Cover Page
Cover Page | 6 Months Ended |
Dec. 31, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Entity File Number | 001-34720 |
Entity Registrant Name | TELENAV, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 77-0521800 |
Entity Address, Address Line One | 4655 Great America Parkway, Suite 300 |
Entity Address, City or Town | Santa Clara |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95054 |
City Area Code | 408 |
Local Phone Number | 245-3800 |
Title of 12(b) Security | Common stock, $0.001 Par Value per Share |
Trading Symbol | TNAV |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 48,151,687 |
Entity Central Index Key | 0001474439 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 26,347 | $ 27,275 |
Short-term investments | 102,603 | 72,203 |
Accounts receivable, net of allowances of $7 and $7 at December 31, 2019 and June 30, 2019, respectively | 44,463 | 69,781 |
Restricted cash | 1,520 | 1,950 |
Deferred costs | 33,117 | 18,752 |
Prepaid expenses and other current assets | 8,933 | 3,784 |
Assets of discontinued operations | 0 | 6,330 |
Total current assets | 216,983 | 200,075 |
Property and equipment, net | 5,215 | 5,583 |
Operating lease right-of-use assets | 8,749 | |
Deferred income taxes, non-current | 1,401 | 998 |
Goodwill and intangible assets, net | 15,265 | 15,701 |
Deferred costs, non-current | 48,646 | 61,050 |
Other assets | 21,285 | 1,414 |
Assets of discontinued operations, non-current | 0 | 12,194 |
Total assets | 317,544 | 297,015 |
Current liabilities: | ||
Trade accounts payable | 1,113 | 16,061 |
Accrued expenses | 54,182 | 48,899 |
Operating lease liabilities | 3,532 | |
Deferred revenue | 50,416 | 31,270 |
Income taxes payable | 928 | 800 |
Liabilities of discontinued operations | 0 | 3,373 |
Total current liabilities | 110,171 | 100,403 |
Deferred rent, non-current | 1,266 | |
Operating lease liabilities, non-current | 6,459 | |
Deferred revenue, non-current | 93,755 | 103,865 |
Other long-term liabilities | 678 | 811 |
Liabilities of discontinued operations, non-current | 0 | 30 |
Commitments and contingencies | 0 | 0 |
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; 48,151 and 46,911 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively | 48 | 47 |
Additional paid-in capital | 190,593 | 182,349 |
Accumulated other comprehensive loss | (1,538) | (1,477) |
Accumulated deficit | (82,622) | (90,279) |
Total stockholders’ equity | 106,481 | 90,640 |
Total liabilities and stockholders’ equity | $ 317,544 | $ 297,015 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 7 | $ 7 |
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) | 48,151,000 | 46,911,000 |
Common stock, shares outstanding (in shares) | 48,151,000 | 46,911,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | ||||
Total revenue | $ 73,875 | $ 50,160 | $ 140,504 | $ 96,412 |
Cost of revenue: | ||||
Total cost of revenue | 33,722 | 28,906 | 70,573 | 56,448 |
Gross profit | 40,153 | 21,254 | 69,931 | 39,964 |
Operating expenses: | ||||
Research and development | 19,717 | 17,766 | 40,380 | 36,258 |
Sales and marketing | 2,134 | 1,665 | 4,080 | 3,368 |
General and administrative | 6,428 | 5,721 | 13,715 | 11,171 |
Legal settlements and contingencies | 0 | 650 | 0 | 650 |
Total operating expenses | 28,279 | 25,802 | 58,175 | 51,447 |
Income (loss) from operations | 11,874 | (4,548) | 11,756 | (11,483) |
Other income, net | 596 | 532 | 1,157 | 2,122 |
Income (loss) from continuing operations before provision for income taxes | 12,470 | (4,016) | 12,913 | (9,361) |
Provision for income taxes | 205 | 102 | 616 | 842 |
Equity in net (income) of equity method investee | (797) | 0 | (797) | 0 |
Income (loss) from continuing operations | 13,062 | (4,118) | 13,094 | (10,203) |
Discontinued operations: | ||||
Income (loss) from operations of Advertising business, net of tax | 0 | (463) | 832 | (1,948) |
Loss from sale of Advertising business | (56) | 0 | (4,874) | 0 |
Loss on discontinued operations | (56) | (463) | (4,042) | (1,948) |
Net income (loss) | $ 13,006 | $ (4,581) | $ 9,052 | $ (12,151) |
Basic income (loss) per share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ 0.27 | $ (0.09) | $ 0.27 | $ (0.23) |
Loss on discontinued operations (in dollars per share) | 0 | (0.01) | (0.08) | (0.04) |
Net income (loss) (in dollars per share) | 0.27 | (0.10) | 0.19 | (0.27) |
Diluted income (loss) per share: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.27 | (0.09) | 0.27 | (0.23) |
Loss on discontinued operations (in dollars per share) | 0 | (0.01) | (0.08) | (0.04) |
Net income (loss) (in dollars per share) | $ 0.27 | $ (0.10) | $ 0.18 | $ (0.27) |
Weighted average shares used in computing income (loss) per share: | ||||
Basic (in shares) | 48,475 | 45,443 | 48,127 | 45,230 |
Diluted (in shares) | 48,821 | 45,443 | 49,257 | 45,230 |
Stock-based compensation expense included in continuing operations above: | ||||
Stock-based compensation expense | $ 1,478 | $ 1,875 | $ 3,230 | $ 3,923 |
Cost of revenue | ||||
Stock-based compensation expense included in continuing operations above: | ||||
Stock-based compensation expense | 13 | 16 | 29 | 40 |
Research and development | ||||
Stock-based compensation expense included in continuing operations above: | ||||
Stock-based compensation expense | 623 | 1,164 | 1,718 | 2,415 |
Sales and marketing | ||||
Stock-based compensation expense included in continuing operations above: | ||||
Stock-based compensation expense | 190 | 167 | 325 | 333 |
General and administrative | ||||
Stock-based compensation expense included in continuing operations above: | ||||
Stock-based compensation expense | 652 | 528 | 1,158 | 1,135 |
Product | ||||
Revenue: | ||||
Total revenue | 61,543 | 42,397 | 117,533 | 82,327 |
Cost of revenue: | ||||
Total cost of revenue | 26,434 | 25,015 | 58,423 | 48,603 |
Services | ||||
Revenue: | ||||
Total revenue | 12,332 | 7,763 | 22,971 | 14,085 |
Cost of revenue: | ||||
Total cost of revenue | $ 7,288 | $ 3,891 | $ 12,150 | $ 7,845 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,006 | $ (4,581) | $ 9,052 | $ (12,151) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of tax | 207 | (131) | (103) | (348) |
Available-for-sale securities: | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (15) | 97 | 44 | 186 |
Reclassification adjustments for (loss) gain on available-for-sale securities recognized, net of tax | (1) | 5 | (2) | 7 |
Net (decrease) increase from available-for-sale securities, net of tax | (16) | 102 | 42 | 193 |
Other comprehensive income (loss), net of tax | 191 | (29) | (61) | (155) |
Comprehensive income (loss) | $ 13,197 | $ (4,610) | $ 8,991 | $ (12,306) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Continuing Operations | Continuing OperationsAdditional Paid-in Capital | Discontinued Operations | Discontinued OperationsAdditional Paid-in Capital |
Beginning balance (in shares) at Jun. 30, 2018 | 44,871,000 | ||||||||
Beginning balance at Jun. 30, 2018 | $ 108,883 | $ 45 | $ 167,895 | $ (1,855) | $ (57,202) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 5,000 | ||||||||
Issuance of common stock upon exercise of stock options | 25 | $ 0 | 25 | ||||||
Release of restricted stock units (in shares) | 385,000 | ||||||||
Release of restricted stock units | (1,205) | $ 0 | (1,205) | ||||||
Stock-based compensation expense | $ 2,048 | $ 2,048 | $ 221 | $ 221 | |||||
Foreign currency translation adjustment, net of tax | (217) | (217) | |||||||
Unrealized net loss on available-for-sale securities, net of tax | 91 | 91 | |||||||
Net income (loss) | (7,570) | (7,570) | |||||||
Ending balance (in shares) at Sep. 30, 2018 | 45,261,000 | ||||||||
Ending balance at Sep. 30, 2018 | 102,276 | $ 45 | 168,984 | (1,981) | (64,772) | ||||
Beginning balance (in shares) at Jun. 30, 2018 | 44,871,000 | ||||||||
Beginning balance at Jun. 30, 2018 | 108,883 | $ 45 | 167,895 | (1,855) | (57,202) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (12,151) | ||||||||
Ending balance (in shares) at Dec. 31, 2018 | 45,541,000 | ||||||||
Ending balance at Dec. 31, 2018 | 99,430 | $ 46 | 170,747 | (2,010) | (69,353) | ||||
Beginning balance (in shares) at Sep. 30, 2018 | 45,261,000 | ||||||||
Beginning balance at Sep. 30, 2018 | 102,276 | $ 45 | 168,984 | (1,981) | (64,772) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 0 | ||||||||
Issuance of common stock upon exercise of stock options | 1 | $ 0 | 1 | ||||||
Release of restricted stock units (in shares) | 280,000 | ||||||||
Release of restricted stock units | (352) | $ 1 | (353) | ||||||
Stock-based compensation expense | 1,875 | 1,875 | 240 | 240 | |||||
Foreign currency translation adjustment, net of tax | (131) | (131) | |||||||
Unrealized net loss on available-for-sale securities, net of tax | 102 | 102 | |||||||
Net income (loss) | (4,581) | (4,581) | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 45,541,000 | ||||||||
Ending balance at Dec. 31, 2018 | 99,430 | $ 46 | 170,747 | (2,010) | (69,353) | ||||
Beginning balance (in shares) at Jun. 30, 2019 | 46,911,000 | ||||||||
Beginning balance at Jun. 30, 2019 | 90,640 | $ 47 | 182,349 | (1,477) | (90,279) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,326,000 | ||||||||
Issuance of common stock upon exercise of stock options | 8,341 | $ 1 | 8,340 | ||||||
Release of restricted stock units (in shares) | 329,000 | ||||||||
Release of restricted stock units | (1,272) | $ 1 | (1,273) | ||||||
Stock-based compensation expense | $ 1,752 | $ 1,752 | $ 887 | $ 887 | |||||
Foreign currency translation adjustment, net of tax | (310) | (310) | |||||||
Unrealized net loss on available-for-sale securities, net of tax | 58 | 58 | |||||||
Net income (loss) | (3,954) | (3,954) | |||||||
Ending balance (in shares) at Sep. 30, 2019 | 48,566,000 | ||||||||
Ending balance at Sep. 30, 2019 | 96,142 | $ 49 | 192,055 | (1,729) | (94,233) | ||||
Beginning balance (in shares) at Jun. 30, 2019 | 46,911,000 | ||||||||
Beginning balance at Jun. 30, 2019 | $ 90,640 | $ 47 | 182,349 | (1,477) | (90,279) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,326,000 | ||||||||
Repurchases of common stock (in shares) | (766,583) | ||||||||
Repurchases of common stock | (2,600) | (1,400) | |||||||
Net income (loss) | $ 9,052 | ||||||||
Ending balance (in shares) at Dec. 31, 2019 | 48,151,000 | ||||||||
Ending balance at Dec. 31, 2019 | 106,481 | $ 48 | 190,593 | (1,538) | (82,622) | ||||
Beginning balance (in shares) at Sep. 30, 2019 | 48,566,000 | ||||||||
Beginning balance at Sep. 30, 2019 | 96,142 | $ 49 | 192,055 | (1,729) | (94,233) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 0 | ||||||||
Issuance of common stock upon exercise of stock options | 0 | $ 0 | 0 | ||||||
Release of restricted stock units (in shares) | 352,000 | ||||||||
Release of restricted stock units | $ (317) | $ 0 | (317) | ||||||
Repurchases of common stock (in shares) | (766,583) | (767,000) | |||||||
Repurchases of common stock | $ (4,019) | $ (1) | (2,623) | (1,395) | |||||
Stock-based compensation expense | 1,478 | 1,478 | |||||||
Foreign currency translation adjustment, net of tax | 207 | 207 | |||||||
Unrealized net loss on available-for-sale securities, net of tax | (16) | (16) | |||||||
Net income (loss) | 13,006 | 13,006 | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 48,151,000 | ||||||||
Ending balance at Dec. 31, 2019 | $ 106,481 | $ 48 | $ 190,593 | $ (1,538) | $ (82,622) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | ||
Net income (loss) | $ 9,052 | $ (12,151) |
Loss on discontinued operations | 4,042 | 1,948 |
Income (loss) from continuing operations | 13,094 | (10,203) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation expense | 3,230 | 3,923 |
Depreciation and amortization | 1,856 | 2,016 |
Operating lease amortization, net of accretion | 1,321 | 0 |
Accretion of net premium on short-term investments | 75 | 0 |
Unrealized gain on non-marketable equity investments | (62) | (1,259) |
Equity in net income of equity method investee | (797) | 0 |
Other | (1) | (14) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 25,835 | 3,390 |
Deferred income taxes | (409) | 445 |
Deferred costs | (1,961) | (7,040) |
Prepaid expenses and other current assets | (3,992) | 216 |
Other assets | 21 | (116) |
Trade accounts payable | (15,054) | 9,812 |
Accrued expenses and other liabilities | 3,945 | (9,575) |
Income taxes payable | 130 | 39 |
Deferred rent | 0 | 91 |
Operating lease liabilities | (1,754) | 0 |
Deferred revenue | 9,036 | 13,234 |
Net cash provided by operating activities | 34,513 | 4,959 |
Investing activities | ||
Purchases of property and equipment | (1,078) | (445) |
Purchases of short-term investments | (54,439) | (15,862) |
Purchase of long-term investments | (3,500) | 0 |
Proceeds from sales and maturities of short-term investments | 24,067 | 20,342 |
Net cash provided by (used in) investing activities | (34,950) | 4,035 |
Financing activities | ||
Proceeds from exercise of stock options | 8,306 | 26 |
Tax withholdings related to net share settlements of restricted stock units | (1,148) | (1,559) |
