Benefitfocus, Inc.
Benefitfocus,Inc. (Form: 8-K, Received: 02/23/2017 17:05:25)

 

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) February 23, 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))

 


Item 2.02.

Results of Operations and Financial Condition.

On February 23, 2017, Benefitfocus, Inc. issued a press release announcing its operating results for the fourth quarter and full year ended December 31, 2016.  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 February 23, 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: February 23, 2017

 

/s/ Jeffrey M. Laborde

 

 

Jeffrey M. Laborde

 

 

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 Fourth Quarter and Full Year 2016 Financial Results

2016 total revenue of $233.3 million grew 26% year-over-year

2016 employer revenue of $140.5 million grew 48% year-over-year

 

Charleston, S.C. – February 23, 2017 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading provider of cloud-based benefits management solutions, today announced its fourth quarter and full year 2016 financial results.

“The fourth quarter capped a year of numerous accomplishments for the Benefitfocus team,” said Shawn Jenkins, Chief Executive Officer of Benefitfocus.  “Driven by strong demand for our platform, during 2016 total revenue grew 26% year-over-year and we improved our profitability.  In addition, once again, our software revenue retention rate was over 95% for both the quarter and year.”

 

Jenkins added, “Our annualized revenue run rate now exceeds $250 million, a threshold that when coupled with the performance of our platform and our continued financial progress on key profitability metrics, we believe reflects a business set to accelerate the benefits of scale. As we look ahead to 2017, we expect our enterprise class system performance and the increasing financial benefits of operational scale to position Benefitfocus exceptionally well for long-term growth.”

 

Fourth Quarter 2016 Financial Highlights

Revenue

 

Total revenue was $62.6 million, an increase of 15% compared to the fourth quarter of 2015.

 

Software services revenue was $52.5 million, an increase of 13% compared to the fourth quarter of 2015.

 

Professional services revenue was $10.2 million, an increase of 26% compared to the fourth quarter of 2015.

 

Employer revenue was $36.7 million, an increase of 21% compared to the fourth quarter of 2015.

 

Insurance carrier revenue was $26.0 million, an increase of 8% compared to the fourth quarter of 2015.

Net Loss

 

GAAP net loss was ($7.1) million, compared to ($12.5) million in the fourth quarter of 2015. GAAP net loss per share was ($0.24), based on 30.0 million basic and diluted weighted average common shares outstanding, compared to ($0.43) for the fourth quarter of 2015, based on 29.1 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($2.6) million, compared to ($9.5) million in the fourth quarter of 2015. Non-GAAP net loss per share was ($0.09), based on 30.0 million basic and diluted weighted average common shares

 


 

 

outstanding, compared to ( $ 0. 33 ) for the fourth quarter of 2015 , based on 29.1 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $2.9 million, compared to ($4.8) million in the fourth quarter of 2015.

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

Balance Sheet

 

Cash, cash equivalents and marketable securities at December 31, 2016 totaled $58.9 million, compared to $55.3 million at the end of the third quarter of 2016.

Full Year 2016 Financial Highlights

Revenue

 

Total revenue was $233.3 million, an increase of 26% compared to the full year 2015.

 

Software services revenue was $201.8 million, an increase of 25% compared to the full year 2015.

 

Professional services revenue was $31.5 million, an increase of 33% compared to the full year 2015.

 

Employer revenue was $140.5 million, an increase of 48% compared to the full year 2015.

 

Insurance carrier revenue was $92.8 million, an increase of 3% compared to the full year 2015.

Net Loss

 

GAAP net loss was ($40.1) million, compared to ($62.1) million in 2015. GAAP net loss per share was ($1.35), based on 29.6 million basic and diluted weighted average common shares outstanding, compared to ($2.19) in 2015, based on 28.3 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($21.7) million, compared to ($50.8) million in 2015. Non-GAAP net loss per share was ($0.73), based on 29.6 million basic and diluted weighted average common shares outstanding, compared to ($1.79) in 2015, based on 28.3 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was ($1.1) million, compared to ($32.2) million in 2015.

