Reports additional
Guidance for Third Quarter Operational Metrics Remains Unchanged
Subsequent to the issuance of Telenav’s earnings release and related investor presentation on
First Quarter of Fiscal 2020
- Revenue of
$66.6 million , an increase of$2.2 million from the previously reported first quarter of fiscal 2020 - Revenue growth of 44% over the first quarter of fiscal 2019
- Net loss of
$4.0 million , an improvement of$2.2 million from the previously reported first quarter of fiscal 2020 - Adjusted EBITDA of
$2.6 million , an increase of$2.2 million from the previously reported first quarter of fiscal 2020
Second Quarter of Fiscal 2020
- Revenue of
$73.9 million , an increase of$6.5 million from the previously reported second quarter of fiscal 2020 - Revenue growth of 47% over the second quarter of fiscal 2019.
- Net income of
$13.0 million , an improvement of$6.5 million from the previously reported second quarter of fiscal 2020 - Adjusted EBITDA of
$14.3 million , an increase of$6.5 million from the previously reported second quarter of fiscal 2020
First Half of Fiscal 2020
- Revenue of
$140.5 million , an increase of$8.7 million from the previously reported first half of fiscal 2020 - Net income of
$9.1 million , an improvement of$8.7 million from the previously reported first half of fiscal 2020 - Adjusted EBITDA of
$16.8 million , an increase of$8.7 million from the previously reported first half of fiscal 2020
There was no impact on Telenav’s cash balances at
Third Quarter of Fiscal 2020
Telenav expects total revenue to be$61.5 million to $63.5 million Telenav expects billings, a non-GAAP measure, to be between$62.5 million to $64.5 million , and GAAP gross margin to be within 42% to 44%Telenav expects GAAP operating expenses to be between$29 million to $31 million .Telenav expects Adjusted EBITDA, a non-GAAP measure, to be within negative$1.5 million to positive$0.5 million - For fiscal 2020 as a whole,
Telenav expects Adjusted EBITDA to be positive
However,
Please visit Telenav’s investor relations website at http://investor.telenav.com to view the updated financial results and supplemental comments and materials.
Use of Non-GAAP Financial Measures
To reconcile the historical GAAP results to non-GAAP financial metrics, please refer to the reconciliations in the financial statements included in this earnings release.
Billings equals GAAP revenue recognized plus the change in deferred revenue from the beginning to the end of the applicable period. In connection with its presentation of the change in deferred revenue,
Adjusted EBITDA measures GAAP net loss adjusted for discontinued operations and excluding the impact of stock-based compensation expense, depreciation and amortization, other income (expense) net, provision (benefit) for income taxes, and other applicable items such as legal settlements and contingencies and merger and acquisition, or M&A, transaction expenses, net of tax. Stock-based compensation expense relates to equity incentive awards granted to its employees, directors, and consultants. Legal settlements and contingencies represent settlements, offers made to settle, or loss accruals relating to litigation or other disputes in which
Adjusted EBITDA, while generally a measure of profitability, can also represent a loss. Adjusted EBITDA is a key measure used by Telenav’s management and board of directors to understand and evaluate Telenav’s core operating performance and trends, to prepare and approve its annual budget and to develop short- and long-term operational plans. In particular,
Free cash flow is a non-GAAP financial measure
In this press release, or in the supplemental investor presentation on its website,
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, market penetration, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made.
ABOUT
“Telenav” and the Telenav Logo are registered trademarks and “VIVID” is a trademark of
© 2020
TNAV-F
Investor Relations:
Bishop IR
415-894-9633
IR@telenav.com
Media:
408-667-5970
raphelf@telenav.com
Telenav, Inc. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands, except par value) | |||||||
(unaudited) | |||||||
December 31, | June 30, | ||||||
2019 | 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 26,347 | $ | 27,275 | |||
Short-term investments | 102,603 | 72,203 | |||||
Accounts receivable, net of allowances of $7 and $7 at December 31, 2019 and June 30, 2019, respectively | 44,463 | 69,781 | |||||
Restricted cash | 1,520 | 1,950 | |||||
Deferred costs | 33,117 | 18,752 | |||||
Prepaid expenses and other current assets | 8,933 | 3,784 | |||||
Assets of discontinued operations, non-current | - | 6,330 | |||||
Total current assets | 216,983 | 200,075 | |||||
Property and equipment, net | 5,215 | 5,583 | |||||
