February 2, 2015

Telenav Reports Second Quarter Fiscal Year 2015 Financial Results

-Quarterly Revenue Grew 14% Sequentially and 7% Year-Over-Year

-Growth Businesses of Automotive and Mobile Advertising Exceeded 70% of Total Revenue

SUNNYVALE, Calif., Feb. 2, 2015 (GLOBE NEWSWIRE) -- Telenav®, Inc. (Nasdaq:TNAV), a leader in location-based platform services, today announced its financial results for the second quarter that ended December 31, 2014.

"Telenav's vision is to become a global leader in transforming life on the go, by focusing on building a strong foundation around connected cars, location-based services, mobile advertising and OpenStreetMap initiatives. We are pleased to have achieved another solid quarter, delivering both sequential and year-over-year revenue growth, driven by our continued execution in our automotive and mobile advertising businesses," said HP Jin, chairman and CEO of Telenav. "Our automotive business continues to have strong momentum delivering 27% year-over-year and 23% sequential growth. We also had solid results in our mobile advertising business where revenue grew 65% year-over-year and 19% sequentially."

"In January, General Motors launched the new version of its OnStar RemoteLink® mobile application powered by our LBS platform including mapping and one-box search functionality," continued Jin. "This launch is part of a broader global strategic relationship with GM. In addition, Ford announced in January that we have been selected as the global navigation provider for its next generation SYNC3® infotainment system."

Financial Highlights

  • Revenue for the second quarter of fiscal year 2015 was $39.8 million, compared with $35.0 million in the first quarter of fiscal year 2015 and $37.2 million in the second quarter of fiscal year 2014.
  • Automotive revenue was $24.1 million, or 61 percent of total revenue, for the second quarter of fiscal year 2015, compared with $19.5 million, or 56 percent of total revenue, in the first quarter of fiscal year 2015 and $19.0 million, or 51 percent of total revenue in the second quarter of fiscal year 2014.
  • Mobile advertising revenue was $4.7 million, or 12 percent of total revenue, for the second quarter of fiscal year 2015, compared with $4.0 million, or 11 percent of total revenue, for the first quarter of fiscal year 2015, and $2.9 million, or 8 percent of total revenue for the second quarter of fiscal year 2014.
  • GAAP net loss for the second quarter of fiscal year 2015 was ($2.7) million, or ($0.07) per diluted share, compared with a GAAP net loss of ($7.9) million, or ($0.20) per diluted share, in the first quarter of fiscal year 2015 and a GAAP net loss of ($4.0) million, or ($0.10) per diluted share, for the second quarter of fiscal year 2014.
  • Adjusted EBITDA for the second quarter of fiscal year 2015 was a ($4.8) million loss adjusted for the impact of stock-based compensation expense, depreciation, amortization, interest income, other income (expense), benefit for income taxes, and other items such as legal settlements and restructuring costs, compared with a ($5.5) million loss in the first quarter of fiscal year 2015 and a ($2.4) million loss in the second quarter of fiscal year 2014.
  • Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $128.1 million, and Telenav had no debt as of December 31, 2014. This represented cash, cash equivalents and short-term investments of $3.21 per share, based on 39.9 million shares of outstanding common stock as of December 31, 2014.
  • Our effective tax rate was a benefit of 68% for the three months ended December 31, 2014 and was due to the combined effect of recognizing a tax benefit from our ability to carry back current period losses to prior years as well as certain other discrete benefit items recognized in the quarter totaling $4.1 million from the filing of amended state tax returns as well as the fiscal 2014 federal tax return.
  • In January 2015, tax refunds totaling $11.0 million were received. $8.0 million of this amount relates to an $8.6 million receivable due for a U.S. federal tax refund resulting from the Company's ability to carryback fiscal 2014 losses and credits to previous years and $3.0 million relates to a state income tax refund as a result of the filing and subsequent audit of California amended returns for fiscal 2009 and 2010.