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

Fourth Quarter and Recent Business Highlights

 

We ended the quarter with 833 large employer customers, up from 723 at the end of the year-ago period and 827 at the end of the third quarter of 2016.

 

ACORD, the global data standards-setting body for the insurance industry, accepted an enrollment XML asset and specifications from Benefitfocus to provide standard file format for life and ancillary insurance carriers.

 

We announced our Winter Software Release, which includes enhanced reporting and data insight features that help increase employee engagement, improve productivity and reduce costs to enable HR leaders to more effectively manage benefits.

 

We published our second annual “State of Employee Benefits” research report, a snapshot of real, but anonymous benefit election data from employees across more than 500 large employers on our Platform.  

 

Deloitte recognized us as a member of the Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.

 


 

 

T he Brandon Hall Group gave us its silver award for excellence in the Best Advance in Compensation and Benefits category.

Business Outlook

Based on information available as of February 23, 2017, Benefitfocus is providing guidance for the first quarter and full year 2017 as indicated below.

First Quarter 2017:

 

Total revenue is expected to be in the range of $62.5 million to $63.5 million.

 

Non-GAAP net loss is expected to be in the range of ($4.5) million to ($3.5) million, or ($0.15) to ($0.11) per share, based on 30.6 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $2.0 million to $3.0 million.

Full Year 2017:

 

Total revenue is expected to be in the range of $263.5 million to $268.5 million.

 

Non-GAAP net loss is expected to be in the range of ($11.5) million to ($7.5) million, or ($0.37) to ($0.24) per share, based on 30.9 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $13.0 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, February 23, 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/ . A replay of this conference call can also be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with replay passcode 13653318 through March 2, 2017.

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 millions of consumers 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 and the accompanying tables, including non-GAAP gross profit, operating 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 loss, net loss and net loss per share exclude stock-based compensation expenses and amortization of acquisition-related intangible assets and offering costs expensed, 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 and expense related to the impairment of goodwill and intangible assets. 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 determination of 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; general economic risks;  risks related to changing healthcare and other applicable regulations; our ability to maintain our culture and recruit and retain qualified personnel; 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.


 


 

Benefitfocus, Inc.

 

Consolidated Statements of Operations and Comprehensive Loss

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2016

 

 

 

2015

 

 

 

2016

 

 

 

2015

 

Revenue

 

$

62,647

 

 

$

54,340

 

 

$

233,335

 

 

$

185,143

 

Cost of revenue (1)(2)

 

 

32,522

 

 

 

30,483

 

 

 

120,681

 

 

 

102,851

 

Gross profit

 

 

30,125

 

 

 

23,857

 

 

 

112,654

 

 

 

82,292

 

Operating expenses: (1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

13,546

 

 

 

13,092

 

 

 

55,488

 

 

 

58,589

 

Research and development

 

 

13,308

 

 

 

14,244

 

 

 

56,584

 

 

 

52,250

 

General and administrative

 

 

8,335

 

 

 

7,146

 

 

 

32,750

 

 

 

25,727

 

Total operating expenses

 

 

35,189

 

 

 

34,482

 

 

 

144,822

 

 

 

136,566

 

Loss from operations

 

 

(5,064

)

 

 

(10,625

)

 

 

(32,168

)

 

 

(54,274

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

21

 

 

 

58

 

 

 

138

 

 

 

188

 

Interest expense on building lease financing obligations

 

 

(1,696

)

 

 

(1,721

)

 

 

(6,826

)

 

 

(7,092

)

Interest expense on other borrowings

 

 

(404

)

 

 

(192

)

 

 

(1,095

)

 

 

(877

)

Other expense

 

 

46

 

 

 

(7

)

 

 

(90

)

 

 

(4

)

Total other expense, net

 

 

(2,033

)

 

 

(1,862

)

