Document
false0001474439 0001474439 2020-08-12 2020-08-12
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): August 12, 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 August 12, 2020, Telenav, Inc. (the “Company”) issued a press release announcing its financial results for the three months and fiscal year ended June 30, 2020 and a supplemental investor presentation regarding the results of the quarter and fiscal year ended June 30, 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 a conference call via live video Zoom 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 August 12, 2020
Supplemental investor presentation of Telenav, Inc. dated August 12, 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: August 12, 2020
By:    /s/ Adeel Manzoor
 
Name:    Adeel Manzoor
 
Title:     Chief Financial Officer
 
 


Exhibit


https://cdn.kscope.io/c3b27cf13244534ce64071f08a9fa04d-tnavearningsreleasea01a01a42.gif
Telenav Reports Fourth Quarter and Fiscal 2020 Financial Results
Full Year Revenue Grew 22%; Net Loss Decreased $31.6 Million
Two Chinese OEM Wins During the Fourth Quarter of 2020

SANTA CLARA, Calif., Aug. 12, 2020 -- Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected-car and location-based services, today released its financial results for the fiscal fourth quarter and year ended June 30, 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 drove continued growth in fiscal 2020, increasing revenue 22% from the year before, while controlling expenses, resulting in a $31.6 million decrease in net loss year-on-year, and driving full-year adjusted EBITDA to more than $12 million, an increase of $27.4 million year-on-year. Also, we increased revenue from General Motors by more than 100%, while positioning the company to capitalize on opportunities across the globe,” said HP Jin, Chair and CEO of Telenav. “The pandemic reduced fourth quarter revenue; however, our team has performed very well working remotely in meeting customer commitments on time. The outlook has improved as automobile manufacturers have returned to production to rebuild inventories to meet consumer demand. Our OEM-centric connected-car strategy is instrumental as the market for connected car capabilities expands.”
Financial Highlights for the Fourth Quarter Ended June 30, 2020
Total revenue for the fourth quarter of fiscal 2020 was $35.4 million, a decrease of 32% compared with $51.7 million in the fourth quarter of fiscal 2019. The lower fourth quarter 2020 revenue is primarily attributable to the temporary closure of our customers’ automobile manufacturing plants.
Services revenue for the fourth quarter of fiscal 2020 was $13.7 million, an increase of 93% compared with $7.1 million in the fourth quarter of fiscal 2019.
GAAP gross profit for the fourth quarter of fiscal 2020 was $15.0 million, a decrease of 33% compared with $22.5 million in the fourth quarter of fiscal 2019.
Billings, a non-GAAP measure, for the fourth quarter of fiscal 2020 were $31.1 million, a decrease of 63% compared with $83.0 million in the fourth quarter of fiscal 2019.
GAAP loss from continuing operations for the fourth quarter of fiscal 2020 was $(9.2) million, compared with $(9.9) million for the fourth quarter of fiscal 2019.
Adjusted EBITDA, a non-GAAP measure, for the fourth quarter of fiscal 2020 was a loss of $(6.4) million, compared with a loss of $(7.2) million for the fourth quarter of fiscal 2019.





 
Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $110.8 million as of June 30, 2020. This represented cash, cash equivalents and short-term investments of $2.34 per share, based on 47.3 million shares of common stock outstanding as of June 30, 2020. Telenav had no debt as of June 30, 2020.
Financial Highlights for the Fiscal Year Ended June 30, 2020
Total revenue for fiscal 2020 was $240.4 million, an increase of 22% compared with $196.7 million in fiscal 2019.
Total services revenue for fiscal 2020 was $49.1 million, an increase of 75% compared with $28.0 million in fiscal 2019.
GAAP gross profit for fiscal 2020 was $113.9 million, an increase of 36% compared with $83.5 million in fiscal 2019.
Billings, a non-GAAP measure, for fiscal 2020 were $244.2 million, a decrease of 5% compared with $257.3 million for fiscal 2019.
GAAP income from continuing operations for fiscal 2020 was $3.1 million, compared with a loss of $(25.7) million for fiscal 2019.
Adjusted EBITDA, a non-GAAP measure, for fiscal 2020 was $12.0 million, compared with a loss of $(15.4) million for fiscal 2019.
Recent Business Highlights
Telenav won two Chinese OEMs in the fourth quarter for their overseas programs; SAIC, the largest Chinese OEM, and Xpeng Motors, a leading electric vehicle manufacturer.
Telenav completed an additional investment in Motion Auto, one of the fastest growing usage-based insurance companies in the US, and plans to integrate the Motion Auto offering with its VIVID In-Car Commerce platform.
Telenav completed an investment in, and entered into a strategic relationship with, Waylens, a video platform-as-a-service company aimed at the fleet management industry.
Approximately 900,000 Telenav-equipped cars capable of connected services were deployed into the global market during the quarter ended June 30, 2020, bringing total cumulative connected units deployed to date to 20 million and total cumulative auto units deployed to 29 million.
Telenav and Parkopedia announced a partnership to feature Parkopedia’s on-and off-street parking information and an ability to reserve and pay for off-street parking on Telenav’s In-Car Commerce (ICC) products and services for automotive OEMs.
Conference Call and Quarterly Commentary
Telenav will host a conference call via live video Zoom webcast at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Wednesday, August 12, 2020 to discuss the results. The live video webcast can be accessed through Telenav’s investor relations website at http://investor.telenav.com. A replay of the webcast will be available for 12 months.





