- Full Year Fiscal 2017 Total Revenue of $169.6 million
- Full Year Fiscal 2017 Total Billings of $233.6 million, up 17% year-over-year
- Full Year Fiscal 2017 Automotive Revenue of $123.8 million
- Full Year Fiscal 2017 Automotive Billings of $188.1 million, up 24% year-over-year
- Full Year Fiscal 2017 Advertising Revenue of $26.8 million, up 23% year-over-year
"Fiscal 2017 was an outstanding year for
Financial Highlights
-
Total revenue for the fourth quarter of fiscal 2017 was $40.3 million, compared with $35.1 million in the third quarter of fiscal 2017 and $47.8 million in the fourth quarter of fiscal 2016. Revenue for fiscal 2017 was $169.6 million, compared with $183.3 million in fiscal 2016. The decline in revenue was primarily due to the award of map update services from
Ford , which resulted in a change in how the company recognizes the resulting revenue. - Automotive revenue was $29.3 million, or 73 percent of total revenue, for the fourth quarter of fiscal 2017, compared with $25.5 million, or 73 percent of total revenue, in the third quarter of fiscal 2017 and $37.1 million, or 78 percent of total revenue, for the fourth quarter of fiscal 2016. Automotive revenue for fiscal 2017 was $123.8 million, or 73 percent of total revenue, compared with $135.4 million in fiscal 2016, or 74 percent of total revenue.
- Advertising revenue was $6.8 million, or 17 percent of total revenue, for the fourth quarter of fiscal 2017, compared with $5.3 million, or 15 percent of total revenue, in the third quarter of fiscal 2017, and $5.0 million, or 11 percent of total revenue, for the fourth quarter of fiscal 2016. Advertising revenue for fiscal 2017 was $26.8 million, or 16 percent of total revenue, compared with $21.7 million for fiscal 2016, or 12 percent of total revenue.
- Deferred revenue as of June 30, 2017 was $87.4 million, compared with $61.2 million as of March 31, 2017 and $23.4 million as of June 30, 2016.
- Billings for the fourth quarter of fiscal 2017 were $66.5 million, compared with $60.2 million in the third quarter of fiscal 2017 and $50.4 million in the fourth quarter of fiscal 2016. Billings for fiscal 2017 were $233.6 million, compared with $199.9 million for fiscal 2016.
- Operating expenses for the fourth quarter of fiscal 2017 were $30.3 million, compared with $30.6 million in third quarter of fiscal 2017 and $28.9 million in the fourth quarter of fiscal 2016. Operating expenses for fiscal 2017 were $124.6 million, compared with $117.1 million for fiscal 2016.
-
GAAP net loss for the fourth quarter of fiscal 2017 was ($12.8) million, or (
$0.29 ) per basic and diluted share, compared with a GAAP net loss of ($13.7) million, or ($0.31 ) per basic and diluted share, in the third quarter of fiscal 2017 and a GAAP net loss of ($8.0) million, or ($0.19 ) per basic and diluted share, for the fourth quarter of fiscal 2016. GAAP net loss for fiscal 2017 was ($47.3) million, or ($1.09 ) per basic and diluted share, compared with a GAAP net loss of ($35.3) million, or ($0.85 ) per basic and diluted share, in fiscal 2016. -
Adjusted EBITDA for the fourth quarter of fiscal 2017 was a (
$8.7 ) million loss compared with a ($9.9 ) million loss in the third quarter of fiscal 2017 and a ($4.6 ) million loss in the fourth quarter of fiscal 2016. In each period, adjusted EBITDA reflects our GAAP net loss adjusted for the impact of stock-based compensation expense, depreciation and amortization expense, interest and other income (expense), provision (benefit) for income taxes, and other applicable items such as legal settlements, contingencies and fees, restructuring accruals and reversals, and reversals of accruals related to deferred rent resulting from lease terminations. For fiscal 2017, adjusted EBITDA was a ($28.1 ) million loss compared with a ($21.5) million loss for fiscal 2016. - Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $98.4 million as of June 30, 2017. This represented cash and short-term investments of $2.24 per share, based on 43.9 million shares of common stock outstanding as of June 30, 2017. Telenav had no debt as of June 30, 2017.
-
Free cash flow for the fourth quarter of fiscal 2017 was $1.1 million, compared with (
$8.4 ) million in the third quarter of fiscal 2017 and $1.9 million in the fourth quarter of fiscal 2016. Free cash flow reflects net cash provided by (used in) operating activities, less purchases of property and equipment. For fiscal 2017, free cash flow was ($10.7 ) million compared with ($7.1 ) million for fiscal 2016.
