Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected car
and location-based services, today released its financial results
for the quarter ended Dec. 31, 2018, the second quarter of fiscal
2019. In connection with that announcement, the company also posted
a quarterly letter to stockholders on its website. Please visit
Telenav’s investor relations website at http://investor.telenav.com
to view the financial results and letter to stockholders.
“In the second quarter, we achieved a significant milestone of
positive adjusted cash flow from operations, a non-GAAP measure,
evidence that the company is improving its financial fundamentals
while driving growth,” said HP Jin, Chairman and CEO of Telenav.
“We continued to increase our revenue and billings from General
Motors, which were approximately 17% and 20% respectively during
the second quarter compared to 7% and 7% for revenue and billings
in the second quarter of fiscal 2018. Consistent with our mission
of making people’s lives less stressful, more productive, and more
fun on the go, we are collaborating with Amazon to integrate the
Alexa voice interface for in-car navigation, an integration we
demonstrated at CES 2019.”
Telenav’s Board of Directors has authorized a program for the
repurchase of up to $20.0 million of shares of common stock through
open market purchases. The term of the program is 18 months. The
timing and amount of repurchase transactions under this program
will depend on market conditions, cash flow and other
considerations.
Financial highlights for the second quarter ended Dec.
31, 2018
- Total revenue for the second quarter of fiscal 2019
was $57.2 million, inclusive of $4.1 million related to annual
map updates, which are recognized when Telenav provides updated
maps, and $1.7 million of customized software development fees,
compared with $61.4 million in the second quarter of fiscal
2018, of which $3.0 million was related to periodic map updates,
and $0.6 million of customized software development
fees.
- Billings for the second quarter of fiscal 2019 were $63.6
million, compared with $70.1 million in the second quarter of
fiscal 2018. The year over year decline in revenue and billings was
due primarily to lower per unit pricing in the company’s automotive
business unit resulting from lower third-party content costs
charged through to our customers, partially offset by higher unit
volume on its automotive solutions, and lower advertising and
mobile navigation revenue. Absent the impact on revenue and
billings from the lower third-party content costs, both revenue and
billings would have grown during the quarter, as illustrated by the
growth of gross profit and adjusted cash flow from operations.
- Gross profit was $25.0 million in the second quarter of fiscal
2019, compared with $23.5 million in the second quarter of fiscal
2018. Automotive gross profit was $19.4 million in the second
quarter of fiscal 2019, a 13.2% increase from $17.2 million in the
second quarter of fiscal 2018.
- Net loss for the second quarter of fiscal 2019 was $(4.6)
million, compared with $(8.4) million for the second quarter of
fiscal 2018. The year over year decrease in loss was due primarily
to higher gross profit in the automotive business unit and lower
overall operating expenses.
- Adjusted cash flow from operations (formerly referred to as
adjusted EBITDA on billings) for the second quarter of fiscal 2019
was $2.6 million compared with $(1.8) million in the
second quarter of fiscal 2018.
- Ending cash, cash equivalents and short-term investments,
excluding restricted cash, were $85.9 million as
of Dec. 31, 2018 an increase of $4.6 million compared to the
September 30, 2018 cash balance of $81.3 million. This total
represented cash and short-term investments of $1.89 per
share, based on 45.5 million shares of common stock outstanding as
of Dec. 31, 2018. Telenav had no debt as of Dec. 31,
2018.
Recent Business Highlights
- 1.3 million Telenav-equipped vehicles capable of connected
services were deployed into the global market during the
quarter ended Dec. 31, 2018, bringing the cumulative total to 11.9
million.
- Telenav surpassed 21 million total auto units shipped with
Telenav software and services.
- GM launched Telenav’s hybrid navigation solution on additional
model year 2019 vehicles, including the Chevrolet Blazer and
Malibu, and the Cadillac CT6.
- Toyota launched Telenav’s Scout GPS Link on additional model
year 2019 vehicles, including the Toyota RAV4 and the Lexus
UX.
- A contract amendment for the previously announced award of Ford
next generation business in North America was executed in December
2018.
- Telenav announced collaboration with Amazon Alexa to bring
conversational voice interface for in-car navigation.
Q3 Fiscal 2019 Business Outlook
For the third fiscal quarter ending Mar. 31,
2019, Telenav offers the following guidance.
- Total revenue is expected to be $49 million
to $53 million.
- Billings are expected to be $61 million to $65
million including $2.5 million of customized software development
fees.
- Gross margin is expected to be approximately 45%.
- Direct contribution margin from billings is expected to be
approximately 45%.
- Operating expenses are expected to be $31
million to $32 million.
- Net loss is expected to be $(7) million to $(9) million.
- Adjusted EBITDA loss is expected to be $(5) million to $(6)
million.
- Adjusted cash flow from operations is expected to be $(1)
million to $1 million.
- Automotive revenue is expected to be $42 million to $45
million.
- Advertising revenue is expected to be approximately $5
million.