Repurchase of common stock | (4,019) | 0 |
Net cash provided by (used in) financing activities | 3,139 | (1,533) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (85) | (360) |
Net increase in cash, cash equivalents and restricted cash, continuing operations | 2,617 | 7,101 |
Net cash used in discontinued operations | (3,975) | (2,319) |
Cash, cash equivalents and restricted cash, beginning of period | 29,225 | 20,099 |
Cash, cash equivalents and restricted cash, end of period | 27,867 | 24,881 |
Supplemental disclosure of cash flow information | ||
Income taxes paid, net | 1,279 | 586 |
Non-cash investing: Investment in LLC acquired in exchange for sale of Advertising business | 15,600 | 0 |
Cash flows from discontinued operations: | ||
Net cash used in operating activities | (3,569) | (2,319) |
Net cash used in financing activities | (406) | 0 |
Net cash transferred from continuing operations | 3,975 | 2,319 |
Net change in cash and cash equivalents from discontinued operations | 0 | 0 |
Cash and cash equivalents of discontinued operations, beginning of period | 0 | 0 |
Cash and cash equivalents of discontinued operations, end of period | 0 | 0 |
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | ||
Total cash and cash equivalents | $ 27,867 | $ 24,881 |
Summary of business and signifi
Summary of business and significant accounting policies | 6 Months Ended |
Dec. 31, 2019 | |
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 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 fiscal year ends on June 30, and in this report we refer to the fiscal year ended June 30, 2019 as “fiscal 2019 ,” the fiscal year ending June 30, 2020 as “fiscal 2020 ” and the fiscal year ending June 30, 2021 as “fiscal 2021.” Commencing July 1, 2019, we operate in a single segment, automotive. Through June 30, 2019 , we operated in three segments - automotive, advertising and mobile navigation. In August 2019, we completed the disposition of our digital advertising operations (the "Ads Business") and have presented the results of operations for the Ads Business as discontinued operations for all prior periods presented. See Note 12. Our mobile navigation services business represented less than 5% of total revenue for the three and six months ended December 31, 2019 and we expect the business to continue to decline. Our chief executive officer, or CEO, the chief operating decision maker, does not review mobile navigation revenue and cost of revenue separately. As a result, we have combined the mobile navigation business with the automotive business in a single segment. 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 six months ended December 31, 2019 and 2018 . 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 2019 , included in our Annual Report on Form 10-K for fiscal 2019 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2019, which we refer to as the Form 10-K. Effective July 1, 2019, we adopted the requirements of Accounting Standards Update, or ASU, No. 2016-02, Leases (ASC 842) 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. Certain prior period balances have been reclassified to conform to the current period presentation of discontinued operations. Significant accounting policies With the exception of changes in accounting policies associated with our adoption of the new lease accounting 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. 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. 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 (in thousands): Three Months Ended December 31, Six Months Ended 2019 2018 2019 2018 Product On-board automotive navigation solutions (point in time) (1) $ 61,543 $ 42,397 $ 117,533 $ 82,327 Total product revenue 61,543 42,397 117,533 82,327 Services Brought-in automotive navigation solutions (over time) (2) 8,787 4,480 15,009 8,022 Automotive maintenance and support and other (over time) 1,206 645 2,875 655 Mobile navigation services (over time) 2,339 2,638 5,087 5,408 Total services revenue 12,332 7,763 22,971 14,085 Total revenue $ 73,875 $ 50,160 $ 140,504 $ 96,412 (1) Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees. (2) Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions. Contract assets Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of December 31, 2019 and June 30, 2019 , we had $5.7 million and zero contract assets, respectively. Deferred costs Changes in the balance of total deferred costs (current and non-current) during the six months ended December 31, 2019 were as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2019 $ 71,466 $ 8,336 $ 79,802 Content licensing costs incurred 64,612 — 64,612 Customized software development costs incurred — 2,503 2,503 Less: cost of revenue recognized (62,785 ) (2,369 ) (65,154 ) Balance, December 31, 2019 $ 73,293 $ 8,470 $ 81,763 Concentrations of risk and significant customers Revenue related to products and services provided through Ford Motor Company and affiliated entities, or Ford, comprised 39% and 65% of total revenue for the three months ended December 31, 2019 and 2018 , respectively, and 45% and 66% for the six months ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 and June 30, 2019 , receivables due from Ford were 44% and 33% of total accounts receivable, respectively. Revenue related to products and services provided through General Motors Holdings and its affiliates, or GM, comprised 31% and 19% of total revenue for the three months ended December 31, 2019 and 2018 , respectively, and 28% and 18% for the six months ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 and June 30, 2019 , receivables due from GM were 32% and 15% of total accounts receivable, respectively. Revenue related to products and services provided to affiliates of Grab Holdings, Inc., which, collectively with certain of its affiliates, we refer to as Grab, comprised 19% and 15% of total revenue for the three and six months ended December 31, 2019 , respectively. Receivables due from Xevo, Inc. were less than 10% and 29% of total accounts receivable as of December 31, 2019 and June 30, 2019 , respectively. Restricted cash As of December 31, 2019 and June 30, 2019 , we had restricted cash of $1.5 million and $2.0 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 December 31, 2019 , were as follows (in thousands): Foreign Currency Unrealized Total Balance, net of tax as of June 30, 2019 $ (1,623 ) $ 146 $ (1,477 ) Other comprehensive income (loss) before reclassifications, net of tax (103 ) 44 (59 ) Amount reclassified from accumulated other comprehensive loss, net of tax — (2 ) (2 ) Other comprehensive income (loss), net of tax (103 ) 42 (61 ) Balance, net of tax as of December 31, 2019 $ (1,726 ) $ 188 $ (1,538 ) The amount of income tax benefit allocated to each component of accumulated other comprehensive loss was not material for the six months ended December 31, 2019 . Recently adopted accounting pronouncements In August 2018, the Financial Accounting Standards Board, or 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. We early adopted ASU 2018-15 on July 1, 2019 on a prospective basis, and it did not have a material impact on our financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) which supersedes the guidance in topic ASC 840, Leases. The new standard, including subsequent amendments, requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to previous guidance for operating leases under ASC 840, Leases. We adopted ASC 842 effective July 1, 2019. We adopted the standard using the modified retrospective transition approach applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of right-of-use, or ROU, assets and lease liabilities for operating leases that were not previously recorded. For information regarding the impact of ASC 842 adoption, see Leases and Note 6. Leases On July 1, 2019, we adopted ASC 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after July 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to July 1, 2019. We also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, we recognized total ROU assets of $11.7 million , with corresponding liabilities of $13.0 million on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of operations and statements of cash flows. We recognize operating lease ROU assets and operating lease liabilities at the commencement date based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments we made and excludes lease incentives and initial direct costs we incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We include operating leases in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on our condensed consolidated balance sheets. Recent accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies accounting for income taxes by revising or clarifying existing guidance in ASC 740, as well as removing certain exceptions within ASC 740. This guidance is effective for us on July 1, 2021 with early adoption permitted. We are evaluating the impact of the adoption of this standard on our consolidated financial statements, but we do not expect it to have a material impact. With the exception of the recently adopted accounting pronouncements and recent accounting pronouncements not yet adopted discussed above, there have been no other changes in accounting pronouncements during the six months ended December 31, 2019 , as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2019, that are of significance or potential significance to us. |
Net income (loss) per share
Net income (loss) per share | 6 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | Net income (loss) per share Basic income (loss) per share is calculated by dividing income (loss) by the weighted-average number of common shares outstanding for the period. Diluted income (loss) per share is computed by dividing 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 December 31, Six Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations $ 13,062 $ (4,118 ) $ 13,094 $ (10,203 ) Loss on discontinued operations (56 ) (463 ) (4,042 ) (1,948 ) Net income (loss) $ 13,006 $ (4,581 ) $ 9,052 $ (12,151 ) Shares used to compute basic income (loss) per share 48,475 45,443 48,127 45,230 Dilutive potential common shares: Stock options — — 112 — Restricted stock units 346 — 1,018 — Shares used to compute diluted income (loss) per share 48,821 45,443 49,257 45,230 Basic income (loss) per share: Loss from continuing operations $ 0.27 $ (0.09 ) $ 0.27 $ (0.23 ) Loss on discontinued operations — (0.01 ) (0.08 ) (0.04 ) Net income (loss) $ 0.27 $ (0.10 ) $ 0.19 $ (0.27 ) Diluted income (loss) per share: Loss from continuing operations $ 0.27 $ (0.09 ) $ 0.27 $ (0.23 ) Loss on discontinued operations — (0.01 ) (0.08 ) (0.04 ) Net income (loss) $ 0.27 $ (0.10 ) $ 0.18 $ (0.27 ) Potential common stock equivalents not included in the calculation of diluted income per share as the effect would be anti-dilutive 2,708 — 1,296 — A total of 800,000 outstanding performance-based restricted stock units, as described further in Note 10, are excluded from the diluted shares calculation above because they are contingently issuable and have not met any of the performance milestones. |
Cash, cash equivalents and shor
Cash, cash equivalents and short-term investments | 6 Months Ended |
Dec. 31, 2019 | |
