Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected car
and location-based platform services, today announced its financial
results for the first fiscal quarter ended September 30, 2017.
Financial Highlights for the first quarter ended
September 30, 2017
- Total revenue for the first quarter of fiscal 2018
was $36.7 million, compared with $42.2 million in
the same prior year period.
- Billings for the first quarter of fiscal 2018 were $65.8
million, compared with $47.3 million in the same prior
year period.
- Automotive revenue for the first quarter of fiscal 2018
was $25.3 million, or 69 percent of total revenue, compared
with $30.3 million, or 72 percent of total revenue, for the
first quarter of fiscal 2017.
- Advertising revenue for the first quarter of fiscal 2018
was $7.6 million, or 21 percent of total revenue, compared
with $6.5 million, or 15 percent of total revenue, for the first
quarter of fiscal 2017.
- Deferred revenue for the first quarter of fiscal 2018 increased
by $29.1 million from the prior quarter to $116.5 million.
- Deferred costs for the first quarter of fiscal 2018 increased
by $20.0 million from the prior quarter to $74.1 million.
- Operating expenses for the first quarter of fiscal 2018
were $31.6 million, compared with $28.8 million in
the first quarter of fiscal 2017. Our first quarter fiscal 2018
operating expenses are net of a one-time $1.1 million rent and
depreciation credit and approximately $1.5 million in capitalized
deferred software development costs;
- GAAP net loss for the first quarter of fiscal 2018
was ($16.1) million, or ($0.37) per basic and diluted share,
compared with a GAAP net loss of ($9.3) million, or ($0.22) per
basic and diluted share, for the first quarter of fiscal 2017.
- Adjusted EBITDA for the first quarter of fiscal 2018 was
a ($13.5) million loss compared with a ($6.8)
million loss in the first quarter of fiscal 2017. In
each period, adjusted EBITDA reflects our GAAP net loss adjusted
for the impact of stock-based compensation expense, depreciation
and amortization expense, interest and other income (expense),
provision (benefit) for income taxes, and other applicable items
such as legal settlements and contingencies, and deferred rent
reversal and tenant improvement allowance recognition resulting
from lease termination.
- Free cash flow for the fourth first quarter of fiscal 2018 was
($6.1) million, compared with ($6.1) million in the first quarter
of fiscal 2017.
- Ending cash, cash equivalents and short-term investments,
excluding restricted cash, were $91.7 million as
of September 30, 2017. This represented cash and short-term
investments of $2.07 per share, based on 44.3 million
shares of common stock outstanding as of September 30,
2017. We had no debt as of September 30, 2017.
Business Outlook
For the quarter ending December 31,
2017, Telenav offers the following guidance.
- Total revenue is expected to be $38 to $40
million;
- Automotive revenue is expected to be 69 to 72 percent of total
revenue;
- Advertising revenue is expected to be approximately 22 percent
of total revenue;
- Billings are expected to be $65 to $68
million;
- Deferred revenue is expected to increase by approximately $27
to $28 million;
- Deferred costs are expected to increase by approximately $20
million;
- GAAP gross margin is expected to be approximately 42.5
percent;
- GAAP operating expenses are expected to
be $32.5 to $33.5 million;
- GAAP net loss is expected to be ($15.5) to ($16.5)
million;
- Adjusted EBITDA loss is expected to range from ($12)
to ($13) million; and
- Weighted average diluted shares outstanding are expected to be
approximately 44.5 million.
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.
Appointment of Randy L. Ortiz to Board of
Directors
Telenav has appointed Randy L. Ortiz to the Board of Directors,
effective October 31, 2017. The Telenav Board of Directors
has determined that Mr. Ortiz is independent. Mr. Ortiz will serve
as a Class IIII director and his term ends at the 2018 Annual
Meeting.
Mr. Ortiz is a recognized auto industry veteran with more than
30 years of experience. Most recently, Mr. Ortiz served as
President and Chief Executive Officer of the LoJack Corporation
(NASDAQ:LOJN) from November 2011 until March 2016. Mr. Ortiz also
served as the Chief Executive Officer of Carmoza LLC, an auto
transport services company, from November 2010 to October 2011, and
as a director of Carmoza LLC from April 2010 to October 2011. From
2002 until his retirement in 2010, Mr. Ortiz held a variety of
senior executive positions at Ford Motor Company. He served as
Executive Director and General Manager of Ford’s Worldwide Export
Operations from 2002 to 2005, General Manager of Sales for Ford’s
Customer Service Division in 2006, and General Manager at Ford and
Lincoln-Mercury Sales Operations from 2007 until March 2010, and
various other management positions from 1982 through 2002.