Recent Business Highlights

  • In January 2015, General Motors launched the new version of its OnStar RemoteLink® mobile application powered by our mapping and one-box search platform. This launch is part of a broader global strategic relationship with GM that Telenav announced in January 2014 as "another top 5 Auto OEM award."
  • In January 2015, Telenav announced that it was selected to power the navigation experience of the next generation Ford SYNC® 3 infotainment system. Telenav expects to provide SYNC® 3 users with an enhanced driving and navigation experience, including simplified one-box search functionality, multi-touch map technology, and more.
  • In November 2014, another top 10 global automotive OEM selected Telenav as its preferred navigation provider for the China market. This is not a binding award and during the next few months, Telenav expects to work to execute a binding agreement. This program is targeted to launch in the first half of calendar year 2017.
  • In the December 2014 quarter, Telenav launched its navigation solution with Great Wall Motors, a leading domestic auto manufacturer in China and the country's largest SUV and pickup manufacturer. Great Wall is one of the few Chinese Auto OEMs to export vehicles globally.
  • In November 2014, another leading automotive OEM based in Europe has awarded a paid proof-of-concept to Telenav for a next generation connected navigation solution.
  • In the December 2014 quarter, Bosch launched its top-of-the line eBike Nyon® in Europe using Telenav's Scout OSM SDK to power its navigation experience. This solution provides bike specific routing taking into consideration battery load and consumption.
  • In January 2015, Telenav announced that a Silicon Valley startup, SKULLY Systems, has selected Telenav's Scout OSM SDK to deliver navigation features in their SKULLY AR-1 motorcycle helmet with an integrated heads-up display.

Business Outlook

For the quarter ending March 31, 2015, Telenav offers the following guidance, which is predicated on management's judgments.

  • Total revenue is expected to be $41 to $43 million;
  • Automotive revenue is expected to be 66 to 68 percent of total revenue, which includes the anticipated recognition of approximately $4 million in customized engineering fees;
  • Mobile advertising revenue is expected to be 11 to 13 percent of total revenue;
  • GAAP gross margin is expected to be 51 to 52 percent;
  • Non-GAAP gross margin is expected to be 53 to 54 percent, and represents GAAP gross margin adjusted for the add back of the amortization of capitalized software and developed technology of approximately $1 million;
  • GAAP operating expenses are expected to be $31 to $32 million;
  • Non-GAAP operating expenses are expected to be $28 to $29 million, and represent GAAP operating expenses adjusted for the impact of approximately $3 million of stock-based compensation expense;
  • Estimated tax rate is an expected benefit of approximately 26%;
  • GAAP net loss is expected to be ($7) to ($8) million;
  • GAAP diluted net loss per share is expected to be ($0.18) to ($0.20);
  • Non-GAAP net loss is expected to be ($4) to ($5) million, and represents GAAP net loss adjusted for the add back of the tax-effected impact of approximately $3 million of stock-based compensation expense, and approximately $1 million of capitalized software and developed technology amortization expenses;
  • Non-GAAP diluted net loss per share is expected to be ($0.10) to ($0.13) and represents GAAP net loss per share adjusted for the add back of the tax effected impact of approximately $3 million of stock-based compensation expense, and approximately $1 million of capitalized software and developed technology amortization expenses;
  • Adjusted EBITDA is expected to be ($5) to ($6) million, and represents GAAP net loss adjusted for the impact of approximately $3 million of stock-based compensation expense, and approximately $1.2 million of depreciation and amortization expenses, interest income, other income (expense), and benefit from income taxes; and
  • Weighted average diluted shares outstanding are expected to be approximately 40 million.

For the fiscal year ending June 30, 2015, Telenav offers the following guidance, which is predicated on management's judgments.

  • Total revenue is expected to be $161 to $165 million;
  • Automotive revenue is expected to be 62 to 64 percent of total revenue;
  • Mobile advertising revenue is expected to be 12 to 14 percent of total revenue;
  • GAAP gross margin is expected to be 50 to 51 percent;
  • Non-GAAP gross margin is expected to be 52 to 53 percent, and represents GAAP gross margin adjusted for the add back of the amortization of capitalized software and developed technology of approximately $3 million;
  • GAAP operating expenses are expected to be $123 to $126 million;
  • Non-GAAP operating expenses are expected to be $111 to $114 million, and represent GAAP operating expenses adjusted for the impact of approximately $12 million of stock-based compensation expense;
  • Estimated tax rate is an expected benefit of approximately 28%;
  • GAAP net loss is expected to be ($28) to ($31) million;
  • GAAP diluted net loss per share is expected to be ($0.70) to ($0.78);
  • Non-GAAP net loss is expected to be ($16) to ($19) million, and represents GAAP net loss adjusted for the add back of the tax effected impact of approximately $12 million of stock-based compensation expense, and approximately $3 million of capitalized software and developed technology amortization expenses;
  • Non-GAAP diluted net loss per share is expected to be ($0.40) to ($0.48), and represents GAAP net loss adjusted for the add back of the tax effected impact of approximately $12 million of stock-based compensation expense, and approximately $3 million of capitalized software and developed technology amortization expenses;
  • Adjusted EBITDA is expected to be ($23) to ($26) million, and represents GAAP net loss adjusted for the impact of approximately $12 million in stock-based compensation expense and approximately $5.5 million of depreciation and amortization expenses, interest income, other income (expense), benefit for income taxes, and other items such as legal settlements and restructuring costs; and
  • Weighted average diluted shares outstanding are expected to be approximately 40 million.

