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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020

or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission file number: 001-34720
 
TELENAV, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
77-0521800
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)

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)
 
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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
 
 
Accelerated filer
 
 
 
 
 
 
 
 
Non-accelerated filer
 
 
Smaller reporting company
 
 
 
 
 
 
 
 
 
 
 
 
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.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of March 31, 2020, there were 47,287,665 shares of the Registrant’s Common Stock outstanding.



TELENAV, INC.
TABLE OF CONTENTS
 
 
 
Page No.
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 6.
 



PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements.

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


See accompanying Notes to Condensed Consolidated Financial Statements.

1


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

Stock-based compensation expense included in continuing operations above:
 
 
 
 
 
 
 
 
Cost of revenue
 
$
12

 
$
19

 
$
41

 
$
59

Research and development
 
1,156

 
1,107

 
2,874

 
3,522

Sales and marketing
 
250

 
172

 
575

 
505

General and administrative
 
541

 
390

 
1,699

 
1,525

Total stock-based compensation expense
 
$
1,959

 
$
1,688

 
$
5,189

 
$
5,611



See accompanying Notes to Condensed Consolidated Financial Statements.

2


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)


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

 
$
(19,632
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Foreign currency translation adjustment, net of tax
 
(164
)
 
(54
)
 
(267
)
 
(402
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
Unrealized gain (loss) on available-for-sale securities, net of tax
 
(290
)
 
328

 
(246
)
 
514

Reclassification adjustments for gain (loss) on available-for-sale securities recognized, net of tax
 
(12
)
 
13

 
(14
)
 
20

Net increase (decrease) from available-for-sale securities, net of tax
 
(302
)
 
341

 
(260
)
 
534

Other comprehensive income (loss), net of tax
 
(466
)
 
287

 
(527
)
 
132

Comprehensive income (loss)
 
$
(1,199
)
 
$
(7,194
)
 
$
7,792

 
$
(19,500
)


See accompanying Notes to Condensed Consolidated Financial Statements.


3


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Accumulated Deficit
 
Total Stockholders' Equity
Nine Months Ended March 31, 2020
 
Shares
 
Amount
 
Balance at June 30, 2019
 
46,911

 
$
47

 
$
182,349

 
$
(1,477
)
 
$
(90,279
)
 
$
90,640

Issuance of common stock upon exercise of stock options
 
1,326

 
1

 
8,340

 

 

 
8,341

Release of restricted stock units
 
329

 
1

 
(1,273
)
 

 

 
(1,272
)
Stock-based compensation expense, continuing operations
 

 

 
1,752

 

 

 
1,752

Stock-based compensation expense, discontinued operations
 

 

 
887

 

 

 
887

Foreign currency translation adjustment, net of tax
 

 

 

 
(310
)
 

 
(310
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
58

 

 
58

Net loss
 

 

 

 

 
(3,954
)
 
(3,954
)
Balance at September 30, 2019
 
48,566

 
49

 
192,055

 
(1,729
)
 
(94,233
)
 
96,142

Issuance of common stock upon exercise of stock options
 

 

 

 

 

 

Release of restricted stock units
 
352

 

 
(317
)
 

 

 
(317
)
Repurchases of common stock
 
(767
)
 
(1
)
 
(2,623
)
 

 
(1,395
)
 
(4,019
)
Stock-based compensation expense, continuing operations
 

 

 
1,478

 

 

 
1,478

Foreign currency translation adjustment, net of tax
 

 

 

 
207

 

 
207

Unrealized net gain on available-for-sale securities, net of tax
 

 

 

 
(16
)
 

 
(16
)
Net income
 

 

 

 

 
13,006

 
13,006

Balance at December 31, 2019
 
48,151

 
48

 
190,593

 
(1,538
)
 
(82,622
)
 
106,481

Issuance of common stock upon exercise of stock options
 
17

 

 
84

 

 

 
84

Release of restricted stock units
 
45

 

 
(82
)
 

 

 
(82
)
Repurchases of common stock
 
(925
)
 
(1
)
 
(3,167
)
 

 
(2,166
)
 
(5,334
)
Stock-based compensation expense
 

 

 
1,959

 

 

 
1,959

Foreign currency translation adjustment, net of tax
 

 

 

 
(164
)
 

 
(164
)
Unrealized net gain on available-for-sale securities, net of tax
 

 

 

 
(302
)
 

 
(302
)
Net loss
 

 

 

 

 
(733
)
 
(733
)
Balance at March 31, 2020
 
47,288

 
$
47

 
$
189,387

 
$
(2,004
)
 
$
(85,521
)
 
$
101,909

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2018
 
44,871

 
$
45

 
$
167,895

 
$
(1,855
)
 
$
(57,202
)
 
$
108,883

Issuance of common stock upon exercise of stock options
 
5

 

 
25

 

 

 
25

Release of restricted stock units
 
385

 

 
(1,205
)
 

 

 
(1,205
)
Stock-based compensation expense, continuing operations
 

 

 
2,048

 

 

 
2,048

Stock-based compensation expense, discontinued operations
 

 

 
221

 

 

 
221

Foreign currency translation adjustment, net of tax
 

 

 

 
(217
)
 

 
(217
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
91

 

 
91

Net loss
 

 

 

 

 
(7,570
)
 
(7,570
)
Balance at September 30, 2018
 
45,261

 
45

 
168,984

 
(1,981
)
 
(64,772
)
 
102,276

Issuance of common stock upon exercise of stock options
 

 

