2016 total revenue of $233.3 million grew 26%
year-over-year 2016 employer revenue of $140.5 million grew
48% year-over-year
Benefitfocus, Inc. (NASDAQ:BNFT), a leading provider of cloud-based
benefits management solutions, today announced its fourth quarter
and full year 2016 financial results.
“The fourth quarter capped a year of numerous
accomplishments for the Benefitfocus team,” said Shawn Jenkins,
Chief Executive Officer of Benefitfocus. “Driven by strong
demand for our platform, during 2016 total revenue grew 26%
year-over-year and we improved our profitability. In
addition, once again, our software revenue retention rate was over
95% for both the quarter and year.”
Jenkins added, “Our annualized revenue run rate
now exceeds $250 million, a threshold that when coupled with the
performance of our platform and our continued financial progress on
key profitability metrics, we believe reflects a business set to
accelerate the benefits of scale. As we look ahead to 2017, we
expect our enterprise class system performance and the increasing
financial benefits of operational scale to position Benefitfocus
exceptionally well for long-term growth.”
Fourth Quarter 2016 Financial
Highlights
Revenue
- Total revenue was $62.6 million, an increase of 15% compared to
the fourth quarter of 2015.
- Software services revenue was $52.5 million, an increase of 13%
compared to the fourth quarter of 2015.
- Professional services revenue was $10.2 million, an increase of
26% compared to the fourth quarter of 2015.
- Employer revenue was $36.7 million, an increase of 21% compared
to the fourth quarter of 2015.
- Insurance carrier revenue was $26.0 million, an increase of 8%
compared to the fourth quarter of 2015.
Net Loss
- GAAP net loss was ($7.1) million, compared to ($12.5) million
in the fourth quarter of 2015. GAAP net loss per share was ($0.24),
based on 30.0 million basic and diluted weighted average common
shares outstanding, compared to ($0.43) for the fourth quarter of
2015, based on 29.1 million basic and diluted weighted average
common shares outstanding.
Non-GAAP Net Loss and Adjusted
EBITDA
- Non-GAAP net loss was ($2.6) million, compared to ($9.5)
million in the fourth quarter of 2015. Non-GAAP net loss per share
was ($0.09), based on 30.0 million basic and diluted weighted
average common shares outstanding, compared to ($0.33) for the
fourth quarter of 2015, based on 29.1 million basic and diluted
weighted average common shares outstanding.
- Adjusted EBITDA was $2.9 million, compared to ($4.8) million in
the fourth quarter of 2015.
See important disclosures about non-GAAP
measures, and a reconciliation of them to GAAP, below.
Balance Sheet
- Cash, cash equivalents and marketable securities at December
31, 2016 totaled $58.9 million, compared to $55.3 million at the
end of the third quarter of 2016.
Full Year 2016 Financial
Highlights
Revenue
- Total revenue was $233.3 million, an increase of 26% compared
to the full year 2015.
- Software services revenue was $201.8 million, an increase of
25% compared to the full year 2015.
- Professional services revenue was $31.5 million, an increase of
33% compared to the full year 2015.
- Employer revenue was $140.5 million, an increase of 48%
compared to the full year 2015.
- Insurance carrier revenue was $92.8 million, an increase of 3%
compared to the full year 2015.
Net Loss
- GAAP net loss was ($40.1) million, compared to ($62.1) million
in 2015. GAAP net loss per share was ($1.35), based on 29.6 million
basic and diluted weighted average common shares outstanding,
compared to ($2.19) in 2015, based on 28.3 million basic and
diluted weighted average common shares outstanding.
Non-GAAP Net Loss and Adjusted
EBITDA
- Non-GAAP net loss was ($21.7) million, compared to ($50.8)
million in 2015. Non-GAAP net loss per share was ($0.73), based on
29.6 million basic and diluted weighted average common shares
outstanding, compared to ($1.79) in 2015, based on 28.3 million
basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA was ($1.1) million, compared to ($32.2) million
in 2015.
See important disclosures about non-GAAP
measures, and a reconciliation of them to GAAP, below.
Fourth Quarter and Recent Business
Highlights
- We ended the quarter with 833 large employer customers, up from
723 at the end of the year-ago period and 827 at the end of the
third quarter of 2016.
