Benefitfocus, Inc.
Benefitfocus,Inc. (Form: 8-K, Received: 08/03/2017 16:35:52)

 

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 3, 2017

 

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 3, 2017, Benefitfocus, Inc. issued a press release announcing its operating results for the quarter ended June 30, 2017.  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 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 3, 2017.


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 3, 2017

 

/s/ Raymond A. August

 

 

Raymond A. August

 

 

President and Chief Operating Officer

 

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 2017 Financial Results

Total revenue of $63.3 million in the second quarter grew 9% year-over-year and 13% year-to-date versus the first half of 2016

 

Charleston, S.C. – August 3, 2017 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading provider of cloud-based benefits management software , today announced its second quarter 2017 financial results.

“Benefitfocus outperformed our second quarter revenue and profitability targets,” said Shawn Jenkins, Co-Founder and Chief Executive Officer of Benefitfocus. “When we look at the combination of demand for our platform, strong revenue retention and profitability improvement, we continue to see a strengthening of our company.”

 

Jenkins added, “We continue to enhance our best-in-class platform, which we believe will position Benefitfocus to deliver accelerating revenue growth and margin expansion that will generate long-term shareholder value.”

 

Second Quarter 2017 Financial Highlights

Revenue

 

Total revenue was $63.3 million, an increase of 9% compared to the second quarter of 2016.  In the second quarter of 2016, we recognized as completed $5.1 million of lump sum total ACA reporting revenue, whereas as completed ACA reporting revenue was recognized in the first quarter of 2017.  To normalize for this shift, we recommend investors to view our total revenue, software services revenue, professional services revenue and employer revenue on a year-to-date basis.

 

Software services revenue was $53.6 million, an increase of 5% compared to the second quarter of 2016.  

 

Professional services revenue was $9.8 million, an increase of 43% compared to the second quarter of 2016.  

 

Employer revenue was $38.8 million, an increase of 7% compared to the second quarter of 2016.  

 

Insurance Carrier revenue was $24.5 million, an increase of 13% compared to the second quarter of 2016.

Net Loss

 

GAAP net loss was ($4.5) million, compared to ($11.0) million in the second quarter of 2016. GAAP net loss per share was ($0.14), based on 31.1 million basic and diluted weighted average common shares outstanding, compared to ($0.37) for the second quarter of 2016, based on 29.5 million basic and diluted weighted average common shares outstanding.

1


Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($1.5) million, compared to ($6.5) million in the second quarter of 2016. Non-GAAP net loss per share was ($0.05), based on 31.1 million basic and diluted weighted average common shares outstanding, compared to ($0.22) for the second quarter of 2016, based on 29.5 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $5.4 million, compared to ($1.4) million in the second quarter of 2016.

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

Balance Sheet

 

Cash, cash equivalents and marketable securities at June 30, 2017 totaled $59.4 million, compared to $57.7 million at the end of the first quarter of 2017.

Second Quarter and Recent Business Highlights

 

We ended the quarter with 893 large employer customers, up from 803 at the end of the year-ago period and 853 at the end of the first quarter of 2017.

 

We have signed 15 new Enterprise Accounts with more than 10,000 lives year-to-date.

 

We announced our Summer Software Release, which includes new tools and features designed to help HR leaders and carriers streamline enrollment and provide a personalized consumer-like experience.  These new tools are designed to increase data accuracy, improve system performance, simplify employee onboarding and better manage benefits content and communication.

 

We hosted our second annual Open Enrollment Success Week that included over 90 sessions and workshops to educate on and inspire new ways to engage employees in benefits enrollment.

 

We appointed Robert Dahdah as Executive Vice President, Global Sales. Prior to joining Benefitfocus, Dahdah served as Senior Vice President of Global Sales for Verizon Telematics, Inc., one of the world’s largest SaaS IoT providers. Prior to Verizon Telematics, Dahdah served in multiple roles at Automatic Data Processing, Inc., or ADP, most recently as its Senior Vice President, Sales- Global Enterprise Solutions International, where he led sales and distribution for over 100 countries outside of the United States.

