes on cash and cash equivalents	6	16
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(3,054)	51
Cash and cash equivalents, beginning of period	14,315	15,697
Cash and cash equivalents, end of period	11,261	15,748
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	69	68
Cash paid for income taxes	192
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Liability for estimated additional acquisition consideration		567
Property, equipment and service center contracts financed under capital lease	521	52
Accrued property and equipment expenditures	269	41
Stock-based compensation capitalized to property and equipment	$ 37	$ 30

The Company and Summary of Sign

The Company and Summary of Significant Accounting Principles	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company and Summary of Significant Accounting Principles	1. The Company and Summary of Significant Accounting Principles Synacor, Inc., together with its consolidated subsidiaries (collectively, the “Company” or “Synacor”), is the trusted technology development, multiplatform services and revenue partner for video, internet and communications providers, device manufacturers, governments and enterprises. Synacor enables its customers to provide their consumers engaging, multiscreen experiences and advertising to their consumers that require scale, actionable data and sophisticated implementation. Basis of Presentation — The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. 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, 2016 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, 2016. Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts. Concentrations of Risk — As of March 31, 2017, two customers had outstanding balances due to the Company of 10% or more of the Company’s accounts receivable. These two customers, Google and an advertising customer, had outstanding balances amounting to 14% and 10%, respectively, of the Company’s total accounts receivable at March 31, 2017. As of December 31, 2016, the Company had no customers whose outstanding balance due to the Company equaled or exceeded 10% or more of the Company’s total accounts receivable. For the three months ended March 31, 2017 and 2016, the Company had one customer, Google, which accounted for 10% or more of the Company’s revenue. Revenue from Google represented 11% and 17% of the Company’s total revenue for the three months ended March 31, 2017 and 2016, respectively. For the three months ended March 31, 2017 and 2016, 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 March 31, 2017 2016 Customer A 19 % 29 % Customer B * 12 % * - Less than 10% Recent Accounting Pronouncements — Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (ASU 2014-09), Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, The Company is currently in the process of assessing the financial impact of adopting these ASUs and the methods of adoption. The Company currently recognizes subscription revenue from its Email/Collaboration contracts, which is included within recurring and fee-based revenue, over the life of the contracts (which are typically six months or longer). The Company has tentatively concluded that it is likely that this new guidance will require it to recognize a portion of the revenue from those contracts upon delivery, at the inception of the contracts, which would have the effect of accelerating recognition of revenue on such contracts, and may have a material impact on the Company’s consolidated financial statements. The standard will be effective for the Company beginning January 1, 2018. The Company anticipates adopting the standard as of its effective date of January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company has not yet determined which transition method it will use. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2016, the FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Recently Adopted In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350)

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Acquisitions	2. Acquisitions In August 2015, the Company and Zimbra, Inc. (now known as “TZ Holdings”) entered into an agreement under which the Company acquired certain assets relating to TZ Holdings’ email/collaboration products and services business, including certain of its wholly-owned foreign subsidiaries, for cash consideration of $17.3 million, 2.4 million shares of common stock and warrants to purchase 480,000 shares of common stock (collectively valued at $3.2 million). The Company held back an additional 600,000 shares of common stock and warrants to purchase an additional 120,000 shares of common stock (collectively valued at $0.8 million) to secure TZ Holdings’ indemnification obligations including pending claims. The held back common shares and warrants were released to TZ holdings in March 2017. These warrants expire on September 14, 2018. Additionally, TZ Holdings was eligible to receive cash consideration of up to $2.0 million (the “Earn-Out Consideration”) upon the satisfaction of certain business performance milestones following the closing of the transaction, subject to and contingent upon any reduction to satisfy indemnification claims including pending claims. The acquisition date fair value of this contingent consideration was estimated to be $1.6 million. The Company paid $0.9 million of the earn-out consideration to TZ Holdings in November 2016, and paid $0.7 million subsequent to March, 31 2017. The amount paid subsequent to March 31, 2017 is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet as of March 31, 2017. In connection with the Company’s February 2016 acquisition of Technorati , the Company withheld $0.5 million of the purchase price to secure Technorati’s indemnification obligations under the Asset Purchase Agreement, and the Company owed approximately $0.1 million in post-closing working capital adjustments. These amounts were paid in the three months ended March 31, 2017.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	3. Goodwill and Other Intangible Assets The change in goodwill is as follows for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Balance – beginning of period $ 15,943 $ 15,187 Acquisition of Technorati — 751 Effect of foreign currency translation 1 11 Balance – end of period $ 15,944 $ 15,949 Intangible assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Customer and publisher relationships $ 14,780 $ 14,780 Technology 2,330 2,330 Trademark 300 300 17,410 17,410 Less accumulated amortization (3,109 ) (2,573 ) Intangible assets, net $ 14,301 $ 14,837 Amortization of intangible assets totaled $0.5 million for the three months ended March 31, 2017, and $0.5 million for the three months ended March 31, 2016.

