Benefitfocus, Inc. (NASDAQ:
BNFT), an industry-leading benefits technology platform
that simplifies benefits administration for employers, health plans
and brokers, today announces its third quarter
2020 financial results.
Highlights
include:
- Exceeded guidance for revenue and adjusted EBITDA
- Enabled key customer implementations:-- Successful first open
enrollment for University of Texas System-- Three new large health
plan customers initiated use of the company’s end-to-end, quote to
pay solution
- Added new benefit catalog suppliers:-- Financial wellness
partners, Lincoln Financial Group and PayActive-- Family planning
and reproductive health innovator, Natalist
- Delivered enhanced digital resources for benefits shopping
experience and employee communications
“I am pleased to report exceptional third
quarter results and am convinced we have the ability to unlock
substantial shareholder value,” said Steve Swad, president and
chief executive officer of Benefitfocus. “Achieving our
enhanced value creation goal is based on three key priorities:
- First is customer centricity; our
team is 100% focused right now on the most important promise we
make to our customers, which is to deliver a successful open
enrollment.
- Second is to improve profitability
and become the most efficient and best performing company in our
industry.
- And third is a focus on three key
strategic areas – enrollment, engagement and data – to drive
industry leadership and future growth.”
Alpana Wegner, chief financial officer, said,
“Benefitfocus exceeded the high end of our guidance for
revenue and adjusted EBITDA. This financial performance
was driven primarily by the decisive cost-reduction
actions initiated earlier this year in response to
the pandemic, and efficiencies from our investments
in automation and process improvements. As we execute on our three
key priorities, we expect to continue to improve profitability
and invest in future
growth opportunities.”
Third Quarter
2020 Financial
Highlights
Revenue
- Total revenue
was $63.6 million, down 11% compared to the third quarter of
2019.
- Software
services was $50.6 million, 7% lower compared to the third quarter
of 2019. Software services comprise subscription and platform
revenue.-- Subscription revenue was $45.0 million, a decrease of
10% compared to the third quarter of 2019.-- Platform revenue was
$5.6 million, an increase of 36% compared to the third quarter of
2019.
- Professional
services revenue was $13.0 million, down 26% compared to the third
quarter of 2019.
Net Loss
- GAAP net loss
was ($4.4) million, compared to ($12.6) million in the third
quarter of 2019. GAAP net loss per share was ($0.19), based on
($6.0) million net loss available to common stockholders and 32.3
million basic and diluted weighted average common shares
outstanding, compared to ($0.38) for the third quarter of 2019,
based on ($12.6) million net loss available to common stockholders
and 32.7 million basic and diluted weighted average common shares
outstanding.
Non-GAAP Net
Loss, Adjusted
EBITDA and Free Cash Flow
- Non-GAAP net
loss was ($1.1) million compared to ($7.5) million in the third
quarter of 2019. Non-GAAP net loss per share was ($0.08) and
($0.23) in the third quarter of 2020 and 2019, respectively, based
on ($2.7) million and ($7.6) million net loss available to common
stockholders and 32.3 million and 32.7 million basic and fully
diluted weighted average common shares outstanding for the third
quarter of 2020 and 2019, respectively.
- Adjusted EBITDA
was $10.5 million, compared to $2.9 million in the third quarter of
2019.
- Free cash flow
was $11.3 million, compared to ($6.3) in the third quarter of
2019.
See important disclosures about non-GAAP
measures, and a reconciliation of them to GAAP, below.
Balance Sheet
- Cash and cash
equivalents and marketable securities at September 30, 2020 totaled
$176.0 million, compared to $183.5 million at the end of the second
quarter of 2020.
- During the third
quarter of 2020, we repurchased $18.8 million of our convertible
senior notes at a cost of approximately $14.6 million, which
resulted in a gain of $1.1 million.
Business Outlook
Based on information available as of November 5,
2020, Benefitfocus is providing guidance for the fourth quarter and
maintaining full year 2020 guidance as indicated below.
Fourth Quarter
2020:
- Total revenue is
expected to be in the range of $68.1 million to $78.1 million.
- Non-GAAP net
income is expected to be between zero and $5 million, or ($0.05)
per share based on 32.3 million basic shares outstanding and $0.08
per share based on 35.0 million diluted weighted average common
shares outstanding based on a range of between ($1.6) million net
loss to $3.0 million net income available to common
shareholders.
