bnft-8k_20180802.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 2, 2018

 

BENEFITFOCUS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

(State or other jurisdiction of incorporation)

 

 

 

 

001-36061

 

46-2346314

(Commission File Number)

 

(IRS Employer Identification No.)

100 Benefitfocus Way, Charleston, South Carolina 29492

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (843) 849-7476

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this Chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this Chapter).

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 


Item 2.02.   Results of Operations and Financial Condition.

On August 2, 2018, Benefitfocus, Inc. (the “Company”) issued a press release announcing its operating results for the quarter ended June 30, 2018.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.  

The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.   Financial Statements and Exhibits.

(d)   Exhibits

Exhibit No.     Description

99.1                Press release dated August 2, 2018.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

BENEFITFOCUS, INC.

 

 

 

Date: August 2, 2018

 

/s/ Jonathon E. Dussault

 

 

Jonathon E. Dussault

 

 

Chief Financial Officer

 

bnft-ex991_6.htm

 

Exhibit 99.1

Benefitfocus, Inc.

843-284-1052 ext. 3527

pr@benefitfocus.com

 

Investor Relations:

Michael Bauer

843-284-1052 ext. 6654

michael.bauer@benefitfocus.com  

 

 

Benefitfocus Announces Second Quarter 2018 Financial Results

                Total revenue of $60.6 million grew 10% year-over-year

 

Charleston, S.C. – August 2, 2018 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading cloud-based benefits management platform and services provider, today announced its second quarter 2018 financial results.

“Benefitfocus had a strong second quarter, highlighted by revenue and profitability that were above expectations,” said Ray August, President and Chief Executive Officer of Benefitfocus.  “We are pleased with our performance in the quarter, and we have a solid foundation to accelerate future recurring revenue growth.”

 

August added, “The market continues to show strong adoption of our BenefitsPlace platform, which provides a significant new revenue opportunity for Benefitfocus. For the first time, we have a breadth of benefits products to protect consumers’ health, wealth and lifestyle for every stage of life. BenefitsPlace is emerging as the industry’s platform of choice. We are making it far easier for consumers to purchase the right benefits and bring peace of mind to their families.”

 

Second Quarter 2018 Financial Highlights

Revenue

 

Total revenue was $60.6 million, an increase of 10% compared to the second quarter of 2017.

 

Software services revenue was $48.3 million, an increase of 13% compared to the second quarter of 2017.

 

Professional services revenue was $12.3 million, a decrease of 2% compared to the second quarter of 2017.

 

Employer revenue was $39.4 million, an increase of 17% compared to the second quarter of 2017.

 

Carrier revenue was $21.2 million, a decrease of 1% compared to the second quarter of 2017.

Net Loss

 

GAAP net loss was ($14.3) million, compared to ($13.9) million in the second quarter of 2017. GAAP net loss per share was ($0.45), based on 31.8 million basic and diluted weighted average common shares outstanding, compared to ($0.45) for the second quarter of 2017, based on 31.1 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($7.7) million, compared to ($10.8) million in the second quarter of 2017. Non-GAAP net loss per share was ($0.24), based on 31.8 million basic and diluted weighted average common shares outstanding, compared to ($0.35) for the second quarter of 2017, based on 31.1 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was ($0.6) million, compared to ($3.9) million in the second quarter of 2017.

See important disclosures about non-GAAP measures, and a reconciliation of them to GAAP, below.


 

Balance Sheet

 

Cash and cash equivalents at June 30, 2018 totaled $53.3 million, compared to $54.8 million at the end of the first quarter of 2018.  

Second Quarter and Recent Business Highlights

 

We ended the quarter with 997 large employer customers, up from 893 at the end of the prior year period, and 948 at the end of the first quarter of 2018

 

We ended the quarter with 6 BenefitsPlace Carriers and 12 BenefitsPlace Specialty Product Suppliers.

 

We signed agreements to expand our facilities in both Salt Lake City, Utah and Tulsa, Okla. helping Benefitfocus add new staff to strengthen its relationships with carrier, employer and broker partners, and pursue additional organic growth opportunities.

