Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected car
and location-based platform services, today released its financial
results for the third fiscal quarter ended March 31, 2018 by
issuing this press release and posting a letter to stockholders on
the quarter on its website. Please visit Telenav’s investor
relations website at http://investor.telenav.com to view the Q3
fiscal year 2018 financial results and letter to stockholders.
“We are pleased to deliver a record number of Telenav enabled
cars to the market during the quarter,” said HP Jin, Chairman and
CEO of Telenav. “There are now more than 8 million connected cars
on the road powered by Telenav’s location-based services
platform.”
Financial Highlights for the third quarter ended March
31, 2018
- Total revenue for the third quarter of fiscal 2018
was $13.8 million, compared with $35.1 million in
the same prior year period. As previously announced, the
decline was primarily due to the change in revenue recognition as a
result of the Company’s commencement of offering multi-year
value-added map services in all major markets to Ford®, its largest
customer, effective January 1, 2018, which results in significant
deferral of amounts that would have previously been recognized as
revenue when the vehicle is produced. When Telenav adopts ASC
606 as of July 1, 2018, it expects it will be able to recognize
substantial revenue from Ford as our product is delivered.
- Billings for the third quarter of fiscal 2018 were $58.7
million, compared with $60.2 million in the same prior
year period.
- GAAP net loss for the third quarter of fiscal 2018
was $(30.8) million, compared with a GAAP net loss of $(13.7)
million for the third quarter of fiscal 2017, with the decrease due
primarily to the change in revenue recognition criteria for the
Ford agreement.
- Adjusted EBITDA on billings for the third quarter of fiscal
2018 was a $(4.1) million loss compared with
a $(2.3) million loss in the third quarter of fiscal
2017.
- Ending cash, cash equivalents and short-term investments,
excluding restricted cash, were $88.6 million as
of March 31, 2018. This represented cash and short-term
investments of $1.98 per share, based on 44.7 million
shares of common stock outstanding as of March 31, 2018.
Telenav had no debt as of March 31, 2018.
Recent Business Highlights
- A record 1.4 million Telenav equipped cars were deployed into
the market during the quarter ended March 31, 2018 of which 1.2
million units were capable of connected services
- Ford entered into an agreement to extend Telenav’s offering for
SYNC 3 for calendar years 2019 and 2020 for all current
geographies
- Ford launched Telenav’s connected services across select model
year 2018 SYNC 3 vehicles in Europe and China using its FordPass
mobile phone application
- Fiat Chrysler Automobiles (FCA) launched Telenav’s embedded
navigation solution on Jeep’s 2018 Grand Cherokee, Grand Commander,
Wrangler and Grand Voyager models in China
- Thinknear® by Telenav launched GeolinkTM, a self-serve mobile
advertising platform that utilizes Thinknear’s proven
location-targeting and campaign-optimization technology at
scale
Q4 Fiscal 2018 Business Outlook
For the quarter ending June 30,
2018, Telenav offers the following guidance:
- Total revenue is expected to be $15 to $16
million
- Billings are expected to be $55 to $58
million
- Deferred revenue is expected to increase by $40 to $42
million
- Deferred costs are expected to increase by approximately $19 to
$20 million
- GAAP gross profit is expected to be approximately $6
million
- GAAP gross margin is expected to be approximately 40
percent
- Direct contribution from billings is expected to be
approximately $27 to $28 million
- Direct contribution margin from billings is expected to be
approximately 48 percent
- GAAP operating expenses are expected to
be $34 to $35 million
- GAAP net loss is expected to be $(29) to $(31)
million
- Adjusted EBITDA loss is expected to be $(25) to $(27)
million
- Adjusted EBITDA loss on billings is expected to be $(3.5) to
$(5.5) million
- Automotive is expected to be 40 to 45 percent of total revenue
and 85 percent of billings
- Advertising is expected to be approximately 40 percent of total
revenue and 11 percent of billings
- Weighted average diluted shares outstanding are expected to be
approximately 45.0 million
Subject to anticipated volumes, take rates and timing of model
expansion under Telenav’s various automotive OEM programs,
including the potential impact, if any, from Ford’s recent
announcement of its intention to modify its North American
passenger car portfolio, Telenav anticipates that adjusted EBITDA
on billings will be positive for fiscal 2019.
The above information concerning guidance represents Telenav's
outlook only as of the date hereof, and is subject to change, as a
result of amendments to material contracts and other changes in
business conditions. Telenav undertakes no
obligation to update or revise any financial forecast or other
forward-looking statements, as a result of new developments, or
otherwise.