Recent Business Highlights
-
Ford has chosenTelenav to provide connected services globally for Ford's SYNC® 3 platform starting with select model year 2018 vehicles. These services are powered by Telenav's Cloud service platform and Auto Navigation SDK. - General Motors successfully launched its first connected embedded navigation service on Cadillac CTS, in February of 2017, and remains on track to launch on select new models and geographies for model year 2018 vehicles. This service is powered by Telenav's cloud service platform, Auto Navigation SDK, mobile navigation SDK, and HMI.
-
Opel, previously a division of
GM and now a division ofPSA Group , launched Navi 4.0 IntelliLink, which utilizes Telenav's entry-level embedded navigation solution, in Opel's Adam andCorsa inEurope and will be available in other models later this year. This solution is powered by Telenav's Auto Navigation SDK. -
Toyota launched Telenav's latest version of Scout® GPS Link which is now available as a standard offering in allU.S. model year 2018 Camrys with additional models to follow. This offering is powered by Telenav Enhanced OSM platform, mobile SDK and HMI. -
Toyota launched its premium embedded navigation system utilizing Telenav's connected search as a standard feature for 3 years of service. This is now available through Toyota's Entune™ 3.0 Premium Audio option in select 2018 vehicles in the U.S. This offering is powered by Telenav's Cloud service platform. -
Daimler has selected Telenav's enhanced OSM platform and navigation SDK to power its Mercedes-Benz COMAND TOUCH®Rear Seat Entertainment system throughout the world.
"We are very excited with the successful rollout of our products into the market and the new initiatives we are working on with our customers," said
Business Outlook
For the quarter ending September 30, 2017, Telenav offers the following guidance, which reflects management's decision to defer its adoption of ASC 606, Revenue from Contracts with Customers, until
- Total revenue is expected to be $36 to $38 million;
- Automotive revenue is expected to be 69 to 72 percent of total revenue;
- Advertising revenue is expected to be approximately 21 percent of total revenue;
- Billings are expected to be $61 to $63 million;
-
Deferred revenue is expected to increase by approximately
$25 million ; -
Deferred costs are expected to increase by approximately
$18 million ; - GAAP gross margin is expected to be approximately 46 percent;
-
GAAP operating expenses are expected to be $32.5 to $33.5 million, and are net of a one-time
$1 million rent credit and an estimated$1.5 million in capitalized deferred software development costs; -
GAAP net loss is expected to be (
$15.5 ) to ($16.5) million; -
Adjusted EBITDA loss is expected to range from (
$12.5 ) to ($13.5) million; and - Weighted average diluted shares outstanding are expected to be approximately 44.5 million.
The above information concerning guidance represents
Conference Call
The company will host an investor conference call and live webcast at 2:00 p.m. PT (
Use of Non-GAAP Financial Measures
Billings measure GAAP revenue recognized plus the change in deferred revenue from the beginning to the end of the period. Non-GAAP gross profit on billings reflects GAAP gross profit plus change in deferred revenue less change in deferred costs. Non-GAAP gross margin on billings reflects non-GAAP gross profit on billings divided by billings.
Adjusted EBITDA measures GAAP net loss excluding the impact of stock-based compensation expense, depreciation and amortization, other income (expense), provision (benefit) for income taxes, and other applicable items such as legal settlements and fees, restructuring accruals and reversals, and deferred rent reversals due to lease termination, net of tax. Stock-based compensation expense relates to equity incentive awards granted to its employees, directors, and consultants. Legal settlements and fees represent settlements and offers made to settle patent litigation cases in which
Adjusted EBITDA on billings measures adjusted EBITDA plus the effect of changes in deferred revenue and deferred costs. Effective
Free cash flow is a non-GAAP financial measure
To reconcile the historical GAAP results to non-GAAP financial metrics, please refer to the reconciliations in the financial statements included in this earnings release.
In this earnings release,
Forward Looking Statements
This press release contains forward-looking statements that are based on
ABOUT
Copyright 2017 Telenav, Inc. All Rights Reserved.
