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| 8-K - 8-K - Telenav, Inc. | tnav331148-k.htm |
Telenav Reports Third Quarter Fiscal 2014 Financial Results
-Telenav and Ford Extend Agreement through Calendar Year 2017
- Location-Based Mobile Advertising Gains Momentum with over 50% Quarterly Bookings Growth
Sunnyvale, Calif. - April 24, 2014 -Telenav®, Inc. (NASDAQ:TNAV), the leader in personalized navigation, today announced its financial results for the third quarter of fiscal 2014 ended March 31, 2014.
“We continue to execute our strategy to invest and drive growth in our automotive and mobile advertising businesses,” said HP Jin, chairman and CEO of Telenav. “We are excited to announce today that Ford has extended our agreement through the end of calendar year 2017. Together with our announcement early in the quarter of an additional top 5 largest global automotive manufacturer partnership, we have proven our product leadership in the global connected navigation market and the superior value we deliver for customers.
In our mobile advertising business, we generated robust bookings up over 50% quarter-over-quarter. As we scale this business, we are pleased to have two seasoned advertising industry executives join our growing Thinknear team.”
Financial Highlights
• | Revenue for the third quarter of fiscal year 2014 was $34.5 million, compared with $37.2 million in the second quarter of fiscal year 2014 and $55.0 million in the third quarter of fiscal year 2013. |
• | Automotive revenue was $18.3 million, or 53 percent of total revenue, for the third quarter of fiscal year 2014, compared with $19.0 million, or 51 percent of total revenue, in the second quarter of fiscal year 2014 and $25.3 million, or 46 percent of total revenue in the third quarter of fiscal year 2013. |
• | Mobile advertising revenue was $2.9 million, or 8 percent of total revenue, for the third quarter of fiscal year 2014, flat with the second quarter of fiscal year 2014, and up approximately 200 percent from the third quarter of fiscal year 2013. |
• | GAAP net loss for the third quarter of fiscal year 2014 was ($7.6) million, or ($0.19) per diluted share, compared with GAAP net loss of $(4.0) million, or ($0.10) per diluted share, in the second quarter of fiscal year 2014 and GAAP net income of $3.8 million, or $0.09 per diluted share, for the third quarter of fiscal year 2013. |
• | Adjusted EBITDA for the third quarter of fiscal year 2014 was ($6.8) million (GAAP net income (loss) adjusted for 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), compared with ($2.7) million in the second quarter of fiscal year 2014 and $8.8 million in the third quarter of fiscal year 2013. |
• | Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $146.0 million, and Telenav had no debt as of March 31, 2014. This represented cash, cash equivalents and short-term investments of $3.73 per share, based on 39.2 million shares of outstanding common stock as of March 31, 2014. In January 2014, Telenav utilized $19.2 million of its cash to complete the acquisition of skobbler. |
Recent Business Highlights
• | In April 2014, Telenav and Ford extended their navigation product agreement to December 31, 2017. |
• | In April 2014, Telenav updated the Scout® for iPhone app with features not available through other popular navigation apps, including the ability to search ahead for restaurants, coffee shops, or gas stations and easily add these as pit stops on their current route. Additional updates include a personalized dashboard with community-powered suggestions for where to eat and drink based on Scout user favorites, day of week, time of day, and location and an arrival guide with parking suggestions. |
• | In April 2014, Telenav announced the appointment of two new Thinknear® mobile advertising executives. Brent Fraser, who has joined as the chief revenue officer and Tom White, as vice president of ad operations and inventory. Fraser most recently served as vice president of global sales for Proxi Digital - a division of Clear Channel - where he focused on digital audio and location-based mobile advertising. White formerly served as vice president of CityGrid Media’s publisher network. |
• | In January 2014, Telenav announced that it acquired skobbler, provider of the highest rated OpenStreetMap (OSM)-based GPS navigation apps in the world. With this acquisition, Telenav brings the most successful OSM navigation experts in the world together as one team - including the founder of OSM, Steve Coast, who joined Telenav last year. |
Due to the sale of the Enterprise business that closed effective April 1, 2013, the results of operations of that business are presented as discontinued operations in Telenav’s income statement for all periods as of fiscal 2013. All financial metrics reported exclude discontinued operations relating to the Enterprise business.
