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 2021 financial
results.
Third quarter financial
highlights:
- Revenue of $62.0 million exceeds guidance
- GAAP EPS of ($0.59) vs. ($0.19) in third quarter 2020
- Non-GAAP EPS of ($0.19) exceeds guidance
- GAAP net loss of ($18.1) million vs. ($4.4) million in third
quarter 2020
- Adjusted EBITDA of $6.7 million, above midpoint of
guidance
- Operating cash flow of $9.4 million and free cash flow of $6.9
million
- De-levered balance sheet and improved capital structure through
convertible note repurchase
- Cash and marketable securities of $94.5 million, down $98.7
million from prior quarter primarily reflecting repurchase of
convertible notes
Other recent highlights:
- Selected by State of Wisconsin Department of Employee Trust
Funds for Employee Insurance Administration Modernization for
239,000 members
- Selected by State of Nevada Public Employees’ Benefits Program
(PEBM) for Employee Enrollment Benefits Management System
Modernization for 72,000 members
- Achieved HITRUST CSF® Certification to Enhance Third-Party
Privacy, Security and Compliance for Customer Data
- Added Full Suite of Voluntary Insurance Offerings from American
Public Life to Benefit Catalog
“Our entire team is working with a great sense
of urgency and discipline to deliver enhanced service excellence
for our customers during this year’s open enrollment,” said Matt
Levin, president and chief executive officer. “I expect this
heightened focus, combined with the commitment and deep experience
of our team, will result in stellar performance for our
stakeholders including our customers, partners and
shareholders.”
“I am pleased with our performance this quarter
as we again delivered on our financial commitments,” said Alpana
Wegner, chief financial officer. “Our strong cash position enabled
us to opportunistically de-lever the balance sheet while preserving
flexibility to invest strategically and advance our growth
strategy.”
Third Quarter 2021 Financial
Highlights
Revenue
- Total revenue
was $62.0 million, down 2% compared to the third quarter of
2020.
- Software
services was $50.9 million, up 1% compared to the third quarter of
2020. Software services is comprised of subscription and platform
revenue.
- Subscription
revenue was $44.8 million, relatively flat compared to the third
quarter of 2020.
- Platform revenue
was $6.2 million, up 10% compared to the third quarter of
2020.
- Professional
services revenue was $11.1 million, down 15% compared to the third
quarter of 2020.
Net Loss
- GAAP net loss
available to common stockholders was ($19.7) million, compared to
($6.0) million in the third quarter of 2020. GAAP net loss per
share was ($0.59), based on 33.4 million basic and diluted weighted
average common shares outstanding, compared to ($0.19) for the
third quarter of 2020, based on 32.3 million basic and diluted
weighted average common shares outstanding.
Non-GAAP Net Loss, Adjusted EBITDA and
Free Cash Flow
- Non-GAAP net
loss available to common stockholders was ($6.3) million compared
to ($2.7) million in the third quarter of 2020. Non-GAAP net loss
per share was ($0.19) based on 33.4 million basic and diluted
weighted average common shares outstanding, compared to ($0.08) in
the third quarter of 2020, based on 32.3 million basic and diluted
weighted average common shares outstanding.
- Adjusted EBITDA
was $6.7 million, compared to $10.5 million in the third quarter of
2020.
- Free cash flow
was $6.9 million, compared to $11.3 million in the third quarter of
2020.
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, 2021 totaled
$94.5 million, compared to $193.2 million at the end of the second
quarter of 2021 primarily reflecting the repurchase of
approximately $100.2 million worth of our convertible notes
- The full $50.0
million line of credit remains available to the company.
Business Outlook
Based on information available as of November 3,
2021, Benefitfocus is providing guidance for the fourth quarter and
full year as indicated below.
Fourth Quarter 2021
- Total revenue is
expected to be in the range of $66 million to $72 million.
- Adjusted EBITDA
is expected to be in the range of $13 million to $19 million.
- Non-GAAP net
(loss) income available to common stockholders is expected to be
between ($0.7) million and $5.3 million, or between ($0.02) per
share based on 33.4 million basic and diluted weighted average
shares outstanding and $0.15 per share based on 34.6 million
diluted weighted average shares outstanding.
Full Year 2021
The company is reiterating guidance previously
provided for Full Year 2021 as follows:
- Total revenue is
expected to be in the range of $254 million to $260 million.