Conference Call and Quarterly
Commentary
Telenav will host an investor conference call and live webcast
on Thursday, May 3, 2018 at 2:30 p.m. Pacific Time (5:30
p.m. Eastern Time). Management has posted its letter to
stockholders in combination with Telenav’s Third Quarter Fiscal
2018 Financial Results press release on its investor relations
website in lieu of management providing remarks at the start of the
conference call. Instead, management will respond to questions
during the call. To listen to the webcast and view Telenav’s
quarterly commentary, please visit Telenav's investor
relations website at http://investor.telenav.com.
Listeners can also access the conference call by dialing
866-548-4713 (toll-free, domestic only) or 323-794-2093 (domestic
and international toll) and entering pass code 6005339. A replay of
the conference call will be available for two weeks beginning
approximately two hours after its completion. To access the replay,
dial 888-203-1112 (toll-free, domestic only) or 719-457-0820
(domestic and international toll) and enter pass code 6005339.
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, direct
contribution from billings, direct contribution margin from
billings, change in deferred revenue, change in deferred costs,
adjusted EBITDA, adjusted EBITDA on billings 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.
Billings measure GAAP revenue recognized plus the change in
deferred revenue from the beginning to the end of the period.
Direct contribution from billings reflects GAAP gross profit plus
change in deferred revenue less change in deferred costs. Direct
contribution margin from billings reflects direct contribution from
billings divided by billings. Telenav has also provided a
breakdown of the calculation of the change in deferred revenue by
segment, which is added to revenue in calculating its non-GAAP
metric of billings. 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 our
customized software solutions. As deferred revenue and deferred
costs become larger components of its operating results, Telenav
believes these metrics are useful in evaluating cash flows.
Telenav considers billings, direct contribution from billings
and direct contribution margin from billings to be useful metrics
for management and investors because billings drive revenue and
deferred revenue, which is an important indicator of its business.
Telenav believes direct contribution from billings and direct
contribution margin from billings are useful metrics because they
reflect the impact of the contribution over time for such billings,
exclusive of the incremental costs incurred to deliver any related
service obligations. There are a number of limitations
related to the use of billings, direct contribution from billings
and direct contribution margin from billings versus revenue, gross
profit, and gross margin calculated in accordance with GAAP. First,
billings, direct contribution from billings and direct contribution
margin from 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 connected solutions cannot be
fully recognized as revenue in a given period due to requirements
for ongoing provisioning of services such as hosting, monitoring
and customer support, including certain third-party technology and
content license fees as applicable. Accordingly, direct
contribution from billings and direct contribution margin from
billings do not include all costs associated with billings. Second,
Telenav may calculate billings, direct contribution from billings,
and direct contribution margin from billings in a manner that is
different from peer companies that report similar financial
measures, making comparisons between companies more difficult. When
Telenav uses these measures, it attempts to compensate for these
limitations by providing specific information regarding billings,
direct contribution from billings and direct contribution margin
from billings and how they relate to revenue, gross profit and
gross margin calculated in accordance with GAAP.
Adjusted EBITDA measures GAAP net loss excluding the impact of
stock-based compensation expense, depreciation and amortization,
other income (expense), provision (benefit) for income taxes, and
other applicable items such as legal settlements and contingencies,
deferred rent reversal and tenant improvement allowance recognition
due to sublease termination, net of tax and goodwill impairment.
Stock-based compensation expense relates to equity incentive awards
granted to its employees, directors, and consultants. Legal
settlements and contingencies represent settlements and offers made
to settle litigation in which Telenav is a defendant and royalty
disputes. Deferred rent reversal and tenant improvement allowance
recognition represent the reversal of Telenav’s deferred rent
liability and recognition of Telenav’s deferred tenant improvement
allowance, as amortization of these amounts is no longer required
due to the termination of our Santa Clara facility sublease and
subsequent entry into a new lease agreement with our landlord for
this same facility effective September 2017. Goodwill impairment
represents the impairment charge related to Telenav’s Mobile
Navigation segment.
Adjusted EBITDA and adjusted EBITDA on billings are key measures
used by Telenav’s management and board of directors to understand
and evaluate Telenav’s core operating performance and trends, to
prepare and approve our 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. In addition, adjusted
EBITDA is a key financial measure used by the compensation
committee of Telenav’s board of directors in connection with the
development of incentive-based compensation for Telenav’s executive
officers. 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 its management and board of directors.
Adjusted EBITDA on billings measures adjusted EBITDA plus the
effect of changes in deferred revenue and deferred costs. Telenav
believes adjusted EBITDA on billings is a useful measure,
especially in light of the impact it continues to expect on
reported GAAP revenue for certain value-added offerings the company
provides its customers, including Ford map updates. Adjusted EBITDA
and adjusted EBITDA on billings, while generally measures of
profitability, can also represent losses.
