Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.6.0.2
Segment and Geographic Information
 9 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
The Company manages its business in three operating segments: O&O, A&P, and Content. The three operating segments have been aggregated into two reportable segments: Advertising and Content. Our chief operating decision maker does not evaluate operating segments using asset information. The Company has considered guidance in Accounting Standards Codification (ASC) 280 in reaching its conclusion with respect to aggregating its operating segments into two reportable segments. Specifically, the Company has evaluated guidance in ASC 280-10-50-11 and determined that aggregation is consistent with the objectives of ASC 280 in that aggregation into two reportable segments allows users of our financial statements to view the Company’s business through the eyes of management based upon the way management reviews performance and makes decisions. Additional factors that were considered included: whether or not the operating segments have similar economic characteristics, the nature of the products/services under each operating segment, the nature of the production/go-to-market process, the type and geographic location of our customers, and the distribution of our products/services.
The following table sets forth segment information on our net revenues and loss from operations for the three and nine months ended December 31, 2016 and three and nine months ended December 31, 2015, respectively. During fiscal 2016 the Company changed its methodology for how corporate operating expenses are allocated to the Company's Advertising and Content operating segments, as the new method of allocation is deemed by management to be a more accurate representation of how the expenses relate to the operations and development of the Advertising and Content segments. Corporate operating expenses in fiscal 2015 were previously allocated between the Advertising and Content segments based on employee headcount. Corporate operating expenses in fiscal 2016 are now being allocated based on the percentage of revenue between Advertising and Content for the Company as a whole. Prior period fiscal 2015 figures presented have been updated to reflect these changes and are comparable to the fiscal 2016 figures presented.
 
 
Content
 
Advertising
 
Total
Three months ended December 31, 2016
 
 
 
 
 
 
Net revenues
 
$
6,073

 
$
16,212

 
$
22,285

Loss from operations
 
(1,229
)
 
(4,181
)
 
(5,410
)
Three months ended December 31, 2015
 
 
 
 
 
 
Net revenues
 
6,642

 
17,447

 
24,089

Loss from operations
 
$
(1,083
)
 
$
(4,182
)
 
$
(5,265
)
 
 
Content
 
Advertising
 
Total
Nine months ended December 31, 2016
 
 
 
 
 
 
Net revenues
 
$
24,929

 
$
44,227

 
$
69,156

Loss from operations
 
(3,980
)
 
(14,186
)
 
(18,166
)
Nine months ended December 31, 2015
 
 
 
 
 
 
Net revenues
 
20,782

 
42,727

 
63,509

Loss from operations
 
$
(6,600
)
 
$
(13,960
)
 
$
(20,560
)
The following table sets forth geographic information on our net revenues for the three and nine months ended December 31, 2016 and 2015. Net revenues by geography are based on the billing addresses of our customers. During the three and nine months ended December 31, 2016, one major Advertising customer represented 16.2% and 13.4%, respectively, of net revenues, another major Advertising customer represented 13.9% and 11.4%, respectively, of net revenues, and a major Content customer represented 16.2% and 23.7%, respectively, of net revenues. During the three and nine months ended December 31, 2015, the previously mentioned major Advertising customer represented 1.9% and 1.6%, respectively, of net revenues, the previously mentioned second major Advertising customer represented 9.3% and 8.7%, respectively, of net revenues, and the previously mentioned major Content customer represented 22.0% and 26.6%, respectively, of net revenues.
 
 
Three Months Ended December 31,
 
 
2016
 
2015
Net revenues
 
 
 
 
     United States and Canada
 
$
8,197

 
$
9,062

     Europe, Middle East, and Africa
 
3,575

 
5,159

     Asia Pacific and China
 
9,746

 
9,769

     Mexico, Central America, and South America
 
767

 
99

Consolidated net revenues
 
$
22,285

 
$
24,089

 
 
Nine Months Ended December 31,
 
 
2016
 
2015
Net revenues
 
 
 
 
     United States and Canada
 
$
23,677

 
$
22,330

     Europe, Middle East, and Africa
 
11,380

 
11,851

     Asia Pacific and China
 
32,700

 
28,979

     Mexico, Central America, and South America
 
1,399

 
349

Consolidated net revenues
 
$
69,156

 
$
63,509