SYNACOR, INC., 10-Q filed on 5/15/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2014
May 9, 2014
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
Synacor, Inc. 
 
Entity Central Index Key
0001408278 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2014 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
27,525,685 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
CURRENT ASSETS:
 
 
Cash and cash equivalents
$ 32,960 
$ 36,397 
Accounts receivable—net of allowance of $76 and $76
14,594 
14,569 
Deferred income taxes
1,022 
314 
Prepaid expenses and other current assets
2,268 
1,691 
Total current assets
50,844 
52,971 
PROPERTY AND EQUIPMENT—Net
14,389 
14,085 
DEFERRED INCOME TAXES, NON-CURRENT
4,455 
4,455 
OTHER LONG-TERM ASSETS
247 
348 
GOODWILL
1,565 
1,565 
CONVERTIBLE PROMISSORY NOTE
1,000 
1,000 
INVESTMENT IN EQUITY INTEREST
364 
365 
TOTAL ASSETS
72,864 
74,789 
CURRENT LIABILITIES:
 
 
Accounts payable
14,295 
13,573 
Accrued expenses and other current liabilities
4,193 
5,177 
Current portion of capital lease obligations
1,792 
1,946 
Total current liabilities
20,280 
20,696 
LONG-TERM PORTION OF CAPITAL LEASE OBLIGATIONS
966 
885 
OTHER LONG-TERM LIABILITIES
779 
977 
Total liabilities
22,025 
22,558 
COMMITMENTS AND CONTINGENCIES (Note 6)
   
   
STOCKHOLDERS’ EQUITY:
 
 
Common stock, $0.01 par value—100,000,000 shares authorized, 27,684,598 issued and 27,365,098 outstanding at December 31, 2013, and 100,000,000 authorized, 27,810,039 issued and 27,468,539 shares outstanding at March 31, 2014
278 
277 
Preferred stock, $0.01 par value—10,000,000 shares authorized, no shares issued and outstanding at March 31, 2014
Treasury stock—at cost, 319,500 shares at December 31, 2013 and 341,500 shares at March 31, 2014
(625)
(569)
Additional paid-in capital
102,932 
102,226 
Accumulated deficit
(51,761)
(49,705)
Accumulated other comprehensive income
15 
Total stockholders’ equity
50,839 
52,231 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 72,864 
$ 74,789 
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 76 
$ 76 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
27,810,039 
27,684,598 
Common stock, shares outstanding
27,468,539 
27,365,098 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
 
Treasury stock, shares
341,500 
319,500 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Income Statement [Abstract]
 
 
REVENUE
$ 25,248 
$ 29,143 
COSTS AND OPERATING EXPENSES:
 
 
Cost of revenue (exclusive of depreciation shown separately below)
13,876 
15,764 
Research and development (exclusive of depreciation shown separately below)
7,492 
6,865 
Sales and marketing
2,137 
2,130 
General and administrative (exclusive of depreciation shown separately below)
3,099 
3,144 
Depreciation
1,058 
1,130 
Total costs and operating expenses
27,662 
29,033 
INCOME (LOSS) FROM OPERATIONS
(2,414)
110 
OTHER INCOME (EXPENSE)
(7)
INTEREST EXPENSE
(88)
(58)
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY INTEREST
(2,494)
45 
PROVISION (BENEFIT) FOR INCOME TAXES
(684)
18 
LOSS IN EQUITY INTEREST
(246)
NET INCOME (LOSS)
$ (2,056)
$ 27 
NET INCOME (LOSS) PER SHARE:
 
 
Basic (in dollars per share)
$ (0.07)
$ 0.00 
Diluted (in dollars per share)
$ (0.07)
$ 0.00 
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET INCOME (LOSS) PER SHARE:
 
 
Basic (in shares)
27,434,374 
27,236,186 
Diluted (in shares)
27,434,374 
28,233,297 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
Net income (loss)
$ (2,056)
$ 27 
Other comprehensive income:
 
 
Change in foreign currency translation adjustment
13 
Comprehensive income (loss)
$ (2,043)
$ 33 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
Net income (loss)
$ (2,056)
$ 27 
Adjustments to reconcile net income (loss) to net cash used in operating activities:
 
 
Depreciation
1,058 
1,130 
Stock-based compensation expense
681 
562 
Provision for deferred income taxes
(709)
12 
Loss in equity interest
246 
Change in assets and liabilities, net of effect of acquisition:
 
 
Accounts receivable, net
(25)
1,076 
Prepaid expenses and other current assets
(577)
(309)
Other long-term assets
101 
40 
Accounts payable
1,292 
(1,427)
Accrued expenses and other current liabilities
(979)
(1,873)
Other long-term liabilities
(198)
16 
Net cash used in operating activities
(1,166)
(746)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
Purchases of property and equipment
(1,519)
(544)
Investment in equity interest
(245)
Net cash used in investing activities
(1,764)
(544)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
Repayments on capital lease obligations
(485)
(604)
Proceeds from exercise of common stock options
26 
100 
Purchase of treasury stock
(56)
Net cash used in financing activities
(515)
(504)
Effect of exchange rate changes on cash and cash equivalents
NET DECREASE IN CASH AND CASH EQUIVALENTS
(3,437)
(1,788)
CASH AND CASH EQUIVALENTS—Beginning of period
36,397 
41,944 
CASH AND CASH EQUIVALENTS—End of period
32,960 
40,156 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 
 