Operating lease right-of-use assets | 8,749 | - | |||||
Deferred income taxes, non-current | 1,401 | 998 | |||||
Goodwill and intangible assets, net | 15,265 | 15,701 | |||||
Deferred costs, non-current | 48,646 | 61,050 | |||||
Other assets | 21,285 | 1,414 | |||||
Assets of discontinued operations, non-current | - | 12,194 | |||||
Total assets | $ | 317,544 | $ | 297,015 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 1,113 | $ | 16,061 | |||
Accrued expenses | 54,182 | 48,899 | |||||
Operating lease liabilities | 3,532 | - | |||||
Deferred revenue | 50,416 | 31,270 | |||||
Income taxes payable | 928 | 800 | |||||
Liabilities of discontinued operations | - | 3,373 | |||||
Total current liabilities | 110,171 | 100,403 | |||||
Deferred rent, non-current | - | 1,266 | |||||
Operating lease liabilities, non-current | 6,459 | - | |||||
Deferred revenue, non-current | 93,755 | 103,865 | |||||
Other long-term liabilities | 678 | 811 | |||||
Liabilities of discontinued operations, non-current | - | 30 | |||||
Commitments and contingencies | - | - | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding | - | - | |||||
Common stock, $0.001 par value: 600,000 shares authorized; 48,151 and 46,911 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively | 48 | 47 | |||||
Additional paid-in capital | 190,593 | 182,349 | |||||
Accumulated other comprehensive loss | (1,538 | ) | (1,477 | ) | |||
Accumulated deficit | (82,622 | ) | (90,279 | ) | |||
Total stockholders’ equity | 106,481 | 90,640 | |||||
Total liabilities and stockholders’ equity | $ | 317,544 | $ | 297,015 |
Telenav, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 61,543 | $ | 42,397 | $ | 117,533 | $ | 82,327 | ||||||||
Services | 12,332 | 7,763 | 22,971 | 14,085 | ||||||||||||
Total revenue | 73,875 | 50,160 | 140,504 | 96,412 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Product | 26,434 | 25,015 | 58,423 | 48,603 | ||||||||||||
Services | 7,288 | 3,891 | 12,150 | 7,845 | ||||||||||||
Total cost of revenue | 33,722 | 28,906 | 70,573 | 56,448 | ||||||||||||
Gross profit | 40,153 | 21,254 | 69,931 | 39,964 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 19,717 | 17,766 | 40,380 | 36,258 | ||||||||||||
Sales and marketing | 2,134 | 1,665 | 4,080 | 3,368 | ||||||||||||
General and administrative | 6,428 | 5,721 | 13,715 | 11,171 | ||||||||||||
Legal settlements and contingencies | - | 650 | - | 650 | ||||||||||||
Total operating expenses | 28,279 | 25,802 | 58,175 | 51,447 | ||||||||||||
Income (loss) from operations | 11,874 | (4,548 | ) | 11,756 | (11,483 | ) | ||||||||||
Other income, net | 596 | 532 | 1,157 | 2,122 | ||||||||||||
Income (loss) from continuing operations before provision for income taxes | 12,470 | (4,016 | ) | 12,913 | (9,361 | ) | ||||||||||
Provision for income taxes | 205 | 102 | 616 | 842 | ||||||||||||
Equity in net (income) of equity method investees | (797 | ) | - | (797 | ) | - | ||||||||||
Income (loss) from continuing operations | 13,062 | (4,118 | ) | 13,094 | (10,203 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||
Income (loss) from operations of Advertising business, net of tax | - | (463 | ) | 832 | (1,948 | ) | ||||||||||
Loss from sale of Advertising business | (56 | ) | - | (4,874 | ) | - | ||||||||||
Loss on discontinued operations | (56 | ) | (463 | ) | (4,042 | ) | (1,948 | ) | ||||||||
Net income (loss) | $ | 13,006 | $ | (4,581 | ) | $ | 9,052 | $ | (12,151 | ) | ||||||
Basic income (loss) per share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.27 | $ | (0.09 | ) | $ | 0.27 | $ | (0.23 | ) | ||||||
Loss on discontinued operations | - | (0.01 | ) | (0.08 | ) | (0.04 | ) | |||||||||
Net income (loss) | $ | 0.27 | $ | (0.10 | ) | $ | 0.19 | $ | (0.27 | ) | ||||||
Diluted income (loss) per share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.27 | $ | (0.09 | ) | $ | 0.27 | $ | (0.23 | ) | ||||||
Loss on discontinued operations | - | (0.01 | ) | (0.08 | ) | (0.04 | ) | |||||||||
Net income (loss) | $ | 0.27 | $ | (0.10 | ) | $ | 0.18 | $ | (0.27 | ) | ||||||
Weighted average shares used in computing income (loss) per share | ||||||||||||||||
Basic | 48,475 | 45,443 | 48,127 | 45,230 | ||||||||||||
Diluted | 48,821 | 45,443 | 49,257 | 45,230 |
Telenav, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Six Months Ended December 31, | ||||||||
2019 | 2018 | |||||||
Operating activities | ||||||||
Net income (loss) | $ | 9,052 | $ | (12,151 | ) | |||
Loss on discontinued operations | 4,042 | 1,948 | ||||||
Income (loss) from continuing operations | 13,094 | (10,203 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Stock-based compensation expense | 3,230 | 3,923 | ||||||
Depreciation and amortization | 1,856 | 2,016 | ||||||
Operating lease amortization net of accretion | 1,321 | - | ||||||