The above information concerning guidance represents Telenav's outlook only as of the date hereof, and is subject to change as a result of amendments to material contracts and other changes in business conditions. Telenav undertakes no obligation to update or revise any financial forecast or other forward looking statements, as a result of new developments or otherwise.

Conference Call

The company will host an investor conference call and live webcast at 2:00 p.m. PT (5:00 p.m. ET) today. To access the conference call, dial 888-337-8169 (toll-free, domestic only) or 719-457-2645 (domestic and international toll) and enter pass code 6327185. The webcast will be accessible on Telenav's investor relations website at http://investor.telenav.com. A replay of the conference call will be available for two weeks beginning approximately two hours after its completion. To access the replay, please dial 888-203-1112 (toll-free domestic only) or 719-457-0820 (international or domestic toll) and enter passcode 6327185.

Segment Reporting

Prior to July 1, 2014, Telenav reported on and operated its business as a single segment: location-based platform services. Commencing July 1, 2014, Telenav began to report its revenue and cost of revenues in three segments: automotive, advertising, and mobile navigation. Telenav has conformed all prior period segment information to the current period presentation for comparative purposes.

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 non-GAAP net income (loss), non-GAAP net income (loss) per share, non-GAAP gross margin, non-GAAP operating expenses, and adjusted EBITDA 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 non-cash or other charges 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.

Non-GAAP net income (loss), non-GAAP gross margin, and non-GAAP operating expenses exclude the impact of stock-based compensation expense, capitalized software and developed technology amortization expenses, and other items such as legal settlements, write-off of certain deferred tax assets, and restructuring costs, net of taxes or tax benefits, as applicable to each non-GAAP financial metric. Stock-based compensation expense relates to equity incentive awards granted to our employees, directors, and consultants. Stock-based compensation expense has been and will continue to be a significant recurring non-cash expense for Telenav. While we include the dilutive impact of such equity awards in weighted average shares outstanding, the expense associated with stock-based awards reflects a non-cash charge that we exclude from non-GAAP financial metrics. Capitalized software amortization expense represents internal software costs that are previously capitalized and charged to expense as the software is used in our operations. Developed technology amortization expense relates to the amortization of acquired intangible assets. Legal settlements represent settlements from patent litigation cases in which we are defendants and royalty disputes. The write-off of deferred tax assets related to a valuation allowance recorded against our deferred tax assets. Tax benefits represent refunds or carryforwards received. Restructuring costs represent recognition of the estimated amount of costs associated with restructuring activities. Our non-GAAP tax rate differs from the GAAP tax rate due to the elimination of any tax effect of stock-based compensation expenses, legal settlements, restructuring costs, and other items that are being eliminated to arrive at the non-GAAP net income (loss).

Adjusted EBITDA measures our GAAP net income (loss) excluding the impact of stock-based compensation expense, depreciation, amortization, interest income, other income (expense), provision (benefit) for income taxes, and other items such as legal settlements and restructuring costs. We believe this is a useful measure of profitability before the impact of certain non-cash expenses, interest income, income taxes, and certain other items that management believes affect the comparability of operating results. Adjusted EBITDA, while generally a measure of profitability, can also represent a loss.

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.