Property and Equipment - Net

Property and Equipment - Net	3 Months Ended
	Mar. 31, 2017
Property Plant And Equipment [Abstract]
Property and Equipment - Net	4. Property and Equipment – Net Property and equipment, net consisted of the following (in thousands): March 31, 2017 December 31, 2016 Computer equipment (1) $ 23,599 $ 23,438 Computer software 15,198 15,198 Furniture and fixtures 2,075 2,062 Leasehold improvements 1,423 1,463 Work in process (primarily software development costs) 6,542 4,572 Other 255 249 49,092 46,982 Less accumulated depreciation (2) (34,197 ) (32,576 ) Property and equipment, net $ 14,895 $ 14,406 Notes: (1) Includes equipment and software held under capital leases of $5.7 million and $5.2 million as of March 31, 2017 and December 31, 2016, respectively. (2) Includes $3.7 million and $3.4 million of accumulated depreciation of equipment under capital leases as of March 31, 2017 and December 31, 2016, respectively. Depreciation expense for the three months ended March 31, 2017 and 2016 was $1.6 million and $1.6 million, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2017
Payables And Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued compensation $ 3,583 $ 6,860 Accrued content fees 886 1,788 Accrued business acquisition consideration 733 1,193 Other 2,512 1,843 Total $ 7,714 $ 11,684

Information About Segment and G

Information About Segment and Geographic Areas	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Information About Segment and Geographic Areas	6. Information About Segment and Geographic Areas Operating segments are components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a total company basis, accompanied by information about revenue by major service line for purposes of allocating resources and evaluating financial performance. Profitability measures by service line are not prepared or used. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the company level. Accordingly, the Company has determined that it has a single reporting segment and operating unit structure. The following tables set forth revenue and long-lived tangible assets by geographic area (in thousands): Three Months Ended March 31, 2017 2016 Revenue: United States $ 21,668 $ 26,464 International 4,872 3,796 Total revenue $ 26,540 $ 30,260 March 31, 2017 December 31, 2016 Long-lived tangible assets: United States $ 14,006 $ 13,519 Canada 578 573 Other international 311 314 Total long-lived tangible assets $ 14,895 $ 14,406