Accretion of net premium on short-term investments | 75 | - | ||||||
Unrealized gain on non-marketable equity investments | (62 | ) | (1,259 | ) | ||||
Equity in net income of equity method investee | (797 | ) | - | |||||
Other | (1 | ) | (14 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 25,835 | 3,390 | ||||||
Deferred income taxes | (409 | ) | 445 | |||||
Deferred costs | (1,961 | ) | (7,040 | ) | ||||
Prepaid expenses and other current assets | (3,992 | ) | 216 | |||||
Other assets | 21 | (116 | ) | |||||
Trade accounts payable | (15,054 | ) | 9,812 | |||||
Accrued expenses and other liabilities | 3,945 | (9,575 | ) | |||||
Income taxes payable | 130 | 39 | ||||||
Deferred rent | - | 91 | ||||||
Operating lease liabilities | (1,754 | ) | - | |||||
Deferred revenue | 9,036 | 13,234 | ||||||
Net cash provided by operating activities | 34,513 | 4,959 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (1,078 | ) | (445 | ) | ||||
Purchases of short-term investments | (54,439 | ) | (15,862 | ) | ||||
Purchases of long-term investments | (3,500 | ) | - | |||||
Proceeds from sales and maturities of short-term investments | 24,067 | 20,342 | ||||||
Net cash provided by (used in) investing activities | (34,950 | ) | 4,035 | |||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 8,306 | 26 | ||||||
Tax withholdings related to net share settlements of restricted stock units | (1,148 | ) | (1,559 | ) | ||||
Repurchase of common stock | (4,019 | ) | - | |||||
Net cash provided by (used in) financing activities | 3,139 | (1,533 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (85 | ) | (360 | ) | ||||
Net increase in cash, cash equivalents and restricted cash, continuing operations | 2,617 | 7,101 | ||||||
Net cash used in discontinued operations | (3,975 | ) | (2,319 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of period | 29,225 | 20,099 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 27,867 | $ | 24,881 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid, net | $ | 1,279 | $ | 586 | ||||
Non-cash investing: Investment in LLC acquired in exchange for sale of Advertising business | $ | 15,600 | $ | - | ||||
Cash flow from discontinued operations: | ||||||||
Net cash used in operating activities | $ | (3,569 | ) | $ | (2,319 | ) | ||
Net cash used in financing activities | (406 | ) | - | |||||
Net cash transferred from continuing operations | 3,975 | 2,319 | ||||||
Net change in cash and cash equivalent from discontinued operation | - | - | ||||||
Cash and cash equivalent of discontinued operations, beginning of period | - | - | ||||||
Cash and cash equivalent of discontinued operations, end of period | $ | - | $ | - | ||||
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | ||||||||
Cash and cash equivalents | $ | 26,347 | $ | 22,405 | ||||
Restricted cash | 1,520 | 2,476 | ||||||
Total cash, cash equivalents and restricted cash | $ | 27,867 | $ | 24,881 |
Telenav, Inc. | |||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||||||||
(in thousands) | |||||||||||||
Reconciliation of Revenue to Billings | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Revenue | $ | 73,875 | $ | 50,160 | $ | 140,504 | $ | 96,412 | |||||
Adjustments: | |||||||||||||
Change in deferred revenue | (1,210 | ) | 6,392 | 9,036 | 13,234 | ||||||||
Billings | $ | 72,665 | $ | 56,552 | $ | 149,540 | $ | 109,646 |
Telenav, Inc. | |||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||||||||
(in thousands) | |||||||||||||
Reconciliation of Deferred Revenue to Change in Deferred Revenue | |||||||||||||
Reconciliation of Deferred Costs to Change in Deferred Costs | |||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Deferred revenue, end of period | $ | 144,171 | $ | 87,772 | $ | 144,171 | $ | 87,772 | |||||
Deferred revenue, beginning of period | 145,381 | 81,380 | 135,135 | 74,538 | |||||||||
Change in deferred revenue | $ | (1,210 | ) | $ | 6,392 | $ | 9,036 | $ | 13,234 | ||||
Deferred costs, end of period | $ | 81,763 | $ | 65,465 | $ | 81,763 | $ | 65,465 | |||||
Deferred costs, beginning of period | 77,795 | 62,806 | 79,802 | 58,425 | |||||||||
Change in deferred costs(1) | $ | 3,968 | $ | 2,659 | $ | 1,961 | $ | 7,040 | |||||
(1) Deferred costs primarily include costs associated with third-party content and in connection with certain customized software solutions, the costs incurred to develop those solutions. We expect to incur additional costs in the future due to requirements to provide ongoing map updates and provisioning of services such as hosting, monitoring, customer support and, for certain customers, additional period content and associated technology costs. |
Telenav, Inc. | ||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||
(in thousands) | ||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) | $ | 13,006 | $ | (4,581 | ) | $ | 9,052 | $ | (12,151 | ) | ||||||