- ACORD, the global data standards-setting body for the insurance
industry, accepted an enrollment XML asset and specifications from
Benefitfocus to provide standard file format for life and ancillary
insurance carriers.
- We announced our Winter Software Release, which includes
enhanced reporting and data insight features that help increase
employee engagement, improve productivity and reduce costs to
enable HR leaders to more effectively manage benefits.
- We published our second annual “State of Employee Benefits”
research report, a snapshot of real, but anonymous benefit election
data from employees across more than 500 large employers on our
Platform.
- Deloitte recognized us as a member of the Technology Fast 500,
a ranking of the 500 fastest growing technology, media,
telecommunications, life sciences and energy tech companies in
North America.
- The Brandon Hall Group gave us its silver award for excellence
in the Best Advance in Compensation and Benefits category.
Business Outlook
Based on information available as of February
23, 2017, Benefitfocus is providing guidance for the first quarter
and full year 2017 as indicated below.
First Quarter 2017:
- Total revenue is expected to be in the range of $62.5 million
to $63.5 million.
- Non-GAAP net loss is expected to be in the range of ($4.5)
million to ($3.5) million, or ($0.15) to ($0.11) per share, based
on 30.6 million basic and diluted weighted average common shares
outstanding.
- Adjusted EBITDA is expected to be in the range of $2.0 million
to $3.0 million.
Full Year 2017:
- Total revenue is expected to be in the range of $263.5 million
to $268.5 million.
- Non-GAAP net loss is expected to be in the range of ($11.5)
million to ($7.5) million, or ($0.37) to ($0.24) per share, based
on 30.9 million basic and diluted weighted average common shares
outstanding.
- Adjusted EBITDA is expected to be in the range of $13.0 million
to $17.0 million.
See important disclosures about non-GAAP
measures, and a reconciliation of them to GAAP, below.
Conference Call Details:
In conjunction with this announcement,
Benefitfocus will host a conference call today, February 23, 2017,
at 5:00 p.m. Eastern Time to discuss the company’s financial
results. To access this call, dial (877) 407-9039 (domestic) or
(201) 689-8470 (international). A live webcast, as well as the
replay, of the conference call will be available on the Investor
Relations page of the company’s website at
http://investor.benefitfocus.com/. A replay of this conference call
can also be accessed by dialing (844) 512-2921 (domestic) or (412)
317-6671 (international) with replay passcode 13653318 through
March 2, 2017.
About Benefitfocus
Benefitfocus (NASDAQ:BNFT) provides a leading
cloud-based benefits management platform that simplifies how
organizations and individuals shop for, enroll in, manage and
exchange benefits. Every day leading employers, insurance companies
and millions of consumers rely on our platform to manage, scale and
exchange benefits data seamlessly. In an increasingly complex
benefits landscape, we bring order to chaos so our clients and
their employees have access to better information, make better
decisions and lead better lives. Learn more at
www.benefitfocus.com, LinkedIn and Twitter.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial
measures in this release and the accompanying tables, including
non-GAAP gross profit, operating loss, net loss, net loss per
common share and adjusted EBITDA. Generally, a non-GAAP financial
measure is a numerical measure of a company’s performance or
financial position that either excludes or includes amounts that
are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with
GAAP.
Non-GAAP gross profit, operating loss, net loss
and net loss per share exclude stock-based compensation expenses
and amortization of acquisition-related intangible assets and
offering costs expensed, if any. We define adjusted EBITDA as
net loss before net interest, taxes, and depreciation and
amortization expense, adjusted to eliminate stock-based
compensation expense and expense related to the impairment of
goodwill and intangible assets. Please note that other companies
might define their non-GAAP financial measures differently than we
do.
Management presents these non-GAAP financial
measures in this release because it considers them to be important
supplemental measures of performance. Management uses these
non-GAAP financial measures for planning purposes, including
analysis of the company's performance against prior periods, the
preparation of operating budgets and determination of appropriate
levels of operating and capital investments. Management believes
that these non-GAAP financial measures provide additional insight
for analysts and investors in evaluating the company's financial
and operational performance. Management also intends to provide
these non-GAAP financial measures as part of the company’s future
earnings discussions and, therefore, their inclusion should provide
consistency in the company’s financial reporting.