- Adjusted EBITDA
is expected to be in the range of $44 million to $50 million.
- Free cash flow
is expected to be in the range of $20 million to $26 million.
Adjusted EBITDA and free cash flow guidance
excludes the impact of restructuring and impairment charges.
Management has not reconciled forward-looking
non-GAAP net loss, adjusted EBITDA or free cash flow to their most
directly comparable GAAP measure of 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 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 Wednesday, November 3, 2021, at 5:00 p.m. ET. To
access this call, dial (877) 407-9208 (domestic) or +1 (201)
493-6784 (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 10,
2021, and can be accessed by dialing (844) 512-2921 (domestic) or
+1 (412) 317-6671 (international) with passcode 13724236.
About Benefitfocus
Benefitfocus (NASDAQ: BNFT) unifies the
entire benefits industry through innovative technology solutions
that bring efficiency, cost savings and simplicity to employee
benefits administration. Our powerful cloud-based software,
data-driven insights and thoughtfully designed services help
employers, insurance brokers, health plans and suppliers address
the complexity of benefits enrollment and engagement, while
bringing easier access to health, wealth and lifestyle products
through a world-class benefits experience. Our mission is
simple: to improve lives with benefits.
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, expense related to the
impairment of goodwill, intangible assets and long-lived assets,
gain or loss on extinguishment of debt, and costs not core to our
business. 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, intangible assets and
long-lived assets, transaction and acquisition-related costs
expensed, restructuring costs, gain or loss on extinguishment of
debt, and costs not core to our business. We define free cash flow
as cash provided by or used in operating activities less capital
expenditures, adjusted to eliminate restructuring costs. 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;
our ability to maintain our culture and recruit, integrate and
retain qualified personnel, including on our board of directors;
our ability to compete effectively and implement our growth
strategy; the need to innovate and provide useful products and
services; risks related to changing healthcare and other applicable
regulations; the immature and volatile nature of the market for our
products and services; privacy; security and other risks associated
with our business; management of growth; volatility and uncertainty
in the global economy and financial markets in light of the
evolving COVID-19 pandemic; 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, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
62,026 |
|
|
$ |
63,583 |
|
|
$ |
187,993 |
|
|
$ |
191,911 |
|
Cost of revenue(1)(2) |
|
|
31,247 |
|
|
|
30,113 |
|
|
|
87,870 |
|
|
|
94,422 |
|
Gross profit |
|
|
30,779 |
|
|
|
33,470 |
|
|
|
100,123 |
|
|
|
97,489 |
|
Operating expenses:(1)(2)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
12,669 |
|
|
|
12,405 |
|
|
|
34,481 |
|
|
|
39,863 |
|
Research and development |
|
|
11,062 |
|
|
|
11,439 |
|
|
|
32,997 |
|
|
|
34,252 |
|
General and administrative |
|
|
12,156 |
|
|
|
9,424 |
|
|
|
39,592 |
|
|
|
29,320 |
|
Restructuring costs |
|
|
– |
|
|
|
– |
|
|
|
4,127 |
|
|
|
5,616 |
|
Total operating expenses |
|
|
35,887 |
|
|
|
