TeleNav 2015 Annual Report Download - page 6

Table of Contents
PART I.
Overview
Telenav is a leading provider of location-based platform services. These services consist of our automotive and mobile navigation platform
and our advertising delivery platform. Our auto and mobile navigation platform allows Telenav to deliver enhanced location-based services to
auto manufacturers, developers and end users through various distribution channels, including wireless carriers. Our advertising delivery
platform delivers highly targeted advertising services leveraging our location expertise. We report operating results in three business segments:
automotive, advertising and mobile navigation.
For our automotive segment customers, we offer our auto and mobile navigation platform services to vehicle manufacturers and original
equipment manufacturers, or OEMs, for distribution with their vehicles. Our primary automotive customer to date, Ford Motor Company, or
Ford, currently distributes our embedded, or on-board, product as an optional feature with all of its models in the U.S. Our automotive products
are now included on models manufactured in the U.S., Canada, Mexico, Europe and China, as well as offered in models in South America,
Australia and New Zealand. In January 2014 we entered into an agreement with General Motors Corporation, or GM, for integration of our on-
board and connected navigation solutions in its vehicles, which we expect to launch in model year 2017. Our relationship with GM also includes
our mobile phone-based wireless connectivity, or brought-in, services for vehicles. In January 2015, GM launched the new version of its OnStar
RemoteLink® mobile application powered by our location-based services platform, which includes mapping and one-box search. In July 2015,
we and Toyota Motor Corporation, or Toyota, announced a partnership for brought-in navigation services where our Scout GPS Link will be
available first in the model year 2016 Toyota Tacoma, and subsequently in other Entune™ Audio Plus equipped model year 2016 Toyota
vehicles in the United States. We believe our history as a supplier of cloud-based navigation services provides a unique advantage in the
automotive navigation marketplace over our competitors.
For our advertising segment customers, we believe our advertising delivery platform offers significant audience reach, sophisticated
targeting capabilities and the ability to deliver interactive and engaging ad experiences to consumers on their mobile devices. We are experts in
location-based advertising and believe we offer unique value to brick-and-mortar and brand advertisers through our location targeting
capabilities. Our technology focuses on managing the complexity and scale associated with mobile location data to deliver better mobile
campaigns for our advertising partners. We deliver mobile advertisements by leveraging our proprietary in-house ad serving technology. Our
inventory, or accessible market, is comprised of thousands of mobile applications and mobile websites that are accessed through programmatic
real-time bidding, or RTB, tools.
We derive revenue from automobile manufacturers and OEMs, advertisers and advertising agencies, and wireless carriers. We receive
revenue from automobile manufacturers whose vehicles contain our proprietary software and are able to access our personalized navigation
services. These manufacturers have typically not provided us with any volume or revenue guarantees. In addition, we have a growing business in
mobile advertising where our customers are primarily advertising agencies, which represent national and regional brands, and channel partners,
which work closely with local and small business advertisers. We also derive revenue from our partnerships with wireless carriers, who pay us to
enable their subscribers to use our mobile navigation services. Some of these wireless carriers bill their subscribers on a monthly recurring basis
and the number of those monthly recurring subscribers to which we provide services continues to decline, resulting in substantial declines in our
revenue from wireless carriers.
We generate revenue from the delivery of customized software and royalties from the distribution of this customized software in
automotive navigation applications. For example, Ford utilizes our on-board automotive navigation product in its Ford SYNC platform. Our
automobile manufacturer and OEM customers pay us a royalty fee as the software is reproduced for installation in vehicles with our automotive
navigation solutions. In addition, we earn a one-time royalty for each new vehicle owner who downloads the GM OnStar RemoteLink®
application, whereby we provide enhanced search capabilities for contracted service periods.
We generate revenue from advertising network services through the delivery of search and display advertising impressions based on the
specific terms of the advertising contract.
We also generate revenue from subscriptions to our mobile navigation services. End users with subscriptions for our services are generally
billed for our services through their wireless carrier or through mobile application stores and
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ITEM 1. BUSINESS