- Weighted average diluted shares outstanding is expected to be
approximately 45.6 million.
Subject to anticipated volumes, take rates and timing of model
expansion under Telenav’s various automobile manufacturer and tier
one supplier programs, including the potential impact, if any, of
our automotive manufacturer customers’ transition of their North
American passenger car portfolio to trucks, SUVs and CUVs, and
assuming no unforeseen impact from macroeconomic changes, including
federal government shutdowns and tariff impacts, Telenav
anticipates that adjusted cash flow from operations 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, other changes in
business conditions and other factors. Please refer to the
disclosures under “Forward-Looking Statements” below.
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, Feb. 7, 2019 at 2:30 p.m. Pacific Time (5:30
p.m. Eastern Time). Management has posted its letter to
stockholders in combination with this 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 888-394-8218 (toll-free, domestic only)
or 323-794-2588 (domestic and international toll) and entering pass
code 2400241. A replay of the conference call will be available for
two weeks beginning approximately two hours after the call’s
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 2400241.
ASC 606 Implementation
As reported previously, Telenav adopted ASC 606, Revenue from
Contracts with Customers, effective July 1, 2018, utilizing the
full retrospective transition method. All prior period amounts and
disclosures set forth in this earnings release have been adjusted
to comply with ASC 606. Under this accounting methodology, certain
automotive royalty amounts earned are bifurcated when there exist
various underlying obligations. Revenue is recognized upon
fulfillment of the underlying obligation. Such various obligations
related to earned royalties generally include an onboard navigation
component recognized as revenue when each navigation unit is
delivered and accepted, a connected services component recognized
as revenue over the applicable service period, and a map update
component recognized as revenue upon periodic delivery of the
applicable map updates.
The adjustments required to transition to ASC 606 on July 1,
2018 resulted in $160.6 million of deferred revenue and $86.9
million of deferred costs originally reported on the company’s
balance sheet as of June 30, 2018 being recorded instead as revenue
and cost of revenue, respectively, in prior periods as adjusted. In
addition, the adoption of ASC 606 required the company to
capitalize an additional $4.2 million, net, of deferred development
costs on its adjusted June 30, 2018 balance sheet, resulting in a
net decrease in deferred costs of $82.7 million. The net
impact of the Company’s adoption of ASC 606 as of June 30, 2018 was
an adjustment to decrease its accumulated deficit by $77.8 million.
All prior period amounts have been adjusted to comply with ASC
606.
Material Weakness in Internal Control over Financial
Reporting
During the three months ended Dec. 31, 2018, Telenav management
identified certain errors related to its implementation ASC 606 due
to the Company’s internal control over financial reporting relating
to supervision and review of the financial models supporting
Telenav’s revenue recognition accounting and disclosures not
operating effectively. Telenav management concluded that,
because this deficiency created a more than remote likelihood of a
material misstatement not being prevented or detected on a timely
basis, this deficiency constituted a material weakness in internal
control over financial reporting.
A more detailed explanation, together with a description of the
remediation plan that we have adopted to address the identified
internal control deficiencies, will be included in our Quarterly
Report on Form 10-Q for the quarter ended Dec. 31, 2018.
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 cash flow from operations 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 revenue recognized plus the change in deferred
revenue from the beginning to the end of the applicable period.
Direct contribution from billings reflects gross profit plus change
in deferred revenue less change in deferred costs from the
beginning to the end of the applicable period. 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 its customized software solutions whereby
customized engineering fees are earned. As the company 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, 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 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, map updates and, for certain customers,
additional period content and associated technology costs.
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 net loss 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, 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, 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. 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 the company’s Santa Clara facility sublease and
subsequent entry into a new lease agreement with its landlord for
this same facility effective Sept. 2017.
Adjusted EBITDA and adjusted cash flow from operations 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 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 and adjusted cash flow from operations
can provide a useful measure for period-to-period comparisons of
Telenav’s core business.
Adjusted cash flow from operations measures adjusted EBITDA plus
the effect of changes in deferred revenue and deferred costs.
Telenav believes adjusted cash flow from operations is a useful
measure, especially in light of the impact it continues to expect
on reported revenue for certain value-added offerings the company
provides its customers, including map updates and the impact of
future deliverables. Adjusted EBITDA and adjusted cash flow from
operations, while generally measures of profitability and the
generation of cash, can also represent losses and the use of cash,
respectively. In addition, adjusted cash flow from operations 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 and
employees. Accordingly, Telenav believes that adjusted cash flow
from operations 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.
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, Telenav has provided guidance for the
third quarter of fiscal 2019 on a non-GAAP basis for billings,
direct contribution margin from billings, adjusted EBITDA and
adjusted cash flow from operations. 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, 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.