- Adjusted EBITDA
is expected to be in the range of $11.2 million to $16.2
million.
Full Year 2020:
- Total revenue is
expected to be in the range of $260 million to $270 million.
- Non-GAAP net
loss is expected to be in the range of ($16.0) million to ($11.0)
million, or ($0.59) to ($0.44) per share, based on 32.3 million
basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA
is expected to be in the range of $35 million to $40 million.
- Free cash flow
is expected to be in the range of $10 million to $20 million.
Adjusted EBITDA and free cash flow guidance
excludes the impact of restructuring charges.
Management has not reconciled forward-looking
non-GAAP net income, non-GAAP net loss, adjusted EBITDA or free
cash flow to their most directly comparable GAAP measure of GAAP
net income, GAAP net loss or GAAP operating cash flows. This is
because we cannot predict with reasonable certainty the ultimate
outcome of the various necessary GAAP components of such
reconciliations, including, for example, those related to
compensation, acquisition transactions and integration, or others
that may arise during the year, without unreasonable effort. These
components and other factors could materially impact the amount of
the future directly comparable GAAP measures, which may differ
significantly from their non-GAAP counterparts. See below for
additional important disclosures regarding our non-GAAP financial
measures.
Conference Call Details:
In conjunction with this
announcement, Benefitfocus will host a conference call to
discuss the company’s financial results and business outlook
on Thursday, November 5, 2020, at 5:00 p.m. ET. To access
this call, dial (800) 738-1032 (domestic) or (212) 231-2935
(international). A live webcast of the conference call will be
available on the Investor Relations page of the company’s website
at http://investor.benefitfocus.com/. After the conference
call, a replay will be available until November 12, 2020, and
can be accessed by dialing (844) 512-2921 (domestic) or (412)
317-6671 (international) with passcode 21971109.
About
Benefitfocus
Benefitfocus (NASDAQ: BNFT) unifies the entire
U.S. benefits industry on a single technology platform to protect
consumers' health, wealth, property and lifestyle. Our powerful
cloud-based software, data-driven insights and
thoughtfully-designed services, enable employers, insurance
brokers, carriers and suppliers to simplify the complexity of
benefits administration and 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/income, net loss/income 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/income and net loss/income per common share exclude
stock-based compensation expenses, amortization of
acquisition-related intangible assets, transaction and
acquisition-related costs expensed, if any, restructuring charges,
if any, gain or loss on extinguishment of debt, 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, transaction and acquisition-related costs expensed,
restructuring charges, gain or loss on extinguishment of debt, and
costs not core to our business. We define free cash flow as cash
used in operating activities less capital expenditures, adjusted to
eliminate restructuring charges. Beginning in the third quarter of
2020, we revised our definitions of non-GAAP net loss/income and
net loss/income per common share and adjusted EBITDA to also
exclude gain or loss of extinguishment of debt. The revisions to
these definitions had no impact on our reported non-GAAP net
loss/income and net loss/income per common share and adjusted
EBITDA for periods prior to the three months ended September 30,
2020. 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: volatility and uncertainty in the global
economy and financial markets in light of the evolving COVID-19
pandemic and uncertainties arising from the recent U.S. elections;
our continuing losses and need to achieve GAAP profitability;
fluctuations in our financial results; our ability to maintain our
culture, retain and motivate qualified personnel; the immature and
volatile market for our products and services; risks related to
changing healthcare and other applicable regulations; risks
associated with acquisitions; cyber-security risks; 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.
Source: Benefitfocus, Inc.