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, may be 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 and may require additional services 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. 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.

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 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 webcast associated with this press release, or in the supplemental investor presentation on its website, Telenav may provide guidance for the first quarter of fiscal 2021 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 and the conference call via webcast associated with this press release, as well as the supplemental investor presentation Telenav posts on its website, contain 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 these documents or communications due to a number of risks and uncertainties. These potential risks and uncertainties include, among others: the impact of the COVID-19 pandemic 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 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; 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 Ford’s announcement regarding Garmin and the possibility that Ford and





other OEMs may transition additional business to other platforms and providers, such as Google Automotive Services; 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; the Company’s dependence on a limited number of automobile manufacturers and tier ones for a substantial portion of its revenue, such as Ford and GM; reductions in demand for automobiles in general and specifically for Ford and GM vehicles; potential impacts of automobile manufacturers and tier ones, in particular Ford and GM, 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-Q for the fiscal quarter ended March 31, 2020 and other filings with the U.S. Securities and Exchange Commission (“SEC”), including any subsequent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, which are available on the SEC’s website at www.sec.gov. 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 expects. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

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





Telenav, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(unaudited)
 
 
 
 
 
 
 
June 30,
 
 
2020
 
2019
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
20,518

 
$
27,275

Short-term investments
 
90,315

 
72,203

Accounts receivable, net of allowances of $5 and $7 at June 30, 2020 and 2019, respectively
 
34,542

 
69,781

Restricted cash
 
1,494

 
1,950

Deferred costs
 
26,121

 
18,752

Prepaid expenses and other current assets
 
4,505

 
3,784

Assets of discontinued operations
 

 
6,330

Total current assets
 
177,495

 
200,075

Property and equipment, net
 
4,319

 
5,583

Operating lease right-of-use assets
 
7,067

 

Deferred income taxes, non-current
 
1,515

 
998

Goodwill and intangible assets, net
 
14,255

 
15,701

Deferred costs, non-current
 
54,548

 
61,050

Other assets
 
34,552

 
1,414

Assets of discontinued operations, non-current
 

 
12,194

Total assets
 
$
293,751

 
$
297,015

Liabilities and stockholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Trade accounts payable
 
$
12,291

 
$
16,061

Accrued expenses
 
36,210

 
48,899

Operating lease liabilities
 
2,786

 

Deferred revenue
 
37,973

 
31,270

Income taxes payable
 
715

 
800

Liabilities of discontinued operations
 

 
3,373

Total current liabilities
 
89,975

 
100,403

Deferred rent, non-current
 

 
1,266

Operating lease liabilities, non-current
 
5,191

 

Deferred revenue, non-current
 
100,970

 
103,865

Other long-term liabilities
 
645

 
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; 47,342 and 46,911 shares issued and outstanding at June 30, 2020 and 2019, respectively
 
47

 
47

Additional paid-in capital
 
192,170

 
182,349

Accumulated other comprehensive loss
 
(477
)
 
(1,477
)
Accumulated deficit
 
(94,770
)
 
(90,279
)
Total stockholders’ equity
 
96,970

 
90,640

Total liabilities and stockholders’ equity
 
$
293,751

 
$
297,015






Telenav, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Fiscal Year Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Revenue:
 
 
 
 
 
 
 
 
Product
 
$
21,614

 
$
44,569

 
$
191,253

 
$
168,619

Services
 
13,737

 
7,134

 
49,098

 
28,036

Total revenue
 
35,351

 
51,703

 
240,351

 
196,655

Cost of revenue:
 
 
 
 
 
 
 
 
Product
 
12,943

 
25,110

 
99,030

 
97,245

Services
 
7,392

 
4,142

 
27,401

 
15,904

Total cost of revenue
 
20,335

 
29,252

 
126,431

 
113,149

Gross profit
 
15,016

 
22,451

 
113,920

 
83,506

Operating expenses:
 
 
 
 
 
 
 
 
Research and development
 
17,259

 
23,023

 
79,256

 
78,603

Sales and marketing
 
2,034

 
2,049

 
8,280

 
7,584

General and administrative
 
5,704

 
7,117

 
25,822

 
23,811

Legal settlements and contingencies
 

 
50

 

 
700

Total operating expenses
 
24,997

 
32,239

 
113,358

 
110,698

Income (loss) from operations
 
(9,981
)
 
(9,788
)
 
