“Telenav continued to improve its financial fundamentals in its fourth quarter of fiscal 2019, growing revenue and billings and significantly exceeding its goal of achieving positive adjusted cash flow for the fiscal year,” said HP Jin, Chairman and CEO of Telenav. “We are making solid progress toward our goal of creating the world’s largest network of connected cars, as evidenced by
“We also announced today two strategic transactions,” continued Jin. “The first accelerates our in-car commerce strategy to enable connected vehicles with location-based advertising and commerce through the transfer of our advertising business to a location-based advertising leader, inMarket Media. The second transaction monetizes our OpenTerra™ auto-grade location-based content-as-a-service platform via a deal with Southeast Asia’s leading ride-hailing platform, Grab.”
Financial Highlights for the Fourth Quarter and Fiscal Year Ended
- Total revenue for the fourth quarter of fiscal 2019 was $58.5 million, an increase of 10% compared with $53.1 million in the third quarter of fiscal 2019, and an increase of 4% compared with
$56.0 million in the fourth quarter of fiscal 2018. Total revenue for fiscal 2019 was$220.9 million , an increase of 1% compared with$218.5 million in fiscal 2018. Total revenue for the first half of fiscal 2019 was impacted by lower per unit pricing resulting from lower third-party content costs.
- Gross profit for the fourth quarter of fiscal 2019 was
$26.4 million , an increase of 12% compared with$23.4 million in the third quarter of fiscal 2019, and an increase of 9% compared with$24.2 million in the fourth quarter of fiscal 2018. Gross profit for fiscal 2019 was$96.2 million , an increase of 6% compared with$90.4 million in fiscal 2018.
- Billings for the fourth quarter of fiscal 2019 were $89.8 million, an increase of 30% compared with
$69.1 million in the third quarter of fiscal 2019, and an increase of 52% compared with$59.2 million in the fourth quarter of fiscal 2018. Billings in the fourth quarter of 2019 benefitted from a modification to a contract with a major tier one automotive supplier that triggered a one-time billing to the supplier of$17.0 million that was invoiced in the fourth quarter. Billings for fiscal 2019 were$281.5 million , an increase of 11% compared with$253.9 million for fiscal 2018.
- Net loss for the fourth quarter of fiscal 2019 was $(12.9) million, compared with
$(7.5) million for the third quarter of fiscal 2019 and$(7.5) million for the fourth quarter of fiscal 2018. The year over year quarterly and sequential increase in net loss was due primarily to a goodwill impairment charge recorded in the fourth quarter and increased variable compensation expense associated with an increase in billings. Net loss for fiscal 2019 was$(32.5) million , compared with$(40.8) million for fiscal 2018.
- Adjusted cash flow from operations (formerly referred to as adjusted EBITDA on billings) for the fourth quarter of fiscal 2019 was
$17.2 million , compared with$4.2 million in the third quarter of fiscal 2019 and $(2.5) million in the fourth quarter of fiscal 2018. The increase in adjusted cash flow from operations was a result of the one-time billing described above and higher unit volumes. Adjusted cash flow from operations for fiscal 2019 was$21.2 million , compared with$(12.8) million in fiscal 2018.
- Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $99.5 million as of June 30, 2019. This represented cash, cash equivalents and short-term investments of $2.12 per share, based on 46.9 million shares of common stock outstanding as of June 30, 2019.
Telenav had no debt as of June 30, 2019.
Recent Business Highlights
Telenav was the number one supplier of navigation software engines installed on vehicles produced inNorth America in 2018 according to IHSMarkit.
- 1.4 million
Telenav -equipped cars capable of connected services were deployed into the global market during the quarter endedJune 30, 2019 , bringing total cumulative connected units deployed to date to 14.6 million and total cumulative auto units deployed to 24.2 million.
Telenav introduced VIVID, a hybrid, cloud-connected and personalized in-vehicle infotainment system.
Telenav announced it would accelerate its connected-car media strategy through a strategic transaction with location-based marketing leader inMarket Media – see separate press release issued today.
Telenav announced a series of agreements with Southeast Asia’s leading ride-hailing platform Grab to monetize its OpenTerra™ auto-grade location-based content-as-a-service platform – see separate press release issued today.
