Benefitfocus, Inc.
Benefitfocus,Inc. (Form: 8-K, Received: 11/02/2017 16:54:45)

 

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) November 2, 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 November 2, 2017, Benefitfocus, Inc. issued a press release announcing its operating results for the quarter ended September 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 November 2, 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: November 2, 2017

 

/s/ Jonathon E. Dussault

 

 

Jonathon E. Dussault

 

 

Chief Financial 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 Third Quarter 2017 Financial Results

Total revenue of $62.5 million grew 8% year-over-year

Employer revenue of $40.1 million grew 14% year-over-year

 

Charleston, S.C. – November 2, 2017 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading provider of cloud-based benefits management software , today announced its third quarter 2017 financial results.

“Benefitfocus outperformed our third quarter profitability targets and our revenue came in at the high-end of our expectations,” said Shawn Jenkins, Co-Founder and Chief Executive Officer of Benefitfocus. “Our Q3 and year-to-date financial results demonstrate the inherent scale in our business and multi-year investment in operational excellence.”

 

Jenkins added, “As the only platform capable of serving both the employer and carrier segments we are uniquely positioned to take advantage of this massive market as the underlying fundamentals continue to strengthen.”

 

Third Quarter 2017 Financial Highlights

Revenue

 

Total revenue was $62.5 million, an increase of 8% compared to the third quarter of 2016.  

 

Software services revenue was $53.1 million, an increase of 8% compared to the third quarter of 2016.  

 

Professional services revenue was $9.3 million, an increase of 7% compared to the third quarter of 2016.  

 

Employer revenue was $40.1 million, an increase of 14% compared to the third quarter of 2016.  

 

Insurance Carrier revenue was $22.3 million, a decrease of 2% compared to the third quarter of 2016.

Net Loss

 

GAAP net loss was ($6.7) million, compared to ($8.6) million in the third quarter of 2016. GAAP net loss per share was ($0.21), based on 31.2 million basic and diluted weighted average common shares outstanding, compared to ($0.29) for the third quarter of 2016, based on 29.7 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($1.9) million, compared to ($4.1) million in the third quarter of 2016. Non-GAAP net loss per share was ($0.06), based on 31.2 million basic and diluted weighted average common shares outstanding, compared to ($0.14) for the third quarter of 2016, based on 29.7 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $5.1 million, compared to $1.1 million in the third quarter of 2016.

1


 

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

Balance Sheet

 

Cash, cash equivalents and marketable securities at September 30, 2017 totaled $54.6 million, compared to $59.4 million at the end of the second quarter of 2017.

Third Quarter and Recent Business Highlights

 

We ended the quarter with 903 large employer customers, up from 827 at the end of the year-ago period and 893 at the end of the second quarter of 2017.

 

We ended the quarter with 54 insurance carrier customers,  up from 53 at the end of the year-ago period and the end of the second quarter of 2017.

 

We unveiled and made generally available the new Benefitfocus Consumer-Directed Healthcare Accounts and Benefitfocus COBRA Administration solutions.

 

We announced the Autumn Software Release which includes new enhancements designed to drive success before, during and after open enrollment. For employers, new capabilities were designed around open enrollment planning and performance as well as year-round benefits management. The new release also includes enhancements for insurance carriers, such as simplified dependent management, data accuracy and timeliness, and responsive automatic enrollment.

 

We opened a new office  in Salt Lake City, UT.  This office is primarily home to our Customer Success Organization team members.

Business Outlook

Based on information available as of November 2, 2017, Benefitfocus is providing guidance for the fourth quarter and full year 2017 as indicated below.

Fourth Quarter 2017:

 

Total revenue is expected to be in the range of $66.0 million to $67.0 million.

 

Non-GAAP net loss is expected to be in the range of ($2.5) million to ($1.5) million, or ($0.08) to ($0.05) per share, based on 31.3 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $4.5 million to $5.5 million.

Full Year 2017:

 

Total revenue is expected to be in the range of $256.0 million to $257.0 million.

 

Non-GAAP net loss is expected to be in the range of ($9.0) million to ($8.0) million, or ($0.29) to ($0.26) 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 $18.6 million to $19.6 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, November 2, 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 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 9, 2017, and can be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with passcode 13672057.

2


 

 

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 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, 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 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, recruit and retain qualified personnel and effectively expand our sales force; 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.

