Telenav 10-Q 9 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Sep. 30, 2018shares
Document and Entity Information [Abstract]
Entity Registrant Name	TELENAV, INC.
Entity Central Index Key	1,474,439
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding	45,260,738

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	[1]
Current assets:
Cash and cash equivalents	$ 13,596	$ 17,117
Short-term investments	67,675	67,829
Accounts receivable, net of allowances of $11 and $17 at September 30, 2018 and June 30, 2018, respectively	46,956	46,188
Restricted cash	2,930	2,982
Deferred costs	13,842	9,906
Prepaid expenses and other current assets	3,393	3,867
Total current assets	148,392	147,889
Property and equipment, net	6,412	6,987
Deferred income taxes, non-current	550	867
Goodwill and intangible assets, net	30,763	31,046
Deferred costs, non-current	46,466	46,363
Other assets	3,517	2,372
Total assets	236,100	235,524
Current liabilities:
Trade accounts payable	16,144	13,008
Accrued expenses	36,038	38,803
Deferred revenue	21,892	18,195
Income taxes payable	368	221
Total current liabilities	74,442	70,227
Deferred rent, non-current	1,200	1,112
Deferred revenue, noncurrent	57,031	53,855
Other long-term liabilities	1,192	1,115
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value: 600,000 shares authorized; 45,260 and 44,871 shares issued and outstanding at September 30, 2018 and June 30, 2018, respectively	45	45
Additional paid-in capital	168,984	167,895
Accumulated other comprehensive loss	(1,981)	(1,855)
Accumulated deficit	(64,813)	(56,870)
Total stockholders’ equity	102,235	109,215
Total liabilities and stockholders’ equity	$ 236,100	$ 235,524
[1]	See Note 1 for a summary of adjustments.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 11	$ 17
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	45,260,000	44,871,000
Common stock, shares outstanding (in shares)	45,260,000	44,871,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	[1]
Revenue:
Total revenue	$ 52,168	$ 56,962
Cost of revenue:
Total cost of revenue	31,104	35,823
Gross profit	21,064	21,139
Operating expenses:
Research and development	20,102	20,681
Sales and marketing	4,415	5,064
General and administrative	5,450	5,211
Legal settlement and contingencies	0	250
Total operating expenses	29,967	31,206
Loss from operations	(8,903)	(10,067)
Other income (expense), net	1,590	(47)
Loss before provision for income taxes	(7,313)	(10,114)
Provision for income taxes	630	255
Net loss	$ (7,943)	$ (10,369)	[2],[3]
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.18)	$ (0.24)
Weighted average shares used in computing net loss per share:
Weighted average common shares, basic and diluted (shares)	45,018	44,079
Stock compensation expense included above:
Stock-based compensation expense	$ 2,269	$ 2,480
Cost of revenue
Stock compensation expense included above:
Stock-based compensation expense	32	35
Research and development
Stock compensation expense included above:
Stock-based compensation expense	1,304	1,395
Sales and marketing
Stock compensation expense included above:
Stock-based compensation expense	326	438
General and administrative
Stock compensation expense included above:
Stock-based compensation expense	607	612
Product
Revenue:
Total revenue	40,471	42,659
Cost of revenue:
Total cost of revenue	23,930	29,441
Services
Revenue:
Total revenue	11,697	14,303
Cost of revenue:
Total cost of revenue	$ 7,174	$ 6,382
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.
[3]	See Note 1 for a summary of adjustments.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	[2]
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,943)	$ (10,369)	[1],[3]
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	(217)	359
Available-for-sale securities:
Unrealized gain on available-for-sale securities, net of tax	89	28
Reclassification adjustments for gain on available-for-sale securities recognized, net of tax	2	0
Net increase from available-for-sale securities, net of tax	91	28
Other comprehensive income (loss), net of tax	(126)	387
Comprehensive loss	$ (8,069)	$ (9,982)
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.
[3]	See Note 1 for a summary of adjustments.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities
Net loss	$ (7,943)	$ (10,369)	[1],[2],[3]
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,010	716	[3]
Deferred rent reversal due to lease termination	0	(538)	[3]
Tenant improvement allowance recognition due to lease termination	0	(582)	[3]
Accretion of net premium on short-term investments	5	59	[3]
Stock-based compensation expense	2,269	2,480	[3]
Unrealized gain on non-marketable equity investments	(1,259)	0	[2]
Loss (gain) on disposal of property and equipment	(1)	8	[3]
Bad debt expense	1	38	[3]
Changes in operating assets and liabilities:
Accounts receivable	(780)	(2,109)	[3]
Deferred income taxes	308	104	[3]
Deferred costs	(4,039)	(5,474)	[3]
Prepaid expenses and other current assets	470	(115)	[3]
Other assets	42	(326)	[3]
Trade accounts payable	3,167	9,463	[3]
Accrued expenses and other liabilities	(2,600)	(6,037)	[3]
Income taxes payable	149	(123)	[3]
Deferred rent	35	191	[3]
Deferred revenue	6,873	8,826	[3]
Net cash used in operating activities	(2,293)	(3,788)	[3]
Investing activities
Purchases of property and equipment	(100)	(2,286)	[3]
Purchases of short-term investments	(10,624)	(13,355)	[3]
Proceeds from sales and maturities of short-term investments	10,865	16,697	[3]
Net cash provided by investing activities	141	1,056	[3]
Financing activities
Proceeds from exercise of stock options	24	197	[3]
Tax withholdings related to net share settlements of restricted stock units	(1,206)	(1,102)	[3]
Net cash used in financing activities	(1,182)	(905)	[3]
Effect of exchange rate changes on cash and cash equivalents	(239)	345	[3]
Net decrease in cash, cash equivalents and restricted cash	(3,573)	(3,292)	[3]
Cash, cash equivalents and restricted cash, at beginning of period	20,099	24,158	[3]
Cash, cash equivalents and restricted cash, at end of period	16,526	20,866	[3]
Supplemental disclosure of cash flow information
Income taxes paid, net	166	304	[3]
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Total cash and cash equivalents	$ 20,099	$ 24,158	[3]
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.
[3]	See Note 1 for a summary of adjustments.