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.
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.
In this press release, Telenav has provided guidance for
the fourth quarter of fiscal 2018 on a non-GAAP basis, for
billings, change in deferred revenue, change in deferred costs,
direct contribution from billings, direct contribution margin from
billings, adjusted EBITDA and adjusted EBITDA on billings.
Telenav does not provide reconciliations of its forward-looking
non-GAAP financial measures of billings, change in deferred
revenue, change in deferred costs, direct contribution from
billings, direct contribution margin from billings, adjusted EBITDA
and adjusted EBITDA on billings 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 GAAP net
loss per diluted share and GAAP 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 that are
based on Telenav management's beliefs and assumptions and on
information currently available to its management. Actual
events or results may differ materially from those described in
this document due to a number of risks and uncertainties. These
potential risks and uncertainties include, among others:
Telenav'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 recent announcement regarding the elimination
of various sedans in North America over the near term; Telenav's
success in extending its contracts for current and new generation
of products with its existing OEMs and automotive manufacturers,
particularly Ford; Telenav’s ability to achieve additional design
wins and the delivery dates of automobiles including Telenav's
products; adoption by vehicle purchasers of Scout GPS Link;
Telenav's dependence on a limited number of automotive
manufacturers and OEMs for a substantial portion of its revenue;
reductions in demand for automobiles; potential impacts of OEMs
including competitive capabilities in their vehicles such as Apple
Car-Play and Android Auto; Telenav's ability to grow and scale its
advertising business; Telenav’s ability to develop new advertising
products and technology while also achieving cash flow break even
and ultimately profitability in the advertising business; Telenav
incurring losses and operating expenses in excess of expectations;
failure to reach agreement with customers for awards and contracts
on products and services in which Telenav 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 Telenav's
automotive customers, including inventory procurement and
fulfillment; possible warranty claims, and the impact on consumer
perception of its brand; Telenav's ability to develop and support
products including OpenStreetMap (“OSM”), as well as transition
existing navigation products to OSM and any economic benefit
anticipated from the use of OSM versus proprietary map products;
the potential that Telenav may not be able to realize its deferred
tax assets and may have to take a reserve against them; Telenav’s
reliance on its automotive 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, such as the implementation of ASC 606; and
macroeconomic and political conditions in the U.S. and abroad, in
particular China. Telenav discusses these risks in greater detail
in "Risk factors" and elsewhere in its Form 10-Q for the quarter
ended December 31, 2017 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 our SEC
filings carefully and with the understanding that actual future
results may be materially different from what Telenav expects.
ABOUT TELENAV, INC.
Telenav is a leading provider of connected car and
location-based platform services, focused on transforming life on
the go for people - before, during, and after every drive.
Leveraging our location platform, global brands such as Ford, GM,
Toyota and AT&T deliver custom connected car and mobile
experiences. Fortune 500 advertisers and local advertisers can now
reach millions of users with Telenav’s highly-targeted advertising
