2017 total revenue of $256.7 million grew 10%
year-over-year2017 employer revenue of $164.0 million grew 17%
year-over-year
Benefitfocus, Inc. (NASDAQ:BNFT), a leading provider of cloud-based
benefits management software, today announced its fourth quarter
and full year 2017 financial results.
"Our results for the fourth quarter reflect
total revenue and adjusted EBITDA exceeding the midpoint of our
guidance and we achieved a major milestone of becoming free cash
flow positive," said Ray August, President and Chief Executive
Officer of Benefitfocus. "Overall, the fourth quarter was a
successful one that reflects improved execution and progress across
our growing company."
August added, "As we focus on 2018, our teams
are aligned to improve our sales execution, expand our revenue
opportunities and strengthen our core. Successfully executing on
these three priorities will result in faster recurring revenue
growth, improved profitability, and drive long-term shareholder
value."
Fourth Quarter 2017 Financial
Highlights
Revenue
- Total revenue was $66.8 million, an increase of 7% compared to
the fourth quarter of 2016.
- Software services revenue was $55.1 million, an increase of 5%
compared to the fourth quarter of 2016.
- Professional services revenue was $11.7 million, an increase of
15% compared to the fourth quarter of 2016.
- Employer revenue was $44.4 million, an increase of 21% compared
to the fourth quarter of 2016.
- Insurance carrier revenue was $22.4 million, a decline of 14%
compared to the fourth quarter of 2016.
Net Loss
- GAAP net loss was ($7.0) million, compared to ($7.1) million in
the fourth quarter of 2016. GAAP net loss per share was ($0.22),
based on 31.3 million basic and diluted weighted average common
shares outstanding, compared to ($0.24) for the fourth quarter of
2016, based on 30.0 million basic and diluted weighted average
common shares outstanding.
Non-GAAP Net Loss and Adjusted
EBITDA
- Non-GAAP net loss was ($1.9) million, compared to ($2.6)
million in the fourth quarter of 2016. Non-GAAP net loss per share
was ($0.06), based on 31.3 million basic and diluted weighted
average common shares outstanding, compared to ($0.09) for the
fourth quarter of 2016, based on 30.0 million basic and diluted
weighted average common shares outstanding.
- Adjusted EBITDA was $5.3 million, compared to $2.9 million in
the fourth quarter of 2016.
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, 2017 totaled $55.3 million, compared to $54.6 million at the
end of the third quarter of 2017.
Full Year 2017 Financial
Highlights
Revenue
- Total revenue was $256.7 million, an increase of 10% compared
to the full year 2016.
- Software services revenue was $218.4 million, an increase of 8%
compared to the full year 2016.
- Professional services revenue was $38.3 million, an increase of
21% compared to the full year 2016.
- Employer revenue was $164.0 million, an increase of 17%
compared to the full year 2016.
- Insurance carrier revenue was $92.7 million, approximately
unchanged compared to the full year 2016.
Net Loss
- GAAP net loss was ($25.9) million, compared to ($40.1) million
in 2016. GAAP net loss per share was ($0.83), based on 31.1 million
basic and diluted weighted average common shares outstanding,
compared to ($1.35) in 2016, based on 29.6 million basic and
diluted weighted average common shares outstanding.
Non-GAAP Net Loss and Adjusted
EBITDA
- Non-GAAP net loss was ($8.4) million, compared to ($21.7)
million in 2016. Non-GAAP net loss per share was ($0.27), based on
31.1 million basic and diluted weighted average common shares
outstanding, compared to ($0.73) in 2016, based on 29.6 million
basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA was $19.4 million, compared to ($1.1) million
in 2016.
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 920 large employer customers, up from
833 at the end of the year-ago period and 903 at the end of the
third quarter of 2017.
- We announced our Winter Software Release, which included
platform investments designed to simplify end-of-year reporting and
deliver data-driven insights for 2018 planning. The release also
included new communication capabilities to help increase
transparency and improve personalization.
- We published our third annual "State of Employee Benefits"
report, a snapshot of real, but anonymous benefit election data
from more than 1.3 million consumers from 540 large employers on
our Platform.
- The Brandon Hall Group awarded us its gold medal award for the
Best Advance in Compensation and Benefits and/or Payroll
Administration category.
Business Outlook
Based on information available as of March 14,
2018, Benefitfocus is providing guidance for the first quarter and
full year 2018. Our guidance is based on the new ASC 606 revenue
recognition standard that is effective beginning January 1,
2018.
First Quarter 2018:
- Total revenue is expected to be in the range of $57.5 million
to $59.5 million.
- Adjusted EBITDA is expected to be in the range of ($6.0)
million to ($4.0) million.
- Non-GAAP net loss is expected to be in the range of ($13.0)
million to ($11.0) million.
- Diluted weighted average common shares outstanding is expected
to be 31.3 million.
Full Year 2018:
- Total revenue is expected to be in the range of $250.0 million
to $258.0 million.
- Adjusted EBITDA is expected to be in the range of $5.0 million
to $13.0 million.
- Non-GAAP net loss is expected to be in the range of ($25.0)
million to ($17.0) million.
- Diluted weighted average common shares outstanding is expected
to be 31.7 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, March 14, 2018, 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 13675332 through March 21, 2018.
Investor Presentation
Details
An investor presentation providing additional
information on the ASC 605 to ASC 606 accounting change can be
found at http://investor.benefitfocus.com.
About Benefitfocus
Benefitfocus (NASDAQ:BNFT) provides technology
and services that improve the way employers of all sizes manage
their benefits investment. Through a combination of powerful
cloud-based software, data-driven insights and
thoughtfully-designed services, we provide employers, their brokers
and insurance carriers with a single partner to deliver a
world-class benefits experience. Learn more at
www.benefitfocus.com, LinkedIn and Twitter.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial
measures in this release, including non-GAAP gross profit,
operating income (loss), net loss, net loss per common share,
adjusted EBITDA, and free cash flow. 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 income (loss),
net loss and net loss per share exclude stock-based compensation
expenses, amortization of acquisition-related intangible assets,
offering costs expensed, if any and costs not core to our business,
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 , expense related to the
impairment of goodwill and intangible assets, and costs not core to
our business. We define free cash flow as cash from operations plus
purchases of property and equipment. 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 to determine 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 GAAP profitability; fluctuations in our financial results;
risks related to changing healthcare and other applicable
regulations; our ability to maintain our culture, recruit and
retain qualified personnel and effectively expand our sales force;
cyber-security risks; 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-filings 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, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Revenue |
|
$ |
66,763 |
|
|
$ |
62,647 |
|
|
$ |
256,735 |
|
|
$ |
233,335 |
|
Cost of revenue
(1)(2) |
|
|
33,260 |
|
|
|
32,522 |
|
|
|
124,156 |
|
|
|
120,681 |
|
Gross profit |
|
|
33,503 |
|
|
|
30,125 |
|
|
|
132,579 |
|
|
|
112,654 |
|
Operating
expenses:(1)(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
18,177 |
|
|
|
13,546 |
|
|
|
69,280 |
|
|
|
55,488 |
|
Research