Summary of business and signifi

Summary of business and significant accounting policies	3 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of business and significant accounting policies	Summary of business and significant accounting policies Description of business Telenav, Inc., also referred to in this report as “we,” “our” or “us,” was incorporated in September 1999 in the State of Delaware. We are a leading provider of connected car and location-based products and services. We utilize our automotive navigation platform and our advertising delivery platform to deliver these products and services. Our automotive navigation platform allows us to deliver enhanced location-based services to automobile manufacturers, as well as original equipment manufacturers and tier one suppliers, to which we refer collectively as tier ones. Our automotive solutions primarily include navigation systems built into vehicles, or on-board, mobile phone based navigation systems, or brought-in, and advanced navigation solutions that offer on-board functionality combined with cloud functionality, or hybrid. Our advertising delivery platform, which we provide through our Thinknear subsidiary, delivers highly targeted advertising services leveraging our location expertise. We operate in three segments - automotive, advertising and mobile navigation. Our fiscal year ends on June 30, and in this report we refer to the fiscal year ended June 30, 2018 as “fiscal 2018 ” and the fiscal year ending June 30, 2019 as “fiscal 2019 .” Basis of presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall . The results of Jitu did not have a material impact on our financial statements for the three months ended September 30, 2018 and 2017 . The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2018 , included in our Annual Report on Form 10-K for fiscal 2018 filed with the U.S. Securities and Exchange Commission, or SEC, on September 12, 2018. Effective July 1, 2018, we adopted the requirements of Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) as discussed in the section titled “ Recently adopted accounting pronouncements ” of this Note 1. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with this standard, as indicated by references to “as adjusted” in these condensed consolidated financial statements and related notes. With the exception of changes in accounting policies associated with our adoption of the new revenue recognition standard, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Form 10-K for fiscal 2018. Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates. Concentrations of risk and significant customers Revenue related to products and services provided through Ford Motor Company and affiliated entities, or Ford, comprised 60% and 73% of revenue for the three months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 and June 30, 2018 , receivables due from Ford were 50% and 56% of total accounts receivable, respectively. Revenue related to products and services provided through General Motors Holdings and its affiliates, or GM, comprised 13% and less than 10% of revenue for the three months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 and June 30, 2018 , receivables due from GM were 16% and 10% of total accounts receivable, respectively. Restricted cash As of September 30, 2018 and June 30, 2018 , we had restricted cash of $2.9 million and $3.0 million , respectively, on our consolidated balance sheets, comprised primarily of prepayments from a customer. Accumulated other comprehensive loss, net of tax The components of accumulated other comprehensive loss, net of related taxes, and activity as of September 30, 2018 , were as follows (in thousands): Foreign Currency Unrealized Total Balance, net of tax as of June 30, 2018 $ (1,163 ) $ (692 ) $ (1,855 ) Other comprehensive income (loss) before reclassifications, net of tax (217 ) 89 (128 ) Amount reclassified from accumulated other comprehensive loss, net of tax — 2 2 Other comprehensive income (loss), net of tax (217 ) 91 (126 ) Balance, net of tax as of September 30, 2018 $ (1,380 ) $ (601 ) $ (1,981 ) The amount of income tax benefit allocated to each component of accumulated other comprehensive loss was not material for the three months ended September 30, 2018 . Goodwill Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually on April 1 or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the three months ended March 31, 2018, certain mobile navigation customer contracts were amended and certain other customers indicated their intent with respect to terminating services in the near term. Based upon a qualitative assessment indicating that it was more likely than not that the fair value of the mobile navigation reporting unit was less than its carrying value, we performed an interim goodwill impairment test for our mobile navigation segment. In assessing its fair value, we made assumptions regarding our estimated future cash flows, weighted average cost of capital and timing over which the cash flows will occur, amongst other factors. Based on the results of our goodwill impairment test, the carrying value of our mobile navigation business exceeded its estimated fair value and, accordingly, during the three months ended March 31, 2018, we recognized a $2.7 million impairment of all of the goodwill associated with our mobile navigation segment. Recently adopted accounting pronouncements In November 2016, the Financial Accounting Standards Board, or FASB, issued new guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending total amounts shown in the statement of cash flows. The new standard was effective for us in our first quarter of fiscal 2019 and requires a retrospective method of adoption. We adopted this standard on July 1, 2018 on a retrospective basis, resulting in immaterial changes to our previously reported condensed consolidated statement of cash flows for the three months ended September 30, 2017 . In August 2016, the FASB issued new guidance which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The new standard was effective for us in our first quarter of fiscal 2019. We adopted this standard on July 1, 2018, and it did not have a material impact to our condensed consolidated statements of cash flows. In March 2016, the FASB issued new guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross versus net. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. The new standard was effective for us in our first quarter of fiscal 2019. We adopted this standard on July 1, 2018 in connection with our adoption of ASU 2014-09 discussed below, and it did not have a material impact to our condensed consolidated financial statements. In January 2016, the FASB issued new guidance that amends the accounting and disclosures of financial instruments, including a provision that requires equity investments (except for investments accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in current earnings. A practicality exception applies to those equity investments that do not have a readily determinable fair value. These investments may be measured at cost, adjusted for changes in observable prices minus impairment. The new standard was effective prospectively for us in our first quarter of fiscal 2019 for our equity investments, which were previously accounted for under the cost-method. We adopted this standard on July 1, 2018. See Note 4 to these condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . Under Topic 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In conjunction with Topic 606, a new subtopic, ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , was also issued. The updated standard replaces most existing revenue recognition and certain cost guidance under GAAP. Collectively, we refer to Topic 606 and Subtopic 340-40 as “ASC 606.” We adopted ASC 606 effective July 1, 2018, utilizing the full retrospective transition method. Adoption of ASC 606 resulted in changes to our accounting policies for revenue recognition and deferred costs as detailed below. We applied ASC 606 using a practical expedient where the consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application is not disclosed. The effect of adopting ASC 606 on fiscal 2018 was material to our statements of operations and balance sheets as a result of its impact on the recognition of revenue and associated third-party content costs for certain of our on-board and brought-in automotive navigation solutions. The adoption of ASC 606 had no significant impact on our advertising and mobile navigation business segments. The adoption of ASC 606 resulted in reductions to deferred costs (asset) and deferred revenue (liability) balances, and accelerated the recognition of revenues and deferred costs in the automotive segment. With respect to on-board automotive solutions, historically we recognized revenue and associated content costs over the life of our contractual obligations when map updates were included, and we deferred substantially all revenue and associated content costs pending the delivery of future specified upgrades. Instead, as of July 1, 2018, we recognize revenue related to royalties for distinct software and content that has been accepted as transfer of control takes place, with an allocation of the transaction price based on the relative standalone selling price, or SSP, of map updates, specified upgrades, and other services as applicable, which we will recognize with the associated content costs at a point in time or over time as we transfer control of the related performance obligation. Regarding brought-in automotive solutions, historically we recognized revenue for each royalty over the expected remaining term of the service obligation. Effective July 1, 2018, since these contracts contain variable consideration we will estimate the total transaction price each reporting period using a probability assessment, and then recognize revenue ratably over the period the services obligation is expected to be fulfilled, as further described in the section titled “ Services revenue ” of this Note 1. Development costs subject to ASC 340-40 incurred to fulfill future obligations under certain actual or anticipated contracts for automotive solutions are capitalized, provided they are expected to be recovered, and then recognized as control of the related performance obligations is transferred. Historically, such costs were not capitalized until receipt of a signed contract or purchase order for a fixed amount, provided the costs were probable of being recovered. Under ASC 340-40, we are required to capitalize such costs in anticipation of a contract, provided the costs are expected to be recovered; thus, increasing the amount of costs we capitalize under ASC 340-40. For on-board automotive solutions, such capitalized costs represent the customized portion of software development, which will continue to be recognized upon acceptance of the software under ASC 340-40 since acceptance is generally required for control of the software to transfer. For brought-in automotive solutions, such costs will be amortized over the period the services obligation is expected to be fulfilled, since software development does not represent a distinct performance obligation in the case of brought-in automotive solutions. Historically, we recognized such costs for brought-in automotive solutions upon acceptance of the software. We adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC 606. Summarized financial information depicting the impact of ASC 606 is presented below. Our historical net cash flows provided by or used in operating, investing and financing activities are not impacted by the adoption of ASC 606. (Amounts in thousands, except per share data): As of June 30, 2018 As Reported Adjustments As Adjusted Assets Deferred costs $ 31,888 $ (21,982 ) $ 9,906 Deferred costs, noncurrent 109,269 (62,906 ) 46,363 Liabilities and stockholders’ equity Deferred revenue 52,871 (34,676 ) 18,195 Deferred revenue, noncurrent 182,236 (128,381 ) 53,855 Accumulated deficit (135,042 ) 78,172 (56,870 ) Three Months Ended September 30, 2017 As Reported Adjustments As Adjusted Revenue: Product $ 23,964 $ 18,695 $ 42,659 Services 12,694 1,609 14,303 Total revenue 36,658 20,304 56,962 Cost of revenue: Product 14,674 14,767 29,441 Services 6,173 209 6,382 Total cost of revenue 20,847 14,976 35,823 Gross profit 15,811 5,328 21,139 Operating expenses: Research and development 21,082 (401 ) 20,681 Total operating expenses 31,607 (401 ) 31,206 Loss from operations (15,796 ) 5,729 (10,067 ) Net loss (16,098 ) 5,729 (10,369 ) Net loss per share, basic and diluted $ (0.37 ) $ 0.13 $ (0.24 ) The following accounting policies have been updated to reflect the adoption of ASC 606. Revenue recognition The core principle of ASC 606 is to recognize revenue to depict the transfer of products or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. This principle is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the company satisfies a performance obligation We generate revenue primarily from software licenses, service subscriptions and customized software development fees, as well as the delivery of advertising impressions. We evaluate whether it is appropriate to recognize revenue based on the gross amount billed to our customers or the net amount earned as revenue. Since we control the products or services prior to their transfer to the customer, we report our automotive, advertising and mobile navigation revenue on a gross basis. This assessment is based primarily on our ultimate primary responsibility for fulfilling the promises made with respect to the products and services as well as the degree of discretion we have in establishing pricing. Royalties for on-board navigation solutions are generally earned at various points in time, depending upon the individual customer agreement. We earn each royalty upon either the re-imaging of the software on each individual memory card or the time at which each vehicle is produced. Royalties for brought-in navigation solutions are earned upon vehicle sales reporting or upon initial usage by the end user. Product revenue We generate product revenue from the delivery of our on-board automotive navigation solutions, specified map updates and customized software development. We recognize revenue from on-board automotive navigation solutions upon transfer of control of the customized software and any associated integrated content together forming a distinct performance obligation. Transfer of control generally occurs at a point in time upon acceptance. Any royalties for the use of distinct software combined with integrated content, with an allocation of the transaction price based on the relative SSP of map updates, specified upgrades, and other services as applicable, are recognized at the later of when the royalties are earned or when transfer of control of the related performance obligation has occurred. For hybrid automotive solutions, which contain on-board software and cloud functionality, the transaction price allocated to the on-board component is generally recognized as product revenue as described above, and the transaction price allocated to the included cloud functionality based on relative SSP is generally recognized as services revenue. Since the on-board software is still the predominant item in the hybrid solution, the royalties recognition guidance applies as it does for on-board navigation solutions described above. Our brought-in automotive navigation solutions as described below are subject to variable consideration and constraint guidance. Services revenue We derive services revenue primarily from our brought-in automotive navigation solutions. Since these contracts typically contain a substantial amount of variable consideration that is required to be estimated and included in the transaction price, we include in the transaction price only variable consideration such that it is probable that a risk of significant revenue reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Total variable consideration to be received is estimated at contract inception and updated at each reporting date. We utilize the expected value method and consider expected unit volume combined with a risk-based probability based on factors including, but not limited to: model year cycles, customer history, technology life cycles, nature of competition and other contract-specific factors. Because customers of our brought-in automotive navigation solutions simultaneously receive and consume the benefit from our performance, we recognize revenue ratably over the period the services obligation is expected to be fulfilled, generally 8 to 12 years, as this provides a faithful depiction of the transfer of control. We also derive services revenue from the delivery of advertising impressions. We recognize revenue when transfer of control of the related advertising services occur based on the specific terms of each advertising contract, which are generally based on the number of ad impressions delivered. Substantially all contracts for advertising services are cancellable within a short period of notice, and we assess whether pricing within such contracts create any material right which could extend the expected term of the contract beyond the cancellable term. In addition, we derive a declining amount of services revenue from subscriptions to access our mobile navigation services, which are generally provided through our wireless carrier customers that offer our services to their subscribers. Our wireless carrier customers typically pay us based on a revenue sharing arrangement or a monthly subscription fee per end user, which is considered variable consideration. For such variable consideration related to our mobile navigation services, these fees are recognized in the month in which they are earned because the terms of the variable payments relate specifically to the outcome from transferring the distinct time increment (month) of service, which is consistent with the allocation objective when considering all of the performance obligations and payment terms in the contract. We recognize monthly fees related to our mobile navigation services in the month we provide the services. We defer amounts received or billed in advance of the service being provided and recognize the deferred amounts when the obligation has been fulfilled. Our agreements do not contain general rights of refund once the service has been provided. In certain instances, due to the nature and timing of monthly revenue and reporting from our customers, we may be required to make estimates of the amount of revenue to recognize from a customer for the current period. Estimates for revenue include our consideration of certain factors and information, including subscriber data, historical subscription and revenue reporting trends, end user subscription data from our internal systems, and data from comparable distribution channels of our other customers. We record any differences between estimated revenue and actual revenue in the reporting period when we determine the actual amounts. To date, actual amounts have not differed materially from our estimates. Disaggregation of revenue In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition, and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended September 30, 2018 2017 Product On-board automotive navigation solutions (point in time) (1) $ 40,471 $ 42,659 Total product revenue 40,471 42,659 Services Brought-in automotive navigation solutions (over time) (2) 2,980 2,949 Advertising services (point in time) 5,947 7,615 Mobile navigation services (over time) 2,770 3,739 Total services revenue 11,697 14,303 Total revenue $ 52,168 $ 56,962 (1) Includes royalties earned and recognized at the point in time usage occurs, map updates and customized software development fees. (2) Includes royalties earned and recognized over time from the allocation of transaction price to service obligations. Contracts with multiple performance obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on, if available, observable prices for those related products and services when sold separately. When observable prices are not available, we determine SSP based on our overall pricing trends and objectives, taking into consideration market conditions and other factors, including the value of the contracts, the products and services sold, and stated prices for renewal. In such instances, we apply the expected cost plus margin method and the residual method in cases where we have not yet established a price and the product or service has not previously been sold on a standalone basis. Contract assets Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of September 30, 2018 and June 30, 2018 , we had no contract assets. Deferred revenue Deferred revenue consists primarily of amounts that have been invoiced, and for which we have the right to bill, in advance of performance obligations being satisfied and revenue being recognized under our contracts with customers. Deferred revenue associated with performance obligations that are anticipated to be satisfied during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent deferred revenue in our condensed consolidated balance sheets. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust consideration for the effects of a significant financing portion for periods of one year or less, for example, in the case of customized software development fees paid in advance of acceptance of the software. Substantially all brought-in automotive navigation solutions contain consideration paid significantly in advance of our provision of the services. In these cases, we have determined such contracts do not include a significant financing component, since neither we nor the applicable automobile manufacturer or tier one is substantially in control of such consideration, as revenue from these contracts is driven by future sales demand of a particular vehicle. Cost of revenue Our cost of revenue consists primarily of the cost of third-party royalty based content, such as map, points of interest, or POI, traffic, gas price and weather data, and voice recognition technology that we use in providing our personalized navigation services. Our cost of revenue also includes the cost of third-party exchange ad inventory as well as expenses associated with outsourced hosting services, data center operations, customer support, the amortization of capitalized software, recognition of deferred customized software development costs, stock-based compensation and amortization of acquired developed technology. Deferred costs We capitalize and defer recognition of certain third-party royalty-based content costs associated with the fulfillment of future automotive product and services obligations, and we recognize these deferred content costs as cost of revenue as we transfer control of the related performance obligation. Deferred costs are classified as current or non-current consistent with the periods over which the performance obligations are anticipated to be satisfied. Deferred costs also include the cost of customized software we develop for customers. We begin deferring development costs when they relate directly to a contract or specific anticipated contract and such costs are incurred to satisfy performance obligations in the future, provided they are expected to be recovered. We recognize these deferred software development costs as cost of revenue upon transfer of control of the associated performance obligation. We evaluate contract cost deferrals for impairment on a quarterly basis or whenever events or changes in circumstances indicate that a project may require recognition of a contract loss. We did not record any impairment losses during the three months ended September 30, 2018 and 2017 . In connection with our usage of licensed third-party content, our contracts with certain licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of revenue derived from the number of paying end users. These contracts contain obligations for the licensor to provide ongoing services and, accordingly, we record any minimum guaranteed royalty payments as an asset when paid and amortize the amount to cost of revenue over the applicable period. Any additional royalties due based on actual usage are expensed monthly as incurred. Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2018 (as adjusted) $ 46,790 $ 9,479 $ 56,269 Content licensing costs incurred 29,114 — 29,114 Customized software development costs incurred — 554 554 Less: cost of revenue recognized (25,028 ) (601 ) (25,629 ) Balance, September 30, 2018 $ 50,876 $ 9,432 $ 60,308 Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , or ASU 2018-15, which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This guidance is effective for us in our first quarter of fiscal 2021. Early adoption is permitted and the guidance allows for a retrospective or prospective application. We are evaluating the impact of the adoption of this standard on our consolidated financial statements. With the exception of the recently adopted and new accounting pronouncements discussed above, there have been no other changes in accounting pronouncements during the three months ended September 30, 2018 , as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2018, that are of significance or potential significance to us.

Net income (loss) per share

Net income (loss) per share	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income (loss) per share	Net income (loss) per share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury-stock method. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended 2018 2017 Net loss $ (7,943 ) $ (10,369 ) Weighted average common shares used in computing net loss per share, basic and diluted 45,018 44,079 Net loss per share, basic and diluted $ (0.18 ) $ (0.24 ) The following potential shares outstanding as of September 30, 2018 and 2017 were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect (in thousands): September 30, 2018 2017 Stock options 5,263 5,599 Restricted stock units 2,536 3,035 Total 7,799 8,634

Cash, cash equivalents and shor

Cash, cash equivalents and short-term investments	3 Months Ended
	Sep. 30, 2018
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash, cash equivalents and short-term investments	Cash, cash equivalents and short-term investments Cash and cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds. Short-term investments consist of readily marketable securities with a remaining maturity of more than three months from the date of purchase. Short-term investments are classified as current assets, even though maturities may extend beyond one year, because they represent investments of cash available for operations. We classify all cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. We had no material realized gains or losses in the three months ended September 30, 2018 and 2017 . Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2018 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 11,053 $ — $ — $ 11,053 Cash equivalents: Money market mutual funds 196 — — 196 U.S. treasury securities 200 — — 200 U.S. agency securities 500 — — 500 Commercial paper 1,247 — — 1,247 Corporate bonds 400 — — 400 Total cash equivalents 2,543 — — 2,543 Total cash and cash equivalents 13,596 — — 13,596 Short-term investments: U.S. treasury securities 5,237 — (36 ) 5,201 U.S. agency securities 1,799 — (12 ) 1,787 Asset-backed securities 7,853 1 (66 ) 7,788 Municipal securities 3,220 — (4 ) 3,216 Commercial paper 3,983 — (1 ) 3,982 Corporate bonds 46,048 6 (353 ) 45,701 Total short-term investments 68,140 7 (472 ) 67,675 Cash, cash equivalents and short-term investments $ 81,736 $ 7 $ (472 ) $ 81,271 Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2018 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 10,202 $ — $ — $ 10,202 Cash equivalents: Money market mutual funds 3,751 — — 3,751 U.S. treasury securities 498 — — 498 Commercial paper 2,666 — — 2,666 Total cash equivalents 6,915 — — 6,915 Total cash and cash equivalents 17,117 — — 17,117 Short-term investments: U.S. treasury securities 4,737 — (34 ) 4,703 U.S. agency securities 2,424 — (16 ) 2,408 Asset-backed securities 8,040 1 (72 ) 7,969 Municipal securities 2,220 — (4 ) 2,216 Commercial paper 1,249 — — 1,249 Corporate bonds 49,717 2 (435 ) 49,284 Total short-term investments 68,387 3 (561 ) 67,829 Cash, cash equivalents and short-term investments $ 85,504 $ 3 $ (561 ) $ 84,946 The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months or a continuous unrealized loss position for twelve months or greater, as of September 30, 2018 and June 30, 2018 (in thousands): September 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 4,219 $ (21 ) $ 981 $ (15 ) $ 5,200 $ (36 ) U.S. agency securities 994 (6 ) 1,293 (6 ) 2,287 (12 ) Asset-backed securities 3,779 (25 ) 3,400 (41 ) 7,179 (66 ) Municipal securities 2,716 (4 ) — — 2,716 (4 ) Commercial paper 5,229 (1 ) — — 5,229 (1 ) Corporate bonds 24,920 (214 ) 15,285 (139 ) 40,205 (353 ) Total $ 41,857 $ (271 ) $ 20,959 $ (201 ) $ 62,816 $ (472 ) June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 4,703 $ (34 ) $ — $ — $ 4,703 $ (34 ) U.S. agency securities 1,118 (6 ) 1,290 (10 ) 2,408 (16 ) Asset-backed securities 5,368 (69 ) 1,562 (3 ) 6,930 (72 ) Municipal securities 1,716 (4 ) — — 1,716 (4 ) Commercial paper 1,249 — — — 1,249 — Corporate bonds 34,982 (318 ) 10,880 (117 ) 45,862 (435 ) Total $ 49,136 $ (431 ) $ 13,732 $ (130 ) $ 62,868 $ (561 ) There were 90 securities and 111 securities in an unrealized loss position for less than twelve months at September 30, 2018 and at June 30, 2018 , respectively, and 44 securities and 25 securities in an unrealized loss position for twelve months or greater at September 30, 2018 and at June 30, 2018 , respectively. The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of September 30, 2018 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 36,318 $ 36,186 Due between one and two years 23,888 23,637 Due between two and three years 7,934 7,852 Total $ 68,140 $ 67,675 Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of other income (expense), net. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. As of September 30, 2018 , we did not consider any of our short-term investments to be other-than-temporarily impaired.

