SYNACOR, INC., 10-Q filed on 8/14/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Jul. 31, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
SYNC 
 
Entity Registrant Name
Synacor, Inc. 
 
Entity Central Index Key
0001408278 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
27,510,828 
Condensed Consolidated Balance Sheets - Unaudited (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
CURRENT ASSETS:
 
 
Cash and cash equivalents
$ 27,063 
$ 25,600 
Accounts receivable, net of allowance of $383 and $388
17,044 
20,479 
Prepaid expenses and other current assets
1,961 
2,292 
Total current assets
46,068 
48,371 
PROPERTY AND EQUIPMENT, NET
14,083 
15,128 
OTHER LONG-TERM ASSETS
51 
101 
GOODWILL
1,565 
1,565 
INVESTMENTS
1,016 
1,073 
TOTAL ASSETS
62,783 
66,238 
CURRENT LIABILITIES:
 
 
Accounts payable
10,362 
12,545 
Accrued expenses and other current liabilities
7,459 
8,403 
Current portion of capital lease obligations
1,319 
1,150 
Total current liabilities
19,140 
22,098 
LONG-TERM PORTION OF CAPITAL LEASE OBLIGATION
1,180 
1,383 
OTHER LONG-TERM LIABILITIES
566 
275 
TOTAL LIABILITIES
20,886 
23,756 
Commitments and Contingencies (Note 6)
   
   
STOCKHOLDERS' EQUITY:
 
 
Common stock, $0.01 par value - 100,000,000 authorized, 27,944,853 issued and 27,391,709 shares outstanding at December 31, 2014 and 28,118,593 issued and 27,510,861 outstanding at June 30, 2015
280 
279 
Preferred stock, $0.01 par value-10,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 and June 30, 2015
   
   
Treasury stock, at cost, 553,144 shares at December 31, 2014 and 607,732 shares at June 30, 2015
(1,265)
(1,142)
Additional paid-in capital
107,660 
105,961 
Accumulated deficit
(64,792)
(62,636)
Accumulated other comprehensive income
14 
20 
Total stockholders' equity
41,897 
42,482 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 62,783 
$ 66,238 
Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 383 
$ 388 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
28,118,593 
27,944,853 
Common stock, shares outstanding
27,510,861 
27,391,709 
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
607,732 
553,144 
Condensed Consolidated Statements of Operations - Unaudited (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement [Abstract]
 
 
 
 
REVENUE
$ 24,716 
$ 24,191 
$ 51,446 
$ 49,439 
COSTS AND OPERATING EXPENSES:
 
 
 
 
Cost of revenue (exclusive of depreciation shown separately below)
12,504 
13,146 
26,908 
27,022 
Technology & Development (exclusive of depreciation shown separately below)
4,561 
7,120 
9,427 
14,612 
Sales and marketing
3,639 
2,457 
7,201 
4,594 
General and administrative (exclusive of depreciation shown separately below)
3,351 
3,499 
6,724 
6,598 
Depreciation
1,660 
1,117 
3,156 
2,175 
Gain on sale of domain
 
(1,000)
 
(1,000)
Total costs and operating expenses
25,715 
26,339 
53,416 
54,001 
LOSS FROM OPERATIONS
(999)
(2,148)
(1,970)
(4,562)
OTHER INCOME
17 
14 
INTEREST EXPENSE
(59)
(23)
(109)
(111)
LOSS BEFORE INCOME TAXES AND EQUITY INTEREST
(1,041)
(2,165)
(2,078)
(4,659)
(BENEFIT) PROVISION FOR INCOME TAXES
16 
(641)
21 
(1,325)
LOSS IN EQUITY INTEREST
(25)
(344)
(57)
(590)
NET LOSS
$ (1,082)
$ (1,868)
$ (2,156)
$ (3,924)
NET LOSS PER SHARE:
 
 
 
 
Basic
$ (0.04)
$ (0.07)
$ (0.08)
$ (0.14)
Diluted
$ (0.04)
$ (0.07)
$ (0.08)
$ (0.14)
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET LOSS PER SHARE:
 
 
 
 
Basic
27,534,119 
27,360,588 
27,475,481 
27,397,695 
Diluted
27,534,119 
27,360,588 
27,475,481 
27,397,695 
Condensed Consolidated Statements of Comprehensive Loss - Unaudited (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net loss
$ (1,082)
$ (1,868)
$ (2,156)
$ (3,924)
Other comprehensive income:
 
