Telenav, Inc. revenue dropped on 37.4% and EBITDA Margin dropped on 54.0 pp from -26.3% to -80.4%
08/07/2018 • About Telenav, Inc. (
$TNAV) • By InTwits
Telenav, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Telenav, Inc. is a company in decline: FY2018 revenue growth was -37.4%, 5 years revenue CAGR was -11.2%
- The company operates at negative EBITDA Margin: -80.4%
- Telenav, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -28.9% for the sames years
- Telenav, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 7.4%
- CAPEX is quite volatile: $5m in FY2018, $1m in FY2017, $4m in FY2016, $1m in FY2015, $1m in FY2014
- The company has unprofitable business model: ROIC is -123.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.4x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Telenav, Inc.'s Revenue dropped on 37.4%. Revenue decline showed acceleration in FY18Q4 - it was 58.8% YoY. During FY2014-FY2018 Revenue growth topped in FY2016 at 14.4% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 1.1% to 2.5% in 2018.
Gross Margin decreased on 4.2 pp from 45.6% to 41.4% in FY2018. Gross Margin followed a declining trend at -4.2 pp per annum in the last 5 years. SG&A as a % of Revenue surged on 13.3 pp from 26.6% to 39.8% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue bottomed in FY2017 at 26.6%.
Net Income margin dropped on 56.1 pp from -27.9% to -83.9% in FY2018. During FY2014-FY2018 Net Income margin topped in FY2015 at -14.4% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.4% in FY2018. CAPEX/Revenue increased on 3.6 pp from 0.75% in FY2015 to 4.4% in FY2018. Average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at negative ROIC (-123.8%) and ROE (-124.5%). ROIC dropped on 87.7 pp from -36.1% to -124% in FY2018. ROE dropped on 88.4 pp from -36.1% to -124% in FY2018. ROIC followed a declining trend in the last 5 years. During the last 5 years ROE topped in FY2015 at -12.5% and was declining since that time.
Leverage (Debt)
The company has no debt. Cash dropped on 17.5%.
Management team
H P Jin is a the company's CEO. H P Jin is a founder and has spent 19 years with the company.
Financial and operational results
FY ended 06/30/2018
Telenav, Inc. ($TNAV) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 150.3 | 160.2 | 183.3 | 169.6 | 106.2 | -37.4% |
| Gross Profit | 89.5 | 81.5 | 82.5 | 77.2 | 44.0 | -43.1% |
| SG&A | 59.3 | 50.6 | 49.6 | 45.0 | 42.3 | -6.1% |
| EBITDA | -28.1 | -33.1 | -31.2 | -44.7 | -85.3 | |
| Net Income | -29.5 | -23.1 | -35.3 | -47.3 | -89.1 | |
Balance Sheet
|
|---|
| Cash | 14.5 | 18.7 | 21.3 | 20.8 | 17.1 | -17.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.1 | 1.2 | 4.0 | 1.2 | 4.6 | 279.4% |
Ratios
|
|---|
| Revenue growth | -21.6% | 6.6% | 14.4% | -7.5% | -37.4% | |
| EBITDA growth | -302.3% | 17.9% | -5.7% | 43.1% | 91.0% | |
|
|---|
| Gross Margin | 59.5% | 50.8% | 45.0% | 45.6% | 41.4% | -4.2% |
| EBITDA Margin | -18.7% | -20.7% | -17.0% | -26.3% | -80.4% | -54.0% |
| SG&A, % of revenue | 39.5% | 31.6% | 27.0% | 26.6% | 39.8% | 13.3% |
| Net Income Margin | -19.6% | -14.4% | -19.3% | -27.9% | -83.9% | -56.1% |
| CAPEX, % of revenue | 0.7% | 0.8% | 2.2% | 0.7% | 4.4% | 3.7% |
|
|---|
| ROIC | -17.1% | -20.7% | -21.2% | -36.1% | -123.8% | -87.7% |
| ROE | -14.5% | -12.5% | -21.7% | -36.1% | -124.5% | -88.4% |
Telenav, Inc. ($TNAV) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 57 | 39 | 46 | 17 | | 34.9% | -24.8% | 32.3% | -58.8% |
| EBITDA | -9 | -15 | -13 | -26 | | | | | |
| Net Income | -10 | -16 | -14 | -27 | | | | | |
Balance Sheet
|
|---|
| Cash | 17 | 14 | 18 | 17 | | 5.6% | -21.1% | -15.7% | -17.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 37.1% | 42.9% | 46.8% | 34.7% | | -7.3% | -1.8% | -2.8% | -9.5% |
| EBITDA Margin | -16.4% | -38.5% | -28.9% | -153.5% | | 5.8% | -17.4% | 6.9% | -124.3% |
| Net Income Margin | -18.2% | -40.1% | -31.2% | -160.1% | | 3.9% | -18.1% | 7.9% | -128.3% |
Peers in Application Software
Below you can find Telenav, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (150 companies) | 27.9% | 14.0% | 13.6% | 15.7% | 15.2% |
|---|
| Telenav, Inc. ($TNAV) | | 6.6% | 14.4% | -7.5% | -37.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (149 companies) | 63.4% | 61.9% | 64.2% | 64.6% | 66.0% |
|---|
| Telenav, Inc. ($TNAV) | 59.5% | 50.8% | 45.0% | 45.6% | 41.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (151 companies) | -10.1% | -9.4% | -4.7% | -3.3% | -3.1% |
|---|
| Telenav, Inc. ($TNAV) | -18.7% | -20.7% | -17.0% | -26.3% | -80.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (152 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| Telenav, Inc. ($TNAV) | 0.7% | 0.8% | 2.2% | 0.7% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (178 companies) | -14.2% | -11.2% | -9.2% | -10.2% | -9.1% |
|---|
| Telenav, Inc. ($TNAV) | -17.1% | -20.7% | -21.2% | -36.1% | -123.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (70 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.7x |
|---|