33,268 |
|
|
|
111,197 |
|
|
|
109,051 |
|
Loss from operations |
|
|
(5,108 |
) |
|
|
202 |
|
|
|
(11,074 |
) |
|
|
(11,562 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
52 |
|
|
|
40 |
|
|
|
163 |
|
|
|
563 |
|
Interest expense |
|
|
(5,556 |
) |
|
|
(5,771 |
) |
|
|
(16,757 |
) |
|
|
(17,524 |
) |
(Loss) gain on repurchase of convertible senior notes |
|
|
(7,520 |
) |
|
|
1,138 |
|
|
|
(7,520 |
) |
|
|
1,138 |
|
Other income |
|
|
120 |
|
|
|
1 |
|
|
|
142 |
|
|
|
8 |
|
Total other expense, net |
|
|
(12,904 |
) |
|
|
(4,592 |
) |
|
|
(23,972 |
) |
|
|
(15,815 |
) |
Loss before income taxes |
|
|
(18,012 |
) |
|
|
(4,390 |
) |
|
|
(35,046 |
) |
|
|
(27,377 |
) |
Income tax expense |
|
|
42 |
|
|
|
6 |
|
|
|
125 |
|
|
|
17 |
|
Net loss |
|
|
(18,054 |
) |
|
|
(4,396 |
) |
|
|
(35,171 |
) |
|
|
(27,394 |
) |
Preferred dividends |
|
|
(1,600 |
) |
|
|
(1,600 |
) |
|
|
(4,800 |
) |
|
|
(2,062 |
) |
Net loss available to common
stockholders |
|
$ |
(19,654 |
) |
|
$ |
(5,996 |
) |
|
$ |
(39,971 |
) |
|
$ |
(29,456 |
) |
Comprehensive loss |
|
$ |
(18,054 |
) |
|
$ |
(4,396 |
) |
|
$ |
(35,171 |
) |
|
$ |
(27,394 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.59 |
) |
|
$ |
(0.19 |
) |
|
$ |
(1.21 |
) |
|
$ |
(0.91 |
) |
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
33,354,624 |
|
|
|
32,263,876 |
|
|
|
32,978,394 |
|
|
|
32,320,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based compensation
included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
511 |
|
|
$ |
1,304 |
|
|
$ |
1,475 |
|
|
$ |
2,604 |
|
Sales and marketing |
|
|
963 |
|
|
|
766 |
|
|
|
2,470 |
|
|
|
2,240 |
|
Research and development |
|
|
589 |
|
|
|
785 |
|
|
|
1,210 |
|
|
|
1,717 |
|
General and administrative |
|
|
2,532 |
|
|
|
1,004 |
|
|
|
5,339 |
|
|
|
4,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Amortization of acquired
intangible assets included in above line items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
332 |
|
|
$ |
321 |
|
|
$ |
1,005 |
|
|
$ |
961 |
|
Sales and marketing |
|
|
78 |
|
|
|
82 |
|
|
|
231 |
|
|
|
256 |
|
Research and development |
|
|
110 |
|
|
|
119 |
|
|
|
336 |
|
|
|
342 |
|
General and administrative |
|
|
48 |
|
|
|
46 |
|
|
|
133 |
|
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Transaction and
acquisition-related costs expensed included in above line
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
$ |
80 |
|
|
$ |
18 |
|
|
$ |
240 |
|
|
$ |
425 |
|
Benefitfocus,
Inc.Unaudited Consolidated Balance
Sheets(in thousands, except share and per share data)
|
|
As ofSeptember
30,2021 |
|
|
As ofDecember
31,2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,589 |
|
|
$ |
90,706 |
|
Marketable securities |
|
|
81,899 |
|
|
|
95,085 |
|
Accounts receivable, net |
|
|
20,368 |
|
|
|
22,240 |
|
Contract, prepaid and other current assets |
|
|
17,239 |
|
|
|
21,354 |
|
Total current assets |
|
|
132,095 |
|
|
|
229,385 |
|
Property and equipment, net |
|
|
27,259 |
|
|
|
29,701 |
|
Financing lease right-of-use
assets |
|
|
58,503 |
|
|
|
68,670 |
|
Operating lease right-of-use
assets |
|
|
925 |
|
|
|
1,107 |
|
Intangible assets, net |
|
|
8,688 |
|
|
|
10,393 |
|
Goodwill |
|
|
12,857 |
|
|
|
12,857 |
|
Deferred contract costs and other
non-current assets |
|
|
12,078 |
|
|
|
10,259 |
|
Total assets |
|
$ |
252,405 |
|
|
$ |
362,372 |
|
Liabilities, redeemable
preferred stock and stockholders' deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
