Document
false0001474439 0001474439 2020-05-07 2020-05-07
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2020
TELENAV, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-34720
77-0521800
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

4655 Great America Parkway, Suite 300
Santa Clara, California 95054
(Address of principal executive offices, including zip code)
(408) 245-3800
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $0.001 Par Value per Share
TNAV
The NASDAQ Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).    Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02. Results of Operations and Financial Condition

On May 7, 2020, Telenav, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2020 and a supplemental investor presentation regarding the results of the quarter ended March 31, 2020. Copies of the press release and supplemental investor presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference. On the same day, the Company will host an investor conference call and live webcast at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The Company is making reference to non-GAAP financial information in the press release, supplemental investor presentation and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release, supplemental investor presentation and the financial tables attached to each.


Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit Number
Description
 
 
Press release of Telenav, Inc. dated May 7, 2020
Supplemental investor presentation of Telenav, Inc. dated May 7, 2020





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
TELENAV, INC.
 
 
 
 
Date: May 7, 2020
By:    /s/ Adeel Manzoor
 
Name:    Adeel Manzoor
 
Title:     Chief Financial Officer
 
 


Exhibit


https://cdn.kscope.io/2f0549a2563110c7e1745b1ccb4914c3-tnavearningsreleasea01a01a38.gif


Telenav Reports Third Quarter Fiscal 2020 Financial Results
Third Consecutive Quarter of Double-Digit Revenue Growth and Positive Adjusted EBITDA
Revenue of $64 Million, up 33% YoY; Adjusted EBITDA of $1.6 Million
Cash Balance Grew 43% YoY to $124 Million


SANTA CLARA, Calif., May 7, 2020 — Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected car and location-based products and services, today released its financial results for the third fiscal quarter ended March 31, 2020. In connection with this announcement, the company also posted a supplemental financial results presentation on its website. Please visit Telenav’s investor relations website at http://investor.telenav.com to view the financial results and materials, and additional commentary regarding the information in this release.
“Telenav executed well in a challenging economic environment, driving strong financial results,” said HP Jin, Chairman and CEO of Telenav. “We responded to the pandemic quickly to maintain productivity of our staff and maintain engineering schedules. We also maintained operational discipline and managed costs, thereby positioning the company to win deals that will emerge as the growth of connected vehicles opens new OEM opportunities.”

Financial highlights for the third quarter ended March 31, 2020
Total revenue for the third quarter of fiscal 2020 was $64.5 million, an increase of 33% compared with $48.5 million in the third quarter of fiscal 2019. Product revenue for the third quarter of fiscal 2020 was $52.1 million, an increase of 25% compared with $41.7 million in the third quarter of fiscal 2019. Services revenue for the third quarter of fiscal 2020 was $12.4 million, an increase of 82% compared with $6.8 million in the third quarter of fiscal 2019.
GAAP gross profit was $29.0 million in the third quarter of fiscal 2020, an increase of 37% compared with $21.1 million in the third quarter of fiscal 2019.
Billings, a non-GAAP measure, for the third quarter of fiscal 2020 were $63.5 million, a decrease of 2% compared with $64.6 million in the third quarter of fiscal 2019.
GAAP loss from continuing operations for the third quarter of fiscal 2020 was $(1.2) million, compared with $(5.9) million in the third quarter of fiscal 2019.
GAAP net loss for the third quarter of fiscal 2020 was $(0.7) million, compared with $(7.5) million for the third quarter of fiscal 2019.
Adjusted EBITDA, a non-GAAP measure, for the third quarter of fiscal 2020 was $1.6 million, compared with a loss of $(3.3) million for the third quarter of fiscal 2019.
Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $123.7 million as of March 31, 2020, an increase of $24.3 million compared with





$99.5 million as of June 30, 2019. This represented cash, cash equivalents and short-term investments of $2.62 per share, based on approximately 47.3 million shares of common stock outstanding as of March 31, 2020. Telenav had no debt as of March 31, 2020.
Telenav repurchased approximately 926,000 shares in the third quarter of fiscal 2020 for approximately $5.3 million.
Recent Business Highlights
Telenav continued to execute on its connected car platform strategy to capitalize on the $500B connected car market.
Telenav achieved Automotive SPICE® Level 2 Certification.
Telenav and Alpine have teamed to develop an easy, low-cost aftermarket way to quickly upgrade existing in-vehicle infotainment systems to Telenav’s VIVID™ solution.
Telenav increased its investment in MotionAuto, an intelligent, usage-based insurance company, as part of its In-Car Commerce and Communications domain initiatives.
1.2 million Telenav-equipped cars capable of connected services were deployed into the global market during the quarter ended March 31, 2020, bringing total cumulative connected units deployed to date to 18.6 million and total cumulative auto units deployed to 28.4 million.

The company intends to provide information regarding its ongoing business and outlook for its fourth quarter fiscal 2020 on the conference call.

Conference Call and Quarterly Commentary
Telenav will host an investor conference call and live webcast on Thursday, May 7, 2020 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Management has posted a supplemental financial results presentation in combination with Telenav’s Third Quarter Fiscal Year 2020 Financial Results press release on its investor relations website. To listen to the webcast and view Telenav’s quarterly presentation, please visit Telenav’s investor relations website at http://investor.telenav.com.  Listeners can also access the conference call by dialing 866-548-4713 (toll-free, domestic only) or 323-794-2093 (domestic and international toll) and entering pass code 8265409. A replay of the conference call will be available for two weeks beginning approximately two hours after the call’s completion. To access the replay, dial 888-203-1112 (toll-free, domestic only) or 719-457-0820 (domestic and international toll) and enter pass code 8265409.
Use of Non-GAAP Financial Measures
Telenav prepares its financial statements in accordance with generally accepted accounting principles for the United States, or GAAP. The non-GAAP financial measures such as billings, change in deferred revenue, change in deferred costs, adjusted EBITDA, and free cash flow included in this press release are different from those otherwise presented under GAAP. Telenav has provided these measures in addition to GAAP financial results because management believes these non-GAAP measures help provide a consistent basis for comparison between periods that are not influenced by certain items and, therefore, are helpful in understanding Telenav’s





underlying operating results. These non-GAAP measures are some of the primary measures Telenav’s management uses for planning and forecasting. These measures are not in accordance with, or an alternative to, GAAP and these non-GAAP measures may not be comparable to information provided by other companies.

To reconcile the historical GAAP results to non-GAAP financial metrics, please refer to the reconciliations in the financial statements included in this earnings release.