platform. 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 2018 Telenav, Inc. All Rights Reserved.
"Telenav," "Scout," “Thinknear” and the Telenav, Scout and
Thinknear logos are registered trademarks 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. TNAV-FTNAV-C
Investor Relations:Michael Look408-990-1232IR@telenav.com
Media:Raphel Finelli408-667-5970media@telenav.com
Telenav, Inc. |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, except par value) |
|
|
|
|
|
|
|
March 31, 2018 |
|
June 30, 2017* |
|
|
(unaudited) |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
|
$ |
17,509 |
|
|
$ |
20,757 |
|
|
Short-term investments |
|
|
71,086 |
|
|
|
77,598 |
|
|
Accounts
receivable, net of allowances of $73 and $75 at March 31, 2018 and
June 30, 2017, respectively |
|
|
51,207 |
|
|
|
57,834 |
|
|
Restricted cash |
|
|
3,207 |
|
|
|
3,401 |
|
|
Income
taxes receivable |
|
|
32 |
|
|
|
34 |
|
|
Deferred
costs |
|
|
23,745 |
|
|
|
11,703 |
|
|
Prepaid
expenses and other current assets |
|
|
3,742 |
|
|
|
3,988 |
|
|
Total
current assets |
|
|
170,528 |
|
|
|
175,315 |
|
|
Property and equipment,
net |
|
|
7,630 |
|
|
|
4,658 |
|
|
Deferred income taxes,
non-current |
|
|
1,027 |
|
|
|
900 |
|
|
Goodwill and intangible
assets, net |
|
|
31,329 |
|
|
|
34,844 |
|
|
Deferred costs,
non-current |
|
|
95,503 |
|
|
|
42,389 |
|
|
Other assets |
|
|
1,878 |
|
|
|
1,454 |
|
|
Total
assets |
|
$ |
307,895 |
|
|
$ |
259,560 |
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Trade
accounts payable |
|
$ |
17,578 |
|
|
$ |
6,151 |
|
|
Accrued
expenses |
|
|
39,577 |
|
|
|
51,528 |
|
|
Deferred
revenue |
|
|
37,843 |
|
|
|
20,345 |
|
|
Income
taxes payable |
|
|
266 |
|
|
|
197 |
|
|
Total
current liabilities |
|
|
95,264 |
|
|
|
78,221 |
|
|
Deferred rent,
non-current |
|
|
1,074 |
|
|
|
996 |
|
|
Deferred revenue,
non-current |
|
|
154,634 |
|
|
|
67,056 |
|
|
Other long-term
liabilities |
|
|
1,116 |
|
|
|
1,139 |
|
|
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; 44,744 and
43,946 shares issued and outstanding at March 31, 2018 and June 30,
2017, respectively |
|
|
45 |
|
|
|
44 |
|
|
Additional paid-in capital |
|
|
165,690 |
|
|
|
159,666 |
|
|
Accumulated other comprehensive loss |
|
|
(1,491 |
) |
|
|
(1,934 |
) |
|
Accumulated deficit |
|
|
(108,437 |
) |
|
|
(45,628 |
) |
|
Total
stockholders’ equity |
|
|
55,807 |
|
|
|
112,148 |
|
|
Total
liabilities and stockholders’ equity |
|
$ |
307,895 |
|
|
$ |
259,560 |
|
|
|
|
|
*Derived
from audited consolidated financial statements as of and for the
year ended June 30, 2017. |
|
|
Telenav, Inc. |
|
Condensed Consolidated Statements of
Operations |
|
(in thousands, except per share
amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
Product |
|
$ |
4,014 |
|
|
$ |
24,426 |
|
|
$ |
53,285 |
|
|
$ |
91,653 |
|
|
Services |
|
|
9,809 |
|
|
|
10,639 |
|
|
|
36,276 |
|
|
|
37,640 |
|
|
Total
revenue |
|
|
13,823 |
|
|
|
35,065 |
|
|
|
89,561 |
|
|
|
129,293 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
Product |
|
|
3,105 |
|
|
|
13,174 |
|
|
|
32,832 |
|
|
|
53,533 |
|
|
Services |
|
|
5,115 |
|
|
|
4,493 |
|
|
|
18,546 |
|
|
|
16,337 |
|
|
Total
cost of revenue |
|
|
8,220 |
|
|
|
17,667 |
|
|
|
51,378 |
|
|
|
69,870 |
|
|
Gross profit |
|
|
5,603 |
|
|
|
17,398 |
|
|
|
38,183 |
|
|
|
59,423 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
22,212 |
|
|
|
19,106 |
|
|
|
65,197 |
|
|
|
53,425 |
|
|
Sales and
marketing |
|
|
5,654 |
|
|
|
5,980 |
|
|
|
15,854 |
|
|
|
16,525 |
|
|
General
and administrative |
|
|
5,618 |
|
|
|
5,485 |
|
|
|
16,343 |
|
|
|
17,848 |
|
|
Goodwill
impairment |
|
|
2,666 |
|
|
|
- |
|
|
|
2,666 |
|
|
|
- |
|
|
Legal
settlement and contingencies |
|
|
115 |
|
|
|
- |
|
|
|
425 |
|
|
|
6,424 |
|
|
Total
operating expenses |
|
|
36,265 |
|
|
|
30,571 |
|
|
|
100,485 |
|
|
|
94,222 |
|
|
Loss from
operations |
|
|
(30,662 |
) |
|
|
(13,173 |
) |
|
|
(62,302 |
) |
|
|