and development |
|
|
12,327 |
|
|
|
13,308 |
|
|
|
49,549 |
|
|
|
56,584 |
|
General
and administrative |
|
|
6,781 |
|
|
|
8,335 |
|
|
|
27,268 |
|
|
|
32,750 |
|
Total
operating expenses |
|
|
37,285 |
|
|
|
35,189 |
|
|
|
146,097 |
|
|
|
144,822 |
|
Loss from
operations |
|
|
(3,782 |
) |
|
|
(5,064 |
) |
|
|
(13,518 |
) |
|
|
(32,168 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
53 |
|
|
|
21 |
|
|
|
182 |
|
|
|
138 |
|
Interest
expense on building lease financing obligations |
|
|
(1,865 |
) |
|
|
(1,696 |
) |
|
|
(7,450 |
) |
|
|
(6,826 |
) |
Interest
expense on other borrowings |
|
|
(1,405 |
) |
|
|
(404 |
) |
|
|
(4,931 |
) |
|
|
(1,095 |
) |
Other
expense |
|
|
– |
|
|
|
46 |
|
|
|
(140 |
) |
|
|
(90 |
) |
Total
other expense, net |
|
|
(3,217 |
) |
|
|
(2,033 |
) |
|
|
(12,339 |
) |
|
|
(7,873 |
) |
Loss before income
taxes |
|
|
(6,999 |
) |
|
|
(7,097 |
) |
|
|
(25,857 |
) |
|
|
(40,041 |
) |
Income tax expense |
|
|
5 |
|
|
|
2 |
|
|
|
15 |
|
|
|
17 |
|
Net loss |
|
$ |
(7,004 |
) |
|
$ |
(7,099 |
) |
|
$ |
(25,872 |
) |
|
$ |
(40,058 |
) |
Comprehensive loss |
|
$ |
(7,004 |
) |
|
$ |
(7,099 |
) |
|
$ |
(25,872 |
) |
|
$ |
(40,058 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.83 |
) |
|
$ |
(1.35 |
) |
Weighted-average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
31,285,263 |
|
|
|
30,030,164 |
|
|
|
31,052,378 |
|
|
|
29,589,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
705 |
|
|
$ |
726 |
|
|
$ |
2,508 |
|
|
$ |
2,798 |
|
Sales and
marketing |
|
|
1,378 |
|
|
|
857 |
|
|
|
4,953 |
|
|
|
3,213 |
|
Research
and development |
|
|
790 |
|
|
|
994 |
|
|
|
2,990 |
|
|
|
4,532 |
|
General
and administrative |
|
|
1,618 |
|
|
|
1,901 |
|
|
|
5,686 |
|
|
|
7,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Amortization of
acquired intangible assets included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
36 |
|
|
$ |
36 |
|
|
$ |
141 |
|
|
$ |
147 |
|
Sales and
marketing |
|
|
14 |
|
|
|
12 |
|
|
|
52 |
|
|
|
42 |
|
Research
and development |
|
|
12 |
|
|
|
13 |
|
|
|
50 |
|
|
|
54 |
|
General
and administrative |
|
|
2 |
|
|
|
2 |
|
|
|
15 |
|
|
|
14 |
|
|
Benefitfocus, Inc. |
Consolidated Balance Sheets |
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
55,335 |
|
|
$ |
56,853 |
|
|
Marketable securities |
|
|
– |
|
|
|
2,007 |
|
|
Accounts
receivable, net |
|
|
30,156 |
|
|
|
28,340 |
|
|
Accounts
receivable, related party, net |
|
|
– |
|
|
|
4,626 |
|
|
Prepaid
expenses and other current assets |
|
|
4,337 |
|
|
|
4,449 |
|
|
Total
current assets |
|
|
89,828 |
|
|
|
96,275 |
|
|
Property and equipment,
net |
|
|
72,681 |
|
|
|
80,518 |
|
|
Intangible assets,
net |
|
|
150 |
|
|
|
408 |
|
|
Goodwill |
|
|
1,634 |
|
|
|
1,634 |
|
|
Other non-current
assets |
|
|
816 |
|
|
|
1,575 |
|
|
Total
assets |
|
$ |
165,109 |
|
|
$ |
180,410 |
|
|
Liabilities and
stockholders' deficit |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
4,260 |
|
|
$ |
5,829 |
|
|
Accrued
expenses |
|
|
9,136 |
|
|
|
10,867 |
|
|
Accrued
compensation and benefits |
|
|
14,250 |
|
|
|
17,347 |
|
|
Deferred
revenue, current portion |
|
|
38,821 |
|
|
|
35,426 |
|
|
Revolving
line of credit, current portion |
|
|
24,000 |
|
|
|
20,000 |
|
|
Financing
and capital lease obligations, current portion |
|
|
3,423 |
|
|
|
2,604 |
|
|
Total
current liabilities |
|
|
93,890 |
|
|
|
92,073 |
|
|
Deferred revenue, net
of current portion |
|
|
19,898 |
|
|
|
40,412 |
|