562

 
(27,192
)
Other income, net
 
765

 
213

 
3,010

 
2,916

Income (loss) from continuing operations before provision for income taxes
 
(9,216
)
 
(9,575
)
 
3,572

 
(24,276
)
Provision for income taxes
 
215

 
340

 
1,336

 
1,376

Equity in net (income) of equity method investees
 
(182
)
 

 
(876
)
 

Income (loss) from continuing operations
 
(9,249
)
 
(9,915
)
 
3,112

 
(25,652
)
Discontinued operations:
 
 
 
 
 
 
 
 
Income (loss) from operations of Advertising business, net of tax
 

 
(2,941
)
 
832

 
(6,836
)
Loss from sale of Advertising business
 

 

 
(4,874
)
 

Loss on discontinued operations
 

 
(2,941
)
 
(4,042
)
 
(6,836
)
Net loss
 
$
(9,249
)
 
$
(12,856
)
 
$
(930
)
 
$
(32,488
)
 
 
 
 
 
 
 
 
 
Basic income (loss) per share
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
(0.20
)
 
$
(0.21
)
 
$
0.07

 
$
(0.56
)
Loss on discontinued operations
 

 
(0.06
)
 
(0.08
)
 
(0.15
)
Net loss
 
$
(0.20
)
 
$
(0.28
)
 
$
(0.02
)
 
$
(0.71
)
Diluted income (loss) per share
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
(0.20
)
 
$
(0.21
)
 
$
0.06

 
$
(0.56
)
Loss on discontinued operations
 

 
(0.06
)
 
(0.08
)
 
(0.15
)
Net loss
 
$
(0.20
)
 
$
(0.28
)
 
$
(0.02
)
 
$
(0.71
)
 
 
 
 
 
 
 
 
 
Shares used in computing income (loss) per share
 
 
 
 
 
 
 
 
Basic
 
47,310

 
46,271

 
47,868

 
45,577

Diluted
 
47,310

 
46,271

 
48,761

 
45,577






Telenav, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
 
Fiscal Year Ended
June 30,
 
 
2020
 
2019
Operating activities
 
 
 
 
Net loss
 
$
(930
)
 
$
(32,488
)
Loss on discontinued operations
 
4,042

 
6,836

Income (loss) from continuing operations
 
3,112

 
(25,652
)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities:
 
 
 
 
Stock-based compensation expense
 
8,034

 
7,404

Depreciation and amortization
 
3,430

 
3,678

Operating lease amortization, net of accretion
 
2,998

 

Accretion of net premium on short-term investments
 
258

 
(30
)
Equity in net (income) of equity method investees
 
(876
)
 

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

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

Unrealized gain on investments
 

 
(1,174
)
Other
 
(361
)
 
(32
)
Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
35,698

 
(28,624
)
Deferred income taxes
 
(541
)
 
(153
)
Deferred costs
 
(891
)
 
(21,377
)
Prepaid expenses and other current assets
 
435

 
(354
)
Other assets
 
(249
)
 
(177
)
Trade accounts payable
 
(3,875
)
 
3,359

Accrued expenses and other liabilities
 
(13,941
)
 
12,489

Income taxes payable
 
(74
)
 
583

Deferred rent
 

 
360

Operating lease liabilities
 
(3,763
)
 

Deferred revenue
 
3,753

 
60,597

Net cash provided by operating activities
 
27,271

 
10,897

Investing activities
 
 
 
 
Purchases of property and equipment
 
(933
)
 
(1,398
)
Purchases of short-term investments
 
(80,673
)
 
(45,816
)
Proceeds from sales and maturities of short-term investments
 
63,513

 
43,737

Purchases of long-term investments
 
(9,920
)
 

Net cash used in investing activities
 
(28,013
)
 
(3,477
)
Financing activities
 
 
 
 
Proceeds from exercise of stock options
 
8,432

 
8,853

Repurchase of common stock
 
(9,353
)
 
(1,303
)
Tax withholdings related to net share settlements of restricted stock units
 
(1,334
)
 
(1,982
)
Net cash provided by (used in) financing activities
 
(2,255
)
 
5,568

Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(241
)
 
(478
)
Net increase (decrease) in cash, cash equivalents and restricted cash, continuing operations
 
(3,238
)
 
12,510

Net cash used in discontinued operations
 
(3,975
)
 
(3,384
)
Cash, cash equivalents and restricted cash, beginning of period
 
29,225

 
20,099

Cash, cash equivalents and restricted cash, end of period
 
$
22,012

 
$
29,225

Supplemental disclosure of cash flow information
 
 
 
 
Income taxes paid, net
 
$
2,153

 
$
1,128

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

 
$

Non-cash transfer of non-marketable equity securities to short-term investments
 
$

 
$
1,348

 
 
 
 
 
Cash flows from discontinued operations:
 
 
 
 
Net cash used in operating activities
 
$
(3,569
)
 
$
(3,384
)
Net cash used in financing activities
 
(406
)
 

