Revenue Grew 97% Quarter on Quarter, 4% Year on Year; GAAP Net Income Grew to
Two OEM Wins During the First Quarter of Fiscal 2021
“We won two significant new OEM awards in the quarter, and continued to expand our installed base of
“We delivered a strong top and bottom line rebound, and significantly increased adjusted EBITDA in the first quarter of fiscal 2021. The financial results were driven by our customers’ automotive plant re-openings and return to higher levels of production than the fourth quarter of fiscal 2020, including
Financial Highlights for the First Quarter Ended
-
Total revenue for the first quarter of fiscal 2021 was
$69.6 million , an increase of 97% compared with$35.4 million in the fourth quarter of fiscal 2020, and an increase of 4% compared with$66.6 million in the first quarter of fiscal 2020. -
Services revenue for the first quarter of fiscal 2021 was
$12.8 million , an increase of 20% compared with$10.6 million in the first quarter of fiscal 2020. -
GAAP gross profit for the first quarter of fiscal 2021 was
$29.5 million , compared with$29.8 million in the first quarter of fiscal 2020. -
Billings, a non-GAAP measure, for the first quarter of fiscal 2021 were
$64.2 million , a decrease of 17% compared with$76.9 million in the first quarter of fiscal 2020. -
GAAP income from continuing operations before the provision for income taxes for the first quarter of fiscal 2021 was
$2.7 million , compared with$0.4 million for the first quarter of fiscal 2020. -
GAAP net income for the first quarter of fiscal 2021 was
$3.3 million , compared with a net loss of$(4.0) million for the first quarter of fiscal 2020. The first quarter of fiscal 2020 included a loss from discontinued operations of$(4.0) million . -
Adjusted EBITDA, a non-GAAP measure, for the first quarter of fiscal 2021 was
$5.6 million , an increase of 121% compared with$2.6 million for the first quarter of fiscal 2020. -
Ending cash, cash equivalents and short-term investments, excluding restricted cash, were
$98.8 million as ofSept. 30, 2020 . This represented cash, cash equivalents and short-term investments of$2.08 per share, based on 47.5 million shares of common stock outstanding as ofSept. 30, 2020 .Telenav had no debt as ofSept. 30, 2020 .
Recent Business Highlights
-
Telenav was awarded new business with two automobile OEMs in the first quarter: a US-based EV manufacturer and Chinese electric vehicle maker, Nio. -
Approximately 1.2 million
Telenav -equipped cars were deployed into the global market during the quarter endedSept. 30, 2020 , bringing total cumulative auto units deployed to date to 30.7 million.
Conference Call Cancellation
In light of the announced transaction with V99, Telenav’s earnings conference call scheduled for
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. 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
Forward Looking Statements
This press release, as well as the supplemental investor presentation
Additional Information and Where to Find It
This communication is being made in respect of the proposed transaction involving
Participants in the Solicitation
ABOUT
Copyright 2020 Telenav, Inc. All Rights Reserved.
