Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected car
and location-based services, announced that on February 12, 2020 it
filed with the Securities and Exchange Commission an amended Form
10-Q/A for three months ended September 30, 2019, and its Form 10-Q
for the three months ended December 31, 2019.
Subsequent to the issuance of Telenav’s earnings release and
related investor presentation on February 6, 2020, and conference
call and webcast with investors, Telenav further reviewed and
updated its reporting of revenue related to its agreements with
Grab Holdings, Inc. and certain of its subsidiaries (the “Grab
Transaction”). This updated revenue affects the three months
ended September 30, 2019 and the three and six months ended
December 31, 2019, as well as the outlook Telenav provided on
February 6, 2020 for the three months ending March 31, 2020.
The Form 10-Q/A for the three months ended September 30, 2019 and
Form 10-Q for the three months ended December 31, 2019 reflect the
following updated revenue and other effects of the Grab
Transaction:
First Quarter of Fiscal 2020
- Revenue of $66.6 million, an increase of $2.2 million from the
previously reported first quarter of fiscal 2020
- Revenue growth of 44% over the first quarter of fiscal
2019
- Net loss of $4.0 million, an improvement of $2.2 million from
the previously reported first quarter of fiscal 2020
- Adjusted EBITDA of $2.6 million, an increase of $2.2 million
from the previously reported first quarter of fiscal 2020
Second Quarter of Fiscal 2020
- Revenue of $73.9 million, an increase of $6.5 million from the
previously reported second quarter of fiscal 2020
- Revenue growth of 47% over the second quarter of fiscal
2019.
- Net income of $13.0 million, an improvement of $6.5 million
from the previously reported second quarter of fiscal 2020
- Adjusted EBITDA of $14.3 million, an increase of $6.5 million
from the previously reported second quarter of fiscal 2020
First Half of Fiscal 2020
- Revenue of $140.5 million, an increase of $8.7 million from the
previously reported first half of fiscal 2020
- Net income of $9.1 million, an improvement of $8.7 million from
the previously reported first half of fiscal 2020
- Adjusted EBITDA of $16.8 million, an increase of $8.7 million
from the previously reported first half of fiscal 2020
There was no impact on Telenav’s cash balances at December 31,
2019 as a result of the updates. Attached at the end of this
press release are financial results for the three and six months
ended December 31, 2019 that reflect the amounts set forth in the
10-Q/A for the three months ended September 30, 2019 and Form 10-Q
for the three months ended December 31, 2019.
Third Quarter of Fiscal 2020
Telenav also updated the information it provided on February 6,
2020 regarding Telenav’s outlook for the three months ending March
31, 2020. Telenav reconfirms its operating outlook Telenav for the
three months ending March 31, 2020, as follows:
- Telenav expects total revenue to be $61.5 million to $63.5
million
- Telenav expects billings, a non-GAAP measure, to be between
$62.5 million to $64.5 million, and GAAP gross margin to be within
42% to 44%
- Telenav expects GAAP operating expenses to be between $29
million to $31 million.
- Telenav expects Adjusted EBITDA, a non-GAAP measure, to be
within negative $1.5 million to positive $0.5 million
- For fiscal 2020 as a whole, Telenav expects Adjusted EBITDA to
be positive
However, Telenav estimates that net loss for this period will
now be between $(3.0) million and $(5.0) million.
Please visit Telenav’s investor relations website at
http://investor.telenav.com to view the updated financial results
and supplemental comments and materials.
Use of Non-GAAP Financial Measures
Telenav prepares its financial statements in accordance with
generally accepted accounting principles for the United States, or
GAAP. The non-GAAP financial measures such as billings, change in
deferred revenue, change in deferred costs, adjusted EBITDA, and
free cash flow included in this press release are different from
those otherwise presented under GAAP. Telenav has provided these
measures in addition to GAAP financial results because management
believes these non-GAAP measures help provide a consistent basis
for comparison between periods that are not influenced by certain
items and, therefore, are helpful in understanding Telenav’s
underlying operating results. These non-GAAP measures are some of
the primary measures Telenav’s management uses for planning and
forecasting. These measures are not in accordance with, or an
alternative to, GAAP and these non-GAAP measures may not be
comparable to information provided by other companies.
To reconcile the historical GAAP results to non-GAAP financial
metrics, please refer to the reconciliations in the financial
statements included in this earnings release.
Billings equals GAAP revenue recognized plus the change in
deferred revenue from the beginning to the end of the applicable
period. In connection with its presentation of the change in
deferred revenue, Telenav has provided a similar presentation of
the change in the related deferred costs. Such deferred costs
primarily include costs associated with third party content and
certain development costs associated with its customized software
solutions whereby customized engineering fees are earned. As
Telenav enters into more hybrid and brought-in navigation programs,
deferred revenue and deferred costs become larger components of its
operating results, so Telenav believes these metrics are useful in
evaluating cash flows.
Telenav considers billings to be a useful metric for management
and investors because billings drive revenue and deferred revenue,
which is an important indicator of its business. There are a number
of limitations related to the use of billings versus revenue
calculated in accordance with GAAP. First, billings include amounts
that have not yet been recognized as revenue or cost and may
require additional services or costs to be provided over contracted
service periods. For example, billings related to certain
brought-in solutions cannot be fully recognized as revenue in a
given period due to requirements for ongoing map updates and
provisioning of services such as hosting, monitoring, customer
support and, for certain customers, additional period content and
associated technology costs. Second, we may calculate billings in a
manner that is different from peer companies that report similar
financial measures, making comparisons between companies more
difficult. Accordingly, when Telenav uses this measure, it attempts
to compensate for these limitations by providing specific
information regarding billings and how they relate to revenue
calculated in accordance with GAAP.
Adjusted EBITDA measures GAAP net loss adjusted for discontinued
operations and excluding the impact of stock-based compensation
expense, depreciation and amortization, other income (expense) net,
provision (benefit) for income taxes, and other applicable items
such as legal settlements and contingencies and merger and
acquisition, or M&A, transaction expenses, net of tax.
Stock-based compensation expense relates to equity incentive awards
granted to its employees, directors, and consultants. Legal
settlements and contingencies represent settlements, offers made to
settle, or loss accruals relating to litigation or other disputes
in which Telenav is a party or the indemnitor of a party. M&A
transaction expenses relate primarily to costs associated with
transactions, such as the inMarket transaction and the Grab
transaction.
Adjusted EBITDA, while generally a measure of profitability, can
also represent a loss. Adjusted EBITDA is a key measure used by
Telenav’s management and board of directors to understand and
evaluate Telenav’s core operating performance and trends, to
prepare and approve its annual budget and to develop short- and
long-term operational plans. In particular, Telenav believes that
the exclusion of the expenses eliminated in calculating adjusted
EBITDA can provide a useful measure for period-to-period
comparisons of Telenav’s core business. Accordingly, Telenav
believes that adjusted EBITDA generally provides useful information
to investors and others in understanding and evaluating Telenav’s
operating results in the same manner as Telenav’s management and
board of directors.
Free cash flow is a non-GAAP financial measure Telenav defines
as net cash provided by (used in) operating activities, less
purchases of property and equipment. Telenav considers free cash
flow to be a liquidity measure that provides useful information to
management and investors about the amount of cash (used in)
generated by its business after purchases of property and
equipment.
In this press release, or in the supplemental investor
presentation on its website, Telenav may provide guidance for the
third quarter of fiscal 2020 on a non-GAAP basis for billings and
adjusted EBITDA. Telenav does not provide reconciliations of these
forward-looking non-GAAP financial measures to the corresponding
GAAP measures due to the high variability and difficulty in making
accurate forecasts and projections with respect to deferred
revenue, deferred costs, stock-based compensation and tax provision
(benefit), which are components of these non-GAAP financial
measures. In particular, stock-based compensation is impacted by
future hiring and retention needs, as well as the future fair
market value of Telenav’s common stock, all of which is difficult
to predict and subject to constant change. The actual amounts of
these items will have a significant impact on Telenav’s net loss
per diluted share and tax provision (benefit). Accordingly,
reconciliations of Telenav’s forward-looking non-GAAP financial
measures to the corresponding GAAP measures are not available
without unreasonable effort.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements relate to
anticipated financial performance, management’s plans and
objectives for future operations, business prospects, market
penetration, and other matters.
Any forward-looking statement made in this press release
speaks only as of the date on which it is made. Telenav undertakes
no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future developments or otherwise. Actual events
or results may differ materially from those described in this
document due to a number of risks and uncertainties.
These forward-looking statements are based on
management’s current beliefs and assumptions and on information
currently available to management. Telenav cautions that these
statements are subject to risks and uncertainties, many of which
are outside of Telenav’s control and could cause future events or
results to be materially different from those stated or implied in
this document, or to not occur at all. These potential risks and
uncertainties include, among others: the Company's ability to
determine, achieve and accurately recognize revenue under customer
engagements, including specifically related to the Company’s
transaction with Grab Holdings; the Company’s ability to develop
and implement products for Ford, GM and Toyota and to support Ford,
GM and Toyota and their customers; the impact of Ford’s
announcement regarding the elimination of various sedans in North
America over the near term; the impact of tariffs on sales of
automobiles in the United States and other markets; the Company’s
success in extending its contracts for current and new generation
of products with its existing automobile manufacturers and tier
ones, particularly Ford; the impact of GM’s announcement regarding
Google Automotive Services; the impact of Garmin’s announcement
that it is providing navigation services to Ford; the Company’s
ability to achieve additional design wins and the delivery dates of
automobiles including the Company’s products; adoption by vehicle
purchasers of Scout GPS Link; the Company’s ability to demonstrate
internal controls over financial reporting and disclosures,
including as it may relate to our recognition of revenue; the
Company’s dependence on a limited number of automobile
manufacturers and tier ones for a substantial portion of its
revenue and the impact of labor stoppages on those automobile
manufacturers’ and tier ones’ ability to produce vehicles;
reductions in demand for automobiles; potential impacts of
automobile manufacturers and tier ones including competitive
capabilities in their vehicles such as Apple CarPlay and Android
Auto; the Company’s continued reporting of losses and operating
expenses in excess of expectations; the Company’s ability to
acquire certification for automotive SPICE and other contractual
obligations with customers; failure to reach agreement with
customers for awards and contracts on products and services in
which the Company has expended resources developing; competition
from other market participants who may provide comparable services
to subscribers without charge; the timing of new product releases
and vehicle production by the Company’s automotive customers,
including inventory procurement and fulfillment; possible warranty
claims, and the impact on consumer perception of its brand; the
Company’s ability to perform under its initiatives with Amazon and
Microsoft, and benefit from those initiatives; the potential that
the Company may not be able to realize its deferred tax assets and
may have to take a reserve against them; the Company’s reliance on
its automobile manufacturers for volume and royalty reporting; the
impact on revenue recognition and other financial reporting due to
the amendment of contracts or changes in accounting standards; the
impact of the novel corona virus on business activity and the
Company’s operations; the Company’s ability to remediate its
material weaknesses in its internal control over financial
reporting and disclosures, and timely demonstrate such mitigation,
including as it may relate to the Company’s recognition of revenue,
including under the Grab Transaction; and macroeconomic and
political conditions in the U.S. and abroad, in particular China.
The Company discusses these risks in greater detail in “Risk
Factors” and elsewhere in its Form 10-K for the fiscal year ended
June 30, 2019 and other filings with the U.S. Securities and
Exchange Commission (“SEC”), which are available at the SEC’s
website at www.sec.gov. Given these uncertainties, you should
not place undue reliance on these forward-looking statements. Also,
forward-looking statements represent management’s beliefs and
assumptions only as of the date made. You should review the
company’s SEC filings carefully and with the understanding that
actual future results may be materially different from what the
Company expects.
ABOUT TELENAV, INC.
Telenav is a leading provider of connected car and
location-based services, focused on transforming life on the go for
people - before, during, and after every drive. Leveraging our
