Autonavi reaches 137 million users of its mobile map app, but investors spooked by shrinking revenues; Operating income was “nil”

Autonavi reaches 137 million users of its mobile map app, but investors spooked by shrinking revenues

August 29, 2013

by Steven Millward

Autonavi (NASDAQ:AMAP), maker of China’s top mobile map app, has revealed its Q2 2013 financial report. The company – which is Apple’s partner in China, and is 28 percent owned by Alibaba – saw good growth in user numbers, but badly missed its guidance figures for revenue and earnings per share. Consequently, investors panicked during Wednesday trading, causing Autonavi shares to plunge 14.4 percent during the day, closing at $12.54 per share. In terms of user numbers, Autonavi grew to 137 million users of its free, market-leading mobile map app, of whom over 62 million are monthly active users. Those figures have doubled in the past year. Its premium mobile navigation app has been downloaded and pre-loaded on more than 70 million smartphones, but claims only three million monthly active users. Autonavi’s net revenues in the second quarter were $38.2 million, down slightly on the same period a year before. Operating income was “nil”. The numbers caused Autonavi to recant its previous guidance figures, leaving investors worried about the company’s long-term potential in the face of growing competition in the online maps sector, especially from search engine giant Baidu, whose Baidu Maps app is now a center-piece of its more aggressive mobile strategy.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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