"
TNAV-F
TNAV-C
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||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except par value) | ||||||||
2017 |
2016* |
|||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,757 | $ | 21,349 | ||||
Short-term investments | 77,598 | 88,277 | ||||||
Accounts receivable, net of allowances of |
57,834 | 42,216 | ||||||
Restricted cash | 3,401 | 5,109 | ||||||
Income taxes receivable | 34 | 687 | ||||||
Deferred costs | 11,703 | 1,784 | ||||||
Prepaid expenses and other current assets | 3,988 | 4,448 | ||||||
Total current assets | 175,315 | 163,870 | ||||||
Property and equipment, net | 4,658 | 5,247 | ||||||
Deferred income taxes, non-current | 900 | 661 | ||||||
|
34,844 | 35,993 | ||||||
Deferred costs, non-current | 42,389 | 10,292 | ||||||
Other assets | 1,454 | 2,184 | ||||||
Total assets | $ | 259,560 | $ | 218,247 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 6,151 | $ | 4,992 | ||||
Accrued expenses | 51,528 | 36,274 | ||||||
Deferred revenue | 20,345 | 4,334 | ||||||
Income taxes payable | 197 | 88 | ||||||
Total current liabilities | 78,221 | 45,688 | ||||||
Deferred rent, non-current | 996 | 1,124 | ||||||
Deferred revenue, non-current | 67,056 | 19,035 | ||||||
Other long-term liabilities | 1,139 | 2,715 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, |
— | — | ||||||
Common stock, |
44 | 43 | ||||||
Additional paid-in capital | 159,666 | 149,775 | ||||||
Accumulated other comprehensive loss | (1,934 | ) | (1,767 | ) | ||||
Retained earnings (accumulated deficit) | (45,628 | ) | 1,634 | |||||
Total stockholders' equity | 112,148 | 149,685 | ||||||
Total liabilities and stockholders' equity | $ | 259,560 | $ | 218,247 | ||||
*Derived from audited consolidated financial statements as of and for the year ended |
||||||||
|
|||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||||
|
|
||||||||||||||||
2017 | 2016 | 2017 | 2016* | ||||||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||||
Revenue: | |||||||||||||||||
Product | $ | 28,132 | $ | 36,249 | $ | 119,785 | $ | 132,454 | |||||||||
Services | 12,159 | 11,505 | 49,799 | 50,892 | |||||||||||||
Total revenue | 40,291 | 47,754 | 169,584 | 183,346 | |||||||||||||
Cost of revenue: | |||||||||||||||||
Product | 16,727 | 21,761 | 70,260 | 79,165 | |||||||||||||
Services | 5,738 | 5,011 | 22,075 | 21,632 | |||||||||||||
Total cost of revenue | 22,465 | 26,772 | 92,335 | 100,797 | |||||||||||||
Gross profit | 17,826 | 20,982 | 77,249 | 82,549 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 19,677 | 17,281 | 73,102 | 68,911 | |||||||||||||
Sales and marketing | 5,470 | 5,272 | 21,995 | 25,587 | |||||||||||||
General and administrative | 5,193 | 6,394 | 23,041 | 23,059 | |||||||||||||
Legal settlement and contingencies | - | - | 6,424 | 935 | |||||||||||||
Restructuring | - | (1 | ) | - | (1,362 | ) | |||||||||||
Total operating expenses | 30,340 | 28,946 | 124,562 | 117,130 | |||||||||||||
Loss from operations | (12,514 | ) | (7,964 | ) | (47,313 | ) | (34,581 | ) | |||||||||
Other income (expense), net | (260 | ) | 48 | 892 | (229 | ) | |||||||||||
Loss before provision for income taxes | (12,774 | ) | (7,916 | ) | (46,421 | ) | (34,810 | ) | |||||||||
Provision for income taxes | 36 | 82 | 841 | 511 | |||||||||||||
Net loss | $ | (12,810 | ) | $ | (7,998 | ) | $ | (47,262 | ) | $ | (35,321 | ) | |||||
Net loss per share: | |||||||||||||||||
Basic and diluted | $ | (0.29 | ) | $ | (0.19 | ) | $ | (1.09 | ) | $ | (0.85 | ) | |||||
Weighted average shares used in computing net loss per share: | |||||||||||||||||
Basic and diluted | 43,806 | 42,600 | 43,343 | 41,567 | |||||||||||||
*Derived from audited consolidated financial statements as of and for the year ended |
|||||||||||||||||
|
|||||||||
Consolidated Statements of Cash Flows | |||||||||
(in thousands) | |||||||||
Fiscal Year Ended |
|||||||||
2017 | 2016* | ||||||||
(unaudited) | |||||||||
Operating activities | |||||||||
Net loss | $ | (47,262 | ) | $ | (35,321 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation and amortization | 2,647 | 3,362 | |||||||
Accretion of net premium on short-term investments | 403 | 645 | |||||||
Stock-based compensation expense | 10,162 | 11,366 | |||||||
Write-off of long term investments | - | 977 | |||||||
(Gain) loss on disposal of property and equipment | (14 | ) | 398 | ||||||