 

We named Ken Haderer as Executive Vice President, Global Operations to help accelerate our platform strategy.  Prior to joining Benefitfocus, Haderer was President of North America at Mercer, a leading, global brokerage and human resources consulting firm.

Business Outlook

Based on information available as of August 2, 2018, Benefitfocus is providing guidance for the third quarter and full year 2018 as indicated below.

Third Quarter 2018:

 

Total revenue is expected to be in the range of $58.0 million to $60.0 million.

 

Non-GAAP net loss is expected to be in the range of ($11.0) million to ($9.0) million, or ($0.35) to ($0.28) per share, based on 31.9 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of ($4.0) million to ($2.0) million.

Full Year 2018:

 

Total revenue is expected to be in the range of $253.0 million to $258.0 million.

 

Non-GAAP net loss is expected to be in the range of ($23.0) million to ($17.0) million, or ($0.72) to ($0.54) per share, based on 31.7 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $7.0 million to $13.0 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, August 2, 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/. After the conference call, a replay will be available until August 9, 2018, and can be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with passcode 13681546.

About Benefitfocus

Benefitfocus (NASDAQ: BNFT) unifies the entire U.S. benefits industry on a single technology platform to protect consumers' health, wealth and lifestyle. Our powerful cloud-based software, data-driven insights and thoughtfully-designed services, enable employers, insurance brokers and carriers to simplify the complexity of benefits administration and deliver a world-class benefits experience. The Benefitfocus Platform is industry leading in reliability and peak response rate. Learn more at www.benefitfocus.comLinkedIn 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, and adjusted EBITDA. 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, offering cost expensed, and costs not core to our business.  Beginning with the second quarter of 2018 and to align with other non-GAAP financial metrics that we report from time to time, we revised our definition of adjusted EBITDA to also exclude stock offering costs expensed, if any, and have applied this change retrospectively to all periods presented.  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.

 

Source: Benefitfocus, Inc.



 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenue

 

$

60,581

 

 

$

55,089

 

 

$

122,944

 

 

$

112,712

 

Cost of revenue (1)(2)

 

 

30,721

 

 

 

29,696

 

 

 

62,124

 

 

 

61,898

 

Gross profit

 

 

29,860

 

 

 

25,393

 

 

 

60,820

 

 

 

50,814

 

Operating expenses:(1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

18,400

 

 

 

17,863

 

 

 

38,317

 

 

 

35,886

 

Research and development

 

 

12,128

 

 

 

12,473

 

 

 

24,151

 

 

 

24,654

 

General and administrative

 

 

10,387

 

 

 

5,877

 

 

 

20,080

 

 

 

13,634

 

Total operating expenses

 

 

40,915

 

 

 

36,213

 

 

 

82,548

 

 

 

74,174

 

Loss from operations

 

 

(11,055

)

 

 

(10,820

)

 

 

(21,728

)

 

 

(23,360

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

68

 

 

 

47

 

 

 

126

 

 

 

74

 

Interest expense on building lease financing obligations

 

 

(1,867

)

 

 

(1,861

)

 

 

(3,733

)

 

 

(3,721

)

Interest expense on other borrowings

 

 

(1,415

)

 

 

(1,210

)

 

 

(2,732

)

 

 

(2,272

)

Other expense

 

 

13

 

 

 

(1

)

 

 

13

 

 

 

(149

)

Total other expense, net

 

 

(3,201

)

 

 

(3,025

)

 

 

(6,326

)

 

 

(6,068

)

Loss before income taxes

 

 

(14,256

)

 

 

(13,845

)

 

 

(28,054

)

 

 

(29,428

)

Income tax expense

 

 

5

 

 

 

5

 

 

 

9

 

 

 

5

 

Net loss

 

$

(14,261

)

 

$

(13,850

)

 

$

(28,063

)

 

$

(29,433

)

Comprehensive loss

 

$

(14,261

)

 

$

(13,850

)

 

$

(28,063

)

 

$

(29,433

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.45

)

 

$

(0.45

)

 

$

(0.89

)

 

$

(0.95

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

31,806,972

 