Loss on discontinued operations | 56 | 463 | 4,042 | 1,948 | ||||||||||||
Income (loss) from continuing operations | 13,062 | 0 | (4,118 | ) | 13,094 | 0 | (10,203 | ) | ||||||||
Adjustments: | ||||||||||||||||
Legal settlement and contingencies | - | 650 | - | 650 | ||||||||||||
Stock-based compensation expense | 1,478 | 1,875 | 3,230 | 3,923 | ||||||||||||
Depreciation and amortization expense | 934 | 1,006 | 1,856 | 2,016 | ||||||||||||
Other income, net | (596 | ) | (532 | ) | (1,157 | ) | (2,122 | ) | ||||||||
Provision for income taxes | 205 | 102 | 616 | 842 | ||||||||||||
Equity in net income of equity method investees | (797 | ) | - | (797 | ) | - | ||||||||||
Adjusted EBITDA | $ | 14,286 | $ | (1,017 | ) | $ | 16,842 | $ | (4,894 | ) |
Telenav, Inc. | ||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||
(in thousands) | ||||||||||||||||
Reconciliation of Net Income (Loss) to Free Cash Flow | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) | $ | 13,006 | $ | (4,581 | ) | $ | 9,052 | $ | (12,151 | ) | ||||||
Loss on discontinued operations | 56 | 463 | 4,042 | 1,948 | ||||||||||||
Income (Loss) from continuing operations | 13,062 | (4,118 | ) | 13,094 | (10,203 | ) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Change in deferred revenue (1) | (1,309 | ) | 6,392 | 9,036 | 13,234 | |||||||||||
Change in deferred costs (2) | (3,940 | ) | (2,659 | ) | (1,961 | ) | (7,040 | ) | ||||||||
Changes in other operating assets and liabilities | 2,240 | 3,036 | 8,722 | 4,302 | ||||||||||||
Other adjustments (3) | 2,291 | 2,862 | 5,622 | 4,666 | ||||||||||||
Net cash provided by operating activities | 12,344 | 5,513 | 34,513 | 4,959 | ||||||||||||
Less: Purchases of property and equipment | (617 | ) | (346 | ) | (1,078 | ) | (445 | ) | ||||||||
Free cash flow | $ | 11,727 | $ | 5,167 | $ | 33,435 | $ | 4,514 | ||||||||
(1) Consists of product royalties, customized software development fees, service fees and subscription fees. | ||||||||||||||||
(2) Consists primarily of third party content costs and customized software development expenses. | ||||||||||||||||
(3) Consist primarily of depreciation and amortization, stock-based compensation expense and other non-cash items. |
Telenav, Inc. | |||||||||||||||||||||
Summarized Financial Information Depicting the Impact of Restatement | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||||
As Reported(1) | Adjustments | As Adjusted | |||||||||||||||||||
Assets | |||||||||||||||||||||
Prepaid expenses and other current assets | $ | 3,231 | $ | 5,702 | $ | 8,933 | |||||||||||||||
Total current assets | 211,281 | 5,702 | 216,983 | ||||||||||||||||||
Total assets | 311,842 | 5,702 | 317,544 | ||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||
Accrued expenses | 57,856 | (3,674 | ) | 54,182 | |||||||||||||||||
Deferred revenue | 50,582 | (166 | ) | 50,416 | |||||||||||||||||
Total current liabilities | 114,011 | (3,840 | ) | 110,171 | |||||||||||||||||
Accumulated deficit | (92,164 | ) | 9,542 | (82,622 | ) | ||||||||||||||||
Total liabilities and stockholders' equity | 311,842 | 5,702 | 317,544 | ||||||||||||||||||
Three Months Ended December 31, 2019 | Six Months Ended December 31, 2019 | ||||||||||||||||||||
As Reported(1) | Adjustments | As Adjusted | As Reported(2) | Adjustments | As Adjusted | ||||||||||||||||
Revenue | |||||||||||||||||||||
Product | $ | 55,362 | $ | 6,181 | $ | 61,543 | $ | 110,545 | $ | 6,988 | $ | 117,533 | |||||||||
Services | 11,984 | 348 | 12,332 | 21,256 | 1,715 | 22,971 | |||||||||||||||
Total revenue | 67,346 | 6,529 | 73,875 | 131,801 | 8,703 | 140,504 | |||||||||||||||
Gross profit | 33,624 | 6,529 | 40,153 | 61,228 | 8,703 | 69,931 | |||||||||||||||
Income from continuing operations | 6,533 | 6,529 | 13,062 | 4,391 | 8,703 | 13,094 | |||||||||||||||
Net income | 6,477 | 6,529 | 13,006 | 349 | 8,703 | 9,052 | |||||||||||||||
Basic income per share: | |||||||||||||||||||||
Income from continuing operations | $ | 0.13 | $ | 0.14 | $ | 0.27 | $ | 0.09 | $ | 0.18 | $ | 0.27 | |||||||||
Net income | 0.13 | 0.14 | 0.27 | 0.01 | 0.18 | 0.19 | |||||||||||||||
Diluted income per share: | |||||||||||||||||||||
Income from continuing operations | $ | 0.13 | $ | 0.14 | $ | 0.27 | $ | 0.09 | $ | 0.18 | $ | 0.27 | |||||||||
Net income | 0.13 | 0.14 | 0.27 | 0.01 | 0.17 | 0.18 | |||||||||||||||
Weighted average shares used in computing income per share | |||||||||||||||||||||
Basic | 48,475 | - | 48,475 | 48,127 | - | 48,127 | |||||||||||||||
Diluted | 48,821 | - | 48,821 | 49,257 | - | 49,257 | |||||||||||||||
(1) As reported in Form 8-K on February 6, 2020. | |||||||||||||||||||||
(2) Includes three months ended Sept. 30, 2019 as reported in Form 10-Q on Nov. 8, 2019 plus three months ended December 31, 2019 as reported in Form 8-K on Feb. 6, 2020. |
