-Automotive Revenue of $31.8 million, up 32% year-over-year

-Location-based Advertising Revenue of $6.7 million, up 41% year-over-year

-Total Billings of $48.4 million, up 14% year-over-year

SUNNYVALE, Calif., Feb. 02, 2016 (GLOBE NEWSWIRE) -- Telenav®, Inc. (NASDAQ:TNAV), a leader in connected car services, today announced its financial results for the second quarter that ended December 31, 2015.

“We delivered solid results, achieving sequential and year-over-year growth in both revenue and billings, for the second quarter of fiscal 2016,” said HP Jin, chairman and CEO of Telenav. “We continued to strengthen our relationships with our current auto OEM partners within connected navigation as well as exploring new areas of partnerships. In location-based advertising, we delivered 41% year-over-year revenue growth while significantly lowering our operating losses. We remain focused on our long-term goals of steady growth and profitability.”

Financial Highlights

• Total revenue for the second quarter of fiscal 2016 was $45.3 million, compared with $44.1 million in the first quarter of fiscal 2016 and $39.8 million in the second quarter of fiscal 2015.
• Automotive revenue was $31.8 million, or 70 percent of total revenue, for the second quarter of fiscal 2016, compared with $31.7 million, or 72 percent of total revenue, in the first quarter of fiscal 2016 and $24.1 million, or 61 percent of total revenue, for the second quarter of fiscal 2015.
• Advertising revenue was $6.7 million, or 15 percent of total revenue, for the second quarter of fiscal 2016, compared with $4.9 million, or 11 percent of total revenue, for the first quarter of fiscal 2016, and $4.7 million, or 12 percent of total revenue, for the second quarter of fiscal 2015.
• Billings for the second quarter of fiscal 2016 was $48.4 million, compared with $47.9 million in the first quarter of fiscal 2016 and $42.7 million in the second quarter of fiscal 2015.
• Deferred revenue at December 31, 2015 was $13.9 million, compared with $10.7 million at September 30, 2015 and $5.2 million at December 31, 2014.
• Operating expenses for the second quarter of fiscal 2016 were $27.6 million, compared with $31.2 million in first quarter of fiscal 2016 and $29.6 million in the second quarter of fiscal 2015.
• GAAP net loss for the second quarter of fiscal 2016 was ($6.6) million, or ($0.16) per diluted share, compared with a GAAP net loss of ($10.8) million, or ($0.27) per diluted share, in the first quarter of fiscal 2016 and a GAAP net loss of ($2.7) million, or ($0.07) per diluted share, for the second quarter of fiscal 2015.
• Adjusted EBITDA for the second quarter of fiscal 2016 was a ($4.1) million loss after adjusting our GAAP net loss for the impact of stock-based compensation expense, depreciation, and amortization expense, reversals of accruals related to restructuring and deferred rent resulting from our lease termination, legal contingencies, interest income, other income (expense), net and provision (benefit) for income taxes, compared with a ($6.4) million loss in the first quarter of fiscal 2016 and a ($4.8) million loss in the second quarter of fiscal 2015.
• Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $110.3 million, and Telenav had no debt as of December 31, 2015. This represented cash, cash equivalents and short-term investments of $2.67 per share, based on 41.4 million shares of common stock outstanding as of December 31, 2015.

Business Outlook

For the third fiscal quarter ending March 31, 2016, Telenav offers the following guidance, which is predicated on management’s judgments. 

