SAN FRANCISCO, May 10,
2018 /PRNewswire/ -- Castlight Health, Inc. (NYSE:CSLT), a leading
health benefits platform provider, today announced results for its
first quarter ended March 31, 2018.
"We launched a record number of new customers in the first
quarter, including more than twenty on Engage, our first product
that combines wellbeing and care guidance functionality into a
single user experience," said John
Doyle, chief executive officer of Castlight Health. "With
the solid start to the year, we are pleased to be reiterating our
2018 outlook."
Financial performance for the three months ended March 31,
2018 compared to the three months ended March 31, 2017
includes:
- GAAP total revenue of $36.5
million, representing an increase of 32%
- GAAP gross margin of 59.0%, compared to 70.9%
- Non-GAAP gross margin of 63.0% compared to 73.7%
- GAAP operating loss of $14.6
million for both quarters
- Non-GAAP operating loss of $7.7
million, compared to a loss of $5.3
million
- GAAP net loss per basic and diluted share of $0.11, compared to a net loss per basic and
diluted share of $0.14
- Non-GAAP net loss per basic and diluted share of $0.06, compared to a net loss per basic and
diluted share of $0.05
- Cash used in operations of $19.0
million, compared to $10.9
million
Total cash, cash equivalents and marketable securities was
$74.6 million as of March 31,
2018.
The financial performance of Jiff, Inc., which Castlight
acquired on April 3, 2017, is not
included in the metrics for first quarter ended March 31, 2017. A reconciliation of GAAP to
non-GAAP results has been provided in this press release in the
accompanying tables. An explanation of these measures is also
included below under the heading "Non-GAAP Financial Measures."
Castlight adopted the new accounting standard ASC 606, effective
January 1, 2018, and used the full
retrospective method of adoption. As such, all historical financial
information has been adjusted to reflect the impact of adoption of
ASC 606. For more information, please refer to a supplemental
presentation available on the company's investor relations website
at http://ir.castlighthealth.com.
Business Outlook
The Company is reiterating its previously-issued 2018 outlook.
For the full year 2018, the Company expects:
- GAAP revenue in the range of $150
million to $155 million
- Non-GAAP operating loss in the range of $15 million to $20
million
- Non-GAAP net loss per share of approximately $0.11 to $0.15
based on approximately 137 million to 138 million shares
Quarterly Conference Call
Castlight Health senior management will host a conference call
to discuss its first quarter 2018 results and business outlook
today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of
the conference call, together with detailed financial information,
can be accessed through the company's Investor Relations website at
http://ir.castlighthealth.com. An archive of the webcast can also
be accessed through the same link. The live conference call can be
accessed by dialing (866) 393-4306 and the replay will be available
for one week at (855) 859-2056. The conference ID number for
the live call and replay is 5669898.
About Castlight Health
Castlight is on a mission to make it as easy as humanly possible
to navigate healthcare and live happier, healthier, more productive
lives. Our health navigation platform connects with hundreds
of health vendors, benefits resources, and plan designs, giving
rise to the world's first comprehensive app for all health needs.
We guide individuals - based on their unique profile - to the best
resources available to them, whether they are healthy, chronically
ill, or actively seeking medical care. In doing so, we help
companies regain control over rising healthcare costs and get more
value from their benefits investments. Castlight revolutionized the
healthcare sector with the introduction of data-driven price
transparency tools in 2008 and the first consumer-grade wellbeing
platform in 2012. Today, Castlight serves as the health navigation
platform for millions of people and is a trusted partner to many of
the largest employers in the world.
For more information visit www.castlighthealth.com. Follow
us on Twitter and LinkedIn and Like us
on Facebook.
Non-GAAP Financial Measures
To supplement Castlight Health's financial statements presented
in accordance with generally accepted accounting principles (GAAP),
we also use and provide investors and others with non-GAAP measures
of certain components of financial performance, including non-GAAP
gross profit and margin, non-GAAP operating expense, non-GAAP
operating loss, non-GAAP other income, net, non-GAAP net loss and
non-GAAP net loss per share. Non-GAAP gross profit and margin,
non-GAAP operating expense, non-GAAP operating loss, non-GAAP other
income, net and non-GAAP net loss exclude stock-based compensation,
litigation settlement, amortization of intangibles,
capitalization and amortization of internal-use software, loss on
sublease, gain on sale of investment in related party, expense
related to expiration of SAP warrant, changes in fair value of
contingent consideration liability, and charges related to the
acquisition of Jiff and the associated tax impact of these items,
where applicable.