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 and Europe over the near term and GM’s
recent announcement regarding the elimination of various sedans in
North America in the near term; the impact of tariffs on sales of
automobiles in the United States and other markets; the impact of
the anticipated departure of the United Kingdom from the European
Union on sales of automobiles in the United Kingdom and automotive
supply chains; Telenav’s success in extending its contracts for
current and new generation of products with its existing automobile
manufacturers and tier ones, 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 automobile manufacturers and tier ones for a substantial
portion of its revenue; 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; 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; any failure to meet financial performance
expectations of securities analysts or investors; 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
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; 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 fiscal
quarter ended September 30, 2018 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 Telenav
expect.
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.
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 2019 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:Bishop IRMike
Bishop415-894-9633IR@telenav.com
Media:Raphel Finelli408-667-5970raphelf@telenav.com
-- Financial Tables Follow --
Telenav, Inc. |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, except par value) |
|
(unaudited) |
|
|
|
December 31,
2018 |
|
June 30, 2018
As Adjusted (1) |
|
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
|
$ |
22,405 |
|
|
$ |
17,117 |
|
|
Short-term investments |
|
|
63,544 |
|
|
|
67,829 |
|
|
Accounts
receivable, net of allowances of $10 and $17 at December 31, 2018
and June 30, 2018, respectively |
|
|
43,593 |
|
|
|
46,188 |
|
|
Restricted cash |
|
|
2,476 |
|
|
|
2,982 |
|
|
Deferred
costs |
|
|
13,950 |
|
|
|
11,759 |
|
|
Prepaid
expenses and other current assets |
|
|
3,552 |
|
|
|
3,867 |
|
|
Total
current assets |
|
|
149,520 |
|
|
|
149,742 |
|
|
Property and equipment,
net |
|
|
6,396 |
|
|
|
6,987 |
|
|
Deferred income taxes,
non-current |
|
|
486 |
|
|
|
867 |
|
|
Goodwill and intangible
assets, net |
|
|
30,479 |
|
|
|
31,046 |
|
|
Deferred costs,
non-current |
|
|
51,515 |
|
|
|
46,666 |
|
|
Other assets |
|
|
3,467 |
|
|
|
2,372 |
|
|
Total
assets |
|
$ |
241,863 |
|
|
$ |
237,680 |
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Trade
accounts payable |
|
$ |
22,991 |
|
|
$ |
13,008 |
|
|
Accrued
expenses |
|
|
29,367 |
|
|
|
38,803 |
|
|
Deferred
revenue |
|
|
23,715 |
|
|
|
20,714 |
|
|
Income
taxes payable |
|
|
258 |
|
|
|
221 |
|
|
Total
current liabilities |
|
|
76,331 |
|
|
|
72,746 |
|
|
Deferred rent,
non-current |
|
|
1,051 |
|
|
|
1,112 |
|
|
Deferred revenue,
non-current |
|
|
64,057 |
|
|
|
53,824 |
|
|
Other long-term
liabilities |
|
|
993 |
|
|
|
1,115 |
|
|
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; 45,541 and
44,871 shares issued and outstanding at December 31, 2018 and June
30, 2018, respectively |
|
|
46 |
|
|
|
45 |
|
|
Additional paid-in capital |
|
|
170,747 |
|
|
|
167,895 |
|
|
Accumulated other comprehensive loss |
|
|
(2,010 |
) |
|
|
(1,855 |
) |
|
Accumulated deficit |
|
|
(69,352 |
) |
|
|
(57,202 |
) |
|
Total
stockholders’ equity |
|
|
99,431 |
|
|
|
108,883 |
|
|
Total
liabilities and stockholders’ equity |
|
$ |
241,863 |
|
|
$ |
237,680 |
|
|
|
|
|
|
(1) Certain amounts have been adjusted to reflect the
retrospective adoption of ASC 606. Such amounts were further
revised during the three months ended December 31, 2018 to correct
certain immaterial errors. |