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 our management.  Forward-looking statements include information concerning the success of Telenav's reliance on automotive and advertising revenue, the timing of hiring of additional advertising sales personnel, and Telenav's future return to profitability. 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; Telenav's ability to develop and implement products for General Motors and to support GM and its customers; adoption by vehicle purchasers of Scout for Cars; Telenav's dependence on a limited number of auto manufacturers and original equipment manufacturers ("OEM") for a substantial portion of its revenue; Telenav's ability to develop and implement products for Ford's Sync3 system; Telenav's ability to complete negotiations with another top 10 auto manufacturer and to successfully complete a paid proof of concept with a leading European auto OEM, as well as the success of Telenav's products in Great Wall's vehicles; automotive manufacturers, automotive OEM, and consumer acceptance of Scout; Telenav's success in achieving additional design wins from OEM and automotive manufacturers and the delivery dates of automobiles including Telenav's products; Telenav's ability to grow and scale its advertising through the retention of additional, productive sales personnel, new advertising sales and technology delivery; Telenav incurring losses; competition from other market participants who may provide comparable services to subscribers without charge; Telenav's short history  in the automotive navigation market and the advertising market; the timing of new product releases and vehicle production by Telenav's automotive customers; Telenav's ability to develop and support products including OSM, as well as transition existing navigation products to OSM and any economic benefit anticipated from the use of OSM versus proprietary map products; Telenav's ability to issue new releases of its products and services and expand its product portfolio; the introduction of new products by competitors or the entry of new competitors into the markets for Telenav's services and products; the potential that we may not be able to realize our deferred tax assets and may have to take a reserve against them; Telenav's ability to qualify for tax refunds and credits; and economic and political conditions in the US and abroad. We discuss these risks in greater detail in "Risk factors" and elsewhere in our Form 10-Q for the three months ended September 30, 2014 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 our management's beliefs and assumptions only as of the date made. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.

About Telenav, Inc.

Telenav is a leading provider of location-based platform services. These services consist of our map and navigation platform and our advertising delivery platform. Our map and navigation platform allows Telenav to deliver enhanced location-based services to developers, auto manufacturers and end users through various distribution channels, including wireless carriers. Our advertising delivery platform delivers highly targeted advertising services leveraging our location expertise.

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Copyright 2015 Telenav, Inc. All Rights Reserved.

"Telenav," "Scout," "Thinknear" and the Telenav, Scout and Thinknear logos are registered and unregistered trademarks of Telenav, Inc.  Unless otherwise noted, all other trademarks, service marks, and logos used in this press release are the trademarks, service marks or logos of their respective owners. 

TNAV-F

Telenav, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
 
  December 31, 2014 June 30, 2014 *
Assets (unaudited)  
Current assets:    
Cash and cash equivalents  $ 14,987  $ 14,534
Short-term investments  113,096  122,315
Accounts receivable, net of allowances of $211 and $206, at December 31, 2014 and June 30, 2014, respectively  31,272  25,762
Deferred income taxes  116  784
Restricted cash  5,097  5,995
Income taxes receivable  14,175  6,932
Prepaid expenses and other current assets  6,439  9,491
Total current assets  185,182  185,813
Property and equipment, net  7,768  8,814
Deferred income taxes, non-current  545  550
Goodwill and intangible assets, net  39,033  40,733
Other assets  4,019  3,931
Total assets  $ 236,547  $ 239,841
     
Liabilities and stockholders' equity    
Current liabilities:    
Accounts payable  $ 1,132  $ 502
Accrued compensation  8,918  12,874
Accrued royalties  9,827  3,671
Other accrued expenses  10,332  12,343
Deferred revenue  5,219  2,381
Income taxes payable  868  804
Total current liabilities  36,296  32,575
Deferred rent, non-current  5,417  7,129
Other long-term liabilities  8,937  7,732
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; 39,903 and 39,462 shares issued and outstanding at December 31, 2014, and June 30, 2014, respectively  40  40
Additional paid-in capital  135,587  129,278
Accumulated other comprehensive income (loss)  (989)  576
Retained earnings  51,259  62,511
Total stockholders' equity  185,897  192,405
Total liabilities and stockholders' equity   $ 236,547  $ 239,841
     
* Derived from audited consolidated financial statements as of and for the year ended June 30, 2014
     
Telenav, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
 
  Three Months Ended
December 31,
Six Months Ended
December 31,
  2014 2013 2014 2013
  (unaudited) (unaudited)
         
Revenue:        
Product   $ 23,461  $ 18,367  $ 42,377  $ 37,658
Services  16,319  18,794  32,390  43,799
Total revenue  39,780  37,161  74,767  81,457
         
Cost of revenue:        
Product   12,824  9,367  23,002  18,676
Services  6,709  5,807  12,491  12,547
Total cost of revenue  19,533  15,174  35,493  31,223
         