Net cash transferred from continuing operations
 
3,975

 
3,384

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
 
$
20,518

 
$
27,275

Restricted cash
 
1,494

 
1,950

Total cash, cash equivalents and restricted cash
 
$
22,012

 
$
29,225














Telenav, Inc.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands)
Reconciliation of Revenue to Billings
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Fiscal Year Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Revenue
 
$
35,351

 
$
51,703

 
$
240,351

 
$
196,655

Adjustments:
 
 
 
 
 
 
 
 
Change in deferred revenue
 
(4,259
)
 
31,316

 
3,808

 
60,597

Billings
 
$
31,092

 
$
83,019

 
$
244,159

 
$
257,252







Reconciliation of Deferred Revenue to Change in Deferred Revenue
Reconciliation of Deferred Costs to Change in Deferred Costs
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Fiscal Year Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Deferred revenue, end of period
 
$
138,943

 
$
135,135

 
$
138,943

 
$
135,135

Deferred revenue, beginning of period
 
143,202

 
103,819

 
135,135

 
74,538

Change in deferred revenue
 
$
(4,259
)
 
$
31,316

 
$
3,808

 
$
60,597


 
 
 
 
 
 
 
 
Deferred costs, end of period
 
$
80,669

 
$
79,802

 
$
80,669

 
$
79,802

Deferred costs, beginning of period
 
82,698

 
72,359

 
79,802

 
58,425

Change in deferred costs(1)
 
$
(2,029
)
 
$
7,443

 
$
867

 
$
21,377

 
 
 
 
 
 
 
 
 
(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 Loss to Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Fiscal Year Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Net loss
 
$
(9,249
)
 
$
(12,856
)
 
$
(930
)
 
$
(32,488
)
Loss on discontinued operations
 

 
2,941

 
4,042

 
6,836

Income (loss) from continuing operations
 
(9,249
)
 
(9,915
)
 
3,112

 
(25,652
)
Adjustments:
 
 
 
 
 
 
 
 
Legal settlements and contingencies
 

 
50

 

 
700

Stock-based compensation expense
 
2,845

 
1,793

 
8,034

 
7,404

Depreciation and amortization
 
745

 
696

 
3,430

 
3,678

Other income, net
 
(765
)
 
(213
)
 
(3,010
)
 
(2,916
)
Provision for income taxes
 
215

 
340

 
1,336

 
1,376

Equity in net (income) of equity method investees
 
(182
)
 

 
(876
)
 

Adjusted EBITDA
 
$
(6,391
)
 
$
(7,249
)
 
$
12,026

 
$
(15,410
)
 
 
 
 
 
 
 
 
 



Reconciliation of Net Loss to Free Cash Flow
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Fiscal Year Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Net loss
 
$
(9,249
)
 
$
(12,856
)
 
$
(930
)
 
$
(32,488
)
Loss on discontinued operations
 

 
2,941

 
4,042

 
6,836

Income (loss) from continuing operations
 
(9,249
)
 
(9,915
)
 
3,112

 
(25,652
)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Change in deferred revenue(1)
 
(4,289
)
 
31,316

 
3,753

 
60,597

Change in deferred costs(2)
 
2,033

 
(7,443
)
 
(891
)
 
(21,377
)
Changes in other operating assets and liabilities
 
(6,936
)
 
(11,800
)
 
13,690

 
(12,517
)
Other adjustments(3)
 
4,031

 
2,550

 
7,607

 
9,846

Net cash provided by (used in) operating activities
 
(14,410
)
 
4,708

 
27,271

 
10,897

Less: Purchases of property and equipment
 
387

 
(442
)
 
(933
)
 
(1,398
)
Free cash flow
 
$
(14,023
)
 
$
4,266

 
$
26,338

 
$
9,499

 
 
 
 
 
 
 
 
 
(1) Consists of product royalties, customized software development fees, service fees and subscription fees.
(2) Consist 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.




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Telenav | Transforming Life on the Go Telenav, Inc. (NASDAQ: TNAV) Fourth Quarter and Fiscal 2020 Conference Call August 12, 2020 Q4 2020


 
Forward Looking Statements This supplemental investor presentation contains forward-looking statements that are based on the Company management’s belief 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: 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 full production and the impact the continued period of reduced volume of new vehicles being produced will have our revenue and operating results; the ensuing economic recession; the Company’s ability to achieve future revenue currently estimated under customer engagements; 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 Ford’s announcement regarding Garmin and the possibility that Ford and other OEMs may transition additional business to other platforms and provides, such as Google Automotive Services; 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; the Company’s dependence on a limited number of automobile manufacturers and tier ones for a substantial portion of its revenue, such as Ford and GM; reductions in demand for automobiles in general and specifically for Ford and GM vehicles; potential impacts of automobile manufacturers and tier ones, in particular Ford and GM, 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;. The Company 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 the Company expects.