Cash paid for interest
98 
49 
Cash paid for income taxes
46 
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS:
 
 
Property and equipment acquired under capital lease obligations
413 
Accrued business acquisition consideration
500 
Accrued property and equipment expenditures
$ 149 
$ 890 
The Company and Summary of Significant Accounting Policies
The Company and Summary of Significant Accounting Policies
The Company and Summary of Significant Accounting Policies
Synacor, Inc., together with its consolidated subsidiary (collectively, the “Company”), is a leading provider of start experiences (startpages and homescreens), TV Everywhere, Identity Management (IDM), and various cloud-based services across multiple devices for cable, satellite, telecom and consumer electronics companies. The Company is also a leading provider of authentication and aggregation solutions enabling the delivery of personalized online content. The Company's technology allows its customers to package a wide array of personalized online content and cloud-based services with their high-speed Internet, communications, television and other digital offerings. The Company's customers offer the Company's services under their own brands on Internet-enabled devices such as PCs, tablets, smartphones and connected TVs.
Basis of Presentation — The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiary. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise have the power to control, are accounted for using the equity method and are included as investments in equity interest on the condensed consolidated balance sheets. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the interim unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position for the periods presented. These interim unaudited condensed consolidated financial statements are not necessarily indicative of the results expected for the full fiscal year or for any subsequent period and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the consolidated financial statements. Accordingly, actual results may differ from estimated amounts.
Concentrations of Risk — As of December 31, 2013 and March 31, 2014, and for the three months ended March 31, 2013 and 2014, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:
 
Accounts Receivable
 
December 31,
2013
 
March 31,
2014
Google
47
%
 
30
%
Display Advertising Partner (1)
11
%
 
N/A

Notes:
(1)
As of March 31, 2014, the accounts receivable of the Display Advertising Partner was less than 10%.

    
 
Revenue
 
Three Months Ended
March 31,
 
2013
2014
Google
54
%
51
%
Display Advertising Partner (1)
N/A

N/A

Notes:
(1)
For the three months ended March 31, 2013 and 2014, the revenue earned directly from the Display Advertising Partner was less than 10%.

For the three months ended March 31, 2013 and 2014, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue. The costs represent revenue share paid to customers for their supply of Internet traffic on the Company's start experiences:
 
 
Cost of Revenue
 
Three Months Ended
March 31,
 
2013
 
2014
Customer A
20
%
 
23
%
Customer B
14

 
15

Customer C
14

 
11

Customer D
11

 
10


Acquisitions — In January 2012, the Company acquired the assets of Carbyn, Inc., or Carbyn, an Ontario, Canada-based company. The assets acquired are principally comprised of mobile device software and technology and other intellectual property, which the Company expects to enhance its efforts in the development of next generation web applications for
mobile devices. The aggregate purchase price was $1,100 for the acquired assets, of which $600 was paid upon consummation of the acquisition and the remaining $500 was paid in April 2013. In addition, the Company hired seven employees from Carbyn who accepted employment with Synacor Canada, Inc., a wholly-owned subsidiary of the Company. The acquisition and its impact on the consolidated financial statements are not material. The purchase price was allocated to the assets acquired based on their respective fair values as of the acquisition date, with the amount exceeding the fair value recorded as goodwill of $819, which is expected to be deductible for tax purposes.

In November 2013, the Company acquired the assets of Teknision, Inc., or Teknision, an Ontario, Canada-based company. Teknision has created a development framework that accelerates the production of home screen and other Android applications. The Company expects to leverage the framework to enable a range of customer applications for Android devices. The Company also expects to enhance its presence in mobile and provide a platform for custom Android launchers and intelligent home screens for wireless carriers and consumer electronics companies. The aggregate purchase price is up to $1,005 for the acquired assets, of which $510 was paid upon consummation of the acquisition and the remaining $495 is due in May 2015 unless such amount is offset in satisfaction of certain indemnification obligations of Teknision. In addition, the Company hired eleven employees from Teknision who accepted employment with Synacor Canada, Inc. The acquisition and its impact on the condensed consolidated financial statements are not material. The purchase price was allocated to the assets acquired based on their respective fair values as of the acquisition date, with the amount exceeding the fair value recorded as goodwill of $746, which is expected to be deductible for tax purposes.
Fair Value and Investments
Fair Value and Investments
Investments and Fair Value Measurements
In July 2013, the Company made a $1,000 investment (in the form of a convertible promissory note) in a privately held Delaware corporation called Blazer and Flip Flops, Inc., or B&FF (doing business as The Experience Engine). B&FF is a professional services company whose principals have experience integrating its customers' systems with their consumers' devices, including smartphones and tablets.
The investment in B&FF is considered an available-for-sale security and is reported on the Company’s condensed consolidated balance sheets as a convertible promissory note.
The provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, establish a framework for measuring the fair value in accounting principles generally accepted in the U.S. and establish a hierarchy that categorizes and prioritizes the sources to be used to estimate fair value as follows:
Level 1 - Level 1 inputs are defined as observable inputs such as quoted prices in active markets.
Level 2 - Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Level 3 - Level 3 inputs are unobservable inputs that reflect the Company’s determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including the Company’s own data.
The Company classifies its investment in B&FF within Level 3 because it is valued using unobservable inputs. As of March 31, 2014, the estimated fair value is equal to the carrying amount, which was the purchase price of $1,000.
Property and Equipment - Net
Property and Equipment - Net
Property and Equipment—Net
Property and equipment, net consisted of the following (in thousands):
 
December 31,
2013
 
March 31,
2014
Computer equipment (1)
$
19,361

 
$
19,526

Computer software
4,625

 
5,044

Furniture and fixtures
1,634

 
1,656

Leasehold improvements
1,044

 
1,044

Work in process (primarily software development costs)
3,893

 
4,646

Other
173

 
173

 
30,730

 
32,089

Less accumulated depreciation (2)
(16,645
)
 
(17,700
)
Total property and equipment—net
$
14,085

 
$
14,389

Notes:
(1)
Includes equipment under capital lease obligations of approximately $5,289 and $5,702 as of December 31, 2013 and March 31, 2014, respectively.