Billings equals 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, Telenav has provided a similar presentation of the change in the related deferred costs. Such deferred costs primarily include costs associated with third party content and certain development costs associated with its customized software solutions whereby customized engineering fees are earned. As the company enters into more hybrid and brought-in navigation programs, deferred revenue and deferred costs become larger components of its operating results, so Telenav believes these metrics are useful in evaluating cash flows.

Telenav considers billings to be a useful metric for management and investors because billings drive revenue and deferred revenue, which is an important indicator of its business. There are a number of limitations related to the use of billings versus revenue calculated in accordance with GAAP. First, billings include amounts that have not yet been recognized as revenue or cost and may require additional services or costs to be provided over contracted service periods. For example, billings related to certain brought-in solutions cannot be fully recognized as revenue in a given period due to requirements for ongoing map updates and provisioning of services such as hosting, monitoring, customer support and, for certain customers, additional period content and associated technology costs. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures, making comparisons between companies more difficult. Accordingly, when Telenav uses this measure, it attempts to compensate for these limitations by providing specific information regarding billings and how they relate to revenue calculated in accordance with GAAP.

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 Telenav is a party or the indemnitor of a party. M&A transaction expenses relate primarily to costs associated with transactions, such as the inMarket Transaction and the Grab Transaction.

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, Telenav believes that the exclusion of the expenses eliminated in calculating adjusted EBITDA and can provide a useful measure for period-to-period comparisons of Telenav’s core business. Accordingly, Telenav believes that adjusted EBITDA generally provides useful information to investors and





others in understanding and evaluating our operating results in the same manner as Telenav’s management and board of directors.

Free cash flow is a non-GAAP financial measure Telenav defines as net cash provided by (used in) operating activities, less purchases of property and equipment. Telenav considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash (used in) generated by its business after purchases of property and equipment.

In the conference call associated with this press release, or in the supplemental investor presentation on its website, Telenav may provide guidance for the fourth quarter of fiscal 2020 on a non-GAAP basis for billings and adjusted EBITDA. Telenav does not provide reconciliations of these forward-looking non-GAAP financial measures to the corresponding GAAP measures due to the high variability and difficulty in making accurate forecasts and projections with respect to deferred revenue, deferred costs, stock-based compensation and tax provision (benefit), which are components of these non-GAAP financial measures. In particular, stock-based compensation is impacted by future hiring and retention needs, as well as the future fair market value of Telenav’s common stock, all of which is difficult to predict and subject to constant change. The actual amounts of these items will have a significant impact on Telenav’s net loss per diluted share and tax provision (benefit). Accordingly, reconciliations of Telenav’s forward-looking non-GAAP financial measures to the corresponding GAAP measures are not available without unreasonable effort.

Forward Looking Statements
This press release contains forward-looking statements that are based on Telenav management’s beliefs and assumptions and on information currently available to its management.  Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, among others: the impact of the COVID-19 on business activity, including but not limited to the shutdown of manufacturing operations by Ford, GM and other automobile manufacturer customers, consumer demand for new vehicles and the Company’s operations; when Ford, GM and other automobile manufacturer partners will resume partial or full production and the impact the continued period of reduced volume of new vehicles being produced will have on our revenue and operating results; the ensuing economic recession; the Company’s ability to achieve future revenue currently estimated under customer engagements, including the Company’s ability to determine, achieve and accurately recognize revenue under customer engagements, including specifically related to the Company’s transaction with Grab Holdings; the Company's ability to develop and implement products for Ford, GM and Toyota and to support Ford, GM and Toyota and their customers; the impact of Ford’s announcement regarding the elimination of various sedans in North America over the near term; the impact of tariffs on sales of automobiles in the United States and other markets; the Company’s success in extending its contracts for current and new generation of products with its existing automobile manufacturers and tier ones, particularly Ford; the impact of GM’s announcement regarding Google Automotive Services; the Company’s ability to achieve additional design wins and the delivery dates of automobiles including the Company’s products; adoption by vehicle purchasers of Scout GPS Link; the Company’s ability to remediate its material weaknesses in its internal control over financial reporting and disclosures, and timely demonstrate such mitigation, including as it may relate to the Company’s recognition of revenue,





including under the Grab Transaction; the Company’s dependence on a limited number of automobile manufacturers and tier ones for a substantial portion of its revenue and the impact of labor stoppages on those automobile manufacturers’ and tier ones’ ability to produce vehicles; reductions in demand for automobiles; potential impacts of automobile manufacturers and tier ones including competitive capabilities in their vehicles such as Apple CarPlay and Android Auto; the Company’s continued reporting of losses and operating expenses in excess of expectations; the timing of new product releases and vehicle production by the Company’s automotive customers, including inventory procurement and fulfillment; possible warranty claims, and the impact on consumer perception of its brand; the Company’s ability to perform under its initiatives with Amazon and Microsoft, and benefit from those initiatives; the potential that the Company may not be able to realize its deferred tax assets and may have to take a reserve against them. Telenav discusses these risks in greater detail in “Risk Factors” and elsewhere in its Form 10-K for the fiscal year ended June 30, 2019 and other filings with the U.S. Securities and Exchange Commission (“SEC”), which are available at the SEC’s website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent management’s beliefs and assumptions only as of the date made. You should review the company’s SEC filings carefully and with the understanding that actual future results may be materially different from what Telenav expect.
ABOUT TELENAV, INC.
Telenav is a leading provider of connected car and location-based services, focused on transforming life on the go for people - before, during, and after every drive. Leveraging our location platform, we enable our customers to deliver custom connected car and mobile experiences. To learn more about how Telenav’s location platform powers personalized navigation, mapping, big data intelligence, social driving, and location-based advertising, visit www.telenav.com.
Copyright 2020 Telenav, Inc. All Rights Reserved.
Telenav and the “Telenav” logo are registered trademarks and “VIVID” is a trademark of Telenav, Inc. All rights reserved. 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)
 
 
 
 
 
 
 
March 31,
2020
 
June 30,
2019
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
16,476

 
$
27,275

Short-term investments
 
107,273

 
72,203

Accounts receivable, net of allowances of $6 and $7 at March 31, 2020 and June 30, 2019, respectively
 
41,926

 
69,781

Restricted cash
 
1,541

 
1,950

Deferred costs
 
29,744

 
18,752

Prepaid expenses and other current assets
 
3,477

 
3,784

Assets of discontinued operations
 

 
6,330

Total current assets
 
200,437

 
200,075

Property and equipment, net
 
5,411

 
5,583

Operating lease right-of-use assets
 
7,909

 

Deferred income taxes, non-current
 
1,081

 
998

Goodwill and intangible assets, net
 
14,255

 
15,701

Deferred costs, non-current
 
52,954

 
61,050

Other assets
 
33,504

 
1,414

Assets of discontinued operations, non-current
 

 
12,194

Total assets
 
$
315,551

 
$
297,015

Liabilities and stockholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Trade accounts payable
 