Fair value of financial instrum

Fair value of financial instruments	3 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair value of financial instruments	Fair value of financial instruments Cash equivalents and short-term investments We measure certain financial instruments at fair value on a recurring basis. We utilize a hierarchy, which consists of three levels, for disclosure of the inputs used to determine the fair value of our financial instruments. Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 valuations are based upon information that is unobservable and significant to the overall fair value measurement. Where applicable, we use quoted prices in active markets for similar assets to determine fair value of Level 2 short-term investments. If quoted prices in active markets for identical assets are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, we use third-party valuations utilizing underlying assets assumptions. All of our cash equivalents and short-term investments are classified within Level 1 or Level 2. As of September 30, 2018 and June 30, 2018 , we did not have any short-term investments that require Level 3 valuations. The fair values of these financial instruments were determined using the following inputs at September 30, 2018 (in thousands): Fair Value Measurements at September 30, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents: Money market mutual funds $ 196 $ 196 $ — $ — U.S. treasury securities 200 200 — — U.S. agency securities 500 — 500 — Commercial paper 1,247 — 1,247 — Corporate bonds 400 — 400 — Total cash equivalents 2,543 396 2,147 — Short-term investments: U.S. treasury securities 5,201 5,201 — — U.S. agency securities 1,787 — 1,787 — Asset-backed securities 7,788 — 7,788 — Municipal securities 3,216 — 3,216 — Commercial paper 3,982 — 3,982 — Corporate bonds 45,701 — 45,701 — Total short-term investments 67,675 5,201 62,474 — Cash equivalents and short-term investments $ 70,218 $ 5,597 $ 64,621 $ — The fair values of our financial instruments were determined using the following inputs at June 30, 2018 (in thousands): Fair Value Measurements at June 30, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents: Money market mutual funds $ 3,751 $ 3,751 $ — $ — U.S. treasury securities 498 498 Commercial paper 2,666 — 2,666 — Total cash equivalents 6,915 4,249 2,666 — Short-term investments: U.S. treasury securities 4,703 4,703 — — U.S. agency securities 2,408 — 2,408 — Asset-backed securities 7,969 — 7,969 — Municipal securities 2,216 — 2,216 — Commercial paper 1,249 — 1,249 — Corporate bonds 49,284 — 49,284 — Total short-term investments 67,829 4,703 63,126 — Cash equivalents and short-term investments $ 74,744 $ 8,952 $ 65,792 $ — Accretion of net premium on short-term investments totaled $5,000 and $59,000 in the three months ended September 30, 2018 and 2017 , respectively. There were no transfers between Level 1 and Level 2 financial instruments in the three months ended September 30, 2018 and 2017 . We did not have any financial liabilities measured at fair value on a recurring basis as of September 30, 2018 or June 30, 2018 . Non-marketable equity investments Our non-marketable equity securities are investments in privately held companies without readily determinable market values. Prior to July 1, 2018, we accounted for our non-marketable equity investments at cost less impairment. Realized gains and losses on non-marketable equity investments sold or impaired were recognized in other income (expense), net. As of June 30, 2018 , non-marketable equity investments accounted for under the cost method had a carrying value of $708,000 . On July 1, 2018, we adopted ASU 2016-01, which changed the way we account for non-marketable equity securities. The carrying value of our non-marketable equity securities is measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Because we adopted ASU 2016-01 prospectively for investments without readily determinable market values, we apply the measurement alternative commencing July 1, 2018. Non-marketable equity securities remeasured during the three months ended September 30, 2018 are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. During the three months ended September 30, 2018 , we recorded an upward adjustment to carrying value resulting from the sale of similar securities by an investee company. A summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities held as of September 30, 2018 is as follows (in thousands): Carrying value (cost basis), June 30, 2018 $ 708 Upward adjustments 1,259 Downward adjustments (including impairment) — Carrying value, September 30, 2018 $ 1,967 Included in the $2.0 million carrying value of non-marketable equity securities, $1.5 million was measured at fair value based on observable market transactions, resulting in a net unrealized gain of $1.3 million as of September 30, 2018 .

Balance sheet information

Balance sheet information	3 Months Ended
	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Balance sheet information	Balance sheet information Goodwill and intangible assets, net Goodwill as of September 30, 2018 and June 30, 2018 was $28.7 million . Intangible assets consisted of the following (in thousands): September 30, June 30, Acquired developed technology $ 13,875 $ 13,875 Less accumulated amortization (11,775 ) (11,491 ) Intangible assets, net $ 2,100 $ 2,384 Acquired developed technology is amortized on a straight-line basis over the expected useful life. Amortization expense related to intangibles was $284,000 and $283,000 for the three months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 , remaining amortization expense for intangible assets by fiscal year is as follows: $720,000 in fiscal 2019, $872,000 in fiscal 2020 and $509,000 in fiscal 2021. Accrued expenses Accrued expenses consisted of the following (in thousands): September 30, June 30, Accrued compensation and benefits $ 5,854 $ 12,024 Accrued royalties 17,823 16,298 Customer overpayments and related reserves 7,153 5,356 Other accrued expenses 5,208 5,125 Total accrued expenses $ 36,038 $ 38,803

Deferred revenue and remaining

Deferred revenue and remaining performance obligations	3 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Deferred revenue and remaining performance obligations	Deferred revenue and remaining performance obligations Deferred revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under our contracts with customers and is recognized upon transfer of control. Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Beginning balance, June 30, 2018 (as adjusted) $ 72,050 Revenue recognized that was included in beginning balance (6,616 ) Amount billed, net of revenue recognized that was not included in beginning balance 13,489 Ending balance, September 30, 2018 $ 78,923 The cumulative adjustment as a result of changes in the estimate of the transaction price of customer contracts during the three months ended September 30, 2018 was a net reduction in revenue recognized of $0.4 million . In addition, the amount of revenue recognized in the current period from performance obligations satisfied or partially satisfied in previous periods was $0.4 million . Remaining performance obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that are expected to be invoiced and recognized as revenue in future periods. As of September 30, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations for our automotive segment was $68.5 million , which is expected to be recognized over a remaining period of 5 to 8 years. This amount excludes the variable consideration that falls under the exemption for usage-based royalties promised in exchange for a license of intellectual property. We have used the practical expedient to not disclose amounts related to the comparative period under ASC 606. The aggregate amount of transaction price allocated to the remaining performance obligations for advertising services and mobile navigation services as of September 30, 2018 was not material.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Operating lease and purchase obligations In August 2017, we terminated our sublease with Avaya Inc. for our Santa Clara, California headquarters facility and signed a new direct lease agreement, effective in September 2017, for this same facility. In connection with the sublease termination agreement, we recorded the following amounts during the three months ended September 30, 2017 : i) the reversal of $538,000 of deferred rent related to the sublease, with an offsetting credit to rent expense, as amortization of this deferred rent liability is no longer required, and ii) the recognition of $582,000 of tenant improvement allowance related to the sublease, with an offsetting credit to depreciation expense, as amortization of this allowance is no longer required. As of September 30, 2018 , we had future minimum non-cancelable financial commitments primarily related to office space under non-cancelable operating leases and license fees due to certain of our third-party content providers, regardless of usage level. The aggregate future minimum commitments were comprised of the following (in thousands): Payments Due by Period Total Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Thereafter Operating lease obligations $ 15,534 $ 3,023 $ 4,125 $ 3,012 $ 2,642 $ 2,206 $ 526 Purchase obligations 7,115 2,998 1,491 965 415 415 831 Total contractual obligations $ 22,649 $ 6,021 $ 5,616 $ 3,977 $ 3,057 $ 2,621 $ 1,357 Contingencies From time to time, we may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. When we believe a loss or a cost of indemnification is probable and can be reasonably estimated, we accrue the estimated loss or cost of indemnification in our consolidated financial statements. Where the outcome of these matters is not determinable, we do not make a provision in our financial statements until the loss or cost of indemnification, if any, is probable and can be reasonably estimated or the outcome becomes known. We expense legal fees related to these matters as they are incurred. On July 28, 2016, Nathan Gergetz filed a putative class action complaint in the U.S. District Court for the Northern District of California, alleging that Telenav violated the Telephone Consumer Protection Act, or TCPA. The complaint purports to be filed on behalf of a class, and it alleged that Telenav caused unsolicited text messages to be sent to the plaintiff from July 6, 2016 to July 26, 2016. Plaintiffs sought statutory and actual damages under the TCPA law, attorneys’ fees and costs of the action, and an injunction to prevent any future violations. A settlement was subsequently reached, and the plaintiff filed a motion for preliminary approval of class action settlement on March 5, 2018. The court granted preliminary approval of the class action settlement on April 30, 2018 and final approval of the settlement on September 27, 2018. The settlement became effective on October 30, 2018 and was paid by our technology errors and omissions liability insurance policy, after payment of our deductible of $250,000 . We accrued the $250,000 deductible payment in fiscal 2018. In addition, we have received, and expect to continue to receive, demands for indemnification from our customers, which demands can be very expensive to settle or defend, and we have in the past offered to contribute to settlement amounts and incurred legal fees in connection with certain of these indemnity demands. A number of these indemnity demands, including demands relating to pending litigation, remain outstanding and unresolved as of the date of this Form 10-Q. Furthermore, in response to these demands we may be required to assume control of and bear all costs associated with the defense of our customers in compliance with our contractual commitments. At this time, we are not a party to the following cases; however, our customers requested that we indemnify them in connection with such cases. In August 2017, AT&T Mobility LLC, or AT&T, and Sprint Spectrum L.P., or Sprint, sent Telenav indemnification requests relating to patent infringement lawsuits brought by Location Based Services LLC, alleging patent infringement by the AT&T Navigator system and App for iOS and Android, and the Sprint Scout System and the Sprint Scout App for iOS and Android. Location Based Services LLC filed separate lawsuits against AT&T and Sprint in the U.S. District Court for the Eastern District of Texas, asserting five U.S. Patents. Telenav agreed to indemnify and defend AT&T and Sprint in connection with these matters. We accrued $250,000 related to these matters in the three months ended September 30, 2017 and recorded this amount as legal settlement and contingencies expense in our consolidated statement of operations. On November 22, 2017, Location Based Services LLC entered into a Settlement and License Agreement with Telenav for the patents in suit and 15 other patents assigned to Location Based Services LLP. In November 2017, Traxcell Technologies, LLC, or Traxcell, filed patent infringement lawsuits against AT&T and Sprint in the U.S. District Court for the Eastern District of Texas. On November 9, 2017, AT&T tendered control of the defense of one of the patents alleged to be infringed upon in the case and sought indemnification for the entire amount of litigation expenses related to the patent and Telenav products, including discovery, defensive intellectual property rights and any judgment rendered in, or settlement of, the lawsuit. Telenav has not accepted tender of the defense. Although we have agreed to indemnify AT&T to the extent that the claims relate to the ordinary use of Telenav products, we have not yet determined the extent of our indemnification obligations to AT&T. On April 12, 2018, Traxcell served its infringement contentions, identifying Telenav products as being at issue in the AT&T litigation. On August 14, 2018, we filed a motion to intervene and stay or sever the claims against AT&T related to AT&T Navigator. On September 11, 2018, Traxcell filed a response to that motion objecting only to our motion to stay or sever. On November 7, 2018, the court granted our motion to intervene but did not rule on our motion to stay or sever, which is still pending before the court. On June 15, 2018, Telenav filed a complaint against Traxcell seeking a declaratory judgment of non-infringement against the plaintiff. On August 31, 2018, Traxcell filed a motion to dismiss the declaratory judgment complaint asserting that there is no actual controversy because Traxcell does not assert that the AT&T product by itself infringes the patent. The motion is pending before the court. Due to the preliminary nature of and uncertainties relating to the Traxcell litigation, we are unable at this time to estimate the effects of these matters on our financial condition, results of operations or cash flows. While we presently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, cash flows or overall trends in results of operations, legal proceedings are subject to inherent uncertainties and unfavorable rulings could occur. Unfavorable final outcomes may have a material adverse impact on our business, financial position, cash flows or overall trends in results of operations.

Guarantees and indemnifications

Guarantees and indemnifications	3 Months Ended
	Sep. 30, 2018
Guarantees [Abstract]
Guarantees and indemnifications	Guarantees and indemnifications Our agreements with our customers generally include certain provisions for indemnifying them against liabilities if our products and services infringe a third party’s intellectual property rights or for other specified matters. We have in the past received indemnification requests or notices of their intent to seek indemnification in the future from our customers with respect to specific litigation claims in which our customers have been named as defendants. The maximum amount of potential future indemnification is unlimited. We have agreed to indemnify our directors, officers and certain other employees for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon the termination of their services with us, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited. We have a directors and officers insurance policy that limits our potential exposure. We believe that any financial exposure related to these indemnification agreements is not material.