(2)
Includes $2,053 and $2,315 of accumulated depreciation of equipment under capital leases as of December 31, 2013 and March 31, 2014, respectively.
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
 
December 31,
2013
 
March 31,
2014
Accrued compensation
$
2,787

 
$
2,196

Accrued content fees
580

 
1,111

Unearned revenue on contracts
247

 
235

Other
1,563

 
651

Total
$
5,177

 
$
4,193

Information About Segment and Geographic Areas
Information About Segment and Geographic Areas
Information About Segment and Geographic Areas
Operating segments are components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a total Company basis, accompanied by information about revenue by major service line for purposes of allocating resources and evaluating financial performance. Profitability measures by service line are not routinely prepared or used. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the Company level. Accordingly, the Company has determined that it has a single reporting segment and operating unit structure.
The following table sets forth revenue and long-lived tangible assets by geographic area (in thousands):
 
Three Months Ended
March 31,
 
2013
 
2014
Revenue
 
 
 
United States
$
28,966

 
$
25,078

United Kingdom
177

 
170

Total revenue
$
29,143

 
$
25,248

 
December 31,
2013
 
March 31,
2014
Long-lived tangible assets
 
 
 
United States
$
13,825

 
$
14,129

Netherlands
260

 
260

Total long-lived tangible assets
$
14,085

 
$
14,389

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
    
Contract Commitments —The Company is obligated to make payments under various contracts with vendors and other business partners, principally for revenue-share and content arrangements. Contract commitments as of March 31, 2014 are summarized as follows (in thousands):
Year ending December 31:
 
2014 (remaining nine months)
$
3,503

2015
1,630

2016
1,080

2017
360

2018

Due after 5 years

Total contract commitments
$
6,573


Litigation — From time to time, the Company is a party to legal actions. In the opinion of management, the outcome of these matters is not expected to have a material impact on the consolidated financial statements of the Company.
Equity
Equity
Equity
Common Stock — Effective on February 15, 2012, the Company’s board of directors and stockholders approved the Fifth Amended and Restated Certificate of Incorporation. The total number of common shares that the Company is authorized to issue is 100,000,000 with a par value of $0.01 per share.
Preferred Stock — Effective on February 15, 2012, the Company’s board of directors and stockholders approved the Fifth Amended and Restated Certificate of Incorporation. The total number of preferred shares that the Company is authorized to issue is 10,000,000 with a par value of $0.01 per share. None have been issued to date.
Stock Repurchases - Effective February 26, 2014 the Board of Directors approved a Stock Repurchase Program, which authorizes a repurchase of up to $5,000 worth of the Company's outstanding common stock. The Stock Repurchase Program has no expiration date, and may be suspended or discontinued at any time without notice. The Company repurchased all shares with cash resources.
The following table sets forth the shares of common stock repurchased through the program:
 
Three Months Ended
March 31,
 
2013
 
2014
Shares of common stock repurchased

 
22,000

Value of common stock repurchased (In thousands)
$

 
$
56

Stock-based Compensation
Stock-based Compensation
Stock-based Compensation
The Company recorded $562 and $681 of stock-based compensation expense for the three months ended March 31, 2013 and 2014, respectively. No income tax deduction is allowed for incentive stock options, or ISOs. Accordingly, no deferred income tax asset is recorded for the potential tax deduction related to these options. Expense related to stock option grants of non-qualified stock option ("NSOs") result in a temporary difference, which gives rise to a deferred tax asset.
Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands):
 
Three Months Ended
March 31,
 
2013
 
2014
Research and development
$
261

 
$
327

Sales and marketing
76

 
108

General and administrative
225

 
246

Total stock-based compensation expense
$
562

 
$
681


Stock Option Activity —A summary of the stock option activity for the three months ended March 31, 2014 is presented below:
 
Number of
Stock
Options
 
Weighted
Average
Exercise
Price
 
Aggregate
Intrinsic Value
(in thousands)
 
Weighted Average Remaining Contractual Term (in years)
Outstanding—January 1, 2014
5,770,168

 
$
3.85

 
 
 
 
Granted
127,000

 
2.51

 
 
 
 
Exercised
(101,501
)
 
0.25

 
 
 
 
Forfeited
(163,459
)
 
3.52

 
 
 
 
Outstanding—March 31, 2014
5,632,208

 
3.89

 
$
761

 
7.27
Vested and expected to vest—March 31, 2014
5,209,298

 
3.83

 
$
760

 
7.15
Vested and exercisable—March 31, 2014
2,812,810

 
3.46

 
$
754

 
5.86

Aggregate intrinsic value represents the difference between the Company’s closing stock price of its common stock and the exercise price of outstanding, in-the-money options. The Company’s closing stock price as reported on the NASDAQ as of March 31, 2014 was $2.47. The total intrinsic value of options exercised was approximately $225 for the three months ended March 31, 2014.
The weighted average fair value of options issued during the three months ended March 31, 2014 amounted to $1.41. The per-share fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model using the following assumptions:
Grant Date
Options
Granted
 