Telenav, Inc. | ||||||||||||||||||||||||
Summarized Financial Information Depicting the Impact of Restatement of Non-GAAP Adjustments | ||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Reconciliation of Revenue to Billings | ||||||||||||||||||||||||
Three Months Ended December 31, 2019 | Six Months Ended December 31, 2019 | |||||||||||||||||||||||
As Reported(1) | Adjustments | As Adjusted | As Reported(2) | Adjustments | As Adjusted | |||||||||||||||||||
Revenue | $ | 67,346 | $ | 6,529 | $ | 73,875 | $ | 131,801 | $ | 8,703 | $ | 140,504 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Change in deferred revenue | (2,920 | ) | 1,710 | (1,210 | ) | 9,202 | (166 | ) | 9,036 | |||||||||||||||
Billings | $ | 64,426 | $ | 8,239 | $ | 72,665 | $ | 141,003 | $ | 8,537 | $ | 149,540 | ||||||||||||
Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||||||||||
Three Months Ended December 31, 2019 | Six Months Ended December 31, 2019 | |||||||||||||||||||||||
As Reported(1) | Adjustments | As Adjusted | As Reported(2) | Adjustments | As Adjusted | |||||||||||||||||||
Net income | $ | 6,477 | $ | 6,529 | $ | 13,006 | $ | 349 | $ | 8,703 | $ | 9,052 | ||||||||||||
Loss on discontinued operations | 56 | - | 56 | 4,042 | - | 4,042 | ||||||||||||||||||
Income from continuing operations | 6,533 | 6,529 | 13,062 | 4,391 | 8,703 | 13,094 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||
Stock-based compensation expense | 1,478 | - | 1,478 | 3,230 | - | 3,230 | ||||||||||||||||||
Depreciation and amortization expense | 934 | - | 934 | 1,856 | - | 1,856 | ||||||||||||||||||
Other income, net | (596 | ) | - | (596 | ) | (1,157 | ) | - | (1,157 | ) | ||||||||||||||
Provision for income taxes | 205 | - | 205 | 616 | - | 616 | ||||||||||||||||||
Equity in net income of equity method investees | (797 | ) | - | (797 | ) | (797 | ) | - | (797 | ) | ||||||||||||||
Adjusted EBITDA | $ | 7,757 | $ | 6,529 | $ | 14,286 | $ | 8,139 | $ | 8,703 | $ | 16,842 | ||||||||||||
Reconciliation of Net Income to Free Cash Flow | ||||||||||||||||||||||||
Three Months Ended December 31, 2019 | Six Months Ended December 31, 2019 | |||||||||||||||||||||||
As Reported(1) | Adjustments | As Adjusted | As Reported(2) | Adjustments | As Adjusted | |||||||||||||||||||
Net income | $ | 6,477 | $ | 6,529 | $ | 13,006 | $ | 349 | $ | 8,703 | $ | 9,052 | ||||||||||||
Loss on discontinued operations | 56 | - | 56 | 4,042 | - | 4,042 | ||||||||||||||||||
Income from continuing operations | 6,533 | 6,529 | 13,062 | 4,391 | 8,703 | 13,094 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||
Change in deferred revenue (3) | (3,019 | ) | 1,710 | (1,309 | ) | 9,202 | (166 | ) | 9,036 | |||||||||||||||
Change in deferred costs (4) | (3,940 | ) | - | (3,940 | ) | (1,961 | ) | - | (1,961 | ) | ||||||||||||||
Changes in other operating assets and liabilities | 10,479 | (8,239 | ) | 2,240 | 17,259 | (8,537 | ) | 8,722 | ||||||||||||||||
Other adjustments (5) | 2,291 | - | 2,291 | 5,622 | - | 5,622 | ||||||||||||||||||
Net cash provided by operating activities | 12,344 | - | 12,344 | 34,513 | - | 34,513 | ||||||||||||||||||
Less: Purchases of property and equipment | (617 | ) | - | (617 | ) | (1,078 | ) | - | (1,078 | ) | ||||||||||||||
Free cash flow | $ | 11,727 | $ | - | $ | 11,727 | $ | 33,435 | $ | - | $ | 33,435 | ||||||||||||
(1) As reported in Form 8-K on February 6, 2020. | ||||||||||||||||||||||||
(2) Includes three months ended Sept. 30, 2019 as reported in Form 10-Q on Nov. 8, 2019 plus three months ended December 31, 2019 as reported in Form 8-K on Feb. 6, 2020. | ||||||||||||||||||||||||
(3) Consists of product royalties, customized software development fees, service fees and subscription fees. | ||||||||||||||||||||||||
(4) Consists primarily of third party content costs and customized software development expenses. | ||||||||||||||||||||||||
(5) Consist primarily of depreciation and amortization, stock-based compensation expense and other non-cash items. |
Telenav, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands, except par value) | ||||||||
(unaudited) | ||||||||
September 30, | June 30, | |||||||
2019 | 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 19,278 | $ | 27,275 | ||||
Short-term investments | 102,515 | 72,203 | ||||||
Accounts receivable, net of allowances of $7 and $7 at September 30, 2019 and June 30, 2019, respectively | 53,271 | 69,781 | ||||||
Restricted cash | 2,452 | 1,950 | ||||||
Deferred costs | 19,416 | 18,752 | ||||||
Prepaid expenses and other current assets | 4,281 | 3,784 | ||||||
Assets of discontinued operations, non-current | 1,788 | 6,330 | ||||||
Total current assets | 203,001 | 200,075 | ||||||
Property and equipment, net | 5,304 | 5,583 | ||||||