$
24,082


$
16,061

Accrued expenses
 
36,208


48,899

Operating lease liabilities
 
3,161



Deferred revenue
 
43,841

 
31,270

Income taxes payable

537


800

Liabilities of discontinued operations
 

 
3,373

Total current liabilities

107,829


100,403

Deferred rent, non-current



1,266

Operating lease liabilities, non-current
 
5,785

 

Deferred revenue, non-current

99,361


103,865

Other long-term liabilities

667


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; 47,288 and 46,911 shares issued and outstanding at March 31, 2020 and June 30, 2019, respectively

47


47

Additional paid-in capital

189,387


182,349

Accumulated other comprehensive loss

(2,004
)

(1,477
)
Accumulated deficit

(85,521
)

(90,279
)
Total stockholders' equity
 
101,909

 
90,640

Total liabilities and stockholders’ equity
 
$
315,551

 
$
297,015

 
 
 
 
 





Telenav, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
March 31,
 
March 31,
 
 
2020
 
2019
 
2020
 
2019
Revenue:
 
 
 
 
 
 
 
 
Product
 
$
52,106

 
$
41,723

 
$
169,639

 
$
124,050

Services
 
12,390

 
6,817

 
35,361

 
20,902

Total revenue
 
64,496

 
48,540

 
205,000

 
144,952

Cost of revenue:
 
 
 
 
 
 
 
 
Product
 
27,664

 
23,532

 
86,087

 
72,135

Services
 
7,859

 
3,917

 
20,009

 
11,762

Total cost of revenue
 
35,523

 
27,449

 
106,096

 
83,897

Gross profit
 
28,973

 
21,091

 
98,904

 
61,055

Operating expenses:
 
 
 
 
 
 
 
 
Research and development
 
21,617

 
19,322

 
61,997

 
55,580

Sales and marketing
 
2,166

 
2,167

 
6,246

 
5,535

General and administrative
 
6,403

 
5,523

 
20,118

 
16,694

Legal settlements and contingencies
 

 

 

 
650

Total operating expenses
 
30,186

 
27,012

 
88,361

 
78,459

Income (loss) from operations
 
(1,213
)
 
(5,921
)
 
10,543

 
(17,404
)
Other income, net
 
1,088

 
581

 
2,245

 
2,703

Income (loss) from continuing operations before provision for income taxes
 
(125
)
 
(5,340
)
 
12,788

 
(14,701
)
Provision for income taxes
 
505

 
194

 
1,121

 
1,036

Equity in net (income) loss of equity method investees
 
103

 

 
(694
)
 

Income (loss) from continuing operations
 
(733
)
 
(5,534
)
 
12,361

 
(15,737
)
Discontinued operations:
 
 
 
 
 
 
 
 
Income (loss) from operations of Advertising business, net of tax
 

 
(1,947
)
 
832

 
(3,895
)
Loss from sale of Advertising business
 

 

 
(4,874
)
 

Loss on discontinued operations
 

 
(1,947
)
 
(4,042
)
 
(3,895
)
Net income (loss)
 
$
(733
)
 
$
(7,481
)
 
$
8,319

 
$
(19,632
)
 
 
 
 
 
 
 
 
 
Basic income (loss) per share:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
(0.02
)
 
$
(0.12
)
 
$
0.26

 
$
(0.35
)
Loss on discontinued operations
 

 
(0.04
)
 
(0.08
)
 
(0.09
)
Net income (loss)
 
$
(0.02
)
 
$
(0.16
)
 
$
0.17

 
$
(0.43
)
Diluted income (loss) per share:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
(0.02
)
 
$
(0.12
)
 
$
0.25

 
$
(0.35
)
Loss on discontinued operations
 

 
(0.04
)
 
(0.08
)
 
(0.09
)
Net income (loss)
 
$
(0.02
)
 
$
(0.16
)
 
$
0.17

 
$
(0.43
)
Weighted average shares used in computing income (loss) per share:
 
 
 
 
 
 
 
 
Basic
 
47,902

 
45,585

 
48,053

 
45,347

Diluted
 
47,902

 
45,585

 
49,022

 
45,347






Telenav, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
Nine Months Ended
 
 
March 31,
 
 
2020
 
2019
Operating activities
 
 
 
 
Net income (loss)
 
$
8,319

 
$
(19,632
)
Loss on discontinued operations
 
4,042

 
3,895

Income (loss) from continuing operations
 
12,361

 
(15,737
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
Stock-based compensation expense
 
5,189

 
5,611

Depreciation and amortization
 
2,685

 
2,982

Operating lease amortization, net of accretion
 
2,153

 

Accretion of net premium on short-term investments
 
157

 
(15
)
Unrealized gain on non-marketable equity investments
 

 
(1,260
)
Equity in net income of equity method investees
 
(694
)
 

Gain on sale of intellectual property and workforce to Grab
 
(45
)
 

Non-cash revenue associated with grant of perpetual license to Grab
 
(5,831
)
 

Other
 
(38
)
 
(22
)
Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
28,334

 
(11,581
)
Deferred income taxes
 
(110
)
 
209

Deferred costs
 
(2,924
)
 
(13,934
)
Prepaid expenses and other current assets
 
1,463

 
(162
)
Other assets
 
(21
)
 
(123
)
Trade accounts payable
 
7,913

 
12,020

Accrued expenses and other liabilities
 
(13,910
)
 
(1,728
)
Income taxes payable
 
(252
)
 
160

Deferred rent
 

 
488

Operating lease liabilities
 
(2,791
)
 

Deferred revenue
 
8,042

 
29,281

Net cash provided by operating activities
 
41,681

 
6,189

Investing activities
 
 
 
 
Purchases of property and equipment
 
(1,320
)
 
(956
)
Purchases of short-term investments
 
(67,347
)
 
(31,044
)
Purchase of long-term investments
 
(9,500
)
 

Proceeds from sales and maturities of short-term investments
 
31,789

 
34,214

Net cash provided by (used in) investing activities
 
(46,378
)
 
2,214

Financing activities
 
 
 
 
Proceeds from exercise of stock options
 
8,390

 
1,356

Tax withholdings related to net share settlements of restricted stock units
 
(1,230
)
 
(1,831
)
Repurchase of common stock
 
(9,353
)
 
(1,303
)
Net cash used in financing activities
 
(2,193
)
 
(1,778
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(343
)
 
(401
)
Net increase (decrease) in cash, cash equivalents and restricted cash, continuing operations
 
(7,233
)
 
