TeleNav 2011 Annual Report Download - page 51

Table of Contents
The following discussion and analysis should be read together with our consolidated financial statements and the notes to those statements
included elsewhere in this Form 10-K. This discussion contains forward-looking statements based on our current expectations, assumptions,
estimates and projections about TeleNav and our industry. These forward-looking statements involve risks and uncertainties. Our actual results
could differ materially from those indicated in these forward-looking statements as a result of certain factors, as more fully described in “Risk
factors
” in Item 1A of this Form 10-K, Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere
in this Form 10-K. We undertake no obligation to update publicly any forward-looking statements for any reason, even if new information
becomes available or other events occur in the future.
Overview
Our mission is to help people be more productive, be less stressed, and have more fun when they’
re on the go. Our personalized navigation
services “get you and get you there” and help on-the-go people make daily decisions about “where to go, how to get there, what to do, and even
when to go”—and we make it possible across mobile devices, mobile applications, wireless carriers, automobiles, and mobile enterprises, both
domestically and abroad. In the three months ended June 30, 2011, we had a monthly average of 24.6 million paying end users.
As a leading provider of personalized navigation and location based services, we are well-positioned to capitalize on growing market
opportunities to reach new customers and serve more people in more places with features such as location based search and voice-guided
navigation. By using the most integral tools of their daily lives, their mobile phones and vehicles, people can access our personalized navigation
and location based services almost anytime and anywhere to help them quickly decide where to go, how to get there, what to do, and even when
to go—in both personal and professional settings.
Consumers, wireless carriers, enterprises and automobile manufacturers and OEMs are our customers. We generate revenue from recurring
service subscriptions, software licenses, premium services and mobile advertising and commerce. End users through recurring subscriptions for
our services are generally billed for our services through their wireless carrier. Our wireless carrier customers pay us based on several different
revenue models, including (1) a monthly subscription fee per end user, (2) a fixed annual fee for any number of subscribers (up to specified
thresholds) receiving our services as part of bundles with other voice and data services, or (3) a revenue sharing arrangement that may include a
minimum fee per end user, or (4) based on usage or other basis. We also derive revenue from the delivery of customized software and royalties
from the distribution of this customized software in automotive navigation applications, as well as through premium services sold to consumers
and mobile advertising sold to advertisers and advertising agencies.
Through our hosted service delivery model, we provide our solutions to end users and customers through the networks of leading wireless
carriers in the United States, including AT&T, Sprint, T-Mobile and U.S. Cellular as well as through certain carriers in other countries. Our
flexible and proprietary platform enables us to efficiently reach and retain tens of millions of end users, across more than 600 types of mobile
phones, all major mobile phone operating systems and a broad range of wireless network protocols. This platform provides data and analytics to
create more personalized experiences for mobile applications, location based advertising and customer lifecycle management
In September 2010, we and our largest customer, Sprint, entered into an amendment to our agreement that results in us receiving a fixed
annual fee from Sprint for their bundled service subscribers’ use of our navigation services which is not dependent upon the number of
subscribers participating in those bundles until such time as a specified threshold is reached. This amendment affected our results of operations
when it became effective in September 2010; however, the full effect of this amendment is evident beginning with the three months ended
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ITEM 7.
MANAGEMENT
’
S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS