Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected car
and location-based products and services, today issued the
following letter to shareholders:
Dear Fellow Shareholders,
As the global COVID-19 pandemic continues to evolve, we want to
address the current situation. First and foremost, our top priority
is the health and safety of our employees and their families, as
well as our customers and partners. Our hearts go out to everyone
who has been affected by this public health emergency, whether
directly or indirectly.
Despite the challenges we face ahead, we believe we will be able
to continue to deliver our products to our customers, without
compromising our employees’ safety. Like many companies, we have
put in place work-from-home procedures. We believe our employees
have the necessary tools and technology to remain connected and
productive while working from home offices around the world in the
United States, China, Japan, South Korea, Germany and Romania.
China is returning to a normal routine and more than half the
employees having returned to the office beginning last week. We
believe these cumulative efforts should allow us to maintain our
project schedules and timelines.
There are many uncertainties and we expect to see continued
impact from the coronavirus pandemic. Our revenue, like most, if
not all, automotive-related businesses, depends upon the volume of
new vehicles being produced. The recently announced shutdown of
manufacturing operations by Ford, GM and other automobile
manufacturer partners will negatively impact our revenue and
operating results while they continue and until they resume full
production.
However, despite the impact of the COVID-19 pandemic on the auto
industry, and the larger global economy, we do not see substantial
impact to our financial results for our fiscal third quarter ended
March 31, 2020. We expect our operating results for the quarter to
be within the guidance range we provided on February 12, 2020, with
the exception of billings which we now estimate for the quarter
will be between $61.5 million and $63.5 million, approximately 2%
lower than the prior range of $62.5 million to $64.5 million.
We will continue to closely monitor demand and sales amongst our
OEM partners, engaging with them on a daily basis to gauge future
OEM production levels and demand for our products.
Prior to this global pandemic, we actively strengthened our
business by improving our gross margins, enhancing our cost
controls and generating strong cash flow. Our cash increased over
the past year from $86 million to $129 million at December 31,
2019. We expect to have cash, cash equivalents and short-term
investments totaling approximately $120 million as of March 31,
2020. These amounts exclude restricted cash held at the end of the
quarter, but do reflect approximately $11 million we used in the
quarter for investments and share repurchases. We believe our cash
position will enable us to successfully navigate through this
uncertain period.
In this time of uncertainty, we look forward to providing you
further updates on our progress.
Our management team has the experience, confidence and strategy
to drive through challenging times. We will continue to maintain a
tight focus on costs and operations to manage our business
responsibly considering the continuing economic environment.
Stay safe and healthy.
Sincerely,
HP_________________________________
Forward Looking Statements
This stockholder letter 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, and other matters. Any
forward-looking statement made in this stockholder letter 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 impact of the COVID-19 on
business activity, including but not limited to the shutdown of
manufacturing operations by Ford, GM and other automobile
manufacturer customers, consumer demand for new vehicles and the
Company’s operations; when Ford, GM and other automobile
manufacturer partners will resume partial or full production and
the impact the continued period of reduced volume of new vehicles
being produced will have our revenue and operating results; the
Company’s ability to achieve future revenue currently estimated
under customer engagements, including 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 manage its
operations and expenses and generate and maintain levels of cash to
sustain its operations; the Company’s ability to maintain
operations and project schedules through work-from-home procedures
and resources; whether the Company’s current and future cash will
enable it to maintain current or minimum operations over future
periods; 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.
Copyright 2020 Telenav, Inc. All Rights Reserved.
Telenav and the “Telenav” logo are trademarks of Telenav, Inc.
All rights reserved. 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.
TNAV-F
Investor Relations:Bishop IRMike
Bishop415-894-9633IR@telenav.com
Media:Raphel Finelli408-667-5970raphelf@telenav.com
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