Non-GAAP financial measures have limitations as
an analytical tool. Investors are encouraged to review the
reconciliation of the non-GAAP measures to their most directly
comparable GAAP measures provided in this release, including in the
accompanying tables.
Safe Harbor Statement
Except for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. Actual results might differ
materially from those explicit or implicit in the forward-looking
statements. Important factors that could cause actual results to
differ materially include: our continuing losses and need to
achieve profitability; fluctuations in our financial results;
general economic risks; risks related to changing healthcare
and other applicable regulations; our ability to maintain our
culture and recruit and retain qualified personnel; the immature
and volatile market for our products and services; the need to
innovate and provide useful products and services; our ability to
compete effectively; privacy, security and other risks associated
with our business; and the other risk factors set forth from time
to time in our SEC filings, copies of which are available
free of charge within the Investor Relations section of the
Benefitfocus website at http://investor.benefitfocus.com/sec.cfm or
upon request from our Investor Relations Department. Benefitfocus
assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
Benefitfocus, Inc. |
|
Consolidated Statements of Operations and
Comprehensive Loss |
|
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenue |
|
$ |
62,647 |
|
|
$ |
54,340 |
|
|
$ |
233,335 |
|
|
$ |
185,143 |
|
Cost of revenue
(1)(2) |
|
|
32,522 |
|
|
|
30,483 |
|
|
|
120,681 |
|
|
|
102,851 |
|
Gross profit |
|
|
30,125 |
|
|
|
23,857 |
|
|
|
112,654 |
|
|
|
82,292 |
|
Operating
expenses:(1)(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
13,546 |
|
|
|
13,092 |
|
|
|
55,488 |
|
|
|
58,589 |
|
Research
and development |
|
|
13,308 |
|
|
|
14,244 |
|
|
|
56,584 |
|
|
|
52,250 |
|
General
and administrative |
|
|
8,335 |
|
|
|
7,146 |
|
|
|
32,750 |
|
|
|
25,727 |
|
Total
operating expenses |
|
|
35,189 |
|
|
|
34,482 |
|
|
|
144,822 |
|
|
|
136,566 |
|
Loss from
operations |
|
|
(5,064 |
) |
|
|
(10,625 |
) |
|
|
(32,168 |
) |
|
|
(54,274 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
21 |
|
|
|
58 |
|
|
|
138 |
|
|
|
188 |
|
Interest
expense on building lease financing obligations |
|
|
(1,696 |
) |
|
|
(1,721 |
) |
|
|
(6,826 |
) |
|
|
(7,092 |
) |
Interest
expense on other borrowings |
|
|
(404 |
) |
|
|
(192 |
) |
|
|
(1,095 |
) |
|
|
(877 |
) |
Other
expense |
|
|
46 |
|
|
|
(7 |
) |
|
|
(90 |
) |
|
|
(4 |
) |
Total
other expense, net |
|
|
(2,033 |
) |
|
|
(1,862 |
) |
|
|
(7,873 |
) |
|
|
(7,785 |
) |
Loss before income
taxes |
|
|
(7,097 |
) |
|
|
(12,487 |
) |
|
|
(40,041 |
) |
|
|
(62,059 |
) |
Income tax expense |
|
|
2 |
|
|
|
– |
|
|
|
17 |
|
|
|
25 |
|
Net loss |
|
$ |
(7,099 |
) |
|
$ |
(12,487 |
) |
|
$ |
(40,058 |
) |
|
$ |
(62,084 |
) |
Comprehensive loss |
|
$ |
(7,099 |
) |
|
$ |
(12,487 |
) |
|
$ |
(40,058 |
) |
|
$ |
(62,084 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.24 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.35 |
) |
|
$ |
(2.19 |
) |