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 unrestricted cash and highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds and commercial paper. Short-term investments consist of readily marketable debt 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. Marketable debt 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 six months ended December 31, 2019 or 2018 . Short-term investments as of June 30, 2019 also included marketable equity securities, which are carried at fair value with unrealized gains and losses recognized in other income (expense), net. We had no net realized gains (losses) from marketable equity securities in the six months ended December 31, 2019 or 2018 . As of December 31, 2019 , we had no marketable equity securities. Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2019 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 20,824 $ — $ — $ 20,824 Cash equivalents: Money market mutual funds 4,274 — — 4,274 Municipal securities 750 — — 750 Commercial paper 499 — — 499 Total cash equivalents 5,523 — — 5,523 Total cash and cash equivalents 26,347 — — 26,347 Short-term investments: U.S. treasury securities 2,618 9 — 2,627 U.S. agency securities 3,815 6 (2 ) 3,819 Asset-backed securities 20,446 93 (19 ) 20,520 Municipal securities 8,930 27 — 8,957 Commercial paper 3,676 1 — 3,677 Corporate bonds 62,654 352 (3 ) 63,003 Total short-term investments 102,139 488 (24 ) 102,603 Cash, cash equivalents and short-term investments $ 128,486 $ 488 $ (24 ) $ 128,950 Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2019 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 25,987 $ — $ — $ 25,987 Cash equivalents: Money market mutual funds 790 — — 790 Commercial paper 498 — — 498 Total cash equivalents 1,288 — — 1,288 Total cash and cash equivalents 27,275 — — 27,275 Short-term investments: U.S. treasury securities 3,570 6 (4 ) 3,572 U.S. agency securities 3,002 9 (2 ) 3,009 Asset-backed securities 12,319 104 (10 ) 12,413 Municipal securities 4,124 16 — 4,140 Commercial paper 1,986 — — 1,986 Corporate bonds 45,492 269 (27 ) 45,734 Total debt securities 70,493 404 (43 ) 70,854 Marketable equity securities 250 1,099 — 1,349 Total short-term investments 70,743 1,503 (43 ) 72,203 Cash, cash equivalents and short-term investments $ 98,018 $ 1,503 $ (43 ) $ 99,478 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 12 months or a continuous unrealized loss position for 12 months or greater, as of December 31, 2019 and June 30, 2019 (in thousands): December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. agency securities $ 2,032 $ (2 ) $ — $ — $ 2,032 $ (2 ) Asset-backed securities 7,308 (17 ) 1,117 (2 ) 8,425 (19 ) Corporate bonds 5,960 (3 ) — — 5,960 (3 ) Total $ 15,300 $ (22 ) $ 1,117 $ (2 ) $ 16,417 $ (24 ) June 30, 2019 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 $ — $ — $ 2,992 $ (5 ) $ 2,992 $ (5 ) U.S. agency securities — — 998 (1 ) 998 (1 ) Asset-backed securities — — 3,537 (11 ) 3,537 (11 ) Commercial paper 493 (1 ) — — 493 (1 ) Corporate bonds 4,600 (3 ) 14,615 (24 ) 19,215 (27 ) Total $ 5,093 $ (4 ) $ 22,142 $ (41 ) $ 27,235 $ (45 ) There were 45 securities and 11 securities in an unrealized loss position for less than 12 months at December 31, 2019 and at June 30, 2019 , respectively, and 5 securities and 51 securities in an unrealized loss position for 12 months or greater at December 31, 2019 and June 30, 2019 , 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 December 31, 2019 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 39,537 $ 39,597 Due between one and two years 42,700 42,985 Due between two and three years 19,902 20,021 Total $ 102,139 $ 102,603 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 December 31, 2019 , 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 | 6 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and June 30, 2019 , 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 December 31, 2019 (in thousands): Fair Value Measurements at December 31, 2019 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 $ 4,274 $ 4,274 $ — $ — Municipal securities 750 — 750 — Commercial paper 499 — 499 — Total cash equivalents 5,523 4,274 1,249 — Short-term investments: U.S. treasury securities 2,627 2,627 — — U.S. agency securities 3,819 — 3,819 — Asset-backed securities 20,520 — 20,520 — Municipal securities 8,957 — 8,957 — Commercial paper 3,677 — 3,677 — Corporate bonds 63,003 — 63,003 — Total short-term investments 102,603 2,627 99,976 — Cash equivalents and short-term investments $ 108,126 $ 6,901 $ 101,225 $ — The fair values of our financial instruments were determined using the following inputs at June 30, 2019 (in thousands): Fair Value Measurements at June 30, 2019 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 $ 790 $ 790 $ — $ — Commercial paper 498 — 498 — Total cash equivalents 1,288 790 498 — Short-term investments: U.S. treasury securities 3,572 3,572 — — U.S. agency securities 3,009 — 3,009 — Asset-backed securities 12,413 — 12,413 — Municipal securities 4,140 — 4,140 — Commercial paper 1,986 — 1,986 — Corporate bonds 45,734 — 45,734 — Total debt securities 70,854 3,572 67,282 — Marketable equity securities 1,349 1,349 — — Total short-term investments 72,203 4,921 67,282 — Cash equivalents and short-term investments $ 73,491 $ 5,711 $ 67,780 $ — Accretion of net premium on short-term investments totaled $75,000 and zero in the six months ended December 31, 2019 and 2018 , respectively. There were no transfers between Level 1 and Level 2 financial instruments in the six months ended December 31, 2019 and 2018 . We did not have any financial liabilities measured at fair value on a recurring basis as of December 31, 2019 or June 30, 2019 . Non-marketable equity investments Our non-marketable equity securities are investments in privately held companies without readily determinable market values. 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. Non-marketable equity securities that we remeasure 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. Our net unrealized gains from non-marketable equity securities were $62,000 and $1.3 million in the six months ended December 31, 2019 and 2018 , respectively. Our net unrealized gain of $1.3 million in the six months ended December 31, 2018 was due to the remeasurement to fair value of non-marketable equity securities upon the adoption of the measurement alternative on July 1, 2018. The carrying value of our non-marketable equity securities, none of which required remeasurement to fair value, was $458,000 and $458,000 at December 31, 2019 and June 30, 2019 , respectively. In August 2019, we completed the disposition of our Ads Business in exchange for a non-marketable equity investment in inMarket Media, LLC ("inMarket") valued at $15.6 million . See Note 12. In assessing the fair value of our investment in inMarket, we made assumptions regarding estimated future cash flows, weighted average cost of capital and timing over which the cash flows will occur, amongst other factors. An investment in a limited liability company such as inMarket that maintains a specific ownership account for each investor is deemed to be similar to an investment in a limited partnership. Accordingly, because we hold more than a 3% to 5% ownership interest in inMarket, we are required to account for our inMarket investment under the equity method of accounting. Our proportionate share of inMarket earnings for the period from the date of closing of the inMarket Transaction, August 16, 2019, through September 30, 2019 was not material. We recognized income of $797,000 related to our proportionate share of inMarket equity for the three and six months ended December 31, 2019 . Non-marketable debt investment In the three months ended December 31, 2019 , we invested $1.5 million in the form of a convertible note receivable in a privately held company without a readily determinable market value. The note receivable matures on October 31, 2021 or upon request for payment by a majority of note holders, or otherwise upon a change of control, qualified financing event or event of default involving the privately held company. The note converts to preferred stock or common stock upon certain events as defined, including a qualified preferred stock financing round or a change in control of ownership. Interest accrues annually at 6.5% and is due in full upon maturity. In the three months ended September 30, 2019, we invested $2.0 million in the form of a convertible note receivable in a privately held company without a readily determinable market value. The note receivable matures upon request for payment by a majority of note holders no sooner than October 31, 2021, or otherwise upon a change of control, qualified financing event or event of default involving the privately held company. The note converts to preferred stock or common stock upon certain events as defined, including a qualified preferred stock financing round or a change in control of ownership. Interest accrues annually at 6% and is due in full upon maturity. The convertible notes are classified as available for sale and are carried at fair value within Level 3, with any 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. We did not have any unrealized or realized gains or losses in the three and six months ended December 31, 2019 . The carrying value of our non-marketable debt investments was $3.5 million at December 31, 2019 . We did not hold any non-marketable debt investments at June 30, 2019 . |
Leases
Leases | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have entered into various non-cancelable office space operating leases with original lease periods expiring between 2019 and 2024. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions. Operating lease costs for the three and six months ended December 31, 2019 were $763,000 and $1.6 million , respectively. The weighted-average remaining term of our operating leases was 3.2 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.0% as of December 31, 2019 . Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2019 were as follows (in thousands): Fiscal Year 2020 $ 1,988 2021 3,143 2022 2,774 2023 2,315 2024 619 Total lease payments 10,839 Less: imputed interest (847 ) Total operating lease liabilities $ 9,992 Cash payments included in the measurement of our operating lease liabilities were $842,000 and $1.7 million for the three and six months ended December 31, 2019 , respectively. |
Balance sheet information
Balance sheet information | 6 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance sheet information | Balance sheet information Goodwill and intangible assets, net Goodwill as of December 31, 2019 and June 30, 2019 was $14.3 million and $26.1 million , respectively. The reduction in goodwill of $11.8 million was due to the sale of the Ads Business to inMarket. See Note 12. Intangible assets consisted of the following (in thousands): December 31, June 30, Acquired developed technology $ 13,875 $ 13,875 Less accumulated amortization (12,930 ) (12,494 ) Intangible assets, net $ 945 $ 1,381 Acquired developed technology is amortized on a straight-line basis over the expected useful life. Amortization expense related to intangibles was $218,000 and $283,000 for the three months ended December 31, 2019 and 2018 , respectively, and $436,000 and $567,000 for the six months ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 , remaining amortization expense for intangible assets by fiscal year was as follows: $436,000 in fiscal 2020 and $509,000 in fiscal 2021. Assets held for sale As discussed in Note 13, Subsequent events, in January 2020, we completed the sale of assets pursuant to which certain intellectual property was sold to Grab. The intellectual property reflected a completed technology intangible asset with a net book value of $0.9 million at December 31, 2019. As of December 31, 2019, we determined that the asset met the held for sale criteria and reclassified the asset as held for sale. The completed technology intangible asset is included in Goodwill and intangible assets, net in the accompanying Condensed Consolidated Balance Sheet. No impairment loss was recognized upon the reclassification of the intangible assets as held for sale. Other assets Other assets consisted of the following (in thousands): December 31, June 30, Deposits and other assets $ 930 $ 956 Non-marketable equity investments 458 458 Non-marketable equity investment greater than 5% in LLC 16,397 — Non-marketable debt investments 3,500 — Total other assets $ 21,285 $ 1,414 Accrued expenses Accrued expenses consisted of the following (in thousands): December 31, June 30, Accrued compensation and benefits $ 10,383 $ 13,288 Accrued royalties 30,824 21,604 Customer overpayments and related reserves 4,523 4,291 Other accrued expenses 8,452 9,716 Total accrued expenses $ 54,182 $ 48,899 |
Deferred revenue and remaining
Deferred revenue and remaining performance obligations | 6 Months Ended |
Dec. 31, 2019 | |