Bad debt expense | 189 | 95 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (15,807 | ) | (5,817 | ) | |||||
Deferred income taxes | (239 | ) | 109 | ||||||
Restricted cash | 1,709 | (231 | ) | ||||||
Income taxes receivable | 654 | 5,393 | |||||||
Deferred costs | (42,016 | ) | (8,935 | ) | |||||
Prepaid expenses and other current assets | 459 | (592 | ) | ||||||
Other assets | 483 | 972 | |||||||
Trade accounts payable | 716 | 4,118 | |||||||
Accrued expenses and other liabilities | 14,257 | 4,730 | |||||||
Income taxes payable | 109 | (636 | ) | ||||||
Deferred rent | 66 | (272 | ) | ||||||
Deferred revenue | 64,032 | 16,541 | |||||||
Net cash used in operating activities | (9,452 | ) | (3,098 | ) | |||||
Investing activities | |||||||||
Purchases of property and equipment | (1,225 | ) | (4,004 | ) | |||||
Purchases of short-term investments | (64,957 | ) | (55,021 | ) | |||||
Proceeds from sales and maturities of short-term investments | 74,878 | 67,578 | |||||||
Proceeds from sales of long-term investments | 246 | - | |||||||
Net cash provided by investing activities | 8,942 | 8,553 | |||||||
Financing activities | |||||||||
Proceeds from exercise of stock options | 2,738 | 1,549 | |||||||
Repurchase of common stock | - | (570 | ) | ||||||
Tax withholdings related to net share settlements of restricted stock units | (3,008 | ) | (3,295 | ) | |||||
Net cash used in financing activities | (270 | ) | (2,316 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 188 | (511 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (592 | ) | 2,628 | ||||||
Cash and cash equivalents, at beginning of period | 21,349 | 18,721 | |||||||
Cash and cash equivalents, at end of period | $ | 20,757 | $ | 21,349 | |||||
Supplemental disclosure of cash flow information | |||||||||
Income taxes paid (received), net | $ | 1,872 | $ | (4,610 | ) | ||||
*Derived from audited consolidated financial statements as of and for the year ended |
|||||||||
|
||||||||||||||||
Consolidated Segment Summary | ||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||
Three Months Ended |
Fiscal Year Ended |
|||||||||||||||
2017 | 2016 | 2017 | 2016* | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||
Revenue: | ||||||||||||||||
Automotive | $ | 29,297 | $ | 37,066 | $ | 123,784 | $ | 135,372 | ||||||||
Advertising | 6,804 | 5,049 | 26,841 | 21,744 | ||||||||||||
Mobile Navigation | 4,190 | 5,639 | 18,959 | 26,230 | ||||||||||||
Total revenue | 40,291 | 47,754 | 169,584 | 183,346 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Automotive | 17,828 | 22,346 | 73,923 | 81,293 | ||||||||||||
Advertising | 3,055 | 2,758 | 12,724 | 12,296 | ||||||||||||
Mobile Navigation | 1,582 | 1,668 | 5,688 | 7,208 | ||||||||||||
Total cost of revenue | 22,465 | 26,772 | 92,335 | 100,797 | ||||||||||||
Gross profit: | ||||||||||||||||
Automotive | 11,469 | 14,720 | 49,861 | 54,079 | ||||||||||||
Advertising | 3,749 | 2,291 | 14,117 | 9,448 | ||||||||||||
Mobile Navigation | 2,608 | 3,971 | 13,271 | 19,022 | ||||||||||||
Total gross profit | $ | 17,826 | $ | 20,982 | $ | 77,249 | $ | 82,549 | ||||||||
Gross margin: | ||||||||||||||||
Automotive | 39 | % | 40 | % | 40 | % | 40 | % | ||||||||
Advertising | 55 | % | 45 | % | 53 | % | 43 | % | ||||||||
Mobile Navigation | 62 | % | 70 | % | 70 | % | 73 | % | ||||||||
Total gross margin | 44 | % | 44 | % | 46 | % | 45 | % | ||||||||
*Derived from audited consolidated financial statements as of and for the year ended |
||||||||||||||||
|
||||||||||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Reconciliation of Revenue to Billings | ||||||||||||||||||||||||||
Three Months Ended |
Fiscal Year Ended |
|||||||||||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | Automotive | Advertising | Mobile Navigation | Total | |||||||||||||||||||
Revenue | $ | 29,297 | $ | 6,804 | $ | 4,190 | $ | 40,291 | $ | 123,784 | $ | 26,841 | $ | 18,959 | $ | 169,584 | ||||||||||
Adjustments: | ||||||||||||||||||||||||||
Change in deferred revenue | 26,434 | - | (217 | ) | 26,217 | 64,364 | - | (332 | ) | 64,032 | ||||||||||||||||
Billings | $ | 55,731 | $ | 6,804 | $ | 3,973 | $ | 66,508 | $ | 188,148 | $ | 26,841 | $ | 18,627 | $ | 233,616 | ||||||||||
Three Months Ended |
Fiscal Year Ended |