 
 
 
Change in foreign currency translation adjustment
(3)
(4)
(6)
Comprehensive loss
$ (1,085)
$ (1,872)
$ (2,162)
$ (3,915)
Condensed Consolidated Statements of Cash Flows - Unaudited (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
Net loss
$ (2,156)
$ (3,924)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
Depreciation
3,156 
2,175 
Stock-based compensation expense
1,541 
1,528 
Provision for deferred income taxes
 
(1,351)
Loss in equity interest
57 
590 
Gain on sale of domain
 
(1,000)
Change in assets and liabilities net of effect of acquisition:
 
 
Accounts receivable, net
3,435 
(2,200)
Prepaid expenses and other current assets
331 
(103)
Other long-term assets
50 
166 
Accounts payable
(2,133)
(2,179)
Accrued expenses and other current liabilities
(443)
703 
Other long-term liabilities
291 
(178)
Net cash (used in) provided by operating activities
4,129 
(5,773)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
Purchases of property and equipment
(1,561)
(2,796)
Investment in equity interest
 
(545)
Net cash used in investing activities
(1,561)
(3,341)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
Repayments on capital lease obligations
(672)
(1,117)
Proceeds from exercise of common stock options
70 
59 
Purchase of treasury stock
 
(562)
Deferred acquisition payment
(495)
 
Net cash used in financing activities
(1,097)
(1,620)
Effect of exchange rate changes on cash and cash equivalents
(8)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
1,463 
(10,733)
CASH AND CASH EQUIVALENTS - Beginning of Period
25,600 
36,397 
CASH AND CASH EQUIVALENTS - End of Period
27,063 
25,664 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 
 
Cash paid for interest
139 
111 
Cash paid for income taxes
31 
 
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS:
 
 
Property, equipment and service contracts financed under capital lease obligations
637 
1,074 
Accrued property and equipment expenditures
61 
40 
Stock-based compensation capitalized to property and equipment
89 
 
Treasury stock received to satisfy minimum tax withholding liabilities
$ 123 
$ 6 
The Company and Summary of Significant Accounting Policies
The Company and Summary of Significant Accounting Policies

1. The Company and Summary of Significant Accounting Policies

Synacor, Inc., together with its consolidated subsidiaries, Synacor Canada, Inc. and NTV Internet Holdings, LLC (collectively, the “Company” or “Synacor”), is the trusted technology development, multiplatform services and revenue partner for video, Internet and communications providers, and device manufacturers. Synacor delivers modern, multiscreen experiences and advertising to consumers that require scale, actionable data and sophisticated implementation.

Basis of Presentation — The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. 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, 2014 (as amended).

Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts.

Concentrations of Risk — As of December 31, 2014 and June 30, 2015, and for the three and six months ended June 30, 2014 and 2015, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:

 

     Accounts Receivable  
     December 31,
2014
    June 30,
2015
 

Google

     23     15

Digital Advertising Partner

     11     10

Portal Customer (1)

     12     N/A   

 

(1) As of June 30, 2015, accounts receivable for Portal Customer was less than 10%.

 

     Revenue  
     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  

Google

     46     30     49     33

For the three months ended June 30, 2014 and 2015, 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
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  

Customer A

     23     29     23     27

Customer B (1)

     N/A        10        12        10   

Customer C

     10        11        11        11   

Customer D (2)

     10        N/A        10        N/A   

Notes:

(1) For the three months ended June 30, 2014, the cost of revenue-share payments received by Customer B was less than 10%
(2) For the three and six months ended June 30, 2015, the cost of revenue-share payments received by Customer D was less than 10%

Rights Plan — On July 14, 2014 the board of directors declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of the Company’s common stock and adopted a stockholder rights plan (the “Rights Plan”). The Rights were issued July 14, 2014 to the stockholders of record at the close of business on that date. Each Right allows its holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock (a “ Series A Junior Preferred Share”) for $10.00 per share (the “Exercise Price”), if the Rights become exercisable. This portion of a Series A Junior Preferred Share will give the stockholder approximately the same dividend, voting, and liquidation rights as would one share of common stock. Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights. On July 14, 2014, in conjunction with the adoption of the Rights Plan, the Company designated 2,000,000 shares of its Preferred Stock as Series A Junior Participating Preferred Stock.