Weighted-average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
30,030,164 |
|
|
|
29,120,171 |
|
|
|
29,589,857 |
|
|
|
28,344,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
726 |
|
|
$ |
729 |
|
|
$ |
2,798 |
|
|
$ |
1,950 |
|
Sales and
marketing |
|
|
857 |
|
|
|
1,115 |
|
|
|
3,213 |
|
|
|
2,861 |
|
Research
and development |
|
|
994 |
|
|
|
647 |
|
|
|
4,532 |
|
|
|
2,399 |
|
General
and administrative |
|
|
1,901 |
|
|
|
332 |
|
|
|
7,545 |
|
|
|
3,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Amortization of
acquired intangible assets included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
36 |
|
|
$ |
49 |
|
|
$ |
147 |
|
|
$ |
218 |
|
Sales and
marketing |
|
|
12 |
|
|
|
6 |
|
|
|
42 |
|
|
|
25 |
|
Research
and development |
|
|
13 |
|
|
|
8 |
|
|
|
54 |
|
|
|
35 |
|
General
and administrative |
|
|
2 |
|
|
|
2 |
|
|
|
14 |
|
|
|
8 |
|
Benefitfocus, Inc. |
Consolidated Balance Sheets |
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
2016 |
|
|
2015 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
56,853 |
|
|
$ |
48,074 |
|
|
Marketable securities |
|
|
2,007 |
|
|
|
40,448 |
|
|
Accounts
receivable, net |
|
|
28,340 |
|
|
|
27,616 |
|
|
Accounts
receivable, related party, net |
|
|
4,626 |
|
|
|
2,082 |
|
|
Prepaid
expenses and other current assets |
|
|
4,449 |
|
|
|
5,725 |
|
|
Total
current assets |
|
|
96,275 |
|
|
|
123,945 |
|
|
Property and equipment,
net |
|
|
80,518 |
|
|
|
55,037 |
|
|
Intangible assets,
net |
|
|
408 |
|
|
|
665 |
|
|
Goodwill |
|
|
1,634 |
|
|
|
1,634 |
|
|
Other non-current
assets |
|
|
1,575 |
|
|
|
838 |
|
|
Total
assets |
|
$ |
180,410 |
|
|
$ |
182,119 |
|
|
Liabilities and
stockholders' deficit |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
5,829 |
|
|
$ |
7,953 |
|
|
Accrued
expenses |
|
|
10,867 |
|
|
|
10,449 |
|
|
Accrued
compensation and benefits |
|
|
17,347 |
|
|
|
20,684 |
|
|
Deferred
revenue, current portion |
|
|
35,426 |
|
|
|
37,858 |
|
|
Revolving
line of credit, current portion |
|
|
20,000 |
|
|
|
25,000 |
|
|
Financing
and capital lease obligations, current portion |
|
|
2,604 |
|
|
|
3,648 |
|
|
Total
current liabilities |
|
|
92,073 |
|
|
|
105,592 |
|
|
Deferred revenue, net
of current portion |
|
|
40,412 |
|
|
|
55,671 |
|
|
Revolving line of
credit, net of current portion |
|
|
20,246 |
|
|
|
5,246 |
|
|
Financing and capital
lease obligations, net of current portion |
|
|
57,934 |
|
|
|
31,183 |
|
|
Other non-current
liabilities |
|
|
3,056 |
|
|
|
2,436 |
|
|
Total
liabilities |
|
|
213,721 |
|
|
|
200,128 |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
|
|
|
|
|
|
Preferred
stock, par value $0.001, 5,000,000 shares authorized, no shares
issues and outstanding at December 31, 2016 and 2015 |
|
|
- |
|
|
|
- |
|
|
Common
stock, par value $0.001, 50,000,000 shares authorized, 30,429,014
and 29,194,332 shares issued and outstanding at December 31, 2016
and 2015, respectively |
|
|
30 |
|
|
|
29 |
|
|
Additional paid-in capital |
|
|
335,059 |
|
|
|
310,304 |
|
|
Accumulated deficit |
|
|
(368,400 |
) |
|
|
(328,342 |
) |
|
Total
stockholders' deficit |
|
|
(33,311 |
) |
|
|
(18,009 |
) |
|
Total liabilities and stockholders' deficit |
|
$ |
180,410 |
|
|
$ |
182,119 |
|
|
Benefitfocus, Inc. |
|
Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2014 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(40,058 |
) |
|
$ |
(62,084 |
) |
|
$ |
(63,179 |
) |
Adjustments to reconcile net loss to net cash and cash equivalents
(used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
13,073 |
|
|
|
11,664 |
|
|
|
9,493 |
|
Stock-based compensation expense |
|
|
18,088 |
|
|
|
10,454 |
|
|
|
5,588 |
|
Change in
fair value and accretion of warrant |
|
|
– |
|
|
|
– |
|
|
|
744 |
|
Interest
accrual on financing obligation |
|
|
6,827 |
|
|
|
7,092 |
|
|
|
3,624 |
|
Provision
for doubtful accounts |
|
|
667 |
|
|
|
22 |
|
|
|
– |
|
Loss on
disposal or impairment of property and equipment |
|
|
141 |
|
|
|
18 |
|
|
|
25 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(3,936 |
) |
|
|
(7,800 |
) |
|
|
2,357 |
|
Accrued interest on short-term investments |
|
|
220 |
|
|
|
205 |
|
|
|
162 |
|
Prepaid expenses and other current assets |
|
|
1,626 |
|
|
|
(1,328 |
) |
|
|
833 |
|
Other non-current assets |
|
|
339 |
|
|
|
1,380 |
|
|
|
824 |
|
Accounts payable |
|
|
(1,849 |
) |
|
|
3,418 |
|
|
|
(199 |
) |
Accrued expenses |
|
|
990 |
|
|
|
2,961 |
|
|
|
2,469 |
|
Accrued compensation and benefits |
|
|
(3,337 |
) |
|
|
3,310 |
|
|
|
3,192 |
|
Deferred revenue |
|
|
(17,690 |
) |
|
|
(1,189 |
) |
|
|
14,288 |
|
Other non-current liabilities |
|
|
2,073 |
|
|
|
332 |
|
|
|
901 |
|
Net cash and cash
equivalents used in operating activities |
|
|
(22,826 |
) |
|
|
(31,545 |
) |
|
|
(18,878 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of short-term investments held to maturity |
|
|
(2,004 |
) |
|
|
(68,185 |
) |
|
|
(12,959 |
) |
Proceeds
from short-term investments held to maturity |
|
|
40,225 |
|
|
|
32,667 |
|
|
|
20,830 |
|
Purchases
of property and equipment |
|
|
(12,705 |
) |
|
|
(14,727 |
) |
|
|
(9,824 |
) |
Net cash and cash
equivalents provided by (used in) investing activities |
|
|
25,516 |
|
|
|
(50,245 |
) |
|
|
(1,953 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Draws on
revolving line of credit |
|
|
84,000 |
|
|
|
57,492 |
|
|
|
14,000 |
|
Payments
on revolving line of credit |
|
|
(74,000 |
) |
|
|
(44,903 |
) |
|
|
(2,100 |
) |
Proceeds
from exercises of stock options |
|
|
6,870 |
|
|
|
4,229 |
|
|
|
2,817 |
|
Proceeds
from issuance of common stock and warrant, net of issuance
costs |
|
|
– |
|
|
|
74,538 |
|
|
|
– |
|
Payments
of deferred financing costs and debt issuance costs |
|
|
(379 |
) |
|
|
(566 |
) |
|
|
– |
|
Remittance of taxes upon vesting of restricted stock units |
|
|
(202 |
) |
|
|
(2,116 |
) |
|
|
(226 |
) |
Payments
on financing and capital lease obligations |
|
|
(10,200 |
) |
|
|
(9,884 |
) |
|
|
(8,231 |
) |
Net cash and cash
equivalents provided by financing activities |
|
|
6,089 |
|
|
|
78,790 |
|
|
|
6,260 |
|
Net increase
(decrease) in cash and cash equivalents |
|
|
8,779 |
|
|
|
(3,000 |
) |
|
|
(14,571 |
) |
Cash and cash
equivalents, beginning of year |
|
|
48,074 |
|
|
|
51,074 |
|
|
|
65,645 |
|
Cash and cash
equivalents, end of year |
|
$ |
56,853 |
|
|
$ |
48,074 |
|
|
$ |
51,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Property
and equipment purchases in accounts payable and accrued
expenses |
|
$ |
699 |
|
|
$ |
1,489 |
|
|