Operating lease right-of-use assets | 9,325 | - | ||||||
Deferred income taxes, non-current | 798 | 998 | ||||||
Goodwill and intangible assets, net | 15,483 | 15,701 | ||||||
Deferred costs, non-current | 58,379 | 61,050 | ||||||
Other assets | 18,977 | 1,414 | ||||||
Assets of discontinued operations, non-current | 259 | 12,194 | ||||||
Total assets | $ | 311,526 | $ | 297,015 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 17,804 | $ | 16,061 | ||||
Accrued expenses | 38,365 | 48,899 | ||||||
Operating lease liabilities | 3,566 | - | ||||||
Deferred revenue | 41,197 | 31,270 | ||||||
Income taxes payable | 635 | 800 | ||||||
Liabilities of discontinued operations | 1,876 | 3,373 | ||||||
Total current liabilities | 103,443 | 100,403 | ||||||
Deferred rent, non-current | - | 1,266 | ||||||
Operating lease liabilities, non-current | 7,011 | - | ||||||
Deferred revenue, non-current | 104,184 | 103,865 | ||||||
Other long-term liabilities | 639 | 811 | ||||||
Liabilities of discontinued operations, non-current | 107 | 30 | ||||||
Commitments and contingencies | - | - | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding | - | - | ||||||
Common stock, $0.001 par value: 600,000 shares authorized; 48,566 and 46,911 shares issued and outstanding at September 30, 2019 and June 30, 2019, respectively | 49 | 47 | ||||||
Additional paid-in capital | 192,055 | 182,349 | ||||||
Accumulated other comprehensive loss | (1,729 | ) | (1,477 | ) | ||||
Accumulated deficit | (94,233 | ) | (90,279 | ) | ||||
Total stockholders’ equity | 96,142 | 90,640 | ||||||
Total liabilities and stockholders’ equity | $ | 311,526 | $ | 297,015 |
Telenav, Inc. | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share amounts) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Revenue: | ||||||||
Product | $ | 55,990 | $ | 39,930 | ||||
Services | 10,639 | 6,322 | ||||||
Total revenue | 66,629 | 46,252 | ||||||
Cost of revenue: | ||||||||
Product | 31,989 | 23,588 | ||||||
Services | 4,862 | 3,954 | ||||||
Total cost of revenue | 36,851 | 27,542 | ||||||
Gross profit | 29,778 | 18,710 | ||||||
Operating expenses: | ||||||||
Research and development | 20,663 | 18,492 | ||||||
Sales and marketing | 1,946 | 1,703 | ||||||
General and administrative | 7,287 | 5,450 | ||||||
Total operating expenses | 29,896 | 25,645 | ||||||
Loss from operations | (118 | ) | (6,935 | ) | ||||
Other income, net | 561 | 1,590 | ||||||
Income (loss) from continuing operations before provision for income taxes | 443 | (5,345 | ) | |||||
Provision for income taxes | 411 | 740 | ||||||
Income (loss) from continuing operations | 32 | (6,085 | ) | |||||
Discontinued operations: | ||||||||
Income (loss) from operations of Advertising business, net of tax | 832 | (1,485 | ) | |||||
Loss from sale of Advertising business | (4,818 | ) | - | |||||
Loss on discontinued operations | (3,986 | ) | (1,485 | ) | ||||
Net loss | $ | (3,954 | ) | $ | (7,570 | ) | ||
Basic income (loss) per share: | ||||||||
Income (loss) from continuing operations | $ | 0.00 | $ | (0.14 | ) | |||
Loss on discontinued operations | (0.08 | ) | (0.03 | ) | ||||
Net income (loss) | $ | (0.08 | ) | $ | (0.17 | ) | ||
Diluted income (loss) per share: | ||||||||
Income (loss) from continuing operations | $ | 0.00 | $ | (0.14 | ) | |||
Loss on discontinued operations | (0.08 | ) | (0.03 | ) | ||||
Net income (loss) | $ | (0.08 | ) | $ | (0.17 | ) | ||
Weighted average shares used in computing income (loss) per share | ||||||||
Basic | 47,780 | 45,018 | ||||||
Diluted | 49,661 | 45,018 |
Telenav, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Operating activities | ||||||||
Net loss | $ | (3,954 | ) | $ | (7,570 | ) | ||
Loss on discontinued operations | 3,986 | 1,485 | ||||||
Income (loss) from continuing operations | 32 | (6,085 | ) | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Stock-based compensation expense | 1,752 | 2,048 | ||||||
Depreciation and amortization | 922 | 1,010 | ||||||
Operating lease amortization net of accretion | 544 | - | ||||||
Accretion of net premium on short-term investments | 12 | 5 | ||||||
Unrealized gain on non-marketable equity investments | - | (1,259 | ) | |||||
Realized loss on non-marketable equity investments | 100 | - | ||||||
Other | 1 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 16,355 | (252 | ) | |||||
Deferred income taxes | 171 | 198 | ||||||
Deferred costs | 1,979 | (4,381 | ) | |||||
Prepaid expenses and other current assets | (502 | ) | 369 | |||||
Other assets | 28 | (35 | ) | |||||
Trade accounts payable | 1,738 | 3,267 | ||||||
Accrued expenses and other liabilities | (10,259 | ) | (2,467 | ) | ||||
Income taxes payable | (152 | ) | 149 | |||||
Deferred rent | - | 37 | ||||||
Operating lease liabilities | (897 | ) | - | |||||