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 six months ended December 31, 2019 were as follows (in thousands): Beginning balance, June 30, 2019 $ 135,135 Revenue recognized that was included in beginning balance (32,434 ) Amount billed, net of revenue recognized that was not included in beginning balance 41,470 Ending balance, December 31, 2019 $ 144,171 The cumulative adjustment as a result of changes in the estimate of the transaction price of customer contracts during the three and six months ended December 31, 2019 was a net increase in revenue recognized of $138,000 and $318,000 , respectively. In addition, the amount of revenue recognized in the three and six months ended December 31, 2019 from performance obligations satisfied or partially satisfied in previous periods was $239,000 and $354,000 , respectively. 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 December 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations for our automotive segment was $84.2 million , which is expected to be recognized over a remaining period of approximately 1 to 7 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 ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies 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. Other contractual commitments As of December 31, 2019 , we had $8.5 million of future minimum non-cancelable financial commitments primarily related to license fees due to certain of our third-party content providers, regardless of usage level. These commitments are primarily due within five years. 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 which we can reasonably estimate, we accrue our estimate of the loss or cost of indemnification in our consolidated financial statements. Where we cannot determine the outcome of these matters, 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. 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. 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. Legal proceedings are subject to inherent uncertainties. Unfavorable outcomes could have a material adverse impact on our business, financial position, cash flows or overall trends in results of our operations. |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Under our 2009 Equity Incentive Plan, 2011 Stock Option and Grant Plan and 2019 Equity Incentive 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, 2019 3,409 $ 6.49 Granted 55 4.92 Exercised (1,326 ) 6.29 Canceled or expired (175 ) 5.94 Options outstanding as of December 31, 2019 1,963 $ 6.64 5.67 $ 5,250 As of December 31, 2019: Options vested and expected to vest 1,929 $ 6.66 5.11 $ 5,213 Options exercisable 1,563 $ 6.96 5.06 $ 4,312 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, 2019 2,637 Granted 1,310 Vested (932 ) Canceled (458 ) RSUs outstanding as of December 31, 2019 2,557 1.78 $ 12,428 As of December 31, 2019: RSUs expected to vest 2,143 1.66 $ 10,413 Performance-based RSUs In September 2019, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the grant under our 2009 Equity Incentive Plan of performance-based RSUs covering a target of 560,000 shares of common stock under individual grants to several of our executive officers, which we refer to as the PSU Awards. The PSU Awards are subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30 trading day period on or before the three-year anniversary of the PSU Awards’ grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then one half of the shares that became eligible to vest under the PSU Award upon achievement of that stock price performance milestone will vest on the later of November 1, 2020, or the date that the Compensation Committee certifies achievement of the milestone, and the remaining one half of the shares that became eligible to vest will vest on the one-year anniversary of the date the performance milestone was achieved, in each case subject to the respective executive’s continued service with the Company through the applicable vesting date. The maximum number of shares subject to the PSU Award that may vest is 560,000 . No shares had vested as of December 31, 2019 under the PSU Awards. In October 2018, the Compensation Committee approved the grant under our 2009 Equity Incentive Plan of performance-based RSUs covering a target of 240,000 shares of common stock to Dr. HP Jin, our CEO, which we refer to as the CEO PSU Award. The CEO PSU Award is subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30 trading day period on or before the three-year anniversary of the CEO PSU Award’s grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the CEO PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then one half of the shares that became eligible to vest under the CEO PSU Award upon achievement of that stock price performance milestone will vest on the later of November 1, 2019, or the date that the Compensation Committee certifies achievement of the milestone, and the remaining one half of the shares that became eligible to vest will vest on the one-year anniversary of the date the performance milestone was achieved, in each case subject to Dr. Jin’s continued service with the Company through the applicable vesting date. The maximum number of shares subject to the CEO PSU Award that may vest is 240,000 . No shares had vested as of December 31, 2019 under the CEO PSU Award. Since achievement of the awards is dependent on a market condition, stock-based compensation expense associated with these awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service period has been met. We utilized the Monte Carlo valuation method to determine the fair value and derived service periods of each of the stock price performance milestones. Total stock-based compensation expense associated with the PSU Awards and the CEO PSU Award was not material for all periods presented. As of December 31, 2019 , no performance-based RSU awards had been earned or canceled, and 800,000 shares subject to performance-based RSU awards remained outstanding. During the six months ended December 31, 2019 , pursuant to the annual increase provisions of our 2009 Equity Incentive Plan, or the 2009 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 Plan occurred on July 1, 2019, and the plan expired in October 2019 as to new awards. Our board of directors also terminated the 2011 Stock Option and Grant Plan, or the 2011 Plan. In November 2019, our stockholders approved the 2019 Equity Incentive Plan, or the 2019 Plan, pursuant to which 5,700,000 shares are initially reserved for future grants and up to an additional 5,800,000 shares are reserved to the extent shares subject to grants under the 2009 Plan were outstanding as of November 20, 2019 but later expire or otherwise terminate without having been exercised in full (in which case the shares subject to such grants will be returned to the 2019 Plan and available for future issuance). The 2019 Plan became effective on November 20, 2019 and will automatically terminate 10 years from its date of adoption by our board of directors. In connection with the adoption of the 2019 Plan, a total of approximately 5,342,000 shares expired which had been previously available but unissued under the 2009 Plan and 2011 Plan. 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, 2019 4,472 Annual share increase authorized under 2009 Plan 1,667 Granted (1,681 ) RSUs withheld for taxes in net share settlements 251 Canceled 633 Expired under 2009 and 2011 Plans (5,342 ) Shares available under 2009 and 2011 Plans upon termination on November 20, 2019 — Initial shares authorized under 2019 Plan on November 20, 2019 5,700 Shares added from 5,800,000 reserved share pool available (1) 92 Granted (244 ) Shares available for grant as of December 31, 2019 5,548 (1) Additional shares are available up to a maximum of 5,800,000 shares only to the extent shares subject to grants under the 2009 Plan were outstanding as of November 20, 2019 but later expire or otherwise terminate without having been exercised in full. Employee Stock Purchase Plan In November 2019, the Company’s stockholders approved the 2019 Employee Stock Purchase Plan, (ESPP), which became effective on November 20, 2019. A total of 2,500,000 shares were authorized for issuance to participating employees upon adoption of the ESPP. The ESPP provides for 12-month offering periods beginning March 1 and September 1 of each year, and each offering period will consist of two six-month purchase periods. The initial offering period will commence on March 1, 2020 and will end on March 1, 2021. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of our stock on the enrollment date or (2) the fair market value of our stock on the exercise date. The following table summarizes the stock-based compensation expense for continuing operations recorded for stock options and RSUs, including performance-based RSUs, issued to employees and nonemployees (in thousands): Three Months Ended December 31, Six Months Ended 2019 2018 2019 2018 Stock option awards $ 226 $ 416 $ 534 $ 833 RSU awards 1,252 1,459 2,696 3,090 Total stock-based compensation expense $ 1,478 $ 1,875 $ 3,230 $ 3,923 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 December 31, Six Months Ended 2019 2018 2019 2018 Expected volatility 48 % — % 48 % 39 % Expected term (in years) 5.65 0.00 5.65 6.87 Risk-free interest rate 1.58 % — % 1.58 % 2.99 % Dividend yield — % — % — % — % Weighted average grant date fair value per share $ 2.27 $ — $ 2.27 $ 2.32 No stock option awards were granted during the three months ended September 30, 2019 and the three months ended December 31, 2018. |
Stock repurchase program
Stock repurchase program | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock repurchase program | Stock repurchase program In February 2019, our board of directors authorized a program for the repurchase of up to $20.0 million of our shares of common stock through open market purchases. The term of the program is 18 months . The timing and amount of repurchase transactions under this program will depend on market conditions, cash flow and other considerations. Under this program, we utilized $4.0 million of cash to repurchase 766,583 shares of our common stock at an average purchase price of $5.24 per share during the three and six months ended December 31, 2019 . As of December 31, 2019 , the remaining authorized amount of stock repurchases that may be made under this repurchase program was $14.7 million . Repurchased shares are retired and designated as authorized but unissued shares. We use the par value method of accounting for our stock repurchases. Under the par value method, common stock is first charged with the par value of the shares involved. The excess of the cost of shares acquired over the par value is allocated to additional paid-in capital, or APIC, based on an estimated average sales price per issued share with the excess amounts charged to retained earnings. As a result of our stock repurchases during the six months ended December 31, 2019 , we reduced common stock and APIC by an aggregate of $2.6 million and charged $1.4 million to retained earnings. |
Income taxes
Income taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes For interim reporting purposes, we calculate an annual estimated tax rate and apply that rate to actual results to estimate our taxes. In cases when we cannot reliably estimate an annual estimated tax rate, actual tax expense or the “cutoff method” is utilized as the estimate. 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 for continuing operations was $616,000 in the six months ended December 31, 2019 compared to $842,000 in the six months ended December 31, 2018 and was comprised primarily of foreign withholding taxes and income taxes in foreign jurisdictions where we have profit. Our effective tax provision rate of 4% of income from continuing operations for the six months ended December 31, 2019 was less than the tax amount computed at the U.S. federal statutory income tax rate due primarily to the application of the cutoff method to compute US taxes. Our effective tax provision rate of 9% of loss from continuing operations for the six months ended December 31, 2018 was greater 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 the tax assets are not likely to be realized due to the lack of current and forecasted future income. Although the total income tax provision did not change for the six months ended December 31, 2018 , taxes were allocated to discontinued operations in an amount equal to the difference between the tax originally computed on loss from operations and the tax recomputed on the amount of loss from continuing operations. We record liabilities related to unrecognized tax benefits in accordance with authoritative guidance on accounting for uncertain tax positions. As of December 31, 2019 and June 30, 2019 , our cumulative unrecognized tax benefits were $5.0 million and $4.6 million , respectively. Included in the balance of unrecognized tax benefits at December 31, 2019 and June 30, 2019 was $77,000 and $77,000 , 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 zero for the payment of interest and penalties at December 31, 2019 and June 30, 2019 . 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, 2019 was $48.4 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. |
Sale of Ads Business