• Total revenue is expected to be $44 to $46 million;
• Automotive revenue is expected to be 73 to 75 percent of total revenue, including approximately $1.5 million of customized software revenue;
• Advertising revenue is expected to be 11 to 12 percent of total revenue; 
• Billings are expected to be $49 to $51 million;
• GAAP gross margin is expected to be approximately 45 percent;
• Non-GAAP gross margin is expected to be approximately 46 percent;
• GAAP operating expenses are expected to be $30 to $31 million;
• Non-GAAP operating expenses are expected to be $27 to $28 million, and represent operating expenses adjusted for the impact of approximately $3.0 million of stock-based compensation expense;
• Estimated provision (benefit) for income taxes will be de minimis;
• GAAP net loss is expected to be ($9.0) to ($10.0) million;
• Diluted GAAP net loss per share is expected to be ($0.21) to ($0.24);
• Non-GAAP net loss is expected to be ($6.0) to ($7.0) million, and represents GAAP net loss adjusted for the add back of approximately $3.0 million of stock-based compensation expense;
• Non-GAAP diluted net loss per share is expected to be ($0.14) to ($0.17);
• Adjusted EBITDA is expected to be ($6.0) to ($7.0) million, and represents GAAP net loss adjusted for the impact of approximately $3.0 million of stock-based compensation expense, and approximately $1.0 million of depreciation and amortization expense, interest income, other income (expense), and provision (benefit) from income taxes; and
• Weighted average diluted shares outstanding are expected to be approximately 42 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 888-438-5491 (toll-free, domestic only) or 719-457-2727 (domestic and international toll) and enter pass code 854675. 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, dial 888-203-1112 (toll-free, domestic only) or 719-457-0820 (domestic and international toll) and enter pass code 854675.

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, 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 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.

Billings measure revenue recognized plus the change in deferred revenue from the beginning to the end of the period. We consider billings to be a useful metric for management and investors because billings drive deferred revenue, which is an important indicator of the health and viability of our 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 connected solutions cannot be fully recognized as revenue in a given period due to requirements for ongoing provisioning of services such as hosting, monitoring and customer support. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. When we use these measures, we compensate for these limitations by providing specific information regarding revenue and evaluating billings together with revenue calculated in accordance with GAAP. We have also provided a breakdown of the calculation of the change in deferred revenue by segment, which is added to revenue in calculating our non-GAAP metric of billings. In connection with our presentation of the change in deferred revenue, we have provided a similar presentation of the change in the related deferred costs. Such 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. As deferred revenue and deferred costs become larger components of our operating results, we believe these metrics are useful in evaluating cash flow.

Non-GAAP net loss and non-GAAP gross margin exclude the impact of stock-based compensation expense, capitalized software and developed technology amortization expense, and other applicable items such as legal contingencies, changes in valuation allowance on certain deferred tax assets, restructuring accruals and reversals, and deferred rent reversals due to lease termination, 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 that we exclude from non-GAAP financial metrics.  Legal contingencies represent settlements and offers made to settle patent litigation cases in which we are defendants and royalty disputes. Deferred rent reversals represents the reversal of our deferred rent liability that is no longer required due to our facility lease termination.  Capitalized software amortization expense represents internal software costs that were capitalized and are charged to expense as the software is used in our operations.  Developed technology amortization expense relates to the amortization of acquired intangible assets. Our non-GAAP tax rate differs from the tax rate due to the elimination of any tax effect of stock-based compensation expense, capitalized software and developed technology amortization expense, legal contingencies, restructuring accruals and reversals, and other applicable items that are being eliminated to arrive at the non-GAAP net loss.

Adjusted EBITDA measures our GAAP net loss excluding the impact of stock-based compensation expense, depreciation, amortization, interest income, other income (expense), provision (benefit) for income taxes, and other applicable items such as legal contingencies, restructuring accruals and reversals, and deferred rent reversals due to lease termination. 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.

We determined that it would be meaningful to investors to develop a breakout of the operating results of the advertising business beyond the current GAAP segment reporting of revenue, cost of revenue and gross margin, and we are including such presentation in our non-GAAP reporting results.  This presentation reflects operating expenses that are directly attributable to the advertising business. We are unable to provide a similar breakout of operating results for the automotive and mobile navigation businesses beyond the current GAAP segment reporting of revenue, cost of revenue and gross margin because these segments share many of the same technologies and resources and as such, comprise operating expenses which are not fully attributable to either.   In addition, the reported non-GAAP operating results for the advertising business only include an allocation of certain shared corporate general and administrative costs that directly benefit the business, such as accounting and human resource services.