3


 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenue

 

$

62,453

 

 

$

58,022

 

 

$

189,972

 

 

$

170,688

 

Cost of revenue (1)(2)

 

 

30,467

 

 

 

29,112

 

 

 

90,896

 

 

 

88,159

 

Gross profit

 

 

31,986

 

 

 

28,910

 

 

 

99,076

 

 

 

82,529

 

Operating expenses: (1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

16,180

 

 

 

13,607

 

 

 

51,103

 

 

 

41,942

 

Research and development

 

 

12,568

 

 

 

14,081

 

 

 

37,222

 

 

 

43,276

 

General and administrative

 

 

6,853

 

 

 

7,746

 

 

 

20,487

 

 

 

24,415

 

Total operating expenses

 

 

35,601

 

 

 

35,434

 

 

 

108,812

 

 

 

109,633

 

Loss from operations

 

 

(3,615

)

 

 

(6,524

)

 

 

(9,736

)

 

 

(27,104

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

55

 

 

 

25

 

 

 

129

 

 

 

117

 

Interest expense on building lease financing obligations

 

 

(1,864

)

 

 

(1,704

)

 

 

(5,585

)

 

 

(5,130

)

Interest expense on other borrowings

 

 

(1,254

)

 

 

(262

)

 

 

(3,526

)

 

 

(691

)

Other expense

 

 

9

 

 

 

(133

)

 

 

(140

)

 

 

(136

)

Total other expense, net

 

 

(3,054

)

 

 

(2,074

)

 

 

(9,122

)

 

 

(5,840

)

Loss before income taxes

 

 

(6,669

)

 

 

(8,598

)

 

 

(18,858

)

 

 

(32,944

)

Income tax expense

 

 

5

 

 

 

5

 

 

 

10

 

 

 

15

 

Net loss

 

$

(6,674

)

 

$

(8,603

)

 

$

(18,868

)

 

$

(32,959

)

Comprehensive loss

 

$

(6,674

)

 

$

(8,603

)

 

$

(18,868

)

 

$

(32,959

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.21

)

 

$

(0.29

)

 

$

(0.61

)

 

$

(1.12

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

31,181,141

 

 

 

29,651,230

 

 

 

30,974,116

 

 

 

29,442,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

682

 

 

$

754

 

 

$

1,803

 

 

$

2,072

 

Sales and marketing

 

 

1,319

 

 

 

886

 

 

 

3,575

 

 

 

2,356

 

Research and development

 

 

743

 

 

 

1,011

 

 

 

2,200

 

 

 

3,538

 

General and administrative

 

 

1,652

 

 

 

1,776

 

 

 

4,068

 

 

 

5,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

34

 

 

$

37

 

 

$

105

 

 

$

111

 

Sales and marketing

 

 

12

 

 

 

10

 

 

 

38

 

 

 

30

 

Research and development

 

 

14

 

 

 

13

 

 

 

38

 

 

 

41

 

General and administrative

 

 

5

 

 

 

5

 

 

 

13

 

 

 

12

 

 


4


 

Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

September 30,

2017

 

 

As of

December 31,

2016

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

54,573

 

 

$

56,853

 

Marketable securities

 

 

 

 

 

2,007

 

Accounts receivable, net

 

 

33,332

 

 

 

28,340

 

Accounts receivable, related party, net

 

 

 

 

 

4,626

 

Prepaid expenses and other current assets

 

 

5,417

 

 

 

4,449

 

Total current assets

 

 

93,322

 

 

 

96,275

 

Property and equipment, net

 

 

75,035

 

 

 

80,518

 

Intangible assets, net

 

 

215

 

 

 

408

 

Goodwill

 

 

1,634

 

 

 

1,634

 

Other non-current assets

 

 

1,014

 

 

 

1,575

 

Total assets

 

$

171,220

 

 

$

180,410

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,401

 

 

$

5,829

 

Accrued expenses

 

 

8,979

 

 

 

10,867

 

Accrued compensation and benefits

 

 

11,926

 

 

 

17,347

 

Deferred revenue, current portion

 

 

32,649

 

 

 

35,426

 

Revolving line of credit, current portion

 

 

28,000

 

 

 

20,000

 

Financing and capital lease obligations, current portion

 

 

3,395

 

 

 

2,604

 

Total current liabilities

 

 

86,350

 

 

 

92,073

 

Deferred revenue, net of current portion

 

 

31,149

 

 

 

40,412

 

Revolving line of credit, net of current portion

 

 

32,246

 

 

 

20,246

 