Telenav hired formerHewlett Packard Enterprise (HPE) executiveAdeel Manzoor as Chief Financial Officer.
Toyota launched Scout GPS Link on the 2020 Prius Prime.
Telenav was selected by Daimler to power mapping in a new premium rear-seat entertainment system for the Mercedes-Benz E-class and the current Mercedes-Benz S-class.
Q1 Fiscal 2020 Business Outlook
For the first fiscal quarter ending September 30, 2019, Telenav offers the following guidance:
- Total revenue is expected to be $62 million to $64 million, assuming approximately
$6 million from the OpenTerra transaction with Grab and excluding advertising revenue.
- Billings are expected to be $70 million to $72 million, assuming approximately
$12 million from the OpenTerra transaction with Grab and excluding advertising billings.
- Gross margin is expected to be 42% to 44%.
- Operating expenses are expected to be $29 million to $31 million.
- Net loss is expected to be
$(4.5) million to $(5.5) million .
- Adjusted EBITDA is expected to be breakeven to
$1 million .
Beginning with the first quarter of fiscal 2020, the financial results of Telenav’s advertising business will be reported as discontinued operations in the company’s income statement. This guidance reflects that change in reporting structure. In addition, this guidance reflects the impact of the revenue and billings expected to be recognized and recorded in the first quarter of fiscal 2020 relating to the OpenTerra transaction.
The above information concerning guidance represents Telenav’s outlook only as of the date hereof, and is subject to change for various reasons, including due to developments relating to the transactions with inMarket Media and Grab, as a result of amendments to material contracts and other changes in business conditions. Telenav undertakes no obligation to update or revise any financial forecast or other forward-looking statements, as a result of new developments, or otherwise.
Conference Call and Quarterly Commentary
ASC 606 Implementation
As reported previously,
The adjustments required to transition to ASC 606 on
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 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.
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, M&A transaction expenses, net of tax, and goodwill impairment. Stock-based compensation expense relates to equity incentive awards granted to its employees, directors, and consultants. Legal settlements and contingencies represent settlements, offers made to settle, or loss accruals relating to litigation or other disputes in which
Adjusted cash flow from operations measures adjusted EBITDA plus the effect of changes in deferred revenue and deferred costs.
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. 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,
Free cash flow is a non-GAAP financial measure
In this press release,
Forward Looking Statements
This press release contains forward-looking statements that are based on
ABOUT
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-F
TNAV-C
Investor Relations:
Bishop IR
Mike Bishop
415-894-9633
IR@telenav.com
Media:
Raphel Finelli
408-667-5970
raphelf@telenav.com
Telenav, Inc. | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(in thousands, except par value) | |||||||||
(unaudited) | |||||||||
June 30, | |||||||||
2019 |
2018 As Adjusted (1) |
||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 27,275 | $ | 17,117 | |||||
Short-term investments | 72,203 | 67,829 | |||||||
Accounts receivable, net of allowances of $7 and $17 at June 30, 2019 and 2018, respectively | 75,792 | 46,188 | |||||||