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. 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 ("GM") and Toyota and to support GM and Toyota and their customers; adoption by vehicle purchasers of Scout for Cars; Telenav's dependence on a limited number of automotive manufacturers and original equipment manufacturers ("OEM") for a substantial portion of its revenue; Telenav's ability to develop and implement products for Ford's Sync 3 system; 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 limited history in the automotive navigation market and the advertising market; the timing of new product releases and vehicle production by Telenav's automotive customers, including inventory procurement and fulfillment; Telenav’s ability to develop search products with Nuance; possible warranty claims, and the impact on consumer perception of its brand; 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; 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 macroeconomic and political conditions in the US and abroad, in particular China. We discuss these risks in greater detail in "Risk factors" and elsewhere in our Form 10-Q for the three months  ended September  30, 2015 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 transforming life on the go for people — before, during, and after every drive. Leveraging our location platform, global brands such as Ford, GM, Toyota, and AT&T deliver custom connected car and mobile experiences. Additionally, advertisers such as Nissan, Denny’s, Walmart, and Best Buy reach millions of users with our highly-targeted advertising platform. To learn more about how Telenav’s location platform powers personalized navigation, mapping, big data intelligence, social driving, and location-based ads, visit www.telenav.com. 

Copyright 2016 Telenav, Inc. All Rights Reserved.

"Telenav," "Scout," and the Telenav and Scout logos are registered 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

TNAV-C

	Telenav, Inc.
	Condensed Consolidated Balance Sheets
	(in thousands, except par value)
			December 31, 2015				June 30, 2015 *
	Assets		(unaudited)
	Current assets:
	Cash and cash equivalents		$	12,093			$	18,721
	Short-term investments			98,201				101,195
	Accounts receivable, net of allowances of $85 and $211, at
	December 31, 2015 and June 30, 2015, respectively			37,449				36,493
	Deferred income taxes, net			-				327
	Restricted cash			4,679				4,878
	Income taxes receivable			5,466				6,080
	Deferred costs			1,157				432
	Prepaid expenses and other current assets			4,095				3,856
	Total current assets			163,140				171,982
	Property and equipment, net			4,680				7,126
	Deferred income taxes, net, non-current			649				443
	Goodwill and intangible assets, net			36,513				37,528
	Deferred costs, non-current			6,286				2,709
	Other assets			2,741				4,134
	Total assets		$	214,009			$	223,922
	Liabilities and stockholders’ equity
	Current liabilities:
	Accounts payable		$	910			$	830
	Accrued compensation			8,105				9,628
	Accrued royalties			11,395				9,358
	Other accrued expenses			13,371				10,918
	Deferred revenue			3,109				2,109
	Income taxes payable			886				724
	Total current liabilities			37,776				33,567
	Deferred rent, non-current			81				4,858
	Deferred revenue, non-current			10,742				4,719
	Other long-term liabilities			2,696				4,595
	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;
	41,375 and 40,537 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively			41				41
	Additional paid-in capital			145,546				140,406
	Accumulated other comprehensive loss			(2,344	)			(1,540	)
	Retained earnings			19,471				37,276
	Total stockholders’ equity			162,714				176,183
	Total liabilities and stockholders’ equity		$	214,009			$	223,922
	* Derived from audited consolidated financial statements as of and for the year ended June 30, 2015
	.

 

	Telenav, Inc.
	Condensed Consolidated Statements of Operations
	(in thousands, except per share amounts)
			Three Months Ended December 31,								Six Months Ended December 31,
				2015				2014				2015				2014
			(unaudited)								(unaudited)
	Revenue:
	Product		$	31,160			$	23,461			$	62,269			$	42,377
	Services			14,093				16,319				27,045				32,390
	Total revenue			45,253				39,780				89,314				74,767
	Cost of revenue:
	Product			18,364				12,824				36,447				23,002
	Services			6,168				6,709				11,472				12,491
	Total cost of revenue			24,532				19,533				47,919				35,493
	Gross profit			20,721				20,247				41,395				39,274
	Operating expenses:
	Research and development			16,653				16,620				34,640				33,618
	Sales and marketing			6,524				6,710				13,522				12,906
	General and administrative			5,844				5,697				12,079				11,910
	Restructuring			(1,468	)			565				(1,468	)			565
	Total operating expenses			27,553				29,592				58,773				58,999
	Loss from operations			(6,832	)			(9,345	)			(17,378	)			(19,725	)
	Interest income			255				240				509				485
	Other income (expense), net			265				630				(176	)			1,688
	Loss before provision (benefit) for income taxes			(6,312	)			(8,475	)			(17,045	)			(17,552	)
	Provision (benefit) for income taxes			327				(5,752	)			440				(6,892	)
	Net loss		$	(6,639	)		$	(2,723	)		$	(17,485	)		$	(10,660	)
	Net loss per share
	Basic and diluted		$	(0.16	)		$	(0.07	)		$	(0.43	)		$	(0.27	)
	Weighted average shares used in computing net loss per share
	Basic and diluted			41,038				39,916				40,820				39,727

