Total revenue of $42.7 million grew 32% year-over-year
Added 94 net new large employer customers
Charleston, S.C. – August 3, 2015 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading provider of cloud- based benefits software solutions, today announced its second quarter 2015 financial results.
“Benefitfocus reported strong second quarter financial results that exceeded the high end of our guidance on both the top and bottom line,” said Shawn Jenkins, Chief Executive Officer of Benefitfocus. “We saw tremendous demand for our cloud-based platform in what is traditionally the most active quarter in the benefits market, highlighted by a record 94 net new large employer customers.”
Jenkins added, “We also had exciting early success with our recently introduced new offerings for the employer market, including BenefitStore and Advanced Analytics, as well as our partnership with SAP. Our expanding product portfolio and distribution reach are helping to further solidify our strong leadership position in the cloud-based benefits administration market. We believe we are well positioned to continue to drive strong growth, improve profitability and generate significant value for our shareholders over time.”
Second Quarter 2015 Financial Highlights
Revenue
- Total revenue was $42.7 million, an increase of 32% compared to the second quarter of 2014.
- Software revenue was $38.1 million, an increase of 28% compared to the second quarter of 2014.
- Professional services revenue was $4.6 million, an increase of 82% compared to the second quarter of 2014.
- Employer revenue was $20.8 million, an increase of 45% compared to the second quarter of 2014.
- Insurance carrier revenue was $21.9 million, an increase of 22% compared to the second quarter of 2014.
Non-GAAP Net Loss and Adjusted EBITDA
- Non-GAAP net loss was ($15.3) million, compared to ($16.3) million in the second quarter of 2014. Non-GAAP net loss per diluted share was ($0.53), based on 28.6 million basic and diluted weighted average common shares outstanding, compared to ($0.65) for the second quarter of 2014, based on 25.2 million basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA was ($10.7) million, compared to ($13.5) million in the second quarter of 2014.
- See important disclosures about non-GAAP measures, and a reconciliation of them to GAAP, below.
Balance Sheet and Cash Flow
- Cash, cash equivalents and marketable securities at June 30, 2015 totaled $88.5 million, compared to $107.4 million at the end of the first quarter of 2015.
Second Quarter and Recent Business Highlights
- Ended the quarter with 662 large employer customers, up from 488 at the end of the year ago period and 568 at the end of the first quarter of 2015, and 52 insurance carrier customers, up from 43 at the end of the year ago period and consistent with the end of the first quarter of 2015.
- New employer customer relationships added during the quarter include American Eagle, Arctic Slope Regional Corporation, Biaggi’s Ristorante Italianio, Credit Suisse Securities, Education Corporation of America, Gate Petroleum, Jim Beam Brands, Smashburger, and The University of Dayton, among others.
- Announced the launch of the summer software release, which included more than 400 new features and enhancements. Among the updates in this release are an enhanced benefits participation widget, additional user metrics, and new options to quickly filter, download, delete and share automated reports.
- Introduced a new online customer engagement portal, BENEFITFOCUS® One Place 365, as part of the summer software release. One Place 365 provides benefits management and software solutions professionals with a secure channel to align and manage their account information, share documents, connect with support teams, and access new software updates.
- To complement the new One Place 365 portal, Benefitfocus launched One Place Local, a series of events held around the country that allows customers to establish peer-to-peer networks and provide them with a source of best practices, software training and industry discussions. Since the launch, Benefitfocus has visited Seattle and Atlanta with scheduled visits in New York, Boston, and Philadelphia over the next several months.
Business Outlook
Based on information available as of August 3, 2015, Benefitfocus is providing guidance for the third quarter and updating full year 2015 as indicated below.
Third Quarter 2015:
- Total revenue is expected to be in the range of $42.9 million to $43.4 million.
- Non-GAAP net loss is expected to be in the range of ($15.7) million to ($15.2) million, or ($0.55) to ($0.53) per share, based on 28.7 million basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA is expected to be in the range of ($10.6) million to ($10.1) million.
Full Year 2015:
- Total revenue is expected to be in the range of $174.5 million to $176.5 million.
- Non-GAAP net loss is expected to be in the range of ($56.5) million to ($54.5) million, or ($2.00) to ($1.93) per share, based on 28.2 million basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA is expected to be in the range of ($37.0) million to ($35.0) million.
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