$ |
4,226 |
|
Property
and equipment purchased with financing and capital lease
obligations |
|
$ |
28,032 |
|
|
$ |
914 |
|
|
$ |
21,739 |
|
Post
contract support purchased with financing obligations |
|
$ |
1,048 |
|
|
$ |
272 |
|
|
$ |
754 |
|
Allocation of proceeds to deferred revenue from issuance of common
stock based on relative selling price |
|
$ |
- |
|
|
$ |
207 |
|
|
$ |
- |
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes paid |
|
$ |
7 |
|
|
$ |
18 |
|
|
$ |
38 |
|
Interest
paid |
|
$ |
6,655 |
|
|
$ |
6,525 |
|
|
$ |
2,449 |
|
Benefitfocus, Inc. |
|
Reconciliation of GAAP to Non-GAAP
Measures |
|
(unaudited, dollars in thousands except share and per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember
31, |
|
|
Year EndedDecember
31, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Reconciliation
from Gross Profit to Non-GAAP Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
30,125 |
|
|
$ |
23,857 |
|
|
$ |
112,654 |
|
|
$ |
82,292 |
|
Amortization of acquired intangible assets |
|
|
36 |
|
|
|
49 |
|
|
|
147 |
|
|
|
218 |
|
Stock-based compensation expense |
|
|
726 |
|
|
|
729 |
|
|
|
2,798 |
|
|
|
1,950 |
|
Total net
adjustments |
|
|
762 |
|
|
|
778 |
|
|
|
2,945 |
|
|
|
2,168 |
|
Non-GAAP
gross profit |
|
$ |
30,887 |
|
|
$ |
24,635 |
|
|
$ |
115,599 |
|
|
$ |
84,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Operating Loss to Non-GAAP Operating Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
$ |
(5,064 |
) |
|
$ |
(10,625 |
) |
|
$ |
(32,168 |
) |
|
$ |
(54,274 |
) |
Amortization of acquired intangible assets |
|
|
63 |
|
|
|
65 |
|
|
|
257 |
|
|
|
286 |
|
Stock-based compensation expense |
|
|
4,478 |
|
|
|
2,823 |
|
|
|
18,088 |
|
|
|
10,454 |
|
Offering
costs expensed |
|
|
— |
|
|
|
77 |
|
|
|
— |
|
|
|
560 |
|
Total net
adjustments |
|
|
4,541 |
|
|
|
2,965 |
|
|
|
18,345 |
|
|
|
11,300 |
|
Non-GAAP
operating loss |
|
$ |
(523 |
) |
|
$ |
(7,660 |
) |
|
$ |
(13,823 |
) |
|
$ |
(42,974 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Net Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(7,099 |
) |
|
$ |
(12,487 |
) |
|
$ |
(40,058 |
) |
|
$ |
(62,084 |
) |
Depreciation |
|
|
2,615 |
|
|
|
2,311 |
|
|
|
9,959 |
|
|
|
8,791 |
|
Amortization of software development costs |
|
|
776 |
|
|
|
602 |
|
|
|
2,857 |
|
|
|
2,587 |
|
Amortization of acquired intangible assets |
|
|
63 |
|
|
|
65 |
|
|
|
257 |
|
|
|
286 |
|
Interest
income |
|
|
(21 |
) |
|
|
(58 |
) |
|
|
(138 |
) |
|
|
(188 |
) |
Interest
expense on building lease financing obligations |
|
|
1,696 |
|
|
|
1,721 |
|
|
|
6,826 |
|
|
|
7,092 |
|
Interest
expense on other borrowings |
|
|
404 |
|
|
|
192 |
|
|
|
1,095 |
|
|
|
877 |
|
Income
tax expense |
|
|
2 |
|
|
|
— |
|
|
|
17 |
|
|
|
25 |
|
Stock-based compensation expense |
|
|
4,478 |
|
|
|
2,823 |
|
|
|
18,088 |
|
|
|
10,454 |
|
Total net
adjustments |
|
|
10,013 |
|
|
|
7,656 |
|
|
|
38,961 |
|
|
|
29,924 |
|
Adjusted
EBITDA |
|
$ |
2,914 |
|
|
$ |
(4,831 |
) |
|
$ |
(1,097 |
) |
|
$ |
(32,160 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Net Loss to Non-GAAP Net Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,099 |
) |
|
$ |
(12,487 |
) |
|
$ |
(40,058 |
) |
|
$ |
(62,084 |
) |
Amortization of acquired intangible assets |