|
Benefitfocus, Inc. |
Unaudited Consolidated Statements of Operations and
Comprehensive Loss |
(in thousands, except share and per share data) |
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
63,583 |
|
|
$ |
71,665 |
|
|
$ |
191,911 |
|
|
$ |
208,543 |
|
Cost of revenue(1)(2)(3) |
|
30,113 |
|
|
|
35,588 |
|
|
|
94,422 |
|
|
|
101,242 |
|
Gross profit |
|
33,470 |
|
|
|
36,077 |
|
|
|
97,489 |
|
|
|
107,301 |
|
Operating
expenses:(1)(2)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
12,405 |
|
|
|
18,527 |
|
|
|
39,863 |
|
|
|
57,464 |
|
Research and development |
|
11,439 |
|
|
|
14,088 |
|
|
|
34,252 |
|
|
|
41,639 |
|
General and administrative |
|
9,424 |
|
|
|
10,772 |
|
|
|
29,320 |
|
|
|
34,353 |
|
Restructuring costs |
|
– |
|
|
|
– |
|
|
|
5,616 |
|
|
|
– |
|
Total operating expenses |
|
33,268 |
|
|
|
43,387 |
|
|
|
109,051 |
|
|
|
133,456 |
|
Loss from operations |
|
202 |
|
|
|
(7,310 |
) |
|
|
(11,562 |
) |
|
|
(26,155 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
40 |
|
|
|
673 |
|
|
|
563 |
|
|
|
2,095 |
|
Interest expense |
|
(5,771 |
) |
|
|
(5,926 |
) |
|
|
(17,524 |
) |
|
|
(17,577 |
) |
Gain on repurchase of convertible senior notes |
|
1,138 |
|
|
|
– |
|
|
|
1,138 |
|
|
|
– |
|
Other (expense) income |
|
1 |
|
|
|
3 |
|
|
|
8 |
|
|
|
(61 |
) |
Total other expense, net |
|
(4,592 |
) |
|
|
(5,250 |
) |
|
|
(15,815 |
) |
|
|
(15,543 |
) |
Loss before income taxes |
|
(4,390 |
) |
|
|
(12,560 |
) |
|
|
(27,377 |
) |
|
|
(41,698 |
) |
Income tax expense |
|
6 |
|
|
|
17 |
|
|
|
17 |
|
|
|
26 |
|
Net loss |
|
(4,396 |
) |
|
|
(12,577 |
) |
|
|
(27,394 |
) |
|
|
(41,724 |
) |
Preferred dividends |
|
(1,600 |
) |
|
|
– |
|
|
|
(2,062 |
) |
|
|
– |
|
Net loss available to common
stockholders |
$ |
(5,996 |
) |
|
$ |
(12,577 |
) |
|
$ |
(29,456 |
) |
|
$ |
(41,724 |
) |
Comprehensive loss |
$ |
(5,996 |
) |
|
$ |
(12,577 |
) |
|
$ |
(29,456 |
) |
|
$ |
(41,724 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.19 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.91 |
) |
|
$ |
(1.29 |
) |
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
32,263,876 |
|
|
|
32,703,723 |
|
|
|
32,320,201 |
|
|
|
32,460,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based compensation
included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
1,304 |
|
|
$ |
798 |
|
|
$ |
2,604 |
|
|
$ |
2,388 |
|
Sales and marketing |
|
766 |
|
|
|
923 |
|
|
|
2,240 |
|
|
|
2,597 |
|
Research and development |
|
785 |
|
|
|
690 |
|
|
|
1,717 |
|
|
|
2,600 |
|
General and administrative |
|
1,004 |
|
|
|
2,004 |
|
|
|
4,298 |
|
|
|
6,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Amortization of acquired
intangible assets included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
$ |
321 |
|
|
$ |
305 |
|
|
$ |
961 |
|
|
$ |
712 |
|
Sales and marketing |
|
82 |
|
|
|
97 |
|
|
|
256 |
|
|
|
246 |
|
Research and development |
|
119 |
|
|
|
118 |
|
|
|
342 |
|
|
|
289 |
|
General and administrative |
|
46 |
|
|
|
49 |
|
|
|
146 |
|
|
|
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Transaction and
acquisition-related costs expensed included in above line
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
$ |
18 |
|
|
$ |
3 |
|
|
$ |
425 |
|
|
$ |
1,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefitfocus, Inc. |
Unaudited Consolidated Balance Sheets |
(in thousands, except share and per share data) |
|
|
As ofSeptember
30,2020 |
|
|
As ofDecember
31,2019 |
|