Stock-based compensation

Stock-based compensation	3 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	Stock-based compensation Under our 2009 Equity Incentive Plan and 2011 Stock Option and Grant Plan, eligible employees, directors and consultants are able to participate in our future performance through awards of nonqualified stock options, incentive stock options and restricted stock units as authorized by our board of directors. In addition, we have granted restricted common stock in connection with certain acquisitions. A summary of our stock option activity is as follows (in thousands except per share and contractual life amounts): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Options outstanding as of June 30, 2018 5,116 $ 6.48 Granted 290 $ 5.10 Exercised (5 ) $ 5.01 Canceled or expired (138 ) $ 7.44 Options outstanding as of September 30, 2018 5,263 $ 6.38 5.70 $ 87,949 As of September 30, 2018: Options vested and expected to vest 5,100 $ 6.40 5.60 $ 85,445 Options exercisable 3,884 $ 6.60 4.81 $ 65,956 A summary of our restricted stock unit, or RSU, activity is as follows (in thousands except contractual life amounts): Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value RSUs outstanding as of June 30, 2018 3,068 Granted 187 Vested (600 ) Canceled (119 ) RSUs outstanding as of September 30, 2018 2,536 1.47 $ 12,807 As of September 30, 2018: RSUs expected to vest 2,146 1.34 $ 10,839 During the three months ended September 30, 2018 , pursuant to the annual increase provisions of our 2009 Equity Incentive Plan, the number of shares available for grant under this plan increased by 1,666,666 shares. The last annual increase in the shares reserved for issuance under our 2009 Equity Incentive Plan will occur on July 1, 2019, and the plan will expire in October 2019 as to new awards. A summary of our shares available for grant activity is as follows (in thousands): Number of Shares Shares available for grant as of June 30, 2018 3,169 Additional shares authorized 1,667 Granted (477 ) RSUs withheld for taxes in net share settlements 215 Canceled 257 Shares available for grant as of September 30, 2018 4,831 The following table summarizes the stock-based compensation expense recorded for stock options and RSUs issued to employees and nonemployees (in thousands): Three Months Ended 2018 2017 Stock option awards $ 429 $ 596 RSU awards 1,840 1,884 Total stock-based compensation expense $ 2,269 $ 2,480 We use valuation pricing models to determine the fair value of stock-based awards. The determination of the fair value of stock-based payment awards on the date of grant is affected by the stock price as well as assumptions regarding a number of complex and subjective variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rates and expected dividends. The weighted average assumptions used to value stock option awards granted and the resulting weighted average grant date fair value per share were as follows: Three Months Ended 2018 2017 Expected volatility 39 % 49 % Expected term (in years) 6.87 6.22 Risk-free interest rate 2.99 % 1.64 % Dividend yield — % — % Weighted average grant date fair value per share $ 2.32 $ 3.07

Income taxes

Income taxes	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The effective tax rate for the periods presented is the result of the mix of forecasted fiscal year income earned or loss incurred in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes was $630,000 in the three months ended September 30, 2018 compared to $255,000 in the three months ended September 30, 2017 . Our provision for income taxes of $630,000 and $255,000 for the three months ended September 30, 2018 and 2017 , respectively, was comprised primarily of foreign withholding taxes and income taxes in foreign jurisdictions where we have profit. Our effective tax rate of 9% and 3% for the three months ended September 30, 2018 and 2017 , respectively, was less than the tax amount computed at the U.S. federal statutory income tax rate due primarily to losses for which no benefit will be recognized since they are not more likely than not to be realized due to the lack of current and future income and the inability to carryback losses within the two-year carryback period, when applicable. We record liabilities related to unrecognized tax benefits in accordance with authoritative guidance on accounting for uncertain tax positions. As of September 30, 2018 and June 30, 2018 , our cumulative unrecognized tax benefits were $4.7 million and $3.8 million , respectively. Included in the balance of unrecognized tax benefits at September 30, 2018 and June 30, 2018 was $205,000 and $98,000 , respectively, that if recognized, would affect the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits as part of our provision for federal, state and foreign income taxes. We accrued $100,000 and $97,000 for the payment of interest and penalties at September 30, 2018 and June 30, 2018 , respectively. We file income tax returns with the Internal Revenue Service, or IRS, California and various states and foreign tax jurisdictions in which we have filing obligations. The statute of limitations remains open from fiscal 2016 for federal tax purposes, from fiscal 2014 in state jurisdictions, and from fiscal 2013 in foreign jurisdictions. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years which have been carried forward and may be audited in subsequent years when utilized. Due to operating losses in previous years and continued earnings volatility, we maintain a valuation allowance on the majority of our deferred tax assets. Our valuation allowance at June 30, 2018 was $58.3 million . In evaluating our ability to recover our deferred tax assets each quarter, we consider all available positive and negative evidence, including current and previous operating results, ability to carryback losses for a tax refund, and forecasts of future operating results.

Segments

Segments	3 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segments	Segments We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our chief executive officer, or CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments. In addition, with the exception of accounts receivable and goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. We report results in three business segments: Automotive - Our automotive segment utilizes our connected car platform to deliver enhanced location-based navigation services to automobile manufacturers and tier ones. We primarily offer three variations of our connected car products and services to our automobile manufacturer and tier one customers. First, we offer on-board navigation systems that are built into vehicles with all key elements of the system residing in the vehicle as a self-contained application along with the related software and content. Our on-board navigation products do not require access to the Internet or wireless networks to function. Second, we offer advanced hybrid navigation solutions that contain on-board functionality and also add cloud functionality such as cloud search, cloud routing, map updates and “live” data. We refer to these solutions as hybrid navigation. Third, we offer mobile phone-based navigation solutions that run on the phone and provide an interactive map and navigation instructions to the vehicle’s video screen and audio system , which we refer to as brought-in navigation. Finally, we offer a Navigation Software Development Kit, or SDK, that enables our customers to add mapping and location capabilities to their cloud, mobile and on-board automotive applications. Advertising - Our advertising segment provides interactive mobile advertisements on behalf of our advertising clients to consumers based specifically on the location of the user and other sophisticated targeting capabilities. Our customers include advertisers and advertising agencies. Mobile Navigation - Our mobile navigation segment provides our map and navigation platform to end users through mobile devices. We distribute our services primarily through our wireless carrier partners. Our segment results for the three months ended September 30, 2018 and 2017 were as follows (dollars in thousands): Three Months Ended 2018 2017 Automotive Revenue $ 43,451 $ 45,608 Cost of revenue 26,959 30,861 Gross profit $ 16,492 $ 14,747 Gross margin 38 % 32 % Advertising Revenue $ 5,947 $ 7,615 Cost of revenue 3,220 3,412 Gross profit $ 2,727 $ 4,203 Gross margin 46 % 55 % Mobile Navigation Revenue $ 2,770 $ 3,739 Cost of revenue 925 1,550 Gross profit $ 1,845 $ 2,189 Gross margin 67 % 59 % Total Revenue $ 52,168 $ 56,962 Cost of revenue 31,104 35,823 Gross profit $ 21,064 $ 21,139 Gross margin 40 % 37 %