Business Outlook
For the fourth fiscal quarter ending June 30, 2014, Telenav offers the following guidance, which is predicated on management’s judgments.
• | Total revenue is expected to be $33 to $35 million; |
• | Automotive revenue is expected to be approximately 50 percent of total revenue; |
• | Mobile advertising revenue is expected to be 10 to 12 percent of total revenue; |
• | GAAP gross margin is expected to be 54 to 55 percent; |
• | Non-GAAP gross margin is expected to be 56 to 57 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 $34 to $35 million; |
• | Non-GAAP operating expenses are expected to be $30.5 to $31.5 million, and represents GAAP operating expenses adjusted for the impact of approximately $3.5 million of stock-based compensation expense; |
• | GAAP net loss is expected to be ($9.5) to ($10.5) million; |
• | GAAP diluted net loss per share is expected to be ($0.24) to ($0.27); |
• | Non-GAAP net loss is expected to be ($6.5) to ($7.5) million, and represents GAAP net loss adjusted for the add back of the tax effected impact of approximately $3.5 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 ($0.16) to ($0.19) and represents GAAP net loss per share adjusted for the add back of the tax effected impact of approximately $3.5 million of stock-based compensation expense, and approximately $1 million of capitalized software and developed technology expenses; |
• | Adjusted EBITDA is expected to be ($9.5) to ($10.5) million, and represents GAAP net loss adjusted for the impact of approximately $3.5 million of stock-based compensation expense, and approximately $2 million of depreciation and amortization expenses, interest income, other income (expense), provision (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 39 million. |
For the fiscal year ending June 30, 2014, Telenav offers the following guidance:
• | Total revenue is expected to be $149 to $151 million; |
• | Automotive revenue is expected to be approximately 50 percent of total revenue; |
• | Mobile advertising revenue is expected to be approximately 8 percent of total revenue; |
• | GAAP gross margin is expected to be approximately 59 percent; |
• | Non-GAAP gross margin is expected to be approximately 61 percent, and represents GAAP gross margin adjusted for the add back of the amortization of capitalized software and developed technology of approximately $3.5 million; |
• | GAAP operating expenses are expected to be $123 to $124 million; |
• | Non-GAAP operating expenses are expected to be $111 to $112 million, and represents GAAP operating expenses adjusted for the impact of approximately $11.5 million of stock-based compensation expense; |
• | GAAP net loss is expected to be ($21) to ($22) million; |
• | GAAP diluted net loss per share is expected to be ($0.54) to ($0.57); |
• | Non-GAAP net loss is expected to be ($9) to ($10) million, and represents GAAP net loss adjusted for the add back of the tax effected impact of approximately $11.5 million of stock-based compensation expense, and approximately $3.5 million of capitalized software and developed technology amortization expenses; |
• | Non-GAAP diluted net loss per share is expected to be ($0.23) to ($0.26), and represents GAAP net loss adjusted for the add back of the tax effected impact of approximately $11.5 million of stock-based compensation expense, and approximately $3.5 million of capitalized software and developed technology amortization expenses; |
• | Adjusted EBITDA is expected to be ($15) to ($16) million, and represents GAAP net loss adjusted for the impact of approximately $11.5 million in stock-based compensation expense and $7 to $8 million of depreciation and amortization expenses, interest income, other income (expense), provision (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 39 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 888-364-3109 (toll-free, domestic only) or 719-325-2464 (domestic and international toll) and enter passcode 6878889. 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 6878889.
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) from continuing operations, non-GAAP net income (loss) from continuing operations per share, non-GAAP gross margin, non-GAAP operating expenses, and adjusted EBITDA from continuing operations 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) from continuing operations , 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 and restructuring costs, net of taxes, 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. Restructuring costs represent recognition of the estimated amount of costs associated with restructuring activities. Our non-GAAP tax rate from continuing operations differs from the GAAP tax rate from continuing operations due to the elimination of any tax effect of stock-based compensation expenses, capitalized software and developed technology amortization expenses, legal settlements, restructuring costs, and other items that are being eliminated to arrive at the non-GAAP net income (loss) from continuing operations.