6,224

Net cash used in discontinued operations
 
(3,975
)
 
(3,154
)
Cash, cash equivalents and restricted cash, beginning of period
 
29,225

 
20,099

Cash, cash equivalents and restricted cash, end of period
 
$
18,017

 
$
23,169

Supplemental disclosure of cash flow information
 
 
 
 
Income taxes paid, net
 
$
1,626

 
$
730

Non-cash investing: Investment in inMarket Media, LLC acquired in exchange for sale of Advertising business
 
$
15,600

 
$

Non-cash sale of assets to Grab in exchange for equity investment and software
 
$
7,012

 
$

Cash flows from discontinued operations:
 
 
 
 
Net cash used in operating activities
 
$
(3,569
)
 
$
(3,154
)
Net cash used in financing activities
 
(406
)
 

Net cash transferred from continuing operations
 
3,975

 
3,154

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
 
$
16,476

 
$
21,254

Restricted cash
 
1,541

 
1,915

Total cash, cash equivalents and restricted cash
 
$
18,017

 
$
23,169







Telenav, Inc.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands)
 
 
Reconciliation of Revenue to Billings
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Nine Months Ended
March 31,
 
 
2020
 
2019
 
2020
 
2019
Revenue
 
$
64,496

 
$
48,540

 
$
205,000

 
$
144,952

Adjustments:
 
 
 
 
 
 
 
 
Change in deferred revenue
 
(969
)
 
16,047

 
8,067

 
29,281

Billings
 
$
63,527

 
$
64,587

 
$
213,067

 
$
174,233





Reconciliation of Deferred Revenue to Change in Deferred Revenue
Reconciliation of Deferred Costs to Change in Deferred Costs
 
 
 
Three Months Ended March 31,
 
Nine Months Ended
March 31,
 
 
2020
 
2019
 
2020
 
2019
Deferred revenue, end of period
 
$
143,202

 
$
103,819

 
$
143,202

 
$
103,819

Deferred revenue, beginning of period
 
144,171

 
87,772

 
135,135

 
74,538

Change in deferred revenue
 
$
(969
)
 
$
16,047

 
$
8,067

 
$
29,281

 
 
 
 
 
 
 
 
 
Deferred costs, end of period
 
$
82,698

 
$
72,359

 
$
82,698

 
$
72,359

Deferred costs, beginning of period
 
81,763

 
65,465

 
79,802

 
58,425

Change in deferred costs(1)
 
$
935

 
$
6,894

 
$
2,896

 
$
13,934

 
 
 
 
 
 
 
 
 
(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 March 31,
 
Nine Months Ended
March 31,
 
 
2020
 
2019
 
2020
 
2019
Net income (loss)
 
$
(733
)
 
$
(7,481
)
 
$
8,319

 
$
(19,632
)
Loss on discontinued operations
 

 
1,947

 
4,042

 
3,895

Income (loss) from continuing operations
 
(733
)
 
(5,534
)
 
12,361

 
(15,737
)
Adjustments:
 
 
 
 
 
 
 
 
Legal settlement and contingencies
 

 

 

 
650

Stock-based compensation expense
 
1,959

 
1,688

 
5,189

 
5,611

Depreciation and amortization expense
 
829

 
966

 
2,685

 
2,982

Other income, net
 
(1,088
)
 
(581
)
 
(2,245
)
 
(2,703
)
Provision for income taxes
 
505

 
194

 
1,121

 
1,036

Equity in net (income) loss of equity method investees
 
103

 

 
(694
)
 

Adjusted EBITDA
 
$
1,575

 
$
(3,267
)
 
$
18,417

 
$
(8,161
)


 
Reconciliation of Net Income (Loss) to Free Cash Flow
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Nine Months Ended
March 31,
 
 
2020
 
2019
 
2020
 
2019
Net income (loss)
 
$
(733
)
 
$
(7,481
)
 
$
8,319

 
$
(19,632
)
Loss on discontinued operations
 

 
1,947

 
4,042

 
3,895

Income (loss) from continuing operations
 
(733
)
 
(5,534
)
 
12,361

 
(15,737
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
Change in deferred revenue (1)
 
(994
)
 
16,047

 
8,042

 
29,281

Change in deferred costs (2)
 
(963
)
 
(6,894
)
 
(2,924
)
 
(13,934
)
Changes in other operating assets and liabilities
 
11,904

 
(5,019
)
 
20,626

 
(717
)
Other adjustments (3)
 
(2,046
)
 
2,630

 
3,576

 
7,296

Net cash provided by operating activities
 
7,168

 
1,230

 
41,681

 
6,189

Less: Purchases of property and equipment
 
(242
)
 
(511
)
 
(1,320
)
 
(956
)
Free cash flow
 
$
6,926

 
$
719

 
$
40,361

 
$
5,233

 
 
 
 
 
 
 
 
 
(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.


tnavex992fy20q3suppinves
May 7, 2020 Announcement Telenav Q3 FY20Earnings © 2019


 
resultsmay be materiallydifferent from whatthe Companyexpects. beliefsandassumptions only asof the datemade. You shouldreview company’sthe SEC filings carefullyandthe with understa uncertainties,you shouldplacenot unduereliance on these forward andotherfilings withU.S. the SecuritiesandExchange whichare Commission (“SEC”), availableat SEC’sthe website at against them;.The Company discusses theserisks ingreater detail in“Risk Factors” andelsewhere in Formits 10 andbenefit from those initiatives;the potentialthatthe Company may benotto able realize its deferredtax assetsand may warranty claims, andthe impacton consumer perception of its brand; Company’sthe to ability perform underinitiativesits w newproduct releases andvehicle production bythe Company’s automotive customers, includinginventory procurement and fulfil suchas Apple CarPlay and Android Auto; Company’s the continuedreporting of andlosses operating expenses in excess of expec reductionsin demand for automobiles;potential impacts of automobile manufacturersandones tier including competitive capab substantialportion of its revenueandthe impact of labor stoppageson thoseautomobile manufacturers’ and tierones’ abilit of revenue,includingunderGrabthe Transaction;the Company’s dependenceon a limitednumber of automobile manufacturersan internalcontrol over financialreporting anddisclosures, andtimelydemonstrate suchmitigation, includingas itmay relate includingCompany’sthe products; adoptionby vehicle purchasers of Scout GPS Link;the Company’sto ability remediate its ma announcementregarding Google Automotive the Services; Company’sto ability achieve designadditionalwins anddelivery the d contracts for currentandnew generation of productsits existingwith automobile manufacturersandones, tier particularly F America over theterm; near impact the of tariffs on sales of automobilesin United the States otherand markets; Company the andto supportFord, GM andToyota theircustomers;and impactthe of Ford’s announcementregarding eliminationthe of variou specificallyrelated to the Company’s transactionGrabwith Holdings; theCompany's toability developandimplement products customer engagements,theincluding Company’s to ability determine, achieve andaccurately recognize revenueundercustomer e have on our revenueandoperating results; theeconomic ensuing recession;Company’s the to ability achieve future revenuecu manufacturerpartners will resume or partial productionfull and the impactcontinuedthe periodof reducedvolume of new veh automobile manufacturercustomers, consumer demandfor newvehicles Company’sand the operations; whenFord, GM andother aut others:the impact of the COVID number of risks uncertainties.and potentialThese risks anduncertainties include,among others: These potentialrisks u and on information currentlyavailable tomanagement. its Actual events or results may differ materiallyfrom those describedin supplementalThis investor presentationcontains forward Forward Looking Statements - 19 on business activity,19on business but includinglimitednot to the shutdown of manufacturing operations b - looking statementsthatare on the based Company management’s beliefan - looking statements.Also, forward - looking statementsreprese - K for thefisc www.sec.gov to nce ord ha th y t y al year endedJune30, 2019 ith the Company’srecognition ndi is documentis due to a ter ’s ve to takea reserve o producevehicles; rre rtaintiesinclude,among ;impact the of GM’s fo icl tat Amazon andMicrosoft, success inextending its y Ford,y GM andother s ate ili ng thatfutureactual ng lme weaknessesial in its r Ford, GM andToyota es being producedbeinges will ntlyestimated under nt management’snt nga ties in theirvehicles ties ions; the timingof ions; edans in North . Given these dt s of of s automobiles nt;possible dassumptions and gements,including ier ones ier for a omo bile © 2019