We believe that these non-GAAP financial measures provide useful
supplemental information to investors and others, facilitate the
analysis of the company's core operating results and comparison of
operating results across reporting periods, and can help enhance
overall understanding of the company's historical financial
performance.
We have provided a reconciliation of each non-GAAP financial
measure to the most directly comparable GAAP financial measure,
except that we have not reconciled our non-GAAP operating loss and
net loss per share guidance for the full year 2018 to comparable
GAAP operating loss and net loss per share guidance because we do
not provide guidance for stock-based compensation expense, and
capitalization and amortization of internal-use software, which are
reconciling items between GAAP and non-GAAP operating loss. The
factors that may impact our future stock-based compensation
expense, and capitalization and amortization of internal-use
software are out of our control and/or cannot be reasonably
predicted, and therefore we are unable to provide such guidance
without unreasonable effort. Factors include our market
capitalization and related volatility of our stock price and our
inability to project the cost or scope of internally produced
software.
These non-GAAP financial measures should be considered in
addition to, not as a substitute for or in isolation from, measures
prepared in accordance with GAAP.
Further, these non-GAAP measures may differ from the non-GAAP
information used by other companies, including peer companies, and
therefore comparability may be limited. Castlight Health encourages
investors and others to review the company's financial information
in its entirety and not rely on a single financial measure.
Safe Harbor For Forward-Looking Statements
This press release contains forward-looking statements about
Castlight Health's expectations, plans, intentions, and strategies,
including, but not limited to, statements regarding Castlight
Health's 2018 full year projections, our expectations for our
future business and financial performance. Statements including
words such as "anticipate," "believe," "estimate," "will,"
"continue," "expect," or "future," and statements in the future
tense are forward-looking statements. These forward-looking
statements involve risks and uncertainties, as well as assumptions,
which, if they do not fully materialize or prove incorrect, could
cause our results to differ materially from those expressed or
implied by such forward-looking statements. The risks and
uncertainties include those described in Castlight Health's
documents filed with or furnished to the Securities and Exchange
Commission. All forward-looking statements in this press release
are based on information available to Castlight Health as of the
date hereof. Castlight Health assumes no obligation to update these
forward-looking statements.
Copyright 2018 Castlight Health, Inc. Castlight
Health® is the registered trademark of Castlight
Health, Inc. Other company and product names may be trademarks of
the respective companies with which they are associated.
CASTLIGHT HEALTH,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
As
of
|
|
March 31,
2018
|
|
December 31,
2017
|
|
|
|
(as
adjusted)(1)
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
48,174
|
|
|
$
|
61,319
|
|
Marketable
securities
|
26,433
|
|
|
32,025
|
|
Accounts receivable
and other, net
|
33,129
|
|
|
21,933
|
|
Prepaid expenses and
other current assets
|
3,632
|
|
|
3,991
|
|
Total current
assets
|
111,368
|
|
|
119,268
|
|
Property and
equipment, net
|
4,791
|
|
|
5,263
|
|
Restricted cash,
non-current
|
1,325
|
|
|
1,325
|
|
Deferred
commissions
|
25,830
|
|
|
27,512
|
|
Deferred professional
service costs
|
12,318
|
|
|
12,480
|
|
Intangible assets,
net
|
19,111
|
|
|
20,253
|
|
Goodwill
|
91,785
|
|
|
91,785
|
|
Other
assets
|
2,150
|
|
|
1,997
|
|
Total
assets
|
$
|
268,678
|
|
|
$
|
279,883
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
5,549
|
|
|
$
|
3,907
|
|
Accrued expenses and
other current liabilities
|
12,473
|
|
|
13,178
|
|
Accrued
compensation
|
7,551
|
|
|
13,941
|
|
Deferred
revenue
|
30,050
|
|
|
25,985
|
|
Total current
liabilities
|
55,623
|
|
|
57,011
|
|
Deferred revenue,
non-current
|
3,575
|
|
|
4,457
|
|
Debt,
non-current
|
4,648
|
|
|
4,958
|
|
Other liabilities,
non-current
|
2,594
|
|
|
1,900
|
|
Total
liabilities
|
66,440
|
|
|
68,326
|
|
Stockholders'
equity
|
202,238
|
|
|
211,557
|
|
Total liabilities and
stockholders' equity
|
$
|
268,678
|
|
|
$
|
279,883
|
|
|
|
|
|
|
|
(1)
|
Prior-period
information has been adjusted for the adoption of ASU No.