Sale of Ads Business | 6 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Ads Business | Sale of Ads Business On August 16, 2019, we completed the disposition of our Ads Business to inMarket (the "inMarket Transaction"). In exchange, inMarket issued to us units of inMarket representing a 14.5% member interest in inMarket at the time of the closing of the inMarket Transaction. We also received a perpetual, non-exclusive, irrevocable, royalty-free license under software and other intellectual property rights being assigned to inMarket as part of the inMarket Transaction, as set forth in the Asset Purchase Agreement, dated August 8, 2019, by and among Telenav, Thinknear, Inc., a wholly owned subsidiary of Telenav, and inMarket, as amended. Pursuant to the terms of a Transition Services Agreement, we also agreed to provide inMarket with transition services for a period of time generally not to exceed eight months following the closing of the inMarket Transaction. The historical financial results attributable to the Ads Business are presented as discontinued operations in our condensed consolidated statements of operations for all periods presented. The carrying amounts of assets and liabilities included as part of discontinued operations have been classified as assets of discontinued operations and liabilities of discontinued operations, respectively, in our condensed consolidated balance sheet at June 30, 2019. Reconciliations of the carrying amounts of major classes of assets and liabilities included as part of discontinued operations to the amounts presented separately in our June 30, 2019 condensed consolidated balance sheet are presented in the following table: June 30, Assets Accounts receivable $ 6,011 Prepaid and other current assets 319 Assets of discontinued operations $ 6,330 Property and equipment, net $ 72 Operating lease right-of-use assets — Deferred income taxes, non-current (59 ) Goodwill and intangible assets, net 11,786 Other assets 395 Assets of discontinued operations, non-current $ 12,194 Liabilities Accounts payable $ 974 Accrued expenses 2,399 Operating lease liabilities — Liabilities of discontinued operations $ 3,373 Deferred rent, non-current $ 30 Operating lease liabilities, non-current — Liabilities of discontinued operations, non-current $ 30 Reconciliations of the major line items comprising loss from operations of the Ads Business included as part of discontinued operations to the amounts presented separately in our statements of operations for the three and six months ended December 31, 2019 and 2018 are presented in the following tables: Three Months Ended December 31, Six Months Ended 2019 2018 2019 2018 Revenue - services $ — $ 7,016 $ 3,614 $ 12,963 Cost of revenue - services — 3,285 1,335 6,505 Gross profit — 3,731 2,279 6,458 Operating expenses: Research and development — 1,325 697 2,935 Sales and marketing — 2,790 750 5,502 General and administrative — — — — Total operating expenses — 4,115 1,447 8,437 Provision for (benefit from) income taxes — 79 — (31 ) Income (loss) from operations of Ads Business $ — $ (463 ) $ 832 $ (1,948 ) Our 14.5% member interest in inMarket was valued at $15.6 million at the closing of the inMarket Transaction and is recorded in other assets on our condensed consolidated balance sheet at December 31, 2019 . See Note 4. Our loss from the sale of the Ads Business of $4.9 million included $1.9 million comprising severance for Ads Business employees who were not offered employment with inMarket and acceleration of stock-based awards vesting for certain Ads Business executives who were not offered employment with inMarket, and $363,000 comprising legal fees and third-party consulting fees associated with the inMarket Transaction. |
Subsequent events
Subsequent events | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In August 2019, we entered into certain agreements with affiliates of Grab Holdings, Inc., which, collectively with certain of its affiliates, we refer to as Grab, including: (i) a services agreement pursuant to which we agreed to provide certain services to Grab through certain of our employees designated to work on our OpenTerra Platform; (ii) a license agreement pursuant to which we granted to Grab a perpetual license to certain intellectual property associated with the OpenTerra Platform; and (iii) an asset purchase agreement pursuant to which we sold certain intellectual property associated with the OpenTerra Platform to Grab and facilitated offers for employment or consulting arrangements by Grab of certain of our OpenTerra employees. The transactions contemplated by the services agreement, license agreement and asset purchase agreement together comprise the “Grab Transaction.” In January 2020, Grab completed the acquisition of assets pursuant to which we sold certain intellectual property associated with the OpenTerra Platform to Grab and facilitated the making of offers for employment or consulting arrangements by Grab to certain of our OpenTerra employees in exchange for a non-marketable equity interest in Grab Holdings, Inc. ordinary shares. We also received a perpetual, royalty-free license under the OpenTerra intellectual property rights assigned to Grab. Grab’s acquired workforce consisted of 59 of our employees. In January 2020, we invested $4.0 million in exchange for a Series B preferred stock equity interest of approximately 11% in a privately-held company. We also received a warrant to purchase additional shares of Series B. We will account for the investment under the equity method of accounting. |
Summary of business and signi_2
Summary of business and significant accounting policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
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 six months ended December 31, 2019 and 2018 . 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 2019 , included in our Annual Report on Form 10-K for fiscal 2019 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2019, which we refer to as the Form 10-K. Effective July 1, 2019, we adopted the requirements of Accounting Standards Update, or ASU, No. 2016-02, Leases (ASC 842) 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. |
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. |
Contract assets | Contract assets |
Recent accounting pronouncements | Recently adopted accounting pronouncements In August 2018, the Financial Accounting Standards Board, or 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. We early adopted ASU 2018-15 on July 1, 2019 on a prospective basis, and it did not have a material impact on our financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) which supersedes the guidance in topic ASC 840, Leases. The new standard, including subsequent amendments, requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to previous guidance for operating leases under ASC 840, Leases. We adopted ASC 842 effective July 1, 2019. We adopted the standard using the modified retrospective transition approach applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of right-of-use, or ROU, assets and lease liabilities for operating leases that were not previously recorded. For information regarding the impact of ASC 842 adoption, see Leases and Note 6. Leases On July 1, 2019, we adopted ASC 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after July 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to July 1, 2019. We also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, we recognized total ROU assets of $11.7 million , with corresponding liabilities of $13.0 million on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of operations and statements of cash flows. We recognize operating lease ROU assets and operating lease liabilities at the commencement date based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments we made and excludes lease incentives and initial direct costs we incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We include operating leases in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on our condensed consolidated balance sheets. Recent accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies accounting for income taxes by revising or clarifying existing guidance in ASC 740, as well as removing certain exceptions within ASC 740. This guidance is effective for us on July 1, 2021 with early adoption permitted. We are evaluating the impact of the adoption of this standard on our consolidated financial statements, but we do not expect it to have a material impact. With the exception of the recently adopted accounting pronouncements and recent accounting pronouncements not yet adopted discussed above, there have been no other changes in accounting pronouncements during the six months ended December 31, 2019 , as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2019, that are of significance or potential significance to us. |
Leases | Leases On July 1, 2019, we adopted ASC 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after July 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to July 1, 2019. We also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, we recognized total ROU assets of $11.7 million , with corresponding liabilities of $13.0 million on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of operations and statements of cash flows. We recognize operating lease ROU assets and operating lease liabilities at the commencement date based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments we made and excludes lease incentives and initial direct costs we incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We include operating leases in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on our condensed consolidated balance sheets. |
Summary of business and signi_3
Summary of business and significant accounting policies (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 (in thousands): Three Months Ended December 31, Six Months Ended 2019 2018 2019 2018 Product On-board automotive navigation solutions (point in time) (1) $ 61,543 $ 42,397 $ 117,533 $ 82,327 Total product revenue 61,543 42,397 117,533 82,327 Services Brought-in automotive navigation solutions (over time) (2) 8,787 4,480 15,009 8,022 Automotive maintenance and support and other (over time) 1,206 645 2,875 655 Mobile navigation services (over time) 2,339 2,638 5,087 5,408 Total services revenue 12,332 7,763 22,971 14,085 Total revenue $ 73,875 $ 50,160 $ 140,504 $ 96,412 (1) Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees. (2) Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions. |
Changes in the balance of total deferred costs | Changes in the balance of total deferred costs (current and non-current) during the six months ended December 31, 2019 were as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2019 $ 71,466 $ 8,336 $ 79,802 Content licensing costs incurred 64,612 — 64,612 Customized software development costs incurred — 2,503 2,503 Less: cost of revenue recognized (62,785 ) (2,369 ) (65,154 ) Balance, December 31, 2019 $ 73,293 $ 8,470 $ 81,763 six months ended December 31, 2019 were as follows (in thousands): Beginning balance, June 30, 2019 $ 135,135 Revenue recognized that was included in beginning balance (32,434 ) Amount billed, net of revenue recognized that was not included in beginning balance 41,470 Ending balance, December 31, 2019 $ 144,171 |
Accumulated other comprehensive loss, net of tax | The components of accumulated other comprehensive loss, net of related taxes, and activity as of December 31, 2019 , were as follows (in thousands): Foreign Currency Unrealized Total Balance, net of tax as of June 30, 2019 $ (1,623 ) $ 146 $ (1,477 ) Other comprehensive income (loss) before reclassifications, net of tax (103 ) 44 (59 ) Amount reclassified from accumulated other comprehensive loss, net of tax — (2 ) (2 ) Other comprehensive income (loss), net of tax (103 ) 42 (61 ) Balance, net of tax as of December 31, 2019 $ (1,726 ) $ 188 $ (1,538 ) |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
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 December 31, Six Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations $ 13,062 $ (4,118 ) $ 13,094 $ (10,203 ) Loss on discontinued operations (56 ) (463 ) (4,042 ) (1,948 ) Net income (loss) $ 13,006 $ (4,581 ) $ 9,052 $ (12,151 ) Shares used to compute basic income (loss) per share 48,475 45,443 48,127 45,230 Dilutive potential common shares: Stock options — — 112 — Restricted stock units 346 — 1,018 — Shares used to compute diluted income (loss) per share 48,821 45,443 49,257 45,230 Basic income (loss) per share: Loss from continuing operations $ 0.27 $ (0.09 ) $ 0.27 $ (0.23 ) Loss on discontinued operations — (0.01 ) (0.08 ) (0.04 ) Net income (loss) $ 0.27 $ (0.10 ) $ 0.19 $ (0.27 ) Diluted income (loss) per share: Loss from continuing operations $ 0.27 $ (0.09 ) $ 0.27 $ (0.23 ) Loss on discontinued operations — (0.01 ) (0.08 ) (0.04 ) Net income (loss) $ 0.27 $ (0.10 ) $ 0.18 $ (0.27 ) Potential common stock equivalents not included in the calculation of diluted income per share as the effect would be anti-dilutive 2,708 — 1,296 — |
Cash, cash equivalents and sh_2
Cash, cash equivalents and short-term investments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 20,824 $ — $ — $ 20,824 Cash equivalents: Money market mutual funds 4,274 — — 4,274 Municipal securities 750 — — 750 Commercial paper 499 — — 499 Total cash equivalents 5,523 — — 5,523 Total cash and cash equivalents 26,347 — — 26,347 Short-term investments: U.S. treasury securities 2,618 9 — 2,627 U.S. agency securities 3,815 6 (2 ) 3,819 Asset-backed securities 20,446 93 (19 ) 20,520 Municipal securities 8,930 27 — 8,957 Commercial paper 3,676 1 — 3,677 Corporate bonds 62,654 352 (3 ) 63,003 Total short-term investments 102,139 488 (24 ) 102,603 Cash, cash equivalents and short-term investments $ 128,486 $ 488 $ (24 ) $ 128,950 Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2019 (in thousands): Description Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 25,987 $ — $ — $ 25,987 Cash equivalents: Money market mutual funds 790 — — 790 Commercial paper 498 — — 498 Total cash equivalents 1,288 — — 1,288 Total cash and cash equivalents 27,275 — — 27,275 Short-term investments: U.S. treasury securities 3,570 6 (4 ) 3,572 U.S. agency securities 3,002 9 (2 ) 3,009 Asset-backed securities 12,319 104 (10 ) 12,413 Municipal securities 4,124 16 — 4,140 Commercial paper 1,986 — — 1,986 Corporate bonds 45,492 269 (27 ) 45,734 Total debt securities 70,493 404 (43 ) 70,854 Marketable equity securities 250 1,099 — 1,349 Total short-term investments 70,743 1,503 (43 ) 72,203 Cash, cash equivalents and short-term investments $ 98,018 $ 1,503 $ (43 ) $ 99,478 |