 

 

(7,873

)

 

 

(7,785

)

Loss before income taxes

 

 

(7,097

)

 

 

(12,487

)

 

 

(40,041

)

 

 

(62,059

)

Income tax expense

 

 

2

 

 

 

 

 

 

17

 

 

 

25

 

Net loss

 

$

(7,099

)

 

$

(12,487

)

 

$

(40,058

)

 

$

(62,084

)

Comprehensive loss

 

$

(7,099

)

 

$

(12,487

)

 

$

(40,058

)

 

$

(62,084

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.24

)

 

$

(0.43

)

 

$

(1.35

)

 

$

(2.19

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

30,030,164

 

 

 

29,120,171

 

 

 

29,589,857

 

 

 

28,344,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

726

 

 

$

729

 

 

$

2,798

 

 

$

1,950

 

Sales and marketing

 

 

857

 

 

 

1,115

 

 

 

3,213

 

 

 

2,861

 

Research and development

 

 

994

 

 

 

647

 

 

 

4,532

 

 

 

2,399

 

General and administrative

 

 

1,901

 

 

 

332

 

 

 

7,545

 

 

 

3,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Amortization of acquired intangible assets included in

       above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

36

 

 

$

49

 

 

$

147

 

 

$

218

 

Sales and marketing

 

 

12

 

 

 

6

 

 

 

42

 

 

 

25

 

Research and development

 

 

13

 

 

 

8

 

 

 

54

 

 

 

35

 

General and administrative

 

 

2

 

 

 

2

 

 

 

14

 

 

 

8

 


 


 

Benefitfocus, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

2016

 

 

2015

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

56,853

 

 

$

48,074

 

 

Marketable securities

 

 

2,007

 

 

 

40,448

 

 

Accounts receivable, net

 

 

28,340

 

 

 

27,616

 

 

Accounts receivable, related party, net

 

 

4,626

 

 

 

2,082

 

 

Prepaid expenses and other current assets

 

 

4,449

 

 

 

5,725

 

 

Total current assets

 

 

96,275

 

 

 

123,945

 

 

Property and equipment, net

 

 

80,518

 

 

 

55,037

 

 

Intangible assets, net

 

 

408

 

 

 

665

 

 

Goodwill

 

 

1,634

 

 

 

1,634

 

 

Other non-current assets

 

 

1,575

 

 

 

838

 

 

Total assets

 

$

180,410

 

 

$

182,119

 

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,829

 

 

$

7,953

 

 

Accrued expenses

 

 

10,867

 

 

 

10,449

 

 

Accrued compensation and benefits

 

 

17,347

 

 

 

20,684

 

 

Deferred revenue, current portion

 

 

35,426

 

 

 

37,858

 

 

Revolving line of credit, current portion

 

 

20,000

 

 

 

25,000

 

 

Financing and capital lease obligations, current portion

 

 

2,604

 

 

 

3,648

 

 

Total current liabilities

 

 

92,073

 

 

 

105,592

 

 

Deferred revenue, net of current portion

 

 

40,412

 

 

 

55,671

 

 

Revolving line of credit, net of current portion

 

 

20,246

 

 

 

5,246

 

 

Financing and capital lease obligations, net of current portion

 

 

57,934

 

 

 

31,183

 

 

Other non-current liabilities

 

 

3,056

 

 

 

2,436

 

 

Total liabilities

 

 

213,721

 

 

 

200,128

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued

   and outstanding at December 31, 2016 and 2015

 

 

-

 

 

 

-

 

 

Common stock, par value $0.001, 50,000,000 shares authorized, 30,429,014 and

   29,194,332 shares issued and outstanding at December 31, 2016 and 2015,

   respectively

 

 

30

 

 

 

29

 

 

Additional paid-in capital

 

 

335,059

 

 

 

310,304

 

 

Accumulated deficit

 

 

(368,400

)

 

 

(328,342

)

 

Total stockholders' deficit

 