|
|
|
|
|
Telenav, Inc. |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share
amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
|
2017 As Adjusted
(1) |
|
|
2018 |
|
|
2017 As Adjusted
(1) |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
Product |
|
$ |
42,397 |
|
|
$ |
45,907 |
|
|
$ |
82,327 |
|
|
$ |
86,299 |
|
Services |
|
|
14,779 |
|
|
|
15,492 |
|
|
|
27,048 |
|
|
|
29,795 |
|
Total
revenue |
|
|
57,176 |
|
|
|
61,399 |
|
|
|
109,375 |
|
|
|
116,094 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Product |
|
|
25,015 |
|
|
|
30,356 |
|
|
|
48,603 |
|
|
|
57,679 |
|
Services |
|
|
7,176 |
|
|
|
7,520 |
|
|
|
14,350 |
|
|
|
13,902 |
|
Total
cost of revenue |
|
|
32,191 |
|
|
|
37,876 |
|
|
|
62,953 |
|
|
|
71,581 |
|
Gross profit |
|
|
24,985 |
|
|
|
23,523 |
|
|
|
46,422 |
|
|
|
44,513 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
|
19,091 |
|
|
|
21,399 |
|
|
|
39,193 |
|
|
|
42,080 |
|
Sales and
marketing |
|
|
4,455 |
|
|
|
5,136 |
|
|
|
8,870 |
|
|
|
10,200 |
|
General
and administrative |
|
|
5,721 |
|
|
|
5,514 |
|
|
|
11,171 |
|
|
|
10,725 |
|
Legal
settlements and contingencies |
|
|
650 |
|
|
|
60 |
|
|
|
650 |
|
|
|
310 |
|
Total
operating expenses |
|
|
29,917 |
|
|
|
32,109 |
|
|
|
59,884 |
|
|
|
63,315 |
|
Loss from
operations |
|
|
(4,932 |
) |
|
|
(8,586 |
) |
|
|
(13,462 |
) |
|
|
(18,802 |
) |
Other income, net |
|
|
532 |
|
|
|
218 |
|
|
|
2,122 |
|
|
|
171 |
|
Loss before provision
for income taxes |
|
|
(4,400 |
) |
|
|
(8,368 |
) |
|
|
(11,340 |
) |
|
|
(18,631 |
) |
Provision for income
taxes |
|
|
181 |
|
|
|
26 |
|
|
|
811 |
|
|
|
281 |
|
Net loss |
|
$ |
(4,581 |
) |
|
$ |
(8,394 |
) |
|
$ |
(12,151 |
) |
|
$ |
(18,912 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computing net loss per share: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
45,443 |
|
|
|
44,476 |
|
|
|
45,230 |
|
|
|
44,495 |
|
|
|
|
|
|
|
|
|
|
(1)
Certain amounts have been adjusted to reflect the retrospective
adoption of ASC 606. |
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December
31, |
|
|
|
|
|
2018 |
|
|
2017 As Adjusted
(1) |
|
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
|
Net loss |
|
$ |
(12,151 |
) |
|
$ |
(18,912 |
) |
|
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,016 |
|
|
|
1,513 |
|
|
|
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 |
|
|
- |
|
|
|
113 |
|
|
|
Stock-based compensation expense |
|
|
4,384 |
|
|
|
5,368 |
|
|
|
Unrealized gain on non-marketable equity investments |
|
|
(1,259 |
) |
|
|
- |
|
|
|
Loss
(gain) on disposal of property and equipment |
|
|
(8 |
) |
|
|
6 |
|
|
|
Bad debt
expense |
|
|
2 |
|
|
|
37 |
|
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
|
2,578 |
|
|
|
5,545 |
|
|
|
Deferred
income taxes |
|
|
366 |
|
|
|
(23 |
) |
|
|
Income
taxes receivable |
|
|
- |
|
|
|
2 |
|
|
|
Deferred
costs |
|
|
(7,040 |
) |
|
|
(13,298 |
) |
|
|
Prepaid
expenses and other current assets |
|
|
310 |
|
|
|
(476 |
) |
|
|
Other
assets |
|
|
26 |
|
|
|
(620 |
) |
|
|
Trade
accounts payable |
|
|
10,017 |
|
|
|
(1,563 |
) |
|
|
Accrued
expenses and other liabilities |
|
|
(9,962 |
) |
|
|
(263 |
) |
|
|
Income
taxes payable |
|
|
39 |
|
|
|
(61 |
) |
|
|
Deferred
rent |
|
|
89 |
|
|
|
767 |
|
|
|
Deferred
revenue |
|
|
13,234 |
|
|
|
19,840 |
|
|
|
Net cash
provided by (used in) operating activities |
|
|
2,641 |
|
|
|
(3,145 |
) |
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
Purchases
of property and equipment |
|
|
(446 |
) |
|
|
(3,350 |
) |
|
|
Purchases
of short-term investments |
|
|
(15,862 |
) |
|
|
(32,817 |
) |
|
|
Proceeds
from sales and maturities of short-term investments |
|
|
20,342 |
|
|
|
33,322 |
|
|
|
Net cash
provided by (used in) investing activities |