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 12 months or a continuous unrealized loss position for 12 months or greater, as of December 31, 2019 and June 30, 2019 (in thousands): December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. agency securities $ 2,032 $ (2 ) $ — $ — $ 2,032 $ (2 ) Asset-backed securities 7,308 (17 ) 1,117 (2 ) 8,425 (19 ) Corporate bonds 5,960 (3 ) — — 5,960 (3 ) Total $ 15,300 $ (22 ) $ 1,117 $ (2 ) $ 16,417 $ (24 ) June 30, 2019 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 $ — $ — $ 2,992 $ (5 ) $ 2,992 $ (5 ) U.S. agency securities — — 998 (1 ) 998 (1 ) Asset-backed securities — — 3,537 (11 ) 3,537 (11 ) Commercial paper 493 (1 ) — — 493 (1 ) Corporate bonds 4,600 (3 ) 14,615 (24 ) 19,215 (27 ) Total $ 5,093 $ (4 ) $ 22,142 $ (41 ) $ 27,235 $ (45 ) |
Schedule of cost and estimated fair value of short-term fixed income securities classified as short-term investments | 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 December 31, 2019 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 39,537 $ 39,597 Due between one and two years 42,700 42,985 Due between two and three years 19,902 20,021 Total $ 102,139 $ 102,603 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair values of financial instruments | The fair values of these financial instruments were determined using the following inputs at December 31, 2019 (in thousands): Fair Value Measurements at December 31, 2019 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 $ 4,274 $ 4,274 $ — $ — Municipal securities 750 — 750 — Commercial paper 499 — 499 — Total cash equivalents 5,523 4,274 1,249 — Short-term investments: U.S. treasury securities 2,627 2,627 — — U.S. agency securities 3,819 — 3,819 — Asset-backed securities 20,520 — 20,520 — Municipal securities 8,957 — 8,957 — Commercial paper 3,677 — 3,677 — Corporate bonds 63,003 — 63,003 — Total short-term investments 102,603 2,627 99,976 — Cash equivalents and short-term investments $ 108,126 $ 6,901 $ 101,225 $ — The fair values of our financial instruments were determined using the following inputs at June 30, 2019 (in thousands): Fair Value Measurements at June 30, 2019 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 $ 790 $ 790 $ — $ — Commercial paper 498 — 498 — Total cash equivalents 1,288 790 498 — Short-term investments: U.S. treasury securities 3,572 3,572 — — U.S. agency securities 3,009 — 3,009 — Asset-backed securities 12,413 — 12,413 — Municipal securities 4,140 — 4,140 — Commercial paper 1,986 — 1,986 — Corporate bonds 45,734 — 45,734 — Total debt securities 70,854 3,572 67,282 — Marketable equity securities 1,349 1,349 — — Total short-term investments 72,203 4,921 67,282 — Cash equivalents and short-term investments $ 73,491 $ 5,711 $ 67,780 $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of operating lease maturity | Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2019 were as follows (in thousands): Fiscal Year 2020 $ 1,988 2021 3,143 2022 2,774 2023 2,315 2024 619 Total lease payments 10,839 Less: imputed interest (847 ) Total operating lease liabilities $ 9,992 |
Balance sheet information (Tabl
Balance sheet information (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Finite-lived intangible assets amortization expense | Intangible assets consisted of the following (in thousands): December 31, June 30, Acquired developed technology $ 13,875 $ 13,875 Less accumulated amortization (12,930 ) (12,494 ) Intangible assets, net $ 945 $ 1,381 |
Schedule of other assets | Other assets consisted of the following (in thousands): December 31, June 30, Deposits and other assets $ 930 $ 956 Non-marketable equity investments 458 458 Non-marketable equity investment greater than 5% in LLC 16,397 — Non-marketable debt investments 3,500 — Total other assets $ 21,285 $ 1,414 |
Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands): December 31, June 30, Accrued compensation and benefits $ 10,383 $ 13,288 Accrued royalties 30,824 21,604 Customer overpayments and related reserves 4,523 4,291 Other accrued expenses 8,452 9,716 Total accrued expenses $ 54,182 $ 48,899 |
Deferred revenue and remainin_2
Deferred revenue and remaining performance obligations (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
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 six months ended December 31, 2019 were as follows (in thousands): Deferred Costs Content Development Total Balance, June 30, 2019 $ 71,466 $ 8,336 $ 79,802 Content licensing costs incurred 64,612 — 64,612 Customized software development costs incurred — 2,503 2,503 Less: cost of revenue recognized (62,785 ) (2,369 ) (65,154 ) Balance, December 31, 2019 $ 73,293 $ 8,470 $ 81,763 six months ended December 31, 2019 were as follows (in thousands): Beginning balance, June 30, 2019 $ 135,135 Revenue recognized that was included in beginning balance (32,434 ) Amount billed, net of revenue recognized that was not included in beginning balance 41,470 Ending balance, December 31, 2019 $ 144,171 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, 2019 3,409 $ 6.49 Granted 55 4.92 Exercised (1,326 ) 6.29 Canceled or expired (175 ) 5.94 Options outstanding as of December 31, 2019 1,963 $ 6.64 5.67 $ 5,250 As of December 31, 2019: Options vested and expected to vest 1,929 $ 6.66 5.11 $ 5,213 Options exercisable 1,563 $ 6.96 5.06 $ 4,312 |
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, 2019 2,637 Granted 1,310 Vested (932 ) Canceled (458 ) RSUs outstanding as of December 31, 2019 2,557 1.78 $ 12,428 As of December 31, 2019: RSUs expected to vest 2,143 1.66 $ 10,413 |
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, 2019 4,472 Annual share increase authorized under 2009 Plan 1,667 Granted (1,681 ) RSUs withheld for taxes in net share settlements 251 Canceled 633 Expired under 2009 and 2011 Plans (5,342 ) Shares available under 2009 and 2011 Plans upon termination on November 20, 2019 — Initial shares authorized under 2019 Plan on November 20, 2019 5,700 Shares added from 5,800,000 reserved share pool available (1) 92 Granted (244 ) Shares available for grant as of December 31, 2019 5,548 (1) Additional shares are available up to a maximum of 5,800,000 shares only to the extent shares subject to grants under the 2009 Plan were outstanding as of November 20, 2019 but later expire or otherwise terminate without having been exercised in full. |
Stock-based compensation expense | The following table summarizes the stock-based compensation expense for continuing operations recorded for stock options and RSUs, including performance-based RSUs, issued to employees and nonemployees (in thousands): Three Months Ended December 31, Six Months Ended 2019 2018 2019 2018 Stock option awards $ 226 $ 416 $ 534 $ 833 RSU awards 1,252 1,459 2,696 3,090 Total stock-based compensation expense $ 1,478 $ 1,875 $ 3,230 $ 3,923 |
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 December 31, Six Months Ended 2019 2018 2019 2018 Expected volatility 48 % — % 48 % 39 % Expected term (in years) 5.65 0.00 5.65 6.87 Risk-free interest rate 1.58 % — % 1.58 % 2.99 % Dividend yield — % — % — % — % Weighted average grant date fair value per share $ 2.27 $ — $ 2.27 $ 2.32 |
Sale of Ads Business (Tables)
Sale of Ads Business (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities of Discontinued Operations | Reconciliations of the carrying amounts of major classes of assets and liabilities included as part of discontinued operations to the amounts presented separately in our June 30, 2019 condensed consolidated balance sheet are presented in the following table: June 30, Assets Accounts receivable $ 6,011 Prepaid and other current assets 319 Assets of discontinued operations $ 6,330 Property and equipment, net $ 72 Operating lease right-of-use assets — Deferred income taxes, non-current (59 ) Goodwill and intangible assets, net 11,786 Other assets 395 Assets of discontinued operations, non-current $ 12,194 Liabilities Accounts payable $ 974 Accrued expenses 2,399 Operating lease liabilities — Liabilities of discontinued operations $ 3,373 Deferred rent, non-current $ 30 Operating lease liabilities, non-current — Liabilities of discontinued operations, non-current $ 30 Reconciliations of the major line items comprising loss from operations of the Ads Business included as part of discontinued operations to the amounts presented separately in our statements of operations for the three and six months ended December 31, 2019 and 2018 are presented in the following tables: Three Months Ended December 31, Six Months Ended 2019 2018 2019 2018 Revenue - services $ — $ 7,016 $ 3,614 $ 12,963 Cost of revenue - services — 3,285 1,335 6,505 Gross profit — 3,731 2,279 6,458 Operating expenses: Research and development — 1,325 697 2,935 Sales and marketing — 2,790 750 5,502 General and administrative — — — — Total operating expenses — 4,115 1,447 8,437 Provision for (benefit from) income taxes — 79 — (31 ) Income (loss) from operations of Ads Business $ — $ (463 ) $ 832 $ (1,948 ) |
Summary of business and signi_4
Summary of business and significant accounting policies - Description of Business (Details) | 12 Months Ended |
Jun. 30, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Summary of business and signi_5
Summary of business and significant accounting policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 73,875 | $ 50,160 | $ 140,504 | $ 96,412 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 61,543 | 42,397 | 117,533 | 82,327 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,332 | 7,763 | 22,971 | 14,085 |
Point in Time | On-board automotive navigation solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 61,543 | 42,397 | 117,533 | 82,327 |
Over Time | Brought-in automotive navigation solutions (over time) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,787 | 4,480 | 15,009 | 8,022 |
Over Time | Automotive maintenance and support and other (over time) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,206 | 645 | 2,875 | 655 |
Over Time | Mobile navigation services (over time) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,339 | $ 2,638 | $ 5,087 | $ 5,408 |
Summary of business and signi_6
Summary of business and significant accounting policies - Contract Assets (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract assets | $ 5,700,000 | $ 0 |
Summary of business and signi_7
Summary of business and significant accounting policies - Deferred Costs (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Contract with Customer Asset [Roll Forward] | |
Balance, June 30, 2019 | $ 79,802 |
Content licensing costs incurred | 64,612 |
Customized software development costs incurred | 2,503 |
Less: cost of revenue recognized | (65,154) |
Balance, December 31, 2019 | 81,763 |
Content | |
Contract with Customer Asset [Roll Forward] | |
Balance, June 30, 2019 | 71,466 |
Content licensing costs incurred | 64,612 |
Customized software development costs incurred | 0 |
Less: cost of revenue recognized | (62,785) |
Balance, December 31, 2019 | 73,293 |
Development | |
Contract with Customer Asset [Roll Forward] | |
Balance, June 30, 2019 | 8,336 |
Content licensing costs incurred | 0 |
Customized software development costs incurred | 2,503 |
Less: cost of revenue recognized | (2,369) |
Balance, December 31, 2019 | $ 8,470 |
Summary of business and signi_8
Summary of business and significant accounting policies - Concentration of Risk and Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Ford Motor Company | Sales Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 39.00% | 65.00% | 45.00% | 66.00% | |
Ford Motor Company | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 44.00% | 33.00% | |||
GM | Sales Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 31.00% | 19.00% | 28.00% | 18.00% | |
GM | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 32.00% | 15.00% | |||
Grab | Sales Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 19.00% | 15.00% | |||
Xevo Inc | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10.00% | 29.00% |
Summary of business and signi_9
Summary of business and significant accounting policies - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Restricted cash | $ 1,520 | $ 1,950 | $ 2,476 |
Summary of business and sign_10
Summary of business and significant accounting policies - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 96,142 | $ 102,276 | $ 90,640 | $ 108,883 |
Other comprehensive income (loss) before reclassifications, net of tax | (59) | |||
Amount reclassified from accumulated other comprehensive loss, net of tax | (2) | |||
Other comprehensive income (loss), net of tax | 191 | (29) | (61) | (155) |
Ending balance | 106,481 | 99,430 | 106,481 | 99,430 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (1,729) | (1,981) | (1,477) | (1,855) |
