Shares of Telenav (NASDAQ:TNAV) jumped 27.2% on Friday, following the release of its fiscal 2020 second-quarter results.
The provider of connected car and location-based services saw revenue soar 34% year over year to $67.3 million -- nearly 20% above Wall Street's forecast. The gains were driven by a 31% jump in product revenue, to $55.4 million, and a 54% surge in services revenue, to $12 million.
Telenav also delivered a surprise profit. Net income came in at $6.5 million, or $0.13 per share, compared with a loss of $4.6 million, or $0.10 per share, in the prior-year period. That, too, surpassed analysts' estimates, which had been for a loss of $0.09 per share.
Chairman and CEO HP Jin sees a massive opportunity ahead for Telenav's technology within the $500 billion connected car market. The company's connected car platform includes cloud-based services such as personalized navigation, dynamic road intelligence, and augmented reality-powered safety features, which are proving increasingly popular with drivers.
"The large backlog of approximately $1 billion from existing customer engagements provides a solid foundation for the mid-term financial performance," Jin said in a press release.