Telenav (TNAV) Stock Climbs On Multiple Updates

Telenav TNAV Stock News

Telenav Inc (NASDAQ: TNAV) is making a run for the top in the market this morning, and for good reason. The company announced quite a bit of news across two different press releases. The news all proved to be positive, sending TNAV stock up more than 15% early on in today’s session. Here’s what’s going on:

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TNAV Updates Investors About GM Deal

Telenav investors were spooked a bit due to an announcement made by GM this morning. GM said that it entered into an agreement with Google surrounding navigation. The concern is that navigation is the center of the agreement made between GM and TNAV.

In the release, the company said that it has a strong and ongoing relationship with GM. In particular, the two companies have an agreement that extends through model year 2025.

TNAV said in the release that the agreement with Google does not alter the agreement between GM and the company in any way. The company said that it does not expect for the relationship between GM and Google to affect its internal operating forecasts for fiscal years 2020 and 2021.

As of now, Telenav’s solutions are part of two GM vehicles that include navigation solutions. The company said that it continues to gain market share with GM and increase revenue from the big-brand customer. The company expects for this trend to continue up to model year 2022.

In a statement, GM Global Purchasing, Supply Chain and Communications Manager, Nick Richards, had the following to offer:

Telenav continues to provide significant infotainment solutions to General Motors and remains a valued partner.

The above statement was followed up by HP Jin, Chairman and CEO at TNAV. Here’s what he had to offer:

With Telenav’s model, where OEMs retain ownership of customer data and insights, and our revenue sharing model, we believe that Telenav is more aligned with OEMs’ long-term interests, making us a more sustainable partner than our competitors.

TNAV Works With MSFT

In a second press release issued after-hours yesterday, Telenav announced that it has partnered with Microsoft (MSFT). Under the partnership, the two are working to integrate Telenav’s intelligent connected-car solutions suite with the Microsoft Connected Vehicle Platform.

In the release, TNAV said that the Microsoft Connected Vehicle Platform combines cloud and edge services with a strong partner network to empower automotive companies to accelerate the development of their connected vehicle solutions. The partnership gives TNAV the ability to leverage vehicle data to deliver unique in-car and cloud-based services that enhance driving and mobility experiences.

In a statement, Hassan Wahla, co-president of the automotive business unit at TNAV, had the following to offer:

We are pleased to work with Microsoft in joining our respective leadership positions in infotainment, navigation and cloud computing to enable OEMs to offer a comprehensive suite of secure, connected-car services to end users. The ability of the Microsoft Connected Vehicle Platform to ingest and process a high volume of user and car sensor data will enable us to focus on delivering unique infotainment services, road and driver intelligence, in-car commerce, and navigation. The result is a unique solution with a small in-vehicle footprint that will make it easy for OEMs to integrate Telenav services into all their vehicle models.

Why The News Is Exciting Investors

The two stories released in after-hours yesterday were overwhelmingly positive. First and foremost, GM is a very important customer for Telenav. With GM partnering with Google, investors were concerned that the partnership would weigh on orders from GM as they look to Google’s solutions instead.

With the announcement that the agreement with Google in no way has an affect on GM’s work with TNAV, investors can breath easy, knowing that this important revenue stream is still in tact.

Furthermore, on the Microsoft side, several OEMs have already started working with the Microsoft Connected Vehicle Platform. Considering that TNAV and its solutions will be integrated into this platform, OEMs will find it easier to adopt the company’s products as a combined solution.

Telenav will also receive the benefit of Microsoft’s cooperation in marketing. That’s a big deal. After all, Microsoft didn’t become the giant that it is today without strong marketing strategies. The marketing guidance brought in by MSFT alone is a great thing for TNAV. This combined with integration into Microsoft’s platform could really expand the company’s revenue potential ahead.

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