The Rights will not be exercisable until 10 days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 10% or more of the Company’s outstanding common stock (the “Distribution Date”) unless the Rights Plan is amended by the board of directors to avoid such outcome. If a person or group becomes an Acquiring Person, each Right will entitle its holder (other than such Acquiring Person) to purchase for $10.00 per share, a number of shares of the Company’s common stock having a market value of twice such price based on the market price of the common stock prior to such acquisition. Additionally, if the Company is acquired in a merger or similar transaction after the Distribution Date, each Right will entitle its holder (other than such Acquiring Person) to purchase for $10.00 per share, a number of shares of the acquiring corporation with a market value of $20.00 per share based on the market price of the acquiring corporation’s stock, prior to such merger. In addition, at any time after a person or group becomes an Acquiring Person, but before such Acquiring Person or group owns 50% or more of the Company’s common stock, the board of directors may exchange one share of the Company’s common stock for each outstanding Right (other than Rights owned by such Acquiring Person, which would have become void). An Acquiring Person will not be entitled to exercise the Rights.

On April 20, 2015, The Company’s stockholders ratified the Rights Plan. It will expire on July 14, 2017.

Investments and Fair Value Measurements
Investments and Fair Value Measurements

2. Investments and Fair Value Measurements

In July 2013, the Company made a $1.0 million 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). In March 2015, the note was converted into preferred stock of B&FF. 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 in investments.

The provisions of the FASB ASC 820, Fair Value Measurements and Disclosures , establish a framework for measuring the fair value in accordance with U.S. GAAP 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.

Property and Equipment-Net
Property and Equipment-Net

3. Property and Equipment—Net

Property and equipment, net consisted of the following:

 

     December 31,
2014
     June 30,
2015
 
     (in thousands)  

Computer equipment (1)

   $ 21,194       $ 21,858   

Computer software

     10,741         12,536   

Furniture and fixtures

     1,847         1,838   

Leasehold improvements

     1,389         1,369   

Work in process (primarily software development costs)

     1,203         635   

Other

     173         178   
  

 

 

    

 

 

 
     36,547         38,414   

Less accumulated depreciation (2)

     (21,419      (24,331
  

 

 

    

 

 

 

Total property and equipment—net

   $ 15,128       $ 14,083   
  

 

 

    

 

 

 

Notes:

(1) Includes equipment under capital lease obligations of $4.8 million and $3.3 million as of December 31, 2014 and June 30, 2015, respectively.
(2) Includes $2.7 million and $1.2 million of accumulated depreciation of equipment under capital leases as of December 31, 2014 and June 30, 2015, respectively.
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities

4. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

 

     December 31,
2014
     June 30,
2015
 
     (in thousands)  

Accrued compensation

   $ 4,066       $ 3,519   

Accrued content fees

     1,745         2,204   

Accrued business acquisition consideration

     495         —     

Unearned revenue on contracts

     642         611   

Other

     1,455         1,125   
  

 

 

    

 

 

 

Total

   $ 8,403       $ 7,459   
  

 

 

    

 

 

 
Information About Segment and Geographic Areas
Information About Segment and Geographic Areas

5. 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:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  
     (in thousands)  

Revenue

           

United States

   $ 24,026       $ 24,537       $ 49,104       $ 51,067   

International

     165         179         335         379   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 24,191       $ 24,716       $ 49,439       $ 51,446   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31,
2014
     June 30,
2015
 
     (in thousands)  

Long-lived tangible assets

     

United States

   $ 14,573       $ 13,299   

Canada

     502         774   

Europe

     53         10   
  

 

 

    

 

 

 

Total long-lived tangible assets

   $ 15,128       $ 14,083   
  

 

 

    

 

 

 
Commitments and Contingencies
Commitments and Contingencies

6. 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 June 30, 2015 are summarized as follows:

 

Year ending December 31:    (in thousands)  

2015 (remaining six months)

   $ 2,564   

2016

     6,700   

2017

     4,581   

2018

     3,018   
  

 

 

 

Total contract commitments

   $ 16,863   
  

 

 

 

 

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

7. 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, 2,000,000 of which have been designated as Series A Junior Participating Preferred Stock pursuant to the Rights Plan. None have been issued to date.

Stock Repurchases — In February 2014 the board of directors approved a Stock Repurchase Program, which authorizes a repurchase of up to $5.0 million 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 reserves.