2014-09, Revenue from Contracts with Customers (ASC
606), which we adopted in the first quarter of
2018.
|
CASTLIGHT HEALTH,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(unaudited)
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
|
|
(as
adjusted)(1)
|
Revenue:
|
|
|
|
Subscription
|
$
|
32,989
|
|
|
$
|
25,897
|
|
Professional services
and other
|
3,490
|
|
|
1,806
|
|
Total revenue,
net
|
36,479
|
|
|
27,703
|
|
Cost of
revenue:
|
|
|
|
Cost of
subscription(2)
|
9,174
|
|
|
4,246
|
|
Cost of professional
services and other(2)
|
5,769
|
|
|
3,809
|
|
Total cost of
revenue
|
14,943
|
|
|
8,055
|
|
Gross
profit
|
21,536
|
|
|
19,648
|
|
Operating
expenses:
|
|
|
|
Sales and
marketing(2)
|
13,912
|
|
|
14,145
|
|
Research and
development(2)
|
15,371
|
|
|
11,071
|
|
General and
administrative(2)
|
6,825
|
|
|
8,998
|
|
Total operating
expenses
|
36,108
|
|
|
34,214
|
|
Operating
loss
|
(14,572)
|
|
|
(14,566)
|
|
Other income,
net
|
128
|
|
|
192
|
|
Net loss
|
$
|
(14,444)
|
|
|
$
|
(14,374)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.11)
|
|
|
$
|
(0.14)
|
|
Weighted-average
shares used to compute basic and diluted net loss
per share
|
134,994
|
|
|
104,935
|
|
|
|
|
|
|
|
(1)
|
Prior-period
information has been adjusted for the adoption of ASU No.
2014-09, Revenue from Contracts with Customers (ASC
606), which we adopted in the first quarter of
2018.
|
|
(2)
Includes stock-based compensation expense as
follows:
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
|
|
(as
adjusted)
|
Cost of
revenue:
|
|
|
|
Cost of
subscription
|
$
|
242
|
|
|
$
|
127
|
|
Cost of professional
services and other
|
301
|
|
|
246
|
|
Sales and
marketing
|
1,138
|
|
|
2,154
|
|
Research and
development
|
1,654
|
|
|
1,790
|
|
General and
administrative
|
1,257
|
|
|
1,295
|
|
CASTLIGHT HEALTH,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
|
|
(as
adjusted)(1)
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(14,444)
|
|
|
$
|
(14,374)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,860
|
|
|
698
|
|
Stock-based
compensation
|
4,592
|
|
|
5,612
|
|
Amortization of
deferred commissions
|
2,853
|
|
|
1,933
|
|
Amortization of
deferred professional service costs
|
946
|
|
|
887
|
|
Loss on
sublease
|
916
|
|
|
—
|
|
Accretion and
amortization of marketable securities
|
(131)
|
|
|
64
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable
and others, net
|
(11,196)
|
|
|
(1,691)
|
|
Deferred
commissions
|
(1,171)
|
|
|
(557)
|
|
Deferred professional
service costs
|
(742)
|
|
|
(852)
|
|
Prepaid expenses and
other assets
|
206
|
|
|
(1,183)
|
|
Accounts
payable
|
1,783
|
|
|
177
|
|
Accrued expenses and
other liabilities
|
(7,627)
|
|
|
(4,755)
|
|
Deferred
revenue
|
3,183
|
|
|
3,129
|
|
Net cash used in
operating activities
|
(18,972)
|
|
|
(10,912)
|
|
Investing
activities:
|
|
|
|
Purchase of property
and equipment
|
(388)
|
|
|
(166)
|
|
Purchase of
marketable securities
|
(10,025)
|
|
|
(16,007)
|
|
Maturities of
marketable securities
|
15,750
|
|
|
34,799
|
|
Net cash provided by
investing activities
|
5,337
|
|
|
18,626
|
|
Financing
activities:
|
|
|
|
Proceeds from the
exercise of stock options
|
490
|
|
|
374
|
|
Payments of issuance
costs related to equity
|
—
|
|
|
(612)
|
|
Net cash provided by
(used in) financing activities
|
490
|
|
|
(238)
|
|
|
|
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
(13,145)
|
|
|
7,476
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
62,644
|
|
|
49,866
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
49,499
|
|
|
$
|
57,342
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash:
|
|
|
|
Cash and cash
equivalents
|
$
|
48,174
|
|
|
$
|
56,198
|
|
Restricted
cash
|
1,325
|
|
|
1,144
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
49,499
|
|
|
$
|
57,342
|
|
|
|
|
|
|
|
(1)
|
Prior-period
information has been adjusted for the adoption of ASU No.