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Contract Commitments — The Company is obligated to make payments under various contracts with vendors and other business partners, principally for revenue-share and content arrangements. Contract commitments as of March 31, 2017 total $0.6 million for the remaining nine months of 2017. Litigation — From time to time, the Company is a party to legal actions. In the opinion of management, the outcome of these matters is not expected to have a material impact on the consolidated financial statements of the Company.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	8. Stock-based Compensation The Company has stock-based employee compensation plans for which compensation cost is recognized in its financial statements. 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). No income tax deduction is allowed for incentive stock options (“ISOs”). Accordingly, no deferred income tax asset is recorded for the potential tax deduction related to these options. Expense related to stock option grants of non-qualified stock options (“NSOs”) results in a temporary difference, which gives rise to a deferred tax asset. Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands): Three Months Ended March 31, 2017 2016 Technology and development $ 208 $ 241 Sales and marketing 168 223 General and administrative 271 273 Total stock-based compensation expense $ 647 $ 737 Stock Option Activity – A summary of the stock option activity for the three months ended March 31, 2017 is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 8,756,174 $ 2.53 Granted 1,096,000 $ 3.15 Exercised (249,684 ) $ 1.24 Forfeited or expired (55,013 ) $ 1.95 Outstanding at March 31, 2017 9,547,477 $ 2.64 7.11 $ 15,589 Vested and expected to vest at March 31, 2017 9,106,416 $ 2.64 7.02 $ 14,882 Vested and exercisable at March 31, 2017 5,056,071 $ 2.82 5.68 $ 7,887 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 March 31, 2017 was $4.15 per share. The total intrinsic value of options exercised for the three months ended March 31, 2017 was $0.5 million. The weighted average fair value of options issued during the three months ended March 31, 2017 amounted to $1.56 per option share. As of March 31, 2017, the unrecognized compensation cost related to non-vested options granted, for which vesting is probable, and adjusted for estimated forfeitures, was approximately $5.3 million. This cost is expected to be recognized over a weighted-average period of 2.8 years. The total fair value of shares vested was $0.5 million for the three months ended March 31, 2017. In addition, the Company may, from time to time, grant Restricted Stock Units (“RSUs”) to its employees. For the three months ended March 31, 2017 no RSUs were granted, released or forfeited.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share Data	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share Data	9. Net Income (Loss) Per Common Share Data Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, and to a lesser extent, shares issuable upon the release of RSUs. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method. Stock options, warrants and Restricted Stock Units are not included in the calculation of diluted net loss per share for the three months ended March 31, 2017 and 2016 because the Company had a net loss for those periods. The inclusion of these equity awards would have had an antidilutive effect on the calculation of diluted loss per share. As such, the Company’s calculations of basic and diluted net loss per share are identical. The following table presents the calculation of basic and diluted net loss per share for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Basic and diluted net loss per share: Numerator: Net loss (in thousands) $ (6,656 ) $ (1,565 ) Denominator: Weighted average common shares outstanding 31,045,488 29,992,248 Basic and diluted net loss per share $ (0.21 ) $ (0.05 ) The following equivalent shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2017 2016 Anti-dilutive equity awards: Stock options and Restricted Stock Units 9,857,366 9,910,649 Warrants 600,000 480,000

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Event	10. Subsequent Event In April 2017, the Company completed an underwritten public offering (the “Offering”) of its common stock in which it sold 5,715,000 shares at a price of $3.50 per share. Subsequently, in May 2017, and as part of the Offering, the Company completed the sale of 472,846 additional shares of its common stock at the same price upon the exercise of the underwriters’ over-allotment option, for a total of 6,187,846 shares. The Offering resulted in total net proceeds of approximately $20.1 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

The Company and Summary of Si17

The Company and Summary of Significant Accounting Principles (Policies)	3 Months Ended
	Mar. 31, 2017
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, 2016 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, 2016.
Accounting Estimates	Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts.
Concentrations of Risk	Concentrations of Risk — As of March 31, 2017, two customers had outstanding balances due to the Company of 10% or more of the Company’s accounts receivable. These two customers, Google and an advertising customer, had outstanding balances amounting to 14% and 10%, respectively, of the Company’s total accounts receivable at March 31, 2017. As of December 31, 2016, the Company had no customers whose outstanding balance due to the Company equaled or exceeded 10% or more of the Company’s total accounts receivable. For the three months ended March 31, 2017 and 2016, the Company had one customer, Google, which accounted for 10% or more of the Company’s revenue. Revenue from Google represented 11% and 17% of the Company’s total revenue for the three months ended March 31, 2017 and 2016, respectively. For the three months ended March 31, 2017 and 2016, 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 March 31, 2017 2016 Customer A 19 % 29 % Customer B * 12 % * - Less than 10%
Recent Accounting Pronouncements	Recent Accounting Pronouncements — Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (ASU 2014-09), Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, The Company is currently in the process of assessing the financial impact of adopting these ASUs and the methods of adoption. The Company currently recognizes subscription revenue from its Email/Collaboration contracts, which is included within recurring and fee-based revenue, over the life of the contracts (which are typically six months or longer). The Company has tentatively concluded that it is likely that this new guidance will require it to recognize a portion of the revenue from those contracts upon delivery, at the inception of the contracts, which would have the effect of accelerating recognition of revenue on such contracts, and may have a material impact on the Company’s consolidated financial statements. The standard will be effective for the Company beginning January 1, 2018. The Company anticipates adopting the standard as of its effective date of January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company has not yet determined which transition method it will use. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2016, the FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Recently Adopted In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350)