 
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 supplemental investor presentation 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 tables included in this supplemental investor presentation. Billings equal 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 and may require additional services 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 income/loss adjusted for discontinued operations and excluding the impact of stock-based compensation expense, depreciation and amortization, other income (expense) net, provision (benefit) for income taxes, and other applicable items such as legal settlements and contingencies. Stock-based compensation expense relates to equity incentive awards granted to its employees, directors, and consultants. Legal settlements and contingencies represent settlements, offers made to settle, or loss accruals relating to litigation or other disputes in which Telenav is a party or the indemnitor of a party. Adjusted EBITDA, while generally a measure of profitability, can also represent a loss. Adjusted EBITDA is a key measure Telenav uses to understand and evaluate its 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 when calculating adjusted EBITDA can provide a useful measure for period-to-period comparisons of Telenav’s core business. Accordingly, Telenav believes that adjusted EBITDA generally may provide useful information to investors and others in understanding and evaluating its operating results in the same manner as Telenav does. 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.


 
Key Financial Metrics | Strong Fiscal Year 2020 144 12 240 100 33 197 0.5 99 111 FY 2019 FY 2019 FY 2020 FY 2020 FY 2019 FY 2020 + 22% + $27M + $44M Revenue Growth Improvement in Cash & Equity EBITDA Investments -15 4


 
Evolving Landscape I Our Response Improving Pandemic Team OEM Outlook Response & Resilience & from Q4 Cost Efficiency Will to Win


 
Connected Car Platform Strategy | Build, Acquire & Partner Building momentum via our flywheel strategy, focusing on 3 growth engines to capture +$500B* TAM TELENAV C O N N E C T E D CAR PLATFORM $500 Billion » Location Based Connected Car Intelligence (LBI) Market » Big Data + AI Margin Expansion with Higher Quality Service * Source: McKinsey Report--Monetizing Car Data, Sept. 2016 6


 
In-Car Software and Service » Ford launched SYNC4 - F-150, Bronco » Won two new Chinese OEM awards ❯ SAIC - Largest OEM in China ❯ Xpeng Motors – Leading EV OEM » VIVID platform advancement & beta testing » Investment in video platform company for fleets TELENAV C O N N E C T E D CAR PLATFORM » Location Based Intelligence (LBI) » Big Data + AI7


 
In-Car Commerce and Communication » Continued to develop ICC; launch with Japanese OEM expected in 2H FY21 » Increased investment in Motion Auto Insurance ❯ rapid increase in market coverage ❯ continues to scale at an accelerated pace » InMarket Media continues to grows at double digit % TELENAV C O N N E C T E D CAR PLATFORM » Location Based Intelligence (LBI) » Big Data + AI 8


 
Road Intelligence TELENAV C O N N E C T E D CAR PLATFORM » Location Based Intelligence (LBI) » Partnership with Grab to enhance Open » Big Data + AI Street Maps (OSM) » Exploring other road intelligence / ride hailing deals deal across the globe 9


 
2021 Focus Areas »Drive flywheel momentum with: ❯ Organic initiatives TELENAV ❯ Inorganic opportunities C O N N E C T E D CAR PLATFORM » Location Based Intelligence »Strive for operational excellence (LBI) & continue the journey » Big Data + AI »Build great culture 10


 
Q4 and FY20 Financial Overview


 
Key Messages I Q420 & FY20 Outstanding FY20 financial performance despite significant Covid-19 impact on Q420 Significant impact of Covid-19 & OEM shutdowns on Q420 » Q420 Revenue of $35M down 32% Y/Y » Q420 EBITDA of -$6.4M up $0.9M Y/Y 1 Despite all the headwinds in Q320 and Q420, excellent performance in FY20 » FY20 Revenue of $240M up 22% vs FY19 » FY20 EBITDA of $12M up $27M Y/Y $111M in cash, strong position even after a challenging quarter 2 » Equity investments made in multiple companies of approx. $33M » $144M in cash and equity investments represent approximately 55% of TNAV’s Market Cap at end of quarter Continued to execute on our connected car platform strategy to capitalize on the $500B connected car market » Awarded two new deals with Chinese OEMs, SAIC and Xpeng 3 » Completed investment in Waylens, a video platform service company for fleets » Increased investment in Motion Auto as we continue to partner and drive our in-car insurance solution forward COVID-19 4 » While impact was significant in Q420, near-to-mid term outlook continues to stabilize & improve » TNAV workforce proved their resilience & adaptability one more time, all projects on track without any disruption


 
Key Metrics | Q4 FY201 1 4 Billings2 OPEX3 7 Total Cash on Hand2 $31M 71% of Rev $111M -63% YoY +8 pts YoY +11% YoY -51% QoQ +24 pts QoQ -10% QoQ 2 Revenue3 5 Adjusted EBITDA2 8 Connected Cars $35M -$6M 20M -32% YoY +$1M YoY +33% YoY -45% QoQ -$8M QoQ +5% QoQ 3 Gross Margin %3 6 FCF2 9 Total Installed Base 42% -$14M 29M -1 pts YoY -$18M YoY +22% YoY -2 pts QoQ -$21M QoQ +4% QoQ 1 Adjusted for discontinued operations for all periods 2 Non-GAAP measure 3 GAAP measure