Summary of business and signi_2

Summary of business and significant accounting policies (Policies)	3 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall . The results of Jitu did not have a material impact on our financial statements for the three months ended September 30, 2018 and 2017 . The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2018 , included in our Annual Report on Form 10-K for fiscal 2018 filed with the U.S. Securities and Exchange Commission, or SEC, on September 12, 2018. Effective July 1, 2018, we adopted the requirements of Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) as discussed in the section titled “ Recently adopted accounting pronouncements ” of this Note 1. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with this standard, as indicated by references to “as adjusted” in these condensed consolidated financial statements and related notes.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates.
Concentrations of risk and significant customers	Concentrations of risk and significant customers Revenue related to products and services provided through Ford Motor Company and affiliated entities, or Ford, comprised 60% and 73% of revenue for the three months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 and June 30, 2018 , receivables due from Ford were 50% and 56% of total accounts receivable, respectively.
Goodwill	Goodwill Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually on April 1 or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the three months ended March 31, 2018, certain mobile navigation customer contracts were amended and certain other customers indicated their intent with respect to terminating services in the near term. Based upon a qualitative assessment indicating that it was more likely than not that the fair value of the mobile navigation reporting unit was less than its carrying value, we performed an interim goodwill impairment test for our mobile navigation segment. In assessing its fair value, we made assumptions regarding our estimated future cash flows, weighted average cost of capital and timing over which the cash flows will occur, amongst other factors.
Revenue recognition	Revenue recognition The core principle of ASC 606 is to recognize revenue to depict the transfer of products or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. This principle is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the company satisfies a performance obligation We generate revenue primarily from software licenses, service subscriptions and customized software development fees, as well as the delivery of advertising impressions. We evaluate whether it is appropriate to recognize revenue based on the gross amount billed to our customers or the net amount earned as revenue. Since we control the products or services prior to their transfer to the customer, we report our automotive, advertising and mobile navigation revenue on a gross basis. This assessment is based primarily on our ultimate primary responsibility for fulfilling the promises made with respect to the products and services as well as the degree of discretion we have in establishing pricing. Royalties for on-board navigation solutions are generally earned at various points in time, depending upon the individual customer agreement. We earn each royalty upon either the re-imaging of the software on each individual memory card or the time at which each vehicle is produced. Royalties for brought-in navigation solutions are earned upon vehicle sales reporting or upon initial usage by the end user. Product revenue We generate product revenue from the delivery of our on-board automotive navigation solutions, specified map updates and customized software development. We recognize revenue from on-board automotive navigation solutions upon transfer of control of the customized software and any associated integrated content together forming a distinct performance obligation. Transfer of control generally occurs at a point in time upon acceptance. Any royalties for the use of distinct software combined with integrated content, with an allocation of the transaction price based on the relative SSP of map updates, specified upgrades, and other services as applicable, are recognized at the later of when the royalties are earned or when transfer of control of the related performance obligation has occurred. For hybrid automotive solutions, which contain on-board software and cloud functionality, the transaction price allocated to the on-board component is generally recognized as product revenue as described above, and the transaction price allocated to the included cloud functionality based on relative SSP is generally recognized as services revenue. Since the on-board software is still the predominant item in the hybrid solution, the royalties recognition guidance applies as it does for on-board navigation solutions described above. Our brought-in automotive navigation solutions as described below are subject to variable consideration and constraint guidance. Services revenue We derive services revenue primarily from our brought-in automotive navigation solutions. Since these contracts typically contain a substantial amount of variable consideration that is required to be estimated and included in the transaction price, we include in the transaction price only variable consideration such that it is probable that a risk of significant revenue reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Total variable consideration to be received is estimated at contract inception and updated at each reporting date. We utilize the expected value method and consider expected unit volume combined with a risk-based probability based on factors including, but not limited to: model year cycles, customer history, technology life cycles, nature of competition and other contract-specific factors. Because customers of our brought-in automotive navigation solutions simultaneously receive and consume the benefit from our performance, we recognize revenue ratably over the period the services obligation is expected to be fulfilled, generally 8 to 12 years, as this provides a faithful depiction of the transfer of control. We also derive services revenue from the delivery of advertising impressions. We recognize revenue when transfer of control of the related advertising services occur based on the specific terms of each advertising contract, which are generally based on the number of ad impressions delivered. Substantially all contracts for advertising services are cancellable within a short period of notice, and we assess whether pricing within such contracts create any material right which could extend the expected term of the contract beyond the cancellable term. In addition, we derive a declining amount of services revenue from subscriptions to access our mobile navigation services, which are generally provided through our wireless carrier customers that offer our services to their subscribers. Our wireless carrier customers typically pay us based on a revenue sharing arrangement or a monthly subscription fee per end user, which is considered variable consideration. For such variable consideration related to our mobile navigation services, these fees are recognized in the month in which they are earned because the terms of the variable payments relate specifically to the outcome from transferring the distinct time increment (month) of service, which is consistent with the allocation objective when considering all of the performance obligations and payment terms in the contract. We recognize monthly fees related to our mobile navigation services in the month we provide the services. We defer amounts received or billed in advance of the service being provided and recognize the deferred amounts when the obligation has been fulfilled. Our agreements do not contain general rights of refund once the service has been provided. In certain instances, due to the nature and timing of monthly revenue and reporting from our customers, we may be required to make estimates of the amount of revenue to recognize from a customer for the current period. Estimates for revenue include our consideration of certain factors and information, including subscriber data, historical subscription and revenue reporting trends, end user subscription data from our internal systems, and data from comparable distribution channels of our other customers. We record any differences between estimated revenue and actual revenue in the reporting period when we determine the actual amounts. To date, actual amounts have not differed materially from our estimates. Disaggregation of revenue In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition, and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended September 30, 2018 2017 Product On-board automotive navigation solutions (point in time) (1) $ 40,471 $ 42,659 Total product revenue 40,471 42,659 Services Brought-in automotive navigation solutions (over time) (2) 2,980 2,949 Advertising services (point in time) 5,947 7,615 Mobile navigation services (over time) 2,770 3,739 Total services revenue 11,697 14,303 Total revenue $ 52,168 $ 56,962 (1) Includes royalties earned and recognized at the point in time usage occurs, map updates and customized software development fees. (2) Includes royalties earned and recognized over time from the allocation of transaction price to service obligations. Contracts with multiple performance obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on, if available, observable prices for those related products and services when sold separately. When observable prices are not available, we determine SSP based on our overall pricing trends and objectives, taking into consideration market conditions and other factors, including the value of the contracts, the products and services sold, and stated prices for renewal. In such instances, we apply the expected cost plus margin method and the residual method in cases where we have not yet established a price and the product or service has not previously been sold on a standalone basis. Contract assets Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of September 30, 2018 and June 30, 2018 , we had no contract assets. Deferred revenue Deferred revenue consists primarily of amounts that have been invoiced, and for which we have the right to bill, in advance of performance obligations being satisfied and revenue being recognized under our contracts with customers. Deferred revenue associated with performance obligations that are anticipated to be satisfied during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent deferred revenue in our condensed consolidated balance sheets. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust consideration for the effects of a significant financing portion for periods of one year or less, for example, in the case of customized software development fees paid in advance of acceptance of the software. Substantially all brought-in automotive navigation solutions contain consideration paid significantly in advance of our provision of the services. In these cases, we have determined such contracts do not include a significant financing component, since neither we nor the applicable automobile manufacturer or tier one is substantially in control of such consideration, as revenue from these contracts is driven by future sales demand of a particular vehicle. Cost of revenue Our cost of revenue consists primarily of the cost of third-party royalty based content, such as map, points of interest, or POI, traffic, gas price and weather data, and voice recognition technology that we use in providing our personalized navigation services. Our cost of revenue also includes the cost of third-party exchange ad inventory as well as expenses associated with outsourced hosting services, data center operations, customer support, the amortization of capitalized software, recognition of deferred customized software development costs, stock-based compensation and amortization of acquired developed technology. Deferred costs We capitalize and defer recognition of certain third-party royalty-based content costs associated with the fulfillment of future automotive product and services obligations, and we recognize these deferred content costs as cost of revenue as we transfer control of the related performance obligation. Deferred costs are classified as current or non-current consistent with the periods over which the performance obligations are anticipated to be satisfied. Deferred costs also include the cost of customized software we develop for customers. We begin deferring development costs when they relate directly to a contract or specific anticipated contract and such costs are incurred to satisfy performance obligations in the future, provided they are expected to be recovered. We recognize these deferred software development costs as cost of revenue upon transfer of control of the associated performance obligation. We evaluate contract cost deferrals for impairment on a quarterly basis or whenever events or changes in circumstances indicate that a project may require recognition of a contract loss. We did not record any impairment losses during the three months ended September 30, 2018 and 2017 . In connection with our usage of licensed third-party content, our contracts with certain licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of revenue derived from the number of paying end users. These contracts contain obligations for the licensor to provide ongoing services and, accordingly, we record any minimum guaranteed royalty payments as an asset when paid and amortize the amount to cost of revenue over the applicable period. Any additional royalties due based on actual usage are expensed monthly as incurred.
Recent accounting pronouncements	Recently adopted accounting pronouncements In November 2016, the Financial Accounting Standards Board, or FASB, issued new guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending total amounts shown in the statement of cash flows. The new standard was effective for us in our first quarter of fiscal 2019 and requires a retrospective method of adoption. We adopted this standard on July 1, 2018 on a retrospective basis, resulting in immaterial changes to our previously reported condensed consolidated statement of cash flows for the three months ended September 30, 2017 . In August 2016, the FASB issued new guidance which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The new standard was effective for us in our first quarter of fiscal 2019. We adopted this standard on July 1, 2018, and it did not have a material impact to our condensed consolidated statements of cash flows. In March 2016, the FASB issued new guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross versus net. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. The new standard was effective for us in our first quarter of fiscal 2019. We adopted this standard on July 1, 2018 in connection with our adoption of ASU 2014-09 discussed below, and it did not have a material impact to our condensed consolidated financial statements. In January 2016, the FASB issued new guidance that amends the accounting and disclosures of financial instruments, including a provision that requires equity investments (except for investments accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in current earnings. A practicality exception applies to those equity investments that do not have a readily determinable fair value. These investments may be measured at cost, adjusted for changes in observable prices minus impairment. The new standard was effective prospectively for us in our first quarter of fiscal 2019 for our equity investments, which were previously accounted for under the cost-method. We adopted this standard on July 1, 2018. See Note 4 to these condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . Under Topic 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In conjunction with Topic 606, a new subtopic, ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , was also issued. The updated standard replaces most existing revenue recognition and certain cost guidance under GAAP. Collectively, we refer to Topic 606 and Subtopic 340-40 as “ASC 606.” We adopted ASC 606 effective July 1, 2018, utilizing the full retrospective transition method. Adoption of ASC 606 resulted in changes to our accounting policies for revenue recognition and deferred costs as detailed below. We applied ASC 606 using a practical expedient where the consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application is not disclosed. The effect of adopting ASC 606 on fiscal 2018 was material to our statements of operations and balance sheets as a result of its impact on the recognition of revenue and associated third-party content costs for certain of our on-board and brought-in automotive navigation solutions. The adoption of ASC 606 had no significant impact on our advertising and mobile navigation business segments. The adoption of ASC 606 resulted in reductions to deferred costs (asset) and deferred revenue (liability) balances, and accelerated the recognition of revenues and deferred costs in the automotive segment. With respect to on-board automotive solutions, historically we recognized revenue and associated content costs over the life of our contractual obligations when map updates were included, and we deferred substantially all revenue and associated content costs pending the delivery of future specified upgrades. Instead, as of July 1, 2018, we recognize revenue related to royalties for distinct software and content that has been accepted as transfer of control takes place, with an allocation of the transaction price based on the relative standalone selling price, or SSP, of map updates, specified upgrades, and other services as applicable, which we will recognize with the associated content costs at a point in time or over time as we transfer control of the related performance obligation. Regarding brought-in automotive solutions, historically we recognized revenue for each royalty over the expected remaining term of the service obligation. Effective July 1, 2018, since these contracts contain variable consideration we will estimate the total transaction price each reporting period using a probability assessment, and then recognize revenue ratably over the period the services obligation is expected to be fulfilled, as further described in the section titled “ Services revenue ” of this Note 1. Development costs subject to ASC 340-40 incurred to fulfill future obligations under certain actual or anticipated contracts for automotive solutions are capitalized, provided they are expected to be recovered, and then recognized as control of the related performance obligations is transferred. Historically, such costs were not capitalized until receipt of a signed contract or purchase order for a fixed amount, provided the costs were probable of being recovered. Under ASC 340-40, we are required to capitalize such costs in anticipation of a contract, provided the costs are expected to be recovered; thus, increasing the amount of costs we capitalize under ASC 340-40. For on-board automotive solutions, such capitalized costs represent the customized portion of software development, which will continue to be recognized upon acceptance of the software under ASC 340-40 since acceptance is generally required for control of the software to transfer. For brought-in automotive solutions, such costs will be amortized over the period the services obligation is expected to be fulfilled, since software development does not represent a distinct performance obligation in the case of brought-in automotive solutions. Historically, we recognized such costs for brought-in automotive solutions upon acceptance of the software. We adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC 606. Summarized financial information depicting the impact of ASC 606 is presented below. Our historical net cash flows provided by or used in operating, investing and financing activities are not impacted by the adoption of ASC 606. (Amounts in thousands, except per share data): As of June 30, 2018 As Reported Adjustments As Adjusted Assets Deferred costs $ 31,888 $ (21,982 ) $ 9,906 Deferred costs, noncurrent 109,269 (62,906 ) 46,363 Liabilities and stockholders’ equity Deferred revenue 52,871 (34,676 ) 18,195 Deferred revenue, noncurrent 182,236 (128,381 ) 53,855 Accumulated deficit (135,042 ) 78,172 (56,870 ) Three Months Ended September 30, 2017 As Reported Adjustments As Adjusted Revenue: Product $ 23,964 $ 18,695 $ 42,659 Services 12,694 1,609 14,303 Total revenue 36,658 20,304 56,962 Cost of revenue: Product 14,674 14,767 29,441 Services 6,173 209 6,382 Total cost of revenue 20,847 14,976 35,823 Gross profit 15,811 5,328 21,139 Operating expenses: Research and development 21,082 (401 ) 20,681 Total operating expenses 31,607 (401 ) 31,206 Loss from operations (15,796 ) 5,729 (10,067 ) Net loss (16,098 ) 5,729 (10,369 ) Net loss per share, basic and diluted $ (0.37 ) $ 0.13 $ (0.24 ) The following accounting policies have been updated to reflect the adoption of ASC 606. Revenue recognition The core principle of ASC 606 is to recognize revenue to depict the transfer of products or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. This principle is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the company satisfies a performance obligation We generate revenue primarily from software licenses, service subscriptions and customized software development fees, as well as the delivery of advertising impressions. We evaluate whether it is appropriate to recognize revenue based on the gross amount billed to our customers or the net amount earned as revenue. Since we control the products or services prior to their transfer to the customer, we report our automotive, advertising and mobile navigation revenue on a gross basis. This assessment is based primarily on our ultimate primary responsibility for fulfilling the promises made with respect to the products and services as well as the degree of discretion we have in establishing pricing. Royalties for on-board navigation solutions are generally earned at various points in time, depending upon the individual customer agreement. We earn each royalty upon either the re-imaging of the software on each individual memory card or the time at which each vehicle is produced. Royalties for brought-in navigation solutions are earned upon vehicle sales reporting or upon initial usage by the end user. Product revenue We generate product revenue from the delivery of our on-board automotive navigation solutions, specified map updates and customized software development. We recognize revenue from on-board automotive navigation solutions upon transfer of control of the customized software and any associated integrated content together forming a distinct performance obligation. Transfer of control generally occurs at a point in time upon acceptance. Any royalties for the use of distinct software combined with integrated content, with an allocation of the transaction price based on the relative SSP of map updates, specified upgrades, and other services as applicable, are recognized at the later of when the royalties are earned or when transfer of control of the related performance obligation has occurred. For hybrid automotive solutions, which contain on-board software and cloud functionality, the transaction price allocated to the on-board component is generally recognized as product revenue as described above, and the transaction price allocated to the included cloud functionality based on relative SSP is generally recognized as services revenue. Since the on-board software is still the predominant item in the hybrid solution, the royalties recognition guidance applies as it does for on-board navigation solutions described above. Our brought-in automotive navigation solutions as described below are subject to variable consideration and constraint guidance. Services revenue We derive services revenue primarily from our brought-in automotive navigation solutions. Since these contracts typically contain a substantial amount of variable consideration that is required to be estimated and included in the transaction price, we include in the transaction price only variable consideration such that it is probable that a risk of significant revenue reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Total variable consideration to be received is estimated at contract inception and updated at each reporting date. We utilize the expected value method and consider expected unit volume combined with a risk-based probability based on factors including, but not limited to: model year cycles, customer history, technology life cycles, nature of competition and other contract-specific factors. Because customers of our brought-in automotive navigation solutions simultaneously receive and consume the benefit from our performance, we recognize revenue ratably over the period the services obligation is expected to be fulfilled, generally 8 to 12 years, as this provides a faithful depiction of the transfer of control. We also derive services revenue from the delivery of advertising impressions. We recognize revenue when transfer of control of the related advertising services occur based on the specific terms of each advertising contract, which are generally based on the number of ad impressions delivered. Substantially all contracts for advertising services are cancellable within a short period of notice, and we assess whether pricing within such contracts create any material right which could extend the expected term of the contract beyond the cancellable term. In addition, we derive a declining amount of services revenue from subscriptions to access our mobile navigation services, which are generally provided through our wireless carrier customers that offer our services to their subscribers. Our wireless carrier customers typically pay us based on a revenue sharing arrangement or a monthly subscription fee per end user, which is considered variable consideration. For such variable consideration related to our mobile navigation services, these fees are recognized in the month in which they are earned because the terms of the variable payments relate specifically to the outcome from transferring the distinct time increment (month) of service, which is consistent with the allocation objective when considering all of the performance obligations and payment terms in the contract. We recognize monthly fees related to our mobile navigation services in the month we provide the services. We defer amounts received or billed in advance of the service being provided and recognize the deferred amounts when the obligation has been fulfilled. Our agreements do not contain general rights of refund once the service has been provided. In certain instances, due to the nature and timing of monthly revenue and reporting from our customers, we may be required to make estimates of the amount of revenue to recognize from a customer for the current period. Estimates for revenue include our consideration of certain factors and information, including subscriber data, historical subscription and revenue reporting trends, end user subscription data from our internal systems, and data from comparable distribution channels of our other customers. We record any differences between estimated revenue and actual revenue in the reporting period when we determine the actual amounts. To date, actual amounts have not differed materially from our estimates. Disaggregation of revenue In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition, and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended September 30, 2018 2017 Product On-board automotive navigation solutions (point in time) (1) $ 40,471 $ 42,659 Total product revenue 40,471 42,659 Services Brought-in automotive navigation solutions (over time) (2) 2,980 2,949 Advertising services (point in time) 5,947 7,615 Mobile navigation services (over time) 2,770 3,739 Total services revenue 11,697 14,303 Total revenue $ 52,168 $ 56,962 (1) Includes royalties earned and recognized at the point in time usage occurs, map updates and customized software development fees. (2) Includes royalties earned and recognized over time from the allocation of transaction price to service obligations. Contracts with multiple performance obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on, if available, observable prices for those related products and services when sold separately. When observable prices are not available, we determine SSP based on our overall pricing trends and objectives, taking into consideration market conditions and other factors, including the value of the contracts, the products and services sold, and stated prices for renewal. In such instances, we apply the expected cost plus margin method and the residual method in cases where we have not yet established a price and the product or service has not previously been sold on a standalone basis. Contract assets Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of September 30, 2018 and June 30, 2018 , we had no contract assets. Deferred revenue Deferred revenue consists primarily of amounts that have been invoiced, and for which we have the right to bill, in advance of performance obligations being satisfied and revenue being recognized under our contracts with customers. Deferred revenue associated with performance obligations that are anticipated to be satisfied during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent deferred revenue in our condensed consolidated balance sheets. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust consideration for the effects of a significant financing portion for periods of one year or less, for example, in the case of customized software development fees paid in advance of acceptance of the software. Substantially all brought-in automotive navigation solutions contain consideration paid significantly in advance of our provision of the services. In these cases, we have determined such contracts do not include a significant financing component, since neither we nor the applicable automobile manufacturer or tier one is substantially in control of such consideration, as revenue from these contracts is driven by future sales demand of a particular vehicle. Cost of revenue Our cost of revenue consists primarily of the cost of third-party royalty based content, such as map, points of interest, or POI, traffic, gas price and weather data, and voice recognition technology that we use in providing our personalized navigation services. Our cost of revenue also includes the cost of third-party exchange ad inventory as well as expenses associated with outsourced hosting services, data center operations, customer support, the amortization of capitalized software, recognition of deferred customized software development costs, stock-based compensation and amortization of acquired developed technology. Deferred costs We capitalize and defer recognition of certain third-party royalty-based content costs associated with the fulfillment of future automotive product and services obligations, and we recognize these deferred content costs as cost of revenue as we transfer control of the related performance obligation. Deferred costs are classified as current or non-current consistent with the periods over which the performance obligations are anticipated to be satisfied. Deferred costs also include the cost of customized software we develop for customers. We begin deferring development costs when they relate directly to a contract or specific anticipated contract and such costs are incurred to satisfy performance obligations in the future, provided they are expected to be recovered. We recognize these deferred software development costs as cost of revenue upon transfer of control of the associated performance obligation. We evaluate contract cost deferrals for impairment on a quarterly basis or whenever events or changes in circumstances indicate that a project may require recognition of a contract loss. We did not record any impairment losses during the three months ended September 30, 2018 and 2017 . In connection with our usage of licensed third-party content, our contracts with certain licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of revenue derived from the number of paying end users. These contracts contain obligations for the licensor to provide ongoing services and, accordingly, we record any minimum guaranteed royalty payments as an asset when paid and amortize the amount to cost of revenue over the applicable period. Any additional royalties due based on actual usage are expensed monthly as incurred. Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2018 (as adjusted) $ 46,790 $ 9,479 $ 56,269 Content licensing costs incurred 29,114 — 29,114 Customized software development costs incurred — 554 554 Less: cost of revenue recognized (25,028 ) (601 ) (25,629 ) Balance, September 30, 2018 $ 50,876 $ 9,432 $ 60,308 Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , or ASU 2018-15, which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This guidance is effective for us in our first quarter of fiscal 2021. Early adoption is permitted and the guidance allows for a retrospective or prospective application. We are evaluating the impact of the adoption of this standard on our consolidated financial statements. With the exception of the recently adopted and new accounting pronouncements discussed above, there have been no other changes in accounting pronouncements during the three months ended September 30, 2018 , as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2018, that are of significance or potential significance to us.