Restricted cash | 1,950 | 2,982 | |||||||
Income taxes receivable | 4 | - | |||||||
Deferred costs | 18,752 | 11,759 | |||||||
Prepaid expenses and other current assets | 4,099 | 3,867 | |||||||
Total current assets | 200,075 | 149,742 | |||||||
Property and equipment, net | 5,655 | 6,987 | |||||||
Deferred income taxes, non-current | 939 | 867 | |||||||
Goodwill and intangible assets, net | 27,487 | 31,046 | |||||||
Deferred costs, non-current | 61,050 | 46,666 | |||||||
Other assets | 1,809 | 2,372 | |||||||
Total assets | $ | 297,015 | $ | 237,680 | |||||
Liabilities and stockholders’ equity | |||||||||
Current liabilities: | |||||||||
Trade accounts payable | $ | 17,034 | $ | 13,008 | |||||
Accrued expenses | 51,299 | 38,803 | |||||||
Deferred revenue | 31,270 | 20,714 | |||||||
Income taxes payable | 800 | 221 | |||||||
Total current liabilities | 100,403 | 72,746 | |||||||
Deferred rent, non-current | 1,296 | 1,112 | |||||||
Deferred revenue, non-current | 103,865 | 53,824 | |||||||
Other long-term liabilities | 811 | 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; 46,911 and 44,871 shares issued and outstanding at June 30, 2019 and 2018, respectively | 47 | 45 | |||||||
Additional paid-in capital | 182,349 | 167,895 | |||||||
Accumulated other comprehensive loss | (1,477 | ) | (1,855 | ) | |||||
Accumulated deficit | (90,279 | ) | (57,202 | ) | |||||
Total stockholders’ equity | 90,640 | 108,883 | |||||||
Total liabilities and stockholders’ equity | $ | 297,015 | $ | 237,680 | |||||
(1) Certain amounts have been adjusted to reflect the retrospective adoption of ASC 606. | |||||||||
Telenav, Inc. | |||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2019 | 2018 As Adjusted (1) |
2019 | 2018 As Adjusted (1) |
||||||||||||||
Revenue: | |||||||||||||||||
Product | $ | 44,569 | $ | 42,845 | $ | 168,619 | $ | 163,599 | |||||||||
Services | 13,883 | 13,142 | 52,277 | 54,864 | |||||||||||||
Total revenue | 58,452 | 55,987 | 220,896 | 218,463 | |||||||||||||
Cost of revenue: | |||||||||||||||||
Product | 25,110 | 25,275 | 97,245 | 102,224 | |||||||||||||
Services | 6,985 | 6,548 | 27,430 | 25,847 | |||||||||||||
Total cost of revenue | 32,095 | 31,823 | 124,675 | 128,071 | |||||||||||||
Gross profit | 26,357 | 24,164 | 96,221 | 90,392 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 24,252 | 21,548 | 83,953 | 85,646 | |||||||||||||
Sales and marketing | 5,187 | 4,894 | 19,322 | 20,748 | |||||||||||||
General and administrative | 7,117 | 5,219 | 23,811 | 21,562 | |||||||||||||
Goodwill impairment | 2,556 | - | 2,556 | 2,666 | |||||||||||||
Legal settlements and contingencies | 50 | - | 700 | 425 | |||||||||||||
Total operating expenses | 39,162 | 31,661 | 130,342 | 131,047 | |||||||||||||
Loss from operations | (12,805 | ) | (7,497 | ) | (34,121 | ) | (40,655 | ) | |||||||||
Other income, net | 213 | 433 | 2,916 | 833 | |||||||||||||
Loss before provision for income taxes | (12,592 | ) | (7,064 | ) | (31,205 | ) | (39,822 | ) | |||||||||
Provision for income taxes | 264 | 401 | 1,283 | 1,012 | |||||||||||||
Net loss | $ | (12,856 | ) | $ | (7,465 | ) | $ | (32,488 | ) | $ | (40,834 | ) | |||||
Net loss per share: | |||||||||||||||||
Basic and diluted | $ | (0.28 | ) | $ | (0.17 | ) | $ | (0.71 | ) | $ | (0.92 | ) | |||||
Weighted average shares used in computing net loss per share: | |||||||||||||||||
Basic and diluted | 46,271 | 44,806 | 45,577 | 44,498 | |||||||||||||
(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) | |||||||||
Fiscal Year Ended June 30, |
|||||||||
2019 | 2018 As Adjusted (1) |
||||||||