Assets |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
108,240 |
|
|
$ |
130,976 |
|
Marketable securities |
|
67,807 |
|
|
|
– |
|
Accounts receivable, net |
|
29,899 |
|
|
|
33,754 |
|
Contract, prepaid and other current assets |
|
14,021 |
|
|
|
21,523 |
|
Total current assets |
|
219,967 |
|
|
|
186,253 |
|
Property
and equipment, net |
|
30,502 |
|
|
|
28,669 |
|
Financing lease right-of-use assets |
|
70,970 |
|
|
|
78,520 |
|
Operating lease right-of-use assets |
|
1,467 |
|
|
|
1,715 |
|
Intangible assets, net |
|
10,962 |
|
|
|
12,667 |
|
Goodwill |
|
12,857 |
|
|
|
12,857 |
|
Deferred
contract costs and other non-current assets |
|
9,987 |
|
|
|
11,002 |
|
Total assets |
$ |
356,712 |
|
|
$ |
331,683 |
|
Liabilities and stockholders' deficit |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
2,475 |
|
|
$ |
9,563 |
|
Accrued expenses |
|
8,116 |
|
|
|
10,526 |
|
Accrued compensation and benefits |
|
15,736 |
|
|
|
15,246 |
|
Deferred revenue, current portion |
|
28,239 |
|
|
|
33,429 |
|
Lease liabilities and financing obligations, current portion |
|
6,297 |
|
|
|
6,871 |
|
Total current liabilities |
|
60,863 |
|
|
|
75,635 |
|
Deferred
revenue, net of current portion |
|
4,543 |
|
|
|
5,079 |
|
Convertible senior notes |
|
181,486 |
|
|
|
187,949 |
|
Lease
liabilities and financing obligations, net current portion |
|
80,885 |
|
|
|
88,572 |
|
Other
non-current liabilities |
|
3,582 |
|
|
|
92 |
|
Total liabilities |
|
331,359 |
|
|
|
357,327 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Redeemable preferred stock: |
|
|
|
|
|
|
|
Series A preferred stock, par value $0.001, 5,000,000 shares
authorized, 1,777,778 and 0 shares issued and outstanding at
September 30, 2020 and December 31, 2019, respectively, liquidation
preference $45 per share as of September 30, 2020 |
|
79,193 |
|
|
|
– |
|
Stockholders' deficit: |
|
|
|
|
|
|
|
Common stock, par value $0.001, 50,000,000 shares authorized,
32,288,044 and 32,788,980 shares issued and outstanding at
September 30, 2020 and December 31, 2019, respectively |
|
32 |
|
|
|
33 |
|
Additional paid-in capital |
|
425,283 |
|
|
|
426,025 |
|
Accumulated deficit |
|
(479,155 |
) |
|
|
(451,702 |
) |
Total stockholders' deficit |
|
(53,840 |
) |
|
|
(25,644 |
) |
Total liabilities, redeemable preferred stock and stockholders'
deficit |
$ |
356,712 |
|
|
$ |
331,683 |
|
|
|
|
|
|
|
|
|
Benefitfocus, Inc. |
Unaudited Consolidated Statements of Cash
Flows |
(in thousands) |
|
|
Nine Months EndedSeptember
30, |
|
|
2020 |
|
|
2019 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net loss |
$ |
(27,394 |
) |
|
$ |
(41,724 |
) |
Adjustments to reconcile net loss to net cash and
cash equivalents used in operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
18,479 |
|
|
|
16,629 |
|
Stock-based compensation expense |
|
10,859 |
|
|
|
14,501 |
|
Accretion of interest on convertible senior notes |
|
8,834 |
|
|
|
8,377 |
|
Interest accrual on finance lease liabilities |
|
71 |
|
|
|
25 |
|
Rent expense less than payments |
|
(24 |
) |
|
|
(6 |
) |
Non-cash interest income for short-term investments |
|
16 |
|
|
|
– |
|
Gain on extinguishment of debt |
|
(1,138 |
) |
|
|
– |
|
Provision for doubtful accounts |
|
111 |
|
|
|
108 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable, net |
|
3,685 |
|
|
|
(12,791 |
) |
Accrued interest on short-term investments |
|
(38 |
) |
|
|
– |
|
Contract, prepaid and other current assets |
|
7,502 |
|
|
|
1,282 |