 

 

31,076,995

 

 

 

31,571,468

 

 

 

30,868,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation included in above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

900

 

 

$

460

 

 

$

1,611

 

 

$

1,121

 

Sales and marketing

 

 

1,257

 

 

 

925

 

 

 

2,211

 

 

 

2,257

 

Research and development

 

 

841

 

 

 

739

 

 

 

1,609

 

 

 

1,458

 

General and administrative

 

 

1,676

 

 

 

738

 

 

 

3,568

 

 

 

2,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Amortization of acquired intangible assets included in above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

35

 

 

$

35

 

 

$

69

 

 

$

71

 

Sales and marketing

 

 

13

 

 

 

13

 

 

 

27

 

 

 

26

 

Research and development

 

 

11

 

 

 

12

 

 

 

23

 

 

 

24

 

General and administrative

 

 

5

 

 

 

5

 

 

 

9

 

 

 

8

 

 



 

Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

June 30,

2018

 

 

As of

December 31,

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,292

 

 

$

55,335

 

Accounts receivable, net

 

 

26,771

 

 

 

30,091

 

Contract, prepaid and other current assets

 

 

13,776

 

 

 

15,859

 

Total current assets

 

 

93,839

 

 

 

101,285

 

Property and equipment, net

 

 

71,382

 

 

 

72,681

 

Intangible assets, net

 

 

21

 

 

 

150

 

Goodwill

 

 

1,634

 

 

 

1,634

 

Deferred contract costs and other non-current assets

 

 

14,426

 

 

 

16,253

 

Total assets

 

$

181,302

 

 

$

192,003

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

845

 

 

$

4,260

 

Accrued expenses

 

 

11,299

 

 

 

9,110

 

Accrued compensation and benefits

 

 

14,707

 

 

 

14,250

 

Deferred revenue, current portion

 

 

36,868

 

 

 

43,804

 

Revolving line of credit, current portion

 

 

28,000

 

 

 

24,000

 

Financing and capital lease obligations, current portion

 

 

4,395

 

 

 

3,423

 

Total current liabilities

 

 

96,114

 

 

 

98,847

 

Deferred revenue, net of current portion

 

 

14,100

 

 

 

11,223

 

Revolving line of credit, net of current portion

 

 

39,246

 

 

 

32,246

 

Financing and capital lease obligations, net of current portion

 

 

56,765

 

 

 

55,597

 

Other non-current liabilities

 

 

2,589

 

 

 

2,809

 

Total liabilities

 

 

208,814

 

 

 

200,722

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001, 5,000,000 shares authorized,

   no shares issued and outstanding at June 30, 2018

   and December 31, 2017

 

 

 

 

 

 

Common stock, par value $0.001, 50,000,000 shares authorized,

   31,825,997 and 31,307,989 shares issued and outstanding

   at June 30, 2018 and December 31, 2017, respectively

 

 

32

 

 

 

31

 

Additional paid-in capital

 

 

361,765

 

 

 

352,496

 

Accumulated deficit

 

 

(389,309

)

 

 

(361,246

)

Total stockholders' deficit

 

 

(27,512

)

 

 

(8,719

)

Total liabilities and stockholders' deficit

 

$

181,302

 

 

$

192,003

 

 



 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(28,063

)

 

$

(29,433

)

Adjustments to reconcile net loss to net cash and cash

   equivalents used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,957

 

 

 

7,945

 

Stock-based compensation expense

 

 

8,999

 

 

 

7,250

 

Interest accrual on financing obligation

 

 

3,758

 

 

 

3,747

 

Loss on disposal or impairment of property and equipment

 

 

 

 

 

149

 

Provision for doubtful accounts

 

 

364

 

 

 

61

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

2,956

 

 

 

5,112

 

Accrued interest on short-term investments

 

 

 

 

 

7

 

Contract, prepaid and other current assets

 

 

2,182

 

 

 

5,017

 

Deferred contract costs and other non-current assets

 

 

2,003

 

 

 

3,041

 

Accounts payable and accrued expenses

 

 

(1,110

)

 

 

(3,197

)