Summary of business and signi_3

Summary of business and significant accounting policies (Tables)	3 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated other comprehensive loss, net of tax	The components of accumulated other comprehensive loss, net of related taxes, and activity as of September 30, 2018 , were as follows (in thousands): Foreign Currency Unrealized Total Balance, net of tax as of June 30, 2018 $ (1,163 ) $ (692 ) $ (1,855 ) Other comprehensive income (loss) before reclassifications, net of tax (217 ) 89 (128 ) Amount reclassified from accumulated other comprehensive loss, net of tax — 2 2 Other comprehensive income (loss), net of tax (217 ) 91 (126 ) Balance, net of tax as of September 30, 2018 $ (1,380 ) $ (601 ) $ (1,981 )
Schedule of adjusted financial statements	We adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC 606. Summarized financial information depicting the impact of ASC 606 is presented below. Our historical net cash flows provided by or used in operating, investing and financing activities are not impacted by the adoption of ASC 606. (Amounts in thousands, except per share data): As of June 30, 2018 As Reported Adjustments As Adjusted Assets Deferred costs $ 31,888 $ (21,982 ) $ 9,906 Deferred costs, noncurrent 109,269 (62,906 ) 46,363 Liabilities and stockholders’ equity Deferred revenue 52,871 (34,676 ) 18,195 Deferred revenue, noncurrent 182,236 (128,381 ) 53,855 Accumulated deficit (135,042 ) 78,172 (56,870 ) Three Months Ended September 30, 2017 As Reported Adjustments As Adjusted Revenue: Product $ 23,964 $ 18,695 $ 42,659 Services 12,694 1,609 14,303 Total revenue 36,658 20,304 56,962 Cost of revenue: Product 14,674 14,767 29,441 Services 6,173 209 6,382 Total cost of revenue 20,847 14,976 35,823 Gross profit 15,811 5,328 21,139 Operating expenses: Research and development 21,082 (401 ) 20,681 Total operating expenses 31,607 (401 ) 31,206 Loss from operations (15,796 ) 5,729 (10,067 ) Net loss (16,098 ) 5,729 (10,369 ) Net loss per share, basic and diluted $ (0.37 ) $ 0.13 $ (0.24 )
Schedule of disaggregation of revenue	In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition, and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended September 30, 2018 2017 Product On-board automotive navigation solutions (point in time) (1) $ 40,471 $ 42,659 Total product revenue 40,471 42,659 Services Brought-in automotive navigation solutions (over time) (2) 2,980 2,949 Advertising services (point in time) 5,947 7,615 Mobile navigation services (over time) 2,770 3,739 Total services revenue 11,697 14,303 Total revenue $ 52,168 $ 56,962 (1) Includes royalties earned and recognized at the point in time usage occurs, map updates and customized software development fees. (2) Includes royalties earned and recognized over time from the allocation of transaction price to service obligations.
Changes in the balance of total deferred costs	Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2018 (as adjusted) $ 46,790 $ 9,479 $ 56,269 Content licensing costs incurred 29,114 — 29,114 Customized software development costs incurred — 554 554 Less: cost of revenue recognized (25,028 ) (601 ) (25,629 ) Balance, September 30, 2018 $ 50,876 $ 9,432 $ 60,308 Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Beginning balance, June 30, 2018 (as adjusted) $ 72,050 Revenue recognized that was included in beginning balance (6,616 ) Amount billed, net of revenue recognized that was not included in beginning balance 13,489 Ending balance, September 30, 2018 $ 78,923

Net income (loss) per share (Ta

Net income (loss) per share (Tables)	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net loss per share	The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended 2018 2017 Net loss $ (7,943 ) $ (10,369 ) Weighted average common shares used in computing net loss per share, basic and diluted 45,018 44,079 Net loss per share, basic and diluted $ (0.18 ) $ (0.24 )
Schedule of shares excluded from the computation of diluted net loss per share for the periods presented	The following potential shares outstanding as of September 30, 2018 and 2017 were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect (in thousands): September 30, 2018 2017 Stock options 5,263 5,599 Restricted stock units 2,536 3,035 Total 7,799 8,634

Cash, cash equivalents and sh_2

Cash, cash equivalents and short-term investments (Tables)	3 Months Ended
	Sep. 30, 2018
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Schedule of cash, cash equivalents and short-term investments	Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2018 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 11,053 $ — $ — $ 11,053 Cash equivalents: Money market mutual funds 196 — — 196 U.S. treasury securities 200 — — 200 U.S. agency securities 500 — — 500 Commercial paper 1,247 — — 1,247 Corporate bonds 400 — — 400 Total cash equivalents 2,543 — — 2,543 Total cash and cash equivalents 13,596 — — 13,596 Short-term investments: U.S. treasury securities 5,237 — (36 ) 5,201 U.S. agency securities 1,799 — (12 ) 1,787 Asset-backed securities 7,853 1 (66 ) 7,788 Municipal securities 3,220 — (4 ) 3,216 Commercial paper 3,983 — (1 ) 3,982 Corporate bonds 46,048 6 (353 ) 45,701 Total short-term investments 68,140 7 (472 ) 67,675 Cash, cash equivalents and short-term investments $ 81,736 $ 7 $ (472 ) $ 81,271 Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2018 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 10,202 $ — $ — $ 10,202 Cash equivalents: Money market mutual funds 3,751 — — 3,751 U.S. treasury securities 498 — — 498 Commercial paper 2,666 — — 2,666 Total cash equivalents 6,915 — — 6,915 Total cash and cash equivalents 17,117 — — 17,117 Short-term investments: U.S. treasury securities 4,737 — (34 ) 4,703 U.S. agency securities 2,424 — (16 ) 2,408 Asset-backed securities 8,040 1 (72 ) 7,969 Municipal securities 2,220 — (4 ) 2,216 Commercial paper 1,249 — — 1,249 Corporate bonds 49,717 2 (435 ) 49,284 Total short-term investments 68,387 3 (561 ) 67,829 Cash, cash equivalents and short-term investments $ 85,504 $ 3 $ (561 ) $ 84,946
Schedule of cost and estimated fair value of short-term fixed income securities classified as short-term investments	The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months or a continuous unrealized loss position for twelve months or greater, as of September 30, 2018 and June 30, 2018 (in thousands): September 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 4,219 $ (21 ) $ 981 $ (15 ) $ 5,200 $ (36 ) U.S. agency securities 994 (6 ) 1,293 (6 ) 2,287 (12 ) Asset-backed securities 3,779 (25 ) 3,400 (41 ) 7,179 (66 ) Municipal securities 2,716 (4 ) — — 2,716 (4 ) Commercial paper 5,229 (1 ) — — 5,229 (1 ) Corporate bonds 24,920 (214 ) 15,285 (139 ) 40,205 (353 ) Total $ 41,857 $ (271 ) $ 20,959 $ (201 ) $ 62,816 $ (472 ) June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 4,703 $ (34 ) $ — $ — $ 4,703 $ (34 ) U.S. agency securities 1,118 (6 ) 1,290 (10 ) 2,408 (16 ) Asset-backed securities 5,368 (69 ) 1,562 (3 ) 6,930 (72 ) Municipal securities 1,716 (4 ) — — 1,716 (4 ) Commercial paper 1,249 — — — 1,249 — Corporate bonds 34,982 (318 ) 10,880 (117 ) 45,862 (435 ) Total $ 49,136 $ (431 ) $ 13,732 $ (130 ) $ 62,868 $ (561 ) There were 90 securities and 111 securities in an unrealized loss position for less than twelve months at September 30, 2018 and at June 30, 2018 , respectively, and 44 securities and 25 securities in an unrealized loss position for twelve months or greater at September 30, 2018 and at June 30, 2018 , respectively. The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of September 30, 2018 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 36,318 $ 36,186 Due between one and two years 23,888 23,637 Due between two and three years 7,934 7,852 Total $ 68,140 $ 67,675
Schedule of fair value and gross unrealized losses related to available-for-sale securities	The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months or a continuous unrealized loss position for twelve months or greater, as of September 30, 2018 and June 30, 2018 (in thousands): September 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 4,219 $ (21 ) $ 981 $ (15 ) $ 5,200 $ (36 ) U.S. agency securities 994 (6 ) 1,293 (6 ) 2,287 (12 ) Asset-backed securities 3,779 (25 ) 3,400 (41 ) 7,179 (66 ) Municipal securities 2,716 (4 ) — — 2,716 (4 ) Commercial paper 5,229 (1 ) — — 5,229 (1 ) Corporate bonds 24,920 (214 ) 15,285 (139 ) 40,205 (353 ) Total $ 41,857 $ (271 ) $ 20,959 $ (201 ) $ 62,816 $ (472 ) June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 4,703 $ (34 ) $ — $ — $ 4,703 $ (34 ) U.S. agency securities 1,118 (6 ) 1,290 (10 ) 2,408 (16 ) Asset-backed securities 5,368 (69 ) 1,562 (3 ) 6,930 (72 ) Municipal securities 1,716 (4 ) — — 1,716 (4 ) Commercial paper 1,249 — — — 1,249 — Corporate bonds 34,982 (318 ) 10,880 (117 ) 45,862 (435 ) Total $ 49,136 $ (431 ) $ 13,732 $ (130 ) $ 62,868 $ (561 )

Fair value of financial instr_2

Fair value of financial instruments (Tables)	3 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair values of financial instruments	The fair values of these financial instruments were determined using the following inputs at September 30, 2018 (in thousands): Fair Value Measurements at September 30, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents: Money market mutual funds $ 196 $ 196 $ — $ — U.S. treasury securities 200 200 — — U.S. agency securities 500 — 500 — Commercial paper 1,247 — 1,247 — Corporate bonds 400 — 400 — Total cash equivalents 2,543 396 2,147 — Short-term investments: U.S. treasury securities 5,201 5,201 — — U.S. agency securities 1,787 — 1,787 — Asset-backed securities 7,788 — 7,788 — Municipal securities 3,216 — 3,216 — Commercial paper 3,982 — 3,982 — Corporate bonds 45,701 — 45,701 — Total short-term investments 67,675 5,201 62,474 — Cash equivalents and short-term investments $ 70,218 $ 5,597 $ 64,621 $ — The fair values of our financial instruments were determined using the following inputs at June 30, 2018 (in thousands): Fair Value Measurements at June 30, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents: Money market mutual funds $ 3,751 $ 3,751 $ — $ — U.S. treasury securities 498 498 Commercial paper 2,666 — 2,666 — Total cash equivalents 6,915 4,249 2,666 — Short-term investments: U.S. treasury securities 4,703 4,703 — — U.S. agency securities 2,408 — 2,408 — Asset-backed securities 7,969 — 7,969 — Municipal securities 2,216 — 2,216 — Commercial paper 1,249 — 1,249 — Corporate bonds 49,284 — 49,284 — Total short-term investments 67,829 4,703 63,126 — Cash equivalents and short-term investments $ 74,744 $ 8,952 $ 65,792 $ —
Schedule of unrealized gains and losses recorded in other income	A summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities held as of September 30, 2018 is as follows (in thousands): Carrying value (cost basis), June 30, 2018 $ 708 Upward adjustments 1,259 Downward adjustments (including impairment) — Carrying value, September 30, 2018 $ 1,967

Balance sheet information (Tabl

Balance sheet information (Tables)	3 Months Ended
	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Finite-lived intangible assets amortization expense	Intangible assets consisted of the following (in thousands): September 30, June 30, Acquired developed technology $ 13,875 $ 13,875 Less accumulated amortization (11,775 ) (11,491 ) Intangible assets, net $ 2,100 $ 2,384
Schedule of accrued expenses	Accrued expenses consisted of the following (in thousands): September 30, June 30, Accrued compensation and benefits $ 5,854 $ 12,024 Accrued royalties 17,823 16,298 Customer overpayments and related reserves 7,153 5,356 Other accrued expenses 5,208 5,125 Total accrued expenses $ 36,038 $ 38,803