|
Deferred costs and other non-current assets |
|
1,014 |
|
|
|
3,746 |
|
Accounts payable and accrued expenses |
|
(9,157 |
) |
|
|
(642 |
) |
Accrued compensation and benefits |
|
490 |
|
|
|
(1,524 |
) |
Deferred revenue |
|
(5,726 |
) |
|
|
(11,427 |
) |
Other non-current liabilities |
|
3,490 |
|
|
|
(69 |
) |
Net cash and cash equivalents
provided by (used in) operating activities |
|
11,074 |
|
|
|
(23,515 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
|
Purchases of short term investments held to maturity |
|
(67,785 |
) |
|
|
– |
|
Business combination, net of cash acquired |
|
– |
|
|
|
(20,914 |
) |
Purchases of property and equipment |
|
(9,739 |
) |
|
|
(10,604 |
) |
Net cash and cash equivalents
used in investing activities |
|
(77,524 |
) |
|
|
(31,518 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
|
Draws on revolving line of credit |
|
10,000 |
|
|
|
– |
|
Payments on revolving line of credit |
|
(10,000 |
) |
|
|
– |
|
Repurchase of convertible senior notes |
|
(14,619 |
) |
|
|
– |
|
Payments of debt issuance costs |
|
(154 |
) |
|
|
(357 |
) |
Cancellation of convertible senior notes capped call hedge |
|
26 |
|
|
|
– |
|
Proceeds from issuance of preferred stock, net of issuance
costs |
|
79,192 |
|
|
|
– |
|
Payments of preferred dividends |
|
(2,062 |
) |
|
|
– |
|
Repurchase of common stock |
|
(9,667 |
) |
|
|
– |
|
Proceeds from exercises of stock options and ESPP |
|
513 |
|
|
|
305 |
|
Payments on financing obligations |
|
(635 |
) |
|
|
(1,032 |
) |
Payments of principal on finance lease liabilities |
|
(8,880 |
) |
|
|
(4,112 |
) |
Net cash and cash equivalents
provided by (used in) financing activities |
|
43,714 |
|
|
|
(5,196 |
) |
Net decrease in cash
and cash equivalents |
|
(22,736 |
) |
|
|
(60,229 |
) |
Cash and cash equivalents,
beginning of period |
|
130,976 |
|
|
|
190,928 |
|
Cash and cash
equivalents, end of period |
$ |
108,240 |
|
|
$ |
130,699 |
|
|
Benefitfocus, Inc. |
Unaudited Reconciliation of GAAP to Non-GAAP
Measures |
(in thousands, except share and per share date) |
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Reconciliation from Gross Profit to Non-GAAP Gross
Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
33,470 |
|
|
$ |
36,077 |
|
|
$ |
97,489 |
|
|
$ |
107,301 |
|
Amortization of acquired intangible assets |
|
321 |
|
|
|
305 |
|
|
|
961 |
|
|
|
712 |
|
Stock-based compensation expense |
|
1,304 |
|
|
|
798 |
|
|
|
2,604 |
|
|
|
2,388 |
|
Total net adjustments |
|
1,625 |
|
|
|
1,103 |
|
|
|
3,565 |
|
|
|
3,100 |
|
Non-GAAP gross profit |
$ |
35,095 |
|
|
$ |
37,180 |
|
|
$ |
101,054 |
|
|
$ |
110,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Operating Income (Loss) to Non-GAAP Operating Income
(Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
202 |
|
|
$ |
(7,310 |
) |
|
$ |
(11,562 |
) |
|
$ |
(26,155 |
) |
Amortization of acquired intangible assets |
|
568 |
|
|
|
569 |
|
|
|
1,705 |
|
|
|
1,364 |
|
Stock-based compensation expense |
|
3,859 |
|
|
|
4,415 |
|
|
|
10,859 |
|
|
|
14,501 |
|
Transaction and acquisition-related costs expensed |
|
18 |
|
|
|
3 |
|
|
|
425 |
|
|
|
1,005 |
|
Costs not core to our business |
|
— |
|
|
|
63 |
|
|
|
— |
|
|
|
649 |
|
Total net adjustments |
|
4,445 |
|
|
|
5,050 |
|
|
|
12,989 |
|
|
|
17,519 |
|
Non-GAAP operating income (loss) |
$ |
4,647 |
|
|
$ |
(2,260 |
) |
|
$ |
1,427 |
|
|
$ |
(8,636 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Net Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(4,396 |