Weighted-
Average
Exercise Price
 
Expected
Life of
Options
(In years)
 
Risk-Free
Interest
Rate
 
Expected
Volatility
 
Expected
Dividend
Yield
February 12, 2014
102,500

 
$
2.49

 
6.25
 
2.23
%
 
58
%
 
%
March 19, 2014
24,500

 
$
2.57

 
6.25
 
2.21
%
 
58
%
 
%

As of March 31, 2014, the unrecognized compensation cost related to non-vested options granted, for which vesting is probable, under the plan was approximately $5,517. This cost is expected to be recognized over a weighted-average period of 2.5 years. The total fair value of shares vested was $550 for the three months ended March 31, 2014.

RSU Activity—A summary of RSU activity for the three months ended March 31, 2014, is as follows:
 
Number of
Shares
 
Weighted-Average
Grant Date Fair
Value
Unvested - January 1, 2014
45,000

 
$
5.46

Granted

 

Released
(3,125
)
 
5.82

Forfeited
(4,000
)
 
3.68

Unvested - March 31, 2014
37,875

 
$
5.62

Expected to vest—March 31, 2014
32,194

 
$
5.62


As of March 31, 2014, total unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs was approximately $181, which is expected to be recognized over the next 2.70 years.
Investment in Equity Interest
Investment in Equity Interest
Investment in Equity Interest
In March 2013, the Company entered into a Joint Venture Agreement, pursuant to which it owns 50% of the outstanding common stock and 100% of the preferred shares of Synacor China, Ltd., or the JV Company. In July 2013 the Company provided $400 in initial funding, then $526 in additional funding as of December 31, 2013 and $245 during the three months ended March 31, 2014. The Company has agreed to provide approximately $800 in additional funding to the JV Company over the remainder of the two year period following the initial funding. The JV Company will, through its wholly foreign-owned subsidiary in the People's Republic of China (the “PRC”), supply start experiences, authentication and aggregation solutions for the delivery of online content and services to customers in the PRC.
    
The investment in the JV Company is being accounted for using the equity method and is classified as an investment in equity interest on the Company’s condensed consolidated balance sheets. The Company records its share of the results of the JV Company within earnings in equity interest. Because the Company provided nearly all of the capital to form the JV Company, the Company has recorded 100% of the losses incurred by the JV Company within earnings in equity interest in the condensed consolidated statements of operations. Since acquiring its interest in the JV Company in 2013, the Company has recorded, in retained earnings, cumulative losses in equity interest of $807.
The following tables represents summarized financial information of the JV Company for the three months ended March 31, 2013 and 2014, and as of December 31, 2013 and March 31, 2014:
 
March 31,
2013
 
March 31,
2014
Revenue
$

 
$

Loss from operations

 
(246
)
Net Loss
$

 
$
(246
)

 
December 31,
2013
 
March 31,
2014
Total Assets
$
442

 
$
458

Total Liabilities
$
77

 
$
187

Net Income (Loss) Per Common Share Data
Net Income (Loss) Per Common Share Data
Net Income (Loss) Per Common Share Data
Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, and to a lesser extent, shares issuable upon the release of RSUs. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method.
The following table presents the calculation of basic and diluted net income (loss) per share for the three month periods ended March 31, 2013 and 2014 (in thousands, except share and per share amounts):
 
Three Months Ended,
March 31,
 
2013
 
2014
Basic net income (loss) per share:


 


  Numerator:


 


        Net income (loss)
$
27

 
$
(2,056
)
  Denominator:
 
 
 
        Weighted-average common shares outstanding
27,236,186

 
27,434,374

 
 
 
 
Basic net income (loss) per share
$
0.00

 
$
(0.07
)
 
 
 
 
Diluted net income (loss) per share:
 
 
 
  Numerator:
 
 
 
        Net income (loss)
$
27

 
$
(2,056
)
  Denominator:
 
 
 
        Number of shares used in basic calculation
27,236,186

 
27,434,374

        Add weighted-average effect of dilutive securities:
 
 
 
              Employee stock options and RSUs
997,111

 

  Number of shares used in diluted calculation
28,233,297

 
27,434,374

 
 
 
 
Diluted net income (loss) per share
$
0.00

 
$
(0.07
)

The following equivalent shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented:
 
Three Months Ended,
March 31,
  
2013
 
2014
Antidilutive equity awards:
 
 
 
Stock options and RSUs
1,502,575

 
5,670,083

The Company and Summary of Significant Accounting Policies (Policies)
Basis of Presentation — The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiary. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise have the power to control, are accounted for using the equity method and are included as investments in equity interest on the condensed consolidated balance sheets. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the interim unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position for the periods presented. These interim unaudited condensed consolidated financial statements are not necessarily indicative of the results expected for the full fiscal year or for any subsequent period and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the consolidated financial statements. Accordingly, actual results may differ from estimated amounts.
Concentrations of Risk — As of December 31, 2013 and March 31, 2014, and for the three months ended March 31, 2013 and 2014, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:
 
Accounts Receivable
 
December 31,
2013
 
March 31,
2014
Google
47
%
 
30
%
Display Advertising Partner (1)
11
%
 
N/A

Notes:
(1)
As of March 31, 2014, the accounts receivable of the Display Advertising Partner was less than 10%.