|
Revolving line of
credit, net of current portion |
|
|
32,246 |
|
|
|
20,246 |
|
|
Financing and capital
lease obligations, net of current portion |
|
|
55,597 |
|
|
|
57,934 |
|
|
Other non-current
liabilities |
|
|
2,809 |
|
|
|
3,056 |
|
|
Total
liabilities |
|
|
204,440 |
|
|
|
213,721 |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
|
|
|
|
|
|
Preferred
stock, par value $0.001, 5,000,000 shares authorized, no shares
issued and outstanding at December 31, 2017 and 2016 |
|
|
- |
|
|
|
- |
|
|
Common
stock, par value $0.001, 50,000,000 shares authorized, 31,307,989
and 30,429,014 shares issued and outstanding at December 31,
2017 and 2016, respectively |
|
|
31 |
|
|
|
30 |
|
|
Additional paid-in capital |
|
|
355,301 |
|
|
|
335,059 |
|
|
Accumulated deficit |
|
|
(394,663 |
) |
|
|
(368,400 |
) |
|
Total
stockholders' deficit |
|
|
(39,331 |
) |
|
|
(33,311 |
) |
|
Total
liabilities and stockholders' deficit |
|
$ |
165,109 |
|
|
$ |
180,410 |
|
|
|
|
Benefitfocus, Inc. |
|
Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(25,872 |
) |
|
$ |
(40,058 |
) |
|
$ |
(62,084 |
) |
Adjustments to reconcile net loss to net cash and cash
equivalents used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
15,906 |
|
|
|
13,073 |
|
|
|
11,664 |
|
Stock-based compensation expense |
|
|
16,137 |
|
|
|
18,088 |
|
|
|
10,454 |
|
Interest
accrual on financing obligations |
|
|
7,500 |
|
|
|
6,827 |
|
|
|
7,092 |
|
Provision
for doubtful accounts |
|
|
75 |
|
|
|
667 |
|
|
|
22 |
|
Loss on
disposal or impairment of property and equipment |
|
|
157 |
|
|
|
141 |
|
|
|
18 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
2,735 |
|
|
|
(3,936 |
) |
|
|
(7,800 |
) |
Accrued interest on short-term investments |
|
|
7 |
|
|
|
220 |
|
|
|
205 |
|
Prepaid expenses and other current assets |
|
|
112 |
|
|
|
1,626 |
|
|
|
(1,328 |
) |
Other non-current assets |
|
|
759 |
|
|
|
339 |
|
|
|
1,380 |
|
Accounts payable |
|
|
(1,372 |
) |
|
|
(1,849 |
) |
|
|
3,418 |
|
Accrued expenses |
|
|
(1,617 |
) |
|
|
990 |
|
|
|
2,961 |
|
Accrued compensation and benefits |
|
|
(3,097 |
) |
|
|
(3,337 |
) |
|
|
3,310 |
|
Deferred revenue |
|
|
(17,119 |
) |
|
|
(17,690 |
) |
|
|
(1,189 |
) |
Other non-current liabilities |
|
|
(248 |
) |
|
|
2,073 |
|
|
|
332 |
|
Net cash and cash
equivalents used in operating activities |
|
|
(5,937 |
) |
|
|
(22,826 |
) |
|
|
(31,545 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of short-term investments held to maturity |
|
|
– |
|
|
|
(2,004 |
) |
|
|
(68,185 |
) |
Proceeds
from short-term investments held to maturity |
|
|
2,000 |
|
|
|
40,225 |
|
|
|
32,667 |
|
Purchases
of property and equipment |
|
|
(8,279 |
) |
|
|
(12,705 |
) |
|
|
(14,727 |
) |
Net cash and cash
equivalents (used in) provided by investing activities |
|
|
(6,279 |
) |
|
|
25,516 |
|
|
|
(50,245 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Draws on
revolving line of credit |
|
|
105,000 |
|
|
|
84,000 |
|
|
|
57,492 |
|
Payments
on revolving line of credit |
|
|
(89,000 |
) |
|
|
(74,000 |
) |
|
|
(44,903 |
) |
Proceeds
from exercises of stock options and ESPP |
|
|
3,715 |
|
|
|
6,870 |
|
|
|
4,229 |
|
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 |
) |
Payments
on financing and capital lease obligations |
|
|
(9,017 |
) |
|
|
(10,200 |
) |
|
|
(9,884 |
) |
Net cash and cash
equivalents provided by financing activities |
|
|
10,698 |
|
|
|
6,089 |
|
|
|
78,790 |
|