 

(33,311

)

 

 

(18,009

)

 

Total liabilities and stockholders' deficit

 

$

180,410

 

 

$

182,119

 

 


 


 

Benefitfocus, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

2016

 

 

 

2015

 

 

 

2014

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(40,058

)

 

$

(62,084

)

 

$

(63,179

)

Adjustments to reconcile net loss to net cash and cash equivalents (used in)

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

13,073

 

 

 

11,664

 

 

 

9,493

 

Stock-based compensation expense

 

 

18,088

 

 

 

10,454

 

 

 

5,588

 

Change in fair value and accretion of warrant

 

 

 

 

 

 

 

 

744

 

Interest accrual on financing obligation

 

 

6,827

 

 

 

7,092

 

 

 

3,624

 

Provision for doubtful accounts

 

 

667

 

 

 

22

 

 

 

 

Loss on disposal or impairment of property and equipment

 

 

141

 

 

 

18

 

 

 

25

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(3,936

)

 

 

(7,800

)

 

 

2,357

 

Accrued interest on short-term investments

 

 

220

 

 

 

205

 

 

 

162

 

Prepaid expenses and other current assets

 

 

1,626

 

 

 

(1,328

)

 

 

833

 

Other non-current assets

 

 

339

 

 

 

1,380

 

 

 

824

 

Accounts payable

 

 

(1,849

)

 

 

3,418

 

 

 

(199

)

Accrued expenses

 

 

990

 

 

 

2,961

 

 

 

2,469

 

Accrued compensation and benefits

 

 

(3,337

)

 

 

3,310

 

 

 

3,192

 

Deferred revenue

 

 

(17,690

)

 

 

(1,189

)

 

 

14,288

 

Other non-current liabilities

 

 

2,073

 

 

 

332

 

 

 

901

 

Net cash and cash equivalents used in operating activities

 

 

(22,826

)

 

 

(31,545

)

 

 

(18,878

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of short-term investments held to maturity

 

 

(2,004

)

 

 

(68,185

)

 

 

(12,959

)

Proceeds from short-term investments held to maturity

 

 

40,225

 

 

 

32,667

 

 

 

20,830

 

Purchases of property and equipment

 

 

(12,705

)

 

 

(14,727

)

 

 

(9,824

)

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

 

 

25,516

 

 

 

(50,245

)

 

 

(1,953

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

84,000

 

 

 

57,492

 

 

 

14,000

 

Payments on revolving line of credit

 

 

(74,000

)

 

 

(44,903

)

 

 

(2,100

)

Proceeds from exercises of stock options

 

 

6,870

 

 

 

4,229

 

 

 

2,817

 

Proceeds from issuance of common stock and warrant, net of issuance costs

 

 

 

 

 

74,538

 

 

 

 

Payments of deferred financing costs and debt issuance costs

 

 

(379

)

 

 

(566

)

 

 

 

Remittance of taxes upon vesting of restricted stock units

 

 

(202

)

 

 

(2,116

)

 

 

(226

)

Payments on financing and capital lease obligations

 

 

(10,200

)

 

 

(9,884

)

 

 

(8,231

)

Net cash and cash equivalents provided by financing activities

 

 

6,089

 

 

 

78,790

 

 

 

6,260

 

Net increase (decrease) in cash and cash equivalents

 

 

8,779

 

 

 

(3,000

)

 

 

(14,571

)

Cash and cash equivalents, beginning of year

 

 

48,074

 

 

 

51,074

 

 

 

65,645

 

Cash and cash equivalents, end of year

 

$

56,853

 

 

$

48,074

 

 

$

51,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

699

 

 

$

1,489

 

 

$

4,226

 

Property and equipment purchased with financing and capital lease obligations

 

$

28,032

 

 

$

914

 

 

$

21,739

 

Post contract support purchased with financing obligations

 

$

1,048

 

 

$

272

 

 

$

754

 

Allocation of proceeds to deferred revenue from issuance of common stock

  based on relative selling price

 

$

-

 

 

$

207

 

 

$

-

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes paid

 

$

7

 

 

$

18

 

 

$

38

 

Interest paid

 

$

6,655

 

 

$

6,525

 

 

$

2,449

 

 


 


 

Benefitfocus, Inc.