    
 
Revenue
 
Three Months Ended
March 31,
 
2013
2014
Google
54
%
51
%
Display Advertising Partner (1)
N/A

N/A

Notes:
(1)
For the three months ended March 31, 2013 and 2014, the revenue earned directly from the Display Advertising Partner was less than 10%.

For the three months ended March 31, 2013 and 2014, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue. The costs represent revenue share paid to customers for their supply of Internet traffic on the Company's start experiences:
 
 
Cost of Revenue
 
Three Months Ended
March 31,
 
2013
 
2014
Customer A
20
%
 
23
%
Customer B
14

 
15

Customer C
14

 
11

Customer D
11

 
10


The Company and Summary of Significant Accounting Policies (Tables)
Schedule of concentrations equal to or exceeding 10% of the Company's accounts receivable, revenue, and cost of revenue
For the three months ended March 31, 2013 and 2014, the following customers received revenue-share payments equal to or exceeding 10% of the Company’s cost of revenue. The costs represent revenue share paid to customers for their supply of Internet traffic on the Company's start experiences:
 
 
Cost of Revenue
 
Three Months Ended
March 31,
 
2013
 
2014
Customer A
20
%
 
23
%
Customer B
14

 
15

Customer C
14

 
11

Customer D
11

 
10


As of December 31, 2013 and March 31, 2014, and for the three months ended March 31, 2013 and 2014, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:
 
Accounts Receivable
 
December 31,
2013
 
March 31,
2014
Google
47
%
 
30
%
Display Advertising Partner (1)
11
%
 
N/A

Notes:
(1)
As of March 31, 2014, the accounts receivable of the Display Advertising Partner was less than 10%.

    
 
Revenue
 
Three Months Ended
March 31,
 
2013
2014
Google
54
%
51
%
Display Advertising Partner (1)
N/A

N/A

Notes:
(1)
For the three months ended March 31, 2013 and 2014, the revenue earned directly from the Display Advertising Partner was less than 10%.
Property and Equipment - Net (Tables)
Schedule of property and equipment
Property and equipment, net consisted of the following (in thousands):
 
December 31,
2013
 
March 31,
2014
Computer equipment (1)
$
19,361

 
$
19,526

Computer software
4,625

 
5,044

Furniture and fixtures
1,634

 
1,656

Leasehold improvements
1,044

 
1,044

Work in process (primarily software development costs)
3,893

 
4,646

Other
173

 
173

 
30,730

 
32,089

Less accumulated depreciation (2)
(16,645
)
 
(17,700
)
Total property and equipment—net
$
14,085

 
$
14,389

Notes:
(1)
Includes equipment under capital lease obligations of approximately $5,289 and $5,702 as of December 31, 2013 and March 31, 2014, respectively.

(2)
Includes $2,053 and $2,315 of accumulated depreciation of equipment under capital leases as of December 31, 2013 and March 31, 2014, respectively.
Accrued Expenses and Other Current Liabilities (Tables)
Schedule of accrued expenses and other current liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
 
December 31,
2013
 
March 31,
2014
Accrued compensation
$
2,787

 
$
2,196

Accrued content fees
580

 
1,111

Unearned revenue on contracts
247

 
235

Other
1,563

 
651

Total
$
5,177

 
$
4,193

Information About Segment and Geographic Areas (Tables)
Schedule of revenue and long-lived tangible assets by geographic area
The following table sets forth revenue and long-lived tangible assets by geographic area (in thousands):
 
Three Months Ended
March 31,
 
2013
 
2014
Revenue
 
 
 
United States
$
28,966

 
$
25,078

United Kingdom
177

 
170

Total revenue
$
29,143

 
$
25,248

 
December 31,
2013
 
March 31,
2014
Long-lived tangible assets
 
 
 
United States
$
13,825

 
$
14,129

Netherlands
260

 
260

Total long-lived tangible assets
$
14,085

 
$
14,389

Commitments and Contingencies (Tables)
Schedule of contract commitments
Contract commitments as of March 31, 2014 are summarized as follows (in thousands):
Year ending December 31:
 
2014 (remaining nine months)
$
3,503

2015
1,630

2016
1,080

2017
360

2018

Due after 5 years

Total contract commitments
$
6,573

Equity (Tables)
Schedule of stock repurchased
The following table sets forth the shares of common stock repurchased through the program:
 
Three Months Ended
March 31,
 
2013
 
2014
Shares of common stock repurchased

 
22,000

Value of common stock repurchased (In thousands)
$

 
$
56

Stock-based Compensation (Tables)
Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands):
 
Three Months Ended
March 31,
 
2013
 
2014
Research and development
$
261

 
$
327

Sales and marketing
76

 
108

General and administrative
225

 
246

Total stock-based compensation expense
$
562

 
$
681

A summary of the stock option activity for the three months ended March 31, 2014 is presented below:
 
Number of
Stock
Options
 
Weighted
Average
Exercise
Price
 
Aggregate
Intrinsic Value
(in thousands)
 
Weighted Average Remaining Contractual Term (in years)
Outstanding—January 1, 2014
5,770,168

 
$
3.85

 
 
 
 