 
1

 

 

 
1

Release of restricted stock units
 
280

 
1

 
(353
)
 

 

 
(352
)
Stock-based compensation expense, continuing operations
 

 

 
1,875

 

 

 
1,875

Stock-based compensation expense, discontinued operations
 

 

 
240

 

 

 
240

Foreign currency translation adjustment, net of tax
 

 

 

 
(131
)
 

 
(131
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
102

 

 
102

Net loss
 

 

 

 

 
(4,581
)
 
(4,581
)
Balance at December 31, 2018
 
45,541

 
46

 
170,747

 
(2,010
)
 
(69,353
)
 
99,430

Issuance of common stock upon exercise of stock options
 
244

 

 
1,330

 

 

 
1,330

Release of restricted stock units
 
79

 

 
(273
)
 

 

 
(273
)
Repurchase of common stock
 
(221
)
 

 
(714
)
 

 
(589
)
 
(1,303
)
Stock-based compensation expense
 

 

 
1,907

 

 

 
1,907

Foreign currency translation adjustment, net of tax
 

 

 

 
(54
)
 

 
(54
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
341

 

 
341

Net loss
 

 

 

 

 
(7,481
)
 
(7,481
)
Balance at March 31, 2019
 
45,643

 
$
46

 
$
172,997

 
$
(1,723
)
 
$
(77,423
)
 
$
93,897


See accompanying Notes to Condensed Consolidated Financial Statements.

4


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


See accompanying Notes to Condensed Consolidated Financial Statements.

5


TELENAV, INC.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1.
Summary of business and significant accounting policies
Description of business
Telenav, Inc., also referred to in this report as “we,” “our” or “us,” was incorporated in September 1999 in the State of Delaware. We are a leading provider of connected car and location-based products and services. We utilize our automotive navigation platform to deliver these products and services. Our automotive navigation platform allows us to deliver enhanced location-based services to automobile manufacturers, as well as original equipment manufacturers and tier one suppliers, to which we refer collectively as tier ones. Our automotive solutions primarily include navigation systems built into vehicles, or on-board, mobile phone based navigation systems, or brought-in, and advanced navigation solutions that offer on-board functionality combined with cloud functionality, or hybrid. Our fiscal year ends on June 30, and in this report we refer to the fiscal year ended June 30, 2019 as “fiscal 2019” and the fiscal year ending June 30, 2020 as “fiscal 2020.”
Commencing July 1, 2019, we operate in a single segment, automotive. Through June 30, 2019, we operated in three segments - automotive, advertising and mobile navigation. In August 2019, we completed the disposition of our digital advertising operations (the "Ads Business") and have presented the results of operations for the Ads Business as discontinued operations for all prior periods presented. See Note 12. Our mobile navigation services business represented less than 5% of total revenue for the three and nine months ended March 31, 2020 and we expect the business to continue to decline. Our chief executive officer, or CEO, the chief operating decision maker, does not review mobile navigation revenue and cost of revenue separately. As a result, we have combined the mobile navigation business with the automotive business in a single segment.
Basis of presentation
The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.
Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the nine months ended March 31, 2020 and 2019.
The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2020, included in our Annual Report on Form 10-K for fiscal 2019 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2019, which we refer to as the Form 10-K.
Effective July 1, 2019, we adopted the requirements of Accounting Standards Update, or ASU, No. 2016-02, Leases (ASC 842) as discussed in the section titled “Recently adopted accounting pronouncements” of this Note 1. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with this standard.
Certain prior period balances have been reclassified to conform to the current period presentation of discontinued operations.
Significant accounting policies
With the exception of changes in accounting policies associated with our adoption of the new lease accounting standard, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Form 10-K.

6

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Use of estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates.
In March 2020, the World Health Organization declared the outbreak of the novel coronavirus first identified in China in late 2019 (COVID-19) as a pandemic, which continues to spread throughout the U.S. and the world. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future developments, including the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume, all of which are uncertain and we cannot predict. During the three months ended March 31, 2020, this uncertainty resulted in a higher level of judgment related to our estimates and assumptions concerning short-term investments, long-lived assets, non-marketable equity and debt investments, goodwill, and variable consideration related to revenue recognition. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Our estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in our consolidated financial statements.
Disaggregation of revenue
In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition (in thousands):
 
 
Three Months Ended March 31,
 
Nine Months Ended
March 31,
 
 
2020
 
2019
 
2020
 
2019
Product
 
 
 
 
 
 
 
 
On-board automotive navigation solutions (point in time)(1)
 
$
52,106

 
$
41,723

 
$
169,639

 
$
124,050

Total product revenue
 
52,106

 
41,723

 
169,639

 
124,050

Services
 
 
 
 
 
 
 
 
Brought-in automotive navigation solutions (over time)(2)
 
9,632

 
4,250

 
24,641

 
12,272

Automotive maintenance and support and other (over time)
 
153

 
42

 
3,028

 
697

Mobile navigation services (over time)
 
2,605

 
2,525

 
7,692

 
7,933

Total services revenue
 
12,390

 
6,817

 
35,361

 
20,902

Total revenue
 
$
64,496

 
$
48,540

 
$
205,000

 
$
144,952

(1)Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees.
(2)Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions.

Contract assets
Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of March 31, 2020 and June 30, 2019, we had no contract assets.
Deferred costs
Changes in the balance of total deferred costs (current and non-current) during the nine months ended March 31, 2020 were as follows (in thousands):

7

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)