location platform, we enable our customers to deliver custom
connected car and mobile experiences. To learn more about how
Telenav’s location platform powers personalized navigation,
mapping, big data intelligence, social driving, and location-based
advertising, visit www.telenav.com.
“Telenav” and the Telenav Logo are registered trademarks and
“VIVID” is a trademark of Telenav, Inc. Unless otherwise noted, all
other trademarks, service marks, and logos used in this press
release are the trademarks, service marks or logos of their
respective owners.
© 2020 Telenav, Inc. All Rights Reserved.
TNAV-F
Investor Relations:Bishop IRMike
Bishop415-894-9633IR@telenav.com
Media:Raphel Finelli408-667-5970raphelf@telenav.com
Telenav,
Inc. |
Condensed
Consolidated Balance Sheets |
(in
thousands, except par value) |
(unaudited) |
|
December
31, |
|
June
30, |
|
|
2019 |
|
|
|
2019 |
|
|
|
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
26,347 |
|
|
$ |
27,275 |
|
Short-term investments |
|
102,603 |
|
|
|
72,203 |
|
Accounts receivable, net of allowances of $7 and $7 at December 31,
2019 and June 30, 2019, respectively |
|
44,463 |
|
|
|
69,781 |
|
Restricted cash |
|
1,520 |
|
|
|
1,950 |
|
Deferred costs |
|
33,117 |
|
|
|
18,752 |
|
Prepaid expenses and other current assets |
|
8,933 |
|
|
|
3,784 |
|
Assets of discontinued operations, non-current |
|
- |
|
|
|
6,330 |
|
Total current assets |
|
216,983 |
|
|
|
200,075 |
|
Property and
equipment, net |
|
5,215 |
|
|
|
5,583 |
|
Operating
lease right-of-use assets |
|
8,749 |
|
|
|
- |
|
Deferred
income taxes, non-current |
|
1,401 |
|
|
|
998 |
|
Goodwill and
intangible assets, net |
|
15,265 |
|
|
|
15,701 |
|
Deferred
costs, non-current |
|
48,646 |
|
|
|
61,050 |
|
Other
assets |
|
21,285 |
|
|
|
1,414 |
|
Assets of
discontinued operations, non-current |
|
- |
|
|
|
12,194 |
|
Total assets |
$ |
317,544 |
|
|
$ |
297,015 |
|
Liabilities and stockholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Trade accounts payable |
$ |
1,113 |
|
|
$ |
16,061 |
|
Accrued expenses |
|
54,182 |
|
|
|
48,899 |
|
Operating lease liabilities |
|
3,532 |
|
|
|
- |
|
Deferred revenue |
|
50,416 |
|
|
|
31,270 |
|
Income taxes payable |
|
928 |
|
|
|
800 |
|
Liabilities of discontinued operations |
|
- |
|
|
|
3,373 |
|
Total current liabilities |
|
110,171 |
|
|
|
100,403 |
|
Deferred
rent, non-current |
|
- |
|
|
|
1,266 |
|
Operating
lease liabilities, non-current |
|
6,459 |
|
|
|
- |
|
Deferred
revenue, non-current |
|
93,755 |
|
|
|
103,865 |
|
Other
long-term liabilities |
|
678 |
|
|
|
811 |
|
Liabilities
of discontinued operations, non-current |
|
- |
|
|
|
30 |
|
Commitments
and contingencies |
|
- |
|
|
|
- |
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.001 par value: 50,000 shares authorized; no
shares issued or outstanding |
|
- |
|
|
|
- |
|
Common stock, $0.001 par value: 600,000 shares authorized; 48,151
and 46,911 shares issued and outstanding at December 31, 2019 and
June 30, 2019, respectively |
|
48 |
|
|
|
47 |
|
Additional paid-in capital |
|
190,593 |
|
|
|
182,349 |
|
Accumulated other comprehensive loss |
|
(1,538 |
) |
|
|
(1,477 |
) |
Accumulated deficit |
|
(82,622 |
) |
|
|
(90,279 |
) |
Total stockholders’ equity |
|
106,481 |
|
|
|
90,640 |
|
Total liabilities and stockholders’ equity |
$ |
317,544 |
|
|
$ |
297,015 |
|
Telenav,
Inc. |
Condensed
Consolidated Statements of Operations |
(in
thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
Product |
|
$ |
61,543 |
|
|
$ |
42,397 |
|
|
$ |
117,533 |
|
|
$ |
82,327 |
|
Services |
|
|
12,332 |
|
|
|
7,763 |
|
|
|
22,971 |
|
|
|
14,085 |
|
Total revenue |
|
|
73,875 |
|
|
|
50,160 |
|
|
|
140,504 |
|
|
|
96,412 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
Product |
|
|
26,434 |
|
|
|
25,015 |
|
|
|
58,423 |
|
|
|
48,603 |
|
Services |
|
|
7,288 |
|
|
|
3,891 |
|
|
|
12,150 |
|
|
|
7,845 |
|
Total cost of revenue |
|
|
33,722 |
|
|
|
28,906 |
|
|
|
70,573 |
|
|
|
56,448 |
|
Gross
profit |
|
|
40,153 |
|
|
|
21,254 |
|
|
|
69,931 |
|
|
|
39,964 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
19,717 |
|
|
|
17,766 |
|
|
|
40,380 |
|
|
|
36,258 |
|
Sales and marketing |
|
|
2,134 |
|
|
|
1,665 |
|
|
|
4,080 |
|
|
|
3,368 |
|
General and administrative |
|
|
6,428 |
|
|
|
5,721 |
|
|
|
13,715 |
|
|
|
11,171 |
|
Legal settlements and contingencies |
|
|
- |
|
|
|
650 |
|
|
|
- |
|
|
|
650 |
|
Total operating expenses |
|
|
28,279 |
|
|
|
25,802 |
|
|
|
58,175 |
|
|
|
51,447 |
|
Income
(loss) from operations |
|
|
11,874 |
|
|
|
(4,548 |
) |
|
|
11,756 |
|
|
|
(11,483 |
) |
Other
income, net |
|
|
596 |
|
|
|
532 |
|
|
|
1,157 |
|
|
|
2,122 |
|
Income
(loss) from continuing operations before provision for income
taxes |
|
|
12,470 |
|
|
|
(4,016 |
) |
|
|
12,913 |
|
|
|
(9,361 |
) |
Provision
for income taxes |
|
|
205 |
|
|
|
102 |
|
|
|
616 |
|
|
|
842 |
|
Equity in
net (income) of equity method investees |
|
|
(797 |
) |
|
|
- |
|
|
|
(797 |
) |
|
|
- |
|
Income
(loss) from continuing operations |
|
|
13,062 |
|
|
|
(4,118 |
) |
|
|
13,094 |
|
|
|
(10,203 |
) |
Discontinued
operations: |
|
|
|
|
|
|
|
|
Income (loss) from operations of Advertising business, net of
tax |
|
|
- |
|
|
|
(463 |
) |
|
|
832 |
|
|
|
(1,948 |
) |
Loss from sale of Advertising business |
|
|
(56 |
) |
|
|
- |
|
|
|
(4,874 |
) |
|
|
- |
|
Loss on
discontinued operations |
|
|
(56 |
) |
|
|
(463 |
) |
|
|
(4,042 |
) |
|
|
(1,948 |
) |
Net income
(loss) |
|
$ |
13,006 |
|
|
$ |
(4,581 |
) |
|
$ |
9,052 |
|
|
$ |
(12,151 |
) |
|
|
|
|
|
|
|
|
|
Basic income
(loss) per share: |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
0.27 |
|
|
$ |
(0.09 |
) |
|
$ |
0.27 |
|
|
$ |
(0.23 |
) |
Loss on discontinued operations |
|
|
- |
|
|
|
(0.01 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
Net income (loss) |
|
$ |
0.27 |
|
|
$ |
(0.10 |
) |
|
$ |
0.19 |
|
|
$ |
(0.27 |
) |
Diluted
income (loss) per share: |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
0.27 |
|
|
$ |
(0.09 |
) |
|
$ |
0.27 |
|
|
$ |
(0.23 |
) |
Loss on discontinued operations |
|
|
- |
|
|
|
(0.01 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
Net income (loss) |
|
$ |
0.27 |
|
|
$ |
(0.10 |
) |
|
$ |
0.18 |
|
|
$ |
(0.27 |
) |