2014-09, Revenue from Contracts with Customers (ASC
606), which we adopted in the first quarter of 2018, and
ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (ASC
230), which we adopted in the fourth quarter of 2017.
|
CASTLIGHT HEALTH,
INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands,
except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
|
|
(as
adjusted)(1)
|
|
(as
adjusted)(1)
|
Gross
profit:
|
|
|
|
|
|
GAAP gross profit
subscription
|
$
|
23,815
|
|
|
$
|
25,376
|
|
|
$
|
21,651
|
|
Stock-based
compensation
|
242
|
|
|
250
|
|
|
127
|
|
Amortization of
internal-use software
|
219
|
|
|
236
|
|
|
244
|
|
Amortization of
intangibles
|
678
|
|
|
751
|
|
|
—
|
|
Non-GAAP gross profit
subscription
|
$
|
24,954
|
|
|
$
|
26,613
|
|
|
$
|
22,022
|
|
GAAP gross margin
subscription
|
72.2
|
%
|
|
75.3
|
%
|
|
83.6
|
%
|
Non-GAAP gross margin
subscription
|
75.6
|
%
|
|
78.9
|
%
|
|
85.0
|
%
|
|
|
|
|
|
|
GAAP gross loss
professional services
|
$
|
(2,279)
|
|
|
$
|
(1,532)
|
|
|
$
|
(2,003)
|
|
Stock-based
compensation
|
301
|
|
|
228
|
|
|
246
|
|
Acquisition related
costs
|
—
|
|
|
—
|
|
|
147
|
|
Non-GAAP gross loss
professional services
|
$
|
(1,978)
|
|
|
$
|
(1,304)
|
|
|
$
|
(1,610)
|
|
GAAP gross margin
professional services
|
(65.3)%
|
|
|
(44.0)%
|
|
|
(111)%
|
|
Non-GAAP gross margin
professional services
|
(56.7)%
|
|
|
(37.4)%
|
|
|
(89.1)%
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
21,536
|
|
|
$
|
23,844
|
|
|
$
|
19,648
|
|
Impact of non-GAAP
adjustments
|
1,440
|
|
|
1,465
|
|
|
764
|
|
Non-GAAP gross
profit
|
$
|
22,976
|
|
|
$
|
25,309
|
|
|
$
|
20,412
|
|
GAAP gross
margin
|
59.0
|
%
|
|
64.1
|
%
|
|
70.9
|
%
|
Non-GAAP gross
margin
|
63.0
|
%
|
|
68.0
|
%
|
|
73.7
|
%
|
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
|
GAAP sales and
marketing
|
$
|
13,912
|
|
|
$
|
14,149
|
|
|
$
|
14,145
|
|
Stock-based
compensation
|
(1,138)
|
|
|
(1,960)
|
|
|
(2,154)
|
|
Amortization of
intangibles
|
(448)
|
|
|
(448)
|
|
|
—
|
|
Acquisition related
costs
|
—
|
|
|
—
|
|
|
(405)
|
|
Non-GAAP sales and
marketing
|
$
|
12,326
|
|
|
$
|
11,741
|
|
|
$
|
11,586
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
15,371
|
|
|
$
|
14,428
|
|
|
$
|
11,071
|
|
Stock-based
compensation
|
(1,654)
|
|
|
(1,740)
|
|
|
(1,790)
|
|
Loss on
sublease
|
(916)
|
|
|
—
|
|
|
—
|
|
Acquisition related
costs
|
—
|
|
|
—
|
|
|
(267)
|
|
Non-GAAP research and
development
|
$
|
12,801
|
|
|
$
|
12,688
|
|
|
$
|
9,014
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