Deferred revenue and remainin_2

Deferred revenue and remaining performance obligations (Tables)	3 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of changes in the balance of total deferred revenue	Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2018 (as adjusted) $ 46,790 $ 9,479 $ 56,269 Content licensing costs incurred 29,114 — 29,114 Customized software development costs incurred — 554 554 Less: cost of revenue recognized (25,028 ) (601 ) (25,629 ) Balance, September 30, 2018 $ 50,876 $ 9,432 $ 60,308 Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2018 are as follows (in thousands): Beginning balance, June 30, 2018 (as adjusted) $ 72,050 Revenue recognized that was included in beginning balance (6,616 ) Amount billed, net of revenue recognized that was not included in beginning balance 13,489 Ending balance, September 30, 2018 $ 78,923

Commitments and contingencies (

Commitments and contingencies (Tables)	3 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future minimum operating lease payments	The aggregate future minimum commitments were comprised of the following (in thousands): Payments Due by Period Total Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Thereafter Operating lease obligations $ 15,534 $ 3,023 $ 4,125 $ 3,012 $ 2,642 $ 2,206 $ 526 Purchase obligations 7,115 2,998 1,491 965 415 415 831 Total contractual obligations $ 22,649 $ 6,021 $ 5,616 $ 3,977 $ 3,057 $ 2,621 $ 1,357

Stock-based compensation (Table

Stock-based compensation (Tables)	3 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option activity	A summary of our stock option activity is as follows (in thousands except per share and contractual life amounts): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Options outstanding as of June 30, 2018 5,116 $ 6.48 Granted 290 $ 5.10 Exercised (5 ) $ 5.01 Canceled or expired (138 ) $ 7.44 Options outstanding as of September 30, 2018 5,263 $ 6.38 5.70 $ 87,949 As of September 30, 2018: Options vested and expected to vest 5,100 $ 6.40 5.60 $ 85,445 Options exercisable 3,884 $ 6.60 4.81 $ 65,956
Restricted stock units award activity	A summary of our restricted stock unit, or RSU, activity is as follows (in thousands except contractual life amounts): Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value RSUs outstanding as of June 30, 2018 3,068 Granted 187 Vested (600 ) Canceled (119 ) RSUs outstanding as of September 30, 2018 2,536 1.47 $ 12,807 As of September 30, 2018: RSUs expected to vest 2,146 1.34 $ 10,839
Summary of shares available for grant activity	A summary of our shares available for grant activity is as follows (in thousands): Number of Shares Shares available for grant as of June 30, 2018 3,169 Additional shares authorized 1,667 Granted (477 ) RSUs withheld for taxes in net share settlements 215 Canceled 257 Shares available for grant as of September 30, 2018 4,831
Stock-based compensation expense	The following table summarizes the stock-based compensation expense recorded for stock options and RSUs issued to employees and nonemployees (in thousands): Three Months Ended 2018 2017 Stock option awards $ 429 $ 596 RSU awards 1,840 1,884 Total stock-based compensation expense $ 2,269 $ 2,480
Assumptions used to estimate weighted average fair value of options	The weighted average assumptions used to value stock option awards granted and the resulting weighted average grant date fair value per share were as follows: Three Months Ended 2018 2017 Expected volatility 39 % 49 % Expected term (in years) 6.87 6.22 Risk-free interest rate 2.99 % 1.64 % Dividend yield — % — % Weighted average grant date fair value per share $ 2.32 $ 3.07

Segments (Tables)

Segments (Tables)	3 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of segment results	Our segment results for the three months ended September 30, 2018 and 2017 were as follows (dollars in thousands): Three Months Ended 2018 2017 Automotive Revenue $ 43,451 $ 45,608 Cost of revenue 26,959 30,861 Gross profit $ 16,492 $ 14,747 Gross margin 38 % 32 % Advertising Revenue $ 5,947 $ 7,615 Cost of revenue 3,220 3,412 Gross profit $ 2,727 $ 4,203 Gross margin 46 % 55 % Mobile Navigation Revenue $ 2,770 $ 3,739 Cost of revenue 925 1,550 Gross profit $ 1,845 $ 2,189 Gross margin 67 % 59 % Total Revenue $ 52,168 $ 56,962 Cost of revenue 31,104 35,823 Gross profit $ 21,064 $ 21,139 Gross margin 40 % 37 %

Summary of business and signi_4

Summary of business and significant accounting policies - Concentration of Risk and Significant Customers (Details) - segment	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3
Customer Concentration Risk | Ford Motor Company | Sales Revenue
Concentration Risk [Line Items]
Concentration risk, percentage of revenue (less than 10%)	60.00%	73.00%
Customer Concentration Risk | Ford Motor Company | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage of revenue (less than 10%)	50.00%	56.00%
Customer Concentration Risk | GM | Sales Revenue
Concentration Risk [Line Items]
Concentration risk, percentage of revenue (less than 10%)	13.00%	10.00%
Customer Concentration Risk | GM | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage of revenue (less than 10%)	16.00%	10.00%

Summary of business and signi_5

Summary of business and significant accounting policies - Goodwill (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Goodwill impairment	$ 2.7

Summary of business and signi_6

Summary of business and significant accounting policies - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	[2]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, net of tax as of June 30, 2018	[1]	$ 109,215
Other comprehensive income (loss) before reclassifications, net of tax		(128)
Amount reclassified from accumulated other comprehensive loss, net of tax		2
Other comprehensive income (loss), net of tax		(126)	$ 387
Balance, net of tax as of September 30, 2018		102,235
AOCI
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, net of tax as of June 30, 2018		(1,855)
Balance, net of tax as of September 30, 2018		(1,981)
Unrealized Gains (Losses) on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, net of tax as of June 30, 2018		(692)
Other comprehensive income (loss) before reclassifications, net of tax		89
Amount reclassified from accumulated other comprehensive loss, net of tax		2
Other comprehensive income (loss), net of tax		91
Balance, net of tax as of September 30, 2018		(601)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, net of tax as of June 30, 2018		(1,163)
Other comprehensive income (loss) before reclassifications, net of tax		(217)
Amount reclassified from accumulated other comprehensive loss, net of tax		0
Other comprehensive income (loss), net of tax		(217)
Balance, net of tax as of September 30, 2018		$ (1,380)
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.

Summary of business and signi_7

Summary of business and significant accounting policies - Long-term Investments (Details) $ in Thousands	Jun. 30, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investment in privately held companies	$ 708

Summary of business and signi_8

Summary of business and significant accounting policies (Adoption of new accounting standard) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	$ (64,813)	$ (56,870)	[1]
[1]	See Note 1 for a summary of adjustments.

Summary of business and signi_9

Summary of business and significant accounting policies (Adoption of the revenue standard) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Jun. 30, 2018
Assets
Deferred costs	$ 13,842			$ 9,906	[1]
Deferred costs, non-current				46,363
Liabilities and stockholders’ equity
Deferred revenue	21,892			18,195	[1]
Deferred revenue, noncurrent	57,031			53,855	[1]
Accumulated deficit	(64,813)			(56,870)	[1]
Revenue:
Total revenue	52,168	$ 56,962	[2]
Cost of revenue:
Total cost of revenue	31,104	35,823	[2]
Gross profit	21,064	21,139	[2]
Operating expenses:
Research and development	20,102	20,681	[2]
Total operating expenses	29,967	31,206	[2]
Loss from operations	(8,903)	(10,067)	[2]
Net loss	$ (7,943)	$ (10,369)	[2],[3],[4]
Basic and diluted (in dollars per share)	$ (0.18)	$ (0.24)	[2]
As Reported
Assets
Deferred costs				31,888
Deferred costs, non-current				109,269
Liabilities and stockholders’ equity
Deferred revenue				52,871
Deferred revenue, noncurrent				182,236
Accumulated deficit				(135,042)
Revenue:
Total revenue		$ 36,658
Cost of revenue:
Total cost of revenue		20,847
Gross profit		15,811
Operating expenses:
Research and development		21,082
Total operating expenses		31,607
Loss from operations		(15,796)
Net loss		$ (16,098)
Basic and diluted (in dollars per share)		$ (0.37)
Accounting Standards Update 2014-09 | Adjustments
Assets
Deferred costs				(21,982)
Deferred costs, non-current				(62,906)
Liabilities and stockholders’ equity
Deferred revenue				(34,676)
Deferred revenue, noncurrent				(128,381)
Accumulated deficit				$ 78,172
Revenue:
Total revenue		$ 20,304
Cost of revenue:
Total cost of revenue		14,976
Gross profit		5,328
Operating expenses:
Research and development		(401)
Total operating expenses		(401)
Loss from operations		5,729
Net loss		$ 5,729
Basic and diluted (in dollars per share)		$ 0.13
Product
Revenue:
Total revenue	$ 40,471	$ 42,659	[2]
Cost of revenue:
Total cost of revenue	23,930	29,441	[2]
Product | As Reported
Revenue:
Total revenue		23,964
Cost of revenue:
Total cost of revenue		14,674
Product | Accounting Standards Update 2014-09 | Adjustments
Revenue:
Total revenue		18,695
Cost of revenue:
Total cost of revenue		14,767
Services
Revenue:
Total revenue	11,697	14,303	[2]
Cost of revenue:
Total cost of revenue	$ 7,174	6,382	[2]
Services | As Reported
Revenue:
Total revenue		12,694
Cost of revenue:
Total cost of revenue		6,173
Services | Accounting Standards Update 2014-09 | Adjustments
Revenue:
Total revenue		1,609
Cost of revenue:
Total cost of revenue		$ 209
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.
[3]	See Note 1 for a summary of adjustments.
[4]	See Note 1 for a summary of adjustments.

Summary of business and sign_10

Summary of business and significant accounting policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenue	$ 52,168	$ 56,962	[1]
Product
Disaggregation of Revenue [Line Items]
Total revenue	40,471	42,659	[1]
Services
Disaggregation of Revenue [Line Items]
Total revenue	11,697	14,303	[1]
Point in Time | On-board automotive navigation solutions
Disaggregation of Revenue [Line Items]
Total revenue	40,471	42,659
Point in Time | Advertising services
Disaggregation of Revenue [Line Items]
Total revenue	5,947	7,615
Over Time | Brought-in automotive navigation solutions
Disaggregation of Revenue [Line Items]
Total revenue	2,980	2,949
Over Time | Mobile navigation services
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,770	$ 3,739
[1]	See Note 1 for a summary of adjustments.

Summary of business and sign_11

Summary of business and significant accounting policies (Deferred Costs) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Jun. 30, 2018
Revenue from External Customer [Line Items]
Contract with customer, asset	$ 0	$ 0
Contract with Customer, Asset [Roll Forward]
Balance, June 30, 2018 (as adjusted)	56,269,000
Content licensing costs incurred	29,114,000
Customized software development costs incurred	554,000
Less: cost of revenue recognized	(25,629,000)
Balance, September 30, 2018	60,308,000
Content
Contract with Customer, Asset [Roll Forward]
Balance, June 30, 2018 (as adjusted)	46,790,000
Content licensing costs incurred	29,114,000
Less: cost of revenue recognized	(25,028,000)
Balance, September 30, 2018	50,876,000
Development
Contract with Customer, Asset [Roll Forward]
Balance, June 30, 2018 (as adjusted)	9,479,000
Content licensing costs incurred	0
Customized software development costs incurred	554,000
Less: cost of revenue recognized	(601,000)
Balance, September 30, 2018	$ 9,432,000

Net income (loss) per share (De

Net income (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net income applicable to common stockholders:
Net loss	$ (7,943)	$ (10,369)	[1],[2],[3]
Weighted average common shares used in computing net loss per share, basic and diluted (in shares)	45,018	44,079	[1]
Net loss per share, basic and diluted (in dollars per share)	$ (0.18)	$ (0.24)	[1]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	7,799	8,634
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,263	5,599
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,536	3,035
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.
[3]	See Note 1 for a summary of adjustments.

Cash, cash equivalents and sh_3

Cash, cash equivalents and short-term investments - Summary of cash, cash equivalents and short-term investments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018		Sep. 30, 2017	[2]
Debt Securities, Available-for-sale [Line Items]
Cash	$ 11,053	$ 10,202
Cash equivalents:
Total cash equivalents	2,543	6,915
Total cash and cash equivalents	13,596	17,117	[1]	$ 17,463
Short-term Investments [Abstract]
Amortized Cost	68,140
Unrealized Gains	7
Unrealized Losses	(472)
Estimated Fair Value	67,675	67,829
Cash, Cash Equivalents and Short-term Investments, amortized cost	81,736
Cash, Cash Equivalents and Short-term Investments, estimated fair value	81,271
Money market mutual funds
Cash equivalents:
Total cash equivalents	196	3,751
U.S. treasury securities
Cash equivalents:
Total cash equivalents	200	498
U.S. agency securities
Cash equivalents:
Total cash equivalents	500
Commercial paper
Cash equivalents:
Total cash equivalents	1,247	2,666
Corporate bonds
Cash equivalents:
Total cash equivalents	400
Cash, cash equivalents and short-term investments
Short-term Investments [Abstract]
Amortized Cost		85,504
Unrealized Gains		3
Unrealized Losses		(561)
Estimated Fair Value		84,946
Short-term Investments
Short-term Investments [Abstract]
Amortized Cost		68,387
Unrealized Gains		3
Unrealized Losses		(561)
Estimated Fair Value		67,829
U.S. treasury securities
Short-term Investments [Abstract]
Amortized Cost	5,237
Unrealized Gains	0
Unrealized Losses	(36)
Estimated Fair Value	5,201
Amortized Cost		4,737
Unrealized Gains		0
Unrealized Losses		(34)
Estimated Fair Value		4,703
U.S. agency securities
Short-term Investments [Abstract]
Amortized Cost	1,799
Unrealized Gains	0
Unrealized Losses	(12)
Estimated Fair Value	1,787	2,408
Amortized Cost		2,424
Unrealized Gains		0
Unrealized Losses		(16)
Estimated Fair Value		2,408
Asset-backed securities
Short-term Investments [Abstract]
Amortized Cost	7,853
Unrealized Gains	1
Unrealized Losses	(66)
Estimated Fair Value	7,788	7,969
Amortized Cost		8,040
Unrealized Gains		1
Unrealized Losses		(72)
Estimated Fair Value		7,969
Municipal securities
Short-term Investments [Abstract]
Amortized Cost	3,220
Unrealized Gains	0
Unrealized Losses	(4)
Estimated Fair Value	3,216	2,216
Amortized Cost		2,220
Unrealized Gains		0
Unrealized Losses		(4)
Estimated Fair Value		2,216
Commercial paper
Short-term Investments [Abstract]
Amortized Cost	3,983
Unrealized Gains	0
Unrealized Losses	(1)
Estimated Fair Value	3,982	1,249
Amortized Cost		1,249
Unrealized Gains		0
Unrealized Losses		0
Estimated Fair Value		1,249
Corporate bonds
Short-term Investments [Abstract]
Amortized Cost	46,048
Unrealized Gains	6
Unrealized Losses	(353)
Estimated Fair Value	$ 45,701	49,284
Amortized Cost		49,717
Unrealized Gains		2
Unrealized Losses		(435)
Estimated Fair Value		$ 49,284
[1]	See Note 1 for a summary of adjustments.
[2]	See Note 1 for a summary of adjustments.