Granted
127,000

 
2.51

 
 
 
 
Exercised
(101,501
)
 
0.25

 
 
 
 
Forfeited
(163,459
)
 
3.52

 
 
 
 
Outstanding—March 31, 2014
5,632,208

 
3.89

 
$
761

 
7.27
Vested and expected to vest—March 31, 2014
5,209,298

 
3.83

 
$
760

 
7.15
Vested and exercisable—March 31, 2014
2,812,810

 
3.46

 
$
754

 
5.86
The per-share fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model using the following assumptions:
Grant Date
Options
Granted
 
Weighted-
Average
Exercise Price
 
Expected
Life of
Options
(In years)
 
Risk-Free
Interest
Rate
 
Expected
Volatility
 
Expected
Dividend
Yield
February 12, 2014
102,500

 
$
2.49

 
6.25
 
2.23
%
 
58
%
 
%
March 19, 2014
24,500

 
$
2.57

 
6.25
 
2.21
%
 
58
%
 
%
A summary of RSU activity for the three months ended March 31, 2014, is as follows:
 
Number of
Shares
 
Weighted-Average
Grant Date Fair
Value
Unvested - January 1, 2014
45,000

 
$
5.46

Granted

 

Released
(3,125
)
 
5.82

Forfeited
(4,000
)
 
3.68

Unvested - March 31, 2014
37,875

 
$
5.62

Expected to vest—March 31, 2014
32,194

 
$
5.62

Investment in Equity Interest (Tables)
Summarized financial information
The following tables represents summarized financial information of the JV Company for the three months ended March 31, 2013 and 2014, and as of December 31, 2013 and March 31, 2014:
 
March 31,
2013
 
March 31,
2014
Revenue
$

 
$

Loss from operations

 
(246
)
Net Loss
$

 
$
(246
)

 
December 31,
2013
 
March 31,
2014
Total Assets
$
442

 
$
458

Total Liabilities
$
77

 
$
187

Net Income (Loss) Per Common Share Data (Tables)
The following table presents the calculation of basic and diluted net income (loss) per share for the three month periods ended March 31, 2013 and 2014 (in thousands, except share and per share amounts):
 
Three Months Ended,
March 31,
 
2013
 
2014
Basic net income (loss) per share:


 


  Numerator:


 


        Net income (loss)
$
27

 
$
(2,056
)
  Denominator:
 
 
 
        Weighted-average common shares outstanding
27,236,186

 
27,434,374

 
 
 
 
Basic net income (loss) per share
$
0.00

 
$
(0.07
)
 
 
 
 
Diluted net income (loss) per share:
 
 
 
  Numerator:
 
 
 
        Net income (loss)
$
27

 
$
(2,056
)
  Denominator:
 
 
 
        Number of shares used in basic calculation
27,236,186

 
27,434,374

        Add weighted-average effect of dilutive securities:
 
 
 
              Employee stock options and RSUs
997,111

 

  Number of shares used in diluted calculation
28,233,297

 
27,434,374

 
 
 
 
Diluted net income (loss) per share
$
0.00

 
$
(0.07
)
The following equivalent shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented:
 
Three Months Ended,
March 31,
  
2013
 
2014
Antidilutive equity awards:
 
 
 
Stock options and RSUs
1,502,575

 
5,670,083

The Company and Summary of Significant Accounting Policies - Concentrations of Risk (Details) (Customer Concentration Risk [Member])
3 Months Ended 12 Months Ended 3 Months Ended
Mar. 31, 2014
Accounts Receivable [Member]
Google [Member]
Dec. 31, 2013
Accounts Receivable [Member]
Google [Member]
Dec. 31, 2013
Accounts Receivable [Member]
Display Advertising Partner [Member]
Mar. 31, 2014
Revenue [Member]
Google [Member]
Mar. 31, 2013
Revenue [Member]
Google [Member]
Mar. 31, 2014
Cost of Revenue [Member]
Customer A [Member]
Mar. 31, 2013
Cost of Revenue [Member]
Customer A [Member]
Mar. 31, 2014
Cost of Revenue [Member]
Customer B [Member]
Mar. 31, 2013
Cost of Revenue [Member]
Customer B [Member]
Mar. 31, 2014
Cost of Revenue [Member]
Customer C [Member]
Mar. 31, 2013
Cost of Revenue [Member]
Customer C [Member]
Mar. 31, 2014
Cost of Revenue [Member]
Customer D [Member]
Mar. 31, 2013
Cost of Revenue [Member]
Customer D [Member]
Schedule of concentrations equal to or exceeding 10% of the Company's accounts receivable and revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration risk, percentage
30.00% 
47.00% 
11.00% 1
51.00% 
54.00% 
23.00% 
20.00% 
15.00% 
14.00% 
11.00% 
14.00% 
10.00% 
11.00% 
The Company and Summary of Significant Accounting Policies - Acquisition (Details) (USD $)
In Thousands, unless otherwise specified
1 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Apr. 30, 2013
Carbyn Inc [Member]
Jan. 31, 2012
Carbyn Inc [Member]
person
Nov. 30, 2013
Teknision, Inc [Member]
person
Business Acquisition [Line Items]
 
 
 
 
 
Aggregate purchase price
 
 
 
$ 1,100 
$ 1,005 
Cash paid for business acquisition
 
 
500 
600 
510 
Payment remaining
 
 
 
 
495 
Employees hired from acquiree
 
 
 