Weighted
average shares used in computing income (loss) per share |
|
|
|
|
|
|
|
|
Basic |
|
|
48,475 |
|
|
|
45,443 |
|
|
|
48,127 |
|
|
|
45,230 |
|
Diluted |
|
|
48,821 |
|
|
|
45,443 |
|
|
|
49,257 |
|
|
|
45,230 |
|
Telenav,
Inc. |
Condensed
Consolidated Statements of Cash Flows |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
Six Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
Operating activities |
|
|
|
|
Net income
(loss) |
|
$ |
9,052 |
|
|
$ |
(12,151 |
) |
Loss on
discontinued operations |
|
|
4,042 |
|
|
|
1,948 |
|
Income
(loss) from continuing operations |
|
|
13,094 |
|
|
|
(10,203 |
) |
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
|
Stock-based compensation expense |
|
|
3,230 |
|
|
|
3,923 |
|
Depreciation and amortization |
|
|
1,856 |
|
|
|
2,016 |
|
Operating lease amortization net of accretion |
|
|
1,321 |
|
|
|
- |
|
Accretion of net premium on short-term investments |
|
|
75 |
|
|
|
- |
|
Unrealized gain on non-marketable equity investments |
|
|
(62 |
) |
|
|
(1,259 |
) |
Equity in net income of equity method investee |
|
|
(797 |
) |
|
|
- |
|
Other |
|
|
(1 |
) |
|
|
(14 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
25,835 |
|
|
|
3,390 |
|
Deferred income taxes |
|
|
(409 |
) |
|
|
445 |
|
Deferred costs |
|
|
(1,961 |
) |
|
|
(7,040 |
) |
Prepaid expenses and other current assets |
|
|
(3,992 |
) |
|
|
216 |
|
Other assets |
|
|
21 |
|
|
|
(116 |
) |
Trade accounts payable |
|
|
(15,054 |
) |
|
|
9,812 |
|
Accrued expenses and other liabilities |
|
|
3,945 |
|
|
|
(9,575 |
) |
Income taxes payable |
|
|
130 |
|
|
|
39 |
|
Deferred rent |
|
|
- |
|
|
|
91 |
|
Operating lease liabilities |
|
|
(1,754 |
) |
|
|
- |
|
Deferred revenue |
|
|
9,036 |
|
|
|
13,234 |
|
Net cash provided by operating activities |
|
|
34,513 |
|
|
|
4,959 |
|
Investing activities |
|
|
|
|
Purchases of property and equipment |
|
|
(1,078 |
) |
|
|
(445 |
) |
Purchases of short-term investments |
|
|
(54,439 |
) |
|
|
(15,862 |
) |
Purchases of long-term investments |
|
|
(3,500 |
) |
|
|
- |
|
Proceeds from sales and maturities of short-term investments |
|
|
24,067 |
|
|
|
20,342 |
|
Net cash provided by (used in) investing activities |
|
|
(34,950 |
) |
|
|
4,035 |
|
Financing activities |
|
|
|
|
Proceeds from exercise of stock options |
|
|
8,306 |
|
|
|
26 |
|
Tax withholdings related to net share settlements of restricted
stock units |
|
|
(1,148 |
) |
|
|
(1,559 |
) |
Repurchase of common stock |
|
|
(4,019 |
) |
|
|
- |
|
Net cash provided by (used in) financing activities |
|
|
3,139 |
|
|
|
(1,533 |
) |
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(85 |
) |
|
|
(360 |
) |
Net increase in cash, cash equivalents and restricted cash,
continuing operations |
|
|
2,617 |
|
|
|
7,101 |
|
Net cash used in discontinued operations |
|
|
(3,975 |
) |
|
|
(2,319 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
29,225 |
|
|
|
20,099 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
27,867 |
|
|
$ |
24,881 |
|
Supplemental disclosure of cash flow
information |
|
|
|
|
Income taxes paid, net |
|
$ |
1,279 |
|
|
$ |
586 |
|
Non-cash investing: Investment in LLC acquired in exchange for sale
of Advertising business |
|
$ |
15,600 |
|
|
$ |
- |
|
Cash flow from discontinued operations: |
|
|
|
|
Net cash used in operating activities |
|
$ |
(3,569 |
) |
|
$ |
(2,319 |
) |
Net cash used in financing activities |
|
|
(406 |
) |
|
|
- |
|
Net cash transferred from continuing operations |
|
|
3,975 |
|
|
|
2,319 |
|
Net change in cash and cash equivalent from discontinued
operation |
|
|
- |
|
|
|
- |
|
Cash and cash equivalent of discontinued operations, beginning of
period |
|
|
- |
|
|
|
- |
|
Cash and cash equivalent of discontinued operations, end of
period |
|
$ |
- |
|
|
$ |
- |
|
Reconciliation of cash, cash equivalents and restricted
cash to the condensed consolidated balance sheets |
|
|
|
|
Cash and cash equivalents |
|
$ |
26,347 |
|
|
$ |
22,405 |
|
Restricted cash |
|
|
1,520 |
|
|
|
2,476 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
27,867 |
|
|
$ |
24,881 |
|
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Revenue to Billings |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
73,875 |
|
|
$ |
50,160 |
|
$ |
140,504 |
|
$ |
96,412 |
Adjustments: |
|
|
|
|
|
|
|
|
Change in deferred revenue |
|
|
(1,210 |
) |
|
|
6,392 |
|
|
9,036 |
|
|
13,234 |
Billings |
|
$ |
72,665 |
|
|
$ |
56,552 |
|
$ |
149,540 |
|
$ |
109,646 |
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Deferred Revenue to Change in Deferred
Revenue |
Reconciliation of Deferred Costs to Change in Deferred
Costs |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Six Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
Deferred
revenue, end of period |
|
$ |
144,171 |
|
|
$ |
87,772 |
|
$ |
144,171 |
|
$ |
87,772 |
Deferred
revenue, beginning of period |
|
|
145,381 |
|
|
|
81,380 |
|
|
135,135 |
|
|
74,538 |
Change in
deferred revenue |
|
$ |
(1,210 |
) |
|
$ |
6,392 |
|
$ |
9,036 |
|
$ |
13,234 |
|
|
|
|
|
|
|
|
|
Deferred
costs, end of period |
|
$ |
81,763 |
|
|
$ |
65,465 |
|
$ |
81,763 |
|
$ |
65,465 |
Deferred
costs, beginning of period |
|
|
77,795 |
|
|
|
62,806 |
|
|
79,802 |
|
|
58,425 |
Change in
deferred costs(1) |
|
$ |
3,968 |
|
|
$ |
2,659 |
|
$ |
1,961 |
|
$ |
7,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Deferred costs
primarily include costs associated with third-party content and in
connection with certain customized software solutions, the costs
incurred to develop those solutions. We expect to incur additional
costs in the future due to requirements to provide ongoing map
updates and provisioning of services such as hosting, monitoring,
customer support and, for certain customers, additional period
content and associated technology costs. |
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Net Income (Loss) to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
13,006 |
|
|
$ |
(4,581 |
) |
|
$ |
9,052 |
|
|
$ |
(12,151 |
) |
Loss on
discontinued operations |
|
|
56 |
|
|
|
463 |
|
|
|
4,042 |
|
|
|
1,948 |
|
Income
(loss) from continuing operations |
|
|
13,062 |
|
0 |
|
(4,118 |
) |
|
|
13,094 |
|
0 |
|
(10,203 |