(34,799 |
) |
|
Other income, net |
|
|
229 |
|
|
|
142 |
|
|
|
400 |
|
|
|
1,152 |
|
|
Loss before provision
for income taxes |
|
|
(30,433 |
) |
|
|
(13,031 |
) |
|
|
(61,902 |
) |
|
|
(33,647 |
) |
|
Provision for income
taxes |
|
|
330 |
|
|
|
663 |
|
|
|
611 |
|
|
|
805 |
|
|
Net loss |
|
$ |
(30,763 |
) |
|
$ |
(13,694 |
) |
|
$ |
(62,513 |
) |
|
$ |
(34,452 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.69 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.41 |
) |
|
$ |
(0.80 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computing net loss per share: |
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
44,637 |
|
|
|
43,528 |
|
|
|
44,396 |
|
|
|
43,189 |
|
|
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
|
Condensed Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Nine Months Ended March
31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
Net loss |
|
$ |
(62,513 |
) |
|
$ |
(34,452 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
2,476 |
|
|
|
1,886 |
|
|
Deferred
rent reversal due to lease termination |
|
|
(538 |
) |
|
|
- |
|
|
Tenant
improvement allowance recognition due to lease termination |
|
|
(582 |
) |
|
|
- |
|
|
Accretion
of net premium on short-term investments |
|
|
156 |
|
|
|
326 |
|
|
Stock-based compensation expense |
|
|
7,614 |
|
|
|
7,154 |
|
|
Goodwill
impairment |
|
|
2,666 |
|
|
|
- |
|
|
Loss
(gain) on disposal of property and equipment |
|
|
13 |
|
|
|
(3 |
) |
|
Bad debt
expense |
|
|
(17 |
) |
|
|
149 |
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
Accounts
receivable |
|
|
6,706 |
|
|
|
(6,227 |
) |
|
Deferred
income taxes |
|
|
(68 |
) |
|
|
219 |
|
|
Restricted cash |
|
|
194 |
|
|
|
1,184 |
|
|
Income
taxes receivable |
|
|
2 |
|
|
|
41 |
|
|
Deferred
costs |
|
|
(65,156 |
) |
|
|
(24,140 |
) |
|
Prepaid
expenses and other current assets |
|
|
177 |
|
|
|
1,090 |
|
|
Other
assets |
|
|
(614 |
) |
|
|
386 |
|
|
Trade
accounts payable |
|
|
11,398 |
|
|
|
5,774 |
|
|
Accrued
expenses and other liabilities |
|
|
(12,079 |
) |
|
|
(2,369 |
) |
|
Income
taxes payable |
|
|
64 |
|
|
|
200 |
|
|
Deferred
rent |
|
|
1,145 |
|
|
|
49 |
|
|
Deferred
revenue |
|
|
105,076 |
|
|
|
37,815 |
|
|
Net cash
used in operating activities |
|
|
(3,880 |
) |
|
|
(10,918 |
) |
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
Purchases
of property and equipment |
|
|
(4,572 |
) |
|
|
(867 |
) |
|
Purchases
of short-term investments |
|
|
(42,849 |
) |
|
|
(51,258 |
) |
|
Proceeds
from sales and maturities of short-term investments |
|
|
48,690 |
|
|
|
62,468 |
|
|
Proceeds
from sales of long-term investments |
|
|
- |
|
|
|
246 |
|
|
Net cash
provided by investing activities |
|
|
1,269 |
|
|
|
10,589 |
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
Proceeds
from exercise of stock options |
|
|
463 |
|
|
|
2,354 |
|
|
Tax
withholdings related to net share settlements of restricted stock
units |
|
|
(2,052 |
) |
|
|
(2,163 |
) |
|
Net cash
provided by (used in) financing activities |
|
|
(1,589 |
) |
|
|
191 |
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
952 |
|
|
|
(448 |
) |
|
Net
decrease in cash and cash equivalents |
|
|
(3,248 |
) |
|
|
(586 |
) |
|
Cash and
cash equivalents, at beginning of period |
|
|
20,757 |
|
|
|
21,349 |
|
|
Cash and
cash equivalents, at end of period |
|
$ |
17,509 |
|
|
$ |
20,763 |
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
Income
taxes paid, net |
|
$ |
803 |
|
|
$ |
1,861 |
|
|
|
|
|
|
|
|
Telenav, Inc. |
Condensed Consolidated Segment
Summary |
(in thousands, except
percentages) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Automotive |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
5,808 |
|
|
$ |
25,476 |
|
|
$ |
57,950 |
|
|
$ |
94,487 |
|
Cost of
revenue |
|
|
4,616 |
|
|
|
14,112 |
|
|
|
36,917 |
|
|
|
56,095 |
|
Gross
profit |
|
$ |
1,192 |
|
|
$ |
11,364 |
|
|
$ |
21,033 |
|
|
$ |
38,392 |
|
Gross
margin |
|