 
Key Metrics | FY201 1 4 Billings2 OPEX3 7 Operating Income3 $244M 47% of Rev $0.6M -5% YoY -9 pts YoY +$28M YoY 2 Revenue3 5 Adjusted EBITDA2 8 Net Loss3 $240M $12M -$1M +22% YoY +$27M YoY +32M YoY 3 Gross Margin %3 6 FCF2 9 Total Cash on Hand2 47% $26M $111M +5 pts YoY +$17M YoY +11% YoY 1 Adjusted for discontinued operations for all periods 2 Non-GAAP measure 3 GAAP measure


 
Performance Overview Breakdown | FY201 Substantial revenue growth Y/Y in both product and services Telenav Total Company Revenue Services Revenue Gross profit Mix 20% $240.4 million $113.9 million +22% y/y 47% of revenue, +4.9 pts y/y 80% Product Product Key Highlights Revenue Gross profit ➢ Significant year-over-year growth in revenue with increased services revenue mix $191.3 million $92.2 million ➢ Total revenue of $240.4M, up 22% Y/Y; Gross Margin of 47% up +13% y/y 48% of revenue, +5.9 pts y/y 4.9pts Y/Y ➢ Services business represented 20% of the overall revenue mix Services ➢ Operating Profit turned positive in fiscal 20 at $0.6 million, compared Revenue Gross profit with a loss of $(27.2) million in Fiscal 2019 ➢ GAAP net loss for fiscal 2020 was $(0.9) million, compared with a loss $49.1 million $21.7 million of $(32.5) million for fiscal 2019 +75% y/y 44% of revenue, +0.9 pts y/y All measures above are GAAP 1 Adjusted for discontinued operations for all periods - Please refer to the financial tables at the back of this presentation and Telenav’s Investor Relations website for the latest SEC filings


 
Growth Opportunities | Short to Medium Term Huge navigation & infotainment market opportunity with sizable market segments to address 5 4 3 Aftermarket all-in- one VIVID solution 2 In-Car Commerce 1 VIVID as an embedded platform for OEMs Connected car market is Increase share of expected to be $500+ wallet within 2 existing customers billion by 2030 Win New OEM’s 1 http://www.automotivebusiness.com.br/abinteligencia/pdf/TheDigitalDriveReport-January2018.pdf 2 McKinsey Report--Monetizing Car Data, Sept. 2016, ** https://www.statista.com/statistics/233743/vehicle-sales-in-china/ 16


 
FY21 | Focus on Operational Discipline Operational Discipline & Cost Controls » Single digit reduction in Workforce » Reduce contractor spend FY21 OpEx » Minimize discretionary spend » Execute on labor location strategy Mid to High single » Several other initiatives in the works to further digit decline Y/Y control costs » IT transformation to drive operational efficiencies and productivity gains


 
Q1 FY21 Outlook


 
Q1 FY21 Outlook Guidance (as of August 12, 2020) (dollars in millions) Revenue $57.0 to $59.0 Gross margin % 43% to 45% Operating expenses $27.0 to $29.0 Net income $(3.0) to $(1.0) Adjusted EBITDA* $0.0 to $2.0 - All measures above are GAAP except where denoted by a * (Non-GAAP)


 
Q4 Appendix and FY20 Financial Tables


 
Key Financial Metrics | YoY, QoQ Year-over-year growth in total cash on hand despite Covid-19 $64.5 $83.0 $51.7 $63.5 Revenue ($m) Billings ($m) $35.4 $31.1 - Revenue is a GAAP measure - -RevenueBillings is a GAAPnon-GAAP measure measure - -BillingsAdjusted is a for non discontinued-GAAP measure operations for all periods Q4 FY19 Q3 FY20 Q4 FY20 - Adjusted for discontinued operations for all periods Q4 FY19 Q3 FY20 Q4 FY20 $123.7 $6.9 $110.8 $4.3 $99.5 Total Cash on Hand ($m) Free Cash Flow ($m) - Both charts represent Non-GAAP measures - Both- Total charts Cash represent on Hand Non includes-GAAP cash, measures cash equivalents, and short- - Totalterm Cashinvestments on Hand includes cash, cash equivalents, and short- term-Adjusted investments for discontinued operations for all periods -Adjusted for discontinued operations for all periods - Please refer to the financial tables at the back of this presentation and -$14.0 - PleaseTelenav’s refer Investor to the financialRelations tables website at forthe theback latest of this SEC presentation filings and Q4 FY19 Q3 FY20 Q4 FY20 Telenav’s Investor Relations website for the latest SEC filings Q4 FY19 Q3 FY20 Q4 FY20