Net (decrease)
increase in cash and cash equivalents |
|
|
(1,518 |
) |
|
|
8,779 |
|
|
|
(3,000 |
) |
Cash and cash
equivalents, beginning of year |
|
|
56,853 |
|
|
|
48,074 |
|
|
|
51,074 |
|
Cash and cash
equivalents, end of year |
|
$ |
55,335 |
|
|
$ |
56,853 |
|
|
$ |
48,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Property
and equipment purchases in accounts payable and accrued
expenses |
|
$ |
389 |
|
|
$ |
699 |
|
|
$ |
1,489 |
|
Property
and equipment purchased with financing and capital lease
obligations |
|
$ |
- |
|
|
$ |
28,032 |
|
|
$ |
914 |
|
Post
contract support purchased with financing obligations |
|
$ |
- |
|
|
$ |
1,048 |
|
|
$ |
272 |
|
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 |
|
$ |
14 |
|
|
$ |
7 |
|
|
$ |
18 |
|
Interest
paid |
|
$ |
10,911 |
|
|
$ |
6,655 |
|
|
$ |
6,525 |
|
|
|
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, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Reconciliation
from Gross Profit to Non-GAAP Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
33,503 |
|
|
$ |
30,125 |
|
|
$ |
132,579 |
|
|
$ |
112,654 |
|
Amortization of acquired intangible assets |
|
|
36 |
|
|
|
36 |
|
|
|
141 |
|
|
|
147 |
|
Stock-based compensation expense |
|
|
705 |
|
|
|
726 |
|
|
|
2,508 |
|
|
|
2,798 |
|
Total net
adjustments |
|
|
741 |
|
|
|
762 |
|
|
|
2,649 |
|
|
|
2,945 |
|
Non-GAAP
gross profit |
|
$ |
34,244 |
|
|
$ |
30,887 |
|
|
$ |
135,228 |
|
|
$ |
115,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Operating Loss to Non-GAAP Operating Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
$ |
(3,782 |
) |
|
$ |
(5,064 |
) |
|
$ |
(13,518 |
) |
|
$ |
(32,168 |
) |
Amortization of acquired intangible assets |
|
|
64 |
|
|
|
63 |
|
|
|
258 |
|
|
|
257 |
|
Stock-based compensation expense |
|
|
4,491 |
|
|
|
4,478 |
|
|
|
16,137 |
|
|
|
18,088 |
|
Costs not
core to our business |
|
|
578 |
|
|
|
— |
|
|
|
1,058 |
|
|
|
— |
|
Total net
adjustments |
|
|
5,133 |
|
|
|
4,541 |
|
|
|
17,453 |
|
|
|
18,345 |
|
Non-GAAP
operating income (loss) |
|
$ |
1,351 |
|
|
$ |
(523 |
) |
|
$ |
3,935 |
|
|
$ |
(13,823 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Net Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(7,004 |
) |
|
$ |
(7,099 |
) |
|
$ |
(25,872 |
) |
|
$ |
(40,058 |
) |
Depreciation |
|
|
3,146 |
|
|
|
2,615 |
|
|
|
12,391 |
|
|
|
9,959 |
|
Amortization of software development costs |
|
|
848 |
|
|
|
776 |
|
|
|
3,257 |
|
|
|
2,857 |
|
Amortization of acquired intangible assets |
|
|
64 |
|
|
|
63 |
|
|
|
258 |
|
|
|
257 |
|
Interest
income |
|
|
(53 |
) |
|
|
(21 |
) |
|
|
(182 |
) |
|
|
(138 |
) |
Interest
expense on building lease financing obligations |
|
|
1,865 |
|
|
|
1,696 |
|
|
|
7,450 |
|
|
|
6,826 |
|
Interest
expense on other borrowings |
|
|
1,405 |
|
|
|
404 |
|
|
|
4,931 |
|
|
|
1,095 |
|
Income
tax expense |
|
|
5 |
|
|
|
2 |
|
|
|
15 |
|
|
|
17 |
|
Stock-based compensation expense |
|
|
4,491 |
|
|
|
4,478 |
|
|
|
16,137 |
|
|
|
18,088 |
|
Costs not
core to our business |
|
|
578 |
|
|
|
— |
|
|
|
1,058 |
|
|
|
— |
|
Total net
adjustments |
|
|
12,349 |
|
|
|
10,013 |
|
|
|
45,315 |
|
|
|
38,961 |
|
Adjusted
EBITDA |
|
$ |
5,345 |
|
|
$ |
2,914 |
|
|
$ |
19,443 |
|
|
$ |
(1,097 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Net Loss to Non-GAAP Net Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,004 |
) |
|
$ |
(7,099 |
) |
|
$ |
(25,872 |
) |
|
$ |
(40,058 |
) |