Accrued compensation and benefits

 

 

458

 

 

 

(2,669

)

Deferred revenue

 

 

(4,059

)

 

 

(2,959

)

Other non-current liabilities

 

 

(218

)

 

 

(467

)

Net cash and cash equivalents used in operating activities

 

 

(4,773

)

 

 

(6,396

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Proceeds from maturity of short-term investments held to maturity

 

 

 

 

 

2,000

 

Purchases of property and equipment

 

 

(3,561

)

 

 

(3,825

)

Net cash and cash equivalents used in investing activities

 

 

(3,561

)

 

 

(1,825

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

59,000

 

 

 

53,000

 

Payments on revolving line of credit

 

 

(48,000

)

 

 

(41,000

)

Proceeds from exercises of stock options and ESPP

 

 

270

 

 

 

3,161

 

Payments on financing and capital lease obligations

 

 

(4,979

)

 

 

(4,398

)

Net cash and cash equivalents provided by financing activities

 

 

6,291

 

 

 

10,763

 

Net (decrease) increase in cash and cash equivalents

 

 

(2,043

)

 

 

2,542

 

Cash and cash equivalents, beginning of period

 

 

55,335

 

 

 

56,853

 

Cash and cash equivalents, end of period

 

$

53,292

 

 

$

59,395

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

272

 

 

$

732

 

Property and equipment purchased with financing and capital lease obligations

 

$

3,085

 

 

$

 

Post contract support purchased with financing obligations

 

$

275

 

 

$

 

 



 

Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except share and per share data)

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

29,860

 

 

$

25,393

 

 

$

60,820

 

 

$

50,814

 

Amortization of acquired intangible assets

 

 

35

 

 

 

35

 

 

 

69

 

 

 

71

 

Stock-based compensation expense

 

 

900

 

 

 

460

 

 

 

1,611

 

 

 

1,121

 

Total net adjustments

 

 

935

 

 

 

495

 

 

 

1,680

 

 

 

1,192

 

Non-GAAP gross profit

 

$

30,795

 

 

$

25,888

 

 

$

62,500

 

 

$

52,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Operating Loss to Non-GAAP Operating Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(11,055

)

 

$

(10,820

)

 

$

(21,728

)

 

$

(23,360

)

Amortization of acquired intangible assets

 

 

64

 

 

 

65

 

 

 

128

 

 

 

129

 

Stock-based compensation expense

 

 

4,674

 

 

 

2,862

 

 

 

8,999

 

 

 

7,250

 

Offering costs expensed

 

 

257

 

 

 

 

 

 

257

 

 

 

 

Costs not core to our business

 

 

1,524

 

 

 

121

 

 

 

2,895

 

 

 

121

 

Total net adjustments

 

 

6,519

 

 

 

3,048

 

 

 

12,279

 

 

 

7,500

 

Non-GAAP operating income (loss)

 

$

(4,536

)

 

$

(7,772

)

 

$

(9,449

)

 

$

(15,860

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(14,261

)

 

$

(13,850

)

 

$

(28,063

)

 

$

(29,433

)

Depreciation

 

 

2,999

 

 

 

3,081

 

 

 

5,976

 

 

 

6,192

 

Amortization of software development costs

 

 

964

 

 

 

794

 

 

 

1,853

 

 

 

1,624

 

Amortization of acquired intangible assets

 

 

64

 

 

 

65

 

 

 

128

 

 

 

129

 

Interest income

 

 

(68

)

 

 

(47

)

 

 

(126

)

 

 

(74

)

Interest expense on building lease financing obligations

 

 

1,867

 

 

 

1,861

 

 

 

3,733

 

 

 

3,721

 

Interest expense on other borrowings

 

 

1,415

 

 

 

1,210

 

 

 

2,732

 

 

 

2,272

 

Income tax expense

 

 

5

 

 

 

5

 

 

 

9

 

 

 

5

 

Stock-based compensation expense

 

 

4,674

 

 

 

2,862

 

 

 

8,999

 

 

 

7,250

 

Offering costs expensed

 

 

257

 

 

 

 

 

 

257

 

 

 