 
associated with its customized software solutions whereby customized engineering fees are earned. As the company enters into Telenav has provided a similar presentation of the change in the related deferred costs. Such deferred costs primarily includ Billings equal GAAPrevenue recognized plus the change in deferred from revenue the beginning to the end of the applicable pe To reconcile the historical GAAP results to non for planning and forecasting. These measures are not in accordance with, or an alternative to, GAAP and these non influenced by certain items and, therefore, are helpful in understanding Telenav’s underlying operating results. These non provided these measures in addition to GAAP financial results because management believes these non revenue, change in deferred costs, adjusted EBITDA, and cash free flow included in this supplemental investor presentation ar Telenav prepares its financial statements in accordance with generally accepted accounting principles for the United States, liquidity measure that provides useful information to management and investors about the amount of cash (used in)generated b Free cash flow is a non generally may provide useful information to investors and others in understanding and evaluating our operating results in the the expenses eliminate we when calculating adjusted EBITDA can provide a useful measure for period evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short inMarket Transaction and the Grab Transaction. Adjusted EBITDA, while generally a measure of profitability, can also represe loss accruals relating to litigation or other disputes in which Telenav is a party or the indemnitor of a party. M&A transact based compensation expense relates to equity incentive awards granted to its employees, directors, and consultants. Legal set (expense) net, provision (benefit) income for taxes, and other applicable items such as legal settlements and contingencies a Adjusted EBITDA measures GAAP net income/loss adjusted for discontinued operations and excluding the impact of stock providing specific information regarding billings and how they relate to revenue calculated in accordance with GAAP. companies that report similar financial measures, making comparisons between companies more difficult. Accordingly, when Tele hosting, monitoring, customer support and, for certain customers, additional period content and associated technology costs. For example, billings related to certain brought in accordance with GAAP. First, billings include amounts that have not yet been recognized as revenue or cost and may require and investors because billings drive revenue and deferredrevenue, which is an important indicator of its business. are There deferred costs become largercomponents of its operating results, so Telenav believes these metrics are useful in evaluating Use ofNon - GAAP financial measure Telenav defines as net cash provided by (used in)operating activities, less purc - GAAP Financial Measures - - GAAP financial metrics, please to refer the reconciliations in the financial tab in solutions cannot be fully recognized as revenue in a given period dueto req - to - GAAP measures help provide a - period comparisons of Tele - GAAP measures - and long ion - - based compe GAAP les included in this supplemental investor presentation. e c or or nd cas expenses relate primarily to costs associated with transactions, such as the a nt uirements for ongoing map updates and provisioning of services such as e d Sec sa tle hases of property and equipment. Telenav considers cash free flow to bea number of limitations related to the use of billings versus revenue calculated osts associated with third party content and certain development costs GAAP. The non ad merger merger and acquisition, or M&A, transaction expenses, net of tax. Stock rio h flows. Telenav considers billings to bea useful metric for management - a loss. a loss. Adjusted EBITDA is a key measure Telenav uses to understand and me me manner as Telenav does. mor term measures measures are some of the primary measures Telenav’s management uses ifferent from those otherwise presented underGAAP. Telenav has y y i ments and contingencies represent settlements, offers made to settle, or ond, we may calculate billings in a manner that is different from peer ditional services or costs to be provided contractedover service periods. nav d. In connection with its presentation of the change in deferred revenue, ts business after purchases of property and equipment. may may not becomparable to information provided by other companies. nav’s core business. Accordingly, Telenav believes that adjusted EBITDA e hybrid and brought uses this measure, it attempts to compensate thesefor limitations by operational plans. In particular, Telenav believes that the exclusion of nsation expense, depreciation and amortization, other income consistent basis for comparison between periods that are not - GAAP financial measures such as billings, change in deferred - in navigation programs, deferred revenue and - © 2019


 
4 3 2 1 Key Messages Delivered another solid quarter & remained focused& remained on Deliveredexecuting quarter solid another strategyour connected car forgrowth sustainable andvalue c Key Messages » » Continued to execute to capitalizeon ourconnected strategy on the car platform $500B connected car market » » » » » » $124M in cash, strong position and repurchases equity share investmentseven in the after $11Mquarter of Covid Solid financial results, 3 Closed Closed Europe Vivid after intheIn progress Solid Cash Cash and equity position investmentsapproximately represent Equityinvestments I Top priorities remain innon $1.6M revenue,inYoY$64M up33% n the near term, TNAV term, near the n also ❑ ❑ - 19 Impact Completed Completed additional investment with Completed investmentin Synq3, providing build our restaurants ICC and ecosystem further access of to thousands - GAAP adjustedEBITDA, GAAP YoY+$4.8M - immediate to short term outlook remains uncertain, but outlook uncertain, our term remains priorities the same remains immediate to short made in multiple companies of approximately companies of made multiple in $32M – customer delivery,customer employees, and safety of health operational discipline and cash preservation - rd Car Commerce spaceCar I Q3 FY20 I Q3 FY20 - market market deal withAlpine consecutive quarter of double of consecutive quarter is d riving operational riving operational efficiencies via transformation IT and spend mitigation across allareas MotionAuto as as we continue - 75% of TNAV’s of 75% Cap Market digit growthand positive non partnering and progress making partnering insurance on solutions at end of quarter end at of - GAAP adjusted GAAP EBITDA rea tion © 2019