 

	Telenav, Inc.
	Condensed Consolidated Statements of Cash Flows
	(in thousands)
			Six Months Ended  December 31,
				2015				2014
			(unaudited)
	Operating activities
	Net loss		$	(17,485	)		$	(10,660	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Depreciation and amortization			1,916				2,876
	Amortization of net premium on short-term investments			381				850
	Stock-based compensation expense			6,267				5,927
	Write-off of long-term investments			477				-
	(Gain) loss on disposal of property and equipment			(4	)			8
	Bad debt expense			51				14
	Changes in operating assets and liabilities:
	Accounts receivable			(1,007	)			(5,524	)
	Deferred income taxes			121				673
	Restricted cash			199				898
	Income taxes receivable			614				(7,243	)
	Deferred costs			(4,302	)			(723	)
	Prepaid expenses and other current assets			(239	)			3,775
	Other assets			908				42
	Accounts payable			80				647
	Accrued compensation			(1,523	)			(3,956	)
	Accrued royalties			2,037				6,156
	Accrued expenses and other liabilities			(1,524	)			(953	)
	Income taxes payable			162				64
	Deferred rent			(814	)			(1,104	)
	Deferred revenue			7,023				2,807
	Net cash used in operating activities			(6,662	)			(5,426	)
	Investing activities
	Purchases of property and equipment			(332	)			(512	)
	Purchases of short-term investments			(20,622	)			(87,803	)
	Purchases of long-term investments			-				(200	)
	Proceeds from sales and maturities of short-term investments			23,009				95,611
	Net cash provided by investing activities			2,055				7,096
	Financing activities
	Proceeds from exercise of stock options			921				1,781
	Repurchase of common stock			(570	)			(1,139	)
	Tax withholdings related to net share settlements of restricted stock units			(1,796	)			(854	)
	Net cash used in financing activities			(1,445	)			(212	)
	Effect of exchange rate changes on cash and cash equivalents			(576	)			(1,005	)
	Net increase (decrease) in cash and cash equivalents			(6,628	)			453
	Cash and cash equivalents, at beginning of period			18,721				14,534
	Cash and cash equivalents, at end of period		$	12,093			$	14,987
	Supplemental disclosure of cash flow information
	Income taxes (received) paid, net		$	(528	)		$	97

 

	Telenav, Inc.
	Condensed Consolidated Segment Summary
	(in thousands, except percentages)
			Three Months Ended December 31,								Six Months Ended December 31,
				2015				2014				2015				2014
			(unaudited)								(unaudited)
	Revenue:
	Automotive		$	31,846			$	24,077			$	63,589			$	43,579
	Advertising			6,688				4,732				11,539				8,707
	Mobile Navigation			6,719				10,971				14,186				22,481
	Total revenue			45,253				39,780				89,314				74,767
	Cost of revenue:
	Automotive			18,931				13,240				37,452				23,636
	Advertising			3,755				3,298				6,750				5,838
	Mobile Navigation			1,846				2,995				3,717				6,019
	Total cost of revenue			24,532				19,533				47,919				35,493
	Gross profit:
	Automotive			12,915				10,837				26,137				19,943
	Advertising			2,933				1,434				4,789				2,869
	Mobile Navigation			4,873				7,976				10,469				16,462
	Total gross profit		$	20,721			$	20,247			$	41,395			$	39,274
	Gross margin:
	Automotive			41	%			45	%			41	%			46	%
	Advertising			44	%			30	%			42	%			33	%
	Mobile Navigation			73	%			73	%			74	%			73	%
	Total gross margin			46	%			51	%			46	%			53	%