The Company and Summary of Si18

The Company and Summary of Significant Accounting Principles (Tables)	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Concentrations Equal to or Exceeding 10% of Company's Revenue, and Cost of Revenue	For the three months ended March 31, 2017 and 2016, 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 March 31, 2017 2016 Customer A 19 % 29 % Customer B * 12 % * - Less than 10%

Goodwill and Other Intangible19

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Change in Goodwill	The change in goodwill is as follows for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Balance – beginning of period $ 15,943 $ 15,187 Acquisition of Technorati — 751 Effect of foreign currency translation 1 11 Balance – end of period $ 15,944 $ 15,949
Schedule of Intangible Assets	Intangible assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Customer and publisher relationships $ 14,780 $ 14,780 Technology 2,330 2,330 Trademark 300 300 17,410 17,410 Less accumulated amortization (3,109 ) (2,573 ) Intangible assets, net $ 14,301 $ 14,837

Property and Equipment - Net (T

Property and Equipment - Net (Tables)	3 Months Ended
	Mar. 31, 2017
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consisted of the following (in thousands): March 31, 2017 December 31, 2016 Computer equipment (1) $ 23,599 $ 23,438 Computer software 15,198 15,198 Furniture and fixtures 2,075 2,062 Leasehold improvements 1,423 1,463 Work in process (primarily software development costs) 6,542 4,572 Other 255 249 49,092 46,982 Less accumulated depreciation (2) (34,197 ) (32,576 ) Property and equipment, net $ 14,895 $ 14,406 Notes: (1) Includes equipment and software held under capital leases of $5.7 million and $5.2 million as of March 31, 2017 and December 31, 2016, respectively. (2) Includes $3.7 million and $3.4 million of accumulated depreciation of equipment under capital leases as of March 31, 2017 and December 31, 2016, respectively.

Accrued Expenses and Other Cu21

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables And Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued compensation $ 3,583 $ 6,860 Accrued content fees 886 1,788 Accrued business acquisition consideration 733 1,193 Other 2,512 1,843 Total $ 7,714 $ 11,684

Information About Segment and22

Information About Segment and Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Tangible Assets by Geographic Area	The following tables set forth revenue and long-lived tangible assets by geographic area (in thousands): Three Months Ended March 31, 2017 2016 Revenue: United States $ 21,668 $ 26,464 International 4,872 3,796 Total revenue $ 26,540 $ 30,260 March 31, 2017 December 31, 2016 Long-lived tangible assets: United States $ 14,006 $ 13,519 Canada 578 573 Other international 311 314 Total long-lived tangible assets $ 14,895 $ 14,406

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Total Stock Based Compensation Expense	Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands): Three Months Ended March 31, 2017 2016 Technology and development $ 208 $ 241 Sales and marketing 168 223 General and administrative 271 273 Total stock-based compensation expense $ 647 $ 737
Summary of Stock Option Activity	Stock Option Activity – A summary of the stock option activity for the three months ended March 31, 2017 is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 8,756,174 $ 2.53 Granted 1,096,000 $ 3.15 Exercised (249,684 ) $ 1.24 Forfeited or expired (55,013 ) $ 1.95 Outstanding at March 31, 2017 9,547,477 $ 2.64 7.11 $ 15,589 Vested and expected to vest at March 31, 2017 9,106,416 $ 2.64 7.02 $ 14,882 Vested and exercisable at March 31, 2017 5,056,071 $ 2.82 5.68 $ 7,887