7,729 |
|
|
$ |
2,160 |
|
Accrued expenses |
|
|
8,155 |
|
|
|
6,262 |
|
Accrued compensation and benefits |
|
|
16,993 |
|
|
|
19,129 |
|
Deferred revenue, current portion |
|
|
26,113 |
|
|
|
27,782 |
|
Lease liabilities and financing obligations, current portion |
|
|
7,226 |
|
|
|
5,959 |
|
Total current liabilities |
|
|
66,216 |
|
|
|
61,292 |
|
Deferred revenue, net of current
portion |
|
|
2,651 |
|
|
|
4,422 |
|
Convertible senior notes |
|
|
105,637 |
|
|
|
184,308 |
|
Lease liabilities and financing
obligations, net current portion |
|
|
77,265 |
|
|
|
79,282 |
|
Other non-current
liabilities |
|
|
2,661 |
|
|
|
2,470 |
|
Total liabilities |
|
|
254,430 |
|
|
|
331,774 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Redeemable preferred stock: |
|
|
|
|
|
|
|
|
Series A preferred stock, par value $0.001, 5,000,000 shares
authorized, 1,777,778 and 1,777,778 shares issued and outstanding
at September 30, 2021 and December 31, 2020, respectively,
liquidation preference $45 per share as of September 30, 2021 and
December 31, 2020, respectively |
|
|
79,193 |
|
|
|
79,193 |
|
Stockholders' deficit: |
|
|
|
|
|
|
|
|
Common stock, par value $0.001, 95,000,000 and 50,000,000 shares
authorized, 33,386,994 and 32,327,439 issued and outstanding at
September 30, 2021 and December 31, 2020, respectively |
|
|
33 |
|
|
|
32 |
|
Additional paid-in capital |
|
|
429,978 |
|
|
|
427,431 |
|
Accumulated deficit |
|
|
(511,229 |
) |
|
|
(476,058 |
) |
Total stockholders' deficit |
|
|
(81,218 |
) |
|
|
(48,595 |
) |
Total liabilities, redeemable preferred stock and stockholders'
deficit |
|
$ |
252,405 |
|
|
$ |
362,372 |
|
|
|
|
|
|
|
|
|
|
Benefitfocus,
Inc.Unaudited Consolidated Statements of Cash
Flows(in thousands)
|
|
Nine Months EndedSeptember
30, |
|
|
|
2021 |
|
|
2020 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(35,171 |
) |
|
$ |
(27,394 |
) |
Adjustments to reconcile net loss to net cash and cash equivalents
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
18,976 |
|
|
|
18,479 |
|
Stock-based compensation expense |
|
|
10,494 |
|
|
|
10,859 |
|
Accretion of interest on convertible senior notes |
|
|
8,590 |
|
|
|
8,834 |
|
Interest accrual on finance lease liabilities |
|
|
3,259 |
|
|
|
71 |
|
Rent expense less than payments |
|
|
(41 |
) |
|
|
(24 |
) |
Non-cash accretion income from investments |
|
|
741 |
|
|
|
16 |
|
Impairment or loss on disposal of right-of-use assets and property
and equipment |
|
|
4,074 |
|
|
|
– |
|
Loss (gain) on extinguishment of debt |
|
|
7,520 |
|
|
|
(1,138 |
) |
Provision for doubtful accounts |
|
|
– |
|
|
|
111 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
1,872 |
|
|
|
3,685 |
|
Accrued interest on investments |
|
|
161 |
|
|
|
(38 |
) |
Contract, prepaid and other current assets |
|
|
4,009 |
|
|
|
7,502 |
|
Deferred costs and other non-current assets |
|
|
1,238 |
|
|
|
1,014 |
|
Accounts payable and accrued expenses |
|
|
6,960 |
|
|
|
(9,157 |
) |
Accrued compensation and benefits |
|
|
(2,136 |
) |
|
|
490 |
|
Deferred revenue |
|
|
(3,441 |
) |
|
|
(5,726 |
) |
Other non-current liabilities |
|
|
191 |
|
|
|
3,490 |
|
Net cash and cash equivalents
provided by operating activities |
|
|
27,296 |
|
|
|
11,074 |
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
Purchases of investments held to maturity |
|
|
(91,361 |
) |
|
|
(67,785 |
) |
Proceeds from investments held to maturity |
|
|
100,588 |