The following table sets forth the shares of common stock repurchased through the program:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  

Shares of common stock repurchased

     207,050         —           229,050         —     

Value of common stock repurchased (in thousands)

   $ 507       $ —         $ 562       $ —     

Withhold to Cover — During the six months ended June 30, 2015, certain employees, in lieu of paying withholding taxes on the vesting of certain shares of restricted stock awards, authorized the withholding of 54,588 shares of the Company’s common stock to satisfy their minimum statutory tax withholding requirements related to such vesting. These shares were recorded as treasury stock using the cost method at the per share closing price on the date of vesting. The number of shares of the Company’s common stock withheld to cover minimum statutory tax withholding requirements during the six months ended June 30, 2014 was 2,613.

Stock-based Compensation
Stock-based Compensation

8. Stock-based Compensation

The fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model, and stock-based compensation is recorded over the requisite service period. No income tax deduction is allowed for incentive stock options (“ISOs”). Accordingly, no deferred income tax asset is recorded for the potential tax deduction related to these options. Expense related to stock option grants of non-qualified stock options (“NSOs”) 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:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  
     (in thousands)  

Technology and development

   $ 375       $ 253       $ 702       $ 470   

Sales and marketing

     125         244         233         485   

General and administrative

     347         303         593         586   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation expense

     847         800         1,528         1,541   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stock Option Activity — A summary of the stock option activity for the six months ended June 30, 2015 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, 2015

     6,754,082       $ 2.83         

Granted

     1,424,500       $ 2.19         

Exercised

     (36,135    $ 1.94         

Forfeited

     (472,000    $ 2.46         
  

 

 

          

Outstanding—June 30, 2015

     7,670,447       $ 2.74       $ 180         7.37   
  

 

 

          

Vested and expected to vest—June 30, 2015

     7,223,333       $ 2.77       $ 180         7.25   
  

 

 

          

Vested and exercisable—June 30, 2015

     3,170,259       $ 3.20       $ 179         4.98   
  

 

 

          

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 June 30, 2015 was $1.61 per share. The total intrinsic value of options exercised for the six months ended June 30, 2015 was minor. The weighted average fair value of options issued during the six months ended June 30, 2015 amounted to $1.20 per option share.

As of June 30, 2015, the unrecognized compensation cost related to non-vested options granted, for which vesting is probable, under the plan was approximately $5.8 million. This cost is expected to be recognized over a weighted-average period of 2.8 years. The total fair value of shares vested was $0.6 million for the six months ended June 30, 2015.

Net Income (Loss) Per Common Share Data
Net Income (Loss) Per Common Share Data

9. Net Income (Loss) Per Common Share Data

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, and to a lesser extent, shares issuable upon the release of RSUs. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method.

The following table presents the calculation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and 2015:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  
     (in thousands, expect share and per share data)  

Basic net loss per share:

        

Numerator:

        

Net loss

   $ (1,868   $ (1,082   $ (3,924   $ (2,156
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted-average common shares outstanding

     27,360,588        27,534,119        27,397,695        27,475,481   

Basic net loss per share

   $ (0.07   $ (0.04   $ (0.14   $ (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net loss per share:

        

Numerator:

        

Net loss

   $ (1,868   $ (1,082   $ (3,924   $ (2,156
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Number of shares used in basic calculation

     27,360,588        27,534,119        27,397,695        27,475,481   

Add weighted-average effect of dilutive securities:

        

None

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Number of shares used in diluted calculation

     27,360,588        27,534,119        27,397,695        27,475,481   

Diluted net loss per share

   $ (0.07   $ (0.04   $ (0.14   $ (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

The following equivalent shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  
     (in thousands)  

Antidilutive equity awards:

           

Stock options and RSUs

     5,672,042         8,278,318         5,672,042         8,278,318   
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 subsidiaries. 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, 2014 (as amended).

Accounting Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts.

Concentrations of Risk — As of December 31, 2014 and June 30, 2015, and for the three and six months ended June 30, 2014 and 2015, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:

 

     Accounts Receivable  
     December 31,
2014
    June 30,
2015
 

Google

     23     15

Digital Advertising Partner

     11     10

Portal Customer (1)

     12     N/A   

 

(1) As of June 30, 2015, accounts receivable for Portal Customer was less than 10%.