Cash, cash equivalents and sh_4

Cash, cash equivalents and short-term investments - Summary of Fair Value and Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2018USD ($)security	Jun. 30, 2018USD ($)security
Unrealized Losses
Less than 12 Months	$ (271)	$ (431)
12 Months or Greater	(201)	(130)
Total	(472)	(561)
Fair Value
Less than 12 Months	41,857	49,136
12 Months or Greater	20,959	13,732
Total	$ 62,816	$ 62,868
Number of Positions
Less than 12 Months | security	90	111
12 Months or Greater | security	44	25
Corporate bonds
Unrealized Losses
Less than 12 Months	$ (214)	$ (318)
12 Months or Greater	(139)	(117)
Total	(353)	(435)
Fair Value
Less than 12 Months	24,920	34,982
12 Months or Greater	15,285	10,880
Total	40,205	45,862
Commercial paper
Unrealized Losses
Less than 12 Months	(1)	0
12 Months or Greater	0	0
Total	(1)	0
Fair Value
Less than 12 Months	5,229	1,249
12 Months or Greater	0	0
Total	5,229	1,249
Municipal securities
Unrealized Losses
Less than 12 Months	(4)	(4)
12 Months or Greater	0	0
Total	(4)	(4)
Fair Value
Less than 12 Months	2,716	1,716
12 Months or Greater	0	0
Total	2,716	1,716
Asset-backed securities
Unrealized Losses
Less than 12 Months	(25)	(69)
12 Months or Greater	(41)	(3)
Total	(66)	(72)
Fair Value
Less than 12 Months	3,779	5,368
12 Months or Greater	3,400	1,562
Total	7,179	6,930
U.S. treasury securities
Unrealized Losses
Less than 12 Months	(6)	(6)
12 Months or Greater	(6)	(10)
Total	(12)	(16)
Fair Value
Less than 12 Months	994	1,118
12 Months or Greater	1,293	1,290
Total	2,287	2,408
U.S. treasury securities
Unrealized Losses
Less than 12 Months	(21)	(34)
12 Months or Greater	(15)	0
Total	(36)	(34)
Fair Value
Less than 12 Months	4,219	4,703
12 Months or Greater	981	0
Total	$ 5,200	$ 4,703

Cash, cash equivalents and sh_5

Cash, cash equivalents and short-term investments - Summary of cost and estimated fair value of short-term investments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Due within one year	$ 36,318
Due between one and two years	23,888
Due between two and three years	7,934
Amortized Cost	68,140
Due within one year	36,186
Due between one and two years	23,637
Due between two and three years	7,852
Total	$ 67,675	$ 67,829

Fair value of financial instr_3

Fair value of financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	[1]	Jun. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 2,543			$ 6,915
Debt securities, available for sale	67,675			67,829
Cash equivalents and short-term investments	70,218			74,744
Accretion of net premium on short-term investments	5	$ 59
Investment in privately held companies				708
Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	396			4,249
Debt securities, available for sale	5,201			4,703
Cash equivalents and short-term investments	5,597			8,952
Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,147			2,666
Debt securities, available for sale	62,474			63,126
Cash equivalents and short-term investments	64,621			65,792
Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0			0
Debt securities, available for sale	0			0
Cash equivalents and short-term investments	0			0
Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	196			3,751
Money market mutual funds | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	196			3,751
Money market mutual funds | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0			0
Money market mutual funds | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0			0
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	200			498
U.S. treasury securities | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	200			498
U.S. treasury securities | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
U.S. treasury securities | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	500
U.S. agency securities | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
U.S. agency securities | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	500
U.S. agency securities | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,247			2,666
Commercial paper | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0			0
Commercial paper | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,247			2,666
Commercial paper | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0			0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	400
Corporate bonds | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Corporate bonds | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	400
Corporate bonds | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	5,201			4,703
U.S. treasury securities | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	5,201			4,703
U.S. treasury securities | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
U.S. treasury securities | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	1,787			2,408
U.S. agency securities | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
U.S. agency securities | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	1,787			2,408
U.S. agency securities | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	7,788			7,969
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Asset-backed securities | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	7,788			7,969
Asset-backed securities | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	3,216			2,216
Municipal securities | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Municipal securities | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	3,216			2,216
Municipal securities | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	3,982			1,249
Commercial paper | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Commercial paper | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	3,982			1,249
Commercial paper | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	45,701			49,284
Corporate bonds | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	0			0
Corporate bonds | Significant Other Observable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	45,701			49,284
Corporate bonds | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available for sale	$ 0			$ 0
[1]	See Note 1 for a summary of adjustments.

Fair value of financial instr_4

Fair value of financial instruments (Equity Investments) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)
Equity Securities [Roll Forward]
Carrying value (cost basis), June 30, 2018	$ 708
Upward adjustments	1,259
Downward adjustments (including impairment)	0
Carrying value, September 30, 2018	1,967
Equity securities without readily determinable fair value, amount	$ 1,500

Balance sheet information - Int

Balance sheet information - Intangibles and Other Accrued Expenses (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Goodwill	$ 28,700,000		$ 28,700,000
Acquired developed technology	13,875,000		13,875,000
Less accumulated amortization	(11,775,000)		(11,491,000)
Intangible assets, net	2,100,000		2,384,000
Amortization of intangible assets	284,000	$ 283,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,019	720,000
2,020	872,000
2,021	509,000
Accrued Liabilities, Current [Abstract]
Accrued compensation and benefits	5,854,000		12,024,000
Accrued royalties	17,823,000		16,298,000
Customer overpayments and related reserves	7,153,000		5,356,000
Other accrued expenses	5,208,000		5,125,000
Accrued expenses	$ 36,038,000		$ 38,803,000	[1]
[1]	See Note 1 for a summary of adjustments.

Deferred revenue and remainin_3

Deferred revenue and remaining performance obligations - Contract with customer, liability (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)
Contract with Customer, Liability [Roll Forward]
Balance, June 30, 2018 (as adjusted)	$ 72,050
Revenue recognized that was included in beginning balance	(6,616)
Amount billed, net of revenue recognized that was not included in beginning balance	(13,489)
Balance, September 30, 2018	78,923
Cumulative adjustment as a result of changes in the estimate of the transaction price	(400)
Revenue recognized from performance obligations satisfied or partially satisfied in previous periods	$ 400

Deferred revenue and remainin_4

Deferred revenue and remaining performance obligations - Performance Obligation (Details) $ in Millions	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 68.5
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, remaining duration (in years)	5 years
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, remaining duration (in years)	8 years

Commitments and contingencies_2

Commitments and contingencies (Details) $ in Thousands	Sep. 30, 2018USD ($)
Operating lease obligations
Total	$ 15,534
Fiscal 2,019	3,023
Fiscal 2,020	4,125
Fiscal 2,021	3,012
Fiscal 2,022	2,642
Fiscal 2,023	2,206
Thereafter	526
Purchase obligations
Total	7,115
Fiscal 2,019	2,998
Fiscal 2,020	1,491
Fiscal 2,021	965
Fiscal 2,022	415
Fiscal 2,023	415
Thereafter	831
Total contractual obligations
Total contractual obligations	22,649
Fiscal 2,019	6,021
Fiscal 2,020	5,616
Fiscal 2,021	3,977
Fiscal 2,022	3,057
Fiscal 2,023	2,621
Thereafter	$ 1,357

Commitments and contingencies_3

Commitments and contingencies (Narrative) (Details) $ in Thousands	Nov. 22, 2017patent	Aug. 31, 2017patent	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	[1]
Operating Leased Assets [Line Items]
Decrease in deferred rent			$ (35)	$ (191)
Tenant improvement allowance recognition due to lease termination			0	$ 582
Avaya Sublease
Operating Leased Assets [Line Items]
Decrease in deferred rent			538
Tenant improvement allowance recognition due to lease termination			582
Indemnification Agreement
Operating Leased Assets [Line Items]
Number of patents allegedly infringed the PTO reexamined | patent	15	5
Litigation settlement			250
General and Administrative Expense | Indemnification Agreement
Operating Leased Assets [Line Items]
Litigation settlement			$ 250
[1]	See Note 1 for a summary of adjustments.

Stock-based compensation - Narr

Stock-based compensation - Narrative (Details)	3 Months Ended
	Sep. 30, 2018shares
Equity Incentive Plan 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized (in shares)	1,666,666

Stock-based compensation - Summ

Stock-based compensation - Summary of stock option activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Number of Shares
Beginning balance (shares) | shares	5,116
Granted (shares) | shares	290
Exercised (shares) | shares	(5)
Canceled or expired (shares) | shares	(138)
Ending balance (shares) | shares	5,263
Options vested and expected to vest (shares) | shares	5,100
Options exercisable (shares) | shares	3,884
Weighted Average Exercise Price
Weighted average exercise (in dollars per share) | $ / shares	$ 6.48
Granted (in dollars per share) | $ / shares	5.10
Exercised (in dollars per share) | $ / shares	5.01
Canceled and expired (in dollars per share) | $ / shares	7.44
Weighted average exercise (in dollars per share) | $ / shares	6.38
Options vested and expected to vest (in dollars per share) | $ / shares	6.40
Options exercisable (in dollars per share) | $ / shares	$ 6.60
Weighted Average Remaining Contractual Life
Options outstanding (in years)	5 years 8 months 12 days
Options vested and expected to vest (in years)	5 years 7 months 6 days
Options exercisable (in years)	4 years 9 months 22 days
Aggregate Intrinsic Value
Options outstanding | $	$ 87,949
Options vested and expected to vest | $	85,445
Options exercisable | $	$ 65,956

Stock-based compensation - Su_2

Stock-based compensation - Summary of RSU activity (Details) - RSU awards shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)shares
Number of Shares
Beginning balance (shares)	3,068
Granted (in shares)	187
Vested (in shares)	(600)
Canceled (shares)	(119)
Ending balance (shares)	2,536
RSUs outstanding, weighted average remaining contractual life (in years)	1 year 5 months 19 days
RSUs outstanding, aggregate intrinsic value | $	$ 12,807
RSUs expected to vest at period end (shares)	2,146
RSUs expected to vest, weighted average remaining contractual life (in years)	1 year 4 months 2 days
RSUs expected to vest, aggregate intrinsic value | $	$ 10,839

Stock-based compensation - Su_3

Stock-based compensation - Summary of shares available for grant activity (Details) - Equity Incentive Plan 2009	3 Months Ended
	Sep. 30, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward]
Shares available for grant (in shares)	3,169,000
Additional shares authorized (in shares)	1,666,666
Granted (in shares)	(477,000)
RSUs withheld for taxes in net share settlements (in shares)	215,000
Canceled (in shares)	257,000
Shares available for grant (in shares)	4,831,000

Stock-based compensation - Su_4

Stock-based compensation - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,269	$ 2,480	[1]
Stock option awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	429	596
RSU awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,840	$ 1,884
[1]	See Note 1 for a summary of adjustments.

Stock-based compensation - Assu

Stock-based compensation - Assumptions used to estimate weighted average fair value of options (Details) - Stock options - $ / shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (in percentage)	39.00%	49.00%
Expected term (in years)	6 years 10 months 13 days	6 years 2 months 19 days
Risk-free interest rate (in percentage)	2.99%	1.64%
Dividend yield (in percentage)	0.00%	0.00%
Weighted average grant date fair value per share (in dollars per share)	$ 2.32	$ 3.07

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Jun. 30, 2018
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 630	$ 255	[1]
Effective tax rate (percentage)	(9.00%)	(3.00%)
Unrecognized tax benefit	$ 4,700			$ 3,800
Unrecognized tax benefits that would affect effective tax rate	205			98
Interest and penalties related to unrecognized tax positions accrued	$ 100			97
Valuation allowance				$ 58,300
[1]	See Note 1 for a summary of adjustments.

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Revenue	$ 52,168	$ 56,962	[1]
Cost of revenue	31,104	35,823
Gross profit	$ 21,064	$ 21,139	[1]
Gross margin (in percent)	40.00%	37.00%
Automotive
Segment Reporting Information [Line Items]
Revenue	$ 43,451	$ 45,608
Cost of revenue	26,959	30,861
Gross profit	$ 16,492	$ 14,747
Gross margin (in percent)	38.00%	32.00%
Advertising
Segment Reporting Information [Line Items]
Revenue	$ 5,947	$ 7,615
Cost of revenue	3,220	3,412
Gross profit	$ 2,727	$ 4,203
Gross margin (in percent)	46.00%	55.00%
Mobile Navigation
Segment Reporting Information [Line Items]
Revenue	$ 2,770	$ 3,739
Cost of revenue	925	1,550
Gross profit	$ 1,845	$ 2,189
Gross margin (in percent)	67.00%	59.00%
[1]	See Note 1 for a summary of adjustments.