TNAV-F
TNAV-C
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands, except par value) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
28,313 |
|
|
$ |
20,518 |
|
Short-term investments |
|
70,505 |
|
|
90,315 |
|
||
Accounts receivable, net of allowances of |
|
47,371 |
|
|
34,542 |
|
||
Restricted cash |
|
2,059 |
|
|
1,494 |
|
||
Deferred costs |
|
25,881 |
|
|
26,121 |
|
||
Prepaid expenses and other current assets |
|
4,839 |
|
|
4,505 |
|
||
Total current assets |
|
178,968 |
|
|
177,495 |
|
||
Property and equipment, net |
|
3,689 |
|
|
4,319 |
|
||
Operating lease right-of-use assets |
|
6,363 |
|
|
7,067 |
|
||
Deferred income taxes, non-current |
|
1,318 |
|
|
1,515 |
|
||
|
|
14,255 |
|
|
14,255 |
|
||
Deferred costs, non-current |
|
50,160 |
|
|
54,548 |
|
||
Other assets |
|
41,192 |
|
|
34,552 |
|
||
Total assets |
|
$ |
295,945 |
|
|
$ |
293,751 |
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Trade accounts payable |
|
$ |
19,728 |
|
|
$ |
12,291 |
|
Accrued expenses |
|
31,833 |
|
|
36,210 |
|
||
Operating lease liabilities |
|
2,824 |
|
|
2,786 |
|
||
Deferred revenue |
|
37,876 |
|
|
37,973 |
|
||
Income taxes payable |
|
223 |
|
|
715 |
|
||
Total current liabilities |
|
92,484 |
|
|
89,975 |
|
||
Operating lease liabilities, non-current |
|
4,654 |
|
|
5,191 |
|
||
Deferred revenue, non-current |
|
95,654 |
|
|
100,970 |
|
||
Other long-term liabilities |
|
664 |
|
|
645 |
|
||
Commitments and contingencies |
|
— |
|
|
— |
|
||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
— |
|
|
— |
|
||
Common stock, |
|
47 |
|
|
47 |
|
||
Additional paid-in capital |
|
194,912 |
|
|
192,170 |
|
||
Accumulated other comprehensive loss |
|
(432) |
|
|
(477) |
|
||
Accumulated deficit |
|
(92,038) |
|
|
(94,770) |
|
||
Total stockholders' equity |
|
102,489 |
|
|
96,970 |
|
||
Total liabilities and stockholders’ equity |
|
$ |
295,945 |
|
|
$ |
293,751 |
|
|
|
|
|
|
|
||||||||
Condensed Consolidated Statements of Operations |
||||||||
(in thousands, except per share amounts) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2020 |
|
2019 |
||||
Revenue: |
|
|
|
|
||||
Product |
|
$ |
56,809 |
|
|
$ |
55,990 |
|
Services |
|
12,787 |
|
|
10,639 |
|
||
Total revenue |
|
69,596 |
|
|
66,629 |
|
||
Cost of revenue: |
|
|
|
|
||||
Product |
|
32,530 |
|
|
31,989 |
|
||
Services |
|
7,553 |
|
|
4,862 |
|
||
Total cost of revenue |
|
40,083 |
|
|
36,851 |
|
||
Gross profit |
|
29,513 |
|
|
29,778 |
|
||
Operating expenses: |
|
|
|
|
||||
Research and development |
|
18,986 |
|
|
20,663 |
|
||
Sales and marketing |
|
1,996 |
|
|
1,946 |
|
||
General and administrative |
|
6,512 |
|
|
7,287 |
|
||
Total operating expenses |
|
27,494 |
|
|
29,896 |
|
||
Income (loss) from operations |
|
2,019 |
|
|
(118) |
|
||
Other income, net |
|
714 |
|
|
561 |
|
||
Income from continuing operations before provision for income taxes |
|
2,733 |
|
|
443 |
|
||
Provision for income taxes |
|
14 |
|
|
411 |
|
||
Equity in net (income) of equity method investees |
|
(616) |
|
|
— |
|
||
Income from continuing operations |
|
3,335 |
|
|
32 |
|
||
Discontinued operations: |
|
|
|
|
||||
Income from operations of Advertising business, net of tax |
|
— |
|
|
832 |
|
||
Loss from sale of Advertising business |
|
— |
|
|
(4,818) |
|
||
Loss on discontinued operations |
|
— |
|
|
(3,986) |
|
||
Net income (loss) |
|
$ |
3,335 |
|
|
$ |
(3,954) |
|
|
|
|
|
|
||||