 

	Telenav, Inc.
	Unaudited Reconciliation of Non-GAAP Adjustments
	(in thousands)
	Reconciliation of Revenue  to Billings (Non-GAAP)
			Three Months Ended December 31, 2015																Six Months Ended December 31, 2015
			Automotive				Advertising				Mobile Navigation				Total				Automotive				Advertising				Mobile Navigation				Total
	Revenue		$	31,846			$	6,688			$	6,719			$	45,253			$	63,589			$	11,539			$	14,186			$	89,314
	Adjustments:
	Change in deferred revenue			3,434				-				(252	)			3,182				7,251				-				(228	)			7,023
	Billings (Non-GAAP)		$	35,280			$	6,688			$	6,467			$	48,435			$	70,840			$	11,539			$	13,958			$	96,337
			Three Months Ended December 31, 2014																Six Months Ended December 31, 2014
			Automotive				Advertising				Mobile Navigation				Total				Automotive				Advertising				Mobile Navigation				Total
	Revenue		$	24,077			$	4,732			$	10,971			$	39,780			$	43,579			$	8,707			$	22,481			$	74,767
	Adjustments:
	Change in deferred revenue			3,331				-				(446	)			2,885				3,353				-				(546	)			2,807
	Billings (Non-GAAP)		$	27,408			$	4,732			$	10,525			$	42,665			$	46,932			$	8,707			$	21,935			$	77,574
	Reconciliation of Deferred Revenue to Increase (Decrease) in Deferred Revenue
	Reconciliation of Deferred Costs to Increase (Decrease) in Deferred Costs
			Three Months Ended December 31, 2015																Three Months Ended December 31, 2014
			Automotive				Advertising				Mobile Navigation				Total				Automotive				Advertising				Mobile Navigation				Total
	Deferred revenue, December 31		$	12,443			$	-			$	1,408			$	13,851			$	3,483			$	-			$	1,760			$	5,243
	Deferred revenue, September 30			9,009				-				1,660				10,669				152								2,206				2,358
	Increase (decrease) in deferred revenue		$	3,434			$	-			$	(252	)		$	3,182			$	3,331			$	-			$	(446	)		$	2,885
	Deferred costs, December 31		$	7,443			$	-			$	-			$	7,443			$	1,223			$	-			$	-			$	1,223
	Deferred costs, September 30			5,814				-				-				5,814				1,034				-				-				1,034
	Increase (decrease) in deferred costs		$	1,629			$	-			$	-			$	1,629			$	189			$	-			$	-			$	189
			Six Months Ended December 31, 2015																Six Months Ended December 31, 2014
			Automotive				Advertising				Mobile Navigation				Total				Automotive				Advertising				Mobile Navigation				Total
	Deferred revenue, December 31		$	12,443			$	-			$	1,408			$	13,851			$	3,483			$	-			$	1,760			$	5,243
	Deferred revenue, June 30			5,192				-				1,636				6,828				130				-				2,306				2,436
	Increase (decrease) in deferred revenue		$	7,251			$	-			$	(228	)		$	7,023			$	3,353			$	-			$	(546	)		$	2,807
	Deferred costs, December 31		$	7,443			$	-			$	-			$	7,443			$	1,223			$	-			$	-			$	1,223
	Deferred costs, June 30			3,141				-				-				3,141				500				-				-				500
	Increase (decrease) in deferred costs		$	4,302			$	-			$	-			$	4,302			$	723			$	-			$	-			$	723

 

