Top Five Global Automaker Selects Telenav as Worldwide Connected Navigation Partner
Telenav Acquires skobbler GmbH, a Leader in OpenStreetMap-based GPS Navigation
SUNNYVALE, Calif., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Telenav®, Inc. (Nasdaq:TNAV), the leader in personalized navigation, today announced its financial results for the second quarter of fiscal 2014 ended December 31, 2013."We are pleased to have exceeded our revenue guidance this quarter, driven by continued momentum in our automotive and mobile advertising businesses," said HP Jin, chairman and CEO of Telenav. "While as expected, we incurred a net loss in the quarter, our success with both our automotive and mobile advertising businesses confirms our belief that continuing to invest in these opportunities will provide substantial returns in the longer term." Jin noted that "Adding to our highly successful partnership with Ford, today we announced through our SEC filings that another one of the top five largest global automobile manufacturers has selected Telenav to be its worldwide navigation partner for vehicles that are expected to come to market in the 2017 model year. This agreement further validates that Telenav's vision and products align with the auto industry's progression toward the always-connected car. We are pleased that our technology leadership in this space has led to our expanding presence in the automotive industry, which will drive revenue growth in calendar 2016 and beyond." "Today, we also announced the acquisition of skobbler GmbH, with the highest rated OpenStreetMap (OSM)-based GPS navigation apps in the world," continued Jin. "Through this acquisition, we add significant industry-leading software expertise in location-based services, navigation and mapping to our team. We expect to leverage this expertise across our Scout products and services, especially internationally, where skobbler today is available in 49 regions with worldwide map coverage." Financial Highlights
- Revenue for the second quarter of fiscal year 2014 was $37.2 million, compared with $44.3 million in the first quarter of fiscal year 2014 and $47.2 million in the second quarter of fiscal year 2013.
- Revenue from strategic growth areas (automotive, mobile advertising and premium mobile navigation services) for the second quarter of fiscal year 2014 was $23.1 million, compared with $23.4 million in the first quarter of fiscal year 2014 and $17.8 million in the second quarter of fiscal year 2013. Strategic growth revenue represented 62 percent of total revenue for the second quarter of fiscal year 2014, up from 53 percent in the first quarter of fiscal year 2014, and 38 percent from the second quarter of fiscal year 2013. Automotive revenue was $19.0 million, or 51 percent of total revenue, for the second quarter of fiscal year 2014, compared with $19.9 million in the first quarter of fiscal year 2014, or 45 percent of total revenue, and $15.1 million in the second quarter of fiscal year 2013, or 32 percent of total revenue.
- GAAP net loss for the second quarter of fiscal year 2014 was ($4.0) million, or ($0.10) per diluted share, compared with GAAP net income of $9,000, or breakeven per diluted share, in the first quarter of fiscal year 2014 and GAAP net income of $0.4 million, or $0.01 per diluted share, for the second quarter of fiscal year 2013.
- Adjusted EBITDA for the second quarter of fiscal year 2014 was ($2.7) million (GAAP net income (loss) adjusted for the add back 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, net of tax), compared with $3.9 million in the first quarter of fiscal year 2014 and $6.5 million in the second quarter of fiscal year 2013.
- Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $175.6 million, and Telenav had no debt as of December 31, 2013. This represented cash, cash equivalents and short-term investments of $4.54 per share, based on approximately 38.7 million shares of outstanding common stock as of December 31, 2013. In January 2014, Telenav used approximately $19.2 million of its cash to complete the acquisition of skobbler.
- Today, Telenav announced through SEC filings that one of the top five largest global automobile manufacturers has selected Telenav as its worldwide connected navigation partner. The agreement covers an initial three-year production cycle, starting with select model year 2017 vehicles that are expected to be available beginning in calendar year 2016. Telenav's connected services are expected to support navigation in more than 100 countries. The automaker will use a unique version of Scout for Cars, Telenav's embedded and connected navigation reference product that includes a customized user interface depending on the region and target audience. It will provide robust points of interest and real-time data such as, traffic, local weather and gas prices. It will also provide continued route guidance with or without connectivity.
- Today, Telenav announced that it acquired skobbler, with the highest rated OpenStreetMap (OSM)-based GPS navigation apps in the world. The acquisition closed on January 29, 2014 for consideration of $23.8 million, consisting of approximately $19.2 million in cash, plus $4.6 million of common stock. 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. Telenav believes this team will become a major contributor to the creation of the most comprehensive, open-sourced maps of the world.
- In January of 2014, Telenav announced the appointment of two new Scout product leads - Rohan Chandran who has joined as the Head of Consumer Products and Global Services, and Hossam Bahlool, who is now Head of Automotive Products. Chandran has held senior product roles at Technorati and YP, and Bahlool comes to Telenav from Jingu Apps, which he co-founded. Prior to that, he was director of product management at BlackBerry for products including BB Messenger.
- In December 2013, Thinknear by Telenav partnered with Placed, Inc., the location insights leader, to provide retailers with valuable insights into the effectiveness of mobile ads in driving offline store visits. The partnership focuses on measurement of consumers who are exposed to location-based mobile ads on the Thinknear network, and analysis of Placed's location panel data, to provide a solid indication of ROI to marketing partners.
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