|
21 |
% |
|
|
45 |
% |
|
|
36 |
% |
|
|
41 |
% |
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
4,811 |
|
|
$ |
5,284 |
|
|
$ |
21,168 |
|
|
$ |
20,037 |
|
Cost of
revenue |
|
|
2,174 |
|
|
|
2,224 |
|
|
|
9,988 |
|
|
|
9,669 |
|
Gross
profit |
|
$ |
2,637 |
|
|
$ |
3,060 |
|
|
$ |
11,180 |
|
|
$ |
10,368 |
|
Gross
margin |
|
|
55 |
% |
|
|
58 |
% |
|
|
53 |
% |
|
|
52 |
% |
|
|
|
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
3,204 |
|
|
$ |
4,305 |
|
|
$ |
10,443 |
|
|
$ |
14,769 |
|
Cost of
revenue |
|
|
1,430 |
|
|
|
1,331 |
|
|
|
4,473 |
|
|
|
4,106 |
|
Gross
profit |
|
$ |
1,774 |
|
|
$ |
2,974 |
|
|
$ |
5,970 |
|
|
$ |
10,663 |
|
Gross
margin |
|
|
55 |
% |
|
|
69 |
% |
|
|
57 |
% |
|
|
72 |
% |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
13,823 |
|
|
$ |
35,065 |
|
|
$ |
89,561 |
|
|
$ |
129,293 |
|
Cost of
revenue |
|
|
8,220 |
|
|
|
17,667 |
|
|
|
51,378 |
|
|
|
69,870 |
|
Gross
profit |
|
$ |
5,603 |
|
|
$ |
17,398 |
|
|
$ |
38,183 |
|
|
$ |
59,423 |
|
Gross
margin |
|
|
41 |
% |
|
|
50 |
% |
|
|
43 |
% |
|
|
46 |
% |
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
Unaudited Reconciliation of Non-GAAP
Adjustments |
(in thousands) |
|
|
|
|
|
|
|
|
|
Reconciliation of Revenue to
Billings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Automotive |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
5,808 |
|
$ |
25,476 |
|
|
$ |
57,950 |
|
|
$ |
94,487 |
|
Adjustment: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
44,855 |
|
|
25,123 |
|
|
|
105,302 |
|
|
|
37,930 |
|
Billings |
|
$ |
50,663 |
|
$ |
50,599 |
|
|
$ |
163,252 |
|
|
$ |
132,417 |
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
4,811 |
|
$ |
5,284 |
|
|
$ |
21,168 |
|
|
$ |
20,037 |
|
Adjustment: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Billings |
|
$ |
4,811 |
|
$ |
5,284 |
|
|
$ |
21,168 |
|
|
$ |
20,037 |
|
|
|
|
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
3,204 |
|
$ |
4,305 |
|
|
$ |
10,443 |
|
|
$ |
14,769 |
|
Adjustment: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
25 |
|
|
(36 |
) |
|
|
(226 |
) |
|
|
(115 |
) |
Billings |
|
$ |
3,229 |
|
$ |
4,269 |
|
|
$ |
10,217 |
|
|
$ |
14,654 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
13,823 |
|
$ |
35,065 |
|
|
$ |
89,561 |
|
|
$ |
129,293 |
|
Adjustment: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
44,880 |
|
|
25,087 |
|
|
|
105,076 |
|
|
|
37,815 |
|
Billings |
|
$ |
58,703 |
|
$ |
60,152 |
|
|
$ |
194,637 |
|
|
$ |
167,108 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive |
|
Advertising |
|
Mobile Navigation |
|
Total |
|
|
|
Three Months Ended March
31, |
|
Three Months Ended March
31, |
|
Three Months Ended March
31, |
|
Three Months Ended March
31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
Deferred revenue, March
31 |
|
$ |
191,819 |
|
$ |
60,083 |
|
$ |
- |
|
$ |
- |
|
$ |
658 |
|
|
$ |
1,101 |
|
|
$ |
192,477 |
|
$ |
61,184 |
|
Deferred revenue,
December 31 |
|
|
146,964 |
|
|
34,960 |
|
|
- |
|
|
- |
|
|
633 |
|
|
|
1,137 |
|
|
|
147,597 |
|
|
36,097 |
|
Change in deferred
revenue |
|
$ |
44,855 |
|
$ |
25,123 |
|
$ |
- |
|
$ |
- |
|
$ |
25 |
|
|
$ |
(36 |
) |
|
$ |
44,880 |
|
$ |
25,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred costs, March
31 |
|
$ |
119,248 |
|
$ |
36,216 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
119,248 |
|
$ |
36,216 |
|
Deferred costs,
December 31 |
|
|
94,907 |
|
|
18,780 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
94,907 |
|
|
18,780 |
|
Change in deferred
costs |
|
$ |
24,341 |
|
$ |
17,436 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
24,341 |
|
$ |
17,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive |
|
Advertising |
|
Mobile
Navigation |
|
Total |
|
|
|
Nine Months
Ended March
31, |
|
Nine Months
Ended March
31, |
|
Nine Months
Ended March
31, |
|
Nine Months
Ended March
31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
