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Industry segment and geographic information
12 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Industry segment and geographic information Industry segment and geographic information
We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.
Our CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments.
We reported results in three business segments through June 30, 2019:
Automotive - Our automotive segment utilizes our connected car platform to deliver enhanced location-based navigation services to automobile manufacturers and tier ones. We primarily offer three variations of our connected car products and services to our automobile manufacturer and tier one customers. First, we offer on-board navigation systems that are built into vehicles with all key elements of the system residing in the vehicle as a self-contained application along with the related software and content. Our on-board navigation products do not require access to the Internet or wireless networks to function. Second, we offer advanced hybrid navigation solutions that contain on-board functionality and also add cloud functionality such as cloud search, cloud routing, map updates and “live” data. We refer to these solutions as hybrid navigation. Third, we offer mobile phone-based navigation solutions that run on the phone and provides an interactive map and navigation instructions to the vehicle's video screen and audio system, which we refer to as brought-in navigation.
Advertising - Our advertising segment provides interactive mobile advertisements on behalf of our advertising clients to consumers based specifically on the location of the user and other sophisticated targeting capabilities. Our customers include advertisers and advertising agencies.
Mobile Navigation - Our mobile navigation segment provides our map and navigation platform to end users through mobile devices. We distribute our services primarily through our wireless carrier partners.
Our segment results were as follows (dollars in thousands):
 
 
Fiscal Year Ended June 30,
 
 
2019
 
2018
 
2017
Automotive
 
 
 
 
 
 
Revenue
 
$
186,835

 
$
177,842

 
$
163,915

Cost of revenue
 
109,758

 
109,001

 
102,024

Gross profit
 
$
77,077

 
$
68,841

 
$
61,891

Gross margin
 
41
%
 
39
%
 
38
%
Advertising
 
 
 
 
 
 
Revenue
 
$
24,241

 
$
27,229

 
$
26,841

Cost of revenue
 
11,527

 
13,341

 
12,724

Gross profit
 
$
12,714

 
$
13,888

 
$
14,117

Gross margin
 
52
%
 
51
%
 
53
%
Mobile Navigation
 
 
 
 
 
 
Revenue
 
$
9,820

 
$
13,392

 
$
18,959

Cost of revenue
 
3,390

 
5,729

 
5,688

Gross profit
 
$
6,430

 
$
7,663

 
$
13,271

Gross margin
 
65
%
 
57
%
 
70
%
Total
 
 
 
 
 
 
Revenue
 
$
220,896

 
$
218,463

 
$
209,715

Cost of revenue
 
124,675

 
128,071

 
120,436

Gross profit
 
$
96,221

 
$
90,392

 
$
89,279

Gross margin
 
44
%
 
41
%
 
43
%

Revenue by geographic region is based on the billing address of our customers. The following table sets forth revenue and property and equipment by geographic region (in thousands):
 
 
Fiscal Year Ended June 30,
 
 
2019
 
2018
 
2017
Revenue
 
 
 
 
 
 
United States
 
$
179,723

 
$
195,795

 
$
188,735

International
 
41,173

 
22,668

 
20,980

Total revenue
 
$
220,896

 
$
218,463

 
$
209,715

 
 
 
 
 
 
 
 
 
 
 
June 30,
 
 
 
 
2019
 
2018
Property and equipment, net
 
 
 
 
 
 
United States
 
 
 
$
2,751

 
$
3,213

International
 
 
 
2,904

 
3,774

Total property and equipment, net
 
 
 
$
5,655

 
$
6,987