Conference Call and Quarterly
Commentary
The company will host an investor conference call and live
webcast on Thursday, November 2, 2017 at 2:30 p.m. Pacific
Time (5:30 p.m. Eastern Time). The listen to the webcast and
view the company’s quarterly commentary, please
visit Telenav's investor relations website
at http://investor.telenav.com. Listeners can also
access the conference call by dialing 877-397-0292 (toll-free,
domestic only) or 719-884-1604 (domestic and international toll)
and entering pass code 1960869. 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 1960869.
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 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.
We believe 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
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,
and deferred rent reversal and tenant improvement allowance
recognition due to sublease termination, 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 and offers made to settle
patent litigation cases in which Telenav is a defendant and royalty
disputes. Deferred rent reversal and tenant improvement allowance
recognition represent the reversal of our deferred rent liability
and recognition of our 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. Adjusted EBITDA, while generally
a measure of profitability, can also represent a loss.
Adjusted EBITDA is a key measure used by our management and
board of directors to understand and evaluate our core operating
performance and trends, to prepare and approve our annual budget
and to develop short- and long-term operational plans. In
particular, we believe that the exclusion of the expenses
eliminated in calculating adjusted EBITDA can provide a useful
measure for period-to-period comparisons of our core business. In
addition, adjusted EBITDA is a key financial measure used by the
compensation committee of our board of directors in connection with
the development of incentive-based compensation for our executive
officers. Accordingly, we believe that adjusted EBITDA generally
provides useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our 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.
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
second quarter of fiscal 2018 on a non-GAAP basis, for billings and
adjusted EBITDA. Telenav does not provide reconciliations of
its forward-looking non-GAAP financial measures of billings, and
adjusted EBITDA 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;
Telenav's success in extending its contracts for current and new
generation of products with our existing OEMs and automotive
manufacturers, particularly Ford; achieving 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; exposure from the potential impairment of the carrying value
of certain goodwill and intangible assets within our mobile
navigation business unit where revenue continues to decline;
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; 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-K for the year ended June 30, 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 2017 Telenav, Inc. All Rights Reserved.
"Telenav," "Scout," and the Telenav and Scout 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-F
TNAV-C
Investor Relations:
Michael Look408-990-1232IR@telenav.com
Media:
Raphel Finelli408-667-5970media@telenav.com
|
Telenav, Inc. |
Consolidated Balance Sheets |
(in thousands, except par value) |
|
|
|
|
|
September 30,
2017 |
|
June 30, 2017* |
|
(unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and
cash equivalents |
$ |
17,463 |
|
|
$ |
20,757 |
|
Short-term investments |
|
74,224 |
|
|
|
77,598 |
|
Accounts
receivable, net of allowances of $111 and $75 at September 30, 2017
and June 30, 2017, respectively |