	Telenav, Inc.
	Unaudited Reconciliation of Non-GAAP Adjustments
	(in thousands, except per share amounts and percentages)
	Reconciliation of GAAP Net Loss  to Non-GAAP Net Loss
			Three Months Ended December 31,								Six Months Ended December 31,
				2015				2014				2015				2014
	GAAP Net loss		$	(6,639	)		$	(2,723	)		$	(17,485	)		$	(10,660	)
	Adjustments:
	Legal contingencies			750				-				750				-
	Benefit for income taxes due to changes in tax accounting method and amended tax returns			-				(4,061	)			-				(4,061	)
	Restructuring accrual (reversal)			(1,468	)			565				(1,468	)			565
	Deferred rent reversal due to lease termination			(621	)			-				(621	)			-
	Capitalized software and developed technology amortization expense			307				867				1,015				1,770
	Stock-based compensation expense:
	Cost of revenue			39				27				71				51
	Research and development			1,771				1,125				3,229				2,625
	Sales and marketing			835				730				1,675				1,494
	General and administrative			535				657				1,292				1,757
	Total stock-based compensation expense			3,180				2,539				6,267				5,927
	Tax effect of adding back adjustments			-				(182	)			-				(407	)
	Non-GAAP net loss		$	(4,491	)		$	(2,995	)		$	(11,542	)		$	(6,866	)
	Non-GAAP net loss per share
	Basic and diluted		$	(0.11	)		$	(0.08	)		$	(0.28	)		$	(0.17	)
	Weighted average shares used in computing non-GAAP net loss per share
	Basic and diluted			41,038				39,916				40,820				39,727
	Telenav, Inc.
	Unaudited Reconciliation of Non-GAAP Adjustments
	(in thousands, except per share amounts and percentages)
	Reconciliation of GAAP Net Loss  to Adjusted EBITDA
			Three Months Ended December 31,								Six Months Ended December 31,
				2015				2014				2015				2014
	GAAP Net loss		$	(6,639	)		$	(2,723	)		$	(17,485	)		$	(10,660	)
	Adjustments:
	Legal contingencies			750				-				750				-
	Restructuring accrual (reversal)			(1,468	)			565				(1,468	)			565
	Deferred rent reversal due to lease termination			(621	)			-				(621	)			-
	Stock-based compensation expense			3,180				2,539				6,267				5,927
	Depreciation and amortization expense			847				1,399				1,916				2,876
	Interest income			(255	)			(240	)			(509	)			(485	)
	Other income (expense), net			(265	)			(630	)			176				(1,688	)
	Provision (benefit) for income taxes			327				(5,752	)			440				(6,892	)
	Adjusted EBITDA		$	(4,144	)		$	(4,842	)		$	(10,534	)		$	(10,357	)
	Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
			Three Months Ended December 31,								Six Months Ended December 31,
				2015				2014				2015				2014
	Operating expenses		$	27,553			$	29,592			$	58,773			$	58,999
	Adjustments:
	Legal contingencies			(750	)			-				(750	)			-
	Restructuring accrual (reversal)			1,468				(565	)			1,468				(565	)
	Deferred rent reversal due to lease termination			588				-				588				-
	Stock-based compensation expense			(3,141	)			(2,512	)			(6,196	)			(5,876	)
	Non-GAAP operating expenses		$	25,718			$	26,515			$	53,883			$	52,558

 

	Telenav, Inc.
	Unaudited Reconciliation of Non-GAAP Adjustments
	(in thousands, except percentages)
	Reconciliation of Gross Margin to Non-GAAP Gross Margin
			Automotive								Advertising									Mobile Navigation								Total
			Three Months Ended December 31,								Three Months Ended December 31,									Three Months Ended December 31,								Three Months Ended December 31,
				2015				2014				2015					2014				2015				2014				2015					2014
	Gross margin			41	%			45	%			44	%				30	%			73	%			73	%			46	%				51	%
	Adjustments:
	Capitalized software and developed technology amortization expense			0	%			1	%			1	%				9	%			1	%			1	%			1	%				2	%
	Non-GAAP gross margin			41	%			46	%			45	%				39	%			74	%			74	%			47	%				53	%
			Automotive								Advertising									Mobile Navigation								Total
			Six Months Ended December 31,								Six Months Ended December 31,									Six Months Ended December 31,								Six Months Ended December 31,
				2015				2014				2015					2014				2015				2014				2015					2014
	Gross margin			41	%			46	%			42	%				33	%			74	%			73	%			46	%				53	%
	Adjustments:
	Capitalized software and developed technology amortization expense			1	%			1	%			4	%				10	%			1	%			2	%			1	%				2	%
	Non-GAAP gross margin			42	%			47	%			46	%				43	%			75	%			75	%			47	%				55	%