Deferred revenue, March
31 |
|
$ |
191,819 |
|
$ |
60,083 |
|
$ |
- |
|
$ |
- |
|
$ |
658 |
|
|
$ |
1,101 |
|
|
$ |
192,477 |
|
$ |
61,184 |
|
Deferred revenue, June
30 |
|
|
86,517 |
|
|
22,153 |
|
|
- |
|
|
- |
|
|
884 |
|
|
|
1,216 |
|
|
|
87,401 |
|
|
23,369 |
|
Change in deferred
revenue |
|
$ |
105,302 |
|
$ |
37,930 |
|
$ |
- |
|
$ |
- |
|
$ |
(226 |
) |
|
$ |
(115 |
) |
|
$ |
105,076 |
|
$ |
37,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred costs, March
31 |
|
$ |
119,248 |
|
$ |
36,216 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
119,248 |
|
$ |
36,216 |
|
Deferred costs, June
30 |
|
|
54,092 |
|
|
12,076 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
54,092 |
|
|
12,076 |
|
Change in deferred
costs |
|
$ |
65,156 |
|
$ |
24,140 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
65,156 |
|
$ |
24,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
|
Unaudited Reconciliation of Non-GAAP
Adjustments |
|
(in thousands, except
percentages) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Gross Profit to Direct
Contribution from Billings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Automotive |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
1,192 |
|
|
$ |
11,364 |
|
|
$ |
21,033 |
|
|
$ |
38,392 |
|
|
Gross
margin |
|
|
21 |
% |
|
|
45 |
% |
|
|
36 |
% |
|
|
41 |
% |
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
44,855 |
|
|
|
25,123 |
|
|
|
105,302 |
|
|
|
37,930 |
|
|
Change in
deferred costs(1) |
|
|
(24,341 |
) |
|
|
(17,436 |
) |
|
|
(65,156 |
) |
|
|
(24,140 |
) |
|
Net
change |
|
|
20,514 |
|
|
|
7,687 |
|
|
|
40,146 |
|
|
|
13,790 |
|
|
Direct
Contribution from billings(1) |
|
$ |
21,706 |
|
|
$ |
19,051 |
|
|
$ |
61,179 |
|
|
$ |
52,182 |
|
|
Direct
Contribution Margin from billings(1) |
|
|
43 |
% |
|
|
38 |
% |
|
|
37 |
% |
|
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
2,637 |
|
|
$ |
3,060 |
|
|
$ |
11,180 |
|
|
$ |
10,368 |
|
|
Gross
margin |
|
|
55 |
% |
|
|
58 |
% |
|
|
53 |
% |
|
|
52 |
% |
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Change in
deferred costs(1) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
change |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Direct
Contribution from billings(1) |
|
$ |
2,637 |
|
|
$ |
3,060 |
|
|
$ |
11,180 |
|
|
$ |
10,368 |
|
|
Direct
Contribution Margin from billings(1) |
|
|
55 |
% |
|
|
58 |
% |
|
|
53 |
% |
|
|
52 |
% |
|
|
|
|
|
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
1,774 |
|
|
$ |
2,974 |
|
|
$ |
5,970 |
|
|
$ |
10,663 |
|
|
Gross
margin |
|
|
55 |
% |
|
|
69 |
% |
|
|
57 |
% |
|
|
72 |
% |
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
25 |
|
|
|
(36 |
) |
|
|
(226 |
) |
|
|
(115 |
) |
|
Change in
deferred costs(1) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
change |
|
|
25 |
|
|
|
(36 |
) |
|
|
(226 |
) |
|
|
(115 |
) |
|
Direct
Contribution from billings(1) |
|
$ |
1,799 |
|
|
$ |
2,938 |
|
|
$ |
5,744 |
|
|
$ |
10,548 |
|
|
Direct
Contribution Margin from billings(1) |
|
|
56 |
% |
|
|
69 |
% |
|
|
56 |
% |
|
|
72 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
5,603 |
|
|
$ |
17,398 |
|
|
$ |
38,183 |
|
|
$ |
59,423 |
|
|
Gross
margin |
|
|
41 |
% |
|
|
50 |
% |
|
|
43 |
% |
|
|
46 |
% |
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
44,880 |
|
|
|
25,087 |
|
|
|
105,076 |
|
|
|
37,815 |
|
|
Change in
deferred costs(1) |
|
|
(24,341 |
) |
|
|
(17,436 |
) |
|
|
(65,156 |
) |
|
|
(24,140 |
) |
|
Net
change |
|
|
20,539 |
|
|
|
7,651 |
|
|
|
39,920 |
|
|
|
13,675 |
|
|
Direct
Contribution from billings(1) |
|
$ |
26,142 |
|
|
$ |
25,049 |
|
|
$ |
78,103 |
|
|
$ |
73,098 |
|
|
Direct
Contribution Margin from billings(1) |
|
|
45 |
% |
|
|
42 |
% |
|
|
40 |
% |
|
|
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 provisioning of services such as
hosting, monitoring and customer support, including certain third
party technology and content license fees, as applicable.