Adjusted EBITDA from continuing operations 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, consistent with our guidance for fiscal fourth quarter and full year 2014.
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 Telenav’s future relationship with a top five auto manufacturer for connected navigation, which may not result in any revenue until fiscal 2017, if at all; the impact of that relationship on Telenav’s financial results; the success of Telenav’s efforts with its auto manufacturer customer under the new agreement and the launch of vehicles containing the results of those collaborations; changes in the top five global auto manufacturer’s priorities for its new vehicles and its focus on connected navigation; the integration and leadership of our two new executives to our mobile
advertising business; the adoption and success of a customer version of Scout for Cars; the integration and impact on Telenav of the acquisition of skobbler and the use of OSMs for navigation products. 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, fluctuations in Telenav’s quarterly and annual operating results; Telenav’s ability to develop and implement a custom version of Scout for Cars for a top five global auto manufacturer and to support the manufacturer 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 (“OEMs”) for a substantial portion of its revenue; automotive manufacturers, automotive OEMs, and consumer acceptance of Scout; Telenav’s success in achieving additional design wins from OEMs and automotive manufacturers and the delivery dates of automobiles including Telenav’s products; 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; continued production of vehicles with and adoption by auto buyers of Telenav’s products offered by its auto manufacturer customers and the products offered by other automotive OEMs; the timing of new product releases and vehicle production by our automotive customers; Telenav’s ability to attract and retain auto manufacturers and automotive OEMs; Telenav’s ability to successfully integrate skobbler and to retain its employees; Telenav’s ability to develop and support products including OSMs, as well as transition existing navigation products to OSMs and any economic benefit anticipated from the use of OSM versus proprietary map products; Telenav’s ability to manage skobbler remotely in countries in which it has not previously done business; 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; the potential that we may not be able to realize our deferred tax assets and may have to take a reserve against them and products 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 quarter ended December 31, 2013 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’s mission is to help reduce stress, improve productivity, and make life more fun for people on the go. Our personalized navigation services help people make smarter decisions about where to go, what to do, when to leave, and how to get there.
Our products are available worldwide through wireless carriers, automobile manufacturers, advertisers and advertising agencies, and app developers, including AT&T, Bell Mobility, Boost Mobile, Ford, NII Holdings, QNX Software Systems, Rogers, Sprint, Telcel, T-Mobile U.S., U.S. Cellular, and Vivo Brazil. You can also find us in mobile app stores (Apple App Store, Google Play, and Windows Phone Marketplace), connected cars, and on the web at www.telenav.com, www.scout.me/app, and www.thinknear.com.
Follow us on Twitter, on Facebook and on Google+.
Copyright 2014 Telenav, Inc. All Rights Reserved.
"Telenav," "Thinknear," the Thinknear logo, "telenav.com," and "thinknear.com" are registered and unregistered trademarks and/or service marks 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.
Media Contact:
Mary Beth Lowell
Telenav, Inc.
425.531.0122
marybethl@telenav.com
Investor Relations:
Cynthia Hiponia and Alice Kousoum
The Blueshirt Group for Telenav, Inc.