|||||||||||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | Automotive | Advertising | Mobile Navigation | Total | |||||||||||||||||||
Revenue | $ | 37,066 | $ | 5,049 | $ | 5,639 | $ | 47,754 | $ | 135,372 | $ | 21,744 | $ | 26,230 | $ | 183,346 | ||||||||||
Adjustments: | ||||||||||||||||||||||||||
Change in deferred revenue | 2,718 | - | (56 | ) | 2,662 | 16,961 | - | (420 | ) | 16,541 | ||||||||||||||||
Billings | $ | 39,784 | $ | 5,049 | $ | 5,583 | $ | 50,416 | $ | 152,333 | $ | 21,744 | $ | 25,810 | $ | 199,887 | ||||||||||
|
|||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||||||||||||
(in thousands) | |||||||||||||||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit on Billings | |||||||||||||||||
Reconciliation of Gross Margin to Non-GAAP Gross Margin on Billings | |||||||||||||||||
Three Months Ended |
Fiscal Year Ended |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Gross profit | $ | 17,826 | $ | 20,982 | $ | 77,249 | $ | 82,549 | |||||||||
Gross margin | 44 | % | 44 | % | 46 | % | 45 | % | |||||||||
Adjustments to gross profit: | |||||||||||||||||
Change in deferred revenue | $ | 26,217 | $ | 2,662 | $ | 64,032 | $ | 16,541 | |||||||||
Change in deferred costs(1) | (17,876 | ) | (1,659 | ) | (42,016 | ) | (8,935 | ) | |||||||||
Net change | 8,341 | 1,003 | 22,016 | 7,606 | |||||||||||||
Non-GAAP gross profit on billings(1) | $ | 26,167 | $ | 21,985 | $ | 99,265 | $ | 90,155 | |||||||||
Non-GAAP gross margin on billings(1) | 39 | % | 44 | % | 42 | % | 45 | % | |||||||||
(1) Deferred costs primarily include costs associated with third party content and in connection with certain customized software solutions, the costs incurred to develop those solutions. We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support, including certain third party technology and content license fees, as applicable. Accordingly, non-GAAP gross profit on billings and non-GAAP gross margin on billings do not reflect all costs associated with billings. | |||||||||||||||||
|
|||||||||||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Reconciliation of Deferred Revenue to Increase (Decrease) in Deferred Revenue | |||||||||||||||||||||||||||
Reconciliation of Deferred Costs to Increase (Decrease) in Deferred Costs | |||||||||||||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | ||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
Deferred revenue, |
$ | 86,517 | $ | 22,153 | $ | - | $ | - | $ | 884 | $ | 1,216 | $ | 87,401 | $ | 23,369 | |||||||||||
Deferred revenue, |
60,083 | 19,435 | - | - | 1,101 | 1,272 | 61,184 | 20,707 | |||||||||||||||||||
Increase (decrease) in deferred revenue | $ | 26,434 | $ | 2,718 | $ | - | $ | - | $ | (217 | ) | $ | (56 | ) | $ | 26,217 | $ | 2,662 | |||||||||
Deferred costs, |
$ | 54,092 | $ | 12,076 | $ | - | $ | - | $ | - | $ | - | $ | 54,092 | $ | 12,076 | |||||||||||
Deferred costs, |
36,216 | 10,417 | - | - | - | - | 36,216 | 10,417 | |||||||||||||||||||
Increase in deferred costs | $ | 17,876 | $ | 1,659 | $ | - | $ | - | $ | - | $ | - | $ | 17,876 | $ | 1,659 | |||||||||||
Automotive | Advertising | Mobile Navigation | Total | ||||||||||||||||||||||||
Fiscal Year Ended |
Fiscal Year Ended |
Fiscal Year Ended |
Fiscal Year Ended |
||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
Deferred revenue, |
$ | 86,517 | $ | 22,153 | $ | - | $ | - | $ | 884 | $ | 1,216 | $ | 87,401 | $ | 23,369 | |||||||||||
Deferred revenue, |
22,153 | 5,192 | - | - | 1,216 | 1,636 | 23,369 | 6,828 | |||||||||||||||||||
Increase (decrease) in deferred revenue | $ | 64,364 | $ | 16,961 | $ | - | $ | - | $ | (332 | ) | $ | (420 | ) | $ | 64,032 | $ | 16,541 | |||||||||
Deferred costs, |
$ | 54,092 | $ | 12,076 | $ | - | $ | - | $ | - | $ | - | $ | 54,092 | $ | 12,076 | |||||||||||
Deferred costs, |
12,076 | 3,141 | - | - | - | - | 12,076 | 3,141 | |||||||||||||||||||
Increase in deferred costs | $ | 42,016 | $ | 8,935 | $ | - | $ | - | $ | - | $ | - | $ | 42,016 | $ | 8,935 | |||||||||||
|
|||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | |||||||||||||||||
(in thousands) | |||||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA and Adjusted EBITDA on Billings | |||||||||||||||||
Three Months Ended |
Fiscal Year Ended |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net loss | $ | (12,810 | ) | $ | (7,998 | ) | $ | (47,262 | ) | $ | (35,321 | ) | |||||
Adjustments: | |||||||||||||||||