Net Income (Loss) Per Common 24

Net Income (Loss) Per Common Share Data (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income (Loss) Per Share	The following table presents the calculation of basic and diluted net loss per share for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Basic and diluted net loss per share: Numerator: Net loss (in thousands) $ (6,656 ) $ (1,565 ) Denominator: Weighted average common shares outstanding 31,045,488 29,992,248 Basic and diluted net loss per share $ (0.21 ) $ (0.05 )
Schedule of Equivalent Shares Excluded from Calculation of Diluted Net Income (Loss) Per Share	The following equivalent shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2017 2016 Anti-dilutive equity awards: Stock options and Restricted Stock Units 9,857,366 9,910,649 Warrants 600,000 480,000

The Company and Summary of Si25

The Company and Summary of Significant Accounting Principles - Concentrations of Risk - Additional Information (Detail) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017Customer	Mar. 31, 2016Customer	Dec. 31, 2016USD ($)Customer
Concentration Risk [Line Items]
Increase (decrease) deferred tax assets | $			$ 0.7
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of customers	2		0
Concentration risk, percentage	10.00%		10.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Google [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Advertising Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Customer Concentration Risk [Member] | Revenue [Member]
Concentration Risk [Line Items]
Number of customers	1	1
Concentration risk, percentage	10.00%	10.00%
Customer Concentration Risk [Member] | Revenue [Member] | Google [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	11.00%	17.00%

The Company and Summary of Si26

The Company and Summary of Significant Accounting Principles - Schedule of Concentrations Equal to or Exceeding 10% of Company's Revenue, and Cost of Revenue (Detail) - Customer Concentration Risk [Member] - Cost of Revenue [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	19.00%	29.00%
Customer B [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		12.00%

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($)	May 16, 2017	Nov. 30, 2016	Aug. 31, 2015	Mar. 31, 2017	Feb. 19, 2016
TZ Holdings, Inc [Member]
Business Acquisition [Line Items]
Cash consideration			$ 17,300,000
Business acquisition hold back, value			800,000
Held back warrants expiration date				Sep. 14, 2018
Maximum contingent cash consideration			$ 2,000,000
Contingent consideration at fair value				$ 1,600,000
Contingent consideration paid		$ 900,000
TZ Holdings, Inc [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Contingent consideration paid	$ 700,000
Technorati [Member]
Business Acquisition [Line Items]
Cash withheld to secure indemnification obligations					$ 500,000
Approximately owed, post closing working capital adjustments				$ 100,000
Common Stock [Member] | TZ Holdings, Inc [Member]
Business Acquisition [Line Items]
Business acquisition equity Interest Issued, number of Shares			2,400,000
Business acquisition equity Interest Issued, value			$ 3,200,000
Number of shares held back			600,000
Warrants [Member] | TZ Holdings, Inc [Member]
Business Acquisition [Line Items]
Business acquisition equity Interest Issued, number of Shares			480,000
Number of shares held back			120,000

Goodwill and Other Intangible28

Goodwill and Other Intangible Assets - Schedule of Change in Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Balance – beginning of period	$ 15,943	$ 15,187
Acquisition of Technorati		751
Effect of foreign currency translation	1	11
Balance – end of period	$ 15,944	$ 15,949

Goodwill and Other Intangible29

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	$ 17,410	$ 17,410
Less accumulated amortization	(3,109)	(2,573)
Intangible assets, net	14,301	14,837
Customer and Publisher Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	14,780	14,780
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	2,330	2,330
Trademark [Member]
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	$ 300	$ 300

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Intangible Liability Disclosure [Abstract]
Amortization of intangible assets	$ 0.5	$ 0.5

Property and Equipment - Net -

Property and Equipment - Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 49,092	$ 46,982
Less accumulated depreciation	(34,197)	(32,576)
Property and equipment, net	14,895	14,406
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	23,599	23,438
Computer Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	15,198	15,198
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	2,075	2,062
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	1,423	1,463
Work in Process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	6,542	4,572
Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 255	$ 249