 
Telenav, Inc. Condensed Consolidated Balance Sheets (in thousands, except par value) (unaudited) June 30, June 30, 2020 2019 2020 2019 Assets Liabilities and stockholders’ equity Current assets: Current liabilities: Cash and cash equivalents $ 20,518 $ 27,275 Trade accounts payable $ 12,291 $ 16,061 Short-term investments 90,315 72,203 Accrued expenses 36,210 48,899 Accounts receivable, net of allowances of $5 and $7 at June 30, 2020 and 2019, respectively 34,542 69,781 Operating lease liabilities 2,786 - Restricted cash 1,494 1,950 Deferred revenue 37,973 31,270 Deferred costs 26,121 18,752 Income taxes payable 715 800 Prepaid expenses and other current assets 4,505 3,784 Liabilities of discontinued operations - 3,373 Assets of discontinued operations - 6,330 Total current liabilities 89,975 100,403 Total current assets 177,495 200,075 Deferred rent, non-current - 1,266 Property and equipment, net 4,319 5,583 Operating lease liabilities, non-current 5,191 - Operating lease right-of-use assets 7,067 - Deferred revenue, non-current 100,970 103,865 Deferred income taxes, non-current 1,515 998 Other long-term liabilities 645 811 Goodwill and intangible assets, net 14,255 15,701 Liabilities of discontinued operations, non-current - 30 Deferred costs, non-current 54,548 61,050 Commitments and contingencies - - Other assets 34,552 1,414 Stockholders’ equity: Assets of discontinued operations, non-current - 12,194 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; 47,342 and 46,911 shares Total assets $ 293,751 $ 297,015 issued and outstanding at June 30, 2020 and 2019, respectively 47 47 Additional paid-in capital 192,170 182,349 Accumulated other comprehensive loss (477) (1,477) Accumulated deficit (94,770) (90,279) Total stockholders’ equity 96,970 90,640 Total liabilities and stockholders’ equity $ 293,751 $ 297,015


 
Telenav, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Revenue: Product $ 21,614 $ 44,569 $ 191,253 $ 168,619 Services 13,737 7,134 49,098 28,036 Total revenue 35,351 51,703 240,351 196,655 Cost of revenue: Product 12,943 25,110 99,030 97,245 Services 7,392 4,142 27,401 15,904 Total cost of revenue 20,335 29,252 126,431 113,149 Gross profit 15,016 22,451 113,920 83,506 Operating expenses: Research and development 17,259 23,023 79,256 78,603 Sales and marketing 2,034 2,049 8,280 7,584 General and administrative 5,704 7,117 25,822 23,811 Legal settlements and contingencies - 50 - 700 Total operating expenses 24,997 32,239 113,358 110,698 Income (loss) from operations (9,981) (9,788) 562 (27,192) Other income, net 765 213 3,010 2,916 Income (loss) from continuing operations before provision for income taxes (9,216) (9,575) 3,572 (24,276) Provision for income taxes 215 340 1,336 1,376 Equity in net income of equity method investees (182) - (876) - Income (loss) from continuing operations (9,249) (9,915) 3,112 (25,652) Discontinued operations: Income (loss) from operations of Advertising business, net of tax - (2,941) 832 (6,836) Loss from sale of Advertising business - - (4,874) - Loss on discontinued operations - (2,941) (4,042) (6,836) Net loss $ (9,249) $ (12,856) $ (930) $ (32,488) Basic income (loss) per share: Income (loss) from continuing operations $ (0.20) $ (0.21) $ 0.07 $ (0.56) Loss on discontinued operations - (0.06) (0.08) (0.15) Net loss $ (0.20) $ (0.28) $ (0.02) $ (0.71) Diluted income (loss) per share: Income (loss) from continuing operations $ (0.20) $ (0.21) $ 0.06 $ (0.56) Loss on discontinued operations - (0.06) (0.08) (0.15) Net loss $ (0.20) $ (0.28) $ (0.02) $ (0.71) Weighted average shares used in computing income (loss) per share Basic 47,310 46,271 47,868 45,577 Diluted 47,310 46,271 48,761 45,577