|
|
4,034 |
|
|
|
(2,845 |
) |
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
|
26 |
|
|
|
235 |
|
|
|
Tax
withholdings related to net share settlements of restricted stock
units |
|
|
(1,559 |
) |
|
|
(1,606 |
) |
|
|
Net cash
used in financing activities |
|
|
(1,533 |
) |
|
|
(1,371 |
) |
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
(360 |
) |
|
|
563 |
|
|
|
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
|
4,782 |
|
|
|
(6,798 |
) |
|
|
Cash,
cash equivalents and restricted cash, at beginning of period |
|
|
20,099 |
|
|
|
24,158 |
|
|
|
Cash,
cash equivalents and restricted cash, at end of period |
|
$ |
24,881 |
|
|
$ |
17,360 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
|
Income
taxes paid, net |
|
$ |
586 |
|
|
$ |
640 |
|
|
|
|
|
|
|
|
|
|
Reconciliation
of cash, cash equivalents and restricted cash to the condensed
consolidated balance sheets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
22,405 |
|
|
$ |
13,956 |
|
|
|
Restricted cash |
|
|
2,476 |
|
|
|
3,404 |
|
|
|
Total
cash, cash equivalents and restricted cash |
|
$ |
24,881 |
|
|
$ |
17,360 |
|
|
|
|
|
|
|
|
|
|
(1)
Certain amounts have been adjusted to reflect the retrospective
adoption of ASC 606. |
|
|
|
|
|
|
|
|
Telenav, Inc. |
Condensed Consolidated Segment
Summary |
(in thousands, except
percentages) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
|
2017 As Adjusted
(1) |
|
|
2018 |
|
|
2017 As Adjusted
(1) |
|
|
|
|
|
|
|
|
|
Automotive |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
47,522 |
|
|
$ |
49,157 |
|
|
$ |
91,004 |
|
|
$ |
92,498 |
|
Cost of
revenue |
|
|
28,081 |
|
|
|
31,981 |
|
|
|
54,698 |
|
|
|
60,724 |
|
Gross
profit |
|
$ |
19,441 |
|
|
$ |
17,176 |
|
|
$ |
36,306 |
|
|
$ |
31,774 |
|
Gross
margin |
|
|
41% |
|
|
|
35% |
|
|
|
40% |
|
|
|
34% |
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
7,016 |
|
|
$ |
8,742 |
|
|
$ |
12,963 |
|
|
$ |
16,357 |
|
Cost of
revenue |
|
|
3,286 |
|
|
|
4,402 |
|
|
|
6,506 |
|
|
|
7,814 |
|
Gross
profit |
|
$ |
3,730 |
|
|
$ |
4,340 |
|
|
$ |
6,457 |
|
|
$ |
8,543 |
|
Gross
margin |
|
|
53% |
|
|
|
50% |
|
|
|
50% |
|
|
|
52% |
|
|
|
|
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,638 |
|
|
$ |
3,500 |
|
|
$ |
5,408 |
|
|
$ |
7,239 |
|
Cost of
revenue |
|
|
824 |
|
|
|
1,493 |
|
|
|
1,749 |
|
|
|
3,043 |
|
Gross
profit |
|
$ |
1,814 |
|
|
$ |
2,007 |
|
|
$ |
3,659 |
|
|
$ |
4,196 |
|
Gross
margin |
|
|
69% |
|
|
|
57% |
|
|
|
68% |
|
|
|
58% |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
57,176 |
|
|
$ |
61,399 |
|
|
$ |
109,375 |
|
|
$ |
116,094 |
|
Cost of
revenue |
|
|
32,191 |
|
|
|
37,876 |
|
|
|
62,953 |
|
|
|
71,581 |
|
Gross
profit |
|
$ |
24,985 |
|
|
$ |
23,523 |
|
|
$ |
46,422 |
|
|
$ |
44,513 |
|
Gross
margin |
|
|
44% |
|
|
|
38% |
|
|
|
42% |
|
|
|
38% |
|
|
|
|
|
|
|
|
|
|
(1)
Certain amounts have been adjusted to reflect the retrospective
adoption of ASC 606. |
|
|
|
|
|
|
|
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, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Automotive |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
47,522 |
|
|
$ |
49,157 |
|
|
$ |
91,004 |
|
|
$ |
92,498 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
6,495 |
|
|
|
8,940 |
|
|
|
13,324 |
|
|
|
20,091 |
|
Billings |
|
$ |
54,017 |
|
|
$ |
58,097 |
|
|
$ |
104,328 |
|
|
$ |
112,589 |
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
7,016 |
|
|
$ |
8,742 |
|
|
$ |
12,963 |
|
|
$ |
16,357 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Billings |
|
$ |
7,016 |
|
|
$ |
8,742 |
|
|
$ |
12,963 |
|
|
$ |
16,357 |
|
|
|
|
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,638 |
|
|
$ |
3,500 |
|
|
$ |
5,408 |
|
|
$ |
7,239 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