) |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Legal settlement and contingencies |
|
|
- |
|
|
|
650 |
|
|
|
- |
|
|
|
650 |
|
Stock-based compensation expense |
|
|
1,478 |
|
|
|
1,875 |
|
|
|
3,230 |
|
|
|
3,923 |
|
Depreciation and amortization expense |
|
|
934 |
|
|
|
1,006 |
|
|
|
1,856 |
|
|
|
2,016 |
|
Other income, net |
|
|
(596 |
) |
|
|
(532 |
) |
|
|
(1,157 |
) |
|
|
(2,122 |
) |
Provision for income taxes |
|
|
205 |
|
|
|
102 |
|
|
|
616 |
|
|
|
842 |
|
Equity in net income of equity method investees |
|
|
(797 |
) |
|
|
- |
|
|
|
(797 |
) |
|
|
- |
|
Adjusted
EBITDA |
|
$ |
14,286 |
|
|
$ |
(1,017 |
) |
|
$ |
16,842 |
|
|
$ |
(4,894 |
) |
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Net Income (Loss) to Free Cash
Flow |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
13,006 |
|
|
$ |
(4,581 |
) |
|
$ |
9,052 |
|
|
$ |
(12,151 |
) |
Loss on
discontinued operations |
|
|
56 |
|
|
|
463 |
|
|
|
4,042 |
|
|
|
1,948 |
|
Income
(Loss) from continuing operations |
|
|
13,062 |
|
|
|
(4,118 |
) |
|
|
13,094 |
|
|
|
(10,203 |
) |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Change in deferred revenue (1) |
|
|
(1,309 |
) |
|
|
6,392 |
|
|
|
9,036 |
|
|
|
13,234 |
|
Change in deferred costs (2) |
|
|
(3,940 |
) |
|
|
(2,659 |
) |
|
|
(1,961 |
) |
|
|
(7,040 |
) |
Changes in other operating assets and liabilities |
|
|
2,240 |
|
|
|
3,036 |
|
|
|
8,722 |
|
|
|
4,302 |
|
Other adjustments (3) |
|
|
2,291 |
|
|
|
2,862 |
|
|
|
5,622 |
|
|
|
4,666 |
|
Net cash
provided by operating activities |
|
|
12,344 |
|
|
|
5,513 |
|
|
|
34,513 |
|
|
|
4,959 |
|
Less: Purchases of property and equipment |
|
|
(617 |
) |
|
|
(346 |
) |
|
|
(1,078 |
) |
|
|
(445 |
) |
Free cash
flow |
|
$ |
11,727 |
|
|
$ |
5,167 |
|
|
$ |
33,435 |
|
|
$ |
4,514 |
|
|
|
|
|
|
|
|
|
|
(1) Consists of product royalties, customized software development
fees, service fees and subscription fees. |
|
|
|
|
(2) Consists primarily of third party content costs and customized
software development expenses. |
|
|
|
|
|
(3) Consist primarily of depreciation and amortization, stock-based
compensation expense and other non-cash items. |
|
|
|
|
Telenav,
Inc. |
|
|
|
|
|
Summarized
Financial Information Depicting the Impact of
Restatement |
|
|
|
|
|
(in
thousands, except per share amounts) |
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019 |
|
|
|
|
|
|
|
|
As Reported(1) |
|
Adjustments |
|
As Adjusted |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
$ |
3,231 |
|
|
$ |
5,702 |
|
|
$ |
8,933 |
|
|
|
|
|
|
|
Total current assets |
|
|
211,281 |
|
|
|
5,702 |
|
|
|
216,983 |
|
|
|
|
|
|
|
Total assets |
|
|
311,842 |
|
|
|
5,702 |
|
|
|
317,544 |
|
|
|
|
|
|
|
Liabilities
and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses |
|
|
57,856 |
|
|
|
(3,674 |
) |
|
|
54,182 |
|
|
|
|
|
|
|
Deferred revenue |
|
|
50,582 |
|
|
|
(166 |
) |
|
|
50,416 |
|
|
|
|
|
|
|
Total current liabilities |
|
|
114,011 |
|
|
|
(3,840 |
) |
|
|
110,171 |
|
|
|
|
|
|
|
Accumulated deficit |
|
|
(92,164 |
) |
|
|
9,542 |
|
|
|
(82,622 |
) |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
|
311,842 |
|
|
|
5,702 |
|
|
|
317,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
Six Months Ended December 31, 2019 |
|
|
As Reported(1) |
|
Adjustments |
|
As Adjusted |
|
As Reported(2) |
|
Adjustments |
|
As Adjusted |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
55,362 |
|
|
$ |
6,181 |
|
|
$ |
61,543 |
|
|
$ |
110,545 |
|
$ |
6,988 |
|
$ |
117,533 |
Services |
|
|
11,984 |
|
|
|
348 |
|
|
|
12,332 |
|
|
|
21,256 |
|
|
1,715 |
|
|
22,971 |
Total revenue |
|
|
67,346 |
|
|
|
6,529 |
|
|
|
73,875 |
|
|
|
131,801 |
|
|
8,703 |
|
|
140,504 |
Gross
profit |
|
|
33,624 |
|
|
|
6,529 |
|
|
|
40,153 |
|
|
|
61,228 |
|
|
8,703 |
|
|
69,931 |
Income from
continuing operations |
|
|
6,533 |
|
|
|
6,529 |
|
|
|
13,062 |
|
|
|
4,391 |
|
|
8,703 |
|
|
13,094 |
Net
income |
|
|
6,477 |
|
|
|
6,529 |
|
|
|
13,006 |
|
|
|
349 |
|
|
8,703 |
|
|
9,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.13 |
|
|
$ |
0.14 |
|
|
$ |
0.27 |
|
|
$ |
0.09 |
|
$ |
0.18 |
|
$ |
0.27 |
Net income |
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.27 |
|
|
|
0.01 |
|
|
0.18 |
|
|
0.19 |
Diluted
income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.13 |
|
|
$ |
0.14 |
|
|
$ |
0.27 |
|
|
$ |
0.09 |
|
$ |
0.18 |
|
$ |
0.27 |
Net income |
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.27 |
|
|
|
0.01 |
|
|
0.17 |
|
|
0.18 |
Weighted
average shares used in computing income per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
48,475 |
|
|
|
- |
|
|
|
48,475 |
|
|
|
48,127 |
|
|
- |
|
|
48,127 |
Diluted |
|
|
48,821 |
|
|
|
- |
|
|
|
48,821 |
|
|
|
49,257 |
|
|
- |
|
|
49,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As
reported in Form 8-K on February 6, 2020. |
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes three
months ended Sept. 30, 2019 as reported in Form 10-Q on Nov. 8,
2019 plus three months ended December 31, 2019 as reported in Form
8-K on Feb. 6, 2020. |
Telenav,
Inc. |
Summarized
Financial Information Depicting the Impact of Restatement of
Non-GAAP Adjustments |
(in
thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenue to Billings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
Six Months Ended December 31, 2019 |
|
|
As Reported(1) |
|
Adjustments |
|
As Adjusted |
|
As Reported(2) |
|
Adjustments |
|
As Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
67,346 |
|
|
$ |
6,529 |
|
|
$ |
73,875 |
|
|
$ |
131,801 |
|
|
$ |
8,703 |
|
|
$ |
140,504 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue |
|
|
(2,920 |
) |
|
|
1,710 |
|
|
|
(1,210 |
) |
|
|
9,202 |
|
|
|
(166 |
) |
|
|
9,036 |
|
Billings |
|
$ |
64,426 |
|
|
$ |
8,239 |
|
|
$ |
72,665 |
|
|
$ |
141,003 |
|
|
$ |
8,537 |
|
|
$ |
149,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
Six Months Ended December 31, 2019 |
|
|
As Reported(1) |
|
Adjustments |
|
As Adjusted |
|
As Reported(2) |
|
Adjustments |
|
As Adjusted |
Net
income |
|
$ |
6,477 |
|
|
$ |
6,529 |
|
|
$ |
13,006 |
|
|
$ |
349 |
|
|
$ |
8,703 |
|
|
$ |
9,052 |
|
Loss on
discontinued operations |
|
|
56 |
|
|
|
- |
|
|
|
56 |
|
|
|
4,042 |
|
|
|
- |
|
|
|
4,042 |
|
Income from