|
|
63 |
|
|
|
65 |
|
|
|
257 |
|
|
|
286 |
|
Stock-based compensation expense |
|
|
4,478 |
|
|
|
2,823 |
|
|
|
18,088 |
|
|
|
10,454 |
|
Offering
costs expensed |
|
|
— |
|
|
|
77 |
|
|
|
— |
|
|
|
560 |
|
Total net
adjustments |
|
|
4,541 |
|
|
|
2,965 |
|
|
|
18,345 |
|
|
|
11,300 |
|
Non-GAAP
net loss |
|
$ |
(2,558 |
) |
|
$ |
(9,522 |
) |
|
$ |
(21,713 |
) |
|
$ |
(50,784 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net loss |
|
$ |
(2,558 |
) |
|
$ |
(9,522 |
) |
|
$ |
(21,713 |
) |
|
$ |
(50,784 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic and diluted |
|
|
30,030,164 |
|
|
|
29,120,171 |
|
|
|
29,589,857 |
|
|
|
28,344,680 |
|
Shares
used in computing non-GAAP net loss per share - basic and
diluted |
|
|
30,030,164 |
|
|
|
29,120,171 |
|
|
|
29,589,857 |
|
|
|
28,344,680 |
|
Non-GAAP
net loss per common share - basic and diluted |
|
$ |
(0.09 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.73 |
) |
|
$ |
(1.79 |
) |
Benefitfocus, Inc. |
|
Unaudited Reconciliation of GAAP to Non-GAAP
Guidance Ranges |
|
(in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2017 |
|
|
Full Year 2017 |
|
|
Range |
|
|
Range |
|
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
Reconciliation
from Net Loss Guidance to Adjusted EBITDA Guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
- Guidance range |
$ |
(9.1 |
) |
|
$ |
(8.1 |
) |
|
$ |
(31.7 |
) |
|
$ |
(27.7 |
) |
Depreciation and amortization |
|
4.0 |
|
|
|
4.0 |
|
|
|
14.9 |
|
|
|
14.9 |
|
Interest
income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest
expense |
|
2.6 |
|
|
|
2.6 |
|
|
|
10.0 |
|
|
|
10.0 |
|
Income
tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
4.5 |
|
|
|
4.5 |
|
|
|
19.8 |
|
|
|
19.8 |
|
Total net
adjustments |
|
11.1 |
|
|
|
11.1 |
|
|
|
44.7 |
|
|
|
44.7 |
|
Adjusted
EBITDA - Guidance range |
$ |
2.0 |
|
|
$ |
3.0 |
|
|
$ |
13.0 |
|
|
$ |
17.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Net Loss Guidance to Non-GAAP Net Loss Guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss - Guidance
range |
$ |
(9.1 |
) |
|
$ |
(8.1 |
) |
|
$ |
(31.7 |
) |
|
$ |
(27.7 |
) |
Amortization of acquired intangible assets |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.4 |
|
Stock-based compensation expense |
|
4.5 |
|
|
|
4.5 |
|
|
|
19.8 |
|
|
|
19.8 |
|
Total net
adjustments |
|
4.6 |
|
|
|
4.6 |
|
|
|
20.2 |
|
|
|
20.2 |
|
Non-GAAP
net loss - Guidance range |
$ |
(4.5 |
) |
|
$ |
(3.5 |
) |
|
$ |
(11.5 |
) |
|
$ |
(7.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share Guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net loss - Guidance range |
$ |
(4.5 |
) |
|
$ |
(3.5 |
) |
|
$ |
(11.5 |
) |
|
$ |
(7.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic and diluted |
|
30.6 |
|
|
|
30.6 |
|
|
|
30.9 |
|
|
|
30.9 |
|
Shares
used in computing non-GAAP net loss per share - basic and
diluted |
|
30.6 |
|
|
|
30.6 |
|
|
|
30.9 |
|
|
|
30.9 |
|
Non-GAAP
net loss per common share - basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.24 |
) |
Benefitfocus, Inc.
843-284-1052 ext. 3527
pr@benefitfocus.com
Investor Relations:
Michael Bauer
843-284-1052 ext. 6654
michael.bauer@benefitfocus.com
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