Telenav®, Inc. (NASDAQ:TNAV), a leading provider of connected-car and location-based services, today released its financial results for the second fiscal quarter ended Dec. 31, 2020. In light of the previously announced proposed acquisition of Telenav by V99, Inc., Telenav will not host a conference call to discuss these financial results or provide outlook regarding future operating performance or conditions.
Financial Highlights for the Second Quarter Ended Dec. 31, 2020
- Total revenue for the second quarter of fiscal 2021 was $65.9 million, compared with $73.9 million in the second quarter of fiscal 2020.
- Services revenue for the second quarter of fiscal 2021 was $12.4 million, compared with $12.3 million in the second quarter of fiscal 2020.
- GAAP gross profit for the second quarter of fiscal 2021 was $27.7 million, compared with $40.2 million in the second quarter of fiscal 2020.
- Billings, a non-GAAP measure, for the second quarter of fiscal 2021 were $60.3 million, compared with $72.7 million in the second quarter of fiscal 2020.
- GAAP net loss for the second quarter of fiscal 2021 was $(0.1) million, compared with GAAP net income of $13.0 million for the second quarter of fiscal 2020.
- Adjusted EBITDA, a non-GAAP measure, for the second quarter of fiscal 2021 was $5.0 million, compared with $14.3 million for the second quarter of fiscal 2020.
- Ending cash, cash equivalents and short-term investments, excluding restricted cash, were $113.0 million as of Dec. 31, 2020. This represented cash, cash equivalents and short-term investments of $2.35 per share, based on 48 million shares of common stock outstanding as of Dec. 31, 2020. Telenav had no debt as of Dec. 31, 2020.
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, adjusted EBITDA, and free cash flow 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, may be 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.
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.
Billings equals GAAP revenue recognized plus the change in deferred revenue from the beginning to the end of the applicable period. In connection with its presentation of the change in deferred revenue, Telenav has provided a similar presentation of the change in the related deferred costs. Such deferred costs primarily include costs associated with third party content and certain development costs associated with its customized software solutions whereby customized engineering fees are earned. As the company enters into more hybrid and brought-in navigation programs, deferred revenue and deferred costs become larger components of its operating results, so Telenav believes these metrics are useful in evaluating cash flows.
Telenav considers billings to be a useful metric for management and investors because billings drive revenue and deferred revenue, which is an important indicator of its 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 brought-in solutions cannot be fully recognized as revenue in a given period due to requirements for ongoing map updates and provisioning of services such as hosting, monitoring, customer support and, for certain customers, additional period content and associated technology costs. Second, we may calculate billings in a…