11 
Goodwill
$ 1,565 
$ 1,565 
 
$ 819 
$ 746 
Fair Value and Investments (Details) (USD $)
In Thousands, unless otherwise specified
1 Months Ended
Jul. 31, 2013
Mar. 31, 2014
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Payments to acquire investment
$ 1,000 
 
Estimated fair value of convertible promissory note
 
$ 1,000 
Property and Equipment - Net (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Schedule of property and equipment
 
 
Property and equipment-gross
$ 32,089 
$ 30,730 
Less accumulated depreciation
(17,700)1
(16,645)1
Total property and equipment-net
14,389 
14,085 
Computer equipment [Member]
 
 
Schedule of property and equipment
 
 
Property and equipment-gross
19,526 2
19,361 2
Computer software [Member]
 
 
Schedule of property and equipment
 
 
Property and equipment-gross
5,044 
4,625 
Furniture and fixtures [Member]
 
 
Schedule of property and equipment
 
 
Property and equipment-gross
1,656 
1,634 
Leasehold improvements [Member]
 
 
Schedule of property and equipment
 
 
Property and equipment-gross
1,044 
1,044 
Work in process [Member]
 
 
Schedule of property and equipment
 
 
Property and equipment-gross
4,646 
3,893 
Other [Member]
 
 
Schedule of property and equipment
 
 
Property and equipment-gross
$ 173 
$ 173 
Property and Equipment - Net - Additional Disclosures (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Property and Equipment - Net (Textual) [Abstract]
 
 
Property and equipment-gross
$ 32,089 
$ 30,730 
Accumulated depreciation of equipment under capital leases
17,700 1
16,645 1
Capital lease obligations [Member]
 
 
Property and Equipment - Net (Textual) [Abstract]
 
 
Accumulated depreciation of equipment under capital leases
2,315 
2,053 
Computer equipment [Member]
 
 
Property and Equipment - Net (Textual) [Abstract]
 
 
Property and equipment-gross
19,526 2
19,361 2
Computer equipment [Member] |
Capital lease obligations [Member]
 
 
Property and Equipment - Net (Textual) [Abstract]
 
 
Property and equipment-gross
$ 5,702 
$ 5,289 
Accrued Expenses and Other Current Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Schedule of accrued expenses and other current liabilities
 
 
Accrued compensation
$ 2,196 
$ 2,787 
Accrued content fees
1,111 
580 
Unearned revenue on contracts
235 
247 
Other
651 
1,563 
Total
$ 4,193 
$ 5,177 
Information About Segment and Geographic Areas (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Schedule of revenue and long-lived tangible assets by geographic area
 
 
 
Revenue
$ 25,248 
$ 29,143 
 
Long-lived tangible assets
14,389 
 
14,085 
United States
 
 
 
Schedule of revenue and long-lived tangible assets by geographic area
 
 
 
Revenue
25,078 
28,966 
 
Long-lived tangible assets
14,129 
 
13,825 
United Kingdom
 
 
 
Schedule of revenue and long-lived tangible assets by geographic area
 
 
 
Revenue
170 
177 
 
Netherlands [Member]
 
 
 
Schedule of revenue and long-lived tangible assets by geographic area
 
 
 
Long-lived tangible assets
$ 260 
 
$ 260 
Commitments and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Schedule of contract commitments
 
2014 (remaining nine months)
$ 3,503 
2015
1,630 
2016
1,080 
2017
360 
2018
Due after 5 years
Total contract commitments
$ 6,573 
Equity (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended
Feb. 26, 2014
Mar. 31, 2014
Dec. 31, 2013
Feb. 15, 2012
Equity [Abstract]
 
 
 
 
Common stock, shares authorized
 
100,000,000 
100,000,000 
100,000,000 
Common stock, par value
 
$ 0.01 
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
 
10,000,000 
10,000,000 
10,000,000 
Preferred stock, par value
 
$ 0.01 
$ 0.01 
$ 0.01 
Preferred stock, shares issued
 
 
Shares authorized to be repurchased, amount
$ 5,000 
 
 
 
Equity - Shares Repurchased (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Equity [Abstract]
 
 
Shares of common stock repurchased
22,000 
Value of common stock repurchased
$ 56 
$ 0 
Stock-based Compensation - Allocation of Stock-based Compensation Expense (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Schedule of total stock-based compensation expense
 
 
Total stock-based compensation expense
$ 681 
$ 562 
Research and development [Member]
 
 
Schedule of total stock-based compensation expense
 
 
Total stock-based compensation expense
327 
261 
Sales and marketing [Member]
 
 
Schedule of total stock-based compensation expense
 
 
Total stock-based compensation expense
108 
76 
General and administrative [Member]
 
 
Schedule of total stock-based compensation expense
 
 
Total stock-based compensation expense
$ 246 
$ 225 
Stock-based Compensation - Stock Option Activity (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Summary of the status of options granted under all options
 
Outstanding number of stock options beginning balance
5,770,168 
Number of stock options granted
127,000 
Number of stock options exercised
(101,501)
Number of stock options forfeited
(163,459)
Outstanding number of stock options ending balance
5,632,208 
Outstanding number of stock options vested and expected to vest
5,209,298 
Outstanding number of stock options vested and exercisable
2,812,810 
Weighted Average Exercise Price
 