408.990.1265
IR@telenav.com
TNAV-F
Telenav, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands, except per share amounts) | ||||||||
March 31, 2014 | June 30, 2013* | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,351 | $ | 25,787 | ||||
Short-term investments | 130,651 | 165,898 | ||||||
Accounts receivable, net of allowances of $154 and $241, at March 31, 2014 and June 30, 2013, respectively | 27,118 | 28,193 | ||||||
Deferred income taxes | 1,526 | 867 | ||||||
Restricted cash | 6,085 | 2,668 | ||||||
Prepaid expenses and other current assets | 13,325 | 11,113 | ||||||
Total current assets | 194,056 | 234,526 | ||||||
Property and equipment, net | 9,458 | 11,753 | ||||||
Deferred income taxes, non-current | 6,159 | 3,771 | ||||||
Goodwill and intangible assets, net | 41,485 | 18,805 | ||||||
Other assets | 3,880 | 4,814 | ||||||
Total assets | $ | 255,038 | $ | 273,669 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,540 | $ | 1,604 | ||||
Accrued compensation | 8,868 | 8,855 | ||||||
Accrued royalties | 4,900 | 9,833 | ||||||
Other accrued expenses | 12,443 | 16,729 | ||||||
Deferred revenue | 2,275 | 7,025 | ||||||
Income taxes payable | 74 | 95 | ||||||
Total current liabilities | 32,100 | 44,141 | ||||||
Deferred rent, non-current | 7,940 | 8,884 | ||||||
Other long-term liabilities | 7,269 | 6,180 | ||||||
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; 39,157 and 39,342 shares issued and outstanding at March 31, 2014, and June 30, 2013, respectively | 39 | 40 | ||||||
Additional paid-in capital | 126,702 | 118,193 | ||||||
Accumulated other comprehensive income | 496 | 373 | ||||||
Retained earnings | 80,492 | 95,858 | ||||||
Total stockholders’ equity | 207,729 | 214,464 | ||||||
Total liabilities and stockholders’ equity | $ | 255,038 | $ | 273,669 | ||||
*Derived from audited consolidated financial statements as of and for the year ended June 30, 2013 | ||||||||
Telenav, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 17,689 | $ | 24,824 | $ | 55,347 | $ | 48,214 | ||||||||
Services | 16,782 | 30,163 | 60,581 | 96,524 | ||||||||||||
Total revenue | 34,471 | 54,987 | 115,928 | 144,738 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Product | 8,535 | 12,882 | 27,211 | 26,253 | ||||||||||||
Services | 5,704 | 8,795 | 18,298 | 24,398 | ||||||||||||
Total cost of revenue | 14,239 | 21,677 | 45,509 | 50,651 | ||||||||||||
Gross profit | 20,232 | 33,310 | 70,419 | 94,087 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 15,837 | 16,067 | 44,970 | 45,372 | ||||||||||||
Sales and marketing | 8,853 | 7,941 | 24,521 | 22,752 | ||||||||||||
General and administrative | 6,895 | 5,259 | 19,623 | 18,635 | ||||||||||||
Total operating expenses | 31,585 | 29,267 | 89,114 | 86,759 | ||||||||||||
Operating income (loss) | (11,353 | ) | 4,043 | (18,695 | ) | 7,328 | ||||||||||
Interest income | 307 | 368 | 954 | 1,119 | ||||||||||||
Other income (expense), net | (651 | ) | (102 | ) | 105 | 183 | ||||||||||
Income (loss) from continuing operations before provision (benefit) for income taxes | (11,697 | ) | 4,309 | (17,636 | ) | 8,630 | ||||||||||
Provision (benefit) for income taxes | (4,142 | ) | 488 | (6,093 | ) | 2,170 | ||||||||||
Income (loss) from continuing operations, net of tax | (7,555 | ) | 3,821 | (11,543 | ) | 6,460 | ||||||||||
Income from discontinued operations, net of tax | — | 33 | — | 999 | ||||||||||||
Net income (loss) | $ | (7,555 | ) | $ | 3,854 | $ | (11,543 | ) | $ | 7,459 | ||||||
Income (loss) from continuing operations, net of tax, per share | ||||||||||||||||
Basic | $ | (0.19 | ) | $ | 0.10 | $ | (0.30 | ) | $ | 0.16 | ||||||