 

     Revenue  
     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  

Google

     46     30     49     33

For the three months ended June 30, 2014 and 2015, 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
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  

Customer A

     23     29     23     27

Customer B (1)

     N/A        10        12        10   

Customer C

     10        11        11        11   

Customer D (2)

     10        N/A        10        N/A   

Notes:

(1) For the three months ended June 30, 2014, the cost of revenue-share payments received by Customer B was less than 10%
(2) For the three and six months ended June 30, 2015, the cost of revenue-share payments received by Customer D was less than 10%
The Company and Summary of Significant Accounting Policies (Tables)
Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue

As of December 31, 2014 and June 30, 2015, and for the three and six months ended June 30, 2014 and 2015, the Company had concentrations equal to or exceeding 10% of the Company’s accounts receivable and revenue as follows:

 

     Accounts Receivable  
     December 31,
2014
    June 30,
2015
 

Google

     23     15

Digital Advertising Partner

     11     10

Portal Customer (1)

     12     N/A   

 

(1) As of June 30, 2015, accounts receivable for Portal Customer was less than 10%.

 

     Revenue  
     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  

Google

     46     30     49     33

For the three months ended June 30, 2014 and 2015, 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
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  

Customer A

     23     29     23     27

Customer B (1)

     N/A        10        12        10   

Customer C

     10        11        11        11   

Customer D (2)

     10        N/A        10        N/A   

Notes:

(1) For the three months ended June 30, 2014, the cost of revenue-share payments received by Customer B was less than 10%
(2) For the three and six months ended June 30, 2015, the cost of revenue-share payments received by Customer D was less than 10%
Property and Equipment-Net (Tables)
Schedule of Property and Equipment

Property and equipment, net consisted of the following:

 

     December 31,
2014
     June 30,
2015
 
     (in thousands)  

Computer equipment (1)

   $ 21,194       $ 21,858   

Computer software

     10,741         12,536   

Furniture and fixtures

     1,847         1,838   

Leasehold improvements

     1,389         1,369   

Work in process (primarily software development costs)

     1,203         635   

Other

     173         178   
  

 

 

    

 

 

 
     36,547         38,414   

Less accumulated depreciation (2)

     (21,419      (24,331
  

 

 

    

 

 

 

Total property and equipment—net

   $ 15,128       $ 14,083   
  

 

 

    

 

 

 

Notes:

(1) Includes equipment under capital lease obligations of $4.8 million and $3.3 million as of December 31, 2014 and June 30, 2015, respectively.
(2) Includes $2.7 million and $1.2 million of accumulated depreciation of equipment under capital leases as of December 31, 2014 and June 30, 2015, 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:

 

     December 31,
2014
     June 30,
2015
 
     (in thousands)  

Accrued compensation

   $ 4,066       $ 3,519   

Accrued content fees

     1,745         2,204   

Accrued business acquisition consideration

     495         —     

Unearned revenue on contracts

     642         611   

Other

     1,455         1,125   
  

 

 

    

 

 

 

Total

   $ 8,403       $ 7,459   
  

 

 

    

 

 

 
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:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  
     (in thousands)  

Revenue

           

United States

   $ 24,026       $ 24,537       $ 49,104       $ 51,067   

International

     165         179         335         379   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 24,191       $ 24,716       $ 49,439       $ 51,446   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31,
2014
     June 30,
2015
 
     (in thousands)  

Long-lived tangible assets

     

United States

   $ 14,573       $ 13,299   

Canada

     502         774   

Europe

     53         10   
  

 

 

    

 

 

 

Total long-lived tangible assets

   $ 15,128       $ 14,083   
  

 

 

    

 

 

 
Commitments and Contingencies (Tables)
Schedule of Contract Commitments

Contract commitments as of June 30, 2015 are summarized as follows:

 

Year ending December 31:    (in thousands)  

2015 (remaining six months)

   $ 2,564   

2016

     6,700   

2017

     4,581   

2018

     3,018   
  

 

 

 

Total contract commitments

   $ 16,863   
  

 

 

 

Equity (Tables)
Schedule of Stock Repurchased

The following table sets forth the shares of common stock repurchased through the program:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  

Shares of common stock repurchased

     207,050         —           229,050         —     

Value of common stock repurchased (in thousands)

   $ 507       $ —         $ 562       $ —     
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:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  
     (in thousands)  

Technology and development

   $ 375       $ 253       $ 702       $ 470   

Sales and marketing

     125         244         233         485   

General and administrative

     347         303         593         586   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation expense

     847         800         1,528         1,541   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stock Option Activity — A summary of the stock option activity for the six months ended June 30, 2015 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, 2015