Legal settlement and contingencies | - | 185 | 6,424 | 935 | |||||||||||||
Restructuring reversal | - | (1 | ) | - | (1,362 | ) | |||||||||||
Deferred rent reversal due to lease termination | - | - | - | (1,242 | ) | ||||||||||||
Stock-based compensation expense | 3,008 | 2,479 | 10,162 | 11,366 | |||||||||||||
Depreciation and amortization expense | 761 | 666 | 2,647 | 3,362 | |||||||||||||
Other income (expense), net | 260 | (48 | ) | (892 | ) | 229 | |||||||||||
Provision for income taxes | 36 | 82 | 841 | 511 | |||||||||||||
Adjusted EBITDA | (8,745 | ) | (4,635 | ) | (28,080 | ) | (21,522 | ) | |||||||||
Change in deferred revenue | 26,217 | 2,662 | 64,032 | 16,541 | |||||||||||||
Change in deferred costs(1) | (17,876 | ) | (1,659 | ) | (42,016 | ) | (8,935 | ) | |||||||||
Adjusted EBITDA on billings(1) | $ | (404 | ) | $ | (3,632 | ) | $ | (6,064 | ) | $ | (13,916 | ) | |||||
(1) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support, including certain third party technology and content license fees, as applicable. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. | |||||||||||||||||
|
||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Reconciliation of Net Loss to Free Cash Flow | ||||||||||||||||||
Three Months Ended |
Fiscal Year Ended |
|||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Net loss | $ | (12,810 | ) | $ | (7,998 | ) | $ | (47,262 | ) | $ | (35,321 | ) | ||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||||
Change in deferred revenue (1) | 26,217 | 2,662 | 64,032 | 16,541 | ||||||||||||||
Change in deferred costs (2) | (17,876 | ) | (1,659 | ) | (42,016 | ) | (8,935 | ) | ||||||||||
Changes in other operating assets and liabilities | 2,060 | 7,395 | 2,407 | 7,774 | ||||||||||||||
Other adjustments (3) | 3,875 | 3,716 | 13,387 | 16,843 | ||||||||||||||
Net cash provided by (used in) operating activities | 1,466 | 4,116 | (9,452 | ) | (3,098 | ) | ||||||||||||
Less: Purchases of property and equipment | (358 | ) | (2,229 | ) | (1,225 | ) | (4,004 | ) | ||||||||||
Free cash flow | $ | 1,108 | $ | 1,887 | $ | (10,677 | ) | $ | (7,102 | ) | ||||||||
(1) Consists of royalties, customized software development 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. | ||||||||||||||||||
|
||||||||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||
GAAP Consolidated |
Non-GAAP Consolidated |
|
Automotive (1) | Mobile Navigation (1) |
Total Non-GAAP Automotive and Mobile Navigation (1) |
|||||||||||||||||||
Revenue | $ | 40,291 | $ | 6,804 | $ | 29,297 | $ | 4,190 | $ | 33,487 | ||||||||||||||
Cost of revenue | 22,465 | 3,055 | 17,828 | 1,582 | 19,410 | |||||||||||||||||||
Gross profit | 17,826 | 3,749 | 11,469 | 2,608 | 14,077 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 19,677 | 1,280 | (2 | ) | 18,397 | |||||||||||||||||||
Sales and marketing | 5,470 | 2,762 | (2 | ) | 2,708 | |||||||||||||||||||
General and administrative | 5,193 | 191 | (3 | ) | 5,002 | |||||||||||||||||||
Total operating expenses | 30,340 | 4,233 | 26,107 | |||||||||||||||||||||
Loss from operations | (12,514 | ) | (484 | ) | (12,030 | ) | ||||||||||||||||||
Other income (expense), net | (260 | ) | - | (4 | ) | (260 | ) | |||||||||||||||||
Loss before provision for income taxes | (12,774 | ) | (484 | ) | (12,290 | ) | ||||||||||||||||||
Provision for income taxes | 36 | - | (5 | ) | 36 | |||||||||||||||||||
Net loss | $ | (12,810 | ) | $ | (12,810 | ) | $ | (484 | ) | $ | (12,326 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Stock-based compensation expense | 3,008 | 216 | (2 | ) | 2,792 | |||||||||||||||||||
Depreciation and amortization expense | 761 | 47 | (2 | ) | 714 | |||||||||||||||||||
Other income (expense), net | 260 | - | (4 | ) | 260 | |||||||||||||||||||
Provision for income taxes | 36 | - | (5 | ) | 36 | |||||||||||||||||||
Adjusted EBITDA | (8,745 | ) | (221 | ) | (8,524 | ) | ||||||||||||||||||
Change in deferred revenue | 26,217 | - | 26,217 | |||||||||||||||||||||
Change in deferred costs(6) | (17,876 | ) | - | (17,876 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(6) | $ | (404 | ) | $ | (221 | ) | $ | (183 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to fully attribute the operating expenses, other income (expense), net and provision for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment: | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment, such as accounting and human resources. | ||||||||||||||||||||||||