|
59,930 |
|
|
|
57,834 |
|
Restricted cash |
|
3,403 |
|
|
|
3,401 |
|
Income
taxes receivable |
|
34 |
|
|
|
34 |
|
Deferred
costs |
|
16,868 |
|
|
|
11,703 |
|
Prepaid
expenses and other current assets |
|
4,025 |
|
|
|
3,988 |
|
Total
current assets |
|
175,947 |
|
|
|
175,315 |
|
Property and equipment,
net |
|
6,501 |
|
|
|
4,658 |
|
Deferred income taxes,
non-current |
|
819 |
|
|
|
900 |
|
Goodwill and intangible
assets, net |
|
34,561 |
|
|
|
34,844 |
|
Deferred costs,
non-current |
|
57,272 |
|
|
|
42,389 |
|
Other assets |
|
1,577 |
|
|
|
1,454 |
|
Total
assets |
$ |
276,677 |
|
|
$ |
259,560 |
|
Liabilities and
stockholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Trade
accounts payable |
$ |
15,638 |
|
|
$ |
6,151 |
|
Accrued
expenses |
|
45,269 |
|
|
|
51,528 |
|
Deferred
revenue |
|
28,783 |
|
|
|
20,345 |
|
Income
taxes payable |
|
75 |
|
|
|
197 |
|
Total
current liabilities |
|
89,765 |
|
|
|
78,221 |
|
Deferred rent,
non-current |
|
273 |
|
|
|
996 |
|
Deferred revenue,
non-current |
|
87,749 |
|
|
|
67,056 |
|
Other long-term
liabilities |
|
1,174 |
|
|
|
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; 44,312 and
43,946 shares issued and outstanding at September 30, 2017 and June
30, 2017, respectively |
|
44 |
|
|
|
44 |
|
Additional paid-in capital |
|
161,241 |
|
|
|
159,666 |
|
Accumulated other comprehensive loss |
|
(1,547 |
) |
|
|
(1,934 |
) |
Accumulated deficit |
|
(62,022 |
) |
|
|
(45,628 |
) |
Total
stockholders’ equity |
|
97,716 |
|
|
|
112,148 |
|
Total
liabilities and stockholders’ equity |
$ |
276,677 |
|
|
$ |
259,560 |
|
|
|
|
*Derived
from audited consolidated financial statements as of and for the
year ended June 30, 2017. |
|
|
|
|
|
|
Telenav, Inc. |
Consolidated Statements of
Operations |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
(unaudited) |
|
|
Revenue: |
|
|
|
|
Product |
|
$ |
23,964 |
|
|
$ |
29,423 |
|
Services |
|
|
12,694 |
|
|
|
12,804 |
|
Total
revenue |
|
|
36,658 |
|
|
|
42,227 |
|
Cost of revenue: |
|
|
|
|
Product |
|
|
14,674 |
|
|
|
17,761 |
|
Services |
|
|
6,173 |
|
|
|
5,715 |
|
Total
cost of revenue |
|
|
20,847 |
|
|
|
23,476 |
|
Gross profit |
|
|
15,811 |
|
|
|
18,751 |
|
Operating
expenses: |
|
|
|
|
Research
and development |
|
|
21,082 |
|
|
|
18,018 |
|
Sales and
marketing |
|
|
5,064 |
|
|
|
5,268 |
|
General
and administrative |
|
|
5,211 |
|
|
|
5,491 |
|
Legal
settlement and contingencies |
|
|
250 |
|
|
|
- |
|
Total
operating expenses |
|
|
31,607 |
|
|
|
28,777 |
|
Loss from
operations |
|
|
(15,796 |
) |
|
|
(10,026 |
) |
Other income (expense),
net |
|
|
(47 |
) |
|
|
296 |
|
Loss before provision
(benefit) for income taxes |
|
|
(15,843 |
) |
|
|
(9,730 |
) |
Provision (benefit) for
income taxes |
|
|
255 |
|
|
|
(395 |
) |
Net loss |
|
$ |
(16,098 |
) |
|
$ |
(9,335 |
) |
|
|
|
|
|
Net loss per
share: |
|
|
|
|
Basic and
diluted |
|
$ |
(0.37 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
Weighted average shares
used in computing net loss per share: |
|
|
|
|
Basic and
diluted |
|
|
44,079 |
|
|
|
42,838 |
|
|
|
|
|
|
Telenav, Inc. |
Consolidated Statements of Cash
Flows |
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
(unaudited) |
|
|
Operating
activities |
|
|
|
|
Net loss |
|
$ |
(16,098 |
) |
|
$ |
(9,335 |
) |
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
716 |
|
|
|
637 |
|
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 |
|
|
59 |
|
|
|
125 |
|
Stock-based compensation expense |
|
|
2,480 |
|
|
|
2,541 |
|
Loss on
disposal of property and equipment |
|
|
8 |
|
|
|
- |
|
Bad debt
expense |
|
|
38 |
|
|
|
67 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Accounts
receivable |
|
|
(2,109 |
) |
|
|
(563 |
) |
Deferred
income taxes |