(103 |
) |
|
|
(194 |
) |
|
|
(90 |
) |
|
|
(251 |
) |
Billings |
|
$ |
2,535 |
|
|
$ |
3,306 |
|
|
$ |
5,318 |
|
|
$ |
6,988 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
57,176 |
|
|
$ |
61,399 |
|
|
$ |
109,375 |
|
|
$ |
116,094 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
6,392 |
|
|
|
8,746 |
|
|
|
13,234 |
|
|
|
19,840 |
|
Billings |
|
$ |
63,568 |
|
|
$ |
70,145 |
|
|
$ |
122,609 |
|
|
$ |
135,934 |
|
|
|
|
|
|
|
|
|
|
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,
2018 |
|
|
|
Automotive |
|
Advertising |
|
Mobile Navigation |
|
Total |
|
Deferred revenue,
December 31 |
|
$ |
87,325 |
|
$ |
- |
|
$ |
447 |
|
|
$ |
87,772 |
|
Deferred revenue,
September 30 |
|
|
80,830 |
|
|
- |
|
|
550 |
|
|
|
81,380 |
|
Change in deferred
revenue |
|
$ |
6,495 |
|
$ |
- |
|
$ |
(103 |
) |
|
$ |
6,392 |
|
|
|
|
|
|
|
|
|
|
|
Deferred costs,
December 31 |
|
$ |
65,465 |
|
$ |
- |
|
$ |
- |
|
|
$ |
65,465 |
|
Deferred costs,
September 30 |
|
|
62,806 |
|
|
- |
|
|
- |
|
|
|
62,806 |
|
Change in deferred
costs |
|
$ |
2,659 |
|
$ |
- |
|
$ |
- |
|
|
$ |
2,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2017 |
|
|
|
Automotive |
|
Advertising |
|
Mobile Navigation |
|
Total |
|
Deferred revenue,
December 31 |
|
$ |
58,321 |
|
$ |
- |
|
$ |
633 |
|
|
$ |
58,954 |
|
Deferred revenue,
September 30 |
|
|
49,381 |
|
|
- |
|
|
827 |
|
|
|
50,208 |
|
Change in deferred
revenue |
|
$ |
8,940 |
|
$ |
- |
|
$ |
(194 |
) |
|
$ |
8,746 |
|
|
|
|
|
|
|
|
|
|
|
Deferred costs,
December 31 |
|
$ |
48,724 |
|
$ |
- |
|
$ |
- |
|
|
$ |
48,724 |
|
Deferred costs,
September 30 |
|
|
43,018 |
|
|
- |
|
|
- |
|
|
|
43,018 |
|
Change in deferred
costs |
|
$ |
5,706 |
|
$ |
- |
|
$ |
- |
|
|
$ |
5,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31,
2018 |
|
|
|
Automotive |
|
Advertising |
|
Mobile Navigation |
|
Total |
|
Deferred revenue,
December 31 |
|
$ |
87,325 |
|
$ |
- |
|
$ |
447 |
|
|
$ |
87,772 |
|
Deferred revenue, June
30 |
|
|
74,001 |
|
|
- |
|
|
537 |
|
|
|
74,538 |
|
Change in deferred
revenue |
|
$ |
13,324 |
|
$ |
- |
|
$ |
(90 |
) |
|
$ |
13,234 |
|
|
|
|
|
|
|
|
|
|
|
Deferred costs,
December 31 |
|
$ |
65,465 |
|
$ |
- |
|
$ |
- |
|
|
$ |
65,465 |
|
Deferred costs, June
30 |
|
|
58,425 |
|
|
- |
|
|
- |
|
|
|
58,425 |
|
Change in deferred
costs |
|
$ |
7,040 |
|
$ |
- |
|
$ |
- |
|
|
$ |
7,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31,
2017 |
|
|
|
Automotive |
|
Advertising |
|
Mobile Navigation |
|
Total |
|
Deferred revenue,
December 31 |
|
$ |
58,321 |
|
$ |
- |
|
$ |
633 |
|
|
$ |
58,954 |
|
Deferred revenue, June
30 |
|
|
38,230 |
|
|
- |
|
|
884 |
|
|
|
39,114 |
|
Change in deferred
revenue |
|
$ |
20,091 |
|
$ |
- |
|
$ |
(251 |
) |
|
$ |
19,840 |
|
|
|
|
|
|
|
|
|
|
|
Deferred costs,
December 31 |
|
$ |
48,724 |
|
$ |
- |
|
$ |
- |
|
|
$ |
48,724 |
|
Deferred costs, June
30 |
|
|
35,426 |
|
|
- |
|
|
- |
|
|
|
35,426 |
|
Change in deferred
costs |
|
$ |
13,298 |
|
$ |
- |
|
$ |
- |
|
|
$ |
13,298 |
|
|
|
|
|
|
|
|
|
|
|
Telenav, Inc. |
|
Unaudited Reconciliation of Non-GAAP
Adjustments |
|
(in thousands, except
percentages) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Gross Profit to Direct
Contribution from Billings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Automotive |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
19,441 |
|
|
$ |
17,176 |
|
|
$ |
36,306 |
|
|
$ |
31,774 |
|
|
Gross
margin |
|
|
41% |
|
|
|
35% |
|
|
|
40% |
|
|
|
34% |
|
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
6,495 |
|
|
|
8,940 |
|
|
|
13,324 |
|
|
|
20,091 |
|
|
Change in
deferred costs(1) |
|
|
(2,659 |
) |
|
|
(5,706 |
) |
|
|
(7,040 |
) |
|
|
(13,298 |
) |
|
Net
change |
|
|
3,836 |
|
|
|
3,234 |
|
|
|
6,284 |
|
|
|
6,793 |
|
|
Direct