6,825
|
|
|
$
|
2,754
|
|
|
$
|
8,998
|
|
Stock-based
compensation
|
(1,257)
|
|
|
(1,368)
|
|
|
(1,295)
|
|
Litigation
settlement
|
—
|
|
|
—
|
|
|
(250)
|
|
Amortization of
intangibles
|
(17)
|
|
|
(17)
|
|
|
—
|
|
Change in fair value
of contingent consideration liability
|
—
|
|
|
3,959
|
|
|
—
|
|
Acquisition related
costs
|
—
|
|
|
(58)
|
|
|
(2,340)
|
|
Non-GAAP general and
administrative
|
$
|
5,551
|
|
|
$
|
5,270
|
|
|
$
|
5,113
|
|
|
|
|
|
|
|
GAAP operating
expense
|
$
|
36,108
|
|
|
$
|
31,331
|
|
|
$
|
34,214
|
|
Impact of non-GAAP
adjustments
|
(5,430)
|
|
|
(1,632)
|
|
|
(8,501)
|
|
Non-GAAP operating
expense
|
$
|
30,678
|
|
|
$
|
29,699
|
|
|
$
|
25,713
|
|
|
|
|
|
|
|
Operating
loss:
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(14,572)
|
|
|
$
|
(7,487)
|
|
|
$
|
(14,566)
|
|
Impact of non-GAAP
adjustments
|
6,870
|
|
|
3,097
|
|
|
9,265
|
|
Non-GAAP operating
loss
|
$
|
(7,702)
|
|
|
$
|
(4,390)
|
|
|
$
|
(5,301)
|
|
|
|
|
|
|
|
Other income,
net:
|
|
|
|
|
|
GAAP other income,
net
|
$
|
128
|
|
|
$
|
330
|
|
|
$
|
192
|
|
Gain on sale of
investment in related party
|
—
|
|
|
(1,375)
|
|
|
—
|
|
Expense related to
expiration of SAP warrant
|
—
|
|
|
1,132
|
|
|
—
|
|
Non-GAAP other
income, net
|
$
|
128
|
|
|
$
|
87
|
|
|
$
|
192
|
|
|
|
|
|
|
|
Net loss and net
loss per share:
|
|
|
|
|
|
GAAP net
loss
|
$
|
(14,444)
|
|
|
$
|
(7,157)
|
|
|
$
|
(14,374)
|
|
Total pre-tax impact
of non-GAAP adjustments
|
6,870
|
|
|
2,854
|
|
|
9,265
|
|
Income tax impact of
non-GAAP adjustments
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP net
loss
|
$
|
(7,574)
|
|
|
$
|
(4,303)
|
|
|
$
|
(5,109)
|
|
GAAP net loss per
share, basic and diluted
|
$
|
(0.11)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.14)
|
|
Non-GAAP net loss per
share, basic and diluted
|
$
|
(0.06)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.05)
|
|
Shares used in basic
and diluted net loss per share computation
|
134,994
|
|
|
134,018
|
|
|
104,935
|
|
|
|
|
|
|
|
(1)
|
Prior-period
information has been adjusted for the adoption of ASU No.
2014-09, Revenue from Contracts with Customers (ASC
606), which we adopted in the first quarter of
2018.
|
Castlight Media Contact:
Shannon Magill
press@castlighthealth.com
415-829-1500
Castlight Investor Contact:
Gary J. Fuges, CFA
ir@castlighthealth.com
415-829-1680
View original content with
multimedia:http://www.prnewswire.com/news-releases/castlight-health-announces-first-quarter-2018-results-300646591.html
SOURCE Castlight Health, Inc.