Deferred revenue | 10,345 | 6,842 | ||||||
Net cash provided by (used in) operating activities | 22,169 | (554 | ) | |||||
Investing activities | ||||||||
Purchases of property and equipment | (461 | ) | (99 | ) | ||||
Purchases of short-term investments | (41,418 | ) | (10,624 | ) | ||||
Purchases of long-term investments | (2,000 | ) | - | |||||
Proceeds from sales and maturities of short-term investments | 11,052 | 10,865 | ||||||
Net cash provided by (used in) investing activities | (32,827 | ) | 142 | |||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 8,306 | 24 | ||||||
Tax withholdings related to net share settlements of restricted stock units | (832 | ) | (1,206 | ) | ||||
Net cash provided by (used in) financing activities | 7,474 | (1,182 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (336 | ) | (239 | ) | ||||
Net decrease in cash, cash equivalents and restricted cash | (3,520 | ) | (1,833 | ) | ||||
Net cash used in discontinued operation | (3,975 | ) | (1,740 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of period | 29,225 | 20,099 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 21,730 | $ | 16,526 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid, net | $ | 739 | $ | 166 | ||||
Non-cash investing: Investment in LLC acquired in exchange for sale of Advertising business | $ | 15,600 | $ | - | ||||
Cash flow from discontinued operations: | ||||||||
Net cash used in operating activities | $ | (3,569 | ) | $ | (1,740 | ) | ||
Net cash used in financing activities | (406 | ) | - | |||||
Net cash transferred from continuing operations | 3,975 | 1,740 | ||||||
Net change in cash and cash equivalent from discontinued operation | - | - | ||||||
Cash and cash equivalent of discontinued operations, beginning of period | - | - | ||||||
Cash and cash equivalent of discontinued operations, end of period | $ | - | $ | - | ||||
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | ||||||||
Cash and cash equivalents | $ | 19,278 | $ | 13,596 | ||||
Restricted cash | 2,452 | 2,930 | ||||||
Total cash, cash equivalents and restricted cash | $ | 21,730 | $ | 16,526 |
Telenav, Inc. | ||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||
(in thousands) | ||||||
Reconciliation of Revenue to Billings | ||||||
Three Months Ended | ||||||
September 30, | ||||||
2019 | 2018 | |||||
Revenue | $ | 66,629 | $ | 46,252 | ||
Adjustments: | ||||||
Change in deferred revenue | 10,246 | 6,842 | ||||
Billings | $ | 76,875 | $ | 53,094 | ||
Telenav, Inc. | |||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||
(in thousands) | |||||||
Reconciliation of Deferred Revenue to Change in Deferred Revenue | |||||||
Reconciliation of Deferred Costs to Change in Deferred Costs | |||||||
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Deferred revenue, end of period | $ | 145,381 | $ | 81,380 | |||
Deferred revenue, beginning of period | 135,135 | 74,538 | |||||
Change in deferred revenue | $ | 10,246 | $ | 6,842 | |||
Deferred costs, end of period | $ | 77,795 | $ | 62,806 | |||
Deferred costs, beginning of period | 79,802 | 58,425 | |||||
Change in deferred costs(1) | $ | (2,007 | ) | $ | 4,381 | ||
(1) Deferred costs primarily include costs associated with third-party content and in connection with certain customized software solutions, the costs incurred to develop those solutions. We expect to incur additional costs in the future due to requirements to provide ongoing map updates and provisioning of services such as hosting, monitoring, customer support and, for certain customers, additional period content and associated technology costs. |
Telenav, Inc. | ||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||
(in thousands) | ||||||||
Reconciliation of Net Loss to Adjusted EBITDA | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Net loss | $ | (3,954 | ) | $ | (7,570 | ) | ||
Loss on discontinued operations | 3,986 | 1,485 | ||||||
Income (loss) from continuing operations | 32 | (6,085 | ) | |||||
Adjustments: | ||||||||
Stock-based compensation expense | 1,752 | 2,048 | ||||||
Depreciation and amortization expense | 922 | 1,010 | ||||||
Other income, net | (561 | ) | (1,590 | ) | ||||
Provision for income taxes | 411 | 740 | ||||||
Adjusted EBITDA | $ | 2,556 | $ | (3,877 | ) |
Telenav, Inc. | ||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||
(in thousands) | ||||||||
Reconciliation of Net Loss to Free Cash Flow | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Net loss | $ | (3,954 | ) | $ | (7,570 | ) | ||
Loss on discontinued operations | 3,986 | 1,485 | ||||||
Income (Loss) from continuing operations | 32 | (6,085 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Change in deferred revenue (1) | 10,345 | 6,842 | ||||||
Change in deferred costs (2) | 1,979 | (4,381 | ) | |||||