(4) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(5) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(6) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support, including certain third party technology and content license fees, as applicable. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. | ||||||||||||||||||||||||
|
||||||||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||
GAAP Consolidated |
Non-GAAP Consolidated |
|
Automotive (1) | Mobile Navigation (1) |
Total Non-GAAP Automotive and Mobile Navigation (1) |
|||||||||||||||||||
Revenue | $ | 47,754 | $ | 5,049 | $ | 37,066 | $ | 5,639 | $ | 42,705 | ||||||||||||||
Cost of revenue | 26,772 | 2,758 | 22,346 | 1,668 | 24,014 | |||||||||||||||||||
Gross profit | 20,982 | 2,291 | 14,720 | 3,971 | 18,691 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 17,281 | 1,214 | (2 | ) | 16,067 | |||||||||||||||||||
Sales and marketing | 5,272 | 2,725 | (2 | ) | 2,547 | |||||||||||||||||||
General and administrative | 6,209 | 458 | (3 | ) | 5,751 | |||||||||||||||||||
Legal settlement and contingencies | 185 | - | (4 | ) | 185 | |||||||||||||||||||
Restructuring | (1 | ) | (1 | ) | (2 | ) | - | |||||||||||||||||
Total operating expenses | 28,946 | 4,396 | 24,550 | |||||||||||||||||||||
Loss from operations | (7,964 | ) | (2,105 | ) | (5,859 | ) | ||||||||||||||||||
Other income (expense), net | 48 | - | (5 | ) | 48 | |||||||||||||||||||
Loss before benefit from income taxes | (7,916 | ) | (2,105 | ) | (5,811 | ) | ||||||||||||||||||
Provision for income taxes | 82 | - | (6 | ) | 82 | |||||||||||||||||||
Net loss | $ | (7,998 | ) | $ | (7,998 | ) | $ | (2,105 | ) | $ | (5,893 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 185 | - | (4 | ) | 185 | |||||||||||||||||||
Stock-based compensation expense | 2,479 | 295 | (2 | ) | 2,184 | |||||||||||||||||||
Restructuring | (1 | ) | (1 | ) | (2 | ) | - | |||||||||||||||||
Depreciation and amortization expense | 666 | 60 | (2 | ) | 606 | |||||||||||||||||||
Other income (expense), net | (48 | ) | - | (5 | ) | (48 | ) | |||||||||||||||||
Provision for income taxes | 82 | - | (6 | ) | 82 | |||||||||||||||||||
Adjusted EBITDA | (4,635 | ) | (1,751 | ) | (2,884 | ) | ||||||||||||||||||
Change in deferred revenue | 2,662 | - | 2,662 | |||||||||||||||||||||
Change in deferred costs(7) | (1,659 | ) | - | (1,659 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | (3,632 | ) | $ | (1,751 | ) | $ | (1,881 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to fully attribute the operating expenses, other income (expense), net and provision for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment: | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment, such as accounting and human resources. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support, including certain third party technology and content license fees, as applicable. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. | ||||||||||||||||||||||||
|
||||||||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Fiscal Year Ended |
||||||||||||||||||||||||
GAAP Consolidated |
Non-GAAP Consolidated |
|
Automotive (1) | Mobile Navigation (1) |
Total Non-GAAP Automotive and Mobile Navigation (1) |
|||||||||||||||||||
Revenue | $ | 169,584 | $ | 26,841 | $ | 123,784 | $ | 18,959 | $ | 142,743 | ||||||||||||||
Cost of revenue | 92,335 | 12,724 | 73,923 | 5,688 | 79,611 | |||||||||||||||||||
Gross profit | 77,249 | 14,117 | 49,861 | 13,271 | 63,132 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 73,102 | 5,066 | (2 | ) | 68,036 | |||||||||||||||||||
Sales and marketing | 21,995 | 10,525 | (2 | ) | 11,470 | |||||||||||||||||||
General and administrative | 23,041 | 1,187 | (3 | ) | 21,854 | |||||||||||||||||||
Legal settlement and contingencies | 6,424 | - | (4 | ) | 6,424 | |||||||||||||||||||
Total operating expenses | 124,562 | 16,778 | 107,784 | |||||||||||||||||||||
Loss from operations | (47,313 | ) | (2,661 | ) | (44,652 | ) | ||||||||||||||||||
Other income (expense), net | 892 | - | (5 | ) | 892 | |||||||||||||||||||
Loss before provision for income taxes | (46,421 | ) | (2,661 | ) | (43,760 | ) | ||||||||||||||||||
Provision for income taxes | 841 | - | (6 | ) | 841 | |||||||||||||||||||