Gross profit  20,247  21,987  39,274  50,234
         
Operating expenses:        
Research and development  16,620  14,173  33,618  28,716
Sales and marketing  6,710  7,838  12,906  15,456
General and administrative  5,697  6,702  11,910  12,573
Restructuring costs  565  283  565  831
Total operating expenses  29,592  28,996  58,999  57,576
         
Loss from operations  (9,345)  (7,009)  (19,725)  (7,342)
         
Interest income  240  319  485  647
Other income (expense), net  630  802  1,688  756
Loss before benefit for income taxes  (8,475)  (5,888)  (17,552)  (5,939)
Benefit for income taxes  (5,752)  (1,891)  (6,892)  (1,951)
Net loss  $ (2,723)  $ (3,997)  $ (10,660)  $ (3,988)
         
Net loss per share         
Basic  $ (0.07)  $ (0.10)  $ (0.27)  $ (0.10)
Diluted  $ (0.07)  $ (0.10)  $ (0.27)  $ (0.10)
         
Weighted average shares used in computing net loss per share        
Basic  39,916  38,508  39,727  38,660
Diluted  39,916  38,508  39,727  38,660
         
Telenav, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
 
  Six Months Ended
December 31,
  2014 2013
  (unaudited)
Operating activities    
Net loss  $ (10,660)  $ (3,988)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization  2,876  3,424
Accretion of net premium on short-term investments  850  1,904
Stock-based compensation expense  5,927  5,146
Loss on disposal of property and equipment  8  14
Bad debt expense  14  59
Excess tax benefit from stock-based compensation  --  259
Changes in operating assets and liabilities:    
Accounts receivable  (5,524)  2,187
Deferred income taxes  673  (2,065)
Income taxes receivable  (7,243)  --
Restricted cash  898  (10,964)
Prepaid expenses and other current assets  3,052  (1,200)
Other assets  42  405
Accounts payable  647  (562)
Accrued compensation  (3,956)  (287)
Accrued royalties  6,156  (4,669)
Accrued expenses and other liabilities  (953)  9,059
Income taxes payable  64  (301)
Deferred rent  (1,104)  (650)
Deferred revenue  2,807  (4,573)
Net cash used in operating activities  (5,426)  (6,802)
     
Investing activities    
Purchases of property and equipment  (512)  (540)
Purchases of short-term investments  (87,803)  (41,820)
Purchases of long-term investments  (200)  (600)
Proceeds from sales and maturities of short-term investments   95,611  67,543
Net cash provided by investing activities  7,096  24,583
     
Financing activities    
Proceeds from exercise of stock options  1,781  638
Tax withholdings related to net share settlements of restricted stock units  (854)  (513)
Repurchase of common stock  (1,139)  (6,277)
Excess tax benefit from stock-based compensation  --  (259)
Net cash used in financing activities  (212)  (6,411)
     
Effect of exchange rate changes in cash and cash equivalents  (1,005)  45
Net increase in cash and cash equivalents  453  11,415
Cash and cash equivalents, at beginning of period  14,534  25,787
Cash and cash equivalents, at end of period  $ 14,987  $ 37,202
     
Supplemental disclosure of cash flow information    
Income taxes paid, net  $ 97  $ 220
     
Telenav, Inc.
Condensed Consolidated Segment Summary
(in thousands, except percentages)
 
  Three Months Ended
December 31,
Six Months Ended
December 31,
  2014 2013 2014 2013
  (unaudited) (unaudited)
         
Revenue:        
Auto  $ 24,077  $ 18,964  $ 43,579  $ 38,854
Ads  4,732  2,868  8,707  4,948
Mobile Nav  10,971  15,329  22,481  37,655
Total revenue  39,780  37,161  74,767  81,457
         
Cost of revenue:        
Auto  13,240  9,367  23,636  18,676
Ads  3,298  1,826  5,838  3,079
Mobile Nav  2,995  3,981  6,019  9,468
Total cost of revenue  19,533  15,174  35,493  31,223
         
Gross profit:        
Auto  10,837  9,597  19,943  20,178
Ads  1,434  1,042  2,869  1,869
Mobile Nav  7,976  11,348  16,462  28,187
Total gross profit  $ 20,247  $ 21,987  $ 39,274  $ 50,234
         