 
Connected Car Platform Strategy Building strategy ourflywheel Building via momentum focuslaser with tocapitalize pillars a three on on +$500B TAM Margin Expansion Higher with M R O F T A L P R A C D E T C E N N O C » » V A N E L E T Quality Service Big Data +BigAI Intelligence (LBI) Location Based I Build, I Build, Acquire & Partner v v ©— 2019Proprietary and Confidential © 2019


 
Key Metrics 3 2 1 4 Includes cash, cash equivalents, and short and cash, 4 Includes equivalents, cash 3 2 Non all periods for operations discontinued for 1 Adjusted GAAP GAAP measure Grew revenue, expanded gross and margin, grew installed base - GAAP measure GAAP Gross Margin % Gross Margin Revenue $64M $64M +1 pts YoY +1 pts YoY +33% Billings 45% – - - - - see Financial Tables for reconciliation of GAAP to Non reconciliation for Tables Financial see 2% YoY 9 pts QoQ 13%QoQ 13%QoQ 2 3 - term investments term | Q3FY20 3 6 5 4 - GAAP 1 Adjusted EBITDA Adjusted 47% - Please Please refer to the financial tables at the back of this presentation and Telenav’s Investor Relations website for the latest +$5M YoY+$5M - - $2M +9 +$6M YoY $7M 9 pts YoY9 pts OPEX $13MQoQ - $5M QoQ FCF ptsQoQ 2 of Rev of 3 2 9 8 7 TotalCash on Hand TotalInstalledBase Connected CarsConnected $ +40% YoY +40% YoY +43% +25% YoY +25% 19M 124 28M +7% QoQ - +5% QoQ 4% QoQ M SEC filings SEC 4 © 2019


 
Services $ Revenue Product $ Revenue Telenav Total Company Substantial revenueproduct growth and services Performance Overview Breakdown 1 Adjusted for discontinued operations for all periodsall for operations 1 discontinuedfor Adjusted GAAP aremeasuresaboveAll $12.4 Revenue +33% y/y, +25% y/y, +82% y/y, +0% q/q 52.1 64.5 - - 15% 15% q/q 13% q/q million million million Gross profit of 45% revenue,+1.5 pts y/y, $ Gross profit 47% of 47% revenue,+3.3 pts y/y, $ 37% of 37% revenue, $4.5 Gross profit 24.4 29.0 - 6.0 6.0 pts y/y, million million million - - - 10.1 10.1 pts q/q 9.4 pts q/q 4.3 4.3 pts q/q - Please Please refer to the financial tables at the back of this presentation and Telenav’s Investor Relations website for the latest Key Highlights Revenue Mix ➢ ➢ ➢ ➢ ➢ | FY20 Q3 Services the business 19% represented overall of Services revenue mix 37% down 6.0pts Y/Y revenue Y/Y; $12.4M 82% up of Services Gross Margin of 47% 3.3pts up Y/Y Product revenueY/Y; 25% $52.1M, up of Gross Margin of up 1.5pts Y/Y Total 33% revenueup Y/Y; $64.5M, of Gross 45% Margin of margins while expanding solid a Delivered revenue quarter gross 1 Services 19% 81% Product SECfilings © 2019


 
Significant Significant year Key Financial Metrics Q3 FY19 Q3 FY19 $48.5 $86.5 Q2 FY20 Q2 FY20 $129.0 $73.9 - over - year growth revenue,in total cash on hand, and cash free flow Q3 FY20 Q3 FY20 $123.7 $64.5 Total Cash on Hand ($m) Telenav’s Investor Relations website for the latest filings SEC - Revenue ($m) - investments term - - Adjusted for discontinued operations periods for all operations for discontinued Adjusted Please Please refer to the financial tables at the back of this presentation and - - - TotalCash on and Hand short cash equivalents,cash, includes Non charts Both represent Adjusted for discontinued operations periods for all operations for discontinued Adjusted non isBillings a a GAAP is measure Revenue | YoY, QoQ - GAAP measure - GAAP measures - Q3 FY19 Q3 FY19 $64.6 $0.7 Q2 FY20 Q2 FY20 $72.7 $11.7 Q3 FY20 Q3 FY20 $63.5 $6.9 Billings ($m) Free Cash FlowFree ($m) © 2019


 
Q4 FY20 © 2019


 
Q4 FY20 Q4 ➢ ➢ ➢ ➢ ➢ Immediate to Short term Opportunities term to Immediate Short Win NewWin OEMs cars in aftermarketthe channel solution Aftermarketall with our first customer win and arewe just getting started our with In OEMs platformas an embeddedwith VIVID existing customers walletIncreaseshareof our - Car CommerceCar to caterto untapped the millions of | Areas of Focus – huge opportunity, - in - one VIVID within within our ➢ ➢ ➢ ➢ ➢ Operational Discipline Operational & Cost Controls efficiencies and productivitygains IT transformation controlfurthercosts Severalinitiatives other works toin the Scrutinize Restrict contractorrenewals Restrict external hiring all all discretionaryspend to driveoperational © 2019


 
Q4 FY20Outlook ➢ ➢ unit volumes,unit re plantto frommore weUntilrelated the OEMs understand existsaroundopen plants the globe,uncertainty with how will rampthe volumesunitplantsupand further fast While TNAVa recoveryabout from optimistic Covid the remains TNAV provide to not determined for FY20 has Q4guidance | Not Guiding| Not - openings, production ramp schedules and their impact on on impact their and rampopenings,productionschedules - 19 impact, it is unclear howunclearit is impact, OEMs aggressivelythe 19 © 2019