|
|
104 |
|
|
|
19 |
|
Restricted cash |
|
|
(2 |
) |
|
|
129 |
|
Income
taxes receivable |
|
|
- |
|
|
|
1 |
|
Deferred
costs |
|
|
(20,048 |
) |
|
|
(2,857 |
) |
Prepaid
expenses and other current assets |
|
|
(115 |
) |
|
|
(25 |
) |
Other
assets |
|
|
(326 |
) |
|
|
18 |
|
Trade
accounts payable |
|
|
9,463 |
|
|
|
4,533 |
|
Accrued
expenses and other liabilities |
|
|
(6,037 |
) |
|
|
(6,188 |
) |
Income
taxes payable |
|
|
(123 |
) |
|
|
92 |
|
Deferred
rent |
|
|
191 |
|
|
|
75 |
|
Deferred
revenue |
|
|
29,131 |
|
|
|
5,042 |
|
Net cash used in operating activities |
|
|
(3,788 |
) |
|
|
(5,689 |
) |
|
|
|
|
|
Investing
activities |
|
|
|
|
Purchases
of property and equipment |
|
|
(2,286 |
) |
|
|
(394 |
) |
Purchases
of short-term investments |
|
|
(13,355 |
) |
|
|
(16,841 |
) |
Proceeds
from sales and maturities of short-term investments |
|
|
16,697 |
|
|
|
19,032 |
|
Proceeds
from sales of long-term investments |
|
|
- |
|
|
|
246 |
|
Net cash provided by investing activities |
|
|
1,056 |
|
|
|
2,043 |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
Proceeds
from exercise of stock options |
|
|
197 |
|
|
|
23 |
|
Tax
withholdings related to net share settlements of restricted stock
units |
|
|
(1,102 |
) |
|
|
(1,256 |
) |
Net cash used in financing activities |
|
|
(905 |
) |
|
|
(1,233 |
) |
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
343 |
|
|
|
65 |
|
Net
decrease in cash and cash equivalents |
|
|
(3,294 |
) |
|
|
(4,814 |
) |
Cash and
cash equivalents, at beginning of period |
|
|
20,757 |
|
|
|
21,349 |
|
Cash and
cash equivalents, at end of period |
|
$ |
17,463 |
|
|
$ |
16,535 |
|
|
|
|
|
|
Telenav, Inc. |
Consolidated Segment Summary |
(in thousands, except
percentages) |
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
|
2017 |
|
2016 |
|
|
|
|
|
Automotive |
|
|
|
|
Revenue |
|
$ |
25,304 |
|
|
$ |
30,267 |
|
Cost of
revenue |
|
|
15,885 |
|
|
|
18,545 |
|
Gross
profit |
|
$ |
9,419 |
|
|
$ |
11,722 |
|
Gross
margin |
|
|
37 |
% |
|
|
39 |
% |
|
|
|
|
|
Advertising |
|
|
|
|
Revenue |
|
$ |
7,615 |
|
|
$ |
6,545 |
|
Cost of
revenue |
|
|
3,412 |
|
|
|
3,526 |
|
Gross
profit |
|
$ |
4,203 |
|
|
$ |
3,019 |
|
Gross
margin |
|
|
55 |
% |
|
|
46 |
% |
|
|
|
|
|
Mobile Navigation |
|
|
|
|
Revenue |
|
$ |
3,739 |
|
|
$ |
5,415 |
|
Cost of
revenue |
|
|
1,550 |
|
|
|
1,405 |
|
Gross
profit |
|
$ |
2,189 |
|
|
$ |
4,010 |
|
Gross
margin |
|
|
59 |
% |
|
|
74 |
% |
|
|
|
|
|
Total |
|
|
|
|
Revenue |
|
$ |
36,658 |
|
|
$ |
42,227 |
|
Cost of
revenue |
|
|
20,847 |
|
|
|
23,476 |
|
Gross
profit |
|
$ |
15,811 |
|
|
$ |
18,751 |
|
Gross
margin |
|
|
43 |
% |
|
|
44 |
% |
|
|
|
|
|
Telenav, Inc. |
Unaudited Reconciliation of Non-GAAP
Adjustments |
(in thousands) |
|
|
|
|
|
Reconciliation of Revenue to
Billings |
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
|
|
2017 |
|
|
|
2016 |
|
Automotive |
|
|
|
|
Revenue |
|
$ |
25,304 |
|
|
$ |
30,267 |
|
Adjustments: |
|
|
|
|
Change in
deferred revenue |
|
|
29,188 |
|
|
|
5,113 |
|
Billings |
|
$ |
54,492 |
|
|
$ |
35,380 |
|
|
|
|
|
|
Advertising |
|
|
|
|
Revenue |
|
$ |
7,615 |
|
|
$ |
6,545 |
|
Adjustments: |
|
|
|
|
Change in
deferred revenue |
|
|
- |
|
|
|
- |
|
Billings |
|
$ |
7,615 |
|
|
$ |
6,545 |
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
Revenue |
|
$ |
3,739 |
|
|
$ |
5,415 |
|
Adjustments: |
|
|
|
|
Change in
deferred revenue |
|
|
(57 |
) |
|
|
(71 |
) |
Billings |
|
$ |
3,682 |
|
|
$ |
5,344 |
|
|
|
|
|
|
Total |
|
|
|
|
Revenue |
|
$ |
36,658 |
|
|
$ |
42,227 |
|
Adjustments: |
|
|
|
|
Change in
deferred revenue |
|
|
29,131 |
|
|
|
5,042 |
|
Billings |
|
$ |
65,789 |
|
|
$ |
47,269 |
|
|
|
|
|
|
Telenav, Inc. |
Unaudited Reconciliation of Non-GAAP