 

Costs not core to our business

 

 

1,524

 

 

 

121

 

 

 

2,895

 

 

 

121

 

Total net adjustments

 

 

13,701

 

 

 

9,952

 

 

 

26,456

 

 

 

21,240

 

Adjusted EBITDA

 

$

(560

)

 

$

(3,898

)

 

$

(1,607

)

 

$

(8,193

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(14,261

)

 

$

(13,850

)

 

$

(28,063

)

 

$

(29,433

)

Amortization of acquired intangible assets

 

 

64

 

 

 

65

 

 

 

128

 

 

 

129

 

Stock-based compensation expense

 

 

4,674

 

 

 

2,862

 

 

 

8,999

 

 

 

7,250

 

Offering costs expensed

 

 

257

 

 

 

 

 

 

257

 

 

 

 

Costs not core to our business

 

 

1,524

 

 

 

121

 

 

 

2,895

 

 

 

121

 

Total net adjustments

 

 

6,519

 

 

 

3,048

 

 

 

12,279

 

 

 

7,500

 

Non-GAAP net loss

 

$

(7,742

)

 

$

(10,802

)

 

$

(15,784

)

 

$

(21,933

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(7,742

)

 

$

(10,802

)

 

$

(15,784

)

 

$

(21,933

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

31,806,972

 

 

 

31,076,995

 

 

 

31,571,468

 

 

 

30,868,888

 

Shares used in computing non-GAAP net loss per share - basic and diluted

 

 

31,806,972

 

 

 

31,076,995

 

 

 

31,571,468

 

 

 

30,868,888

 

Non-GAAP net loss per common share - basic and diluted

 

$

(0.24

)

 

$

(0.35

)

 

$

(0.50

)

 

$

(0.71

)

 



 

Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Guidance Ranges

(in millions, except per share data)

 

 

Third Quarter 2018

 

 

Full Year 2018

 

 

 

Range

 

 

Range

 

 

 

Low

 

 

High

 

 

Low

 

 

High

 

Reconciliation from Net Loss Guidance to Adjusted EBITDA Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(16.6

)

 

$

(14.6

)

 

$

(46.7

)

 

$

(40.7

)

Depreciation and amortization

 

 

4.1

 

 

 

4.1

 

 

 

17.7

 

 

 

17.7

 

Interest income

 

 

 

 

 

 

 

 

(0.1

)

 

 

(0.1

)

Interest expense

 

 

3.0

 

 

 

3.0

 

 

 

12.7

 

 

 

12.7

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

4.8

 

 

 

4.8

 

 

 

18.8

 

 

 

18.8

 

Offering costs expensed

 

 

 

 

 

 

 

 

0.3

 

 

 

0.3

 

Costs not core to business

 

 

0.7

 

 

 

0.7

 

 

 

4.3

 

 

 

4.3

 

Total net adjustments

 

 

12.6

 

 

 

12.6

 

 

 

53.7

 

 

 

53.7

 

Adjusted EBITDA - Guidance range

 

$

(4.0

)

 

$

(2.0

)

 

$

7.0

 

 

$

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss Guidance to Non-GAAP Net Loss Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(16.6

)

 

$

(14.6

)

 

$

(46.7

)

 

$

(40.7

)

Amortization of acquired intangible assets

 

 

0.1

 

 

 

0.1

 

 

 

0.3

 

 

 

0.3

 

Stock-based compensation expense

 

 

4.8

 

 

 

4.8

 

 

 

18.8

 

 

 

18.8

 

Offering costs expensed

 

 

 

 

 

 

 

 

0.3

 

 

 

0.3

 

Costs not core to business

 

 

0.7

 

 

 

0.7

 

 

 

4.3

 

 

 

4.3

 

Total net adjustments

 

 

5.6

 

 

 

5.6

 

 

 

23.7

 

 

 

23.7

 

Non-GAAP net loss - Guidance range

 

$

(11.0

)

 

$

(9.0

)

 

$

(23.0

)

 

$

(17.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss - Guidance range

 

$

(11.0

)

 

$

(9.0

)

 

$

(23.0

)