 

We also appointed Jonathon E. Dussault as Chief Financial Officer. Prior to joining Benefitfocus, Dussault served as Senior Vice President and Senior Finance Officer of WEX Health, Inc. (formerly Evolution1, Inc.), a leading provider of cloud-based Health Savings Account technology and payment solutions for the healthcare industry and a subsidiary of global payments processing company, WEX, Inc. Prior to that, Dussault served in multiple roles at Evolution1, most recently as Chief Financial Officer, until its acquisition by WEX.

 

Business Outlook

Based on information available as of August 3, 2017, Benefitfocus is providing guidance for the third quarter and full year 2017 as indicated below.

Third Quarter 2017:

 

Total revenue is expected to be in the range of $61.5 million to $62.5 million.

 

Non-GAAP net loss is expected to be in the range of ($5.0) million to ($4.0) million, or ($0.16) to ($0.13) per share, based on 31.2 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $1.0 million to $2.0 million.

Full Year 2017:

2


 

Total revenue is expected to be in the range of $ 255.0 million to $ 258.0 million.

 

Non-GAAP net loss is expected to be in the range of ($10.5) million to ($7.5) million, or ($0.34) to ($0.24) per share, based on 31.0 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $14.0 million to $17.0 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 3, 2017, 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 10, 2017, and can be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with passcode 13664967.

 

About Benefitfocus

Benefitfocus (NASDAQ: BNFT) provides a leading cloud-based benefits management platform that simplifies how organizations and individuals shop for, enroll in, manage and exchange benefits. Every day, leading employers, insurance companies and the consumers they serve rely on our platform to manage, scale and exchange benefits data seamlessly. In an increasingly complex benefits landscape, we bring order to chaos so our clients and their employees have access to better information, make better decisions and lead better lives. 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, 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 beginning in the second quarter of 2017, costs not core to our business, if any.  The exclusion of costs not core to our business from these non-GAAP financial measures had a minimal impact on such measures for the three and six months ended June 30, 2017 and no material impact on such measures in prior periods. 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, and costs not core to our business.  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

3


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 profitability; fluctuations in our financial results; risks related to changing healthcare and other applicable regulations; our ability to maintain our culture and recruit and retain qualified personnel; general economic 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.cfm 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.


4


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,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenue

 

$

63,348

 

 

$

57,874

 

 

$

127,519

 

 

$

112,666

 

Cost of revenue (1)(2)

 

 

28,828

 

 

 

29,750

 

 

 

60,429

 

 

 

59,047

 

Gross profit

 

 

34,520

 

 

 

28,124

 

 

 

67,090

 

 

 

53,619

 

Operating expenses: (1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

17,646

 

 

 

14,761

 

 

 

34,923

 

 

 

28,335

 

Research and development

 

 

12,473

 

 

 

14,180

 

 

 

24,654

 

 

 

29,195

 

General and administrative

 

 

5,877

 

 

 

8,274

 

 

 

13,634

 

 

 

16,669

 

Total operating expenses

 

 

35,996

 

 

 

37,215

 

 

 

73,211

 

 

 

74,199

 

Loss from operations

 

 

(1,476

)

 

 

(9,091

)

 

 

(6,121

)

 

 

(20,580

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

47

 

 

 

36

 

 

 

74

 

 

 

92

 

Interest expense on building lease financing obligations

 

 

(1,861

)

 

 

(1,710

)

 

 

(3,721

)

 

 

(3,426

)

Interest expense on other borrowings

 

 

(1,210

)

 

 

(231

)

 

 

(2,272

)

 

 

(429

)

Other expense

 

 

(1

)

 

 

(3

)

 

 

(149

)

 

 

(3

)

Total other expense, net

 

 

(3,025

)

 

 

(1,908

)

 

 

(6,068

)

 

 

(3,766

)

Loss before income taxes

 

 

(4,501

)

 

 

(10,999

)

 

 