Diluted | $ | (0.19 | ) | $ | 0.09 | $ | (0.30 | ) | $ | 0.15 | ||||||
Income from discontinued operations, net of tax, per share | ||||||||||||||||
Basic | $ | — | $ | 0.00 | $ | — | $ | 0.02 | ||||||||
Diluted | $ | — | $ | 0.00 | $ | — | $ | 0.02 | ||||||||
Net income (loss) per share | ||||||||||||||||
Basic | $ | (0.19 | ) | $ | 0.10 | $ | (0.30 | ) | $ | 0.18 | ||||||
Diluted | $ | (0.19 | ) | $ | 0.09 | $ | (0.30 | ) | $ | 0.18 | ||||||
Weighted average shares used in computing net income (loss) per share | ||||||||||||||||
Basic | 38,777 | 39,874 | 38,698 | 40,672 | ||||||||||||
Diluted | 38,777 | 41,628 | 38,698 | 42,394 | ||||||||||||
Telenav, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
Nine Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(Unaudited) | ||||||||
Operating activities | ||||||||
Net income (loss) | $ | (11,543 | ) | $ | 7,459 | |||
Adjustments to reconcile net income (loss) to net | ||||||||
cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 5,119 | 6,427 | ||||||
Accretion of net premium on short-term investments | 2,720 | 3,269 | ||||||
Stock-based compensation expense | 8,021 | 6,214 | ||||||
Loss due to impairment | 250 | 425 | ||||||
Loss on disposal of property, plant & equipment | 105 | 18 | ||||||
Bad debt expense | 20 | 15 | ||||||
Excess tax benefit from stock-based compensation | 270 | 5 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,233 | (3,761 | ) | |||||
Deferred income taxes | (3,047 | ) | (879 | ) | ||||
Prepaid expenses and other current assets | (2,151 | ) | 4,410 | |||||
Restricted cash | (3,417 | ) | (2,428 | ) | ||||
Other assets | 369 | (924 | ) | |||||
Accounts payable | 1,699 | (811 | ) | |||||
Accrued compensation | (395 | ) | (1,522 | ) | ||||
Accrued royalties | (4,933 | ) | 6,206 | |||||
Accrued expenses and other liabilities | (3,030 | ) | 5,091 | |||||
Income taxes payable | (291 | ) | (768 | ) | ||||
Deferred rent | (740 | ) | 1,141 | |||||
Deferred revenue | (4,802 | ) | 5,050 | |||||
Net cash provided by (used in) operating activities | (14,543 | ) | 34,637 | |||||
Investing activities | ||||||||
Purchases of property and equipment | (754 | ) | (1,887 | ) | ||||
Additions to capitalized software | — | (793 | ) | |||||
Purchases of short-term investments | (54,662 | ) | (86,569 | ) | ||||
Purchases of long-term investments | (600 | ) | (950 | ) | ||||
Proceeds from sales and maturities of short-term investments | 87,348 | 109,059 | ||||||
Acquisitions, net of cash acquired | (19,245 | ) | (18,254 | ) | ||||
Net cash provided by investing activities | 12,087 | 606 | ||||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 758 | 2,633 | ||||||
Tax withholdings related to net share settlements of restricted stock units | (535 | ) | (51 | ) | ||||
Repurchase of common stock | (7,899 | ) | (24,209 | ) | ||||
Excess tax benefit from stock-based compensation | (270 | ) | (5 | ) | ||||
Net cash used in financing activities | (7,946 | ) | (21,632 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (34 | ) | 22 | |||||
Net increase (decrease) in cash and cash equivalents | (10,436 | ) | 13,633 | |||||
Cash and cash equivalents, at beginning of period | 25,787 | 6,920 | ||||||
Cash and cash equivalents, at end of period | $ | 15,351 | $ | 20,553 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid, net | $ | 255 | $ | 501 | ||||
Telenav, Inc. | ||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Reconciliation of GAAP Net Income (Loss) from Continuing Operations, Net of Tax, to Non-GAAP Income (Loss) from Continuing Operations, Net of Tax | ||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP net income (loss) | $ | (7,555 | ) | $ | 3,854 | $ | (11,543 | ) | $ | 7,459 | ||||||