 
Telenav, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Fiscal Year Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Operating activities Investing activities Net loss $ (930) $ (32,488) Purchases of property and equipment (933) (1,398) Loss on discontinued operations 4,042 6,836 Purchases of short-term investments (80,673) (45,816) Income (loss) from continuing operations 3,112 (25,652) Proceeds from sales and maturities of short-term investments 63,513 43,737 Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities: Purchases of long-term investments (9,920) - Stock-based compensation expense 8,034 7,404 Net cash used in investing activities (28,013) (3,477) Depreciation and amortization 3,430 3,678 Financing activities Operating lease amortization, net of accretion 2,998 - Proceeds from exercise of stock options 8,432 8,853 Accretion of net premium on short-term investments 258 (30) Repurchase of common stock (9,353) (1,303) Equity in net (income) of equity method investees (876) - Tax withholdings related to net share settlements of restricted stock units (1,334) (1,982) Gain on sale of intellectual property and workforce to Grab (45) - Net cash provided by (used in) financing activities (2,255) 5,568 Non-cash revenue associated with grant of perpetual license to Grab (5,831) - Effect of exchange rate changes on cash, cash equivalents and restricted cash (241) (478) Unrealized gain on investments - (1,174) Net increase (decrease) in cash, cash equivalents and restricted cash, continuing operations (3,238) 12,510 Other (361) (32) Net cash used in discontinued operations (3,975) (3,384) Changes in operating assets and liabilities: Cash, cash equivalents and restricted cash, beginning of period 29,225 20,099 Accounts receivable 35,698 (28,624) Cash, cash equivalents and restricted cash, end of period $ 22,012 $ 29,225 Deferred income taxes (541) (153) Supplemental disclosure of cash flow information Deferred costs (891) (21,377) Income taxes paid, net $ 2,153 $ 1,128 Non-cash investing: Investment in inMarket Media, LLC acquired in exchange for sale of Prepaid expenses and other current assets 435 (354) Advertising business $ 15,600 $ - Other assets (249) (177) Non-cash sale of assets to Grab in exchange for equity investment and software $ 7,012 $ - Trade accounts payable (3,875) 3,359 Non-cash transfer of non-marketable equity securities to short-term investments $ - $ 1,348 Accrued expenses and other liabilities (13,941) 12,489 Cash flow from discontinued operations: Income taxes payable (74) 583 Net cash used in operating activities $ (3,569) $ (3,384) Deferred rent - 360 Net cash used in financing activities (406) - Operating lease liabilities (3,763) - Net cash transferred from continuing operations 3,975 3,384 Deferred revenue 3,753 60,597 Net change in cash and cash equivalent from discontinued operations - - Net cash provided by operating activities 27,271 10,897 Cash and cash equivalents of discontinued operations, beginning of period - - Cash and cash equivalenta of discontinued operations, end of period $ - $ - Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets Cash and cash equivalents $ 20,518 $ 27,275 Restricted cash 1,494 1,950 Total cash, cash equivalents and restricted cash $ 22,012 $ 29,225


 
Telenav, Inc. Unaudited Reconciliation of Non-GAAP Adjustments (in thousands) Reconciliation of Revenue to Billings Three Months Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Revenue $ 35,351 $ 51,703 $ 240,351 $ 196,655 Adjustments: Change in deferred revenue (4,259) 31,316 3,808 60,597 Billings $ 31,092 $ 83,019 $ 244,159 $ 257,252 Telenav, Inc. Unaudited Reconciliation of Non-GAAP Adjustments (in thousands) Reconciliation of Deferred Revenue to Change in Deferred Revenue Reconciliation of Deferred Costs to Change in Deferred Costs Three Months Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Deferred revenue, end of period $ 138,943 $ 135,135 $ 138,943 $ 135,135 Deferred revenue, beginning of period 143,202 103,819 135,135 74,538 Change in deferred revenue $ (4,259) $ 31,316 $ 3,808 $ 60,597 Deferred costs, end of period $ 80,669 $ 79,802 $ 80,669 $ 79,802 Deferred costs, beginning of period 82,698 72,359 79,802 58,425 Change in deferred costs(1) $ (2,029) $ 7,443 $ 867 $ 21,377 (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 Loss to Adjusted EBITDA Three Months Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Net loss $ (9,249) $ (12,856) $ (930) $ (32,488) Loss on discontinued operations - 2,941 4,042 6,836 Income (loss) from continuing operations (9,249) (9,915) 3,112 (25,652) Adjustments: Legal settlements and contingencies - 50 - 700 Stock-based compensation expense 2,845 1,793 8,034 7,404 Depreciation and amortization expense 745 696 3,430 3,678 Other income, net (765) (213) (3,010) (2,916) Provision for income taxes 215 340 1,336 1,376 Equity in net (income) of equity method investees (182) - (876) - Adjusted EBITDA $ (6,391) $ (7,249) $ 12,026 $ (15,410)


 
Telenav, Inc. Unaudited Reconciliation of Non-GAAP Adjustments (in thousands) Reconciliation of Net Loss to Free Cash Flow Three Months Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Net loss $ (9,249) $ (12,856) $ (930) $ (32,488) Loss on discontinued operations - 2,941 4,042 6,836 Income (loss) from continuing operations (9,249) (9,915) 3,112 (25,652) Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities: Change in deferred revenue (1) (4,289) 31,316 3,753 60,597 Change in deferred costs (2) 2,033 (7,443) (891) (21,377) Changes in other operating assets and liabilities (6,936) (11,800) 13,690 (12,517) Other adjustments (3) 4,031 2,550 7,607 9,846 Net cash provided by (used in) operating activities (14,410) 4,708 27,271 10,897 Less: Purchases of property and equipment 387 (442) (933) (1,398) Free cash flow $ (14,023) $ 4,266 $ 26,338 $ 9,499 (1) Consists of product royalties, customized software development fees, service fees and subscription fees. (2) Consist 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.