 
Q3 FY20 Financial TablesQ3 FY20Financial © 2019


 
Assets Current assets: Property andProperty equipment, net Operating lease right-of-use assets Operating right-of-use lease Deferred income taxes, income non-current Deferred Goodwill and intangible net assets, Deferred costs, non-current costs, Deferred Other Other assets Assets of discontinuednon-current of operations, Assets Cash and cash equivalents Short-term investmentsShort-term Accounts receivable, andallowances net andof $6 of at March$7 2020 June31, 30, 2019, respectively 2019, Restricted cash Restricted Deferred costs Deferred Prepaid andexpenses assets current other Assets of discontinuednon-current of operations, Assets Total assets current Total assets $ $ $ $ March 31, 2020 107,273 200,437 315,551 16,476 41,926 29,744 14,255 52,954 33,504 1,541 3,477 5,411 7,909 1,081 - - $ $ $ $ June 30, 2019 Condensed Consolidated Balance Sheets Balance Condensed Consolidated (in thousands,(in par except value) 200,075 297,015 27,275 72,203 69,781 18,752 15,701 61,050 12,194 1,950 3,784 6,330 5,583 1,414 998 - Telenav, Inc. (unaudited) Liabilities and stockholders’ equity and stockholders’ Liabilities Current liabilities: Deferred rent, non-current Deferred Operating lease liabilities, Operatingnon-current liabilities, lease Deferred revenue,Deferred non-current Other long-term liabilities Other long-term Liabilities of discontinuednon-current of operations, Liabilities Commitments andCommitments contingencies Stockholders’ Stockholders’ equity: Trade payableaccounts Accrued expenses Operating liabilities lease Deferred revenueDeferred Income taxes payable Liabilities of discontinued of operations Liabilities Preferred stock, $0.001 par value:authorized;shares $0.001 stock, outstanding 50,000 no or issued shares Preferred Common stock, $0.001 par authorized; shares andshares value:Common $0.001 stock, 47,288 46,911 600,000 issued andissued outstanding and atrespectively March 2020 June31, 2019, 30, Additional paid-in capital Accumulated comprehensive loss other Accumulated deficit Total equity stockholders’ Total liabilities current Total liabilities Totaland liabilities equity stockholders’ $ $ $ $ March 31, 2020 107,829 189,387 101,909 315,551 (85,521) 24,082 36,208 43,841 99,361 (2,004) 3,161 5,785 537 667 - - - - - 47 $ $ $ $ June 30, 2019 100,403 103,865 182,349 297,015 (90,279) 16,061 48,899 31,270 90,640 (1,477) 3,373 1,266 800 811 - - - - 30 47 © 2019


 
Revenue: Cost of revenue: of Cost Gross profit Gross Operating expenses: Income (loss) from operations from Income (loss) Other income, net Other income, Income (loss) from continuing operations before provision for income taxes income provision for continuingbefore from operations Income (loss) Provision for income taxes income for Provision Equity in net (income) loss of equity of method Equityinvestees loss in net (income) Income (loss) from continuing from operations Income (loss) Discontinued Discontinued operations: Loss on discontinued operations Loss Net income (loss) income Net Basic income (loss) per share: per (loss) Basic income Diluted income (loss) per share: per (loss) Diluted income Weighted average shareper used shares in computing (loss) income Income (loss) from operations of Advertising of operations from tax business, net of Income (loss) Loss from sale of Advertising of sale from Loss business Income (loss) from continuing from operations Income (loss) Loss on discontinued operations Loss Net income (loss) income Net Income (loss) from continuing from operations Income (loss) Loss on discontinued operations Loss Net income (loss) income Net Basic Diluted Product Services Product Services Research andResearch development Sales Sales and marketing General General and administrative Legal settlements andLegal contingencies settlements Total revenue Total cost of revenue of Total cost Total operating expenses Condensed Consolidated Statements of Statements Operations Condensed Consolidated (in thousands, amounts)share per (in except $ $ $ $ $ $ $ $ $ $ $ $ Telenav, Inc. (unaudited) 2020 Three Months Ended 52,106 12,390 64,496 27,664 35,523 28,973 21,617 30,186 47,902 47,902 (1,213) 7,859 2,166 6,403 1,088 (0.02) (0.02) (0.02) (0.02) (125) (733) (733) 505 103 March 31, - - - - - - $ $ $ $ $ $ $ $ $ $ $ $ 2019 41,723 48,540 23,532 27,449 21,091 19,322 27,012 45,585 45,585 (5,921) (5,340) (5,534) (1,947) (1,947) (7,481) 6,817 3,917 2,167 5,523 (0.12) (0.04) (0.16) (0.12) (0.04) (0.16) 581 194 - - - $ $ $ $ $ $ $ $ $ $ $ $ 2020 Nine Months EndedNine 169,639 205,000 106,096 35,361 86,087 20,009 98,904 61,997 20,118 88,361 10,543 12,788 12,361 48,053 49,022 (4,874) (4,042) 6,246 2,245 1,121 8,319 (0.08) (0.08) (694) 0.26 0.17 0.25 0.17 832 March 31, - $ $ $ $ $ $ $ $ $ $ $ $ 2019 124,050 144,952 (17,404) (14,701) (15,737) (19,632) 20,902 72,135 11,762 83,897 61,055 55,580 16,694 78,459 45,347 45,347 (3,895) (3,895) 5,535 2,703 1,036 (0.35) (0.09) (0.43) (0.35) (0.09) (0.43) 650 - - © 2019