 

Reconciliation of GAAP to Non-GAAP Measures

 

(unaudited, dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

30,125

 

 

$

23,857

 

 

$

112,654

 

 

$

82,292

 

Amortization of acquired intangible assets

 

 

36

 

 

 

49

 

 

 

147

 

 

 

218

 

Stock-based compensation expense

 

 

726

 

 

 

729

 

 

 

2,798

 

 

 

1,950

 

Total net adjustments

 

 

762

 

 

 

778

 

 

 

2,945

 

 

 

2,168

 

Non-GAAP gross profit

 

$

30,887

 

 

$

24,635

 

 

$

115,599

 

 

$

84,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Operating Loss to Non-GAAP Operating Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(5,064

)

 

$

(10,625

)

 

$

(32,168

)

 

$

(54,274

)

Amortization of acquired intangible assets

 

 

63

 

 

 

65

 

 

 

257

 

 

 

286

 

Stock-based compensation expense

 

 

4,478

 

 

 

2,823

 

 

 

18,088

 

 

 

10,454

 

Offering costs expensed

 

 

 

 

 

77

 

 

 

 

 

 

560

 

Total net adjustments

 

 

4,541

 

 

 

2,965

 

 

 

18,345

 

 

 

11,300

 

Non-GAAP operating loss

 

$

(523

)

 

$

(7,660

)

 

$

(13,823

)

 

$

(42,974

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(7,099

)

 

$

(12,487

)

 

$

(40,058

)

 

$

(62,084

)

Depreciation

 

 

2,615

 

 

 

2,311

 

 

 

9,959

 

 

 

8,791

 

Amortization of software development costs

 

 

776

 

 

 

602

 

 

 

2,857

 

 

 

2,587

 

Amortization of acquired intangible assets

 

 

63

 

 

 

65

 

 

 

257

 

 

 

286

 

Interest income

 

 

(21

)

 

 

(58

)

 

 

(138

)

 

 

(188

)

Interest expense on building lease financing obligations

 

 

1,696

 

 

 

1,721

 

 

 

6,826

 

 

 

7,092

 

Interest expense on other borrowings

 

 

404

 

 

 

192

 

 

 

1,095

 

 

 

877

 

Income tax expense

 

 

2

 

 

 

 

 

 

17

 

 

 

25

 

Stock-based compensation expense

 

 

4,478

 

 

 

2,823

 

 

 

18,088

 

 

 

10,454

 

Total net adjustments

 

 

10,013

 

 

 

7,656

 

 

 

38,961

 

 

 

29,924

 

Adjusted EBITDA

 

$

2,914

 

 

$

(4,831

)

 

$

(1,097

)

 

$

(32,160

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(7,099

)

 

$

(12,487

)

 

$

(40,058

)

 

$

(62,084

)

Amortization of acquired intangible assets

 

 

63

 

 

 

65

 

 

 

257

 

 

 

286

 

Stock-based compensation expense

 

 

4,478

 

 

 

2,823

 

 

 

18,088

 

 

 

10,454

 

Offering costs expensed

 

 

 

 

 

77

 

 

 

 

 

 

560

 

Total net adjustments

 

 

4,541

 

 

 

2,965

 

 

 

18,345

 

 

 

11,300

 

Non-GAAP net loss

 

$

(2,558

)

 

$

(9,522

)

 

$

(21,713

)

 

$

(50,784

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(2,558

)

 

$

(9,522

)

 

$

(21,713

)

 

$

(50,784

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

30,030,164

 

 

 

29,120,171

 

 

 

29,589,857

 

 

 

28,344,680

 

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