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Summary of Business and Significant Accounting Policies (Tables) | 6 Months Ended
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Dec. 31, 2018
Business and significant accounting policies |
Schedule of revenue and income from operations by geographic area | Revenue by geography is generally determined on the region of our contracting entity rather than the region of our customer. Information relating to our geographic areas for the three and six months ended December 31, 2018 and 2017 is as follows (unaudited, in thousands):
|  | Three Months Ended |  | Six Months Ended
|  | December 31, |  | December 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 10,065 |  | $ | 8,683 |  | $ | 18,540 |  | $ | 16,122
EMEA |  |  | 7,639 |  |  | 6,715 |  |  | 14,865 |  |  | 13,851
Total revenue |  | $ | 17,704 |  | $ | 15,398 |  | $ | 33,405 |  | $ | 29,973
Income (loss) from operations: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 964 |  | $ | (1,401) |  | $ | 949 |  | $ | (1,218)
EMEA |  |  | 2,405 |  |  | 2,355 |  |  | 4,361 |  |  | 3,062
Asia Pacific |  |  | (1,240) |  |  | (1,350) |  |  | (2,428) |  |  | (2,494)
Income (loss) from operations |  | $ | 2,129 |  | $ | (396) |  | $ | 2,882 |  | $ | (650)
Long-lived assets by geographic location | In addition, long-lived assets corresponding to our geographic areas are as follows (unaudited, in thousands):
|  | December 31, |  | June 30,
|  | 2018 |  | 2018
Long-lived Assets: |  |  |  |  |  |
North America |  | $ | 195 |  | $ | 210
EMEA |  |  | 130 |  |  | 245
Asia Pacific |  |  | 143 |  |  | 104
Long-lived Assets |  | $ | 468 |  | $ | 559
Summary of stock-based compensation included in costs and expenses | Below is a summary of stock-based compensation included in the costs and expenses (unaudited, in thousands):
|  | Three Months Ended |  | Six Months Ended
|  | December 31, |  | December 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Stock-Based Compensation Expense: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 70 |  | $ | 146 |  | $ | 144 |  | $ | 209
Research and development |  |  | 108 |  |  | 275 |  |  | 224 |  |  | 385
Sales and marketing |  |  | 54 |  |  | 129 |  |  | 100 |  |  | 192
General and administrative |  |  | 104 |  |  | 186 |  |  | 230 |  |  | 269
Total stock-based compensation expense |  | $ | 336 |  | $ | 736 |  | $ | 698 |  | $ | 1,055
Summary of stock option assumptions |
|  | Three Months Ended |  |  | Six Months Ended |
|  | December 31, |  |  | December 31, |
|  | 2018 |  | 2017 |  |  | 2018 |  | 2017 |
Expected volatility |  | 68 | % | 59 | % |  | 66 | % | 57 | %
Average risk-free interest rate |  | 2.88 | % | 2.07 | % |  | 2.85 | % | 1.88 | %
Expected life (in years) |  | 4.39 |  | 4.36 |  |  | 4.34 |  | 4.51 |
Dividend yield |  | — |  | — |  |  | — |  | — |
Summary of Employee Stock Purchase Plan (ESPP) assumptions |
|  | Three and Six Months Ended |  |
|  | December 31, 2018 |  |
Expected term (in years) |  |  |  | 0.47 |  |
Volatility |  |  |  | 90 | % |
Expected dividend |  |  |  | — |  |
Risk-free interest rate |  |  |  | 2.54 | % |
Estimated forfeiture rate |  |  |  | — |  |
Wieghted average grant date fair value |  | $ |  | 2.82 |  |
ASU 2014-09 |
Business and significant accounting policies |
Schedule of financial impact from initial adoption and after initial adoption | The following table shows cumulative adjustments included in our condensed consolidated opening balance sheet as of July 1, 2018 related to the adoption of Topic 606 (in thousands):
|  | Balance as of June 30, 2018 ($) |  | Impact as of July 1, 2018 ($) |  | Balance as of July 1, 2018 ($)
Balance sheet captions: |  |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | 7,389 |  |  | 14,824 |  |  | 22,213
Costs capitalized to obtain revenue contracts, net |  |  | 986 |  |  | (395) |  |  | 591
Costs capitalized to obtain revenue contracts, net of current portion |  |  | 891 |  |  | 933 |  |  | 1,824
Accrued liabilities |  |  | 2,285 |  |  | 60 |  |  | 2,345
Deferred revenue |  |  | 18,364 |  |  | 11,700 |  |  | 30,064
Deferred revenue, net of current portion |  |  | 7,833 |  |  | (422) |  |  | 7,411
Accumulated deficit |  |  | (353,260) |  |  | 3,816 |  |  | (349,444)
Financial Impact after Initial Adoption The following table shows cumulative adjustments included in our condensed consolidated balance sheet as of December 31, 2018 related to the adoption of Topic 606 (in thousands):
|  | December 31, 2018
|  | Reported under Topic 606 ($) |  | Topic 606 Impact ($) |  | Excluding Topic 606 Impact ($)
Balance sheet captions: |  |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | 16,178 |  |  | (9,036) |  |  | 7,142
Costs capitalized to obtain revenue contracts, net |  |  | 682 |  |  | 315 |  |  | 997
Costs capitalized to obtain revenue contracts, net of current portion |  |  | 1,904 |  |  | (1,137) |  |  | 767
Deferred revenue |  |  | 28,836 |  |  | (61) |  |  | 28,775
Deferred revenue, net of current portion |  |  | 6,136 |  |  | (4,628) |  |  | 1,508
Accumulated deficit |  |  | (346,840) |  |  | 3,816 |  |  | (343,024)
The following table presents the financial impact between guidance under Topic 605 and newly adopted guidance under Topic 606 during the three months ended December 31, 2018 (in thousands):
|  | Three Months Ended December 31, 2018
|  | Reported under Topic 606 ($) |  | Topic 606 Impact ($) |  | Excluding Topic 606 Impact ($)
Income statement captions: |  |  |  |  |  |  |  |  |
Subscription revenue |  |  | 15,823 |  |  | (422) |  |  | 15,401
Professional services revenue |  |  | 1,881 |  |  | (603) |  |  | 1,278
Total revenue |  |  | 17,704 |  |  | (1,025) |  |  | 16,679
Gross profit |  |  | 12,162 |  |  | (1,025) |  |  | 11,137
Total operating expenses |  |  | 10,033 |  |  | 171 |  |  | 10,204
Net income (loss) |  |  | 2,000 |  |  | (1,196) |  |  | 804
The following table presents the financial impact between guidance under Topic 605 and newly adopted guidance under Topic 606 during the six months ended December 31, 2018 (in thousands):
|  | Six Months Ended December 31, 2018
|  | Reported under Topic 606 ($) |  | Topic 606 Impact ($) |  | Excluding Topic 606 Impact ($)
Income statement captions: |  |  |  |  |  |  |  |  |
Subscription revenue |  |  | 29,550 |  |  | (29) |  |  | 29,521
Professional services revenue |  |  | 3,855 |  |  | (806) |  |  | 3,049
Total revenue |  |  | 33,405 |  |  | (835) |  |  | 32,570
Gross profit |  |  | 22,628 |  |  | (835) |  |  | 21,793
Total operating expenses |  |  | 19,746 |  |  | 292 |  |  | 20,038
Net income (loss) |  |  | 2,604 |  |  | (1,127) |  |  | 1,477

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