Net loss | $ | (47,262 | ) | $ | (47,262 | ) | $ | (2,661 | ) | $ | (44,601 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 6,424 | - | (4 | ) | 6,424 | |||||||||||||||||||
Stock-based compensation expense | 10,162 | 874 | (2 | ) | 9,288 | |||||||||||||||||||
Depreciation and amortization expense | 2,647 | 200 | (2 | ) | 2,447 | |||||||||||||||||||
Other income (expense), net | (892 | ) | - | (5 | ) | (892 | ) | |||||||||||||||||
Provision for income taxes | 841 | - | (6 | ) | 841 | |||||||||||||||||||
Adjusted EBITDA | (28,080 | ) | (1,587 | ) | (26,493 | ) | ||||||||||||||||||
Change in deferred revenue | 64,032 | - | 64,032 | |||||||||||||||||||||
Change in deferred costs(7) | (42,016 | ) | - | (42,016 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | (6,064 | ) | $ | (1,587 | ) | $ | (4,477 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to fully attribute the operating expenses, other income (expense), net and provision for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment: | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment, such as accounting and human resources. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support, including certain third party technology and content license fees, as applicable. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. | ||||||||||||||||||||||||
|
||||||||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Fiscal Year Ended |
||||||||||||||||||||||||
GAAP Consolidated |
Non-GAAP Consolidated |
|
Automotive (1) | Mobile Navigation (1) |
Total Non-GAAP Automotive and Mobile Navigation (1) |
|||||||||||||||||||
Revenue | $ | 183,346 | $ | 21,744 | $ | 135,372 | $ | 26,230 | $ | 161,602 | ||||||||||||||
Cost of revenue | 100,797 | 12,296 | 81,293 | 7,208 | 88,501 | |||||||||||||||||||
Gross profit | 82,549 | 9,448 | 54,079 | 19,022 | 73,101 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 68,911 | 4,722 | (2 | ) | 64,189 | |||||||||||||||||||
Sales and marketing | 25,587 | 13,822 | (2 | ) | 11,765 | |||||||||||||||||||
General and administrative | 23,059 | 1,996 | (3 | ) | 21,063 | |||||||||||||||||||
Legal settlement and contingencies | 935 | - | (4 | ) | 935 | |||||||||||||||||||
Restructuring | (1,362 | ) | (230 | ) | (2 | ) | (1,132 | ) | ||||||||||||||||
Total operating expenses | 117,130 | 20,310 | 96,820 | |||||||||||||||||||||
Loss from operations | (34,581 | ) | (10,862 | ) | (23,719 | ) | ||||||||||||||||||
Other income (expense), net | (229 | ) | - | (5 | ) | (229 | ) | |||||||||||||||||
Loss before provision for income taxes | (34,810 | ) | (10,862 | ) | (23,948 | ) | ||||||||||||||||||
Provision for income taxes | 511 | - | (6 | ) | 511 | |||||||||||||||||||
Net loss | $ | (35,321 | ) | $ | (35,321 | ) | $ | (10,862 | ) | $ | (24,459 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 935 | - | (4 | ) | 935 | |||||||||||||||||||
Stock-based compensation expense | 11,366 | 1,150 | (2 | ) | 10,216 | |||||||||||||||||||
Restructuring | (1,362 | ) | (230 | ) | (2 | ) | (1,132 | ) | ||||||||||||||||
Deferred rent reversal due to lease termination | (1,242 | ) | (300 | ) | (2 | ) | (942 | ) | ||||||||||||||||
Depreciation and amortization expense | 3,362 | 810 | (2 | ) | 2,552 | |||||||||||||||||||
Other income (expense), net | 229 | - | (5 | ) | 229 | |||||||||||||||||||
Provision for income taxes | 511 | - | (6 | ) | 511 | |||||||||||||||||||
Adjusted EBITDA | (21,522 | ) | (9,432 | ) | (12,090 | ) | ||||||||||||||||||
Change in deferred revenue | 16,541 | - | 16,541 | |||||||||||||||||||||
Change in deferred costs(7) | (8,935 | ) | - | (8,935 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | (13,916 | ) | $ | (9,432 | ) | $ | (4,484 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to fully attribute the operating expenses, other income (expense), net and provision for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment: | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment, such as accounting and human resources. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support, including certain third party technology and content license fees, as applicable. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. |
Investor Relations:Michael Look 408-990-1232 IR@telenav.com Media:Raphel Finelli 408-667-5970 media@telenav.com
Source:
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