Basic income (loss) per share: |
|
|
|
|
||||
Income from continuing operations |
|
$ |
0.07 |
|
|
$ |
— |
|
Loss on discontinued operations |
|
— |
|
|
(0.08) |
|
||
Net income (loss) |
|
$ |
0.07 |
|
|
$ |
(0.08) |
|
Diluted income (loss) per share: |
|
|
|
|
||||
Income from continuing operations |
|
$ |
0.07 |
|
|
$ |
— |
|
Loss on discontinued operations |
|
— |
|
|
(0.08) |
|
||
Net income (loss) |
|
$ |
0.07 |
|
|
$ |
(0.08) |
|
Weighted average shares used in computing income (loss) per share: |
|
|
|
|
||||
Basic |
|
47,227 |
|
|
47,780 |
|
||
Diluted |
|
47,841 |
|
|
49,648 |
|
||
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2020 |
|
2019 |
||||
Operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
3,335 |
|
|
$ |
(3,954) |
|
Loss on discontinued operations |
|
— |
|
|
3,986 |
|
||
Income from continuing operations |
|
3,335 |
|
|
32 |
|
||
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Stock-based compensation expense |
|
2,857 |
|
|
1,752 |
|
||
Depreciation and amortization |
|
760 |
|
|
922 |
|
||
Operating lease amortization, net of accretion |
|
710 |
|
|
544 |
|
||
Accretion of net premium on short-term investments |
|
85 |
|
|
12 |
|
||
Equity in net (income) of equity method investees |
|
(616) |
|
|
— |
|
||
Other |
|
(351) |
|
|
101 |
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
(12,653) |
|
|
16,355 |
|
||
Deferred income taxes |
|
245 |
|
|
171 |
|
||
Deferred costs |
|
4,694 |
|
|
1,979 |
|
||
Prepaid expenses and other current assets |
|
205 |
|
|
(502) |
|
||
Other assets |
|
(513) |
|
|
28 |
|
||
Trade accounts payable |
|
7,431 |
|
|
1,738 |
|
||
Accrued expenses and other liabilities |
|
(4,537) |
|
|
(10,259) |
|
||
Income taxes payable |
|
(500) |
|
|
(152) |
|
||
Operating lease liabilities |
|
(504) |
|
|
(897) |
|
||
Deferred revenue |
|
(5,656) |
|
|
10,345 |
|
||
Net cash provided by (used in) operating activities |
|
(5,008) |
|
|
22,169 |
|
||
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
(67) |
|
|
(461) |
|
||
Purchases of short-term investments |
|
(2,381) |
|
|
(41,418) |
|
||
Purchase of long-term investments |
|
(5,711) |
|
|
(2,000) |
|
||
Proceeds from sales and maturities of short-term investments |
|
21,791 |
|
|
11,052 |
|
||
Net cash provided by (used in) investing activities |
|
13,632 |
|
|
(32,827) |
|
||
Financing activities |
|
|
|
|
||||
Proceeds from exercise of stock options |
|
67 |
|
|
8,306 |
|
||
Tax withholdings related to net share settlements of restricted stock units |
|
(359) |
|
|
(832) |
|
||
Proceeds from issuance of common stock under employee stock purchase plan |
|
1,204 |
|
|
— |
|
||
Repurchase of common stock |
|
(1,630) |
|
|
— |
|
||
Net cash provided by (used in) financing activities |
|
(718) |
|
|
7,474 |
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
454 |
|
|
(336) |
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash, continuing operations |
|
8,360 |
|
|
(3,520) |
|
||
Net cash used in discontinued operations |
|
— |
|
|
(3,975) |
|
||
Cash, cash equivalents and restricted cash, beginning of period |
|
22,012 |
|
|
29,225 |
|
||
Cash, cash equivalents and restricted cash, end of period |
|
$ |
30,372 |
|
|
$ |
21,730 |
|
Supplemental disclosure of cash flow information |
|
|
|
|
||||
Income taxes paid, net |
|
$ |
472 |
|
|
$ |
739 |
|
Non-cash investing: Investment in inMarket |
|
$ |
— |
|
|
$ |
15,600 |
|
Cash flows from discontinued operations: |