Operating activities | |||||||||
Net loss | $ | (32,488 | ) | $ | (40,834 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||
Stock-based compensation expense | 8,299 | 9,876 | |||||||
Depreciation and amortization | 3,980 | 3,609 | |||||||
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 | (30 | ) | 192 | ||||||
Goodwill impairment | 2,556 | 2,666 | |||||||
Bad debt expense | 10 | (24 | ) | ||||||
Loss (gain) on disposal of property and equipment | (7 | ) | 15 | ||||||
Unrealized gain on investments | (1,174 | ) | - | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (29,651 | ) | 11,708 | ||||||
Deferred income taxes | (94 | ) | 52 | ||||||
Income taxes receivable | (4 | ) | 34 | ||||||
Deferred costs | (21,377 | ) | (22,999 | ) | |||||
Prepaid expenses and other current assets | (237 | ) | 42 | ||||||
Other assets | 47 | (1,300 | ) | ||||||
Trade accounts payable | 4,005 | 6,836 | |||||||
Accrued expenses and other liabilities | 12,124 | (12,789 | ) | ||||||
Income taxes payable | 583 | 23 | |||||||
Deferred rent | 375 | 1,178 | |||||||
Deferred revenue | 60,597 | 35,424 | |||||||
Net cash provided by (used in) operating activities | 7,514 | (7,411 | ) | ||||||
Investing activities | |||||||||
Purchases of property and equipment | (1,399 | ) | (4,648 | ) | |||||
Purchases of short-term investments | (45,816 | ) | (49,287 | ) | |||||
Proceeds from sales and maturities of short-term investments | 43,737 | 58,404 | |||||||
Net cash provided by (used in) investing activities | (3,478 | ) | 4,469 | ||||||
Financing activities | |||||||||
Proceeds from exercise of stock options | 8,853 | 681 | |||||||
Repurchase of common stock | (1,303 | ) | - | ||||||
Tax withholdings related to net share settlements of restricted stock units | (1,982 | ) | (2,327 | ) | |||||
Net cash provided by (used in) financing activities | 5,568 | (1,646 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (478 | ) | 529 | ||||||
Net increase (decrease) in cash and cash equivalents | 9,126 | (4,059 | ) | ||||||
Cash and cash equivalents, at beginning of period | 20,099 | 24,158 | |||||||
Cash and cash equivalents, at end of period | $ | 29,225 | $ | 20,099 | |||||
Supplemental disclosure of cash flow information | |||||||||
Income taxes paid, net | $ | 1,128 | $ | 1,053 | |||||
Non-cash transfer of non-marketable equity securities to short-term investments | $ | 1,348 | $ | - | |||||
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | |||||||||
Cash and cash equivalents | $ | 27,275 | $ | 17,117 | |||||
Restricted cash | 1,950 | 2,982 | |||||||
Total cash, cash equivalents and restricted cash | $ | 29,225 | $ | 20,099 | |||||
(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 | Fiscal Year Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2019 | 2018 As Adjusted (1) |
2019 | 2018 As Adjusted (1) |
||||||||||||||
Automotive | |||||||||||||||||
Revenue | $ | 49,816 | $ | 46,977 | $ | 186,835 | $ | 177,842 | |||||||||
Cost of revenue | 28,431 | 27,214 | 109,758 | 109,001 | |||||||||||||
Gross profit | $ | 21,385 | $ | 19,763 | $ | 77,077 | $ | 68,841 | |||||||||
Gross margin | 43 | % | 42 | % | 41 | % | 39 | % | |||||||||
Advertising | |||||||||||||||||
Revenue | $ | 6,749 | $ | 6,061 | $ | 24,241 | $ | 27,229 | |||||||||
Cost of revenue | 2,843 | 3,353 | 11,527 | 13,341 | |||||||||||||
Gross profit | $ | 3,906 | $ | 2,708 | $ | 12,714 | $ | 13,888 | |||||||||
Gross margin | 58 | % | 45 | % | 52 | % | 51 | % | |||||||||
Mobile Navigation | |||||||||||||||||
Revenue | $ | 1,887 | $ | 2,949 | $ | 9,820 | $ | 13,392 | |||||||||
Cost of revenue | 821 | 1,256 | 3,390 | 5,729 | |||||||||||||