) |
|
$ |
(12,577 |
) |
|
$ |
(27,394 |
) |
|
$ |
(41,724 |
) |
Depreciation |
|
3,774 |
|
|
|
3,848 |
|
|
|
11,496 |
|
|
|
11,505 |
|
Amortization of software development costs |
|
2,032 |
|
|
|
1,263 |
|
|
|
5,278 |
|
|
|
3,760 |
|
Amortization of acquired intangible assets |
|
568 |
|
|
|
569 |
|
|
|
1,705 |
|
|
|
1,364 |
|
Interest income |
|
(40 |
) |
|
|
(673 |
) |
|
|
(563 |
) |
|
|
(2,095 |
) |
Interest expense |
|
5,771 |
|
|
|
5,926 |
|
|
|
17,524 |
|
|
|
17,577 |
|
Income tax expense |
|
6 |
|
|
|
17 |
|
|
|
17 |
|
|
|
26 |
|
Stock-based compensation expense |
|
3,859 |
|
|
|
4,415 |
|
|
|
10,859 |
|
|
|
14,501 |
|
Transaction and acquisition-related costs expensed |
|
18 |
|
|
|
3 |
|
|
|
425 |
|
|
|
1,005 |
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
5,616 |
|
|
|
— |
|
Gain on repurchase of convertible senior notes |
|
(1,138 |
) |
|
|
— |
|
|
|
(1,138 |
) |
|
|
— |
|
Costs not core to our business |
|
— |
|
|
|
63 |
|
|
|
— |
|
|
|
649 |
|
Total net adjustments |
|
14,850 |
|
|
|
15,431 |
|
|
|
51,219 |
|
|
|
48,292 |
|
Adjusted EBITDA |
$ |
10,454 |
|
|
$ |
2,854 |
|
|
$ |
23,825 |
|
|
$ |
6,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Net Loss to Non-GAAP Net Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(4,396 |
) |
|
$ |
(12,577 |
) |
|
$ |
(27,394 |
) |
|
$ |
(41,724 |
) |
Amortization of acquired intangible assets |
|
568 |
|
|
|
569 |
|
|
|
1,705 |
|
|
|
1,364 |
|
Stock-based compensation expense |
|
3,859 |
|
|
|
4,415 |
|
|
|
10,859 |
|
|
|
14,501 |
|
Transaction and acquisition-related costs expensed |
|
18 |
|
|
|
3 |
|
|
|
425 |
|
|
|
1,005 |
|
Gain on repurchase of convertible senior notes |
|
(1,138 |
) |
|
|
— |
|
|
|
(1,138 |
) |
|
|
— |
|
Costs not core to our business |
|
— |
|
|
|
63 |
|
|
|
— |
|
|
|
649 |
|
Total net adjustments |
|
3,307 |
|
|
|
5,050 |
|
|
|
11,851 |
|
|
|
17,519 |
|
Non-GAAP net loss |
$ |
(1,089 |
) |
|
$ |
(7,527 |
) |
|
$ |
(15,543 |
) |
|
$ |
(24,205 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss |
$ |
(1,089 |
) |
|
$ |
(7,527 |
) |
|
$ |
(15,543 |
) |
|
$ |
(24,205 |
) |
Preferred dividends |
|
(1,600 |
) |
|
|
— |
|
|
|
(2,062 |
) |
|
|
— |
|
Non-GAAP net loss available to common stockholders |
$ |
(2,689 |
) |
|
$ |
(7,527 |
) |
|
$ |
(17,605 |
) |
|
$ |
(24,205 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic and diluted |
|
32,263,876 |
|
|
|
32,703,723 |
|
|
|
32,320,201 |
|
|
|
32,460,494 |
|
Shares used in computing non-GAAP net loss per share - basic and
diluted |
|
32,263,876 |
|
|
|
32,703,723 |
|
|
|
32,320,201 |
|
|
|
32,460,494 |
|
Non-GAAP net loss per common share - basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash
Flows from Operations to Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash and cash equivalents provided by (used in) operating
activities |
$ |
13,208 |
|
|
$ |
(3,054 |
) |
|
$ |
11,074 |
|
|
$ |
(23,515 |
) |
Purchases of property and equipment |
|
(2,664 |
) |
|
|
(3,203 |
) |
|
|
(9,739 |
) |
|
|
(10,604 |
) |
Cash paid for restructuring costs |
|
745 |
|
|
|
— |
|
|
|
5,201 |
|
|
|
— |
|
Total net adjustments |
|
(1,919 |
) |
|
|
(3,203 |
) |
|
|
(4,538 |
) |
|
|
(10,604 |
) |
Free Cash Flow |
$ |
11,289 |
|
|
$ |
(6,257 |
) |
|
$ |
6,536 |
|
|
$ |
(34,119 |
) |
Benefitfocus, Inc.843-981-8898pr@benefitfocus.com Investor
Relations:Patti Leahy843-981-8899ir@benefitfocus.com
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