Adjustments |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Deferred Revenue to Increase
(Decrease) in Deferred Revenue |
Reconciliation of Deferred Costs to Increase
(Decrease) in Deferred Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive |
|
Advertising |
|
Mobile Navigation |
|
Total |
|
|
Three Months
Ended September
30, |
|
Three Months
Ended September
30, |
|
Three Months
Ended September
30, |
|
Three Months
Ended September
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Deferred revenue,
September 30 |
|
$ |
115,705 |
|
$ |
27,266 |
|
$ |
- |
|
$ |
- |
|
$ |
827 |
|
|
$ |
1,145 |
|
|
$ |
116,532 |
|
$ |
28,411 |
Deferred revenue, June
30 |
|
|
86,517 |
|
|
22,153 |
|
|
- |
|
|
- |
|
|
884 |
|
|
|
1,216 |
|
|
|
87,401 |
|
|
23,369 |
Change in deferred
revenue |
|
$ |
29,188 |
|
$ |
5,113 |
|
$ |
- |
|
$ |
- |
|
$ |
(57 |
) |
|
$ |
(71 |
) |
|
$ |
29,131 |
|
$ |
5,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred costs,
September 30 |
|
$ |
74,140 |
|
$ |
14,933 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
74,140 |
|
$ |
14,933 |
Deferred costs, June
30 |
|
|
54,092 |
|
|
12,076 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
54,092 |
|
|
12,076 |
Change in deferred
costs |
|
$ |
20,048 |
|
$ |
2,857 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
20,048 |
|
$ |
2,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
Unaudited Reconciliation of Non-GAAP
Adjustments |
(in thousands, except
percentages) |
|
|
|
|
|
Reconciliation of Gross Profit to Direct
Contribution from Billings |
Reconciliation of Gross Margin to Direct
Contribution Margin on Billings |
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
Gross profit |
|
$ |
15,811 |
|
|
$ |
18,751 |
|
Gross margin |
|
|
43 |
% |
|
|
44 |
% |
|
|
|
|
|
Adjustments to gross
profit: |
|
|
|
|
Change in
deferred revenue |
|
$ |
29,131 |
|
|
$ |
5,042 |
|
Change in
deferred costs(1) |
|
|
(20,048 |
) |
|
|
(2,857 |
) |
Net
change |
|
|
9,083 |
|
|
|
2,185 |
|
|
|
|
|
|
|
|
|
|
Direct Contribution
from billings(1) |
|
$ |
24,894 |
|
|
$ |
20,936 |
|
Direct Contribution
Margin from billings(1) |
|
|
38 |
% |
|
|
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 |
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
Net loss |
|
$ |
(16,098 |
) |
|
$ |
(9,335 |
) |
|
|
|
|
|
Adjustments: |
|
|
|
|
Legal
settlement and contingencies |
|
|
250 |
|
|
|
- |
|
Deferred
rent reversal due to lease termination |
|
|
(538 |
) |
|
|
- |
|
Tenant
improvement allowance recognition due to lease termination |
|
|
(582 |
) |
|
|
- |
|
Stock-based compensation expense |
|
|
2,480 |
|
|
|
2,541 |
|
Depreciation and amortization expense |
|
|
716 |
|
|
|
637 |
|
Other
income (expense), net |
|
|
47 |
|
|
|
(296 |
) |
Provision
(benefit) for income taxes |
|
|
255 |
|
|
|
(395 |
) |
Adjusted EBITDA |
|
$ |
(13,470 |
) |
|
$ |
(6,848 |
) |
|
|
|
|
|
Telenav, Inc. |
Unaudited Reconciliation of Non-GAAP
Adjustments |
(in thousands) |
|
|
|
|
|
Reconciliation of Net Loss to Free Cash
Flow |
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
Net loss |
|
$ |
(16,098 |
) |
|
$ |
(9,335 |
) |
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
Change in
deferred revenue (1) |
|
|
29,131 |
|
|
|
5,042 |
|
Change in
deferred costs (2) |
|
|
(20,048 |
) |
|
|
(2,857 |
) |
Changes
in other operating assets and liabilities |
|
|
1,046 |
|
|
|
(1,909 |
) |
Other
adjustments (3) |
|
|
2,181 |
|
|
|
3,370 |
|
Net cash used in
operating activities |
|
|
(3,788 |
) |
|
|
(5,689 |
) |
Less: Purchases of
property and equipment |
|
|
(2,286 |
) |
|
|
(394 |
) |
Free cash flow |
|
$ |
(6,074 |
) |
|
$ |
(6,083 |
) |
|
|
|
|
|
(1)
Consists of 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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