Outstanding, Weighted Average Exercise Price, Beginning
$ 3.85 
Weighted Average Exercise Price Granted
$ 2.51 
Weighted Average Exercise Price Exercised
$ 0.25 
Weighted Average Exercise Price Forfeited
$ 3.52 
Outstanding, Weighted Average Exercise Price, Ending Balance
$ 3.89 
Vested and expected to vest, Weighted Average Exercise Price Ending Balance
$ 3.83 
Vested and exercisable, Weighted Average Exercise Price Ending Balance
$ 3.46 
Aggregate intrinsic value, outstanding
$ 761 
Aggregate intrinsic value, vested and expected to vest
760 
Aggregate intrinsic value, vested and exercisable
$ 754 
Weighted Average Remaining Contractual Term (in years), outstanding
7 years 3 months 8 days 
Weighted Average Remaining Contractual Term (in years), vested and expected to vest
7 years 1 month 25 days 
Weighted Average Remaining Contractual Term (in years), vested and exercisable
5 years 10 months 8 days 
Stock-based Compensation - Weighted Average Assumptions (Details) (Stock options [Member], USD $)
3 Months Ended
Mar. 31, 2014
February 12, 2014 [Member]
 
Summary of the option grants and assumptions used in the Black-Scholes option pricing model to value the options
 
Grant Date
Feb. 12, 2014 
Options Granted
102,500 
Weighted-Average Fair Value
$ 2.49 
Expected Life of Options (In years)
6 years 3 months 
Risk-Free Interest Rate
2.23% 
Expected Volatility
58.00% 
Expected Dividend Yield
0.00% 
March 19, 2014 [Member]
 
Summary of the option grants and assumptions used in the Black-Scholes option pricing model to value the options
 
Grant Date
Mar. 19, 2014 
Options Granted
24,500 
Weighted-Average Fair Value
$ 2.57 
Expected Life of Options (In years)
6 years 3 months 
Risk-Free Interest Rate
2.21% 
Expected Volatility
58.00% 
Expected Dividend Yield
0.00% 
Stock-based Compensation - RSU Activity (Details) (Restricted Stock Units (RSUs) [Member], USD $)
3 Months Ended
Mar. 31, 2014
Restricted Stock Units (RSUs) [Member]
 
Number of Shares
 
Unvested - January 1, 2014
45,000 
Granted
Released
(3,125)
Forfeited
(4,000)
Unvested - March 31, 2014
37,875 
Expected to vest—March 31, 2014
32,194 
Weighted-Average Grant Date Fair Value
 
Unvested - January 1, 2014
$ 5.46 
Granted
$ 0.00 
Released
$ 5.82 
Forfeited
$ 3.68 
Unvested - March 31, 2014
$ 5.62 
Expected to vest—March 31, 2014
$ 5.62 
Stock-based Compensation - Additional Disclosures (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock-based compensation expense
$ 681,000 
$ 562,000 
Tax deduction allowed for incentive stock options
 
Deferred income tax asset for the expense related to options
 
Closing stock price as reported on the NASDAQ
$ 2.47 
 
Total intrinsic value of options exercised
225,000 
 
Weighted average fair value of options issued
$ 1.41 
 
Unrecognized compensation cost related to non-vested options granted
5,517,000 
 
Total fair value of shares vested
550,000 
 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected weighted-average period to recognize unrecognized compensation cost
2 years 6 months 13 days 
 
Restricted Stock Units (RSUs) [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unrecognized compensation cost related to RSUs
$ 0 
 
Expected weighted-average period to recognize unrecognized compensation cost
2 years 8 months 13 days 
 
Investment in Equity Interest (Details) (Synacor China, Ltd [Member], USD $)
1 Months Ended 3 Months Ended 5 Months Ended
Jul. 31, 2013
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Common Stock [Member]
Mar. 31, 2013
Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
Ownership percentage
 
 
 
50.00% 
100.00% 
Initial funding
$ 400,000 
 
 
 
 
Additional funding
 
245 
526,000 
 
 
Additional funding over the remainder of the two year period following the initial funding
800,000 
 
 
 
 
Term of funding (in years)
2 years 
 
 
 
 
Cumulative losses in equity interest
 
$ 807,000 
 
 
 
Investment in Equity Interest - Summarized Financial Information (Details) (Synacor China, Ltd [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Synacor China, Ltd [Member]
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Revenue
$ 0 
$ 0 
 
Loss from operations
(246)
 
Net Loss
(246)
 
Total Assets
458 
 
442 
Total Liabilities
$ 187 
 
$ 77 
Net Income (Loss) Per Common Share Data - Calculation of Basic and Diluted Net Income Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Numerator:
 
 
Net income (loss)
$ (2,056)
$ 27 
Denominator:
 
 
Weighted-average common shares outstanding
27,434,374 
27,236,186 
Basic net income (loss) per share
$ (0.07)
$ 0.00 
Numerator:
 
 
Net income (loss)
$ (2,056)
$ 27 
Denominator:
 
 
Weighted-average common shares outstanding
27,434,374 
27,236,186 
Add weighted-average effect of dilutive securities
 
 
Employee stock options and RSUs
997,111 
Number of shares used in diluted calculation
27,434,374 
28,233,297 
Diluted net income (loss) per share
$ (0.07)
$ 0.00 
Net Income (Loss) Per Common Share Data - Antidilutive Securities Excluded (Details) (Stock Options and RSUs [Member])
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Stock Options and RSUs [Member]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive equity awards
5,670,083 
1,502,575