Income from discontinued operations, net of tax | — | 33 | — | 999 | ||||||||||||
Income(loss) from continuing operations, net of tax | (7,555 | ) | 3,821 | (11,543 | ) | 6,460 | ||||||||||
Adjustments: | ||||||||||||||||
Legal settlement | — | — | — | 1,300 | ||||||||||||
Capitalized software and developed technology amortization expenses | 947 | 1,024 | 2,666 | 2,700 | ||||||||||||
Stock-based compensation: | ||||||||||||||||
Cost of revenue | 17 | 41 | 83 | 117 | ||||||||||||
Research and development | 1,131 | 1,017 | 3,203 | 2,545 | ||||||||||||
Sales and marketing | 757 | 684 | 2,223 | 1,676 | ||||||||||||
General and administrative | 970 | 875 | 2,512 | 1,876 | ||||||||||||
Total stock-based compensation | 2,875 | 2,617 | 8,021 | 6,214 | ||||||||||||
Tax effect of adding back adjustments | (632 | ) | (555 | ) | (1,847 | ) | (1,601 | ) | ||||||||
Non-GAAP income (loss) from continuing operations, net of tax | $ | (4,365 | ) | $ | 6,907 | $ | (2,703 | ) | $ | 15,073 | ||||||
Non-GAAP net income (loss) from continuing operations, net of tax, per share | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.17 | $ | (0.07 | ) | $ | 0.37 | ||||||
Diluted | $ | (0.11 | ) | $ | 0.17 | $ | (0.07 | ) | $ | 0.36 | ||||||
Weighted average shares used in computing net income (loss) per share | ||||||||||||||||
Basic | 38,777 | 39,874 | 38,698 | 40,672 | ||||||||||||
Diluted | 38,777 | 41,628 | 38,698 | 42,394 | ||||||||||||
Telenav, Inc. | ||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Reconciliation of GAAP Net Income (Loss) from Continuing Operations, Net of Tax, to Adjusted EBITDA from Continuing Operations | ||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP net income (loss) | $ | (7,555 | ) | $ | 3,854 | $ | (11,543 | ) | $ | 7,459 | ||||||
Income from discontinued operations, net of tax | — | 33 | — | 999 | ||||||||||||
Income (loss) from continuing operations, net of tax | (7,555 | ) | 3,821 | (11,543 | ) | 6,460 | ||||||||||
Adjustments: | ||||||||||||||||
Legal settlement | — | — | — | 1,300 | ||||||||||||
Stock-based compensation | 2,875 | 2,617 | 8,021 | 6,214 | ||||||||||||
Depreciation and amortization | 1,695 | 2,172 | 5,119 | 6,427 | ||||||||||||
Interest income | (307 | ) | (368 | ) | (954 | ) | (1,119 | ) | ||||||||
Other income (expense), net | 651 | 102 | (105 | ) | (183 | ) | ||||||||||
Provision (benefit) for income taxes | (4,142 | ) | 488 | (6,093 | ) | 2,170 | ||||||||||
Adjusted EBITDA from continuing operations | $ | (6,783 | ) | $ | 8,832 | $ | (5,555 | ) | $ | 21,269 | ||||||
Reconciliation of GAAP Gross Margin to Non-GAAP Margin | ||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP gross margin | 59 | % | 61 | % | 61 | % | 65 | % | ||||||||
Adjustments: | ||||||||||||||||
Capitalized software and developed technology amortization expenses | 3 | % | 2 | % | 2 | % | 2 | % | ||||||||
Stock-based compensation | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Non-GAAP gross margin | 62 | % | 63 | % | 63 | % | 67 | % | ||||||||
Telenav, Inc. | ||||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses | ||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP operating expenses | $ | 31,585 | $ | 29,267 | $ | 89,114 | $ | 86,759 | ||||||||
Adjustments: | ||||||||||||||||
Legal settlement | — | — | — | (1,300 | ) | |||||||||||
Stock-based compensation | (2,858 | ) | (2,576 | ) | (7,938 | ) | (6,097 | ) | ||||||||
Non-GAAP operating expenses | $ | 28,727 | $ | 26,691 | $ | 81,176 | $ | 79,362 | ||||||||