Financing and capital lease obligations, net of current portion

 

 

56,132

 

 

 

57,934

 

Other non-current liabilities

 

 

2,304

 

 

 

3,056

 

Total liabilities

 

 

208,181

 

 

 

213,721

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

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

   no shares issued and outstanding at September 30, 2017

   and December 31, 2016

 

 

 

 

 

 

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

   31,195,653 and 30,429,014 shares issued and outstanding

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

 

 

31

 

 

 

30

 

Additional paid-in capital

 

 

350,667

 

 

 

335,059

 

Accumulated deficit

 

 

(387,659

)

 

 

(368,400

)

Total stockholders' deficit

 

 

(36,961

)

 

 

(33,311

)

Total liabilities and stockholders' deficit

 

$

171,220

 

 

$

180,410

 

 


5


 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(18,868

)

 

$

(32,959

)

Adjustments to reconcile net loss to net cash and cash

   equivalents used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

11,848

 

 

 

9,619

 

Stock-based compensation expense

 

 

11,646

 

 

 

13,610

 

Interest accrual on financing obligation

 

 

5,623

 

 

 

5,130

 

Loss on disposal or impairment of property and equipment

 

 

157

 

 

 

140

 

Provision for doubtful accounts

 

 

142

 

 

 

287

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(508

)

 

 

(1,655

)

Accrued interest on short-term investments

 

 

7

 

 

 

217

 

Prepaid expenses and other current assets

 

 

(968

)

 

 

465

 

Other non-current assets

 

 

561

 

 

 

142

 

Accounts payable

 

 

(4,343

)

 

 

(3,844

)

Accrued expenses

 

 

(2,152

)

 

 

4,726

 

Accrued compensation and benefits

 

 

(5,422

)

 

 

(3,460

)

Deferred revenue

 

 

(12,040

)

 

 

(13,819

)

Other non-current liabilities

 

 

(751

)

 

 

538

 

Net cash and cash equivalents used in operating activities

 

 

(15,068

)

 

 

(20,863

)

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

 

 

 

37,725

 

Purchases of property and equipment

 

 

(6,151

)

 

 

(10,861

)

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

 

 

(4,151

)

 

 

24,860

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

81,000

 

 

 

64,000

 

Payments on revolving line of credit

 

 

(61,000

)

 

 

(59,000

)

Proceeds from exercises of stock options and ESPP

 

 

3,572

 

 

 

2,118

 

Remittance of taxes upon vesting of restricted stock units

 

 

 

 

 

(202

)

Payments on financing and capital lease obligations

 

 

(6,633

)

 

 

(8,187

)

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

 

 

16,939

 

 

 

(1,271

)

Net (decrease) increase in cash and cash equivalents

 

 

(2,280

)

 

 

2,726

 

Cash and cash equivalents, beginning of period

 

 

56,853

 

 

 

48,074

 

Cash and cash equivalents, end of period

 

$

54,573

 

 

$

50,800

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

878

 

 

$

856

 

Property and equipment purchased with financing and capital lease obligations

 

$

 

 

$

2,233

 

Post contract support purchased with financing obligations

 

$

 

 

$

1,048

 

 


6


 

Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except share and per share data)

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

31,986

 

 

$

28,910

 

 

$

99,076

 

 

$

82,529

 

Amortization of acquired intangible assets

 

 

34

 

 

 

37

 

 

 

105

 

 

 

111

 

Stock-based compensation expense

 

 

682

 

 

 

754

 

 

 

1,803

 

 

 

2,072

 

Total net adjustments

 

 

716

 

 

 

791

 

 

 

1,908

 

 

 

2,183

 

Non-GAAP gross profit

 

$

32,702

 

 

$

29,701

 

 

$

100,984

 

 

$

84,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(3,615

)

 

$

(6,524

)

 

$

(9,736

)

 

$

(27,104

)

Amortization of acquired intangible assets

 

 

65

 

 

 

65

 

 

 

194

 

 

 

194

 

Stock-based compensation expense

 

 

4,396

 

 

 

4,427

 

 

 

11,646

 

 

 

13,610

 

Costs not core to our business

 

 

359

 

 

 

 

 

 

480

 

 

 

 

Total net adjustments

 

 

4,820

 

 

 

4,492

 

 

 

12,320

 

 

 

13,804

 

Non-GAAP operating income (loss)

 

$

1,205

 

 

$

(2,032

)

 

$

2,584

 

 

$

(13,300

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(6,674

)