contribution from billings (1) |
|
$ |
23,277 |
|
|
$ |
20,410 |
|
|
$ |
42,590 |
|
|
$ |
38,567 |
|
|
Direct
contribution margin from billings (1) |
|
|
43% |
|
|
|
35% |
|
|
|
41% |
|
|
|
34% |
|
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
3,730 |
|
|
$ |
4,340 |
|
|
$ |
6,457 |
|
|
$ |
8,543 |
|
|
Gross
margin |
|
|
53% |
|
|
|
50% |
|
|
|
50% |
|
|
|
52% |
|
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Change in
deferred costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
change |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Direct
contribution from billings |
|
$ |
3,730 |
|
|
$ |
4,340 |
|
|
$ |
6,457 |
|
|
$ |
8,543 |
|
|
Direct
contribution margin from billings |
|
|
53% |
|
|
|
50% |
|
|
|
50% |
|
|
|
52% |
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Navigation |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
1,814 |
|
|
$ |
2,007 |
|
|
$ |
3,659 |
|
|
$ |
4,196 |
|
|
Gross
margin |
|
|
69% |
|
|
|
57% |
|
|
|
68% |
|
|
|
58% |
|
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
(103 |
) |
|
|
(194 |
) |
|
|
(90 |
) |
|
|
(251 |
) |
|
Change in
deferred costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
change |
|
|
(103 |
) |
|
|
(194 |
) |
|
|
(90 |
) |
|
|
(251 |
) |
|
Direct
contribution from billings |
|
$ |
1,711 |
|
|
$ |
1,813 |
|
|
$ |
3,569 |
|
|
$ |
3,945 |
|
|
Direct
contribution margin from billings |
|
|
67% |
|
|
|
55% |
|
|
|
67% |
|
|
|
56% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
24,985 |
|
|
$ |
23,523 |
|
|
$ |
46,422 |
|
|
$ |
44,513 |
|
|
Gross
margin |
|
|
44% |
|
|
|
38% |
|
|
|
42% |
|
|
|
38% |
|
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Change in
deferred revenue |
|
|
6,392 |
|
|
|
8,746 |
|
|
|
13,234 |
|
|
|
19,840 |
|
|
Change in
deferred costs(1) |
|
|
(2,659 |
) |
|
|
(5,706 |
) |
|
|
(7,040 |
) |
|
|
(13,298 |
) |
|
Net
change |
|
|
3,733 |
|
|
|
3,040 |
|
|
|
6,194 |
|
|
|
6,542 |
|
|
Direct
contribution from billings (1) |
|
$ |
28,718 |
|
|
$ |
26,563 |
|
|
$ |
52,616 |
|
|
$ |
51,055 |
|
|
Direct
contribution margin from billings (1) |
|
|
45% |
|
|
|
38% |
|
|
|
43% |
|
|
|
38% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 prepaid content and associated
technology costs. 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 Cash Flow from Operations |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,581 |
) |
|
$ |
(8,394 |
) |
|
$ |
(12,151 |
) |
|
$ |
(18,912 |
) |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Legal
settlements and contingencies |
|
|
650 |
|
|
|
60 |
|
|
|
650 |
|
|
|
310 |
|
Deferred
rent reversal due to lease termination |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(538 |
) |
Tenant
improvement allowance recognition due to lease termination |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(582 |
) |
Stock-based compensation expense |
|
|
2,115 |
|
|
|
2,888 |
|
|
|
4,384 |
|
|
|
5,368 |
|
Depreciation and amortization expense |
|
|
1,006 |
|
|
|
797 |
|
|
|
2,016 |
|
|
|
1,513 |
|
Other
income, net |
|
|
(532 |
) |
|
|
(218 |
) |
|
|
(2,122 |
) |
|
|
(171 |
) |
Provision
for income taxes |
|
|
181 |
|
|
|
26 |
|
|
|
811 |
|
|
|
281 |
|
Adjusted EBITDA |
|
|
(1,161 |
) |
|
|
(4,841 |
) |
|
|
(6,412 |
) |
|
|
(12,731 |
) |
Change in
deferred revenue |
|
|
6,392 |
|
|
|
8,746 |
|
|
|
13,234 |
|
|
|
19,840 |
|
Change in
deferred costs(1) |
|
|
(2,659 |
) |
|
|
(5,706 |
) |
|
|
(7,040 |
) |
|
|
(13,298 |
) |
Adjusted cash flow from
operations(1) |
|
$ |
2,572 |
|
|
$ |
(1,801 |
) |
|
$ |
(218 |
) |
|
$ |
(6,189 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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 prepaid content and associated
technology costs. Accordingly, adjusted cash flow from