Ending balance | (1,538) | $ (2,010) | (1,538) | $ (2,010) |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (1,623) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (103) | |||
Amount reclassified from accumulated other comprehensive loss, net of tax | 0 | |||
Other comprehensive income (loss), net of tax | (103) | |||
Ending balance | (1,726) | (1,726) | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 146 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 44 | |||
Amount reclassified from accumulated other comprehensive loss, net of tax | (2) | |||
Other comprehensive income (loss), net of tax | 42 | |||
Ending balance | $ 188 | $ 188 |
Summary of business and sign_11
Summary of business and significant accounting policies - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 8,749 | |
Operating lease liability | $ 9,992 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 11,700 | |
Operating lease liability | $ 13,000 |
Net income (loss) per share (De
Net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||||
Income (loss) from continuing operations | $ 13,062 | $ (4,118) | $ 13,094 | $ (10,203) | ||
Loss on discontinued operations | (56) | (463) | (4,042) | (1,948) | ||
Net income (loss) | $ 13,006 | $ (3,954) | $ (4,581) | $ (7,570) | $ 9,052 | $ (12,151) |
Shares used to compute basic income (loss) per share (in shares) | 48,475,000 | 45,443,000 | 48,127,000 | 45,230,000 | ||
Dilutive potential common shares: | ||||||
Stock options (in shares) | 0 | 0 | 112,000 | 0 | ||
Restricted stock units (in shares) | 346,000 | 0 | 1,018,000 | 0 | ||
Shares used to compute diluted income (loss) per share (in shares) | 48,821,000 | 45,443,000 | 49,257,000 | 45,230,000 | ||
Basic income (loss) per share: | ||||||
Income (loss) from continuing operations (in dollars per share) | $ 0.27 | $ (0.09) | $ 0.27 | $ (0.23) | ||
Loss on discontinued operations (in dollars per share) | 0 | (0.01) | (0.08) | (0.04) | ||
Net income (loss) (in dollars per share) | 0.27 | (0.10) | 0.19 | (0.27) | ||
Diluted income (loss) per share: | ||||||
Income (loss) from continuing operations (in dollars per share) | 0.27 | (0.09) | 0.27 | (0.23) | ||
Loss on discontinued operations (in dollars per share) | 0 | (0.01) | (0.08) | (0.04) | ||
Net income (loss) (in dollars per share) | $ 0.27 | $ (0.10) | $ 0.18 | $ (0.27) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Potential common stock equivalents not included in the calculation of diluted income per share as the effect would be anti-dilutive (in shares) | 2,708,000 | 0 | 1,296,000 | 0 | ||
Performance-based restricted stock units | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Potential common stock equivalents not included in the calculation of diluted income per share as the effect would be anti-dilutive (in shares) | 800,000 |
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 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | |||
Cash | $ 20,824 | $ 25,987 | |
Total cash equivalents | 5,523 | 1,288 | |
Total cash and cash equivalents | 26,347 | 27,275 | $ 22,405 |
Debt securities | |||
Amortized Cost | 102,139 | 70,493 | |
Unrealized Gains | 488 | 404 | |
Unrealized Losses | (24) | (43) | |
Estimated Fair Value | 102,603 | 70,854 | |
Marketable equity securities | |||
Amortized Cost | 250 | ||
Unrealized Gains | 1,099 | ||
Unrealized Losses | 0 | ||
Estimated Fair Value | 1,349 | ||
Short-term investments | |||
Amortized Cost | 70,743 | ||
Unrealized Gains | 1,503 | ||
Unrealized Losses | (43) | ||
Estimated Fair Value | 102,603 | 72,203 | |
Cash, cash equivalents and short-term investments | |||
Amortized Cost | 128,486 | 98,018 | |
Unrealized Gains | 488 | 1,503 | |
Unrealized Losses | (24) | (43) | |
Estimated Fair Value | 128,950 | 99,478 | |
U.S. treasury securities | |||
Debt securities | |||
Amortized Cost | 2,618 | 3,570 | |
Unrealized Gains | 9 | 6 | |
Unrealized Losses | 0 | (4) | |
Estimated Fair Value | 2,627 | 3,572 | |
U.S. agency securities | |||
Debt securities | |||
Amortized Cost | 3,815 | 3,002 | |
Unrealized Gains | 6 | 9 | |
Unrealized Losses | (2) | (2) | |
Estimated Fair Value | 3,819 | 3,009 | |
Asset-backed securities | |||
Debt securities | |||
Amortized Cost | 20,446 | 12,319 | |
Unrealized Gains | 93 | 104 | |
Unrealized Losses | (19) | (10) | |
Estimated Fair Value | 20,520 | 12,413 | |
Municipal securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash equivalents | 750 | ||
Debt securities | |||
Amortized Cost | 8,930 | 4,124 | |
Unrealized Gains | 27 | 16 | |
Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 8,957 | 4,140 | |
Commercial paper | |||
Debt securities | |||
Amortized Cost | 3,676 | 1,986 | |
Unrealized Gains | 1 | 0 | |
Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 3,677 | 1,986 | |
Corporate bonds | |||
Debt securities | |||
Amortized Cost | 62,654 | 45,492 | |
Unrealized Gains | 352 | 269 | |
Unrealized Losses | (3) | (27) | |
Estimated Fair Value | 63,003 | 45,734 | |
Money market mutual funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash equivalents | 4,274 | 790 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash equivalents | $ 499 | $ 498 |
Cash, cash equivalents and sh_4
Cash, cash equivalents and short-term investments - Summary of Fair Value and Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Jun. 30, 2019USD ($)security |
Fair Value | ||
Less than 12 Months | $ 15,300 | $ 5,093 |
12 Months or Greater | 1,117 | 22,142 |
Total | 16,417 | 27,235 |
Unrealized Losses | ||
Less than 12 Months | (22) | (4) |
12 Months or Greater | (2) | (41) |
Total | $ (24) | $ (45) |
Number of Positions | ||
Less than 12 Months (securities) | security | 45 | 11 |
12 Months or Greater (securities) | security | 5 | 51 |
U.S. treasury securities | ||
Fair Value | ||
Less than 12 Months | $ 0 | |
12 Months or Greater | 2,992 | |
Total | 2,992 | |
Unrealized Losses | ||
Less than 12 Months | 0 | |
12 Months or Greater | (5) | |
Total | (5) | |
U.S. agency securities | ||
Fair Value | ||
Less than 12 Months | $ 2,032 | 0 |
12 Months or Greater | 0 | 998 |
Total | 2,032 | 998 |
Unrealized Losses | ||
Less than 12 Months | (2) | 0 |
12 Months or Greater | 0 | (1) |
Total | (2) | (1) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 7,308 | 0 |
12 Months or Greater | 1,117 | 3,537 |
Total | 8,425 | 3,537 |
Unrealized Losses | ||
Less than 12 Months | (17) | 0 |
12 Months or Greater | (2) | (11) |
Total | (19) | (11) |
Commercial paper | ||
Fair Value | ||
Less than 12 Months | 493 | |
12 Months or Greater | 0 | |
Total | 493 | |
Unrealized Losses | ||
Less than 12 Months | (1) | |
12 Months or Greater | 0 | |
Total | (1) | |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 5,960 | 4,600 |
12 Months or Greater | 0 | 14,615 |
Total | 5,960 | 19,215 |
Unrealized Losses | ||
Less than 12 Months | (3) | (3) |
12 Months or Greater | 0 | (24) |
Total | $ (3) | $ (27) |
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 | Dec. 31, 2019 | Jun. 30, 2019 |
Amortized Cost | ||
Due within one year | $ 39,537 | |
Due between one and two years | 42,700 | |
Due between two and three years | 19,902 | |
Amortized Cost | 102,139 | $ 70,493 |
Estimated Fair Value | ||
Due within one year | 39,597 | |
Due between one and two years | 42,985 | |
Due between two and three years | 20,021 | |
Total | $ 102,603 | $ 70,854 |
Fair value of financial instr_3
Fair value of financial instruments Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 5,523 | $ 1,288 | |
Total short-term investments | 102,603 | 70,854 | |
Marketable equity securities | 1,349 | ||
Short-term investments | 102,603 | 72,203 | |
Cash equivalents and short-term investments | 108,126 | 73,491 | |
Accretion of net premium on short-term investments | (75) | $ 0 | |
Quoted Prices in Active Markets for Identical Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 4,274 | 790 | |
Total short-term investments | 2,627 | 3,572 | |
Marketable equity securities | 1,349 | ||
Short-term investments | 4,921 | ||
Cash equivalents and short-term investments | 6,901 | 5,711 | |
Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 1,249 | 498 | |
Total short-term investments | 99,976 | 67,282 | |
Marketable equity securities | 0 | ||
Short-term investments | 67,282 | ||
Cash equivalents and short-term investments | 101,225 | 67,780 | |
Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | |
Total short-term investments | 0 | 0 | |
Marketable equity securities | 0 | ||
Short-term investments | 0 | ||
Cash equivalents and short-term investments | 0 | 0 | |
U.S. treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 2,627 | 3,572 | |
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] | |||
Total short-term investments | 2,627 | 3,572 | |
U.S. treasury securities | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
U.S. treasury securities | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 3,819 | 3,009 | |
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] | |||
Total short-term investments | 0 | 0 | |
U.S. agency securities | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 3,819 | 3,009 | |
U.S. agency securities | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 20,520 | 12,413 | |
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Asset-backed securities | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 20,520 | 12,413 | |
Asset-backed securities | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 750 | ||
Total short-term investments | 8,957 | 4,140 | |
Municipal 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 | ||
Total short-term investments | 0 | 0 | |
Municipal securities | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 750 | ||
Total short-term investments | 8,957 | 4,140 | |
Municipal securities | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | ||
Total short-term investments | 0 | 0 | |
Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 3,677 | 1,986 | |
Commercial paper | Quoted Prices in Active Markets for Identical Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Commercial paper | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 3,677 | 1,986 | |
Commercial paper | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 63,003 | 45,734 | |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Corporate bonds | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 63,003 | 45,734 | |
Corporate bonds | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total short-term investments | 0 | 0 | |
Money market mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 4,274 | 790 | |
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 | 4,274 | 790 | |
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 | |
Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 499 | 498 | |
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 | 499 | 498 | |
Commercial paper | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 0 | $ 0 |
Fair value of financial instr_4
Fair value of financial instruments Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Aug. 31, 2019 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Realized gain (loss) on non-marketable equity securities | $ 62,000 | ||||||
Unrealized gain (loss) on non-marketable equity securities | 62,000 | $ 1,259,000 | |||||
Non-marketable equity investments | $ 458,000 | 458,000 | $ 458,000 | ||||
Income related to proportionate share of equity investment | 797,000 | $ 0 | 797,000 | $ 0 | |||
Non-marketable debt investments | 3,500,000 | 3,500,000 | $ 0 | ||||
inMarket Media, LLC | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Equity method investment | $ 15,600,000 | ||||||
Income related to proportionate share of equity investment | $ 797,000 | $ 797,000 | |||||
Convertible Note Receivable 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Convertible notes receivable, interest rate | 6.50% | 6.50% | |||||
Convertible Note Receivable 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Convertible notes receivable, interest rate | 6.00% | ||||||
Significant Unobservable Inputs | Convertible Note Receivable | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Non-marketable debt investments | $ 3,500,000 | $ 3,500,000 | |||||
Significant Unobservable Inputs | Convertible Note Receivable 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Non-marketable debt investments | $ 1,500,000 | $ 1,500,000 | |||||
Significant Unobservable Inputs | Convertible Note Receivable 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Non-marketable debt investments | $ 2,000,000 |
Leases Schedule of operating le
Leases Schedule of operating lease maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,988 |
2021 | 3,143 |
2022 | 2,774 |
2023 | 2,315 |
2024 | 619 |
Total lease payments | 10,839 |
Less: imputed interest | (847) |
Total operating lease liabilities | $ 9,992 |
Leases Additional Information (
Leases Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 763 | $ 1,600 |
Weighted average remaining operating lease term | 3 years 2 months 12 days | 3 years 2 months 12 days |
Weighted average discount rate | 5.00% | 5.00% |
Cash payments included in measurement of operating lease liabilities | $ 842 | $ 1,700 |
