Telenav, Inc. (NASDAQ: TNAV) has responded to an announcement made by General Motors (NYSE: GM), stating it has a strong relationship with the auto company, with a contract effective through model year 2025.
Telenav experienced a strong sell-off after General Motors announced a deal Thursday for the carmaker to feature Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) Google apps built directly into its vehicles’ touch-screen displays.
Some investors have viewed this as a direct threat to Telenav, which offers GPS navigation, search, infotainment and mobile advertising on its platforms, according to MarketWatch.
GM's announcement does not alter Telenav's contract with the Detroit automaker, Telenav said in a Thursday statement.
Telenav does not expect GM’s announcement to affect Telenav’s internal operating forecasts for fiscal years 2020 and 2021. Telenav notes that its guidance issued on August 8, 2019 remains unchanged. GM currently sells vehicles with two navigation solutions, of which Telenav’s solutions are part of the one that was launched in 2017."
The navigation company said it has been gaining market share within GM and increasing its revenue stream from the automaker, and expects the trend to continue up to model year 2022.
"Telenav’s agreement provides that GM can offer Telenav’s navigation solution in GM vehicles through model year 2025; however, the contract does not provide minimum volume or purchase requirements."
In a separate announcement Thursday, Telenav said it is working with Microsoft Corporation (NASDAQ: MSFT) to integrate Telenav’s connected car solutions suite with the Microsoft Connected Vehicle Platform, running on Microsoft Azure.
Telenav said it will be building connected cloud and in-vehicle services for automotive infotainment, in-car commerce and navigation.
Telenav shares were trading down 0.87% at $5.74 at the time of publication Friday. The stock plunged 45% Thursday before being halted from about 2:30 p.m. Thursday until 7:10 a.m. Friday. It has a 52-week high of $11.67 and 52-week low of $3.35.
Benzinga's Top Upgrades, Downgrades For September 6, 2019
86 Biggest Movers From Yesterday
See more from Benzinga
- General Motors Trades Higher On Q2 Earnings Beat
- David Einhorn's Q2 Letter To Greenlight Investors Shows New Stakes In Dillards, Chemours, Scientific Games
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.