continuing operations |
|
|
6,533 |
|
|
|
6,529 |
|
|
|
13,062 |
|
|
|
4,391 |
|
|
|
8,703 |
|
|
|
13,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,478 |
|
|
|
- |
|
|
|
1,478 |
|
|
|
3,230 |
|
|
|
- |
|
|
|
3,230 |
|
Depreciation and amortization expense |
|
|
934 |
|
|
|
- |
|
|
|
934 |
|
|
|
1,856 |
|
|
|
- |
|
|
|
1,856 |
|
Other income, net |
|
|
(596 |
) |
|
|
- |
|
|
|
(596 |
) |
|
|
(1,157 |
) |
|
|
- |
|
|
|
(1,157 |
) |
Provision for income taxes |
|
|
205 |
|
|
|
- |
|
|
|
205 |
|
|
|
616 |
|
|
|
- |
|
|
|
616 |
|
Equity in net income of equity method investees |
|
|
(797 |
) |
|
|
- |
|
|
|
(797 |
) |
|
|
(797 |
) |
|
|
- |
|
|
|
(797 |
) |
Adjusted
EBITDA |
|
$ |
7,757 |
|
|
$ |
6,529 |
|
|
$ |
14,286 |
|
|
$ |
8,139 |
|
|
$ |
8,703 |
|
|
$ |
16,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Free Cash
Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
Six Months Ended December 31, 2019 |
|
|
As Reported(1) |
|
Adjustments |
|
As Adjusted |
|
As Reported(2) |
|
Adjustments |
|
As Adjusted |
Net
income |
|
$ |
6,477 |
|
|
$ |
6,529 |
|
|
$ |
13,006 |
|
|
$ |
349 |
|
|
$ |
8,703 |
|
|
$ |
9,052 |
|
Loss on
discontinued operations |
|
|
56 |
|
|
|
- |
|
|
|
56 |
|
|
|
4,042 |
|
|
|
- |
|
|
|
4,042 |
|
Income from
continuing operations |
|
|
6,533 |
|
|
|
6,529 |
|
|
|
13,062 |
|
|
|
4,391 |
|
|
|
8,703 |
|
|
|
13,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue (3) |
|
|
(3,019 |
) |
|
|
1,710 |
|
|
|
(1,309 |
) |
|
|
9,202 |
|
|
|
(166 |
) |
|
|
9,036 |
|
Change in deferred costs (4) |
|
|
(3,940 |
) |
|
|
- |
|
|
|
(3,940 |
) |
|
|
(1,961 |
) |
|
|
- |
|
|
|
(1,961 |
) |
Changes in other operating assets and liabilities |
|
|
10,479 |
|
|
|
(8,239 |
) |
|
|
2,240 |
|
|
|
17,259 |
|
|
|
(8,537 |
) |
|
|
8,722 |
|
Other adjustments (5) |
|
|
2,291 |
|
|
|
- |
|
|
|
2,291 |
|
|
|
5,622 |
|
|
|
- |
|
|
|
5,622 |
|
Net cash
provided by operating activities |
|
|
12,344 |
|
|
|
- |
|
|
|
12,344 |
|
|
|
34,513 |
|
|
|
- |
|
|
|
34,513 |
|
Less: Purchases of property and equipment |
|
|
(617 |
) |
|
|
- |
|
|
|
(617 |
) |
|
|
(1,078 |
) |
|
|
- |
|
|
|
(1,078 |
) |
Free cash
flow |
|
$ |
11,727 |
|
|
$ |
- |
|
|
$ |
11,727 |
|
|
$ |
33,435 |
|
|
$ |
- |
|
|
$ |
33,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As reported in
Form 8-K on February 6, 2020. |
(2) Includes three
months ended Sept. 30, 2019 as reported in Form 10-Q on Nov. 8,
2019 plus three months ended December 31, 2019 as reported in Form
8-K on Feb. 6, 2020. |
(3) Consists of
product royalties, customized software development fees, service
fees and subscription fees. |
(4) Consists primarily
of third party content costs and customized software development
expenses. |
(5) Consist primarily
of depreciation and amortization, stock-based compensation expense
and other non-cash items. |
Telenav,
Inc. |
Condensed
Consolidated Balance Sheets |
(in
thousands, except par value) |
(unaudited) |
|
|
September
30, |
|
June
30, |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
|
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
19,278 |
|
|
$ |
27,275 |
|
Short-term investments |
|
|
102,515 |
|
|
|
72,203 |
|
Accounts receivable, net of allowances of $7 and $7 at September
30, 2019 and June 30, 2019, respectively |
|
|
53,271 |
|
|
|
69,781 |
|
Restricted cash |
|
|
2,452 |
|
|
|
1,950 |
|
Deferred costs |
|
|
19,416 |
|
|
|
18,752 |
|
Prepaid expenses and other current assets |
|
|
4,281 |
|
|
|
3,784 |
|
Assets of discontinued operations, non-current |
|
|
1,788 |
|
|
|
6,330 |
|
Total current assets |
|
|
203,001 |
|
|
|
200,075 |
|
Property and
equipment, net |
|
|
5,304 |
|
|
|
5,583 |
|
Operating
lease right-of-use assets |
|
|
9,325 |
|
|
|
- |
|
Deferred
income taxes, non-current |
|
|
798 |
|
|
|
998 |
|
Goodwill and
intangible assets, net |
|
|
15,483 |
|
|
|
15,701 |
|
Deferred
costs, non-current |
|
|
58,379 |
|
|
|
61,050 |
|
Other
assets |
|
|
18,977 |
|
|
|
1,414 |
|
Assets of
discontinued operations, non-current |
|
|
259 |
|
|
|
12,194 |
|
Total assets |
|
$ |
311,526 |
|
|
$ |
297,015 |
|
Liabilities and stockholders’ equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Trade accounts payable |
|
$ |
17,804 |
|
|
$ |
16,061 |
|
Accrued expenses |
|
|
38,365 |
|
|
|
48,899 |
|
Operating lease liabilities |
|
|
3,566 |
|
|
|
- |
|
Deferred revenue |
|
|
41,197 |
|
|
|
31,270 |
|
Income taxes payable |
|
|
635 |
|
|
|
800 |
|
Liabilities of discontinued operations |
|
|
1,876 |
|
|
|
3,373 |
|
Total current liabilities |
|
|
103,443 |
|
|
|
100,403 |
|
Deferred
rent, non-current |
|
|
- |
|
|
|
1,266 |
|
Operating
lease liabilities, non-current |
|
|
7,011 |
|
|
|
- |
|
Deferred
revenue, non-current |
|
|
104,184 |
|
|
|
103,865 |
|
Other
long-term liabilities |
|
|
639 |
|
|
|
811 |
|
Liabilities
of discontinued operations, non-current |
|
|
107 |
|
|
|
30 |
|
Commitments
and contingencies |
|
|
- |
|
|
|
- |
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.001 par value: 50,000 shares authorized; no
shares issued or outstanding |
|
|
- |
|
|
|
- |
|
Common stock, $0.001 par value: 600,000 shares authorized; 48,566
and 46,911 shares issued and outstanding at September 30, 2019 and
June 30, 2019, respectively |
|
|
49 |
|
|
|
47 |
|
Additional paid-in capital |
|
|
192,055 |
|
|
|
182,349 |
|
Accumulated other comprehensive loss |
|
|
(1,729 |
) |
|
|
(1,477 |
) |
Accumulated deficit |
|
|
(94,233 |
) |
|
|
(90,279 |
) |
Total stockholders’ equity |
|
|
96,142 |
|
|
|
90,640 |
|
Total liabilities and stockholders’ equity |
|
$ |
311,526 |
|
|
$ |
297,015 |
|
Telenav,
Inc. |
Condensed
Consolidated Statements of Operations |
(in
thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Revenue: |
|
|
|
|
Product |
|
$ |
55,990 |
|
|
$ |
39,930 |
|
Services |
|
|
10,639 |
|
|
|
6,322 |
|
Total revenue |
|
|
66,629 |
|
|
|
46,252 |
|
Cost of
revenue: |
|
|
|
|
Product |
|
|
31,989 |
|
|
|
23,588 |
|
Services |
|
|
4,862 |
|
|
|
3,954 |
|
Total cost of revenue |
|
|
36,851 |
|
|
|
27,542 |
|
Gross
profit |
|
|
29,778 |
|
|
|
18,710 |
|
Operating
expenses: |
|
|
|
|
Research and development |
|
|
20,663 |
|
|
|
18,492 |
|
Sales and marketing |
|
|
1,946 |
|
|
|
1,703 |
|
General and administrative |
|
|
7,287 |
|
|
|
5,450 |
|
Total operating expenses |
|
|
29,896 |
|
|
|
25,645 |
|
Loss from
operations |
|
|
(118 |
) |
|
|
(6,935 |
) |
Other
income, net |
|
|
561 |
|
|
|
1,590 |
|
Income
(loss) from continuing operations before provision for income
taxes |
|
|
443 |
|
|
|
(5,345 |
) |
Provision
for income taxes |
|
|
411 |
|
|
|
740 |
|
Income
(loss) from continuing operations |
|
|
32 |
|
|
|
(6,085 |
) |
Discontinued
operations: |
|
|
|
|
Income (loss) from operations of Advertising business, net of
tax |
|
|
832 |
|
|
|
(1,485 |
) |
Loss from sale of Advertising business |
|
|
(4,818 |
) |
|
|
- |
|
Loss on
discontinued operations |
|
|
(3,986 |
) |
|
|
(1,485 |
) |
Net
loss |
|
$ |
(3,954 |
) |
|
$ |
(7,570 |
) |
|
|
|
|
|
Basic income
(loss) per share: |
|
|
|
|
Income (loss) from continuing operations |
|
$ |
0.00 |
|
|
$ |
(0.14 |
) |
Loss on discontinued operations |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
Net income (loss) |
|
$ |
(0.08 |
) |
|
$ |
(0.17 |
) |
Diluted
income (loss) per share: |
|
|
|
|
Income (loss) from continuing operations |
|
$ |
0.00 |
|
|
$ |
(0.14 |
) |
Loss on discontinued operations |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
Net income (loss) |
|
$ |
(0.08 |
) |
|
$ |
(0.17 |
) |
Weighted
average shares used in computing income (loss) per share |
|
|
|
|
Basic |
|
|
47,780 |
|
|
|
45,018 |
|
Diluted |
|
|
49,661 |
|
|
|
45,018 |
|
Telenav,
Inc. |
Condensed
Consolidated Statements of Cash Flows |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
Operating activities |
|
|
|
|
Net
loss |
|
$ |
(3,954 |
) |
|
$ |
(7,570 |
) |
Loss on
discontinued operations |
|
|
3,986 |
|
|
|
1,485 |
|
Income
(loss) from continuing operations |
|
|
32 |
|
|
|
(6,085 |
) |
Adjustments
to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Stock-based compensation expense |
|
|
1,752 |
|
|
|
2,048 |
|
Depreciation and amortization |
|
|
922 |
|
|
|
1,010 |
|
Operating lease amortization net of accretion |
|
|
544 |
|
|
|
- |
|
Accretion of net premium on short-term investments |
|
|
12 |
|
|
|
5 |
|
Unrealized gain on non-marketable equity investments |
|
|
- |
|
|
|
(1,259 |
) |
Realized loss on non-marketable equity investments |
|
|
100 |
|
|
|
- |
|
Other |
|
|
1 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
16,355 |
|
|
|
(252 |
) |
Deferred income taxes |
|
|
171 |
|
|
|
198 |
|
Deferred costs |
|
|
1,979 |
|
|
|
(4,381 |
) |
Prepaid expenses and other current assets |
|
|
(502 |
) |
|
|
369 |
|
Other assets |
|
|
28 |
|
|
|
(35 |
) |
Trade accounts payable |
|
|
1,738 |
|
|
|
3,267 |
|
Accrued expenses and other liabilities |
|
|
(10,259 |
) |
|
|
(2,467 |
) |
Income taxes payable |
|
|
(152 |
) |
|
|
149 |
|
Deferred rent |
|
|
- |
|
|
|
37 |
|
Operating lease liabilities |
|
|
(897 |
) |
|
|
- |
|
Deferred revenue |
|
|
10,345 |
|
|
|
6,842 |
|
Net cash provided by (used in) operating activities |
|
|
22,169 |
|
|
|
(554 |
) |
Investing activities |
|
|
|
|
Purchases of property and equipment |
|
|
(461 |
) |
|
|
(99 |
) |
Purchases of short-term investments |
|
|
(41,418 |
) |
|
|
(10,624 |
) |
Purchases of long-term investments |
|
|
(2,000 |
) |
|
|
- |
|
Proceeds from sales and maturities of short-term investments |
|
|
11,052 |
|
|
|
10,865 |
|
Net cash provided by (used in) investing activities |
|
|
(32,827 |
) |
|
|
142 |
|
Financing activities |
|
|
|
|
Proceeds from exercise of stock options |
|
|
8,306 |
|
|
|
24 |
|
Tax withholdings related to net share settlements of restricted
stock units |
|
|
(832 |
) |
|
|
(1,206 |
) |
Net cash provided by (used in) financing activities |
|
|
7,474 |
|
|
|
(1,182 |
) |
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(336 |
) |
|
|
(239 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
|
(3,520 |
) |
|
|
(1,833 |
) |
Net cash used in discontinued operation |
|
|
(3,975 |
) |
|
|
(1,740 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
29,225 |
|
|
|
20,099 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
21,730 |
|
|
$ |
16,526 |
|
Supplemental disclosure of cash flow
information |
|
|
|
|
Income taxes paid, net |
|
$ |
739 |
|
|
$ |
166 |
|
Non-cash investing: Investment in LLC acquired in exchange for sale
of Advertising business |
|
$ |
15,600 |
|
|
$ |
- |
|
Cash flow from discontinued operations: |
|
|
|
|
Net cash used in operating activities |
|
$ |
(3,569 |
) |
|
$ |
(1,740 |
) |
Net cash used in financing activities |
|
|
(406 |
) |
|
|
- |
|
Net cash transferred from continuing operations |
|
|
3,975 |
|
|
|
1,740 |
|
Net change in cash and cash equivalent from discontinued
operation |
|
|
- |
|
|
|
- |
|
Cash and cash equivalent of discontinued operations, beginning of
period |
|
|
- |
|
|
|
- |
|
Cash and cash equivalent of discontinued operations, end of
period |
|
$ |
- |
|
|
$ |
- |
|
Reconciliation of cash, cash equivalents and restricted
cash to the condensed consolidated balance sheets |
|
|
|
|
Cash and cash equivalents |
|
$ |
19,278 |
|
|
$ |
13,596 |
|
Restricted cash |
|
|
2,452 |
|
|
|
2,930 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
21,730 |
|
|
$ |
16,526 |
|
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Revenue to Billings |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
Revenue |
|
$ |
66,629 |
|
$ |
46,252 |
Adjustments: |
|
|
|
|
Change in deferred revenue |
|
|
10,246 |
|
|
6,842 |
Billings |
|
$ |
76,875 |
|
$ |
53,094 |
|
|
|
|
|
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Deferred Revenue to Change in Deferred
Revenue |
Reconciliation of Deferred Costs to Change in Deferred
Costs |
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
Deferred
revenue, end of period |
|
$ |
145,381 |
|
|
$ |
81,380 |
Deferred
revenue, beginning of period |
|
|
135,135 |
|
|
|
74,538 |
Change in
deferred revenue |
|
$ |
10,246 |
|
|
$ |
6,842 |
|
|
|
|
|
Deferred
costs, end of period |
|
$ |
77,795 |
|
|
$ |
62,806 |
Deferred
costs, beginning of period |
|
|
79,802 |
|
|
|
58,425 |
Change in
deferred costs(1) |
|
$ |
(2,007 |
) |
|
$ |
4,381 |
|
|
|
|
|
(1) Deferred costs primarily include costs associated with
third-party content and in connection with certain customized
software solutions, the costs incurred to develop those solutions.