Gross margin:        
Auto 45% 51% 46% 52%
Ads 30% 36% 33% 38%
Mobile Nav 73% 74% 73% 75%
Total gross margin 51% 59% 53% 62%
         
Telenav, Inc.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share amounts and percentages)
 
 
Reconciliation of GAAP Net Loss
to Non-GAAP Income (Loss) 
 
  Three Months Ended
December 31,
Six Months Ended
December 31,
  2014 2013 2014 2013
         
GAAP net loss  $ (2,723)  $ (3,997)  $ (10,660)  $ (3,988)
         
Adjustments:        
Benefit from income tax due to tax return filings (4,061)  --  (4,061)  -- 
Restructuring costs  565  283  565  831
Capitalized software and developed technology amortization expenses  867  818  1,770  1,718
Stock-based compensation expense:        
Cost of revenue  27  30  51  66
Research and development  1,125  1,063  2,625  2,072
Sales and marketing  730  769  1,494  1,466
General and administrative  657  801  1,757  1,542
Total stock-based compensation expense  2,539  2,663  5,927  5,146
         
Tax effect of adding back adjustments  (182)  (757)  (407)  (1,514)
         
Non-GAAP net income (loss)  $ (2,995)  $ (990)  $ (6,866)  $ 2,193
         
         
Non-GAAP net income (loss) per share         
Basic  $ (0.08)  $ (0.03)  $ (0.17)  $ 0.06
Diluted  $ (0.08)  $ (0.03)  $ (0.17)  $ 0.05
Weighted average shares used in computing non-GAAP net income (loss) per share        
Basic  39,916  38,508  39,727  38,660
Diluted  39,916  38,508  39,727  40,308
         
         
Reconciliation of GAAP Net Loss to Adjusted EBITDA
 
  Three Months Ended
December 31,
Six Months Ended
December 31,
  2014 2013 2014 2013
         
GAAP net loss  $ (2,723)  $ (3,997)  $ (10,660)  $ (3,988)
         
Adjustments:        
Restructuring costs  565  283  565  831
Stock-based compensation expense  2,539  2,663  5,927  5,146
Depreciation and amortization expenses  1,399  1,630  2,876  3,424
Interest income  (240)  (319)  (485)  (647)
Other expense (income), net  (630)  (802)  (1,688)  (756)
Benefit for income taxes  (5,752)  (1,891)  (6,892)  (1,951)
         
Adjusted EBITDA  $ (4,842)  $ (2,433)  $ (10,357)  $ 2,059
         
         
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
 
  Three Months Ended
December 31,
Six Months Ended
December 31,
  2014 2013 2014 2013
         
GAAP operating expenses  $ 29,592  $ 28,996  $ 58,999  $ 57,576
         
Adjustments:        
Restructuring costs  (565)  (283)  (565)  (831)
Stock-based compensation expense  (2,512)  (2,633)  (5,876)  (5,080)
         
Non-GAAP operating expenses  $ 26,515  $ 26,080  $ 52,558  $ 51,665
         
         
Telenav, Inc.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except percentages)
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
 
 
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  Three Months Ended
December 31,
Three Months Ended
December 31,
Three Months Ended
December 31,
Three Months Ended
December 31,
  2014 2013 2014 2013 2014 2013 2014 2013
                 
GAAP gross margin 45% 51% 30% 36% 73% 74% 51% 59%
                 
Adjustments:                
Capitalized software and developed technology amortization expenses 1% 0% 9% 15% 1% 3% 2% 2%
                 
Non-GAAP gross margin 46% 51% 39% 51% 74% 77% 53% 61%
                 
                 
                 
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  Six Months Ended
December 31,
Six Months Ended
December 31,
Six Months Ended
December 31,
Six Months Ended
December 31,
  2014 2013 2014 2013 2014 2013 2014 2013
                 
GAAP gross margin 46% 52% 33% 38% 73% 75% 53% 62%
                 
Adjustments:                
Capitalized software and developed technology amortization expenses 1% 0% 10% 17% 2% 2% 2% 2%
                 
Non-GAAP gross margin 47% 52% 43% 55% 75% 77% 55% 64%
CONTACT: Media Contact

         Kristen Berry

         650-691-7318

         telenav@airfoilgroup.com



         Investor Relations:

         Cynthia Hiponia

         The Blueshirt Group for Telenav, Inc.

         408.990.1265

         IR@telenav.com

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Source: Telenav, Inc.

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