Changes in other operating assets and liabilities | 6,482 | 1,266 | ||||||
Other adjustments (3) | 3,331 | 1,804 | ||||||
Net cash provided by (used in) operating activities | 22,169 | (554 | ) | |||||
Less: Purchases of property and equipment | (461 | ) | (99 | ) | ||||
Free cash flow | $ | 21,708 | $ | (653 | ) | |||
(1) Consists of product royalties, customized software development fees, service fees and subscription fees. | ||||||||
(2) Consists primarily of third party content costs and customized software development expenses. | ||||||||
(3) Consist primarily of depreciation and amortization, stock-based compensation expense and other non-cash items. |
Telenav, Inc. | ||||||||||||
Summarized Financial Information Depicting the Impact of Restatement | ||||||||||||
(in thousands, except per share amounts) | ||||||||||||
(unaudited) | ||||||||||||
As of September 30, 2019 | ||||||||||||
As Reported Sept. 30, 2019 Form 10-Q | Adjustments | As Adjusted | ||||||||||
Assets | ||||||||||||
Accounts receivable | $ | 52,973 | $ | 298 | $ | 53,271 | ||||||
Total current assets | 202,703 | 298 | 203,001 | |||||||||
Total assets | 311,228 | 298 | 311,526 | |||||||||
Liabilities and stockholders' equity | ||||||||||||
Deferred revenue | 43,073 | (1,876 | ) | 41,197 | ||||||||
Accumulated deficit | (96,407 | ) | 2,174 | (94,233 | ) | |||||||
Total liabilities and stockholders' equity | 311,228 | 298 | 311,526 | |||||||||
Three Months Ended September 30, 2019 | ||||||||||||
As Reported Sept. 30, 2019 Form 10-Q | Adjustments | As Adjusted | ||||||||||
Revenue | ||||||||||||
Product | $ | 55,183 | $ | 807 | $ | 55,990 | ||||||
Services | 9,272 | 1,367 | 10,639 | |||||||||
Total revenue | 64,455 | 2,174 | 66,629 | |||||||||
Gross profit | 27,604 | 2,174 | 29,778 | |||||||||
Income (loss) from continuing operations | (2,142 | ) | 2,174 | 32 | ||||||||
Net income (loss) | (6,128 | ) | 2,174 | (3,954 | ) | |||||||
Income (loss) from continuing operations per share, basic and diluted | $ | (0.04 | ) | $ | 0.04 | - | ||||||
Net loss per share, basic and diluted | (0.13 | ) | 0.05 | (0.08 | ) | |||||||
Shares used in computing income (loss) per share | ||||||||||||
Basic | 47,780 | 47,780 | ||||||||||
Diluted | 47,780 | 49,648 | ||||||||||
Telenav, Inc. | ||||||||||||
Summarized Financial Information Depicting the Impact of Restatement of Non-GAAP Adjustments | ||||||||||||
(in thousands, except per share amounts) | ||||||||||||
(unaudited) | ||||||||||||
Reconciliation of Revenue to Billings | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||
As Reported Sept. 30, 2019 Form 10-Q | Adjustments | As Adjusted | ||||||||||
Revenue | $ | 64,455 | $ | 2,174 | $ | 66,629 | ||||||
Adjustments: | ||||||||||||
Change in deferred revenue | 12,122 | (1,876 | ) | 10,246 | ||||||||
Billings | $ | 76,577 | $ | 298 | $ | 76,875 | ||||||
Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||
As Reported Sept. 30, 2019 Form 10-Q | Adjustments | As Adjusted | ||||||||||
Net income (loss) | $ | (6,128 | ) | $ | 2,174 | $ | (3,954 | ) | ||||
Loss on discontinued operations | 3,986 | - | 3,986 | |||||||||
Income (loss) from continuing operations | (2,142 | ) | 2,174 | 32 | ||||||||
Adjustments: | ||||||||||||
Stock-based compensation expense | 1,752 | - | 1,752 | |||||||||
Depreciation and amortization expense | 922 | - | 922 | |||||||||
Other income, net | (561 | ) | - | (561 | ) | |||||||
Provision for income taxes | 411 | - | 411 | |||||||||
Adjusted EBITDA | $ | 382 | $ | 2,174 | $ | 2,556 | ||||||
Reconciliation of Net Income (Loss) to Free Cash Flow | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||
As Reported Sept. 30, 2019 Form 10-Q | Adjustments | As Adjusted | ||||||||||
Net income (loss) | $ | (6,128 | ) | $ | 2,174 | $ | (3,954 | ) | ||||
Loss on discontinued operations | 3,986 | - | 3,986 | |||||||||
Income (Loss) from continuing operations | (2,142 | ) | 2,174 | 32 | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Change in deferred revenue (1) | 12,221 | (1,876 | ) | 10,345 | ||||||||
Change in deferred costs (2) | 1,979 | - | 1,979 | |||||||||
Changes in other operating assets and liabilities | 6,780 | (298 | ) | 6,482 | ||||||||
Other adjustments (3) | 3,331 | - | 3,331 | |||||||||
Net cash provided by operating activities | 22,169 | - | 22,169 | |||||||||
Less: Purchases of property and equipment | (461 | ) | - | (461 | ) | |||||||
Free cash flow | $ | 21,708 | $ | - | $ | 21,708 | ||||||
(1) Consists of product royalties, customized software development fees, service fees and subscription fees. | ||||||||||||
(2) Consists primarily of third party content costs and customized software development expenses. | ||||||||||||
(3) Consist primarily of depreciation and amortization, stock-based compensation expense and other non-cash items. |
Source: Telenav, Inc.