TeleNav Q2 2012 Revenue Up 11%

Uncertainties remain about the future of Sprint contract

Last week teleNav announced 11 percent revenue increase for the second quarter of their fiscal 2012 (endind Dec. 31, 2011), beating analysts estimates. Revenue came at $53.2 million against $48 million in the second quarter of 2010.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense) for the second quarter of fiscal 2012 was $14.8 million and ending cash and investments totaled $187.9 million.

Total subscribers as of the end of the quarter increased to 30.5 million, up from 27.9 million in the prior quarter. Average monthly paid end users were 26.8 million in the second quarter of fiscal 2012, compared with 26.0 million in the prior sequential quarter and 19.6 million in the second fiscal quarter of 2011.

End users of freemium products exceeded 3.3 million at December 31, 2011, up from approximately 1.7 million at September 30, 2011. Freemium products are free basic navigation services that are monetized through paid upgrades to premium products, as well as through advertising.

Net income for the second quarter of fiscal 2012 was $10.2 million, or $0.23 per diluted share, which compares with net income of $10.0 million, or $0.22 per diluted share, for the second quarter of fiscal 2011. Net income for the second quarter of fiscal 2012 benefited from a favorable tax ruling that reduced quarterly tax expense by approximately $2.1 million.

Revenue from TeleNav’s “strategic growth areas,“ which include automotive, enterprise location-based services (LBS), mobile advertising and commerce and premium LBS, was $8.6 million, a 144 percent increase over the comparable quarter last year. Strategic growth areas represented 16 percent of total revenue in the period, up from 7 percent in the second quarter of fiscal 2011.

In terms of customers, Sprint represented 38 percent of TeleNav’s revenue in the quarter, and AT&T 39 percent. T-Mobile and US cellular together generated about 8% of the total revenue in the quarter.

Continued...