(12,189

)

 

 

(24,346

)

Income tax expense

 

 

5

 

 

 

5

 

 

 

5

 

 

 

10

 

Net loss

 

$

(4,506

)

 

$

(11,004

)

 

$

(12,194

)

 

$

(24,356

)

Comprehensive loss

 

$

(4,506

)

 

$

(11,004

)

 

$

(12,194

)

 

$

(24,356

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.14

)

 

$

(0.37

)

 

$

(0.40

)

 

$

(0.83

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

31,076,995

 

 

 

29,459,341

 

 

 

30,868,888

 

 

 

29,336,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

459

 

 

$

770

 

 

$

1,121

 

 

$

1,318

 

Sales and marketing

 

 

924

 

 

 

838

 

 

 

2,256

 

 

 

1,470

 

Research and development

 

 

739

 

 

 

1,059

 

 

 

1,457

 

 

 

2,527

 

General and administrative

 

 

740

 

 

 

1,783

 

 

 

2,416

 

 

 

3,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

35

 

 

$

38

 

 

$

71

 

 

$

74

 

Sales and marketing

 

 

13

 

 

 

10

 

 

 

26

 

 

 

20

 

Research and development

 

 

12

 

 

 

13

 

 

 

24

 

 

 

28

 

General and administrative

 

 

5

 

 

 

4

 

 

 

8

 

 

 

7

 

 


5


Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

June 30,

2017

 

 

As of

December 31,

2016

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

59,395

 

 

$

56,853

 

Marketable securities

 

 

 

 

 

2,007

 

Accounts receivable, net

 

 

26,952

 

 

 

28,340

 

Accounts receivable, related party, net

 

 

907

 

 

 

4,626

 

Prepaid expenses and other current assets

 

 

6,247

 

 

 

4,449

 

Total current assets

 

 

93,501

 

 

 

96,275

 

Property and equipment, net

 

 

76,410

 

 

 

80,518

 

Intangible assets, net

 

 

279

 

 

 

408

 

Goodwill

 

 

1,634

 

 

 

1,634

 

Other non-current assets

 

 

1,216

 

 

 

1,575

 

Total assets

 

$

173,040

 

 

$

180,410

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,146

 

 

$

5,829

 

Accrued expenses

 

 

8,490

 

 

 

10,867

 

Accrued compensation and benefits

 

 

14,678

 

 

 

17,347

 

Deferred revenue, current portion

 

 

32,307

 

 

 

35,426

 

Revolving line of credit, current portion

 

 

20,000

 

 

 

20,000

 

Financing and capital lease obligations, current portion

 

 

3,232

 

 

 

2,604

 

Total current liabilities

 

 

83,853

 

 

 

92,073

 

Deferred revenue, net of current portion

 

 

32,791

 

 

 

40,412

 

Revolving line of credit, net of current portion

 

 

32,246

 

 

 

20,246

 

Financing and capital lease obligations, net of current portion

 

 

56,654

 

 

 

57,934

 

Other non-current liabilities

 

 

2,590

 

 

 

3,056

 

Total liabilities

 

 

208,134

 

 

 

213,721

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

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

   no shares issued and outstanding at June 30, 2017

   and December 31, 2016

 

 

 

 

 

 

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

   31,134,394 and 30,429,014 shares issued and outstanding

   at June 30, 2017 and December 31, 2016, respectively

 

 

31

 

 

 

30

 

Additional paid-in capital

 

 

345,860

 

 

 

335,059

 

Accumulated deficit

 

 

(380,985

)

 

 

(368,400

)

Total stockholders' deficit

 

 

(35,094

)

 

 

(33,311

)

Total liabilities and stockholders' deficit

 

$

173,040

 

 

$

180,410

 

 


6


Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(12,194

)

 

$

(24,356

)

Adjustments to reconcile net loss to net cash and cash

   equivalents used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,945

 

 

 

6,310

 

Stock-based compensation expense

 

 

7,250

 

 

 

9,183

 

Interest accrual on financing obligation

 