|
|
|
– |
|
Purchases of property and equipment |
|
|
(7,454 |
) |
|
|
(9,739 |
) |
Net cash and cash equivalents
provided by (used in) investing activities |
|
|
1,773 |
|
|
|
(77,524 |
) |
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 |
|
|
(98,678 |
) |
|
|
(14,619 |
) |
Payments of debt issuance costs |
|
|
– |
|
|
|
(154 |
) |
Cancellation of convertible senior notes capped call hedge |
|
|
98 |
|
|
|
26 |
|
Proceeds from issuance of preferred stock, net of issuance
costs |
|
|
– |
|
|
|
79,192 |
|
Payments of preferred dividends |
|
|
(4,800 |
) |
|
|
(2,062 |
) |
Repurchase of common stock |
|
|
– |
|
|
|
(9,667 |
) |
Proceeds from exercises of stock options and ESPP |
|
|
322 |
|
|
|
513 |
|
Payments on financing obligations |
|
|
(226 |
) |
|
|
(635 |
) |
Payments of principal on finance lease liabilities |
|
|
(3,902 |
) |
|
|
(8,880 |
) |
Net cash and cash equivalents
(used in) provided by financing activities |
|
|
(107,186 |
) |
|
|
43,714 |
|
Net decrease in cash and
cash equivalents |
|
|
(78,117 |
) |
|
|
(22,736 |
) |
Cash and cash equivalents,
beginning of period |
|
|
90,706 |
|
|
|
130,976 |
|
Cash and cash
equivalents, end of period |
|
$ |
12,589 |
|
|
$ |
108,240 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
of non-cash investing and financing activities |
|
|
|
|
|
|
|
|
Property and equipment purchases in accounts payable and accrued
expenses |
|
$ |
945 |
|
|
$ |
– |
|
|
|
|
|
|
|
|
|
|
Benefitfocus,
Inc.Unaudited Reconciliation of GAAP to Non-GAAP
Measures(in thousands, except share and per share
data)
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Reconciliation from Gross Profit to Non-GAAP Gross
Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
30,779 |
|
|
$ |
33,470 |
|
|
$ |
100,123 |
|
|
$ |
97,489 |
|
Amortization of acquired intangible assets |
|
|
332 |
|
|
|
321 |
|
|
|
1,005 |
|
|
|
961 |
|
Stock-based compensation expense |
|
|
511 |
|
|
|
1,304 |
|
|
|
1,475 |
|
|
|
2,604 |
|
Total net adjustments |
|
|
843 |
|
|
|
1,625 |
|
|
|
2,480 |
|
|
|
3,565 |
|
Non-GAAP gross profit |
|
$ |
31,622 |
|
|
$ |
35,095 |
|
|
$ |
102,603 |
|
|
$ |
101,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Operating (Loss) Income to Non-GAAP Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
$ |
(5,108 |
) |
|
$ |
202 |
|
|
$ |
(11,074 |
) |
|
$ |
(11,562 |
) |
Amortization of acquired intangible assets |
|
|
568 |
|
|
|
568 |
|
|
|
1,705 |
|
|
|
1,705 |
|
Stock-based compensation expense |
|
|
4,595 |
|
|
|
3,859 |
|
|
|
10,494 |
|
|
|
10,859 |
|
Transaction and acquisition-related costs expensed |
|
|
80 |
|
|
|
18 |
|
|
|
240 |
|
|
|
425 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
4,003 |
|
|
|
— |
|
Costs not core to our business |
|
|
542 |
|
|
|
— |
|
|
|
4,140 |
|
|
|
— |
|
Total net adjustments |
|
|
5,785 |
|
|
|
4,445 |
|
|
|
20,582 |
|
|
|
12,989 |
|
Non-GAAP operating income |
|
$ |
677 |
|
|
$ |
4,647 |
|
|
$ |
9,508 |
|
|
$ |
1,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net
Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(18,054 |
) |
|
$ |
(4,396 |
) |
|
$ |
(35,171 |
) |
|
$ |
(27,394 |
) |
Depreciation |
|
|
3,615 |
|
|
|
3,774 |
|
|
|
10,682 |
|
|
|
11,496 |
|
Amortization of software development costs |
|
|
2,268 |
|
|
|
2,032 |
|
|
|
6,589 |
|
|
|
5,278 |
|
Amortization of acquired intangible assets |
|
|
568 |
|
|
|
568 |
|
|
|
1,705 |
|
|
|
1,705 |
|
Interest income |
|
|
(52 |
) |
|
|
(40 |