Amortization of acquired intangible assets |
|
|
64 |
|
|
|
63 |
|
|
|
258 |
|
|
|
257 |
|
Stock-based compensation expense |
|
|
4,491 |
|
|
|
4,478 |
|
|
|
16,137 |
|
|
|
18,088 |
|
Costs not
core to our business |
|
|
578 |
|
|
|
— |
|
|
|
1,058 |
|
|
|
— |
|
Total net
adjustments |
|
|
5,133 |
|
|
|
4,541 |
|
|
|
17,453 |
|
|
|
18,345 |
|
Non-GAAP
net loss |
|
$ |
(1,871 |
) |
|
$ |
(2,558 |
) |
|
$ |
(8,419 |
) |
|
$ |
(21,713 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net loss |
|
$ |
(1,871 |
) |
|
$ |
(2,558 |
) |
|
$ |
(8,419 |
) |
|
$ |
(21,713 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic and diluted |
|
|
31,285,263 |
|
|
|
30,030,164 |
|
|
|
31,052,378 |
|
|
|
29,589,857 |
|
Shares
used in computing non-GAAP net loss per share - basic and
diluted |
|
|
31,285,263 |
|
|
|
30,030,164 |
|
|
|
31,052,378 |
|
|
|
29,589,857 |
|
Non-GAAP
net loss per common share - basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.73 |
) |
|
|
Benefitfocus, Inc. |
|
Unaudited Reconciliation of GAAP to Non-GAAP
Guidance Ranges |
|
(in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2018 |
|
|
Full Year 2018 |
|
|
Range |
|
|
Range |
|
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
Reconciliation
from Net Loss Guidance to Adjusted EBITDA Guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
- Guidance range |
$ |
(17.4 |
) |
|
$ |
(15.4 |
) |
|
$ |
(40.7 |
) |
|
$ |
(32.7 |
) |
Depreciation and amortization |
|
4.1 |
|
|
|
4.1 |
|
|
|
17.8 |
|
|
|
17.8 |
|
Interest
income |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
Interest
expense |
|
3.1 |
|
|
|
3.1 |
|
|
|
12.7 |
|
|
|
12.7 |
|
Income
tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
3.5 |
|
|
|
3.5 |
|
|
|
14.0 |
|
|
|
14.0 |
|
Costs not
core to the business |
|
0.8 |
|
|
|
0.8 |
|
|
|
1.4 |
|
|
|
1.4 |
|
Total net
adjustments |
|
11.4 |
|
|
|
11.4 |
|
|
|
45.7 |
|
|
|
45.7 |
|
Adjusted
EBITDA - Guidance range |
$ |
(6.0 |
) |
|
$ |
(4.0 |
) |
|
$ |
5.0 |
|
|
$ |
13.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from Net Loss Guidance to Non-GAAP Net Loss Guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss - Guidance
range |
$ |
(17.4 |
) |
|
$ |
(15.4 |
) |
|
$ |
(40.7 |
) |
|
$ |
(32.7 |
) |
Amortization of acquired intangible assets |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Stock-based compensation expense |
|
3.5 |
|
|
|
3.5 |
|
|
|
14.0 |
|
|
|
14.0 |
|
Costs not
core to the business |
|
0.8 |
|
|
|
0.8 |
|
|
|
1.4 |
|
|
|
1.4 |
|
Total net
adjustments |
|
4.4 |
|
|
|
4.4 |
|
|
|
15.7 |
|
|
|
15.7 |
|
Non-GAAP
net loss - Guidance range |
$ |
(13.0 |
) |
|
$ |
(11.0 |
) |
|
$ |
(25.0 |
) |
|
$ |
(17.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share Guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net loss - Guidance range |
$ |
(13.0 |
) |
|
$ |
(11.0 |
) |
|
$ |
(25.0 |
) |
|
$ |
(17.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic and diluted |
|
31.3 |
|
|
|
31.3 |
|
|
|
31.7 |
|
|
|
31.7 |
|
Shares
used in computing non-GAAP net loss per share - basic and
diluted |
|
31.3 |
|
|
|
31.3 |
|
|
|
31.7 |
|
|
|
31.7 |
|
Non-GAAP
net loss per common share - basic and diluted |
$ |
(0.42 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.79 |
) |
|
$ |
(0.54 |
) |
Benefitfocus, Inc.843-284-1052 ext.
3527pr@benefitfocus.com
Investor Relations:Michael Bauer843-284-1052 ext.
6654michael.bauer@benefitfocus.com
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