     6,754,082       $ 2.83         

Granted

     1,424,500       $ 2.19         

Exercised

     (36,135    $ 1.94         

Forfeited

     (472,000    $ 2.46         
  

 

 

          

Outstanding—June 30, 2015

     7,670,447       $ 2.74       $ 180         7.37   
  

 

 

          

Vested and expected to vest—June 30, 2015

     7,223,333       $ 2.77       $ 180         7.25   
  

 

 

          

Vested and exercisable—June 30, 2015

     3,170,259       $ 3.20       $ 179         4.98   
  

 

 

          

Net Income (Loss) Per Common Share Data (Tables)

The following table presents the calculation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and 2015:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2015     2014     2015  
     (in thousands, expect share and per share data)  

Basic net loss per share:

        

Numerator:

        

Net loss

   $ (1,868   $ (1,082   $ (3,924   $ (2,156
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted-average common shares outstanding

     27,360,588        27,534,119        27,397,695        27,475,481   

Basic net loss per share

   $ (0.07   $ (0.04   $ (0.14   $ (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net loss per share:

        

Numerator:

        

Net loss

   $ (1,868   $ (1,082   $ (3,924   $ (2,156
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Number of shares used in basic calculation

     27,360,588        27,534,119        27,397,695        27,475,481   

Add weighted-average effect of dilutive securities:

        

None

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Number of shares used in diluted calculation

     27,360,588        27,534,119        27,397,695        27,475,481   

Diluted net loss per share

   $ (0.07   $ (0.04   $ (0.14   $ (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

The following equivalent shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2015      2014      2015  
     (in thousands)  

Antidilutive equity awards:

           

Stock options and RSUs

     5,672,042         8,278,318         5,672,042         8,278,318
The Company and Summary of Significant Accounting Policies - Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue (Detail) (Customer Concentration Risk [Member])
12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2014
Accounts Receivable [Member]
Portal Customer [Member]
Jun. 30, 2015
Accounts Receivable [Member]
Google [Member]
Dec. 31, 2014
Accounts Receivable [Member]
Google [Member]
Jun. 30, 2015
Accounts Receivable [Member]
Display Advertising Partner [Member]
Dec. 31, 2014
Accounts Receivable [Member]
Display Advertising Partner [Member]
Jun. 30, 2015
Revenue [Member]
Google [Member]
Jun. 30, 2014
Revenue [Member]
Google [Member]
Jun. 30, 2015
Revenue [Member]
Google [Member]
Jun. 30, 2014
Revenue [Member]
Google [Member]
Jun. 30, 2015
Cost of Sales [Member]
Customer B [Member]
Jun. 30, 2015
Cost of Sales [Member]
Customer B [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer B [Member]
Jun. 30, 2015
Cost of Sales [Member]
Customer A [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer A [Member]
Jun. 30, 2015
Cost of Sales [Member]
Customer A [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer A [Member]
Jun. 30, 2015
Cost of Sales [Member]
Customer C [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer C [Member]
Jun. 30, 2015
Cost of Sales [Member]
Customer C [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer C [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer D [Member]
Jun. 30, 2014
Cost of Sales [Member]
Customer D [Member]
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration risk, percentage
12.00% 
15.00% 
23.00% 
10.00% 
11.00% 
30.00% 
46.00% 
33.00% 
49.00% 
10.00% 
10.00% 
12.00% 
29.00% 
23.00% 
27.00% 
23.00% 
11.00% 
10.00% 
11.00% 
11.00% 
10.00% 
10.00% 
The Company and Summary of Significant Accounting Policies - Schedule of Concentrations Equal to or Exceeding 10% of Company's Accounts Receivable, Revenue, and Cost of Revenue (Parenthetical) (Detail) (Customer Concentration Risk [Member])
12 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2014
Portal Customer [Member]
Accounts Receivable [Member]
Jun. 30, 2015
Portal Customer [Member]
Maximum [Member]
Accounts Receivable [Member]
Jun. 30, 2015
Customer B [Member]
Cost of Sales [Member]
Jun. 30, 2015
Customer B [Member]
Cost of Sales [Member]
Jun. 30, 2014
Customer B [Member]
Cost of Sales [Member]
Jun. 30, 2014
Customer B [Member]
Maximum [Member]
Cost of Sales [Member]
Jun. 30, 2014
Customer D [Member]
Cost of Sales [Member]
Jun. 30, 2014
Customer D [Member]
Cost of Sales [Member]
Jun. 30, 2015
Customer D [Member]
Maximum [Member]
Cost of Sales [Member]
Jun. 30, 2015
Customer D [Member]
Maximum [Member]
Cost of Sales [Member]
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
Concentration risk, percentage
12.00% 
10.00% 
10.00% 
10.00% 
12.00% 
10.00% 
10.00% 
10.00% 
10.00% 
10.00% 
The Company and Summary of Significant Accounting Policies - Rights Plan - Additional Information (Detail) (USD $)
0 Months Ended
Jul. 14, 2014
Jun. 30, 2015
Dec. 31, 2014
Jul. 14, 2014
Feb. 15, 2012
Class of Warrant or Right [Line Items]
 