) |
|
|
(163 |
) |
|
|
(563 |
) |
Interest expense |
|
|
5,556 |
|
|
|
5,771 |
|
|
|
16,757 |
|
|
|
17,524 |
|
Income tax expense |
|
|
42 |
|
|
|
6 |
|
|
|
125 |
|
|
|
17 |
|
Stock-based compensation expense |
|
|
4,595 |
|
|
|
3,859 |
|
|
|
10,494 |
|
|
|
10,859 |
|
Transaction and acquisition-related costs expensed |
|
|
80 |
|
|
|
18 |
|
|
|
240 |
|
|
|
425 |
|
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
4,127 |
|
|
|
5,616 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
4,003 |
|
|
|
— |
|
Loss (gain) on repurchase of convertible senior notes |
|
|
7,520 |
|
|
|
(1,138 |
) |
|
|
7,520 |
|
|
|
(1,138 |
) |
Costs not core to our business |
|
|
542 |
|
|
|
— |
|
|
|
4,140 |
|
|
|
— |
|
Total net adjustments |
|
|
24,734 |
|
|
|
14,850 |
|
|
|
66,219 |
|
|
|
51,219 |
|
Adjusted EBITDA |
|
$ |
6,680 |
|
|
$ |
10,454 |
|
|
$ |
31,048 |
|
|
$ |
23,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net
Loss to Non-GAAP Net Loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(18,054 |
) |
|
$ |
(4,396 |
) |
|
$ |
(35,171 |
) |
|
$ |
(27,394 |
) |
Amortization of acquired intangible assets |
|
|
568 |
|
|
|
568 |
|
|
|
1,705 |
|
|
|
1,705 |
|
Stock-based compensation expense |
|
|
4,595 |
|
|
|
3,859 |
|
|
|
10,494 |
|
|
|
10,859 |
|
Transaction and acquisition-related costs expensed |
|
|
80 |
|
|
|
18 |
|
|
|
240 |
|
|
|
425 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
4,003 |
|
|
|
— |
|
Loss (gain) on repurchase of convertible senior notes |
|
|
7,520 |
|
|
|
(1,138 |
) |
|
|
7,520 |
|
|
|
(1,138 |
) |
Costs not core to our business |
|
|
542 |
|
|
|
— |
|
|
|
4,140 |
|
|
|
— |
|
Total net adjustments |
|
|
13,305 |
|
|
|
3,307 |
|
|
|
28,102 |
|
|
|
11,851 |
|
Non-GAAP net loss |
|
$ |
(4,749 |
) |
|
$ |
(1,089 |
) |
|
$ |
(7,069 |
) |
|
$ |
(15,543 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Non-GAAP
Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss |
|
$ |
(4,749 |
) |
|
$ |
(1,089 |
) |
|
$ |
(7,069 |
) |
|
$ |
(15,543 |
) |
Preferred dividends |
|
|
(1,600 |
) |
|
|
(1,600 |
) |
|
|
(4,800 |
) |
|
|
(2,062 |
) |
Non-GAAP net loss available to common stockholders |
|
$ |
(6,349 |
) |
|
$ |
(2,689 |
) |
|
$ |
(11,869 |
) |
|
$ |
(17,605 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic and diluted |
|
|
33,354,624 |
|
|
|
32,263,876 |
|
|
|
32,978,394 |
|
|
|
32,320,201 |
|
Shares used in computing non-GAAP net loss per share - basic and
diluted |
|
|
33,354,624 |
|
|
|
32,263,876 |
|
|
|
32,978,394 |
|
|
|
32,320,201 |
|
Non-GAAP net loss per common share - basic and diluted |
|
$ |
(0.19 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash
Flows from Operations to Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash and cash equivalents provided by operating activities |
|
$ |
9,369 |
|
|
$ |
13,208 |
|
|
$ |
27,296 |
|
|
$ |
11,074 |
|
Purchases of property and equipment |
|
|
(2,971 |
) |
|
|
(2,664 |
) |
|
|
(7,454 |
) |
|
|
(9,739 |
) |
Cash paid for restructuring costs |
|
|
502 |
|
|
|
745 |
|
|
|
1,886 |
|
|
|
5,201 |
|
Total net adjustments |
|
|
(2,469 |
) |
|
|
(1,919 |
) |
|
|
(5,568 |
) |
|
|
(4,538 |
) |
Free Cash Flow |
|
$ |
6,900 |
|
|
$ |
11,289 |
|
|
$ |
21,728 |
|
|
$ |
6,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefitfocus, Inc.843-981-8898pr@benefitfocus.com
Investor Relations:Patti
Leahy843-981-8899ir@benefitfocus.com
Benefitfocus (NASDAQ:BNFT)
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