We expect to incur additional costs in the future due to
requirements to provide ongoing map updates and provisioning of
services such as hosting, monitoring, customer support and, for
certain customers, additional period content and associated
technology costs. |
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Net Loss to Adjusted EBITDA |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Net
loss |
|
$ |
(3,954 |
) |
|
$ |
(7,570 |
) |
Loss on
discontinued operations |
|
|
3,986 |
|
|
|
1,485 |
|
Income
(loss) from continuing operations |
|
|
32 |
|
|
|
(6,085 |
) |
|
|
|
|
|
Adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
1,752 |
|
|
|
2,048 |
|
Depreciation and amortization expense |
|
|
922 |
|
|
|
1,010 |
|
Other income, net |
|
|
(561 |
) |
|
|
(1,590 |
) |
Provision for income taxes |
|
|
411 |
|
|
|
740 |
|
Adjusted
EBITDA |
|
$ |
2,556 |
|
|
$ |
(3,877 |
) |
Telenav,
Inc. |
Unaudited
Reconciliation of Non-GAAP Adjustments |
(in
thousands) |
Reconciliation of Net Loss to Free Cash Flow |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Net
loss |
|
$ |
(3,954 |
) |
|
$ |
(7,570 |
) |
Loss on
discontinued operations |
|
|
3,986 |
|
|
|
1,485 |
|
Income
(Loss) from continuing operations |
|
|
32 |
|
|
|
(6,085 |
) |
|
|
|
|
|
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
|
Change in deferred revenue (1) |
|
|
10,345 |
|
|
|
6,842 |
|
Change in deferred costs (2) |
|
|
1,979 |
|
|
|
(4,381 |
) |
Changes in other operating assets and liabilities |
|
|
6,482 |
|
|
|
1,266 |
|
Other adjustments (3) |
|
|
3,331 |
|
|
|
1,804 |
|
Net cash
provided by (used in) operating activities |
|
|
22,169 |
|
|
|
(554 |
) |
Less: Purchases of property and equipment |
|
|
(461 |
) |
|
|
(99 |
) |
Free cash
flow |
|
$ |
21,708 |
|
|
$ |
(653 |
) |
|
|
|
|
|
(1) Consists of product royalties, customized software development
fees, service fees and subscription fees. |
(2) Consists primarily of third party content costs and customized
software development expenses. |
|
(3) Consist primarily of depreciation and amortization, stock-based
compensation expense and other non-cash items. |
Telenav,
Inc. |
Summarized
Financial Information Depicting the Impact of
Restatement |
(in
thousands, except per share amounts) |
(unaudited) |
|
|
|
As of September 30, 2019 |
|
|
As Reported Sept. 30, 2019 Form 10-Q |
|
Adjustments |
|
As Adjusted |
Assets |
|
|
|
|
|
|
Accounts receivable |
|
$ |
52,973 |
|
|
$ |
298 |
|
|
$ |
53,271 |
|
Total current assets |
|
|
202,703 |
|
|
|
298 |
|
|
|
203,001 |
|
Total assets |
|
|
311,228 |
|
|
|
298 |
|
|
|
311,526 |
|
Liabilities
and stockholders' equity |
|
|
|
|
|
|
Deferred revenue |
|
|
43,073 |
|
|
|
(1,876 |
) |
|
|
41,197 |
|
Accumulated deficit |
|
|
(96,407 |
) |
|
|
2,174 |
|
|
|
(94,233 |
) |
Total liabilities and stockholders' equity |
|
|
311,228 |
|
|
|
298 |
|
|
|
311,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
|
As Reported Sept. 30, 2019 Form 10-Q |
|
Adjustments |
|
As Adjusted |
Revenue |
|
|
|
|
|
|
Product |
|
$ |
55,183 |
|
|
$ |
807 |
|
|
$ |
55,990 |
|
Services |
|
|
9,272 |
|
|
|
1,367 |
|
|
|
10,639 |
|
Total revenue |
|
|
64,455 |
|
|
|
2,174 |
|
|
|
66,629 |
|
Gross
profit |
|
|
27,604 |
|
|
|
2,174 |
|
|
|
29,778 |
|
Income
(loss) from continuing operations |
|
|
(2,142 |
) |
|
|
2,174 |
|
|
|
32 |
|
Net income
(loss) |
|
|
(6,128 |
) |
|
|
2,174 |
|
|
|
(3,954 |
) |
|
|
|
|
|
|
|
Income
(loss) from continuing operations per share, basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
0.04 |
|
|
|
- |
|
Net loss per
share, basic and diluted |
|
|
(0.13 |
) |
|
|
0.05 |
|
|
|
(0.08 |
) |
Shares used
in computing income (loss) per share |
|
|
|
|
|
|
Basic |
|
|
47,780 |
|
|
|
|
|
47,780 |
|
Diluted |
|
|
47,780 |
|
|
|
|
|
49,648 |
|
|
|
|
|
|
|
|
Telenav,
Inc. |
Summarized
Financial Information Depicting the Impact of Restatement of
Non-GAAP Adjustments |
(in
thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
Reconciliation of Revenue to Billings |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
|
As Reported Sept. 30, 2019 Form 10-Q |
|
Adjustments |
|
As Adjusted |
|
|
|
|
|
|
|
Revenue |
|
$ |
64,455 |
|
|
$ |
2,174 |
|
|
$ |
66,629 |
|
Adjustments: |
|
|
|
|
|
|
Change in deferred revenue |
|
|
12,122 |
|
|
|
(1,876 |
) |
|
|
10,246 |
|
Billings |
|
$ |
76,577 |
|
|
$ |
298 |
|
|
$ |
76,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
|
As Reported Sept. 30, 2019 Form 10-Q |
|
Adjustments |
|
As Adjusted |
Net income
(loss) |
|
$ |
(6,128 |
) |
|
$ |
2,174 |
|
|
$ |
(3,954 |
) |
Loss on
discontinued operations |
|
|
3,986 |
|
|
|
- |
|
|
|
3,986 |
|
Income
(loss) from continuing operations |
|
|
(2,142 |
) |
|
|
2,174 |
|
|
|
32 |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,752 |
|
|
|
- |
|
|
|
1,752 |
|
Depreciation and amortization expense |
|
|
922 |
|
|
|
- |
|
|
|
922 |
|
Other income, net |
|
|
(561 |
) |
|
|
- |
|
|
|
(561 |
) |
Provision for income taxes |
|
|
411 |
|
|
|
- |
|
|
|
411 |
|
Adjusted
EBITDA |
|
$ |
382 |
|
|
$ |
2,174 |
|
|
$ |
2,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) to Free Cash
Flow |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
|
As Reported Sept. 30, 2019 Form 10-Q |
|
Adjustments |
|
As Adjusted |
Net income
(loss) |
|
$ |
(6,128 |
) |
|
$ |
2,174 |
|
|
$ |
(3,954 |
) |
Loss on
discontinued operations |
|
|
3,986 |
|
|
|
- |
|
|
|
3,986 |
|
Income
(Loss) from continuing operations |
|
|
(2,142 |
) |
|
|
2,174 |
|
|
|
32 |
|
|
|
|
|
|
|
|
Adjustments
to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
Change in deferred revenue (1) |
|
|
12,221 |
|
|
|
(1,876 |
) |
|
|
10,345 |
|
Change in deferred costs (2) |
|
|
1,979 |
|
|
|
- |
|
|
|
1,979 |
|
Changes in other operating assets and liabilities |
|
|
6,780 |
|
|
|
(298 |
) |
|
|
6,482 |
|
Other adjustments (3) |
|
|
3,331 |
|
|
|
- |
|
|
|
3,331 |
|
Net cash
provided by operating activities |
|
|
22,169 |
|
|
|
- |
|
|
|
22,169 |
|
Less: Purchases of property and equipment |
|
|
(461 |
) |
|
|
- |
|
|
|
(461 |
) |
Free cash
flow |
|
$ |
21,708 |
|
|
$ |
- |
|
|
$ |
21,708 |
|
|
|
|
|
|
|
|
(1) Consists of product royalties, customized software development
fees, service fees and subscription fees. |
|
|
(2) Consists primarily of third party content costs and customized
software development expenses. |
|
|
|
(3) Consist primarily of depreciation and amortization, stock-based
compensation expense and other non-cash items. |
|
|
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