 

	Telenav, Inc.
	Unaudited Reconciliation of Non-GAAP Adjustments
	(in thousands)
	Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments
		Three Months Ended December 31, 2015
			GAAP Consolidated				Non-GAAP Consolidated				Non-GAAP Advertising						Automotive (1)					Mobile Navigation (1)				Total Non-GAAP Automotive and Mobile Navigation (1)
	Revenue		$	45,253							$	6,688					$	31,846				$	6,719			$	38,565
	Cost of revenue			24,532								3,755						18,931					1,846				20,777
	Gross profit			20,721								2,933					$	12,915				$	4,873				17,788
	Operating expenses:
	Research and development			16,653								1,051				(2			)								15,602
	Sales and marketing			6,524								3,661				(2			)								2,863
	General and administrative			5,844								503				(3			)								5,341
	Restructuring			(1,468	)							(375	)														(1,093	)
	Total operating expenses			27,553								4,840															22,713
	Loss from operations			(6,832	)							(1,907	)														(4,925	)
	Interest income			255								-				(4			)								255
	Other income (expense), net			265								-				(4			)								265
	Loss before provision for income taxes			(6,312	)							(1,907	)														(4,405	)
	Provision for income taxes			327								-															327
	Net loss		$	(6,639	)		$	(6,639	)			(1,907	)														(4,732	)
	Adjustments:
	Legal contingencies							750				-															750
	Stock-based compensation expense							3,180				337															2,843
	Restructuring reversal							(1,468	)			(375	)														(1,093	)
	Deferred rent reversal due to lease termination							(621	)			(159	)														(462	)
	Depreciation and amortization expense							847				203															644
	Interest income							(255	)			-				(4			)								(255	)
	Other income (expense), net							(265	)			-				(4			)								(265	)
	Provision for income taxes							327				-															327
	Adjusted EBITDA						$	(4,144	)		$	(1,901	)													$	(2,243	)
		Three Months Ended December 31, 2014
			GAAP Consolidated				Non-GAAP Consolidated				Non-GAAP Advertising						Automotive (1)					Mobile Navigation (1)				Total Non-GAAP Automotive and Mobile Navigation (1)
	Revenue		$	39,780							$	4,732					$	24,077				$	10,971			$	35,048
	Cost of revenue			19,533								3,298						13,240					2,995				16,235
	Gross profit			20,247								1,434					$	10,837				$	7,976				18,813
	Operating expenses:
	Research and development			16,620								1,355				(2			)								15,265
	Sales and marketing			6,710								3,512				(2			)								3,198
	General and administrative			5,697								486				(3			)								5,211
	Restructuring			565								132															433
	Total operating expenses			29,592								5,485															24,107
	Loss from operations			(9,345	)							(4,051	)														(5,294	)
	Interest income			240								-				(4			)								240
	Other income (expense), net			630								-				(4			)								630
	Loss before benefit from income taxes			(8,475	)							(4,051	)														(4,424	)
	Benefit from income taxes			(5,752	)							(1,274	)														(4,478	)
	Net loss		$	(2,723	)		$	(2,723	)		$	(2,777	)													$	54
	Adjustments:
	Stock-based compensation expense							2,539				294															2,245
	Restructuring accrual							565				132															433
	Depreciation and amortization expense							1,399				594															805
	Interest income							(240	)			-				(4			)								(240	)
	Other income (expense), net							(630	)			-				(4			)								(630	)
	Benefit from income taxes							(5,752	)			(1,274	)														(4,478	)
	Adjusted EBITDA						$	(4,842	)		$	(3,031	)													$	(1,811	)
		Six Months Ended December 31, 2015
			GAAP Consolidated				Non-GAAP Consolidated				Non-GAAP Advertising						Automotive (1)					Mobile Navigation (1)				Total Non-GAAP Automotive and Mobile Navigation (1)
	Revenue		$	89,314							$	11,539					$	63,589				$	14,186			$	77,775
	Cost of revenue			47,919								6,750						37,452					3,717				41,169
	Gross profit			41,395								4,789					$	26,137				$	10,469				36,606