 
 
 
 
Common stock dividend declared, number of preferred share purchase rights for each outstanding share of common stock
 
 
 
100.00% 
 
Number of shares called by each Right
 
 
 
0.01 
 
Exercise price
 
 
 
$ 10.00 
 
Preferred stock, shares authorized
 
10,000,000 
10,000,000 
 
10,000,000 
Exercisable period after public announcement
10 days 
 
 
 
 
Beneficial ownership threshold of common stock for rights be become exercisable
10.00% 
 
 
 
 
Market value of acquiring corporation shares
 
 
 
$ 20.00 
 
Minimum ownership percentage of common stock Board of Directors may no longer exchange common stock
50.00% 
 
 
 
 
Exchange of common stock for Right, exchange ratio
 
 
 
 
Series A Junior Participating Preferred Stock [Member]
 
 
 
 
 
Class of Warrant or Right [Line Items]
 
 
 
 
 
Preferred stock, shares authorized
2,000,000 
 
 
2,000,000 
2,000,000 
Investments and Fair Value Measurements - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Jul. 31, 2013
Fair Value Disclosures [Abstract]
 
Payments to acquire investment
$ 1.0 
Property and Equipment-Net - Schedule of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
$ 38,414 
$ 36,547 
Less accumulated depreciation
(24,331)
(21,419)
Total property and equipment-net
14,083 
15,128 
Computer Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
21,858 
21,194 
Computer Software [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
12,536 
10,741 
Furniture and Fixtures [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
1,838 
1,847 
Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
1,369 
1,389 
Work in Process [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
635 
1,203 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
$ 178 
$ 173 
Property and Equipment-Net - Schedule of Property and Equipment (Parenthetical) (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
$ 38,414 
$ 36,547 
Accumulated depreciation of equipment under capital leases
24,331 
21,419 
Capital Lease Obligations [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Accumulated depreciation of equipment under capital leases
1,200 
2,700 
Computer Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
21,858 
21,194 
Computer Equipment [Member] |
Capital Lease Obligations [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment gross
$ 3,300 
$ 4,800 
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Accounts Payable and Accrued Liabilities, Current [Abstract]
 
 
Accrued compensation
$ 3,519 
$ 4,066 
Accrued content fees
2,204 
1,745 
Accrued business acquisition consideration
 
495 
Unearned revenue on contracts
611 
642 
Other
1,125 
1,455 
Total
$ 7,459 
$ 8,403 
Information About Segment and Geographic Areas - Additional Information (Detail)
6 Months Ended
Jun. 30, 2015
Segment
Managers
Revenues From External Customers And Long Lived Assets [Abstract]
 
Number of segment managers accountable for operations below the Company level
Number of reportable segments
Number of operating units
Information About Segment and Geographic Areas - Schedule of Revenue and Long Lived Tangible Assets by Geographic Area (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
REVENUE
$ 24,716 
$ 24,191 
$ 51,446 
$ 49,439 
 
Long-lived tangible assets
14,083 
 
14,083 
 
15,128 
United States [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
REVENUE
24,537 
24,026 
51,067 
49,104 
 
Long-lived tangible assets
13,299 
 
13,299 
 
14,573 
Canada [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Long-lived tangible assets
774 
 
774 
 
502 
International [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
REVENUE
179 
165 
379 
335 
 
Europe [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Long-lived tangible assets
$ 10 
 
$ 10 
 
$ 53 
Commitments and Contingencies - Schedule of Contract Commitments (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Contractual Obligation, Fiscal Year Maturity [Abstract]
 