 

3,747

 

 

 

3,426

 

Loss on disposal or impairment of property and equipment

 

 

149

 

 

 

7

 

Provision for doubtful accounts

 

 

61

 

 

 

(22

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

5,047

 

 

 

(1,582

)

Accrued interest on short-term investments

 

 

7

 

 

 

158

 

Prepaid expenses and other current assets

 

 

(1,798

)

 

 

(72

)

Other non-current assets

 

 

359

 

 

 

291

 

Accounts payable

 

 

(1,288

)

 

 

(1,279

)

Accrued expenses

 

 

(1,805

)

 

 

741

 

Accrued compensation and benefits

 

 

(2,669

)

 

 

(3,196

)

Deferred revenue

 

 

(10,740

)

 

 

(9,932

)

Other non-current liabilities

 

 

(467

)

 

 

87

 

Net cash and cash equivalents used in operating activities

 

 

(6,396

)

 

 

(20,236

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of short-term investments held to maturity

 

 

 

 

 

(2,004

)

Proceeds from maturity of short-term investments held to maturity

 

 

2,000

 

 

 

31,225

 

Purchases of property and equipment

 

 

(3,825

)

 

 

(4,964

)

Net cash and cash equivalents (used in) provided by investing activities

 

 

(1,825

)

 

 

24,257

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

53,000

 

 

 

34,000

 

Payments on revolving line of credit

 

 

(41,000

)

 

 

(25,000

)

Proceeds from exercises of stock options and ESPP

 

 

3,161

 

 

 

1,593

 

Remittance of taxes upon vesting of restricted stock units

 

 

 

 

 

(202

)

Payments on financing and capital lease obligations

 

 

(4,398

)

 

 

(5,557

)

Net cash and cash equivalents provided by financing activities

 

 

10,763

 

 

 

4,834

 

Net increase in cash and cash equivalents

 

 

2,542

 

 

 

8,855

 

Cash and cash equivalents, beginning of period

 

 

56,853

 

 

 

48,074

 

Cash and cash equivalents, end of period

 

$

59,395

 

 

$

56,929

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

732

 

 

$

1,397

 

Property and equipment purchased with financing and capital lease obligations

 

$

 

 

$

2,099

 

Post contract support purchased with financing obligations

 

$

 

 

$

1,182

 

 


7


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,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

34,520

 

 

$

28,124

 

 

$

67,090

 

 

$

53,619

 

Amortization of acquired intangible assets

 

 

35

 

 

 

38

 

 

 

71

 

 

 

74

 

Stock-based compensation expense

 

 

459

 

 

 

770

 

 

 

1,121

 

 

 

1,318

 

Total net adjustments

 

 

494

 

 

 

808

 

 

 

1,192

 

 

 

1,392

 

Non-GAAP gross profit

 

$

35,014

 

 

$

28,932

 

 

$

68,282

 

 

$

55,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(1,476

)

 

$

(9,091

)

 

$

(6,121

)

 

$

(20,580

)

Amortization of acquired intangible assets

 

 

65

 

 

 

65

 

 

 

129

 

 

 

129

 

Stock-based compensation expense

 

 

2,862

 

 

 

4,450

 

 

 

7,250

 

 

 

9,183

 

Costs not core to our business

 

 

121

 

 

 

 

 

 

121

 

 

 

 

Total net adjustments

 

 

3,048

 

 

 

4,515

 

 

 

7,500

 

 

 

9,312

 

Non-GAAP operating income (loss)

 

$

1,572

 

 

$

(4,576

)

 

$

1,379

 

 

$

(11,268

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,506

)

 

$

(11,004

)

 

$

(12,194

)

 

$

(24,356

)

Depreciation

 

 

3,081

 

 

 

2,509

 

 

 

6,192

 

 

 

4,862

 

Amortization of software development costs

 

 

794

 

 

 

693

 

 

 

1,624

 

 

 

1,319

 

Amortization of acquired intangible assets

 

 

65

 

 

 