Accordingly, direct contribution from billings and direct
contribution margin from billings do not reflect all costs
associated with billings. |
|
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
|
Unaudited Reconciliation of Non-GAAP
Adjustments |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Adjusted EBITDA
and Adjusted EBITDA on Billings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(30,763 |
) |
|
$ |
(13,694 |
) |
|
$ |
(62,513 |
) |
|
$ |
(34,452 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Goodwill
impairment |
|
|
2,666 |
|
|
|
- |
|
|
|
2,666 |
|
|
|
- |
|
|
Legal
settlement and contingencies |
|
|
115 |
|
|
|
- |
|
|
|
425 |
|
|
|
6,424 |
|
|
Deferred
rent reversal due to lease termination |
|
|
- |
|
|
|
- |
|
|
|
(538 |
) |
|
|
- |
|
|
Tenant
improvement allowance recognition due to lease termination |
|
|
- |
|
|
|
- |
|
|
|
(582 |
) |
|
|
- |
|
|
Stock-based compensation expense |
|
|
2,246 |
|
|
|
2,625 |
|
|
|
7,614 |
|
|
|
7,154 |
|
|
Depreciation and amortization expense |
|
|
963 |
|
|
|
626 |
|
|
|
2,476 |
|
|
|
1,886 |
|
|
Other
income (expense), net |
|
|
(229 |
) |
|
|
(142 |
) |
|
|
(400 |
) |
|
|
(1,152 |
) |
|
Provision
for income taxes |
|
|
330 |
|
|
|
663 |
|
|
|
611 |
|
|
|
805 |
|
|
Adjusted EBITDA |
|
|
(24,672 |
) |
|
|
(9,922 |
) |
|
|
(50,241 |
) |
|
|
(19,335 |
) |
|
|
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
44,880 |
|
|
|
25,087 |
|
|
|
105,076 |
|
|
|
37,815 |
|
|
Change in
deferred costs(1) |
|
|
(24,341 |
) |
|
|
(17,436 |
) |
|
|
(65,156 |
) |
|
|
(24,140 |
) |
|
Adjusted EBITDA on
billings(1) |
|
$ |
(4,133 |
) |
|
$ |
(2,271 |
) |
|
$ |
(10,321 |
) |
|
$ |
(5,660 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We
expect to incur additional costs in the future due to requirements
to provide ongoing provisioning of services such as hosting,
monitoring and customer support. Accordingly, adjusted EBITDA
on billings does not reflect all costs associated with
billings. |
|
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
Unaudited Reconciliation of Non-GAAP
Adjustments |
(in thousands) |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Free Cash
Flow |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(30,763 |
) |
|
$ |
(13,694 |
) |
|
$ |
(62,513 |
) |
|
$ |
(34,452 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Change in
deferred revenue (1) |
|
|
44,880 |
|
|
|
25,087 |
|
|
|
105,076 |
|
|
|
37,815 |
|
Change in
deferred costs (2) |
|
|
(24,341 |
) |
|
|
(17,436 |
) |
|
|
(65,156 |
) |
|
|
(24,140 |
) |
Changes
in other operating assets and liabilities |
|
|
3,620 |
|
|
|
(5,339 |
) |
|
|
6,925 |
|
|
|
347 |
|
Other
adjustments (3) |
|
|
5,871 |
|
|
|
3,363 |
|
|
|
11,788 |
|
|
|
9,512 |
|
Net cash used in
operating activities |
|
|
(733 |
) |
|
|
(8,019 |
) |
|
|
(3,880 |
) |
|
|
(10,918 |
) |
Less:
Purchases of property and equipment |
|
|
(1,222 |
) |
|
|
(336 |
) |
|
|
(4,572 |
) |
|
|
(867 |
) |
Free cash flow |
|
$ |
(1,955 |
) |
|
$ |
(8,355 |
) |
|
$ |
(8,452 |
) |
|
$ |
(11,785 |
) |
|
|
|
|
|
|
|
|
|
(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 (NASDAQ:TNAV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Telenav (NASDAQ:TNAV)
Historical Stock Chart
From Apr 2023 to Apr 2024