 
Operating activities Operating Net income (loss) income Net Loss on discontinued operations Loss Income (loss) from continuing from operations Income (loss) Adjustments to reconcile net income (loss) to net cash to provided by(loss) net income operating activities: Adjustments reconcile to Stock-based compensation Stock-based expensecompensation Depreciation andDepreciation amortization Operating accretion amortization net of lease Accretion of net premium on short-term investments net premium of on short-term Accretion Unrealized gain on non-marketable equity investments Equity equity of inmethod investees net income Gain on sale of intellectual property andproperty GainGrab to intellectual onof workforce sale Non-cash revenue with associated Grab to grant perpetual of license Other Changes inand operating assets liabilities: Accounts receivable Deferred income taxes income Deferred Deferred costs Deferred Prepaid expenses and Prepaid expenses assets current other Other Other assets Trade payableaccounts Accrued and expenses liabilities other Income taxes payable Deferred rent Deferred Operating liabilities lease Deferred revenueDeferred Net cashNet provided by operating activities $ $ 2020 Nine Months EndedNine (13,910) 12,361 28,334 41,681 (5,831) (2,924) (2,791) 8,319 4,042 5,189 2,685 2,153 1,463 7,913 8,042 (694) (110) (252) 157 March 31, - (45) (38) (21) - $ $ Condensed Consolidated Statements of Statements Cash Flows Condensed Consolidated 2019 (19,632) (15,737) (11,581) (13,934) 12,020 29,281 (1,260) (1,728) 3,895 5,611 2,982 6,189 (162) (123) 209 160 488 - (15) - - (22) - (in thousands) (in Telenav, Inc. (unaudited) Investing activities Investing Financing activities Financing Supplemental disclosure of cash flow information of cash flow disclosure Supplemental Reconciliation of cash, cash equivalents and restricted cash to the condensed condensed the cash to ofand cash, cash equivalents restricted Reconciliation consolidated balance sheets consolidated Purchases of property andproperty of Purchases equipment Purchases of short-term investments short-term of Purchases Purchases of long-term investments long-term of Purchases Proceeds from sales and maturities of short-term investments and short-term sales of from maturities Proceeds Proceeds from exercise of stock options stock of exercise from Proceeds Tax withholdings related to net share settlements of restricted stock units stock Tax restricted of withholdings net share settlements to related Repurchase of common stock Repurchasecommon of Effect of exchange of changesrate Effect on cash, cash equivalents cash and restricted Net increase (decrease) in cash, cash equivalents(decrease) increase cash,Net andcontinuing operations restricted Net cashNet used in discontinued operations Cash, cash equivalents cash, andbeginning restricted period of Cash, cash equivalents cash, andend period of restricted Income taxes paid, net Non-cash investing: Investment in Market Media LLC acquired in exchange of sale for Advertising business Non-cash sale of assets to Grab to in assets exchange Non-cashof sale equity investmentfor and software Cash discontinued flowoperations: from Cash and cash equivalents Restricted cash Restricted Total cash, cash equivalents cash and restricted Net cashNet used in operating activities Net cashNet used in financing activities Net cash transferred from continuing from operations cashNet transferred Net changeNet in cash and cash equivalent discontinued operation from Cash and cash equivalent beginning discontinued operations, of period of Cash and cash equivalent end period discontinued operations, of of Net cashNet provided by (used in) investing activities Net cashNet used in financing activities $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2020 Nine Months EndedNine (67,347) (46,378) 31,789 29,225 18,017 15,600 16,476 18,017 (1,320) (9,500) (1,230) (9,353) (2,193) (7,233) (3,975) (3,569) 8,390 1,626 7,012 3,975 1,541 (343) (406) March 31, - - - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2019 (31,044) 34,214 20,099 23,169 21,254 23,169 (1,831) (1,303) (1,778) (3,154) (3,154) 2,214 1,356 6,224 3,154 1,915 (956) (401) 730 - - - - - - - © 2019


 
(1) those solutions. We expect to incur inadditional to provideexpect We the to future due solutions. requirements costs ongoingto those map updates and provisioning such asservices hosting,of monitoring, customer support additionaland,monitoring, customer and customers, content certain period for technology costs. associated Deferred revenue,Deferred end period of Deferred revenue,Deferred beginning period of Change revenue in deferred Deferred costs, end period of costs, Deferred Deferred costs, beginning costs, period Deferred of Change costs in deferred Revenue Adjustments: Billings Change revenue in deferred Deferred costs primarily include costs associated with associated primarily includethird-party costs costs and content develop incurred Deferred to with in the connection costs customized software solutions, certain (1) Reconciliation ofRevenue ChangeDeferred Revenue to Deferred in Reconciliation Reconciliation of Deferred Costs to Change Costs to Deferred in ofCosts Deferred Reconciliation $ $ $ $ Unaudited Reconciliation of Non-GAAP Adjustments Unaudited Reconciliation Unaudited Reconciliation of Non-GAAP Adjustments Unaudited Reconciliation $ $ $ $ $ $ $ $ 2020 Reconciliation of Revenue Billings to Reconciliation 2020 Three Months Ended 64,496 63,527 Three Months Ended (969) 143,202 144,171 82,698 81,763 March 31, (in thousands)(in (969) (in thousands)(in Telenav, Inc. 935 Telenav, Inc. March 31, $ $ $ $ $ $ $ $ $ $ $ $ 2019 2019 48,540 16,047 64,587 103,819 87,772 16,047 72,359 65,465 6,894 $ $ $ $ $ $ $ $ $ $ $ $ 2020 2020 Nine Months EndedNine 205,000 213,067 Nine Months EndedNine 143,202 135,135 8,067 82,698 79,802 8,067 2,896 March 31, March 31, $ $ $ $ $ $ $ $ $ $ $ $ 2019 2019 144,952 174,233 103,819 29,281 74,538 29,281 72,359 58,425 13,934 © 2019


 
Net income (loss) income Net Loss on discontinuedLoss operations Income (loss) from continuing from operations Income (loss) Adjustments: Adjusted EBITDA Legal settlement andLegal settlement contingencies Stock-based compensation expense Depreciation andDepreciation amortization expense Other income, netOther income, Provision for income taxes income for Provision Equity in net (income) loss of equity Equityof method investees loss in net (income) Reconciliation of Net Income (Loss) to Adjusted to of Income Net (Loss) EBITDA Reconciliation Unaudited Reconciliation of Non-GAAP Adjustments Unaudited Reconciliation $ $ $ $ 2020 (in thousands)(in Telenav, Inc. Three Months Ended (1,088) 1,959 1,575 (733) (733) 829 505 103 March 31, - - $ $ $ $ 2019 (7,481) (5,534) (3,267) 1,947 1,688 (581) 966 194 - - $ $ $ $ 2020 Nine Months EndedNine 12,361 18,417 (2,245) 8,319 4,042 5,189 2,685 1,121 (694) March 31, - $ $ $ $ 2019 (19,632) (15,737) (2,703) (8,161) 3,895 5,611 2,982 1,036 650 - © 2019


 
(3) (2) (1) cash Free flow cashNet provided by operating activities operating activities: net cash to provided (loss) net byincome Adjustments reconcile to continuing from Incomeoperations (Loss) on discontinuedLoss operations (loss) income Net Less: Purchases of property and of Purchases Less: equipment Other adjustments Changes andoperatingin other assets liabilities Change costs in deferred Change revenue in deferred Consist primarily of depreciation andprimarily depreciation Consist of amortization, compensation expense stock-based and non-cash other items. primarily andthird of partyConsists costs customized software developmentcontent expenses. and customized software developmentfees product service fees. royalties, of subscription fees, Consists (3) (2) (1) Reconciliation of Net Income (Loss) to Free Cash Flow Free to of Income Net (Loss) Reconciliation Unaudited Reconciliation of Non-GAAP Adjustments Unaudited Reconciliation $ $ $ (in thousands)(in 2020 Telenav, Inc. Three Months Ended 11,904 (2,046) 6,926 7,168 (242) (963) (994) (733) (733) March 31, - $ $ $ 2019 16,047 (5,019) (6,894) (5,534) (7,481) 1,230 2,630 1,947 (511) 719 $ $ $ 2020 Nine Months EndedNine 40,361 41,681 20,626 12,361 (1,320) (2,924) 3,576 8,042 4,042 8,319 March 31, $ $ $ 2019 (13,934) (15,737) (19,632) 29,281 5,233 6,189 7,296 3,895 (956) (717) © 2019