 

$

(8,603

)

 

$

(18,868

)

 

$

(32,959

)

Depreciation

 

 

3,053

 

 

 

2,482

 

 

 

9,245

 

 

 

7,344

 

Amortization of software development costs

 

 

785

 

 

 

762

 

 

 

2,409

 

 

 

2,081

 

Amortization of acquired intangible assets

 

 

65

 

 

 

65

 

 

 

194

 

 

 

194

 

Interest income

 

 

(55

)

 

 

(25

)

 

 

(129

)

 

 

(117

)

Interest expense on building lease financing obligations

 

 

1,864

 

 

 

1,704

 

 

 

5,585

 

 

 

5,130

 

Interest expense on other borrowings

 

 

1,254

 

 

 

262

 

 

 

3,526

 

 

 

691

 

Income tax expense

 

 

5

 

 

 

5

 

 

 

10

 

 

 

15

 

Stock-based compensation expense

 

 

4,396

 

 

 

4,427

 

 

 

11,646

 

 

 

13,610

 

Costs not core to our business

 

 

359

 

 

 

 

 

 

480

 

 

 

 

Total net adjustments

 

 

11,726

 

 

 

9,682

 

 

 

32,966

 

 

 

28,948

 

Adjusted EBITDA

 

$

5,052

 

 

$

1,079

 

 

$

14,098

 

 

$

(4,011

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(6,674

)

 

$

(8,603

)

 

$

(18,868

)

 

$

(32,959

)

Amortization of acquired intangible assets

 

 

65

 

 

 

65

 

 

 

194

 

 

 

194

 

Stock-based compensation expense

 

 

4,396

 

 

 

4,427

 

 

 

11,646

 

 

 

13,610

 

Costs not core to our business

 

 

359

 

 

 

 

 

 

480

 

 

 

 

Total net adjustments

 

 

4,820

 

 

 

4,492

 

 

 

12,320

 

 

 

13,804

 

Non-GAAP net loss

 

$

(1,854

)

 

$

(4,111

)

 

$

(6,548

)

 

$

(19,155

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(1,854

)

 

$

(4,111

)

 

$

(6,548

)

 

$

(19,155

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

31,181,141

 

 

 

29,651,230

 

 

 

30,974,116

 

 

 

29,442,023

 

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

 

 

31,181,141

 

 

 

29,651,230

 

 

 

30,974,116

 

 

 

29,442,023

 

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

 

$

(0.06

)

 

$

(0.14

)

 

$

(0.21

)

 

$

(0.65

)

 


7


 

Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Guidance Ranges

(in millions, except per share data)

 

 

Fourth Quarter 2017

 

 

Full Year 2017

 

 

 

Range

 

 

Range

 

 

 

Low

 

 

High

 

 

Low

 

 

High

 

Reconciliation from Net Loss Guidance to Adjusted EBITDA Guidance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(8.0

)

 

$

(7.0

)

 

$

(26.9

)

 

$

(25.9

)

Depreciation and amortization

 

 

4.1

 

 

 

4.1

 

 

 

16.0

 

 

 

16.0

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3.0

 

 

 

3.0

 

 

 

12.0

 

 

 

12.0

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

5.0

 

 

 

5.0

 

 

 

16.7

 

 

 

16.7

 

Costs not core to business

 

 

0.4

 

 

 

0.4

 

 

 

0.8

 

 

 

0.8

 

Total net adjustments

 

 

12.5

 

 

 

12.5

 

 

 

45.5

 

 

 

45.5

 

Adjusted EBITDA - Guidance range

 

$

4.5

 

 

$

5.5

 

 

$

18.6

 

 

$

19.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - Guidance range

 

$

(8.0

)

 

$

(7.0

)

 

$

(26.9

)

 

$

(25.9

)

Amortization of acquired intangible assets

 

 

0.1

 

 

 

0.1

 

 

 

0.4

 

 

 

0.4

 

Stock-based compensation expense

 

 

5.0

 

 

 

5.0

 

 

 

16.7

 

 

 

16.7

 

Costs not core to business

 

 

0.4

 

 

 

0.4

 

 

 

0.8

 

 

 

0.8

 

Total net adjustments

 

 

5.5

 

 

 

5.5

 

 

 

17.9

 

 

 

17.9

 

Non-GAAP net loss - Guidance range

 

$

(2.5

)

 

$

(1.5

)

 

$

(9.0

)

 

$

(8.0

)