operations 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 |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,581 |
) |
|
$ |
(8,394 |
) |
|
$ |
(12,151 |
) |
|
$ |
(18,912 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Change in
deferred revenue (1) |
|
|
6,392 |
|
|
|
8,746 |
|
|
|
13,234 |
|
|
|
19,840 |
|
Change in
deferred costs (2) |
|
|
(2,659 |
) |
|
|
(5,706 |
) |
|
|
(7,040 |
) |
|
|
(13,298 |
) |
Changes
in other operating assets and liabilities |
|
|
2,672 |
|
|
|
2,260 |
|
|
|
3,463 |
|
|
|
3,308 |
|
Other
adjustments (3) |
|
|
3,110 |
|
|
|
3,736 |
|
|
|
5,135 |
|
|
|
5,917 |
|
Net cash provided by
(used in) operating activities |
|
|
4,934 |
|
|
|
642 |
|
|
|
2,641 |
|
|
|
(3,145 |
) |
Less:
Purchases of property and equipment |
|
|
(346 |
) |
|
|
(1,064 |
) |
|
|
(446 |
) |
|
|
(3,350 |
) |
Free cash flow |
|
$ |
4,588 |
|
|
$ |
(422 |
) |
|
$ |
2,195 |
|
|
$ |
(6,495 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Consists primarily of depreciation and amortization,
stock-based compensation expense and other non-cash items. |
|
|
|
|
|
Telenav, Inc. |
Summarized Financial Information Depicting the
Impact of ASC 606 |
(in thousands, except per share
amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
As of June 30, 2018 |
|
|
|
|
As Reported (ASC
605) |
|
Adjustments |
|
As Adjusted (ASC
606) |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
costs |
|
$ |
31,888 |
|
|
$ |
(20,129 |
) |
|
$ |
11,759 |
|
|
|
|
|
|
|
Deferred
costs, noncurrent |
|
|
109,269 |
|
|
|
(62,603 |
) |
|
|
46,666 |
|
|
|
|
|
|
|
Total
assets |
|
|
320,412 |
|
|
|
(82,732 |
) |
|
|
237,680 |
|
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenue |
|
|
52,871 |
|
|
|
(32,157 |
) |
|
|
20,714 |
|
|
|
|
|
|
|
Deferred
revenue, noncurrent |
|
|
182,236 |
|
|
|
(128,412 |
) |
|
|
53,824 |
|
|
|
|
|
|
|
Accumulated deficit |
|
|
(135,042 |
) |
|
|
77,840 |
|
|
|
(57,202 |
) |
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
|
320,412 |
|
|
|
(82,732 |
) |
|
|
237,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2017 |
|
Six Months Ended December 31,
2017 |
|
|
As Reported (ASC
605) |
|
Adjustments |
|
As Adjusted (ASC
606) |
|
As Reported (ASC
605) |
|
Adjustments |
|
As Adjusted (ASC
606) |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
25,307 |
|
|
$ |
20,600 |
|
|
$ |
45,907 |
|
|
$ |
49,271 |
|
|
$ |
37,028 |
|
|
$ |
86,299 |
|
Services |
|
|
13,773 |
|
|
|
1,719 |
|
|
|
15,492 |
|
|
|
26,467 |
|
|
|
3,328 |
|
|
|
29,795 |
|
Total
revenue |
|
|
39,080 |
|
|
|
22,319 |
|
|
|
61,399 |
|
|
|
75,738 |
|
|
|
40,356 |
|
|
|
116,094 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
|
15,053 |
|
|
|
15,303 |
|
|
|
30,356 |
|
|
|
29,727 |
|
|
|
27,952 |
|
|
|
57,679 |
|
Services |
|
|
7,258 |
|
|
|
262 |
|
|
|
7,520 |
|
|
|
13,431 |
|
|
|
471 |
|
|
|
13,902 |
|
Total
cost of revenue |
|
|
22,311 |
|
|
|
15,565 |
|
|
|
37,876 |
|
|
|
43,158 |
|
|
|
28,423 |
|
|
|
71,581 |
|
Gross profit |
|
|
16,769 |
|
|
|
6,754 |
|
|
|
23,523 |
|
|
|
32,580 |
|
|
|
11,933 |
|
|
|
44,513 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
21,903 |
|
|
|
(504 |
) |
|
|
21,399 |
|
|
|
42,985 |
|
|
|
(905 |
) |
|
|
42,080 |
|
Total operating
expenses |
|
|
32,613 |
|
|
|
(504 |
) |
|
|
32,109 |
|
|
|
64,220 |
|
|
|
(905 |
) |
|
|
63,315 |
|
Loss from
operations |
|
|
(15,844 |
) |
|
|
7,258 |
|
|
|
(8,586 |
) |
|
|
(31,640 |
) |
|
|
12,838 |
|
|
|
(18,802 |
) |
Net loss |
|
|
(15,652 |
) |
|
|
7,258 |
|
|
|
(8,394 |
) |
|
|
(31,750 |
) |
|
|
12,838 |
|
|
|
(18,912 |
) |
Net loss per share,
basic and diluted |
|
$ |
(0.35 |
) |
|
$ |
0.16 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.71 |
) |
|
$ |
0.28 |
|
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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