Gross profit | $ | 1,066 | $ | 1,693 | $ | 6,430 | $ | 7,663 | |||||||||
Gross margin | 56 | % | 57 | % | 65 | % | 57 | % | |||||||||
Total | |||||||||||||||||
Revenue | $ | 58,452 | $ | 55,987 | $ | 220,896 | $ | 218,463 | |||||||||
Cost of revenue | 32,095 | 31,823 | 124,675 | 128,071 | |||||||||||||
Gross profit | $ | 26,357 | $ | 24,164 | $ | 96,221 | $ | 90,392 | |||||||||
Gross margin | 45 | % | 43 | % | 44 | % | 41 | % | |||||||||
(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 | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Automotive | |||||||||||||||
Revenue | $ | 49,816 | $ | 46,977 | $ | 186,835 | $ | 177,842 | |||||||
Adjustments: | |||||||||||||||
Change in deferred revenue | 31,244 | 3,383 | 60,640 | 35,771 | |||||||||||
Billings | $ | 81,060 | $ | 50,360 | $ | 247,475 | $ | 213,613 | |||||||
Advertising | |||||||||||||||
Revenue | $ | 6,749 | $ | 6,061 | $ | 24,241 | $ | 27,229 | |||||||
Adjustments: | |||||||||||||||
Change in deferred revenue | - | - | - | - | |||||||||||
Billings | $ | 6,749 | $ | 6,061 | $ | 24,241 | $ | 27,229 | |||||||
Mobile Navigation | |||||||||||||||
Revenue | $ | 1,887 | $ | 2,949 | $ | 9,820 | $ | 13,392 | |||||||
Adjustments: | |||||||||||||||
Change in deferred revenue | 72 | (121 | ) | (43 | ) | (347 | ) | ||||||||
Billings | $ | 1,959 | $ | 2,828 | $ | 9,777 | $ | 13,045 | |||||||
Total | |||||||||||||||
Revenue | $ | 58,452 | $ | 55,987 | $ | 220,896 | $ | 218,463 | |||||||
Adjustments: | |||||||||||||||
Change in deferred revenue | 31,316 | 3,262 | 60,597 | 35,424 | |||||||||||
Billings | $ | 89,768 | $ | 59,249 | $ | 281,493 | $ | 253,887 | |||||||
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 June 30, 2019 | ||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||
Deferred revenue, ending | $ | 134,641 | $ | - | $ | 494 | $ | 135,135 | ||||||
Deferred revenue, beginning | 103,397 | - | 422 | 103,819 | ||||||||||
Change in deferred revenue | $ | 31,244 | $ | - | $ | 72 | $ | 31,316 | ||||||
Deferred costs, ending | $ | 79,802 | $ | - | $ | - | $ | 79,802 | ||||||
Deferred costs, beginning | 72,359 | - | - | 72,359 | ||||||||||
Change in deferred costs | $ | 7,443 | $ | - | $ | - | $ | 7,443 | ||||||
Three Months Ended June 30, 2018 | ||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||
Deferred revenue, ending | $ | 74,001 | $ | - | $ | 537 | $ | 74,538 | ||||||
Deferred revenue, beginning | 70,618 | - | 658 | 71,276 | ||||||||||
Change in deferred revenue | $ | 3,383 | $ | - | $ | (121 | ) | $ | 3,262 | |||||
Deferred costs, ending | $ | 58,425 | $ | - | $ | - | $ | 58,425 | ||||||
Deferred costs, beginning | 56,813 | - | - | 56,813 | ||||||||||
Change in deferred costs | $ | 1,612 | $ | - | $ | - | $ | 1,612 | ||||||
Fiscal Year Ended June 30, 2019 | ||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||
Deferred revenue, ending | $ | 134,641 | $ | - | $ | 494 | $ | 135,135 | ||||||
Deferred revenue, beginning | 74,001 | - | 537 | 74,538 | ||||||||||
Change in deferred revenue | $ | 60,640 | $ | - | $ | (43 | ) | $ | 60,597 | |||||
Deferred costs, ending | $ | 79,802 | $ | - | $ | - | $ | 79,802 | ||||||
Deferred costs, beginning | 58,425 | - | - | 58,425 | ||||||||||
Change in deferred costs | $ | 21,377 | $ | - | $ | - | $ | 21,377 | ||||||
Fiscal Year Ended June 30, 2018 | ||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||
Deferred revenue, ending | $ | 74,001 | $ | - | $ | 537 | $ | 74,538 | ||||||
Deferred revenue, beginning | 38,230 | - | 884 | 39,114 | ||||||||||
Change in deferred revenue | $ | 35,771 | $ | - | $ | (347 | ) | $ | 35,424 | |||||