Property and Equipment - Net 32

Property and Equipment - Net - Schedule of Property and Equipment (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 49,092	$ 46,982
Accumulated depreciation of equipment under capital leases	34,197	32,576
Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation of equipment under capital leases	3,700	3,400
Computer Equipment and Software Held Under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 5,700	$ 5,200

Property and Equipment - Net 33

Property and Equipment - Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property Plant And Equipment [Abstract]
Depreciation expense	$ 1.6	$ 1.6

Accrued Expenses and Other Cu34

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts Payable And Accrued Liabilities Current [Abstract]
Accrued compensation	$ 3,583	$ 6,860
Accrued content fees	886	1,788
Accrued business acquisition consideration	733	1,193
Other	2,512	1,843
Total	$ 7,714	$ 11,684

Information About Segment and35

Information About Segment and Geographic Areas - Schedule of Revenue and Long Lived Tangible Assets by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 26,540	$ 30,260
Long-lived tangible assets	14,895		$ 14,406
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	21,668	26,464
Long-lived tangible assets	14,006		13,519
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,872	$ 3,796
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	578		573
Other International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	$ 311		$ 314

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
Contract commitments	$ 0.6

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Total Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 647	$ 737
Technology and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	208	241
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	168	223
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 271	$ 273

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding number of shares beginning balance | shares	8,756,174
Number of shares granted | shares	1,096,000
Number of shares exercised | shares	(249,684)
Number of shares forfeited or expired | shares	(55,013)
Outstanding number of shares ending balance | shares	9,547,477
Outstanding number of shares vested and expected to vest | shares	9,106,416
Outstanding number of shares vested and exercisable | shares	5,056,071
Outstanding, weighted average exercise price, beginning balance | $ / shares	$ 2.53
Weighted average exercise price, granted | $ / shares	3.15
Weighted average exercise price, exercised | $ / shares	1.24
Weighted average exercise price, forfeited or expired | $ / shares	1.95
Outstanding, weighted average exercise price, ending balance | $ / shares	2.64
Vested and expected to vest, weighted average exercise price, ending balance | $ / shares	2.64
Vested and exercisable, weighted average exercise price, ending balance | $ / shares	$ 2.82
Weighted average remaining contractual term (in years), outstanding	7 years 1 month 10 days
Weighted average remaining contractual term (in years), vested and expected to vest	7 years 7 days
Weighted average remaining contractual term (in years), vested and exercisable	5 years 8 months 5 days
Aggregate intrinsic value, outstanding | $	$ 15,589
Aggregate intrinsic value, vested and expected to vest | $	14,882
Aggregate intrinsic value, vested and exercisable | $	$ 7,887

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Closing stock price as reported on the Nasdaq Global Market | $ / shares	$ 4.15
Weighted average fair value of options issued | $ / shares	$ 1.56
Total intrinsic value of options exercised | $	$ 0.5
Unrecognized compensation cost related to non-vested options granted after adjustment for estimated forfeitures | $	$ 5.3
Expected weighted average period to recognize total unrecognized compensation cost	2 years 9 months 18 days
Total fair value of shares vested | $	$ 0.5
RSUs, granted | shares	0
RSUs, released | shares	0
RSUs, forfeited | shares	0

Net Income (Loss) Per Common 40

Net Income (Loss) Per Common Share Data - Schedule of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net loss	$ (6,656)	$ (1,565)
Denominator:
Weighted average common shares outstanding	31,045,488	29,992,248
Basic and diluted net loss per share	$ (0.21)	$ (0.05)

Net Income (Loss) Per Common 41

Net Income (Loss) Per Common Share Data - Schedule of Equivalent Shares Excluded from Calculation of Diluted Net Income (Loss) Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Options and Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive equity awards	9,857,366	9,910,649
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive equity awards	600,000	480,000

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - Underwritten Public Offering [Member] - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		2 Months Ended
	May 16, 2017	Apr. 30, 2017	May 16, 2017
Subsequent Event [Line Items]
Common stock shares issued	472,846	5,715,000	6,187,846
Common stock, price per share		$ 3.50
Net proceeds from issuance of common stock, after deducting underwriting discounts and estimated offering expenses			$ 20.1