|
|
|
|
||||
Net cash used in operating activities |
|
$ |
— |
|
|
$ |
(3,569) |
|
Net cash used in financing activities |
|
— |
|
|
(406) |
|
||
Net cash transferred from continuing operations |
|
— |
|
|
3,975 |
|
||
Net change in cash and cash equivalents from discontinued operations |
|
— |
|
|
— |
|
||
Cash and cash equivalents of discontinued operations, beginning of period |
|
— |
|
|
— |
|
||
Cash and cash equivalents of discontinued operations, end of period |
|
$ |
— |
|
|
$ |
— |
|
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
28,313 |
|
|
$ |
19,278 |
|
Restricted cash |
|
2,059 |
|
|
2,452 |
|
||
Total cash, cash equivalents and restricted cash |
|
$ |
30,372 |
|
|
$ |
21,730 |
|
|
Unaudited Reconciliation of Non-GAAP Adjustments |
(in thousands) |
Reconciliation of Revenue to Billings |
||||||||
|
|
|
||||||
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Revenue |
|
$ |
69,596 |
|
|
$ |
66,629 |
|
Adjustments: |
|
|
|
|
||||
Change in deferred revenue |
|
(5,413) |
|
|
10,246 |
|
||
Billings |
|
$ |
64,183 |
|
|
$ |
76,875 |
|
Reconciliation of Deferred Revenue to Change in Deferred Revenue |
||||||||
Reconciliation of Deferred Costs to Change in Deferred Costs |
||||||||
|
||||||||
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Deferred revenue, end of period |
|
$ |
133,530 |
|
|
$ |
145,381 |
|
Deferred revenue, beginning of period |
|
138,943 |
|
|
135,135 |
|
||
Change in deferred revenue |
|
$ |
(5,413) |
|
|
$ |
10,246 |
|
|
|
|
|
|
||||
Deferred costs, end of period |
|
$ |
76,041 |
|
|
$ |
77,795 |
|
Deferred costs, beginning of period |
|
80,669 |
|
|
79,802 |
|
||
Change in deferred costs(1) |
|
$ |
(4,628) |
|
|
$ |
(2,007) |
|
(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. |
|
|
Unaudited Reconciliation of Non-GAAP Adjustments |
(in thousands) |
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Net income (loss) |
|
$ |
3,335 |
|
|
$ |
(3,954) |
|
Loss on discontinued operations |
|
— |
|
|
3,986 |
|
||
Income from continuing operations |
|
3,335 |
|
|
32 |
|
||
Adjustments: |
|
|
|
|
||||
Stock-based compensation expense |
|
2,857 |
|
|
1,752 |
|
||
Depreciation and amortization expense |
|
760 |
|
|
922 |
|
||
Other income, net |
|
(714) |
|
|
(561) |
|
||
Provision for income taxes |
|
14 |
|
|
411 |
|
||
Equity in net (income) loss of equity method investees |
|
(616) |
|
|
— |
|
||
Adjusted EBITDA |
|
$ |
5,636 |
|
|
$ |
2,556 |
|
Reconciliation of Net Income (Loss) to Free Cash Flow |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Net income (loss) |
|
$ |
3,335 |
|
|
$ |
(3,954) |
|
Loss on discontinued operations |
|
— |
|
|
3,986 |
|
||
Income from continuing operations |
|
3,335 |
|
|
32 |
|
||
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Change in deferred revenue (1) |
|
(5,656) |
|
|
10,345 |
|
||
Change in deferred costs (2) |
|
4,694 |
|
|
1,979 |
|
||
Changes in other operating assets and liabilities |
|
(10,826) |
|
|
6,482 |
|
||
Other adjustments (3) |
|
3,445 |
|
|
3,331 |
|
||
Net cash provided by (used in) operating activities |
|
(5,008) |
|
|
22,169 |
|
||
Less: Purchases of property and equipment |
|
(67) |
|
|
(461) |
|
||
Free cash flow |
|
$ |
(5,075) |
|
|
$ |
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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201103005353/en/
Investor Relations:
Bishop IR
415-894-9633
IR@telenav.com
Source: