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Telenav Reports Fourth Quarter And Fiscal Year 2013 Financial Results

Stocks in this article: TNAV

SUNNYVALE, Calif., July 25, 2013 (GLOBE NEWSWIRE) -- Telenav®, Inc. (Nasdaq:TNAV), the leader in personalized navigation, today announced its financial results for the fourth quarter and fiscal year that ended June 30, 2013.

"We are pleased with the financial results in our strategic growth and international areas, which represented 59% of total revenue for the fourth quarter and 51% for the fiscal year," said HP Jin, chairman, president and CEO of Telenav. "Our solid revenue performance in our automotive business, which accounted for 46% of total revenue for the quarter, aligns with our strategy to diversify our revenue base. In addition, we have begun to see growth in our mobile advertising business and we will continue to invest in our business, as we believe we can capitalize on this high growth market through our differentiated, location-enabled platform."

As previously announced, due to the sale of the Enterprise business that closed effective April 1, 2013, we have presented the results of operations of that business as discontinued operations in our income statement for all periods presented.

Financial Highlights

  • Revenue for the fourth quarter of fiscal year 2013 was $47.1 million, compared with $55.0 million in the third quarter of fiscal year 2013 and $51.4 million in the fourth quarter of fiscal year 2012. Revenue for fiscal year 2013 was $191.8 million, compared with $205.5 million in fiscal year 2012.
  • Revenue stemming from strategic growth and international areas for the fourth quarter of fiscal year 2013 was $27.8 million, compared with $32.1 million in the third quarter of fiscal year 2013 and $12.8 million in the fourth quarter of fiscal year 2012. Strategic growth and international revenue represented 59% of total revenue for the fourth quarter of fiscal year 2013, compared with 58% in the third quarter of fiscal year 2013, and up 117% from the fourth quarter of fiscal year 2012. Automotive revenue was $21.6 million, or 46% of total revenue, for the fourth quarter of fiscal year 2013.
  • Revenue stemming from strategic growth and international areas for fiscal year 2013 was $96.9 million, up 120% from fiscal year 2012. Strategic growth and international revenue represented 51% of total revenue for fiscal year 2013, compared with 21% in fiscal year 2012. Automotive revenue was $71.5 million, or 37% of total revenue, for fiscal year 2013.
  • GAAP net loss from continuing operations for the fourth quarter of fiscal year 2013 was ($0.9) million, or ($0.02) per diluted share, compared with GAAP net income of $3.8 million, or $0.09 per diluted share, in the third quarter of fiscal year 2013 and GAAP net income of $6.2 million, or $0.14 per diluted share, for the fourth quarter of fiscal year 2012.
  • GAAP net income from continuing operations for fiscal year 2013 was $5.6 million, or $0.13 per diluted share, compared with $31.8 million, or $0.72 per diluted share, for fiscal year 2012.
  • Adjusted EBITDA for the fourth quarter of fiscal year 2013 was $4.2 million (GAAP net loss adjusted for add back stock-based compensation expense, depreciation, amortization, interest income, other expense, provision (benefit) for income taxes, and other items such as legal settlements and restructuring costs, net of tax), compared with $8.8 million in the third quarter of fiscal year 2013 and $12.9 million in the fourth quarter of fiscal year 2012 a year ago. For fiscal year 2013, adjusted EBITDA was $25.5 million compared with $57.2 million for fiscal year 2012.
  • Ending cash, cash equivalents and short-term investments were $191.7 million, and Telenav had no debt as of June 30, 2013. This represented cash, cash equivalents and short-term investments of $4.87 per share, based on approximately 39.3 million shares of outstanding common stock as of June 30, 2013.

Recent Business Highlights

  • In April 2013, Telenav completed the sale of its Enterprise business to FleetCor Technologies Operating Company, LLC, or FleetCor, for aggregate proceeds of approximately $10 million, resulting in the gain on the Enterprise business sale of approximately $6.5 million, net of tax.
  • In June 2013, Telenav appointed David Smith as vice president of sales. Mr. Smith now leads the Company's mobile advertising sales business in North America. Mr. Smith previously held senior mobile sales positions with InMobi and Millennial Media.
  • In July 2013, Scout launched a suite of traffic-related features to make daily commuters' lives easier, less stressful and more productive. Some of these features include the ability for users to report incidents such as accidents, road hazards, traffic jams and police presence to other Scout users.
  • In the fourth quarter of fiscal year 2013, the app store ratings for Scout for iPhone and Scout for Android averaged 4.5 stars. Scout continues to rank in the top three in the free navigation category on iTunes.

Business Outlook

For the first fiscal quarter ending September 30, 2013, Telenav offers the following guidance, which is predicated on management's judgments.

  • Total revenue is expected to be $41 to $43 million;
  • Revenue from strategic growth areas (automotive, mobile advertising and premium LBS) is expected to be 50% to 55% of total revenue;
  • GAAP gross margin is expected to be 62% to 63%;
  • Non-GAAP gross margin is expected to be 64% to 65%, 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 $28 to $29 million;
  • Non-GAAP operating expenses are expected to be $25 to $26 million, and represents GAAP operating expenses adjusted for the add back of approximately $3 million of stock-based compensation expense;
  • GAAP net loss is expected to be breakeven to ($1) million;
  • GAAP diluted net loss per share is expected to be breakeven to ($0.03);
  • Non-GAAP net income is expected to be $2.5 to $3.5 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 income per share is expected to be $0.06 to $0.09 and represents GAAP net loss per share adjusted for the add back of the tax effect of approximately $3 million of stock-based compensation expense, and approximately $1 million of capitalized software and developed technology expenses;
  • Adjusted EBITDA is expected to be $1.5 to $2.5 million, and represents GAAP net loss adjusted for the add back of approximately $3 million of stock-based compensation expense, and approximately $2 million of depreciation and amortization expenses, other income and expense, and income taxes; and
  • Weighted average diluted shares outstanding are expected to be approximately 40 million.

For the fiscal year ending June 30, 2014, Telenav offers the following guidance:

  • Total revenue is expected to be $140 to $150 million;
  • Revenue from strategic growth areas (automotive, mobile advertising and premium LBS) is expected to be approximately 60% of total revenue;
  • Automotive revenue is expected to be 45% to 50% of total revenue;
  • Mobile advertising revenue is expected to exceed 10% of total revenue;
  • GAAP gross margin is expected to be 57% to 58%;
  • Non-GAAP gross margin is expected to be 60% to 61%, and represents GAAP gross margin adjusted for the add back of the amortization of capitalized software and developed technology of approximately $4 million;
  • GAAP operating expenses are expected to be $110 to $120 million;
  • Non-GAAP operating expenses are expected to be $99 to $108 million, and represents GAAP operating expenses adjusted for the add back of  $11 to $12  million of stock-based compensation expense;
  • GAAP net loss is expected to be ($15) to ($20) million;
  • GAAP diluted net loss per share is expected to be ($0.38) to ($0.50);
  • Non-GAAP net loss is expected to be ($2) to ($8) million, and represents GAAP net loss adjusted for the add back of the tax effected impact of $11 to $12 million of stock-based compensation expense, and approximately $4 million of capitalized software and developed technology amortization expenses;
  • Non-GAAP diluted net loss per share is expected to be ($0.05) to ($0.20), and represents GAAP net loss adjusted for the add back of the tax effected impact of $11 to $12 million of stock-based compensation expense, and approximately $4 million of capitalized software and developed technology amortization expenses;
  • Adjusted EBITDA is expected to be ($10) to ($15) million, and represents GAAP net loss adjusted for the add back for the impact of $11 to $12 million in stock-based compensation expenses and $7 to $8 million of depreciation and amortization expenses, other income and expense, and income taxes; and
  • Weighted average diluted shares outstanding are expected to be approximately 40 million.

The Company plans to achieve quarterly breakeven on an adjusted EBITDA basis during fiscal year 2015.

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