Deferred costs, ending | $ | 58,425 | $ | - | $ | - | $ | 58,425 | ||||||
Deferred costs, beginning | 35,426 | - | - | 35,426 | ||||||||||
Change in deferred costs | $ | 22,999 | $ | - | $ | - | $ | 22,999 | ||||||
Telenav, Inc. | |||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Reconciliation of Gross Profit to Direct Contribution from Billings | |||||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Automotive | |||||||||||||||||
Gross profit | $ | 21,385 | $ | 19,763 | $ | 77,077 | $ | 68,841 | |||||||||
Gross margin | 43 | % | 42 | % | 41 | % | 39 | % | |||||||||
Adjustments to gross profit: | |||||||||||||||||
Change in deferred revenue | 31,244 | 3,383 | 60,640 | 35,771 | |||||||||||||
Change in deferred costs(1) | (7,443 | ) | (1,612 | ) | (21,377 | ) | (22,999 | ) | |||||||||
Net change | 23,801 | 1,771 | 39,263 | 12,772 | |||||||||||||
Direct contribution from billings (1) | $ | 45,186 | $ | 21,534 | $ | 116,340 | $ | 81,613 | |||||||||
Direct contribution margin from billings (1) | 56 | % | 43 | % | 47 | % | 38 | % | |||||||||
Advertising | |||||||||||||||||
Gross profit | $ | 3,906 | $ | 2,708 | $ | 12,714 | $ | 13,888 | |||||||||
Gross margin | 58 | % | 45 | % | 52 | % | 51 | % | |||||||||
Adjustments to gross profit: | |||||||||||||||||
Change in deferred revenue | - | - | - | - | |||||||||||||
Change in deferred costs | - | - | - | - | |||||||||||||
Net change | - | - | - | - | |||||||||||||
Direct contribution from billings | $ | 3,906 | $ | 2,708 | $ | 12,714 | $ | 13,888 | |||||||||
Direct contribution margin from billings | 58 | % | 45 | % | 52 | % | 51 | % | |||||||||
Mobile Navigation | |||||||||||||||||
Gross profit | $ | 1,066 | $ | 1,693 | $ | 6,430 | $ | 7,663 | |||||||||
Gross margin | 56 | % | 57 | % | 65 | % | 57 | % | |||||||||
Adjustments to gross profit: | |||||||||||||||||
Change in deferred revenue | 72 | (121 | ) | (43 | ) | (347 | ) | ||||||||||
Change in deferred costs | - | - | - | - | |||||||||||||
Net change | 72 | (121 | ) | (43 | ) | (347 | ) | ||||||||||
Direct contribution from billings | $ | 1,138 | $ | 1,572 | $ | 6,387 | $ | 7,316 | |||||||||
Direct contribution margin from billings | 58 | % | 56 | % | 65 | % | 56 | % | |||||||||
Total | |||||||||||||||||
Gross profit | $ | 26,357 | $ | 24,164 | $ | 96,221 | $ | 90,392 | |||||||||
Gross margin | 45 | % | 43 | % | 44 | % | 41 | % | |||||||||
Adjustments to gross profit: | |||||||||||||||||
Change in deferred revenue | 31,316 | 3,262 | 60,597 | 35,424 | |||||||||||||
Change in deferred costs(1) | (7,443 | ) | (1,612 | ) | (21,377 | ) | (22,999 | ) | |||||||||
Net change | 23,873 | 1,650 | 39,220 | 12,425 | |||||||||||||
Direct contribution from billings (1) | $ | 50,230 | $ | 25,814 | $ | 135,441 | $ | 102,817 | |||||||||
Direct contribution margin from billings (1) | 56 | % | 44 | % | 48 | % | 40 | % | |||||||||
(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. 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 | Fiscal Year Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net loss | $ | (12,856 | ) | $ | (7,465 | ) | $ | (32,488 | ) | $ | (40,834 | ) | ||||
Adjustments: | ||||||||||||||||
Goodwill impairment | 2,556 | - | 2,556 | 2,666 | ||||||||||||
Legal settlements and contingencies | 50 | - | 700 | 425 | ||||||||||||
M&A transaction costs | 562 | - | 562 | - | ||||||||||||
Deferred rent reversal due to lease termination | - | - | - | (538 | ) | |||||||||||
Tenant improvement allowance recognition due to lease termination | - | - | - | (582 | ) | |||||||||||
Stock-based compensation expense | 2,008 | 2,262 | 8,299 | 9,876 | ||||||||||||