Balance sheet information - Int
Balance sheet information - Intangibles, Other Assets and Accrued Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Goodwill | $ 14,300,000 | $ 14,300,000 | $ 26,100,000 | ||
Goodwill, reduction | 11,800,000 | ||||
Acquired developed technology | 13,875,000 | 13,875,000 | 13,875,000 | ||
Less accumulated amortization | (12,930,000) | (12,930,000) | (12,494,000) | ||
Intangible assets, net | 945,000 | 945,000 | 1,381,000 | ||
Amortization of intangible assets | 218,000 | $ 283,000 | 436,000 | $ 567,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||||
2020 | 436,000 | 436,000 | |||
2021 | 509,000 | 509,000 | |||
Assets held for sale | |||||
Intangible asset held for sale | 900,000 | 900,000 | |||
Impairment of intangible assets held for sale | 0 | ||||
Other Assets | |||||
Deposits and other assets | 930,000 | 930,000 | 956,000 | ||
Non-marketable equity investments | 458,000 | 458,000 | 458,000 | ||
Non-marketable equity investment greater than 5% in LLC | 16,397,000 | 16,397,000 | 0 | ||
Non-marketable debt investments | 3,500,000 | 3,500,000 | 0 | ||
Total other assets | 21,285,000 | 21,285,000 | 1,414,000 | ||
Accrued Expenses | |||||
Accrued compensation and benefits | 10,383,000 | 10,383,000 | 13,288,000 | ||
Accrued royalties | 30,824,000 | 30,824,000 | 21,604,000 | ||
Customer overpayments and related reserves | 4,523,000 | 4,523,000 | 4,291,000 | ||
Other accrued expenses | 8,452,000 | 8,452,000 | 9,716,000 | ||
Total accrued expenses | $ 54,182,000 | $ 54,182,000 | $ 48,899,000 |
Deferred revenue and remainin_3
Deferred revenue and remaining performance obligations - Contract with customer, liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Contract with Customer, Liability [Roll Forward] | ||
Beginning balance, June 30, 2019 | $ 135,135 | |
Revenue recognized that was included in beginning balance | (32,434) | |
Amount billed, net of revenue recognized that was not included in beginning balance | 41,470 | |
Ending balance, December 31, 2019 | $ 144,171 | 144,171 |
Cumulative adjustment as a result of changes in the estimate of the transaction price | 138 | 318 |
Revenue recognized from performance obligations satisfied or partially satisfied in previous periods | $ 239 | $ 354 |
Deferred revenue and remainin_4
Deferred revenue and remaining performance obligations - Performance Obligation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 84.2 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, remaining duration (in years) | 1 year |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, remaining duration (in years) | 7 years |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Financial commitments | $ 8.5 |
Stock-based compensation - Summ
Stock-based compensation - Summary of stock option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2019 | |
Number of Shares | |
Beginning balance (shares) | 3,409 |
Granted (shares) | 55 |
Exercised (shares) | (1,326) |
Canceled or expired (shares) | (175) |
Ending balance (shares) | 1,963 |
Options vested and expected to vest (shares) | 1,929 |
Options exercisable (shares) | 1,563 |
Weighted Average Exercise Price | |
Weighted average exercise (in dollars per share) | $ 6.49 |
Granted (in dollars per share) | 4.92 |
Exercised (in dollars per share) | 6.29 |
Canceled or expired (in dollars per share) | 5.94 |
Weighted average exercise (in dollars per share) | 6.64 |
Options vested and expected to vest (in dollars per share) | 6.66 |
Options exercisable (in dollars per share) | $ 6.96 |
Weighted Average Remaining Contractual Life | |
Options outstanding | 5 years 8 months 1 day |
Options vested and expected to vest | 5 years 1 month 9 days |
Options exercisable | 5 years 21 days |
Aggregate Intrinsic Value | |
Options outstanding | $ 5,250 |
Options vested and expected to vest | 5,213 |
Options exercisable | $ 4,312 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of RSU activity (Details) - RSU awards - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2019 | |
Number of Shares | |
Beginning balance (in shares) | 2,637 |
Granted (in shares) | 1,310 |
Vested (in shares) | (932) |
Canceled (shares) | (458) |
Ending balance (in shares) | 2,557 |
RSUs outstanding, weighted average remaining contractual life | 1 year 9 months 10 days |
RSUs outstanding, aggregate intrinsic value | $ 12,428 |
RSUs expected to vest at period end (in shares) | 2,143 |
RSUs expected to vest, weighted average remaining contractual life | 1 year 7 months 28 days |
RSUs expected to vest, aggregate intrinsic value | $ 10,413 |
Stock-based compensation - PSU
Stock-based compensation - PSU (Details) - PSU | 1 Months Ended | 4 Months Ended | 6 Months Ended | 15 Months Ended | |
Sep. 30, 2019milestoneshares | Oct. 31, 2018shares | Dec. 31, 2019shares | Dec. 31, 2019shares | Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance milestones | milestone | 4 | ||||
Trading days, period | 30 days | ||||
Performance period (in years) | 3 years | 3 years | |||
Percentage that will vest upon reaching milestone | 50.00% | ||||
Percentage will vest on one year anniversary of performance milestone | 50.00% | ||||
Performance-based RSUs earned (in shares) | 0 | 0 | 0 | ||
Performance-based RSUs Canceled (in shares) | 0 | ||||
Performance-based RSUs Outstanding (in shares) | 800,000 | 800,000 | 800,000 | ||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 560,000 | 240,000 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - shares | Nov. 20, 2019 | Dec. 31, 2019 | Nov. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 0 | 0 | ||||
Equity Incentive Plan 2009 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (in shares) | 1,666,666 | |||||
Shares expired (in shares) | 5,342,000 | |||||
Equity Incentive Plan 2019 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (in shares) | 92,000 | |||||
Shares reserved for future issuance (in shares) | 5,700,000 | |||||
Additional shares reserved for future issuance (up to) (in shares) | 5,800,000 | |||||
Termination period from date of adoption | 10 years |
Stock-based compensation - Su_3
Stock-based compensation - Summary of shares available for grant activity (Details) - shares shares in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Nov. 20, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Shares available for grant (in shares) | 4,472 | 4,472 | |
Shares available for grant (in shares) | 5,548 | 5,548 | |
Equity Incentive Plan 2009 and 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Shares available for grant (in shares) | 0 | ||
Additional shares authorized (in shares) | 1,667 | ||
Granted (in shares) | (1,681) | ||
RSUs withheld for taxes in net share settlements (in shares) | 251 | ||
Canceled (in shares) | 633 | ||
Expired (in shares) | (5,342) | ||
Shares available for grant (in shares) | 0 | ||
Equity Incentive Plan 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Initial shares authorized under 2019 Plan (in shares) | 5,700 | ||
Additional shares authorized (in shares) | 92 | ||
Granted (in shares) | (244) |
Stock-based compensation - Empl
Stock-based compensation - Employee Stock Purchase Plans (Details) - Employee Stock [Member] | Nov. 20, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ESPP shares authorized (in shares) | 2,500,000 |
ESPP share purchase price, percent | 85.00% |
Stock-based compensation - Su_4
Stock-based compensation - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,478 | $ 1,875 | $ 3,230 | $ 3,923 |
Stock option awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 226 | 416 | 534 | 833 |
RSU awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,252 | $ 1,459 | $ 2,696 | $ 3,090 |
Stock-based compensation - Assu
Stock-based compensation - Assumptions used to estimate weighted average fair value of options (Details) - Stock options - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 48.00% | 0.00% | 48.00% | 39.00% |
Expected term | 5 years 7 months 24 days | 0 years | 5 years 7 months 24 days | 6 years 10 months 13 days |
Risk-free interest rate | 1.58% | 0.00% | 1.58% | 2.99% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value per share (in dollars per share) | $ 2.27 | $ 0 | $ 2.27 | $ 2.32 |
Stock repurchase program (Detai
Stock repurchase program (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase program, authorized amount | $ 20,000 | |||
Share repurchase program, term | 18 months | |||
Repurchase of common stock | $ 4,000 | $ 4,019 | $ 0 | |
Share repurchase program, shares repurchased (in shares) | 766,583 | 766,583 | ||
Average purchase price per share (in dollars per share) | $ 5.24 | $ 5.24 | ||
Share repurchase program, remaining authorized stock repurchases, amount | $ 14,700 | $ 14,700 | ||
Stock repurchases | 4,019 | |||
Additional Paid-in Capital | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchases | 2,623 | 2,600 | ||
Retained Earnings | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchases | $ 1,395 | $ 1,400 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes | $ 205,000 | $ 102,000 | $ 616,000 | $ 842,000 | |
Effective tax provision rate | 4.00% | (9.00%) | |||
Unrecognized tax benefit | 5,000,000 | $ 5,000,000 | $ 4,600,000 | ||
Unrecognized tax benefits that would affect effective tax rate | 77,000 | 77,000 | 77,000 | ||
Interest and penalties related to unrecognized tax positions accrued | $ 0 | $ 0 | 0 | ||
Valuation allowance | $ 48,400,000 |
Sale of Ads Business Reconcilia
Sale of Ads Business Reconciliation of carrying amounts of major classes of assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Assets | ||
Assets of discontinued operations | $ 0 | $ 6,330 |
Assets of discontinued operations, non-current | 0 | 12,194 |
Liabilities | ||
Liabilities of discontinued operations | 0 | 3,373 |
Liabilities of discontinued operations, non-current | $ 0 | 30 |
Ads Business | Discontinued Operations, Held-for-sale | ||
Assets | ||
Accounts receivable | 6,011 | |
Prepaid and other current assets | 319 | |
Assets of discontinued operations | 6,330 | |
Property and equipment, net | 72 | |
Operating lease right-of-use assets | 0 | |
Deferred income taxes, non-current | (59) | |
Goodwill and intangible assets, net | 11,786 | |
Other assets | 395 | |
Assets of discontinued operations, non-current | 12,194 | |
Liabilities | ||
Accounts payable | 974 | |
Accrued expenses | 2,399 | |
Operating lease liabilities | 0 | |
Liabilities of discontinued operations | 3,373 | |
Deferred rent, non-current | 30 | |
Operating lease liabilities, non-current | 0 | |
Liabilities of discontinued operations, non-current | $ 30 |
Sale of Ads Business Reconcil_2
Sale of Ads Business Reconciliations of the major line items constituting loss from operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from operations of Ads Business | $ 0 | $ (463) | $ 832 | $ (1,948) |
Ads Business | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gross profit | 0 | 2,279 | ||
Research and development | 0 | 697 | ||
Sales and marketing | 0 | 750 | ||
General and administrative | 0 | 0 | ||
Total operating expenses | 0 | 1,447 | ||
Provision for (benefit from) income taxes | 0 | 0 | ||
Income (loss) from operations of Ads Business | 0 | 832 | ||
Ads Business | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gross profit | 3,731 | 6,458 | ||
Research and development | 1,325 | 2,935 | ||
Sales and marketing | 2,790 | 5,502 | ||
General and administrative | 0 | 0 | ||
Total operating expenses | 4,115 | 8,437 | ||
Provision for (benefit from) income taxes | 79 | (31) | ||
Income (loss) from operations of Ads Business | (463) | (1,948) | ||
Services | Ads Business | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue - services | 0 | 3,614 | ||
Cost of revenue - services | $ 0 | $ 1,335 | ||
Services | Ads Business | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue - services | 7,016 | 12,963 | ||
Cost of revenue - services | $ 3,285 | $ 6,505 |
Sale of Ads Business Additional
Sale of Ads Business Additional Information (Details) - USD ($) $ in Thousands | Aug. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss from sale of Advertising business | $ 56 | $ 0 | $ 4,874 | $ 0 | |
Ads Business | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage ownership received | 14.50% | ||||
Member interest value | $ 15,600 | ||||
Loss from sale of Advertising business | 4,900 | ||||
Severance costs | 1,900 | ||||
Legal and third-party consulting fees | $ 363 |
Subsequent events (Details)
Subsequent events (Details) | 1 Months Ended | ||
Jan. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | |
Subsequent Event [Line Items] | |||
Non-marketable equity interest | $ 458,000 | $ 458,000 | |
Equity method investment | $ 16,397,000 | $ 0 | |
Synq3 LLC | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Equity method investment | $ 4,000,000 | ||
Equity interest percent | 11.00% | ||
Intellectual Property and Workforce in Exchange for Equity Interest | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Employees exchanged for non-marketable equity interest | employee | 59 |