2015 (remaining six months)
$ 2,564 
2016
6,700 
2017
4,581 
2018
3,018 
Total contract commitments
$ 16,863 
Equity - Additional Information (Detail) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Feb. 28, 2014
Feb. 15, 2012
Jul. 14, 2014
Series A Junior Participating Preferred Stock [Member]
Feb. 15, 2012
Series A Junior Participating Preferred Stock [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
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 
2,000,000 
2,000,000 
Preferred stock, par value
$ 0.01 
$ 0.01 
 
$ 0.01 
 
 
Shares authorized to be repurchased, amount
 
 
$ 5,000,000 
 
 
 
Equity - Schedule of Stock Repurchased (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Equity [Abstract]
 
 
 
 
Shares of common stock repurchased
207,050 
229,050 
Value of common stock repurchased (in thousands)
$ 0 
$ 507,000 
$ 0 
$ 562,000 
Equity - Withhold to Cover - Additional Information (Detail)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Equity [Abstract]
 
 
Shares withheld to satisfy minimum statutory tax withholding requirements
54,588 
2,613 
Stock-based Compensation - Schedule of Total Stock Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation expense
$ 800 
$ 847 
$ 1,541 
$ 1,528 
Technology and Development [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation expense
253 
375 
470 
702 
Sales and Marketing [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation expense
244 
125 
485 
233 
General and Administrative [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation expense
$ 303 
$ 347 
$ 586 
$ 593 
Stock-based Compensation - Summary of Stock Option Activity (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Outstanding number of stock options beginning balance
6,754,082 
Number of stock options granted
1,424,500 
Number of stock options exercised
(36,135)
Number of stock options forfeited
(472,000)
Outstanding number of stock options ending balance
7,670,447 
Outstanding number of stock options vested and expected to vest
7,223,333 
Outstanding number of stock options vested and exercisable
3,170,259 
Outstanding, weighted average exercise price, beginning balance
$ 2.83 
Weighted average exercise price, granted
$ 2.19 
Weighted average exercise price, exercised
$ 1.94 
Weighted average exercise price, forfeited
$ 2.46 
Outstanding, weighted average exercise price, ending balance
$ 2.74 
Vested and expected to vest, weighted average exercise price, ending balance
$ 2.77 
Vested and exercisable, weighted average exercise price, ending balance
$ 3.20 
Aggregate intrinsic value, outstanding
$ 180 
Aggregate intrinsic value, vested and expected to vest
180 
Aggregate intrinsic value, vested and exercisable
$ 179 
Weighted average remaining contractual term (in years), outstanding
7 years 4 months 13 days 
Weighted average remaining contractual term (in years), vested and expected to vest
7 years 3 months 
Weighted average remaining contractual term (in years), vested and exercisable
4 years 11 months 23 days 
Stock-based Compensation - Additional Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Closing stock price as reported on the NASDAQ
$ 1.61 
Weighted average fair value of options issued
$ 1.20 
Unrecognized compensation cost related to non-vested options granted
$ 5.8 
Total fair value of shares vested
$ 0.6 
Expected weighted average period to recognize unrecognized compensation cost
2 years 9 months 18 days 
Net Income (Loss) Per Common Share Data - Schedule of Basic and Diluted Net Loss Per Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Numerator:
 
 
 
 
Net loss
$ (1,082)
$ (1,868)
$ (2,156)
$ (3,924)
Denominator:
 
 
 
 
Weighted-average common shares outstanding
27,534,119 
27,360,588 
27,475,481 
27,397,695 
Basic net loss per share
$ (0.04)
$ (0.07)
$ (0.08)
$ (0.14)
Numerator:
 
 
 
 
Net loss
$ (1,082)
$ (1,868)
$ (2,156)
$ (3,924)
Denominator:
 
 
 
 
Weighted-average common shares outstanding
27,534,119 
27,360,588 
27,475,481 
27,397,695 
Add weighted-average effect of dilutive securities:
 
 
 
 
Weighted-average effect of diluted securities
Number of shares used in diluted calculation
27,534,119 
27,360,588 
27,475,481 
27,397,695 
Diluted net loss per share
$ (0.04)
$ (0.07)
$ (0.08)
$ (0.14)
Net Income (Loss) Per Common Share Data - Schedule of Equivalent Shares Excluded from Calculation of Diluted Net Loss Per Share (Detail) (Stock Options and RSUs [Member])
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Stock Options and RSUs [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Antidilutive equity awards
8,278,318 
5,672,042 
8,278,318 
5,672,042