65

 

 

 

129

 

 

 

129

 

Interest income

 

 

(47

)

 

 

(36

)

 

 

(74

)

 

 

(92

)

Interest expense on building lease financing obligations

 

 

1,861

 

 

 

1,710

 

 

 

3,721

 

 

 

3,426

 

Interest expense on other borrowings

 

 

1,210

 

 

 

231

 

 

 

2,272

 

 

 

429

 

Income tax expense

 

 

5

 

 

 

5

 

 

 

5

 

 

 

10

 

Stock-based compensation expense

 

 

2,862

 

 

 

4,450

 

 

 

7,250

 

 

 

9,183

 

Costs not core to our business

 

 

121

 

 

 

 

 

 

121

 

 

 

 

Total net adjustments

 

 

9,952

 

 

 

9,627

 

 

 

21,240

 

 

 

19,266

 

Adjusted EBITDA

 

$

5,446

 

 

$

(1,377

)

 

$

9,046

 

 

$

(5,090

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,506

)

 

$

(11,004

)

 

$

(12,194

)

 

$

(24,356

)

Amortization of acquired intangible assets

 

 

65

 

 

 

65

 

 

 

129

 

 

 

129

 

Stock-based compensation expense

 

 

2,862

 

 

 

4,450

 

 

 

7,250

 

 

 

9,183

 

Costs not core to our business

 

 

121

 

 

 

 

 

 

121

 

 

 

 

Total net adjustments

 

 

3,048

 

 

 

4,515

 

 

 

7,500

 

 

 

9,312

 

Non-GAAP net loss

 

$

(1,458

)

 

$

(6,489

)

 

$

(4,694

)

 

$

(15,044

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(1,458

)

 

$

(6,489

)

 

$

(4,694

)

 

$

(15,044

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

31,076,995

 

 

 

29,459,341

 

 

 

30,868,888

 

 

 

29,336,270

 

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

   diluted

 

 

31,076,995

 

 

 

29,459,341

 

 

 

30,868,888

 

 

 

29,336,270

 

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

 

$

(0.05

)

 

$

(0.22

)

 

$

(0.15

)

 

$

(0.51

)

 


8


Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Guidance Ranges

(in millions, except per share data)

 

 

Third Quarter 2017

 

 

Full Year 2017

 

 

 

Range

 

 

Range

 

 

 

Low

 

 

High

 

 

Low

 

 

High

 

Reconciliation from Net Loss Guidance to Adjusted EBITDA Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(10.5

)

 

$

(9.5

)

 

$

(29.0

)

 

$

(26.0

)

Depreciation and amortization

 

 

3.7

 

 

 

3.7

 

 

 

15.3

 

 

 

15.3

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

2.4

 

 

 

2.4

 

 

 

9.6

 

 

 

9.6

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

5.0

 

 

 

5.0

 

 

 

17.4

 

 

 

17.4

 

Costs not core to business

 

 

0.4

 

 

 

0.4

 

 

 

0.7

 

 

 

0.7

 

Total net adjustments

 

 

11.5

 

 

 

11.5

 

 

 

43.0

 

 

 

43.0

 

Adjusted EBITDA - Guidance range

 

$

1.0

 

 

$

2.0

 

 

$

14.0

 

 

$

17.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(10.5

)

 

$

(9.5

)

 

$

(29.0

)

 

$

(26.0

)

Amortization of acquired intangible assets

 

 

0.1

 

 

 

0.1

 

 

 

0.4

 

 

 

0.4

 

Stock-based compensation expense

 

 

5.0

 

 

 

5.0

 

 

 

17.4

 

 

 

17.4

 

Costs not core to business

 

 

0.4

 

 

 

0.4

 

 

 

0.7

 

 

 

0.7

 

Total net adjustments

 

 

5.5

 

 

 

5.5

 

 

 

18.5

 

 

 

18.5

 

Non-GAAP net loss - Guidance range

 

$

(5.0

)

 

$

(4.0

)

 

$

(10.5

)