	Operating expenses:
	Research and development			34,640								2,530				(2			)								32,110
	Sales and marketing			13,522								7,491				(2			)								6,031
	General and administrative			12,079								1,044				(3			)								11,035
	Restructuring			(1,468	)							(375	)														(1,093	)
	Total operating expenses			58,773								10,690															48,083
	Loss from operations			(17,378	)							(5,901	)														(11,477	)
	Interest income			509								-				(4			)								509
	Other income (expense), net			(176	)							-				(4			)								(176	)
	Loss before provision for income taxes			(17,045	)							(5,901	)														(11,144	)
	Provision for income taxes			440								-															440
	Net loss		$	(17,485	)		$	(17,485	)		$	(5,901	)													$	(11,584	)
	Adjustments:
	Legal contingencies							750				-															750
	Stock-based compensation expense							6,267				659															5,608
	Restructuring reversal							(1,468	)			(375	)														(1,093	)
	Deferred rent reversal due to lease termination							(621	)			(159	)														(462	)
	Depreciation and amortization expense							1,916				656															1,260
	Interest income							(509	)			-				(4			)								(509	)
	Other income (expense), net							176				-				(4			)								176
	Provision for income taxes							440				-															440
	Adjusted EBITDA						$	(10,534	)		$	(5,120	)													$	(5,414	)
		Six Months Ended December 31, 2014
			GAAP Consolidated				Non-GAAP Consolidated				Non-GAAP Advertising						Automotive (1)					Mobile Navigation (1)				Total Non-GAAP Automotive and Mobile Navigation (1)
	Revenue		$	74,767							$	8,707					$	43,579				$	22,481			$	66,060
	Cost of revenue			35,493								5,838						23,636					6,019				29,655
	Gross profit			39,274								2,869					$	19,943				$	16,462				36,405
	Operating expenses:
	Research and development			33,618								2,930				(2			)								30,688
	Sales and marketing			12,906								6,525				(2			)								6,381
	General and administrative			11,910								1,093				(3			)								10,817
	Restructuring			565								132															433
	Total operating expenses			58,999								10,680															48,319
	Loss from operations			(19,725	)							(7,811	)														(11,914	)
	Interest income			485								-				(4			)								485
	Other income (expense), net			1,688								-				(4			)								1,688
	Loss before benefit from income taxes			(17,552	)							(7,811	)														(9,741	)
	Benefit from income taxes			(6,892	)							(1,784	)														(5,108	)
	Net loss		$	(10,660	)		$	(10,660	)		$	(6,027	)													$	(4,633	)
	Adjustments:
	Stock-based compensation expense							5,927				1,094															4,833
	Restructuring accrual							565				132															433
	Depreciation and amortization expense							2,876				1,044															1,832
	Interest income							(485	)			-				(4			)								(485	)
	Other income (expense), net							(1,688	)			-				(4			)								(1,688	)
	Benefit from income taxes							(6,892	)			(1,784	)														(5,108	)
	Adjusted EBITDA						$	(10,357	)		$	(5,541	)													$	(4,816	)
	(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to allocate the operating expenses, other income (expense), net and provision (benefit) for income taxes to these individual segments.
	For purposes of calculating the Non-GAAP net loss attributable to the advertising segment :
	(2) These expenses represent research and development and sales and marketing costs directly attributable to the advertising segment.
	(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared   corporate costs that directly benefit the advertising segment such as accounting and human resource services.
	(4) Expenses or income cannot be directly allocated to the advertising segment.

 

 

Media Contact:
Airfoil Group on Behalf of Telenav:
telenav@airfoilgroup.com

Investor Relations Contact:
Cynthia Hiponia or Erin Rheaume 
The Blueshirt Group for Telenav, Inc.
408-990-1265
IR@telenav.com

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