Depreciation and amortization expense | 998 | 1,133 | 3,980 | 3,609 | ||||||||||||
Other income, net | (213 | ) | (433 | ) | (2,916 | ) | (833 | ) | ||||||||
Provision for income taxes | 264 | 401 | 1,283 | 1,012 | ||||||||||||
Adjusted EBITDA | (6,631 | ) | (4,102 | ) | (18,024 | ) | (25,199 | ) | ||||||||
Change in deferred revenue | 31,316 | 3,262 | 60,597 | 35,424 | ||||||||||||
Change in deferred costs(1) | (7,443 | ) | (1,612 | ) | (21,377 | ) | (22,999 | ) | ||||||||
Adjusted cash flow from operations(1) | $ | 17,242 | $ | (2,452 | ) | $ | 21,196 | $ | (12,774 | ) | ||||||
(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 period 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 | Fiscal Year Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net loss | $ | (12,856 | ) | $ | (7,465 | ) | $ | (32,488 | ) | $ | (40,834 | ) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Change in deferred revenue (1) | 31,316 | 3,262 | 60,597 | 35,424 | ||||||||||||
Change in deferred costs (2) | (7,443 | ) | (1,612 | ) | (21,377 | ) | (22,999 | ) | ||||||||
Changes in other operating assets and liabilities | (12,175 | ) | (944 | ) | (12,852 | ) | 5,784 | |||||||||
Other adjustments (3) | 5,636 | 3,426 | 13,634 | 15,214 | ||||||||||||
Net cash provided by (used in) operating activities | 4,478 | (3,333 | ) | 7,514 | (7,411 | ) | ||||||||||
Less: Purchases of property and equipment | (442 | ) | (76 | ) | (1,399 | ) | (4,648 | ) | ||||||||
Free cash flow | $ | 4,036 | $ | (3,409 | ) | $ | 6,115 | $ | (12,059 | ) | ||||||
(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 ASC 606 | ||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
As of June 30, 2018 | ||||||||||||||||||||||||
As Reported June 30, 2018 Form 10-K |
Adjustments | As Adjusted | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Deferred costs | $ | 31,888 | $ | (20,129 | ) | $ | 11,759 | |||||||||||||||||
Deferred costs, non-current | 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, non-current | 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 June 30, 2018 | Fiscal Year Ended June 30, 2018 | |||||||||||||||||||||||
As Reported August 7, 2018 Form 8-K |
Adjustments | As Adjusted | As Reported June 30, 2018 Form 10-K |
Adjustments | As Adjusted | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Product | $ | 5,858 | $ | 36,987 | $ | 42,845 | $ | 59,143 | $ | 104,456 | $ | 163,599 | ||||||||||||
Services | 10,761 | 2,381 | 13,142 | 47,037 | 7,827 | 54,864 | ||||||||||||||||||
Total revenue | 16,619 | 39,368 | 55,987 | 106,180 | 112,283 | 218,463 | ||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||
Product | 4,685 | 20,590 | 25,275 | 37,517 | 64,707 | 102,224 | ||||||||||||||||||
Services | 6,167 | 381 | 6,548 | 24,713 | 1,134 | 25,847 | ||||||||||||||||||
Total cost of revenue | 10,852 | 20,971 | 31,823 | 62,230 | 65,841 | 128,071 | ||||||||||||||||||
Gross profit | 5,767 | 18,397 | 24,164 | 43,950 | 46,442 | 90,392 | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Research and development | 22,291 | (743 | ) | 21,548 | 87,488 | (1,842 | ) | 85,646 | ||||||||||||||||
Total operating expenses | 32,404 | (743 | ) | 31,661 | 132,889 | (1,842 | ) | 131,047 | ||||||||||||||||
Loss from operations | (26,637 | ) | 19,140 | (7,497 | ) | (88,939 | ) | 48,284 | (40,655 | ) | ||||||||||||||
Net loss | (26,605 | ) | 19,140 | (7,465 | ) | (89,118 | ) | 48,284 | (40,834 | ) | ||||||||||||||
Net loss per share, basic and diluted | $ | (0.59 | ) | $ | 0.42 | $ | (0.17 | ) | $ | (2.00 | ) | $ | 1.08 | $ | (0.92 | ) | ||||||||
Source: Telenav, Inc.